May: Leadership Signals – Take it as permission to simplify

Her weekly posts are required reading. This week’s except that I liked:

…Small things can be transformative, says Allen Sutherland, president of the Institute on Governance. Such as: the steady signals Carney and Sabia send about not letting process or the “web of rules” get in the way. Streamline. Simplify.

“If there is some transformation in the public service day to day — where public servants act with more commitment to implementation and less focus on simply being rule followers — then I’d say that’s very transformative.”

In short, leadership signals can drive change and behaviour across the public service.

For Michael Wernick, who once sat in Sabia’s chair as clerk, the budget falls short on real transformation. It has aspirational reforms, but none of the legislative fixes, structural pruning, or deep investment in public-service capacity needed.

For Sahir Khan, the budget is like a solid mid-term grade. But “the final mark will depend entirely on execution — and that burden falls squarely on the public service,” says Khan, vice president at OttawaU’s Institute of Fiscal Studies and Democracy.

One senior bureaucrat summed it up: Carney’s approach isn’t about transforming the institution or rethinking its principles. It’s pragmatic: the public service is being reshaped by being told to deliver on priorities.

“That’s the Carney transformation. You don’t waste time on a grand plan. You set aspirational goals and tell them to get it done.”

Another added: “The government isn’t focused on institutional theory but on practical, delivery-focused fixes. Carney isn’t interested in changing the public service to be different — he’s interested in it changing to deliver something he wants done differently. The focus is on results.”

This approach of skipping grand plans is concentrating attention and decision-making in the PMO and PCO on departments tied to top priorities. Some bureaucrats worry that political staff will jump in to fill gaps if public servants can’t move fast enough. That would blur accountability. It also raises questions about whether departments not directly tied to top priorities are getting enough attention.

Source: May: Leadership Signals – Take it as permission to simplify

May: The Day of [Budget] Sacrifice

Good piece:

….The budget, he [Daniel Quan-Watson] says, also marks a sharp philosophical turn. For a decade, the public service operated on a “do everything” instinct – fix every injustice, chase every big ambition, launch every initiative.
 
That era is over.
 
“It’s not that yesterday’s priorities don’t matter,” he says. “It’s that some things matter even more today. You ask, ‘Where are the injustices?’ You get one – maybe six, but it isn’t 22.”
 
“We’re not going for stars now – we’re going for low-orbit satellites. And if you catch one, you’ll be lucky.”
 
This is the moment to lead. As Anil Arora, Canada’s former chief statistician puts it, the public service needs doers, not more talkers.
 
“For too long, leadership has been about coming up with ideas, putting them out there and walking away. That won’t cut it anymore. The country doesn’t just need policy – it needs people who can implement and deliver. This is real. This is our moment. Step up when the country needs you.”

The warning signs of decline. All this comes against a backdrop of a public service – while still among the world’s best – is showing cracks. Jocelyne Bourgon is a former clerk. She is one of the architects of the 1995 program review and has advised governments around the world. She’s taken a hard look at how Canada’s public service stacks up globally. Her conclusion: it’s slipping.

The warning signs are there. Morale is down. Fewer public servants feel valued. Citizens report declining satisfaction with government services – from health care and passports to Phoenix pay, digital procurement, and CRA call centres. Canada’s e-government ranking tells the same story: we were third in the world in 2010. Now we’re 47th.
 
Bourgon (above) calls this an inflection point – a moment to act before the decline deepens. And with the Carney government signalling major downsizing and operational shifts in the budget, the public service is about to face that challenge head-on.

Source: The Day of Sacrifice

This CSPS is a very good reference document. Have highlighted the lessons learned but a must read for those interested in governance and program reviews. Found the tech observation particularly of interest:

Lessons from Past Spending Reviews

  • Lesson 1: Review impacts are not well tracked or understood.
  • Lesson 2: Spending reviews have not presented detailed analysis of the service-level impacts to Canadians.
  • Lesson 3: It is generally difficult to determine the impact of spending reviews on services to different populations in Canada.
  • Lesson 4: Program reductions tend to be undone over time.
  • Lesson 5: Spending reviews affect the federal workforce through job losses, expected productivity gains, uncertainty around change, and other morale-related considerations.
  • Lesson 6: Several second-order observations from this review have implications for how future spending restraint may be carried out.

These observations are not directly related to the mechanics of reviews, but could constrain fiscal or other policy in a way that changes the shape or importance of spending reviews. The following observations fall into this category.

