The New Public Management, the Sponsorship Scandal & the Gomery Inquiry

The New Public The New Public Management, the Management, the Sponsorship Scandal & Sponsorship Scandal & the Gomery Inquirythe Gomery Inquiry

The New Public ManagementThe New Public Management

basic descriptionbasic descriptionNPM and the context of the Sponsorship NPM and the context of the Sponsorship

ScandalScandalNPM and the Gomery RecommendationsNPM and the Gomery Recommendations

The Context -- New Public The Context -- New Public ManagementManagement the degree of reliance on private enterprise the degree of reliance on private enterprise

in the Sponsorship programin the Sponsorship program

The Context -- New Public The Context -- New Public ManagementManagement

““One expert attributed the Sponsorship scanadal to One expert attributed the Sponsorship scanadal to excesses caused by what he called a “private business excesses caused by what he called a “private business culture” or “entrepreneurialism” in the public service. culture” or “entrepreneurialism” in the public service. This attitude has replaced a “public business” standards This attitude has replaced a “public business” standards based on the public interest. In the Sponsorship Program, based on the public interest. In the Sponsorship Program, acccording to this theory, the Prime Minister and the acccording to this theory, the Prime Minister and the Cabinet, with the best of intentions, encouraged the Cabinet, with the best of intentions, encouraged the entrepreneurialism of certain public servants, who in turn entrepreneurialism of certain public servants, who in turn stopped working for and by the rules of their department stopped working for and by the rules of their department and cultviated relationships with private-sector and cultviated relationships with private-sector sponsorship companies using a different set of rules and sponsorship companies using a different set of rules and standards.”standards.”

Gomery Report, Gomery Report, RecommendationsRecommendations, , 46.46.


in the Sponsorship programin the Sponsorship program lax attitude towards processlax attitude towards process


““One legal expert spoke of the Government One legal expert spoke of the Government advertising program as having no rules or direction, advertising program as having no rules or direction, suggesting that a ‘shift to a rule-of-law culture’ suggesting that a ‘shift to a rule-of-law culture’ would shelter advertising programs from corruption. would shelter advertising programs from corruption. Such a culture would shift the balance towards Such a culture would shift the balance towards public servants’ loyalty to the rules of the public public servants’ loyalty to the rules of the public service rather than to the wishes of their political service rather than to the wishes of their political superiors.”superiors.” Gomery Gomery Report, Report, RecommendationsRecommendations, 46., 46.

The Context -- New Public The Context -- New Public ManagementManagement ““The management culture has changed The management culture has changed

dramatically over the past 20 years from solid dramatically over the past 20 years from solid record-keeping, accountability and dedication to record-keeping, accountability and dedication to the public service and loyalty according to our the public service and loyalty according to our oath of office to Canada, to avoidance of record-oath of office to Canada, to avoidance of record-keeping and accountability, and dedication of keeping and accountability, and dedication of loyalty to the individuals who appointed you and loyalty to the individuals who appointed you and can promote you.”can promote you.”Former Public Servant quoted in Gomery Former Public Servant quoted in Gomery Report, Report, RecommendationsRecommendations, 35., 35.

The Context -- New Public The Context -- New Public ManagementManagement““...the preoccupation with policy and the ...the preoccupation with policy and the

resulting lack of emphasis on management resulting lack of emphasis on management had permitted the quality of departmental had permitted the quality of departmental management to fall short of acceptable management to fall short of acceptable standards.”standards.”

Gomery Report, Gomery Report, RecommendationsRecommendations, , 35.35.


in the Sponsorship programin the Sponsorship program lax attitude towards processlax attitude towards process the emphasis on resultsthe emphasis on results



– Mr. Chretien’s defence of the programMr. Chretien’s defence of the program

The Context -- New Public The Context -- New Public ManagementManagement the degree of reliance on private enterprise in the the degree of reliance on private enterprise in the

Sponsorship programSponsorship program lax attitude towards processlax attitude towards process the emphasis on resultsthe emphasis on results

– Mr. Chretien’s defence of the programMr. Chretien’s defence of the program ““By the year of 2003, support for Canada in Quebec had By the year of 2003, support for Canada in Quebec had

increased substantially from where it was in the immediate increased substantially from where it was in the immediate aftermath of the Referendum. In the fall of 2003, 65 percent aftermath of the Referendum. In the fall of 2003, 65 percent of Quebecers were satisfied with their federal government.”of Quebecers were satisfied with their federal government.”


the degree of reliance on private enterprise in the the degree of reliance on private enterprise in the Sponsorship programSponsorship program

lax attitude towards processlax attitude towards process the emphasis on resultsthe emphasis on results

– Mr. Chretien’s defence of the programMr. Chretien’s defence of the program ““By the year of 2003, support for Canada in Quebec had increased By the year of 2003, support for Canada in Quebec had increased

substantially from where it was in the immediate aftermath of the substantially from where it was in the immediate aftermath of the Referendum. In the fall of 2003, 65 percent of Quebecers were Referendum. In the fall of 2003, 65 percent of Quebecers were satisfied with their federal government.”satisfied with their federal government.”

