Managing for Results in Lithuania 10 January 2014

Brussels, Belgium

Office of the Government of LithuaniaHead of Strategic Planning and Monitoring Unit

Egle RIMKUTE

Plan

•Strategic Management Context and Framework•Planning and monitoring for results •Value for Money•The way forward

STRATEGIC MANAGEMENT CONTEXT AND FRAMEWORK

Strategic management development• I phase – introduction of SP, IA

– 1999 – 2000: institutionalisation of SP across Govt– 2002: introduction of impact assessment

• II phase – consolidation of strategic planning, IA– 2003 – 2008: through Strategic planning committee

• III phase – rethinking efficiency and effectiveness– 2009 - 2011:

• strengthening of Government-wide- approach and leadership • introduction of budget negotiations, evaluation, functional

reviews, capability reviews

Meeting the crisis

Tools to manage results - LT

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Impact assessment

Strategic planning/ Government Priorities

Monitoring

EffectivenessEffectiveness

Programme evaluation

Impact Assessment (EU)

Policy Management Tools Capability,

function review

CRISIS

PLANNING AND MONITORING FOR RESULTS

Strategic planning system

NEWNEW

NEW

NEW

NEWNEW

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http://www.facebook.com/Lietuva2030 http://www.lietuva2030.lt/

http://www.youtube.com/user/2030Lietuva

At least 10 projects implemented

annually through Government priorities

At least 10 projects implemented

annually through Government priorities

National Development ProgrammeN

DP

pri

ori

ties

Smart EconomySmart Society Smart Management

Progressive andsociety orineted

public management

Economic growth friendly

environment

Integral and high added

value oriented economy

Education, Science and

culture

Active society

LITHUANIA 2030

Strategy “Europe 2020”

Progressive growth Sustainable growth Integral growth

Culture

Regional DevelopmentHealth

Development programmes

• FILTER: Request for Government’s permission to prepare development programme

• SCOPE: Development programme has to cover at least one governance/public policy area

• TIMEFRAME: Medium-term (7-9 years) planning document to be approved by the Government

• OWNERSHIP: each programme has coordinator

Government-wide policies

• Two main cross-cutting documents:– Annual Government Priorities– Cross-cutting plans

Government priorities concept development

Government/ minister Priorities

Planning ProcessPolitical debate Strategic sessions

Political debate Strategic sessions and decision

Implementation and monitoring

• Quarterly reports:– Ministries submit performance information– GO analyses and summarises results

• Quarterly Cabinet discussions:– GO presents progress– Ministers discuss

• “Naming and shaming”:– Poor performance and implementation problems

Contents – Business developmentTasks/ projects Deadline Responsible

1. Better business inspection:- Prepare and introduce questionnaires for business inspections - Implement “2 dates” rule to announce new business requirements

III quarter

II quarter

Ministry of Economy - coordinator

2. Better business environment:- Introduce “Consult, do not punish” for first-year businesses- Ensure e-establishment for micro-businesses- Cut VAT registration from 7 to 3 wd

III quarter

III quarterI quarter

Ministry of Ec.

Ministry of Jus.Tax Insp.

…

Targets 2011 2012

Business Environment Index (WB Doing Business) (LT position)

20 17

Cross-Cutting Plans• TIMEFRAME: Short-term (up to 3 years) planning document to be

approved by the Government• NECCESSITY: Horizontal planning document for the implementation

of horizontal goals and objectives of:– Government priorities, complex problems– National Development programme or other development programmes– More than 3 appropriation managers involved in the implementation

• FILTER: prior Government permission• INTEGRITY and FINANCIAL DISCIPLINE:

– connected with strategic plan and budget (activities and projects exported and “duplicated” in budget programmes)

– “frozen” funds (in IT budget execution and results monitoring system)

• SCOPE: 9 cross-cutting plans

Cross-cutting plans• NDP plan “Regional Development”• NDP plan “Culture”• NDP plan “Health for All”• Increase of employment• EU Presidency• Safety on the roads• Information society• Climate change• Sports and sports for all

