Canada’s federal government employs hundreds of thousands of people, yet far too often, success is measured by inputs rather than results. Hours worked, meetings attended, or forms completed dominate performance metrics, while citizens experience delays, inconsistent service, and bureaucratic frustration. Prime Minister Mark Carney has an opportunity to change this by embracing outcomes-based management and coupling it with a planned reduction of the federal workforce—a strategy that improves efficiency without undermining service delivery.

The case for outcomes-based management
Currently, federal management emphasizes process compliance over actual impact. Staff are assessed on whether they followed procedures, logged sufficient hours, or completed internal forms. While accountability is important, focusing on inputs rather than outputs fosters risk aversion, discourages initiative, and prioritizes process over public value.

Outcomes-based management flips this paradigm. Departments and employees are held accountable for tangible results: timeliness, accuracy, citizen satisfaction, and measurable program goals. Performance evaluation becomes tied to impact rather than paperwork. Managers are empowered to allocate resources strategically, encourage innovation, and remove obstacles that slow delivery. Employees gain clarity on expectations, flexibility in execution, and motivation to improve services.

This approach is widely recognized internationally as best practice in public administration. Governments that adopt outcomes-focused management report faster service delivery, higher citizen satisfaction, and better use of limited resources. It is a tool for effectiveness as much as efficiency.

Planned workforce reduction: 5% annually
Outcomes-based management alone does not shrink government, but it creates the environment to do so responsibly. With clearer accountability for results, the government can reduce headcount without impairing services. A planned 5% annual reduction over five years, achieved through retirements, attrition, and more selective hiring, offers a predictable, sustainable path to a smaller, more focused public service.

No mass layoffs are necessary. Instead, positions are left unfilled where feasible, and recruitment is limited to essential roles. Over five years, the workforce contracts by approximately 23%, freeing funds for high-priority programs while maintaining core services. At the end of the cycle, a full review assesses outcomes: delivery quality, service metrics, and costs. Adjustments can be made if reductions have inadvertently affected citizens’ experience.

Synergy with the other reforms
This plan works hand-in-hand with the other two reforms proposed: eliminating internal cost recovery and adopting a single pay scale with one bargaining agent. With fewer staff and a streamlined compensation system, management gains greater clarity and control. Removing internal billing and administrative overhead frees staff to focus on outcomes, while a unified pay scale ensures fair and consistent compensation as the workforce shrinks. Together, these reforms create a coherent, accountable, and modern public service.

Benefits for Canadians
Outcomes-based management and planned workforce reduction offer multiple benefits:
1. Efficiency gains: Staff focus on work that delivers measurable results rather than administrative juggling.
2. Cost savings: Attrition-based reductions lower salary and benefits expenditures without disruptive layoffs.
3. Transparency: Clear metrics demonstrate value to taxpayers, building public trust.
4. Resilience and innovation: Departments adapt faster, encouraging problem-solving and continuous improvement.

Political and administrative feasibility
Canada has successfully experimented with elements of outcomes-based management in programs such as the Treasury Board’s Results-Based Management Framework and departmental performance agreements. These initiatives demonstrate that the federal bureaucracy can shift focus from inputs to results if given clear mandates and strong leadership. Coupled with a predictable downsizing plan, the government can modernize staffing while maintaining accountability and service quality.

A smarter, results-driven public service
Prime Minister Carney has the opportunity to reshape Ottawa’s culture. Moving from input-focused bureaucracy to outcomes-based management, and pairing it with a responsible workforce reduction, creates a public service that delivers more for less. Citizens experience faster, more reliable services; employees understand expectations and have clarity in their roles; and the government maximizes value from every dollar spent.

Together with eliminating internal cost recovery and adopting a single pay scale, this reform completes a trio of policies that make the federal government smaller, smarter, and more accountable. Canadians deserve a public service focused not on paperwork, but on results that matter. This is the path to a modern, efficient, and effective Ottawa.