Database of Best Practices World Bank Internet Error by jolinmilioncherie

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									               REPORT ON BEST PRACTICES
Report prepared within the framework of the “Institutional Development Programme” Project
     under the agreement No DWM/33/2001 of September 21, 2001 between the Ministry of Interior and
  Administration and Consortium of Canadian Urban Institute and Małopolska School of Public Administration
                                     Krakow University of Economics




                                                June 2002
INTRODUCTION...................................................................................................................................... 3
   BASES FOR PREPARING THE “DATABASE OF BEST PRACTICES” ............................................................... 4
   FUNCTION OF THE „DATABASE OF BEST PRACTICES” ............................................................................... 4
   STRUCTURE OF THE “DATABASE OF BEST PRACTICES” ............................................................................ 4
   METHOD OF PREPARING THE “DATABASE OF BEST PRACTICES” ............................................................... 4
UNDERSTANDING OF MANAGEMENT AREAS ................................................................................... 6
   STRATEGIC AND FINANCIAL M ANAGEMENT ............................................................................................... 7
   ORGANISATION AND FUNCTIONING OF THE OFFICE .................................................................................. 15
   PERSONNEL MANAGEMENT .................................................................................................................... 19
   PUBLIC SERVICES, INCLUDING MUNICIPAL SERVICES .............................................................................. 21
   PUBLIC PARTICIPATION AND STIMULATING SOCIAL DEVELOPMENT .......................................................... 29
   STIMULATING ECONOMIC DEVELOPMENT ................................................................................................ 33
   PROJECT M ANAGEMENT AND THE EU AID PROGRAMMES........................................................................ 38
   CO-OPERATION AMONG TERRITORIAL SELF-GOVERNMENT ENTITIES ....................................................... 42
   ETHICS AND PREVENTING CORRUPTION .................................................................................................. 44
   IMPLEMENTATION OF PUBLIC TASKS OF GOVERNMENT ADMINISTRATION IN THE VOIVODSHIP.................... 48
DATABASE OF BEST PRACTICES ..................................................................................................... 52
   PRIORITY OF INVESTMENT TASKS – THE CITY OF KRAKÓW ...................................................................... 53
   LONG-TERM FINANCIAL AND INVESTMENT PLANNING – THE GMINA OF WIERZBINEK ................................. 58
   STRATEGIC OPERATIONAL PLANS – CITY OF WINNIPEG .......................................................................... 69
   CATALOGUE OF CITY OFFICE SERVICES – THE TOWN OF NAMYSŁÓW ...................................................... 76
   IMPLEMENTING THE SYSTEM OF EMPLOYEE EVALUATION – THE TOWN OF DZIERŻONIÓW .......................... 81
   LOCAL INVESTMENT INITIATIVES – THE CITY OF KRAKÓW ........................................................................ 85
   PUBLIC CONSULTATION & PARTICIPATION – CITY OF NAGA, PHILIPPINES ................................................. 91
   DEVELOPMENT OF BILATERAL COMMUNICATION AND PUBLIC PARTICIPATION – THE GMINA OF NOWA DĘBA95
   ECONOMIC DEVELOPMENT INFORMATION – MULTIPLE FORMATS – CITY OF ST. ALBERT......................... 103
   QUESTIONNAIRE RESEARCH OF THE CLIMATE FOR ENTERPRISE – THE TOWN OF OSTRÓW WIELKOPOLSKI108
   CO-OPERATION AMONG LOCAL GOVERNMENT ENTITIES WITHIN THE FRAMEWORK OF THE ASSOCIATION OF
   GMINAS OF THE UPPER RABA BASIN AND KRAKÓW .............................................................................. 113
   PREPARING A NETWORK OF SPECIALISTS FOR THE EU AND ITS PROGRAMMES IN THE GMINAS AND
   POWIATS OF THE SILESIA VOIVODSHIP.................................................................................................. 117




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INTRODUCTION




     3
Bases for Preparing the “Database Of Best Practices”

The basis for preparing the „Database of best practices’ was the „Preliminary report on best
practices”, prepared in the first month of the implementation of the Institutional Development
Programme (IDP). The report defined the areas of IDP, described the vision of the target state
in each area, characterized the present situation and showed examples of Polish and foreign
best practices.
The authors of the report believe that the information included there will serve the purpose of:
– achieving a uniform understanding of management areas and target directions of change by
   consultants implementing the IDP,
– carrying out a preliminary diagnosis, in the aspect of institutional development, in the
   management areas which were subjects of analysis, and presenting solutions serving the
   improvement of management in these areas,
– members of local task teams (operating in pilot entities) developing a common
   understanding of the subject matter of the IDP and desirable directions and methods of
   change in the management areas defined in the IDP.

Function of the „Database of Best Practices”

The database performs two fundamental functions:
– instrumental (one of the instruments of implementing the IDP),
– educational (creates the framework for seeking good, practically verified solutions).
With regard to the instrumental dimension, the “Database of best practices” is perceived as a
methodological tool, closely corresponding to indexes (descriptive and quantitative) and
diagnostic questions.
With regard to the educational dimension, the “Database of best practices” will be
disseminated, addressed to all territorial self-government entities in Poland. The aim will be to
disseminate the IDP outputs and experiences, which will serve to build public administration
entities oriented to management.

Structure of the “Database of Best Practices”

The structure of the project is based on the division into management areas which are the
subject of the IDP, i.e.:
– strategic and financial management,
– organisation and functioning of the office,
– personnel management,
– ethics and preventing corruption,
– public services, including municipal services,
– public participation and stimulating social development,
– stimulating economic development,
– co-operation among territorial self-government entities,
– management by projects and EU aid programmes.
The description of specific practices was preceded by the description of the management area,
the target vision in the area, and the synthetic evaluation of the situation in the area.
In the present form, the “Database of best practices” lists several Polish and foreign practices.

Method of Preparing the “Database of Best Practices”




                                                  4
The “Database of best practices” was prepared by Polish and foreign consultants. It is, in the
authors’ intention, a “dynamic” project, which will be supplemented and verified on the basis
of experiences following from the IDP implementation.




                                              5
UNDERSTANDING OF MANAGEMENT
           AREAS




             6
Strategic and Financial Management

Definition of the area of strategic management
Strategic management is the ability to build and implement the strategy of the institution (in
this case a public administration entity). The stages of strategic activity are:
– creating a vision 1 of the development of a given entity,
– declaring a mission 2 of the entity in the process of implementation of the development
    vision,
– translating the vision into objectives (general and partial),
– showing modes of action (operational programmes),
– implementing the strategy efficiently and effectively,
– monitoring and initiating adaptive changes.

Three issues key for this area will be the subject of analysis in the field of strategic
management:
– possessing a strategic plan and public participation in it,
– existence of operating plans of implementing the strategy,
– division of duties and responsibilities among the council, board and staff.

Vision of the optimum situation in the area of strategic management
In the territorial administration entity organised in an optimum way from the viewpoint of the
analysed area, the principle of involving the society in the process of building the strategy, its
implementation and control (i.e. involving the citizens in the process of defining the goals of
local communities) should be introduced.
In order to achieve the desired result, all basic elements of the process of strategic
management must also be present, including:
a) Building and using the vision as a factor orienting the activities of the whole local
community and territorial administration.
The key ability is the capacity to perceive the values expressed in the vision and turning them
into the basis of activity of territorial administration entities and their co-operation with local
communities. It is essential that territorial self-government authorities should have a
vision/mission statement, expressing the common goals of executive and legislative bodies.
The vision should be formulated in a concise and unambiguous manner, preferably in written
form, and it must be known to citizens and all office employees. A well-defined vision of
development and mission enable to focus the thinking and acting of all organisational units
and stimulate the personnel to active involvement in the activities of their institution.
b) Formulating general objectives in accordance with the vision of development and
declared mission
Defining the objectives consists in translating the mission into specific activities. This enables
to specify the disparity between the reality and the desired state. This activity requires
innovative and at the same time ordered action. Citizens, members of the local community
and their representatives from local „parliaments” should participate in the process of setting
the objectives. Public institutions cannot realise their own goals independently of the local
community. Both the representative and executive bodies must have the knowledge on the
subject of main, long-term goals and partial, short-term goals. The first set the direction of the
institution development and at the same time are an answer to the unsolved needs of the local
1
  The vision is a portrait of the future state of this community – gmina, powiat, voivodship – developed in the community (i.e. with the
participation of inhabitants, their representatives). It is an image of the desirable future. It should include a verbalisation of goals and
aspirations of the local community.
2
  The mission describes the mandate of a given public administration entity to implement its vision of development and the superior values
(principles) which guide this entity and its employees when performing the tasks aimed at the vision implementation.


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community. Short-term goals show the activities which should be taken up on a current basis
to improve the chosen area (areas) of the institution activity, thus preparing the basis for the
implementation of the main objectives.
In the process of translating the „general objectives” into „partial objectives” (departments,
sections) the responsibility for the realisation of objectives is assigned to particular functions
and the institution is permeated with the atmosphere of “goal-orientation”. Directors of all
tiers of organisation hierarchy (office) should take part in the process. Each organisational
unit should have definite, measurable objectives showing its contribution to the realisation of
the institution’s and community’s objectives. The objectives should by known to and
understood by the administration personnel. The internal information policy of the institution
ought to serve this purpose – it must contribute to the „omnipresence” of objectives – no cell
in the self-government structure should lack the knowledge of the objectives and the methods
of their realisation.
The ability to implement a strategy is based on the capacity for developing operational
programmes allocating specific human, material and financial resources to each of the general
objectives or to separated groups of general objectives. Implementation includes a series of
management functions, such as organising, motivating, supervising, leading, budgeting.
c) Developing and using systems of measurements.3
The ability to develop and use systems of measurements of the strategy implementation
progress and the principles of updating strategy objectives on the basis of the results of
monitoring carried out by means of the above measurements is one of the essential factors
determining efficient strategic management.
d) Defining and respecting the division of authority and responsibilities of executive and
legislative bodies in the process of strategy implementation.
It is necessary to accept the rule that legislative bodies participate in strategy building and
approve it as well as periodically control the process of its implementation (e.g. annually at
special sessions), whereas executive organs (administration) implement the strategy and
periodically prepare a report on the implementation process. Since administrative (executive)
bodies are responsible for strategy implementation, they should not be „steered manually” by
councils (this could lead to blurring the responsibility) but should instead have full
independence in the sphere of particular executive decisions (e.g. personnel and bonuses
decisions, promotions etc.). What is of enormous importance is the question of division of
budget funds into particular strategy tasks – legislative bodies should influence boards
(offices) only through defining general conditions of strategy implementation, not through
dictating what should be done specifically on the matter of strategy implementation.
Activities aimed at finding the optimum solutions require that the following conditions should
be met:
– specifying the areas of activity which determine the main and partial objectives, in practice
this means creating a map of institutions involved in the process of strategic management and
describing their objectives, tasks and scopes of responsibility as well as showing the
mechanisms for co-ordinating their activities,
– division of resources (material and non-material) among the participants in the process of
strategic management for the realisation of their objectives,
– building organisational culture conducive to strategy implementation (i.e. promoting values
and outlooks required for the realisation of accepted objectives among the institution
personnel, the skill of team work and co-operation among organisational departments and
units),



3   In this report both concepts are understood as synonyms.


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– motivating employees and modifying the content of employee roles in order to adjust them
better to strategy requirements,
– creating an objective system of rewards and bonuses related to employees’ involvement and
the degree to which they realise the institution objectives,
– defining organisational procedures which enable the strategy implementation,
– developing a system of information and reporting which enables the monitoring of the
process of realising and correcting objectives,
– necessity to perform periodical evaluation of strategy implementation (based on a system of
measurements) and the ability to correct the strategy depending on the arising needs.
To achieve an optimum situation in the field of strategic management, with regard to the
strategic plan and public participation in it, it is necessary:
– to approve the strategic plan by the entity council, taking account of the comments from
citizens, social and economic partners,
– that the plan should define the key values, long-term objectives and priorities (e.g. in the
area of providing public services) and generally described detailed objectives,
– to allocate funds in the annual budget for the implementation of the approved tasks, pointing
to alternative sources of financing,
– partials objectives of innovative nature should be included in the long-term investment plan,
– to develop and implement the principles of monitoring the strategy implementation (a
system of indexes for strategy monitoring is developed) and to define the manner in which
citizens, social and economic partners participate in the process,
– to appoint a person (group of people) responsible for the monitoring and updating of
strategic objectives and priorities,
– to appoint a person (group of people) responsible for the monitoring and updating of
strategic objectives and priorities.
To achieve an optimum situation in the field of developing operational plans for the strategy,
it is necessary:
– for all general objectives described in the formally approved strategy to have
implementation plans, covering:
      – definition of the tasks of office units/employees connected with the implementation of
      operational plans,
      – schedules of implementing the tasks written in the operational plan,
      – appointed persons (team) responsible for the monitoring of the process of implementing
      operational plans,
      – precise system of monitoring the implementation of operational plans based on financial and
      material reports incoming from authorised entities,
– to approve the annual budget and the anticipated long-term budget,
– to define the criteria and principles of monitoring the implementation of plans (development of a
system of indexes for monitoring operational plans),
– to define the criteria and principles of updating operational plans (defining the involvement of
institutional partners and citizens in the process),
– to approve the annual budget and the anticipated long-term budget, related to the system of
gmina long-term financial planning,
– to carry out regular (periodical, annual) monitoring of the progress of implementing all
plans and basing the systematic updating of operational plans on its results.
To achieve an optimum situation in the field of division of tasks among the council, board and
employees, it is necessary:
– to divide the tasks among the council, board and employees based on internal documents
(statute, regulations, complementary procedures etc.) which define precisely the division of
roles and competence,


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– to carry out regular analysis of internal documents based on the systematically gathered
opinions of the concerned groups on the subject of work division (in accepted intervals on the
basis of e.g. results of questionnaire research),
– to update documents regulating the division of tasks among the council, board and
employees,
– to confirm (through evaluation results) that the division of tasks is realised in practice: the
council approves strategic and operational objectives and control their achievement, the board
prepares decision drafts for the council, makes key executive decisions and only supervises
their implementation, and the employees have appropriate competence to implement tasks.

Preliminary evaluation of the actual situation in the area on the basis of the present
practices of public administration entities in Poland and the world

LOCAL PERSPECTIVE
Thinking in the categories of strategic management and applying its instruments still do not
belong to the canon of activity of public administration entities in Poland. The basic difficulty
in building the „climate” for strategic activities results from the mentality and habits of local
authorities representatives and rank-and-file personnel of public institutions. The society’s
image of the wójt, starosta or Voivod to some degree echoes the tradition, according to which
these people should be „good governors” in their respective fields of activity, but this image
does not always focus on the content of duties and on specific management skills connected
with these duties. The term „management” is slowly fighting its way to public institutions, it
is mainly associated with the sphere of economy and enterprises. There is a danger that
strategy could be regarded as a necessity following from a temporary fad and/or a formal
requirement which does not contribute to any essential changes in the hitherto practice of the
functioning of the analysed institutions. This danger could be counteracted by disseminating
examples of institutions which were successful in developing and implementing strategy and
by intensive training effort and personnel policy ensuring the inflow of staff with certified
qualifications in the field of strategic management.
The second problem is connected with quite a common habit of constant games and squabbles
(boards-councils) and with centralist practices of administration in offices, according to which
action is initiated by „the top” – the wójt, starosta, etc. This practice deviates from the idea of
management in the modern sense of the term. As a result it is quite common that local offices,
instead of serving their citizens, focus on administering their own structure and performing
(with various efficiency) routine administrative tasks. The concern for a clear-cut division of
authority of legislative and executive bodies remains the main means of change of the present
practices.
The third problem is connected with the level of activity of citizens, their knowledge of self-
government and its tasks and their expectations towards self-government. The conducted
research proves that citizens are more willing to see the state rather than the voivodship,
powiat or gmina as the centre which meets various needs of the local community. There is a
lack of effective instruments forcing changes in efficiency, which may pose an important
barrier to the implementation of practices and procedures of strategic management in self-
government institutions. Public opinion polls have been showing a falling tendency of social
trust in self-government, e.g. due to corruption practices or unethical behaviours.
An important weakness in building mechanisms of strategic management of Polish
administration is a lack of determination in implementing approved strategic documents, not
always appropriate level of operationalisation and not very efficient mechanisms of
monitoring and updating the strategy.



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Despite the above limitation related to building administrative culture based on the principles
of strategic management, in Poland there are many entities which can be proud of
considerable achievements in this area. The leading gminas are e.g.: Ostrów Wielkopolski,
Gdynia, Jarosław, Namysłów, Ciężkowice. At the level of powiat self-government, we should
name the powiats of Sącz, Szczecin and Kłobucko.
With regard to the issue of strategic management, certain tendency can be observed in the
reality of the public administration activity in Poland. This consists in the fact that in the case
of large territorial government entities, particularly the voivodship government, the quality of
strategic documents and the level of consistency in implementing the documents is high. The
situation in gmina and powiat government entities is less optimistic.

INTERNATIONAL PERSPECTIVE
In the majority of local self-governments in the West (such as the USA, Canada, the EU
countries, Australia or New Zealand) the state in the area of strategic management must be
estimated as high. We should also emphasise the high level of public involvement in the work
on strategic documents and in the decision-making process related to their implementation,
monitoring and updating. The following cities are good examples: Kalamazoo (Michigan,
USA), Winnipeg (Manitoba, Canada), Peel (Ontario, Canada) and Naga (the Philippines).
Just like in Poland, the evaluation of the level of advancement in the area of existing
operational plans is less favourable. In some entities this state should be evaluated as
unsatisfactory, but there are also entities which are close to the optimum stage.
In the majority of territorial self-government entities in western countries there are no
problems in the area of task distribution among the council, board and employees.
This follows both from the precise legal regulations and from historical conditions, i.e. the
tradition of strong executive power and the practice of precise distribution of the executive,
legislative and controlling authority, which have deep roots in the history of public
administration of these countries.
Solutions at the level of local self-government have a key effect on the shape of distributing
the responsibilities and competence among legislative and controlling bodies, particularly in
the USA.
In the USA there are three basic models of organisation of local authorities, i.e. Mayor-
Council, Committee, and City Administrator. In practice we usually encounter a combination
of these.
The Mayor-Council model is in its nature similar to the continental solutions. This is the
oldest and most frequently used form of organising municipal authorities (since the beginning
of the 20th century this has been the form used by all cities) Its characteristic feature is the
Mayor as an elective executive body and an elected Council formulating the local law. The
Mayor is supported by department heads appointed by the Mayor (sometimes the Council
must approve their nominations).
The organisation of local authorities called Committee must be regarded as a specifically
American model of local democracy. This solution consists in entrusting executive and
legislative functions to the same group of officials, so called commissioners, chosen in direct
elections. Each of them is responsible for one or several departments of the city office.
Usually one of them performs the function of chairperson called Mayor, but his scope of
authority is identical with that of other commissioners.
A relatively new manner of organising local authorities is the more and more popular model
of City Administrator. The growing popularity of this model is a result of the growing
complexity of big city problems, which can be increasingly less efficiently dealt with by
means of routine office activities. Solving such problems requires managerial skills, which the
elected clerks do not always have. City Administrators are given a wide range of authority

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and autonomy. Within the framework of this model small elected city councils take strategic
decisions defining the city’s directions and managers are entrusted with implementing the
decisions.

It would be common to find urban local governments to be at level 4 or 5 with respect to
strategic plan preparation with public input, and the division of tasks between Council and
staff. In the United States, local government has struggled a little more with a clear division of
tasks between political and staff levels due to the historical and legal structures of local
governments. In general, rural and small local governments would be slightly less advanced
in these areas than their large urban counterparts. While there are some rural local
governments that reach higher levels of development, they are often unknown, as
documentation is usually weaker or non-existent, and there are fewer opportunities to
“highlight” their successes.

Regarding the “implementation of operational plans” indicator, while there are examples of
successful linking of operational plans to strategic plans, this task does represent a challenge
for most governments. A challenge that is much greater, currently what would be considered
as the “ultimate achievement” by the most sophisticated advanced local governments, is the
complete integration of strategic and operational planning, task or service-based financial
planning/budgeting/reporting, along with performance measurement and benchmarking of
those services. There are relatively few if any, that have successfully reached this plateau, and
in a rural situation, almost certain to not exist. A few governments, such as the cities of
Wellington and Upper Hutt in New Zealand are quite close to a smooth integration of these
areas, but generally the level of detail at all levels of these integrated functions is significantly
less than what is being attempted in Winnipeg, Canada, for example.


