The document discusses how governments must deal with constant and accelerating change in the modern world. It argues that governments need to dismantle old barriers, prefer optimizing the whole system rather than parts, accept more risk, act more and plan less through experimentation, and leverage new digital technologies. It also stresses that culture can undermine even good strategies if organizations do not change internally to match the external pace of change, and that minimum viable products and constant experimentation are needed to effectively introduce innovations.

1. Government Dealing With Change
Antti Joensuu, 1.7.2016

2. Work nowadays…
… is interaction between people.
Esko Kilpi
Ministry of Economic Affairs and Employment of Finland • www.tem.fi 2

3. Comfort
corner
Ministry of Economic Affairs and Employment of Finland • www.tem.fi 3

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. 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. 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. 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. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 8
Resistance to change

9. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 9
Progress

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. 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. 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. 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. 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. 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. 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. Minimum viable product and experimenting
Ref.: Henrik Kniberg
Ministry of Economic Affairs and Employment of Finland • www.tem.fi 17

18. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 18
Culture eats strategies for breakfast

19. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 19
A Ministry’s Strategy

20. 1.7.2016Ministry of Economic Affairs and Employment of Finland • www.tem.fi 20
Strategy helps
Without strategy With strategy

21. Ministry as a system
Ref. Dieter Legat
Delta Institute
Ministry of Economic Affairs and Employment of Finland • www.tem.fi 21

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. 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