Management in the Government of Canada: A Commitment to Continuous Improvement

Annex: Progress to Date on Management Improvement

The Government of Canada has entered a new and aggressive phase in its initiative to create an accountable government that is responsive and innovative. The comprehensive action plan presented above is an agenda for continuous management improvement.

The government has already laid much of the groundwork to rapidly implement this wide-ranging plan. Like other organizations both private and public, governments in Canada and around the world have had to adapt their management practices to respond to changing circumstances and new pressures. As a result of these and other efforts, the Government of Canada is in a good position to further improve public-sector management.

I.  Progress to Date on Addressing Management Failures

The government has acknowledged recent management failures—specifically those concerning sponsorship and advertising activities—and taken steps to address them. To address the problems, the government:

• cancelled the sponsorship program in December 2003 and disbanded Communication Canada;
• produced the Act to Amend the Canada Election Act and the Income Tax Act (political financing), which came into force on January 1, 2004—the Act introduces new limits on contributions to political parties, extends disclosure measures, and introduces new public funding measures for political parties (see http://www.parl.gc.ca/37/2/parlbus/chambus/house/bills/government/C-24/C-24_4/C-24_cover-E.html);
• created the Public Servants Disclosure Protection Act in October 2004 to establish a legislated mechanism for the disclosure of wrongdoing in the public sector, including the protection of persons who disclose wrongdoing, following a commitment by the President of the Treasury Board in February 2004 to fully protect public service employees who came forward with information about the sponsorship scandal, even though Canada did not have whistleblower legislation in place at the time (see http://www.parl.gc.ca/common/Bills_ls.asp?Parl=38&Ses=1&ls=C11);
• reformed the way government advertising is procured, ensured that Canadians get better value for their money, and selected a new agency of record with a more clearly defined scope of work (see http://www.tbs-sct.gc.ca/pubs_pol/sipubs/comm/adv-pub/index_e.asp);
• committed to providing Parliament with an annual report on government advertising to increase transparency and accountability in this area;
• eliminated the Unity Reserve (see http://www.tbs-sct.gc.ca/report/orp/ur-ru/ur-ru_e.asp);
• appointed a special counsel to recover funds that may have been misappropriated and brought civil lawsuits against 19 defendants in March 2005 to recover $44.1 million (see http://www.tbs-sct.gc.ca/gr-rg/oag-bvg/media/commission_e.asp); and
• asked Mr. Justice Gomery to inquire into what went wrong in the management of the sponsorship program and advertising activities and why, and to recommend changes to prevent similar cases of mismanagement from arising in the future (see http://www.gomery.ca/en/).