Definition of the area of financial management
Financial management is the present and future provision of means enabling efficient and
economical realisation of goals following from the strategy of an entity through:
– determining the scope of long-term financial capacity,
– setting the standards of preparation of programmes and tasks to be financed, taking into
    consideration the means of measurement,
– breaking down long-term and annual plans as a sum of projects and tasks balancing the
    possibilities of financing,
– linking funds with objectives at each stage of the project and task (planning, monitoring,
    reporting, evaluation),
– gathering data for monitoring the progress and performing the evaluation of tasks and
    programmes so as to:
– achieve an expected standard of services and ensure the adequate level of infrastructure
    necessary for providing the services,
– ensure the realisation of developmental objectives according to the priorities written in the
    strategy,
– achieve high efficiency (adequate defining of service receiver’s needs and ensuring its
    adequate quality) and appropriate cost efficiency of activities.
The subject matter of financial management, defined in the context of the Institutional
Development Programme project, includes the preparation and implementation of basic
procedures of financial planning and management, whose products will be:
a) Long-term Financing Plan (LFP)



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A document defining: the prognosis of the gmina income, the amount of operating
expenditure and outlays following from the servicing and repaying of incurred debts, the
expected size of debt and amount of investment funds in the year covered by the plan. The
time limit of the LFP is usually five to ten years.
On this basis three basic numbers can be estimated:
size and dynamics of cumulated debt of an entity in the individual years of the plan,
level and expected dynamics of change of „cash equivalents” (difference between income and
    operating expenditures). This amount determines the ability of financing the development
    by the entity budget,
share of personnel expenditure in the operating expenditure (measurement of budget
    flexibility).
b) Long-term Investment Plan (LIP)
A document containing a list of investment tasks to be implemented, together with a feasible
schedule and a pattern of financing broken down into specific years of the plan (4-6 years).
The hierarchy of investment tasks defined in the LIP results from applying the criteria
included in the strategy of the entity implementing the LIP. The plan is a basis for preparing
the investment part of the budget in a given year. It ensures that the means for the projects
serving the purpose of implementing strategic investments will be guaranteed in the long
term. The plan is harmonised with the LIP.
c) Task-Based Budget (TBB)
The annual financing plan of a territorial self-government entity, prepared in such a way that
prior to recording expenditures in the budget classification, detailed material and financing
plans of activities to be implemented are prepared in the form of budget tasks.
A budget task is an elementary unit of account in the budget structure, which characterises a
moderately uniform activity. A budget task has a name, an objective, a product defined in
terms of quantity and quality, a production cost and efficiency indexes.
The aims of budget tasks follow from:
– legal requirements imposed on the local self-government,
– long-term strategy and standards approved by the legislative organ,
– programme priorities of the politicians in power.
The Task-Based Budget, in contrast to the LFP and LIP, additionally requires initiating
monitoring mechanisms, adjusting accountancy and introducing instruments serving the
purpose of evaluating the degree of implementation of the tasks following from the approved
plans.
All the instruments of management can be implemented at various level of advancement
depending on the organisational skills and personnel resources of a given entity.

Vision of the optimum situation in the area of financial management
A well-managed entity of territorial administration is one in which the activity of all cells and
units is directed to the implementation of strategic objectives agreed on in the course of
dialogue between self-government and the local community, and these objectives are
implemented in an efficient and effective manner (both in the social and economic
dimension).
At the basis of realising the above vision, there is a model of integrated management. Its main
characteristics are:
– multi-annuality, i.e. long-term perspective in planning operational and investment tasks,
– comprehensiveness, i.e. subjecting all the implementation plans of entities subordinate to
    the territorial self-government entity to its strategy, irrespectively of their legal status,
– efficiency, i.e. all subordinate entities apply the methods of measurement and improvement
    of efficiency,


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– participation, i.e. objectives and evaluations are a subject of a wide public dialogue.
The following should be counted among the model methods of public management:
    – methodology of developing long-term financing plans (LFP),
    – methodology of financial security analysis – debt management,
    – methodology of building a moving LIP,
    – methodology of developing TBBs,
    – methodology of preparing advanced financing and investment plans of companies and
        gmina plants,
    – methodology of preparing infrastructural projects for financing,
    – methodology of preparing a consolidated financial report of territorial self-government
        entities.

To achieve an optimum situation in the field of financial management with regard to long-
term evaluation of financial situation, it is necessary:
– to create a prognosis of income by source and expenditure by basic divisions of budgetary
    classification for the period of at least 5 years. The prognosis should cover, apart from
    income and expenditure, also receipts and payments and cumulated debt in successive
    years,
– that the expenditure plan should additionally clearly separate the anticipated operational
    expenditure from investment outlays, showing the dynamics of change of cash
    equivalents,
– the expenditure plan should break down the current expenditure into: personal, purchase of
    services, other operational and financial expenditure, the plan should be moving, i.e. it is
    updated every year.
To achieve an optimum situation in the field of financial management with regard to long-
term investment planning, it is necessary:
– to create a long-term investment plan (LIP), covering at least: a list of investments ordered
    in accordance with the accepted criteria, a description and the amount of money required
    for the implementation of each of them,
– to harmonise the LIP with the LFP, so that each project placed on the list had its own
    financing plan broken down into individual years of the plan, and so that the criteria and
    list of tasks are accepted in the process of consultation with the local community,
– to create a formalised procedure of annual updating the moving LIP, covering the standard of
    presentation of data on each planned investment, and the plan should define the material scope for
    each task anticipated for the next year.
To achieve an optimum situation in the field of financial management with regard to annual
financial planning, it is necessary:
– all office organisational units should prepare the task-based budget and procedure and
    budget calendar in the form of gmina board resolution,
– the objectives of budget tasks should reflect the postulates included in the gmina strategy
    and should be accompanied by information on the method of achieving them and the
    changes induced by the implementation,
– the plans of tasks should include the anticipated total cost (including the cost of work), and the
    measurements for evaluating their results.




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Preliminary evaluation of the actual situation in the area on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
The situation in the field of financial management is very diverse. There is a number of
gminas advanced in improving the techniques and instruments of financial management.
However, many of them still cultivate old habits, which is an obstacle to strategy
implementation even if it has been prepared correctly.
In many gminas the budget is built up on the basis of a plan of expenditures and expected
performance in the current year, duplicating percentage shares in the individual divisions and
chapters of budget classification. Corrections in favour of particular administrators are made
as a result of intuitive evaluations and political pressure. Receiving additional resources does
not oblige to achieving particular effects but only to spending the allocated means on a
specific goal. In these gminas there is usually a lack of long-term investment plans.
Sometimes there is only a one-page presentation of income, expenditure and debt in a
prognosis for a several years.
Among the gminas advanced in the area of applying the task-based budget, we can count e.g.:
Bychawa, Ziębice and Starachowice. The mechanisms of long-term financial and investment
planning are implemented e.g. in: Kościerzyna, Wierzbinek and the powiat of Pleszów.

INTERNATIONAL PERSPECTIVE
The tendencies in the field of finance management in the international perspective can be
characterised in the following way:
– financing plans are more and more advanced, i.e. from ten to twenty years,
– frequently (e.g. in Anglo-American countries) investment budget and operating budget are
    separate and have separate sources of income, which favours rationalisation (e.g. prevents
    spending income from assets on consumption, or incurring a debt to cover a deficit in
    operating expenditure),
– strong emphasis is put on the measurement of efficiency (quality) and cost efficiency, which
    are used to rationalise activities – performance measurement,
– the accountancy system of the public sector is approaching the requirements of the private
    sector, there are new IPSAS accountancy standards in the public sector modelled on the
    IAS standards already long in use (e.g. New Zealand self-governments are legally bound
    to use accrual accounting and calculate the total costs),
– management in self-government becomes similar to management in the private sector,
    budget tasks are managed as separate projects, which is connected with a decentralisation
    of the decision-making process,
– more frequently instead of strictly controlling the type of expenditures, they are evaluated
    from the perspective of achieved results and this evaluation is connected with the
    remuneration system – performance management,
– the slogan of efficiency in administration: „do it as cheaply as possible, do not waste funds”,
    which has been very important until recently, is replaced by the so called Best Value:
    „having certain funds at the disposal, provide a good-quality product to the appropriate
    receiver.”

Organisation and Functioning of the Office

Definition of the area of organisation and functioning of the office
The analysed area cover the organisation and functioning of the office (gmina, powiat,
Marshal, Voivodship), including the three following dimensions:

                                                15
1. The organisational and formal structure (static organisation), understood as a system of
mutually related organisational units (departments) in the office, taking account of:
– implementation of the entity objectives and strategy,
– distribution of tasks among organisational units,
– capacity for management of managerial posts (distribution of authority, delegating authority
and using the available range of management).
2. Administrative and office procedures (dynamic organisation), necessary for the
implementation of these tasks, taking account of:
    – implemented processes (sequences of activities and ranges of co-operation),
    – co-operation of units in their improvement,
    – susceptibility of procedures to unethical behaviours.
3. Internal communication in the office, i.e. the necessary flow of information and decisions
enabling the implementation of procedures and efficient co-ordination, taking account of:
       – horizontal communication, i.e. flow of information among the units implementing
           tasks and procedures,
       – vertical communication, i.e. flow of information necessary for mutual satisfaction of
           information needs of directors (decision-makers) and implementers (lower level of
           staff),
       – using computer systems for the implementation of tasks and procedures.

Vision of the optimum situation in the area of organisation and functioning of the office
In the analysed area the gmina (powiat, voivodship) implements the assigned objectives and
tasks through the office, i.e. at the operational level. Its mission therefore is aimed at
satisfying the needs of the local community (connected with these tasks and reflected in the
approved strategy of the gmina) in the best possible way. The gmina (powiat, voivodship)
authorities should therefore continuously improve the organisation and functioning of the
office so that the highest level of efficiency is achieved with respect to the implementation of
strategic objectives and current tasks at the lowest cost level possible.

The vision of the model state in the discussed area is thus based on the assumption that the
target solution is to guarantee the maximum efficiency of the organisation and functioning of
the office from the point of view of the above mission, with the application of modern
management instruments, in particular:
– self-teaching organisation,
– project management,
– virtual teams,
– process organisation,
– orientated to customer (inhabitant and local community) needs and supported by computer
systems, this solution will be specified by means of a system of efficiency indexes with regard
to the above dimension and aspects of the office organisation and functioning.

It is assumed that some elements of the mentioned concepts typical for economic entities will
be adapted, respecting the specificity of the office functioning.

To achieve an optimum situation in the field of organisation and functioning of the office,
with regard to adjusting the office structure to the entity objectives and strategy, it is
necessary:
– all strategic objectives should be adequately taken into account in the scopes of tasks of
    appropriate organisational units,
– criteria of evaluating strategic objectives should be formulated,


                                               16
– systematic activities evaluating and improving the process of implementing strategic
    objectives on the basis of accepted criteria should be undertaken,
– the distribution of tasks in the office should be fully adjusted to the possible changes in the
    entity strategy.

To achieve an optimum situation in the field of institutional development, with regard to the
functional efficiency of the office, it is necessary:
– to review systematically the distribution of tasks and the methods of their implementation
    from the angle of possible changes improving the functioning of the office. Apart from
    systematic corrective activities it is necessary to undertake preventive activities
    (anticipating problems and removing their presumable causes),
– that the office as a whole and individual units should be able to improve the efficiency of
    task implementation in response to increasing demands.

To achieve an optimum situation with regard to process management, it is necessary:
– to identify and describe all the processes (in the necessary scope),
– to establish appropriate measurements (standards) of the implementation of all key
    processes,
– to manage all processes by means of appropriate measurements,
– to adjust the organisational structure to the implemented processes,
– to identify problems in the process implementation and to undertake systematic improving
    and developing activities with regard to process management.

To achieve the highest stage of development with regard to process implementation and
improvement, it is necessary:
– to analyse systematically problems in co-operation by implementers of partial activities,
– to undertake systemic improving activities with regard to co-operation in process
    implementation,
– to develop efficient mechanisms of co-operation of implementers of partial activities,
– that implementers of partial objectives should undertake systematic activities for the
    purpose of improving the implemented processes.

To achieve an optimum situation with regard to efficiency of internal communication, it is
necessary:
– to undertake regular activities correcting the system of communication and individual
    projects improving some of its elements,
– to communicate systematically, also in the form of meetings with the participation of the
    staff,
– to foresee information needs and problems with satisfying them,
– to undertake systematic improving and developing activities with regard to the system of
    communication,
– to satisfy fully information needs (from the viewpoint of the information needs necessary
    for task implementation).

To achieve an optimum situation in the field of organisation and functioning of the office,
with regard to process computerisation, it is necessary:
– to computerise all processes at the level of individual implementers,
– to provide software in the form of integrated databases, with multi-access to the Intranet,
– to obtain all the necessary information directly from the computer system,



                                                17
– to integrate the system fully with the use of Intranet and Internet, taking account of process
    receivers (services on the Internet).

Preliminary evaluation of the actual situation in the field on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
One might advance a hypothesis that the actual state of the organisation and functioning of
public administration offices in Poland (which is a product of the mechanisms applied prior to
1989 and solutions following from the administrative reforms) is unsatisfactory from the
viewpoint of efficient management of the gmina (powiat, voivodship) and meeting the
inhabitants’ needs. The dominant form of office organisation is a rigid, excessively
centralised structure, marginally oriented to management, characterised by a limited ability of
implementing strategic tasks. Moreover there is a considerable diversification of the
organisation level in individual offices depending on a series of factors, such as: geographic
situation, tradition, financial situation, staff qualifications etc.
It seems that a minority of public administration entities bases their activities on strategic
planning, which results e.g. in the generally low level of “saturation” of offices with strategic
objectives.
A consequence of the above-mentioned rigid organisational structure of offices is a low level
of their functional efficiency, restricted capacity for process management and limitations with
regard to improving the processes.
A lack of effective internal (horizontal and vertical) communication must be regarded as one
of the basic shortcomings, which lower the efficiency of activities of public administration
entities.
The area where there is relatively rapid improvement is office computerisation and related
process computerisation. However, this process is frequently implemented without
formulating the strategy of computerisation, which decreases considerably the resulting
benefits.
For several years, in Polish administration (including territorial self-government entities) there
has been an increasing process of implementing solutions taken from new public management
and quality systems. There are already examples of entities, which successfully apply such
solutions in the area of organisation and functioning of the office. In this group, we may
include, among others, the town of Sanok (rationalisation of organisational structure), the
town of Namysłów (catalogue of city services), the powiat of Namysłów (customer service
office), Warszawa-Włochy (system of electronic circulation of documents), the town of Śrem
(principles of defining measurements of process efficiency in the city office).


INTERNATIONAL PERSPECTIVE
International experiences show that administrations of western countries face, to some degree,
the same problems as the Polish administration.
In the evaluation of international consultants, in public administration entities there is a high
level of diversification of the degree of translating strategic objectives into the organisational
structure and mechanisms of activity of public administration offices.
Frequently, strategic plans focus on marginal changes, i.e. the services which are “politically
visible” instead of paying attention to the essential issues of a given community. In a minority
of territorial self-government entities there are efficient mechanisms of monitoring the process
of implementing the strategy and the changes it brings about.


                                                18
In foreign public administration entities, the issue of functional efficiency, the capacity for
process management and improvement are advantageous.

The advancement in the area of process management by territorial government entities is
highest in the USA, where almost all organisational units described the key processes, and
information on the subject is widely available for citizens.

The majority of territorial government entities reached a stage where the exchange of
information among and inside departments is wide, clear and brief, and news is regularly
disseminated through the Intranet, bulletins, circular letters etc.

In the case of issues related to organisation and functioning of foreign territorial government
entities, there is a similar tendency to the one observed in Poland. Generally, the level of
office efficiency (with regard to organisation and functioning) is higher in larger urban self-
government entities and lower in the offices in rural areas.


Personnel Management

Definition of the area of personnel management
The area of personnel management in public administration entities comprises, first of all,
making executive decisions and implementing integrated activities aimed at ensuring the
necessary amount and quality of personnel in a given place and time, and using the personnel
rationally, in agreement with the institution mission and objective. Such activities are
concentrated on implementing programmes, improving procedures, principles and methods,
they contribute to fulfilling numerous personnel functions, also called task areas.
In the IDP the area and subject matter of analyses is concentrated on exploring the key
functions and areas, i.e. the procedure of recruitment (analysis of work, job descriptions),
system of employee evaluation, system of training and professional improvement, system of
promotion and supervision, advice with regard to personnel management for subsidiaries or
supervised entities. The objective of these analyses is showing the directions and methods of
improving the personnel process and the process of motivating employees of territorial
administration entities.

Vision of the optimum situation in the area of personnel management
The optimum situation in the area of personnel management with regard to recruitment
requires applying recruitment instruments, their regular improvement, and ensuring that they
cover the process of recruitment planning, recruitment, selection and adaptation for work of
all categories of employees.

To achieve the optimum situation in the area of personnel management with regard to
employee evaluation system, we should apply an integrated, modern, regularly verified and
improved system of evaluation of all categories of employees, and the evaluation results
should be used in rationalising employment.

To achieve the optimum situation in the area of personnel management with regard to the
system of training and professional development, it is necessary to implement (fully) the
holistic training policy – training planning, needs analysis, implementation, evaluation of
training efficiency. This policy should be regularly evaluated and updated.



                                                19
The fundamental objective of the functioning of territorial administration entities (gmina,
powiat, voivodship) is satisfying the needs of the persons using their services, and efficient
use of resources at their disposal.
The basic condition of realising this objective is possessing appropriate (both with regard to
clerical skills and ethical attitudes) personnel. It is the personnel employed in the mentioned
institutions determine the fulfilment of their objectives, using the material resources at their
disposal and determine their efficiency and effectiveness.
Meeting this condition requires appropriate design, and then implementation and systematic
use, of integrated and standardised tools and mechanisms of employee recruitment, selection,
evaluation, training and development and promotion.

Preliminary evaluation of the actual situation in the area on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
The evaluation of the level of personnel management in territorial administration entities is
not clear-cut. Some of them have achieved an adequately high level, they will serve as
examples of sources of best practices. However, in most gmina and powiat offices it is quite
rare to apply the principles, procedures and instruments in the field of human resources
management. There are also problems with the „transparency” of their functioning.
An approach oriented towards personnel administering rather than managing is still dominant
in many territorial administration entities. Many offices lack systemic solutions in the field of
personnel policy, for this reason a number of undertaken activities is characterised by a low
level of standardisation and a lack of regularity. The areas which need particular
transformation are such aspects of personnel management as recruitment procedures and
motivational systems, including non-financial motivation.
Clerks usually have the qualifications necessary for performing their tasks, but there is a lack
of knowledge, skills and habits in the area of team work. It is also difficult to talk of a system
of human resources management, rather, there is a reaction to needs as they occur. What is
also frequently emphasised is the vague mechanisms of recruitment, evaluation and
remuneration of employees. Basically there is a lack of policy with regard to human resources
development (e.g. there is no training needs analysis, no annual training plan, no evaluation of
training courses), there is also no thinking in the categories of building external human
resources (e.g. building up a local market of advisory and training services etc.). The majority
of self-government administration entities do not establish their own standards of ethical
behaviour of clerks and councillors, which would complement the statutory principles and
make them more precise. In sporadic cases, such locally defined standards are promoted
actively among the staff and citizens. Systems of periodical employee evaluation are not
formally and systemically (but incidentally at best) related to the evaluation of abiding by the
ethical standards established by the entity.
Among the gminas advanced in the area of applying the system of employee evaluation we
can count e.g. the towns of Dzierżoniów and Proszowice. An example of the gmina, which
implements the system of staff training, is the town of Kwidzyń.


INTERNATIONAL PERSPECTIVE
The issue of personnel management is one of the central elements for the benefit of improving
the functioning of public administration. In Western countries such activities, to some degree
similarly to Poland, are undertaken in three ways. First of all, they are activities initiated and
co-ordinated by specialist government agencies. These activities cover both government

                                                20
administration offices and self-government administration. Secondly, a series of activities
oriented to increasing the human potential are undertaken by associations of local authorities.
Thirdly, public administration entities themselves spend considerable funds on increasing the
knowledge and skills of their employees.
What is characteristic of the majority of European countries and the USA and Canada is the
high quality of instruments related to the process of recruitment (analysis and descriptions of
positions) and consistency in applying the instruments.
In the majority of Western countries, in public administration entities there are complex
systems of evaluating and promoting employees. Every new office employee is familiarised
with the principles of such a system and the mechanisms of its application. It is worth noting
that more and more frequently, in these countries the systems of evaluation are becoming
participative, i.e. the persons concerned take part in formulating the evaluation of the quality
of the staff’s work (e.g. the 360 degree system).
Public administration in Western countries allocates considerable funds to improving the
professional qualifications of its employees. The process of administrative employees training
is usually based on the strategic document conventionally described as “the office training
policy”. It should be emphasised that the analysis of training needs and the evaluation of
training efficiency are salient elements of training systems. In the case of the majority of
Western countries the staff are obliged to improve their professional qualifications, and the
office is obliged to create conditions which will enable such improvement.

There is no direct answer to the question of where North American institutions stand relative
to the five (5) stages of development. There is no question that larger mega-cities are at the
leading edge (level 5) of Human Resources management best practices. They are all equipped
with skilled staff and sophisticated systems that allow for the achievement of optimum
efficiency in the management of Human resources. The smaller municipalities are no lower
than level 3 in their development and many are at level 4 in the areas of staffing, training and
ethics. This is, in some ways due to the pervasiveness of legislation and codes that regiment
the field of Human Resources Management in North America. Pay equity legislation,
Employment Equity legislation are just two examples of regulations that compel, even the
smallest administrations to implement sophisticated recruitment and staffing systems. The
same can be said for general labour standards, health and safety regulations, etc.

Public Services, Including Municipal Services

Definition of the area of public services including municipal services
Public services form a numerous group of varied activities and projects. This diversity further
complicates the description of the organisations which provide services – they are responsible
for providing and managing services.
Public services cover public goods with reference to which it is impossible to exclude any person from taking
using them. These are the goods from which we expect certain quality no matter how many people use them
(each following consumer does not infringe the rights of the others).
The scope of public services, including municipal services, covers the following categories:
   – administrative services,
   – public social services,
   – public technical services.

