TR08IBFI03
1.2.7 Organization and Process
Performance Management
Day 6:
Performance Management
and Roles of Actors
7th February 2011
Tapio Laamanen
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
MP
Regional Development Strategy and Foresight
• Entrepreneurship Development and Enterprise Support • Functioning of Labour Market and Labour Availability • Employment and Enterprise Services • Intermediate Labour Market and Employability EMPLOYMENT AND ENTRE-PRENEURSHIP DEPARTMENT Corporate Steering LABOUR AND TRADE DEPARTMENT INNOVATION DEPARTMENT ENERGY DEPARTMENT DEVELOPMENT UNIT NATIONAL CONCILIATOR’S OFFICE CO-ORDINATION OF EU AND INTERNA- TIONAL AFFAIRS HUMAN RESOURCES AND COMPETENCE DEVELOPMENT AUDITING ADMINISTRATION FINANCE AS MP MP MP MP AS PERMANENT SECRETARY STATE SECRETARY MINISTER
OF ECONOMIC AFFAIRS MINISTER OF LABOUR
STATE SECRETARY MEDIA AND COMMUNICATIONS MP • Regional Strategy • National Development Programmes
• Structural Fund Policy • Structural Fund Administration
MP
• Corporate Strategy • Strategic Projects • Research and Foresight
AS
• Steering and Structures
• Steering of ELY Centres
• Information Management Steering and Administration
• Industrial Policy Co-ordination and Special Finance
MP
AS AS MP
MP = Minister of Economic Affairs, Mauri Pekkarinen AS = Minister of Labour, Anni Sinnemäki
• Base Production of Energy • Energy Markets • Energy Efficiency and Technology • Renewable Energy • Knowledge- Based Innovations • Demand-Based Innovations • Innovation Environments • Growth Ventures • International- isation of Enterprises and Export • Mineral Policy • Regulation of Working Environment • Quality of Working Life • Competition Policy • Internal Market and Consumer Policy • Business Law • Better Regulation MP
The Ministry of Employment and the Economy – Organisation
Energy Market Authority
Finnvera plc
Finpro Invest in Finland
Finnish Competition Authority Consumer Agency Tekes Funding Agency for Technology and Innovation Finnish Industry Investment Ltd Local Employment Offices (70) VTT Technical Research Centre of Finland State Nuclear Waste Management Fund Offices abroad more than 60 (Finpro, Tekes, Innovation Centres FinChi and FinNode)
Geological Survey of Finland Centre for
Metrology and Accreditation
The MEE Branch
Finnish Tourist Board National Emergency Supply Agency Regional ELY Centres (15) National Consumer Research Centre Others National Board of Patents and Registration Domestic Offices appr. 300 Enterprise Services (50)
5
MEE “Corporate Steering” Model
- Concerning the MEE and its subordinated agencies
5
INTERNATIONAL OPERATING ENVIRONMENT
NATIONAL OPERATING ENVIRONMENT
CORPORATE STEERING IN ADMINISTRATIVE SECTOR
Customers Partners and networks Operator groups of the admin. sector 1 2 3 4 Performance management Regulatory management Information management Steering of development operations Work in Boards of Directors
Corporate strategy of the administrative sector Substance strategies Government Programme Analysis of the operating environment
Strategic intent and definition of target
policies
Corporate operating model
Strategic planning Steering methods Implementation of strategy
6
Operator Groups in the Administrative Branch
7
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 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
CHARACTER OF OPERATIONS Development and business Official duties EXTENT OF OPERATIONS Extensive field of duties / operations Specialised field of duties / operations 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 4
• Finnish Competition Authority • The National Consumer Agency • Energy Market Authority
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.
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
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
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
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
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
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
Enhancing the Profession of
Performance Management Officer
Common terminology
Common tools
Common rules / ways of action
Horizontal aspect
Network support
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
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
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
