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Evaluation of the Batho Pele Principle of Value - Welcome To PMG

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					PRESENTATION TO THE PORTFOLIO
  COMMITTEE ON PUBLIC SERVICE
     AND ADMINISTRATION
      Evaluation of the Batho Pele
   Principle of Value for Money in the
              Public Service
               25 June 2008
 OVERVIEW OF PRESENTATION

 BACKGROUND
 AIM AND OBJECTIVES OF THE STUDY
 CONCEPTUALIZATION OF VALUE FOR
  MONEY
 KEY FINDINGS
 CONCLUSION
 RECOMMENDATIONS



                                    2
                  BACKGROUND
 Section 195 (1)(b) of the Constitution states that public
  administration must be governed by democratic values and
  principles. One of these principles asserts that efficient, economic
  and effective use of public resources must be promoted.
 The Batho Pele White Paper on Transforming Public Service
  Delivery (1997) defines Value for Money as providing public services
  economically and efficiently.
 Section 196 of the Constitution mandates the Public Service
  Commission (PSC) to promote the constitutional values set out in
  Section 195 and to propose measures to ensure effective and
  efficient performance in the Public Service.
 Inclusion of the Implementation of and Compliance with the Batho
  Pele Principle of Value for Money in the PSC work plan.


                                                                  3
AIM AND OBJECTIVES OF THE STUDY
 The broad aim of the study was to establish the status of understan-
  ding the Batho Pele Principle of Value for Money by departments.

 The specific objectives of the study were to:
   • assess how the principle of Value for Money is understood in the
     Public Service;
   • evaluate the performance of departments in implementing
     approaches intended to improve Value for Money of government
     services and products as required by the White Paper; and
   • formulate recommendations about how the principle of Value for
     Money could be better implemented in national and provincial
     departments to enhance Public Service delivery.


                                                                   4
     CONCEPTUALIZATION OF
       VALUE FOR MONEY
The concept of Value for Money comprises three elements:
 •   Economy: Explores whether specific inputs are acquired at the
     lowest cost and at the right time.
 •   Efficiency: This refers to how productively inputs are translated
     into outputs. It further means that there should be maximum
     output with little cost.
 •   Effectiveness: The extent to which outputs achieve the desired
     outcomes.




                                                                 5
    CONCEPTUALIZATION OF
    VALUE FOR MONEY CONT
• Value for Money is not only about cutting costs, it is also
  about careful spending by departments while at the
  same time ensuring that effective service delivery is not
  compromised.
• There are ways of ensuring Value for Money which
  include elimination of wasteful expenditure, proper
  management of time when rendering public services and
  simplification of procedures to be followed to access
  certain services (for example completion of government
  forms).


                                                        6
     CONCEPTUALIZATION OF
     VALUE FOR MONEY CONT
Seven key aspects of public service delivery that
departments need to target to ensure Value for Money:
•   Plan carefully prior to implementation
•   Strengthen project management
•   Reduce complexity and bureaucracy
•   Improve public service productivity
•   Be more commercially astute
•   Tackle fraud
•   Better and more timely implementation of policy and
    programmes


                                                   7
                   KEY FINDINGS
 The Public Service still faces significant challenges in
  understanding and implementing Value for Money.
  These challenges include:
   • Value for Money and its elements are not a common part of the
     Public Service discourse.
   • human resource constraints and shortages.
   • Reward systems within departments are not creating the
     necessary sanctions on poor performers.
   • Reporting Systems do not always produce sufficient
     information.




                                                                 8
              KEY FINDINGS CONT
 There is no common understanding of Value for Money.
 Working definition developed for purposes of this study.
 Value for Money in the Public Service is maximizing value as
  perceived by the citizen and optimally balancing efficiency,
  effectiveness, and economy within the constraints of public
  expenditure management.
 In departments where there are generic norms and standards, a
  more concrete set of descriptions was offered.
 There are inadequate systems and processes to promote and realize
  Value for Money.
 Most officials did not have an awareness of any specific efficiency
  indicators, and the understanding of measuring efficiency in general
  appeared limited.
 Most participating departments rated their performance on Value for
  Money as being average to good.

                                                                    9
          RECOMMENDATIONS

 An appropriate and operational definition of Value for
  Money must be institutionalized in departments.

 An effective monitoring and evaluation system should
  be developed to enable the continual assessment of
  Value for Money.

 Substantial investments should be made in reporting
  systems.



                                                           10
                 CONCLUSION

 There is no common understanding of Value for Money
  principle in the Public Service.
 Value for Money is interpreted differently by
  Departments in the Public Service.

 Value for Money is often derived from vision and
  mission statements.




                                                     11
THANK YOU

				
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