Change Management in Dresden Consolidation of the organisational department and ICT in a single municipal enterprise

Agenda Brief introduction to Dresden and the Dresden City Administration Framework conditions for administrative modernisation Framework conditions: Finances, personnel, demographic situation Significance of ICT Integration of organisation and information technology in EB.ITO Designated tasks since 2011 Positioning and strategic alignment: Large-scale projects for administrative modernisation Summary and outlook Linking of objectives, projects and processes

Tourism: approx. 9.8 million visitors in 2009 … a few words about Dresden Area: 328.3 km² (4th largest city in Germany after Berlin, Hamburg, Cologne) Tourism: approx. 9.8 million visitors in 2009 (with positive trend) Population in 2008: 517,052 (with positive trend, migration balance 4,375 in 2008 excess of births over deaths 732 in 2008)

… a few words about Dresden 805-year history 13 twin cities Municipal debt = 0 € Economic growth above average compared to Germany as a whole

Dresden City Council and City Administration

Agenda Brief introduction to Dresden and the Dresden City Administration Framework conditions for administrative modernisation Framework conditions: Finances, personnel, demographic situation Significance of ICT Integration of organisation and information technology in EB.ITO Designated tasks since 2011 Positioning and strategic alignment: Large-scale projects for administrative modernisation Summary and outlook Linking of objectives, projects and processes

Financial consolidation € billions in billions of Euros State financial surplus Germany Source: German Federal Statistical Office

Financial consolidation Federal state budgets           Financial consolidation Financial consolidation – structural problems, but willingness to save and budget discipline exist.

Personnel consolidation (status 2010) No savings in public sector Pay freeze 2010, 2011 Job cuts: -50,000 Recruitment stop 2010-2011 No savings in public sector Pay freeze 2010, Salary cuts: 5-15% Recruitment stop Assessment of 20,000 jobs for potential cuts, Draft concept after summer break Pay freeze 2010 Pay freeze 2009, Recruitment stop Pay freeze 2010-2012, Job cuts 2008-09: -50,000; 2010: -34,000, Refilled vacancies: 1 in 2 Salary cuts 2009: 15-50% Job cuts: -32,000 Pay freeze 2009 and 2010, Salary cuts 2009: 8% Job cuts: -10% Job cuts 2010-2014: -10,000 Pay freeze 2011, Salary cuts 2010: 5%, for ministers 15%, Refilled vacancies: 1 in 10 Pay freeze 2009, Salary cuts 2010: 25% Job cuts: -37,000 Refilled vacancies: 1 in 7 Salary cuts: 4% Pay freeze 2010-2013, Salary cuts: 5% Recruitment stop Pay freeze 2009, Salary cuts: 20% Pay freeze 2010-2013, Salary cuts for higher pay grades 2010: 5-10% Refilled vacancies: 1 in 5 Pay negotiations not until autumn, Pay freeze for federal politicians 2008-2011, Job cuts-2,900 Pay freeze 2009 and 2010 Pay freeze 2009-2012, Salary cuts 2010: 12-20% Refilled vacancies: 1 in 5 Salary cuts 2010: 15% and 13th salary Pay freeze 2010, Recruitment stop

Demographic change – Example of Saxony 5 mill. 4 mill. Current population Population forecast Time Tasks Personnel capacity Efficiency gap To close the gap between declining personnel resources and an essentially constant scope of tasks, improved administrative efficiency is imperative. By 2020, the Free State of Saxony will not only have lost 20% of its 1990 population of 5 million citizens. Variations in regional development in different parts of the state will mean that the population density will be practically halved in some regions.

