Integrating economic statistics in the Netherlands Bert Kroese

The chain of economic statistics (old) Short-term turn-over statistics  Quarterly turnover  annual turnover Quarterly National Accounts  Quarterly GDP-growth  annual GDP-growth Production statistics National Accounts

Changing the chain: main goals Quality improvement smaller revisions better consistency between statistics consistent treatment large enterprises wrt globalization Higher efficiency (target -20%) Lower response burden Easier to maintain software programs

Main changes (1): better use of administrative sources Quarterly VAT-data for small and medium enterprises (700,000 units) Surveys for largest 8,500 units Improved linking with administrative sources by introduction of new version of statistical unit

Main changes (2): more methodological coherence Quarterly turnover data based on pratically complete coverage, used for… Growth estimates STS, QNA and first annual estimates NA Level estimates SBS and final annual growth estimates NA Monthly estimates based on model to extrapolate quarterly data using monthly survey data for largest enterprises. Made consistent with quarterly estimates. Special organisational unit for consistent data on the largest 350 enterprises (8500 units)

Main changes (3): streamlining processes Focussing resources Interactive editing only after top-downanalysis More extensive use of automatic editing routines Manual profiling only for largest enterprises Top-down analysis and better tools for QNA and NA (e.g. automated balancing) Better use of reference data from other processes Better communication between processes on analysis and editing decisions. No double work Improved chain management

Necessary conditions Redesign of basic processes in one integrated approach, using Business Architecture A well co-ordinated transition by managing individual projects as part of an overall programme`. Professional projectmanagement A re-organisation to adapt the structure to the changes in processes Creating a “Chain culture”

Business Architecture Process A Process B Steady state 1 Steady state 2 Process step Steady state 3 Exchange data between processes Steady state 2 Implement new module an important part of the programme is the architecture. Instead of ”stovepipes” for each individual statistic, the architecture defines several “steady states” in the processes, in which the statistical data have a well-defined status. The first steady state is of course raw data, the final one publications data The statistical processes are split up in process steps, that take the data from one steady state to the next one. This architecture facilitates the use of data from one process in another one Process step Steady state 3 8 Statistic Netherlands 8

Lesson learned Business Architecture is crucial and provides the coherence between the individual processes the possibility of a stepwise implementation a logical breakdown of redesign projects the outline of a new organisational structure The 80/20-rule: focussing on what matters most on the final result leads to a lot of efficiency Using VAT-data creates the possibility of an integral quarterly turnover dataset that links all estimates together

Visualisation of business architecture Coherent; modular; flexible; room for diversity

Chain management Use of business register for all statistics involved Explicit agreements on deliveries in the chain Co-ordinated approach to changes in units, correction of errors et cetera Practical procedures for handling incidents as well as major changes Chain management group with representatives from all units for communication, monitoring and co-ordination, with a chain manager to support this process

Creating a chain culture Branch working groups with experts from all departments involved Workshops to discuss various aspects of the chain process with the workfloor Chain management game Explicit and transparant feedback en feedforward Open communication

Main new processes and flows Business register Consistency largest enterprises Direct estimates turnover Production statistics (SBS) Integration: National Accounts Integration: Quarterly NA

Production statistics NA Large enterprises Production statistics BusinessRegister QNA Data exchange points Turnover Data collection The new chain of economic statistics in a nutshell