  • Lesson 7: Canada is unlikely to further increase free trade in the same dramatic manner as with the 1991 launch of the North American Free Trade Agreement (NAFTA).
  • Lesson 8: Raising consumption taxes (i.e. HST) remains a broad-based option for increasing revenue.
  • Lesson 9: Canada’s public service uses roughly the same labour mix to run its programs as it has since 1946.

Technological developments during the past 80 years, if not the past 30 years, should have reduced the labour requirement. Computers, digital automation, and internet communications have made direct services easier to provide to Canadians. Forms and databases automate many tasks with higher accuracy, e.g. security checks, benefit applications, tax returns. Yet, the same number of Canadians is served by each public servant after decades of efficiency measures in spending restraint. Why is this? An un-nuanced early result appears to be that programs are more complex, as is the work to deliver them, even while the inflation-adjusted value delivered to each Canadian has not changed much in the last fifty years. However, some of this complexity may be unnecessary.

  • Lesson 10: Federal operations have legislative or policy barriers that reduce the full benefit of technological advances and maintain or increase complexity.

Source: CSPS: Canada’s Federal Spending Reviews – Lessons

May: The Functionary on PBO expenditure review recommendations

Good discussion of the PBO recommendations:

WHY IT MATTERS
It’s about measurement and accountability

It introduces a methodology to track personnel spending using more frequent pay data. It separates projections for civilian and non-civilian staffing (military/RCMP included). It distinguishes head counts (actual people) from FTEs (work equivalent). This is critical because past cuts reduced head counts while FTEs actually rose.

It’s a baseline for expenditure review. It sets clear starting points for measuring cuts, which didn’t exist before. It allows tracking of whether the public service is truly shrinking under the expenditure review. It provides capacity for twice-yearly updates so parliamentarians can monitor progress.

It’s an operating split vs. a capital budget split. The government plans to balance the operating budget while splitting expenditures into operating and capital budgets.It creates an incentive to shift operating expenses into capital (childcare transfers, immigration programs, infrastructure) to make balancing easier. Without clear definitions, departments may label operating expenses as “productivity investments” and put them under capital.

There are risks for public-service managers. Operating budgets face greater restraint since balancing that budget is Carney’s fiscal anchor. There is uncertainty over what counts as operating vs. capital. There’s a need to deliver the same services with fewer resources. Previous cuts show departments often hire more permanent staff to maintain service despite headcount reductions.

POST-GIROUX
Whoever takes over, it will be temporary

Giroux’s term ends Sept. 2, five days after departments’ Aug. 28 deadline for proposed 15-per-cent spending reductions that will shape the next federal budget in October. He leaves with another 20 or so reports in the pipeline for his successor.

I wrote in July about the unknowns surrounding Giroux’s fate and the huge impacthe’s had on the office. At the time, the Privy Council Office said it was committed to appointing a “highly qualified individual” and noted the Parliament of Canada Actallows for an interim appointment in the event of a vacancy.

This week, it offered no timeline other than in to say “due course.” It didn’t say whether the position will be filled before the budget.

The only option now is a temporary appointment until the House and Senate return. A formal appointment requires approval from both chambers. Some suggest the government would prefer an interim watchdog rather than have its moves scrutinized by someone with Giroux’s experience and track record.

Source: The Functionary

The Functionary: New clerk expectations

More notes of caution but I wish them well:

But are they too alike? That’s the worry. Both bring a Goldman Sachs-style mindset with big ambition that prizes speed and outcomes, which could drive them to barrel ahead — not listening, not slowing down, ignoring red flags.

Would deputies raising alarms about a Phoenix-style pay disaster get heard? Or would they be dismissed as risk-averse and stuck in public-service inertia?

As one long-time deputy minister said:

“Neither Carney nor Sabia has worked in the parts of government that actually deliver services. Finance manages crises — it doesn’t build systems. Fixing immigration or modernizing service delivery isn’t about reacting fast. It’s about designing complex programs, managing risk, and building IT that actually works. That’s not their wheelhouse.”

Goldman pace, Ottawa reality. The kind of style that works at Goldman Sachs — where there’s a deep bench of talent ready to step in — doesn’t translate easily to the public service, where replacements aren’t so easy to find or groom. Burnout here carries real risks, and losing top talent isn’t as simple as hiring the next in line.

Tellier and Sabia also came up in a different era. Barking orders and command-and-control leadership were the norm in the 1990s. But that style is now widely seen as outdated.

