Cspcar4 module 5

STRATEGIC CUSTOMS PLANNING AND MANAGEMENT 4th EDITION

MODULE 5

RESULTS-BASED MANAGEMENT IN THE CUSTOMS SECTOR

COURSE AUTHOR Interamerican Development Bank (IDB) (www.iadb.org), through its Integration and Trade Sector (INT).

COURSE COORDINATOR Interamerican Development Bank (IDB) (www.iadb.org), through its Integration and Trade Sector (INT), the Institute for the Integration of Latin America and the Caribbean (INTAL) (www.iadb.org/es/intal), the Inter-American Institute for Economic and Social Development (INDES) (www.indes.org), the World Customs Organization (WCO) (www.wcoomd.org) and the General Secretariat of Central American Integration (SG-SICA) (http://www.sica.int/).

MODULE AUTHOR Mercedes Cano Martínez. Head of the Regional Customs and Special Taxes Department of Valencia EDUCATIONAL COORDINATION AND EDITING The Inter-American Institute for Economic and Social Development (INDES) (www. indes.org), in collaboration with the Economic and Technological Development Distance Learning Center Foundation (CEDDET) (www.ceddet.org) and Caribbean Customs Law Enforcement Council (CCLEC) (www.cclec.net).

4th EDITION Copyright ©2016 Inter-American Development Bank. This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO 3.0 BY-NC-ND) (http://creativecommons. org/licenses/by-nc-nd/3.0/igo/legalcode). This document is the intellectual property of the Inter-American Development Bank (IDB). Any partial or total reproduction of this document should be reported to: BIDINDES@iadb.org Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB’s name for any purpose other than for attribution, and the use of IDB’s logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.

Note that the link provided above includes additional terms and conditions of the license.

The opinions expressed in this publication necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.

These materials have been revised in light of the ministerial decisions taken in the framework of the 9th World Trade Organization Ministerial Conference held in Bali, Indonesia, in December 2013. The adjustments were made in order to reflect a higher alignment between the course topics and the priorities identified in Bali’s Ministerial Declaration and decisions, where all IDB members participated.

Bali Ministerial Declaration and Decisions

Strategic Customs Planning and Management. 4th Edition

MODULE 5

Table of contents List of Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 General Module Aims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Questions to Guide Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 UNIT I. RESULTS-BASED MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Learning objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 I.1. The Concept of Results-Based Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 I.2. Concept of Results, Inputs, Outputs and Outcomes. . . . . . . . . . . . . . . . . . . . . . . 10 I.3. Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 UNIT II. RESULTS-BASED MANAGEMENT STRUCTURE . . . . . . . . . . . . . . . . . . . . . . 17 Learning objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 II.1. RBM Scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 II.2. Basic Elements of RBM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 UNIT III: METHODOLOGICAL TOOLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 III.1. Strategic Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 III.2. Business Process Reengineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

3

Strategic Customs Planning and Management. 4th Edition

MODULE 5

UNIT IV. SYSTEM COMPONENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 IV.1. RBM System Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 IV.2. The Budget and RBM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 IV.3. Results-Based Management and Performance Evaluation . . . . . . . . . . . . . . . 30 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 UNIT V: THE SPANISH EXPERIENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 V.1. Results-Based Management in the AEAT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 V.2. RBM in the Spanish Customs Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

4

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 ANNEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Strategic Customs Planning and Management. 4th Edition

MODULE 5

List of Tables Table I.1. The Results Chain

List of Figures Figure I.1. Planning for Results (Traditional v. Results-Based Monitoring & Evaluation Figure I.2. HIV Prevention Results Chain Figure I.3. Example Quantitative and Qualitative Indicators at the Project Outcome and Impact Levels.

Figure II.1. Deming Wheel

Glossary AEAT: Agencia Estatal de Administraciรณn Tributaria (Spanish Tax Agency) BPR: Business Process Re-engineering CLAD: Centro Latinoamericano de Administraciรณn para el Desarrollo (Latin American Center for Development Administration) RBM: Results-Based Management NPM: New Public Management OECD: Organization for Economic Co-operation and Development (OECD) DDA: Doha Development Agenda PES: Prodev Evaluation System

Introduction In recent decades the modern state has evolved toward one that generates public value and seeks higher levels of development and social welfare, shifting away from those positions that identified the state as a regulating and controlling body.

5

Strategic Customs Planning and Management. 4th Edition

MODULE 5

In this sense, the state is a generator of development and welfare by providing public goods and services, meeting the needs of citizens through efficient and effective public management which provides quality services and uses the best means to do so at the lowest possible cost.

This general shift has also been reflected in public administration and, as a result, in the tasks performed by customs authorities as the organization responsible for border control.

Results-based management is a framework which serves to facilitate effective management of the process of creating public value (results) in public organizations (and customs in particular) in order to make the best use of this value, ensuring maximum performance effectiveness and efficiency, achieving the government’s objectives and the continuous improvement of its institutions.

General Module Aims Familiarize participants with results-based management (RBM) concepts and terminology, identifying the system’s basic components in relation to strategic customs planning and management.

6

Questions to Guide Learning Are there different RBM models?

Results-based management or management for results?

What is the difference between OUTPUT and OUTCOME? What are the general and specific objectives of RBM? What requirements must results-based budgeting have?

Does process reengineering help to avoid duplication in programmed actions?

Is there a relationship between the budget and RBM?

Strategic Customs Planning and Management. 4th Edition

MODULE 5

UNIT I

RESULTS-BASED MANAGEMENT

Learning Objectives Analyze the conceptual framework of results-based management (RBM) as a tool that allows public administrations to improve efficiency and effectiveness in providing public goods and services.

Examine the role of customs in the current context and its relation to RBM. Analyze the differences of the various core concepts used in RBM and its application to customs management programs.

Introduction Since the turn of the century, customs has faced important and often conflicting demands arising from the globalization of trade: On one hand, it has become necessary to secure and control the international supply chain.

On the other, demands for greater facilitation of legitimate trade have increased.

Customs should fulfill its commitments, minimizing interference with foreign traffic.

The aim is to achieve a more competitive and dynamic economy, capable of sustainable growth with more and better jobs and greater social cohesion.

