Reforming civil service in the Baltic States: the Case of Lithuania Jurgita Siugzdiniene, PhD Department of Public Administration, Kaunas University of technology

Civil service in the Baltics ESTONIA: civil servants Central level, limited to public administration function Open, position based system LATVIA: civil servants Central level, limited to public administration function Open, mixed model - some elements of career based system LITHUANIA: civil servants Central and local government levels, limited to public administration function Open, mixed model - some elements of career based system

Position based system strengthened Support staff lost status of civil servant Salary system decentralized Open competition for all position became mandatory Estonia Shift towards performance based civil service Performance appraisal system revised in 2013 Unified criteria for remuneration in public sector Open competition for all civil service positions Latvia Moving towards performance based civil service Performance appraisal system revised Semi-centralized recruitment system introduced Provisions for Senior Civil Service ready to be introduced Lithuania trends Civil Service reform trends

Case of Lithuania

Context Financial crisis: urgent need for budget consolidation, necessity to carry out significant structural reforms Government machinery and the managerial system too slow to respond to new policy priorities Civil service too rigid to adjust to changing situation and respond to challenges

Main goals PERFORMANCE COORDINATION Annual Government Priorities Evidence based monitoring system Performance agreements Senior Civil Service Policy implementation process Performance based budgeting

Key components of PA reform Civil service Coordination Efficiency Performance Institutional framework Strategic management and budgeting

Government priorities (indicators) reflected in strategic plans of ministries Quarterly progress reports are open to the public Clear Government priorities “Change of conversation” - achievements, priorities, budget Agreements between PM, MoF and respective Minister Responsibility and accountability for results at every level Minister is accountable for results and has more freedom to manage Accountability for results Performance based budgeting cycle

Performance chain Strategic priorities of a Minister Department Agency Annual Government priorities Agreement between PM, MoF and a Minister Performance agreements

Institutional framework Minister is fully responsible/ accountable for administration areas within his/her remit Accountability Optimization of the system of government agencies (from 21 to 12) Reduction of the number of appropriation managers, legal persons Optimal framework Functional reviews of ministries, government agencies, and their subordinate institutions Optimization of organisational structures Optimal organizational structure

Civil service reform What we are aiming at? Better accountability for performance results, stronger motivation to perform Improved coordination, whole-of-governance approach Enhanced policy implementation More flexibility, freedom to manage Focus on Senior Civil Service as a main lever of changes

1. Semi-centralized selection Centralized stage (Civil Service Department) Assessment of general competencies (removing “memory tests”, focus on logic based exercises) Assessment of managerial competencies (interview carries out by professionals) Language proficiency (language centers) Assessment results are valid for 24 months Decentralized stage (recruiting institution) Institutional commission consisting of at least 3 members Observers – representative of Trade Unions and Civil Service Department Assessment of competency to carry out specific tasks/functions Practical exercises and interview

Moving from “function” to “result”, from “qualification” to “competency” Closely linked with strategic goals of the institution Discussion and agreement between supervisor and civil servant (twice per year) on: key tasks and results to be achieved during the budget year and specific indicators (quantitative, qualitative) Assessment of competencies and agreement on competency development plan 2. Performance based assessment system

Approx. 200 positions Personnel Management Commission Term in the Office (4 + 4) Senior civil servant – more generalist than specialist Internal or external competition Different performance assessment procedure Remuneration linked to performance results Special training programme 3. Senior Civil Service (pending approval)

4. Transparent performance based salary system Introduction of performance-based payment Removal of all types of bonuses, supplements Removal of supplement for tenure Salary = basic salary + yearly bonus for performance (from 10 % to 20 %) No actions so far!

Issues, lessons learned (1) It was planned as a big bank reform However, little political support (Parliament), resistance on the side of civil servants Therefore, small steps instead of big bang For performance system to work you need all key elements in place (main element is still missing )

Issues, lessons learned (2) Intensive communication and discussions with civil servants, members of Parliament, political parties Active communication with Media Establishment of critical mass within civil service to facilitate change, attention to Senior Civil Service

Thank you, let’s discuss..