Public Service Delivery: Procedure Improvement

Public service delivery management components: first is Procedure. This component in many case of public service delivery management in Indonesia is weak. Not well designed.

In many cases, like in water supply delivery management, in services for SME, Health sector especially are still need to be improved. In water supply for example, there are still some difficulties for people to enroll to be a new customer of the service. While the existing customers in many cases difficult to complain if something happen with quality and quantity of the water, trouble with water meter, record, or miscalculation of the bill.

Service delivery management procedure actually could be improved through some options, i.e.: abolish, combine, simplify, and delegate/decentralized (ACSD).
Abolish, means identify any process that actually doesn’t have any useful function, sometime it just to give a job for the staff.
Combine, means we can identify is there any process that can be combined with other. Maybe it is just a small task, or because of change in the system, so that the procedure will be more efficient and faster if some of the task are combined.
Simplify, means the whole system of procedure should be simplified if possible, or simplify the detail of task. For example, by introducing a computerized method, the whole procedure could be reviewed since some functions are replaced by the computer software.
Next service delivery management components are: personnel, policy and organization. [Risfan Munir, Senior Public Service Delivery Management Specialist, ex Local Governance Support Program, LGSP-USAID]

Service Delivery Management - Kaizen Way

Change Management in the public service delivery management practice, in Indonesia or any country, need to be consider to its human resources aspects and its organization cultures. In could be happen in the water supply, SME support, health, education services, etc.

There are two ways of change: revolution or evolution. Innovation follows by radical change. Or step by step continuous improvement. However, if we try to change by ourselves, any drastical change usually will be difficult. It is because our mind will reject something that threat our comformity. In our brain there is an 'amygdala' that work to protect or remind us from situation that will threat us (our life). It is a warning for "fight or flight" action. It is useful to protect us from wild anymal or something that threat our life, but it is not good for our plan for change.

Fortunately there is a good news. Kaizen is method for change without pain. Kaizen is a continuous improvement. Dr. Robert Maurer, a psycho-therapist use 'kaizen' that originally for improvement in manufacturing, to used in personal and group improvement.

Kaizen or continuous process improvement could be an approach for bureaucratic reform. Especially in the improvement of service delivery process, where civil servant who opeate and manage it tend to resist against change.

In the situation where incentive or reward for improvement effort is not clear. People tend keep status quo, any change that make stress and worry, tend to be rejected. So that, a silent or elegant approach in public service delivery management could be appropriate for them.

It could be implemented in public service delivery management improvement in the water supply, SME support, health, education, solid waste management, etc.(Risfan Munir, Senior Public Service Management Specialist, ex LGSP)

Public Service Delivery: Water Crises in Jakarta

This week issue of public service delivery management is about water crises in Jakarta, Indonesia. The main problem is: raw water. Supply of raw water is not enough. As reported by Republika (6-5-2010), for western part of Jakarta, supply of raw water from two water-treatment plants (IPA1, IPA2) were decreased. Parallel case for eastern part of the city, raw water to be treat in IPA Buaran its quality was polluted, due to the rate of ammonium (1.7 ppm, while tolerable standard is 0.5 ppm). Due to these raw water problem of quantity and quality, around 40% of customer of water supply in Jakarta are suffered.

Reaction of the consumers (Republika, 7-5-2010), they will issue a class action to the authority concerning the problem. They have discussed its possibility with some NGOs and law office. As mentioned by YLKI (Indonesian Consumer Advocate Foundation), consumers have right for doing that action based on Law no 8/1999.

The operators already response actually to the crises. In some areas they send water by mobile water thanks. It is just for emergency response. For long term the authority thought about looking alternative sources of raw water, since one of the main problem shortage of raw water.

Jakarta water supply is too dependent on two main sources: Kanal Barat Citarum, and Tangerang. (Harian Tempo, 7-5-2010). For the long term, Jakarta municipality just thought about another source of raw water: water recycle. But it is still too early to talk about.

