STATE CHANCELLOR The Swiss innovation of the public
STATE CHANCELLOR The Swiss innovation of the public sector Dr. Peter Grünenfelder Kyiv April 22, 2015 STAATSSCHREIBER STATE CHANCELLOR
General developments increase pressure on modernization: main reasons for the Swiss public sector reforms Strategic crisis (f. e. demography) Modernization atmosphere Dissatisfied citizens and public demand "value for money" Strategy & long-term planning transparency and affordable public services new governance for state owned enterprises (public corporate governance) New public management instruments Financial crisis (economic situation and increasing competition between regions) Linking tasks and financial objectives Insufficient public service delivery measurable public services (performance indicators) Media coverage Lack of motivation of public employees in analogy to: A. Ritz (2015) STAATSSCHREIBER STATE CHANCELLOR 2
Advantage for public sector innovation: Federal Switzerland with 26 cantons (states) Swiss cantons are mainly responsible for: education, organization, tax regimes, police, health affairs, political rights etc. STAATSSCHREIBER STATE CHANCELLOR 3
Federal Switzerland on 3 levels STAATSSCHREIBER STATE CHANCELLOR 4
Using the potential of federalism Competition effect competition (and constant comparisons) between local and regional entities is an advantage for the overall Swiss competitiveness Laboratory effect of federalism possibility for comparisons supports innovation of the overall public sector system Bottom-up reform of the Swiss public sector possibility of 'trial and error' by 'pilot projects' on cantonal and local government level STAATSSCHREIBER STATE CHANCELLOR 5
Public sector innovation, Swiss direct democracy and citizen orientation § § § Referendum § mandatory for constitutional amendments and accession to important international organizations § optional for amendments of laws and important international treaties (condition: 50‘ 000 signatures) Initiative § for constitutional amendments § 100‘ 000 signatures § important indirect effects (agenda setting) Swiss cantons as experimental laboratories § optional referendum and initiative were first implemented in cantons and then on federal level § cantons still grant a larger range of direct democratic participation § cantons have extensive own policy responsibilities due to Swiss federalism § e-voting projects STAATSSCHREIBER STATE CHANCELLOR 6
Citizen orientation in Swiss cantons: Supplementary instruments § financial referendum § mandatory law referendum - decision power of the (cantonal) people about public expenditures and taxes - leads to lower taxes and lower expenditures - most effective mean to control political authorities STAATSSCHREIBER STATE CHANCELLOR 7
extent of financial referendum right STAATSSCHREIBER STATE CHANCELLOR OECD Fiscal decentralization average of cantonal tax charge Financial referendum leads to lower taxes 8
Focus of public sector reforms in Switzerland § Efficient use of resources and greater financial transparency - strengthening output and outcome orientation and implementing private sector steering tools § Debt break (increasing financial discipline) and national fiscal equalization § Implementation of strategic and long-term management instruments - strengthening strategic leadership and control § Implementation of mid-term planning tools (integrated tasks and finance plan) § Focus on work results through performance targets and indicators – reporting § Improvement of service quality and customer orientation § Flexibilization of personnel management (abandonment of the status of a public official (tenured career), performance-based salary system) Requirements for public managers and leadership programs in the public sector § start of reforms 1996 (local government level and cantonal level –> federal government level) STAATSSCHREIBER STATE CHANCELLOR 9
Reform: debt break gross federal debt 1980 - 2011 STAATSSCHREIBER STATE CHANCELLOR 10
Reform: Comprehensive reform of the public steering system Legal framework objectives Legal framework (constitution, laws) Financial means General steering Actual outcome Annual input steering Actual output reference: K. Schedler / I. Proeller Outcome objective WHAT DO THE CITIZIENS WANT? STAATSSCHREIBER STATE CHANCELLOR Output objective WHAT SERVICES DO WE DELIVER? Financial controlling Output controlling Outcome evaluation and controlling Actual resource Production process of public services Resource objective HOW MUCH DOES IT COST? 11
Strategic hierarchy as a basis for long and medium term planning Responsibility Control instrument for: Political Level Government Parliament for information Government State chancellery and ministries Administrative Level Parliament for approval Divisions and units STAATSSCHREIBER STATE CHANCELLOR outlook / up-date: Development Plan ca. 12 policy areas (outcome objectives) 10 years / 4 years Integrated tasks and finance plan ca. 50 – 80 main tasks 4 years / annually (outcome, output and financial objectives) ca. 100 – 150 output groups more than 500 outputs individual objectives for public servants 4 Jahre / annually 12
Midterm planning in Swiss cantons Figure: Cantons with an integrated tasks and finance plan Reference: University of St. Gallen STAATSSCHREIBER STATE CHANCELLOR 13
