How To Be A Successful Corporate Leader

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1 Public Service Values & Ethics: Are we getting results? Catherine MacQuarrie Office of Public Service Values and Ethics 6th Global Forum on Reinventing Government Public Service Ethics and Trust in Government 1

2 Structure of Presentation 1. Public Service Values and Ethics: An Ongoing Journey 2. A New Step in the Journey: Measuring Performance and Results 3. Values and Ethics as Management of Risk, Management Practice and Results 4. Roadmap to Results 5. Further Work 2

3 1. Public Service Values and Ethics: An Ongoing Journey 3

4 The Values and Ethics Journey: Milestones to a Professional Public Service 1840 s: Lord Sydenham s pioneer reforms 1848: Responsible Government 1857: Civil Service Act (Province of Canada) 1867: Confederation and establishment of Treasury Board 1869: Department of Finance and Treasury Board Act 1908: Civil Service Amendment Act: First Civil Service Commission 1918: Civil Service Act: Second Civil Service Commission 1925: First Order in Council on Conflict of Interest 4

5 The Values and Ethics Journey: Milestones to a Professional Public Service 1931: Treasury Board Secretariat: Comptroller of Treasury 1940: Clerk of the Privy Council and Secretary to the Cabinet 1951: - Financial Administration Act - Order in Council on Conflict of Interest 1973: Prime Minister s letter on Conflict of Interest of Cabinet Ministers and Treasury Board Circular on Standards of Conduct for Public Service Employees 1974: Conflict of Interest Guidelines for Public Office Holders 1979: Ministers Guidelines on Conflict of Interest updated and published 1984: Report of Task Force on Conflict of Interest 1985: Conflict of Interest and Post-Employment Code 5

6 The 1990 s: Crisis, Dialogue, Renewal 1980 s 1990 s: Crisis of Confidence, Identity Ascendancy of Private Sector Challenge to Canadian Model, Public Service Values 1987: Deputy Minister Committee on Governing Values : Public Service 2000: White Paper 1993: Reorganization and Program Review : Deputy Minister Task Force on Public Service Values and Ethics 1998: Modern Comptrollership : Deputy Minister Co-Champions lead public service-wide dialogue 1999: - Office of Values and Ethics - First Public Service Employee Survey 6

7 New Century, new Challenges 2000: - Auditor General Report on Values and Ethics - Results for Canadians: Four Families of Values 2001: Policy on Internal Disclosure of Wrongdoing 2002: 2nd Public Service Employee Survey 2003: - Values and Ethics Code for the Public Service - Public Service Modernization Act - Office of Public Service Values and Ethics - Auditor General Report on Accountability and Ethics 2004: Bill C-11: Public Servants Disclosure Protection Act 2004: Reinstitution of the Comptroller General function 7

8 2. A New Step in the Journey: Measuring and Assessing Results RDIMS

9 Values and Ethics Policy Framework for Good Government Guide for Ministers and Ministers of State (PCO) Conflict of Interest and Post-Employment Code for Public Office Holders Guidance for Deputy Ministers Management Accountability Framework Values and Ethics Code for the Public Service Policies related to the Values and Ethics Framework Prevention of harassment, internal disclosure. Bill C-11: Public Servants Disclosure Protection Act New Charter of Values and New Code of Conduct 9

10 A Results and Accountability Approach What does organizational performance in values and ethics look like? What steps can organizations take to improve their values and ethics performance? As result of MAF, departments want guidance on how to assess/improve Values and Ethics performance: How to get beyond activities (e.g. developing codes, providing training and holding internal discussions)? What works? What does not work? 10

11 What Results do we Seek? A public service that earns and deserves the respect and trust of Ministers, parliament and Canadians as an important national institution in support of democratic government through its dedication to the public interest, and its strong culture of democratic, professional, ethical and people values. 11