These days clerks prioritize wellness and mental health. And many public servants are tired. They haven’t a breather since the pandemic. There’s been Trump’s trade war, the federal election, two government transitions, and new crises keep coming – wars, fires.

Can the public service handle a hard-driving, two-year push for massive changes – with the chaos of layoffs? And can Carney stay focused to get his big things done?

The new guard is, well, older. Carney and his lieutenants — Sabia, chief-of-staff Marc-André Blanchard, and principal secretary David Lametti — are all white, male Boomers or Gen Xers leading a millennial-dominated public service that’s 58-per-cent women. 

Many public servants have only ever worked under the Trudeau government, where wellness, DEI, values and ethics, and work-life balance were top priorities. Money flowed and the public service grew. Gears are now shifting to high performance, speed, outcomes, spending and job cuts. That’s a culture shift.

The real leadership test may be less about what gets done — and more about how.

Source: New clerk expectations

The Functionary On PM Carney’s Work Style

Another interesting assessment of Carney’s management style:

“For too long, when federal agencies have examined a new project, their immediate question has been ‘why?’ With this bill, we will instead ask ourselves ‘how?’” he said.

That’s a signal.

He expects the public service to change how it works: less process, more results. Less caution, more action. Fewer barriers, more execution.

The bill also creates a Major Projects Office — a single federal point of contact to help priority projects through assessment and permitting.

It’s a tall order: a major cultural shift from administration to execution. From gatekeepers to doers. Public servants managed to do it during the pandemic, when rules loosened and they were galvanized by the mission to protect the health of Canadians.

But this time around it won’t be easy. As one long-time deputy minister put it, this is about a “client-focused approach to delivery” for a system built on managing risk and compliance.

“This legislation is a test for us to prove we can deliver. People are excited, but we’ll have to work really hard to do it,” said a senior bureaucrat not authorized to speak publicly.

“How do we streamline our processes to be more efficient? How do we actually think about the national interests of the country while recognizing environmental and Indigenous rights? That culture shift is a different way of thinking and focuses on execution.”….

Ready or not, Carney demands answers
Word has spread fast that Carney doesn’t suffer weak briefings. He’s known to cut them short when officials can’t answer his questions — and to call people out when they’re unprepared.

The stories get retold, maybe reshaped — it is Ottawa, after all — but the message has landed: come ready or don’t come at all.

Everyone’s heard a version: Carney meets with a senior bureaucrat who can’t answer a question. He stops the briefing cold and in so many words tells them to come back when they know their file. Ouch.

The risk in that kind of exchange? Officials might start pulling their punches — and stop speaking truth to power.

Carney brings a “toughness,” as one senior bureaucrat told me. He expects the clerk and deputy ministers to know their files cold. No vague answers. No promises to follow up. He wants clear answers in the room. “He digs and digs,” said one official. “People will just have to adjust and be ready for that.”

Source: The Functionary On PM Carney’s Work Style

ICYMI – May: Could ‘mission government’ solve Ottawa’s delivery problems?

Agree with overall assessment. Political and bureaucratic will central to any efforts:

…Longtime bureaucrats say they’ve seen other versions of this before—tiger teams, super ministers, special cabinet committees—and that mission government is just the latest trendy management brand to fix age-old problems. One noted the government already has many of the tools it needs to fix things. What it takes is political will and strong, focused leadership. Without that, the system reverts to the status quo—and resists change. 

“I’m not sure it really matters how you do it. What you need is the prime minister to say, ‘This needs to get done,’ and a political co-ordination mechanism to drive it across departments. So, call it mission or whatever.” 

Many bureaucrats expect Carney to govern like a CEO focused on priorities, outcomes, and results. Some anticipate he’ll be ruthless if progress stalls. Others question whether his central banking background fully prepares him for the operational demands of governing. 

In his first press conference as prime minister, Carney outlined his priorities: meeting with Trump, cutting internal trade barriers, launching nation-building projects, accelerating housing, tightening border security, and toughening bail for some crimes.

Those familiar with early briefings say Carney’s mindset seems clear: “’How quickly can we do this? How do we accelerate? How do we show action?’ There’s a rigor to the way he thinks, and the system will have to adapt to keep up. It’s kind of refreshing to see,” said one senior bureaucrat.

Source: Could ‘mission government’ solve Ottawa’s delivery problems?

