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Dortmund Consensus
Common 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 jobs
from 1970-2000
in coal, steel and beer
• 1980 – 2020
nearly 40 years of shaping
structural change
2Tilburg 2016
European Week of Social Innovation
In the Ruhr:
Only Dortmund‘s Population is Growing
Tilburg 2016
European Week of Social Innovation
3
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 of
1983
• Instead of coal, steel and beer with large companies and a great
number of small dependent industrial services
• Now: SME-structured, technology-based local economy with
86 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)
Tilburg 2016
European Week of Social Innovation
4
What remained (2000)
& what‘s there now
Tilburg 2016
European Week of Social Innovation
5
Social Science
Centre, e.g. sfs
+ commerce
Warehouses
Transport logistics
New quarter &
jobs around lakeDevelopment &
production
University (*1968)
&
Technology Centre
U Tower &
creativity quarter
& new housing
Thier Gallery
(Mall)
IKEA
Central Europe
Warehouse
Nearly 50,000
students in
university and
university of applied
sciences + other
institutes
280.4 km²
The most astonishing changes 1
TechnologyCentreDortmund - 1983 TechnologyCentreDortmund - 2016
Tilburg 2016
European Week of Social Innovation
6
More than 12,000 new jobs
The most astonishing changes 2
Phoenix East – the steelworks Phoenix East – the lake
Tilburg 2016
European Week of Social Innovation
7
Representatives of
the shareholders
Dortmund Consensus – Where it comes from
• 1951: a long tradition of
Co-determination in the
Coal and Steel Industries
• Equal representation
on the Supervisory Board
for companies with
more than
1000 employees
• Labour Director on the
Management Board
(cannot be elected against employee votes)
Tilburg 2016
European Week of Social Innovation
8
Representatives of
the employees
Representatives of the trade
unions elected by the employee
representatives (works councils)
Chairperson
Neutral person
Example for
11 seats
Continuity of
social 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 other
political parties (black/green) approx. according to their share in votes
• Example: most of the Ruhr Area city governments are controlled by
the Land (Bezirksregierung; intermediate administration level between federal state and
municipality levels) due to financial restrictions.
Dortmund has always achieved a common vote on budget.
Tilburg 2016
European Week of Social Innovation
9
Representative Boards and Advisory Boards
in all relevant institutions
• Examples
Supervisory Board TechnologyCentreDortmund
Supervisory Board of Local Labour Agency
Advisory Board Economic and Labour Promotion
Local 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 the
quarter level need regular two-step participation of citizens
Tilburg 2016
European Week of Social Innovation
10
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-making
processes 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 bonding
has become a relatively open model of networking and co-operation
• Evidence: most important non-electoral jobs in public life are now obtained
through open, competence-based procedures with most positions
occupied from outside (non-dortmunders)
Tilburg 2016
European Week of Social Innovation
11
Structure vs. strategy dilemma
• Structure follows strategy
(Chandler) or
• Strategy follows structure
(Hall and Saias; Mintzberg)
• Overcome
by culture of co-operation
(following idea of Sattelberger:
Continuous improvement)
Tilburg 2016
European Week of Social Innovation
12
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

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Dortmund Consensus: Common Sense for Common Wealth by Hans Werner Franz

  • 1. Dortmund Consensus Common Sense for Common Wealth by Hans-Werner Franz Tilburg 2016 : European Week of Social Innovation SIC Summer School, 22-23 September 2016
  • 2. „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 jobs from 1970-2000 in coal, steel and beer • 1980 – 2020 nearly 40 years of shaping structural change 2Tilburg 2016 European Week of Social Innovation
  • 3. In the Ruhr: Only Dortmund‘s Population is Growing Tilburg 2016 European Week of Social Innovation 3 565000 570000 575000 580000 585000 590000 595000 600000 605000 1990 2000 2005 2008 2009 2010 2011 2012 2013 2014 2015 Dortmund Population
  • 4. Employment • In 2013, the active population had reached and surpassed the level of 1983 • Instead of coal, steel and beer with large companies and a great number of small dependent industrial services • Now: SME-structured, technology-based local economy with 86 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) Tilburg 2016 European Week of Social Innovation 4
  • 5. What remained (2000) & what‘s there now Tilburg 2016 European Week of Social Innovation 5 Social Science Centre, e.g. sfs + commerce Warehouses Transport logistics New quarter & jobs around lakeDevelopment & production University (*1968) & Technology Centre U Tower & creativity quarter & new housing Thier Gallery (Mall) IKEA Central Europe Warehouse Nearly 50,000 students in university and university of applied sciences + other institutes 280.4 km²
  • 6. The most astonishing changes 1 TechnologyCentreDortmund - 1983 TechnologyCentreDortmund - 2016 Tilburg 2016 European Week of Social Innovation 6 More than 12,000 new jobs
  • 7. The most astonishing changes 2 Phoenix East – the steelworks Phoenix East – the lake Tilburg 2016 European Week of Social Innovation 7
  • 8. Representatives of the shareholders Dortmund Consensus – Where it comes from • 1951: a long tradition of Co-determination in the Coal and Steel Industries • Equal representation on the Supervisory Board for companies with more than 1000 employees • Labour Director on the Management Board (cannot be elected against employee votes) Tilburg 2016 European Week of Social Innovation 8 Representatives of the employees Representatives of the trade unions elected by the employee representatives (works councils) Chairperson Neutral person Example for 11 seats
  • 9. Continuity of social 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 other political parties (black/green) approx. according to their share in votes • Example: most of the Ruhr Area city governments are controlled by the Land (Bezirksregierung; intermediate administration level between federal state and municipality levels) due to financial restrictions. Dortmund has always achieved a common vote on budget. Tilburg 2016 European Week of Social Innovation 9
  • 10. Representative Boards and Advisory Boards in all relevant institutions • Examples Supervisory Board TechnologyCentreDortmund Supervisory Board of Local Labour Agency Advisory Board Economic and Labour Promotion Local 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 the quarter level need regular two-step participation of citizens Tilburg 2016 European Week of Social Innovation 10
  • 11. 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-making processes 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 bonding has become a relatively open model of networking and co-operation • Evidence: most important non-electoral jobs in public life are now obtained through open, competence-based procedures with most positions occupied from outside (non-dortmunders) Tilburg 2016 European Week of Social Innovation 11
  • 12. Structure vs. strategy dilemma • Structure follows strategy (Chandler) or • Strategy follows structure (Hall and Saias; Mintzberg) • Overcome by culture of co-operation (following idea of Sattelberger: Continuous improvement) Tilburg 2016 European Week of Social Innovation 12 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