citizen today - july 2016

1J uly 2 016Citizen Today

Citizen Today

July 2 0 16 I ssue 2 3

L o n g r o a d a h e a dSolv ing the migration crisis

Rio regenerationExclusive interview with the Olympic city’s mayor

Litmus testInspiring young citizens with science

Supply chain commandLessons from the French military

G eorge A talla E ditor, Citizen Today

E Y G lob al G ov ernment & P ub lic Sector L eadergeorge. atalla@ ey. com

@ E Y _ G ov tPublic | ey. com/ gov ernment

R ohan M alik D eputy E ditor, Citizen Today

E Y G lob al G ov ernment & P ub lic Sector E merging M ark ets L eaderrmalik@ uk. ey. com

H ow can gov ernments seiz e the upside of disruption?


elcome to the latest edition of

Citizen Today, E Y ’ s magaz ine for gov ernment and

the pub lic sector. F or centuries, glob aliz ation,

the adv ance of technology and changing demographics

hav e shaped our w orld. F rom the ancient Silk R oad trade routes and

the industrial rev olution to today’ s migration patterns, these forces

underpin the disruption that spurs human adv ancement.

A new E Y report ( see page 3 7 ) ex plores disruption and challenges organiz ations to

emb race it. B ut w hat does disruption mean for gov ernments? I nside, w e ex plore one

of the greatest disruptiv e challenges facing leaders around the w orld: migration. I n some

parts of the world, people are fleeing war and persecution. O r they are seek ing b etter j ob s and higher w ages in other lab or mark ets. O ur feature on page 6 assesses the handling of the migrant crisis in E urope, and sets out actions to tak e there and elsew here to prov ide safety and opportunity for migrants, as w ell as security and reassurance for the communities that tak e them in.

O n page 12 , w e meet a man w hose organiz ation has b een at the sharp end of the migrant crisis in E urope. P eter Sieb ers, director of the N etherlands’ C entral A gency for the R eception of A sylum Seek ers, ex plains how the agency coped w ith a sev en-fold increase in the numb er of migrant places it had to deliv er.

A nd w hat ab out the impact on migrants themselv es? O n page 14 , w e ex plain w hat happens w hen displaced children miss out on formal education. N ot only are they ex posed to personal danger, b ut social cohesion and the ab ility to maintain peace in post-conflict regions are also diminished.

M eanw hile, w e hear from the M ayor of R io de J aneiro, E duardo P aes, on how the city is using this year’ s O lympic and P aralympic G ames as a catalyst to dev elop infrastructure and the local economy ( page 19) .

E nv ironmental sustainab ility, technological dev elopment and demographic shifts are all highlighted in our feature on page 2 2 . W e ex plain how a new digital education program is helping to inspire young people in the M iddle E ast and elsew here to tak e an interest in science, w hile gathering data to help scientists tack le b ig issues such as climate change, and preparing for the w orld of w ork that aw aits.

On page 26, we find out from one of Denmark’s digital gov ernment leaders how they are meeting the security challenge posed b y the disruptiv e pow er of digital technology.

T here is nothing lik e a change at the top to disrupt a gov ernment’ s think ing. N ex t year, a new president of the United States will take office. On page 28, we explore the transition process and find out w hat it tak es to succeed as a political ex ecutiv e in the federal gov ernment.

Operational, financial and geopolitical forces are encouraging defense ministries to rethink how to run their support operations. O n page 3 3 , w e meet a general in the F rench armed forces w ho is mounting a supply chain rev olution.

D isruptiv e forces are not new . B ut as w e hav e seen w ith issues such as migration, automation and climate change, they are changing the w orld at an unprecedented speed. U nderstanding these forces, and applying the right policy responses, w ill help gov ernments to see that disruption can hav e an upside.

Welcome

Citizen Today has a new w eb site. I t features mob ile-friendly articles, v ideos and features cov ering a host of topical issues. P lease v isit e y . c o m / c i t i z e n t o d a y , w here you can also dow nload the Citizen Today app

Inside ...

Olympic Games Can the Mayor of Rio de Janeiro use the Olympics to transform the city?

MigrationHow has the Netherlands’ asylum reception agency coped with the crisis?

2622

19

12Migration

Is education one of the costliest casualties of war?

Data security How is Denmark’s data security chief responding to the disruptive power of technology?

Education How can schoolchildren

inspired by science help to solve some of the world’s

biggest problems?

MigrationHow can the international

community find a sustainable solution to

the migration crisis?

Features

6

14

Citizen Today 5J uly 2 016

A bout E YE Y is a glob al leader in assurance, tax , transaction and adv isory serv ices. T he insights and q uality serv ices w e deliv er help b uild trust and confidence in the capital mark ets and in economies the w orld ov er. W e dev elop outstanding leaders w ho team to deliv er on our promises to all of our stak eholders. I n so doing, w e play a critical role in b uilding a b etter w ork ing w orld for our people, for our clients and for our communities.

E Y refers to the glob al organiz ation, and may refer to one or more, of the memb er firms of E rnst & Y oung G lob al L imited, each of w hich is a separate legal entity. E rnst & Y oung G lob al L imited, a U K company limited b y guarantee, does not prov ide serv ices to clients. F or more information ab out our organiz ation, please v isit ey. com.

© 2 016 E Y G M L imited. A ll R ights R eserv ed.

E Y G no. 01909-164 G B L

B M C A gency G A 04 98_ 064 3 6

E D 07 17

I n line w ith E Y ’ s commitment to minimiz e its impact on the env ironment, this document has b een printed on paper w ith a high recycled content.

T his material has b een prepared for general informational purposes only and is not intended to b e relied upon as accounting, tax or other professional adv ice. P lease refer to your adv isors for specific adv ice.

T he v iew s of third parties set out in this pub lication are not necessarily the v iew s of the glob al E Y organiz ation or its memb er firms. M oreov er, they should b e seen in the contex t of the time they w ere made.

ey. com

E Y | A ssurance | T ax | T ransactions | A dv isory

Regulars

Political ex ecutiv es W hat does it tak e to succeed

as an appointee to the U S federal gov ernment?

28

37

Perspectiv esR ecent E Y papers on disruption and foreign inv estment in E urope

38

Spotlight on A fricaH ow E Y is helping gov ernment agencies to deliv er b etter serv ices in A frica

D efense H ow is a F rench general

mounting a supply chain rev olution?

33

A clear

A young migrant craw ls under a fence to b oard a train at a station near G ev gelij a, M acedonia.

Migration

T he mov ement of people from regions scarred by conflict, persecution and lack of opportunity has b rought chaos and misery in E urope and many other regions. H ow can the international community address the migration crisis and dev elop a sustainab le long-term solution? M a r c A n d e r s e n discusses the issues

PATHIt doesn’ t seem too much to ask that a family can

b ring up its children in an env ironment free from b omb s and b ullets, w here girls and b oys can go to

school, b efore getting a decent opportunity to liv e a productiv e life.

I t also doesn’ t seem too much to ask that, if a region offering these conditions is to accept new comers from other areas, there should b e enough houses, schools, roads, hospitals and j ob s to k eep all memb ers of the community engaged and productiv e.

R econciling the need to prov ide a new home for those fleeing danger and oppression with the requirement to preserv e the cohesion of communities that receiv e displaced people is one of the most pressing policy q uestions of our time. H ow w e answ er this q uestion w ill affect the liv es of generations to come.

I n 2 015, the numb er of people w orldw ide w ho had b een forcib ly displaced from their homes ex ceeded 60 million. I n a glob al contex t, that means one person in every 122 has been forced to flee his or her home due to conflict or instability.

T he total numb er of refugees alone has increased from 10. 4 million at the end of 2 011 to an estimated 15. 1 million b y the middle of 2 015 — a 4 5% increase. Today, it is likely to be even higher. Now in its fifth year of conflict, Syria produces the most refugees. Many Syrians are undertak ing haz ardous j ourneys to reach the E U , often resorting to using smugglers. I n the E U , a few countries hav e b een particularly ex posed.

FORWARDT he mov ement of people from regions scarred by conflict, persecution and lack of opportunity has b rought chaos and misery in E urope and many other regions. H ow can the international community address the migration crisis and dev elop a sustainab le long-term solution? M a r c A n d e r s e n


T he current rate of arriv als into G reece is estimated at around 60, 000 to 80, 000 per month. U nless a maj or geopolitical shift changes the situation in Syria, E urope may hav e to prepare itself to host more than a million new refugees in 2 016.

B ut this isn’ t j ust a story ab out E urope. F or some time, T urk ey, L eb anon and J ordan b ore the primary responsib ility for tak ing in Syrian refugees. B y M arch 2 016, the Syrian refugee population in T urk ey alone had risen to 2.7 million. And conflicts in other countries such as A fghanistan, the D emocratic R epub lic of the C ongo, Somalia and South Sudan hav e added to the grow ing numb er of refugees. I ndeed, 86% of the glob al displaced are in dev eloping countries. W ithout support, this scale of displacement threatens to erase many of the gains made in dev eloping countries ov er the last decade.

T he sheer v olume and complex ity of the refugee

inflow has put enormous strain on asylum systems. Many frontline countries hav e reached the b reak ing point in their ability to manage the unplanned inflow and meet their ob ligations to refugees under international law . M eanw hile, pub lic opinion tow ard refugees and those seek ing a new life for economic reasons has hardened.

So, how hav e countries and organiz ations responded to the crisis so far? Why has it proved so difficult to manage? A nd w hat can national gov ernments, supranational organiz ations, dev elopment b ank s, N G O s and humanitarian organiz ations do b etter?

Inadequate responseT he collectiv e response of the international community has b een slow and ad hoc. O f the 15 million refugees in the w orld today, only around 100, 000 each year are offered resettlement opportunities.

O v er the last year, the E U has adopted a numb er of measures to tack le the crisis in E urope. T he E uropean A genda on M igration set out a comprehensiv e approach to improv e the management of the issue and to prev ent and counter human smuggling and trafficking networks

in the south-central M editerranean. I n Septemb er 2 015, the E U announced an emergency relocation proposal for 160, 000 refugees, b ut the process is at an emb ryonic stage. A nd according to the U nited N ations H igh C ommissioner for R efugees ( U N H C R ) , it is not enough to address the scale of the prob lem.

T he E U also announced additional funding to help the most affected M emb er States; enhance the capacity of relev ant E U agencies; contrib ute to efforts b y U N H C R and other aid organiz ations to prov ide immediate relief to refugees; and tack le the root causes of the crisis in the M iddle E ast and A frica ( for ex ample, in part b y b oosting socioeconomic development in Syria and specific African regions) . A more recent deal to send refugees b ack to T urk ey could b e in b reach of international law , according to the U nited N ations.

