1993 Report of the Auditor General of Canada

Assistant Auditor General: Robert R. Lalonde
Responsible Auditor: John Holmes

Main Points

6.1 In December 1989, the government announced a public service "renewal" initiative known as Public Service 2000 (PS 2000). It aims to streamline internal administrative regimes and to bring about a change in organizational culture to better serve Canadians. Our study was carried out to provide Parliament with information about the progress of this major initiative, and its relevance and significance in the current context. We also examined PS 2000 in light of reforms in "selected jurisdictions" - Australia, New Zealand, and the United Kingdom.

6.2 Three of the most important common factors underlying reforms in Canada and the selected jurisdictions are:

• changing economic circumstances;
• increasing and shifting public expectations of government; and
• the need to modernize public service management.

The reforms in these countries have much in common; for example, an increased focus on results and accountability.

6.3 PS 2000 has made important progress, particularly in terms of legislative and systemic change. However, we detected serious concerns related, in particular, to how it has been implemented, and noted an atmosphere of scepticism and cynicism surrounding the initiative.

6.4 Several insights have emerged from our study that may have important implications for current and future Canadian public service reforms:

• to be successful, public service reform initiatives need to be integrated with government's broader policy and budgetary agenda;
• a more strategic approach is required; reforms must proceed from a vision developed through a realistic re-examination and determination of what is affordable, and of the future role of the public service;
• promoting value for money and performance requires a sharper focus on the outputs and outcomes of public programs and their costs; delegation of authority must be accompanied by a proportional enhancement of accountability;
• the restructuring initiative announced in the summer of 1993 adds urgency to the need to follow through on the principles of renewal; and
• sustaining renewal must be a priority; political leadership and support - actions that demonstrate commitment - are critical to successful reform.

Introduction

6.5 In December 1989, the government announced a process of reform and renewal of the federal public service. This initiative, known as Public Service 2000 ("PS 2000"), was described by the Prime Minister as "the policy of the Government of Canada concerning the measures necessary to safeguard and promote the efficiency and professionalism of the Public Service in order that it may serve Canadians effectively into the 21st century."

6.6 In announcing PS 2000, the Prime Minister stated its purpose as:

"to foster and encourage a Public Service that:

• is . . . imbued with a mission of service to the public;
• recognizes its employees as assets to be valued and developed; and
• places as much authority as possible in the hands of front-line employees and managers. . ."

He further stated:

• ". . . the government's employment and personnel management regime will be made less complicated and burdensome for managers and employees alike;
• central administrative controls will be reduced so as to give deputy ministers greater freedom to manage their departments and clearer accountability for results;
• the roles of central agencies and of systems of personnel and administrative control throughout the government will be clarified and simplified; and
• innovative ways to encourage efficiency and improve program delivery will be developed."

6.7 Earlier that year, our annual Report had called for reforms pertaining to how public servants are managed:

"For the federal public service to be able to meet the challenges that the future holds, there is a need for reform of the legislative and administrative structure that governs people. There is a need to bring a creative new outlook to the management of Canada's public servants. . . What is required is a simplifying of the institutional framework; and a streamlining of the ways human resources are managed. . . If the government is serious about achieving more productive management, the time has come to act."

6.8 Because PS 2000 appeared to be based on principles that we have promoted, and to respond to a number of our preoccupations, and because it represented a significant opportunity to bring about much needed change, the Office supported the initiative from the outset.

Purpose and Scope of the Study

6.9 This study was carried out to provide Parliament with information about the progress of PS 2000 - a major government initiative - and about its relevance and significance in the context of current and emerging issues and in the light of reforms in Australia, New Zealand and the United Kingdom ("selected jurisdictions").

6.10 These jurisdictions were chosen because each has undertaken significant reforms and has a system of government similar in important respects to our own. Exhibits 6.1 to 6.4, appended to this chapter, provide synopses of key events and reforms in Canada and each of the selected jurisdictions. (see Exhibits 6.1, 6.2, 6.3, 6.4 )

6.11 On 25 June 1993, the government announced a number of changes to the machinery of government, including the reorganization, restructuring and streamlining of departments and agencies (the "restructuring initiative"). Although our study was nearing completion when this initiative was announced, the views we express in this Report take account of the fact that it was under way.

6.12 Though some of the similarities and differences in the public service management regimes of Canada and the selected jurisdictions are identified in this Report, we made no attempt to assess the relative quality of those regimes. Furthermore, nothing in this Report should be construed as indicating or implying a comparison of the performance of the respective public services.

6.13 In carrying out the study, we undertook an extensive review of available literature, including official documents. In addition, our work benefited from:

• the views of current and former senior officials and others familiar with the reforms in the selected jurisdictions - about 100 people in total - obtained in most cases through interviews;
• the perceptions of about 400 Canadian senior officials, past and present, primarily obtained through focus group discussions conducted during 1993 by the Canadian Centre for Management Development and the Treasury Board Secretariat; and
• the views of 16 current and former deputy ministers, obtained through personal interviews conducted, with one exception, before the announcement of the restructuring initiative.

6.14 In this chapter, the "public service" refers to those organizations - normally departments or their equivalents - that are under the direct authority of ministers, to whom they provide support in carrying out their responsibilities; "public sector" includes the public service and other organizations, such as agencies, tribunals or government-owned corporations, which operate more independently of ministers.

Factors Underlying Reform and Their Impact

6.15 A number of common and interrelated factors have influenced reform in Canada and the selected jurisdictions. But there are also pertinent considerations particular to one or another of the countries. For example:

• Canada and Australia are federal countries, while the United Kingdom and New Zealand are unitary states; thus, some activities of the national governments in the latter two countries - notably related to services provided - are dealt with by Canadian provincial or Australian state governments.
• While all four countries have "Westminster" parliamentary systems, differences among them have an impact on the ease with which reforms can be brought about and therefore on the nature of reforms; for example, New Zealand has a legislature with a single chamber, whereas Australia's Parliament comprises a House of Representatives as well as an elected Senate.
• The general climate within which change is being made is also pertinent - for example, the extent to which the public service is positively or negatively viewed by the government of the day and the community at large - as are other considerations, such as the labour relations regime and environment.

6.16 Three of the most important common factors underlying reform are:

• changing economic circumstances;
• increasing and shifting public expectations of government; and
• the need to modernize public service management.

