1.2.7 Organization and Process Performance Management

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1 1.2.7 Organization and Process Performance Management Day 6: Performance Management and Roles of Actors 7th February 2011 Tapio Laamanen

2 Actors in Line Ministry (MEE) in Performance Management (Ministry of Finance; general responsibility on development) Administrative branch of MEE (Ministry of Employment and the Economy) Ministry vs. Agency Ministry represented by Ministers, Permanent Secretary, Corporate steering unit, Departments, Finance Unit Ministry s executive group Boards of Agencies Ministry itself Permanent secretary vs. each department/unit Individuals Manager vs. employee

3 The Ministry of Employment and the Economy Organisation STATE SECRETARY MINISTER OF ECONOMIC AFFAIRS PERMANENT SECRETARY MINISTER OF LABOUR STATE SECRETARY Strategy and Foresight Corporate Strategy Strategic Projects Research and Foresight Corporate Steering MP Steering and Structures Steering of ELY Centres Information Management Steering and Administration Industrial Policy Co-ordination and Special Finance Regional Development Regional Strategy National Development Programmes Structural Fund Policy Structural Fund Administration AS MP EMPLOYMENT AND ENTRE- PRENEURSHIP DEPARTMENT Entrepreneurship Development and Enterprise Support Functioning of Labour Market and Labour Availability Employment and Enterprise Services Intermediate Labour Market and Employability LABOUR AND TRADE DEPARTMENT Regulation of Working Environment Quality of Working Life Competition Policy Internal Market and Consumer Policy Business Law Better Regulation INNOVATION DEPARTMENT Knowledge- Based Innovations Demand-Based Innovations Innovation Environments Growth Ventures Internationalisation of Enterprises and Export Mineral Policy ENERGY DEPARTMENT Base Production of Energy Energy Markets Energy Efficiency and Technology Renewable Energy MEDIA AND COMMUNICATIONS MP HUMAN RESOURCES AND COMPETENCE DEVELOPMENT MP FINANCE MP DEVELOPMENT UNIT CO-ORDINATION OF EU AND INTERNA- TIONAL AFFAIRS AS ADMINISTRATION MP MP AUDITING MP MP AS AS MP MP NATIONAL CONCILIATOR S OFFICE AS MP = Minister of Economic Affairs, Mauri Pekkarinen AS = Minister of Labour, Anni Sinnemäki

4 Offices abroad more than 60 (Finpro, Tekes, Innovation Centres FinChi and FinNode) State Nuclear Waste Management Fund Energy Market Authority Finnish Tourist Board Finpro The MEE Branch Finnvera plc National Board of Patents and Registration Invest in Finland Finnish Competition Authority Tekes Funding Agency for Technology and Innovation VTT Technical Research Centre of Finland Regional ELY Centres (15) Others Centre for Metrology and Accreditation Geological Survey of Finland Local Employment Offices (70) Consumer Agency Enterprise Services (50) National Consumer Research Centre National Emergency Supply Agency Finnish Industry Investment Ltd Domestic Offices appr. 300

5 MEE Corporate Steering Model - Concerning the MEE and its subordinated agencies INTERNATIONAL OPERATING ENVIRONMENT NATIONAL OPERATING ENVIRONMENT Monitoring, reporting and assessment of strategy Strategic planning Steering methods Implementation of strategy CORPORATE STEERING IN ADMINISTRATIVE SECTOR Corporate strategy of the administrative sector Performance management Operator groups of the admin. sector Government Programme Analysis of the operating environment Strategic intent and definition of target policies Corporate operating model Substance strategies Regulatory management Information management Steering of development operations Work in Boards of Directors Partners and networks Customers 5 5

6 Operator Groups in the Administrative Branch CHARACTER OF OPERATIONS Development and business Official duties Operator group 1 ELY Centres (regional, 15) Tekes Finnvera plc Finpro Finnish Industry Investment Ltd Technical Research Centre of Finland, VTT Geological Survey of Finland (GSF) Operator group 3 National Board of Patents and Registration (PRH) Centre for Metrology and Accreditation (MIKES) Safety Technology Authority (TUKES) National Consumer Research Centre Operator group 2 Foundation for Finnish Inventions Finnish Standards Association SFS The Finnish Tourist Board (MEK) Invest in Finland foundation Fintra SME Foundation The Labour Institution Design Forum Finland Plus a number of other organisations eligible for State aid Operator group 4 Finnish Competition Authority The National Consumer Agency Energy Market Authority National Emergency Supply Agency Extensive field of duties / operations EXTENT OF OPERATIONS Specialised field of duties / operations 6 7