M eanw hile, the policy of many gov ernments w ithin the E U , as w ell as non-E U countries, has shifted tow ard prev enting or discouraging people from attempting to reach the E U and rapidly deporting those w ho do not hav e a right to remain. T he actions of some countries hav e b een in direct b reach of international law .

Persistent problemsA numb er of factors mak e it hard for policymak ers to dev elop an effectiv e, coordinated response.

There is a significant funding gap and a lack of proper systems and technical support for managing the v ast number of migrants flowing into frontline countries. W hile additional funds hav e b een forthcoming from the E U , N G O s, humanitarian and donor organiz ations, they are w idely thought to b e inadeq uate and, in some cases, ineffectiv ely used.

T he industry that has grow n up around people smuggling presents enormous challenges for national gov ernments and the E U . Smugglers’ modus operandi is flexible and changes frequently to adapt to market conditions. T he crisis only serv es to enab le their illicit activ ities.

A lmost half of refugees under the care of the U N H C R in 2014 had been displaced for five years or more. F actors such as the rise of the I slamic State and the continuing w ar in Syria are prev enting people w ho hav e b een displaced from the affected regions returning to their homes.

“M igrants can b oost national economies as w ork ers, tax payers and consumers”


Migration flows have proved inherently difficult to predict, meaning that few early w arning systems are in place to detect mass migration b efore it happens and allow for time to dev elop and implement the necessary response in a rapid manner. D ata analytics are essential for informing decision-mak ers and responders.

T he politics of migration is b ecoming increasingly difficult, especially in Europe. The tide of public opinion has b een turning against migration as negativ e press cov erage and, increasingly, the political discourse focus on security issues, social cohesion and pressure on b asic pub lic serv ices.

Sustainable solutionsSo, w hat can b e done to manage the crisis b etter? I t is clear that ov ercoming the different challenges req uires a fresh approach, w hich mix es short-term interv entions to meet the immediate needs of refugees w ith a longer-term strategy to support refugees and host communities. H ere are eight specific actions to take.

First, improve the efficiency and fairness of the asylum process. This will require more funding and staffing for immigration administrations, b etter access to information and documentation on migrants, and training so staff can implement procedures and determine cases q uick ly and accurately. I n E urope, the E uropean A sylum Support Office could be given a stronger role, allowing it to help national immigration authorities implement E U rules. A new E uropean A sylum A gency could hav e pow ers to mak e E U -w ide decisions on asylum applications. C hanges to family reunification rules, extensions of temporary w ork er programs, temporary protection and humanitarian v isa schemes w ould enab le genuine refugees to gain faster entry to their destination. A nother important consideration is the fair distrib ution of migrants across different countries. M eaningful b urden-sharing w ould reduce the pressure on host countries in conflict regions and at the E U ’ s ex ternal b order.

Second, mak e b etter use of resources. M ore can b e done to ensure that countries are ab le to prov ide the proper reception conditions that are req uired under international law . T hrough direct funding and operational assistance, national gov ernments, dev elopment b ank s, N G O s and aid organiz ations could b etter support the capacity to manage the crisis in those countries w ith large numb ers of migrants. Some countries w aste or

Supporters of the anti-I slam mov ement P atriotic E uropeans A gainst the I slamisation of the W est ( P E G I D A ) tak e part in a demonstration in D resden, G ermany. T he rise of anti-migration mov ements in E urope show s the dangers of failing to tak e a grip of the crisis.

Migration

misuse funds through bureaucratic inefficiencies and inadeq uate proj ect management. T his is a prob lem that can b e addressed b y b etter management, b udgeting and control systems. B ut it also req uires the collection, sharing and analysis of data on refugees liv ing in front line countries to b etter understand their w elfare needs and to create a sustainab le system to address them. B ringing to b ear analytics is critical to decision-mak ing. Short-term assistance needs to b e comb ined w ith longer-term dev elopment support aimed at b oth refugees and host communities. W e must consider the sustainab ility and v iab ility of assistance ov er the long term.

T hird, b oost efforts to tack le illegal migration. Since the P aris, B russels and San B ernardino terrorist attack s, the refugee crisis has tak en on an entirely new security dimension. P ressure is grow ing on destination countries to ensure that they manage their b orders effectiv ely. W ithout effectiv e b order management, pub lic opinion and political discourse w ill continue to w ork against the population. T his req uires b etter use and coordination of I T systems and technologies for dealing w ith asylum

administration and v isa applications, and for sharing information among national authorities ab out people or ob j ects that may present a threat. D ata must b e av ailab le for analysis, and b order control agencies, police, j ustice and immigration authorities w ill increasingly need to analyz e data as close to real time as possib le. I n addition, curtailing human trafficking and smuggling is critical to dev eloping a longer-term solution.

F ourth, create a stronger legal framew ork and policies to manage economic migration. M any dev eloped countries of destination face long-term demographic and economic challenges, including the need to address sk ill shortages in some k ey sectors such as science, technology, engineering and health care. W hile admissions of third-country nationals remain at the discretion of these countries, a clear policy on legal

M igrants show their sk ills at a metal processing w ork s in B erlin, G ermany. W ell-managed migration can benefit host communities.

“T he ab ility to understand the underlying causes of migration is k ey to a longer-term solution”


How EY can helpE Y has w ell-dev eloped capab ilities to address the v arious challenges and opportunities that migration presents. T o discov er more ab out our end-to-end approach that helps different organiz ations to respond to the current glob al crisis, v isit: ey. com/ G L / en/ I ndustries/ G ov ernment---P ub lic-Sector/ ey-managing-the-european-union-migration-crisis.

M arc E A ndersen serv es as I nternational G ov ernment and Public Sector Leader, E Y LLP

economic migration could help ensure that countries attract the right talent to meet the collectiv e needs of their economies. L ab or law s should permit b usinesses to get qualified and skilled workers that fit their market needs, w hen they need them. T his means remov ing b arriers that might prev ent migrants fully integrating into lab or mark ets.

F ifth, improv e communication w ith migrants and the pub lic in host nations. T he E U , U N agencies, N G O s, humanitarian organiz ations, national gov ernments in host countries and the priv ate sector need to communicate b etter w ith refugee communities so they k now ab out their legal entitlements. T he use of digital channels is a v ital w ay of reaching migrants, giv en the presence and use of smartphones. B etter communication w ith the w ider pub lic in host countries is also necessary, particularly as pub lic opinion turns against migrants in some countries. G ov ernments could b e more proactiv e in managing the concerns of host communities ov er j ob s and w ages, pub lic safety and social cohesion. M ore research, data and analytics documenting the benefits of migration, framed around a commitment to human rights, could help alter the political discourse and pub lic opinion.

Six th, introduce measures to accelerate social and economic integration. I nv estment w ill b e needed to set the right foundations for integrating migrants into w ork forces and local communities. T his includes, for instance, prov iding the legal means to participate in the lab or mark et; recogniz ing ex isting educational and professional credentials; prov iding further education and training; w ork ing w ith employers to match sk ills and b oost employment opportunities; and help for migrants to learn local languages. F or children, it means prov iding school places and ensuring schools hav e the resources to help migrant students ov ercome the trauma of displacement and learn the language of their host country. T ogether, these measures w ill reduce the need for state support ov er time and contrib ute to long-term economic grow th.

Sev enth, return third-country nationals to their country of origin. I n the E U , this can b e achiev ed b y strengthening the implementation of the R eturn D irectiv e; w idening the role and mandate of F rontex , the E U agency that manages cooperation b etw een national b order guards; and creating an integrated system of return management. T he E U is pursuing R eadmission A greements w ith sev eral third countries to facilitate the return of people w ho hav e entered states irregularly or w ho hav e ov erstayed. A t the same time, countries must b e careful not to v iolate the principle of non-refoulement, enshrined in the R efugee C onv ention: indiv iduals must not b e returned “ in any manner w hatsoev er” to places w here their life or freedom w ould b e threatened.

And finally, equip the asylum system to better respond to future crises. T his means inv esting in stronger early w arning mechanisms and interv ening earlier to help

allev iate prob lems and reduce the long-term costs and impact. T he ab ility to understand the underlying causes of migration is k ey to a longer-term solution. A greater emphasis on economic dev elopment and institutional reforms, b ased on sound data and analysis, could help b ring stab ility and prosperity in countries that currently produce large numb ers of migrants.

Global actionG iv en the complex ity of the issues, no single actor can tack le the migration crisis alone. N G O s, aid organiz ations, dev elopment b ank s, b usinesses and civ il society all hav e a role to play alongside national gov ernments and international b odies. P olicymak ers and leaders from all sectors must w ork together to dev elop solutions, determine w hat w ork s and w hat does not, and adapt their approaches accordingly.

Migrants often fill jobs that are less attractive to domestic workers and the inflow of new talent and skills can stimulate grow th in entrepreneurship. T hey can b oost national economies as w ork ers, tax payers and consumers. B y grasping the issue of how to manage migration effectively, developed countries can also benefit.

The conflict in Syria is a main cause of today’s crisis. E v entually the w ar w ill end. A nd w hen it does, somew here else, other people w ill cross b orders in search of freedom from w ar and oppression, or simply to seek out b etter opportunities for themselv es and their families. A s w ell as solv ing the immediate crisis, the international community must dev elop an effectiv e w ay to manage migration in the long-term — addressing the needs of those w ho mov e into new regions and those w ho w elcome them. T he priz e is glittering: a set of cohesiv e, prosperous communities, w here migrant amb itions meet local needs. W hile the rise of populist, nativ ist parties foretells the dangers of failure. T he time for action is now .

Migration

http://www.ey.com/GL/en/Industries/Government---Public-Sector/ey-managing-the-european-union-migration-crisis



T he migration crisis has b een a huge challenge for P eter Sieb ers and the N etherlands’ C entral A gency for the R eception of A sylum Seek ers.

other hand, they hav e q uite a lot on their plate. A nd yet, morale has remained high and ab senteeism, low . W e k eep a close eye on indiv idual employees to ensure they monitor their limits and let each other k now w hen they can’ t continue w ithout a b reak .

