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

2. 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

3. 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

4. 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

5. 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

6. 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. The State Treasury Service Centre
Started its activities on
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

8. 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

9. 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

10. State Employer's Office
Asko Lindqvist