May: Transition How-Tos [Zussman]

Good list, drawing from Zussman. Rings true from my experience under the Harper government (Policy Arrogance or Innocent Bias: Resetting Citizenship and Multiculturalism):

Here are a few do’s and don’ts from seasoned bureaucrats who’ve weathered many a transition:

This is a test of impartiality and neutrality. Many public servants have only worked for a Trudeau government and this will be their first transition. A new government, especially under a new party, may want to undo, change or scrap policies, programs and your pet projects. Don’t be attached to the programs you worked on — it’s not your role.

Zussman argues deputy ministers must ensure employees are prepared for these shifts and get “past the mindset that they have formed over the last decade and to think in different terms.”

Time for the PS to shine. Be well-prepared, do your homework, know the platform, and show you’re a committed, non-partisan public service that can be relied upon. That builds trust. Have some “early wins” ready for them. Don’t say things can’t be done.

Keep it professional. Don’t greet a new government like an overeager puppy. Don’t try to be their best friend or badmouth the outgoing one. Your role is simple: work with them, understand and implement their agenda, and recognize the legitimacy of their agenda. (They are elected. Public servants aren’t.) If you can’t live with that, it’s time to move on and leave.

Let them lead. Some incoming governments have been watching, planning, and know the system better than public servants assume. Treating them like rookies can backfire — especially if they’ve seen the bureaucracy in committee, dodging questions. “Let them lead the dance,” said one bureaucrat. They know what they want, and the public service’s job isn’t to teach them “government 101” but to deliver.

Expect skepticism. New coach, new game. One former deputy minister likened a newly elected government to a new coach who comes in because the previous leadership was seen as not delivering. So, expect the new government to be skeptical that the public service is up to the job and can execute its agenda. This skepticism is justified. Acknowledge and adapt to it. Demonstrate you can work under the new leadership and deliver its priorities.

Don’t assume you know what the new government’s relationship with stakeholders will be.

Don’t recycle the last government’s or minister’s contact list of stakeholders to call. That could backfire.

Be cautious.

Let the incoming team define its own relationships without speaking for the stakeholders.

Source: May: Transition How-Tos [Zussman]

May: Is the public service ready for a big Trump policy shift?

Well worth reading. The how is the hard part, given takes time and needs strong political support across two governments:

…Alex Benay supports the concept of Musk’s AI-first strategy but not the human costs of his tactics.  

“We should be striving for a zero-bureaucracy government in Canada by putting our national AI capabilities to the test in our public sectors first,” he said last week in a post he specified was a personal view, not an official position.  

Benay is a former CIO once dubbed Canada’s “disruptor-in-chief.”   

The government is quietly studying public-service productivity through a working group that will examine technology and AI. But that’s not enough, Lee argues.  

He thinks what’s needed is a “super-charged Glasco Commission” – the 1960s royal commission on government organization. A small, fast-moving blue-ribbon panel of public- and private-sector experts — including a disruptor — needs to draft a plan to overhaul the public service and be ready for the next government’s first mandate 

“People will be screaming bloody murder. But we’re in this crisis now, having to respond to Trump, the demands he’s making, as well as AI changing everything in government. Nothing can stop that train. They need money for border and defense spending, and there’s going to be a huge downsizing coming.” 

So far, none of the Liberal leadership contenders or Conservative Leader Pierre Poilievre has talked about a strategic review or public-service reforms to ready the federal workforce for a new world order.   

Poilievre has said he will cut the public service by attrition – not replacing those who retire, leave or quit – and through the “powerful mathematics of attrition, we will reduce the morbidly obese back-office bureaucracy.” 

But that math doesn’t work, says Wernick. The savings are too small. Productivity takes a hit. And managers have no control over selecting talent or ensuring the right people are in the right jobs. 

“You cannot solve your fiscal problem by cutting the public service. The arithmetic doesn’t work. So, where the politicians are not being honest with people is: we need more revenue,” he says. 

Governments, however, want to move fast. Strategic reviews take time.

“If you want a serious overhaul or renovation, you need two years, two budgets, and a lot of help to figure out what the federal government should look like by the end of your first mandate in 2029.”  

Source: Is the public service ready for a big Trump policy shift?

Public service job cuts loom as Ottawa misses spending and deficit targets

Will likely be brutal with a change in government:

…Some argue part of the problem is today’s bureaucrats aren’t used to austerity and have only known growth for the past decade.

Today’s leaders may have been in the public service during the Harper government’s downsizing, but few were in senior positions directly responsible for managing those cuts. Back then, the government did regular strategic reviews, which were key to identifying budget cuts and the thousands of jobs that were eliminated. The Liberals had pledged a similar strategic review in their election platform, but it has yet to materialize, leaving some to question how prepared departments are to tackle current fiscal pressures.