II.  Progress to Date on Building Accountability

1. The government has taken steps to strengthen the role of Parliament and improve results-based reporting. The government has:
   • published Ethics, Responsibility, Accountability: An Action Plan for Democratic Reform and begun to explore ways to increase the role of members of Parliament, expand the role of committees in shaping legislation, and increase appearances by ministers before committees (see http://www.pco-bcp.gc.ca/default.asp?Language=E&Page=Publications&doc=dr-rd/dr-rd_e.htm);
   • tabled an annual report to Parliament (Canada’s Performance) that provides a
     high-level overview of how government’s programs, expenditures, and performance help improve Canada’s quality of life (see http://www.tbs-sct.gc.ca/report/govrev/04/cp-rc_e.asp);
   • improved the consistency of the information it presents in the Estimates (see http://www.tbs-sct.gc.ca/media/nr-cp/2004/1104_e.asp);
   • adopted full accrual accounting in the 2003 Public Accounts to further aid parliamentary oversight of government spending; and
   • tabled annual reports from the clerk of the Privy Council to the prime minister that highlight priority issues in government management (see http://www.pco-bcp.gc.ca/default.asp?Language=E&Page=clerk&Sub=AnnualReports).
2. To help clarify the understanding of ministerial and deputy ministerial responsibilities and accountabilities, the government:
   • strengthened, updated, and distributed guidelines for ministers and deputy ministers (see http://www.pco-bcp.gc.ca/default.asp?Language=E&Page=Publications&doc=guidemin/ guidemin_e.htm and http://www.pco-bcp.gc.ca/default.asp?Page=Publications&Language =E&doc=gdm-gsm/gdm-gsm_doc_e.htm);
   • updated the Guidelines for Ministers’ Offices (see http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/mg-ldm/gfmo_e.asp); and
   • initiated reviews of the responsibilities and accountabilities of ministers and senior officials and non-compliance under the Financial Administration Act, following the tabling of the report of the Auditor General of Canada on the sponsorship program and advertising activities[7](see http://www.tbs-sct.gc.ca/gr-rg/oag-bvg/media/stamaps-rtrgesp_e.asp).
3. The government has acted to strengthen governance and accountability in Crown corporations (see http://www.tbs-sct.gc.ca/report/rev-exa/gfcc-cgse_e.asp). Following the most comprehensive review of Crown corporation governance in over 20 years, the government announced 31 new measures to:
   • clarify the relationship between ministers and Crown corporations;
   • strengthen accountability regimes;
   • make the appointments process for chief executive officers and board members more transparent;
   • strengthen audit regimes; and
   • make the activities and operations of Crown corporations more transparent.
4. The government has also acted to improve Treasury Board oversight. It has:
   • reformed its official languages policy framework (see http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/OffLang/olpf-cplo_e.asp);
   • begun to renew and streamline its management policies;
   • introduced the Management Accountability Framework (MAF) to help clarify for deputy ministers expectations for management excellence (see http://www.tbs-sct.gc.ca/maf-crg/index_e.asp); and
   • refined the use of MAF to assess departmental management capacity and linked MAF assessments to assessments of deputy ministerial performance and compensation.
5. To strengthen financial management and internal audit, the government:
   • re-established the Office of the Comptroller General and appointed the new comptroller general of Canada (see http://www.tbs-sct.gc.ca/media/nr-cp/2004/0506_e.asp);
   • outlined direction to strengthen control in the areas of responsibility of chief financial officers; and
   • outlined direction to strengthen internal audit (see http://www.tbs-sct.gc.ca/media/nr-cp/2004/1118_e.asp).
6. A strong culture of values and ethics is fundamental to public service and essential for maintaining public trust in government. To this end, the government:
   • introduced the Conflict of Interest and Post-Employment Code for Public Office Holders (see http://www.parl.gc.ca/oec/en/public_office_holders/conflict_of_interest/);
   • communicated employee obligations under the Values and Ethics Code for the Public Service (see http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/TB_851/vec-cve_e.asp); and
   • established fully independent ethics commissioners in the House of Commons and Senate (see http://www.parl.gc.ca/oec/ and http://sen.parl.gc.ca/seo-cse/aboutus.html).
7. To increase transparency, the government has:
   • implemented quarterly disclosure on departmental Web sites of the travel and hospitality expenses of ministers, parliamentary secretaries, political staff, and senior public service employees;
   • implemented quarterly disclosure on departmental Web sites of departmental goods and services contracts over $10,000 in value;
   • implemented quarterly disclosure on departmental Web sites of departmental re-classifications of public service positions (see http://www.tbs-sct.gc.ca/pd-dp/index_e.asp); and
   • extended coverage of the Access to Information Act to 10 additional Crown corporations (see http://laws.justice.gc.ca/en/A-1/8.html).

III.  Progress to Date on Improving Responsiveness

1. The government has responded to citizen priorities for service improvement. It has:
   • successfully completed the Government On-Line initiative and made 130 of its most commonly used services available on the Internet—Canada has been recognized as the world leader in e-government for five years in a row[8] (see http://www.gol-ged.gc.ca/index_e.asp);
   • increased client satisfaction with government services through the Service Improvement Initiative (see http://www.tbs-sct.gc.ca/si-as/index_e.asp);
   • adopted measures to reduce wait times in offices and improve the quality of telephone service;
   • launched Service Canada to provide Canadians with one-stop access to information and services from a range of departments and agencies[9] (see http://www.servicecanada.gc.ca/en/home.html); and
   • updated policies on the use of official languages in communications, services to the public, Web sites, and electronic communications.
2. To protect the health and safety of Canadians, ensure a sustainable environment, and create the conditions for an innovative and competitive economy, the government:
   • launched Smart Regulation, working with stakeholders and citizens to build a more effective, predictable, and efficient regulatory system (see http://www.regulation.gc.ca/default.asp?Language=E&Page=Home);
   • commissioned advice from the External Advisory Committee on Smart Regulation and stakeholders on major regulatory issues (see http://www.pco-bcp.gc.ca/smartreg-regint/en/index.html); and
   • released Smart Regulation: Report on Actions and Plans, the first in a series of regular updates (see http://www.regulation.gc.ca/default.asp?Language=E&Page=report).
3. To increase the efficiency and effectiveness of its internal operations, the government:
   • reviewed a number of core operations, such as capital assets management, procurement and contracting processes, and information technology management (see http://www.tbs-sct.gc.ca/spsm-rgsp/wtisc-vpsac_e.asp);
   • completed essential analytical and planning work to pave the way for more efficient corporate administrative systems and services (see http://www.tbs-sct.gc.ca/spsm-rgsp/cas-sam/cas-sam_e.asp and http://www.tbs-sct.gc.ca/spsm-rgsp/gor-eog/itsr-est_e.asp);
   • evaluated the benefits of a common approach and examined the potential of having single organizations provide key internal administrative and information technology services to departments and agencies;
   • made fully operational the Secure Channel, a reliable telecommunications network that provides secure, on-line access to services (see http://www.pwgsc.gc.ca/text/factsheets/secure_channel-e.html); and
   • implemented initial measures to reform management of assets and acquired services, including pilot projects, new procurement policies, publication of standards, an improved certification regime, and improved training courses and tools.

