Evaluating the Evaluation Strategy as an Instrument for Budgetary Control

This article reports recent research undertaken on the contribution of program evaluation to that part of the budget process for which the Australian public service has carriage. It examines the degree of success which the Labor government's evaluation strategy attained in serving budget agency information purposes. The research is not conclusive, only indicative. Based on two sets of evidence — interviews with officers in the Department of Finance¹ and an analysis of survey results on the use of evaluation in the budget — it contends the evaluation strategy has had only a marginal impact on central budgetary processes. By documenting changes in the approaches of budget officials the article reports the impact of program evaluation on the core function of Finance — the provision of policy advice relating to the expenditure priorities of government.     

ACCOUNTING FOR RESULTS: PORTFOLIO EXPLANATORY NOTES BECOME PROGRAM PERFORMANCE STATEMENTS

Abstract: This paper outlines the place of performance evaluation in the recent administrative reforms and, in that context, assesses the changes made for the 1991–92 Program Performance Statements. The changes constitute a concerted attempt to improve the system of program evaluation throughout the Australian Public Service. Coherent and logical, they are based on a model of governance that seeks to establish a definitive demarcation between policy and administration, and hence confirm traditional notions of ministerial accountability. Analysis of these changes from a parliamentary perspective suggests that, unless there are serious reforms introduced into parliament, there is an increased likelihood that the monitoring of the bureaucratic machinery of government will become inadequate.     

What Really Happens: Department Secretary Appointments,Contracts and Performance Pay in the Australian Public Service

This account of the practice in the Australian Public Service (APS) for appointing department secretaries, using contracts and rewarding for performance, is based on my own experience in being appointed, reappointed and not reappointed, and in receiving and not receiving performance pay. It also draws on my experience as Public Service Commissioner in assisting with appointments and performance pay of secretaries. I also discuss weaknesses in the current system, and the drift to ‘politicisation’. I was first appointed as a department secretary at the end of 1993 after 25 years in the APS including 15 years in the Senior Executive Service (SES) in three different portfolios (Social Security, Finance and Defence). I was secretary of three different departments (Administrative Services, Housing, and Health, some of which went through changes in name and responsibilities during my tenure) before being appointed as Public Service Commissioner from the beginning of 2002. I retired from the APS in June 2005.     

The Australian Public Service and Policy Advising: Meeting the Challenges of 21st Century Governance

This concluding article summarises the case study findings comprising the Special Issue on ‘Advising Australian Federal Governments: Assessing the Evolving Capacity and Role of the Australian Public Service’, identifies and discusses cross‐cutting issues, and considers strategic implications for future practice and research. It reviews key findings from six case studies – Treasury, Prime Minister and Cabinet, Intergovernmental Relations, Housing, the BER Stimulus program, and Defence – and assesses the policy advising capacity of the Australian Public Service, with a focus on the policy‐political interface between governments and officials. Putting recent experience in historical context, it considers the performance of the Commonwealth's policy advisory system, the impact of prime ministers and centralisation, the link between advising and analytic capacities, the system's resilience and readiness, whether recent dissatisfaction over APS advising reflect lack of capacity or a culture clash, and the responsibility for ensuring high‐quality policy advice. It recommends developing a more systematic approach to assessing policy advising capability, building on recent APS reforms.     

Response to Peter Shergold

Andrew Podger wrote an article in the June 2007 AJPA entitled ‘What Really Happens: Department Secretary Appointments, Contracts and Performance Pay in the Australian Public Service’. Dr Peter Shergold replied to his criticisms in the September issue of AJPA. This short response from Podger is the final rejoinder. In a second paper following this rejoinder the present Australian Public Service Commissioner comments on public service independence today.     

How Do We Know if it's Working?

This article introduces the first of the three cross‐cutting themes used to assess Australian integrity systems: evaluation of their consequences. It argues that an evidence‐based approach to assessing the overall impact of integrity and corruption prevention measures is possible, based on experience in Australia, drawing on measures including the evolving State of the Service surveys of the Australian Public Service Commission. However, different types of measurement serve different institutional purposes, with little current integration and no overall agreed framework for how they might be combined to help judge performance. The article identifies key issues that need to be addressed in developing such a framework.     

Past and Future Budget Classics: A Research Agenda

This article summarizes the content of four classic articles on budgeting that have appeared in Public Administration Review, outlines some of the major changes in budgeting that have occurred since those authors wrote, and, based on those changes, offers a research agenda for the next set of budget classics.     

Book Reviews

Book reviewed in this article: Bruce Mccallum , The Public Service Manager: An Introduction to Personnel Management in the Australian Public Service R. J. K. Chapman and Michael Wood , Australian Local Government Kosmas Tsokhas , A Class Apart? Businessmen and Australian Politics 1960–1980 Andrew Kakabadse and Suresh Mukhi (eds), The Future of Management Education Jonathan Boston , Incomes Policy in New Zealand: 1968–1984, Wellington, Victorian University Press for the Institute of Policy Studies David Dery , Problem Definition in Policy Analysis     

Where Have All the Ministers Gone?