The Doha Development Agenda (DDA) was created for this purpose and was recently reinforced in the Bali Ministerial Declaration, adopted on December 7, 2013, on Trade Facilitation (Ministerial Decision WT/MIN(13)/36 - WT/L/911) and whose reading is recommended. 1 This document can be found at the following link: http://wto.org/spanish/thewto_s/minist_s/mc9_s/ tempdocs_s.htm 1

7

Strategic Customs Planning and Management. 4th Edition

MODULE 5

The role of customs is shifting away from the traditional role of the collection of duties and taxes on international trade goods to feed state treasuries to redirect their purpose towards the application of non-tariff measures.

Without forgetting their traditional role, customs authorities have assumed responsibilities in other areas such as: Public safety and security. The terrorist attacks in New York and Madrid have encouraged the implementation of security measures in the foreign trade supply chain.

The fight against fraud, counterfeiting, money laundering, drugs and transnational organized crime.

Research, prevention and punishment of illicit activities in customs (the entry of explosives and dangerous goods, for example).

The implementation of measures to protect the environment.

Adherence to trade policies.

8

The globalization of trade and the opening of borders have forced customs to adopt policies that differ from their traditional ones. Customs have ceased to be merely collection organizations and currently play a dual role of facilitation and control. It is necessary to promote higher quality public services and to ensure that government agencies manage their resources more effectively and efficiently.

Customs must be able to quickly adapt in order to fulfill all these tasks and must therefore adapt their results-based management (RBM) system to ensure that they can respond to society’s new demands with high quality, efficiency and effectiveness.

RBM is a tool that places greater emphasis on the results an organization wants to achieve and, based on these results, establishes the inputs, activities and outputs necessary to achieve them.

I.1. The Concept of Results-Based Management According to the “Open Model for Public Sector Results-Based Management” document prepared by the IDB (Inter-American Development Bank) and CLAD (Latin American Center for Development Administration), the term “results-based management” has made huge advances and is a variant of “management by objectives”, based on the core principles of new public management (NPM).

New public management (NPM) is a trend that began in the early 1970s in developed countries and is based on the application of market mechanisms to manage the problems of providing public goods and services in order to achieve greater efficiency and effectiveness in the use of public resources.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

New public management (NPM) means a “more economical and efficient government that provides higher quality services and more effective programs, at the same time introducing changes such as the extension of political control, greater freedom for managers to manage, greater government transparency and improvement of the image of those ministers and leaders who are most committed” (Pollitt and Bouckaert, 2000).

RBM presents a clear distinction between processes and outcomes. While processes refer to an intermediate state, to the production of goods and services carried out through actions or investments, results are identified with the achievement of the ultimate goals set by the institution.

However, to achieve these goals it is crucial that good “planning for results” takes place and that guidelines to be followed in order to reach the desired result from the current situation be established. This management model focuses on compliance with the steps that have been previously defined in a strategy plan which reflects public demands. Therefore, strategic planning is a fundamental element of this management model.

It is important to clearly and precisely set the goal to which the organization aims and conduct a thorough study of where we are to define the route and strategies that will help us get to where we want to go. Thus, priorities are established in terms of beneficiaries, products and the results of processes.

The implementation of a results-based management system requires: Definition of a plan to identify objectives in terms of increased public value.

Improvement of the processes used to achieve the results, increasing the effectiveness and efficiency of public goods and services.

Evaluate the results achieved, the actions taken and the fulfillment of commitments.

According to the OECD (1995), new public management aims to: a) Return authority, provide flexibility; b) Ensure performance, control and accountability; c) Develop competition and choice; d) Provide adequate and friendly services to citizens; e) Improve human resource management; f) Make the best use of information technology; g) Improve the quality of regulation; h) Strengthen the functions of the government at the center.

9

Strategic Customs Planning and Management. 4th Edition

MODULE 5

Studies in several Latin America countries have revealed two different RBM models and approaches which focus on different variables.

The “budget model” prioritizes strategic planning and decision-making, promoting the administrative responsibility of civil servants and institutions.

In contrast, the “model plan” places more emphasis on the participation of citizens in the control and oversight of the implementation of the plan and the adaption of the budgets to set targets.

In addition to these models there are other trends based on the prioritization of other tools such as accountability and performance evaluation.

For more information see the Open Model for Public Sector Results-Based Management.

I.2. Concept of Results, Inputs, Outputs and Outcomes After having defined “Results-Based Management” the question to now ask is: what is meant by results?

10

In the private sector, results are always linked with the economic benefits; that is, the maximization of profit or benefit. However, the term “result” has a different meaning in the public sector. The maximum benefit and profit is identified with maximizing public value.

According to the ideas of Mark Moore, public value is created when activities are able to provide effective and useful answers to the needs for which their political desirability was established based on a democratic process; there is a dimension of collective ownership and an aim to generate social change.

Therefore, RBM should be oriented towards public action, both to create public value in terms of generating conditions that facilitate collective development and to capture general interest.

As previously stated, the main purpose of RBM is to achieve specific results, which have a higher importance than processes. In the public sphere, this means that what matters is not the production of public goods and services, (which are simply a means to the real goal), but rather the ability of these goods and services to increase social welfare and economic development that is truly relevant. Ultimately, it means changing social reality.

At this stage it is useful to distinguish between INPUTS, ACTIVITIES, OUTPUTS, OUTCOMES and IMPACT, terms which are often confused.

INPUTS => ACTIVITIES => OUTPUTS => RESULTS An understanding of these terms not only ensures that the appropriate RBM indicators are identified but that they are also effectively measured. We will discuss a

Strategic Customs Planning and Management. 4th Edition

MODULE 5

specific project to demonstrate the difference between these terms. In this case, the project deals with trade facilitation and focuses on import controls, specifically the type and number of controls, for which it takes into account both the means to be used and an efficient risk analysis.

Inputs While inputs are often confused with activities these terms are not interchangeable.

In simple terms, inputs are those things used to implement a project. For example, in any project inputs could include human resources (employees), finances in terms of money, machinery and equipment, etc.

Activities Activities are the other end of the actions associated with the project goals. In other words, activities are what employees do to achieve the project objectives. In the project on trade facilitation, for example, activities include conducting community meetings to increase public awareness about control measures, installing scanners at strategic points for the non-intrusive control of containers, regularly collecting data to monitor project progress, etc.