– indicative of general problems with performance reportingindicative of general problems with performance reporting reporting problemsreporting problems attributing causationattributing causation



The Context -- New Public The Context -- New Public ManagementManagement ““...there are those who will say that the adoption ...there are those who will say that the adoption

of new public management principles, with their of new public management principles, with their emphasis on service delivery, increased autonomy emphasis on service delivery, increased autonomy of public managers from central controls. of public managers from central controls. rewarding individuals for performance, and rewarding individuals for performance, and cutting public programs and public servants, cutting public programs and public servants, significantly contributed to the grants and significantly contributed to the grants and contributions crisis.”contributions crisis.”

David A. Good, David A. Good, The Politics of Public The Politics of Public

ManagementManagement



Values of the Values of the New Public ManagementNew Public Management

New PublicManagement

Traditional PublicAdministration

Values entrepreneurship,flexibility, creativity

prudence, stability,probity,accountability

Risk Tolerance risk taking risk averse

Accountability accountability byresults

processaccountability

Structures decentralized,partnerships,contracts

hierarchical,centralized

The New Public ManagementThe New Public Management

basic descriptionbasic descriptionNPM and the context of the Sponsorship NPM and the context of the Sponsorship

ScandalScandalNPM and the Gomery RecommendationsNPM and the Gomery Recommendations

Values of the Values of the New Public ManagementNew Public Management

New PublicManagement









Some Thoughts on the Context:Some Thoughts on the Context:

““There’s a new emphasis in the federal There’s a new emphasis in the federal government to encourage risk-taking among government to encourage risk-taking among its employees. But the reality remains that its employees. But the reality remains that when mistakes are made the individual is when mistakes are made the individual is hoisted up the flagpole.”hoisted up the flagpole.”

News report of TBS News report of TBS StudyStudy

WHY???WHY???

Context in which Change is/was Context in which Change is/was Taking Place...Taking Place...globalizationglobalizationbudgetary deficitbudgetary deficit information technology revolutioninformation technology revolution less deferential publicless deferential publicmore aggressive mediamore aggressive media

OBSTACLES TO NPM REFORM:OBSTACLES TO NPM REFORM:The “Control Lobby”The “Control Lobby”

who are they?who are they?– opposition parties in Parliamentopposition parties in Parliament– The Auditor GeneralThe Auditor General– the mediathe media

link to NPMlink to NPM– doubts about the adequacy of rules regulating doubts about the adequacy of rules regulating

bureaucratic behaviorbureaucratic behavior– calls for greater bureaucratic accountability (process)calls for greater bureaucratic accountability (process)

motivesmotives benignbenign cynicalcynical

Control Lobby DemandsControl Lobby Demands

calls for greater personal bureaucratic calls for greater personal bureaucratic accountabilityaccountability– ministerial “answerability”ministerial “answerability”

lack of appropriate penaltieslack of appropriate penalties artificiality of ministerial “answerability”artificiality of ministerial “answerability”

– tenure of ministerstenure of ministers– scope of ministerial knowledge/competencescope of ministerial knowledge/competence– reactive (rather than proactive)reactive (rather than proactive)

examples examples – Al-MashatAl-Mashat– HRDC scandalHRDC scandal


means to achieve greater personal bureaucratic means to achieve greater personal bureaucratic accountabilityaccountability

strengthened Freedom of Informationstrengthened Freedom of Information bureaucratic accountability to parliamentary committeesbureaucratic accountability to parliamentary committees whistleblowing/internal disclosure of wrong-doingwhistleblowing/internal disclosure of wrong-doing


calls for greater personal bureaucratic accountabilitycalls for greater personal bureaucratic accountability calls for tighter controls on bureaucracy and stricter calls for tighter controls on bureaucracy and stricter

program rulesprogram rules– centralization over decentralizationcentralization over decentralization– flexibility becomes a riskflexibility becomes a risk

– risk for political officialsrisk for political officials– risk for bureaucratic officialsrisk for bureaucratic officials

– alternative service delivery poses riskalternative service delivery poses risk contracts, partnershipscontracts, partnerships

– risk-taking is strongly discouragedrisk-taking is strongly discouraged– process accountability favoured over results-based accountabilityprocess accountability favoured over results-based accountability

““In the private sector, it does not matter much if you In the private sector, it does not matter much if you get it wrong 30 percent of the time so long as you get it wrong 30 percent of the time so long as you can turn a profit at the end of the year and the can turn a profit at the end of the year and the bottom line remains healthy. In the public sector it bottom line remains healthy. In the public sector it does not matter much if you get it right 95 percent does not matter much if you get it right 95 percent of the time because the focus will be on the 5 of the time because the focus will be on the 5 percent of the time you get it wrong.”percent of the time you get it wrong.”