Changing Economic Circumstances

6.17 Canada, New Zealand, Australia and the United Kingdom are four of the 24 members of the Organization for Economic Co-operation and Development ("OECD"). That group of countries, which also includes Japan, the United States and a number of European nations, experienced unprecedented economic growth during the 1960s. However, the 1970s saw the emergence of tensions in the economic environment - the collapse of the fixed exchange rate system, the "oil shock" of 1973, and so on. This gradually led to weakened economic performance among OECD countries and a slowing in the growth of government revenues. But government expenditures generally continued to rise. Budget deficits thus have become a common and persistent feature in many countries since the 1970s.

6.18 Globalization of the economy and increasing competitiveness among nations have added significant pressure for structural adjustment in many economies. The current, prolonged worldwide recession has worsened the fiscal situation. In the face of these economic pressures, governments have begun to examine their role and policies more closely, in line with the view expressed in a 1987 OECD report that

". . . it is only natural that the balance between the public and private sector, and indeed the interplay of public action and private initiative, be adapted to changing circumstances."

In Canada, fiscal restraint was just one of several factors that shaped PS 2000 and the June 1993 restructuring initiative

6.19 By the late 1980s, the federal public service had experienced a decade of cost-cutting measures as part of the fiscal restraint initiatives of government. The cumulative effect of such measures had highlighted concerns about the burden, inflexibility and cost of internal management systems, such as those for classification and staffing.

6.20 It was clear that fiscal restraint would continue. There was, however, growing concern that person-year and cost reductions were adversely affecting the provision of service to the public. Several departments had embarked on their own initiatives to improve management practices. External pressures for change were increasing. It was apparent that fundamental, service-wide change of internal administrative systems and, in particular, of human resource management practices, was required. PS 2000 was the government's response.

6.21 The first two phases of the June 1993 restructuring initiative comprise restructuring and streamlining of departments, and rationalization of service delivery. Senior officials advised us that these changes were aimed primarily at "adapting our organizations to better meet the policy priorities of the 1990s." The third phase is to support eventual decisions, in the context of the policy and budgetary agenda for 1994 and beyond, on the lines of business the federal government ought to be in - or ought not to be in - during the 1990s and in the twenty-first century. This third phase reflects an increased concern about persistent deficits and growing debt, and the affordability of government services.

In New Zealand and in the United Kingdom, public service reforms were part of broad changes, notably due to the state of the economy

6.22 In 1984, New Zealand faced an economic situation that had reached crisis proportions, and radical measures had to be adopted to deal with it. What was called into question was the role of government and the nature and extent of services it provided. Economic and social policies long taken for granted changed. The state apparatus became smaller and less controlling. Several large commercial operations such as banks and insurance companies, part of the public service at the time, were made into state corporations and then privatized; economic activity was less closely regulated, and tariff barriers were lowered. Subsidization of the private sector by the public sector was virtually eliminated. Over the 1984 to 1992 period, the public service was reduced by two-thirds in terms of the number of employees, and major changes were made in its structure and management.

6.23 In the United Kingdom, a major currency crisis in 1976 led to the intervention of the International Monetary Fund. There was a loss of confidence in the government's management of the economy. When a new government was elected in 1979, it sought to reduce the cost of government and lower the burden of taxation. Under the strong leadership of the Prime Minister, the traditional ways of the civil service were called into question, in favour of a more businesslike approach. Overall, the government sought to minimize the role of the public sector in the economy through privatization and other means.

6.24 Civil service reform in the United Kingdom began with a program to identify savings and improve efficiency: a series of reviews - scrutinies - under the direction of the Prime Minister's Efficiency Unit. These reviews demonstrated the need for better financial management and led to a major initiative to develop the cost and performance information necessary for improved productivity. As financial reforms proceeded, it became clear that the organizational culture in the civil service presented serious obstacles to further progress; consequently, extensive structural change - creation of the Next Steps Agencies - was undertaken (see paragraph 6.46).

In Australia, economic pressures were an influence whose significance grew as management reforms unfolded during the 1980s

6.25 We were told that in Australia public service reform tended initially to be seen as a discrete program, focussing primarily on the efficiency and effectiveness of resource use, and not tightly linked to economic problems. However, in July 1993, the Australian government released an evaluation of reforms over the last decade, which noted that, in official statements concerning objectives "from 1984 onwards, there was an increased emphasis on the constraints on Public Service resources." This was due in large measure to the sharp decline in 1985 in Australia's terms of trade - the prices paid for its commodities in international markets.

Increasing and Shifting Public Expectations of Government

6.26 In spite of a decline in the economic circumstances of many developed nations and the escalating costs of existing government programs, there is demand for more and better public services - such as programs to protect the environment and to improve the social safety net.

6.27 In addition, there are changing societal demands concerning the role of the public sector. One such demand, pertinent to Canada, is the call for strengthened public and private sector co-operation to enhance international competitiveness. Similarly, there are demands from a wide array of lobby groups and other stakeholders for a more direct role in the development of government policies and in the administration of government programs.

6.28 Perceptions that past policies have been flawed, and that governments are having difficulty resolving current social and economic problems, have contributed to the loss of confidence in government institutions and political leaders now evident in many countries.

6.29 In line with an increased focus on service quality in the private sector, there appears to be a public expectation for service of better quality from government. This expectation relates to the responsiveness of government to the needs of particular clients, as well as to the accessibility of service and to the timeliness, efficiency and courtesy with which service is delivered.

6.30 Other dimensions of changing public expectations are calls for more open and transparent government and for clearer accountability for decisions. What is sought includes increased public disclosure of information and of the reasons for government decisions. As well, there are calls for greater clarity concerning the nature and source of policy advice given to political leaders.

One effect of changing expectations of government has been an increased emphasis on service to the public

6.31 In Canada, PS 2000 and the recent restructuring initiative each have a service dimension. The deputy ministers and public service executives we interviewed generally agreed that the objectives of PS 2000 evolved over time, and that the principal focus shifted from human resource management to service to the public. One deputy minister expressed it this way:

"The initial major focus was on human resource management but this was found to be too inward looking, so service to the public became a second and ultimately the lead theme."

6.32 The White Paper on public service renewal, released one year after the launching of PS 2000, confirms the validity of these perceptions. It not only recognizes the public's increasing insistence on openness, involvement and consultation, it states:

" Improved service to Canada and Canadians is the central theme of Public Service 2000. This means improving service to Ministers, the general public and individual Canadians" (emphasis added).

