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Following is the speech by the Chief Secretary for Administration, Mr Henry Tang, at the Public Sector Reform Conference 2008 this afternoon (March 27):
Distinguished Speakers, Honourable Guests, ladies and gentlemen,
Good afternoon, and welcome to this Public Sector Reform Conference on the next generation of public services.
The Next Generation of Public Services
Over the next day-and-a-half we will be talking about the challenges and opportunities inherent in the daily management and delivery of public services. As the Chief Executive said in his Policy Address we should: "...identify what our people need, so as to provide them with more efficient and convenient services...". We all know that this is easier said than done. He only has to say it, we have to do it. The challenges facing us is really quite daunting. Not least of these is that we need to remember always that people don't want to be treated simply as customers of services. They are citizens who wish to express their needs and preferences through voice, not just market choice. As we think about how to make the next generation of public services a success, quality is not our only goal: equality in access and outcomes must remain our core objectives.
In the past, public services have tended to develop around the convenience of the service provider. Today this is not acceptable. Today we must be proactive, seek out what the public needs and be prepared to provide services whenever and wherever they are needed. I was pleased by a recent advertisement by the Inland Revenue Department that said: "Open your eTax account now to enjoy personalised on-line tax services anytime, anywhere." That's the right approach. Technology has created the potential to give access to government services in real time and through multiple channels: it has enabled governments worldwide to adopt more citizen-centric approaches to public service delivery. Hong Kong's public service must daily seek to implement best practice in this area to better serve our citizens.
Before I go any further, I would like to first to try a little experiment with this new audience voting system. The Efficiency Unit has commissioned three public opinion surveys over the past year. I want to ask you two of the same questions.
First. Looking at the services provided by the Hong Kong Government, how would you rate the overall service level of the Government? Please rate it on a 10-point scale where 1 is unacceptable and 10 is outstanding. Please press a number between 1 and 10 on your handset now.
Second question. Looking at the services provided by the private sector in Hong Kong, how would you rate its overall service level? Think in terms of large private companies that provide similar customer services as the government, for example banks, airlines, telecommunications companies, and bus companies. Please rate the private sector on a 10-point scale where 1 is unacceptable and 10 is outstanding. Please press a number between 1 and 10 on your handset now.
In the public opinion survey conducted last month the public gave government services a score of 6.8. In the same survey the public gave the private sector a score of 6.7. I never doubted the result for one second!
Now let's take a look at how you voted on the same questions. You gave an average score to Government services of 7.2. And you gave an average score to the private sector of 7.6. I always think that Hong Kong people are very, very modest. We tend to be quite mean on ourselves, which is good actually, because we always want to drive and strive to do better. I accepted the result as a virtue of our personality. We do have that sense of urgency and strive for excellence.
This is an interesting result. Whether we like it or not, most people in Hong Kong do compare the Government with the private sector. The surveys found that the Government performs best in terms of fairness and competence of staff, and least well in terms of timely provision of service and in response time. The overall performance rating of the Government is comparable to that of private sector organisations – in fact slightly better in the eyes of the public. But, private sector service was rated significantly higher in all individual categories except for fair application and vetting procedures. This is what we could describe as the collective wisdom of the public.
Another interesting finding was that the public rated government more highly when asked about a specific use of our services rather than when asked about a general perception of our services. We scored 7.3 out of 10, which is not too bad! I believe that you have all done a good job. You all deserve a pat on the back. So, I want you all to pat the back of the person next to you, and say "well done".
One thing these results show is that the small but continuous improvements we make in public service delivery do have a positive impact on the way that people perceive our performance. To maintain this positive perception we must continue to improve at least in parallel with developments in the private sector.
Despite the encouraging results of the surveys, there is much that we can learn from the private sector, such as more advanced customer service practices. Most of you will know how successful and innovative the Cirque de Soleil is. Its President and CEO Daniel Lamarre says: "We embrace pressure. We don't think we are invincible. Complacency is something we fight every day." Cirque de Soleil runs a programme, which it calls "4,000 pairs of ears and eyes" that encourages employees to tell the management about anything they consider "special". It also meets around 10 million customers a year to listen to what they have to say. The key message: we need to listen to our customers, but equally if not more importantly, we also need to listen carefully to our own staff.