Vision of the optimum situation in the area of public services including municipal services
Public services should be provided according to the principle of general availability, both in
the aspect of the actual service and in the financial context. General availability is the effect of


                                                     21
efficient service management by public administration entities which take care of creating the
conditions for the efficient provision of the services based on the approved social policy,
defined standards of provision and a particular market of service providers.
In order to improve the system of public service provision it is necessary to better the service
management performed by public offices. There are three groups of objectives in this respect:
– improving the management of public services – meaning limiting unnecessary tiers of
    management, relieving the administration of superfluous executive tasks, improving the
    decision-making mechanisms connected with providing particular services and improving
    the qualifications of executive personnel,
– raising the level of economic rationality of a given system (which can be regarded as a
    necessary element of efficient management), which consists e.g. of reducing the costs of
    providing services, decreasing the payment for services, self-sufficiency of the economic
    entity providing the service, capacity for obtaining funds for the development of the
    service provision system.
– improving the standards of services – first of all improving the reliability of service
    provision (e.g. water supply, sewage collection etc.) and the quality of services.
In order to achieve the objectives listed above it is necessary to fulfil the following conditions:
– public administration has the knowledge necessary for service management, based on
    monitoring,
– public administration has an integrated policy determining the relations between the costs of
    services and payments for them, standards of services and the purchasing power of
    service-recipients, i.e. it has definite standards of service-provision and applies the
    methods and procedures of the evaluation of the service unit cost.
– administration implements the policy in co-operation with trade self-governments
    (chambers) and entrepreneurs (economic entities or their representatives) with the social
    approval (or participation) with regard to the decisions made, administration is an
    organiser of services and an essential element of its activities is creating a market of
    service-providers.

To achieve the optimum situation in the area of public services, including municipal services,
with regard to the plan of providing public services, a long-term plan of providing public
services should be implemented, harmonised with the budget and the LFP. Citizens should
know the plan and be able to influence it.

To achieve the optimum situation in the area with regard to the standards of proving services,
it is necessary to apply the standards to all services which are monitored, known and
influenced by citizens.

To achieve the optimum situation in the area with regard to the procedure of analysing unit
and total costs of services, it is necessary to apply the procedures of analysing unit costs
related to the evaluation of the quality of service provision, which should be used in a public
debate.

To achieve the optimum situation in the area with regard to the procedures of improving the
efficiency and organisation of services, there are procedures of improving the quality of
service delivery, covering:
 – standards,
 – plan of services,
 – procedures of cost analysis,
which are an element of public debate.


                                                22
There should be a long-term plan of providing services taking account of the aspirations of
citizens who know the plan and have influence on it. The plan should be published and made
publicly available.
The target situation is one where there will be standards defined for all services, and meeting
the standards is monitored. The citizens should know the standards and influence their
establishment.
Unit costs of all services related to the quality should be defined, and the community should
have access to the information. There are procedures of improving the quality of service
provision. They take account of the standards of service provision, the objectives and
estimation of unit costs. The citizens are informed about the undertaken initiatives and can
influence the method of introducing improvements.
The principle of competitiveness of providing public services is observed. The organisation of departments
ensures maximising values – either through contract management in the case of providing services by private
persons or third parties, or through monitoring and evaluation in the case of direct delivery of services. An
important achievement in the area is the idea of public-private projects, which in some cases ensure the highest
efficiency from the viewpoint of the public sector.

Preliminary evaluation of the actual situation in the area on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
The situation in this area is as complex as public services themselves. An evaluation of the
present condition covers a wide range – from bad condition (e.g. health care) to good
condition (e.g. water supply). This ambiguity is further complicated by the diversity in
individual areas of the country (regions, powiats and gminas) and their division into urban and
rural areas.
Administrative services:
– issuing personal Identification Cards, driving licenses etc,
– registering births, marriages, cars etc,
– issuing permits and decisions concerning environmental protection, spatial economy and
    construction,
– issuing permits and concessions concerning activities controlled by the state.
The availability of these services is good. The standards of providing them may be shaped at
the level of consumer service to a large degree. The market of service-providers does not exist
and from the legal point of view cannot exist (these services are generally provided by public
administration), but there is, to a limited degree, a market of printing services (diverse due to
the character of documents).
Public social services:
– health care
There are difficulties in ensuring the availability of services (limited number of patients
and/or procedures). In rural gminas paid medical services do not function due to the financial
barrier. At the same time the cost of drugs and unemployment results in the citizens avoiding
rational „prevention”. The instruments of management of service provision in the field of
health care (standards, social policy, establishing a market of service-providers) are outside
the scope of local administration with the exception of situations when it participates in the
financing of the services.
– education
The availability of educational services is satisfactory. The possibilities of local and regional
administration with regard to establishing the standards of provision of these services,
developing social policy or establishing a market of service-providers are very limited (first of

                                                      23
all they may concern financial participation in ensuring the infrastructure necessary for the
provision).
– culture
Self-government administration has considerable freedom in setting the standards of
providing this service, it also has the possibility to act strategically in this area (if it has the
appropriate resources or can ensure external financing). With the exception of cinemas or
theatres it is difficult to talk of establishing a service market in this area.
– physical culture, recreation
Self-government administration has considerable freedom in setting the standards of
providing this service, it also has the possibility to act strategically in this area (if it has the
appropriate resources or can ensure external financing). Due to the character of these services
the provision is often entrusted to economic entities.
– social welfare
The standards of providing this service are defined by the law and reflect the social policy of
the state. Self-government administration has substantial autonomy in defining training
programmes for the unemployed and in co-operating with non-governmental and religious
organisations (this is a specific counterpart of establishing a service market).
– housing
The availability of housing is not satisfactory, particularly due to the financial barrier. Self-
government administration cannot freely set the standards of providing these services
(construction regulations) or shape the social policy in this regard (lack of appropriate
resources). Due to the nature of this service it can be provided by economic entities, which is
a common practice.




                                                 24
– public safety
The situation in this field is poor. The fundamental reason is a lack of appropriate resources in
response to the growing needs as well as a wrong distribution of money by public
administration. Taking account of the defined mission, the standards of this service are set by
legal regulations, and they reflect the state social policy. It is difficult to talk of a service
market in this area.

Technical services:
– transportation – services and infrastructure
The standards are set by legal regulations. Due to the public ownership of the infrastructure it
is hard to talk of a market offering infrastructure as a product, but there is a well-developed
market of construction services. With regard to shipping there is substantial freedom in
developing the social policy, standards of services and establishing the market of service-
providers. The basic barrier in this area is a lack of financial resources.
– water economy – water supply and sewage systems
The capacity of the local administration for setting the standards of these services and
developing the social policy in this area are quite considerable (limited only by the sanitary
and environmental protection regulations). The issue of establishing a market of service-
providers is slightly different. It is worth noting that the natural monopoly, which occurs in
urban areas, is not so acute in rural areas due to the scattering of customers.
– waste economy and maintaining cleanliness and order
It is possible for local and regional authorities to set the standards of providing this service,
the social policy, as well as the market of service-providers.
– cemetery services
Generally speaking the situation is good, with some problems occurring in large cities
(shortage of space for building cemeteries). The possibilities of local administration in setting
the standards and the social policy are substantial. There is practically no market of providers
offering burial space. This situation is changing with the social acceptance of cremation, but
this phenomenon does not occur in rural areas. There are, however, local service markets in
the field of cemetery services (e.g. tombstone production).
– power supply (electricity, heat and power, gas)
Local administration not only can but must set standards of providing these services and
developing the social policy with this regard. However, it does not have substantial
possibilities of establishing the service market – which is a monopoly, although individual
energy suppliers (energy carriers) may compete among themselves.
– public green areas
Local administration has complete freedom in setting the standards and defining the principles
of supplying this service. It does not, however, have the possibility to establish a market of
service-providers offering public green areas as a product.
Public services constitute a very numerous group of activities and projects, ranging from
making administrative decisions to making investments. An effective and efficient supply of
public services is a subject of analysis in all countries. The diversity of applied solutions is
great and it follows from three basic matters:
– state social policy – specific level of state protection,
– state affluence,
– citizens’ affluence.

INTERNATIONAL PERSPECTIVE
Many entities have their own websites informing the community about the provided services,
many entities also publish additional materials related to a particular area or listing all public

                                                25
services in the form of catalogue. The majority of services can also be found on the Yellow
Pages. Many entities created systems of measuring client’s satisfaction, although they do not
always covered of the services provided.
The majority of Western administration entities gives information on unit costs of providing
services in their budget documents. The majority of this information is available to citizens,
but it is not easy to access and it is not clear. Citizens are involved in the discussion on what
unit costs are acceptable only in sporadic cases.
Many territorial administration entities undertook activities aimed at improving the quality of
services, generally, however, they only cover some services. Procedures of quality
improvement were only implemented in the areas, which are politically the most important,
e.g. related to improving public safety in the face of increasing crime or number of victims of
road accidents. In many cases, procedures differ depending on the area of services.
The majority of territorial administration entities introduced the element of competitiveness to
some services they deliver, at lest in the area of construction and technical services. There are
also entities, which applied the principle of competitiveness to almost all the services they
provide.
One of the leaders in the area of improving the quality of provided services is Great Britain.
Successive governments, starting in the late 1980s, have consistently undertaken actions in
this area. The fundamental ones are described below:
Next Steps Programme
The programme was started in 1988 with a view to modernising management in the sector of
public services and improving the method of service delivery. The programme assumed that
the Civil Service is too complex and its range of activity too broad to be able to manage it as
one entity. In the majority of cases the right solution turned out to be the creation of Executive
Agencies operating within the government and responsible for the implementation of specific
tasks.
Next Steps Programme contributed to introducing changes in the method of performing
executive functions of the government, which resulted e.g. in considerable improvement of
public services.
Next Steps Agencies
Executive Agencies are the basic instrument of the government to improve the quality of
provided public services. At the head of each agency there is a director, who is directly
responsible to the appropriate minister. Directors are assigned qualitative, financial and
quantitative objectives related to the delivery of services and he/she has freedom with regard
to financial decisions and management so that they can perform their duties better. The
general principles of activity are described in a Framework Document – “organisational
contract” – prepared for each agency.
At present, there are 138 agencies and four ministries operating under the Next Steps
Programme, employing 383,000 clerks, which constitutes 76% of the total number of Civil
Service employees.
In 1998, on the tenth anniversary of initiating the Next Steps Programme, the government
announced that it would proceed from the stage of formulating new policy and principles to
the next stage, aimed at further improvement of the quality, efficiency and increasing the
convenience of services provided by agencies. This means that:
– ministries will put more emphasis on establishing the objectives and reporting the results of
     activities, co-operation between agencies and other organisations providing public
     services (including local authorities) will be stressed, with a view to increasing the
     adequacy of using funds and improving the quality of services,
– introducing benchmarking – comparing the performance of similar organisations.
Public Sector Benchmarking Project


                                               26
The project was initiated to encourage organisations to improve their performance through
self-evaluation based on the Business Excellence Model in of the European Foundation for
Quality Management. The model constitutes a framework, which enables the evaluation, and
then constant improvement, of the agency’s performance in a wide cross-section of its
activities. It is based on the assumption that client satisfaction, employee satisfaction and
tangible effects for the community are achieved through leadership which implements the
policy and strategy appropriately, management of personnel, resources and processes, which
consequently lead to excellence in the area of activity.
Delegating executive duties and responsibilities
In accordance with the Next Steps initiative, responsibility for personnel management was
transferred from ministries and central departments to line departments, and through them to
Executive Agencies. Within the framework of all these organisations more and more
responsibility is transferred to line directors. Laying clearly defined responsibility for
performance on organisations and line directors gives them positive motivation to accept
responsibility for personnel management and development.
The Citizen’s Charter and Service First
In 1991, The Citizen’s Charter White Paper was published, which put the recipients of public
services first. In this way, a ten-year programme was started:
– to improve the standards of providing public services, covering privatised public utility
     agencies,
– to increase the responsibility of service providers towards service recipients.
The first The Citizen’s Charter programme contributed to the improvement of public services
in the 1990s, and, following broad consultations, it was re-started in June 1998 to help to use
its full potential. The new programme, Service First, focuses on the following key issues:
– placing service users and recipients first,
– consulting service users and recipients and involving them not only in the issues related to
     the method of serve provision, but also their “content”,
– involving employees directly dealing with service provision in seeking ways of improving
     the standard of provided services,
– improving the quality and coherence of charts and ensuring that standards should
     concentrate on the quality of services themselves, not only on the process of provision,
– finding new ways of disseminating the best practice and improving the quality of services
     which are weaker so that they could be levelled with the best,
– putting more emphasis on introducing innovations, regarding them as a method of service
     improvement,
– encouraging public services to co-operate in order to provide perfect services, which are
     wanted and needed by the community.
Charter Mark
This is a system of material rewards aimed at rewarding for and encouraging to perfection in
the area of public services. It mainly focuses on the provision itself, not on management
processes which the organisation uses to provide service. Applications for receiving the
Charter Mark award are considered and evaluated according to the ten principles of the
Service First programme.
In 1998, a record number (1,202, i.e. 27% more than in 1997) of submissions for Charter
Mark came in. 509 organisations met the required criteria and received the Charter Mark
award. This was 39% more than in 1997. 178 of the winners were local authorities, which is
71% more than in 1997. Charter Mark helped organisations in the whole country:
– to improve the performance – experiences show that the process of preparing the application
     is a great framework for carrying out self-evaluation,



                                              27
– to improve the morale of the personnel – seven out of ten winners of Charter Mark claim
    that it improved the morale and increased the motivation of employees in the process of
    evaluation,
– to improve the standard of provided service.
Modernisation of Government
On March 30, 1999, the White Paper was published, thus initiating a serious programme of
modernisation of government services in Great Britain: “Not the government for those who
work in it, but for the people – people who are consumers and people who are citizens.”
One of the objectives of the programme is to initiate closer co-operation among the central
government, local authorities and other agencies through creating new alliances transgressing
traditional boundaries set by services provided by particular organisations.
Within the framework of the new government project called “Investment aimed at achieving budget savings”,
there are 33 projects of co-operation of two or more entities responsible for the provision of public services.
Within the next three years Ł120 million will be allocated to the implementation of these projects. The objective is
to increase co-operation among various government agencies and tiers, developing innovative methods of
implementing public services, and reducing the costs and improving the quality of these services.
The key issue is the awareness that people are not interested in whether a given service is in
the competence of one department or another, or the central government or local self-
government. They are interested in whether the services satisfy their needs adequately and are
easily available.
For example, the White Paper includes specific commitments to:
– ensure the availability of services 24 hours a day, seven days a week, if there is such
    demand,
– enable citizens to inform various government departments about issues like a change of
    address by means of one electronic transaction,
– start a new initiative aimed at eliminating unnecessary regulations,
– undertake activities oriented towards achieving a new objective related to contacts with
    government authorities – so that by 2008 all issues can be dealt with electronically, and
    set up new „studying labs” to encourage the use of new methods of client service by
    suspending the principles which cause suppressing innovations.4

The practice of local self-government in Holland is another interesting example of activities
aimed at improving the standards of public services. The issue at point here is using tools
related to monitoring the quality of public services. Dutch local authorities apply the
following methods of improving the quality of public services:
– self-evaluation of the method of the organisation activity,
– periodical survey of the opinion of citizens or specific target groups on the subject of
    service quality,
– including citizens in developing new solutions with regard to service provision,
– registering complaints and claims,
– harmonising and co-ordinating the activities of local authorities with the activity of other
    organisations,
– orienting the office work to the client,
– local authorities formulate the policy together with the organisations concerned,
– policy oriented to servicing the client in one outlet – the client may use many services at one
    central „counter”,
– training for first-line employees.5

4
  Review based on C. Parry, British system of public administration quality management: background of implementation,
guidelines, relationships with local government, Umbrella.
5
  M, ESSERS, Methods and instruments of quality management: applications in Dutch gminas, Umbrella.


                                                           28
Public Participation and Stimulating Social Development

Definition of the area of public participation and stimulating social development
When we talk about public participation and stimulating social development, we mean
including NGOs, citizens’ initiatives, less formalised groups of citizens, and local business
organisations, in solving local problems and in the process of taking key decisions related to
the local community.
The subject matter of the analysed area covers the following issues:
– public participation in the process of selecting investments and basic budgetary decisions
and involving social organisations and leaders in the process of decision-making,
– efficient bilateral communication: office – citizen and citizen – office,
– institutionalised trilateral co-operation: self-government authorities – NGOs – local
business,
– participation of citizens’ groups and their organisations in activities oriented to solving
problems defined by citizens (investments, safety, education, culture, etc.).

Vision of the optimum situation in the area of public participation and stimulating economic
development
The activities in the area of public participation and social development should concentrate on
three basic aspects:
    – improving bilateral communication between citizens and self-government authorities,
    – public participation in the decision-making process with regard to the budget, gmina
        investment plans, and important decisions related to citizens’ everyday life,
    – development and institutionalisation of co-operation with NGOs and economic
        organisations.
With respect to management on the gmina (as well as powiat and voivodship) level area of
this requires drafting a plan of action in the area of communication and public participation
and its consistent implementation. In particular, it is necessary to:
– separate a function (position, organisational unit) responsible for the co-ordination of
  activities aimed at bilateral communication with citizens and co-operation with social
  partners,
– verify procedures of approving the investment plan and budget and introducing obligatory
  elements of social consultation,
– improve information on the office work and the method of dealing with issues through own
  activities and co-operation with the media,
– facilitate citizens’ participation in gmina (powiat) sessions and increasing the importance of
  Councillor’s duty hours,
– increase the accessibility of representatives of local authorities to citizens (e.g. increased
  number of meetings with citizens),
– introduce forms of negotiation and mediation in solving local problems,
– institutionalise co-operation of authorities with NGOs and citizens’ initiatives (civil forum
  and public participation in the process of allocating funds for organisations) and economic
  organisations, including organisations associating agricultural producers (local economic
  forum), and stimulate co-operation between the business and non-governmental sector,
– take systematic public opinion polls and other forms of collecting information on problems,
  citizens’ preferences, and evaluations of the performance of the office and entities delivering
  public services,
– organise public debates devoted to solving specific issues, especially the controversial ones,



                                                  29
– analyse and manage the reaction to citizens’ complaints and take care of information on the
  reaction of authorities to proposals, complaints and opinions collected in polls.
There is strong co-dependence between the presented elements. Good co-operation with
social partners and good social communication will facilitate and improve the process of
budget consultations, and the awareness of the real influence on the key gmina (powiat) issues
will stimulate the involvement of citizens, social organisations and local economic milieus in
joint activities.
On the basis of the hitherto experience we may formulate four key aspects determining the
success or failure of the public participation and social development programme:
   – personal conviction of the importance of this area of activity and involvement in the
       related projects of the key leaders of the gmina/powiat authorities, in particular the
       Mayor/Starosta,
   – organisational separation of the function co-ordinating activities with regard to public
       participation and social communication in the office and allocation of adequate funds to
       this function,
   – institutionalisation of the co-operation with social partners, developing a plan of co-
       operation and its consistent implementation,
   – transparency of the principles of allocating funds to supporting social organisations and
       accountability for using the funds.
The hitherto practice shows that there are considerable limitations particularly in the
approaches of the gmina authorities and the cultural organisation of the office, and changes in
this respect will have to be closely co-ordinated with activities in other areas. On the part of
social organisations we often encounter apathy and distrust about the possibility of co-
operation, difficulties in programming work and in drafting projects and motions for
subsidies. The development of the potential of social organisations often requires support
from local authorities.
A condition of the durability of the participatory model of governance is not only the
involvement of representatives of the local community in expressing opinions on the
directions of activities undertaken by the authorities, but also the preparations of procedures
guaranteeing the use of postulates put forward by citizens. That is why an important objective
of the programme of public participation and social development is institutionalising the
partnership and co-operation of self-government authorities with NGOs, local business and
agricultural producers. Participation begins with the improvement of bilateral flow of
information, but it should develop towards the partnership of authorities, organisations and
economic structures in solving local problems.

An active identification of local needs and preferences should be carried out, to be taken into
account when drafting the budget. There is a procedure of supporting local projects and
initiatives and taking them into account in the budget.
There are agreements related to supporting NGOs in providing services for the local
community. Co-operation with NGOs for the benefit of solving local problems takes place at
various levels of local self-government. Local authorities also co-operate with NGOs and the
private sector and support them in their efforts for national and international sources of
financing projects and programmes benefiting local communities.
The results of public participation are systematically analysed and taken into account in the
process of decision-making. There are advisory boards/bodies, which are consulted by local
authorities about the issues significant for the local community. No major decision is made
without public participation, many public debates and discussions are organised.
Questionnaire research is also used, as needed, to obtain the opinion and comments not only
from the people who turn to the authorities but from the whole local community.


                                               30
All decisions are published in various forms: on notice boards, during meetings, in leaflets,
through libraries, websites etc. Disseminating information is planned in a way, which takes
account of the nature of recipients, and thus ensures efficient communication. Disseminating
information is an administration activity which is planned and systematic.
To achieve the optimum situation in the area of public participation and social development
with regard to public participation in the budget, it is necessary in the process of drafting the
budget to collect and take account of information on social needs and preferences (actively
and on the basis of the approved procedure) as well as to use the procedure of supporting
social investment projects and local initiatives and including them in the budget. It is also
important to delegate the right to decide on the method of allocating funds to current
investments in their own village to village councils.

