1. Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Day 9: Performance Agreements 10th February 2011 Tapio Laamanen

2. Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Preparation Process of Performance Negotiations (1/2)  General directions from the ministry Strategy basis Given resources according to ministry’s budget proposal Each agency’s views concerning target setting asked for Special horizontal themes Directions also concerning drafting of agencies’ operational and financial plan  Material to be delivered from agencies to ministry  Forum for stakeholders Corporate steering unit, performance management officers, coordinative persons from agencies Discussion on directions  common understanding

3. Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Preparation Process of Performance Negotiations (2/2)  Preparation of draft performance agreement of an agency concerned Performance management officer  Intra-ministerial preparation meeting (agency concerned) Chaired by chairperson of the coming negotiations (director general, undersecretary or permanent secretary) Participants from other departments/units of the ministry  ”Common voice” for ministry  Negotiation material to be delivered from ministry to each agency Agenda Draft performance agreement Other complementary material

4. Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 MEE Strategy and Performance Management Calender (½) 4 JanuaryFebruaryMarchAprilMayJune Corporate strategy Preparation of the Strategy (n + 1) Target Policies of the Strateg y(n +1) Decisio n on the Strateg y (n +1) Substance Strategies Preparation of substance strategies (n + 1) Decisions on strategies (n + 1) Budget Proposal Budget proposal directions to agencies (n + 1) Budget proposal preparation (incl. Preliminary performance targets) (n+ 1) Decision on budget proposal (n + 1) Performance agreements The directions for the next planning period (n+1, n+2)

5. Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 5 JulyAugustSeptemberOctoberNovemberDecember Corporate strategy Preliminary preparation of the corporate strategy (n +2) Substance strategies Spending limit preparation Planning of the subordinated agencies (n+2) Spending limit preparation in the ministry (n + 2) Decision on the spending limit proposal (n + 2) Budget proposal Feedba ck from MoF (n + 1) Negotiat ions MoF- MEE (n + 1) Govern ment negotiati ons (n + 1) Budget proposal to Parliam ent (n + 1) Decision on the Budget (n +1) Performance agreement Performance target preparation in the agencies ( n + 1) Preparat ions for the negotiati ons (n +1) Performance target negotiations between Ministry and the agencies (n + 1) MEE Strategy and Performance Management Calender (2/2)

6. Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Agenda of the Performance Management negotiations – Recommendation (1/2) 1.Opening the negotiation Standpoints concerning the current situation Strategic starting points from corporate strategy and substance strategy 2.Attainment of performance target concerning the previous year Relevant issues from the Public statement of the Ministry Remarks from reports of the National Audit Office; actions started 3.Attainment of performance targets concerning the present year – the first half of the year Successes, failures, challenges Most important projects of the year 4.Operational and financial plan of the Agency concerning four year period after the next year Changes in the operational environment The most important development projects Preliminary starting points and targets to the year after the agreement year (views to budget proposal preparation concerning next spring)

7. Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03 Agenda of the Performance Management negotiations – Recommendation (2/2) 5.Performance agreement draft Handling Approval of the agreement if specifications are not needed 6.Special horizontal themes concerning the whole administrative branch (e.g. productivity program, IT structures and services) 7.Special questions concerning the Agency 8.Other items 9.End of the negotiation, conclusions from the chairperson