The other problems are: electricity which sometimes also shutdown; maintenance of water supply infrastructures; quick emergency response and public relation to explain the problems to the people or consumers. Another public relation tasks is to explain to the people about organization aspect, especially about relation between DKI Jakarta with water supply operators, so that consumer will know to express their complaints. Water supply role is vital for public service in urban area, so that public service delivery management for water supply system need a strategic concern from the local leader. [Risfan Munir, Senior Public Service Management Specialist]

Supply-chain Planning in Regional Development

One of the weaknesses in public service delivery management is its supply-chain planning. Regional development need more concern to the supply-chain aspect of various commodity related to production and consumption. Traditionally, regional development planners has analyzed network pattern of infrastructure, transportation flow. However only few of them who concern with logistic supply-chain planning.

Some of the problems in regional development are related to "broken chain" of supply systems. We can take examples in the energy supply system. In oil system, in the region who have rich of oil deposit, they don't have any oil refinery in their vicinities. And the practice they (maybe national/ corporate policy) tend to sell them as raw materials.

Need for cash in hand is one of the reason why we tend to raw materials, rather then try to develop processing system, or down-stream of the production. Added value in the production systems are limited, because of this tendency.

Another big irony is the fact that PLN, the state owned electrical power producer, have been suffered by limited and expensive raw materials. While we export our gas, coal with long term trading contract, the PLN, as a backbone of the national energy supply, cannot get gas, coal and other raw materials in reasonable price. It is a case of a broken supply-chain.

Another case is in the palm oil production system. While we know that we have environmental problem with over expansion of oil palm plantation, we also have limitation in the down-stream processing system.

The oposite of those case is limitation in the upstream producers. In the case of ICT, automotive and some others, we have lack of components. Except steel, maybe mny of these components are footlose industry, for example microchips. The extreme one is some of micro components made of wood are imported from the Chine, while their raw materials were from Indonesia.

Once again we should concern about supply chain (logistic) planning in our regional development. It is not just for distribution of consumer goods (it is also important) but logistic system and how to complete the system from up-stream to the end of down-stream. Otherwise we will always live in the peripheral of the world, who sell raw materials and cheap labor.

Integrated supply-chain system will also need for inter-regional relationship. It is also something that still difficult to be arranged, espcially in the current transition of decentralization era.[Risfan Munir]

Public Service Delivery Improvement for SME Support

Public service delivery management improvement for Small-Medium Enterprises support during early phase of the Local Governance Support Program, are include: establishing SME business service center (clinic); developing partnership of local economic development stakeholders; and microfinance service management capacity building. These are some good practice notes during the early phase of the program in six provinces in Indonesia.

1. Business Clinics

Business clinic is a service center/unit as part of service delivery system to deliver various services for (group) of SME. Normally its services include: (a) business consultation; (b) business and market information; (c) business advocacy; (d) training.

Business clinic is needed because SME need comprehensive supports, while each LG unit (Dinas) tends to serve partially based on its sector. In some districts/cities they created forum of LG units to serve SME and LED comprehensively, but the forum is not operating unit. So that, they still need an operating unit that can serve SME or group of SME directly with a comprehensive services. And, they decide to develop business clinic.

There are some jurisdictions with good progress in develop business clinic, such as: Kota Tebing Tinggi, called Klibi (Klinik Bisnis). Up to now Klibi is ready to operate and deliver service to SME or group of SME. After series of workshops to convince any parties, to get commitments, mayor decisions/decrees, recruitment process, finally they get the Klibi.

While in Palopo regency, Pematang Siantar city, business clinics which already in the final process of preparation and waiting for decision of mayor or district leaders are Palopo and D’best. And the others are still in the preparation workshop to develop organization, personnel, procedure, and its related policy.

Beside that, district of Jeneponto in South Sulawesi develops a business clinic that specifically for micro enterprises. Jeneponto is one of the poorest districts in the province, to accelerate the poverty alleviation program, SME empowerment become a choice. And, the business clinic will be used as an information center (on available program and micro-enterprises condition mapping), advocacy and program coordination.

