Publication Mail Registration Number: 40052410 THE MAGAZINE FOR PUBLIC SECTOR DECISION MAKERS SPRING 2025 VOLUME 31 | NUMBER 2 0 9 05 61399 70471 $5.00 INSIDE: MEMORANDUM TO THE PRIME MINISTER: IT’S YOUR PUBLIC SERVICE NOW TRANSITION FROM A PROVINCIAL GOVERNMENT PERSPECTIVE - THE MANITOBA EXPERIENCE www.canadiangovernmentexecutive.ca WHAT’S AT STAKE? GOVERNMENT TRANSITION
More than 50,000 Government of Canada employees have trusted us with their second language evaluation goals. Get Your SecondLanguage Evaluation (SLE) LevelsOn Your First Try WE’LL HELP YOU TACKLE YOUR SECOND LANGUAGE EVALUATION TEST (B & C LEVELS) WITH CONFIDENCE. THANKS TO OUR UNIQUE METHODOLOGY AND 1 ON 1 (OR SMALL GROUP) APPROACH, YOU ALWAYS GET THE ATTENTION YOU NEED TO SUCCEED. I highly recommend LRDG to all those looking to improve their French language skills. The tailored learning programs allow you to focus on areas of importance to you while improving your overall fluency. This is, by far, the best part experience that I have had taking French courses. Amy Larin Highly recommend LRDG for French language learning. The learn-on-your-own online modules give lots of flexibility for professionals, parents and busy people... and when combined with weekly one-on-one tutoring, you also get the accountability and personal experience that you can’t get with an app. Nancy Brooks +1 514.989.1669 1 888.989.LRDG sales@lrdgonline.com www.lrdgonline.com 90% Test Success Rate with a Proven Track Record 200+ Language Tutors 50k Successful Learners 250+ Organizations Language Research Development Group (LRDG) is Canada’s premier online language training solution for mastering English and French. We’re also the only supplier to be awarded the Government of Canada’s recent National Master Standing Offer for Virtual Language Training, including SLE Prep and self-study via the LRDG Portal. LRDG’s blended approach to one-on-one online tutoring, group training, and self-study empowers learners to pursue their language goals at their own pace and take advantage of personalized learning paths. MASTER CANADA'S OFFICIAL LANGUAGES SLE Testing & Training in Part-Time, Full-Time, 1 on 1 & Group Formats. Language Research Development Group Inc. # EN578-202723/011/ZF
Spring 2025 // Canadian Government Executive / 3 CONTENTS PERSPECTIVE 5 Building trust, boosting efficiency through digital engagement By EY LP 6 Government Transition – What’s at Stake By David McLaughlin 10 Memorandum to the Prime Minister: It’s Your Public Service Now By Michael Wernick 14 The Importance of Looking at Successful Transitions Through a Political Lens By Peter Miles 18 Transition from a Provincial Government Perspective - The Manitoba Experience By Jan Forster 22 Rudderless in the Storm: The Crisis of Adaptability in Canadian Governance By Alasdair Roberts 28 THE LAST WORD Mark Carney’s Letter By Lori Turnbull 22 Rudderless in the Storm: The Crisis of Adaptability in Canadian Governance CGE ONLINE: Letters We welcome feedback on articles and story ideas. Email lori@promotivemedia.ca About the Cover Government Transition – What’s at Stake It’s in the Archives Missed an issue? Misplaced an article? Visit www.canadiangovernmentexecutive.ca for a full archive of past CGE issues, as well as online extras from our many contributors.
OUR MISSION IS TO CONTRIBUTE TO EXCELLENCE IN PUBLIC SERVICE MANAGEMENT EDITORIAL DEPUTY EDITOR | LORI TURNBULL lori@promotivemedia.ca MANAGING EDITOR | DAVID McLAUGHLIN davidm@promotivemedia.ca EXECUTIVE EDITOR | TERRI PAVELIC terri@promotivemedia.ca CONTRIBUTORS | MICHAEL WERNICK PETER MILES JAN FORSTER ALASDAIR ROBERTS EDITORIAL ADVISORY BOARD DENISE AMYOT, PENNY BALLANTYNE, JIM CONNELL, MICHAEL FENN, LANA LOUGHEED, JOHN MILLOY, VIC PAKALNIS, ROBERT SHEPHERD, ANDREW TREUSCH, DAVID ZUSSMAN SALES & EVENTS DIRECTOR, CONTENT & BUSINESS DEVELOPMENT | DAVID BLONDEAU 905-727-3875 david@promotivemedia.ca ART & PRODUCTION ART DIRECTOR | ELENA PANKOVA elena@promotivemedia.ca SUBSCRIPTIONS AND ADDRESS CHANGES CIRCULATION SERVICES | circulation@promotivemedia.ca GENERAL INQUIRIES 21374, 2nd Concession Rd, East Gwillimbury, ON, L9N 0H7 Phone 905-727-3875 Fax 905-727-4428 canadiangovernmentexecutive.ca CORPORATE GROUP PUBLISHER | J. RICHARD JONES john@promotivemedia.ca Publisher’s Mail Agreement: 40052410 ISSN 1203-7893 Canadian Government Executive magazine is published 6 times per year by Navatar Press. All opinions expressed herein are those of the contributors and do not necessarily reflect the views of the publisher or any person or organization associated with the magazine. Letters, submissions, comments and suggested topics are welcome, and should be sent to lori@promotivemedia.ca REPRINT INFORMATION Reproduction or photocopying is prohibited without the publisher’s prior written consent. High quality reprints of articles and additional copies of the magazine are available through circulation@promotivemedia.ca. Privacy Policy: We do not sell our mailing list or share any confidential information on our subscribers. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities. canadiangovernmentexecutive.ca 4 / Canadian Government Executive / Spring 2025 WEB EDITOR’S NOTE Spring is a time of seasonal transition and, after Canada’s 45th general election, transition to a new or newish government. Prime Minister Mark Carney’s Liberals won a strong minority government on April 28th. After inheriting former prime minister Justin Trudeau’s government with his selection as Liberal leader in March, Mr. Carney is now in a position to put his own stamp on his own government. How will he govern? What will his new government look like? What changes will he make to implement the transformative agenda he promised during the campaign of a new relationship with the United States, more economic growth, building energy infrastructure and housing, managing the nation’s finances, and continuing to make progress on climate change? And how does he do all this without the security and stability of a four-year majority government/ Transition is where it starts. Truth be told, Mr. Carney initiated a first-step transition when he became prime minister in March. He reduced the size of Cabinet and spoke of government transformation. Now, elected on his own terms, he will chart his own form of transition process – a process that will run many months yet before its impact can be fully seen and felt. Canadian Government Executive is focusing on transition in this issue of CGE Magazine. To kick it off, we are publishing a series of articles helping readers understand the process and issues surrounding transitions. Read the articles here. Follow us for updates from our transition event. More to come! David McLaughlin Executive Editor, Canadian Government Executive