There are some fundamental differences, of course, between the public and private sectors. The public sector is not profit driven, although we try to provide value for money, sometimes on commercial principles. Greater market share is not always our goal – we would like to reduce the number of unemployed and those in jail, for example; and, many of our services have little or no competition. These are three areas that can breed complacency in any business. Toyota's President Katusaki Watanabe points out that long-lasting success is elusive. "The moment we let our guard down, the fall could come very fast," he said. To survive in the private sector, you can’t stand still. The same applies to us. The world is overtaking us if we stand still.
Today's theme – "The Next Generation of Public Services" – means two things to me. Firstly, higher levels of service will be expected by citizens in the future. Secondly, we need to tailor our services for the "next generation" of customers. Demographics tell us that we will have more elderly people to cater for, while at the same time meet the demands of the so-called "Generation Y" – those who are most IT savvy, and who expect new ways of engaging with the Government. In a nutshell, we need to anticipate whom we will be serving, and how to serve them better in this Internet age.
You may wonder why I focus on the next generation of public services instead of the present generation. I believe that if we start providing for the future now, the benefits will be immediate. If we have a good idea of where we want to be in 20 years, we can set off in the right direction, rather than taking a roundabout route.
Let me give you an example. Since the end of 2004 the Immigration Department has been working hard to introduce automated passenger clearance systems – e-Channels – for local residents leaving or entering Hong Kong. These systems, which work with the Smart ID cards, have now been installed at every entry and exit point in Hong Kong. The system has also been extended to include automated vehicle clearance at all vehicular control points. Last December it was introduced for cross-boundary primary school students at Lo Wu.
That's why you don't see images of a packed departure hall at Lo Wu on television anymore. But this is a collective memory that we will not regret its disappearance. This is a vivid example of how, with the right leadership and vision, supported by technology, we can demonstrate our innovation and determination to meet the needs of individuals.
Opportunities and Challenges
Meeting citizens' demands and expectations for better services is a big challenge. We must balance the needs of the individual customer with the best interests of the city as a whole. Government services must not only be efficient and effective in their own right; they must also, where appropriate, contribute to the wider economy. Only when Hong Kong Inc succeeds in attracting investment, and is competitive against other cities in terms of financial and other services, can we resource the improvements that we want to provide.
I would like to draw attention to the Hong Kong General Chamber of Commerce's Business Prospects Survey 2007. Hong Kong scored highly – 9 points out of 10 – for business strengths including civil service efficiency, legal and regulatory framework, tax regime and physical infrastructure. But we scored much less favourably on the cost of doing business. So, Hong Kong as a whole has to raise service and productivity levels in order to offset our high costs. In other words, we must be vigilant about how we add value, and continue to do so in facing the challenges posed by globalization.
There are some encouraging examples of the successful balancing of customer service with good government. At the end of 2006, the Government Economist led the 'Be the Smart Regulator' programme, which was sponsored by the Chief Executive. This programme has 29 participating bureaus and departments. Improvements have been achieved by encouraging our licensing officers to think more like business people. We have made a step-change in the transparency, efficiency and customer-friendliness of many of our licensing systems and procedures.
Last year, a new element was introduced to the programme – the Licence Application Tracking Facility, or ATF. Three such ATFs have now been implemented to help the Food and Environmental Hygiene Department, Social Welfare Department and Home Affairs Department to track their licensing activities. More importantly, the ATFs can also be opened up to licence applicants to track their application status online. What we are trying to do is to regulate intelligently, with careful consideration for the impact and costs imposed on both government and businesses. Many of you here today are responsible for some form of regulation. I urge you to ask yourselves, do we still need to regulate? Are the current regulations, enforcement and control measures up-to-date and appropriate? If not, can we do away with them? Can application and compliance be made simpler, cheaper, quicker? I know what’s in your mind. Don’t worry about losing your job if you do away with the licence, because government is short-handed, and you will do something else equally useful and productive.
Public Service Delivery Through Teamwork
Improvement in service delivery is not a job for just one man or even a single department. By and large, most departments have already implemented most of the significant improvements that they can deliver on their own. The next phase of big service delivery improvements will come when departments work hand-in-hand to consolidate services and streamline processes. I believe that the tax-payers expect the entire civil service to work to improve our public service delivery in a coordinated, seamless manner. In short, all parts should be working as a whole.