Strategic plan and budget

STRATEGIC CHANGES AND PRIORITIES –

MINISTER’S POLITICAL AGENDA

MISSION

PRIORITIES:-Projects-IndicatorsLEGISLATIVE INITIATIVESEFFICIENCY INITIATIVES

STRATEGIC CHANGES AND PRIORITIES –

MINISTER’S POLITICAL AGENDA

MISSION

PRIORITIES:-Projects-IndicatorsLEGISLATIVE INITIATIVESEFFICIENCY INITIATIVES

STRATEGIC GOALS AND BUDGET PROGRAMMES - Impact indicators

MINISTRY STRATEGY

BUDGET PROGRAMME:-Goals € Result indicators-Objectives € Output indicators-Activities/ € projects

STRATEGIC GOALS AND BUDGET PROGRAMMES - Impact indicators

MINISTRY STRATEGY

BUDGET PROGRAMME:-Goals € Result indicators-Objectives € Output indicators-Activities/ € projects

COALITION AGREEMENT AMBITIONS

MINISTRY STRATEGY AND OPERATIONS

Performance agreementFocus in Budget negotiation

Strategic plan

Government priorities

Tasks/ projects

Rezults

Minister’s priorities

Tasks/ projects

Results

Manager’s performance agreement

Employees performance agreement

Minister’s and PM’s agreementIncentives to change

Manager’s and employees’ agreementMain tasks and results

Cascading tasks and results

Results based budget cycleAnalysis of situation and

achieved resultsAnnual reports

Government annual report

Government priorities

Ministry strategic goals and outcomes

Macroeconomic prognosis

Strategic plans

Budget Negotiations/ Performance agreements

Draft Budget +Government priorities

and Outcomes

OPM and MF analyse

Budget negotiations PM, MF, minister

Strategic plan preparation

Budget preparation

Janu

ary

– M

arch

April

–

May

May

–

June

July

–

Augu

st

Ministry strategic plans approved

Consultation with PM

Oct

ober

–

Nov

embe

r

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Monitoring information system (SIS)• Aim: monitor and analyse achievement of goals and

targets • Scope: long, mid and short term documents:

– Strategies, programmes, plans and Government priorities (about 60 planning documents)

• Target: goals, PIs (about 3500 Pis) and budget execution

• Frequency: quarterly• Functionality:

– Monitoring by traffic lights– Analysing performance and budget trends

Performance monitoring – IT solutions

Benefits•Linkages between different documents and their elements •Performance indicators change dynamics •Real time tracking possibilities•Analysis of budget spending•Performance indicators data visualization•Time frames for measures•Analytical tools•Etc.

Monitoring Process

Govt priorities: Self-Assessment

MINISTRIES BENCHMARKING

Value for Money

Budget negotiations• Negotiations between PM, MoF and line minister• Draft strategic plan – the focus of discussions • Focus on Government’s or minister’s priorities and

results • Ministries have to identify how their budget request

reflects results • GO role: advice priorities, results, efficiency

– 2010-2011 focus on effectiveness and public spending cuts– 2012 – focus on results and effectiveness

Budget negotiations - processAssisted by 14 working groups (OG and MoF)

Standardized analysis process (standard

checklist)

14 meetings 14 position notes

Position note - example

Budget negotiations

Challenge – information!

Challenges

• Pressure to complete reforms within 1-2 years• Will need several years to consolidate and test new

approaches• Future priorities will be:

– ensuring policy management framework remains relevant to changing environment and political needs

– increasing policy analysis and evaluation capacity within government

– ensuring performance information is not ignored and informs planning

Thank you for your attention!Office of the Government of Lithuania

Strategic Planning and Monitoring UnitEgle Rimkute

egle.rimkute@lrv.ltegle.rimkute@yahoo.co.uk