1. Challenges in Modernizing Statistical Production Irena Krizman Director-General SURS member of the HGL-BAS

2. Content of the presentation Workshop on HRM and Training, Budapest, 5-7 September 2012 2 1.High Level Group on Business Architecture in Statistics (HLG-BAS). 2.Managing organisational change and strategic HRM. 3.Slovenian case. 4.Conclusion or closing thoughts

3. HLG-BAS Workshop on HRM and Training, Budapest, 5-7 September 2012 3

4. Background - HLG-BAS HLG-BAS established in 2010 by CES Bureau Membership: Heads of NSOs and Senior Managers from IOs Mission: “to direct and guide strategic developments in ways official statistics are produced” Workshop on HRM and Training, Budapest, 5-7 September 2012 4

5. Where is our position in the information society? Workshop on HRM and Training, Budapest, 5-7 September 2012 5

6. Link between the HLG-BAS and working groups Workshop on HRM and Training, Budapest, 5-7 September 2012 6

7. Statistical Business Model Workshop on HRM and Training, Budapest, 5-7 September 2012 7 Common Generic lndustrialised Statistics GSBPMGSIM MethodsTechnology Business Concepts Statistical HowToProduction HowTo conceptual practical Common Generic lndustrialised Statistics GSBPMGSIM MethodsTechnology Business Concepts Information Concepts Statistical HowToProduction HowTo conceptual practical 12) ESSnet on Standardisation 11) Sponsorship on Standardisation 20) SDMX Sponsors 25) Paris Microdata Access Group 10) Metadata Working Group 15) Statistical Network 26) OECD Stat. User Group 24) DDI 8) CORA / CORE 21) SDMX Expert Group 14) WG Quality in Statistics (13 Sponsorship on Quality) 2) METIS 9) DIME 23) SDMX Stat. Standards 1) MSIS 3) SAB 7) SISAI 6) ITDG 18) PC-Axis 22) SDMX Tech Standards 27) Blaise User Group 15) Statistical Network 4) SDE 16) SOS Group 19) IMAODBC 17) SDMX/DDI Dialogue 5) HMRT

8. Drivers – the product challenge The world is changing “Official” statistics are no longer the only source of data - other parties are now making statistics Current methods are outdated – public impatience In the information society we now have an abundance of data from many other sources A radical re-think of statistical products is needed Workshop on HRM and Training, Budapest, 5-7 September 2012 8

9. Drivers – the process challenge We need: more & quicker statistics to be more flexible & agile to move away from expensive, tailored solutions process harmonisation to share & collaborate Workshop on HRM and Training, Budapest, 5-7 September 2012 9 Top management is driving the change!

10. The Vision - Products Official statistics need to stay relevant New and better products & services Products should shift from a national towards a global perspective Production methods - different & better processes, lower costs, more collaboration Products should leverage data sources already in society Workshop on HRM and Training, Budapest, 5-7 September 2012 10

11. The Vision - Processes Production should be based on common & standardised processes Industrialisation of statistics production Create an “official information industry” Workshop on HRM and Training, Budapest, 5-7 September 2012 11

12. The strategy – i.improve existing processes Improve processes to free up resources for the new developments Harmonise using international standards like Generic Statistical Business Process Model (GSBPM) Generic Statistical Information Model (GSIM) Align methods and technology Implement standards (SDMX, DDI, etc.) Create GSBPM and GSIM plug-and-play architecture Workshop on HRM and Training, Budapest, 5-7 September 2012 12

13. The strategy – ii. Component-based architectures Design products as assemblies or frameworks using components. This way official statistics outputs can be rich, yet easy to produce. Pilot projects will be started to explore this possibility. Workshop on HRM and Training, Budapest, 5-7 September 2012 13

14. The strategy – iii. Research new products Produce new products using the vast amounts of data becoming available Provide better measurements of new aspects of society, such as e-commerce and globalisation. Workshop on HRM and Training, Budapest, 5-7 September 2012 14

15. The strategy – iv. Priorities Maintain a yearly list of key priorities and timeframes assigned to appropriate expert groups. Annual workshop with all expert group leaders will make sure progress is made and support is maintained. Workshop on HRM and Training, Budapest, 5-7 September 2012 15

16. MANAGING ORGANISATIONAL CHANGE AND HRM Workshop on HRM and Training, Budapest, 5-7 September 2012 16

17. Workshop on HRM and Training, Budapest, 5-7 September 2012 17 Prerequisites for change Willingness to change Ability to change Readiness for change Speed of change

18. Willingness to change The role of top management in driving the change Leadership support of the vision and strategy Communication and building the culture and need for change within NSO‘s Priority setting and resource allocation Promoting the use of agreed standards Setting the HRM vision and strategy Organising new employee skills to meet the challenges Adapting the organisation to the „lean“ concept Intensify the strategic partnerships Workshop on HRM and Training, Budapest, 5-7 September 2012 18

19. Strategic partnerships With other national and international statistical organisations With third parties in the information society (instead of trying to compete with them) Questions: Do national Business and HRM strategies follow the HLG-BAS vision and strategy? How is HLG-BAS work communicated within and outside official statistics? What could be the role of third parties in executing the strategy and how to attract them to cooperate? Workshop on HRM and Training, Budapest, 5-7 September 2012 19

