Make the Investment --
Make a Difference

Notes for an Address by
Mel Cappe
Clerk of the Privy Council and Secretary to the Cabinet

to the 
Association of Professional Executives

Ottawa, Ontario
June 9, 1999

Check Against Delivery

Introduction

As you know, I have been in the job now for some four and a half months. So, I'm an expert! In fact, I'll take my time before I define precisely my agenda. Those of you who came here expecting to hear me tell you what I am going to do will be disappointed. I could tell you what I'm going to do, or I could tell you what I believe in. I choose the latter.

This is the first time I have had an opportunity as Clerk to talk to a large number of executives from all departments. And I am pleased to be here. As you know, I have participated in the Association of Professional Executives' symposium often. I've done it because I think you are an important audience. The Public Service of Canada depends on strong, thoughtful leadership and APEX is a positive force for that.

Let me start by telling you what I am going to talk about this morning. I will describe a bit of what I think the Public Service has to address in terms of government policy challenges. And then, I will address some of the management challenges I think we will face. These may seem like two disjointed subjects, material for two different speeches. But in fact, for me, the essence of the message here today is that it is all related. And, it's all about the role of the Public Service.

My message to you today is that leadership counts. I want to engage you personally in one of the most fascinating and important challenges you will ever face as a manager -- the challenge of building the Public Service of the future. Each of us can make a difference. Your individual management choices will make a significant difference in how we take this great institution we call the Public Service of Canada into the new millennium. And if leadership counts, then your staff count too. You have an important role to play in nurturing their leadership potential.

This conference is about making an investment, and making a difference. I want you to help me make a difference. I firmly believe that a professional, non-partisan and representative public service matters. It matters to the future competitiveness of Canada's economy and the quality of life of its citizens, to the sustaining Canadian values of fairness and compassion, and to Canada's ability to stay at the top of the United Nations' Human Development Index. We have an opportunity to shape our future like never before. So as I provide you with my thoughts today, I want you to think about what you can do to show leadership and make the Public Service better, and thus to make Canada a better place.

Some Reflections on Being Clerk

Let me tell you a story. A few weeks ago, I met with a group of 20 interesting leaders from the private sector, academia and the voluntary sector. I told them about my job as Clerk, Secretary to the Cabinet and Head of the Public Service. And I shared with them some of the challenges of being Clerk and Secretary. The President and CEO of a major financial institution said that I had it all wrong. He told me that my most important job was Head of the Public Service of Canada. He suggested that if I do the Head of the Public Service job well, the others would be fine. He was right. (This was particularly interesting coming from the CEO of a major financial institution.)

So when I say that we can't separate policy from management, I have this chap in mind. Meeting the policy agenda means meeting the people agenda. As Head of the Public Service, the most important thing I can do is focus on the people of the institution. And that is because people matter; people make a difference. Each of us making an individual investment and making a difference is the key to a strong Public Service and is fundamental to a strong Canada.

A Values-Based Public Service

In order to address the policy work of the Public Service, I want to begin by talking about the role of a values-based public service. Everything we do as managers is judged by our employees. So if we want to lead them effectively, we have to start with values. Many of you by now may have heard me talk about the four categories of values in John Tait's Values and Ethics Task Force Report. I talk about these values because they are what distinguishes the Public Service from any other institution in Canada.

First are our democratic values. In this Westminster-style parliamentary democracy, it's important to distinguish between the role of public servants and of politicians. When ministers take political decisions, they should feel good about it. That's what they get elected for and that's what they're held accountable for. The challenge for us is recognizing the role we play in contrast to the role they play. Having a professional, non-partisan and representative public service is absolutely essential, and we have to reflect the public interest in providing ministers with our advice.

This leads me to the second category: professional values. We owe it to Canadians to give our best professional non-partisan advice to ministers -- without fear; to be professional in the way we deliver programs; and to work horizontally and collaboratively with our colleagues in provinces, in other departments and in other sectors. The third category is ethical values. These are questions of integrity, honesty and probity and they go almost without saying. You almost don't have to talk about them, except you do.

Most important, the fourth category of values has to do with supporting people. The most important thing we can do is to take care of our people. With proper motivation, they will carry the day. People values -- showing respect for the individual, respect for the balance of their private lives versus their work life -- these are things we all have to do for ourselves and for our staff. Those of you who have travelled know that you can't always count on a non-corrupt public service in other countries, and you know that the behavior and comportment of a public service in large measure mirrors the values of the society as well. We are a reflection of Canadian values and we have to be leaders in manifesting them.

