performance and results focused management in france implementation and first results

© OECD

A jo

int

initi

ativ

e of

the

OE

CD

and

the

Eur

opea

n

Uni

on, p

rinci

pally

fina

nced

by

the

EU

PERFORMANCE AND RESULTSPERFORMANCE AND RESULTS FOCUSED MANAGEMENT IN FRANCE FOCUSED MANAGEMENT IN FRANCE

ImplementationImplementation and First Results and First Results

Philipe DebrosseRapporteur à la Cour des comptes

1

Conference on Good Governance and Public Administrative ReformBucharest, 6 December 2007

2

• The new budget law – LOLF - was introduced in january 2006– A preliminary budget had been defined for the 2005

budget, but the 2005 budget was realized with the rules of the previous budget law

– Objectives and indicators have been prepared for the 2005 budget

– Different institutions have analyzed these experimentations process (Parliament, Cour des comptes, general Inspections) which lead to some modifications in the program organisation and in the definition of objectives and indicators

3

Report of the Finance Commission of the National Assembly 2006 (extract)

• The « performance » part of the PAP constitutes a main progress.

• Globally, the performance devices are successful, they are much better than those in the pre-PAP joined to the Project of Finance Law 2005.

4

Report of the Finance Commission of the National Assembly 2006

• Observations: – A balance between the stability of the unit and

the necessary adjustments should be kept.– About the objectives, among 132 programs of

general budget, 94 have a strategic presentation and 118 have objectives. On the whole, the general budget have 629 objectives, with 1284 indicators, that is to say an average of 2 indicators per objective.

5


• The following improvements should be adopted: – A better hierachisation of the objectives around some

clear priorities– A reduction of the number of objectives (too many

objectives harm to their legibility and to the services to reach them)

– The clarification as much as it is possible of their name, avoiding objectives with a too general view, which can’t be measured by indicators (like: « french thesis about sustainable development »), or which escape from the influence of the program or the concerned mission (like: « building Europe » for the program « France action in Europe and in the World »)

6


• Six orientations for the indicators:

– Associate the performance indicators to every action or important mass of credits, which is not systematic yet.

– Reequilibrate the distribution between the three existing categories, while reinforcing the part reserved to the service quality and the management efficiency. In the 2006 PAP, 53% measured the socio-economic efficacity against only 18% the service quality and 29% the management efficiency

– Reduce the number of indicators – in coherence with the diminution of the number of objectives – by focusing them on the strategic priorities of the programs. In the future, the number of indicators could be limited to 800, against 1284 now.

7


– This reduction should lead to retain only the relevant and reliable indicators, in order to measure the performance of the concerned services. Some indicators need to be built, as for example the number of payed hours to the teachers compared to the hours spent in front of the pupils or the ratio cost/efficiency of the initial formation streams.

– All indicators have to be informed and to have a multiannual aim value. They have to be based on an explicit, precise and clear methodology.

– The indicators should finally allow to do as much as possible comparisons with other State services, even with services from other States. This is particularly the case for support functions in each ministry.

8

A new government : a new program organisation

• The constitution of the Government in June 2007 has lead to modify the perimeter of the ministry attributions.

• These evolutions lead to revise several missions of the General Budget in order to assure an agreement between the perimeter of the decrees of ministry attributions and the one of the missions and programs.

• The new government took his function in June, but the program organisation will only be changed in January 2008

• During this period we organised some credits and personal transfers between ministries. The main limitation is due to the IT accounting system which is very difficult to change during an accounting period.

9


• The evolution of the nomenclature of the missions and programs included in the Project of Finance Law 2008 aims to reconcile three objectives : – modification of the structure of the ministries

related to the election of the President in mai 2007 and the new organisation of the ministries

– Simplifications in some areas– New political priorities

10

• 2008 - The General Budget of the State has 34 missions and 132 programs, that is to say about the same amount of missions and programs than in the Project of Finance Law 2007. This includes the creation of 7 new programs and the suppression of 6 existing programs.

11


• Three new programs created in the « general budget » : – « Fight against poverty: experimentations »– « French Presidency of European Union »– « Territorial Administration: CHORUS

experimentation » (CHORUS will be the new IT accounting system, which will introduce different evolutions in the budgeting and accounting organisation)

12


• Simplification operations: suppression of six programs: – Ecology– Sustainable development– Tourism– Overseas– Work and employment these actions are included in other programs (ie

overseas in the ministry of interior)

13

Extract of the performance project 2008

• The taking into account of the Parliament observations has lead this year to: – Center the objectives and indicators in the main stakes of each

program in order the Project of Finance Law to be more readable– Reequilibrate the different axis of the performance, with an

increase of the number of quality indicators and efficiency indicators

– Begin a convergence of the indicators of support function (informatics, Human Resources, real estate…) to compare different ministries

– Improve the legibility of the objectives and indicators– Present a performance strategy which articulates the objectives,

identifies the real priorities and gives a meaning to the performance step, and this is for each program

– Engage in aims of results which means an improvement of each program performance.

