Improving the Management Efficiency of the Meso-level of

Implementation of State Programs

J. F. Alizada

Department of Economic Security and Risk Management, Financial University under the Government of the Russian

Federation, Moscow

Keywords: Management efficiency, risk-based approach, national projects, state programs, macro-and micro-level of

management.

Abstract: The importance of the risk management system in the implementation of state programs and national projects

in the conditions of increasing instability of the environment is very high. This determines the importance of

the formed management system as mature, flexible, adaptive, based on modern methods and principles.

Performance management based on a risk-based approach allows you to solve a number of tasks to eliminate

omissions and shortcomings that hinder the implementation of Programs. The purpose of such management

is to establish a link between the effectiveness of risk management and the effectiveness of Program

implementation. Achieving this goal requires consistent implementation of the measures justified in this work,

and includes the choice of the movement strategy on the part of the top management of the program, ways

and methods of achieving the desired goal, as well as constant monitoring of activities in the implementation

of state programs and national projects.

1 INTRODUCTION

The change in the structure and personnel

composition of the responsible persons for the

implementation of national projects and state

programs, which took place at the beginning of 2020,

is caused by very specific reasons. According to the

data of the control and coordinating structures (the

Accounting Chamber, the Federal Treasury, the

Ministry of Finance, the Ministry of Economic

Development, regional ministries), in 2019, the

regions spent less than 70% of the annual plan on

national projects. According to the Treasury, for

example, 731.3 billion rubles were spent on national

projects, according to the Ministry of Finance, a

somewhat different amount of 760 billion rubles,

which in any case cannot satisfy either the pace or the

quality and structure of completed projects.

Further, major omissions and shortcomings

were identified when checking the implementation of

state projects and national programs (hereinafter

referred to as Programs) that have signs of corruption

and fraud. The Prosecutor General's Office

established in the same year 2019 about 2.5 thousand

violations in the implementation of national projects

(especially in the provision of state support, the

construction of social infrastructure, public

procurement procedures, etc.). The Prosecutor

General's Office considers another problem to be the

already noted low disbursement of allocated funds

both for national projects in general and for individual

measures (for example, this applies to programs of

preferential lending to small businesses, support for

the agro-industrial complex, etc.). These problems

determined the relevance of the work: improving the

management efficiency of the meso-level

implementation of state programs and national

projects.

2 THE CONTENT AND RESULTS

OF THE STUDY

Government regulatory measures of a managerial

nature, including those aimed at reducing the risks of

implementing Program activities, outline a number of

urgent steps that will be presented and illustrated by

the example of the program for creating accessibility

conditions for disabled people and other low-mobility

groups of the population. These measures include the

following:

190

Alizada, J.

Improving the Management Efﬁciency of the Meso-level of Implementation of State Programs.

DOI: 10.5220/0010696400003169

In Proceedings of the International Scientiﬁc-Practical Conference "Ensuring the Stability and Security of Socio-Economic Systems: Overcoming the Threats of the Crisis Space" (SES 2021),

pages 190-195

ISBN: 978-989-758-546-3

- real use of the advantages of strategic

management by all participants. The co-executors of

the Programs also, in accordance with the program

objectives, under the guidance of the state control

structure, develop long-term strategies to ensure the

formation of accessibility conditions for the disabled

and other low-mobility groups of the population in

the relevant areas of regulatory legal regulation and

ensure the control of their implementation;

- attention to the quality and content of the

practice of applying legal management methods (the

composition of regulatory legal acts of the federal and

regional levels of increasing the responsibility of

execution), contributing to the systematic solution of

the Program's tasks at all levels of the executive

branch;

- determining the optimal effective organizational

structure for managing the implementation of the

Program (composition, levels of authority and

responsibility, control and oversight resources,

coordination and consistency of the links at all levels

of program implementation management).

The most important element of the Program

implementation is the relationship between the levels

of planning, implementation, monitoring, refinement

and adjustment of the Program. It is at this stage that

the possible threats and risks of implementing the

meso - and micro-level Program are taken into

account and the need for corrective responses of

management bodies and structures should be

determined.

