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

2. 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

3. Tourism: approx. 9.8 million visitors in 2009
… a few words about Dresden
Area: 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)

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

5. Dresden City Council and City Administration

6. 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

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

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

9. Personnel consolidation (status 2010)
No savings in public sector
Pay freeze 2010, 2011 Job cuts: -50,000 Recruitment stop
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 , Job cuts : -50,000; 2010: -34,000, Refilled vacancies: 1 in 2
Salary cuts 2009: %
Job cuts: -32,000
Pay freeze 2009 and 2010, Salary cuts 2009: 8% Job cuts: -10%
Job cuts : -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 , Salary cuts: 5% Recruitment stop
Pay freeze 2009, Salary cuts: 20%
Pay freeze , Salary cuts for higher pay grades 2010: 5-10% Refilled vacancies: 1 in 5
Pay negotiations not until autumn, Pay freeze for federal politicians , Job cuts-2,900
Pay freeze 2009 and 2010
Pay freeze , Salary cuts 2010: 12-20% Refilled vacancies: 1 in 5
Salary cuts 2010: 15% and 13th salary
Pay freeze 2010, Recruitment stop

10. 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.

11. 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

12. 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

13. 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.

14. 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
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.

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

16. “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

17. 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

18. 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

19. 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

20. 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

21. 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

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