The Role of Top Executives in Times of Crisis

1. Public Administration and Personnel Department, Ministry of Finance CYPRUS PRESIDENCY – EUPAN “Role of Top Executives in times of crisis” Pavlina Mela Joint HRWG/ IPSG meeting 15-16 October 2012, Limassol

2. 58th DG meeting, Copenhagen- Resolution Cyprus Presidency of the Council of the EU “...TPMs are holding positions where they are largely responsible for creating the framework for resolving national and global challenges, for implementing reforms and the policies of the government. The economic crisis and financial cut backs require TPMs who focus on resource management, efficiency and results, practical implementation of reform agendas, organisational changes and new government programmes etc…”

3. Bridging with previous TRIO work Cyprus Presidency of the Council of the EU

4. CY Presidency – Role of TE in times of crisis Context of change Implementation of Reform and HR measures Need for PA to become more effective and efficient Innovation and Modernisation Citizen focus and involvement Focus To explore the changes/ shift of focus in the role of TEs/ TPMs stipulated by the crisis and the challenges that they are faced with Cyprus Presidency of the Council of the EU

5. ROLE OF TOP EXECUTIVES Experiences from the Danish Presidency October 2012

6. Agenda Learnings from the Danish Presidency The Role of Top Executives Reflections

7. Learnings from the Danish Presidency

8. Themes during the Danish Presidency • The crisis’ impact on human ressources • Reforms in public administration • Top Executives The themes highlight some of the major challenges and new demands to Top Executives in the public administration

9. The crisis’ impact on human ressources Some initiatives • Downsizing / redundancy • Cutbacks in pay • Recruitment freeze • Unpaid leave • Cuts in training and development • Reduction in holiday allowances • Decrease in overtime pay • Prohibition of promotions Some possible consequences • Loss of expertise • Fall in living standards and purchasing power, • Low morale and motivation • Loss of public competitiveness as an employer (insecurity) • Increase of early retirement • Slow economic recovery How can the Top Executive best lead the public sector in an time of crisis with harsh austeritymeasures?

10. Reforms in public administration A more effective and efficient public administration through modernization and innovation of the public services • Organizational and task-oriented approach • Trends in public administration reforms • Challenges in implementation of reforms Three focus areas for reforms: • Performance management and austerity measures • Citizen focus and involvement to enhance prioritization • Digitalization and e-government to reduce cost. Has the role of the Top Executivechangedwith the increased need for PA reforms and innovation of public services?

11. Emergent trends in PA reforms Accountability for results (outputs) Economic efficiency challenges Citizens as consumers IT supporting efficiency • Accountability on longer-term results (outcomes) • Concern with broader societal challenges across organizations • Citizens as co-producers, co-innovators and co-creators • Digital governance profile(web 2.0. and social media) Greve, Carsten (2011), Ideas in Public Management Reform for the 2010’s Has the requiredcompetencies of the Top Executivechangedwith the new trends and increasedcomplexity of PA reforms?

12. The Role of the Top Executive

13. New challenges • Top Executives are in positions where they are largely responsible for creating the framework for resolving national and global challenges. Challenges: • Time of crisis with harsh austerity measures • Demands for efficiency and effectiveness (long term outcomes) • Increasing complexity and broader societal challenges • Increasing need of radical innovation of public services in partnership with employees, citizens and other partners

14. New role for the top executive? The crisis heighten the demands for top executives that are able to create and ensure e.g.: • Strategic priorities and result creation across the public sector. • Collaboration and cross governmental knowledge sharing • Policy advice and policy development to ensure effective implementation of reforms. • Effective organizations with transparent and goal-oriented resource and economic management. • Professional development of leaders and employees to enhance performance • Motivation and innovation culture open to the public.

15. Reflections

16. Reflections on TE development in Denmark • The development of TEs in Denmark follows a vision about a more collaborative public sector with increasingly cross governmental dynamics (mobility) and solutions • The thesis is that professional top management is a prerequisite for an efficient and result oriented public sector Strategic elements in recruitment and development of TPMs: • Identify and develop talents • Measure and develop performance • Educate and increase mobility Tekstfelt

17. Reflections on recruitment of TE’s Example on some criteria Denmark has used in the last couple of TE recruitments: • Documentation of results as a manager • Relevant portefolio experience • Experience from a department or a political governed organization • Experience and knowledge of financial management and/or management of a business • Experience from other sectors or areas e.g. • Another ministry, a municipality, a region or private sector knowledge • Different levels of the steering chain e.g. policy formulation, service delivery, inspection, operation management or economy • International relations • Relevant training courses

18. Methodology – Work methods and Roadmap Cyprus Presidency of the Council of the EU 15-16 October 2012 5-6 December 2012

19. TE: New Focus Cyprus Presidency of the Council of the EU • Focus on Strategic objectives and priorities • Focus on outputs, aim for optimal effect (Value for money), Enhance accountability at all levels • Dynamic/ Effective leadership – “Walk the talk”, “Words into actions” • no longer expected to be experts only on administrative and regulatory rules – Understand the big picture • role as enablers and connectors/ bridge builders: “Connecting people, expertise, functions” • role models in terms of behaviour – Reinforcement of the values of the civil service • Communication and Open dialogue with Staff, Stakeholders and Policy Makers to ensure cooperation, involvement and effective implementation of reform measures

20. TE: New Focus (...cont’d) Cyprus Presidency of the Council of the EU • Strengthening of human relations within the organisation through teamwork and motivation • Human Resource Management • Performance assessments - enhancement of competencies • Link salary increases, promotions and bonuses with objectives and performance • Utilisation of staff based on their strengths - talent development • Provision of training and development opportunities • Enhancement of own skills – Development

21. TE: New Focus (...cont’d) Cyprus Presidency of the Council of the EU • Optimisation/ Rethinking of processes, working methods - Utilisation of technology, ICTs, e-Gov, create better results for less, ensure implementation • Cooperation with and involvement of citizens – Their needs and expectations a driving force for change • Reform capacity of their organisations – change management (flexibility and adaptability) • Culture focused on results, performance, innovation, sharing of knowledge (and cross governmental), transparency and trust

22. Thank you for your attention Cyprus Presidency of the Council of the EU Questions – Initial thoughts