What does it mean to be a leader in a values-based public service? It means translating these values into what we do every day in our workplace. How we manifest these values is the true test of leadership. It means respecting the rule of law and what it means to serve in the public interest. It means providing clear, honest and complete advice on the matters put before us; striving for excellence -- developing innovative and creative solutions; respecting people, their ideas, and their differences; bringing out the best in each employee -- their full leadership potential; and leading by example. But there is one big proviso. If our employees don't trust what they see in our values through our behavior, they won't connect with us or follow us to the end of the block. We must earn their respect.

The Government's Agenda

We have some very important policy and program issues ahead of us that will test our leadership and put our values into practice. We meet today at the beginning of the second half of the government's mandate -- a very important point in time. And as Canada moves into a new millennium, we see real questions about where this country is going. These are questions that Canadians expect their government to take a lead role in resolving, to ensure a strong, united Canada. The route that has brought us here today is the route that we've travelled collectively. Since 1993 we have seen one fundamental change after another. You all remember the 1993 government reorganization, and then Program Review I and II. That was quite a dramatic challenge. It was painful; it was personal; yet it was something that public servants seized as an opportunity.

First of all, the government set the objective of putting its financial house in order. It has used a number of fundamental measures to achieve this goal. These include eliminating the deficit, paying down the debt, promoting economic growth, and introducing structural reforms to social programs. These measures have been instrumental in giving the government the means to rise to the challenges Canada faces in the future.

Second, we addressed federal-provincial relations. This is not always an easy task, but I believe we can be very pleased with the level of co-operation we have managed to achieve with the provinces. We have made great strides with respect to devolution of powers, and we have limited the federal spending power. We have forged successful partnerships with the provinces, mainly on social issues such as youth, child poverty and persons with disabilities, but also on the Agreement on Internal Trade. Given that these priority areas are ones of shared responsibilities, in order to make real progress, the government will have to continue to build partnerships with provinces, communities, and the voluntary sector, as well as individual Canadians.

The Social Union Framework Agreement is a powerful tool for building such partnerships because it provides strong principles and a framework which supports collaboration. The challenge over the next few years will be to make this agreement real and to demonstrate progress in addressing the needs of Canadians. We've recognized interdependencies between social and economic policy, between domestic and foreign policies, and between federal and provincial governments. Constructive and creative management of overlap and of integration are essential.

Think about it for a second. In the last few years we have successfully restructured the entire federal departmental apparatus; eliminated a $42 billion deficit; downsized the Public Service in a compassionate fashion, spending the time to ensure that any departure was handled with respect; re-established collective bargaining after years of pay freezes; and dramatically improved the way we deal with provinces in the funding and delivery of program services. This was done through the amazing commitment of the Public Service and with your leadership.

If you go back to the 1997 Speech from the Throne, you will see that much of this has been achieved through the three C's - common purpose, citizen focus and collaboration. The common purpose among Canadians is the foundation of national unity. It is what makes us Canadian. There is a citizen focus in the efforts that we've made over the last number of years to bring governments together and to improve the quality of service we provide to citizens. Finally, the way we do it is important. We do it through collaboration.

So enough of the past. What about the future? This is an opportunity to seize the millennium, to show leadership in shaping the future of our nation. Let me give you a general overview of challenges facing the government in the medium term. Keeping in mind there are a number of underlying forces, the challenges are globalization and North American integration, changing demographics, technological change and the information revolution, and environmental pressures.

We see three broad areas for action emerging; all are intertwined. The first is promoting and strengthening economic growth, including productivity. No matter how it is measured, no matter who we compare ourselves to, the challenge of the future is to ensure continuous improvement and to position Canada competitively in a global economy. The second is meeting the social challenges that we face; in particular, maintaining social inclusion in light of the changing face of Canada (Demographic change, the fact that we are an ageing society, is just one example.) Third is positioning Canada in the world. What role to play and how. Your deputy ministers will be working on these issues over the course of the next year. On a parallel track is the next phase of the Policy Research Initiative, which will continue to focus on the really long-term and to position us to answer the questions that we and our successors will face in the year 2010.