I believe we must move much faster, much more deeply, into an integrated government, designing joined-up services around citizens’ needs and convenience. One of the most common complaints I hear about Government is the silo mentality. This can take many forms. Common ones include a refusal to own and to act on a complaint where there are grey areas over the division of labour among departments. We see this in the papers with annoying regularity. Frankly, neither the public, nor I, are concerned about the nuances of such departmental responsibilities. The public's expectation is for government, as a whole, to take charge, and solve the problem. The litmus test should not be whether it is one department's responsibility, or another's. The litmus test should be whether something needs to be done to resolve the complaint or problem and how fast we can solve it. I am sure we have all had frustrating experiences in dealing with bureaucracy, both as a customer and as a civil servant. So, put yourself in the position of the person on the other side of the counter. No falling between the cracks. Go that extra mile.
So how are we doing so far? Well, it's a mixed bag. Let me highlight a couple of examples of successful efforts in joined-up services with the buy-in of the private sector. The Hospital Authority is piloting a project to share electronic patient records to provide a continuum of care for patients, cut costs by minimising repeated investigations, and reduce medical errors.
This system is also the backbone of a new scheme launched in February to reduce the time public hospital patients wait for cataract surgery. The Government has earmarked HK$40 million for the Hospital Authority to implement this programme and 70 private ophthalmologists have already signed up.
Our police force is also piloting some innovative and exciting cross-discipline initiatives. For example, in the New Territories South Region the Police have adopted a multi-agency approach to juvenile delinquency, involving psychologists, educators and social workers. We also do well in our emergency response co-ordination. When serious incidents occur, such as major hill fires, AFCD, Fire Services, Civil Aid Services, and Government Flying Services have demonstrated time and again their seamless and effective co-ordination. I applaud and encourage such efforts.
These are areas in which we are trying – and I think succeeding – in giving our citizens, both individuals and businesses, more of what they want. But there are clearly many more opportunities yet to be explored or exploited. If you want to make this Chief Secretary a happy man, then apply the same superb problem solving approach to the mundane as you do to the dramatic! And I would be extremely grateful. Just to give a real-life example: Changing to Smart ID card service has been complimented by many of my personal friends. “Friendly and efficient” is their comment. I always thanked them for the compliment, and vow we will continue to work hard to deliver friendly and efficient service.
Concluding Remarks
Ladies and gentlemen, we are not lacking in ideas or initiatives. We understand our obligation to provide better and more tailor-made customer services. We also appreciate that we must govern for the benefit of Hong Kong as a whole. We are fortunate to have committed and talented people throughout the public sector, many of whom are working diligently on initiatives to achieve these objectives.
Continuing to improve our performance depends on overcoming the challenges I have already outlined. Let me sum up by saying that:
- We must be citizen-centric and embrace the "citizen's perspective" as our guiding principle;
- We must focus on the right initiatives;
- We need to regulate smarter, and only to the extent necessary;
- We must partner with, and learn from, the private sector where appropriate;
- We must engage directly with citizens, and
- We must aspire to building seamless, joined-up services.
All these require strong leadership. The Chief Executive has set out clearly what he wants to achieve during his term of office. The Financial Secretary has provided the resources necessary. It is now up to us to deliver. The Principal Officials, myself included, will provide the necessary leadership and priority setting within our portfolios. But much of it, ladies and gentlemen, is up to you. We should all be leaders. I urge you to take the lead and rise to this challenge.
Finally, I know that we won't solve these challenges in a one-and-a-half day conference. But we must acknowledge them, and encourage the development and implementation of customised solutions to meet them. I urge all of you to be bold and innovative in your work. Yes, we have procedures and ways of doing things that we have sometimes followed for many years. But they are guidelines. They are intended to assist, not to detract from further progress being made. If you have good ideas, bring them forward, break the mould. And remember that it takes courage to change. Only chickens shy away from it.
I would like to wish the 2008 Public Sector Reform conference every success. Thank you.
Ends/Thursday, March 27, 2008
Issued at HKT 19:01
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