Can you give an idea of the effects of settling such large numbers of people?I rememb er one Saturday afternoon at a municipal council w ith the State Secretary. W e w ere supposed to create 1, 000 reception places in a b arrack s, w hich is actually a relativ ely simple undertak ing. W e w anted to mov e in as soon as possib le and the b uses w ere already w aiting. A lthough w e had the M inistry of D efence’ s support, the municipal authorities refused to speed up the decision-mak ing process and insisted on follow ing the regular procedures. T he follow ing T uesday ev ening, the moment had come: b uses carrying 600 asylum seek ers departed immediately. C an you imagine w hat you’ re ask ing of your ow n people and the local community under these circumstances? Some of my colleagues w ere still heating up meals into the small hours of W ednesday morning for the new ly arriv ed residents.

W hen P e t e r S i e b e r s took office as director of the Netherlands’ Central A gency for the R eception of A sylum Seek ers ( C O A ) in M arch 2 013 , one of his main task s w as to reduce reception capacity for asylum seek ers that the country w ould tak e in. Since then, the landscape has changed dramatically. H ere, he talk s ab out how E urope’ s migrant crisis has affected the organiz ation he leads, and how the C O A has managed the crisis.

Was the organization prepared for the migration crisis?W e had ab solutely no idea of w hat w as ahead of us. W e w ere supposed to reduce reception capacity from 14 , 000 to 12 , 000 places. T hree years later, there are 50, 000 places, and b y the end of this year there may b e as many as 80, 000 or 90, 000. T he numb ers are unprecedented. T he process in w hich w e operate inv olv es procedures and policies that are dev eloped according to specific circumstances. They were not intended to address an influx that would increase by as much as four or five times. At a certain point, the only time off I had was Sunday afternoon, which I would spend reflecting on w hat I had ex perienced during the rest of the w eek . F ortunately, w e now hav e four task force managers w ho, w ith the management b oard’ s mandate, prov ide support.

What were the consequences for employees? W e delib erately placed responsib ilities low er dow n in the organiz ation. W e ex plicitly gav e people freedom. I realiz ed how incredib ly enterprising the culture is here. O n the

BREAKINGBeyondpoint


What did you do when you noticed how overwhelming it had all become?I n A ugust last year, w e escalated the matter and ask ed for outside help. W e w ere w ork ing so hard that w e started to reach the limits of our ow n capab ilities — though w e actually didn’t notice it much ourselves. You definitely could hav e compared us to the frog, slow ly b eing b oiled aliv e. I noticed it after coming b ack from holiday — hav ing briefly had some distance. It is really difficult to admit w hen you can’ t do it alone. I n hindsight, w e should hav e indicated earlier that w e couldn’ t handle it alone anymore, particularly b ecause w e sometimes ev en needed to enlist the army’ s help.

Where did you draw the line?W hen our people’ s physical safety w as at stak e. W e nev er opened a location without the fire service’s permission. B ut w e didn’ t alw ays follow all the other rules to the letter. F rom a social standpoint, I can conv incingly ex plain w hy w e didn’ t alw ays follow the relev ant tendering protocols. W e alw ays told our people: go there and tak e care of it, b ut inform us if it gets risk y. F rom a management perspectiv e, focusing on hard control measures w as totally ineffectiv e in this case. T his organiz ation focuses first and foremost on soft control measures, which relate to v alues and trust. T hat gav e us the strength and ab ility to perform ex ceptionally under ex ceptional circumstances. I t’ s a fragile eq uilib rium, b ut I think w e did w ell.

How do you monitor the quality of the information you have to work with?Our financial agreements are fundamentally sound, which helps. P redictions are another story altogether. T here is q uite a difference b etw een hav ing 50, 000 or 90, 000 b eds occupied at the end of the year. T hen the new spapers say that there is a political agreement and few er people w ill come, b ut w ill that hold true in practice? I deally, you w ant to have some extra capacity, without having to finance too many v acancies. W hat are you aiming to achiev e and w hat risk s do you dare to tak e? W e alw ays face this challenge.

The public and Government have a strong preference for small-scale reception facilities. So why has the COA opted for large-scale reception facilities? T hat preference is familiar. I n our ex perience, w e are perfectly capab le of handling reception centers w ith 600– 1, 500 people. C enters w ith 3 00 people are feasib le, too, b ut they are ab out 2 0% more ex pensiv e to run. A center w ith 50 places could cost up to 150% more.

Migration

I nterv iew by Ton v an H olten, E x ecutiv e D irector, A dv isory, E rnst & Y oung N ederland LLP

Class

T om F letcher, glob al strategy director for T heirw orld and the G lob al B usiness C oalition for E ducation, v isits L eb anese and Syrian refugee children in Sab is School in M tein, M ount L eb anon.

Action

Around the w orld, 7 5 million children and adolescents hav e had their education directly affected b y emergencies and prolonged crises,

and 3 7 million hav e b een forced out of school completely. T he prob lem is acute in parts of Y emen, the C entral

A frican R epub lic and the L ak e C had B asin, among others, b ut has perhaps b ecome most v isib le in the dev astating impacts of the Syrian w ar. I n all these places, the poorest and most marginaliz ed — especially girls and young w omen — are most affected.

M ore than 2 million Syrian children hav e b een forced out of school since the conflict began in 2011. Before the w ar, almost three-q uarters of children completed

secondary education and primary school enrollment w as nearly univ ersal. N ow , that progress has b een reversed. And as Syrians have fled, the burden to ensure these children hav e a future is one w ith w hich the entire region is struggling.

Breaking pointW hat efforts are b eing made to prov ide education for these displaced children? Syria’ s neighb ors, L eb anon, J ordan and T urk ey, hav e opened the school gates to refugee children. T he b urden on L eb anon and J ordan has b een immense — more than a q uarter of L eb anon’ s population are refugees. L eb anon has w ork ed to integrate


Migration

S y r i a n r e f u g e e c h i l d r e n an education crisis

In five years, the Syrian conflict has created the w orst refugee crisis for three decades, producing 4 . 8m refugees from Syria and another 7 . 6m internally displaced people.

N umb er of registered Syrian refugees, b y country, 2 011– 17

2

4

6m

J o r d a n

L e b a n o n

T u r k e y

2 011 2 012 2 013 2 014 2 015 2 016Y T D 2 017 F

O t h e rE g y p t

2 . 8

1. 1

0. 60. 10. 3

these refugees into the ex isting school system b y dev eloping a doub le-shift arrangement, w ith the support of international donors. Lebanese children finish the school day in the early afternoon, and refugee children tak e ov er the school for a second shift.

T he L eb anese G ov ernment has show n ex traordinary leadership, b ut the demands are huge. Schools are educating three times as many children as they w ere designed to, and there are risk s that L eb anese parents may b ecome w orried ab out the impact on the q uality of their ow n children’ s education. A s no end to the war appears in sight, without significant and sustained international assistance — a shared b urden — L eb anon w ill not b e ab le to cope.

Wrecking lives and economiesSo, w hat are the effects of a lack of schooling in this region and elsew here — for the indiv iduals themselv es, their communities and countries? C hildren w ithout a safe place to play and learn are more v ulnerab le to ex ploitation, including forced marriage, child lab or, sex ual and domestic slav ery and recruitment b y ex tremist groups.

I n L eb anon, around 7 0% of out-of-school children are estimated to b e w ork ing. T he recent E b ola crisis in West Africa forced five million children out of their classrooms and some w ill nev er return. B etw een O ctob er 2 014 and J uly 2 015, during the height of the E b ola crisis in Sierra L eone, there w ere at least 14 , 000 new teenage pregnancies. O ne teacher

W hen regions are disrupted b y w ar or disaster, children can miss v ital years of education. K o l l e e n B o u c h a n e ex plores the effects on out-of-school children and their communities

O v er half of Syrian refugees are children under 18. T hat’ s 2 . 5 million children.

N umb er of Syrian refugee children, b y age and geography, 2 016

0– 2

A g e

3 – 5 6– 15 16– 18

496k 481k 1, 319k 2 58k

H o s t c o u n t r y

1, 517k 447k 32 9k 2 54k

T urk ey L eb anon J ordan O thers

4. 8mS y r i a n r e f u g e e s

A dults( 19+ )

2 . 3m

C hildren( 0– 18)

2 . 5m

reported that 4 0% of her 5th grade classroom returned pregnant, demonstrating clearly that education is a first line of defense against exploitation and abuse.

Particularly in areas of conflict and instability, it is important to hav e not only mark etab le sk ills b ut also the ab ility to think critically and protect yourself. Schools are not only places w here children receiv e lifesav ing information, they also offer them space to dev elop a sense of normalcy and a plan for their future. W ithout these short-term protections and the security of long-term options, children and young people are more easily ex ploited b y those mak ing false promises of j ob s and solidarity. W ithout education, and the opportunities and choices it b rings, they are more v ulnerab le to hav ing v iolence committed against them or choosing v iolence as their ow n path.

L ack of education also w idens ineq uality b etw een groups and leads to conflict. States with high levels of educational ineq uality are 50% more lik ely than other states to have a violent conflict. And, when peace arrives, there is less chance of it holding.

T he av erage length displacement for a refugee is 17 years — an educational lifetime. I n the Syrian case, lack of access to good q uality education and sk ills options leav es millions w ith no plan for their future and limited

“C hildren w ithout a safe place to play and learn are more v ulnerab le to ex ploitation”


Migration

O v er half of school-aged Syrian refugee children are out of school. M ore than 95% of them are in T urk ey, L eb anon and J ordan. M eanw hile, more than 2 million Syrian children are out of school in Syria.

N umb er of out-of-school children aged 3 – 18, b y country, Septemb er 2 015

402 , 000

334, 000Lebanon

696, 000

Turkey

110, 000

161, 000Jordan

988, 000

I raq

96% of Syrian refugeeout-of-school childrenare outside camps



Total number of out-of-school children

Total number of Syrian refugee out-of-school children

346, 000

40, 000

w ays to surv iv e — millions w ho cannot contrib ute to the economy or to reb uilding. N ational and regional economies cannot grow sustainab ly if large sw athes of their population are uneducated.

Aid and actionW hat more can b e done to tack le the issue? T he b iggest ob stacle is money. W hile funding needs for education in emergencies hav e risen b y 2 1% since 2 010, donor funding to education through humanitarian response appeals has fallen b y 4 1%, according to an A W orld at School scorecard. T his has b egun to change, b ut slow ly.

E arlier this year, on F eb ruary 4 , a Supporting Syria and the R egion conference w as held in L ondon and education w as at the top of the agenda. U S Secretary of State

J ohn K erry and N orw egian foreign affairs minister B orge Brende made specific pledges for education. These were the first such pledges at a conference of this type.