20. Ability to change Improving their ability to change, organizations can increase their chances of success, both today and in the future. Kotter suggests an 8-step process: 1.Establishing a Sense of Urgency 2.Creating the Guiding Coalition 3.Developing a Change Vision 4.Communicating the Vision for Buy-in 5.Empowering Broad-based Action 6.Generating Short-term Wins 7.Never Letting Up 8.Incorporating Changes into the Culture Activities to be performed (HLG-BAS and CES member countries) 1.Examine the market and major competitive realities (done) 2.Assemble a powerful group to lead a change (done) 3.Create a vision and strategies to achieve that vision (done) 4.Use every vehicle possible to communicate -> in progress 5.Remove obstacles to change and encourage innovations 6.Realistic plan of improvements and recognize and reward staff involvement 7.Remove the systems, structures and policies that don‘t fit the vision 8.Link new behaviour and organizational success, ensure leadership and succession Workshop on HRM and Training, Budapest, 5-7 September 2012 20 Reference: Kotter P.: http://www.kotterinternational.com/kotterprinciples/changestepshttp://www.kotterinternational.com/kotterprinciples/changesteps

21. The guiding coalition A strong guiding coalition is an essential part of the early stages of any effort to restructure, reengineer or retool a set of strategies. The guiding coalition should be put together carefully, so its membership reflects position power, expertise, credibility, and leadership. Both management and leadership skills are needed in the coalition. The former keeps the whole process under control, while the latter is needed to drive the change. Leadership skills are critical. Without a clear, guiding vision, the effort to change can dissolve into projects which are confusing, incompatible with corporate policy, and time consuming. Reference: John P. Kotter, Boston, MA: Harvard Business School Press, 1996, for more see also What Leaders Really do, Harvard Business Review Book, 1999 Workshop on HRM and Training, Budapest, 5-7 September 2012 21

22. NSI‘s support for rejuvenating statistical outputs and need to organisational change? (for more see: Results of the Pre-CES consultation on the HLG-BAS Strategy, Working paper 2012/17 31. May 2012) Countries‘ statements: –Yes, but what we must agree upon is a work plan to implement the program and the list of priority steps (Israel) –Yes, we are willing to change, but capacity to change crucially depends on people and their skills (Cyprus) –Yes, organisational change has to facilitate greater collaboration between organisations and with third parties (Latvia) –Yes, but transition needs the strong support and leadership of top management (Estonia) –Yes, we have already discussed the documents with our staff and included the vision into SL strategy for 2013-2017 (Lithuania) –No, there are currently enough initiatives, see the slowness of the process with witch countries and international organisations introduce SDMX (Switzerland) –Yes, but remaining focused on the short term steps towards longer term goals will be key to success of the initiative (New Zealand) Workshop on HRM and Training, Budapest, 5-7 September 2012 22

23. Readiness for change Fewer resources but more demands – can lean production of statistics be a solution? What does „lean“ mean? Lean is doing more with less. Use the least amount of effort, energy, equipment, time, facility space, materials, and capital – while giving customers exactly what they want. Lean Thinking is more relevant today. Lean ideas are the single most powerful tool available for creating value and eliminating waste in any organization. It’s about changing mindsets to identify and eliminate waste. Reference: Womack, James P. & Jones, Daniel T. (2010): Lean Thinking, Second edition. Simon & Schuster Workshop on HRM and Training, Budapest, 5-7 September 2012 23

24. Core principles of Lean Thinking 1.Specify Value. Value can be defined only by the ultimate customer. Value is distorted by pre-existing organizations, especially engineers and experts. They add complexity of no interest to the customer. 2.Identify the Value Stream. The Value Stream is all the actions needed to bring a product to the customer. Communication between partners in the value stream is crucial to avoid overlapping. 3.Flow. Make the value-creating steps flow. Eliminate departments that execute a single-task process on large batches. 4.Pull. Let the customer pull the product from you. 5.Pursue Perfection. There is no end to the process of reducing time, space, cost and mistakes. 6.Teach People How to See. Create a lean training function. Teach all employees the principles and techniques of lean thinking. Womack, James P. & Jones, Daniel T. (2010): Lean Thinking, Second edition. Simon & Schuster Workshop on HRM and Training, Budapest, 5-7 September 2012 24

25. Speed of change: Managing the impact on staff Strong leadership message of support Adaptation of organisational scheme towards lean organisation (removing stove pipes) Sharing the information internally and with outside partners Make priorities in case of budget cuts; continuous training and international cooperation are investments and not only costs. Active participation in international projects is a must in order to manage the change Workshop on HRM and Training, Budapest, 5-7 September 2012 25

26. New skills will be needed in the future Request for higher qualification levels New occupations such as information architects, „big data“ miners, information market analysts New skills: increased need for leadership, multi-area expertise in assessing and communicating user needs, managerial skills like leaning the processes, estimate the new sources such as big data, communicate the products and services and cooperate with other organisations in the information industry Do NSO‘s have forward looking HRM strategies and policies? What is the level of knowledge in NSO‘s managerial staff (leadership and managerial positions)? How to improve the governance of NSO‘s? Workshop on HRM and Training, Budapest, 5-7 September 2012 26

