STATE CHANCELLOR
The Swiss innovation of the public sector
Dr. Peter Grünenfelder
Kyiv
April 22, 2015
STAATSSCHREIBER
STATE
CHANCELLOR
General developments increase pressure on modernization:
main reasons for the Swiss public sector reforms
Modernization atmosphere
Strategic crisis
(f.e. demography)
Dissatisfied citizens
and public demand
"value for money"
Strategy & long-term planning
transparency and
affordable public services
new governance for
state owned enterprises
(public corporate governance)
New public
management instruments
Financial crisis
(economic situation and
increasing competition
between regions)
Linking tasks and
financial objectives
Insufficient
public service
delivery
measurable public services
(performance indicators)
Media coverage
Lack of motivation
of public employees
in analogy to: A. Ritz (2015)
STAATSSCHREIBER
STATE
CHANCELLOR
2
Advantage for public sector innovation:
Federal Switzerland with 26 cantons (states)
Swiss cantons are mainly responsible for: education, organization, tax regimes,
police, health affairs, political rights etc.
STAATSSCHREIBER
STATE
CHANCELLOR
3
Federal Switzerland on 3 levels
STAATSSCHREIBER
STATE
CHANCELLOR
4
Using the potential of federalism
Competition effect
competition (and constant comparisons) between local and regional
entities is an advantage for
the overall Swiss
competitiveness
Laboratory effect of federalism
possibility for comparisons supports innovation of the overall public sector
system
Bottom-up reform of the Swiss public sector
possibility of 'trial and error' by 'pilot projects' on cantonal and local
government level
STAATSSCHREIBER
STATE
CHANCELLOR
5
Public sector innovation, Swiss direct democracy
and citizen orientation



Referendum

mandatory for constitutional amendments and accession to important
international organizations

optional for amendments of laws and important international treaties
(condition: 50‘000 signatures)
Initiative

for constitutional amendments

100‘000 signatures

important indirect effects (agenda setting)
Swiss cantons as experimental laboratories

optional referendum and initiative were first implemented
in cantons and then on federal level

cantons still grant a larger range of direct democratic participation

cantons have extensive own policy responsibilities due to Swiss federalism

e-voting projects
STAATSSCHREIBER
STATE
CHANCELLOR
6
Citizen orientation in Swiss cantons:
Supplementary instruments

financial referendum

mandatory law referendum

decision power of the (cantonal) people about public expenditures and
taxes

leads to lower taxes and lower expenditures

most effective mean to control political authorities
STAATSSCHREIBER
STATE
CHANCELLOR
7
average of cantonal tax charge
Financial referendum leads to lower taxes
OECD Fiscal decentralization
extent of financial referendum right
STAATSSCHREIBER
STATE
CHANCELLOR
8
Focus of public sector reforms in Switzerland
 Efficient use of resources and greater financial transparency - strengthening output and
outcome orientation and implementing private sector steering tools
 Debt break (increasing financial discipline) and national fiscal equalization
 Implementation of strategic and long-term management instruments - strengthening
strategic leadership and control
 Implementation of mid-term planning tools (integrated tasks and finance plan)
 Focus on work results through performance targets and indicators – reporting
 Improvement of service quality and customer orientation
 Flexibilization of personnel management (abandonment of the status of a public official
(tenured career), performance-based salary system)
Requirements for public managers and leadership programs in the public sector
 start of reforms 1996 (local government level and cantonal level –> federal government
level)
STAATSSCHREIBER
STATE
CHANCELLOR
9
Reform: debt break
gross federal debt 1980 - 2011
STAATSSCHREIBER
STATE
CHANCELLOR
10
Reform: Comprehensive reform of the public
steering system
Legal
framework
objectives
Legal framework (constitution, laws)
Financial
means
General
steering
Actual outcome
Annual input steering
Outcome
objective
WHAT DO THE
CITIZIENS WANT?
STAATSSCHREIBER
STATE
CHANCELLOR
Output
objective
WHAT SERVICES DO WE
DELIVER?
Financial
controlling
Output
controlling
Actual resource
Outcome evaluation
and controlling
reference:
K. Schedler / I. Proeller
Actual output
Production
process
of public
services
Resource
objective
HOW MUCH
DOES IT COST?
11
Strategic hierarchy as a basis for long and
medium term planning
Responsibility
Control instrument for:
Political Level
Government
Parliament
for information
Government
State chancellery
and ministries
Administrative
Level
Parliament
for approval
Divisions
and
units
STAATSSCHREIBER
STATE
CHANCELLOR
outlook
outlook / up-date:
Development
Plan
ca. 12 policy areas
(outcome objectives)
10 years / 4 years
Integrated tasks and finance plan
ca. 50 – 80 main tasks
4 years / annually
(outcome, output and financial objectives)
ca. 100 – 150 output groups
more than 500 outputs
individual objectives for public servants
4Jahre /
annually
12
Midterm planning in Swiss cantons
Figure: Cantons with an integrated tasks and finance plan
Reference: University of St. Gallen
STAATSSCHREIBER
STATE
CHANCELLOR
13
Integrated tasks and finance plan – content