The optimum situation in the area with regard to supporting social initiatives and co-operation
with social, economic and agricultural organisations requires:
– involving NGOs in the implementation of public tasks (e.g. contracting out public tasks,
guaranteeing long-term financing of projects),
– co-operation of various levels of self-government with NGOs in order to solve local
problems,
– co-operation of the authorities with organisations and the economic sector in the effort to
obtain international and central funds (possible activity of a trilateral committee).

To achieve the optimum situation in the area with regard to social consultations and public
participation in decisions on all major social issues, it is necessary:
– to analyse conclusions from social consultations systematically and to take them into
     account in the decision-making process,
– for advisory bodies to operate (e.g. civil forum, assembly of village councils, a board of
     selected chairs of village councils) whose opinion on issues significant for the community
     is consulted,
– to take all major decisions after social consultations,
– to undertake activities aimed at explaining contentious issues and conflicts (e.g. public
     debate),
– if needed – a poll of public opinion should be taken.

To achieve the optimum situation in the area with regard to informing citizens, it is necessary:
– to publish all decisions in many forms: on notice boards, in the press, at meetings, in
    leaflets, websites,
– to plan disseminating information taking into account the diversity of recipient groups, so
that it could reach the widest circles possible,
– that disseminating information should be a subject of planned, systematic office activity.


Preliminary evaluation of the actual situation in the area on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
In Poland there are some positive experiences in the area of co-operation between local
authorities and NGOs, which became a model for analogous activities in neighbouring
countries (e.g. Lithuania). Such experiences were recorded e.g. in the Gdańsk-Gdynia-Sopot
Conglomeration, from which many models used in other gminas originate. A series of
attempts at implementing plans of action with regard to social communication and public


                                                31
participation under the LGPP (USAID). The experiences point to the key importance of the
factors identified in the paragraph above.
The majority of model solutions is connected with large and medium-sized cities and cannot
be simply translated into the conditions of rural gminas, although may be useful at the powiat
level. There are some examples of good practices of social communication and public
participation in smaller gminas, but they are not numerous.
Problems related to the rural character of territorial entities present a specific problem,
especially:
– weaker diversification of NGOs,
– specificity of NGOs, which (apart from their basic statutory functions) also implement
    additional tasks for the benefit of the local community, which should be identified and
    taken into account (e.g. Voluntary Fire Brigades, Country Sport Teams, Farmer Wives’
    Circles),
– temporary citizens’ initiatives play a bigger role in rural areas because of infrastructure
    needs, and they should also find their place in the system of public participation,
– the traditional institution of village meetings may and should be used, they are a well-
    known and very natural form of organisation of villagers and their participation in
    decision-making processes,
– personal contacts and bonds among neighbours play a much more significant role, which should be
    taken into account in drafting plans of action.

The best effects in the area of public participation and stimulating social development were
recorded in:
– Nowa Dęba – in the area of bilateral communication and public participation,
– Self-government of the Małopolskie Voivodship – in the area of public participation in the
development strategy,
– the gmina of Żegocina – in the area of stimulating civil and economic activity,
– the gmina of Zabierzów – public participation in the budget,
– the gmina of Sośno – information policy,
– the gmina of Zaleszany – delegating public tasks to NGOs.

INTERNATIONAL PERSPECTIVE
The level of development of the majority of territorial self-government entities with regard to
the budget process is quite varied. There is a regularity here, however: small and medium self-
government entities usually reach the basic level of development, and larger self-government
entities are placed at a much higher level of development.
Among small and medium local self-government entities, there is a lot of diversity in the
advancement in the area of support for social initiatives and the co-operation with social,
economic, and agricultural organisations. To some degree, a similar situation occurs in the
area of institutionalising trilateral co-operation and communicating with citizens (the situation
is usually better in larger self-government entities). In some self-governments in the case of
certain types of decision-making processes (e.g. approving spatial development plans), public
participation is required by law.

In this management area, it is fairly common to see quite a broad range of sophistication
based upon the developed indicators, both in urban and rural situations. There are many local
governments in most developed countries that reach the highest level in these indicators.
Interestingly enough, this management area is distinguished somewhat from other
management areas in that the absence of specific formal actions described by the indicators,
does not necessarily indicate only a basic level of development. Frequently, public

                                               32
participation and social development, particularly in rural areas is carried out on a very
informal basis, sometimes without fully realizing the process underway, often occurring
simply because of the personalities involved, or the historical manner in which municipal
affairs have been carried out.


Stimulating Economic Development

Definition of the area of stimulating economic development
Economic development management and co-operation among territorial self-government
entities is an interdisciplinary and complex field. The projects included in its scope are in the
form of both direct and indirect activities. It should be emphasised that the efficiency of direct
activities supporting economic development is very strongly correlated with the general level
of management efficiency in the other fields of statutory activity of territorial self-
government. Moreover, the quality of management in the other fields frequently exerts a
stronger influence on economic development than direct activities (e.g. high standard of
municipal services may have better stimulating effects on economic development than the
activities in the field of gmina promotion).
The subject of analysis in the field of economic development and co-operation among
territorial self-government entities will be, first of all, direct activities oriented towards
development, i.e. development activities.
With regard to stimulating economic development these will be:
 – economic development strategy (worked out as a separate strategy or part of integrated
     development strategy of a group of gminas or a powiat),
 – formalised organisational structure serving the purpose of implementing tasks oriented to
     economic development,
 – development of information resources for the purpose of economic development,
 – undertaking various forms of initiatives supporting economic development, e.g. attracting
     external investors, marketing activity, supporting the existing companies, activities
     towards the development of local entrepreneurship.
The strategy of economic development defines the priorities of a given local community in
the area of economic development. The aim of the strategy is to achieve and maintain a
competitive advantage of a given local community and the economic entities operating within
it. The process of developing the strategy of economic development also enables:
– comprehensive understanding of the economic context,
– saving time and money due to limiting the number of inefficient activities. Spending funds
     on activities supporting economic development more effectively, orientation to specific
     objectives,
– strengthening local authorities and creating mechanisms of making decisions in advance (in
     contrast to the decisions made in response to specific economic events),
– promoting consensus and common involvement supporting the strategy and activities
     required for its implementation,
– guaranteeing the interested entities the possibility of education, communications and
     synergy activity,
– promoting profitable investment.
The participation of self-government structures in the economic development should be
formalised to ensure a continuity of activities and establishing the appropriate priorities of
economic initiatives. A person or organisation responsible for the implementation of
initiatives should be appointed. The existence of such an organisation enables to ensure the
sufficient time, personnel and financial resources to implement the task. The organisation


                                               33
supports creating an economic vision, improves the efficiency of effective leadership, and
facilitates the co-ordination of financing and implementation of tasks.
An updated and exhaustive database is a basis of economic development. Without such a base
it is hard to imagine the promotion of economic development – the local community would
not be treated very seriously when making investment decisions in competitive conditions.
Updated and exhausted data also enables:
 – good understanding of external political and economic environment of a given local
      community,
 – in-depth evaluation of strengths, weaknesses, opportunities and threats (SWOT analysis),
 – analysis of the local economic base,
 – defining changes in the situation of the local economy with regard both to the past
      condition and the changing external economic environment,
 – monitoring and evaluating the efficiency of strategy and initiatives in the area of economic
      development.
The existence of various types of initiatives supporting economic development, such as:
– marketing activities and activities attracting economic entities,
– support facilitating the maintenance and development of existing entities,
– support for creating new companies and for the activity of new entrepreneurs,
– support for the development of economic clusters in specific sectors.


Vision of the optimum situation in the area of stimulating economic development
The optimum situation in the area of stimulating economic development can be described as a
state where:
– there is a high standard of knowledge on the subject of all factors determining the success of
    local development activities among all the institutions and persons involved in these
    activities,
– there is an ability to organise and lead the work of task teams (within self-government
    entities, among them, and between them and external institutions and organisations),
– there is a balanced range of hierarchic (administration) and horizontal (management)
    relations in the office structures. Relative internal autonomy is ensured of organisational
    units operating towards economic development and co-operation among territorial self-
    government entities.
– the organisation’s ability to self-teach is ensured. This is conditioned, among others, by the
    autonomy of internal structures, quality of horizontal communication in the office,
    possibility of creating innovative structures which are determined by the human potential,
    guaranteeing dissemination, establishing and developing knowledge and practical skills
    (appropriate age structure, possibility of mutual substitution at work, possibility of team
    work),
– the clerical personnel connected with economic development has the skill of evaluating their
    own investment projects and the ones implemented in agreement with other territorial
    self-government entities. Territorial self-government entities have developed a skill of co-
    operation based on the principles of benefits and cost calculation in inter-gmina
    arrangements (e.g. by means of signing civil legal contracts). There is a clear mechanism
    (contracts of transfer of budget funds) of the share of parties in the future benefits
    resulting from the implemented projects,
– there are mechanisms of vertical and horizontal co-operation conditioning efficient
    territorial marketing. The organisational arrangement and teams of employees are
    prepared for the promotion of the gmina (powiat) in co-operation with the Marshal’s
    Office in connection with the strategy of voivodship development,


                                              34
– institution’s skill of integrated planning of development (spatial, economic, social and
    environmental planning) is ensured. There is co-operation between the entities directly
    responsible for these areas, supported by well-designed circulation of documents and
    decision-making process. Territorial self-government entities are capable of active and
    efficient searching for investors and external partners with a view to achieving the
    objectives of the strategy implemented in co-operation with the powiat and voivodship,
– the institutional and organisational structure of territorial self-government ensures the
    possibility of comprehensive servicing of entrepreneurs and farmers. Information is
    collected, processed and transferred in an organised way and meets the needs of public
    administration and the expectations of local and external investors,
– economic entities of the SME sector and farmers receive professional help in filling out
    application documents for aid funds. Territorial self-government entities monitor and
    evaluate the efficiency of the granted aid,
– there is co-operation with the powiat or voivodship office with regard to professional
    servicing of foreign investors in the English language (or other foreign language) by
    mobile specialists in promotion and economic development,
– there is an organised system of training adjusted to employers’ needs and improved within
    the framework of co-operation among territorial self-government entities,
– the gmina encourages the unemployed to undertake economic activity, taking advantage of the
    participatory techniques of communicating with the local community,
– there is guaranteed aid in terms of information on the EU programmes. The existing system
    of information transfer has the mechanisms of responding to the received information. The
    mechanism of responding and transferring information to the powiat and gmina tier is in
    operation,
– in the region (or powiat) there are specialists who provide help in terms of participatory techniques of
    developing programmes. Local personnel is used to the maximum, external experts are consulted.
    There is a possibility of easy appointment of tasks teams for the preparation of common projects.

The optimum final result will be achieved when:
– the strategy of economic development has been prepared and approved,
– activities implementing the strategy are carried out,
– constant monitoring, evaluation and updating of strategy is carried out,
– the strategy is related to the organisation budget,
– the strategy implementation is connected with twinning agreements and other forms of
     contact among entities.
The desirable final result assumes the existence of an economic development organisation,
which is conspicuous for economic entities and potential investors, and regarded as the proper
place for obtaining aid in the area of economic development. The organisation plays a leading
role in the local community through numerous twinning agreements and contacts with all the
subjects concerned.
The desirable final result will be achieved by a local community, which has a complex database on the
social and economic conditions and information on other factors which are vital to economic
development. This information should be updated on a current basis and recorded in various formats
(printed materials, CDs, websites). Preferably, the database should also enable the final user to search
and, at least partially, sort the data without the help of representatives of economic development
organisation. Marketing information should be available in many languages.
The desirable result assumes the existence of an economic development organisation with
financial and personnel resources, allocated to supporting initiatives for the benefit of
economic development. The organisation should have a plan of action defining the
implementation method of various initiatives, whose objective and direction is laid out by the


                                                   35
strategic plan. Initiatives are undertaken within the framework of various twinning
agreements and other forms of contacts and co-operation, including the participation of public
and private organisations and the third sector. There are mechanisms of supporting NGOs
initiatives in the area of economic development. Gminas participate in pro-development
activities and support them at the inter-gmina or powiat level. Powiats encourage gminas to
participate actively in economic development.

The optimum situation in the area of stimulating economic development with regard to
institutionalising activities supporting economic development requires the functioning of an
organisational unit for economic development (position, department, NGO), which acts on
behalf of several territorial self-government entities, initiating supralocal economic projects.
To achieve the optimum situation in the area with regard to economic development strategy
(drawn up as a document or constituting a part of a “broad” strategy of one or more entities) it
is necessary:
– to implement the strategy of economic development actively,
– to carry out constant monitoring, evaluation and verification of strategy,
– for economic entities, business sector institutions, and NGOs to co-operate in a constant, organised
    way in implementing the strategy provisions.

To achieve the optimum situation in the area with regard to the development of information
resources, it is necessary:
– to gather, update and make available in various forms (written, CDs, website) full current
    statistical data on economy, and information on the local or regional economy following
    from the monitoring needs,
– to base the decision-making process with regard to pro-development activities on data
    analysis,
– to appoint in the office a person/unit responsible for information resources of the entity.

To achieve the highest stage of institutional development with regard to taking initiatives
supporting economic development (attracting external business, supporting the development
of existing companies, supporting enterprise and creating new companies), it is necessary:
– to institutionalise co-operation with social and economic partners with regard to
    implementing economic projects (budget, personnel, formal framework, plan of action),
– in the course of implementation: to attract external business, support the development of
    existing companies, support enterprise and the creation of new companies.


Preliminary evaluation of the actual situation in the area on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
The activities of territorial self-government entities are determined by statutory requirements.
Each activity not forbidden by the law or not specified by the competence laws is treated as
additional burden for civil servants and self-government activists. The implemented economic
policy is therefore a result of random decisions, response to the possibility of receiving
external aid or is a hobby of the Mayor or Wójt of a gmina. The acquired knowledge with
reference to stimulating economic development is very often lost with the change of the
government.
In territorial self-government entities there is a predominance of hierarchical structures of
management typical for the conservative form of administering. The collected information, its


                                                 36
circulation and the circulation of documents are organised in a traditional way, i.e. in
hierarchic arrangements. This limits the possibility of performing the functions by tasks,
which is typical for strategic management. There is a common lack of theoretical knowledge
and most of all practical knowledge on the subject of stimulating economic development and
developing co-operation among territorial self-government entities. A number of weaknesses
results from the dominant administration culture and treating the office clients like objects.
Numerous research on the conduct of territorial self-governments and economic entities in
Poland show that they manifest a tendency to excessive competitiveness, which is a result of
misunderstanding the need for co-operation in the face of external competitive pressure. This
situation follows, among others, from the long-term isolation of Polish economy from the
influence of external competition, low mobility of people and the whole baggage of post-
communist heritage „determining a specific system of values”.
Therefore it is essential to create financial mechanisms which will enforce inter-gmina and
interregional co-operation in terms of e.g. joint implementation of investment projects and
various types of programmes of stimulating development, e.g. joint promotion of Eastern
Poland. It is necessary to convince territorial self-governments that strengthening the gmina or
region competitiveness means creating competitive advantages from the utilised local and
regional resources, creating vertical and horizontal co-operative relations among economic
entities including farmers, etc. A key issue is the ability of local authorities to stimulate such
relations. A condition of this ability is social trust in local authorities, which in turn depends
on the professionalism of the clerical staff, civic-mindedness of council members and
appropriate ethical virtues of self-government politicians.
Among the most efficient activities in this area are: “The Industrial Zone of Green
Dobczyce”, the institutionalisation of implementing the Economic Development Strategy,
questionnaire research of the climate for enterprise in Ostrów Wielkopolski, and the
programme of developing the production of high-quality horseradish in the Sieradz Region.

INTERNATIONAL PERSPECTIVE
The advancement of individual territorial entities in the area of economic development is very
diverse. Some of them are very underdeveloped, some are at a very high level
The situation is better in the area of the formalisation of economic development, where the
majority of self-government agencies achieve a good or very good state. The situation with
regard to the database on economic development is similar.
The situation in the area of taking economic development initiatives is good. Territorial self-
government entities show a lot of activeness, and are usually successful.

In the area of taking initiatives stimulating economic development the situation in the
countries with well-established self-government is a result of gradual change occurring since
1945. Local self-government in these countries overtook the management of water-line, gas-
pipe, electricity, and sewage systems, and public transport shortly after WWII. During this
period many unprecedented projects were carried out, e.g. the communal bank (Birmingham),
airports, conference venues, catering plants, zoological gardens, telephonic switchboards
(Hull), theatres or specialist museums. The activity usually was not inspired by the objectives
of economic policy, but projects useful from the community’s point of view, which (because
of the long period of return of invested capital) could not be implemented by the private
sector. When the state limited the authority of self-governments in granting direct aid to
businesses (forbidding them e.g. to establish companies directly related to self-government to
prevent hidden subsidies and unfair competition with the private sector), local authorities tried
to help local businesses to obtain development capital. An example of such activities was
creating enterprise offices in England in the 1980s, whose aim was to ensure investment funds

                                               37
and helping companies. They were independent organisations, and their connection with the
authorities consisted in the fact that the authorities elected members of the offices. One
example of such organisations is the Greater London Enterprise, which helps businesses in the
toughest situation.

Long-term development planning is equally popular as activities for the benefit of businesses
connected with the creation of business sector institutions. Strategies of economic
development are developed at various levels, for different tiers of administrative division.
There are situations when one strategy is included in another strategy, i.e. strategies for
smaller areas may constitute a part of larger ones. The gmina strategy of economic
development may be a part of the regional or national strategy, and the strategy of a
settlement or district may be a part of the city strategy. Strategies are seldom independent of
the environment of a given area. They may be also prepared for very small areas (e.g.
neighbours community) which are a fragment of the scope of local authorities activity.
Aspects related to the co-operation of various self-government tiers and within the framework
of public-private partnership, as well as effective financial aid, are important elements
influencing the achievement of positive results of strategy implementation. Co-operation is
often based on so-called twinning agreements. State budget subsidies for the implementation
of development strategy go through territorial agencies or the budgets of agencies supporting
the development of a given area. For example, in the Strathclyde Region, the self-government
has two tiers: the Regional Council, and many District Councils (e.g. the Glasgow Council).
The councils co-operate with the national development agency, Scottish Enterprise, and with
Local Enterprise Companies Boards created in 1990 to develop economy and carry out
training.
Subsidies and loans from the European Regional Development Fund and the European Social
Fund are significant for financing activities.

The field of economic development is a relatively new functional responsibility of local
government as compared to financial management for example. The level of sophistication
relative to the developed indicators, can be quite high however, even in rural areas. Having
sufficient resources dedicated to economic development is always a struggle. However in
Canada, the most advanced rural areas (in terms of these indicators) generally overcome this
resource deficiency by entering cooperative arrangements (either voluntarily or as a legal
requirement) for economic development purposes with neighbouring local governments to
achieve level 4 or 5.


Project Management and the EU Aid Programmes

Definition of the area of project management and the EU aid programmes
The term project management and the EU aid programmes refers to various related but
separate spheres of preparation aimed at better management of both the entity’s own financial
resources and European funds. The key issue in the analysed area is using the system of
budget Management by Projects (MbP), this concerns all spheres of expenditure, not only aid
resources.
This subject matter also covers elements of programming (e.g. preparing regional operational
programmes, identifying Polish sources of co-financing projects), implementing (e.g. organisation of flow
of financial resources from the EU), monitoring and evaluation. They require a different treatment than
the subject of preparing projects (and applications for external co-financing) and managing them
(organisational structure of implementation, system of monitoring at the project level etc.).


                                                   38
Vision of the optimum situation in the area of management by projects
The vision of optimum situation is based on defining the functions which must be fulfilled by
each type of administration at its level in terms of implementing the methodology of budget
expenditure management by projects (MbP) and preparing for receiving aid resources
efficiently (in particular financing within the framework of the future EU Structural Funds) in
Poland.
Management by Projects must include four related but different skills:
– The skill of constructing projects. This skill is independent of particular national and aid
programmes and refers to the universal principles which are in force in each well-constructed
project: clear-cut strategy, orientation to solving specific problems or taking advantage of
specific opportunities, a transparent and logical structure of objectives and activities, a
realistic schedule, a transparent and clear budget. Developing this skill requires high-quality
training (necessarily in the form of interactive workshops) which teaches the skill of
systematic analysis of the existing problem situation and using the results of this analysis
logically to create a strategy of problem-solving as a basis of constructing a specific project.
– The skill of translating the strategy of objectives implementation into the format of a
specific project formulated in accordance with the principles and requirements of the
programme within whose framework the project is to be implemented (and financed). As a
general rule an entity’s own budget resources ought to be spent on the implementation of
tasks by means of implementing projects prepared in an appropriate manner. In the case of
applying for external resources it is important to develop the ability to read (and write) terms
of reference and other regulations and learn the methods of writing applications so that they
meet the requirements of a given programme. It is important to emphasise that it is not a
question of acquiring knowledge on the principles of specific programmes, because these are
subject to change, and they are always described in the "manual" of each programme.
Therefore what is most important is developing the skill of correct reading and using such
manuals.
– The skill of operational management of the project. Personal (managerial) predisposition
plays a certain role here and therefore not every clerk or NGO employee will be able to
organise and supervise project implementation in an efficient and effective manner. At the
same time all people responsible for the project implementation may and should be supported
by appropriate instruments (e.g. a simple and practical system of material and financial
monitoring, using modern technologies).
– The skill of efficiently obtaining useful information on the sources of project financing, new
methods of management, institutional and legal changes. What should be emphasised is the
fact that there is a specific, very dynamic market of receiving grants for pro-development
activities and a related market of information on these programmes. The object is to acquire
efficient knowledge of the market, including the sources of information and the ways of
verifying it, as well as the instruments facilitating the access to useful information (e.g.
systematic use of the Internet, regular participation in conferences and seminars, creating
networks of co-operation etc.). It should be taken into consideration that in this area
knowledge very quickly becomes outdated and without constant updating and completing
through participating in the „information market” it will soon become useless.