IV.  Progress to Date on Stimulating Innovation

1. In the area of human resources (HR), the government has begun to clear away layers of complex rules and burdensome processes to make the Public Service more agile and more open. The government:
   • introduced the Public Service Modernization Act in 2003, the most significant change to HR legislation in four decades (see http://laws.justice.gc.ca/en/P-33.4/98002.html);
   • amended the Financial Administration Act to clarify roles and responsibilities for HR management and accountability (see http://laws.justice.gc.ca/en/f-11/text.html);
   • implemented the new Public Service Labour Relations Act, which will help the government to build more collaborative and productive relations between management and labour (see http://laws.justice.gc.ca/en/P-33.3/);
   • established the Public Service Human Resources Management Agency of Canada, including a centre of excellence on the integration of HR and business planning (see http://www.hrma-agrh.gc.ca/index_e.asp and http://publiservice.psmod-modfp.gc.ca/index_e.asp); and
   • established the Canada School of Public Service to ensure leading-edge learning programs for a highly skilled and professional workforce (see http://www.myschool-monecole.gc.ca/main_e.html).
2. To ensure disciplined and responsible management of public expenditures through ongoing reviews of programs, the government:
   • reviewed its spending and freed up $1 billion per year from annual spending and redirected it to promote economic growth and social progress (see http://publiservice.tbs-sct.gc.ca/media/nr-cp/2003/0929_e.asp); and
   • identified efficiencies in government operations to free up another $11 billion over five years beginning in 2005–06 to direct towards emerging needs (see http://www.fin.gc.ca/budget05/booklets/bkexpe.htm).
3. To strengthen the reliability and credibility of information upon which to base decisions, achieve value from spending, and support financial accountability, the government:
   • approved the introduction of the Expenditure Management Information System (EMIS)—a framework of common, government-wide business processes and information standards that will deliver integrated financial and non-financial information (see http://www.tbs-sct.gc.ca/emis-sigd/index_e.asp); and
   • introduced the Management, Resources, and Results Structure Policy to develop a common, government-wide means of relating spending to results achieved that will enable it to make better comparisons across programs and of their effectiveness (see http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/mrrsp-psgrr/mrrsp-psgrr_e.asp).

Notes

[1].   Henry Mintzberg. “Managing Government—Governing Management.” In: Harvard Business Review, May-June 1996, pp. 75–83.

[2].   Organisation for Economic Co-operation and Development. E-Government for Better Government, 2005, p. 3.

[3].   “Strengthening Transparency, Accountability and Management Across the Public Sector,” Treasury Board of Canada Secretariat, Press Release, February 10, 2004. See Matters of Special Importance—2003. Report of the Auditor General of Canada. Ottawa: Queen’s Printer, November 2003. The report was tabled on February 10, 2004.

[4].   Report of the Auditor General of Canada. Matters of Special importance—2004. “Main Points,” p. 6, paragraph 30.

[5].   The 10 additional Crown corporations brought under the Access to Information Act in 2005 are Canada Development Investment Corporation, Canadian Race Relations Foundation, Cape Breton Development Corporation, Cape Breton Growth Fund Corporation, Enterprise Cape Breton, Marine Atlantic Inc., Old Port of Montréal, Parc Downsview Park, Queens Quay West Land Corporation, and Ridley Terminal Inc.

[6].   The additional seven Crown corporations that will be brought under the Access to Information Act in 2006 are Via Rail, National Arts Centre, Canadian Broadcasting Corporation, Export Development Canada, Canada Post Corporation, Atomic Energy of Canada Limited, and Public Sector Pension Investment Board.

[7].   These reviews may be found at http://www.tbs-sct.gc.ca. The government has incorporated the central conclusions and recommendations of these reviews into the action plan laid out in this document, and the reviews have been published as companion documents.

[8].   Accenture. eGovernment Leadership: High Performance, Maximum Value, 2004.

[9].   These organizations include Passport Canada, Canada Revenue Agency, Human Resources and Skills Development Canada, Social Development Canada, Public Works and Government Services Canada, and Canadian Heritage.