Outputs These are the first level of results associated with a project. We often confuse outputs and activities. Outputs are the direct and immediate result associated with a project. They are, generally, the project’s short-term achievements. An easy way to think about outputs is to quantify the project activities that have a direct link to the project objective. For example, outputs in a project on trade facilitation would be as follows: the number of community awareness meetings held, the number of scanners installed, the number of inspections made and their result, etc.

Outcomes (results) This is the second level of performance associated with a project and refers to medium-term consequences. Outcomes are generally related to the project goal. For example, in our trade facilitation project the result (outcome) is the percentage of containers reviewed with positive results, that is, those that involved some type of irregularity. Another result (outcome) might be the time it takes to check the containers with the scanner. An important point to note is that outcomes should be clearly linked to project objectives.

Impact This is the third level of the project results and refers to the project’s long-term. Most times, it is very difficult to determine the unique impact of a project, as other similar or different projects could have the same effect. Examples of impact would be the reduction of inspection rates or reducing the inspection times of containers to reduce turnaround time and ultimately increase traffic at that customs authority.

Based on these definitions we can conclude that inputs are needed to undertake activities in order to produce outputs which in turn generate short and medium-term outcomes leading to long-term impacts. Graphic representations of this “results chain” or “results-based logic model” are presented in the table and diagrams below.

11

Strategic Customs Planning and Management. 4th Edition

MODULE 5

Table I.1. The Results Chain RESULTS CHAIN HOW should this be implemented?

Inputs

Activities

WHAT should be produced?

Outputs

WHAT results do we expect from this investment?

Short-term outcomes

Medium-term outcomes

WHY should we do this?

Long-term impact

Figure I.1. Planning for Results (Traditional v. Results Based Monitoring & Evaluation)

12

The above cause-effect linkages can be expressed with “if-then” phrases, representing the internal logic of any intervention. For example: “if” the resources are invested and the inputs mobilised, “then” the activities can be implemented; “if” the activities are implemented, “then” the outputs will be produced; “if” the outputs are produced and used by the direct beneficiaries as expected, “then” we should achieve the short-term outcomes; “if” the short-term outcomes are achieved, “then” we should achieve the medium-term outcomes, etc.

Figure I.2 below illustrates a typical Results Chain for an HIV Prevention Project.

Source: The World Bank GHAP and UNAIDS, 2009

Figure I.2. HIV Prevention Results Chain

Strategic Customs Planning and Management. 4th Edition

MODULE 5

As a result of the above, it becomes important to set indicators for each of these concepts: INPUT indicators

1 Gather resources

OUPUT indicators

2 Product or service obtained

OUTCOME indicators

3 General offer of products and services

IMPACT indicators

4 Strategy plan

SOCIAL indicators

5 Social context in which they are implemented

What are Indicators?

An indicator seeks to measure a result, to provide evidence that a result has been achieved or to provide a signal that progress is being made towards the achievement of a result. An indicator is a means of measuring actual results against planned or expected results in terms of quality, quantity and timeliness. Indicators must be directly related to the result they are measuring. Whenever possible, it is important to ensure a balance between quantitative and qualitative indicators to ensure the validity of your findings.

Quantitative vs Qualitative Indicators In measuring results two types of indicators can be used: quantitative indicators that have a numerical value and qualitative indicators that reflect perceptions, judgements or attitudes.

Quantitative indicators These are measures of quantity such as the number of men and women in decisionmaking positions, percentage of boys and girls attending primary school or the level of income per year by sex as compared to a baseline level.

Indicators Sensitive to Gender, Class, Ethnicity, Age or Race Depending on the socio-economic context, it may be critical to ensure that your indicators are sensitive to not only gender, but also ethnicity, race, age or class. For example, in Latin America where there is a significant indigenous population, it may be important to see how results are impacting not only on gender, but also on a given ethnic group vs. the rest of the population.

Other important variables also include age or class. By collecting disaggregated data, you will be able to measure progress as it relates to these different strata.

13

Strategic Customs Planning and Management. 4th Edition

MODULE 5

Qualitative indicators These reflect people’s judgements, opinions, perceptions and attitudes of a given situation or subject. They can include changes in sensitivity; satisfaction; influence; relevance; awareness; understanding; attitudes; quality; the perception of usefulness; perceptions of prospects (for example for stability, growth, or exports); the application of information or knowledge; the degree of openness; the quality of participation; the nature of dialogue; or the sense of well-being. Qualitative indicators can be obtained in a variety of ways including the use of focus groups, testimonials, application or through semi-structured interviewing and monitoring or field visits.

Figure I.3 below illustrates indicators identified at the project outcome and impact levels.

14

Figure I.3. Example Quantitative and Qualitative Indicators at Project Outcome and Impact Levels Below are examples which focus on two (2) specific projects: Example 1 Suppose a sponsoring company wants to set the management and control indicators of the CONSTRUCTION OF AN INSTITUTE OF CUSTOMS STUDIES governmentcommissioned project.

The conceptual framework of the five-link results chain presupposes that the management to control begins by gathering and using a series of resources to which corresponding indicators (financial, total human resources, volume and cost of material resources) will be linked, which are indicators of inputs.

These resource indicators are followed by performance indicators (indicators about the school itself, its accessibility, capacity, facilities), which are indicators of outputs.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

The next link requires indicators that insert the project’s output (the product obtained) into the company’s productive activity (project cost compared to total costs, total square meters built, share of the sector, operational results, etc.), which are the indicators of outcomes or of the results from that period.

In turn, ‘period’ outputs are inserted into the strategy action plan for several periods (indicating compliance with the plan, met and unmet needs, deviations), which are indicators of impact.

Finally, the most modern approach suggests including indicators that permit the contextualization of factors like media consumption, the constructed school, the set of achievements during the period and the targets set in the strategic plan within the social framework for which and thanks to which the project was created, which are social indicators.

Example 2 Discussion of the indicators in a RBM project to set measures to combat drug trafficking.

To do this we can use modern means of non-intrusive inspection, canine units specialized in detecting drugs and the implementation of specific risk analysis systems. In this case, inputs would be integrated by officials and equipment assigned to these types of inspections.

Outputs are connected with providing service, that is, the physical examination of the goods, the number of inspections and their results.