Donald Savoie,Donald Savoie,

Governing from the Centre Governing from the Centre (1999:54)(1999:54)

The New Public ManagementThe New Public ManagementNew PublicManagement









The NPM and the Gomery The NPM and the Gomery RecommendationsRecommendations

The NPM and the Gomery The NPM and the Gomery RecommendationsRecommendationsno need for new central controls no need for new central controls

– ““...more red tape and more regulations than ...more red tape and more regulations than exist at present should not be recommended.”exist at present should not be recommended.”

– re: new internal audit approach and re: new internal audit approach and establishment of CFOs in departmentsestablishment of CFOs in departments

““...they could also add more red tape to government ...they could also add more red tape to government and have but limited impact on the political and and have but limited impact on the political and adminstrative culture.” (26)adminstrative culture.” (26)

The NPM and the Gomery The NPM and the Gomery RecommendationsRecommendations no need for new central controls no need for new central controls greater accountability for existing rulesgreater accountability for existing rules

– ““Managers must continue to have the resonsibility for Managers must continue to have the resonsibility for managing, but they should be more accountable for the managing, but they should be more accountable for the use of their power.” (10)use of their power.” (10)

– ““They must know that they will be held accountable for They must know that they will be held accountable for any deficiency in their stewardship of the public purse.” any deficiency in their stewardship of the public purse.” (11)(11)

– ““The knowledge that one’s errors and misdeeds will be The knowledge that one’s errors and misdeeds will be found out and exposed is a powerful encouragement to found out and exposed is a powerful encouragement to better performance and behaviour.” (117)better performance and behaviour.” (117)

The NPM and the Gomery The NPM and the Gomery RecommendationsRecommendationsno need for new central controls no need for new central controls mechanisms for greater accountability for mechanisms for greater accountability for

existing rulesexisting rules


existing rulesexisting rules– strengthen the Public Accounts Committeestrengthen the Public Accounts Committee


existing rulesexisting rules– strengthen the Public Accounts Committeestrengthen the Public Accounts Committee

make DMs directly accountable to PAC for make DMs directly accountable to PAC for managementmanagement

The NPM and the Gomery The NPM and the Gomery RecommendationsRecommendationsno need for new central controls no need for new central controls greater accountability for existing rulesgreater accountability for existing rules

The NPM and the Gomery The NPM and the Gomery RecommendationsRecommendationsno need for new central controls no need for new central controls greater accountability for existing rulesgreater accountability for existing rulesculture changeculture change

The NPM and the Gomery The NPM and the Gomery RecommendationsRecommendations

““...a change in administrative culture is needed to ensure ...a change in administrative culture is needed to ensure that management in the Government of Canada reaches that management in the Government of Canada reaches acceptable standards. [...] For the culture of the public acceptable standards. [...] For the culture of the public service to change so that regularity, propriety, and good service to change so that regularity, propriety, and good management in general are given a higher priority, the management in general are given a higher priority, the public service, and particularly those who are its public service, and particularly those who are its administrative heads, must give management skills a administrative heads, must give management skills a higher priority. [...] The solution remains...to persuade the higher priority. [...] The solution remains...to persuade the managers to focus on good management.”managers to focus on good management.”

Gomery Report, Gomery Report, RecommendationsRecommendations, , 106-7.106-7.

The NPM and the Gomery The NPM and the Gomery RecommendationsRecommendationsno need for new central controls no need for new central controls greater accountability for existing rulesgreater accountability for existing rulesculture changeculture change

– new code of ethicsnew code of ethics

An External Culture Change?An External Culture Change?

valuing the virtues of bureaucracyvaluing the virtues of bureaucracy– need to temper public expectations regarding bureaucratic performanceneed to temper public expectations regarding bureaucratic performance– impartiality/accountabilityimpartiality/accountability

can be misconstrued as red tape and inefficiencycan be misconstrued as red tape and inefficiency– the vicious cycle of bureaucratic distrustthe vicious cycle of bureaucratic distrust

the need for reformthe need for reform– need to temper public expectations about accountability and raise public need to temper public expectations about accountability and raise public

tolerance of risktolerance of risk Where to start?Where to start?

– ““Big answers to management constraints in government departments will Big answers to management constraints in government departments will not be possible until Parliament and the control lobby first change their not be possible until Parliament and the control lobby first change their ways.”ways.”

Donald Donald Savoie, 1999Savoie, 1999

Documents

The New Public Management, the Sponsorship Scandal & the Gomery Inquiry