T he G lob al B usiness C oalition for E ducation raised commitments of U S$ 7 5 million from the priv ate sector in direct funding and in-k ind contrib utions. P riv ate sector funds and other resources such as netw ork s and infrastructure, technical ex pertise and technology, and other types of core b usiness can contrib ute to solv ing the crisis. P riv ate sector leaders hav e articulated many reasons for getting inv olv ed, including the need to demonstrate moral leadership, employee engagement, b uilding future mark ets, maintaining a sk illed lab or force and w ork ing tow ard a stab le b usiness env ironment.

A higher percentage of upper secondary school age children are out of school b ecause many hav e to w ork or are not qualified to enter the upper secondary lev el. “ I can tolerate that my child is out of school for tw o years, w ork ing in the fields to support the family. B ut three years? F our years? ” — Syrian refugee

P ercentage of out-of-school Syrian refugee children aged 3 – 18, b y age group, 2 015

Basic (6–15 years old) Upper secondary (16–18 years old)

79%

63%

98%

31% 37%

81%

30%

49% 54%

Lebanon Turkey Jordan

Pre-primary (3–5 years old)

% out-of-school Syrian refugee children

2 0%O n e y e a r o f s c h o o l i n g f o r b o y s m a k e s t h e m

l i k e l y t o b e i n v o l v e d in conflictl e s s

K olleen Bouchane is D irector of Policy and R esearch at the G lobal Business C oalition for E ducation (G BC -E ducation)

Sustainable investmentsT he E ducation C annot W ait fund for education in emergencies w as launched at the W orld H umanitarian Summit on M ay 2 3 , 2 016, to increase political w ill, raise funds and improv e coordination for the prov ision of education in emergency and crisis. T he launch of this fund is the single most important collectiv e mov e to include education in humanitarian responses.

R epresentativ es from the U nited K ingdom, the U nited States, N orw ay, the E uropean U nion and the N etherlands stepped up and pledged U S$ 87 . 5 million, j ust ov er half of the U S$ 150 million needed to fully fund year one.

Non-state pledges for the first year included a U S$ 2 . 5 million contrib ution from D ub ai C ares to support the set-up of the fund’ s secretariat, b ringing the total to

more than U S$ 90 million. T he G lob al B usiness C oalition for E ducation also committed to b egin w ork across the private sector to mobilize US$100 million in financial and relev ant in-k ind contrib utions from interested b usinesses and b usiness leaders.

A lthough the challenges are large and the situation for these children is dire, there is also a tremendous opportunity. W e’ re at a moment w hen, w ith the right leadership, w e can fundamentally transform the w ay w e respond to tragedy and v iolence. I t’ s only hopeless if w e do nothing.


E d u a r d o P a e s has b een mayor of R io de J aneiro since 2 009. His time in office has been dominated b y preparations for this summer’ s O lympic and P aralympic G ames. H ere, he tells Citizen Today w hat it is lik e to hav e the w orld w atching your city, and ex plains how the G ames w ill leav e a lasting legacy for the people of R io.

Olympic Games

Amarathon

What did Rio learn from the experience of hosting the Pan American Games in 2007? I t’ s a much smaller ev ent than the O lympics, b ut I think the P an A merican G ames w ere v ery important for R io. I t w as lik e a test ev ent for the O lympics. I t w as an amaz ing ex perience, b ut w hen you get to the O lympics it’ s a completely different ev ent. N othing compares to the O lympics. I t’ s lik e a w ar in peace time.

How did it feel when Rio received the Olympic flag from London back in 2012?T he day you w in the b id, you feel a huge responsibility. But when you get the flag, after the prev ious G ames, you k now that ev eryb ody is going to b e look ing at w hat you are doing — how the construction is going, how the organiz ation is going. O rganiz ing the O lympics b rings a mix of feelings. I t’ s a great opportunity, b ut at the same time it’ s something that mak es you w orry and giv es you a lot of w ork .

not asprintsprint

Hosting the Games offers a city great opportunities for development. How can city mayors make sure that the city takes these opportunities?W hen w e b id for the G ames, w e w ere competing against cities lik e M adrid, T ok yo and C hicago. T hese cities had much b etter infrastructure than us. B ut w e turned that prob lem into an asset. W e got the G ames not b ecause w e had b etter infrastructure, b ut b ecause w e lack ed it. O ur pitch w as that if the G ames are ab out b ringing change and mak ing people’ s liv es b etter, you’ v e got to come to R io. I rememb er j ust after w e w on the O lympic b id, I w ent to B arcelona, and spok e w ith the city’ s former mayor, P asq ual M aragall. H e said there are tw o k inds of O lympic G ames: the ones w here the G ames uses the city and those w here the city uses the G ames. So B arcelona w as a great ex ample for us. T hey used the G ames as a reason to get things done, and w e’ re doing the same in R io. T he G ames are ab out sports, entertainment, fun, and the gathering of people and nations. B ut they can b ring great change, such as new infrastructure and a b etter life for the city.

Once the Games are over, what will be the next stage of development to boost Rio’s economy?T he O lympics in R io are ab out legacy. I f you look at the figures, the biggest budget is the legacy budget. For ex ample, w e are b uilding new train and metro lines and renov ating the port area. I ’ m not saying R io is going to b e perfect, b ut it is going to b e a b etter city, w ith b etter infrastructure. T ourism is one of our greatest assets, and the G ames hav e helped us almost doub le the numb er of hotel rooms in our city. W e are look ing to b uild a more integrated, more eq ual city, w here people hav e a b etter q uality of life. T he O lympics hav e helped us to adv ance this agenda a lot in a short period of sev en or eight years.

How did you approach the task of building an Olympic legacy?I t is a challenge, b ecause for the O lympics you b uild more v enues than is necessary for your city. So w e are using pub lic priv ate partnerships to adapt and maintain sports arenas. F or ex ample, one is going to b ecome a school, another a training center and another w ill mak e money for the priv ate sector.


You are the current chairman of the C40 Cities Climate Leadership Group. What perspective has this given you on the sustainability issues facing large cities?C ities hav e a maj or role to play on climate change. B ecause mayors are closer to the people, the actions that they can tak e are faster. T hey can deliv er things much q uick er than the international organiz ations, such as the U N . W ith more than half of the w orld’ s people liv ing in cities, the actions tak en b y mayors to address climate change are so important. O rganiz ations lik e C 4 0 help cities to share ex periences. I n R io, w e hav e an operation center that gathers data from a b unch of departments and uses lots of technology to get things done in a smart, sustainab le w ay.

You will leave office at the next city election. What advice can you offer to your successor and, indeed, other city leaders? F irst of all, lov e the city, and don’ t let people say too many b ad things ab out it. I f you don’ t b eliev e in your city, you w ill nev er b e ab le to change it for the b etter. Second, w ak e up early, go to sleep late, w ork sev en days a w eek . T hird, gather a great team around you. And finally, think about the people that need the most help. W hen you run a city, it’ s lik e raising a family. Y ou lov e all of your children the same w ay, b ut there might b e one w ho is a little w eak er, or shyer, and you need to pay more attention to them. So alw ays pay more attention to the citiz ens that need help the most.

“W e are look ing to b uild a more integrated, more eq ual city, w here people hav e a b etter q uality of life”

F or more on preparations for the 2 016 O lympic and P aralympic G ames, please v isit ey. com/ citiz entoday.

E Y B raz il is the ex clusiv e prov ider of professional serv ices in the consulting category for the R io 2 016 O lympic and P aralympic G ames. E Y B raz il is w ork ing w ith G ames organiz ers on a v ariety of proj ects, adv ising on issues such as v enue management, logistics, sustainab ility, procurement, supply chain management, finance, budgeting, risk , w ork force training, planning, measurement, health and safety, security and technology.

Olympic Games

http://www.ey.com/citizentoday

Future

School children taking part in the Citizen Science program

of their handin the


Education

I n all parts of the w orld, sk ills in science, technology, engineering and mathematics are crucial to sustainab le economic, social and env ironmental dev elopment. W i l l C o o p e r introduces a new innov ativ e solution to enhance ST E M learning that benefits young people, schools, scientific researchers, b usinesses and gov ernments alik e.

It’ s graduation day 2 03 3 . A group of young people collect their degree certificates, hug their proud parents and celeb rate w ith friends. I t’ s a day of j oy.

T he end of a j ourney in formal education that has lasted for most of their young liv es. A mong the congratulations and promises to k eep in touch, some of the graduates may contemplate the road ahead.

T he w orld’ s center of economic grav ity has shifted decisiv ely to the east and south. A lmost tw o-thirds of the planet’ s people liv e in cities. T he effects of climate change are b eing felt across the glob e, and gov ernments and scientists are w ork ing together to forge technologies and solutions that driv e sustainab ility. I n parts of the dev eloped w orld, aging populations are forcing new approaches to health care. A nd automation and increased productiv ity hav e b rought ab out the loss of millions of manual and low -sk illed j ob s in rich and poor countries alik e, creating ev en greater stresses on education, lab or and social w elfare systems.

T hese graduates of 2 03 3 w ill j oin a w ork ing w orld that is v ery different from that of 2 016 — the year in w hich they started school. I t is a w orld of w ork that demands new sk ills. Science, technology, engineering and mathematics ( ST E M ) are in greater demand than ev er b efore, as organiz ations and societies seek innov ativ e w ays to ov ercome our planet’ s greatest challenges.

New horizonsT he b oundaries of science and technology are b eing stretched and redefined like never before, due to scientific breakthroughs, rapidly emerging technologies and the w ay younger generations learn and apply sk ills.

I nv estment in education and learning must respond accordingly. N ew technologies such as adv ances in cognitiv e and q uantum computing, rob otics and synthetic b iology, together w ith a glob al priority to dev elop greener economies and align education w ith the sustainab ility agenda, req uire a step change in w hat ST E M means for our children. T his w ill affect ev ery education system in the w orld, from dev eloped to emerging economies.

W hile these changes prov ide huge opportunities for grow th, innov ation and dev elopment, w e must prepare now . A nd that means ensuring that today’ s children — the people w ho w ill solv e tomorrow ’ s prob lems — are eq uipped w ith the right sk ills and motiv ations.

A new solution has b een dev eloped to do j ust that. C itiz en Science is a mob ile platform that enab les ST E M learning b oth inside and outside of the classroom. I t encourages young people of all ages to learn ab out the pow er of science through ex perimentation and play on a mob ile dev ice. L earning content is prov ided through collaboration with the world’s most advanced scientific institutions, priv ate sector companies, and entertainment and sports celeb rities.

