Decentralization or centralization: The case of service centres in the Finnish administration

Development of Public Service Control Systems in Finland CONTROL METHODS/ DECADE DRIVING FORCES ORGANISATION SALARY AND REWARDING SYSTEMS EVALUATION/ MONITORING 1970- HIERARCHY BUREAUCRATIC SALARY SCALE SYSTEM FOR CIVIL SERVANTS CONTROL 1980- PARTLY HIERARCHICAL DECENTRALIZ- ATION AS BEFORE + PILOTS FOR NPS AND RBR MANAGEMENT BY OBJECTIVES, MONITORING 1990- RESPONSIBILITY FOR RESULTS AND QUALITY SEPARATION OF PRODUCTION FROM STATE BUDGETARY SYSTEM FOCUS ON DEMANDS OF THE JOB AND REQUIRED PERFORMANCE MANAGEMENT BY RESULTS, FUNCTIONING OF PROCESSES, MEASURING TECHNIQUES CORE COMPETENCES, CRITICAL SUCCESS FACTORS, INTER-NATIONALIZATION, PARTNERSHIP PURCHASER-PROVIDER –MODEL NETWORKS, PROCESSES, TEAMS CENTRALIZATION AND OUTSOURCING OF SUPPORT FUNCTIONS PERSONNEL FUNDS, PROFIT BASED SALARY, PERSONNEL OPTIONS *QUALITY SYSTEMS BASED EVALUATION CRITERIA *BALANCED SCORECARD 2000- PRODUCTIVITY, COMPETITIVENESS NEW PAY SYSTEMS WIDELY IN USE, RBR’S, PERSONNEL FUNDS... State Employer's Office Asko Lindqvist 7.2.2006

Why do we need the service centre reform? A reorganisation and relocation of the state’s financial and personnel administration services Necessary due to demographic changes in the near future and a high degree of of decentralized services at the present time Efficiency and productivity requirements are high Uneven regional development State Employer's Office Asko Lindqvist 7.2.2006

The Service Centre offers: personnel management information systems payroll management technical components of recruitment process leaves job satisfaction follow-up advice on employment relationship matters etc. State Employer's Office Asko Lindqvist 7.2.2006

Contracts and pricing Services offered by the centre are chargeable and cost priced Contracts are negotiated on a customer-specific base The content and quality level of the services are specifically tailored for each customer The pricing of services rendered varies from customer to customer Before a contract is reached a free of charge clarification of the customer’s needs and processes is carried out. Accountability: does the customer receive services as agreed? Customer satisfaction follow-up and reporting State Employer's Office Asko Lindqvist 7.2.2006

On-going service centre projects Decisions to establish service centres have been taken for the following administration branches: Ministry of Finance Ministry of the Interior Ministry of Justice Ministry of Agriculture and Forestry The Defence Forces and the Ministry of Defence The coordinative body for the service centres is the State Treasury, which simultaneously functions as the service centre for the Ministry of Finance State Employer's Office Asko Lindqvist 7.2.2006

The State Treasury Service Centre Started its activities on 2.1.2006 Offers financial and personnel administration services to customers within and outside the administration branch of the MoF Personnel ca. 20 Customers include: MoF State Treasury The State Pension Board and the State Pension Fund The Housing Fund of Finland The Government Guarantee Fund Civil Aviation Authority Finnish Maritime Administration Office of the Order of Knighthood State Employer's Office Asko Lindqvist 7.2.2006

Lessons learned uniform concept necessary co-operation between the agencies co-operation with and support for the personnel (retraining, outplacement services etc.) careful planning, good management and open communication State Employer's Office Asko Lindqvist 7.2.2006

Relevance to the other countries Similar problems ageing personnel, increasing retirement budgetary constraints regional imbalances need to increase productivity and efficiency need to create better working communities new technology ...but different solutions the political and administrative contexts are different different stages of development (decentralization – centralization –decentralization) State Employer's Office Asko Lindqvist 7.2.2006

State Employer's Office Asko Lindqvist 7.2.2006