January/February 2025 // Canadian Government Executive / 27 PERSPECTIVE Sponsored Content By Janice Horne, Jen Mossop-Scott and Rohit Boolchandani BUILDING TRUST, BOOSTING EFFICIENCY THROUGH DIGITAL ENGAGEMENT Digital credentials can simplify these interactions, allowing individuals to share only the necessary information securely while reducing time and effort in their daily lives. Conclusion A unified, trusted, citizen-centred digital identity system is within Canada’s reach. By embracing this challenge with energy, collaboration and innovation, Canada can create a system that empowers its citizens and earns a place as a world leader in digital identity. EY strongly supports Canada’s work on a digital credentials platform. Digital credentials are a critical component of our nation’s digital public infrastructure that can unlock new economic value by allowing people to safely and conveniently share trusted information about themselves when interacting online. References 1. Digital identification: A key to inclusive growth 2. https://www.uidai.gov.in/aadhaar_ dashboard/index.php Janice Horne, Partner, Global Client Service Partner & Federal Account Leader, EY LP Jen Mossop-Scott, Partner, Technology Strategy & Transformation, EY LP Rohit Boolchandani, COO, EY Design Studio, Partner, EY LP Canada’s recent 47th place ranking on the 2024 United Nations’ E-Government Development Index (EGDI) is a wake-up call for our technology and public policy leaders. Noting Canada’s low EDGI ranking, and significant fall from 2nd to 6th among G7 nations, Auditor General of Canada Karen Hogan’s recent report on “Digital Validation of Identity Access Services” concluded that Canada is falling behind in e-government development. The EGDI assesses government readiness and capacity to use advanced technologies across online services, telecommunication infrastructure, and human capital. The leading countries on the Index — including Denmark, Iceland, the United Kingdom, and Australia — have one important thing in common: a single front door to government services enabled by digital credentials. The Auditor General noted there are as many as 90 separate sign-in systems managed by individual federal government departments. While this fragmentation may not seem significant to the average Canadian who files taxes once a year, the inefficiencies become glaringly obvious when citizens engage with multiple departments simultaneously. The result is a system that not only is slow and frustrating, but one that fails to meet modern expectations for seamless, integrated service delivery. Today, support for digital credentials is consistent and widespread, with 9 out of 10 Canadians expressing their approval. Countries that successfully implement digital credentials could grow their GDP by 3 to 13% by 20301. India’s world-leading Aadhaar system, has enrolled 1.35 billion people and authenticated 8.2 trillion transactions2, and has significantly improved service delivery and security. A conservative estimate suggests that trusted digital credentials could contribute at least 1% of GDP, or CAD $15 billion, to Canada’s economy. Canada has been trying to improve. In 2021, Treasury Board President Anita Anand laid the groundwork for a trusted digital identity platform, and in 2023, Minister of Citizen Services Terry Beech renewed the commitment to seamless service delivery. Programs like the FederalProvincial-Territorial Digital Trust and Credentials Program and the Jurisdictional Experts on Digital Identity (JEDI) table are uniting efforts across jurisdictions. The Auditor General has called for more national leadership, interoperability, and resource planning. In addition, EY teams have identified three actions Canada can take to advance the government’s digital credentials. Follow provincial leading practices BC’s Digital Trust program is iteratively developing an open-source digital credential platform that helps program areas rapidly adopt digital credentials. This platform is used in mines permitting and business registration and is currently being piloted to create new opportunities for lawyers to access sensitive court documents online. The federal government could introduce services with smaller populations, such as recreational licences or student loans, and then scale up. In the private sector, Air Canada’s digital passport initiative is a recent example of successful digital credentials in Canada, making processes easier, safer, and more user-friendly, with strong public support during its pilot phase. Lead with trust Earning citizens’ trust is essential. The Human Technology Foundation’s report, “Unlocking Digital Identity,” lays out how government can foster trust: digital credentials must be voluntary, user controlled and privacy focused, governed transparently, and allow for interoperability. Digital credentials offer a safer, more privacy-focused alternative to traditional systems. Advanced encryption and multi-factor authentication allow individuals to share only necessary information, reduce data exposure, and minimize unauthorized access. Centre around citizens Whether it’s picking up a package at the post office, buying alcohol, receiving care at the dentist or hospital, or closing on a home purchase, Canadians often face cumbersome and fragmented systems requiring multiple pieces of identification and in-person visits. A citizencentred approach prioritizes user needs.
