Radical transformation of public administration in Georgia followed five critical levers: streamlined and simplified regulation, re-engineering of processes, transparency and accountability, performance management and impact orientation, and leveraging IT/technology. This resulted in fast GDP growth, an effective public sector, a world-class business environment, and low corruption. Key lessons included having high-level political commitment, focusing on quick wins, applying the same rules to all, creating a one-stop shop, and installing a new team to drive delivery.

1. Radical transformation ofRadical transformation ofRadical transformation ofRadical transformation of
PublicPublicPublicPublic AdministrationAdministrationAdministrationAdministration

2. A transformation journey : reinventing Georgia
Key learning from the best reformers
I
II

3. Starting conditions – similar to some countries in Africa today1
Low income
(GDP p.c., USD)
Ineffective public sector
(tax collection rate in %)
Unfavorable business
environment
(EODB rank)
High corruption
(CPI rank)
SOURCE: WDI; Heritage Foundation; World Bank; Transparency International
Africa today (2013)
920
Senegal
Zimbabwe
Mali
Tanzania
7
Rwanda
Madagascar
Central African
Republic
Republic of
Congo
Ethiopia
Mozambique
Zambia
Georgia
Georgia
in 2003
Namibia88
111
112
122
132 Uganda
Cote d'Ivoire
Mauretania
Georgia
Niger113
123
124
130
130
Georgia
in 2003
2003

4. Outcome – putting Georgia at par with new EU-members1
Fast GDP growth
(GDP p.c. as multiple of 2003)
Effective public sector
(tax collection rate in %)
World-class business
environment
(EODB rank)
Low corruption
(CPI rank)
SOURCE: WDI; Heritage Foundation; World Bank; Transparency International
EU-member countries
4.6
Croatia
Bulgaria
Estonia
Latvia
23.5
x3
Slovakia
Ireland
Latvia
Romania
Sweden
Finland
UK
Georgia
Georgia
Denmark5
7
9
11
13 Slovakia
Latvia
Czech Republic
Georgia
Poland41
51
54
54
62
+103
Georgia 2003112
+73
Georgia 2003124
Georgia
2012

5. Reform engine – structural reform of Public Administration
Superior economic growth and
macroeconomic environment
Structural reform of Public Administration
▪ Redesigned processes
▪ Streamlined regulation
▪ Changed mindsets
Quantum leap in Business
climate ("Doing Business“)
Quantum leap in
Citizen Services
Economics
dividends
Confidence
shock
Simplifica-
tion shock
Competitive-
ness shock
1

6. Example – Georgia’s public service hall1
Average waiting time ~5 min / average
servicing time 6-7 min
All public service in one space
Citizen satisfaction from 10% to 92%:
“Totally free and fair“
"Fast and accessible“
"Consumers receive clear and high-
quality service“
"Friendly and pleasant staff"

7. A transformation journey : reinventing Georgia
Key learning from the best reformers
I
II

8. Successful radical reforms – A common base for change
SOURCE: McKinsey analysis
Rwanda
Estonia
Poland
Malaysia
Case studies of best performers
II
Great reformers outperform
with respect to growth and
stability
Every situation is different but
there is common DNA in many
of the reforms
Best reforms are radical, deep
and fast
• Assessment of each transformation journey
• Understanding of the interventions used and learnings
N. Zealand

9. Five critical levers traversing all areasII
L3Functional areas
Enterprises
15-20 areas
Citizens
15-20 areas
L2
Streamlined and
simplified
regulation
L4 L5
Leveraging IT/
technology
Re-engineering of
processes
Transparency and
accountability
(anti-corruption)
Performance management and Impact orientation
Political leadership and commitment
L1
Executive fire power and delivery focus

10. 10 key learnings (1/2)
LEARNING FROM THE BEST
Every country is different, but …
7
Ensure system leaders at the highest level, such as PMs, publicly announce and
reinforce their commitment to the transformation1
Adopt trial-and-error mentality : it is a journey where success brings success and
you learn as you go3
Focus on set of reforms prioritized for radicality of impact and speed, ensuring
visible quick wins4
Start with a rigorous self-assessment of performance and root-causes
(health diagnostics)2
Develop a high standards mentality for government services and reward on
performance (KPIs, bonuses)5
…successful reforms share important features
II

11. 7
10 key learnings (2/2)
Important ingredients for successful reforms
Ruthlessly apply the same rules for everyone, including highest levels, while allowing
for customer segmentation with differentiated levels of services and fees6
Create a one government principal including one stop shop/public service hall so
that interface with businesses and citizen customers is limited to one window8
Dare to install a new ,“clean” team of high-performing individuals to drive delivery,
monitor progress, and intervene as necessary9
Apply the “silence is consent” rule, which consists in granting automatic approval
after defined number of days7
Advertise successes worldwide to attract FDI and talented workers10
II
Every country is different, but …
LEARNING FROM THE BEST