Turning a mobile phone into a pocket laboratoryH ow does C itiz en Science w ork ? I t contains a range of ex periments and challenges that encourage young people to collect data and share it with leading scientific research institutions. C ontent is designed to b e fun, engaging and age appropriate. I t is aligned to local school curricula to enhance the learning ex perience b oth inside and outside of the classroom.

Y oung people earn points for participating. T he more they do, the more they earn. P oints are redeemed through the platform for a range of rew ards. T hese include social ex periences, such as cultural activ ities, music concerts, and sports and science ev ents; w ork and education ex periences, including scholarships, w ork placements, internships, student ex changes and entrepreneurship support programs; and material rew ards, such as retail rew ards and celeb rity merchandise. T he rew ards program is tailored for each country to ensure that it is relev ant and appropriate to local cultures.

B eyond this, C itiz en Science prov ides adv anced analytics capab ilities to gov ernments, educators and b usinesses alik e, on b ehav iors and learning patterns for young people engaged in ST E M . T he true pow er comes from location-b ased data that prov ides access to insights nev er seen b efore.

Excited about STEMWhat are some of the benefits of Citizen Science? F or young people, simply put, it creates opportunity. E ducation systems are typically not eq uipped to get young people truly ex cited ab out ST E M . C itiz en Science mak es ST E M learning fun. I t is engaging, not only enticing young people to pursue careers in STEM-related fields, but also helping them dev elop b roader 2 1st century sk ills relev ant across all lab or mark et sectors.

R ecently pub lished research b y the Smithsonian I nstitution has demonstrated that improv ements in mathematical literacy — the language of science and technology — has a direct impact on general literacy. C itiz en Science helps to dev elop sk ills, such as critical think ing and prob lem solv ing, w hich are v itally important to young people as they progress through education and into employment. I t connects young people around the w orld to each other and to their env ironment, mak es them b etter and more responsib le citiz ens and deepens their aw areness of topics such as climate change and sustainab ility.

C itiz en Science helps teachers b y enhancing the classroom ex perience and b ringing science to life through the mob ile dev ice as part of ex periments and activ ities that are aligned to curricula. T he link b etw een out-of-classroom learning activ ities and in-school performance is prov en, and encouraging young people to use C itiz en Science in their free time w ill directly improv e ST E M grades and general literacy.

The benefits for governments and wider society include the dev elopment of a more creativ e, innov ativ e and resourceful population that is b etter eq uipped for the future.

There are also clear benefits for scientific research communities. Scientists need localiz ed data to conduct research into topics lik e the impact of climate change. T his is b oth time consuming and ex pensiv e.

C itiz en Science allow s scientists to design data crow dsourcing ex periments w ithin the platform that encourage children to act as a glob al netw ork of science data gatherers. So children around the w orld play a role in some of our planet’ s most urgent research programs.

B usinesses that w ork w ith C itiz en Science connect to young talent b y prov iding, for ex ample, scholarships and w ork ex perience programs — helping them to address longer-term challenges ov er the acq uisition of talent. I t connects companies to young people at a much earlier stage of their liv es and gets young people think ing ab out their career options much earlier in the education cycle.

The Middle East and beyondE Y and T rib al P lanet I nc. , the dev elopers of the C itiz en Science platform, hav e formed an ex clusiv e collab oration to b ring C itiz en Science to the M iddle E ast region. I nitially piloted w ith schoolchildren from the U nited A rab E mirates in M arch 2 016, the glob al unv eiling of the platform w as held in A b u D hab i on 2 5 A pril 2 016 at an ev ent deliv ered in collab oration w ith the A b u D hab i E ducation C ouncil ( A D E C ) .

H is E x cellency, D r. A li A l N oaimi, D irector G eneral of A D E C , spok e of the importance of ST E M education in achiev ing the v ision of A b u D hab i and the U A E . Scott K elly, a former U S astronaut, endorsed the importance of ST E M and C itiz en Science. T hey w ere j oined b y D r. C arol O ’ D onnell of the Smithsonian Science E ducation C enter; J eff M artin, F ounder and C E O of T rib al P lanet; and Stephen F arrell, M E N A P artner and H ead of A dv isory M ark ets, E rnst & Y oung M iddle E ast ( A b u D hab i) .

E Y and T rib al P lanet I nc. are now w ork ing together to enab le the rollout of the C itiz en Science platform to young people across the M iddle E ast. T he region is on the cusp of significant change, underpinned by the need to div ersify economies and reduce reliance on oil. T hese gov ernments hav e prioritiz ed the importance of ST E M as a k ey dev elopment strategy for innov ation and future

“Science is the greatest eq ualiz er for mank ind, creating unb ounded opportunities for young people”


Vehicles submerged in flood waters in the United States. Climate change brings many challenges, and the world needs more people equipped with scientific and engineering sk ills to help comb at them

economic grow th, and are inv esting heav ily in education systems to b ridge the gap b etw een education and employment.

E mployers in the region, particularly in the priv ate sector, struggle to find the skills they need, especially from young nationals leav ing education. Y oung people in schools, colleges and univ ersities are unclear ab out their career options and pathw ays. A nd educators lack information ab out the true sk ills and capab ilities needed b y a rapidly changing lab or mark et.

As a result, governments are facing significant challenges in deliv ering the outputs from the education system that are fundamental for priv ate sector grow th, innov ation, entrepreneurship and social cohesion. F uture b alancing of mark et demand and lab or supply w ill req uire much closer collab oration b etw een all the players, and innov ativ e solutions to ensure that the generation now coming through school is eq uipped and motiv ated to compete.

C itiz en Science show s how this can b e achiev ed. B ut these challenges are not restricted to the G ulf states. They are global. Hence the vision over the next five years to mak e C itiz en Science av ailab le to 500 million young people around the w orld.

Voyage of discoveryScience is the greatest eq ualiz er for mank ind, creating unb ounded opportunities for young people. I t creates a generation of inq uisitiv e think ers, motiv ated to b e innov ativ e and creativ e. N ev er b efore has the prioritiz ation of ST E M learning at the v ery earliest stages in our children’ s education b een more important to our w orld.

T o solv e the w orld’ s greatest prob lems, our planet needs millions of scientists, engineers and technologists. Our challenge is not finding them. They already exist. T hey are in communities across the M iddle E ast. T hey are in cities in A frica, tow ns in the U nited States and rural v illages in C hina. O ur challenge is how w e connect them to knowledge, each other and scientific research facilities around the w orld — and motiv ate them to learn on their terms. A nd that means emb racing digital as the medium of choice for young people.

A s they contemplate their future, the ST E M graduates of 2 03 3 w ill hav e a good idea of w here they are going. C itiz en Science w ill hav e already tak en them on the early part of their j ourney. T hey w ill hav e learned through self-discov ery, connecting w ith their peers, communicating w ith some of the greatest minds on the planet and supporting glob al research into some of the w orld’ s most important challenges. T hat is q uite a platform on w hich to b uild.

Stephen Farrell, MENA Partner and Head of Advisory Markets, Ernst & Young Middle East (Abu Dhabi)“ T he C itiz en Science platform is primarily ab out youth dev elopment. T his is incredib ly important for children’ s adv ancement through their education and careers, b ut also to ensure that they find a productive and valuable place in w ider society. ”

Ross Maclean, MENA Advisory Digital Lead Partner, Ernst & Young Middle East (Dubai)“ W e are proud to b e w ork ing in collab oration w ith T rib al P lanet to b ring C itiz en Science to the M iddle E ast and N orth A frica region. T rib al P lanet shares E Y ’ s v ision of b uilding a b etter w ork ing w orld, b y tack ling some of societies’ greatest challenges through the pow er of digital. It is the first in a series of innovative digital serv ices that E Y and T rib al P lanet w ill j ointly b ring to mark et in the region. ”

W ill C ooper is A dv isory M iddle E ast & N orth A frica G ov ernment Social I nfrastructure Lead Partner, E rnst & Y oung M iddle E ast (A bu D habi) w i l l . c o o p e r @ a e . e y . c o m

“T o solv e the w orld’ s greatest prob lems, our planet needs millions of scientists, engineers and technologists”

Education

S Cecile Christensen, Head of Office for System Administration and Security at the D anish A gency for D igitaliz ation

Trust is one of the most important commodities for any organiz ation, especially gov ernments. T hey can only b e effectiv e if there is b road trust

in their ab ility to k eep people safe, uphold the law and prov ide pub lic serv ices. H ow ev er, around the w orld, trust in gov ernment is low and falling. A cross the O rganisation for E conomic C o-operation and D ev elopment countries, j ust 4 0% of people trust their gov ernment.

T his has important implications in the area of data and priv acy. G ov ernments around the w orld are prov iding more serv ices through digital platforms. R enew ing a driver’s license, registering with a doctor or filing a tax return inv olv es giv ing a gov ernment agency some v aluab le personal data. T hese agencies are collecting and storing v ast amounts of information on citiz ens. I n the contex t of declining trust, it is crucial that the agencies mak e sure that this data is properly collected, stored and used.

D enmark is an ex ample of a country that is assessing how its gov ernment b odies manage data. I n recent years, the country has sought to mak e its pub lic serv ices more efficient and responsive, in part by digitizing administrativ e task s and processes. T herefore, D anes hav e handed ov er more of their personal data to pub lic b odies. N ew E U regulations gov erning data protection are

creen

A s citiz ens place more of their data in the hands of others, w hat measures can gov ernment organiz ations tak e to mak e sure that this information is stored and used securely? J o n a s G r o e s discusses the issues w ith D enmark ’ s data security chief.

test


coming into force in 2 018, and pub lic deb ate ab out the security of data is grow ing louder in D enmark . T herefore, in order to build trust and confidence, Denmark’s digitaliz ation agency decided to w ork w ith E Y to test the current data capab ilities of the country’ s pub lic sector organiz ations, identify the b arriers they face and ex plore w ays in w hich they can improv e the handling of data in the future.

