Radical transformation of Radical transformation of Radical transformation of Radical transformation of Public Public Public Public Administration Administration Administration Administration

� A transformation journey : reinventing Georgia

� Key learning from the best reformers

I

II

Starting conditions – similar to some countries in Africa today1

Low income(GDP p.c., USD)

Ineffective public sector (tax collection rate in %)

Unfavorable business

environment(EODB rank)

High corruption (CPI rank)

SOURCE: WDI; Heritage Foundation; World Bank; Transparency International

Africa today (2013)

920

Senegal

Zimbabwe

Mali

Tanzania

7

Rwanda

Madagascar

Central African

Republic

Republic of

Congo

Ethiopia

Mozambique

Zambia

Georgia

Georgia

in 2003

Namibia88

111

112

122

132 Uganda

Cote d'Ivoire

Mauretania

Georgia

Niger113

123

124

130

130

Georgia

in 2003

2003

Outcome – putting Georgia at par with new EU-members1

Fast GDP growth(GDP p.c. as multiple of 2003)

Effective public sector (tax collection rate in %)

World-class business

environment(EODB rank)

Low corruption(CPI rank)

SOURCE: WDI; Heritage Foundation; World Bank; Transparency International

EU-member countries

4.6

Croatia

Bulgaria

Estonia

Latvia

23.5

x3

Slovakia

Ireland

Latvia

Romania

Sweden

Finland

UK

Georgia

Georgia Denmark 5

7

9

11

13 Slovakia

Latvia

Czech Republic

Georgia

Poland41

51

54

54

62

+103

Georgia 2003 112

+73

Georgia 2003 124

Georgia

2012

Reform engine – structural reform of Public Administration

Superior economic growth and

macroeconomic environment

Structural reform of Public Administration

▪ Redesigned processes

▪ Streamlined regulation

▪ Changed mindsets

Quantum leap in Business

climate ("Doing Business“)

Quantum leap in

Citizen Services

Economics dividends

Confidence shock

Simplifica-tion shock

Competitive-ness shock

1

Example – Georgia’s public service hall1

Average waiting time ~5 min / average

servicing time 6-7 min

All public service in one space

Citizen satisfaction from 10% to 92%:

� “Totally free and fair“

� "Fast and accessible“

� "Consumers receive clear and high-

quality service“

� "Friendly and pleasant staff"

� A transformation journey : reinventing Georgia

� Key learning from the best reformers

I

II

Successful radical reforms – A common base for change

SOURCE: McKinsey analysis

Rwanda

Estonia

Poland

Malaysia

Case studies of best performers

II

Great reformers outperform

with respect to growth and

stability

Every situation is different but

there is common DNA in many

of the reforms

Best reforms are radical, deep

and fast

• Assessment of each transformation journey• Understanding of the interventions used and learnings

N. Zealand

Five critical levers traversing all areasII

L3Functional areas

Enterprises

15-20 areas

Citizens

15-20 areas

L2

Streamlined and

simplified

regulation

L4 L5Leveraging IT/

technology

Re-engineering of

processes

Transparency and

accountability

(anti-corruption)

Performance management and Impact orientation

Political leadership and commitment

L1

Executive fire power and delivery focus

10 key learnings (1/2)

LEARNING FROM THE BEST

Every country is different, but …

7

Ensure system leaders at the highest level, such as PMs, publicly announce and reinforce their commitment to the transformation

1

Adopt trial-and-error mentality : it is a journey where success brings success and you learn as you go

3

Focus on set of reforms prioritized for radicality of impact and speed, ensuring visible quick wins

4

Start with a rigorous self-assessment of performance and root-causes (health diagnostics)

2

Develop a high standards mentality for government services and reward on performance (KPIs, bonuses)

5

…successful reforms share important features

II

7

10 key learnings (2/2)

Important ingredients for successful reforms

Ruthlessly apply the same rules for everyone, including highest levels, while allowing for customer segmentation with differentiated levels of services and fees

6

Create a one government principal including one stop shop/public service hall so that interface with businesses and citizen customers is limited to one window

8

Dare to install a new ,“clean” team of high-performing individuals to drive delivery, monitor progress, and intervene as necessary

9

Apply the “silence is consent” rule, which consists in granting automatic approval after defined number of days

7

Advertise successes worldwide to attract FDI and talented workers10

II

Every country is different, but …

LEARNING FROM THE BEST