Success in this climate and for this agenda is not simply defined by what we do, but also by how we do it. It will all come down to leadership. You will each have a role to play in meeting these challenges. What will count are the values and objectives you bring to the table and the teamwork, networks and collaboration you're willing to engage in. We must align all the forces at work and all the levers we have as policy instruments to work collaboratively, horizontally across departments, with other governments and in partnership with the private and the voluntary sectors. The other thing that's unique about this kind of an agenda is that there isn't really an endpoint. There's always something more that we have to do, given the kind of dynamic change that I've spoken of.

Management Challenges

Achieving these things and taking action on the policy agenda that I have just described doesn't happen without the commitment of a highly professional and motivated public service -- people with the skills and experience and enthusiasm to deal with these complex policy issues. As leaders we can't take for granted that this will be the case in five to 10 years. We are facing the most critical challenge we may have ever faced, the very real possibility that we may not have the people in place over the coming years to fulfil the government's mandate to Canadians. The other day, Peter Harder, Secretary of the Treasury Board, said words to the effect that renewing the Public Service may be the real challenge of the new millennium.

You've read the articles and you've seen the numbers. This is an issue facing every sector of our society, domestically and internationally. Competition for people will be fierce, and already is, in some areas. In this post-industrial era, the economy and our institutions are becoming knowledge-based. Over the last 10 years, our work force has shifted from 60 per cent blue collar to 60 per cent knowledge workers. This is significant. Scott Serson, President-designate of the Public Service Commission, said recently that the battle of the next five years will be over the knowledge worker. And when we look at the issues affecting the knowledge workers of the Public Service, you and your staff, we see some serious problems.

First, you've made it clear that if something isn't done to improve the workplace, to better meet the needs and career aspirations of employees at all levels, to look at the tough issues of workload and balance, then many of you and many of your staff want to consider other options. Some of our colleagues have left already. Others are actively looking.

Second is demographics, the changing face of Canada and the changing face of the Public Service. By 2005, more than half of us in this room will be eligible to retire and it's the same for many of our employees. And if we look around, we can't deny that we are not representative of Canadian society. We have to do something fast to make the Public Service an attractive option for potential recruits. Otherwise, who will help us do all of this work? We need to use this chance strategically to right our demographic imbalances.

Third, several professions are already suffering from acute skills shortages. We don't have enough people in place, and competition is stiff for scarce resources in science and technology, informatics, and technical and aviation inspection.

La Relève - A Strong Foundation for Renewal

Let me pause here for a moment. I've just laid out some very significant challenges. Are we starting from scratch? No, not even close. Let's not forget that we really have come a long way and accomplished a lot to renew the Public Service, to make it a better place. Let's not sell ourselves short. La Relève has given us a strong foundation upon which to build. It has engaged people at all levels right across the country in renewing this great institution. We are doing a lot and have done a lot. I'm sure that, in one capacity or another, every one of you in this room has made a contribution. There is a tremendous energy out there and many of you are making a difference.

Just think of where we were just two or three short years ago. People were coping with the effects of downsizing and the constant stream of criticism levelled at the Public Service. Yet you had the courage and strength to take on a new challenge, to dedicate yourselves to renewing and rebuilding this fine institution. Many of you embraced this as an opportunity to turn the page, to bring back a sense of hope and optimism. You turned a difficult challenge into the opportunity to make a difference. For the first time in years, we were able to turn our attention to the people of the Public Service. And just look at what you have accomplished. Look at what an impact your leadership can have.

For one, La Relève action plans are alive and well in departments, functional communities and regions. This represents an incredible range of activity at all levels, right across the country. Through Learning Advisory Panels, policy and other middle managers are each developing action plans to address their unique needs. And there are Regional Councils -- agents of change, leading and building the momentum across the country. The Work force of the Future exercise (which I was personally involved in) opened up a dialogue with thousands of employees and added to the action plans. Meanwhile, Deputy Minister Champions are leading the charge on important priorities like middle managers, science and technology and, soon, the human resources community. Last but not least is APEX, which is doing important and valuable work to bring pride and recognition to the executive cadre.

These are just some of the examples of the very real difference that you -- every one of you in this room -- has made and continues to make. Never underestimate the impact your leadership can have and how collectively, through a series of actions and initiatives large and small, you can make it really add up. And for those who say that La Relève is just for executives, or just for high flyers, I say that you've missed out on the amazing things your colleagues across Canada are doing. Leaders at all levels are making the investment and making a difference. We see it in middle managers' forums across the country.