FEATURE 6 / Canadian Government Executive / Spring 2025 GOVERNMENT WHAT’S AT STAKE BY DAVID McLAUGHLIN, BA, MA, MBA Sir Robin Butler, the Cabinet Secretary, was keen to keep in touch with the Labour Shadow Cabinet and briefed them in November 1991 on the ‘Next Steps’ initiative, which involved the creation of executive agencies. However, a session with Butler did not go quite according to plan thanks to John Prescott having imbibed too much, on his own admission, at the annual Spectator Awards: “It so happened I had to go to a meeting of the Shadow Cabinet being chaired by [Neil] Kinnock, at which we were going to be addressed by the cabinet permanent secretary. The thinking was that we should know the inner workings of the Cabinet, in case we ever got elected.” Kinnock’s office tried to sober Prescott up but in he stumbled, only to proclaim: “I know I’m pissed, but I first want to ask one question – why do I want some permanent cabinet secretary telling me things? I’ll find out soon enough when we’re in government.” Prescott was then escorted out, but the episode illustrates, however crudely and unintentionally, the gap in understanding still to be bridged, and in some cases never bridged. From: “Transitions: Preparing for Changes of Government”, Institute for Government, 2009, pg. 21 TRANSITION
FEATURE Spring 2025 // Canadian Government Executive / 7 Canada’s 45th general election has returned a Liberal majority government. That new government – and it is new with a new a prime minister and agenda - must now prepare for office and power. That process is called ‘transition’. There is both mythology and mundanity to it. The most extraordinary event - a peaceful transition of power in a democracy - yields an ordinary procedural quality to it. One government is out, another is in. In truth, it is far more consequential, even for a re-elected government familiar with the corridors of power. Understanding Transition Transition is not a one-off event, the period leading to the swearing-in of a new prime minister and cabinet. That is only one of three crucial phases, if the most visible and symbolic. Transition is a continuous process that commences with pre-Writ planning with no formal end date. It consists of three distinct phases: • Phase I – Planning; pre-Writ up to E-Day (T1) • Phase II – Implementation; E+1 to Day 1 of new government including Swearing-In (T2) • Phase III – Consolidation; Day 2 Onward (T3) Transition is both procedural – taking over the machinery of government – and political – asserting the brand of the new government and setting direction and early decisions for longer-term success. Transition planning needs to take both elements into account if it is to be successful. What the new government decides to do cannot be separated from how it decides to do it. New processes, from the Prime Minister’s Office (PMO) to the Privy Council Office (PCO) to Cabinet to ministers’ offices, are all up for grabs. Both the incoming prime minister and his team and the permanent public service, are uneasy partners in this initial phase. They know they should work together and may even want to work together, but time is sometimes needed to figure out how that will be done. Unlike Vegas, what happens in transition does not stay behind the scenes. It is very public in its application and results. Transition carries over into voters’ perceptions of the new government and prime minister. Mishandled, it can establish deep and damaging views of the new government’s competence that will be hard to shake. Done well, it can give a new government exceptional momentum to achieve its political and policy goals for the country. Goals and Strategy Transition should have one overriding strategic goal: to quickly and effectively get a grip on the decision-making apparatus of government and begin to successfully implement the agenda of the new government and prime minister. This is, after all, about governing. But there are several important sub or tactical goals: • Generate political momentum – converting election enthusiasm into political momentum to implement the new government’s agenda. • Establish policy priorities – tell Canadians and the public service what the new government will focus on first, and why, to set the table for results and begin to orient the machinery of government in the desired direction for longer-term action and results. • Communicate a new leadership style – show the public the leadership style of the new prime minister, using this as a tool to both generate momentum and build political capital. • Build the team – putting the internal team in place – Cabinet and political staff, first; Clerk and deputy ministers to follow – to implement the new government’s agenda, giving it purpose and direction. Audiences There are two distinct audiences that matter during Transition: the public and public servants. Both are important but for different reasons. A transition process that focuses exclusively on government bureaucrats in the first two weeks before the swearing-In, will find a confused and suspicious public once the new prime minister and Cabinet resurface. Electoral momentum from the win will be dissipated. The public is legitimately interested, and perhaps trepidatious, about what comes next, so deliberately engaging with them will help reduce anxiety and, more importantly, build political support for the government’s decisions. The purpose of thinking about audiences is that transition is the first step in the new PM and government forging the relationship it wants. Secrecy and mistrust will undermine any relationship, beginning with a new government’s honeymoon. Accordingly, it is crucial to prepare and implement a two-track strategy of engaging with public servants while, at the same time, informing the public of goals, priorities, and timing. This requires a complementary communications strategy for the incoming prime minister, with purpose-built events and activities along the way from E+1 to SwearingIn Day, as part of Phase II transition. Within the public service, there are multiple sub-audiences: deputy ministers and senior officials in line departments; ABCs (agencies, boards, and commissions) senior officials and governance board members; as well as rank-and-file public servants. While it is impossible to meet with all these sub-audiences during Transition Phase II, targeted messages via public media and video messages across the whole public service during Transition Phase III can suffice. Follow-up meetings as required and on a proper schedule then cement the relationships and messaging. Transition should have one overriding strategic goal: to quickly and effectively get a grip on the decision-making apparatus of government and begin to successfully implement the agenda of the new government and prime minister.
