Conclusion of the Departmental Assessment and Alignment Project

1
Conclusion of the Departmental Assessment and
Alignment Project

• Key Achievements and the Way Forward

2
Table of Contents

• 1. Background
• Why was the DAAP Undertaken?
• Key Components of the DAAP Methodology
• 2. Key DAAP Achievements
• i) Restoring Financial Stability
• ii) Renewing Policies and Programs
• Modernizing Management Practices
• Organizational Alignment
• 3. The Road Ahead

3
Why was the DAAP Undertaken?

• DAAP was carried out to achieve three primary
  objectives
• Restore financial stability
• Renew the departments policies and programs to
  focus on priorities
• Modernize our management practices and processes
• Align the organization to better support program
  outcomes
• Restoring financial stability was critical for a
  number of reasons
• increasingly unmanageable financial pressures
  from
• chronic revenue shortfalls and unfunded salary
  obligations
• aging infrastructure, pressure to deliver
  unfunded programs, and growing operating costs
• risk of not meeting 2002-03 budget
• 52M in relief provided by Treasury Board
• participation in federal Expenditure and
  Management Review and contributed 9M to
  reallocation exercise - ongoing 17M contribution

4
Why was the DAAP Undertaken?

• Policy and program renewal was equally important
• to focus departmental efforts on highest
  priorities with the objective of improving
  services to Canadians given DFOs limited
  resources (human and financial)
• policy directions in 2000 Strategic Plan were not
  fully implemented or integrated
• DFOs program framework was complex with 5
  strategic objectives and 11 business lines
  related to improved reporting to Parliament
• program framework also didnt address growing
  interconnections amongst current program
  challenges
• We also needed to modernize our management
  practices and ensure the organizational structure
  supports our policy and program directions

5
Key Components of the DAAP Methodology

• Process entailed significant involvement of
  sectors, regions and DMC and focused on 4 key
  components
• Baseline Resource Review
• examination of expenditures led to implementation
  of critical financial stability measures
• Integrated Policy and Program Framework
• guided the DAAP analysis and provides road map
  for setting longer-term priorities
• DAAP Theme Table Working Groups
• established program change proposals, identified
  new policy directions, and informed decisions on
  organizational structure
• Modernizing Management and Organizational Changes
  
• 9 working groups established to improve core
  management practices
• organizational alignment to better support
  program outcomes

6
Restoring Financial Stability Immediate
Measures

• DAAP produced an action plan to ensure DFO
  delivered services within budget for fiscal
  2003-04.
• About 10 million surplus from 2003-04 budget to
  carry forward and spend this fiscal year.

7
Restoring Financial Stability Longer Term

• Despite progress made further financial pressures
  are anticipated from government-wide reallocation
  and emerging DFO priorities.
• DAAP developed a plan to reallocate resources
  from lower to higher priorities that positions
  DFO to move forward.
• About 79M will be freed up in 2004-05
• reduced discretionary spending will save 29M in
  2004-05
• staffing plans will save almost 21M in salaries
  next year
• 21M in permanent program reallocations and
  management efficiencies
• approximately 7.5M was found through various
  other minor reallocations.

8
Renewing Policies and Programs

• Integrated Policy and Program Framework
• Integrated policy and program framework
  established a new strategic outcomeTo ensure the
  sustainable development and safe use of Canadian
  waters
• DFO will deliver on this outcome through three
  program objectives
• Healthy and Productive Aquatic Ecosystems,
  Sustainable Fisheries and Aquaculture, and Safe
  and Accessible Waterways
• Program objectives supported by efficient and
  effective support and enabling functions
• science, CCG fleet, and corporate functions (such
  as Communications, Human Resources and Corporate
  Services, Legal Services, Policy and the Audit
  and Evaluation Directorate)
• Principles established to guide how we do
  business
• integrated resource management, risk management
  and precaution, transparent and participatory
  decisionmaking and improved partnerships
• Framework positions DFO to develop a renewed
  Strategic Plan and a streamlined program
  architecture for reporting on expenditures

9
Integrated Policy and Program Framework
10
Renewing Policies and Programs

• Theme Table Working Groups
• 3 working groups (structured on program objective
  areas) conducted review of DFO programs and
  expenditures
• Produced wide range of change proposals
• transformative options will require further
  analysis and Ministerial engagement prior to
  implementation
• Working group recommendations set a new course
  for renewing DFOs policies and programs

11
Renewing Policies and Programs

• Healthy and Productive Aquatic Ecosystems

• FROM
• Fragmented and vertical management of oceans
  issues
• Ad hoc decision-making on narrowly defined
  problems
• Disconnected regulatory and policy frameworks
• Traditional regulatory approaches
• Science focused on individual species

• TO
• DFO leadership on horizontal management
• Integrated planning and risk- based
  decision-making
• Integrated policy frameworks
• (e.g., Canadas Oceans Strategy)
• Emphasis on smart regulation, partnerships, and
  stewardship
• Broader ecosystem approach to science