When you treat your employees and colleagues with respect; when you coach, mentor and take an interest in the needs of your staff and others -- that is La Relève. La Relève is not just for executives: it is modernizing the way we manage human resources for everyone in the Public Service. La Relève is not just a fad or a flavour of the month; it is the renewal of the institution of the Public Service of Canada.

Recruitment and Retention

My management priorities are R and R -- not rest and relaxation, but recruitment and retention. Why? Because if we don't act now on both fronts, we are placing the Public Service at serious risk. And one thing I am sure of, if we want to focus on recruitment and to make progress on retention, we have to become the employer of choice. To do that we have to be the most attractive and appealing option for those of you who are here today. We have to have a modern and exciting workplace. And this means improving our workplace to better meet the needs of knowledge workers.

This will require each of us making investments in four areas (Make the investment -- make a difference.) We must invest in the quality and nature of the work, the work environment, our work processes, and the development of our leaders. For knowledge workers, the prospect of challenging work (the quality and nature of the work) can make all the difference when it comes to choosing an employer. We must provide exciting and meaningful work. The nature of the work we ask our staff to do must be as rewarding as we can make it. This means that we must give them the responsibilities and opportunities to make a difference. We have to give them opportunities to be creative and to contribute to the betterment of our departments and of Canada. This means providing challenging assignments, exposure to new fields, and participating in networks and exchanges. The possibilities are endless, and the Public Service can offer them all.

And we must make the Public Service a modern work environment. We have to give employees the tools they need to do the job. In a knowledge-based organization, this usually means information. We need a work environment where information is open and accessible; where hierarchy is for decision-making and not for information control, where the atmosphere is professional; where employees are encouraged to take their jobs seriously and to do a good job; and where it is natural to use teamwork. We must respect the fact that employees have private lives. We have to help them manage the balance between their work and personal lives. And we need to look at why we aren't using existing tools to improve the balance between our work and our personal life. Treasury Board Secretariat already has policies that encourage tele-work, flexible work hours, job sharing, compressed work weeks, elder care, and working at home, for example. Clearly, we need to do more to make these real options for people.

And, what about our work processes? New recruits to all kinds of organizations cite bureaucracy and process issues as their main reason for leaving. In terms of bureaucratic process, I am a bureaucrat and proud of it. But I am not bureaucratic. Substance is more important than process. We need a system where staffing can be done quickly and fairly, where merit is valued more than speed, and where efficiency matters. Many deputies and their teams have implemented programs to "break the barriers." I'm asking you, as the senior leaders of the Public Service, to cut out the red tape wherever you can do it. Don't break the law, work creatively within it. We need to look for ways to expand the latitude that everyone has to take intelligent risks, to work in innovative ways, to get results -- in ways that are consistent with our democratic values and the rule of law.

And most importantly, we need to develop leaders. We need a workplace where we naturally and continuously develop our staff, where leadership at all levels counts, and whether you are a receptionist, a file clerk or a manager, you have the opportunities to develop your skills and talents and to become a better knowledge worker. Everyone should have opportunities to develop and get the training they need. As Jocelyne Bourgon, President, Canadian Centre for Management Development, said at a human resources conference a few weeks ago, knowledge workers need lifelong learning.

The potential to use learning as a competitive edge to attract, motivate and retain good people, remains an enormous untapped advantage. Knowledge workers operating in a learning organization, with the right support and cultural milieu, can better cope with the continuous change I referred to earlier.

Taking Action

What does all of this tell us? It tell us that taking action on recruitment and retention means improving the workplace, which means becoming the employer of choice. I think we all agree that the Public Service can be an exceptional place to work. We offer challenging work in a broad diversity of fields. This is made even more rewarding by the prospect of mobility through exchanges and assignments -- a diverse and richly rewarding career. Public servants can get the satisfaction of making a difference, and we are a unique national employer.

But, if we want to get and keep our share of the best knowledge workers, we have to seriously reflect on what we are offering to a generation that has choices and is quite prepared to exercise them. People with good skills and leadership abilities are in a sellers' market today. Students are the focus of intense competition for the "best and the brightest," and it begins very early. Major companies now target potential high-performance students early in their university and college years. Through strategic and effective use of co-op placements, summer employment and more, they build awareness and loyalty. Our competition is not just from the private sector, either. Provinces face the same demographic and recruitment challenge that we do and will be competing with us for the same scarce resources.