As some evidence of the effectiveness of

organizational measures, we can see a significant

renewal of the composition of the Government in

January 2020, the subsequent strengthening of the

staff of the executive authorities of the regions, the

consolidation of personally responsible employees

not only for the general areas of program

implementation, but also for each of their programs

separately.

The adoption of corrective (optimizing) executive

decisions within the framework of the Programs is

carried out taking into account the systematic

formalized monitoring reporting information

received from the Program co - executors of different

levels (from micro-to mega-level). This is an

additional important and very necessary element of

the execution control system, which reduces

additional risks in the implementation of Programs.

In general, this should lead to the creation of a

national system for monitoring the implementation of

Programs and the implementation of strategic goals

for the development of the country's economy.

As an urgent task, there is a need to improve the

mechanism and tools for monitoring and supervising

the implementation of state programs and national

projects. The formation and use of a modern control

system at all stages of the Program implementation is

an integral part of its implementation mechanism.

A special place is given to increasing the

responsibility of the Program performers during its

implementation. It can be noted that the adopted

documents until recently did not specify the

performer in terms of authority, responsibility,

available resources, risk assessment of execution, etc.

To somehow correct this provision, it is proposed to

solve the tasks and assign the Performer of each of the

levels of the function:

1) - manages the implementation of the Program,

coordinates the activities of the co-executors of

the Program, executive authorities of the

subjects of the Russian Federation, local self-

government bodies and public organizations of

persons with disabilities;

2) - develops, within its competence, the

regulatory legal acts necessary for the

implementation of the Program;

3) - analyzes and forms proposals for the rational

use of the Program's financial resources;

4) - prepares, in accordance with the established

procedure, a program implementation plan

containing a list of Program activities,

including those of departmental target

programs, indicating the timing of their

implementation, budget allocations, as well as

information on expenditures from other

sources;

5) - specifies the mechanism of implementation of

the Program and the amount of costs for the

implementation of its activities within the

approved limits of budget obligations;

6) - prepares an annual report on the progress of

implementation and on the effectiveness

assessment. The Program together with the co-

executors until March 1 of the year following

the reporting year, and sends it to the

Government of the Russian Federation, the

Ministry of Economic Development of the

Russian Federation and the Ministry of Finance

of the Russian Federation;

7) - checks the progress of the Program

implementation by the Program's co-executors-

federal executive authorities, state authorities

of the constituent entities of the Russian

Federation and public organizations of persons

with disabilities;

Improving the Management Efﬁciency of the Meso-level of Implementation of State Programs

191

8) - organizes the electronic publication of

information about the progress and results of

the Program implementation (content support

for a specialized website);

9) - interacts with the mass media on the issues of

coverage of the implementation of the

Program's activities.

The functions of co-executors are also defined,

which in some projects even only at the macro level

up to 10-12 structures or more. They are also assigned

the tasks of implementing the programs and are

responsible for performing the following functions:

1) adopt, within their competence, the normative

legal acts necessary for the implementation of

the Program;

2) summarize and analyze the results of the

Program implementation on a quarterly basis

and submit relevant reports to the responsible

Program executor, including on the use of

budget funds;

3) before February 1 of the year following the

reporting year, prepare and send to the

responsible executive of the Program an annual

report on the progress of implementation and

on the evaluation of the effectiveness of the

Program's activities;

4) organize control over the implementation of the

Program's activities in relation to the objects

under their jurisdiction, including those located

on the territory of the subjects of the Russian

Federation.

Legal support for the implementation of Programs

and national projects was also criticized. The

implementation of the Program's activities is carried

out in accordance with the legislation of the Russian

Federation, but their compliance requires increased

supervisory work. To ensure the control and

independent evaluation of the Program, a

Coordinating Council (with control functions) is

created, formed from representatives of state

authorities at all levels and public structures

(stakeholders).

The chairman of the coordination council is

usually the deputy head of the federal executive

authority-the responsible executive of the Program.

The rules of procedure of the coordination council

and its personnel are approved by the order of the

head of the federal executive body-the responsible

Program executor.

