STAATSSCHREIBER STATE CHANCELLOR The Swiss innovation of the public sector Kyiv April 22, 2015 STATE CHANCELLOR Dr. Peter Grünenfelder

STAATSSCHREIBERSTATE CHANCELLOR

The Swiss innovation of the public sector

Kyiv

April 22, 2015

STATE CHANCELLOR

Dr. Peter Grünenfelder

STAATSSCHREIBERSTATE CHANCELLOR 2STATE CHANCELLOR

General developments increase pressure on modernization:main reasons for the Swiss public sector reforms

Strategy & long-term planning

transparency andaffordable public services

new governance for state owned enterprises

(public corporate governance)

New public management instruments

measurable public services(performance indicators)

Strategic crisis (f.e. demography)

Insufficientpublic servicedelivery

Financial crisis (economic situation and increasing competitionbetween regions) Media coverage

Linking tasks and financial objectives

Modernization atmosphere

Lack of motivation of public employees

in analogy to: A. Ritz (2015)

Dissatisfied citizens and public demand "value for money"

STAATSSCHREIBERSTATE CHANCELLORSTATE CHANCELLOR 3

Swiss cantons are mainly responsible for: education, organization, tax regimes, police, health affairs, political rights etc.

Advantage for public sector innovation: Federal Switzerland with 26 cantons (states)


Federal Switzerland on 3 levels


Using the potential of federalismCompetition effectcompetition (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 sectorpossibility of 'trial and error' by 'pilot projects' on cantonal and local government level


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


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


Financial referendum leads to lower taxes a

vera

ge o

f can

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l tax

cha

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extent of financial referendum right

OEC

D F

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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)


Reform: debt break

gross federal debt 1980 - 2011


Reform: Comprehensive reform of the public steering system

reference: K. Schedler / I. Proeller

Legalframework objectives

Financial means

General steering

Annual input steering

Outcome objective

WHAT DO THE CITIZIENS WANT?

Outputobjective

WHAT SERVICES DO WEDELIVER?

Production processof publicservices

Resourceobjective

HOW MUCH DOES IT COST?

Actual resource

Actual output

Actual outcome

Legal framework (constitution, laws)

Outc

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valu

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on

and c

ontr

olli

ng

Outp

ut

contr

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ng

Financi

al

contr

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Strategic hierarchy as a basis for long and medium term planning

Integrated tasks and finance plan

ca. 50 – 80 main tasks

(outcome, output and financial objectives)

ca. 100 – 150 output groupsmore than 500 outputs

individual objectives for public servants

DevelopmentPlan

ca. 12 policy areas(outcome objectives)

Responsibility outlook

Control instrument for:

Government Parliamentfor information

GovernmentState chancelleryand ministries

Parliamentfor approval

Divisions and units

outlook / up-date:

10 years / 4 years

4 years / annually

4Jahre /

annually

Politi

cal Level

Ad

min

istr

ati

ve

Level


Midterm planning in Swiss cantons

Figure: Cantons with an integrated tasks and finance plan

Reference: University of St. Gallen


Integrated tasks and finance plan – content

General development

Financial objectives(one-line budgets)

Development priorities

Objectives(Outcomes and Outputs)

Indicators

tas

ks

Integrated Tasks and Finance Plan

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


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

appropriate density of police

(1 policeman per 700 inhabitants)

inhabitant per policeman

inhabitant per policeman (incl. municipal police)

number

number

Strategic plan of the state government 2010-2013


Integrated tasks and finance plan: objectives and indicators and controllability by the parliament

Controllability

Indicators

Objective


Annual reporting: transparent information about achievement of objectives

Status


Improved parliamentary supervision

improved financial controlling (regular reports by the government; parliamentary MIS) (financial) audit reports of the audit office directly submitted to the parliamentstrong supervision of government and administration activitiesnot an isolated financial view but a direct link between public services tasks and financial funding new output and outcome control (controlling reports; evaluation reports)approval of government's mid-term strategies based on the integrated tasks and finance planparliamentary committees focusing on main content of administration activities (not automatically adjusted to the governmental organization)


Strategy reviewStrategy reports (periodically)Parliamentarian intervention

Long-term strategy(horizon: 10 years, Up-date: 4 years)

Mid-term planningIntegrated tasks and finance plan / budget(horizon: 4 yearsUp-date: annually)

ReportingAnnual report withfinancial statement(annually)

operative

strategic

operative implementationShort term planning and implementation controlling (ongoing)

New Management Cycle


New Government Cycle

Strategic monitoringDeveloping long-term

strategic options

Governmental decision makingon long-term strategies

Developing mid-term strategiesIntegrated tasks and finance plan

Implementing governmentalprograms

Controlling and evaluation

operative planning governmental items

Communication ofgovernmental decisions

Government meetings

Annual reporting

Performance process at the interface of the

politico-administrativesystem


‘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


Leadership development through performance appraisal

Motivation


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


increased (cost) efficiency of the public administrationtransparent public services increased controllability for parliamentpermanent controlling cycles (measurement of achievements of outcome, output and financial objectives); (financial) plausibility checks based on performance information new management system strongly supported by top and senior public managementobjectification of relationship between political and administrative level more realistic planningimproved citizen orientation of civil servantsstrengthening long-term orientation (measurable 10 yrs. / 4 yrs. planning); political reliabilitysetting priorities by the governmentcredibility of the public sector ("value for money")

Results


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

Swiss public sector: culture of change

Documents

STAATSSCHREIBER STATE CHANCELLOR The Swiss innovation of the public sector Kyiv April 22, 2015 STATE CHANCELLOR Dr. Peter Grünenfelder