8 / Canadian Government Executive / Spring 2025 FEATURE Meeting with Deputy Ministers / Civil Servants An early meeting with the DM cadre is advised. This should take place during T3, not T2, ideally in the first week of the new government. The goal is to communicate priorities and set expectations for relationships with ministers, service to the public, and results for the government. Set out platform priorities. Initial chance to tell them what to work on and how to do their work. Assuage any lingering concerns about working with a new government and what comes next. Set standards for professionalism. ‘One-team government’. This meeting is not a briefing session for the premier; rather, it is a communications and team-building exercise by the premier. Use this to convey vision, priorities, and expectations on results, outcomes, ‘no surprises’ rule, etc. A subsequent virtual session with the whole civil service should follow later that same week. The goals are the same as for the DM meeting. But stronger focus on their public service ethic, getting results for people, and wanting their advice. Goal is to begin to create ‘one-team’ civil service. Mandate Letters to Ministers The previous Trudeau government issued mandate letters to ministers following their swearing-in to provide more detailed direction on specific priorities and issues within the minister’s portfolio. Mandate letters serve three key purposes: • First, they identify priorities and timeframes across and within the government to ensure greater public service focus and political cohesion. • Second, they provide the public with more information on government priorities, actions, and timeframes, increasing accountability. • Third, they give a common communications framework for new ministers as to what to say on specific issues, at various times to the media. Mandate letters are a key part of transition as they go down a level beyond often general platform commitments to immediately give the public service direction on what to work on first. They communicate focus and urgency to the apparatus of government. Controversially, mandate letters have become seen as a politically directed means of asserting control by the PMO over the whole of government. Meant to focus government’s attention, they can restrict it. Mandate letters should not ideally be so prescriptive that they prevent diligent ministers and deputy ministers from identifying: • new and emerging priorities requiring the government’s attention • how best to accomplish the government’s goals without ruling out innovative ways of doing so. A new PM should consider less intrusive mandate letters as one mechanism to restore Cabinet government and individual accountability. Cabinet Choosing a Cabinet is a highly personal and political task for an incoming prime minister. There is no ideal formula. PMs are restricted by who the voters choose as MPs in the governing caucus and where they won. Regional, linguistic, gender, and ethnocultural considerations all go into the mix. Generally, PMs seek to put their best political and communications performers into the most important portfolios. They take personality and operating style into account when matching with departments and DMs. Later, a shuffle of deputy ministers often occurs to get this alignment done even better. Prime Minister Carney’s first Cabinet shrunk the size of the ministry and changed names of some departments to convey his priorities. This is a reminder that Cabinet are not just governance exercises, they are communications exercises too. Political Staff Good political staff are essential for ensuring the government’s agenda - policy and political – is implemented. Recruiting and training political staff is therefore key to a government’s transition success. Political staff lie within the realm of ‘grey governance’. Not public servants and therefore not bound by the traditional hiring rules, they are still subject to various accountability frameworks. Transition is the time to train and orient them to good governance principles and practices. In practice this means organizing a twoday staff orientation early in the mandate to train-up the new team and instill proper political management skills and good governance accountability and ethics. A training agenda typically covers: • How government works • How Parliament works • Role of Ministers, MPs, and political staff • Role of public service • Working with deputy ministers and public servants • Communications, media relations, and issues management • Constituency relations • Expenses, travel, hospitality rules • Ethics, conflicts of interest, accountability guidelines. • Behaviour, harassment, and code of conduct norms and guidelines. Machinery of Government New prime ministers are often tempted to make changes to the overall machinery and structure of government right out of the gate. This can be counterproductive as it is disruptive internally and generates a disproportionate amount of public service time looking inward instead of focusing on pressing government priorities. Such changes are always more complicated than anticipated, often requiring legislative and regulatory changes as well as budgetary adjustments in what is presented to Parliament. And they have ‘interdependencies’ where a machinery change in one department has a spillover impact on another. Figuring this out takes time. Nevertheless, there is a good case to be made that the machinery of government needs a serious rethink post-pandemic, with big economic and financially transformative issues facing the country. Identifying this as a study priority with an internal deadline of 18 months, gives a new government time to assess what changes are needed. An external expert commission or task force would yield useful advice to the prime minister and Privy Council Office, which houses the machinery of government unit. The Liberal platform commits to a review process that could feed into this thinking, promising to “…launch a comprehensive review of government spending in order to increase the federal government’s productivity.” The review would focus on the following:
Spring 2025 // Canadian Government Executive / 9 FEATURE • Amalgamating service delivery so there is one point of access for Canadians in how they interact with government programs • Consolidating grants and contributions that serve similar purposes and are delivered to the same organizations across multiple departments • Better leveraging technology to improve the automation of routine tasks and inquiries from the public and reducing the need for additional hiring (AI) • Significantly reducing reliance on external consultants, while improving the capacity of the public service to hire expertise inhouse • Better managing litigation and contingent liabilities and improving asset management practices. The Carney government has also signalled some significant machinery changes, including establishing a separate Defence Procurement Agency and Build Canada Homes. Defining Transition Success Transition is both a highly public and a highly private process. It is also highly political and highly bureaucratic. Success is therefore multiplex, not singular. For the governing prime minister and party, success comes in the form of public approval for what it is doing and how it is doing it. For the public service, success comes in the form of the smooth implementation of government direction and its agenda. Framing transition priorities and success within designated time frames, such as a parliamentary session, is part of determining political success. This includes setting out priority legislation and announcing platform commitments kept. Governments take platform commitments seriously, tracking and reporting on them for the most part. An analysis published in Policy Options found this: For the public service, success has both a professional and personal dimension. Public servants will welcome the new government with overt professionalism. They take pride in helping new ministers take on the complicated, demanding, and myriad tasks of running a government and country. Briefing information on every conceivable topic can be found. Most important, though, in shaping that success is the briefing information provided by the public service on the government’s most important election priorities. If advising on implementing the incoming government’s agenda is job one, building effective working relationships – the personal – is job two. Successful ministers forge good working relationships with their deputy ministers and senior public servants. Transition offers the most crucial time to do so. These private interactions will help determine the public success of transition for the new government. And they will help determine the political longevity of individual ministers. Conclusion There is no official end point to transition. A new government is simply governing at that juncture. Sometimes outside events – a pandemic, a recession, a war – will upend any government’s transition intentions and timetable. What matters is appreciating that transition is a dynamic process with high stakes for all involved. Successful governments see it as an extended process well beyond the swearing-in. They understand it is a political priority-setting and communications exercise as much as anything else. If a five-week election campaign seems long to leaders and candidates, a four-year governing mandate seems short as issues and events pile up. Transition is their first, best chance to assert themselves for the direction and agenda they were elected to implement. How they manage transition in year one will have a lot to say whether they get re-elected in year four. David McLaughlin is Executive Editor, CGE Media. David has over 30 years of senior-level public governance experience at both the federal and provincial government levels. He is a former Clerk of the Executive Council and Cabinet Secretary in Manitoba, deputy minister to the premier in New Brunswick, and chief of staff to the federal finance minister and prime minister of Canada. “Justin Trudeau’s second Liberal minority government (2021-2025) fulfilled 44 per cent of the 354 promises made during the 2021 election, while 32 per cent were partially fulfilled and 24 per cent broken. In total, 76 per cent of promises have been fully or partially fulfilled, a higher percentage than the average for Canadian governments since 1993 (70 per cent). However, only 44 per cent of promises were fully kept, below the average of 56 per cent.” “Canadian political parties keep more promises than you might think” Lisa Birch, Alexandre Fortier-Chouinard, April 23, 2025, Policy Options
MEMORANDUM TO THE PRIME MINISTER: Congratulations on your election victory. You have earned the trust of Canadians to lead the country through one of the most challenging periods in our history. The public service is here to support your government and deliver for Canadians. You take office having set out a platform of electoral promises as well statements you made in numerous campaign appearances and interviews. These will be foundational to building the agenda of your government, and will soon have to be translated into laws, policies, programs and changes to the taxation and regulatory systems. You can also sift for policy ideas through the recent wave of entrepeneurship from stakeholders, think-tanks, op-ed writers and podcasters and look for nuggets of gold BY MICHAEL WERNICK FEATURE 10 / Canadian Government Executive / Spring 2025 IT’S YOUR PUBLIC SERVICE NOW among the dross. The public service will be able to help with due diligence and translating all these disparate and often conflicting ideas into implementable options your Cabinet can consider. You will also be provided with scans and assessments of many other issues that will come across your desk, from events around the world, upcoming international summits and negotiations to upcoming court cases, sunsetting laws and programs, Auditor General chapters and appointments to be made. The first set of decisions about how you structure your government will imprint on all subsequent decisions. You will be assigning the more than 300 federal government organizations to Ministers for the purposes of accountability and reporting to Parliament, and you have options to restructure some of the departments and agencies as you do so. You will also be determining who will have the levers of influence and decision making on issues that will arise. The next set of important decisions will come with the first Budget or Economic Statement. Your decisions about taxes and spending priorities will shape the overall fiscal envelope for planning the rest of your mandate. You have the option of starting down the path of a spending review or a policy overhaul of the tax system right away or leaving that until later. Part of your agenda should be the public service itself – not what it will be asked to do but how it works. You have the option of making the size and capabilities of the public service part of that initial Budget or waiting for another window to launch a renewal initiative.