Integrated tasks and finance plan – content § 4 years (budget year and 3 planning years) § Update (annually and adding one more planning year) § Context long-term – mid-term planning: mid-term plan as control tool for successive implementation of the priority program of the government General development Development priorities tasks Integrated Tasks and Finance Plan Objectives (Outcomes and Outputs) Indicators Financial objectives (one-line budgets) STAATSSCHREIBER STATE CHANCELLOR 14
Citizen Orientation, public sector reforms and Swiss direct democracy: „Security initiative“ by the people § subject of the initiative: at least one policeman per 700 inhabitants § consequences: immediate modification of governmental planning and shift of resources to security Strategic plan of the state government 2010 -2013 appropriate density of police (1 policeman per 700 inhabitants) STAATSSCHREIBER STATE CHANCELLOR inhabitant per policeman number inhabitant per policeman (incl. municipal police) number 15
Integrated tasks and finance plan: objectives and indicators and controllability by the parliament Objective Controllability I n d i c a t o r s STAATSSCHREIBER STATE CHANCELLOR 16
Annual reporting: transparent information about achievement of objectives Status STAATSSCHREIBER STATE CHANCELLOR 17
Improved parliamentary supervision § improved financial controlling (regular reports by the government; parliamentary MIS) § (financial) audit reports of the audit office directly submitted to the parliament § § strong supervision of government and administration activities § § new output and outcome control (controlling reports; evaluation reports) § parliamentary committees focusing on main content of administration activities (not automatically adjusted to the governmental organization) not an isolated financial view but a direct link between public services tasks and financial funding approval of government's mid-term strategies based on the integrated tasks and finance plan STAATSSCHREIBER STATE CHANCELLOR 18
New Management Cycle Strategy review Strategy reports (periodically) Parliamentarian intervention Reporting Annual report with financial statement (annually) Long-term strategy (horizon: 10 years, Up-date: 4 years) strategic operative Mid-term planning Integrated tasks and finance plan / budget (horizon: 4 years Up-date: annually) operative implementation Short term planning and implementation controlling (ongoing) STAATSSCHREIBER STATE CHANCELLOR 19
New Government Cycle Strategic monitoring Annual reporting Developing long-term strategic options Controlling and evaluation Governmental decision making on long-term strategies Performance process at the interface of the politico-administrative system Developing mid-term strategies Integrated tasks and finance plan Implementing governmental programs operative planning governmental items Communication of governmental decisions Government meetings STAATSSCHREIBER STATE CHANCELLOR 20
‘Open’ civil service § The profile and career path of Swiss public officials are very diverse § Selected not on the basis of a specific course of study, but on the basis of specific skills § No lifetime appointments § Swiss civil service is not a career civil service, but an open system in which every citizen is entitled to seek public office § Heterogeneous profiles, also from the private sector at all levels of the hierarchy STAATSSCHREIBER STATE CHANCELLOR 21
Leadership development through performance appraisal Motivation STAATSSCHREIBER STATE CHANCELLOR 22
Example: top and middle management in a Swiss Canton § Leadership of the top and middle management is based on annual outcome and output objectives that are derived from the integrated tasks and finance plan of the government. § achievement of objectives, task fulfillment and measures are assessed in the fourth quarter of the year § assessment: base for performance salary and premium (in a defined financial range) for the management STAATSSCHREIBER STATE CHANCELLOR 23
Results § § increased (cost) efficiency of the public administration § new management system strongly supported by top and senior public management § § objectification of relationship between political and administrative level § § setting priorities by the government transparent public services increased controllability for parliament permanent controlling cycles (measurement of achievements of outcome, output and financial objectives); (financial) plausibility checks based on performance information more realistic planning improved citizen orientation of civil servants strengthening long-term orientation (measurable 10 yrs. / 4 yrs. planning); political reliability credibility of the public sector ("value for money") STAATSSCHREIBER STATE CHANCELLOR 24
Swiss public sector: culture of change § do things that you have never done before § achieve objectives that have never been achieved before § start to implement methods that have never been used before § improve results that have been satisfying so far § exceed impediments that you built up yourself § leave the status quo behind you even if it causes insecurity reference: E. Buschor STAATSSCHREIBER STATE CHANCELLOR 25
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