Outcomes refer to the inspections carried out with positive results.

Impact refers to international drug trafficking and the illegal entry of goods into the country; the result refers to the changes in drug trafficking that this specific customs authority experiences.

Annex I illustrates in greater detail the Results Chain for five (5) Projects in different policy areas: Emergency and Humanitarian Assistance; Education and Gender Equality; Infrastructure Services; Human Rights Democracy and Governance, and Private Sector Development

I.3. Objectives We can distinguish a general objective and a specific objective with respect to the objectives of RBM. The overall objective is the focus of public sector management in a management model that emphasizes results over procedures and prioritizes management transparency.

15

Strategic Customs Planning and Management. 4th Edition

MODULE 5

The specific objectives are to: Facilitate information, knowledge and intervention tools that enable the monitoring and optimization of the value creation process in order to achieve the best possible result as well as enable identification, prioritization and problem solving.

Link the planned results and the allocated resources.

Contribute to improving the quality of services provided by authorities and public agencies so that they can be held accountable, thus allowing citizens, oversight bodies and the international community to evaluate its management.

Contribute to the decentralized allocation of objectives and responsibilities and the performance evaluation of those exercising managerial functions, redefining work practices towards more efficient models.

Thus, it can be summarized that: “The ultimate goal of RBM in the public sector is to build capacity in organizations in order for them to achieve, by managing the process of creating public value, the results stated in the government program objectives� (IDB and CLAD, 2007).

SUMMARY

16

RBM is a management model which, when applied to the public sector, provides a model for public resources management focused on the fulfillment of strategic actions that enables the achievement of the desired objectives, prioritizing results over procedures, understanding results as the creation of public value in terms of increased economic growth and social welfare.

RBM is based on the analysis of actual results and the setting of intended results and, from there, the projects and actions necessary to achieve those results are planned, the resources to be used are identified and, finally, the expected results are compared with reached results to identify any deviations and to correct actions by reallocating resources and realigning programs.

Ultimately, the RBM system: Evaluates an organization’s performance.

Provides management transparency.

Facilitates the control and participation of operators in public management

Strategic Customs Planning and Management. 4th Edition

MODULE 5

UNIT II

RESULTS-BASED MANAGEMENT STRUCTURE

Learning Objectives Analyze the elements of the public management cycle required to obtain results, discussing the link between them.

Identify key RBM concepts and core elements in establishing programs, especially from a public manager’s perspective.

Introduction The RBM cycle can be developed on the basic scheme proposed by Shewhart (1939), which identified four steps, also known as the “Deming wheel”

Source: Prepared by the authors

Figure 1. Deming Wheel/PDCA Cycle

17

Strategic Customs Planning and Management. 4th Edition

MODULE 5

Plan: establish plans which identify the results to achieve.

Do (plan implementation): Execute the plan and provide public goods and services.

Check: Ensure that the implementation of the plan involves the achievement of results.

Act (realign): Understand the obstacles and deviations, correct problems, adjust plans and actions to overcome the detected deviations.

II.1. RBM Scheme According to the proposals of the Prodev Evaluation System (PES) we can establish the following pillars of the management cycle: 1. Strategic planning.

2. Budgeting for results.

3. Financial management, auditing and procurement.

18

4. Program and project management.

5. Monitoring and evaluation.

1.- Strategic Planning In this planning stage, it is important to set both the mission and the objectives at different levels, involving the entire organization in defining the latter. These issues –the mission and vision- have been previously analyzed and are also discussed in the corresponding strategy planning module.

It is important to note at this point that, as mentioned in previous sections of this module, strategic planning implies the establishment of guidelines that should be followed to move from the current situation to the desired result. In other words, it is a type of operational planning to establish guidelines to achieve the desired results and determine the processes and actions to be implemented, the products to be obtained and the inputs that will be needed to carry out these activities.

Moreover, planning should have a strategic component that sets the target we want to reach, so that the objectives and priority are clear to all involved. There are tools like the SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) which facilitates the study of the organization’s present situation which is then used to establish all the activities and projects that can be implemented to achieve the desired medium to long-term objectives. Other tools like the Logical Framework Approach help to prioritize objectives. These tools have been discussed in detail in other modules of this course.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

Once the organization decides where it wants to go it becomes necessary to consider how to get there. It is not enough to establish the organization’s current situation; it is necessary to define the means and strategies that will help the organization achieve its goals. It is important that priorities are set not only in terms of process outcomes, outputs and beneficiaries, but also in terms of the degree of responsibility of each of the parties involved in the chain in achieving the objectives.

Finally, for a smooth system operation it is necessary to: Set both medium and long-term objectives.

Define indicators to assess the progress of programs.

Make the necessary adjustments to correct deviations that might be detected, if required.

2.- Budgeting for Results Budgeting for results aims to strengthen both the effectiveness and efficiency of public spending with an equitable allocation of public resources which contributes to an improvement in performance.

Budgeting for results must meet the following requirements to be effective in a “results-based management� system: Develop a results-based management program that includes other steps, not only the budget phase.

Medium and long-term budgetary vision.

Train civil servants and, in general, the public managers who should be involved in implementing the system.

Establish incentive policies for staff based on meeting the stated results.

Reliable information, provided in short periods of time and integrated into the system to provide relevant data for decision-making.

Strategic audit.

Transparent procurement systems, avoiding low-cost systems.

Constant monitoring of indicators to obtain reliable information on the cost-benefit ratio as well as on deviations from the system.

Simple indicators which enable a proper analysis of programs.

Establishment of participatory measures for citizens that facilitate accountability.

3.- Financial management, auditing and procurement Financial management can be defined as the exercise of administrative functions, that is, the application of public administration processes and tools to achieve public development and welfare goals.

19

Strategic Customs Planning and Management. 4th Edition

MODULE 5

Public financial management is the set of administrative elements of public organizations which make raising funds possible as well as the application of those funds to achieve the public sector’s objectives and goals. It includes the principles, norms, bodies, resources, systems and procedures involved in the programming, management and monitoring operations required to both raise and spend resources (Makón Marcos, 2000).

The audit includes the internal and external monitoring of public organizations to ensure that they are operating as intended.

