”WORKING TOWARDS EXCELLENCE” The Management Reform of the City of Tampere

1. ”WORKING TOWARDS EXCELLENCE”The Management Reform of the City of Tampere

2. Tampere in brief • In 1779 Tampere received its city rights from King Gustavus III of Sweden and Finland • The city is located on an isthmus between two lakes. • Inhabitants in Tampere 204 000, in Tampere region 320 000 • The third biggest city in Finland, the biggest inland city in the Nordic countries • Surface area 690 km2 • Population density 390 people/km2

3. Tampere in brief • Centre of know-how intensive entrepreneurial activity • Education and cultural town • Leading town in industry and centre of information society Labour force and jobs 2004 • Employed workforce: 91 612 • Jobs: 109 960 (industry 20 %, services 72 %) • Unemployment rate (mean value in 2005) 12,6% Education • University of Tampere • Tampere University of Technology • Tampere Polytechnic, Pirkanmaa Polytechnic • some 20 other vocational institutions

4. The Population of Tampere region 31.12.2005 Source: Statistics Finland

5. The Population of Tampere 1992 - 2005 Source: Statistics Finland

6. Tampere City Strategy VISION 2016: Tampere is an international growth centre of good services, know-how and creativeness. OUR VALUES AND OPERATIONAL PRINCIPLES ARE: • communality and responsibility for the environment • customer orientation • partnership • courage and initiative • appreciating the personnel • economic efficiency -

7. Critical success factors The strategy map shows the causality between the critical success factors Resources Processes and structures Effectiveness High-quality and cost-efficient services Stable economy Renewable management Balanced and sustainable community structure Competent and motivated personnel Know-how and creativeness

8. The Purpose of the Reform • The purpose of the reform is to better meet the challenges of the future • These challenges include • an ongoing growth in service demand demands for competition in public services • the ageing of the population • the high retirement rate of municipal employees in next years • a need to reassert the citizens’ confidence in the political system • The reform is based on developing municipal service production, improving efficiency and looking for new solutions, either by making better use of existing markets or by generating new ones.

9. The Objectives of the Reform • Strengthening the Political Decision-Making • Increacing the stearing power of the City Council • Separating the tasks of Provider and Purchaser • Improving citizens’ participation opportunities • Making Service Provision More Efficient • Customer-oriented thinking and cross-sectoral services • Using market mechanisms • Reorganising the production units • Implementing the Service Centre model • Developing Strategic Leadership • Strengthening owner governance • Expanding and developing the BSC -model

10. The Steps of the Reform • The reform work began in 2002 • In January 2003 the City Council accepted new principles for the municipality’s corporate structure and management • The central administration was restructured early in 2004 • The purchaser/provider model of service production will be tested in the years 2005—2006 in • City Planning and Infrastructure Services • Daycare Services and Basic Education • In may 2005 the City Council made the following decisions • The City Council will elect from among themselves a Mayor and four Deputy Mayors to govern the municipality in the capacity of elected officials from the 2007 onward. • The purchaser/provider model will be implemented throughout the whole of the municipal administration from the 2007 onwards. • In September 2007 the City Council elected Mayor and four deputy Mayors from 1.1.2007 to 31.12.2008

11. The Reform Inxed Tampere Model of Mayorship Purchaser/Provider Model Reorganizing Purchasing Commitees and Organization Reorganizing Provider Organizations Civic Participation

12. Organisation Chart 2007

13. Executive Management Group 2007

14. Tampere Model of Mayorship • Tampere model of mayorship comprises one Mayor and four Deputy Mayors. • The new model, with an elected Mayor, is based on the need to consolidate the political power of the City Council • Tampere wants a management configuration whereby the political control and accountability of the key positions in the city management are more clear • Tampere wants to establish the fact that it has a political leader vested with normative powers and responsibilities, through whom the division of power that is the prerequisite of representative democracy is implemented throughout the organisation. • The adoption of a system will improve the conditions for the reconciliation of management by elected officials and management by civil servants, and facilitate the democratic control of policymaking. • Political leadership and leadership by civil servants are separated in a system with an elected mayor.

15. Tampere Model of Mayorship • The Mayor and his four Deputies will be elected officials in full-time positions. • They will be elected by the City Council from among the Councillors for the duration of the Council’s term of office • The first term of the Mayor and the four Deputy Mayors will be 2007—2008. Mayor • The Mayor will act as the chairman of the City Board and the manager of the municipality, without a complementary non-elected city manager. • The Mayor will lead both the purchasing and the providing organisations • The Mayor’s position within the city administration will be quite powerful. It will be counterbalanced by the fact that the Mayor has to enjoy the confidence of the City Council. • If this is not the case, the Council will be able to dismiss the Mayor with a simple majority of votes. Deputy Mayors (4) • The Deputy Mayors will chair committees set up on the basis of client processes and they will be in charge of 1-2 core processes • Together with their respective committees, the Deputy Mayors will be responsible for the purchasing of services • Deputy Mayors will not be members of the City Board but they will act as rapporteurs to the City Board according to their assignments