Pay issues alone are not going to be the ticket. We cannot outbid for talent; we cannot offer the $50,000 signing bonuses that some private sector employers can. But we need to make sure we are doing everything we can in this area. Treasury Board Secretariat has already negotiated tailored benefits for some groups. You will have a crucial role in this process. When the time comes to visit the campuses, we should all be there. I plan to be. We will be talking about the Public Service and the rewards it offers to those who take the challenge.

And, we face real retention problems, especially in certain highly competitive functional communities and professions. We hear anecdotal evidence about graduates who joined, looked around them, and decided they had nothing to gain by staying. (The Linda Duxbury Study, the APEX Health Survey, and other studies reveal that many of you are seriously considering your own options.)

What can you do, as leaders? You can show leadership by protecting the merit principle. There is a big difference between protecting merit and protecting the merit system we have in place. Keep the principles and find better ways of meeting them. If there are barriers in place to protecting merit, they need to go. We need to develop a modern, flexible and merit-based human resources system. Each and everyone of us absolutely must take a hard look and ask if the barriers we have in place are actually required. Or are they simply rules we impose on ourselves? If we don't do something now about how we handle human resources, we will directly undermine our ability to recruit and retain.

You can show leadership by supporting our human resources management community as it rebuilds itself to provide the strategically focused and professional service that is so crucial to our renewal as an institution and that is needed to teach and advise us as managers. You can also show leadership by improving the quality of management in the Public Service. It is within our collective means as managers, right at the level of each work unit. All of us, in departments and at the centre, can make a difference for employees in the workplace.

That is why, as I speak, we are undertaking the first comprehensive survey of public servants on a wide variety of matters related to the quality of our work environment. You all know we took some heat on this with editorials telling us the time to study is over and the time to act is now. Frankly we do need this study to give us a baseline from which we can measure progress, develop a work plan, and build public awareness of these issues. We need to fine-tune and adjust departmental La Relève plans and our corporate agenda.

I filled out my survey questionnaire as soon as I got it and I ask you to encourage all of your staff and colleagues to do the same. Use the results of the employee survey to make a difference in your own unit. It will add up across the Public Service. Don't wait for the centre to tell you what to do. Seize the opportunity and make a difference today. It involves making those small investments that I spoke about earlier -- making a difference and showing leadership.

If you're out there doing innovative work and providing good, solid advice to government, if you're bringing new approaches to risk-taking and policy development, and if you're showing leadership in management practices and sound values, then I'm confident we can offer a workplace that absolutely attracts people who are just as good or maybe even better than we are. I think it's a great challenge and I look forward to working with you to meet it. Start making the investment -- and make a difference.

Conclusion

It all comes back to my message to you today: leadership counts. Make the investment -- make a difference by addressing the four areas I've talked about: the quality and nature of the work, the work environment, our work processes, and, most important, developing leaders at all levels. I know that the scope and dimensions of the issues I have talked about may seem immense, but the demographic challenge we face has the seeds of a great opportunity for the Public Service and everyone in it. We have a great story to tell young people about the challenges facing Canada and the world, and about the role that the Public Service of Canada has played in the past and will continue to play in the future.

Next week is National Public Service Week. It provides a great opportunity to celebrate our achievements and to celebrate the public servants across the country who, every day, provide services to Canadians. Some 56 of their stories are chronicled in a magazine called A Day in the Life of the Public Service, prepared by the Leadership Network. I urge you to get a copy next week. You will be impressed and proud.

My goal is simple. I intend to tell the Prime Minister that the Public Service of Canada is up to the challenges of the 21st century and that, in meeting them, we are keeping Canada strong. In turn, I challenge you to do everything in your power to create the conditions you and your staff need to grow and learn and be creative. I challenge you to show leadership in recruiting and welcoming new people to the Public Service. Push the centre hard to give you the support you need, and make a difference in your individual work unit. Make this a workplace of choice.

I am committed to helping you in any way I can, and I am prepared to make the investment of my time, of my effort, of my influence. Collectively, we can make the Public Service the employer of choice again. It can be a place where you and your employees feel valued and where individual and collective leadership, creativity, innovation and excellence are nurtured and rewarded. It can be the kind of place you would want your children to work, the kind of place that I and many of you found when we joined.

Thanks to you Jocelyne Bourgon and to APEX for this opportunity. I wish you a successful symposium.