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Terminology on Public Sector Transformation

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Transformaton Terminology

The following Terminology aims to promote common understanding of the transformation of the Jamaican Public Sector.

The Terminology include terms that are used within the Public Sector Master Rationalisation Plan (MRP) and the overall transformation process.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Abolished Entity

The entity will cease to exist and functions carried out by the entity will not be undertaken by the government.

Accountability:

Obligation of an individual, firm, or institution to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Autonomy:

Degree or level of freedom and discretion allowed to an employee over his or her job.

Centralisation

Concentration of management and decision making power in central (i.e. national) government.

Consolidation:

Bringing together two or more complimentary functions into one Entity to reduce duplication and overlap, realise synergies and increase efficiencies.

Contracting out or Outsourcing of services:

Contracting, sub-contracting, or 'externalizing' non-core activities to free up cash, personnel, time, and facilities for activities where the firm holds competitive advantage. Firms having strengths in other areas may contract-out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their businesses to concentrate on what they do best and thus reduce average unit cost. Outsourcing is often an integral part of downsizing or re-engineering.

Cost effectiveness:

Relationship between monetary inputs and the desired outcome.

Decentralisation

Is understood, in this context, as the handing over, by central (i.e. national) government, of specific functions, with all of the administrative, political and economic attributes that these entail, to local (i.e. municipal) governments which are independent of the centre and sovereign within a legally delimited geographic and functional domain.

Deconcentration:

Refers to the transfer of responsibility, decision making, resources and revenue generation from the executive level to levels closer to the point of delivery of service, within defined parameters.

Devolution of Authority:

Refers to the transfer of powers from Central Government to local entities. It involves the entities having full autonomy for overall management of their operations, human resources and financial matters. This arrangement holds the head of the entity responsible and accountable for all outputs- qualitative and quantitative.

Divestment:

Refers to a process by which public assets or services are sold, transferred or contracted to the private sector. (See Privatisation.)

Effectiveness

Degree to which objectives are achieved and the extent to which targeted problems are resolved. In contrast to efficiency, effectiveness is determined without reference to costs and, whereas efficiency means "doing the thing right," effectiveness means "doing the right thing."

Efficiency:

Comparison of what is actually produced or performed with what can be achieved with the same consumption of resources (money, time, labour, etc.). It is an important factor in determination of productivity.

Executive Agency:

A government entity which focuses on the delivery of services with a results oriented approach to governance. In exchange for delegated managerial autonomy, the Chief Executive Officer of the entity is held accountable for achieving stated results economically, efficiently and effectively.

Inter-Disciplinary Transformation Teams (IDTTs):

The Permanent Secretary or Head of Entity is responsible for the selection and establishment of their respective Interdisciplinary Transformation Team (IDTT). The IDTT manages the change process by identifying and implementing the transformation activities in its respective Ministry or entity. Representation on the IDTT includes human resource practitioners, communication specialists, information technology specialists, union representatives and staff at all levels of the organisation. The IDTTs are critical as they play a vital role in keeping all levels of staff informed of the changes taking place within their respective entities.

Management Audit:

Involves the systematic assessment of methods and policies of a firm's management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement. Its objectives are to (1) establish the current level of effectiveness, (2) suggest improvements, and (3) lay down standards for future performance.

Managed Service:

Management, typically by an outside third-party, of an organisation’s services and equipment. Hosting providers and internet service providers are examples of entities that provide a managed service.

Merger:

Refers to the amalgamation of two or more entities into one new entity. The resources of the merging entities are pooled for the benefit of the new entity.

Off Budget:

The entity will no longer be funded from central government budgetary sources but will be responsible for earning and owning its own revenue.

One Stop Shop:

Self-contained office or outlet that provides (almost) everything needed to satisfy a customer order or request, complete a process, or fulfil a requirement (such as information).

Prior Options Review:

The Agency’s function and performance are examined to determine if the entire agency or parts of it should be abolished, transferred or divested. Prior Options Reviews entail asking fundamental questions, such as:

Is there a continuing need for the activity?
If so, does the government have to be responsible for it, or can it be privatized and left to the market?
Where the government needs to remain responsible for an activity, does it have to carry out the task itself, or can it contract the task to one or more providers?
Should responsibility for the activity be transferred to or merged with another public organization?
Where the job must be carried out within government, is the organization properly structured and focused on the job to be done?

Privatization:

The sale or return of publicly owned enterprises to private ownership and control.

Public Accountability:

Obligations of public enterprises and agencies (who are entrusted with public resources) to be answerable for fiscal and social responsibilities, to those who have assigned such responsibilities to them.

Public Body:

Refers to a department of government, a statutory body or authority, or a company which is owned by the government.

Public/Private Partnerships:

Involvement of private enterprise (in the form of management expertise and/or monetary contributions) in government initiatives aimed at public benefit.

Rationalisation:

Reorganising the composition of government entities through restructuring, transfers, mergers, abolition, privatisation/divestment, in the interest of greater efficiency and cost effectiveness.

Regulatory Agency:

Government body formed or mandated under the terms of a Legislative Act (statute) to ensure compliance with the provisions of the Act, and in carrying out its purpose. Also called regulatory authority or regulatory body. Examples of regulatory agencies in Jamaica include the Office of Utilities Regulation and the Broadcasting Commission.

Restructuring:

Bringing about a drastic or fundamental internal change that alters the relationships between different components or elements of an organization or system.Retention:

The status quo in relation to the entity will be maintained.

Shared corporate services:

Consolidation of administrative or support functions (such as human resources, finance, information technology and procurement) from several departments or agencies into a single, stand-alone organizational entity whose only mission is to provide services as efficiently and effectively as possible. Shared services frees up scarce resources to allow departments and agencies to focus on their core business and on their customer needs, while providing organizational flexibility to have the administrative back-office structures independent of front-line activities and structures.

Streamline:

To improve the efficiency of a process, business or organization by simplifying or eliminating unnecessary steps, using modernizing techniques, or taking other approaches.

Statutory Body:

A government Entity whose mandate is governed by a Legislative Act (Statute)e.g. National Housing Trust (National Housing Trust Act).

Subject:

The portfolio area for which the entity has direct responsibility.

Subsume:

The entity will cease to exist but its core functions will be done by the host entity or Ministry.

Transfer:

The lateral movement of an entity, unit or function into the portfolio area of another entity or Ministry.

Transformation:

The Transformation of the Public Sector is a complex and radical process that is designed to fundamentally reshape not only how the Ministries, Departments and Agencies (MDAs) operate, but the overall culture of the Public Sector, its governance framework, and how the Sector is perceived by the public. The main objective of the Transformation is therefore the restructuring of the Public Sector through the introduction of new governance modalities, the rationalization and streamlining of functions across government and the implementation of new structures, systems and processes to increase productivity and cost-effectiveness within the Jamaican Public Sector.

Transformation Steering Committee (TSC):

As a strategic level team, a Transformation Steering Committee (TSC) plays a critical role in managing, monitoring and evaluating the transformation process to bring about the desired efficiencies and service delivery improvements throughout the respective Ministry and its portfolio entities. A TSC is chaired by the Permanent Secretary in the parent Ministry and includes representation from among the heads of entities within the Ministry's portfolio.

Winding Up:

Method of dissolving an entity, which is no longer providing a required government function.