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Dortmund ConsensusCommon Sense for Common Wealth
by
Hans-Werner Franz
Tilburg 2016 : European Week of Social Innovation
SIC Summer School, 22-23 September 2016
„What comes up must go down“Blood Sweat & Tears (Spinning Wheel), also Isaac Newton
• More than 100 years of rise,followed by 40 years of decline,loss of about 70.000 jobsfrom 1970-2000in coal, steel and beer
• 1980 – 2020nearly 40 years of shapingstructural change
2Tilburg 2016 European Week of Social Innovation
In the Ruhr: Only Dortmund‘s Population is Growing
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565000
570000
575000
580000
585000
590000
595000
600000
605000
1990 2000 2005 2008 2009 2010 2011 2012 2013 2014 2015
Dortmund Population
Employment
• In 2013, the active population had reached and surpassed the level of1983
• Instead of coal, steel and beer with large companies and a greatnumber of small dependent industrial services
• Now: SME-structured, technology-based local economy with86 per cent of workforce employed in services (industry: 12.6%)
• Largest employers: City and University, city-owned services like Electricity, Gas and Water supplier and Public Transport
• Largest private company is world market leader in high-tech pumps(Wilo)
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What remained (2000)& what‘s there now
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Social Science Centre, e.g. sfs
+ commerceWarehouses
Transport logistics
New quarter & jobs around lakeDevelopment &
production
University (*1968) &
Technology Centre
U Tower & creativity quarter
& new housing
Thier Gallery (Mall)
IKEACentral Europe
Warehouse
Nearly 50,000 students in
university anduniversity of applied
sciences + otherinstitutes
280.4 km²
The most astonishing changes 1
TechnologyCentreDortmund - 1983 TechnologyCentreDortmund - 2016
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More than 12,000 new jobs
The most astonishing changes 2
Phoenix East – the steelworks Phoenix East – the lake
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Representatives ofthe shareholders
Dortmund Consensus – Where it comes from
• 1951: a long tradition ofCo-determination in theCoal and Steel Industries
• Equal representationon the Supervisory Boardfor companies withmore than1000 employees
• Labour Director on theManagement Board(cannot be elected against employee votes)
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Representatives ofthe employees
Representatives of the tradeunions elected by the employee
representatives (works councils)
Chairperson
Neutral person
Example for11 seats
Continuity ofsocial democratic city government• Election results:
1950 – 1999: between 58 and 50 per cent (SPD governing alone)
1999 – 2016: around 40 per cent(SPD governing with established coalitions or changing coalitions)
• Responsible positions in city administration are shared with otherpolitical parties (black/green) approx. according to their share in votes
• Example: most of the Ruhr Area city governments are controlled bythe Land (Bezirksregierung; intermediate administration level between federal state and
municipality levels) due to financial restrictions. Dortmund has always achieved a common vote on budget.
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Representative Boards and Advisory Boards in all relevant institutions• Examples
Supervisory Board TechnologyCentreDortmundSupervisory Board of Local Labour AgencyAdvisory Board Economic and Labour PromotionLocal Further Education Council
• Representation of all relevant parties, Chambers, Trade Unions, churches, other relevant civil society representatives
• By law: all relevant construction projects on the municipal and thequarter level need regular two-step participation of citizens
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Specific local governance model has developed: from strong ties to the strength of weak ties
• Based on what Grabher has called „controlled redundance“
• All players with a large variety of interests influence decision-makingprocesses in many places and through many channels
• Once decisions are made, common action in the same direction is prevailing
• What used to be a corporatistic model (co-determination) and felt-like structure of strong ties and politically based bondinghas become a relatively open model of networking and co-operation
• Evidence: most important non-electoral jobs in public life are now obtainedthrough open, competence-based procedures with most positionsoccupied from outside (non-dortmunders)
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Structure vs. strategy dilemma
• Structure follows strategy(Chandler) or
• Strategy follows structure(Hall and Saias; Mintzberg)
• Overcomeby culture of co-operation(following idea of Sattelberger:Continuous improvement)
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Structure
Strategy
Culture
StrategyStructure
Chandler, A.D. Jr. (1962). Strategy and Structure: Chapters in the of the American Industrial Enterprise. Cambridge, MA: MIT Press
Hall, D.J. and Saias, M.A. (1980). Strategy Follows Structure! Strategic Management Journal, Vol 1 No 2 (April-June 1980) 149-163
Mintzberg, H. (1990). The Design School: Reconsidering the Basic Premises of Strategic Management,Strategic Management Journal, Vol 11 No 3 (March-April 1990) 171-195