Audits can be performed ex-ante (implying the need for expenses to be pre-approved by an authorized body independent of the organization) or ex-post (expenses are monitored after the event).

Finally, the section on public procurement requires the use of practices based on competition and transparency in the awarding of public procurement contracts.

4.- Program and project management Programs and projects are the means through which products that will enable the achievement of planned objectives set in the plan are made.

20

It should be noted that programs, projects or activities are not ends in and of themselves; they are instrumental means to achieve the objectives set in terms of increased public value.

5.- Monitoring and evaluation Projects and programs should be established in the medium to long term and should be set so that they can be monitored and adjusted, correcting deviations as quickly as they happen.

Monitoring is a continuing function that uses systematic data collection on specific indicators to provide management and the main stakeholders of an ongoing development intervention with indications of the extent of progress and achievement of objectives in the use of allocated funds (OECD, 2002).

Evaluation, on the other hand, is the systematic and objective assessment of an ongoing or completed project, program or policy, its design, implementation and results.

The aim is to determine the relevance and fulfilment of objectives, development efficiency, effectiveness, impact and sustainability. An evaluation should provide information that is credible and useful, enabling the incorporation of lessons learned into the decision-making process (OCDE, 2002).

Strategic Customs Planning and Management. 4th Edition

MODULE 5

II.2. Basic Elements of RBM A) FUNDAMENTALS OF RESULTS-BASED MANAGEMENT ACCORDING TO ORMOND AND LOFFLER (1999).

A.1) Decentralization with transfer of roles The main objective of decentralization is for the public agency adopting decisions to focus more on citizens in order to know their preferences and improve efficiency in providing public goods and services.

RBM should analyze the best mechanisms to implement changes which would enable the roles to be categorized in the suitable levels of decentralization.

A.2) Budget that meets strategic objectives and responds to the public In order to perform the assigned roles it is necessary to have the resources required to provide the public with the best services.

The budget should be flexible and allow, if necessary, the readjustment of expenses allocated to each program.

Current trends are based on setting maximum spending caps, allowing the bodies closest to the implementation to allocate resources. Thus, each expense is not fixed individually and a line to follow to apply expenses allocated to each program is set.

A.3) Human resources management Flexibility in managing staff through elements like the following is necessary: wage policies, promotion systems, mobility, hiring policies, employment agreements, etc.

A.4) Application of market mechanisms Market mechanisms include those methods in which any market characteristics can be noted. The ultimate goal is to make the goods and services provided by the state more effective and efficient, which involves a cost-benefit analysis.

A.5) Social accountability, participation and oversight This implies transparent accountability in order for citizens to value the goods and services provided and the cost of their production.

In turn, the system used should enable citizen participation and oversight in implementing the established cost plans.

The shift of public action towards increased social welfare or well-being, social participation, greater operational transparency and the possibility of auditing government activities can be evaluated through results-based management.

21

Strategic Customs Planning and Management. 4th Edition

MODULE 5

B) FROM THE POINT OF VIEW OF THE PUBLIC MANAGER AND FOLLOWING THE ARGUMENTS OF SEVERAL AUTHORS. B.1) Strategy plan which defines expected results.

Results-based management is linked to strategic planning, to the extent that the objectives and priorities of core areas as well as the expected actions and processes are established through the strategy plan.

B.2) Resources management tools.

Results-based management requires management tools to monitor the development of programs designed to improve effectiveness and efficiency in the use of public resources.

Tools like the Balanced Scorecard and strategy maps facilitate results-based management and help inform public managers about their performance, as these tools provide information about the degree of progress, if what is planned is truly achieved and if proposed indicators are the most suitable.

B.3) Information systems.

22

Information is a key element in RBM. On the one hand, it is necessary to obtain information to help determine the degree of compliance with established plans and the achievement of objectives. It is essential that the information relates to all management-related activities and that information collection and analysis systems are integrated into the chain to be easily accessible, analyzable and designed for instrumental use.

Moreover, information is also related to accountability, to the extent that it facilitates the necessary data to aid citizen participation and monitoring of institutional performance.

However, monitoring through RBM should not be confused with the controls effected through external audit systems. While RBM increases the transparency of public administration operations, RBM is not intended to demand accountability or apply sanctions; but is designed to improve effectiveness and efficiency in the creation of public value.

B.4) Accountability and contracting systems.

In order to increase the commitment and capacity for action of those responsible for management within the framework of public administration, it is necessary to establish mechanisms for accountability by linking the results obtained to the managers assigned to manage these processes.

On the other hand, we must not forget that these types of goal-oriented management work under the philosophy of creating an organizational culture that prioritizes the achievement of results, unlike those systems that predominantly focus on processes or procedures.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

B.5) Work scenarios and systems that promote and facilitate learning.

Innovation and knowledge are often emphasized as part of the basic foundation of competitiveness. Knowledge as a basis for competitiveness in organizations involves the belief that the organization of the future will be one that knows how to handle internal knowledge and how to learn from external knowledge. Ultimately it means learning, anticipating and managing the knowledge within the organization.

For a discussion on organizational approaches and challenges to implementing results-based management, see the youtube clip: https:// www.youtube.com/watch?v=k949VHG3Ufs

Consequently, the organizational structure must accommodate this ongoing learning process.

SUMMARY While it is important to set objectives it is also important to determine the tasks to reach these goals as well as all the inputs (technical, material, human and financial resources) that will be needed to implement programs and tasks. Medium and long-term objectives should be set and should be able to be monitored. At the same time, objectives must be prioritized according to their importance. Objectives should be SMART: specific, measurable, attainable, realistic and time based.

Setting indicators as units of measurement for each objective (time, resources used, administrative acts, etc.) is necessary. Keep in mind that there are cases in which quantitative assessment is not possible, which makes measurement difficult and results in a need to look for alternative monitoring methods.

It is important that those involved in the system also participate in deciding which procedure to follow in order to attain results. The process design is limited by the availability of resources and by the required consistency with the organization’s objectives.

The program should be structured in such a way that it can be periodically reviewed and discussed by the organization.

Lastly, it is important to schedule regular meetings to evaluate outcomes and correct deviations.

23

Strategic Customs Planning and Management. 4th Edition

MODULE 5

UNIT III

METHODOLOGICAL TOOLS

Learning Objectives Identify public administration RBM tools.