The Coordinating Council performs the following

functions:

1) - interdepartmental coordination of the

activities of the federal executive bodies-co-

executors for the implementation of the

Program;

1) consideration of the topics of the Program's

activities;

2) - consideration and examination of programs of

the subjects of the Russian Federation

developed on the basis of the terms of reference

of the pilot project on working out the

formation of an accessible environment at the

level of the subject of the Russian Federation;

3) - consideration and examination of the

programs of the subjects of the Russian

Federation submitted for participation in the

Program, developed on the basis of the sample

program of the subject of the Russian

Federation and providing for the

implementation by the subjects of the Russian

Federation of the main targets and indicators

that allow achieving the values of the targets

and indicators of the Program;

4) - preparation of recommendations for finalizing

the programs of the subjects of the Russian

Federation, developed on the basis of the

sample program of the subject of the Russian

Federation;

5) - review of materials on the implementation of

the Program's activities and provide

recommendations for their clarification, as well

as review of the results of the Program's

implementation;

6) - identification of scientific, technical and

organizational problems during the

implementation of the Program and

development of proposals for their solution;

- preparation of the annual report on the

implementation of the Program;

8) - maintaining quarterly reports on the

implementation of Program activities;

9) - analysis of quarterly reports of co-executors

of the Program;

10) - assessment of the socio-economic efficiency

of the results of the Program implementation.

The importance of the risk management system in

the implementation of Programs and national projects

in the context of increasing instability of the

environment is very high. This determines the

importance of the formed management system as

mature, flexible, adaptive, based on modern methods

and principles. Including using a risk-based approach.

The risk of the absence of expected Program

outcomes is typical in the implementation of long-

term and complex programs, and its regulation is

aimed at planning work, in particular, the formation

of an implementation plan containing a list of

SES 2021 - INTERNATIONAL SCIENTIFIC-PRACTICAL CONFERENCE "ENSURING THE STABILITY AND SECURITY OF

SOCIO - ECONOMIC SYSTEMS: OVERCOMING THE THREATS OF THE CRISIS SPACE"

192

Program activities, including those of departmental

target programs, indicating the timing of their

implementation, budget allocations, as well as

information on expenditures from other sources. It is

possible to notice insufficient methodological

elaboration of risk-analytical management, since

probabilistic characteristics, critical and threshold

indicators, the necessity and sufficiency of the

management resource, and the effectiveness of its use

are not evaluated.

In addition, in the process of regulating the

implementation of the federal target program by the

federal executive authorities and the executive

authorities of the constituent entities of the Russian

Federation, it is necessary to:

1) - develop measures to support organizations of

private forms of ownership that provide

services in a format accessible to disabled

people and other low-mobility groups of the

population;

2) - develop a plan for the gradual formation of

conditions for the availability of facilities and

services for the disabled and other low-

mobility groups of the population in order to

avoid unjustified excessive costs on the part of

the private sector of the economy;

3) - develop a mechanism that will allow the

greatest extent to ensure compliance with the

requirements of accessibility of the living

environment for the disabled and other low-

mobility groups of the population (including

the requirements of technical regulations, state

standards, etc.), with the involvement of

representatives of public associations of

disabled people;

4) - provide a mechanism for timely adjustment of

the plan for the gradual formation of conditions

for the availability of facilities and services for

the disabled and other low-mobility groups of

the population, taking into account the views of

public associations.

The co-executors of the Program ensure relevance

in the planning and implementation of the Program

activities, prevent duplication and organize the

dissemination of the results obtained by individual

co-executors. To implement these functions, co-

executors also need to determine the corridor of

authority and responsibility, available resources for

the implementation of Programs.

Most organizations are not able to quantify their

exposure to risk, and do not have a common platform

for comparative assessment of their exposure to risk

(risk exposure) and the need for them (risk appetite).

The need for risk is the risk that an organization is

willing to take in order to generate the expected

profit.