To sum up it could be said that this project will be successful when the skill of independent
and efficient operating in the sphere of management by projects is developed, irrespectively
of the constantly changing principles, guidelines and procedures of individual programmes.
This means that the objective is to create a new, project-oriented culture of office and
administration work, and project management according to the EU principles is embraced in
this wider context.


                                              39
To achieve the optimum situation in the area with regard to information on sources of project
financing, it is necessary to:
– analyse the collected information regularly,
– prepare a report on the possibilities of obtaining external resources, which is passed on to
the Board members every month,
– decide on the efforts for obtaining external sources of project financing by the Board, on the
basis of the mentioned report.

To achieve the optimum situation in the area with regard to the capacity for project
preparation, it is necessary to:
– create internal procedures, defining the method of preparing projects (e.g. co-ordination of
work, information flow among the entity’s units), including the ones prepared within the
framework of co-operation (communal associations, self-government associations),
– evaluate and modify the above-mentioned procedures periodically.

To achieve the optimum situation in the area with regard to management by projects, it is
necessary to: formalise the principles (financing tasks through projects, selecting projects,
their evaluation), also related to the projects which are prepared within the framework of
formalised co-operation (communal associations, self-government associations). The
principles are evaluated and modified periodically.


Preliminary evaluation of the actual situation in the area on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
The evaluation of the situation in this area in Poland must be negative. There is a serious need
for preparing Polish institutions and agencies of the local, regional and central tier to manage
expenditure by projects. On the one hand this is necessary to increase the efficiency of
spending public money from Polish sources, but it is also necessary for the preparation of
Polish institutions to implement numerous EU aid programmes. The whole sphere requires
solutions, which will result in the systematic use of the MbP form in spending all public
money in Poland.
In particular in connection with the present and future transfers from the EU, various
institutions and agencies recently implemented numerous training and advisory projects
financed from Polish and foreign sources. Unfortunately, these activities, in spite of their
considerable scale, did not result in creating a significant group of clerks and decision-makers
of various tiers who would be prepared to efficiently carry out the tasks related to spending
EU funds in Poland. The analysis of the reasons shows three basic problems:
   – lack of a holistic conception of preparing Polish institutions and agencies for the efficient
        absorption of EU funds and related essential co-ordination of training and advisory
        activity. Similar or identical activities are undertaken by various offices, institutions
        and organisations which do not know of one another. Training participants are usually
        selected at random, and the quality and adequacy of transferred knowledge usually
        does not meet the minimum requirements,
   – the system of selecting the implementers of training and advisory projects oriented to
        capacity building and institutional building so far has clearly favoured foreign
        companies and agencies, which usually were neither interested nor capable of



                                                40
       approaching the issue systemically, and limited themselves to a very narrow
       interpretation of the tasks and responsibilities following from contracts,
   – offices, institutions and agencies rarely prepare themselves systematically for the
       implementation of new tasks which will be their responsibility after Poland’s accession
       to the EU. That is why there is a lack of information, based on reliable analysis,
       concerning informational and training needs e.g. at the local level. As a result of
       enforcing the Project Management Unit system for the implementation of EU
       programmes in Poland, which has been located almost exclusively outside the
       administration since the 1990s, the opportunity to create appropriate knowledge and
       experience in the administration was lost. Now it has to be made up for in a short
       period of time and with limited resources and capacity available.

INTERNATIONAL PERSPECTIVE
The area of using projects as a management instrument in Western countries, particularly
Anglo-American countries, is quite advanced. The majority of public administration agencies
in these countries applies tools related to project management as one of the basic instruments
of management. This largely follows from the fact that these countries’ administrations evolve
towards market oriented systems of public management (public management, quality models).
Apart from traditional methods related to management by projects (sheets, forms, the Delphi
method, the superposition method, PERT/CPM charts, Gantt charts) more advanced methods
(statistical analyses) and specialist software (usually Ms Project) are also used.
In the case of EU countries, the high level of their public administration capacity in the area
of management by projects is related to one of the principles of their operation. A
considerable part of funds transferred from the EU budget is spent and used on the basis of the
principles and mechanisms characteristic for management by projects.
The basic problem related to management by projects which face public administration in
Western countries is translating conceptual solutions into practice. In the case of public
institution, the phenomenon of functional specialisation (division of competence, tasks and
information) occurs naturally, leading to information flow problems. Management by projects
is made more difficult (sometimes impossible) by the phenomenon, as it requires: effective
co-ordination, efficient information flow, and flexible project structure.
The next barrier for efficient management by projects follows from the difficulty in defining
the project results precisely, and in translating them into solutions of real problems of local
communities.
A number of problems also occur at the stage of the process of planning and controlling
project implementation. The majority of the problems result from a lack of precisely defined
measurements of project evaluation, lack of mechanisms of monitoring and inconsistency in
applying the mechanisms.
Another serious problem is related to the specific form of management by projects, i.e.
contracting out public tasks to civil society institutions and private subjects. The issue at point
here are too long periods of negotiating contracts, imprecise definition of the scope and form
of commissioned tasks, a lack of proper supervision of the quality of tasks implemented by
contractors (cf. A Guide to Best Practices for Contract Administration, Office of Federal
Procurement Policy, 1994).




                                                41
Co-Operation among Territorial Self-Government Entities

Definition of the area of co-operation among territorial self-government entities
The area of co-operation among territorial self-government entities is not in fact an
independent management area, such as personnel or finance management. It essentially
consists in emphasising the significance of co-operation among territorial self-government
entities in the implementation of projects in other areas of public administration management.
Co-operation among territorial self-government entities may take place at the economic plane,
in the form of common implementation of various economic projects, in the public services
area, e.g. through common delivery of municipal or administrative services, in the area of
management by projects, in the form of common application for aid resources for the
implementation of various projects important for the co-operating entities. Such an
understanding of the area means that the main distinguishing feature is project
implementation with the participation of more than one public administration entity. This is
the main criterion of evaluation of the entities participating in the Institutional Development
Programme.

Co-operation among territorial self-government entities is an interdisciplinary area. The subject
of analysis in this area will include:
– system of consultation and information exchange among territorial self-government
    entities,
– preparing common strategic documents for individual subject areas, including programmes
    aimed at receiving the EU financial aid,
– implementing common projects by territorial self-government entities,
– organised promotion of the region.

Vision of the optimum situation in the area of co-operation among territorial self-government
entities
The target vision in the area of co-operation among territorial self-government entities is
wider use of well-organised forms of co-operation among territorial self-government entities
(in a rational and efficient way). Such an effect may follow from supporting and promoting
the idea of co-operation among regions and powiats on a regional scale, and among cities and
gminas on the local scale. Local competitiveness should be abandoned in favour of treating
co-operation as an element of long-term, strategic approach of self-government entities to
formulating their policy.
Strengthening co-operation can be achieved through:
   – development of common projects, based on exchanging experiences,
   – improving the method of operation of local and regional authorities,
   – common solution to local and regional problems,
   – co-operation for the benefit of regions across state borders.
By establishing contacts and co-operation in such projects it is possible to realise intentions
which would be impossible for one regions, powiat or gmina.
In the context of using aid resources, and in future also the EU Structural Funds, it is particularly
important for Polish self-governments (especially in small gminas) to develop a capacity for establishing
co-operation with self-governments from other countries. Even at present a lack of foreign partners
means immediate disqualification in the case of applications for projects whose formal requirement is
having foreign partners. The most significant barrier in this area is a lack of qualified personnel.

To achieve the optimum situation in the area with regard to organised entity promotion it is
necessary that there should be:


                                                   42
      – organisational unit implementing the programme of promotion common for a group of
          territorial self-government entities with the participation of social and economic
          partners,
      – one budget for the needs of implementing the promotion programme,
      – programme of promotion which is implemented and regularly updated.

To achieve the optimum situation in the area with regard to drafting strategic programmes and
documents in co-operation with other territorial self-government units, it is necessary that
there should be a developed system of drafting common strategic programmes and
documents. Moreover, permanent co-operation in this area among self-governments of all
tiers is essential.

The optimum situation in the area with regard to implementing projects financed from EU
funds or other external sources in co-operation with other territorial self-government units is
possible thanks to permanent co-operation in the area of information exchange and
implementation of common projects.

To achieve the highest stage of development in the area of institutionalising co-operation
among other territorial self-government units, it is necessary to:
– create a structure (association of gminas, union, convention) functioning as the plane of multi-
    dimensional co-operation with other territorial self-government units,
– hold regular consultation meetings,
– implement a series of common projects (investment, cultural, promotional, lobbying).

Preliminary evaluation of the actual situation in the area on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
According to law, co-operation among territorial self-government entities in Poland may be carried out in
an organised way (communal associations, unions, foundations) or through agreements, civil-legal
contracts, administrative contracts, or mixed contracts. These forms are used in various degrees, but in
practice the most commonly used method are agreements, i.e. a relatively simple formula serving the
implementation of a specific project (investments, public service, administrative procedure). Self-
governments use the organised forms of co-operation much more seldom.
Polish self-governments fail to see all the benefits of mutual co-operation. Unfortunately, the
competition of neighbouring entities is still a dominant approach. This is particularly
conspicuous in the area of economic development. Also in the field of public service delivery,
the predominant tendency is towards providing services individually by self-governments.
This is the case of building waste water treatment plants. It is also frequently difficult to agree
on the location of landfill sites servicing more than one gmina. In both cases the deciding
factors are other than economic or rational, and the competitive position obscures the
advantages of scale resulting from co-operation. A lot of reservations can also be seen on the
plane of common applying for financing from aid funds. To sum up, it must be said that the
development of co-operation among territorial self-government entities may directly influence
the improvement of the functioning of public administration in Poland.
The following are examples of good effects of co-operation among territorial self-government entities:
– The Association of Gminas of the Upper Raba Basin and Kraków – in the area of co-
operation among territorial self-government entities within the framework of association of
gminas,



                                                   43
– The Association of Gminas of the Koprzywianka Basin – in the area of inter-gmina
programme of environmental protection,
– Błażowa, Chmielnik, Hyżne and Tyczyn,
– The “Barcja” Association of Gminas.


INTERNATIONAL PERSPECTIVE
Co-operation of local and regional perspective may be considered in two aspects: internal (co-
operation of self-governments in one country) and international, the role and significance of
the latter has grown considerably in the age of globalisation.

As is shown e.g. by American experiences, important areas of self-government co-operation
are: building regional authorities’ local partnership with self-governments, academic
institutions and businesspeople, projects related to promoting tourism and export, and
information activity of state authorities carried out abroad (in the last aspect, Michigan and
California record the highest level of investment). Other significant projects commonly
carried out are activities in the area of improving the availability of investment capital for
entrepreneurs, promoting investments in human capital, development and modernisation of
local enterprise. These activities are related to the co-operation among authorities of different
tiers, particularly state authorities and individual local self-governments (examples of wide
co-operation can be found among the activities undertaken by states in the 1990s).

International co-operation of self-governments of various tiers mostly concerns the exchange
of experiences and best practices among self-governments, improving management at the
local level, creating international projects by self-governments. An example of formalised
activities in the area is the Eurocities association based in Brussels, associating approximately
100 cities from almost 30 European countries. The Eurocities members have access to current
data on EU-financed projects, and to all kinds of legislative acts in many fields. The
organisation also supports countries from East-Central Europe preparing for EU membership.
Another example of institutionalised co-operation of European self-governments is the
Congress of Local and Regional Authorities of Europe, created by the European Council. The
scope of the Congress’s activity is expanding and at present covers e.g. such issues as:
promotion of efficient self-government structures in all member countries and representing
the interests of districts and regions on the European plane.


Ethics and Preventing Corruption

Definition of the area ethics and preventing corruption
The area of ethics and preventing corruption comprises two basic issues, i.e. the susceptibility
of procedures to unethical behaviours and maintaining ethical standards.
The activities undertaken within this framework are to serve building ethical attitudes of civil
servants. By ethical attitudes we understand such attitudes that are based on norms and
models of behaviour regarded as socially desirable, and at the same time guarantee respecting
the public interest.
The key categories discussed in the area are: ethics, values and standards of behaviour and
corruption. According to the OECD Public Management Committee:
– ethics means moral standards which translate general ideas and values accepted by society
into the every day practice.



                                               44
– values are principles subscribed to by groups, which set the standard of what is good and
right,
– standards of behaviour are the criteria of the activity of employees/clerks of the public
sector,
– corruption is using the public position for private profits.

Vision of the optimum situation in the area of management
The vision of the optimum situation in the area should be based on the assumption that public
administration employees are characterised by high ethical values, and consequently that there
is no corruption. However, the assumptions seems too optimistic, which means that the
optimum situation in the area is understood as one where:
    – there are documents defining the standards of desirable behaviour of civil servants and
        there are mechanisms enabling the enforcement of provisions of these documents,
    – the principle of freedom of information is respected, ensuring access to information from
        the public sector,
    – public administration becomes non-political,
    – the system of recruitment and employment of civil servants is based solely on merit
        (eliminating nepotism and protection),
    – there is a rational system of employee remuneration (too low vs. too high salary),
    – there is transparency of managing public resources,
    – the culture of civil service is shaped.

Preliminary evaluation of the actual situation in the area on the basis of the present practices of
public administration entities in Poland and the world

LOCAL PERSPECTIVE
In Poland there is a lack of one document defining the standards of behaviour of civil
servants. They are listed in three fundamental acts regulating the status of public
administration employees: the Civil Service Act, the Act on Civil Servants, and the act on
restricting economic activity of the persons performing public functions. A number of
regulations related to specific groups of employees of civil service are included in detailed
acts and in the professional pragmatics of individual offices.
Promoting ethics among civil servants usually takes place through establishing the principles
and guidelines of recruitment and promotion procedures, supporting recruitment and
promotion based on merit, ensuring the openness of selection procedures by way of public
announcement of the principles of recruitment and information on vacancies for clerical
positions, and controlling and monitoring selection procedures.
Civil servants in Poland are obliged to submit an annual statement concerning their personal
property and the joint property of spouses. Persons in political positions in public
administration are obliged to provide an open Declaration of Profits including information on
all positions and activities which entitle them to remuneration, facts of material support for
the public activity pursued by them, donations whose worth exceeds 50% of the lowest wage,
national or international visits not related with the fulfilled function, other profits and shares
in foundations, companies and co-operatives even when they do not receive remuneration.

Persons in the positions which are particularly susceptible to corruption are subjected to strict
control and many restrictions. This concerns the following divisions of civil service: public
orders, tax administration, customs administration, audit of budget sector agencies and public
service.



                                                45
Exchange of employees in certain positions, change of the territory of activity, and increased
internal audit are among the most frequently used measures of preventing corruption.
Preventive activities also use reports and information on the situations where there is a
conflict of interests. Systematically drafted Supreme Auditing Chamber reports are of
particular importance. Moreover, among the measures increasing ethical behaviour there are:
the requirement of justifying administrative decisions, the possibility of appealing
administrative decisions, anti-corruption decisions concerning bids for public contracts and
specific mechanisms of auditing the procedure of public orders provided for in the Act On
Public Orders.
In Poland there is no institution providing advice or consultations for civil servants aimed at
solving their work-related problems and ethical dilemmas. In the case of problems related to
professional ethics, employees can only turn to their supervisors, legal and organisational
offices and personnel units in their offices, they can also use materials published in other
periodicals. To increase the standard of ethics among civil servants, training on the subject of
ethics is organised.
Raising complaints and the office of Civil Rights Intercessor are among the commonly
available and well-known procedures and agencies where citizens can notify about a
transgression by civil servants. Recently, some offices have set up telephone line where
citizens may notify about various cases dishonest behaviour and transgressions of civil
servants subordinate to a given office.
In the Ministry of Interior and Administration there is a Department for Auditing, and in
individual agencies subordinate to the Ministry there are inspectorates whose aim is to
disclose and fight against threats and irregularities in the functioning of services and offices
subordinate to the Ministry in the whole country. The irregularities and crimes committed in
public administration, disclosed by internal audit agencies, enable the executive staff of
offices and public institutions to point out shortages and lack of clarity of legal and procedural
regulations and organisational solutions, and thus formulate specific recommendations in the
area of systemic and legal improvements aimed at eliminating irregularities.
The supreme body authorised to audit the financial operations of public administration
agencies and their subordinate entities and other organisational units is the Supreme Auditing
Chamber. The Chamber also controls the activity of other specialised agencies of state audit.
Its post-audit recommendations must be followed by all audited bodies and entities.
With regard to self-government administration employees, at present there is no institution
whose task would be to co-ordinate activities aimed at observing professional ethics. In
Poland there is also a lack of the strategy of ethical administering public issues, harmonising
activities in the sphere of organisation, law, education and investigation, no uniform concept
of the method of informing about unethical behaviour, no permanent body analysing
organisational and legal weaknesses of public administration and improper actions of civil
service.
The evaluation of efficiency of individual anti-corruption tools and mechanisms is difficult
due to the specificity of corruption crimes. Detection of this type of crime is low, since very
few people report the fact of committing a crime, and external audits are limited.
On February 15, 1999 Poland signed the European Anti-Corruption Convention approved on
January 1999. It will be necessary to adjust Polish administrative and criminal law to the
European standards in the area of fighting corruption, and to draft a national strategy for
preventing corruption, e.g. in the civil service.
In Poland there are some NGOs involved n preparing and implementing political guidelines
related to ethics. The most important one is Transparency International Poland, which carries
out research aimed at fighting corruption, informs the public opinion, organises training and
seminars.


                                               46
Although steps have been made towards creating a system of values in the public sector, there
is still no nation-wide strategy and co-ordination of activities in this area. The change taking
place in Poland requires civil servants to constantly improve their professional qualifications
and moral standards. Changes of many old habits and customs are necessary, as well as
invoking emotional and rational involvement of civil servants in the work on new methods of
work and models of behaviour.
Every now and again the public opinion is moved by information on lack of imagination,
corruption, transgressions or dishonesty of civil servants. The information has great impact on
shaping the image of civil servants in the eyes of the public. This poses a considerable
obstacle in introducing and efficient functioning of the democratic system in Poland. Distrust
and lack of respect for the civil service from the majority of society is one of the most
significant causes of the limited efficiency of public administration.
Abandoning the principles of central management, adopting a multi-party system, the
development of territorial self-government put the civil servants in Poland in the situation full
of discrepancies and conflicts, for which, in the majority of cases, they were unprepared.
Privatisation and restructuring the economy, free commodity and capital markets, freedom of
foreign trade, unemployment and poverty, necessity of profound reforms of social welfare,
health care and social insurance etc. require civil servants to solve completely new problems.
At the same time society pays increasingly more attention to clerks, who should base their
decisions on legal regulations and act for the public good. 6
The civil servant often balance between legal, moral, professional and organisation’s
requirements. They are sometimes in conflict, which must be settled by the civil servant.
Loyalty, responsibility, conflict of interests, transparency are still new concepts for many civil
servants in Poland.

INTERNATIONAL PERSPECTIVE
The problem of unethical behaviour and corruption of civil servants afflicts all administrative
systems. The scale, however, is different. There are countries, e.g. Denmark, Sweden,
Norway, where the scale of the problems is negligible. On the other hand, in many Western
countries corruption remains a serious problem.
Western countries adopt different methods of fighting against the phenomenon of unethical
behaviour and corruption in public institutions. In Anglo-American countries (especially
Canada and the USA), where the problem was addressed earlier, codes of ethics are regarded
as the basic instrument. In Europe, in turn, the emphasis is on making legal regulations more
precise.
Next to these two dominant approaches to fighting corruption in public administration, there
are other specific solutions (e.g. in Sweden there is no formal code of ethics, or legal
regulations defining what the civil servant may and may not do. Swedish civil servants base
their decisions on “common sense”). Such solutions are only possible in countries with a very
high standard of ethical culture of civil servants.
An interesting solution in the discussed area is the French solution related to the issue of civil
servants transferring to work in the public sector (in Poland the phenomenon is not as
significant as in France or the USA. However, considering the fact that it is becoming more
common also in Poland, it is worth analysing.) In France there is a special board controlling
the process of civil servants transferring to the private sector. The board analyses very
carefully whether the employment of the servant in the public sector will not result in
impairing public interest (e.g. an employee of the Ministry of Defence may be interested in


6
    Report based on: Witold Krajewski, Ethics in civil service, Służba Cywilna [Civil Service], Autumn-Winter, 2000-2001.