Cecile Christensen is Head of Office for System A dministration and Security at the D anish A gency for D igitaliz ation, a gov ernment organiz ation under the auspices of the country’s finance ministry. For her, trust is vitally important: “In order to benefit from digital solutions, w e need to mak e sure that people feel safe using them. T hey must trust that their data w ill b e k ept in a good w ay. T herefore, focusing on trust is a v ery important aspect of the digitiz ation agenda. ”

T he E U G eneral D ata P rotection R egulation ( G D P R ) comes into force on M ay 2 4 , 2 018. A ny organiz ation that processes personally identifiable information on E U residents is compelled to comply w ith its terms. C ecile sees this as the continuation of the prev ailing direction of trav el, rather than a new turn: “ I t’ s the same legislation, j ust w ith a tw ist I think . I t’ s more documentation, more security analysis, more risk analysis, some sharper deadlines and more req uirements. ”

F or D enmark ’ s pub lic sector, the b iggest impact of the regulation is to raise pub lic and media aw areness on data protection and priv acy issues. A nd C ecile ack now ledges: “ I t’ s safe to say that w e are not all w here w e should b e, in order to b e compliant w ith this legislation. ”

T he study undertak en w ith E Y show ed that most gov ernment agencies hav e the b asics in order, b ut there’ s also more w ork to do. O ne w ay to do more is to ensure that systems and solutions are designed from the outset w ith data protection in mind. T his w ould b e b etter than the current approach w here priv acy ” fences” hav e to b e retrofitted.

“ I n the pub lic sector, w e hav e a tradition of b uilding large I T systems w here w e hav e gathered a lot of data, and w e hav e a traditional w ay of think ing ab out priv acy. W e should look at new models for priv acy, and new w ays of segmenting the systems and using encryption models. ”

T o prepare for the new E U regulation, the j ustice ministry and the digitaliz ation agency are w ork ing together to interpret the legislation and to design manuals and guidance to mak e sure that pub lic sector organiz ations comply. “ I t’ s v ery interesting to hav e the b ack ground k now ledge from the study, on w here w e are and how to proceed w ith the w ork , ” says C ecile.

O ne of the aims of D enmark ’ s digitiz ation agency is to improv e the ex perience of the indiv idual or organiz ation that giv es a gov ernment agency their data. A w ay to do this is to ensure that they only giv e their data to a single

Data security

Jonas G roes is a partner and G ov ernment and Public Sector Leader, E rnst & Y oung D enmark P/ S

agency, instead of giv ing it to ev ery gov ernment entity w ith w hich they deal. T his w ould, of course, req uire agencies to share data more than they hav e done in the past. H ow ev er, regulations only allow organiz ations to use data for the purpose for w hich it w as gathered.

C ecile says: “ W e w ill look into solutions w here people mak e an acceptance of data b eing shared, as long as it is b eing used in their interest. T he gov ernment sector can use data in some w ays that the priv ate sector cannot b ecause, most of the time, it is used for the benefit of citizens and because there often is a legal b asis for this. ”

P ub lic sector organiz ations in D enmark are w ork ing hard to comply w ith the new regulations. B ut compliance must go hand-in-hand with efficiency. “We will do it in a pragmatic way, so we can find the right b alance, ” says C ecile. “ F or a small municipality, or a small agency, does it mak e sense to hav e one dedicated person w ho should only focus on this area? Does each agency need a data protection officer?

D oes each municipality need one? C an w e split the roles somehow ? T here are a lot of q uestions to b e answ ered, ” says C ecile.

A nsw ers come in the form of sharing and w ork ing together across agencies, and conducting risk assessments to inform decision-mak ing. A nd it’ s not a game b y numb ers. A small agency or municipality might hold v ery important data, and a large one may hav e lots of data that is less critical. C apab ilities must b e matched carefully to need.

D ata security is now a univ ersal issue. A ll citiz ens, and b usinesses, hav e important personal data that they share w ith pub lic and priv ate b odies. A t the same time, criminals are acting on the internet, trying to steal this data. G ov ernment should help driv e aw areness of the importance to people and organiz ations of treating their data carefully. A nd it must mak e sure that it not only complies w ith regulations, b ut also uses these regulations to help it think harder and more strategically ab out how it captures, stores and uses data.

D enmark has show n that it is rising to this challenge. A nd b y doing so, it is tak ing great strides tow ard renew ing and b uilding trust w ith its people.

“In order to benefit from digital solutions, w e need to mak e sure that people feel safe using them”

T he president is sw orn in at the U S C apitol

forPrepa

ringPolitical executives

POWERW hen a new president takes office in the U nited States nex t year, an army of 8, 000 political ex ecutiv es w ill accompany the person to the nation’ s capital. W hat do these appointees do, how do you b ecome one and w hat does it tak e to succeed in the role? G e o r g e A t a l l a finds some answers in a new b ook for political ex ecutiv es and talk s to a seasoned W ashington insider ab out w hat is b eing done to improv e transition planning in the U S.

At noon on F riday, J anuary 2 0, 2 017 , on the steps of the U S C apitol, the 4 5th president of the United States will take the oath of office.

As the final bars of the presidential anthem “Hail to the C hief” drift aw ay into the crisp w inter air, thoughts w ill q uick ly turn to the challenges facing the new president, and the program for the administration’ s first 100 days.

B ut, of course, the new president w ill not b e the only political figure coming to Washington, D.C. wanting to mak e their mark . A round 8, 000 political appointees w ill j oin the new administration, tak ing up leadership and management roles in departments and agencies of the federal gov ernment. L ik e the president, they w ill hav e come through a testing selection process — though they are appointed, not elected — and they w ill also have plans for their crucial early months in office.


W ho are these political appointees? H ow do you get to b ecome one? W hat’ s in store for them once they assume office? And how can they make an impact? T hese are some of the q uestions addressed in a new b ook , Succeeding as a Political Executive: 50 Insights from Experience, w ritten b y P aul R . L aw rence, a leader in E Y ’ s gov ernment and pub lic sector practice, and M ark A . A b ramson, P resident of L eadership I nc.

T his is the fourth b ook in a series that b egan in 2 009, at the b eginning of P resident B arack O b ama’ s A dministration. T he authors started out b y interv iew ing political appointees in positions such as deputy secretaries and heads of agencies w ithin departments. T hey interv iew ed the ex ecutiv es ev ery six months for the first two years of the Administration. First, they explored how the ex ecutiv es got started in their role and set their agendas. N ex t, they discussed how they w ere progressing, b efore speak ing again after another six months to establish what they had accomplished. The first three

books profiled these executives and set out the different types of political ex ecutiv e in the federal gov ernment. T he fourth b ook b rings the story together, setting out the w hole j ourney of the political ex ecutiv e, from the point w hen an indiv idual think s they might w ant to b ecome one and deciding whether to apply; through the confirmation process, starting out and succeeding in the role; to b uilding a legacy and deciding w hen to q uit.

“ T he b ook is for people w ho are think ing ab out b ecoming political ex ecutiv es and the people w ho select them — the White House Office of Presidential Personnel,” says P aul L aw rence, one of the b ook s authors. “ I t helps them to think ab out how they choose the right people. ”

Delivery mechanismT he 8, 000 or so political appointees are a small percentage of the federal gov ernment w ork force. B ut many ow e their position to the president, and therefore are k ey personnel. T he direction of the administration is set b y the president, memb ers of his cab inet and his closest adv isors, and these political appointees are charged w ith managing federal gov ernment agencies effectiv ely so that policy is turned into action.

I ncoming administrations, w ith a fresh mandate and a thirst for action, tend to concentrate on ideas

and policymak ing. B ut, according to P aul, it is j ust as important to get the management and deliv ery of policy right. A nd that means getting the right political appointees into the right roles.

President Obama’s flagship health care reforms were hit b y prob lems w ith the w eb site that w as crucial to the deliv ery of the policy. T he health care reform policy w as hugely controv ersial and attracted v ast amounts of attention. I n contrast, the practical application of the policy got v ery little cov erage, until things started to go w rong.

“ T here is this tension b etw een the ex citement of creating policy, and the rather mundane w ork of actually managing, ex ecuting and deliv ering that policy, ” says P aul. B ut it is crucial to get deliv ery right.

Life in the fishbowlF or those w ho w ish to tak e on responsib ility for policy deliv ery, the decision to seek a political ex ecutiv e role should not b e tak en lightly. Succeeding as a Political Executive helps prospectiv e applicants to decide if they are really ready to tak e on the task .

D an G . B lair is P resident and C E O of the N ational A cademy of P ub lic A dministration ( N A P A ) . H e has 2 6 years’ ex perience in the federal gov ernment and is a prominent leader in pub lic serv ice management. W hat adv ice does he hav e for those w ho hav e decided to pursue a role as a political ex ecutiv e? “ T his is a b rav e new w orld for many people w ho hav e come into gov ernment for the first time,” he says. “There are multiple pitfalls and, if you’re not careful, you could find yourself in a difficult situation due to the intricacies of the rules of operating in a federal gov ernment env ironment. ” U nderstanding the ethics, federal gov ernment rules on hiring and contracting, the roles of the W hite H ouse and C ongress, and w hat you can and cannot say during your confirmation process are all vital.

The confirmation process can present a huge hurdle to ov ercome. I t can b ecome lengthy, intrusiv e and painstak ing. D an receiv ed successiv e presidential appointments, to the Office of Personnel Management and the P ostal R egulatory C ommission. “ M y recollections are prob ab ly the ex ception to w hat many hav e ex perienced recently. I had two very smooth confirmations,” says D an. “ Y ou’ re ask ed w hether there is anything in your b ack ground that could emb arrass the president, so you hav e to think hard. D epending on the lev el of the role, they’ ll go b ack 7 , 10, 15 years, mayb e until the age of 18. So b e prepared to discuss w hat you did w hen you w ere in college. A nd you must mak e sure that you prepare your family for any surprises that might b e out there. I t’ s really a question of exposing your life to the fishbowl that W ashington has b ecome, ” he says.

“T here’ s a tension b etw een the ex citement of creating policy, and the mundane w ork of actually managing and deliv ering it”


Political executives

C ongress and the W hite H ouse hav e tak en measures to improv e transition planning. T his is w elcome new s for D an B lair. “ W e hav e seen since 2 000 an increased emphasis on b etter transition planning. T he 2 000 transition was difficult. Not only was it truncated because of the disputed election, b ut also I don’ t think that the incoming administration had ex ercised the proper planning necessary to transfer a new administration — from the opposition party — into pow er. ”

P resident G eorge W . B ush w as committed to ensuring that w hoev er succeeded him did not hav e the same ex perience. T he 2 008 transition is held up as a prime ex ample of how to mak e an effectiv e transition, and the O b ama A dministration readily credits its predecessor for helping it prepare for gov ernment.

I n turn, the O b ama A dministration is using its ex perience to ensure that it is prov iding the same lev el of continuity and serv ice to w hoev er tak es ov er. “ N ot only has legislation passed that qualified many practices, but w e are also seeing coordinating councils popping up not j ust at the W hite H ouse b ut also in the agencies. A nd the agencies have their own transition officers,” says Dan.