Thus, the goal is not to exclude all risks

altogether, but to find a reasonable balance between

exposure to risks and the need for them. Of the

numerous types and groups of risks, the key ones, in

our opinion, are operational risks at the level of

interaction from macro-to micro-execution. They

allow to find a balance in the execution of Programs

between the organization's exposure to risks and the

need for them. This is exactly the area where

organizations can take significant risks when

implementing Programs. Operational risks include

both the potential benefits of the risks taken and the

lost opportunities due to the risks not taken. This

raises many questions: whether it is necessary to enter

a market in which the organization is not yet

represented; whether it is worth offering an

innovative product or service without being sure of

the size of the market or the reaction of competitors;

how much should we rely on technology to automate

a particular process; whether suppliers will ensure the

delivery of materials or services in a timely manner

and of proper quality?

3 CONCLUSION AND

SUGGESTIONS

In order to answer all these questions, the

organization first needs to assess its exposure to risks

and its willingness to manage them.

Performance management based on risk-based

management allows to solve a number of important

management tasks listed earlier. The goal is to

establish a link between the effectiveness of risk

management and the effectiveness of Program

implementation. Currently, performance

management does not include risk management as a

mandatory element of mature management. But it

must be done. Achieving this goal requires the

consistent implementation of four steps and includes

the choice of the direction of movement on the part of

the company's top management and the ways and

methods of achieving the desired goal, as well as

constant monitoring of activities during the

movement towards this goal.

We characterize each of these stages.

1. Risk management. At this stage, the company's

managers need to assess the market and the

environment. This process involves the

identification of key risk indicators (KRI).

Their identification is absolutely necessary to

Improving the Management Efﬁciency of the Meso-level of Implementation of State Programs

193

understand the underlying causes of risks.

Working with these indicators requires

predictive capabilities. They are necessary in

order that, constantly observing discrepancies

between the predicted and actually expected

values of KRI, the organization can take

actions before, and not after the occurrence of

this or that event.

2. Strategy and management of established utility

(value). The key component of the performance

management methodology includes the

following components: the organization's

vision of its activities and role, the

organization's mission and its strategic plan.

This allows managers to communicate with

their managers and employees and involve

them in the implementation of their plans.

Based on the strategic plan, the organization

collectively identifies several of the most

important and feasible projects and selects key

processes that will help achieve multiple

strategic goals that are causally related in the

strategic plan. At this stage, design and

innovation projects are born.

3. Investment assessment. You should always

keep in mind the limited resources, both

financial and material. This helps to choose

them carefully. This means that all subsequent

incremental costs or investments should be

considered as contributing to a project that

requires an acceptable return on investment,

including capital cost recovery. Spending

limits are everywhere. Consumer value and

shareholder value are not equivalent; there is

also no positive correlation between them.

Rather, there is a trade-off between these

concepts with an optimal balance that

companies are trying to achieve. This is why

the annual budget and the inevitable rolling

spending forecast must necessarily be linked to

the strategy of senior managers, although this

connection is usually absent.

4. Optimization of efficiency. At this final stage,

all the components of the methodological

portfolio of performance management are

brought together to ensure functioning. Among

others, these methodologies include quality

management, organization resource planning,

marketing management, supply chain

management, the use of functional cost analysis

in management, and other advanced

management technologies. Since the main

projects and selected key processes that the

corporation should effectively implement will

already be selected at stage 3, at this stage, a

balanced scorecard will become a mechanism

that contributes to the development of the

organization. It has a key role to play, since it

includes pre-defined Key Performance

Indicators (KPI). In addition, the balanced

scorecard includes instrumental measurements

of deviations of real KPI values from the

planned ones, as well as analysis with the

possibility of going deeper into the data and

alarms with color indication. Evaluation panels

provide feedback on operational performance.

This means that any employee who has access

to information about how they personally

participate in the implementation of the senior

management strategy can receive a daily

answer to the question about the effectiveness

of their work in a particular important area. A

repetitive sequence of internal steps, such as

improvement, alignment, and secondary

monitoring, allows employees to work together

to continuously adjust their activities,

priorities, and resource allocation to achieve

the strategic goals identified in stage 2.

These four steps are a closed cycle in which the

risks are dynamically reassessed and the strategy is

adjusted accordingly.

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