6.33 The June 1993 restructuring initiative also involves the development of plans for more cost-effective program delivery, making use of innovative technology, joint program delivery by two or more departments or with other levels of government, contracting out or privatization. In addition, it includes plans for possible consolidation of points of service delivery and streamlining of "product lines".

6.34 The United Kingdom's Citizen's Charter initiative is aimed at improving service to the public. This 1991 reform is aimed at responding better to the needs and wishes of citizens. Individual charters are based on key service principles, including standards, openness, choice, consultation, courtesy and redress. Information on service performance is regularly made public, and Charter Mark awards recognize exemplary provision of service. The Prime Minister has indicated that the Citizen's Charter will be at the centre of the government's decision making throughout the 1990s.

6.35 While neither New Zealand nor Australia have had comparable service to the public initiatives, in both of these countries reforms have involved an increased focus on results and, thereby, on service. In New Zealand, because of the severity of the economic crisis, the focus initially was on the affordability of the services provided. In Australia, service quality and client rights received considerable attention in the 1970s and service is once again recognized as an area requiring increased government-wide emphasis.

The Need to Modernize Public Service Management

6.36 A third prominent underlying pressure for public service reform has been the need to modernize public service management. Public bureaucracies in Western democracies have been governed in accordance with long-established traditions. While new organizations and management systems have often been introduced, attitudes and practices have not changed in fundamental ways over the years.

6.37 The need for change in the way public services are organized and managed arose, in part, from the rapid technological advances that led to the advent of the information age. Computer and other technologies have contributed to many improvements, and make possible many more. In Canada, technology is expected to change service delivery substantially in some of the departments created by the June 1993 restructuring initiative. However, as of completion of our study, none of the four jurisdictions had undertaken, as a major element of its public service reforms, a comprehensive examination of the overall impact of technology.

6.38 The impact of changing lifestyles and higher education levels on workforce habits and expectations also has played a role in reforms. In addition, the private sector's widespread downsizing, de-layering, restructuring and streamlining of recent years have made more apparent the need for the public service to keep pace with new management approaches. Combined with fiscal restraint, this has spurred public service interest in the adoption of more businesslike and more affordable systems and practices.

PS 2000 proposes a new management approach - a new management philosophy

6.39 PS 2000 proposes that increased emphasis be placed on openness and consultation, and on:

• results (rather than process);
• flexibility (rather than conformity);
• judgment (rather than rules);
• innovation (rather than risk aversion);
• accountability (rather than detailed central controls); and
• public servants as assets to be developed (rather than as resources to be used).

There were inadequacies in the management of people; there was a need for "renewal"

6.40 Prior to PS 2000 there had been many unsuccessful attempts at reforming the personnel management regime installed in 1967. The 1974 study "Employer-Employee Relations in the Public Service of Canada" (the Finkelman report) and the 1979 Report of the Special Committee on the Review of Personnel Management and the Merit Principle (the D'Avignon Committee) were among the most prominent.

6.41 The Increased Ministerial Authority and Accountability initiative (IMAA), launched in 1986 and aimed at providing increased authority and flexibility to ministers and senior executives through a reduction in Treasury Board controls, was having limited effect. By 1989, only six of about thirty departments had entered into IMAA agreements with Treasury Board. One reason was that departments sought changes in personnel matters that Treasury Board was either unwilling or unable to grant - in part because the authority rested with the Public Service Commission.

6.42 The results of inaction were increasingly being felt. Morale among the senior managerial ranks of the public service was perceived as being low. A 1986 attitudinal survey (Zussman and Jabes) of executives and managers in the federal public service and in the private sector had revealed that:

• private sector managers had a more positive view than their public service counterparts of the management practices of their organizations; and
• within the public service, "as one moves down the bureaucratic hierarchy, managers are less satisfied and less positive about managerial practices in their organization." No similar effect was noted in the private sector.

6.43 The malaise reflected in these results was consistent with information obtained by this Office during the 1987 audit of the Management Category (now the Executive Group). Another survey, sponsored by the government and conducted in 1988, demonstrated that a deterioration in the attitudes of public service managers had occurred.

6.44 Given these circumstances, it is not surprising that seven of the ten task forces set up at the time of the announcement of PS 2000 dealt with human resource management issues and, except for the Service to the Public Task Force, all of them dealt with internal administrative matters.

6.45 Neither is it surprising that, in addition to "squeezing out" waste and inefficiency and emphasizing service to the public, PS 2000 seeks to simplify personnel, financial and other administrative systems, notably by eliminating unnecessary central controls.

The separation of operational and policy functions figures among the reforms of the last decade

6.46 New Zealand and, to a great extent, the United Kingdom have separated operational and service delivery organizations from the policy function. In New Zealand, the primary rationale for separate departments was the desire to avoid "capture" of policy advice and funding by the large delivery agencies. There had been a serious problem with policy advice tending to serve specific interests rather than the broader public interest. In the United Kingdom, agencies were created, but within the departmental framework. The rationale was to overcome the problems associated with the size and diversity of the "government machine" - seen as too big to be managed well as one unit. These Next Step agencies are headed by a chief executive, often appointed from outside the civil service. Agencies are expected to operate in a businesslike manner with a framework document reflecting the objectives of the organization, and with significant delegation of authority. Exhibit 6.5 briefly describes the Next Steps Initiative.

6.47 Canada has also created some new organizational forms designed to improve service delivery and cost effectiveness. One example is the establishment of special operating agencies in several departments since 1989. In principle, these agencies - some of them offering common services to other departments - are to be granted necessary flexibility and authority and, in return, are expected to produce specified results through the application of private sector management techniques, including self-financing.

6.48 Commercialization is a feature of modernization. In Australia and, to a certain extent, in Canada, common services within government have been placed on a commercial footing and opened to competition from the private sector, with the added dimension in Australia of budgetary funding of the user rather than the provider of the service. The Australian evaluation study noted cost savings and improved management practices as a result of these reforms.

Public Service Reform in the Four Countries: Common Themes

6.49 Partly because Canada and the selected jurisdictions have faced a similar set of broad issues, their reform initiatives have much in common.

A Focus on Results and Accountability

An increased focus on results, including the costs of attaining them and the related accountability, has been a central theme of the reforms in the four countries

6.50 PS 2000 aims to increase the emphasis on results. To that end, it proposes a new management philosophy - a change in organizational culture. There is to be an increased focus on consultation with clients and on service to the public. Specific measures proposed include the requirement for departments and agencies to develop mission statements and to establish clear standards of service, with deputy ministers to be accountable both for the reasonableness of those standards and for the quality of service provided. In addition, performance assessment practices for deputy ministers and other managers are to be improved.