Analyze management through a model that prioritizes results over procedures and facilitates management transparency.

Identify public administrations tools that:

24

Facilitate problem identification, prioritization and solving.

Establish a clear link between actions, outcomes and allocated resources, so that the actual cost of the goods or services produced are demonstrated and transparent to the public.

Detect inefficiencies in work practices and organizational structures.

Discuss RBM tools in detail.

Introduction Administrative tools include: Situational strategic planning to develop a strategy plan which sets out the results to achieve and defines the processes and actions to implement in order to attain these results.

The reengineering of processes, which will identify inconsistencies between existing objectives and processes.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

III.1. Strategic Planning Strategic planning involves developing a strategy plan that enables management priorities to be set in line with the results to be attained, in such a way that such results can be clearly identified.

One of the greatest difficulties in developing these plans is usually the gap between the organization’s management and the operational reality of its different elements.

Therefore, prior analyses of regulations, the organization, projects, processes, human resources, materials, and any element that can help provide the most comprehensive diagnosis possible of the organization’s current situation are necessary when developing this plan.

Together with the strategy plan are the operational plans, which develop the planned actions in order to achieve the objectives identified in the strategy plan.

Defining the results to be achieved implies designing performance indicators that can be monitored and controlled in order to measure the degree of compliance. This management model is based not only on making the most effective and efficient use of public resources, but also on strengthening mechanisms of transparency and access to information for citizens to evaluate and approve the services received, promoting the monitoring and control of public spending.

At this point it is important to note that while RBM can be a tool to promote accountability and facilitate transparency in public spending, the main function of this management model is not to monitor the actions of public managers; while it can be used for this purpose, this monitoring must be conducted through other external audit systems.

As a tool that facilitates accountability RBM provides the means to facilitate monitoring and ensure that civil servants do their jobs.

III.2. Business Process Reengineering Hammer & Champy (1995) define process reengineering as “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in performance measures such as costs, quality, service and speed.”

Business Process Reengineering (BPR) was a popular management approach among consultants in the late twentieth century, which emerged as a reaction to and/or supplement of an earlier proposal known as Business Process Improvement (BI). As management approaches, both BI and BPR lead to the just in time management and production, characteristic of Japanese firms from 1980 to 1990.

Process analysis aims to install new work practices in cases where previous processes generated duplications or inefficiencies in the development of planned activities,

25

Strategic Customs Planning and Management. 4th Edition

MODULE 5

without ignoring the integration of these processes in information systems provided for data collection and analysis to control execution efficiency.

Consequently, this process analysis (also called process reengineering) includes activities such as: analysis of current processes and the elimination of those that generate inefficiencies; redesign modified processes; monitoring of new processes and their implementation in computer systems for data collection. In addition to these activities, the analysis process should promote the training of all participants as well as the implementation of mechanisms for their monitoring and evaluation.

SUMMARY The RBM model’s main purpose is the efficient and effective allocation of public resources, placing less emphasis on the monitoring of procedures and focusing more on monitoring results, not to mention management monitoring and transparency.

26

This makes establishing performance indicators an essential component of this system. It is crucial that the plan’s progress in the intended direction can be monitored through performance indicators and incorporate mechanisms to facilitate the readjustment of established actions and processes by incorporating practices that enable the ongoing evaluation of each.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

UNIT IV

SYSTEM COMPONENTS

Learning Objectives Analyze the different subsystems of RBM. Provide an overview of RBM and help design a system that includes all the components needed to achieve our goals.

Study the elements related to strategic planning and budget design.

27

Introduction RBM is a complex model that is composed of various systems.

First is the management system, which includes the variables related to organization and management.

Secondly, the accountability system, which includes the commitments made by the various participants.

Third is the monitoring, control and evaluation system, which involves establishing a system of indicators and collection processes for checking the progress of projects and actions and therefore the attainment of the objectives and their relationship with the budget.

Finally, the personal development system. Developing the knowledge and skills of civil servants is essential for the system to function properly.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

IV.1. RBM System Components 1.- MANAGEMENT SYSTEM. This system includes the following subsystems: a) Strategic and operational approach This approach establishes a relationship between the problems identified by management, the underlying causes and the operations that can be implemented to avoid them, always keeping in mind the results sought.

The strategy plan will include the specific results to achieve, while actions, programs and resources for attaining the results will be reflected in the operational plan.

Returning to the trade facilitation example used throughout this module, this approach: Identifies problems: long clearance times, delays in granting release of goods, high costs of customs transactions.

Analyzes the underlying causes: indiscriminate inspection of goods, lengthy procedures for granting release.

28

Establishes the operations that can be carried out to avoid these problems: streamline methods by establishing automated programs, promote the use of software tools for data processing, establish criteria based on risk analysis to select the goods to inspect, establish different types of physical inspections, including non-intrusive inspection systems. b) Organizational architecture To achieve results it is necessary to establish an organizational structure that contributes to that end, and thus the organizational design must comply and be consistent with the strategy plan and budget.

In our example, this could be the creation of a Facilitation Committee, or the establishment of a risk analysis unit responsible for managing the available information and select the goods that must be monitored. c) Budget planning The ultimate goal of RBM is efficient resources allocation in order to fulfill objectives in terms of increased public value. The budget is an essential management tool in achieving these goals. The budget should be directed toward optimal activities that are in line with the objectives and which establish a relationship between inputs and outputs.

In this example budgetary planning will have to take into account the elements required to perform the planned tasks, such as the purchase of mobile scanners for

Strategic Customs Planning and Management. 4th Edition

MODULE 5

their use in the customs area, the acquisition of computer equipment and programs, the management of the building where goods should be taken for inspection, and staff training.

2.- ACCOUNTABILITY SYSTEM. This system includes the following subsystems: a) Institutional performance commitments These are the first link in the commitment chain and relate to the goals and objectives that the organization makes through its owner and which are reflected in the strategic approach. b) Management’s commitments to results These are the second link in the chain and refer to the commitments assumed by agency managers in terms of the results to achieve in order to meet objectives. c) Commitments to citizens It is the last link in the chain and reflects the commitment of each agency to citizens.

Through this commitment, citizens participation is encouraged and transparency in public administration is promoted.

