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Strategic Management Initiative.

Dáil Éireann Debate, Thursday - 20 May 2004

Thursday, 20 May 2004

Questions (60, 61)

John Bruton

Question:

60 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the action taken by her Department on each recommendation of the PA consultancy report on the implementation of the strategic management initiative. [15020/04]

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Written answers

The PA Consulting Group's evaluation of the strategic management initiative contained a number of recommendations which were aimed at moving Departments forward to a position consistent with the ambitions set out in the strategic management initiative and Delivering Better Government. A large number of the recommendations relate to wider Civil Service issues and require intervention at Government and Oireachtas level or involve steps that must first be taken by the Department of Finance or the Department of the Taoiseach before being implemented by the other Departments.

Other recommendations do not require action by other agents or third parties before being addressed individually by Departments. My Department has established an excellent reputation for embracing modernisation and change and introducing creative and innovative practices. A number of the recommendations contained in the PA Consulting Group's evaluation have been, or are in the process of being, implemented, including eGovernment initiatives, such as providing for online e-payment for patent and trademark renewals and continuous improvement of the Department's website as an information portal for the Department's customers; development of human resource management capabilities, including the introduction of peoplesoft, a human resources management system, and the development of a departmental human resources strategy; the development and implementation of the management information framework; and regulatory reform, such as through the consolidation and restatement of company law and of health and safety legislation.

Early in 2003, my Department established four working groups to progress five of the six modernisation pillars set out in Delivering Better Government — quality customer service; openness, transparency and accountability; human resources management; financial management; and information systems management. It was considered at the time that the sixth pillar, regulatory reform, did not require such a working group structure but this is kept under revision as my Department strives to remain at the forefront of the regulatory reform agenda. A high level steering committee was established to oversee the direction of the working groups and to drive the modernisation process within my Department. As part of its work programme for 2004, the steering committee is examining the PA Consulting Group's report with a view to identifying any outstanding issues, and directing the working groups to progress the identified issues. The high level SMI steering committee reports to the management board on a regular basis.

As part of the Sustaining Progress social partnership agreement, my Department prepared an action plan which outlines the initiatives to be taken over the course of the agreement to progress the modernisation agenda. Many of the modernisation issues contained in departmental action plans are those which are raised in the PA Consulting Group report. My Department has made significant advances on commitments contained in the action plan, as evidenced in the two progress reports submitted to date to the Civil Service performance verification group. The action plan and the first progress report are both available online at http://www.finance.gov.ie/documents/ actionplans/D%20ETE%20Action%20Plan.rtf and http://www.finance.gov.ie/documents/ civilservice/benchmarking/enterrisetandeprep.rtf respectively. The second progress report is currently being examined by the performance verification group and it is intended that this will be published once that examination has been concluded.

John Bruton

Question:

61 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if a management information framework as recommended by the Mullarkey committee has been put in place in her Department; and if she will explain the way it works. [15035/04]

View answer

The management information framework, MIF, project is an integral part of the Government's strategic management initiative. The Mullarkey group recognised that the MIF is a complex project that will take a number of years to implement fully.

In March 2004, following a year of preparations, my Department introduced the first module of its new financial management system and, since then, the remaining modules of the system have gone live. This new system has been designed specifically to meet the requirements of the MIF, including the capacity to produce cash and accrual accounts. My immediate priority was to ensure that the transition from the old financial system to the new state of the art model could be achieved without interrupting the essential financial services and operations of my Department, its agencies and its offices. I was pleased that the preparations for the changeover had been thoroughly made and that this objective was realised. Over the coming months, there will be a period of bedding down for the new system and the staff operating it before we can begin to exploit its benefits for management.

When fully operational, the system will provide enhanced financial information on a regular and timely basis to all levels of management. Management accounts will become a regular feature of the Department's ongoing operations. Maintaining accounts on an accruals basis will improve control by providing regular information to managers of actual expenditure against budget and details of commitments entered into in advance of payment being made.

The Government's implementation timetable for MIF extends to the end of 2006. During the intervening period, my Department will introduce modern business tools that will approximate those in use in the private sector. The new financial system will facilitate the allocation of costs to programmes and provide data on financial and non-financial performance indicators. The MIF will help to provide a basis for value for money assessments of the Department's programmes. It will support the preparation of strategy statements as well as the regular monitoring of progress. Improved financial information will also improve the linkage between financial analysis and decision making. The new system will also support improved asset management by recognising, through appropriate depreciation policies, the ongoing and future cost of using capital assets.

To ensure the effectiveness of the MIF, it will be necessary to embark on a major training programme for staff of my Department to equip them to exploit the framework fully and to achieve the twin objectives of improving business planning and the efficient use of resources. Proposals are being considered at present by my officials in this regard.

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