16. Purchaser/Provider Model 2007

17. Purchaser/Provider model • Purchaser/Provider model will help to: • renew the system of political management • improve the visibility of the ”product” or the service provided • improve municipal production organisations • adopt alternative systems of service production • reform municipal management models and practices • Service contracts as the principal steering tools • In addition to the municipal regulations, the service contract made by purchaser and provider is the most important steering tool in the purchaser/provider model. • The contract will define the • parties • the scope and the purpose of the contract • its duration and change procedure • the content and quality of services • the amount and price of products • quality assurance and evaluation • contract follow-up

18. New Purchasing Committees • The purchaser committees • specify the services to be provided • choose the service provider • finance the production of the services • are responsible for the necessary official action • The budget accepted by the City Council is at the purchasers’ disposal in full • The committees will be entirely restructured. The new structure will be based on process thinking rather than the present sector-based assignments. • The objective of the new system is to ensure a more customer-oriented approach and to clarify the political nature of the planning. • The purchaser committees will be made up of the members or deputy members of the City Council • This will increase the power and responsibilities over service provision of the representatives elected directly by the citizens. • The new system will also ensure that the committees are committed to municipal objectives as a whole and will improve their command of the wider context.

19. The principal duties of the Purchasing Committees • official activities • providing and developing services • mapping out the service demands of residents and other customers • mapping out alternative methods of service provision and selecting the most suited to municipal needs • selecting service providers within the limits determined • approving service contracts and other major agreements • approving the sourcing plan for services • steering contracts, quality assurance and evaluation • facilitating civic participation and developing the customer orientation of service provision

20. The duties of the Boards of Directors in Provider Organisations • The political management of production will belong to Boards of Directors. • Production organisations will be subject to the Boards. Producers will concentrate on service provision, the developing of service products and improving efficiency. • All services are to be seen as products with price and quality specifications. • The duties of the Boards of Directors • service provision • monitoring the profitability, development, quality and competitiveness of service provision • approving service contracts and other major agreements • approving production strategy • monitoring operations and finance • deciding the pricing principles of services and other contributions • productization and evaluation • customer relations • decision making with regard to the performance-based bonus systems

21. Provider Organisation of the Social, Health and Cultural Services • Most of the 16,000 municipal employees of the city of Tampere work within the so-called wellness services. • These services are to be divided into two areas: • social and health services • education and culture • Both areas will have their own service production managers. • Social and health services will have a three unit organisation with three unit-specific Boards of Directors. • Education and culture services are also to be divided into three production units, each with their own Board of Directors. The education and culture organisation will comprise Tampere Polytechnic, which has its own Board. • The new production model of these services is based on the idea that the purchaser-provider split needs to be complemented by a new kind of customer-oriented production of services in order to generate the necessary change. • A customer-oriented, cross-departmental development of wellness services is to be guaranteed by a development unit responsible for the customer-oriented co-ordination of production units and the development of service processes. The development unit is will also be responsible for the operational and economic management of services.

22. Provider Organisation of the Social, Health and Cultural Services 2007-2008 Social and Health Services Educational and Cultural Services Service Production Manager Service Production Manager Executive Managent Group Day Care and Basic Education Specialized Healh Care Tampere Polytechnic Cultural and Recrcrational Services Upper Secondary Education Non-residential Services Institutional Care Process Board of Directors Board of Directors Board of Directors Board of Directors Board of Directors Board Board of Directors Development Unit

23. New channels for civic participation • In the new management model, services are to be produced with improved awareness of residents’ needs. Opportunities for civic participation in the planning of the services will increase. • One tool is “Alvari” which is a two way channel between local authorities and residents. Its basic idea is to make it easier for residents to get information concerning their neighbourhood and to influence the planning processes of their own environment and services. • Alvari is a combination of different participation methods. • One is a regional working group comprising active neighbourhood participants that the City Board elects for two years at a time. Group members can be residents or spokespersons of organisations. • NettiAlvari is an Internet-based jury made up of local residents that the authorities may consult on various issues concerning the neighbourhood. Information collected through such surveys can be used in the planning and development of services. • Alvari will be tested in western parts of Tampere in 2007–2008. The tests will help decide whether the practice is to be extended to the entire city. • Every year there will be regional Mayor/citizen evenings looking into current issues and plans. In addition to the Mayor, residents will be able to meet council members and administrators.

24. Making it all work • The new model will only work if people work together. The most important thing is to look ahead. • To make the New Management Model of the City of Tampere to work we will need • Open, Creative and Innovative Atmosphere of Development • Commitment • Training • Information • Leadership and • Change Management • Supervisors will hold the key role on every level of the new management model. Carrying out the processes and operations will require courage and initiative from the supervisors.