6.51 Significant in this respect is the April 1993 system-wide introduction of the concept of operating budgets - which merge salary, operating and minor capital funds. If costs were known, operating budgets could facilitate more cost-effective decision making than the person-year controls and budgetary allocation mechanisms previously in place.

6.52 In Australia, the move toward a focus on outcomes, plus the cost of achieving them, has led to a major overhaul of the budgetary system. New approaches to budgeting and related financial measures have emphasized objectives, performance information and evaluation. The Australian government's evaluation of its reforms found "improved organizational focus, more structured thinking . . . (and) a greater focus on results" arising out of these reforms. In addition, the evaluation noted that "there is a strong view from both staff and agencies that the reforms have had a positive impact on accountability."

6.53 New Zealand has developed a new model for managing by results. Under this model, defining the desired outputs - the goods and services that government departments are expected to produce - allows for much greater precision in measuring results. Accountability of chief executives to ministers has been redefined. Chief executives, hired on contract, have replaced tenured permanent heads of departments as a measure to increase responsiveness to ministers. They have been given the responsibilities of the employer of departmental staff and a wide range of other authorities, and are responsible for producing outputs for which they are held accountable through annual performance agreements with ministers. Ministers, in turn, are responsible for outcomes, the achievement of broad policy objectives. Exhibit 6.6 describes this model.

6.54 In the United Kingdom there is also an increased results orientation. Since 1982, the United Kingdom has undertaken financial initiatives that a 1988 government report found had ". . . (begun) to shift the focus of attention from process towards results." In addition, the Next Steps initiative emphasized setting targets for performance - largely in the area of service provision - and meeting those targets.

6.55 An illustration of evolving accountability relationships in the United Kingdom is the role of chief executives of Next Steps agencies. Chief executives have performance agreements with their ministers; those drawn from outside the civil service are hired on a contractual basis. The Efficiency Unit reported in 1991 that "Chief Executives are acutely aware of their visible personal responsibility and accountability for the success of their Agencies."

Delegation and Empowerment

Delegation and empowerment are necessary to attain results

6.56 An important theme of PS 2000 is the increased delegation of authority from central agencies to departments and, within departments, to the lowest levels reasonable. This naturally flows from the focus on results and on service to the public. The push for greater delegation recognizes that managers and front-line employees - most of whom are located in regions - require greater flexibility if they are to provide better service.

6.57 Consequently, to the maximum extent possible, central rules are to be eliminated and to be replaced by guidelines. In the area of common services, wherever possible, services that have been mandatory are being made optional in order to improve cost-effectiveness. Managers are to receive assistance to develop the necessary knowledge and skills to make the best use of their increased authority.

6.58 New Zealand has gone furthest in devolving authority. It has introduced legislative changes that make departmental chief executives largely autonomous and responsible for resource management, within budgetary limits. As a consequence, there has been a move away from a "single" public service, and the personnel central agency has undergone a major restructuring and downsizing.

6.59 In the United Kingdom and Australia, a number of authorities in areas such as financial arrangements, pay and staffing have been delegated to departments and agencies. In the United Kingdom, an increasing number of Next Steps agencies operate as "trading funds"; this allows them to manage their finances more like a commercial company. For the other agencies and departments, the central agencies have, since 1989, developed pay and management "flexibilities" - lists of available delegated authorities - that these entities are encouraged to use. For example, departments and agencies may, with Treasury approval, adopt their own job classification and pay structures. Furthermore, legislation aimed at providing a framework for the delegation of further authorities was passed in 1992. In Australia, the evaluation found that "a substantial amount of devolution of financial management responsibilities to line agencies had occurred." Also, collective bargaining is now being moved to departments under what is known as "enterprise bargaining".

6.60 In these two countries, as in New Zealand, the role and size of central agencies responsible for personnel have been modified substantially. For example, in Australia, the Public Service Commission is much smaller than its predecessor, with most of the operational functions either transferred to other central departments or to departmental management, or discontinued. In the United Kingdom, the Treasury is responsible for matters of personnel policy, such as terms and conditions of employment. The Civil Service Commission, traditionally responsible for recruitment, has seen its role reduced; today it is responsible for overseeing the selection process for certain levels, most notably for "fast stream" graduates, and has been transformed into an Office of Civil Service Commissioners. As such, it remains responsible for policies to protect the merit system, but has little staff support; most operational functions have been transferred to departments and agencies.

6.61 In Canada, some modification to the statutory role of central agencies has been made. The Public Service Reform Act , enacted in December 1992, made some noteworthy changes. For example, the role of the Clerk of the Privy Council has been clarified, designating that office-holder as Head of the Public Service. Also, certain powers of the Public Service Commission, such as the power to investigate complaints from employees and to take corrective measures, have been strengthened. The Act also transferred responsibility for the "deployment" of staff from the Commission to departments, within a policy framework established by Treasury Board. However, the basic division of responsibilities in law between the Treasury Board, as the employer, and the Commission, as the agency responsible for the application of the merit principle in staffing, has not been otherwise changed.

Streamlining and Simplifying Administrative Systems

Streamlining administrative systems encourages a focus on service

6.62 Faced with the difficulty of maintaining service in the context of ongoing fiscal restraint, PS 2000 aims to bring about "wide-ranging changes" in the personnel regime and other administrative functions to reduce costs and administrative burden, and to improve program delivery. The White Paper estimated, for example, that the costs of personnel management, plus the costs of resource management and administrative and common services, were in the order of $2 billion annually.

6.63 The White Paper called for changes in the legislative framework governing the management of people. The Public Service Reform Act contains measures for the simplification of the classification and job evaluation system. It also modifies labour relations mechanisms, notably those related to termination of employment and associated redress and to determination of exclusions from bargaining units.

6.64 In the three other jurisdictions studied, administrative systems and procedures have also been simplified, and rulebooks have been thinned out. For example, New Zealand has made voluminous financial management instructions much briefer and introduced a series of related guideline booklets to aid managers. The service-wide personnel manual has been abolished, and departments' personnel systems and procedures for hiring, classifying, promoting and releasing employees have also generally been simplified.