                                                             47
working in the arms sector. In such situations a question arises whether the knowledge and
contacts obtained in the Ministry will not be used improperly in the new workplace).
An interesting approach to the issue of conflict of interests was adopted in Canada. The
approach is different than the one in Europe or the USA. The starting point of Canadian
solutions is the assumption that in the case of public administration evolving towards
management (as is the case there) it makes no sense to use old categories of the classical
model based on a set of ethical orders and bans expressed in legal acts. Instead, procedures
and institutions were created which enable each employee to avoid the conflict of interests.
The German administrative system introduced an interesting solution in the area of fighting
against corruption. Many offices created posts for fighting corruption and introduced the “four
eyes” principle (which means that all important documents and decisions are dealt with by
four clerks). There are also restrictive invitations to public tenders which means that in the
case of companies suspected of corrupting clerks a very restrictive tender procedure is
applied.
The issue of fighting corruption became so significant in many countries that central agencies
for preventing corruption are appointed (e.g. in France an inter-departmental unit for
preventing corruption).
We should also mention the solutions in the area of ethical control which were adopted in
Ireland. This country has a very precise description of legal, non-legal and institutional
solutions determining ethical standards. Apart from legal solutions known from other
administration, e.g. register and declarations of profits, there is the so called Cabinet
Handbook, including recommendations for the persons in high state offices. What is also
worth noting is the Irish system of auditing and investigating institutions, including the
Criminal Tribunal, General Auditor, Parliamentary Committees and Public Offices
Committee. The latter, which is the supreme institution guarding ethical standards, already
performs similar task and has authority similar to Criminal Tribunals, and its competence is to
be considerably extended.
Introducing systemic changes in the area of fighting corruption is very difficult. An example
to prove this thesis may be the Project of a Code of Ethics for EU Commission officials,
prepared after the shocking events, which took place in the Commission two years ago. The
most important element of the reform was drafting two codes of ethics – for Committee
members and for Commissioners. Unfortunately, the Code does not seem likely to be
approved any time soon.

Implementation of Public Tasks of Government Administration in the Voivodship

Definition of the area of implementation of public tasks of government administration in the
Voivodship
A direct subject of analysis is the scope of public tasks of government administration in a
voivodship which directly influence the support of the development of rural areas. The role of
public administration in this regard is supportive, i.e. the government administration is not the
initiator of activities, it only reacts to the initiative of territorial self-government agencies and
other representatives of the local community.
An organisational analysis of the government administration should be compliant with the
three functions it should perform when implementing the Rural Development Programme,
and when transferring all donations from the central budget to the entities implementing tasks
related to regional development:
– information flow,
– budget funds flow,
– issuing administrative decisions.


                                                 48
Moreover, the organisational analysis should evaluate the capacity of the Voivod and
subordinate Voivodship Office for fulfilling the other functions, not directly related to the
implementation of the Rural Development Programme:
– performing the role of public administration agency in the area of:
– tasks related to public safety and order,
– supervision of self-government entities,
– control of using the property of the State Treasury,
– performing the role of supervisor for the agencies of administration responsible to Voivods,
and government representative for administration responsible to ministries.

Vision of the optimum situation in the area of implementing public tasks of government
administration in the Voivodship
The optimum situation in this field is one where government administration in a voivodship
operates in compliance with the law in force, and performs the duties with which it is
entrusted without delay, according to the rulings of the Code of Administrative Proceedings.
The first condition is fulfilled if the government administration decisions are not overruled by
bodies of second instance or the Supreme Administrative Court. The second condition is more
subjective. It can be said that the efficient operation of administration, in the case of a
complete motion and no obstruction from other subjects of the case, should result in reaching
a decision within a month.
Among the many aspects serving the purpose of creating optimum solutions in the analysed
field the following are essential:
– control over the selection of tasks to be implemented within the Programme (a priori
evaluation),
– procedure of circulation of factual and financial documentation between the investor and the
government administration agencies,
– keeping the time of making transfers of financial resources to the investor’s account as short
as possible, after an invoice has been made out by the implementer of the task.
Therefore the following should be expected of the government administration in a voivodship:
– creating a unit responsible for making a priori evaluations of tasks submitted for
implementation within the Programme in the organisational structure of the Voivodship
Office or ensuring a possibility of commissioning appropriate evaluations to external entities,
– establishing a circulation of reports between the task implementer and appropriate
departments of the Voivodship Office and inside the office,
– establishing a procedure preceding the transfer of a subsidy instalment for the payment of
invoice for the performed part of the task, including the material control of the performed
work.
To eliminate the suspicion of a lack of objectivism in allocating the resources among the
Programme participants, it is essential to develop procedures of publishing information on the
tasks approved for implementation and the reasons of rejecting the remaining applications.
An organisational condition of preparing government administration for the implementation
of the Programme is:
– ascribing individual administrative activities to appropriate organisational units and
establishing the forms of co-ordinating the work of these units, including the procedures for
settling possible competence disputes,
– ensuring an appropriate number of employees with the qualifications required to perform
the tasks,
– developing a documentation form of task servicing by government administration (computer
form),



                                              49
– periodical control of task implementation combined with preparing a list of
recommendations for individual employees of the government administration.
It is essential to give organisational preparation an appropriate priority among the tasks
improving the work government administration. Without the awareness of the fact that the
Voivod treats the servicing of the Programme tasks as an element of work evaluation of the
Voivodship Office and administration, it will probably be difficult to achieve satisfactory
effects. Therefore the Voivod’s personal involvement is important, e.g. through direct
connection between the availability of state budget resources and the necessity to show the
organisational efficiency of the government administration subordinate to him.
The optimum situation in the area of public tasks of government administration in the
Voivodship with regard to public safety and order requires the existence and observing of
procedures of managing all activities related to public safety and order.

To achieve the optimum situation in the area with regard to the efficiency of financial
servicing of self-government entities, it is necessary to transfer subsidies to self-governments
on the basis of appropriate procedures of consulting the deadlines and amount of transferred
subsidies.

To achieve the optimum situation in the area with regard to territorial self-government entities
supervision, it is necessary to:
– develop internal procedures of supervision of the resolutions of territorial self-government
bodies and procedures of controlling self-government bodies,
– ensure that the activities are common and punctual, and supervisory decisions are overruled
sporadically,
– ensure that the most frequent transgressions should be a subject of consultation of the
Voivod with the appropriate territorial self-government entities.

To achieve the highest stage of institutional development with regard to using the property of
the State Treasury, a procedure of periodical control of starostwa, as well as reporting and
analysis of using the property of the State Treasury must be developed and observed. The plan
of control must be approved and fully implemented.

The optimum situation in the area with regard to controlling the activity of administration
responsible to the Voivod requires drafting a plan and schedule of control, realised
systematically on the basis of approved procedures. The control results should be analysed
and influence the relations of the Voivod with the administration in his charge.

To achieve the optimum situation in the area with regard to the Voivod’s influence on the
functioning of administration responsible to the ministry, it is necessary to:
– establish and observe the forms of transferring information by all administrations
responsible to ministries,
– ensure regular information exchange with the ministers supervising the individual
administrations in their charge,
– create and use the mechanisms of information with appropriate services of neighbouring
voivodships in the case when the area of activity of administration responsible to the ministry
exceeds the Voivodship area.




                                               50
Preliminary evaluation of the actual situation in the area, on the basis of current practices of
public administration entities in Poland
It seems justified to say that the government administration tasks in the field of supporting
development programmes of self-government are at present the least successfully fulfilled in
comparison with other tasks currently under implementation. This follows from:
– lack of formal requirement and practice of making a priori evaluation of a submitted
project,
– frequent lack of balance of the sources of financing, which causes disruptions in the task
implementation due to a lack of resources,
– overdue transfer of subsidies from the state budget due to difficulties with the budget
liquidity,
– treating the expenditure on development programmes as facultative expenditure, incurred
only after meeting all needs connected with obligatory expenditure,
– lack of a posteriori evaluation of a completed task from the viewpoint of achieving the
expected social and economic effect.




                                              51
DATABASE OF BEST PRACTICES




            52
    P R IO RI T Y O F I NV E S T ME N T TAS KS – TH E C I T Y OF
                               K R AKÓ W
I. GENERAL DATA
Management area: financial and strategic management,
Name of best practice: priority of investment tasks (projects),
Index: strategic plan and public participation in it (especially related to the element:
developing objectives and priorities),
Index stage: 5 (only in the area: developing objectives and priorities),
Implementing Organisation: the City Office,
Name and address of Implementing Organisation:
                                             Kraków City Office
                                             Plac Wszystkich Świętych 3/4
                                             31-004 Kraków
                                             http://www.krakow.pl/samorzad/
Date of implementation: 1997,
Contact person: Development Department of the City Office in Kraków7,
Name of place(s) where the best practice has been duplicated: no information available.

II. DESCRIPTION

1. GENERAL DESCRIPTION OF BEST PRACTICE
The implementation of investment tasks (projects) constitutes the core of operational plans
following from the gmina strategy. The amount of money allocated by local government to
financing investments is always insufficient. The gmina needs usually exceed the capacity of
the budgets in the forthcoming years. In this situation, there is a necessity to choose
investment tasks (projects) to be implemented first. This requires developing a hierarchy of
tasks (projects) from the viewpoint of the gmina best interests. Interests of various groups
clash here, which leads to conflicts.

2. DESCRIPTION OF ENTITY
In the gmina of Kraków (http://www.krakow.pl/samorzad) these conflicts were answered by
the method of setting priorities for investment tasks (projects) based on a multi-criteria
analysis which facilitated making decisions by the City Board and Council. Kraków is a large
city. As a local government entity it is a city with powiat status and implements gmina and
powiat tasks at the same time. The public administration, and more generally the municipal
government, is a large and structurally complex organisation. The City Office in Kraków
deals with the city management and the implementation of administrative tasks. Tasks related
to social and technical services are implemented by a number of the city organisational units
(budgetary entities and their auxiliary units), cultural institutions, health care facilities and
corporations. The scale of problems solved in the city may be characterised in the following
way (exemplary data from 2000):
 municipal budget (excluding companies) – ca. 1,630 million PLN,
 employment in the City Office in of Kraków (excluding units) – ca. 1,600 persons,

7The method described here was developed by the staff of the Department for Strategy and Development of the City Office in Kraków
during the previous term of office, and its main author was dr inż. Wiesław Wańkowicz, employed in the Kraków Branch of the Institute of
Spatial and Municipal Economy, pl. Na Stawach 1, tel. (012) 422-64-04, 422-50-33.


                                                                  53
    population – ca. 740,000,
    number of economic entities (business registration numbers) – ca. 91,000,
    decisions on conditions of construction (annually) – ca. 2,500.

3. PROBLEMS OR ISSUES SOLVED
When developing the investment programme for the years 1997-2001 (an element of the
„Development Plan of the City of Kraków for the Years 1997-2001”), the priority of tasks
was established with the use of multi-criteria analysis, which was to ensure the clarity and
transparency of the principles of selecting the tasks. The method of setting the priority of
investment tasks (projects), based on the task evaluation made on the grounds of many diverse
criteria, consists in calculating the index of investment priority (IIP), developed as a result of
aggregating partial indexes – for selected evaluation criteria of individual tasks.

4. DESCRIPTION OF THE IMPLEMENTATION METHOD
In setting the priority of investment tasks, the following method was used:
 defining investment tasks in the selected area,
 selecting criteria for the evaluation of investment tasks,
 establishing the significance of the criteria,
 evaluating investment tasks as regards the established criteria,
 developing a project of the financial-investment plan,
 analysing the financial-investment plan with the participation of funds administrators and
    appropriate departments.

5. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD8
Step 1. Defining investment tasks in the selected area (in the description available no tasks
were specified because each entity has its specificity). The priority was established in the field
of nine programming areas. In relation to the above-mentioned guidelines, tasks in the areas:
housing and city management were not included in the ranking as no new motion was put
forward in these areas.
Continued tasks were defined as priorities. A continued task is understood as an investment
whose implementation (not preparation) was included in the gmina investment budget in the
preceding year and which must be continued for the final or partial effect to be achieved.
In accordance with the principle of the continuity of planning, the ranking included tasks:
 proposed for the 1997-2001 financial-investment plan (FIP) and included in the 1996-
    2000 financial-investment plan, whose date of implementation was anticipated for 1996
    and the following years,
 proposed for the 1997-2001 financial-investment plan and not included in the 1996-2000
    financial-investment plan.
Step 2. Selecting criteria for the evaluation of investment tasks.
Drawing up a priority list of the areas of investment programme was based on the following
criteria:
 the placement of the task in the 1996-2000 financial-investment plan defining the
    stabilisation of the planning process,
 the placement of the task on the list of departments (e.g. health department), reflecting the
    evaluation of the investment for a given programming area, i.e. fulfilling the basic
    function of the planned task,

8In the description of the method we used the “Development Plan Of The City Of Kraków For The Years 1997-2001” ed. A. Noworól, City
Office, Kraków 1996, pp 123-125. A full description of the method may be found in: W. Wańkowicz, Formalised Method Of Investment On
The Example Of Local Investment Initiatives Motions In The Budget Of The City Of Kraków (duplicated material) City Office, Kraków 1997.


                                                                 54
  the evaluation of the Department for Strategy and Development (general economic and
   social evaluation), reflecting the influence of the investment on:
    improving the standard of living in the gmina (expert’s opinion),
    creating a scientific and cultural centre (expert’s opinion),
    the gmina development (expert’s opinion): production, citizens’ income, employment
       and export, local governments’ constant costs,
    the environment (expert’s opinion),
    public safety (expert’s opinion),
    and an outlet taking account of the possibility of winning public approval,
 the evaluation of auxiliary district councils, reflecting the local community opinions,
 the evaluation of city council committees, reflecting the opinion of self-government
   representatives.
Step 3. Establishing the significance of the criteria.




                                           55
Step 4. Evaluating investment tasks as regards the established criteria.
The priority index for individual investments was achieved by means of the weighed sum
method. The weights for individual criteria were achieved by means of experts’ method.
There were two levels of the process of action. First, task evaluation was established as a
weighed sum, including partial evaluations, and then five basic criteria were aggregated. In
the aggregation, the principle of standardising the variables was adopted (on a scale of –1 to 1
for partial evaluations and on a scale of 1 to 5 for basic criteria. An item in the 1996-2000 FIP
is an exception, where the additional value “0” means the given investment is a new
proposal). The second principle adopted for the aggregation was disregarding the criteria for
which variable values were not fulfilled, i.e. the criteria had no influence on the final
placement of the task on the ranking list.
Step 5. Developing a project of the financial-investment plan (FIP).
Step 6. Analysing the financial-investment plan with the participation of funds administrators and
appropriate departments.
The 1997-2001 FIP developed in this manner was subjected to a close analysis (with the
participation of the future funds administrators and supervising departments), including:
 the progress of implementation of tasks included in the 1996 budget,
 the progress of work on new tasks planned for implementation in 1997,
 the progress of preparations of tasks planned for activating in 1997 (which are at the stage
    of planning in the current year),
 priorities included in the economic programme for 1997, provisionally approved by the
    Kraków City Board.
The conclusions of the analysis resulted in a shift of the order of tasks, particularly the ones
suggested for implementation in 1997. The scope of continued tasks proposed for 1997 was
also verified.
In order to ensure the clarity to the Investment Programme and to highlight the priorities of
the City of Kraków, tasks in individual areas were grouped into:
 tasks perceived as strategic for the city development (realising priorities covered in the
    1997 economic programme),
 continued tasks,
 other tasks – proposed to be activated in the years 1997-2001.
As a result, the order of tasks in the Investment Programme in individual areas is an effect of
setting priorities, verified by the effects of the conducted analysis and of the final version of
the 1997 city budget approved in a City Council resolution of December 30, 1996
[Development Plan Of The City Of Kraków, 1996, pp 123-125].

6. BALANCE OF INPUTS AND OUTPUTS
The proposed method makes it possible to clearly account for the investment decisions made,
which follows from the initially accepted criteria and their weight. The weights for individual
criteria were calculated by means of experts’ estimation.9
Due to establishing evaluation criteria it is possible to limit the possibility of conflict ensuing
from the selection of a specific investment task, this has a positive effect on the process of
decision-making, as, should any controversial issues arise, one may always invoke the
previously achieved consensus on the value of the criteria.
The basic benefit of applying the method of establishing the priority of investment tasks
(projects) is turning decision-making into an open and clear process, which is particularly
significant with reference to spending public money.



9   The method is described in many publications, e.g. Martyniak Z. "Methods of organisation and management " AE Kraków 1999, p. 96.


                                                                   56
It may be said that the following (apart from openness, particularly with reference to the
criteria) can be counted among the advantages of the presented method
 clarity,
 easy application,
 simplicity,
 transparency.
However, gaining such benefits requires bearing some costs, which are mostly related to:
 developing and applying a procedure of establishing criteria for the tasks in question,
 adjusting the criteria to varied tasks,
 establishing weights for the identified criteria,
 partial evaluation of tasks in accordance with the agreed scale.
The method was implemented within the framework of standard jobs of an employee of the
Department for Strategy of the City Office in Kraków. It allowed to show automatically (by
means of a calculation sheet) which of the investment tasks should be implemented first (the
order of implementation was established regularly once a year). This could be performed by
one person, not several – as before.
The time devoted to operating the software and learning the essentials of the method did not
exceed two hours.
The basic drawback of the method, according to the authors, was that there was “no
possibility to take account of technological conditions (the logic of investment) e.g. with
sewage and road investments in one street there is a possibility of a faulty order of their
implementation (repairing the road before the sewage system is done), and the fact that the
implementation is too distant in time”.10

III. RECOMMENDATIONS FOR REPLICATING BODIES
With regard to the discussed method, it is recommended that the lack mentioned above should
be made up for. This may lead to the necessity to use a tool other than the calculation sheet
for the establishment of priorities.
Therefore an efficient application of the formal method of setting priorities of investment
tasks (projects) requires:
 constant adjustment of criteria to the type of proposed investments,
 suitably selected teams of experts,
 adjusting criteria (diagnostic variables) to the possibility of obtaining information on their
    subject for individual tasks,
 reaching a consensus on the criteria of evaluation and their weight,
 the will to apply a chosen method of evaluation (no “political” pressure on the
    implementation of specific tasks),
 limiting the process of setting priorities to rather uniform tasks (belonging to one area of
    programming) 11.




10 This led to the necessity of introducing changes on the list of investments introduced in the budget (not on the priority list drawn up as a
result of applying the method) [W. Wańkowicz, 1997, p 6].
11 A. Noworól points to this limitation, accounting for it by means of the difficulty in defining the criteria which would form a uniform system

describing tasks from various areas of the city life, and which would at the same time answer the needs of the whole community, and at
other times – only of local milieus [A. Noworól, Instruments Of City Development Management, Institute of Spatial and Municipal Economy,
Kraków 1998, p 131].


                                                                      57
        L ON G -T E RM F INA N CI AL AND I NV E S T ME NT
         P L AN NI NG – T H E G MINA OF W IE RZ BI NE K
I. GENERAL DATA
Management area:: financial and strategic management,
Name of best practice: long-term financial planning (LFP) and long-term investment planning
(LIP),
Index: long-term evaluation of the financial situation and long-term investment planning,
Index stage: Stage 4 for both indexes,
Implementing organisation: the Gmina Office,
Name and address of Implementing Organisation:
                                             The Gmina Office of Wierzbinek
                                             62–619 Sadlno
                                             tel. (063) 261-13-80,
                                             e-mail: wierzbinek@poczta.wp.pl
Implementation data: May-October 2000,
Contact persons:       Paweł Kurz – the Wójt,
                      Maciej Kaczmarek – the Wójt Deputy,
                      Bożena Puszkiewicz – Secretary,
                      Krystyna Kaczmarek – Treasurer.
Name of place(s) where the best practice has been duplicated: LGPP partner gminas and
gminas participating in the programme of co-financing LGPP consulting services, which
implemented long-term financial and investment planning, and the town of Sompolno, the
gminas of Kawęczyn and Władysławów and the town of Rychwał.

II. DESCRIPTION

1. GENERAL DESCRIPTION OF BEST PRACTICE
LONG-TERM EVALUATION OF THE FINANCIAL SITUATION
The long-term financial plan (LFP) is a document defining the prognosis of revenues
according to sources and expenditures broken down into basic divisions of budgetary
classification in a five-year perspective at the minimum. A plan of expenditure clearly
separates the anticipated operating costs from investment outlays, showing the dynamics of
change of cash equivalents, apart from revenues and expenditure it also covers receipts and
payments and shows cumulated debt in successive years. Current expenditures should be
presented broken down into personal, purchase of services, other operating and financial
expenditure. A long-term financial plan should be moving, i.e. each year it should be updated
and should cover one more year.
The long-term financial plan implemented by the gmina of Wierzbinek does not meet all the
criteria of a well-prepared plan. Analysing it from the viewpoint of the above characteristic of
a financial plan and moving indexes it can be said that the gmina of Wierzbinek is at Stage 4
as regards long-term evaluation of the financial situation, since it prepared and implemented a
plan which:
 defines a prognosis of revenues according to sources and breakdown of expenditures into
    basic sectors of budgetary classification in a five-year perspective at the minimum,
 apart from revenues and expenditures it also covers receipts and payments and shows
    cumulated debt in successive years


                                              58
    clearly separates the anticipated operating costs from investment costs, showing the
    dynamics of change of cash equivalents.
LONG-TERM INVESTMENT PLANNING
The long-term investment plan (LIP) is a plan covering at least: a list of investments ordered
in accordance with the accepted criteria, a description and the amount of money required for
the implementation of each of them. Additionally, the LIP is co-ordinated with the LFP so
that the individual years of the plan, criteria and the list of tasks are accepted in the course of
a dialogue with the community. A long-term investment plan is also a moving plan,
implemented and updated on the basis of a formalised procedure. A LIP also covers a
standard of presenting data on each of the planned investments, and defines the material scope
anticipated for each task in the following year.
The long-term investment plan implemented by the gmina of Wierzbinek does not meet all
the criteria of a well-prepared plan. Analysing it from the viewpoint of the above
characteristic of a investment plan and moving indexes it can be said that the gmina of
Wierzbinek is at Stage 4 as regards long-term evaluation of the investment planning, since it
prepared and implemented a plan which:
 is a plan covering a list of investments ordered in accordance with the accepted criteria, a
    description and the amount of money required for the implementation of each of them,
 is co-ordinated with the LFP so that each project on the list has its financing plan broken
    down into individual years of the plan,
 the list of tasks is accepted in the course of a dialogue with the community.