The relationship between ministers and public servants has been a longstanding topic among students of Australian public administration. Recent debate has centred on issues of supposed politicisation and excessive responsiveness in the Australian Public Service (APS), caused, in part, by the weakened tenure of department heads (secretaries). The recent Moran report has little to say on this relationship. It endorses changes to the appointment processes for secretaries which are presumably designed to strengthen secretaries’ independence from their political masters. It adopts a view of citizen‐centred service and strategic leadership that appears to marginalise ministers. Its approach to public sector leadership is taken from international management theory that works well in a business context and in the United States (US) government system. It is less well‐suited to Westminster‐style systems.     

Programme and performance budgeting in Malaysia

This paper reviews the evolution of programme and performance budgeting (PPB) in Malaysia from its beginning in 1969, through the in-depth implementation phase which began in 1972, to the present day. It outlines the system in the Ministry of Health, where PPB has been extensively developed and comments on the systems established in other in-depth ministries, in several of which little appears to have been achieved. In 1981 all other agencies were asked to adopt PPB in their budget submissions. Compliance has been superficial. The paper explores the constraints to the further development of PPB. These range from difficulties of securing appropriate staff, lack of top-level commitment and information problems, to the inherent difficulties of programming and performance measurement. In seeking to evaluate the success of PPB the paper adopts two approaches. The first, involving a small questionnaire survey amongst those involved in PPB, reveals rather guarded opinions concerning its usefulness and progress. The second, which explores the use made of PPB, reveals little use by legislators, budget officers or line managers, and no link between PPB and the planning process. However the audit department expresses considerable interest in relation to performance auditing. In summary the achievements of PPB have been modest.     

Toward More “Evidence‐Informed” Policy Making?

The quality of public decision making depends significantly on the quality of analysis and advice provided through public organizations. Champions of “evidence‐informed” policy making claim that rigorous evaluation practices can significantly improve attainment of cost‐effective outcomes. After decades of experience, performance information is more sophisticated, but evaluation practices and capabilities vary enormously. Public agencies gather and process vast amounts of information, but there has been little analysis of how this information is actually utilized for policy and program improvement. This article examines how government agencies use evidence about policy and program effectiveness, with attention to four themes: (1) the prospects for improving “evidence‐informed” policy making, (2) the diversity of practices concerning evidence utilization and evaluation across types of public agencies and policy arenas, (3) recent attempts to “institutionalize” evaluation as a core feature of policy development and budget approval, and (4) the relationships between public agencies and nongovernmental sources of expertise.     

Evaluation and Social Impact Measurement Amongst Small to Medium Social Enterprises: Process,Purpose and Value

In recent years, the imperative to communicate organisational impacts to a variety of stakeholders has gained increasing importance within all sectors. Despite growing external demands for evaluation and social impact measurement, there has been limited critically informed analysis about the presumed importance of these activities to organisational success and the practical challenges faced by organisations in undertaking such assessment. In this paper, we present the findings from an action research study of five Australian small to medium social enterprises’ practices and use of evaluation and social impact analysis. Our findings have implications for social enterprise operators, policy makers and social investors regarding when, why and at what level these activities contribute to organisational performance and the fulfilment of mission.     

Job Satisfaction and Gender in the APS: Who’d Want to be a Male?

This article uses the 2008 State of the Service survey data to compare the job satisfaction and attitudes toward work of men and women in the Australian Public Service (APS). It shows that up to and including Executive Level (EL) women are significantly more positive than men about their work and the organisation. At Senior Executive Service (SES) level men are more satisfied. The article also looks at the predictors of job satisfaction separately for men and women at each level, and finds that career progression, support for work‐life balance, agency leadership, role clarity and authority and good immediate management are significant contributors for most employees. It suggests that the APS use these findings to identify those areas which need to be developed in order to attract men, and increase the job satisfaction of existing male staff at Executive Level and below.     

From Rhetoric to Blueprint: The Moran Review as a Concerted,Comprehensive and Emergent Strategy for Public Service Reform

On 3 September 2009, Prime Minister Rudd announced a six‐month Review of Australian Government Administration. He appointed an Advisory Group chaired by Terry Moran, Secretary of the Department of Prime Minister and Cabinet, to prepare a discussion paper, oversee a benchmarking study and consultations, and craft a blueprint to reform the Australian Public Service (APS) in order to deal with future governance challenges. The vision is to develop a forward‐looking, innovative, collaborative, citizen‐focused, agile, informed and highly‐skilled APS to advise and deliver policy and services for government. Ahead of the Game, a comprehensive Blueprint for action, was released on 29 March 2010. This article provides a high‐level review of motivations and process for the Moran Review, an overview of the Blueprint, an assessment of the strategy and process, and suggestions for moving forward on selected issues.     