A More Businesslike Approach to the Management of Resources

Resource constraints are leading to a more businesslike approach

6.65 A number of the reforms already discussed - for example, operating budgets and simplified administrative systems and processes - reflect a shift toward more businesslike methods. So do amendments made to the Surplus Crown Assets Act aimed at improving materiel management. Another significant change, resulting from passage of the Public Service Reform Act , is the exclusive statutory authority provided to deputy heads to deploy employees in their departments, under certain conditions. PS 2000 also includes proposals relating to productivity gain sharing and other performance rewards for managers and staff. However, these measures have not been implemented due to union opposition or government wage restraints.

6.66 Identifying clients, marketing services and optimizing revenues are among the more businesslike practices increasingly followed in the four countries studied. In the selected jurisdictions, units within departments - or the departments themselves, in New Zealand - increasingly operate according to business plans, revenue targets, marketing strategies and feedback from client surveys. In some cases, as in Canada, these entities may seek to increase and then retain revenues. They may also be responsible for meeting annual financial performance targets, including revenue targets and a return on public investment. The widespread application of user fees has been a tool for improving financial performance.

6.67 Both the United Kingdom and Australia have had a system of "running costs" budgets for a number of years. Running-costs budgets are similar to Canada's operating budgets. In Australia, there is also a capacity to carry forward from one fiscal year to the next, or to borrow from a future fiscal year, up to six percent of running costs. These provisions exceed the Canadian allowance - for carry overs only - of two percent.

6.68 Accrual accounting is seen as a valuable management tool in New Zealand, Australia and the United Kingdom. The concept of accrual accounting, which is standard practice in the private sector, requires that revenues and expenses be reported in the period in which they occur rather than when the related cash is received or paid. Implicit in this notion is the valuation and depreciation of capital assets and the recognition of liabilities. New Zealand has recently implemented this notion of accrual accounting, as well as an accrual budgeting system, throughout its departments and agencies. The governments of the United Kingdom and Australia have announced plans to progressively implement accrual accounting in departments and agencies.

6.69 Canadian departments and agencies do not operate on a full accrual accounting basis. Expenditures are recorded on an accrual basis, but the full cost of capital assets is charged to expenditure at the time of acquisition or construction. Further, although non-tax revenues are accounted for on an accrual basis, tax revenues are generally recorded in the year in which they are received.

6.70 Canada has been one of the leaders in reporting annual summary-level financial statements in a global and comprehensive manner. However, individual departments and agencies of the Government of Canada do not prepare periodic reports or annual financial statements on a full accrual accounting basis. Consequently, the real cost of carrying out the activities of these departments and agencies is not shown. An exception to this is departmental revolving funds that are accounted for on a full accrual basis.

6.71 Accrual accounting brings with it the ability to account for the real costs of government resource use. Supported by a good cost accounting system, it can provide more complete information about the costs of government activities in departments and agencies - information necessary for better decision making and reporting on the achievement of results. Full accrual accounting could also give public service management a more comprehensive picture of financial operations than the present system; it could help safeguard capital assets by placing them under accounting control and could provide better information to managers facing difficult capital assets maintenance/replacement decisions.

Progress and Problems with the Implementation of Reforms

PS 2000: Where Progress Has Occurred

6.72 An assessment by the Clerk of the Privy Council. The PS 2000 White Paper indicated that the Clerk of the Privy Council ("the Clerk") would be required to report annually to the Prime Minister on:

• the state of the public service; and
• progress in implementing PS 2000 for the first five years.

6.73 The first such report, which reviewed progress during 1991 and discussed the challenges and priorities for 1992, was dated 30 June 1992. It indicated that "in many places we are seeing the first signs of a real transformation in management culture." It summarized progress in the following terms:

"This is not an easy time to reform institutions or to try to renew a spirit of service and excellence in an institution as large as the public service. Yet despite the obstacles, and despite events such as the 1991 public service strike, I am still able to report genuine progress in reform and renewal across a broad front of activity in all parts of government. . . ."

6.74 The Public Service Reform Act includes a provision requiring an annual report from the Clerk on the state of the public service. However, it contains no specific requirement to report on the progress of PS 2000.

6.75 As of 1 October 1993, the second annual report on the state of the public service had not been made public.

Some headway has been made

6.76 An update through this study. We obtained the views of deputy ministers and other senior officials and relied on previous and ongoing work of our Office, together with readily available information, to form our views on the progress of PS 2000.

6.77 PS 2000 was described by the former Clerk as "10 percent legislative change, 20 percent change in systems, and 70 percent change in attitudes and practices . . . ." If progress is judged against these criteria, it is our view that, in spite of significant problems, important progress has been made, particularly in the areas of legislative and systemic change.

6.78 For example, though it took much longer than originally anticipated, the Public Service Reform Act was passed in December 1992. This has permitted changes in the staffing system - notably the introduction of much-needed flexibility in the deployment of staff. In addition, it makes possible the modernization and simplification of the job evaluation and classification system - a key proposal of PS 2000. The latter involves the creation of a new occupational group to cover more than 100,000 public servants. Though this has been under development for more than a year, implementation has been delayed for several reasons, including the impact on the organization of work in departments arising from actual and potential restructuring.

6.79 Another major systemic change proposed under PS 2000 was the switch to operating budgets. As of 1 April 1993, central person-year controls were abolished, and all departments were authorized to implement operating budgets for each program.

6.80 Other positive signs are reflected in the views of senior officials. For example, the Secretary of the Treasury Board reported to the House of Commons Standing Committee on Public Accounts that the process of Shared Management Agendas - agreements between himself and deputy ministers concerning key issues to be addressed - "has been working well and is an essential element of the overall assessment of deputies carried out by the Privy Council Office."

6.81 Deputy ministers and other senior officials acknowledge that PS 2000 has had positive effects, such as:

• increased delegation of authority from Treasury Board;
• a changing attitude about training - which departments are now perceiving more often as an investment; and, perhaps most important,
• a more positive attitude concerning the possibility of actually bringing about change.

6.82 There is also a perception among deputy ministers and executives that progress has occurred within departments, though this is tempered by the view that it has not been uniform. Although the progress is frequently attributed to the personal leadership of senior departmental officials, PS 2000 is accorded credit for giving legitimacy, momentum and support to departmental initiatives.

PS 2000: Problems with Implementation

6.83 There is a widespread view among deputy ministers and other senior officials that reform is necessary. Nevertheless, some of the executives we met wondered whether PS 2000 was "dead", and we detected an atmosphere of scepticism and cynicism surrounding the renewal initiative. These views are largely based on how PS 2000 has been implemented.