7 Actors from Top to Down Executive Group of Ministry Executive group handles and decides on A corporate strategy (especially 4-6 target policies) Substance strategies Preliminary policy targets in budget proposal Public statements of the ministry concerning how the targets have been attained in agencies to be exact, the executive group does not make decisions, but minister does himself/herself if authority is not delegated to high management civil servants.

8 Actors from Top to Down Minister Political guidelines to performance management; process and targets Minister mostly uses his/her power in the executive group One aim in developing performance management has been to serve better the political actors, to give them a better tool use Performance management process may be too slow and its targets too far when observed from daily politics point of view Minister may give direct assignments to an agency Assignments may conflict the targets of the agreement At least the agency can have problems in prioritizing its resources both to meet the targets of the agreement and to satisfy minister s current needs

9 Actors from Top to Down Permanent Secretary General responsibility for the functioning and development of an administrative branch Coordinates the opinions of the matrix organization (ministry) Important supporter of the corporate steering unit Chairman in agreement negotiations with the most significant agencies (operator group 1), if not delegated to undersecretary Corporate management group as a new body in performance management Permanent secretary as a chairman Participants: Heads of departments of the ministry and heads of agencies of the operator group 1

10 Actors from Top to Down Undersecretary-of-state Head of the corporate steering unit General responsibility for the implementation of the performance management targets of the branch Chairman in agreement negotiations with the most significant agencies (operator group 1) if permanent secretary delegates the duty Strong influence on the preparations concerning performance targets Especially target policies of the corporate strategy Vice-chairman of the corporate management group Personnel of the unit develop the performance management process in collaboration with the departments New actor in ministry

11 Actors from Top to Down Director general Heads of departments of ministry Represents substance / policy sector Resources / appropriations Legislation Chairman in agreement negotiations with the agencies which belong to the operator groups 2, 3 and 4 Strong actor also in negotiations of an agency belonging to the operator group 1 Performance management officers belong to the departments as well as heads of divisions of departments Traditionally strong position

12 Performance Management Officer Formal and practical role Performance management officer is responsible for ministry preparations concerning relevant agency Continuous interaction between ministry and agency on expert level Requirements of a performance management officer Competence Expertise Mandate

13 Performance Management Officer Duties Process owner concerning performance management between ministry and agency Performance agreement drafting Briefing one s manager and a chairman of the negotiations Reporting to manager Participating in the agency s important projects Informal interaction Role Coordinator and applier of strategies and targets Steering touch strong enough, instead of representing agency s voice in ministry Prioritizing aspect Development approach

14 Enhancing the Profession of Performance Management Officer Common terminology Common tools Common rules / ways of action Horizontal aspect Network support Training programme

15 Actors from Top to Down Finance Unit General responsibility for resources / appropriations of the administrative branch Spending limits give a strong role to finance unit Productivity programme caused both reductions and investment possibilities Owner of budget process Preliminary targets in budget proposal Represents economically appropriate way of action

16 Many Actors One Voice? Aim: Ministry has only one voice in performance management crucial moment: negotiations Chairman represents not only his/her own department/unit but also the whole ministry Participating actors of ministry express their views to chairman in beforehand How has the aim realized? Not well! Too many actors, too many roles, too separate processes Keep it simple, save the matrix (horizontal way of action) Need to combine actors as well as processes Strategy unit + corporate steering unit + finance unit?

17 Actors from Agency Head of an agency Usually director general Continuous interaction between permanent secretary / undersecretary / director general of ministry s department / performance management officer and head of agency Practices vary Coordinative person close to the head of the agency Counterpart to performance management officer Continuous interaction Performance agreement drafting Development of process Low access stay in contact between ministry and agency

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