12 Management Accountability Framework Governance & Strategic Direction Minister s confidence in departmental support Perceived coherence of policy agenda Strength of the management team Corporate management framework used for priority setting, reallocation, and alignment to government-wide priorities Management improvement agenda integrating HR, comptrollership, service, etc. Leadership/ participation in PS-wide initiatives Public Service Values Customized PS values statement and ethical guidelines regularly discussed with all staff Sound advisory and recourse mechanisms in place Orientation, learning and other tools to support staff Staff assessment of organizational performance against PS values and ethics Policy and Programs Confidence of the Minister and the PCO in the quality of policy options and advice Recruitment/development/succe ssion plans for policy community Investments in policy capacity/analytic tools Risk Management Corporate Risk Profile, reviewed regularly Tools, training, support for staff Evidence of risk considerations in strategic planning Engagement of external stakeholders in assessing/ communicating risks People Comprehensive HR development plan in place, including leadership, recruitment, retention, succession, learning, QWL, OL, EE Progress against HR targets Progress in measuring/improving employee engagement Quality of leadership Quality of labour relations Stewardship Risk-based audit plans (reviewed regularly) and follow-up Progress in integrating corporate information systems and controls Audit findings and control failures Quality assurance in contracting, financial, knowledge and asset management, and IT stewardship Learning, Innovation and Change Management Progress in improving organizational learning and knowledge management practices Investments in organizational learning Stakeholder/staff perceptions of organizational adaptability, change and innovation Performance measurement used to improve organizational results Citizen Focused Service Service improvement and transformation plans in place for major services/regulatory programs Client satisfaction measured annually Client satisfaction targets and results Progress toward GOL targets Collaboration with other governments and partners Information for citizens Accountability Clarity of accountabilities Delegations regularly reviewed Executive committee oversight of performance management and regular review of performance Alignment of individual with corporate commitments Results and Performance Quality of RPPs and DPRs Staff and client survey results Progress in strengthening financial and program results, and performance measurement Corporate monitoring and review of performance Risk-based evaluation plans (reviewed regularly) and follow-up Performance against external benchmarks 12

13 MAF Measures Governance & Strategic Direction Minister s confidence in departmental support Perceived coherence of policy agenda Strength of the management team Corporate management framework used for priority setting, reallocation, and alignment to government-wide priorities Management improvement agenda integrating HR, comptrollership, service, etc. Leadership/ participation in PSwide initiatives Public Service Values Customized PS values statement and ethical guidelines regularly discussed with all staff Sound advisory and recourse mechanisms in place Orientation, learning and other Public tools to support staff Service Values Staff assessment of organizational performance against PS and ethics Customized PS values statement and Risk Management Stewardship Accountability Orientation, Corporate Risk Profile, reviewed learning and other tools to Risk-based audit plans (reviewed Clarity of accountabilities regularly Tools, training, support for staff Evidence of risk considerations regularly) and follow-up Progress in integrating corporate information systems and controls Audit findings and control failures Quality assurance in contracting, financial, knowledge and asset management, and IT stewardship Learning, Innovation and Change Management Progress in improving organizational learning and knowledge management practices Investments in organizational learning Stakeholder/staff perceptions of organizational adaptability, change and innovation Performance measurement used to improve organizational results Citizen Focused Service Service improvement and Policy and Programs People Confidence of the Minister and Comprehensive HR development ethical the PCO in the guidelines quality of policy plan in place, regularly including leadership, discussed transformation plans in place for with options and advice recruitment, retention, succession, major services/regulatory programs Recruitment/development/succes learning, QWL, OL, EE Client satisfaction measured all staff sion plans for policy community Progress against HR targets annually Investments in policy Progress in measuring/improving Client satisfaction targets and results capacity/analytic tools employee engagement Progress toward GOL targets Collaboration with other Quality of leadership governments and partners Quality of labour relations Information for citizens Sound advisory and recourse mechanisms in place Delegations regularly reviewed Executive committee oversight of performance management and regular review of performance Alignment of individual with corporate commitments support staff in strategic planning Engagement of external Staff stakeholders assessment in assessing/ of organizational communicating risks performance against PS values and ethics Results and Performance Quality of RPPs and DPRs Staff and client survey results Progress in strengthening financial and program results, and performance measurement Corporate monitoring and review of performance Risk-based evaluation plans (reviewed regularly) and follow-up Performance against external benchmarks 13