There has been a problem of mixed messages from the outset of PS 2000

6.84 PS 2000 was initially designed and communicated to staff as a "management-driven exercise". Yet its philosophy is one of participative management. Executives at all levels believe that this has been widely interpreted as contradictory and tends to confirm the perceptions of employees that the initiative is aimed mainly at making managers' lives easier. The failure to adequately involve and consult some stakeholders, particularly employees and their representatives, is a significant concern of executives. Despite the notable efforts of some departments to involve staff at all levels, executives point to a lack of staff involvement and "ownership" of the initiative as a major implementation failing.

6.85 In addition, inconsistency is perceived between some of the principles of PS 2000 and other initiatives or actions. These include: ongoing downsizing and operating budget cuts; the 1991 budget that helped to precipitate a national public service strike and led to wage restraint legislation; the Al-Mashat affair; and the decision to reduce the number of public service executives by ten percent.

Expectations and communications have been poorly managed

6.86 The Standing Senate Committee on National Finance conducted hearings related to PS 2000 during 1991 and 1992. Several witnesses emphasized that the changes envisaged in PS 2000 would be difficult and time-consuming to implement and argued that "it is important . . . that PS 2000 not generate unrealistic expectations of success."

6.87 Deputies and other senior officials interviewed noted that, in retrospect, there should have been better management of expectations. They pointed out that the initial announcement of PS 2000 raised great hopes for quick change, but that it took a long time before even the goals of the initiative became clear, and that real progress on implementation is taking even longer.

6.88 Officials also note the need for a more effective communication process concerning PS 2000 - the need for more dialogue, rather than more paper. They perceive that there is a lack of knowledge about PS 2000, partially due to the fuzziness of the message, conflicting signals and general mistrust. There is a widespread view that insufficient effort has been paid to communicating the message effectively in departments, and that change too often has failed to filter down from senior levels to lower levels in the organization.

Commitment is not always evident

6.89 Senior officials mention that where there has been commitment to the initiative and its principles, it has translated into results. The departments with deputy ministers of the right temperament and values have made major efforts at reform and have achieved real progress. However, they identify a need for more visible commitment from both the senior-most public servants and from the political level.

6.90 It is suggested that some deputy ministers are either not sympathetic to, or not adept at coping with, some of the ideas associated with PS 2000 and, as a result, little progress has occurred in their departments. Some officials express the view that there do not seem to be any sanctions for departments or senior managers who fail to adhere to PS 2000 principles. There are also perceptions that there seems to be a tolerance for officials in senior positions who conduct themselves in ways inconsistent with the proclaimed principles of reform. As a deputy minister said:

"PS 2000 was not terribly successful as a common or across-the-board exercise. People could not see . . . (some key officials) as `walking the talk'. There were no sanctions for non-performance."

6.91 A number of senior officials also question whether, as a rule, politicians have much interest in the public service, or much sympathy for it as an institution. From their perspective, with a few exceptions, there has been neither interest in nor active support at the political level for the PS 2000 initiative as a whole, in spite of the White Paper and passage of the Public Service Reform Act . It is also suggested that there is no real support for ideas such as empowerment and risk taking.

Progress in the Selected Jurisdictions

6.92 Some of the reforms in the selected jurisdictions have been in place or under way for a decade or more. Canada's PS 2000 was announced in December 1989, and the essence of the initiative - bringing about a change in organizational culture - will take time. This needs to be borne in mind in comparing reform efforts in Canada and the three other countries.

6.93 It is our perception that there are significant differences in how officials in each of the selected jurisdictions and their Canadian counterparts feel about public service reforms. Officials in the other countries seem to be clearer about the goals of their reform initiatives. They are generally positive in their perceptions about the achievement of progress, the coherence of reforms and the consistency of direction. Studies carried out in each jurisdiction lend some support to these perceptions.

6.94 In Australia, the evaluation found that "there is a general view by agencies and staff that the reforms have had a positive impact on agency management and performance." It suggested that:

• "the direction of the reforms has been correct;
• they have been well accepted and have had many positive effects, as well as some costs (especially in implementation); and
• more needs to be done, especially to extend them across the Australian Public Service, and to incorporate them into the culture of the entire administration."

6.95 In New Zealand, a 1991 review was carried out on behalf of a newly elected government, and identified several problems - for example, there was confusion about the roles and responsibilities in facilitating reform - but concluded that the framework of the reforms was perceived as sound. According to ministers, public servants and observers, performance had improved in most key activities.

6.96 Government evaluative studies in the United Kingdom have tended to focus on particular reform initiatives, rather than on the impact of the whole body of reforms. Their findings have been generally positive. For example, a 1991 Efficiency Unit report found that ". . . the Next Steps has generated renewed enthusiasm and increased commitment to improving value for money and quality of service."

Implementation of Public Service Reform in the Selected Jurisdictions

6.97 Given the purpose of our study, we were not able to ascertain directly how well public service reforms were being implemented in the selected jurisdictions. We were nevertheless able to form an overall impression that can help to put into perspective the process of implementation of public service renewal in Canada, and the views of Canadian executives in that regard.

Visible political leadership and commitment is crucial

6.98 Senior officials who had been closely associated with the implementation of reforms in other jurisdictions emphasized that visible political leadership and commitment to reforms is key to their successful implementation. The more significant the planned changes, the more likely they would fail without clear backing from the political leadership. The United Kingdom presents a striking example of prime ministerial spearheading of reform. With respect to both the financial and structural reforms of the 1980s and the more recent Citizen's Charter initiative, prime ministers have demonstrated leadership and determination that created circumstances where change could occur.

Sustained leadership from the "centre" is key

6.99 In the United Kingdom, small groups of senior officials - reporting to the Prime Minister - have worked with top private sector executives to co-ordinate reform initiatives. In New Zealand, a central agency, the Treasury, was instrumental in developing a systematic and coherent approach to reform, and then followed through with strong leadership for implementation.

Public service reforms must be strategically managed

6.100 In the United Kingdom and New Zealand, the reform initiatives appear to have been implemented with greater consistency with their underpinning principles than is perceived to have been the case with PS 2000. The Next Steps initiative is exactly that; it flowed from the Financial Management Initiative, which in turn flowed from the scrutinies undertaken by the Efficiency Unit. In New Zealand, a series of incentives was designed to make the new management model work as intended. For example, a financial incentive, known as the "capital charge", requires departments to take account of the cost of capital in pricing their goods and services. Other incentives include those tied to the contractual, performance-based nature of senior officials' employment.

