Government dealing with change

Government Dealing With ChangeAntti Joensuu, 1.7.2016

Work nowadays…

… is interaction between people.

Esko Kilpi

Ministry of Economic Affairs and Employment of Finland • www.tem.fi 2

Comfortcorner

Interaction space, new ideas


01.05.2023Ministry of Economic Affairs and Employment of Finland • www.tem.fi 4

Suboptimisation vs. total optimisation

Global interest

Local interest

Short term return Long term return

EU’s interest

…

Brexit

Climate

agreement

Reforms

Silos

Draw a control line around the organisation: anything coming through?

Results

Activitytheatre


The administration should be an enabler instead of trying to control everything

• Dismantle barriers for success (i.e. lack of openness and communication, old structures, old legislation…). Accept risk

• Prefer total optimisation instead of the sum of partial optimisations. Accept risk.

• ”Givers Take All”, intrapreneurship, leaving the zone of comfort. Accept risk

• Act more – plan less. Experiment. Accept risk.

• Digital revolution is an enabler for paradigm change. Use it. Accept risk.


Practical tools for fast delivery in changing environment

• Open workspace• Social Media• Flexible work arrangements• Self organising networks• Strategic guiding (incl. performance agreements)



Resistance to change


Progress

Nature of change and implications• Change is exponential whereas human brain can deal with linear change only

(P.H. Diamandis)

• 50% of all scientists throughout the history are still alive• Every 3 years or so the cumulative information is doubled• Especially fast the change is where dynamic sectors interact (robots, internet of

things…)

• Think big, money will follow!

• Fail fast vs. endless working groups & task force pollution



Productivity achieves its minimum…

…when we are busy, efficient, and use modern tools but if we are still dealing with things of the past

Innovation is a necessity

“If change is happening on the outside faster than on the inside the end is in sight.”(Jack Welch)”

“ …of course this does not apply to ministries, in the worst case they continue their business as usual and may cause plenty of destruction around without even being aware of that” (Antti Joensuu)

=> Responsibility of civil servants is crucial


Three alternative strategies vis-à-vis change

1. execute the necessary reform (with some pain)

2. wait and do it later (with a lot of pain)

3. die


New and old in balance - ambidexterity

New customers and partners

Old customers and partners

Old products, technologies, ways of doing

New products, technologies, ways of doing

Ref. Michael Tushman



Increasing productivity

Innovations are needed even for survival

Ref.: Etla


Early Change Should be Attractive

Anticipatory change

Reactive change

Crisis

performance

time

Ref. Joseph N. Fry, J. Peter Killing

Penalty

Potential performance

Minimum viable product and experimenting

Ref.: Henrik Kniberg



Culture eats strategies for breakfast


A Ministry’s Strategy


Strategy helps

Without strategy With strategy

Ministry as a system

Ref. Dieter LegatDelta Institute


Strategic choices, criteria for selection• Focus• Clear and understandable• ~4 years time span• Horisontal issues• Measurability• Help in resource allocation


Source of KPI

Role Strategy

Key Performance IndicatorsIndikator1Indicator 2Indicator 3Indicator 4Indicator 5…


Government & Nonprofit

Government dealing with change