Commitment of LG units, its stakeholders (SME communities, big companies) and local leaders is contribute to better progress in business clinic development.

Desired future direction:
• Klibi in Tebing Tinggi could be a good practice that should be supported until run well, so that other clinic can learn and replicate its success. The other benchmark is “Klinik Usaha Jawa Timur” (Business Clinic of East Java province);
• A clinic is just a ‘front office’ that depend on others support, so that we have to make sure that all institutions, service providers will support what SME ask to the clinic;
• Promotion or marketing of the clinic is needed, not only to potential clients (SME groups), but also to the supporting institution;
• To reach (group of) SME, the clinic also need to develop network and over-reach groups of SME all over the district area.

2. Partnerships of Local Economic Development:

Partnership forum is the other model that SME stakeholders choose. It is to response situation that need to be responded by many parties in the jurisdiction. An example is the district of Klaten, who had been suffered by earth-quake. An immediate response is needed for recovery and rehabilitation program. During the workshop, the LG and stakeholders decide to develop a partnership forum to assist SME communities to recover and rehabilitate their business.

The other jurisdictions also take partnership forum model to mobilize their stakeholder potentials. Same good examples like Kediri city, where a LED forum has achieved in linking several sectors for SME empowerment, create verification team for LG micro-finance program. District of Probolinggo is another case where its LED forum was effectively works to advocate LED and SME empowerment aspirations to be adopted in the district mid-term development plan. The forum also has been facilitating two clusters of SME, mango and furniture. Both of these cluster members are success to export their products abroad. However, adoption of the LED programs into the medium term plan has wide impact to other sector’s programs that will support SME empowerment.

Desired future direction:
• Forum effectiveness is crucial; it tends to open, with extended agenda and activities. So that, it will need more clear and focused agenda;
• The focused agenda should be clear in its output and outcomes, and its relation to the mid-term development plan.

3. Microfinance Service Management Improvement:

Micro-finance (delivery) management is another model to be chosen for SME empowerment. The objective is to promote transparency, equity and accountability in micro-finance service management. We actually not promoting LG to create any ‘credit subsidy’ for SME, however many LG do that. Our role is how to improve the management practice.

They way to do it is to create a verification team to make sure that the process of service delivery like – target group criteria, credit package design, mobilization of resources, distribution channels, and its delivery mechanism – are done well.

A good example is the city of Kediri, who had established micro-credit scheme. At least Rp 2 billon had been allocated for SME empowerment program. And, will be expanded for the next fiscal year. To do that, LG use a local bank (BPR, Bank Perkreditan Rakyat, or People’s Credit Bank) to deliver the credit to SME. Beside that, LG also use credit insurance to protect it.

District of Enrekang is another LG who deliver the micro-credit scheme. Enrekang has been trying to improve its management. And, after they meet in the SME National Workshop, they have commitment to share their experience. It is good to promote LG sharing of microfinance service management since many LG have been implementing this scheme.

Desired further direction:
• Credit schemes for SME empowerment are exist in the field – from national, provincial and local level – what we can do is to make the management transparent, equal and accountable;
• It should be clear whether a service (fund) is for business (follow market system) or a social safety-net program (social purpose).
[Risfan Munir, Public Service Management Specialist, ex Local Governanance Support Program, LGSP-USAID; and Performance Oriented Regional Management, PERFORM-USAID]

Public Service Delivery System

Public service delivery performance in Indonesia could be seen from its management components and service delivery processes. Service delivery management components include: procedure, policy, personel, organization (3PO).

While its public service delivery management include: (1) target group definition and its need assessment; (2) decision making process; (3) design of service packages; (4) distribution channels; (5) service point management; (6) over reach any distributed target groups.

Public service delivery management problem in Indonesia for many cases can be traced with the focus, wether its target group definition, identification, data, and aspiration well managed or not. Second, is the preparedness of their distribution channels. .... (Risfan Munir)