6.101 Australia has developed a gradual but persistent approach to reform. Since 1987, the involvement of all the players - in central agencies and departments - has been facilitated through a Management Advisory Board (MAB). The Board, chaired by the Secretary of the Prime Minister and Cabinet Department (equivalent to the Clerk of the Privy Council in Canada) is a statutory agency, "advis(ing) the government on significant issues relating to the management of the public service, and (acting as) a forum for the consideration of (such) issues". As of June 1993, the Management Advisory Board's eight other members were the heads of three central agencies and three line departments, plus one union and one private sector representative. A Management Improvement Advisory Committee was set up in 1989 as the Management Advisory Board's operational arm; its role is "to prepare discussion papers and advice on issues referred to it by MAB or which it considers important." The Management Improvement Advisory Committee is composed of senior officials from central agencies and line departments, including regional representatives, and its Chair comes from a line agency. As of June 1993, it had ten members, six of whom were from line departments.

6.102 An example of the consistency with which the principles of reform have been applied in Australia is provided by the central idea of running costs - giving managers "a pot of money" that they are responsible for - and not weakening this concept by arbitrary and unpredicted across-the-board cuts. Although there is a rollback feature, known as the efficiency dividend (1.25 percent), it is known in advance and thus forms part of managers' running-costs budgets. Officials told us that, since its inception in 1987, this running-costs system has been free of across-the-board or directed cuts, aside from the efficiency dividend. Running costs are one component of budget reforms that is seen to be linked to improved efficiency and effectiveness.

6.103 Periodic evaluations. There have been periodic evaluations or reviews in each of the selected jurisdictions. These were carried out at various stages of the reform, either by the government - a newly elected government in the case of New Zealand - or by parliamentary committees. Australia's evaluation stands out as the most comprehensive. We think it is of significant interest, both from a methodological perspective and for its findings.

6.104 The evaluation of the Australian public service reforms: a notable initiative. The evaluation report, entitled "The Australian Public Service Reformed, An Evaluation of a Decade of Management Reform", was released by the Prime Minister of Australia in July 1993, and contains the results of an evaluation of the whole range of their public service reform initiatives since 1983.

6.105 The basis for the evaluation was the need to know whether, and to what extent, reforms were attaining their stated objectives; and then, to propose direction for further reforms in light of this knowledge. The evaluation was based on extensive surveys of staff and clients, submissions, case studies and research reports. For example, some 10,000 public servants, about one out of every 15, were included in the sample for the employee survey; 63 percent responded.

6.106 The evaluation covered six areas of reform: structural; industrial relations; human resource management; financial management and budgeting; commercial; and planning and reporting. Each area was examined in terms of specific initiatives, covering implementation, impact and, finally, an analysis of results.

6.107 A second part of the evaluation examined the relevance of reform objectives to the 1990s and the question of whether or not there were better ways to meet the objectives. Among the topics covered were: service to the public; improving agency and staff performance; and the need for co-ordination of continuous reform from the centre.

What Can Be Learned?

6.108 Several insights have emerged from our study that may have important implications for current and future reforms.

6.109 To be successful, public service reform initiatives need to be integrated with the government's broader policy and budgetary agenda. For example, the typical response to changing economic circumstances has involved measures for both deficit reduction and public management modernization: the former can undermine the latter if not handled carefully but, with care, they can be mutually reinforcing. From that perspective, PS 2000 is clearly perceived as having been undermined by parallel initiatives, such as expenditure reductions.

6.110 Also, although led by governments of different political persuasions, and having significant differences in their political structures and economic environments, public service reforms in Canada and the selected jurisdictions are based on some common themes. These themes, discussed earlier, have not emerged in the reforms of each country from a complex theoretical design, except perhaps in New Zealand, where a new management model is in place. In each case, including New Zealand, a good deal of organizational learning has occurred. There has also been an international learning dimension, with all four jurisdictions aware of changes in the others.

6.111 What appears to be significantly different is the way the countries have used the common themes to reinforce the strategic direction of the reforms, such as the redefinition of the role of government or of the relationship between ministers and public servants. There are also significant differences in the priority or the emphasis given to each theme. For example, although in Australia measures have been taken to improve client services over the last decade, service has only recently been identified as a high-priority service-wide target for the future. In Canada, improving service to the public became a key theme of PS 2000 even though expenditure reduction and downsizing were ongoing.

6.112 In Australia, New Zealand and the United Kingdom, progress has been made by building on experience with successive reform measures. Nonetheless, we formed the opinion that reforms have had a more strategic focus and greater coherence and consistency in the selected jurisdictions than in Canada. We believe that reforms in the Canadian federal public service could benefit from the adoption of a more strategic approach to public management and public service reform.

A more strategic approach to public management and public service reform is needed

6.113 Strategic management involves the positioning of an organization in relation to the challenges and opportunities it faces. From that perspective, one of the most significant challenges faced by Canada is the persistent deficit and the growing debt. There appears to be an emerging consensus that the question of affordability of government services must now be addressed.

6.114 Reforms in the Canadian public service reflect a "ratcheting" approach with respect to the importance placed on the deficit and debt issue. PS 2000 has sought to "squeeze out" inefficiencies, to improve internal systems and practices, and to enhance the focus on service. The June 1993 restructuring initiative aims to further streamline administrative overhead and service delivery and to improve government responsiveness. The plan is to follow this with a re-examination of the affordability of government programs and services to determine future "lines of business."

6.115 The problem with such a "ratcheting" approach is that, even if these successive reforms and other government measures were managed carefully, each new initiative could call into question the validity or appropriateness of the preceding ones, potentially reducing their beneficial effects and obstructing their implementation, if not actually reversing their direction.

6.116 A case in point is the Work Force Adjustment Directive. Signed in 1991, it guarantees at least one reasonable job offer to public servants declared surplus. Some executives question how this could have been reconciled with departmental budget cuts and downsizing. In April 1993, less than two years later, the government indicated that it would seek basic changes to the Directive. Some union leaders have made it clear that they intend to oppose changes that would eliminate the guarantee of a job offer.

6.117 There are other examples of apparent conflicts that suggest the need to take stock - to reconsider actions planned or under way in the light of new and emerging realities.