N A P A has mounted an ongoing proj ect called Presidential Transition 2016, to w hich E Y is contrib uting. W hat are the proj ect’ s aims? “ W e w ant to mak e sure that if there are good management practices, they are institutionaliz ed, ” says D an. “ W e w ant those practices preserv ed, protected and enhanced so that the new administration w on’ t see them as stamped w ith the O b ama A dministration. W e w ant them to b e seen as good gov ernment practices that can b e enhanced b y w hoev er tak es ov er the W hite H ouse. ”

Ways to make a mark in 100 daysOnce appointees have been confirmed in their role, they can start to mak e a mark . A s the b ook ex plains, how they set ab out the task depends on the circumstances of the appointment. D oes the appointment come at the b eginning of an administration, w hen ideas of renew al and innovation are fizzing around the department or agency? O r does the new ex ecutiv e come in later, w ith the task of pushing a complicated policy through a tired and reluctant gov ernment machine?

D an B lair has some adv ice that is common to all circumstances: “ Y ou hav e such an opportunity to mak e a difference,” he says. “In the first 100 days, you set the tone. ” T his is a time in w hich you get to k now w ho the employees are within your office. “Pay special attention to the career civ il serv ants, especially the senior ex ecutiv es. U nderstand w hat they need from you in order to accomplish things. T hey w ill b e one of the most important k eys to success. ”

T he 4 3 rd and 4 4 th presidents of the U nited States: the transition of pow er req uires careful planning if the new president is to hit the ground running.

Transition revampSucceeding as a Political Executive contains detailed ob serv ations on how to manage the time b etw een nomination and confirmation. It then sets out how ex ecutiv es can prepare for the role. O ne surprise uncov ered b y research for the b ook w as the v ariab le and, in some cases, inadeq uate onb oarding process. Some of the ex ecutiv es interv iew ed for the b ook w ere show n their new office and left to get on with the job, while others had a formal induction. “It’s hard to imagine a one size fits all solution, ” says P aul L aw rence, “ b ut I w as surprised that the onb oarding w as so informal. ”

I ndeed, the need to improv e preparations for the change of A dministration has b een recogniz ed. B oth

G eorge A talla is E Y G lobal Leader, G ov ernment & Public Sector, and E ditor of Citizen Today.

B uilding and maintaining contacts outside your agency is also crucial. “ Y ou need to b e the consummate netw ork er in order to b e successful, ” says D an. “ B uild personal relationships w ith k ey senators and staff. M ak e courtesy calls w ith H ouse memb ers. T hey should k now who you are before you get confirmed. But you need to be prepared to go up to the H ill on a regular b asis and talk to memb ers and staff. ”

I t is also important to reach out to other stak eholders, such as the priv ate sector and lab or unions, so they understand your agenda and k now that there are open lines of communication. “ Y ou may not alw ays agree w ith them, b ut you must communicate effectiv ely and mak e sure you listen to them, ” says D an.

T he contex t of the appointment is not the only k ey differentiator. N ot all political ex ecutiv e roles are the same. Y ou could b e a deputy secretary, a producer, a regulator or hav e a numb er of other functions. Success in each different type of role req uires a different set of sk ills. T he b ook tak es each role in turn and ex amines the factors that determine success.

The right fitA lthough P aul L aw rence is v ery ex perienced in the machinations of W ashington, D C , his research for the b ook uncov ered some v aluab le new insights. “ I thought that the folk s w ho got these j ob s had a w ider range of discretion, as to w hat they could do, ” he says. “ B ut if you’ re a b ureau head in a department, say, then the department secretary has a plan and the president has a plan for the department. I f you think you’ re going to come in and enj oy an entrepreneurial env ironment, it’ s definitely going to be unsatisfying.”

H e also learned j ust how much ex perience, and getting people in the right place, really does matter. “ A lot of people in the O b ama A dministration had serv ed in the C linton A dministration, eight years b efore. C oming b ack to gov ernment, they w ere ab le to draw on their netw ork s and their understanding of things such as the relationship b etw een the different parts of our gov ernment. ” T he book’s research finds that those with prior experience of government were significantly more productive than those who were coming to it for the first time. “I’m not saying ex perience is alw ays b etter, b ut you can see how it plays out. ”

H av ing relev ant nongov ernment ex perience also led to b etter prospects of success as a political appointee. H e cites the ex ample of F ederal Student A id. “ T his agency prov ides loans to college students and essentially acts as a b ank . T he person w ho they appointed to do this j ob had b een w ork ing in a b ank and really understood w hat it took to run the agency. W ith this k ind of perspectiv e, such people are ab le to understand the organiz ation and the risk s, and k now how to b e more effectiv e. I could really see that in a w ay that I hadn’ t really appreciated b efore. ”

B ut don’ t tak e it j ust from P aul and D an. T he real v alue of Succeeding as a Political Executive: 50 Insights from Experience is that the insight comes straight from a group of people w ho hav e done these political ex ecutiv e j ob s. T heir v iew s are contemporary, candid and benefit from lacking hindsight. Much mainstream reporting of gov ernment concentrates on the political heat of crises, personality clashes and the day-to-day b attle to k eep the show on the road. W hat P aul L aw rence and M ark A b ramson hav e accomplished here, through considered and w ell-targeted research, is to shed light on w hat it actually tak es to succeed in gov ernment.

“Y ou need to b e the consummate netw ork er in order to b e successful”

Succeeding as a Political Executive: 50 Insights from Experience, b y P aul R . L aw rence and M ark A . A b ramson, is published by Rowman & Littlefield P ub lishers, I nc. F or more information, or to ob tain a copy, please v isit row man. com. F or more information on the N ational A cademy of P ub lic A dministration’ s T ransition 2 016 program, v isit napat16. org

T he b ook also contains insights from political appointees in F rance and G ermany. W ith national elections due in 2 017 , Citizen Today will feature the key findings from these countries in a future edition.

http://www.napat16.org

Defense

a bettersupply chainDemand V a l e r i e L a i n e meets R i c h a r d B i e n f a i t , G eneral de D iv ision in the F rench armed forces, and ask s how he has set ab out the task of getting eq uipment to troops w ho need it, w hen they need it


As the saying goes, an army cannot march on an empty stomach. A country could hav e the largest numb er of comb at personnel and the

most ex pensiv e and pow erful w eapons. B ut w ithout effectiv e support — from food supplies and training to the supply and maintenance of eq uipment — its forces cannot perform to their max imum capab ility.

A rmed forces around the w orld are mak ing increasing efforts to mak e sure that serv ice support is prov ided as efficiently as possible. In part, this is driven by the increased scrutiny and pressure that has b een attached to defense b udgets in recent years. A nd effectiv e comb at serv ice support depends on effectiv e supply chains.

F rance’ s defense ministry is mak ing a concerted effort to improv e its supply chains. I n recent years, the country’ s armed forces hav e seen activ e duty in N orth A frica and M iddle E ast theaters. T his, comb ined w ith funding pressure and the effects of an official defense white paper Livre Blanc sur la defense et la sécurité nationale de 2013, has driv en the defense ministry to look at how it can make supply chains more efficient at the best price. T he ministry ask ed E Y to help.

T he task w as to improv e the operational av ailab ility of eq uipment w ithout any additional inv estment of money or personnel. T he ministry started its supply chain proj ect in late 2 013 . E Y j oined the effort a year later, dev eloping a transformation proj ect that gathered solutions in supply chain, organization, HR, financial forecasting, operational ex cellence, communication and change management. T he proj ect is due to continue through to 2 017 . B ut, as G eneral de D iv ision R ichard B ienfait, the proj ect director, says, improv ement of the supply chain is an ongoing proj ect, and the task is b eing ingrained into the ministry’ s culture.

What were the reasons for launching this assignment?W e hav e to go b ack to 2 013 . T hat w as the moment w hen three phenomena occurred. The first was the General R ev iew of P ub lic P olicies. F or the M inistry of D efense, this translated into a significant decrease in personnel of approx imately 54 , 000 people. T he second w as the lev eling off of the defense ministry’ s b udget. A nd the third w as P resident H ollande’ s decision to maintain all the

capab ilities of the armed forces. T herefore, the F rench C hief of D efense Staff ask ed us to propose solutions to meet these three imperativ es. I n response to this req uest, I suggested launching a supply chain proj ect in order to improve effectiveness and efficiency by basing our methods on those in use in civ ilian life, w hich applied perfectly to a military env ironment.

Is the supply chain project a response to current geopolitical or strategic threats, or does it meet purely economic requirements? T he proj ect should b e seen as one that mak es it possib le to improve the effectiveness and efficiency of the armed forces’ logistics. I t w ill contrib ute to maintaining, or ev en increasing, the operational capacity lev el of the forces – if only b y improv ing the technical av ailab ility of the eq uipment needed for operational missions.

What is different about this project?I think w e must look at the supply chain proj ect not as a miracle solution, b ut as a change in approach from w hat w e had b een doing. U ntil now , w e hav e mov ed from one reform to the nex t. E ach time, w e nev er ev en had the time to complete the prev ious reform b efore starting on the nex t one. T he supply chain proj ect not only applies to physical logistics or transport. I t inv olv es strategic inv entory planning, and the design and organiz ation of processes, competencies and functions. E ach part of the proj ect is driv en b y an operational ex cellence approach that demands innov ation and continuous improv ement. I ndeed, this proj ect is not another reform that w ill b e completed. I t is a program for continuous improv ement. O nce the mov ement has b egun, it nev er stops. T hat’ s w hy this is different from w hat w e’ v e done up to now .

General Bienfait: results-oriented

Defense

Why did the Ministry of Defense call on outside providers to help with this change? Why not do it internally? T he complex ity and scope of this proj ect w as ex tensiv e enough to req uire outside ex pertise. W e needed people w ho w ere thoroughly familiar w ith supply chain issues and had implemented improv ements. W e did not hav e all of the sk ills needed w ithin the ministry.

T he proj ect ran into strong resistance from the start. So it w as essential to ex plain it effectiv ely to people. E Y w as a real driv er for this b ecause it helped us to b ring stak eholders onb oard, and there w ere a lot of them for this proj ect. F or some, this took nearly tw o years. So the process w as relativ ely long. E Y b rought techniq ues and tools w e didn’ t k now ex isted, such as L ean M anagement and Six Sigma, w hich w ere used in civ ilian life.

