We develop working life. Together.

TYKES (Finnish Workplace TYKES (Finnish Workplace Development Programme) in a NutshellDevelopment Programme) in a Nutshell

• government-funded programme (2004-09) for promoting simultaneous improvements in productivity and the quality of work (sustainable productivity growth) at Finnish workplaces

• the social partners closely involved• annual budget of EUR 12 million by the Government• about 650 projects in virtually all sectors of the economy

funded so far (focus on SMEs and growth-oriented companies)

• 90% of the funding used for work input of researchers and consultants in the projects

• all projects oriented to practice, research element involved in some of the projects

The Expanded The Expanded

Triple Helix ModelTriple Helix Model

Policy-makersLabour marketorganizations

R&D institutesConsultants

Companies andother workplaces

Typical Objects of Typical Objects of Development ProjectsDevelopment Projects

• the organization and design of work• work processes• supervisory work and leadership skills• internal cooperation within and between

work units and departments• external networking within the value chain • working methods• work environment

Typical Development Approaches, Methods or Tools

• development groups• skills and working conditions surveys and analysis• team training• management training• process flow analysis• auditing• mentoring• action research (e.g. work conference method)• benchmarking• developmental work research (e.g. change laboratory)• Balanced Scorecard, EFQM, IIP, etc.

What Kind of Results Do We Expect What Kind of Results Do We Expect from Development Projects?from Development Projects?

• First-order results: improvements in operational performance (productivity, quality, customer service, etc.) and the quality of work (better opportunities for learning and influence at work, improved collaboration within the work community, etc.)

• Second-order results: improvements in companies management and organizational practices that ensure the durability of the first-order results and reinforce the development capacity of the company

• Generative results (if possible): workable practices and solutions that could be made use of, usually with local redesign, by other companies as well

Project Showcase I in TYKES Project Showcase I in TYKES Bromma Conquip Plant in Tampere Bromma Conquip Plant in Tampere

(Assembly Plant of Spreaders)(Assembly Plant of Spreaders)

• The plant (70 employees) was in danger of losing its competitiveness within the Group owing to higher operating (incl. wage) costs compared to the Group’s other plants in Estonia and Malaysia. The future vision of the Group was that there will be only one plant in the Nordic countries.

• The staff participated in the project in six development groups during the period of two years. The groups provided 200 development initiatives, of which 150 were implemented during the course of the project.

• Delivery accuracy and the speed of rotation of inventories improved, productivity grew by 40% and quality costs per sales decreased from 4% to less than 1% from 2003 to 2005.

• The jobs remained in Finland, continuous improvement of operations and the work environment was established and a new high-trust culture emerged.

Key Message (Case I)Key Message (Case I)

In order to maintain their competitive strength, In order to maintain their competitive strength, manufacturing units in countries with relative manufacturing units in countries with relative

high operating costs should find a new high operating costs should find a new competitive edge from developed modes of competitive edge from developed modes of operation (customization, comprehensive operation (customization, comprehensive

customer service, speed, flexibility) and ability to customer service, speed, flexibility) and ability to generate innovations in products, processes, generate innovations in products, processes,

work organization and management.work organization and management.

Project Showcase II in TYKES Project Showcase II in TYKES Local Police Station in the City of HyvinkääLocal Police Station in the City of Hyvinkää

• The average crime investigation time was shortened by 80% (from 55 days to 12 days) in spite of a simultaneous reduction of the number of staff from 80 to 75.

• The investigation was reorganized into dedicated teams by the nature of investigation and the office layout was changed accordingly.

• By solving operational problems in the work organization and work flows also improvement in staff well-being was achieved.

• Later, the adoption of the ’Hyvinkää model’ was started in a number of other police stations, too.

Key Message (Case II)Key Message (Case II)

There is no reason to launch separate projects for There is no reason to launch separate projects for the development of performance (productivity, the development of performance (productivity, quality, etc.) and employee well-being (or job quality, etc.) and employee well-being (or job

satisfaction), as many workplaces do. satisfaction), as many workplaces do.

Instead, by developing the design/organization of Instead, by developing the design/organization of work and its supporting structures (HRM and HRD) work and its supporting structures (HRM and HRD) simultaneous improvements in both performance simultaneous improvements in both performance and well-being can be achieved most effectively.and well-being can be achieved most effectively.

Project Showcase III in TYKES Project Showcase III in TYKES Technical Division (TD) of the Public Works Technical Division (TD) of the Public Works

Department (PWD) in the City of HelsinkiDepartment (PWD) in the City of Helsinki

• PWD-TD is a city-owned unit which produces construction, vehicle rental and logistic services to different public (both local and central government) agencies in and outside Helsinki and to private enterprises in genuine competition with private-sector producers.

• PWD-TD employs about 500 persons whose average age is 47 years.

• The share of employees over 45 years is 60% and that of those over 56 years is 25%.

• Most work tasks are physically very or fairly demanding.• More than 10% of the staff in the early 2000s were on part-time

pensions owing to factors related to poor health or work ability, the share of sick absences was very high and the prospects of continuing work until the normal retirement age seemed poor for many of the employees.

Project Showcase in III TYKES Project Showcase in III TYKES PWD-TD: Aims of the Project in 2002PWD-TD: Aims of the Project in 2002

• To help employees stay on at work until the normal retirement age.

• To ensure the maintenance of employees’ productivity and occupational health througout their work career.

• To maintain and update employees’ occupational skills and, if needed, expand them and multiskill employees.

