The economic, social and cultural aspects of Greece are very similar to that of a company that is in financial difficulties and is forced to file for protection from its creditors. In Greece we call it Article 99 in the US is called chapter 11.
When a company files for protection, management (as a cynically use to say “All of them have gone to the same MBA program”) addresses the following issues: Reduction in cost, reduction in expenses and reduction in staff. They feel that by reducing staff will improve the bottom line resulting in profitability and an end to the difficulties.
They do not realize that a reduction in staff reduces both the quality of product/service, creates turmoil in the remaining staff (because they fear of their future, many good employees leave the company, productivity plummets), affects the relationship with both the suppliers and the customers.
It is precisely how we are trying to resolve the Greek public sector problem today. I am not here to suggest that the Greek public sector works well or that it is not overwhelmingly large.
I made the above introduction to set the stage to describe the magnitude of the changes that need to take place in order to create a better public sector. Following you will find some thoughts that may be of use.
It is my sense that the Greek public sector is very outdated, to avoid using the typical characterizations. As a result, I believe that incremental improvements will provide some help but will never allow Greece to come close to the service levels of EU15. This leaves us with one approach; re-engineering. Simply we need to perform a radical change.
A radical change allows one to make a leap to a new level and then continuously make change. One may question whether a radical change can bring the expected result. Based on my experience, I can attest that radical change will bring the expected results.
We need to begin by examining the public services from the beginning based on value each process adds, if it is necessary, if it can be done in another way, etc.
Any process is:
• “Controlled” by legislation, presidential and ministerial, etc. directives.
• Performed by people with specific skills.
• Exist to provide a service to the public.
Therefore, as we reengineer the processes we need to address the legal, economic, organizational, management and human resource (HR) changes.
I will not address the legal changes, as I have no experience in this area. I will address the last four.
Economic:
The economic changes include the budget, salaries, incentives, benefits and capital expenses.
Budget: The present paradigm of the budget process is a lose-win situation. Lose for the minister of finance and win for everyone else. Let me explain. The budget is formulated by the ministry of finance, with input from the other ministries and organizations. The finance minister introduces the budget in parliament and the parliament passes the budget.
During the year, all major expenses require the approval from the minister of finance. In the event the revenue fall below expectations, the minister of finance is the one who needs to enforce reduction in expenses by not approving funds.
In this paradigm the minister of finance loses and everybody else wins because the spend money without being responsible for the consequences.
To correct this we need to implement what the rest of the world already does. The budget will follow the international logistical standards. It will be detailed to the lowest management level. This will make each manager responsible for their part of the budget. Thus the paradigm will change to a win-win.
Salaries: Each manager’s budget will include the salaries of all employees under the manager.
Incentives: In the budget the manager will have an entry for incentives to be allocated based performance.
Benefits: The budget will include the cost of each employees medical and retirement expenses.
Capital: In this section of the budget the manager will include expenses such as PC, desks, chairs, software, etc.
A budget is developed from bottom up based on parameters set by the ministry of finance. Each manager submits the following year’s budget up the hierarchy. Eventually, each minister, based on priorities, will make the decision as to what the final budget will look like.
Organizational:
The present organization reminds one a structure that was introduced at the end of the 19th century by Frederic Taylor and the scientific management group.
The new organization must strive to become as flat as possible based on the notion of the empowered employee. An empowered employee is one who has access to all pertinent information allowing the employee to make all decisions without supervisory input.
This will require educational and training programs to be developed for both the managers and the employees. (See Education below)
Management:
Presently management is mired in to trivial work, such as signing and stamping documents, making trivial decisions, etc., rather than managing their environment.
Managers from now on must be selected not because of their longevity in the organization but on skill and in particular management and people skills.
Management educational and training programs must be developed for both those who are managers and the potential new managers. (See Education below)
Human Resources (HR):
This includes the rest of the employees.
Presently the employees belong to the minister of reform and electronic governance, the ministry of finance pays their salaries and they are assigned to an organization for their work. In other words no one is really responsible for the employee. This daedalic structure is prone to unimaginable difficulties and inaction.
In addition, due to the lack of planning, goals, objectives, deadlines measurements and lack of administrative enforcement it is impossible to identify those who are productive and evaluate their contribution.
I suggest that extensive educational and training programs be put together for all public employees.
The programs need to include for:
Manager:
Management theory and techniques,
Planning,
Objectives,
Estimating,
Measurements,
Budget and accounting,
Project management principles,
People types (introvert/extrovert),
Performance reviews,
Etc.
Employee:
Planning,
Objectives
Estimating,
Project management,
Specific skill improvement,
People types (introvert/extrovert)
Performance reviews,
Customer service skills,
Etc.