2. DESCRIPTION OF ENTITY
The gmina of Wierzbinek is situated in the north-eastern part of the Wielkopolskie
Voivodship in the powiat of Konin, on the Licheń-Ciechocinek-Inowrocław tourist trail. The
gmina covers the area of 148 km2, inhabited by 8,240 people. The gmina is divided into 25
village districts (sołectwa).
It is a typically rural gmina with the following structure of agricultural land area: arable lands
– 68.7%, forests – 11.3%, pastures – 6,8%, orchards – 2.1%. There is no industry, which
results in a high rate of unemployment. One of the few income sources of the inhabitants is
herb cultivation. A lot of rye, potatoes, wheat and vegetables are cultivated in the gmina
territory. There are approximately 1,300 individual farmsteads. There are 145 economic
entities employing almost 500 people outside agriculture in the gmina of Wierzbinek.
The gmina of Wierzbinek only has a sewerage system, which covers 87% of farmsteads of the
municipal infrastructure. The total length of roads in the gmina is 127 km: 92 km of
bituminous, and 36 of macadam road.
There are five grammar schools in the gmina, one grammar/secondary school, 1 secondary
school (gimnazjum), a municipal plant and two health care centres.
Among the biggest problems of the gmina there are: unemployment, a weak communal
infrastructure and a small amount of internal funds for the implementation of investments.

Table 1: Structure of budget revenues by type in the years 1996-1999 in the gmina of
Wierzbinek.
Type of revenue           1996       %       1997       %       1998       %       1999       %
total revenue          4,848,000 100.00   6,007,000 100.00   6,830,000 100.00   7,443,000 100.00
own revenue            552,000   11.39    639,000   10.64    715,000 10.47      730,000   9.81
property income        20,000    0.41     20,000    0.33     21,000    0.31     25,000    0.34
share in income from
taxes                  808,000   16.67    830,000    13.82   815,000   11.93    798,000   10.72
subsidies and
allocations            3,468,000 71.53    4,518,000 75.21    5,279,000 77.29    5,890,000 79.13


                                                    59
Source: own study.

Table 2: Structure of budget expenditure by type in the years 1996-1999 in the gmina of
Wierzbinek.
Type of expenditure     1996       %         1997        %         1998       %         1999       %
total expenditure     4,859,000   100.00   6,211,000    100.00   7,005,000   100.00   8 161,122   100.00
current expenditure   3,865,000    79.54   4,994,000     80.41   5,588,000    79.77   6,282,560    76.98
 – personal           2,104,000    43.30   2,690,200     43.31   3,080,300    43.97   3,616,000    44.31
 – tangible           1,131,000    23.28   1,659,800     26.72   1,800,700    25.71   1,903,000    23.32
 – expenditure on
commissioned and
designated tasks       630,000     12.97 644,000         10.37 707,000        10.09 763,560         9.36
financial               29,000      0.60    13,000        0.21     1,000       0.01       562       0.01
property               965,000     19.86 1,204,000       19.38 1,416,000      20.21 1,878,000      23.01
 – investments         965,000     19.86 1,204,000       19.38 1,416,000      20.21 1,878,000      23.01
Source: own study.




                                                   60
Table 3: Budget expenditure by division in the years 1996-1998 in the gmina of Wierzbinek.
Type of expenditure              1996              %          1997        %               1998
Grand total                      4,859,000          100.00    6,211,000    100.00         7,005,000
Agriculture                        454,000            9.34      193,000      3.11           391,000
Transportation                     272,000            5.60      319,000      5.14           442,000
Education                        2,452,400           50.47    3,402,000     54.77         3,445,000
Social welfare                     119,000            2.45      206,000      3.32           392,000
Local government
administration                     500,700            10.30     679,200     10.94           752,300
Other income                     1,060,900            21.83   1,411,800     22.73         1,582,700
Source: own study.

Table 4: Basic rates for the gmina of Wierzbinek (1999 data).
                                      Basic rates                                   1999
  Share of own revenue in total revenue                                             20.86%
  Share of investments in total revenue                                             25.23%
  Total revenue per capita                                                              903
  Investment outlays per capita                                                         228
  Share of cash equivalents in total revenue                                        18.25%
  Cash equivalents per capita                                                           165
  Share of personal expenditure in operating expenditure                            42.32%
Source: own study.

3. PROBLEMS OR ISSUES SOLVED
Before the long-term financial plan was developed and the long-term investment plan
approved and implemented in the gmina of Wierzbinek, the activities in the area of finance
management had some faults, e.g.:
 a lack of long-term financial planning forming a basis for investment planning,
 a lack of taking account of investment planning priorities previously defined and accepted
   by the local community,
 a lack of a procedure enabling putting forward investment proposals by the local
   community,
 a lack of a complete base of information on all investment needs in the territory of the
   gmina of Wierzbinek,
 a lack of a procedure of drafting long-term financial and investment plans,
 annual „discussions” on which investments should be made this year,
 a lack of computer tools for financial and investment planning,
 a lack of a document passed in a gmina Council resolution related to investments which
   are to be made in the course of the next few years, a document which could be a basis for
   applying for additional external finances for these investments.

4. DESCRIPTION OF THE IMPLEMENTATION METHOD
The long-term financial plan (LFP) is a document defining the prognosis of revenues
according to sources and expenditures broken down into basic divisions of budgetary
classification in a five-year perspective at the minimum. A plan of expenditures should clearly
separate the anticipated operating costs from investment costs, showing the dynamics of
change of cash equivalents, apart from revenues and expenditure it should also cover takings
and outgoings and show cumulated debt in successive years. Current expenditure should be
presented broken down into personal, purchase of services, other operating and financial
expenditure. A long-term financial plan should be moving, i.e. each year it should be updated
and should cover one more year.

                                                     61
The territorial government entity which developed the LFP should move on to developing an
LIP. The long-term investment plan (LIP) is a plan covering at least: a list of investments
ordered in accordance with the accepted criteria, a description and the amount of money
required for the implementation of each of them. Additionally, the LIP should be co-ordinated
with the earlier developed LFP so that each project on the list has its financing plan broken
down into individual years, and the criteria and the list of tasks are accepted in the course of a
dialogue with the community. Only such an investment plan may be largely feasible and will
enable the management of the entity’s finance and investments. A long-term investment plan
is also a moving plan, implemented and updated on the basis of a formalised procedure. A
LIP also covers a standard of presenting data on each of the planned investments, and defines
the material scope anticipated for each task in the following year.

5. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD
The gmina of Wierzbinek implemented the long-term financial and investment plans at the
same time. They were both prepared for a six-year period, for the years 2001-2006. Both
plans were implemented on the basis of a previously drafted schedule developed by the office
staff and an external consultant.12
The schedule, presented below, is a detailed description of the steps taken to implement both
the LFP and FIP efficiently.
Stage 1. Preparing a formal basis for initiating work on implementing the long-term financial and
investment plans.
At this stage, the gmina Council prepared and passed a resolution on initiating the
development of a long-term investment plan. The resolution authorised the gmina Board to
appoint a co-ordinating team for developing the LIP, defining procedures of proposing
motions, defining jobs related to the LIP, and establishing criteria of verification of the
proposed investment motions for the LIP.
Stage 2. Training.
In order to implement the long-term financial and investment plans efficiently, the office staff
involved in the work were trained by an external consultant. During several trainings they
became familiar with the principles of drafting long-term financial and investment plans, a
computer programme (GFAM) for carrying out financial analysis of historical data on the
gmina budget and preparing a financial prognosis, and a computer programme (CAP) for
carrying out investment analysis, and the method of collecting and processing information for
investment planning.
Stage 3. Drafting and passing appropriate resolutions.
At this stage, the Board of the gmina of Wierzbinek passed a resolution on defining the
procedure of proposing motions and jobs on the long-term-investment programme for the
gmina, and a resolution on defining the criteria of verification of the proposed investment
motions for the LIP in the gmina.
Stage 4. Drafting a historical financial analysis (LFP).
The financial analysis prepared with the use of the GFAM computer programme consisted of
three parts: revenue analysis, expenditure analysis and debt analysis.
Stage 5. Drafting a financial prognosis (LFP).
On the basis of the prepared financial analysis, also with the use of the GFAM computer
programme, a prognosis was prepared of the budget revenue, current expenditure and current
debt servicing. The principles of prognosis were based on establishing a prognosis base,
accepted at the level of the 2000 revenue and current expenditure of the gmina. In order to
draft the prognosis, financial data from the base year were amended by: the anticipated

12
  In the gmina of Wierzbinek, both the LIP and LFP were implemented with the aid of an external consultant.


                                                           62
inflation, anticipated economic growth, and the variables following from internal local
conditions.
The major elements of a long-tem financial prognosis are: a prognosis of revenue and current
expenditure, a prognosis of repaying the debt incurred before the planning period, estimating
cash equivalents taking account of the present debt, and estimating the level of cash
equivalents which may be spent on investment activity.
Stage 6. Collecting data on the investment needs of the gmina of Wierzbinek with the
participation of the local community (LIP).
In order to collect information on the investment needs in the gmina, the Chairman of the LIP
Co-ordinating Committee sent an application form of the investment motion, with
instructions, to all gmina organisational units. 13 The forms were filled in by the village
councils in consultation with the citizens, and then passed on to the gmina Board. The form
included the following sections to be filled in:
1. task description,
2. progress of task,
3. description of benefits,
4. connections with other tasks,
5. anticipated date of task implementation,
6. opportunity for co-financing,
7. public support,
8. description of priority.
Stage 7. Developing a database on investment tasks of the gmina of Wierzbinek in the
CAP computer programme (LIP).
The collected tasks in the form of investment motions (reviewed as regards the content and
legitimacy of the proposal) were then processed in the uniform system of the CAP computer
programme, by a specialist in investments, in consultation with the gmina Treasurer, in the
following sheets: general information on the investment, a schedule of financing, sources of
financing, the effect on the gmina budget.
63 investment motions were proposed in the gmina of Wierzbinek. Since the gmina financial
capacity is considerably smaller than the needs, the drafted list of criteria and priorities was
used in selecting investments for the LIP. The criteria made it possible to select salient tasks
and balance them with the capacity for individual years.
Stage 8. Establishing priorities and investment rankings (LIP).
The procedure of developing the LIP provides for the necessity of creating a tool for putting
investment tasks in order of priority. To achieve this, a set of criteria for the evaluation and
ordering of investments was developed. Each criterion was assigned a weight whose size
informed about the significance of a given investment for the gmina. Then a method of
grading (0 to 3) was defined for each criterion. The CAP computer programme was used to
count the points automatically.

Table 5: Criteria of investment raking.
GENERAL CRITERIA                                                                         Points
Status of preparation of investment task:
  continued task                                                                                 2
  task in the preparation phase                                                                  1
Necessity of implementing investment task
  task following from resolutions, acts, and regulations                                         2
  task following from other commitments                                                          1
Connection with other investment tasks


13   These are elements of the investment motion.


                                                      63
   task results from implementing another important investment                                            2
   task is connected with implementing another proposed investment                                        1
Compliance with strategy
   investment task is fully compliant with major strategic objectives                                     2
   investment task realises other strategic objectives                                                    1
DETAILED CRITERIA
Benefits from investment
   investment task is a source of benefit for all gmina citizens or contributes to solving a particular
     economic problem                                                                                      2
   investment task is a source of much smaller benefits taking account of scale, scope and influence      1
 Ecological benefits
   investment task contributes to solving or limiting given ecological problem or meets legal
     requirements                                                                                          1
Public support
   investment task is supported by majority of inhabitants, villages                                      2
   investment task is supported by minority of inhabitants, villages                                      1
FINANCIAL CRITERIA
Sources of investment financing
   there is feasible capacity for obtaining from 50 to 80 per cent of non-returnable finances             3
   there is feasible capacity for obtaining less than 50 per cent of non-returnable finances/funds        2
   there is capacity for obtaining preferential credits on easy terms                                     1
Investment’s influence on budget
   investment task has positive influence on gmina budget (active balance)                                2
   investment task has balanced influence on gmina budget (zero balance)                                  1
Source: own study.


Stage 9. Selecting tasks for implementation – preliminary version of the long-term
investment plan (LIP).
This stage consisted in correlating the anticipated outlays for investment implementation in
individual budgetary years with a prognosis of cash equivalents in the CAP computer
programme.




                                                        64
Stage 10. Balanced version of the long-term investment plan (LIP).
After preliminary verification and ranking of tasks, investment outlays were confronted with
the gmina financial capacity. All sources of financing were considered and a guideline
regarding the possibility of incurring new debts was approved. Thanks to the ranking and the
previously obtained LFP prognosis of cash equivalents for investments, investments were
selected and included in the ultimate, balanced version of the LFP, which was then submitted
to the gmina Council. Out of 63 proposed and ranked investments, 29 were selected for the
LIP.

Graph 1. Index of the share of planned investments in the total revenue of the gmina of
Wierzbinek in the years 2001–2006.

            35,00%                                                             30,92%
                                              29,02%
            30,00%                                        26,98%

            25,00%
                                                                      23,58%
            20,00%                   23,27%

            15,00%       16,83%

            10,00%

              5,00%

              0,00%
                       2001       2002      2003       2004        2005        2006

Source: own study.

Stage 11. Drafting the final version of the LIP and passing a gmina Council resolution
on approving the implementation of the LIP for the years 2001-2006.
Stage 12. Public participation in the process of long-term planning.
The local community was involved in the process of preparing the LFP and the LIP almost at
all stages. This was both active and passive involvement. The citizens were invited to
meetings where they could put forward investment proposals, participate in the work
consisting in developing criteria of investment evaluation. Moreover, the citizens received
current information on the progress of work by means of the local media. At the time of
preparing the plans, the following were among the articles published in the local press:
 „Citizens Are The Most Important – Promises or Results” – information bulletin for
     gmina inhabitants including:
      an open letter to citizens from Paweł Kurza, the Gmina Wójt, on the matter of the
        long-term investment plan of the gmina of Wierzbinek for the years 2001-2006,
      the criteria of selection of investment tasks and method of their evaluation,
      the application form for putting forward investment proposals, with instructions,
      the appointed time of the meeting of the gmina Board and Council with the citizens
        and turning in the completed application forms. The bulletin was printed in 500 copies
        and was disseminated by village councils, shops, schools, business organisations.
 „The 2001 budget – the citizens are the most important” in: Przegląd Koniński [The
     Konin Review],
 „No-cooperation without information” in: Magazyn Wielkopolskich Środowisk
     Gospodarczych [Wielkopolskie Economic Milieus Magazine].


                                               65
   „The Citizens know best – effects of co-operation” – information bulletin with return
    information for citizens – an answer to the first bulletin.




                                              66
6. BALANCE OF INPUTS AND OUTPUTS
The preparation and implementation as well as developing the financial and investment plans
began in May and ended in October.
The gmina of Wierzbinek implemented the long-term financial and investment plans with the
help of an external consultant. Approximately 25 people from the gmina were involved in the
implementation. The time devoted by the consultant amounted to 15 days, and the time
devoted by the office staff came to 7 day’s wages of individual persons involved in the
preparation of the plans. The costs incurred by the Wierzbinek Gmina Office were: the
consultant’s fee – 4.000 PLN (the remaining costs earmarked for the consultant were covered
by the LGPP), other costs – 450 PLN.
The benefits following from implementing the long-term investment plan:
 approving and implementing the LIP allowed the gmina to focus on selected major
    investment tasks, out of the initial number of 63 task, the LIP contributed to planning and
    implementing only 29 tasks in a six-year perspective (selected in the process of wide
    public participation),
 implementing modern procedures which enabled the evaluation of investment tasks
    according to democratically chosen criteria, which consequently enabled establishing a
    priority of tasks,
 the procedure of creating moving plans (approved by the Board) will improve the work in
    the following years,
 putting the data on major tasks into order, which would enable achieving the objectives
    recorded in the development strategy, thanks to implementing the LIP. The gmina put into
    order all investments which are already being implemented or will be implemented in
    future. A detailed database on all investment needs, developed in a uniform format, led to:
     facilitating work in future,
     shortening the period of preparing investments for implementation if there were
        additional sources of financing,
 rational and efficient use of available cash equivalents in long-term perspective,
 facilitating the preparation of the budget regarding investments by means of avoiding
    annual „discussions” concerning investments to be implemented in a given budgetary
    year, this resulted in increased objectivism of the Board and Council members,
 facilitating and accelerating the process of financial and investment planning in future
    thanks to the use of computer tools,
 the long-term investment plan approved by the gmina is an important document, which is
    helpful for the efforts to obtain external financing of powiat investments.

III. RECOMMENDATIONS FOR REPLICATING BODIES
The implementation of the long-term financial and investment plans in the gmina of
Wierzbinek is a good example to follow in small gminas, particularly rural gminas.
Wierzbinek has been trying to implement instruments of financial management for the last
few years. The first stage on the way to modern financial management was the preparation of
development strategy, then the implementation of the LFP and LIP, at present the gmina is at
the stage of improving the method of preparing the task-based budget.
What is particularly worth recommending in this case of implementation is the active
involvement of the local community, increasing the awareness of the importance of preparing
moving LIPs and developing clear procedures of long-term planning. What needs to be
improved are the quantitative and qualitative measurements of the evaluation of implemented
investment tasks.



                                              67
The following can be numbered among the major recommendations related to the method and
procedure of implementing the LFP and the LIP in smaller entities:
 the work on initiating the implementation of a solution should begin with a Council
   resolution on the organisation of the LIP process,
 a team for the LIP implementation should be appointed by a Council or Board resolution,
   it is important that the work should be co-ordinated by the member of the Board
   responsible for investments in the entity,
 a procedure for preparing the LFP and the LIP should also be approved in a resolution, it
   should contain the criteria of investment selection following (among others) from the
   development strategy, models of application forms, a detailed schedule of work and the
   persons responsible for the implementation of individual stages, it should also define the
   ways of involving the local community in investment planning,
 the work on preparing both the financial and investment plan should be simultaneous and
   both plans should be drafted for at least 4 to 5 years,
 both plans should be preferably prepared as moving plans updated annually,
 using a simple computer tool is a very important element of preparing the financial
   analysis and prognosis and the investment plan, such a tool should have the following
   features: the easiness of entering data in accordance with budgetary classification, the
   possibility of making graphs presenting financial and investment data, high speed in
   introducing small changes.




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       S TR A TE GIC O P E R ATI ONAL P L ANS – C IT Y O F
                           W I NN IPE G
I. GENERAL DATA
Management area: Strategic Management.
Name of the practice: Development of strategy implementation (operational) plans
Indicator: Development of strategy implementation (operational) plans
Indicator stage: 4-5.
Implementing unit: Municipal office
Name and address of the implementing unit:          City of Winnipeg
                                                   City Hall, 3rd floor
                                                   510 Main Street
                                                   Winnipeg Manitoba
                                                   Canada R3B 1B9
                                                   www.city.winnipeg.mb.ca
Date of implementation: 2000-2004.
Contact person:       Connie Walker
                      Manager, Strategic Planning Unit
                      Chief Administrative Officer Secretariat
                      City of Winnipeg
                      City Hall, 3rd floor
                      510 Main Street
                      Winnipeg Manitoba
                      Canada R3B 1B9
                      204-986-2377, fax 204-986-7196
                      cwalker@city.winnipeg.mb.ca

Place of replication: The City of Kalamazoo, Michigan, “Blueprint for ACTION: 2003”, is
the current version of the City’s strategic plan, which has a three-year planning cycle. The
City of Kalamazoo strategic plan may be found at http://www.ci.kalamazoo.mi.us, click on
Special Projects and Reports, then on Strategic Plan.
The strategic focus areas, goals, and objectives that make up the Strategic Plan are reflected in
the City of Kalamazoo’s annual budget priorities, and will continue to drive budgetary
priorities in the coming years. Performance objectives and outcome measures will also be
developed based on the strategic goals and objectives in the strategic plan. All of these
elements will be captured and communicated through an annual action plan for
implementation. An annual action plan will link priority strategic objectives to budget
resources, and will be reviewed and adjusted each year based on the progress made towards
achieving objectives and goals.


II. DESCRIPTION

1. CHARACTERISTICS OF BEST PRACTICE
In an ideal local government environment (stage 5), there are approved implementation plans
to implement an approved strategic plan. The implementation (operational) plans would have
the following characteristics:


                                               69
– Defines the tasks of various units/employees with respect to implementation,
– Include an implementation schedule,
– Have assigned the responsibility for monitoring the implementation, and there is periodic or
annual monitoring and reporting of progress in implementation,
– Includes monitoring of financial resources,
– There is long range financial planning implemented by annually approved operating and
multiple year capital budgets,
– There is systematic regular updating of plans, which consider the monitoring results.

