Administrative
Simplification
Simplifying Procedures:
A gateway to growth
George Tziortzis
Management Consulting
July 5th, 2014
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Agenda
1
2
3
4
Setting the basis
Understanding the problem and the need
The trends shaping governments
Tools and enablers for simplification
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
1
Setting the Basis
Reform
Public sector reform consists of deliberate changes to
the structures and processes of public sector
organizations with the objective of getting them to run
better.
Structural Change
Structural change may include merging or splitting
public sector entities, re-assigning mandates and
developing lean and focused structures.
Simplification
Includes redesigning systems, setting quality standards
and
focusing
on
capacity-building.
Includes
administrative aspects of public administration.
Transformation
Removing and addressing barriers for sustainable
reform, structural change and simplification to work for
all Points of Views.
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2
Setting the Basis
The elements of transformational change:
Policy
Strategies
Regulation
Structure &
Processes
Programs
Skills &
Competencies
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Understanding the Problem and the Need
 Experience from a range of transformational, restructuring, process
reengineering and automation projects dictates that simplification
pertains to at least two stakeholder / actor groups and hence two
Points of View (POV):
 External Actors (e.g. citizens, external entities)
 Internal Actors (e.g. government employees)
 Transformational change and hence simplification must be perceived
as desired and effective by both.
 Based on experience the POV is often different.
 The result is sustained complex bureaucracy, administrative and
potentially aggravation burden and lack of growth facilitation.
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Understanding the Problem and the Need
Manifestation of the problem:
ADMINISTRATIVE
BURDEN (in Cyprus)
Identification of
Laws & Regulations
Analysis of
Laws & Regulations
Documentation of Obligations
BUSINESS
AS
USUAL
 1.900 legislations from 1960 to 2007
 52 Government Departments
Analysis of
Activities and Data Requirements
 5.500 Information Obligations identified
Measurement of
Administrative Burden
 Only in 8 Legislation Areas (total areas
around 50).
Strategies for limiting
Administrative Burden
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Understanding the Problem and the Need
Manifestation of the problem:
ADMINISTRATIVE
BURDEN
BUSINESS
AS
USUAL
 More than €1 Billion per year Administrative Costs.
 70 % Administrative Burden – 30% Business as Usual.
 Not including Government’s Cost.
 Vertical and horizontal suggestions including Legislation changes,
Process changes and Technology adoption.
 Horizontal suggestions addressing 4% of the burden and vertical
suggestions 18 % of the burden.
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Understanding the Problem and the Need
Direct Issues Identified:
Other Issues Noted:
 Complicated processes without
clarity. Not end-to-end.
 Failure to show initiative.
 Repetitions.
 Lack of willingness.
 Front line has limited execution
and approval authority.
 Lack of leadership at middle
management level.
 Need for personal presence.
 Lack of competence.
 Lack of information sharing.
 Lack of consistency.
 Lack of instructions.
 Lack of being prudent and of due
process.
 Need for presence at multiple
points.
 Lack of responsiveness.
 Ignoring procedures.
 Document complexity.
 Failure to respect legislative intent.
 Maintaining historical information.
 Direct and Indirect “Corruption”.
 Traditional vs electronic methods.
 Political involvement.
 Limited electronic payments.
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Understanding the Problem and the Need
Effect
Cause 1
Cause 3
Cause 2
We must understand
the Root Cause
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Understanding the Problem and the Need – Root Causes
Governance: Lack of consistent governance model and control /
enforcement, lack of coordination and measurement of performance.
Structures: Department / function centric not citizen / service centric,
Structures to facilitate high population of people.
Process: Fragmentation based on structure, no end-to-end processes
based on service delivery. No cost or time based sensitivity. Inefficient
formalizations. Long procedures for reform.
Responsibility and Skills: No responsibility, no accountability but
also no impact. Lack of willingness, resistance to change. Feeling of
“deserving”. Blaming legislation. No project management skills.
Infrastructure and Information: No common platforms, no
information based integration, limited online services penetration.
Acceptance and Facilitation: Facilitated and sustained by the lack
of measurement and impact and background support by the “system”.
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Also Considering the Future:
The global megatrends impacting governments into 2030
Global megatrend #1: Demographics
Will I have a pension when I am old and will it be
sufficient for me to live on?
Global megatrend #2: The rise of the individual
What is government doing to improve services for
me? And how will they keep me better informed?
Global megatrend #3: Enabling technology
How does the government leverage technology and
information?
Global megatrend #4: Economic Interconnectedness
How will governments help us compete?