The increasing significance of ICT under the existing framework conditions Organisation (processes) Information system Application system ICT Processes  Functions  Level of information processing Roles  Data  Personnel Technical resources Technical resources Human resources Level of information resources

Agenda Brief introduction to Dresden and the Dresden City Administration Framework conditions for administrative modernisation Framework conditions: Finances, personnel, demographic situation Significance of ICT Integration of organisation and information technology in EB.ITO Designated tasks since 2011 Positioning and strategic alignment: Large-scale projects for administrative modernisation Summary and outlook Linking of objectives, projects and processes

Developments since 2009 Press release on 12.01.2009 - excerpt: …In the City Department for General Administration (GB1), tasks of the Central and Personnel Office have been transferred to the municipal enterprise responsible for IT services. “The Personnel Office is to return its focus to matters of personnel development. The ever greater networking of administrative processes (eGovernment), and the ensuing need to further develop organisational structures, can be served best by integrating organisational and IT services,” says city head of department Lehmann.

Developments since 2009 Integration stage 1 (since 6/2009): In advance of legally effective amendment of the management by-laws, supervisory authority over the organisational department of the Central and Personnel Office was transferred to the director of the municipal enterprise “IT Services” with effect from 01.06.2009. Integration stage 2 (since 1/2011): Upon legally effective amendment of the management by-laws, the tasks of the organisational department passed to the municipal enterprise “IT Services”. The City Treasurer's Office was charged with corresponding amendment of the articles of association of the municipal enterprise.

Developments since 2009 City Council resolution on the new name and amended articles of association for the municipal enterprise passed on 25.11.2010. Effective from 01.01.2011 Name: “Eigenbetrieb IT- und Organisationsdienstleistungen” (EB.ITO) (English: “Municipal Enterprise for IT and Organisational Services”)

“Full-service” provider of the city's ICT needs Further development “Full-service” provider of the city's ICT needs Further development and implementation of the IT strategy Provision, operation and further development of the IT infrastructure and all information technology systems and components, including the data network and user service Provision, administration and realisation of IT processes Implementation of IT projects Provision, operation and further development of the telecommunications infrastructure IT training services

Expansion for organisational consulting and process design Further development Expansion for organisational consulting and process design Expertises and recommendations for interdepartmental and interdisciplinary task planning and task assessment Consulting to determine personnel requirements at municipal level, salary grading and proposals on creation of a personnel plan in the context of budget planning for the City of Dresden Decision preparation with regard to task distribution, task structuring, work organisation and process streamlining Organisational consulting Staff suggestion scheme

Important administrative modernisation projects New quality of the municipal enterprise EB.ITO: Leading role in the implementation of large-scale municipal projects aimed at administrative modernisation In 2011 and the years to come: Optimisation of municipal procurement, including eTenders Optimisation of municipal property management, including LIGIS Introduction of double-entry accounting, including electronic workflow Introduction of electronic staff identification (eMI), including electronic signatures Implementation of D115 in Dresden, including cooperation with DREWAG (public utility), surrounding communities and internal organisational effects

Agenda Brief introduction to Dresden and the Dresden City Administration Framework conditions for administrative modernisation Framework conditions: Finances, personnel, demographic situation Significance of ICT Integration of organisation and information technology in EB.ITO Designated tasks since 2011 Positioning and strategic alignment: Large-scale projects for administrative modernisation Summary and outlook Linking of objectives, projects and processes

Summary EB.ITO has assumed a clear position as a service provider with a detailed, demand-oriented range of services. Success criterion: Clear client-provider structure Corporate independence as a municipal enterprise permits demand-oriented reallocations of development resources. The flexible influence of the City Administration is preserved. Success criterion: Separate business processes Control functions have been strengthened through integration of the organisational department. Modernisation projects of critical scale, in particular, can be realised with greater authority. Success criterion: Authoritative framework for specialist municipal offices

Outlook Strict alignment of the administrative modernisation to the Dresden Targets 2025 Strategies of specialist offices aligned to municipal strategy Representative projects and/or processes can be adopted as strategic projects/processes Change management in the form of organisational change taking up the stimulus arising from ICT. Coordination of organisational strategy, eGovernment strategy, IT strategy and the personnel requirement concept of the City of Dresden in respect of the new two-year budget 2012/2013

Dr. Michael Breidung Thank you. mbreidung@dresden Dr. Michael Breidung Thank you mbreidung@dresden.de for your attention! www.dresden.de