Continues education and training for all.
The economic, social and cultural aspects of Greece are very similar to that of a company that is in financial difficulties and is forced to file for protection from its creditors. In Greece we call it Article 99 in the US is called chapter 11. When a company files for protection, management (as a cynically use to say “All of them have gone to the same MBA program”) addresses the following issues: Reduction in cost, reduction in expenses and reduction in staff. They feel that by reducing staff will improve the bottom line resulting in profitability and an end to the difficulties. They do not realize that a reduction in staff reduces both the quality of product/service, creates turmoil in the remaining staff (because they fear of their future, many good employees leave the company, productivity plummets), affects the relationship with both the suppliers and the customers. It is precisely how we are trying to resolve the Greek public sector problem today. I am not here to suggest that the Greek public sector works well or that it is not overwhelmingly large. I made the above introduction to set the stage to describe the magnitude of the changes that need to take place in order to create a better public sector. Following you will find some thoughts that may be of use. It is my sense that the Greek public sector is very outdated, to avoid using the typical characterizations. As a result, I believe that incremental improvements will provide some help but will never allow Greece to come close to the service levels of EU15. This leaves us with one approach; re-engineering. Simply we need to perform a radical change. A radical change allows one to make a leap to a new level and then continuously make change. One may question whether a radical change can bring the expected result. Based on my experience, I can attest that radical change will bring the expected results. We need to begin by examining the public services from the beginning based on value each process adds, if it is necessary, if it can be done in another way, etc. Any process is: • “Controlled” by legislation, presidential and ministerial, etc. directives. • Performed by people with specific skills. • Exist to provide a service to the public. Therefore, as we reengineer the processes we need to address the legal, economic, organizational, management and human resource (HR) changes. I will not address the legal changes, as I have no experience in this area. I will address the last four. Economic: The economic changes include the budget, salaries, incentives, benefits and capital expenses. Budget: The present paradigm of the budget process is a lose-win situation. Lose for the minister of finance and win for everyone else. Let me explain. The budget is formulated by the ministry of finance, with input from the other ministries and organizations. The finance minister introduces the budget in parliament and the parliament passes the budget. During the year, all major expenses require the approval from the minister of finance. In the event the revenue fall below expectations, the minister of finance is the one who needs to enforce reduction in expenses by not approving funds. In this paradigm the minister of finance loses and everybody else wins because the spend money without being responsible for the consequences. To correct this we need to implement what the rest of the world already does. The budget will follow the international logistical standards. It will be detailed to the lowest management level. This will make each manager responsible for their part of the budget. Thus the paradigm will change to a win-win. Salaries: Each manager’s budget will include the salaries of all employees under the manager. Incentives: In the budget the manager will have an entry for incentives to be allocated based performance. Benefits: The budget will include the cost of each employees medical and retirement expenses. Capital: In this section of the budget the manager will include expenses such as PC, desks, chairs, software, etc. A budget is developed from bottom up based on parameters set by the ministry of finance. Each manager submits the following year’s budget up the hierarchy. Eventually, each minister, based on priorities, will make the decision as to what the final budget will look like. Organizational: The present organization reminds one a structure that was introduced at the end of the 19th century by Frederic Taylor and the scientific management group. The new organization must strive to become as flat as possible based on the notion of the empowered employee. An empowered employee is one who has access to all pertinent information allowing the employee to make all decisions without supervisory input. This will require educational and training programs to be developed for both the managers and the employees. (See Education below) Management: Presently management is mired in to trivial work, such as signing and stamping documents, making trivial decisions, etc., rather than managing their environment. Managers from now on must be selected not because of their longevity in the organization but on skill and in particular management and people skills. Management educational and training programs must be developed for both those who are managers and the potential new managers. (See Education below) Human Resources (HR): This includes the rest of the employees. Presently the employees belong to the minister of reform and electronic governance, the ministry of finance pays their salaries and they are assigned to an organization for their work. In other words no one is really responsible for the employee. This daedalic structure is prone to unimaginable difficulties and inaction. In addition, due to the lack of planning, goals, objectives, deadlines measurements and lack of administrative enforcement it is impossible to identify those who are productive and evaluate their contribution. I suggest that extensive educational and training programs be put together for all public employees. The programs need to include for: Manager: Management theory and techniques, Planning, Objectives, Estimating, Measurements, Budget and accounting, Project management principles, People types (introvert/extrovert), Performance reviews, Etc. Employee: Planning, Objectives Estimating, Project management, Specific skill improvement, People types (introvert/extrovert) Performance reviews, Customer service skills, Etc. Continues education and training for all.