14 The Research on Values and Ethics: the Determinants of Performance Research by the OPSVE, by the New South Wales Government, by the Government of Queensland, and by scholars in the field suggests that several key factors drive and determine organizational results in values and ethics: The effectiveness of an organization s leaders in providing clear values and ethics leadership to its people; The strength of the values and ethics culture within the organization; The identification and management of high risk zones which require strong control and monitoring activity The strength and efficacy of the control systems within the organization 14

15 Drivers of Values & Ethics Performance RESULTS Drivers Leadership People Organizational Culture Risk Assessment,Controls Standards, Recourse Achieving High Levels of Values and Ethics Performance Preventing and Managing Values and Ethics Problems 15

16 The Two Foundation Blocks According to the research findings, preventing serious high profile ethical scandals involves the implementation of clear Ethical Standards and Recourse Mechanisms, as well as Risk Assessment and Controls; Ethical Standards should be clearly set and communicated, and clear, safe Recourse Mechanisms must be in place to encourage staff to report breaches of ethical standards and guidelines. Risk Assessment involves the identification of those functions and areas within the organization that are high risk for ethical breaches (e.g. application of the Risk Matrix), then ensuring that strong Controls and oversight are in place within high risk areas of activity. 16

17 Risk Assessment and Risk Management Research shows that breaches of values and ethics occur more frequently in certain programs and areas of public organizations, especially where staff have the ability to confer or withhold a benefit, or can exercise organizational power; Therefore, organization Values & Ethics performance can be improved if organizations: Regularly assess their areas of greatest risk for breaches of values & ethics performance, based on public sector research, and on their own historic areas of poor performance; Establish a Values and Ethics risk management strategy based on this assessment. 17

18 Establishing Effective Controls Public sector research suggest that effective controls may be the most significant single factor in ensuring high levels of values and ethics performance in public organizations; Effective control systems mean: Clear policies, procedures and controls; Separation of duties and effective oversight; Effective monitoring, audit and reporting; Clear mechanisms for reporting wrongdoing; Effective and transparent action when wrongdoing is discovered. 18

19 The Three Pillars of High Performance Achieving high levels of positive values and ethics performance for an organization (in contrast to preventing high-profile ethical cases) involves three foundation pillars: Leadership Organizational Culture People Management Achieving high levels of ethics and values performance can lead to higher levels of public trust and confidence. 19

20 The Three Pillars: Values and Ethics Leadership Executive leadership is the foundation of an organization s positive values and ethics performance; Effective values and ethics leadership means that leaders: Establish clear values and ethics (democratic, people profession & ethical) standards for the the organization; Personally walk and model the values and ethics talk; Build and reinforce a strong values and ethics culture; Assess and manage the areas of high risk; Establish effective control and monitoring systems; Act decisively and transparently when values & ethics standards are breached. 20

21 The Three Pillars: A Strong Ethics & Values Culture According to the research, the values and ethics culture of an organization can either deter or promote unethical behaviour; A strong values and ethics culture means: Establishing clear standards and expectations for values and ethics behaviour for staff; Creating an environment where staff are comfortable reporting wrongdoing; Regularly measuring staff perception of the organization s values and ethics culture, and the performance of the organization s leaders; Implementing improvements in values and ethics culture based on the results of staff surveys. 21

22 The Three Pillars: People Management Research suggests that organizations where staff feel valued, have high job satisfaction, and are committed to the goals of the organization, have fewer values and ethics problems. This suggests that organizations seeking high levels of performance need to: Regularly measure employee satisfaction, commitment, and quality of working life; Respond to employees priorities for improvement through a systematic organizational development plan. 22

23 The Building Blocks of Values and Ethics Performance OUTCOMES Trust & Confidence In Public Institutions HIGH PERFORMANCE Org l Culture Leadership People Mgt. PROBLEM PREVENTION Standards & Recourse Mechanisms Risk Assessment and Controls 23

