1. 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

2. BACKGROUND FINNISH GOVERNMENT ADMINISTRATION
13 ministries and a large network of relatively independent agencies
The Finnish civil service comprises of civil servants 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

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