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January 4, 2018Dr. Md. Shamsul Arefin
1
PUBLIC MANAGEMENT STRATIGIES AND
GOVERNANCE:
ISSUES AND CHANLENGES
&
CHANGE MANAGEMENT STRATEGIES IN PUBLIC SECTOR
Senior Staff Course
BPATC
Dr. Md. Shamsul Arefin
Secretary
Anti-Corruption Commission
Public Management and Governance Reform
The main hypothesis in the NPM and Governance Reform:
• A management philosophy used by governments since the
1980s to modernise the public sector.
• The wave of public sector reforms throughout the world since
the 1980s.
 More market orientation in the public sector will lead to
greater cost-efficiency for governments, without having
negative side effects on other objectives and considerations
January 4, 2018
2
Dr. Md. Shamsul Arefin
Characteristics of NPM and Governance
• Orientation towards economy, efficiency and effectiveness
• Market principles
• Effort to impose values and techniques of private sector
management into the public sector
• splitting large bureaucracies into smaller, more fragmented
ones,
• competition between different public agencies, and between
public agencies and private firms
• incentivization on more economic lines
January 4, 2018
3
Dr. Md. Shamsul Arefin
Why Governance is to be changed
• Globalization
 government needs to adapt to changing context
• Budgetary deficit
 government must be more efficient
 “more with less”
• Information technology revolution
 providing the means to “do government differently”
 creating demand that governments govern differently
The Voice Against Bureaucracy
• Bureaucrats primary focus is proper procedure
-- rather than results
▫ bureaucratic self-preservation
• Rigid -- rather than responsive
• Insulated -- rather than sensitive
•
• Wasteful
▫ Value for money not realised
▫ Unrepresentative
The New Public Management
• making government become more like business...
▫ focused on customer service
▫ subject to competition
▫ performance clearly indicated by profit margins -- “the bottom
line”
▫ central concern with outcomes not process
• the motivation for change
• the (abstract) solution
• Values
• providing high-quality services that citizens value
• focus on citizen-centred service, service standards, and service
quality
The New Public Management (Borins) – Management Practices
• providing high-quality services that citizens value
• adoption of private sector concepts of customer service
• increasing the autonomy of public managers (especially from
central agency controls)
▫ focus on outcomes not process
▫ “steering not rowing”
The New Public Management – The Canadian Model
• Measuring and rewarding organizations and individuals on
whether they meet performance targets
• the role of government “can vary from leader, to catalyst, to partner”
• less emphasis on privatization – more emphasis on alternative service delivery
Values of the
New Public Management
New Public
Management
Traditional Public
Administration
Values entrepreneurship,
flexibility, creativity
prudence, stability,
probity,
accountability
Risk Tolerance risk taking risk averse
Accountability accountability by
results
process
accountability
Structures decentralized,
partnerships,
contracts
hierarchical,
centralized
Governance
• Governance: process of decision-making and the process by
which decisions are implemented (or not implemented)
• Hereby, public institutions conduct public affairs, manage
public resources, and guarantee the realization of human
rights
• Good governance accomplishes this in a manner essentially
free of abuse and corruption, and with due regard for the
rule of law
January 4, 2018
10
Dr. Md. Shamsul Arefin
Participation
• Participation by both men and women - a key
cornerstone of good governance.
• Participation: direct or through legitimate
intermediate institutions or representatives.
• Freedom of association and expression;
• An organized civil society
January 4, 2018
11
Dr. Md. Shamsul Arefin
Rule of law
• Good governance requires:
• fair legal frameworks that are enforced impartially.
• protection of human rights, esp. those of minorities.
• Impartial enforcement of laws requires an
independent judiciary and an impartial and
incorruptible police force.
January 4, 2018
12
Dr. Md. Shamsul Arefin
Transparency
• Decisions taken and their enforcement done in a manner
that follows rules and regulations
• information is freely available and directly accessible to
those who will be affected by such decisions and their
enforcement
• information provided in easily understandable forms and
media.
January 4, 2018
13
Dr. Md. Shamsul Arefin
Accountability
• Accountability -key requirement of good governance
• Not only governmental institutions but also the private
sector and civil society organizations must be accountable
to the public and to their institutional stakeholders
• An organization or an institution is accountable to those
who will be affected by its decisions or actions.
January 4, 2018
14
Dr. Md. Shamsul Arefin
Issues and Challenges
• Good governance requires mediation of the different
interests in society to reach a broad consensus in society on
what is in the best interest of the whole community and how
this can be achieved.
• But many times it never happens
• It requires that all groups, particularly the most vulnerable,
have opportunities to improve or maintain their well-being.