27. New ways of working and challenges with that 1.Project and team work 2.New cooperation modes inside the statistical community and with relevant stakeholders 3.Validation, endorsement, confirmation of the results 4.Maintenance and support of new developments 5.Strategies to keep all stakeholders informed, engaged and encouraged; maintain collaborations 6.User support of common developed solutions 7.Users become a part of statistical production 8.Practical business process use cases for reference and validation purposes 1.Change driving coalitions, sharing experiences and good practices 2.Small groups with clear mandate, openness to associate external partners, cloud services 3.Develop the process which needs to be followed in international cooperation 4.Legal and organisational issues 5.Sharing the information within statistical organisations but also maintaining interests 6.Recommendation of the Sharing Advisory Board 7.Creating pull environment 8.Agreement on the plan of concrete use cases Workshop on HRM and Training, Budapest, 5-7 September 2012 27

28. 10 observations on the process of change John P. Kotter (1999) What leaders really do, Harvard Business Press. 1.Time consuming and complex 2.Besides 8 steps, there is a need to react on non-specific actions 3.Mistakes are possible 4.Issue of leadership is centrally important (vision, strategy); management means keeping the current system operational 5.Leadership is a growing part of managerial work (the rate of change is growing) 6.Planning vs. creation vision, controlling vs. inspiring 7.Management = formal hierarchy, leadership is not 8.Leadership = informal independence on others instead of just formal power over others 9.Networks and dependence = good working relationships with people in the networks 10.Manager and leader are diverse tasks Workshop on HRM and Training, Budapest, 5-7 September 2012 28

29. Continuous Process Improvement Create new ways to keep score. Create new ways to reward people. Train lean, learn lean. Make everything transparent –so everyone can see progress. Right-size your tools to insert directly into the value stream. Convert to bottom-up initiatives. –Lean ideas are democratic and not top-down. –Layers of management can be stripped away. Perfect your processes. Womack, James P. & Jones, Daniel T. (2003) New York, NY: Free Press, Simon & Schuster, Inc. Workshop on HRM and Training, Budapest, 5-7 September 2012 29

30. SLOVENIAN CASE Workshop on HRM and Training, Budapest, 5-7 September 2012 30

31. Slovenian case (I) SURS has 360 staff members, –around 80% of the budget for the staff costs (wages, internal and external training, participation in the ESS and international activities). People are the most important asset. Too small to build „stove pipes“, but still standardisation is an ongoing challenge. Process oriented - a long history of single data collection (input) division. In recent years we have developed project and team work (list of projects based on long term strategy and rules of procedure for project work). Workshop on HRM and Training, Budapest, 5-7 September 2012 31

32. Slovenian case (II) Cooperation between subject matter statisticians, IT, data collection division staff, general methodologists and data disseminators and communicators is organised and strongly requested. Training (internal, external), sharing of good practices and active partnership in the ESS and in international cooperation have an important role in developing SURS‘s competence base. Strong leadership support for intensive cooperation and communication at all levels in SURS and with all stakeholders nationally and internationally. SURS has built a long term (2012-2017) Strategy on HRM. Workshop on HRM and Training, Budapest, 5-7 September 2012 32

33. HRM priorities from SURS‘s long term strategy 2013-2017 Vision: Highly skilled, well organised and motivated employees Project work is highly recommended for development work and major survey revisions. Avoidance of complex projects and work in small groups are requested. Reducing the number of organisational units and greater professionalization of their heads (leadership and management skills). Improving the educational level of employees with regular and internal training and professional career guidance and development of new occupational profiles. Cooperation with the academic community. Workshop on HRM and Training, Budapest, 5-7 September 2012 33

34. HRM priorities from SURS‘s long term strategy 2013-2017 Vision: Highly skilled, well organised and motivated employees New technologies and the reduction of resources will cause the number of employees to drop. Strengthening cooperation between individual profiles in the entire process of implementing the statistical survey. Cooperation within the ESS and international projects will be an important element for motivating and training of employees. Workshop on HRM and Training, Budapest, 5-7 September 2012 34

35. Instead of conclusion - Diagnosing and dealing with the resistance to change by John P. Kotter and Leonard A. Schleninger (1999), Choosing Strategies for Change, Harvard Business School Press Diagnosing resistance: Self interest Misunderstanding and lack of trust Different assessments Low tolerance for change Dealing with resistance Education and communication Participation and involvement Facilitation and support Plan properly Don‘t give up Workshop on HRM and Training, Budapest, 5-7 September 2012 35

36. 3 Key Points 1.Statistical organisations must be flexible to adapt to new circumstances if they want to keep their relevance 2.We need the RIGHT PEOPLE with the RIGHT SKILLS in the RIGHT ORGANISATIONAL ENVIRONMENT 3.Human resources and training are an essential part of the long-term strategy for any NSO Workshop on HRM and Training, Budapest, 5-7 September 2012 36