Challenges in Modernizing Statistical Production Irena Krizman Director-General SURS member of the...

Challenges in Modernizing Statistical

Production

Irena Krizman

Director-General SURS

member of the HGL-BAS

Content of the presentation

Workshop on HRM and Training, Budapest, 5-7 September 2012 2

1. High Level Group on Business Architecture in Statistics (HLG-BAS).

2. Managing organisational change and strategic HRM.

3. Slovenian case.

4. Conclusion or closing thoughts

HLG-BAS


Background - HLG-BAS

• HLG-BAS established in 2010 by CES Bureau

• Membership: Heads of NSOs and Senior Managers from IOs

• Mission: “to direct and guide strategic developments in ways official statistics are produced”


Where is our position in the information society?


Figure 1. The position of official statistics in the information industry

Link between the HLG-BAS and working groups


Statistical Business Model


Common Generic lndustrialised Statistics

GSBPM GSIM

Methods Technology

Business Concepts

Statistical HowTo Production HowTo

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Common Generic lndustrialised Statistics

GSBPM GSIM

Methods Technology

Business ConceptsInformation Concepts

Statistical HowTo Production HowTo

conc

eptu

al

pra

ctic

al12) ESSnet on Standardisation

11) Sponsorship on

Standardisation

20) SDMX Sponsors

25) Paris Microdata Access Group

10) Metadata Working Group

15) Statistical Network

26) OECD Stat.User Group

24) DDI

8) CORA / CORE

21) SDMX Expert

Group

14) WG Quality in Statistics

(13 Sponsorship on Quality)

2) METIS

9) DIME

23) SDMX Stat. Standards

1) MSIS

3) SAB7) SISAI

6) ITDG

18) PC-Axis

22) SDMX Tech Standards

27) Blaise User Group

15) Statistical Network

4) SDE

16) SOS Group

19) IMAODBC

17) SDMX/DDI Dialogue

5) HMRT

Drivers – the product challenge

• The world is changing• “Official” statistics are no longer the only source of

data - other parties are now making statistics• Current methods are outdated – public impatience• In the information society we now have an

abundance of data from many other sources• A radical re-think of statistical products is needed


Drivers – the process challenge

• We need: • more & quicker statistics• to be more flexible & agile• to move away from expensive, tailored solutions• process harmonisation• to share & collaborate


Top management is driving the change!

The Vision - Products

• Official statistics need to stay relevant• New and better products & services • Products should shift from a national towards a

global perspective• Production methods - different & better

processes, lower costs, more collaboration• Products should leverage data sources already

in society


The Vision - Processes

• Production should be based on common & standardised processes

• Industrialisation of statistics production

• Create an “official information industry”


The strategy – i.improve existing processes

• Improve processes to free up resources for the new developments

• Harmonise using international standards like• Generic Statistical Business Process Model (GSBPM)• Generic Statistical Information Model (GSIM)

• Align methods and technology • Implement standards (SDMX, DDI, etc.)• Create GSBPM and GSIM plug-and-play

architecture


The strategy – ii. Component-based architectures

• Design products as assemblies or frameworks using components.

• This way official statistics outputs can be rich, yet easy to produce.

• Pilot projects will be started to explore this possibility.


The strategy – iii. Research new products

• Produce new products using the vast amounts of data becoming available

• Provide better measurements of new aspects of society, such as e-commerce and globalisation.


The strategy – iv. Priorities

• Maintain a yearly list of key priorities and timeframes assigned to appropriate expert groups.

• Annual workshop with all expert group leaders will make sure progress is made and support is maintained.


MANAGING ORGANISATIONAL CHANGE AND HRM



Prerequisites for change

• Willingness to change

• Ability to change

• Readiness for change

• Speed of change

Willingness to changeThe role of top management in driving the change

• Leadership support of the vision and strategy• Communication and building the culture and need for

change within NSO‘s• Priority setting and resource allocation• Promoting the use of agreed standards• Setting the HRM vision and strategy • Organising new employee skills to meet the challenges• Adapting the organisation to the „lean“ concept• Intensify the strategic partnerships


Strategic partnerships

• With other national and international statistical organisations

• With third parties in the information society (instead of trying to compete with them)

Questions: • Do national Business and HRM strategies follow the

HLG-BAS vision and strategy?• How is HLG-BAS work communicated within and outside

official statistics?• What could be the role of third parties in executing the

strategy and how to attract them to cooperate?


Ability to changeImproving their ability to change, organizations can increase

their chances of success, both today and in the future.