• But only majority group takes decision
January 4, 2018
15
Dr. Md. Shamsul Arefin
Issues and Challenges
• Not agreed to political accountability
• Poor contacts with the citizen
• Decreased transparency
• Corruption
• Citizens’ rights are not valued
• Centralization and Discretion
• Compensations are ignored
January 4, 2018
16
Dr. Md. Shamsul Arefin
Dr. Md. Shamsul Arefin
Challenges
 Nobody can be better off without making
anybody worse off
 Interests are interrelated
 Governance does not benefit both always
 If you stand for poor, rich raised voice
 If you stand for rich, poor does not react
 If you stand for poor, poor will not protect you
 Your own position is at risk for the time being
 In short run, society faces conflict
01/04/18
17
Exercise:
Change management Strategy in Public Sector
• The first practices of New Public Management emerged in the United Kingdom under the
leadership of Prime Minister Margaret Thacher. Thatcher played the functional role of
“policy entrepreneur" and the official role of Prime Minister. Thatcher drove changes in
public management policy in such areas as organizational methods, civil service, labor
relations, expenditure planning, financial management, audit, evaluation, and
procurement.
• Thatcher's successor, John Mayor, kept public management policy on the agenda of the
Conservative government, leading to the implementation of the Next Steps Initiative.
Mayor also launched the programs of the Citizens Charter Initiative, Competing for
Quality, Resource Accounting and Budgeting, and the Private Finance Initiative and then
PPP.
• The term was coined in the late 1980s to denote a new (or renewed) stress on the
importance of management and ‘production engineering’ in public service delivery, which
often linked to doctrines of economic rationalism and value for money.
• During this timeframe public management became an active area of policy-making in other
countries, notably in New Zealand, Australia, and Sweden.
January 4, 2018
18
Dr. Md. Shamsul Arefin
Exercise:
Change management Strategy in Public Sector
• NPM was accepted as the "gold standard for administrative reform" in the 1990s. The idea
for using this method for government reform was that if the government guided private-
sector principles were used rather than rigid hierarchical bureaucracy, it would work more
efficiently. NPM promotes a shift from bureaucratic administration to business-like
professional management. NPM was cited as the solution for management ills in various
organizational context and policy making in education and health care reform.
• There is no single and exhaustive definition of “good governance,” nor is there a
delimitation of its scope, that commands universal acceptance. The term is used with great
flexibility; this is an advantage, but also a source of some difficulty at the operational level.
Depending on the context and the overriding objective sought, good governance has been
said at various times to encompass: full respect of human rights, the rule of law, effective
participation, multi-actor partnerships, political pluralism, transparent and accountable
processes and institutions, an efficient and effective public sector, legitimacy, access to
knowledge, information and education, political empowerment of people, equity,
sustainability, and attitudes and values that foster responsibility, solidarity and tolerance.
January 4, 2018
19
Dr. Md. Shamsul Arefin
January 4, 2018Dr. Md. Shamsul Arefin
20
Please prepare a presentation on effective
governance of the sectors mentioned below:
(any one by each group)
 Health
 Education
 Transportation
 Energy
 Law and order management
 Public service delivery

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Strategies for Effective Public Sector Governance

  • 1. January 4, 2018Dr. Md. Shamsul Arefin 1 PUBLIC MANAGEMENT STRATIGIES AND GOVERNANCE: ISSUES AND CHANLENGES & CHANGE MANAGEMENT STRATEGIES IN PUBLIC SECTOR Senior Staff Course BPATC Dr. Md. Shamsul Arefin Secretary Anti-Corruption Commission
  • 2. Public Management and Governance Reform The main hypothesis in the NPM and Governance Reform: • A management philosophy used by governments since the 1980s to modernise the public sector. • The wave of public sector reforms throughout the world since the 1980s.  More market orientation in the public sector will lead to greater cost-efficiency for governments, without having negative side effects on other objectives and considerations January 4, 2018 2 Dr. Md. Shamsul Arefin
  • 3. Characteristics of NPM and Governance • Orientation towards economy, efficiency and effectiveness • Market principles • Effort to impose values and techniques of private sector management into the public sector • splitting large bureaucracies into smaller, more fragmented ones, • competition between different public agencies, and between public agencies and private firms • incentivization on more economic lines January 4, 2018 3 Dr. Md. Shamsul Arefin
  • 4. Why Governance is to be changed • Globalization  government needs to adapt to changing context • Budgetary deficit  government must be more efficient  “more with less” • Information technology revolution  providing the means to “do government differently”  creating demand that governments govern differently
  • 5. The Voice Against Bureaucracy • Bureaucrats primary focus is proper procedure -- rather than results ▫ bureaucratic self-preservation • Rigid -- rather than responsive • Insulated -- rather than sensitive • • Wasteful ▫ Value for money not realised ▫ Unrepresentative
  • 6. The New Public Management • making government become more like business... ▫ focused on customer service ▫ subject to competition ▫ performance clearly indicated by profit margins -- “the bottom line” ▫ central concern with outcomes not process • the motivation for change • the (abstract) solution • Values • providing high-quality services that citizens value • focus on citizen-centred service, service standards, and service quality
  • 7. The New Public Management (Borins) – Management Practices • providing high-quality services that citizens value • adoption of private sector concepts of customer service • increasing the autonomy of public managers (especially from central agency controls) ▫ focus on outcomes not process ▫ “steering not rowing”
