Reforming civil service in the Baltic States: the Case of Lithuania

Jurgita Siugzdiniene, PhDDepartment of Public Administration, Kaunas University of technology

Civil service in the Baltics

ESTONIA: 22 286 civil servantsCentral level, limited to public administration functionOpen, position based system

LATVIA: 11 722 civil servantsCentral level, limited to public administration functionOpen, mixed model - some elements of career based system

LITHUANIA: 28 600 civil servantsCentral and local government levels, limited to public administration functionOpen, mixed model - some elements of career based system

Civil Service reform trendstrends

Case of Lithuania

ContextContext• Financial crisis: urgent need for budget

consolidation, necessity to carry out significant structural reforms

• Government machinery and the managerial system too slow to respond to new policy priorities

• Civil service too rigid to adjust to changing situation and respond to challenges

Main goals

PERFORMANCE

COORDINATION

Annual Government PrioritiesEvidence based monitoring system

Performance agreements

Senior Civil Service

Policy implementation process

Performance based budgeting

Key components of PA reform

Civil service

Coordination

Efficiency Performance

Institutional framework

Strategic management and budgeting

Strategic management and budgeting

Performance based

budgeting cycle

Performance chain

Strategic priorities of a Minister

Strategic priorities of a Minister

DepartmentDepartment Department Department DepartmentDepartment AgencyAgency

Annual Government

priorities

Agreement between PM, MoF and a

Minister

Per

form

ance

agr

eem

ents

Institutional framework

•Minister is fully responsible/ accountable for administration areas within his/her remit

Accountability

•Optimization of the system of government agencies (from 21 to 12)

•Reduction of the number of appropriation managers, legal persons

Optimal framework

•Functional reviews of ministries, government agencies, and their subordinate institutions

•Optimization of organisational structures

Optimal organizational

structure

Civil service reform What we are aiming at?

• Better accountability for performance results, stronger motivation to perform

• Improved coordination, whole-of-governance approach

• Enhanced policy implementation• More flexibility, freedom to manage• Focus on Senior Civil Service as a main lever of

changes

1. Semi-centralized selection

Centralized stageCentralized stage (Civil Service Department)

• Assessment of general competencies (removing “memory tests”, focus on logic based exercises)

• Assessment of managerial competencies (interview carries out by professionals)

• Language proficiency (language centers)

• Assessment results are valid for 24 months

Decentralized stageDecentralized stage (recruiting institution)

• Institutional commission consisting of at least 3 members

• Observers – representative of Trade Unions and Civil Service Department

• Assessment of competency to carry out specific tasks/functions

• Practical exercises and interview

• Moving from “function” to “result”, from “qualification” to “competency”

• Closely linked with strategic goals of the institution

• Discussion and agreement between supervisor and civil servant (twice per year) on:key tasks and results to be achieved during the budget year and specific indicators (quantitative, qualitative)Assessment of competencies and agreement on competency development plan

2. Performance based assessment system

• Approx. 200 positions• Personnel Management Commission • Term in the Office (4 + 4)• Senior civil servant – more generalist than

specialist• Internal or external competition• Different performance assessment procedure• Remuneration linked to performance results• Special training programme

3. Senior Civil Service (pending approval)

4. Transparent performance based salary system

• Introduction of performance-based payment• Removal of all types of bonuses,

supplements• Removal of supplement for tenure

Salary = basic salary + yearly bonus for performance (from 10 % to 20 %)

No actions so far!

Issues, lessons learned (1)• It was planned as a big bank reform• However, little political support (Parliament),

resistance on the side of civil servants• Therefore, small steps instead of big bang • For performance system to work you need all

key elements in place (main element is still missing ........)

Issues, lessons learned (2)• Intensive communication and discussions with

civil servants, members of Parliament, political parties

• Active communication with Media• Establishment of critical mass within civil

service to facilitate change, attention to Senior Civil Service

Thank you, let’s discuss..