MINISTRY OF FINANCE TOWARDS PROFESSIONAL MANAGEMENT IN CENTRAL GOVERNMENT IN FINLAND Expert meeting October 6, 2003 PUMA/OECD Ministerial Adviser Ari Holopainen BACKGROUND KEY ELEMENTS OF THE FINNISH SYSTEM CRITICAL SUCCESS FACTORS DEVELOPMENT STRATEGY –2012 VISION TARGETS STRATEGIC PROPOSALS KEY ROLES AND COMPETENCIES OF SCSs LESSONS LEARNED/DISCUSSION Ari Holopainen 16.1.2019

BACKGROUND FINNISH GOVERNMENT ADMINISTRATION 13 ministries and a large network of relatively independent agencies The Finnish civil service comprises of 100 000 civil servants + 20 000 employees (5 % at Ministry level) Number of senior civil servants is approx. 200 Fundamental changes during 90’s: results-based management system new budgetary system decentralised HRM personnel reductions mainly through reorganisation Ari Holopainen 16.1.2019

BACKGROUND EVALUATION Deliberate, consensual and relatively unhurried approach to reform, high degree of continuity Diversification, differences between state agencies Managers have been developed systematically, but the impact has been uneven and insufficient Need for performance targets for individual civil servants PERSONNEL POLICY LINE 2001- The State Employer’s targets: basis of clear values competitiveness as an employer new management climate Proposal for a strategy for management development -2012 Ari Holopainen 16.1.2019

KEY ELEMENTS OF THE FINNISH SYSTEM No separate cadre of the senior civil service, only some special regulations: establishing, transferring, abolishing public offices termination of a civil service relationship recruitment/dismissal No cadre of political appointees (exc.) Open/position system permanent or fixed term appointments through open recruitment formal appointments by the President of the Republic or the Council of State, otherwise selection is decentralised no career system State Employer’s Office/Ministry of Finance the State’s general employer policy the State’s joint personnel policy training courses for senior civil servants, senior civil service pay determination Ari Holopainen 16.1.2019

CRITICAL SUCCESS FACTORS Productivity: using the given resources as efficiently as possible Recruitment of skilled managers and preparation of future managers Adapting management to a networked information society Leadership: “Management climate must have a clear emphasis on trust-based interaction, cooperation and skills in human relations” The need for renewal Ari Holopainen 16.1.2019

DEVELOPMENT STRATEGY – 2012 VISION ‘Professional management guarantees the productivity, well-being and constant renewal of government operating units. Systematic development of management ensures the availability of future leaders and their commitment to a common management culture.’ TARGETS Professional and systematic development of managers. Effective, versatile use of management resources. Managers are management professionals. Managers who retain their working capacity throughout their careers. Development of common management competences and culture for central government. Management duties in central government that are attractive and make the State a competitive employer. Ari Holopainen 16.1.2019

DEVELOPMENT STRATEGY – 2012 STRATECIG PROPOSALS SCS duties should be for a fixed term. Personal management contracts should be drawn up for all top managers in central government. Management should be developed on the basis of a common model. The efficiency and leadership of managers should be assessed on the basis of a common framework. The development, use and mobility of common managers resources should be improved. Management in central government should be enhanced with joint development services. Ari Holopainen 16.1.2019

LESSONS LEARNED/DISCUSSION Management development must be linked to Government’s programme Need to increase political resources (e.g. idea of new political state secretaries) - clear distinction between political leaders and professional managers Tensions between the new managerial and the old legal administrative culture Need to attract all the best candidates vs. the principle of administrative transparency How to bring career elements to an open system The role of SCSs: experts or professional managers SCSs between politicians and citizens (role in media) How to maintain the unity of the civil service? Decentralisation or recentralisation? Gradual change or a big bang? Ari Holopainen 16.1.2019

BASIC ROLES AND KEY COMPETENCIES OF SENIOR CIVIL SERVANTS (draft) Ari Holopainen 16.1.2019