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Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Day 5: Different Approaches.

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Presentation on theme: "Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Day 5: Different Approaches."— Presentation transcript:

1 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Day 5: Different Approaches and Tools to Prepare a Strategy Tapio Laamanen 14th January 2011

2 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Government Foresight Network An interministerial forum for cooperation and exchange of information in issues relating to the anticipation of the future A systematic and inclusive process involving the collection, assessment and analysis of information All ministries involved in anticipation activities relevant to their appropriate administrative sector Anticipation activities undertaken by the ministries serve the strategic planning and direction of the administrative sector as well as the Government's decision-making The network is a forum for discussing the results of the anticipation work carried out in the administrative sectors Prime Minister’s Office prepares a report on the long-term future once during each parliamentary term Appointed by the Prime Minister’s Office, the Network’s term lasts until the end of the Government’s term of office. Members from all ministries, presidency rotates among the ministries.

3 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Future Reviews of Ministries (1/2) Prime Minister’s Office aggregates the Future Reviews of the Ministries Prepared under the supervision of Permanent Secretary Prepared through discussions In the Ministry and administrative sector Contribution also from intrest groups and citizens (social media) The aim is to produce assesments of situation and development  To social depate  To the basis of government programme Perspective of the Reviews are 8-10 years

4 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Future Reviews of Ministries (2/2) A compact package of information on the most influencial questions of each administrative sector The third time – 2010 Contributed to the establishment of the MEE in 2006/2007 Prime Ministers’ Office delivers the reviews to all the parties represented in Parliament, 7 months before elections Contents, e.g. (MEE): Operational environment Challenges Proposals to activities

5 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 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 1 2 2 3 3 4 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 planningSteering methodsImplementation of strategy Monitoring, reporting and assessment of strategy

6 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Source of Information to the Corporate Strategy of the MEE PMI Office foresight network SITRA foresight panels MEE corporate foresight and strategies EVA skenarios OECD, Mc KINSEY Etc. Other separate future visions Operational Environment Description Target policies from MEE departments and corporation Government Programme Corporate Strategy and its annual specifications Social mediaEurope 2020 Effectiviness targets and measures

7 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Lessons Learnt on Strategies (1/3) If a structure and a strategy conflict, the structure counts A good structure is not enough, the way of action (a culture) is crucial An unappropriate structure can be an obstacle for an organisation to function properly Structure can be transformed in a day and a strategy in a month, but you may need years to change the way of action A good strategy is Short, Sharp and Clear Usually there are many strategies concerning the same phenomena Incoherence The word strategy can be inflated The preparation of strategies should be collaborative Timetable, cooperation E.g. corporate strategy and substance strategies

8 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Lessons Learnt on Strategies (2/3) Commitment of the management is crucial Well-functioning forums contribute to strategic discussion There is a great difference between self-sufficient agencies and ”steering-eager” agencies  Big challenge to strategic steering by a Ministry Important to understand the difference between a strategy and a role of an actor A matrix organisation leads inevitably to duble organization, to some extent  A cost to be paid for stronger cooperation and coherence

9 Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Lessons Learnt on Strategies (3/3) The performance management and corporate steering in broad sense is in transitional period in governmental level The MEE has developed these structures and processes as a kind of pilot administration The Target policies (the corporate strategy priorities) needs to be specified and implemented in collaboration in order to be effective and credible Not just new headlines with old contents A better to collaboration process with relevant stakeholders The linkage of Target policies to the budget process needs to be enhanced The steering system and the matrix organisation of the Ministry have been assessed and evaluated Some simplifications will follow The policy effectiviness of the Ministry’s administrative sector will be evaluated in next governmental term A corporate way of thinking is to be maintained


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