Consultants and the Public Service

Governments, as well as the community at large, need disinterested analysis and advice. It is important that governments are advised on the options for and against intervention in what some perceive as wrongs, and the potential and likely costs as well as the benefits to the whole community of such interventions. When the Royal Commission on Australian Government Administration (RCAGA) was set up, most of this advice came from 'official sources': principally the Commonwealth Public Service, supplemented by official bodies such as the Tariff Board and the Bureau of Agricultural Economics. RCAGA was concerned about the narrowness of Australian policy discourse (especially in relation to economic policy), and explored several avenues for widening it. Ironically, these possibilities did not include what has turned out to be a very significant alternative to official sources: the use of outside consultants. This paper reviews the growing use of consultants in government, starting from the concerns of RCAGA, and exploring the institutionalisation of 'outside' advice, and the impact of this on the capacity of the public service to advise.     

Reviews

Books reviewed in this article:
The Ethics of Economic Rationalism John Wright
Platypus and Parliament: The Australian Senate in Theory and Practice Stanley Bach
Parliamentary Privilege Enid Campbell
The Australian Experience of Public Sector Reform: Occasional Paper Two Australian Public Service Commission
Off Course. From Public Place to Marketplace at Melbourne University John Cain and John Hewitt
Australian Liberals and the Moral Middle Class: From Alfred Deakin to John Howard Judith Brett     

THE FINANCIAL MANAGEMENT STRATEGY OF THE VICTORIAN COALITION GOVERNMENT

Abstract: This article reviews the budget sector financial management strategy of the Victorian Coalition government in the crucial period from its election in October 1992 up to the 1993–94 budget. The twin goals set by the Coalition were the elimination of the current account deficit, and the reduction of debt levels. Given infrastructure pressures, the debt reduction goal will be a difficult one to achieve. More precisely, it will be a difficult one to achieve without relying upon instruments such as assets sales, which the Coalition has viewed as artificial debt reduction techniques. The capital expenditure plans embodied in the 1993–94 state budget were not consistent with the debt reduction plans specified only months earlier by the Coalition. Victoria's debt levels are quite moderate even by OECD standards. What makes debt levels a real issue for the state is the narrowness of the tax bases of the Australian states, and the fact that Victoria is taxing at something like its maximum levels (at least, without coordinated multi-state tax increases). It is argued that, if the states could be confident that their revenue positions would hold firm (concretely, that revenue and grants as a proportion of GSP would remain constant), the appropriate debt policy goal for Victoria would be stabilisation — rather than reduction — of its debt/GSP ratio. However, the foreshadowed trend reduction of real commonwealth grants, as part of the so-called national savings campaign, makes it appropriate for Victoria — given the circumstances in which it finds itself — to target the reduction of debt/GSP levels.     

EFFICIENCY AND EFFECTIVENESS: PROBLEMS OF ASSESSMENT

Abstract: The paper focuses on the Coombs Commission's recommendations on efficiency and effectiveness in the Commonwealth Public Service. The recommendations involve the allocation of organizational responsibility for efficiency and effectiveness to the Department of Prime Minister and Cabinet, the Public Service Board, Treasury and the Auditor-General and individual responsibility to the departmental manager through the establishment of a "Forward Estimating Budgetary" process. However the Commission has given little guidance in the matter of the technological tools which must be developed in order to secure its implementation.
The Commonwealth Public Service Board has developed over the last two years a program of Staff Utilization Reviews (S. U. Rs) as one of its management improvement programs. The paper canvases the technological aspects of efficiency and effectiveness drawing upon the development and operational experience of the S.U.R. program. It concludes that much resource-intensive work must be done before the Commission's recommendations can be implemented but Australian and overseas experience confirms the potential fruitfulness of that work.     

THE PUBLIC SERVICES AND CO-OPERATTVE FEDERALISM

A paper of this type clearly calls for some definition of terms. Although "The Public Services" are usually seen to comprise the State Public Services and the Australian Public Service, in reality of course, government institutionalized services to the public go beyond these seven agencies. All the statutory authorities—Commissions, Corporations, Boards and Trusts—are part of public administration; so also are local government bodies. There are in the various public services some agencies which form part of the public service proper (i.e. a Department defined as such under one or other of the Public Service Acts) whereas in others they have the independence of a corporate entity. In South Australia for instance the whole state water supply and sewerage services are provided by one public service department, the Engineering and Water Supply Department. In the other states those services are provided by more than one agency and these range from government departments and local governing bodies to statutory authorities. A similar division of responsibility exists in the road construction area where some states perform their highway undertakings through the agency of a statutory authority, while others prefer the tighter Ministerial control of a government department.     

Budget Reform in Malaysia and Australia Compared

The study, using the recent contrasting experience of budget reform in Malaysia and Australia, inquires why quite similar changes were attempted in different socio-economic and fiscal settings. It explains why their implementation differed and identifies the factors that shaped, sustained, or impeded the respective efforts.
Three basic themes emerge. First, political and administrative will are necessary requirements for the success of any budget reform effort. Second, the more correspondent the bureaucratic culture is with the culture upon which the new budget system is premised, the more easily change occurs. Third, a model of reform predicated upon the assumption of fiscal restraint cannot effectively function in a climate of fiscal relaxation. Malaysia adapted its budget model from the Australian system. As the Australian model suited the paradigm of expenditure restraint, the adapted model proved less workable against the Malaysian climate of fiscal relaxation.