Foundation Framework for Treasury Board Policies

3. Treasury Board policy instruments

3.1 Purpose of policy instruments

There are a variety of circumstances that lead to the creation of a Treasury Board management or administrative policy instrument. Similarly, policy instruments may serve one or more general purposes:

• Establish and strengthen a consistent management approach across government;
• Manage significant risks to the operations of all departments; and
• Reflect and put into action public service values such as probity, prudence, equity and transparency.

Collectively, Treasury Board's policy instruments convey an integrated approach to the discipline of public sector management. Policy instruments provide clear direction to departments on how to orient their activities toward the achievement of results, attract and retain qualified people, embed a citizen focus in the delivery of programs and services, be good stewards of public resources and assets, and assist ministers in their accountability to Parliament.

In providing this direction, policy instruments strike a balance that respects the individual authorities and responsibilities of ministers and deputies, ensures a minimum standard of management excellence is maintained in the government as a whole, and fosters a working environment that encourages departments to be responsive and innovative. 

Treasury Board revises its policy instruments from time to time in consultation with departments. This ongoing effort takes into consideration the risks and benefits associated with a particular issue and a proposed course of action. One of the goals of this effort is to maintain a suite of policy instruments that adequately responds to the perceived risks of the time in a cost-effective manner. Another goal is to continuously improve upon several recurring themes in public sector management: how to manage in a way that preserves public trust, enhances efficiency and effectiveness, and ensures transparency and accountability.

3.2 Design and structure

As stated above, ministers, deputy heads and Treasury Board each have a role in public sector management. However, Treasury Board's role is unique because, through mandatory policy instruments, it sets the parameters within which all ministers and deputy heads must exercise the various authorities assigned to their position. Therefore, mandatory policy instruments must clearly express each player's responsibilities and respect existing lines of accountability.

With this goal in mind, Treasury Board is guided by four principles of effective accountability when developing or updating policy instruments.  First, the roles, responsibilities and performance expectations for all players are clearly described. Second, performance expectations are balanced with the capacity (skills and resources) of all players to deliver. Third, credible and timely information is reported to demonstrate policy compliance and good management performance. This information is also essential to the continuous improvement of public sector management. And finally, there is a process in place to oversee compliance and management performance and to administer consequences, good or bad, related to compliance and the performance achieved. In addition to influencing policy development, these four principles are essential to the application of policy instruments within departments, which is discussed later in this document.

Treasury Board issues a range of policy instruments that are designed to establish mandatory requirements (rules) or voluntary best practices. There are three types of mandatory instruments (policies, directives and standards) and two voluntary instruments (guidelines and tools). Table 1 provides further definition. The decision to put in place a mandatory versus a voluntary instrument depends on the issue being addressed, the management objective, and whether a lack of consistency across government has the potential to create inequities, inefficiencies or risks that would jeapordize the achievement of the policy objective.

Policies are directed at deputy heads and are designed to achieve certain high-level management objectives. Each policy describes specific and measurable results that help departments and Treasury Board to assess whether the policy objective has been achieved. Policies also set out specific requirements or actions that deputy heads must take to achieve the intended results and, ultimately, the policy objective. The other policy instruments are, for the most part, directedat managers and specialists in administrative functions (explain the how).

3.3   Scope

The scope of Treasury Board's policy instruments covers a range of administrative or program-related functions. The headings under which most policy instruments have been grouped reflect their historical importance, how the scope of administrative activities has evolved and adapted to address technological innovations, changes in management practice, and increasing expectations of Canadians. As stated previously, Treasury Board adapts its policies to the changing environment and so the scope and functional areas may change over time. Most of the policy instruments fall under one of these functional headings:

1. financial
2. people (human resources)
3. information and technology stewardship
4. assets and acquired services
5. enterprise service delivery
6. compensation of employees
7. official languages

Each of these policy areas has a higher-level policy framework that outlines the rationale and principles upon which the policy instruments are based.  There are also several policies in other functional areas that do not require a separate policy framework because this Foundation Framework and the policies themselves provide the underlying principles and rationale. These policies include the subjects of internal audit, evaluation, communications and federal identity, security, learning, and a management, resources and results structure.

Table 1 – Structure and description of Treasury Board policy instruments