Kotter suggests an 8-step process:

1.Establishing a Sense of Urgency

2.Creating the Guiding Coalition

3.Developing a Change Vision

4.Communicating the Vision for Buy-in

5.Empowering Broad-based Action

6.Generating Short-term Wins

7.Never Letting Up

8.Incorporating Changes into the Culture

Activities to be performed (HLG-BAS and CES member countries)

1. Examine the market and major competitive realities (done)

2. Assemble a powerful group to lead a change (done)

3. Create a vision and strategies to achieve that vision (done)

4. Use every vehicle possible to communicate -> in progress

5. Remove obstacles to change and encourage innovations

6. Realistic plan of improvements and recognize and reward staff involvement

7. Remove the systems, structures and policies that don‘t fit the vision

8. Link new behaviour and organizational success, ensure leadership and succession


Reference: Kotter P.: http://www.kotterinternational.com/kotterprinciples/changesteps

The guiding coalition

• A strong guiding coalition is an essential part of the early stages of any effort to restructure, reengineer or retool a set of strategies.

• The guiding coalition should be put together carefully, so its membership reflects position power, expertise, credibility, and leadership.

• Both management and leadership skills are needed in the coalition. The former keeps the whole process under control, while the latter is needed to drive the change. Leadership skills are critical.

• Without a clear, guiding vision, the effort to change can dissolve into projects which are confusing, incompatible with corporate policy, and time consuming.

Reference: John P. Kotter, Boston, MA: Harvard Business School Press, 1996, for more see also What Leaders Really do, Harvard Business Review Book, 1999


NSI‘s support for rejuvenating statistical outputs and need to organisational change? (for more see: Results of the Pre-CES consultation on the HLG-BAS Strategy, Working paper 2012/17

31. May 2012)

• Countries‘ statements:– Yes, but what we must agree upon is a work plan to implement the

program and the list of priority steps (Israel)– Yes, we are willing to change, but capacity to change crucially depends

on people and their skills (Cyprus) – Yes, organisational change has to facilitate greater collaboration

between organisations and with third parties (Latvia)– Yes, but transition needs the strong support and leadership of top

management (Estonia)– Yes, we have already discussed the documents with our staff and

included the vision into SL strategy for 2013-2017 (Lithuania)– No, there are currently enough initiatives, see the slowness of the

process with witch countries and international organisations introduce SDMX (Switzerland)

– Yes, but remaining focused on the short term steps towards longer term goals will be key to success of the initiative (New Zealand)


Readiness for changeFewer resources but more demands – can lean production of statistics

be a solution?

What does „lean“ mean?•Lean is doing more with less. Use the least amount of effort, energy, equipment, time, facility space, materials, and capital – while giving customers exactly what they want.

•Lean Thinking is more relevant today. Lean ideas are the single most powerful tool available for creating value and eliminating waste in any organization.

•It’s about changing mindsets to identify and eliminate waste.

Reference: Womack, James P. & Jones, Daniel T. (2010): Lean Thinking, Second edition. Simon & Schuster


Core principles of Lean Thinking

1. Specify Value. Value can be defined only by the ultimate customer. Value is distorted by pre-existing organizations, especially engineers and experts. They add complexity of no interest to the customer.

2. Identify the Value Stream. The Value Stream is all the actions needed to bring a product to the customer. Communication between partners in the value stream is crucial to avoid overlapping.

3. Flow. Make the value-creating steps flow. Eliminate departments that execute a single-task process on large batches.

4. Pull. Let the customer pull the product from you.

5. Pursue Perfection. There is no end to the process of reducing time, space, cost and mistakes.

6. Teach People How to See. Create a lean training function. Teach all employees the principles and techniques of lean thinking.

Womack, James P. & Jones, Daniel T. (2010): Lean Thinking, Second edition. Simon & Schuster


Speed of change: Managing the impact on staff

• Strong leadership message of support• Adaptation of organisational scheme towards lean

organisation (removing stove pipes)• Sharing the information internally and with outside

partners • Make priorities in case of budget cuts; continuous

training and international cooperation are investments and not only costs.

• Active participation in international projects is a must in order to manage the change


New skills will be needed in the future

• Request for higher qualification levels• New occupations such as information architects, „big data“

miners, information market analysts• New skills: increased need for leadership, multi-area

expertise in assessing and communicating user needs, managerial skills like leaning the processes, estimate the new sources such as big data, communicate the products and services and cooperate with other organisations in the information industry

• Do NSO‘s have forward looking HRM strategies and policies?