3.- MONITORING, CONTROL AND EVALUATION SYSTEM. Monitoring, control and evaluation involves the analysis of data provided (and which have been provided by monitoring) by implementing the plan, which allows the correction of any discrepancies detected.

4.- PERSONAL DEVELOPMENT SYSTEM. Within this system it is necessary to distinguish between: a) Awareness. An appropriate organizational culture needs to be created. Moreover, employees should be aware that changes are needed to improve management. b) Training. Understood as improving knowledge, developing new skills or teaching new procedures. c) Skills. Knowing the material is not enough: employees must have a mastery of the task or real experience, which allows individuals to be correctly assigned to objectives by linking them to programs and actions. d) Incentives. Performance evaluation is carried out based on the achievement of results and not on simple tasks, which makes the application of individual compliance motivators convenient. Within this category we can include raises, productivity bonuses, the possibility of promotion or access to training courses.

In our example, numerous training activities could be created to raise the awareness of customs officers about the need and importance of trade facilitation, the impor-

29

Strategic Customs Planning and Management. 4th Edition

MODULE 5

tant role that customs can play in this respect and the issues within the national economy that may incur excessively costly customs controls. It means making customs officers aware of the shift in customs from an essentially monitoring role to a role in facilitating foreign trade.

But training should focus on more than just the awareness of customs officers. It is also necessary that the staff that performs the various customs activities is properly trained. This will require training on the use of scanners, computer operations, data analysis, risk management, etc.

IV.2. The Budget and RBM To create value the public sector is assigned financial, human and material inputs in the budget which must be used to produce public service benefits aimed at achieving the goals set by public policy.

The traditional budget emphasizes programs. The budget allocation is for the purchase of the inputs needed to execute these programs. Thus, the traditional budget provides information on inputs used by public agencies and their cost. Budgetary control checks the legality of the activities and respect for spending caps are established.

30

Unlike the previous concept, budgeting for results focuses on the results obtained with spending. The budget sets the resources to be devoted to the acquisition of inputs but also provides valuable information about the products offered by the public agency in question, how many products have been offered, how much they cost, the results obtained with these investments and, therefore, how much it has cost to achieve a particular result. Costs are identified with goals, actions and results.

A relationship between increases in budgetary spending and an increase in profit can be established through budgeting for results, which ultimately helps increase efficiency in public spending, encouraging attention on priority programs without ignoring the processes and products that should be developed to achieve the objectives. It is necessary, therefore, that the information on results is incorporated into decision-making.

Tools which use budgeting for results to achieve objectives are: strategic budget planning, physical targets and performance indicators.

IV.3. Results-Based Management and Performance Evaluation The performance evaluation is a human resources management tool which, through a systematic and regular process, enables company and government performance in meeting objectives to be managed through:

Strategic Customs Planning and Management. 4th Edition

MODULE 5

Rating of the degree to which employees contribute to the achievement of predetermined objectives.

Setting the standards required for the position held.

The introduction of the necessary measures to promote the professional and personal development of employees.

Not all RBM systems place equal importance on linking results to employee benefits.

Some authors consider that associating compensation with objectives negatively affects the process of setting results in a participatory way. However, other authors maintain that completely separating results from compensation hampers the implementation of a RBM system. However, it seems to be a widespread idea that it is not desirable to establish results-based compensation until the system is operating satisfactorily.

The link between pay and meeting objectives can be accomplished through a salary concept that supplements the normal salary.

The Productivity Bonus The productivity bonus can be defined as additional compensation intended to reward outstanding performance, extraordinary activity and the interest and initiative with which the employee performs his or her work. Productivity must be valued according to objective circumstances directly related to job performance and the achievement of assigned results and in the corresponding program.

The bonus is a way to encourage and motivate staff to more effectively manage the tax system.

Productivity Bonus Characteristics It rewards outstanding performance, activity and dedication and the interest or initiatives with which jobs are performed.

It requires the accreditation of an improvement in results.

The total amount cannot exceed a percentage of the total cost of the program and agency staff and is determined in the annual budget law.

Amounts received by each civil servant is made public to other agency civil servant and union representatives.

31

Strategic Customs Planning and Management. 4th Edition

MODULE 5

SUMMARY RBM is based on the strategic and operational approach, upon which all the different subsystems rely. Essentially, possible deviations are detected through monitoring and the organization can act accordingly.

However, this approach should consider that the human factor, transparent management, proper training and a well-implemented motivation guarantee the success of a RBM system.

32

Strategic Customs Planning and Management. 4th Edition

MODULE 5

UNIT V

THE SPANISH EXPERIENCE

Learning Objectives Analyze a case study.

Supplement the theoretical study with practical applications.

Study the system used in Spain. Specifically, two issues on which the Spanish Tax Agency (AEAT) has based its strategic planning in recent years will be discussed: results-based management in the AEAT and the analysis of the strategic objectives of the Spanish Customs Agency.

Introduction Like any other public administration, the AEAT should direct its actions towards internal elements such as citizen services, monitoring of results, effectiveness, efficiency, participation and quality of service, oriented toward a modern administration and a leader in citizen satisfaction.

The Agency’s Strategy Plan, which deals with human resource activities, stresses the important role that modern staff evaluation systems play as tools with a great capacity to improve the organization by acting directly on the people’s behavior.

The commitment to carry out the development of new staff evaluation systems are made in order to achieve the goal of the commitment to increase the organization’s efficiency, effectiveness and quality through its staff.

33

Strategic Customs Planning and Management. 4th Edition

MODULE 5

V.1. Results-Based Management in the AEAT Law 31/1990 of the State Budget for 1991 establishes the AEAT’s mission and entrusts the agency with the effective implementation of the state and customs system, as well as those resources from other public administrations or the European Union whose management is conferred by law or agreement.

The Tax Agency’s two main strategic lines of action are: Taxpayer assistance in meeting their tax obligations and The fight against fraud.

These strategic guidelines should be directly linked to the Tax Agency’s objective, which is none other than encouraging taxpayers’ voluntary compliance with tax obligations.

As a result, planning tools must be designed to: Improve the collection process.

Promote research activities and combat the most sophisticated forms of fraud.

Promote coordination between areas.

34

Reduce costs associated with the taxpayers’ fulfillment of tax obligations.