  • 8. The New Public Management – The Canadian Model • Measuring and rewarding organizations and individuals on whether they meet performance targets • the role of government “can vary from leader, to catalyst, to partner” • less emphasis on privatization – more emphasis on alternative service delivery
  • 9. Values of the New Public Management New Public Management Traditional Public Administration Values entrepreneurship, flexibility, creativity prudence, stability, probity, accountability Risk Tolerance risk taking risk averse Accountability accountability by results process accountability Structures decentralized, partnerships, contracts hierarchical, centralized
  • 10. Governance • Governance: process of decision-making and the process by which decisions are implemented (or not implemented) • Hereby, public institutions conduct public affairs, manage public resources, and guarantee the realization of human rights • Good governance accomplishes this in a manner essentially free of abuse and corruption, and with due regard for the rule of law January 4, 2018 10 Dr. Md. Shamsul Arefin
  • 11. Participation • Participation by both men and women - a key cornerstone of good governance. • Participation: direct or through legitimate intermediate institutions or representatives. • Freedom of association and expression; • An organized civil society January 4, 2018 11 Dr. Md. Shamsul Arefin
  • 12. Rule of law • Good governance requires: • fair legal frameworks that are enforced impartially. • protection of human rights, esp. those of minorities. • Impartial enforcement of laws requires an independent judiciary and an impartial and incorruptible police force. January 4, 2018 12 Dr. Md. Shamsul Arefin
  • 13. Transparency • Decisions taken and their enforcement done in a manner that follows rules and regulations • information is freely available and directly accessible to those who will be affected by such decisions and their enforcement • information provided in easily understandable forms and media. January 4, 2018 13 Dr. Md. Shamsul Arefin
  • 14. Accountability • Accountability -key requirement of good governance • Not only governmental institutions but also the private sector and civil society organizations must be accountable to the public and to their institutional stakeholders • An organization or an institution is accountable to those who will be affected by its decisions or actions. January 4, 2018 14 Dr. Md. Shamsul Arefin
  • 15. Issues and Challenges • Good governance requires mediation of the different interests in society to reach a broad consensus in society on what is in the best interest of the whole community and how this can be achieved. • But many times it never happens • It requires that all groups, particularly the most vulnerable, have opportunities to improve or maintain their well-being. • But only majority group takes decision January 4, 2018 15 Dr. Md. Shamsul Arefin
  • 16. Issues and Challenges • Not agreed to political accountability • Poor contacts with the citizen • Decreased transparency • Corruption • Citizens’ rights are not valued • Centralization and Discretion • Compensations are ignored January 4, 2018 16 Dr. Md. Shamsul Arefin
  • 17. Dr. Md. Shamsul Arefin Challenges  Nobody can be better off without making anybody worse off  Interests are interrelated  Governance does not benefit both always  If you stand for poor, rich raised voice  If you stand for rich, poor does not react  If you stand for poor, poor will not protect you  Your own position is at risk for the time being  In short run, society faces conflict 01/04/18 17
  • 18. Exercise: Change management Strategy in Public Sector • The first practices of New Public Management emerged in the United Kingdom under the leadership of Prime Minister Margaret Thacher. Thatcher played the functional role of “policy entrepreneur" and the official role of Prime Minister. Thatcher drove changes in public management policy in such areas as organizational methods, civil service, labor relations, expenditure planning, financial management, audit, evaluation, and procurement. • Thatcher's successor, John Mayor, kept public management policy on the agenda of the Conservative government, leading to the implementation of the Next Steps Initiative. Mayor also launched the programs of the Citizens Charter Initiative, Competing for Quality, Resource Accounting and Budgeting, and the Private Finance Initiative and then PPP. • The term was coined in the late 1980s to denote a new (or renewed) stress on the importance of management and ‘production engineering’ in public service delivery, which often linked to doctrines of economic rationalism and value for money. • During this timeframe public management became an active area of policy-making in other countries, notably in New Zealand, Australia, and Sweden. January 4, 2018 18 Dr. Md. Shamsul Arefin
  • 19. Exercise: Change management Strategy in Public Sector • NPM was accepted as the "gold standard for administrative reform" in the 1990s. The idea for using this method for government reform was that if the government guided private- sector principles were used rather than rigid hierarchical bureaucracy, it would work more efficiently. NPM promotes a shift from bureaucratic administration to business-like professional management. NPM was cited as the solution for management ills in various organizational context and policy making in education and health care reform. • There is no single and exhaustive definition of “good governance,” nor is there a delimitation of its scope, that commands universal acceptance. The term is used with great flexibility; this is an advantage, but also a source of some difficulty at the operational level. Depending on the context and the overriding objective sought, good governance has been said at various times to encompass: full respect of human rights, the rule of law, effective participation, multi-actor partnerships, political pluralism, transparent and accountable processes and institutions, an efficient and effective public sector, legitimacy, access to knowledge, information and education, political empowerment of people, equity, sustainability, and attitudes and values that foster responsibility, solidarity and tolerance. January 4, 2018 19 Dr. Md. Shamsul Arefin
  • 20. January 4, 2018Dr. Md. Shamsul Arefin 20 Please prepare a presentation on effective governance of the sectors mentioned below: (any one by each group)  Health  Education  Transportation  Energy  Law and order management  Public service delivery