• What is the level of knowledge in NSO‘s managerial staff (leadership and managerial positions)?

• How to improve the governance of NSO‘s?


New ways of working and challenges with that

1. Project and team work

2. New cooperation modes inside the statistical community and with relevant stakeholders

3. Validation, endorsement, confirmation of the results

4. Maintenance and support of new developments

5. Strategies to keep all stakeholders informed, engaged and encouraged; maintain collaborations

6. User support of common developed solutions

7. Users become a part of statistical production

8. Practical business process use cases for reference and validation purposes

1. Change driving coalitions, sharing experiences and good practices

2. Small groups with clear mandate, openness to associate external partners, cloud services

3. Develop the process which needs to be followed in international cooperation

4. Legal and organisational issues

5. Sharing the information within statistical organisations but also maintaining interests

6. Recommendation of the Sharing Advisory Board

7. Creating pull environment

8. Agreement on the plan of concrete use cases


10 observations on the process of changeJohn P. Kotter (1999) What leaders really do, Harvard Business Press.

1. Time consuming and complex

2. Besides 8 steps, there is a need to react on non-specific actions

3. Mistakes are possible

4. Issue of leadership is centrally important (vision, strategy); management means keeping the current system operational

5. Leadership is a growing part of managerial work (the rate of change is growing)

6. Planning vs. creation vision, controlling vs. inspiring

7. Management = formal hierarchy, leadership is not

8. Leadership = informal independence on others instead of just formal power over others

9. Networks and dependence = good working relationships with people in the networks

10. Manager and leader are diverse tasks


Continuous Process Improvement

• Create new ways to keep score. • Create new ways to reward people.• Train lean, learn lean. • Make everything transparent

– so everyone can see progress.

• Right-size your tools to insert directly into the value stream. • Convert to bottom-up initiatives.

– Lean ideas are democratic and not top-down. – Layers of management can be stripped away.

• Perfect your processes.

Womack, James P. & Jones, Daniel T. (2003) New York, NY: Free Press, Simon & Schuster, Inc.


SLOVENIAN CASE


Slovenian case (I)

• SURS has 360 staff members, – around 80% of the budget for the staff costs (wages, internal and

external training, participation in the ESS and international activities). People are the most important asset.

• Too small to build „stove pipes“, but still standardisation is an ongoing challenge.

• Process oriented - a long history of single data collection (input) division.

• In recent years we have developed project and team work (list of projects based on long term strategy and rules of procedure for project work).


Slovenian case (II)

• Cooperation between subject matter statisticians, IT, data collection division staff, general methodologists and data disseminators and communicators is organised and strongly requested.

• Training (internal, external), sharing of good practices and active partnership in the ESS and in international cooperation have an important role in developing SURS‘s competence base.

• Strong leadership support for intensive cooperation and communication at all levels in SURS and with all stakeholders nationally and internationally.

• SURS has built a long term (2012-2017) Strategy on HRM.


HRM priorities from SURS‘s long term strategy 2013-2017

Vision: Highly skilled, well organised and motivated employees

•Project work is highly recommended for development work and major survey revisions. Avoidance of complex projects and work in small groups are requested.•Reducing the number of organisational units and greater professionalization of their heads (leadership and management skills). •Improving the educational level of employees with regular and internal training and professional career guidance and development of new occupational profiles. Cooperation with the academic community.


HRM priorities from SURS‘s long term strategy 2013-2017

Vision: Highly skilled, well organised and motivated employees

•New technologies and the reduction of resources will cause the number of employees to drop. •Strengthening cooperation between individual profiles in the entire process of implementing the statistical survey. •Cooperation within the ESS and international projects will be an important element for motivating and training of employees.


•Instead of conclusion - Diagnosing and dealing with the

resistance to change by John P. Kotter and Leonard A. Schleninger (1999), Choosing Strategies for Change, Harvard Business School Press

Diagnosing resistance:•Self interest•Misunderstanding and lack of trust•Different assessments•Low tolerance for change

Dealing with resistance•Education and communication•Participation and involvement •Facilitation and support•Plan properly•Don‘t give up


3 Key Points1. Statistical organisations must be flexible to

adapt to new circumstances if they want to keep their relevance

2. We need the RIGHT PEOPLE

with the RIGHT SKILLS in the

RIGHT ORGANISATIONAL ENVIRONMENT

3. Human resources and training are an essential part of the long-term strategy for any NSO


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