4 years (budget year and 3 planning years)

Update (annually and adding one more planning year)

Context long-term – mid-term planning: mid-term plan as
control tool for successive implementation of the priority
program of the government
General development
Development priorities
tasks
Integrated Tasks and
Finance Plan
Objectives
(Outcomes and Outputs)
Indicators
Financial objectives
(one-line budgets)
STAATSSCHREIBER
STATE
CHANCELLOR
14
Citizen Orientation, public sector reforms and Swiss direct
democracy: „Security initiative“ by the people
 subject of the initiative: at least one policeman per 700 inhabitants
 consequences: immediate modification of governmental planning and shift of resources to
security
Strategic plan of the state government 2010-2013
appropriate density of police
(1 policeman per 700
inhabitants)
STAATSSCHREIBER
STATE
CHANCELLOR
inhabitant per policeman
number
inhabitant per policeman (incl.
municipal police)
number
15
Integrated tasks and finance plan: objectives
and indicators and controllability by the
parliament
Objective
Controllability
I
n
d
i
c
a
t
o
r
s
STAATSSCHREIBER
STATE
CHANCELLOR
16
Annual reporting: transparent information
about achievement of objectives
Status
STAATSSCHREIBER
STATE
CHANCELLOR
17
Improved parliamentary supervision

improved financial controlling (regular reports by the government;
parliamentary MIS)

(financial) audit reports of the audit office directly submitted to the
parliament

strong supervision of government and administration activities

not an isolated financial view but a direct link between public services
tasks and financial funding

new output and outcome control (controlling reports; evaluation reports)

approval of government's mid-term strategies based on the integrated
tasks and finance plan

parliamentary committees focusing on main content of administration
activities (not automatically adjusted to the governmental
organization)
STAATSSCHREIBER
STATE
CHANCELLOR
18
New Management Cycle
Strategy review
Strategy reports (periodically)
Parliamentarian intervention
Reporting
Annual report with
financial statement
(annually)
Long-term strategy
(horizon: 10 years,
Up-date: 4 years)
strategic
operative
Mid-term planning
Integrated tasks and
finance plan / budget
(horizon: 4 years
Up-date: annually)
operative implementation
Short term planning and
implementation controlling (ongoing)
STAATSSCHREIBER
STATE
CHANCELLOR
19
New Government Cycle
Strategic monitoring
Annual reporting
Developing long-term
strategic options
Controlling and
evaluation
Governmental decision making
on long-term strategies
Performance process at the
interface of the
politico-administrative
system
Developing mid-term strategies
Integrated tasks and finance plan
Implementing governmental
programs
operative planning
governmental items
Communication of
governmental decisions
Government meetings
STAATSSCHREIBER
STATE
CHANCELLOR
20
‘Open’ civil service
 The profile and career path of Swiss public officials are very diverse
 Selected not on the basis of a specific course of study, but on the
basis of specific skills
 No lifetime appointments
 Swiss civil service is not a career civil service, but an open system
in which every citizen is entitled to seek public office
 Heterogeneous profiles, also from the private sector at all levels of
the hierarchy
STAATSSCHREIBER
STATE
CHANCELLOR
21
Leadership development through
performance appraisal
Motivation
STAATSSCHREIBER
STATE
CHANCELLOR
22
Example: top and middle management in a Swiss
Canton

Leadership of the top and middle management is based on annual
outcome and output objectives that are derived from the integrated tasks
and finance plan of the government.

achievement of objectives, task fulfillment and measures are assessed in
the fourth quarter of the year

assessment: base for performance salary and premium (in a defined
financial range) for the management
STAATSSCHREIBER
STATE
CHANCELLOR
23
Results

increased (cost) efficiency of the public administration

transparent public services

increased controllability for parliament

permanent controlling cycles (measurement of achievements of
outcome, output and financial objectives); (financial) plausibility
checks based on performance information

new management system strongly supported by top and senior public
management

objectification of relationship between political and administrative level

more realistic planning

improved citizen orientation of civil servants

strengthening long-term orientation (measurable 10 yrs. / 4 yrs.
planning); political reliability

setting priorities by the government

credibility of the public sector ("value for money")
STAATSSCHREIBER
STATE
CHANCELLOR
24
Swiss public sector: culture of change

do things that you have never done before

achieve objectives that have never been achieved before

start to implement methods that have never been used before

improve results that have been satisfying so far

exceed impediments that you built up yourself

leave the status quo behind you even if it causes insecurity
reference: E. Buschor
STAATSSCHREIBER
STATE
CHANCELLOR
25