• To store and transfer the tacit knowledge of older employees.• To replace part-time pensions with more flexible

arrangements.• To maintain the profitability and competitiveness of the

organization.

Project Showcase III in TYKES Project Showcase III in TYKES PWD-TD: Some Changes Achieved with the PWD-TD: Some Changes Achieved with the

Help of the Project 2004-06Help of the Project 2004-06

• Supervisors are equipped with abilities to carry out age-related developmental discussions with their employees of over 45 years, which contain agreement on an individual developmental plan covering their entire working career.

• All employees over 45 years have an individual programme for updating their skills and skills that threaten to disappear with their retirement are mapped out.

• All those in jobs with heavy work load will have a chance to move to physically less demanding jobs.

• All those over 55 years have a health inspection at least once a year and an age-related leave system as an alternative to part-time pension.

• Flexible working hours and customized pay solutions are encouraged for older employees.

• Supervisors are equipped with better HRM skills.• Supporting discussions groups for older employees are created.• Retirement process is softened by coaching and counselling.

Key Message (Case III)Key Message (Case III)

Creating a succesful proactive approach to Creating a succesful proactive approach to problems cuased by ageing calls for a long-term problems cuased by ageing calls for a long-term

and comprehensive approach and involvement of and comprehensive approach and involvement of all major stakeholders (management, supervisors, all major stakeholders (management, supervisors,

shop stewards, occupational health care, OHS shop stewards, occupational health care, OHS professionals and shop-floor employees). professionals and shop-floor employees).

There is no one magic formula. Progress should be There is no one magic formula. Progress should be made simultaneuously on all levels of management made simultaneuously on all levels of management and on all areas of management and work systems.and on all areas of management and work systems.

Forms of Project ActivityForms of Project Activity

1. Basic analysis: brief analysis lasting for a few months which workplaces can use in specifying their development needs with an eye to a larger project. (max. EUR 10,000 per analysis)

2. Development projects: intended to promote changes in modes of operation at one or more workplaces with a view to simultaneous improvement in productivity and the quality of working life (max. EUR 100,000 per company)

3. Method development projects: creating and developing new development methods and practices for a knowledge-intensive, networking economy with the help of R&D institutes, which support qualitatively sustainable productivity growth

4. Learning network projects: creating long-lasting shared forums of learning for workplaces and R&D institutes to boost mutual exchange of experiences and knowledge based on development cooperation between the network participants

Forms of Project ActivityForms of Project Activity

Challenge of Sustainable Productivity Challenge of Sustainable Productivity GrowthGrowth

• how to find solutions which simultaneously improve labour productivity and the quality of working life in a manner that also supports employees’ ability to stay on at work?

• workplace development programmes are means to promote economic growth by having a positive contribution to both labour input and productivity growth

Project Funding by Sector Basic Analyses and Development Projects 2004-06

Agriculture andforestry

Industry

NGOsPrivateservice

s

Centralgovernment

Localgovernment

2%

32%

8%24%

3%

30%

Food

Textile & clothing

Mech. wood-processingPaper

Printing

Chemical

Stone & glass

Electric & electronics

Metal & engineering

Other

12%

3%

10%

2%6%

12%

2%10%

34%

9%

Effects of Development Projects Effects of Development Projects on Performance on Performance N = 381, Source: Ramstad 2005N = 381, Source: Ramstad 2005

0% 20% 40% 60% 80% 100%

Deteriorated slightly Deteriorated clearly Improved clearly Improved slightly

Effects of development projects (%)

Productivity oflabour

Quality of products andservices

Quality of operations

Customer service

Smoothness of operations

II period

I period9 60

59,57,1

67,3

67

12,2

9,3

6711

60,512,7

5911

14,4 56,4

55,311

8,4 55,6

II period

II period

II period

II period

I period

I period

I period

I period

Effects of Development Projects Effects of Development Projects on the Quality of Working Life on the Quality of Working Life N = 381, Source: Ramstad 2005N = 381, Source: Ramstad 2005

58,7 55,15955,155,1

0% 20% 40% 60% 80% 100%

Deteriorated slightly Deteriorated clearly Improved clearly Improved slightly

Team-based working

Cooperation between management and staff

Social relations

Opportunities for developing professional skill

Development activity

II period

I period

36,4 52,6

36,1 52,4

22

22,6

59

55,1

58,7

52,4

14,1

14,5

52,320,5

23,9 50,4

25,3

30,6

60

60,8

II period

II period

II period

II period

I period

I period

I period

I period

Channels for Dissemination of InformationChannels for Dissemination of Information

• large-scale projects and learning networks

• modules of several projects

• seminars and work conferences

• publications

• www sites

Statistically significant positive association between improvements in performance and QWL in 312 completed development projects funded by TYKES in 1996-2003 was found (Pearson r=.501)

management staff expert

Respondent group

1,50 2,00 2,50 3,00 3,50 4,00 4,50 5,00

quality of working life

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

per

form

ance

Programme Targets (examples)Programme Targets (examples)

• number of projects: 1000

• number of employees participating: 250,000 (45% over the age of 45, 50% women and 51,000 in SMEs)

• percentage of all expert funding in projects granted to universities, research institutes and polytechnics: 45% CONTINUES…

Programme Targets (examples)Programme Targets (examples)

• number of completed doctoral dissertations and licentiate thesis written in connection with project activity: 70

• TYKES has target numbers for the share of development projects which generate improvements in e.g. work productivity, customer service, management and labour cooperation, employees’ opportunities for development of their skills at work and employee well-being