It’s unclear what progress the government had made on these reductions. In fact, a PBO report that tracked the Liberals various spending reviews flagged the difficulty tracking the “overall plans, progress, and results” because there is no central document publicly available…

“There’s a coming squeeze here…and something has to give,” said Khan. A Liberal or a Conservative government in the future is “going to face the same stark choice. Before you cut programs that people want or need, the outsized growth of the public service has to be on the table. The unions will face this no matter who’s in power. It’s not going to go away.”

Source: Public service job cuts loom as Ottawa misses spending and deficit targets

Federal public servants are to report back to the office again. Their bosses say they mean it this time

Unlikely that DM messaging will convince many and the unions risk attracting negative reactions given the prevailing practices in the private sector and setting the stage for even more rocky relations should, as likely, the Conservatives form the next government:

…A 2023 survey by Capterra found that 69 per cent of Canada’s hybrid workers are onsite two to three days per week; about 25 per cent have mandatory in-office days. In the U.S., Gallup found that 50 per cent are structured hybrid, with 22 per cent onsite a minimum number of days and 40 per cent are in the office 2-3 days per week.

But the government is different from the profit-and-loss-driven private sector. A non-partisan public service is built on an attachment to a mission, a public service ethos that Fox argues is best instilled by teamwork and working together.

The issue goes beyond worker and management rights. It goes to the core role of the public service.

Fox worries the sense of mission – which shone in the public service during the pandemic – will be lost if employees aren’t working together enough, raising questions whether they could handle another crisis on that scale.

“I think we do see a gap where people are not spending enough time together. That is big in terms of culture, and you’re not going to see productivity data (showing) how well you’re doing culturally,” said Fox.

The bureaucracy has also grown like gangbusters, with 80,000 people added over the past few years – many of whom haven’t worked in an office and haven’t been introduced to the culture in-person.

“There’s a risk that connections would be harder to establish in a crisis moment without that a basis of relationships and teamwork and things we had done together,” said Fox.

The compliance protocol for the return to office is onerous, with a heavy emphasis on protecting employees’ privacy while monitoring metrics like entry-card swipes at turnstiles and computer login locations.

The burden falls on front-line managers and supervisors, some of whom are not themselves keen on the mandate. Many of them, too, would prefer more freedom and flexibility and now must track daily attendance and ensure employees are where they should be, whether working in the office or from home.

Managers are expected to take daily attendance. The results will be compiled for bosses to monitor. If they spot anything that requires looking at specific employees, a whole process kicks in that can involve union representatives and privacy officials.

And those who fail to comply will face progressive discipline, including a warning, verbal and written reprimands, suspension without pay and, finally, dismissal.

It’s unclear how deep the resistance to the mandate runs. But what is clear is that the kind of workplace they are returning to has changed dramatically. Offices are being retrofitted or have disappeared entirely as the government pushes to cut its real estate portfolio in half.

While some junior employees have never worked in an office, others are going to  to workspaces with no assigned seating and personal space. Desks must be booked. Raffles are sometimes held to see who works on what day with their team to ensure there’s office space. Many pack up their equipment as they shuffle between office and home.

It’s a perfect storm for discontent.

At the same time, as one senior bureaucrat underscored, there may soon be a change of government. With Conservative Leader Pierre Poilievre’s argument that the public service is too big and broken, the question won’t be whether they are at home or the office but rather whether they still have a job.

The Conservatives haven’t said anything about where they stand on return to office. They have been content to let the Liberals take the heat. Meanwhile, Liberals are dodging it by saying this is a public-service decision, not a political one.

Experts have also turned the spotlight on the bureaucracy, saying it is bloated, unable to deliver basic services, and is a drain on the country’s productivity.

Next week, Donald Savoie, one of Canada’s leading scholars on public administration, is releasing his latest book, Speaking Truth to Canadians About Their Public Service. He has long argued the public service has lost its way. The book chronicles how that has happened.

I believe the federal public service is overstaffed; that it is providing a lower level of service to Canadians and that Canadians are losing trust in the institution,” he wrote. “I argue that it is the responsibility of the public service to provide evidence that I am wrong, not the other way around.”

Fox says that while public perception doesn’t factor directly into the return-to-office decision, decision-makers can’t ignore it, either. “It goes to trust: trust in government, trust in the public service, trust we are working to serve Canadians,” she said.

Source: Federal public servants are to report back to the office again. Their bosses say they mean it this time