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Also Considering the Future:
The global megatrends impacting governments into 2030
Global megatrend #5: Public debt
How is government balancing the need to reduce debt
against the need to stimulate growth?
Global megatrend #6: Economic power shift
How is government adjusting to a new economic
world order?
Global megatrend #7: Climate change
Is government doing enough to adapt economy to
climate change and reduce emissions?
Global megatrend #8: Resource stress
What is government doing to guarantee that our
children have sufficient food, water and energy?
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Global megatrend #2: The rise of the individual
The consequences of the
rise of the individual
Education enabling
empowerment
Rising incomes,
rising expectations
Faster dissemination
of information
accelerates
action
Rising income inequality within
countries leading to potential for
greater social unrest
Increasingly
connected populations
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Global megatrend #3: Enabling technology
The consequences of
enabling technology
The boundary
between what is
considered public
and what is
considered private is
blurring
0 1 0 11
0 0 0 11
101000
0001
Transformation of
communication
Big data
New social
service models
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
Change of
security and
policing to focus
on dealing
with cyber crime
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Global megatrend #4: Economic interconnectedness
The consequences
of economic
interconnectedness
Trade and
investment
continue to
increase
growth
Increasingly
complex trade
and investment
relationships
Declining
barriers to
trade
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
Greater risk for
international
(economic/financial)
contagion events
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Tools and Enablers for Simplification
When looking at what governments may need to change, they may choose from:
Policy
Regulation
Programs
When looking at how governments may need to change, they may choose from:
Strategies
Structure &
Processes
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
Skills
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Tools and Enablers for Simplification
What will facilitate change?
Policy:
Enforcing authority / entity
 A fresh permanent entity with
authority to enforce
 Deliberative bodies with
specific terms of reference
 Advisory bodies
 Reform and growth
initiatives to be coordinated
and monitored centrally by
enforcing entity
Evidence-based policy
 Increased focus on proactive
long term policy changes
 Policy design to be
considered together with
operational delivery
 Policies anchored on highquality data supported by
data analytics skills
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Tools and Enablers for Simplification
What will facilitate change?
Regulation:
Encourage behavioral
change
 Service POV while
maintaining control
 Incentives driven
 Performance oriented
measurement
 Continuously evaluation of
effectiveness
Enforce market practices
to support the market
 Identify and remove barriers
 Minimize information needs.
Single submission and
validation. One stop
 Human resource
management. A key way to
reform, over time
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Tools and Enablers for Simplification
What will facilitate change?
Programs*:
Program based approach
Holistic long-term view
 Develop organizational
framework for managers
 Integrated approach
not in silos
 Distinguish between
project and program
management
 End to end solutions
and processes
 Establish a program
management approach
 Repeat and enhance
initiatives and programs
 Establish a project
management culture
 Monitor and measure
outcomes
*e.g. Promotion of transparent and accountable government, promotion of e-government,
decentralization (devolution and delegation), change management.
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reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Tools and Enablers for Simplification
How change can be affected?
 Policy or program implementing organizations separated from
policy making ministries to be independent corporate type
organizations.
 Pay equal attention to aspects related to performance (e.g.
budget targets) and organizational health (for example, leadership
and management) to bring about and sustain change.
 Performance driven and impact driven evaluation system.
Address workforce tenure.
 Shift away from management by rules towards management by
results, associated with definition of performance targets.
© 2014 KPMG Limited, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights
reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Tools and Enablers for Simplification
How change can be affected?
 Program and project based approach. Collaboration system.
Accountability / responsibility for implementation.
 De-layering
via delegation of responsibility from central
management bodies to line departments, agencies or external
service delivery organizations.
 Mission and objectives based restructuring (not internal
restructuring only). Remove “small kingdoms”. Consolidate and
utilize resource pooling.
 Invest in technology and information. Integrated, compatible
Information Systems based on an architecture. Utilize information.
© 2014 KPMG Limited, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights
reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Tools and Enablers for Simplification
How change can be affected?
 Build middle management capacity and caliber.
 Capacity based resource management.
 Strategic HR Management office at highest level. Ability to hire
and retain critical functions and retire others.
 Single point of truth regarding information. Submit once. Maintain
information. Retrieve while valid.
© 2014 KPMG Limited, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights
reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.
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Thank You
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© 2014 KPMG Limited, a member firm of the KPMG network of independent member firms affiliated with KPMG
International, a Swiss cooperative. All rights reserved. Printed in Cyprus. The KPMG name, logo and ‘cutting through
complexity’ are registered trademarks of KPMG International. The KPMG name, logo and "cutting through complexity" are
registered trademarks or trademarks of KPMG International Cooperative ("KPMG International").
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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