FEATURE Whichever timing you choose, you basically have two options regarding the public service– a passive agenda where issues come to you and your decisions gradually take you down a path – or a proactive agenda where you mindfully chart a course for the public service and spend effort and political capital to get there. A passive agenda? These issues are coming at you, like it or not Technology The public sector is already well into another wave of disruptive technological change. You are inheriting the legacy of previous initiatives to incorporate digital technologies, more sophisticated and strategic approaches to data and information, and the early applications of artificial intelligence (AI). You have inherited the legacy of an Open Government agenda, the 2021 Benefits Delivery Modernization program 2022’s “Digital Ambition”, the efforts in 2023 and 2024 by a Minister of Citizen Services, and the October 2024 Guidelines on the use of generative AI. You will have to decide how much ambition and financial investment to commit to this agenda. You will soon have to decide whether you are willing to confront less comfortable issues raised by the emergent technologies, such as job reductions or changes to requirements for bilingualism as AI tools for translation and interpretation continue to improve. There will be a lot to learn, for better and worse, from how other countries are faring. Collective Bargaining and Compensation As an employer you are still at the bargaining table today with a few unions and will have to quickly be ready for another broad round of negotiations. The agreements signed after the strike of 2023 expire soon. Those agreements included commitments to work with public service unions on issues such as hybrid work and diversity and inclusion. The main bargaining issue this time is less likely to be about wages catching up to inflation and more about job security and the algorithm for layoffs, euphemistically called “workforce adjustment policies”. There are other compensation issues where you will have to decide whether to stick to the status quo or pursue reforms. Performance pay for executives and Governor-in-Council appointees draws regular criticism from right wing journalists and union leaders and arguably needs a software update. The defined benefit pension plans are out of step with most of the private sector workforce, and the financing has drawn attention from the Parliamentary Budget Officer. There have been calls to provide more flexible bundles of non-salary benefits such as health and disability insurance. The sick leave plan is badly out-of-date with current best practices and needs replacement. There is a strong case to add retention and recruitment bonuses to the compensation toolkit to ensure key skillsets are acquired in a competitive labour market and reduce the need to hire contractors. Diversity Equity and Inclusion (DEI) You will have to choose between advice that the emphasis by your predecessor on DEI has gone too far and created “woke culture” and a drag on effectiveness, and advice that it hasn’t gone far enough. The status quo won’t likely hold for long. Your predecessor failed to update 1980s vintage employment equity legislation after three years of consultations and you will need to decide whether to resume this effort. A staring point will be what to do with the 2024 report of the Review Task Force, and what to do with the DEI inspired changes in recent years that are now deeply embedded into procurement and many aspects of human resources management. You will also have to decide how to respond to the next wave of legal challenges and advocacy by employee representative groups. While a class action launched by Black employees was not certified, some new legal action seems likely. Productivity Your predecessor launched a Task Force on Public Sector Productivity in 2024. You will have the opportunity to review their advice and to decide whether to invest further effort in this initiative. A serious approach to productivity would require delving into deep rooted issues where there are no quick fixes, including sluggish staffing and procurement, chronic underinvestment in training, the thickness of middle management, and badly neglected information management that hold back aspirations for digital government. The first set of decisions about how you structure your government will imprint on all subsequent decisions. You will be assigning the more than 300 federal government organizations to Ministers for the purposes of accountability and reporting to Parliament, and you have options to restructure some of the departments and agencies as you do so. Spring 2025 // Canadian Government Executive / 11
FEATURE 12 / Canadian Government Executive / Spring 2025 To be productive the public service will have to move money, people and information around at a much quicker pace. Procurement Procurement of goods and services is the aspect of government operations in most need of early attention. Before the election the ArriveCan app procurement drew media and Parliamentary attention to the tangle of overlapping policy objectives and to shortcomings in oversight. The current political context will create pressures to procure faster, especially for defence and security, and to tilt procurement even further to Canadian sources. Those objectives are often in conflict. There is an old adage that among cost, speed and quality you can out pick two of the three. Procurement reform will be a big undertaking. The design and boundaries of any new procurement agency will be crucial to future success and is just the beginning of a bigger policy conversation. You should consider banning public servants from also acting as contractors. A proactive approach The other path open to you would be to place the issues set out above in a larger frame and make public service renewal an explicit part of your agenda, worthy of serious attention and focus. A comprehensive reset/renovation/renewal of the federal public service would address all aspects of what has made the public service what it is today and shape its future: • The role of the federal government in our economy and society • Intergovernmental boundaries and federalism issues • Total spending and total operating costs • Total headcount of the public sector workforce and its distribution across Canada • Reducing program sprawl and complexity • Structural issues in management layers and occupational groupings • The toolkit for compensation • Opportunities and challenges presented by AI and other digital technologies • Enhancing productivity and effectiveness • Strengthening capabilities needed for the future • New machinery of government options • Deep dives into the future of a few specific federal organizations Why Comprehensive? The alternatives are worse. Muddling through would mean a drift into mediocrity that will constrain your government’s success and further erode the trust of citizens. Relying exclusively on attrition to bring down staff levels is a bad idea. In practice it means a slowdown or freeze in hiring that chokes off the recruitment of new talent and skill sets. It is a passive approach anchored in a random distribution of departures that is very unlikely to lead to having the right people in the right places. It foregoes the opportunity to strengthen functions or skillsets that are priorities for the future. There is no avoiding the need to use layoffs and early departure incentives. There is no way to insource a lot of the work done by contractors and consultants without a substantial investment in training and development of the public service workforce. Looking only at the body count or salary spend doesn’t take you very far without looking at the actual workflows. What are those people working on? Which programs, external services, functions, professions and internal services are more important than others? Where are they located? The second worst approach is the traditional one of slicing operating budgets with flat across the board cuts. This also damages future capability. Without political cover to make deliberate changes to programs and institutions, organizations reflexively turn to reducing their spend on new hiring, training and upgrading of technology. The cumulative impact on the public service can be debilitating. During the campaign a distinction was drawn around spending that is for investment. The same thing applies to the public service. Spending on training and technology is an investment in future capability. Past spending reviews have achieved savings targets but have fallen short of achieving serious reform. “Vertical” reviews that look at each department or agency separately forego the chance to look at boundary issues with other organizations and miss opportunities to prune overall program sprawl, reduce overlap, or renovate common internal processes. Vertical reviews treat the current machinery of government as a fixed constraint and miss the opportunity to make structural changes that create new organizations better fit for purpose. Functional or “horizontal” reviews that cut across organizations have been useful in reviewing common cost centres such as real property, advertising, vehicle fleets, fixed assets, or common administrative services such as security clearances, translation and interpretation, legal advice, human resources, or finance. These horizontal reviews tend to disadvantage the many smaller organizations or departments with thinner operating budThe public sector is already well into another wave of disruptive technological change. You are inheriting the legacy of previous initiatives to incorporate digital technologies, more sophisticated and strategic approaches to data and information, and the early applications of artificial intelligence (AI).
