Innovation Dynamics in Transition Country Comenius University Bratislava, Slovakia

Transition Context Coincidence of 2 movements: 1) Overall societal changes from a centralized authoritarian state (unitary power in political, economic, administrative sense) - Political, economic, administrative and social changes - Pluralization: creation of civil society - Privatization: creation of markets and business sector - Decentralization: creation of self-governments 1) New Public Management - Privatization: service providers - Client empowerment - De-institutionalization - Personalization of Services

Transition Context Public Administration Reform (devolution of power from state → other actors) Decentralization (Territorial Units and Municipalities) - Competencies (Slovakia: 1. July 2002) - Finances (Slovakia: 1. January 2005) Transformation of Social Services System (responsibility shift from state → citizen) 1/ How to define a new quality of public sector and basic social service 2/ How to improve their performance

Societal Reforms vs. Innovation in Social Services Language - social care → social aid → social services - patient → client - Reforms / modernization / changes vs. innovations Reform or Innovation fatigue??? WHAT: nature and range of social services (institutional care → taxative enumaration of institutions with specific services → scale of alternative services) - WHO: form, role and scope of founders and providers (new and alternative providers of services, e.g. church, NGO, private institution - HOW: Types of service (social vs. health services) - FROM WHAT ($$$): (state → multisource financing)

PeriodSource of FinancesEstablisherFounder/ Provider Until 1990State Since 1990 Line items in the budgets of the regional state offices or Municipality budget (e.g. Bratislava municipality utilizes finances from Fond on housing development) State (deconcentrated power on lower levels + providers became independent legal entities) or Municipality on the voluntary basis (State Administration of Social Security Act) State Since 1992 Provision of Social Services Act introduces non- state actors such as church, non- governmental organization and other 1998In addition to the above, the Social Assistance Act enables the providers to seek additional financing via grants, sponsor donations, contributions etc. Since 1 July, 2002Line items in the budgets of the regional state offices and transfers in the form of ‚decentralization subsidy‘ to the budgets of individual self-governments for social services as a bloc payment Self-governments redistribute ‚decentralization subsidy‘ to various providers of social services, including residential homes for elderly Self-governments: municipality or higher territorial unit (Competency Act) 2003 – 2004 Decentralization subsidy from regional state offices via self-governments to residential homes Since 1 January, 2005Formula from municipal taxes + subsidy for ‚facilities providing social services‘

Context - local Service Institutions became independent legal entities (directors) Fiscal pressure (effectiveness and efficiency) - Municipalities responsible for social services - Decentralization support (from Ministry via municipality / territorial unit) Civil Organizations pressure: humanization of services, respect towards clients, quality services - ASHOKA project (Council for Advice in Social Work) Slovakia: Residential Home for Elderly Lithuania: Establishment of Day Centers for Elderly

Drivers for Innovation Overall changes in society: climate for changes Need - Philosophical change: humanization of services, de- institutionalization - Problem-driven (fiscal pressure, efficient provision of services) Study visit to partner organization in Germany (inspiration) Trainings / meetings by NGO (CASS) + facilitative trainings with municipality (CDLM) - Czech initiative “For respectful senior age” - Preparation of manual for Quality Standards Regular meetings with staff to monitor, evaluate and adjust innovation in the context (+ WHY innovation) Preparation of draft law on Social Services at Ministry

Barriers to Innovations Transition related - Collapse of information flow between policy and service levels - collapse of formal network among service providing facilities - Inadequate training opportunities for ‘new’ type of social services - Lack of professionalism in management issues (mistrust and misunderstanding of private sector) Traditional - Need to communicate with staff and other stakeholders to explain rationale and process of innovations - Internal politics

Lessons Learned – Perceptions, Definitions & Innovations Concept of Innovation perceived in national public sector context as system change/reform or internal organizational change/reform PUBLIN definition works\Concept often applied in the context of ‘reforms’, ‘modernization’ and ‘problem solving’ BUT improvement for beneficiaries Concept is applied across all types of innovation (system, process, organizational, technical, etc.)

Lessons Learned – Interaction policy & service levels Policy level system changes enabled innovations on service level (e.g. independence of facilities in decision making on local level, introduction of multi-source financing) Problems on service levels to be solved – seeking for innovations Role of Entrepreneurs Role of NGOs Experience with innovations on service level taken into policy level decisions (new law on Social services)

Lessons learned – Role of Entrepreneurs (front line managers) Beliefs and values of innovators (both internal and external influence) Inspiration from experience elsewhere (e.g. partnerships, trainings, seminars, etc.) Committed ‘change agents’ in the organization (besides the director also committed staff members) Communication, negotiations and supervision of all stakeholders (politicians, decision makers, policy makers): demonstration of benefits and early identification of resistance Staff empowerment and motivation (trust, responsibilities, communication, feedback, training)

Lessons Learned – Role of NGOs Initiation Interaction and knowledge transfer Networking: a) vertically - facilitator of communication between service and policy levels; b) horizontally – among service organizations Research and pilot testing Diffusion of innovation and policy learning Additional financial resources