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Government Dealing With Change
Antti Joensuu, 1.7.2016
Work nowadays…
… is interaction between people.
Esko Kilpi
Ministry of Economic Affairs and Employment of Finland • www.te...
Comfort
corner
Ministry of Economic Affairs and Employment of Finland • www.tem.fi 3
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 4
Suboptimisation vs. total optimisation
Globa...
Draw a control line around the organisation:
anything coming through?
Results
Activity
theatre
Ministry of Economic Affair...
The administration should be an enabler instead
of trying to control everything
• Dismantle barriers for success (i.e. lac...
Practical tools for fast delivery in changing
environment
• Open workspace
• Social Media
• Flexible work arrangements
• S...
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 8
Resistance to change
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 9
Progress
Nature of change and implications
• Change is exponential whereas human brain can deal with linear change only
(P.H. Diama...
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 11
Productivity achieves its minimum…
…when we...
Innovation is a necessity
“If change is happening on the outside faster than on the inside the end is in
sight.”(Jack Welc...
Three alternative strategies vis-à-vis change
1. execute the necessary reform (with some pain)
2. wait and do it later (wi...
New and old in balance - ambidexterity
New customers and
partners
Old customers and
partners
Old products,
technologies,
w...
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 15
Increasing productivity
Innovations are nee...
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 16
Early Change Should be Attractive
Anticipat...
Minimum viable product and experimenting
Ref.: Henrik Kniberg
Ministry of Economic Affairs and Employment of Finland • www...
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 18
Culture eats strategies for breakfast
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 19
A Ministry’s Strategy
1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 20
Strategy helps
Without strategy With strate...
Ministry as a system
Ref. Dieter Legat
Delta Institute
Ministry of Economic Affairs and Employment of Finland • www.tem.fi...
Strategic choices, criteria for selection
• Focus
• Clear and understandable
• ~4 years time span
• Horisontal issues
• Me...
Source of KPI
Role Strategy
Key Performance Indicators
Indikator1
Indicator 2
Indicator 3
Indicator 4
Indicator 5
…
Minist...
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Government dealing with change

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Change is happening faster and faster. Governments are challenged constantly and the only way forward is to accept the need of fast reforms, together with the pain and the risk associated.

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Government dealing with change

  1. 1. Government Dealing With Change Antti Joensuu, 1.7.2016
  2. 2. Work nowadays… … is interaction between people. Esko Kilpi Ministry of Economic Affairs and Employment of Finland • www.tem.fi 2
  3. 3. Comfort corner Ministry of Economic Affairs and Employment of Finland • www.tem.fi 3
  4. 4. 1.7.2016Ministry 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 …
  5. 5. Draw a control line around the organisation: anything coming through? Results Activity theatre Ministry of Economic Affairs and Employment of Finland • www.tem.fi 5
  6. 6. 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. Ministry of Economic Affairs and Employment of Finland • www.tem.fi 6
  7. 7. Practical tools for fast delivery in changing environment • Open workspace • Social Media • Flexible work arrangements • Self organising networks • Strategic guiding (incl. performance agreements) Ministry of Economic Affairs and Employment of Finland • www.tem.fi 7
  8. 8. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 8 Resistance to change
  9. 9. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 9 Progress
  10. 10. 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 Ministry of Economic Affairs and Employment of Finland • www.tem.fi 10
  11. 11. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 11 Productivity achieves its minimum… …when we are busy, efficient, and use modern tools but if we are still dealing with things of the past
  12. 12. 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 Ministry of Economic Affairs and Employment of Finland • www.tem.fi 12
  13. 13. 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 Ministry of Economic Affairs and Employment of Finland • www.tem.fi 13
  14. 14. 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 Ministry of Economic Affairs and Employment of Finland • www.tem.fi 14
  15. 15. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 15 Increasing productivity Innovations are needed even for survival Ref.: Etla
  16. 16. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 16 Early Change Should be Attractive Anticipatory change Reactive change Crisis performance time Ref. Joseph N. Fry, J. Peter Killing Penalty Potential performance
  17. 17. Minimum viable product and experimenting Ref.: Henrik Kniberg Ministry of Economic Affairs and Employment of Finland • www.tem.fi 17
  18. 18. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 18 Culture eats strategies for breakfast
  19. 19. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 19 A Ministry’s Strategy
  20. 20. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 20 Strategy helps Without strategy With strategy
  21. 21. Ministry as a system Ref. Dieter Legat Delta Institute Ministry of Economic Affairs and Employment of Finland • www.tem.fi 21
  22. 22. Strategic choices, criteria for selection • Focus • Clear and understandable • ~4 years time span • Horisontal issues • Measurability • Help in resource allocation Ministry of Economic Affairs and Employment of Finland • www.tem.fi 22
  23. 23. Source of KPI Role Strategy Key Performance Indicators Indikator1 Indicator 2 Indicator 3 Indicator 4 Indicator 5 … Ministry of Economic Affairs and Employment of Finland • www.tem.fi 23

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