FEATURE Spring 2025 // Canadian Government Executive / 13 gets. They are usually driven by arbitrary savings targets and rarely result in investment to build future capabilities. Functional reviews today would be more successful if explicitly linked to the emergence of AI and other tools to augment services. Looking to the Future It is possible to get to a public service that is smaller, flatter, more productive, agile and capable. The way to get there is a mindful proactive approach to pruning and renewal that is as comprehensive as possible. The big difference with the spending resets of 1995 and 2012 is that AI and other digital technologies are already flowing through many occupations and functions. There will be opportunities to harness them to assist and augment the work of public servants. However, there has not yet been a candid conversation with a largely unionized workforce about how change will impact the number of staff and the training they will need. Any reset of the federal government in 2025 must incorporate the impact of AI and digital technologies into the discussion and the potential to transform not just external services but especially the internal workings of the public service. Broad spending reviews don’t usually provide the setting for a deep dive into what should be done to renovate a specific federal entity. Examples where this is arguably needed, if not long overdue, include the RCMP, the CBC, Canada Post, and the Coast Guard. There is also a policy case to renovate the civil defence role of the military and to create new foreign intelligence capabilities. It is also time to review the constellation of central agencies (PCO, Finance and Treasury Board) to make sure they are still fit for purpose. Each renovation is worth taking the time to do it right. The Climate Change Analogy The best way to get to a smaller, leaner, flatter and more focused federal public sector is not through short term measures and adhoc reforms. It would be to set an ambitious medium range target and let smart people work the problem and innovate, especially with technology and processes. The analogy could be something like a “20 by 30” target. You could set a goal to reduce the size of the civilian federal workforce by 20 percent by 2030. You could also set a target for the share in the National Capital Region. Currently that share is just over 40 percent. You could set a medium range target of “one third in the capital” to serve as both ceiling and floor and plan to spread federal jobs and presence more widely across Canada. Then within those macro parameters for size your government should attack programs, functions and structures simultaneously. It would be a mistake to aim for a quick harvest of savings. Instead, a serious reform would make allowances for adjustment and implementation costs if the direction toward the medium-term outcome is right and progress is being made. There would be many ways to set up a path to success. Lessons from the past are that it would be essential to make sure there is constant engagement and a robust change management strategy because resistance is inevitable, from within and outside the public service. Canada seriously underinvests in generating a supply chain of ideas and innovations related to the biggest most complex set of institutions in the country. If you are to avoid piecemeal incrementalism and overcome inevitable resistance you will need to strengthen that supply chain. You should revive the Advisory Council on the Public Service, create a new Parliamentary Committee focused on capabilities and readiness for the future of the public service, create an Advisory Body specific to technology in government, and create an innovation fund to stimulate research and debate. The public service cannot reform itself. It will need help from political leaders who will be ready to provide focus and direction and to own and defend the difficult choices that will have to be made. It is your public service now. Michael Wernick is one of Canada’s most experienced and influential public sector leaders with a 38-year career in the federal public service, including 17 years in the community of Deputy Ministers and culminating in his role as the 23rd Clerk of the Privy Council from 2016 to 2019. Since his retirement, he has worked as a consultant and adjunct professor, and in 2022, he became the chairholder of the Jarislowsky Chair in Public Sector Management at the University of Ottawa. Wernick is the author of Governing Canada: A Guide to the Tradecraft of Politics (UBC Press, 2021) and is renowned for his expertise in Indigenous issues, intergovernmental relations, governance, and public sector management.