In addition, planning must take into account other features which do not specifically implement national tax and customs system but that the Tax Agency is entrusted with by the Customs and Excise Department, such as the application of EC regulatory approval for foreign traffic goods, trade in protected species, environmental protection, gun control, etc.

Planning is a necessary function that enables a complex organization like the Tax Agency to achieve the set objectives.

As discussed throughout this module, planning serves to help the organization establish strategies, actions and goals.

In terms of strategic planning and operational planning, the AEAT carries out these tasks through the Tax Fraud Prevention Plan in the first case and through the Millennium Plan, that is, the Tax Control Plan, in the second. These plans are supported by the Central Services Commitments and Initiatives Document, which establishes the objectives in terms of projects and commitments, with different members of the organization, with other administrations and institutions and with citizens.

The Commitments and Initiatives Documents includes strategies like the following: 1. Facilitation of the relationship with the taxpayer through electronic means.

2. Adoption of an electronic reporting system.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

3. Improvement in information system efficiency and security.

4. Development of business continuity plan for the AEAT. 5. Improvements in the processes to prevent and combat fraud.

6. Comprehensive rating of taxpayers according to their defaults and risks.

7. Strategic focus of HR management.

8. Reengineering of performance evaluation systems.

9. Reduction of administrative burdens.

10. Large business forum. Study the creation of SME and intermediary forums.

11. Social responsibility.

12. Actions involving groups.

13. Transversality and coordination between areas.

14. Comprehensive management of innovative projects.

On the other hand, software tools have been developed to measure performance and to continuously monitor deviations; there is a clear link between results and the Agency’s budget and staff salaries, without neglecting the identification of responsibilities in line with a functional classification of key tax control results.

The objectives of these RBM systems at the AEAT can be summarized in the following points: The adaption of the organization to new realities, learning from the mistakes and successes of a range of recent experiences and adopting a new model of public management focused on the achievement of corporate objectives that serve the general interest.

The use of new technologies to design suitable programs and actions to professionally comply with the tasks entrusted to customs.

Adherence to ethical values ​​such as commitment to public service, honesty, good faith, transparency and thoroughness in managing public resources and the greater emphasis placed on public interest over private interest.

The implementation of monitoring, measurement and control systems to ensure correct monitoring, decision making and adaptation to changes required by external activity or the application of standards set by international bodies and treaties.

The training of civil servants to allow their adaptation to changing tasks, addressing performance gaps, supporting professional growth and addressing organizational changes.

35

Strategic Customs Planning and Management. 4th Edition

MODULE 5

V.2. RBM in the Spanish Customs Service The Spanish Customs Service has conducted a strategic analysis of its role as a twenty-first century customs authority, and while the basis of a tax agency’s activity is collection, for customs authorities this interest has evolved to occupy an important role in protection, which should also be aligned with the facilitation of foreign trade.

It became necessary to redefine customs objectives and align the agency’s structure to the new mission, establishing a strategy plan to fulfill that mission.

Strategic customs objectives: 1. Encourage voluntary compliance with the rules which govern foreign trade, protecting the country from the smuggling of goods and customs tax evasion through the systematic application of a risk management model.

2. Continually generate, evaluate, update and raise awareness of customs regulations to make them available to the participants in foreign trade and to facilitate voluntary compliance with customs requirements.

3. Simplify, automate and integrate new information technologies in key customs processes to facilitate international trade.

36

4. Generate relevant foreign trade information and make it available in a timely manner to both the national community and other foreign trade-related entities.

The need to align this dual facilitation and monitoring role of customs has led to the introduction of the concept of risk management in strategic planning.

Notwithstanding that discussed in previous sections, Tax Agency planning should take into account other features that are not strictly related to the implementation of the national tax and customs system, including those tasks entrusted to it by the Customs and Excise Department, such as the application of EC regulatory approval for foreign traffic goods, trade in protected species, environmental protection, gun control, etc.

Therefore, together with the role of monitoring and investigating tax and customs fraud, the guidelines of the Annual Customs and Tax Control Plan include specific customs controls such as: Controls of subsidies for the export of agricultural products.

Nationwide reinforcement of the figure of Authorized Economic Operator (AEO).

Controls to ensure the safety of freight traffic and the protection of consumers in relation to imported goods.

To this end, measures to improve the monitoring of the import and export of certain goods subject to additional controls are stressed (dual-use technologies, fauna, flora, drug precursors); ensure the security of the supply chain and promote cooperation activities with other administrative bodies in health controls, consumer protection and intellectual property.

Strategic Customs Planning and Management. 4th Edition

MODULE 5

SUMMARY The fact that the AEAT has been based on objectives-based planning since it was created has facilitated the existence of an objectives-based culture. There is a relationship between the Tax Agency’s objectives and mission, emphasizing the achievement of results through the staff’s involvement in performance, the support of new technologies and the design of indicators which place a strong emphasis on stability.

All of these elements, together with the support of new technologies, enables the ongoing monitoring of results, feedback from the information obtained and facilitates the year-to-year comparison of the degree to which results are achieved.

37

Strategic Customs Planning and Management. 4th Edition

MODULE 5

References Canadian International Development Agency (CIDA), 2000, RBM Handbook on Developing Results Chains: The Basics of RBM as Applied to 100 Project Examples, CIDA Results-Based Management Division, December.

Drucker, P. F. (1993). Managing for results. Harper Collins.

Mayne, J. (2007), ‘Challenges and Lessons in Implementing Results-Based Management’, Evaluation, Vol. 13, No. 1, pp. 87-109.

38

Source: Results-Based Management Division Canadian International Development Agency (CIDA), 2000

Strategic Customs Planning and Management. 4th Edition MODULE 5

Annex

39

40

Source: Results-Based Management Division Canadian International Development Agency (CIDA), 2000

Strategic Customs Planning and Management. 4th Edition MODULE 5

Source: Results-Based Management Division Canadian International Development Agency (CIDA), 2000

Strategic Customs Planning and Management. 4th Edition MODULE 5

41

42

Source: Results-Based Management Division Canadian International Development Agency (CIDA), 2000

Strategic Customs Planning and Management. 4th Edition MODULE 5

Source: Results-Based Management Division Canadian International Development Agency (CIDA), 2000

Strategic Customs Planning and Management. 4th Edition MODULE 5

43