Another benefit was the approach of integrated teams in w hich people w ork together. T hese teams carried out the proj ect through practical, concrete actions, using a highly pragmatic approach. T hat’ s important b ecause it can conv ince people of the progress the proj ect is mak ing. We benefited from a learning-centered approach. Ideas w ere put into practice and alw ays follow ed up b y on-the-ground testing: this means that w e can test on a limited scope and see w hether the model under consideration is the right one. I ’ v e alw ays b een results-oriented. E Y prov ided me w ith the means to achiev e those results, and that’ s important.

What tangible results of the project can you identify today? The first result I can name is designing a model in a year-and-a-half, w hich is pretty impressiv e. W hy is that? B ecause the model simultaneously inv olv es the armed forces and the directorates and departments. I t’ s lik e b eing confronted w ith eight large companies. W e apply the same supply chain model to them, b ut not at the top – ev eryone has their ow n part of the supply chain. I w anted to focus on the results I had fixed, which was timeframes for filling orders. We were taking about a month and I decided that the goal w ould b e only four days. T hat is

w hat I ask ed E Y for. I told them, “ I don’ t see w hy A maz on can deliv er w ithin a w eek and w e can’ t. W e should b e ab le to do the same thing. ” O n the b asis of this ob j ectiv e, E Y prov ided me w ith solutions and w e tested them to prov e that it w as possib le.

The other significant result is in warehouse functioning. O ur w arehouses used to operate using fairly old methods. W e ob serv ed that w e w ere capab le of hav ing an order on the loading dock w ithin a day, w hen it used to tak e sev en days or more. T his raised aw areness ab out ex cessiv e

inv entory. E v ery year w e recommend a certain number of refills. We w ere spending our time renew ing these ex cessiv e inv entories, w hile it

is b etter to consume them in an ongoing process. T his inv entory calculation approach is something that w e had lost sight of and w hich is now b eing put b ack in place.

Do you think that the supply chain will continue to be a priority issue or will other major challenges arise? O ur supply chain w ork is j ust getting underw ay and w ill continue into the future. T here is a risk that, after summer 2 017 w hen ev erything is really in progress, a certain inertia may set in. W e must not miss our chance – w e must continue to mak e progress. T he supply chain is b ecoming a factor that w ill enter people’ s mindsets. W e hav e b egun to set up training in supply chain sk ills. T hat’ s one w ay w e plan to k eep the momentum going.

A re there other challenges? C ertainly. O nce w e tak e an operational ex cellence approach, of course there are challenges. This is not the first, but it is perhaps the first that w e hav e tack led in a different w ay. U p to now , our approach w as more one of reducing personnel and cutting costs. T his current approach b uilds something new , w hich translates into improved effectiveness and efficiency, and reductions in costs and personnel numb ers. B ut that w as not the main ob j ectiv e. T he main ob j ectiv e w as to improv e effectiv eness and mak e the system perform b etter.

“T his a program for continuous improv ement. O nce the mov ement has b egun, it nev er stops”

Image on p33: © Fotolia

V alerie Laine is a partner at E rnst & Y oung A dv isory, F rance, and a member of the E Y G lobal D efence N etw ork. E lise C hav igny C olmant also contributed to this article.


Perspectives

Pers

pect

ives

T h o u g h t l e a d e r s h i p f r o m E Y

Europe attracts record FDI despite shadow of crises

L ast year, E urope achiev ed a record lev el of 5, 083 proj ects ( up 14 %) and 2 17 , 666 j ob s ( up 17 %) created b y foreign direct inv estment ( F D I ) , according to E Y ’ s E urope attractiv eness surv ey 2 015.

T his w as at a time w hen E urope w as facing the migration crisis, the ongoing tension inv olv ing R ussia and the U k raine, G reece’ s possib le ex it from the euro, sluggish economic grow th and terrorist attack s in F rance and Belgium. In part, the numbers reflect the share of capital allocated to developed markets over emerging markets. But they also reflect an increased focus b y national policymak ers on F D I as a route to economic grow th.

T ogether, the top three countries in terms of F D I proj ect numb ers — the U K , G ermany and F rance — account for 51% of all F D I proj ects and a third of all jobs created, finds the survey. Western Europe continues

to dominate F D I proj ects w ith a 7 7 % share ( 81% in 2 014 ) . K ey F D I destinations, such as Spain, the N etherlands, B elgium and I reland, all posted positiv e grow th in 2 015. B ut countries in C entral and E astern E urope grew almost four times as fast as their counterparts in W estern E urope.

C entral and E astern E urope saw the creation of half of all F D I j ob s in E urope, thank s to the strength of the region in manufacturing, w hich accounted for 69% of the F D I proj ects in the region. P oland, R ussia and R omania achiev ed the highest numb er of j ob s created.

The report contains insights on digital dev elopment, innov ation, tax ation and the pipeline for future F D I proj ects. To read more, v isit ey. com/ attractiv eness-europe.

How do you seize the upside of disruption?

T hat’ s the q uestion addressed in a new E Y report that ex plores the megatrends that are shaping the w orld today and in the future. D isruption is fundamentally changing the w ay the w orld w ork s. T oday’ s b usinesses, gov ernment and indiv iduals are responding to shifts that would have seemed unimaginable even a few years ago. Artificial intelligence and rob otics are reinv enting the w ork force. D rones and driv erless cars are transforming supply chains and logistics. A nd changing preferences and ex pectations — most notab ly in the millennial generation — are altering consumption patterns and demand for ev erything from cars to real estate.

T he report studies the root causes of these transformativ e trends and identifies three primary forces behind this current wave of disruption: technology, glob aliz ation and demographic change. B y analyz ing the

interaction between these forces, the report identifies eight global megatrends. These are large, transformative trends that define the present and shape the future by their impact on businesses, economies, industries, societies and indiv idual liv es.

W hen responding to disruption and these megatrends, organiz ations cannot afford to fall b ack on old solutions. E mb racing creativ ity, entrepreneurial spirit, div ersity and inclusiv ity w ill enab le b usinesses to challenge prev ailing think ing and create new b usiness models. B y b uilding rob ust and responsiv e ecosystems and driv ing collab oration in prev iously unex pected places, they can meet the ev olv ing demands of customers. I nnov ativ e practices such as these w ill b e k ey to rev ealing the upside of disruption.

To read more, v isit ey. com/ G L/ en/ I ssues/ Business-env ironment/ ey-megatrends.

http://www.ey.com/attractiveness-europe

http://www.ey.com/GL/en/Issues/Business-environment/ey-megatrends

D espite current uncertainties regarding grow th prospects in many A frican economies, it is our v iew that

the longer-term outlook for economic grow th and inv estment in A frica remains positiv e. T he nex t few years w ill b e tough — partly, ev en largely, as a result of a fragile glob al economy. B ut many A frican economies remain resilient, w ith tw o-thirds of Sub -Saharan A frican economies still grow ing at rates ab ov e the glob al av erage this year. Structural ev olution w ill continue and, w hen glob al conditions improv e, much of A frica w ill b e w ell positioned to accelerate the grow th momentum once again. W e' re ex cited at the prospect of w ork ing w ith gov ernments and pub lic sector organiz ations across A frica as they implement their programs and initiativ es. H ere are some ex amples of w ork that E Y has b een undertak ing on the continent.

I n t e r n a l a u d i t E Y has w ork ed w ith a state-ow ned utility company in a large w est A frican country. T he company req uired an internal audit to b e carried out b y an independent consultant for the purpose of compliance and ob j ectiv e reporting. E Y assemb led a multidisciplinary team that included b usiness risk and technology serv ices

AfricaS p o t l i g h t o n


professionals. O ur report highlighted system and control w eak nesses that w ere unk now n to senior management. E Y ’ s w ork helped the company to document and standardiz e b usiness processes and improv e operational effectiv eness.

D i g i t a lT he state-ow ned energy supplier of a country in southern A frica has w ork ed w ith E Y to strengthen its I T deliv ery capab ility. T he energy supplier req uired a strategy to inform the standardiz ation and gov ernance of its technology initiativ es. E Y consulted w idely w ith the ex ecutiv e management and k ey stak eholders to understand the current state of the b usiness env ironment. W e then designed and deliv ered an I C T strategy that defined the desired role of ICT, set out the required capab ilities and set the direction and timing for future I C T inv estments. T his included an E nterprise A rchitecture framew ork that driv es b usiness, information systems and technology standards, and a detailed three-year road map to guide b usiness transformation.

T r a n s f o r m a t i o nE Y w as engaged b y a pow er utility in a southern A frican country to assist with its finance transformation program. The program covered finance, human resources and

procurement processes, policies and procedures; controls and reporting; and optimiz ing the use of SA P . E Y helped standardiz e w ork processes to eliminate w aste; dev elop enterprise-w ide softw are systems architecture; b uild competencies in serv ices, engineering, operations, maintenance, outages and capital proj ect management; optimiz e capital and human productiv ity; reduce ov erall operating and capital costs; and estab lish a platform and culture for continuous improv ement.

R i s k m a n a g e m e n tA commercial b ank in a small east A frica country, w ith a large gov ernment stak eholding, appointed E Y to rev iew and update its risk management framew ork . T his w as follow ed b y sub seq uent appointments to develop a financial manual, and review and update operational procedures. A s a result, the b ank dev eloped framew ork s and standard policies that facilitate b etter management.

D i s c o v e r m o r e a b o u t h o w E Y i s w o r k i n g w i t h g o v e r n m e n t a n d p u b l i c s e c t o r o r g a n i z a t i o n s t o d e l i v e r b e t t e r s e r v i c e s a t e y . c o m / g o v e r n m e n t .

Spotlight

F o r m o r e i n f o r m a t i o n o n E Y ’ s g o v e r n m e n t a n d p u b l i c s e c t o r w o r k i n A f r i c a , p l e a s e c o n t a c t :

E Y A frica A dv isory Sector L eader, G ov ernment & I nfrastructurej oe. cosma@ z a. ey. com

J oe C osma

http://www.ey.com/government

W h y w a s t h e i n t e r n e t m o r e v a l u a b l e t h a n a t r a c t o r t o B a n g l a d e s h i f a r m e r s ?I n Bangladesh, E Y is helping rural producers connect to urban buyers online. e y . c o m / c r # B e t t e r Q u e s t i o n s

The better the q uestion. The better the answ er. The better the w orld w orks.

©

201

6 E

YG

M L

imite

d. A

ll R

ight

s Re

serv

ed. E

D06

17

citizen today - july 2016

Documents