14 / Canadian Government Executive / Spring 2025 FEATURE BY PETER MILES THE IMPORTANCE OF LOOKING AT SUCCESSFUL TRANSITIONS THROUGH A POLITICAL LENS Perspectives on what a new leader is navigating as they prepare to take office… and how the public service can help Transition from one government to another is a time of great uncertainty for many public and political staff. However, this period also brings moments of opportunity to help shape the path of the new administration. I’ve been fortunate to be part of four government transitions over the last decade in my home province of Newfoundland and Labrador - the first in 2015 from the PC government of Paul Davis to the Liberal Government of Dwight Ball, in 2019 a re-elected Dwight Ball government reduced from majority to minority, the August 2020 Covid transition from Dwight Ball’s Liberals to Andrew Furey’s Liberals, and the 2021 transition of a re-elected Furey government - this time from minority to majority. Each of these transitions presented a unique set of circumstances - changing parties, changing status, or changing leaders. With opportunities and risks, here’s what you need to know…
WEBINAR WEBINAR SERIES Canadian Government Executive hosts a series of webinars that are designed to provide you with the opportunity to learn about specific topics that contribute to excellence, leadership and improved performance in the public sector. These webinars are free for public sector managers and practitioners, and are presented by subject matter experts and industry leaders. Whether you’re a seasoned public sector professional or new to the field, our webinars provide practical, current and expert instruction on specific topics that can help anyone seeking excellence in their public sector career. Visit www.canadiangovernmentexecutive.ca To sTay informed abouT The exciTing lineup of webinars planned for The monThs ahead: If you would like to learn more, please contact david@promotivemedia.ca Did you know?.. Produced By Sign-up for our weekly newsletter
FEATURE 16 / Canadian Government Executive / Spring 2025 Leaders Arrive Hopeful - and with a Strange Combination of Energy and Exhaustion The leader and their close staff will be coming in excited, full of optimism, relief, but also a little road weary. They’ve just won an election - it’s gruelling both mentally and physically. They’ve spent a month on the road or in a war room together, contemplating major domestic and international public policy issues, while balancing concerns of local constituents such as potholes, traffic, and snow clearing. As the saying goes, all politics is local, so their minds will be more focused on how their policies affect people in their hometowns. The public service should be prepared to answer these questions, point to local examples, and give guidance on execution. I recall walking off the campaign bus and into transition briefings the day after an election. Public servants with arms filled with briefing books - it was intimidating and overwhelming at times. I felt impressed by their level of professionalism and preparedness, but frustrated by their approach: “We know you proposed this, but it can’t be done that way.” “We’ve tried that before and it didn’t work.” “Why don’t you focus on this instead?” “The fiscal situation doesn’t allow us to do that at this time…” Although these may be accurate and wellintentioned, my best advice is: go easy on the “that hasn’t worked before” message. The finances may have changed, public views may have changed, and importantly - the players have likely changed. An open mind as to new ways to accomplish these goals will be helpful. Your expertise is helpful to avoid pitfalls or files getting “stuck”, so relaying these experiences will be important as policy develops. Be Prepared The new political team will appreciate your knowledge of their campaign promises. From their written platform to debate commitments, their priorities should not come as a surprise, and you should be prepared to discuss them on day one. The new leader and staff are looking for guidance on execution, not resistance. They may not fully understand every aspect of how the government works - but they do understand that their job now is to deliver. Offer advice, suggestions, paths forward, lessons learned. Don’t assume they fully understand government processes - but don’t act like it’s an elusive mystery they’ll never figure out either. We’ve all heard the saying that bureaucrats must provide “fearless advice and loyal implementation.” Even if all parties have experience with this dynamic, it is worth discussing it head on, and how practically that will work between you. Leaders may differ in the form, frequency, and stage that hard truths are best received, and importantly - in front of whom. What Advice are New Leaders Given Heading into Transition? Planning for a new government transition is one of the most awkward situations a new leader will face. They need to be prepared, but can’t openly plan or get “too far ahead of themselves.” My advice to leaders has been: “The more you talk openly about transition, the less likely it is to ever happen.” The very nature of preparing to form of new government means that cards have to be held close. Another piece of advice every new leader should be given is this: “Manage your time. It’s your most valuable asset - and the one everyone will want.” Senior public officials need to recognize this and work with senior political staff to decide which matters will reach the leader’s desk - and in what format. Establishing protocol on day one sets the tone for everything that follows. The Human Side of Transitions There’s an emotional layer here that can’t be ignored. Leaders are stepping into a role that they campaigned for, but may now find overwhelming. There is pressure to move quickly, to show results, to make their mark - but also to avoid missteps. Many will feel imposter syndrome in those early days. The public service has a real opportunity to offer both structure and stability, but also reassurance and calm. That matters more than you might think. Personality Plays a Role Every leader will bring in their own plans, opinions, and personality. One may have planned for this moment their entire life, while another may have seized an unexpected opportunity for the role. Some leaders may have detailed plans for transition and operations, while others may have resisted taking anything for granted, and be more open to suggestions. Paying attention to the individual nature of the leader and responding accordingly will be important. They got elected being themselves, and expect that personality to carry forward into governance. Get to know the political staff closest to the leader. They have likely all formed close relationships during the campaign, and they are in “the meeting after the meeting”. Keeping them engaged and informed through the transition period and beyond will ensure a smoother ride through the delivery of the agenda. Do New Leaders Always Want to “Clean House”? In short, no. During the period leading up to swearingin - and in the weeks that follow - the new leader and political staff will receive much unsolicited advice about the attributes of Deputy and Assistant Deputy Ministers. Don’t be distracted by it. Having served through four transitions, I can say this kind My advice to leaders has been: “The more you talk openly about transition, the less likely it is to ever happen.” The very nature of preparing to form of new government means that cards have to be held close.
RkJQdWJsaXNoZXIy NDI0Mzg=