6.118 Australia's experience with its 1987 restructuring changes - similar in nature, scope and purpose to those announced in Canada in June 1993 - is relevant. In Australia, the number of departments was reduced from 28 to 18.

6.119 The Australian evaluation of reforms found that restructuring had generated greater organizational stability and had improved both program delivery and the effectiveness of the policy and decision-making process. At the same time, the evaluation concluded that the extent of the disruptive effects had been underestimated. It pointed out that attention at the time of the restructuring had been focussed on the desired state to be achieved, rather than on the strategies required to assist people across the public service to put the changes into effect. As a result, "many agencies and staff believed that the machinery changes (had) diverted effort from management improvement rather than achieving the reverse."

6.120 The Australian experience points to the need to ensure that public service renewal is not undermined by the June 1993 restructuring initiative or other measures. PS 2000 and the restructuring initiative have objectives in common and need not be in conflict, but focussed effort will be required to ensure that they are aligned and mutually reinforcing.

6.121 In a sense there is nothing new in this, but today governments are being forced by the challenges they face to revisit basic questions about what they do and how they do it. Strategic direction is required in streamlining administration. It cannot be taken for granted that the delivery of public services by government departments and agencies is the most effective approach to achieving desired outcomes.

6.122 It is imperative that public service reforms proceed from a vision developed through a realistic re-examination and determination of what is affordable and what role the public service is to play in the years ahead.

6.123 Once that vision is agreed on:

• it should provide the basis for developing management principles, organizational arrangements and administrative systems;
• mechanisms should be developed, and roles and responsibilities clarified, to ensure that decisions - such as budget measures, or other government initiatives affecting public service reforms - are assessed against the vision, to optimize relevance, coherence, consistency and the efficient use of resources;
• public servants and other stakeholders should be kept informed of the purposes and direction of reforms, including how they relate to previous reforms and to the overall strategic direction, and should participate to the maximum extent feasible in their development and implementation;
• periodic assessments of progress should be carried out to determine if specific reform objectives are being met, to identify problems and lessons learned, and to point to new directions; timely reports should be provided to Parliament, and these should be considered by a parliamentary committee; and
• at the appropriate time, serious consideration should be given to undertaking a full evaluation of the impact of the reform and renewal initiatives now under way.

There must be a sharper focus on the relationship between costs and the results achieved

6.124 Inputs, outputs and outcomes. Canada and the selected jurisdictions recognize that, with increased fiscal restraint and increased public demand for effectiveness, there must be a sharper focus on the outputs and outcomes of public programs and their costs. Both the productivity and the quality of public services have assumed increased importance. The result has been an enhanced recognition of the need to use the inputs of government - both public money and public employees - in ways that promote value for money and improved public service performance.

6.125 The four countries have approached the implementation of this principle in significantly different ways and with different degrees of vigor. There is, however, general agreement that the achievement of value for money and the improvement of public service performance requires:

• explicit linkages, in both management and public reporting systems, of the overall level of the inputs deployed, the outputs produced and their cost, and the effects of outputs on desired outcomes; and
• agreed and known measures and standards against which performance can be assessed.

6.126 In this regard, the New Zealand management model is innovative, particularly in its clear definition of the relationship between ministers and chief executives, which provides the potential for clearer accountability.

Achieving results requires the enhancement of accountability as well as the delegation of authority

6.127 Centralized authority in such large, complex organizations as the governments of the four countries studied simply cannot respond efficiently or effectively to the myriad decisions that must be made to produce value for money and deliver high-quality service. Some delegation must take place. Delegation is also essential to enhancing cost-consciousness, cost-effectiveness and quality in the design and delivery of public services. If individual ministers and public managers do not have sufficient control over inputs, cost-consciousness will not be achieved, let alone cost-effectiveness.

6.128 However, delegation is a means to an end, not an end in itself. It is not meant to release either ministers or public managers from their obligations to adhere to government policy, or to reduce their accountability for actions and decisions. Indeed, if delegation is to take place without abdication of authority, accountability must be enhanced proportionally.

6.129 To enhance the accountability of chief executives - heading departments in New Zealand and Next Steps agencies in the United Kingdom - formal performance agreements with ministers have been developed. These countries have also established clear links between expectations and performance information. Furthermore, there are rewards and sanctions implicit, if not explicit - such as performance pay - in the nature of the "contractual" arrangements between heads of agencies or departments and their ministers. It is within this tight "playing field" that delegation takes place.

6.130 In separating policy making from operational or service delivery functions, the United Kingdom, like New Zealand, has changed the nature of accountability to ministers concerning the attainment of operational objectives. When the accountabilities of ministers and heads of agencies are defined clearly, accountability to elected representatives, and through them to the taxpayers, is also likely to be enhanced.

6.131 A long-standing concern of this Office is the failure of successive reform initiatives to adequately address accountability. In our view, PS 2000 has not remedied this problem. While the initiative proposes measures to enhance the accountability of deputy ministers and other managers for the quality of their management performance, in our opinion the necessary changes have yet to occur. Furthermore, much remains to be done to enhance the accountability of government to Parliament.

Conclusion

Sustaining reform is essential; political commitment will be the key

6.132 There can be no doubt that a high-quality public service is essential to high-quality governance. Public servants play a crucial role in gathering and developing advice for ministers on a wide range of complex issues and in managing the delivery to Canadians of government programs and services.

6.133 Significant changes may be made to the size, role and functions of the public service in the months and years ahead. However, this will not diminish its importance as a vital element of our system of government.

6.134 Canada's renewal initiative proposes changes that are imperative in the current context - fundamental changes in how public servants are managed, and other changes essential to a modern and service-oriented public service. But as this report reveals, for a variety of reasons, scepticism and cynicism surround PS 2000. Much is being done. However, it is not clear that the momentum for change in attitudes - the essence of PS 2000 - is being maintained. This remains a major challenge. The complexity of the task must not be underestimated.

6.135 The restructuring initiative announced in the summer of 1993 reflects the increasing priority of fiscal considerations, and further widens the scope of change. It also adds a sense of importance and urgency to the need to follow through on the basic principles of public service renewal.

6.136 Sustaining reform and renewal must be a priority. Political leadership and support - actions that demonstrate commitment - are critical to ensuring that reform initiatives are successful, and that Canada's public service is a vibrant, efficient and effective organization, capable of meeting the challenges that lie ahead. Consistency in trying times, and over the long haul, is the ultimate test of that commitment.