Day 2: Ministry (MEE) and Its Branch as Part of Government Tapio Laamanen 11th January 2011
The Decision on the Ministry of Employment and the Economy (MEE) The decision on the establishment of the Ministry of Employment and the Economy was made in the Government Programme, April 2007 The new ministry was formed from the Ministry of Trade and Industry, the Ministry of Labour and the units responsible for regional development under the Ministry of the Interior The changes became effective from 1 January 2008 The most substantial administrative reform on governmental level in Finnish history The idea of the reform was not new, but the timing was a surprise as well as the timetable given for the process (8 months) The objective was to meet the challenges of the changing operational environment
The Establishment of the MEE, 2008 Ministry of Trade and Industry + Ministry of Labour + Ministry of the Interior Regional Development = Ministry of Employment and the Economy
Some International Comparisons Ireland: Department of Enterprise, Trade and Employment In 1993, functions were centralised from separate ministries Energy, regional development remained in separate ministries France: Min. of the Economy, Finance and Employment Labour legislation, energy and regional development in other ministries Reforms took place in 2007 Sweden: Min. of Enterprise, Energy and Communications, Min. of Employment, Min. of Integration and Gender Equality In 2006, functions were separated into the above-mentioned ministries Germany: Min. of Economics and Technology, Min. of Labour and Social Affairs In 2005, functions were separated into the above-mentioned ministries > Finland chose a centralised model
Policies of the Government Programme and the Reasons for Establishing the Ministry Preventive reaction to structural challenges Innovations to provide higher productivity in a sustainable manner First-rate jobs and prompt re-employment Sustainable solutions to tackle climate change New opportunities for all regions of the country
The Main Policy Sectors of the MEE Innovation policy Employment and Enterprise policy Operational environment of the enterprises, Regulation of the markets and the working Life Energy policy Development of Regions and the Implementation of the EU structure funds Administration
Ministry of Employment and the Economy - Budget proposal for 2011 grouped by policies (EUR 3.3 billion) 615,2; 19 % 137,2; 4 % 341,7; 10 % 20,8; 1 % 823,3; 25 % 1352,0; 41 % Administration Innovations and internationalization Employment and entrepreneurship Operational environment of entreprises and market regulation Regional development and European Structural Fund Programmes Energy
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 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 ELOYMENT 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 HUMAN RESOURCES AND COETENCE DEVELOPMENT FINANCE DEVELOPMENT UNIT CO-ORDINATION OF EU AND INTERNA- TIONAL AFFAIRS AS ADMINISTRATION AUDITING AS AS NATIONAL CONCILIATOR S OFFICE AS = Minister of Economic Affairs, Mauri Pekkarinen AS = Minister of Labour, Anni Sinnemäki
Organisational Structure A matrix organisation aiming at: Full-scale utilisation of synergies Old departments were not merely coupled side by side Merger of the old organisational cultures Creation of a new, integrated organisational culture The horizontal units The Strategy and Foresight Unit ensures that policies are founded on a strong analysis of the operative environment The Corporate Steering Unit reinforces performance management and utilises synergies within the administrative sector The Regional Development Unit has control of the domestic regional policy with the means of EU structural funds (ERDF+ESR)
Organisational Structure Challenges: Responsibilities not as clear as in a line organisation (relations between accountability and hierarchies), the horizontal units strong resource allocation Distribution of work between the two plenipotentiary ministers, responsibilities must be found Alongside the ministry reform, the decision was taken to reform the organisational structure of the regional Employment and Economic Development Centres Association of the ministries enabled, in order to simplify the structure and direction of the Centres Even more profound Change of regional administration was to come
Lessons Learnt Confusion in the beginning transformed into a necessity to function, even enthusiasm The impossible schedule proved possible period of insecurity was minimised No major disturbance arose in the normal functioning of the Ministries Differences in the cultures, but co-operation between people from different Ministries more constructive than anticipated Extensive participation of personnel removed suspicions Communication important to the personnel; constantly, quickly, in real time and in diverse ways