Managing Horizontal Issues for Results

Challenges and Lessons in Using Performance Information

Adèle Lamoureux
Office of the Auditor General

OAG Web site: http://www.oag-bvg.gc.ca

Introduction

• OAG study of managing horizontal issues for results reported in 2000
• Purpose of the study was to identify impediments, challenges, lessons
• Developed a framework for managing horizontal issues for results

Why Focus on Partnerships?

Departments increasingly work with others to address issues that span departmental mandates; recognition that accountabilities often shared

OAG and Commissioner looked at partnership arrangements

• AG Report Chapter 5, 1999, Collaborative Arrangements: Issues for the Federal Government
• AG Report Chapter 23, 1999 Involving Others in Governing: Accountability at Risk
• Commissioner`s 2000 Report, Chapters 2, 5, 6, 7 and 8

What is MFR?

• Managing resources, authorities and outputs with the aim of bringing about an intended outcome
• Keeping your eye on the outcomes
• Learning from what is working and what is not working
• Involves a continuous learning cycle of planning, doing, monitoring and reporting

OAG Audit of MFR in Departments

A framework for managing for results

1. Create an organizational climate to encourage MFR
2. Agree on a strategic results framework
3. Obtain agreement on expected results
4. Measure results to track performance
5. Use information to improve performance
6. Effectively report performance

Audit Findings

• Departments are still planning to manage for results
• Limited use of performance information
• Senior management commitment is key
• Organizational change is an impediment
• Some initiatives foster a supportive climate: incentives, developing capacity for measuring
• Managers reluctant to be accountable for results that are not entirely under their control

MFR in Horizontal Issues

• Policy issues are increasingly complex and interdependent
• No one department has all the levers, resources and expertise
• DM Task Force saw a growing need for policy coordination
• Clear expectation that initiatives will provide results for Canadians

Many Approaches to Co-ordination

Co-ordination can be informal: simple communication, networking

Co-ordination may be structured if:

• potential for real gains
• high government priority
• many departments clearly involved
• significant financial commitment

Level of co-ordination will have an impact on the ability to manage for results

Important Considerations

Managing a horizontal initiative for results requires balance:

• time available for co-ordination
• objectives should be commensurate with resources and political reality
• reporting obligations should be reasonable given resources and objectives
• levers and incentives need to be available

Framework for Managing Horizontal Issues

1. Identifying an effective co-ordination structure
2. Agreeing on common objectives, strategies and results
3. Measuring results to track performance
4. Using information to improve performance
5. Effectively reporting performance

Lead Department

• Co-ordination takes time
  • maintains a focus on results
  • ensures that performance is monitored
  • ensures that reporting obligations are met
• Needs formal agreements endorsed by senior officials
• Needs dedicated resources
• Needs clear engagement of all partners

Challenges of Lead Departments

Our study identified a number of challenges to be overcome:

• don`t have a mandate to set policy in other departments
• rarely control the interdepartmental allocation of resources
• lack strong levers

Challenges for Partners

• Partners have different priorities, commitments
• Partners have shared objectives but accountabilities are departmental
• Partners need to sort out vertical and horizontal information needs
• Partners are preoccupied with attribution
• Agreeing on a reporting framework takes time (indicators, data sources, baseline information, etc.)
• Results for Canadians are not always clear
• Lessons not learned from previous phases of initiative
• Putting in place a timely evaluation framework

Final Thoughts

• Accountability in horizontal issues: need to demonstrate performance achieved in light of agreed expectations
• Need to use performance information to guide decision-making
• Parliamentarians are interested