24 Achieving Strong Values & Ethics Performance: an Integrated Approach To prevent ethics issues, and to achieve high levels of values and ethics results, organizations should: Set strong ethical standards and recourse mechanisms for the organization; Implement an effective risk assessment and risk management system, along with corresponding control systems. Provide strong values and ethics leadership, and strong leadership of people; Develop a strong values and ethics culture. To achieve continuous improvement, these elements should be integrated into an annual Values and Ethics Assessment and Improvement Plan. 24

25 3. Values and Ethics as Management of Risk 25

26 Ethics and Values Cases: Frequency and Public Profile Grants & Contributions abuses Contract abuses Gross waste or mismanagement Bribery, corruption, gifts Abuse of State Power/human rights Conflict of interest Travel/Expenses Fraud, Embezzlement Harassment HR Abuses High Public Profile Low Public Profile Low Frequency High Frequency 26

27 Areas of Risk Political public service interface Conferring a benefit (contracting, grants and contributions) Care of people (human rights abuses) Administrative abuses (from bending rules to fraud) Management of Human Resources Tensions between professional standards and public service imperatives (science) 27

28 4. Roadmap to Results RDIMS

29 Measuring Performance and Results The OPSVE is developing a measurement framework and roadmap for departments and agencies to use in assessing and improving their values and ethics performance; Ultimately, better organizational values and ethics performance will be an important contributor to improving Canadians trust and confidence in public institutions. 29

30 Draft Values and Ethics Results Roadmap Y-Axis: 8 Key Factors Affecting V&E Performance Top 4: Key Results Areas 8. Trust 7. Culture 6. People 5. Leadership Bottom 4: Key V&E mechanisms 4. Risk Assessment 3. Controls 2. Recourse and Disclosures 1. Guidelines, Standards and Frameworks 30

31 Draft Values and Ethics Results Roadmap X-Axis: Steps for Improving/Demonstrating Improvement in Values and Ethics Infrastructure and Management Practices C. Highly advanced infrastructure and mgt. practices in place B. Intermediate level of infrastructure and mgt. practices in place A. Initial steps to address issue Measure and Improve Results Z. Highly developed measures; strong results achieved and/or specific challenges identified Y. More developed measures; Stronger results performance X. Initial measures and results 31

32 Draft Values and Ethics Results Roadmap Factors 8. Trust 7. Culture 6. People 5. Leadership 4. Risk Assessment 3. Controls 2. Recourse and Disclosure 1. Guidelines, Standards & Frameworks Infrastructure and Management Practices Level A Level B Level C Level X Measure and Improve Results Level Y Level Z 32

33 5. Further Work RDIMS

34 Finishing the Assessment Frameworks Continue to populate the Roadmap with key indicators, in concert with departments; appropriate indicators for: Assessing performance within departments and at a public service level Signalling risk areas Further research and discussion on individual areas of risk Begin implementation this year 34

35 Develop the Measurement Tools Review the work by other governments (e.g. US, Australia and New South Wales) to survey staff on their assessment of public service values and ethics performance; Review long term potential of PS Employee Survey This year, proposal for an initial random sample survey of GoC employees to track staff assessment of values and ethics performance across the public service. 35

36 Citizen-based Performance Measurement Review and document previous research on public attitudes towards public sector values and ethics and links to trust and confidence Use 2005 EKOS Rethinking Government subscription to track changes in Canadians assessment of performance (both reputation scores and recent experience scores) in: Values and ethics Confidence in public institutions Use EKOS Rethinking Government customized questions to identify citizens priorities for improvement Review whether a stand-alone citizen survey on PSV&E is required over the longer run. 36

37 Better understand determinants of public trust In Canadian society, what drives or destroys citizen trust in institutions? What are the levers for change? Who holds them? Organizations such as Conference Board promoting public dialogue/conferences and research on trust. How to engage other organizations and opinion leaders? How should we work with these and other organizations, in dialogue on values and ethics, and trust and confidence issues? 37

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