12
Renewing Policies and Programs

• Sustainable Fisheries and Aquaculture

• FROM
• Discretionary, politicized decision-making
• Annual harvest plans, access and allocation
  decisions lack finality and predictability
• Paternalism and micro-management
• Reactive approach to treaty rights
• Ad hoc response to emerging aquaculture industry

• TO
• Structured and transparent decision-making
• Longer-term allocations with greater stability
  and certainty
• More formalized co-management and shared
  stewardship
• Enhanced relations with Aboriginal communities
• Coherent aquaculture policy and program frameworks

13
Renewing Policies and Programs

• Safe and Accessible Waterways

• FROM
• Focus mainly on maritime safety
• Comprehensive suite of marine programs delivered
  in-house
• Labour intensive operational support of safety
  and navigation
• Fleet support historically geared towards marine
  programs
• Broad focus on policy, regulations, and service
  delivery for marine safety

• TO
• Increased effectiveness in supporting maritime
  safety and security
• Greater reliance on partnerships
• Enhanced service innovation and use of new
  technologies
• Fleet fully responsive to supporting all DFO and
  other government program needs
• Dedicated focus on operational efficiency and
  service delivery

14
Renewing Policies and Programs

• Emerging Policy Priorities
• Analytical work and recommendations of the
  working groups also produced broad policy
  recommendations
• Six-point policy agenda further refined in
  response to Ministers mandate and commitments in
  the Speech from the Throne
• Enhancing Leadership on Oceans through New Oceans
  Action Plan
• Modernizing the Canadian Coast Guard
• Modernizing Environmental Review Processes
• Renewing Fisheries Management and Modernizing
  Governance
• Supporting Sustainable Aquaculture
• Strengthening Relations with Aboriginal People

15
Modernizing Management Practices

• DAAP examined the state of DFOs management
  practices and identified opportunities for
  improvement
• Flowing from this examination DMC established
  nine working groups to carry work forward in key
  areas
• 1. Financial Management 6. Divestiture
• 2. Executive Direction and Enabling
  Functions 7. Procurement
• 3. Real Property Management 8. Business
  Planning
• 4. Information Management 9. Small Craft
  Harbours
• 5. Information Technology
• DAAP has significantly strengthened financial
  planning, improved accuracy of monthly reports
  and is aligning financial systems with 3 new
  program outcomes
• DAAP also launched an initiative to improve the
  identification and mitigation of risk in
  departmental decision-making processes
• Additionally, DAAP resulted in senior management
  service level agreements to clarify
  responsibilities and accountabilities of DMC
  members

16
Organizational Alignment

• To better support policy and program outcomes
  several changes are being made to the
  departments organizational structure
• Strengthening Policy Sector
• leadership in strategic policy development and
  coordination of DFOs policy and international
  agenda
• enhanced economic and statistical analysis
  functions
• Strengthening CCG as a national institution
• CCG will become a special operating agency within
  DFO to improve its ability to provide efficient
  and effective operational services
• Regional Directors and the Director of the CCG
  College will report directly to the Commissioner

17
Organizational Alignment

• Creating an Integrated Fisheries and Aquaculture
  Program
• aquaculture program is being moved and the sector
  is being renamed Fisheries and Aquaculture
  Management
• Renaming the Oceans Sector
• renamed Oceans and Habitat to better reflect
  mandate
• Creating a Centre of Expertise on Procurement
• created to develop national standards and
  consistent approaches to contracting and
  procurement across the Department

18
Organizational Alignment

• Establishing a Revenue Framework Task Force
• established to develop comprehensive cost
  recovery and revenue plan for the Department
  (external charging)
• Implementing Comptrollership
• establishing a stronger Comptrollership function
  in line with new government directions
• updating financial management practices to
  strengthen integration between strategic
  planning, priority setting and program delivery

19
The Road Ahead

• Maintaining Momentum
• While much has been achieved and DFO now has a
  fundamental renewal agenda, we need to move
  forward on a number of important fronts
• advance the new policy agenda supported by
  legislative proposals
• ensure program change agenda is implemented and
  efficiencies are realized
• continue progress on implementing financial
  stability measures
• implement recommendations of the nine modernizing
  management working groups
• conduct Revenue, CP and Science reviews and
  implement recommendations
• Also need to participate in government-wide
  expenditure review and implement a new
  streamlined program activity architecture.
• Need to consolidate and integrate the change
  agenda in a renewed Strategic Plan.

20
The Road Ahead

• The DFO Renewal Agenda will help us address
  workload reduction on several fronts, including
• improving the way we do business
• simplifying business lines
• reducing certain activities
• clearly identifying our priorities
• DFO Renewal Team established to maintain momentum
  and move forward in an integrated manner
• mandated to coordinate implementation of DFOs
  renewal agenda
• collaboration with sectors and regions will be
  critical to ensure successful implementation