14

• During the presentation of the Project of Finance Law 2007, the Government has engaged itself that: – 95% of the Project of Finance Law 2008 indicators

should be informed in previsions,– 55% of the indicators should have an aim-year in

2010 and beyond– The classification per category should be distributed

as follow : • 46% for effectiveness• 22% for quality• 32% for efficiency

15

PFL 2008 statistics - indicatorsGeneral Budget PFL 2006 PFL 2007 PFL 2008

Effectiveness 54% 51% 44%Quality 18% 22% 24%Efficiency 28% 27% 33%3 years or more aim 55% 44% 67%Documentation (for indicators)

65% 91% 92%

Documentation (in realization N-1 in PFL N+1)

79% 85%

16

PFL 2006

PFL 2007 PFL 2008

Number of missionsNumber of programsNumber of actionsNumber of objectives

34132

627

34131608569

34132605551

Objectives per program 4,8 4,3 4,2

Number of indicators 1284 1173 1151

Modified indicators 260 150

Rate of modified indicators 22% 13%

New indicators 159 155

Rate of new indicators 14% 13%

Rate of non modified indicators 64% 74%

Indicators per objectives 2,0 2,1 2,1

Program directors 79

17

• A permanent audit trough the general inspections within the ministries and in an interministerial comitee for program auditing (ICAP-CIAP)

• Annual report on budget execution through the Cour des comptes which includes some datas on the objectives and indicators

18

Methodology of work of the CIAP

• The Interministerial Comity for Program Auditing (ICPA - CIAP) has finished during the last quarter of 2006 an auditing methodology and a methodology for the validation of the informations about the performance results presented in the Annual Performance Report (APR).

• The objective was the necessary reorganization of the guide, in order to integrate this auditing methodology related to the APR at the latest in february 2007.

• The new guide was approved in december 2006.

19

Organization of work• The 4th auditing cycle of the ICPA was about 28

programs, proceeding from 18 different missions.• This has been established in concertation with the Cour

des Comptes.• The audits have mobilized 64 auditors, members of

different general inspections, divided in interministerial teams.

• At the end of this 4th auditing cycle, 75 programs have been examined by the ICPA, of which 68 come from the General Budget.

• These audits analyse the program organisation related to the ministry organisation, the budget and personal evolution, the cost analysis, and the different objectives and indicators.

20

ICPA report – examples of proposals

• Program 182: legal protection of youth– The ICPA has recommended, for the indicator (1.2)

related to the delay of the take-over of legal measures, to come from an average delay (which is not significant in term of performance measure), to a percentage of take-over delay superior than a aim delay, per measure category.

– Moreover, a link would be established with the new law for justice disposals, which define an aim delay of 15 days for the whole chain of take-over, between the magistrate decision until its execution.

21

ICPA report – examples of proposals

• Program 132: Employment development

– The indicator of the employment growth in the Hotels-Cafés-Restaurants (HCR) presents three defaults :

• Its evolution depends of more powerful employment creation factors in this sector

• It compares the evolution of a service sector, which is protected by delocalization phenomenons, to the whole sector of the Economy

• It does not reveal an important part of the aimed objectives by the measure, that is to say the improvement of the minimal wage and the suppression of the hidden work in this sector

– They recommended to create an other indicator which compare the amount of the global wages of the sector with the number of wage earners of this sector

22

Objectives and indicators debates in the Parliament

• The objectives and indicators are discussed in the Parliament– The main debates in the floor of the Chamber

of Deputy concern are focused on the budget and the number of civil servants

– But some analyses are prepared for the discussions in specialized committees

– Program directors are auditioned by the committees and questioned on their objectives and indicators

23

Extract of the parliamentary report on the 2008 budget project for Education

• The measure of performance: reinforce the monitoring elements: – The program includes 17 indicators; 10 of

these were not yet informed in the annual performance report for 2006, or only partially, not allowing the reading of the performance for the year 2006. Some indicators are also not in the annual performance project 2008.

24

Extract of the parlementary report on the 2008 budget project for Education

• The only available indicator is the proportion of pupils entering in « sixième » with at least 1 year late. The reduction recorded in 2005 (-1,2 points) continues in 2006 (-0,9 point).

25

Extract of the parliamentary report on the 2008 budget project for Education

• The replacement rate increases– The 5 indicators corresponding to this objective are quantified;

each one knows a considerable increase.

– The proportion of inspected teachers has already reached the 2010 aim.

– The reached levels are close to the objectives, taking account of the existing constraints (isolated schools, delay for signalling the absence). The forecast for 2008 leads to an increase to 92,5% of the replaced days of absence, in an annual average.

– The output rate of the replacement has been getting better for ten years, but the progression is less strong than wished.

26

The implementation in the ministries

• Different levels of implementation in the ministries– The implementation level depend of

• the historical practice of the ministries• the characteristics of the indicators• The administrative organization of the ministries• The capacity and the willingness of the ministers

and of the top management in the implementation process

27

Fixing the targets

• A yearly discussion on the objectives and indicators with the ministry of finance parallel to the budget negotiation

• We try to introduce no direct link between indicators and the budget level, but in the fact it may help during the negotiation and for the debates in the Parliament

28

New debates

• Is it necessary to introduce a flexible remuneration related to the indicators– Partly effective for the top program director– But for the other levels it’s more related to

local or specific objectives (for example the objectives of the prefects are more related to the characteristics and specific problems of their departments than to the global objectives of the ministry of interior)

29

New debates– Different Trade unions contest the

introduction of remunerations related to the objectives and indicators with different arguments:

• They contest the principle of an objective and indicator approach in some sectors (justice, education for example)

• They attached importance to an equality between civil servants

• They contest the validity and the objectivity of the individual evaluation

30

New debates

• What is the responsibility of the program directors ?– There is no responsibility system for objectives and

indicators– Only the ministries are responsible before the

Parliament, even if the program directors are questioned by the Parliament

– the financial responsibility concerns only the accountants,

– But the main program directors are nominated by the Government (and should be sacked without warning)

31

• It’s the first step of the implementation phasis

• In this first year, ministries were more focused in the new budgeting and accounting rules, which introduce some flexibility in the budget execution process

performance and results focused management in france implementation and first results

Documents