In the City of Winnipeg, the approved long-range strategic plan is called “Plan Winnipeg”.
Plan Winnipeg is implemented by a three year implementation action plan called “Serving
Citizens – The City of Winnipeg’s Action Plan 2000-2002”, the name of which reflects the
approach to service provision that Winnipeg is pursuing. The plan is available on the
following web page:
http://www.city.winnipeg.mb.ca/interhom/about_winnipeg/inside/org_plan_perf.stm

A number of years ago, Winnipeg decided to begin a process of reviewing how it provides
services, with the idea of re-aligning service provision to match how the average citizen
perceives services are provided (along functional versus departmental lines). While this
process is not complete, “Serving Citizens” is an important step in the process. “Serving
Citizens” is broken into key service areas as they are perceived by the public, and each service
area highlights the strategies of “Plan Winnipeg” that are relevant to the service area. The
services provided and the Departments providing them have indications of current service
levels (which are most frequently activity levels) and key service goals/strategies (or actions)
to be implemented over a three period. The results achieved (most frequently activities
completed) are monitored and reported in an annual report to the citizens. See “2001 Annual
Report on Performance” at:
http://www.city.winnipeg.mb.ca/interhom/about_winnipeg/inside/org_plan_perf.stm
In addition, there are annual business plans for each Department that are linked to “Serving
Citizens”. These are confidential plans however, as they contain personnel/staffing actions.

The City’s long-range financial plan may be found on the same web page, called “Financial
Management Plan”. The implementing multiple year capital budget for 2002 and the 2002
current operating budget may be found at
http://www.city.winnipeg.mb.ca/interhom/about_winnipeg/inside/financial_reports.stm
While there is some linkage between the “Financial Management Plan” and “Plan Winnipeg”,
these linkages could be strengthened. Linkages between the capital and operating budgets and
the strategic plans mentioned, have not yet been developed.

“Plan Winnipeg” is updated every 5 years. Currently, “Serving Winnipeg” is being
completely updated every three years, although this will be changing to coincide with a
change to a four-year term of Council, and will be updated with each new incoming Council.
“Serving Winnipeg” receives quick reviews on an annual basis, and with the major review
after each election. Departmental business plans are updated annually. All of these updates
consider completed monitoring results and previous financial results.


2. GENERAL DESCRIPTION OF THE IMPLEMENTING UNIT
Winnipeg (Census Metropolitan Area population 684,800) is the capital of Manitoba
(population 1,143,509), a vast, resource-rich province somewhat larger in size than the states


                                              70
of California, New York and Indiana combined. Manitoba is bordered by Ontario to the east,
Saskatchewan to the west and North Dakota and Minnesota to the south. It also borders on
Hudson's Bay, which provides shipping access to Europe. The City of Winnipeg is located at
the junction of the Red and Assiniboine Rivers, almost at the geographic centre of North
America. With an ethnically diverse population, Winnipeg is characterized by slow but steady
growth. It is the eighth largest city in Canada and dominates the Manitoba economy. Since
1945, Winnipeg has grown steadily, based on its position as a major grain, financial,
manufacturing, and transportation centre. Winnipeg was formed by the amalgamation of
several smaller municipalities in 1972.
Members of the Council, other than the Mayor, are elected on the basis of one each from the
fifteen wards into which the city has been divided. The Mayor is elected at large.


3. PROBLEMS SOLVED
Winnipeg is successfully cascading its long-range strategies down to its one-three year
operational plans and down further to annual business plans. In addition, Winnipeg is utilizing
its strategic planning processes to evolve into a service-based organisation that continuously
measures performance in those services delivery areas.
The City of Winnipeg has established its vision and priorities for the future through a strategic
plan called “Plan Winnipeg”. “Plan Winnipeg” is actually being implemented through a
number of means, including the three year operational plan called “Serving Citizens”, annual
Departmental Business Plans, and its capital and operating budgets. The performance of the
city operations, and the tracking of its achievements in implementing its strategic plan are
publicly reported. A loop is formed so that the reporting of performance and achievements
will feed into subsequent updates of the strategic, operational, and business plans.


4. DESCRIPTION OF APPLIED TOOL
“Plan Winnipeg” is City Council’s long-range policy plan. It is intended to guide Winnipeg
into the next decade by addressing the broad physical, social, economic, and environmental
conditions in the city. In that sense, Plan Winnipeg is the most important document prepared
by the City of Winnipeg because it provides the foundation for all civic activity. All other
documents, budgets, public works, programs, or developments must be consistent with this
Plan.
Winnipeg developed its first ever organization-wide implementation plan in 2000. The City of
Winnipeg's Action Plan – “Serving Citizens” – details the link between Council's vision and
strategic direction, and the actions to be undertaken by the organization. Based on the
direction received through Council's approval of “Plan Winnipeg” and the three year budget,
this action plan:
– aligns the service goals and strategies developed through departmental business planning
    with Plan Winnipeg and Council's Priorities,
– provides high level goals for the administration and begins to define measures of
    performance,
– presents the results of the administration's first efforts in measuring service outputs and
    costs,
– lists Council's additional leadership activities that are also in support of Plan Winnipeg.

"Serving Citizens" is intended to support the Mayor and Council in strategic planning and
budgeting. This document is also intended to demonstrate the Administration's commitment to
being responsive to Council's direction and accountable for results. “Serving Citizens” may be

                                               71
found on the following web page:
http://www.city.winnipeg.mb.ca/interhom/about_winnipeg/inside/org_plan_perf.stm

To access the City of Winnipeg “2001 Performance Report”, which reports on performance in
implementing Plan Winnipeg follow the link on this web page:
http://www.city.winnipeg.mb.ca/interhom/about_winnipeg/inside/org_plan_perf.stm

While this report essentially reports on activities completed, future performance monitoring
reports will report on performance achievements outlined in “Serving Citizens”.

Cascading down from Plan Winnipeg and the Corporate Action Plan is a third level of
planning activity – Departmental Business Plans. Each Department completes an annual
business plan (with a three year outlook). These Plans are formulated around “services”.
Business Plans are a key tool for Departments in managing their operations. In addition, these
business plans provide senior management with all the information necessary to assess service
strategies relative to Council’s priorities and direction. Each Plan includes:
    – An executive summary,
    – An introduction,
    – An analysis of services being provided to the public,
    – A description of the Department’s strategic direction and the service goals for the next
        three years,
    – Resources required to deliver the services categorized by: financial, human resource,
        information technology resources,
    – Performance measures of success.
The Departmental Business Plans are confidential documents as they contain sensitive
information related to personnel and staffing actions. A very comprehensive Business
Planning Workbook was developed to assist Departments in their business planning efforts.
An electronic copy has been made available.

Areas of continuing improvement and development for Winnipeg include:
– Even greater alignment of “Serving Citizens” with “Plan Winnipeg”,
– Performance measures that will more accurately measure outputs or outcomes versus
current measurements of activities completed,
– The development and use of “service templates” to more tightly integrate strategic planning,
budgeting and performance measurement. The service templates will:
– Include the results of surveys of citizens that report their perceptions of service
performance, but also include objective service performance data,
– More directly link “Plan Winnipeg” directions, “Serving Winnipeg” action strategies, and
the annual “Business Plans” containing the planned actions of each Department,
– Provide service level information including key service output levels by year and budget
impact of service levels,
– Provide service costing, staffing levels, funding sources,
– Provide service efficiency and in the future, service effectiveness measures.
Winnipeg will implement “service-based” financial reporting in 2002, and in future years,
will move to a service-based budget (versus Departmental basis). Service-based budgeting is
similar to task-based budgeting, but budgets are provided at the service level versus task level.
This will result in the ability to fully align budget planning, priorities, and reporting with
strategic planning priorities.




                                                   72
5. DESCRIPTION OF THE IMPLEMENTATION METHOD
Winnipeg strategic planners feel strongly that an organisation wanting to integrate strategic
planning, budgeting and financial performance reporting and performance measurement
should start with strategic planning. As a result, the following steps have been taken in
Winnipeg.
Step 1. A strategic plan was prepared with public input and participation, in Winnipeg’s case,
called “Plan Winnipeg – 2020 Vision”, which had a twenty year time horizon.
Step 2. During the strategic plan preparation, Winnipeg was evolving into an organisation that
had a more service-based focus. The planning consultations provided the administration with
a view of how citizens perceived service delivery. The plan was organized around five
priority service delivery areas:
    – Downtown and neighbourhoods,
    – Government and the economy,
    – Planned development, transportation and infrastructure,
    – Public safety, health and education,
    – Environment, Image and Amenities.
These five service delivery areas would form the basis for further evolvement of the strategic
planning process.
Step 3. Winnipeg also developed its first ever organization-wide implementation plan in
2000. The City of Winnipeg's implementation plan – “Serving Citizens” – details the link
between Council's vision and strategic direction, and the actions to be undertaken by the
organization. Based on the direction received through Council's approved “Plan Winnipeg”
and the three year budget, this action plan:
– aligns the service goals and strategies developed through departmental business planning
    with Plan Winnipeg and Council's Priorities,
– provides high level goals for the administration and begins to define measures of
    performance,
– presents the results of the administration's first efforts in measuring service outputs and
    costs,
– lists Council's additional leadership activities that are also in support of Plan Winnipeg.
Step 4. Winnipeg then developed Business Planning Workbook, to assist Departments in
developing the more specific annual departmental business plan. Currently the budget process
meets the strategic planning process at this level, although in the future, there will be more
linkages at all three strategic planning levels. The contents of the business plans have already
been described.
Step 5. To assist in strengthening the linkages between the three planning levels, to assist in
bringing a greater service-based orientation, and to begin strengthening budget links, the
strategic planners have developed a “service template”. By the end of 2002, service templates
will be developed for all 40 “service areas”. The service template provides a very useful, yet
easily understood snapshot of key characteristics of the service described.
Step 6. For the 2003 budget, financial reporting will be summarized by service area.
Step 7. By approximately 2004-2006, Winnipeg will “service-based” budgeting and
reporting, allowing a very tight integration of strategic planning, business planning and
financial planning/budgeting/reporting.
Step 8. Winnipeg will continue to improve performance measurement, which will become
easier when the service-based approach has become more fully developed. Performance
measurement will begin measuring results at the output and/or outcome level, versus the
current “activities completed” level.




                                              73
6. COST-BENEFIT CONSIDERATIONS
The City of Winnipeg is unable to estimate the costs involved over the last several years in
strategic planning, moving towards service-based service delivery, and performance
measurement. Staff, which includes strategic planning staff, financial staff, as well as staff in
each Department have undertaken most of the work. Each new step that is developed requires
a very substantial effort, while each time it is repeated, or updated, it becomes easier and more
familiar. The Business Planning Workbook for example, required quite a substantial effort to
develop, and to modify as it was tested with the Departments. Likewise the first business
plans of the Departments took months of effort by many people, whereas subsequent plans
take less time to develop.
While Winnipeg has already started to reap some benefits of a service-based orientation that
is driven by strategic planning, the greatest benefits will accrue when the process is
completed. With the complete integration of the processes of strategic planning, financial
planning/budgeting/reporting, and performance measurement, Council will be able to exercise
much greater control over the strategic provision of services in a manner that is in much
greater alignment with the changing priorities of the community it serves. Certainly, this will
point to areas of lesser priorities in which savings may be found, and to areas where the
community would like to increase service levels and do so knowing what the cost
implications are. Performance measurement will also measure increasing internal efficiencies,
and permit benchmarking with others if so desired. While there is certainly a very substantial
effort required to put these processes in place, the on-going effort required to continue it on an
annual basis once it is in place, will be a very small cost for the large benefits to be derived.

III. RECOMMENDATIONS FOR REPLICATING UNITS
Winnipeg has learned several important lessons through the strategic planning work to date
including the following:

– Winnipeg’s strategic planning efforts are guided by the Corporate Planning Framework
   (described on p. 61 in Plan Winnipeg). This Framework insures that each of the plans build
   upon each other and ties Council’s highest level vision to the organization’s actions. It has
   been extremely helpful to have such a Framework, past planning efforts have been
   disjointed and ad hoc.
– Political commitment to strategic planning is very important.
– Public consultation is critical in developing a community-based long-term strategic plan.
   Plan Winnipeg is a critical plan in the organization and in the community more broadly. Its
   strength lies in the robust public consultation process undertaken during each review
   period.
– Winnipeg Council members are elected by wards and the Mayor is elected at large. Because
   Plan Winnipeg is an overarching Plan covering the entire City, the Plan challenges all
   members of Council to consider the long-term interests of the City as a whole in their day
   to day decision-making.
– Plan Winnipeg now includes quality of life indicators. These indicators will be tracked to
   provide Council with some indication of whether or not their policy framework is actually
   achieving the results intended.
– The Corporate Action Plan (Serving Citizens) was Winnipeg’s first corporate planning
   effort. The Plan comprehensively documents the strategies being implemented in each of
   the business areas. Winnipeg will streamline this Plan in the next effort, paying greater
   attention to the strategic levers and performance measures. Winnipeg is anxious to move to
   a more robust and objective Report on Performance. Historically, the Report was a laundry
   list of accomplishments. The 2000 report aligned accomplishments against the Chapters of


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   Plan Winnipeg. The 2001 report aligned accomplishments with the more precise direction
   statements of Plan Winnipeg. It also included results from the 4th annual public opinion
   survey and more quantitative measures of performance in some key business areas.
– In linking Council’s strategic direction to organizational actions it is critical to talk the same
   language. For example, Council talks about ‘outcomes’ – ‘safety’, ‘neighbourhood
   revitalization’, etc. Administratively, there are ‘Departments’ – the Police Department, the
   Planning Department, etc. Departments are relatively meaningless to elected officials and
   to citizens. To bridge this difference, Winnipeg undertook an exercise 4 years ago to
   document all of the City’s “services” (from a citizen’s perspective). With this inventory
   now complete (including information on customers, value, preliminary costs, outputs,
   quality measures etc.) Winnipeg is now able to link ‘services’ to the strategic outcomes
   defined in Plan Winnipeg. Winnipeg utilized the Management Reference Model for
   Government Services to assist in this exercise.
– Cascading down from Plan Winnipeg and the Corporate Action Plan is a third level of
   planning activity – Departmental Business Plans. Each Department completes an annual
   business plan (looking three years out). These Plans are formulated around “services”.
   Business Plans are a key tool for Departments in managing their operations. In addition,
   these business plans provide senior management with all the information necessary to
   assess service strategies relative to Council’s priorities and direction. A very
   comprehensive Business Planning Workbook was developed to assist Departments in their
   business planning efforts, and this type of assistance is a requirement to achieve a
   consistent approach by all Departments.
– To date Winnipeg have not been able to make a strong link between the planning efforts and
   the budgeting efforts. Currently, budgeting is done by rolling up line item accounts, and
   the budget discussion focuses on the money going in – there is no clear tie to what Council
   gets for their investment (i.e. there is no clear tie to ‘services’ and/or to performance).
   Winnipeg will be moving to a ‘service-based’ budget. This would allow Council to track
   spending against their strategic priorities and would allow a clearer assessment of value.
– Winnipeg strategic planners feel strongly that an organisation wanting to integrate strategic
   planning, financial planning/budgeting/reporting and performance measurement in a
   similar manner should start with strategic planning. Strategic planning should provide
   directions to financial planning and budgeting, not the other way around. In terms of
   performance measurement, “what gets measured… gets done”. However there is a very
   good chance that the wrong things will be measured (and therefore wrong things being
   done), unless performance measures are developed within the context of the strategic
   planning framework.




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     C A TA LOG UE O F C I TY O F FICE S E RV IC E S – TH E
                  T OW N O F N AM Y S Ł ÓW
I. GENERAL DATA
Management area: office organisation and functioning,
Name of best practice: a catalogue of city office services,
Index: progress as regards process management,
Index stage: 2 with elements of 3,
Implementing organisation: municipal office,
Name and address of implementing organisation:
                                            City Office of Namysłów
                                            ul. Dubois 3, 46-100 Namysłów
                                            tel. (077) 410-48-41, 410-15-51,
                                            fax (077) 410-03-34
                                            http://www.namyslow.um.gov.pl
                                            e-mail: urzad@namyslow.um.gov.pl
Date of implementation: March to November 1999, continuous since April 2000, possibility
of reviewing the catalogue on line.
Contact person:       Ewa Witkowska – Director of Department for Promotion and Social
                      Communication, tel. (077) 410-07-86
Name of place(s) where the best practice has been duplicated: Nowa Dęba.

II. DESCRIPTION

1. GENERAL DESCRIPTION OF BEST PRACTICE
Developing a catalogue of services of the office means identifying so called external
processes, which is the first step towards their further improvement. The identification and
description of processes constitutes Stage 2 and 3 (processes were identified – Stage 2 and
described – Stage 3) for the criterion: progress regarding process management.

2. DESCRIPTION OF ENTITY
At the turn of 1998 and 1999, the gmina of Namysłów declared its will and was qualified for
the implementation of a project called “Public participation – reaching out to people”, which
was a part of the Local Government Partnership Programme (LGPP). The main objective of
the project was to introduce permanent principles of co-operation between the gmina
authorities and the citizens on the basis of two-way circulation of information: from gmina to
citizens and from citizens to gmina.
This practice was developed by the City Office of Namysłów. LGPP supported the gmina of
Namysłów in the implementation of this practice. Although the practice concerns public
participation, it is great example of how one solution may be beneficial for other areas, not
related directly to the main objective of the presented practice. Developing a catalogue of city
office services is simply an identification of so called external processes (i.e. the ones which
involve a client). Such a task is the first step towards further work improving both the
organization and functioning of the office. Moreover, the presented catalogue of services is a
highly standard project, which means that it can be implemented in gmina offices virtually
without any additional research or analyses. The presented practice is characterized by
relatively low complexity.

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3. PROBLEMS OR ISSUES SOLVED
First of all, it was possible to increase public participation through identifying the major
issues which citizens bring to the office. The identification itself made it possible to order the
implementation of individual processes and assigning persons responsible for the
implementation of individual processes. This solved the problem of task distribution among
the staff.
Moreover, the work inside the office was facilitated by defining the borderlines between
individual processes. Thanks to the catalogue of services, the citizens have the basic
information on the cost of implementing a given procedure, the duration, and learn what
documents they must prepare before they come to the office. There is no doubt that this leads
to shortening the time needed for servicing the client during the first contact with the office
employee, by limiting the need for giving oral information.

4. DESCRIPTION OF THE IMPLEMENTATION METHOD
The catalogue is a tool which enables the citizens of Namysłów to find out where and how a
given issue can be dealt with and what documents will be needed. It includes the scope of
activity of individual departments, information on the procedures of dealing with individual
issues and the documents required. The citizen learns “where the issue can be dealt with”,
“how the issue can be dealt with”, “the required documents”, “the fees charged”, “the time
needed”, and “other important information”.
The innovative nature of this practice consists not only in the idea of preparing the catalogue
but in using various information channels. The “catalogue of the City Office of Namysłów” is
available in the information point of the city office and in each office branch. It can be also
found on the city office website.

5. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD
The method of implementation presented below shows the general framework of procedure,
and the schedule is shown in Table 1.
Stage 1. Initiating co-operation.
After preparations and desk research (study of documents, Council resolutions, local press,
opinions concerning Namysłów etc.), there was a meeting of experts from an external
advisory organization with the participation of the Mayor, members of the Board and Council.
The meeting was an opportunity for partners to meet and to define mutual expectations.
Moreover, external consultants carried out interviews and talks with the Mayor,
representatives of the Board and the Council, and with some directors of the gmina office
organizational units, especially persons connected with activities in the area of social
communication and promotion. The talks were held on the basis of a set of issues earlier
prepared and discussed by the team.
Stage 2. Training workshops.
MSAP experts ran training workshops on social communication in which the managerial staff
of the gmina (the Mayor, Board members, Council representatives, directors of organizational
units) participated separately from the administrative staff (clerks).
Stage 3. Developing a plan of action.
After the training, the MSAP and the gmina created a plan of action which enumerated and
accounted for the needed projects. One of these was a “Catalogue of City Office Services in
Namysłów”.
Stage 4. Collecting information.
All departments of the city office were involved in the work on the “Catalogue of City Office
Services in Namysłów”, which catalogued and described their scopes of services. This was a


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key stage in developing the catalogue, which was also very time-consuming. While gathering
information, certain criteria must be used, the staff must take account of these criteria, which
include: the maximum duration of service implementation, the required documents, the cost
incurred by the client, the location where the service is provided etc.
Stage 5. Synthesis of results.
Later, on the basis of the format proposed by the MSAP, the department of communication
gathered and combined all the collected data into one broad document. Drawing up the
catalogue took three months.
Stage 6. Publishing the catalogue and ensuring its availability.
The creation of the catalogue itself does not mean that it is beneficial. It should be made
available by means of various channels of information. In the case of Namysłów, the
“Catalogue of City Office Services in Namysłów” is available in the information point in the
city office and in every office branch, and on the office website.




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Table 1: Schedule of developing a catalogue of services of the city office in Namysłów.
Task                     Form of implementation                   Implementer           Deadline        Results
Preparing a catalogue    Preparing a record of services.          Director of the       by 30.07.1999   1.Catalogue of
of services provided                                              department of                         services,
by the gmina (in                                                  social                                2. Website.
printed and electronic                                            communication
form on a website)                                                (SC)
                     Describing each service and method of        Directors of
                     dealing with issues.                         departments
                     Preparing a catalogue in alphabetical order Directors of
                     and by divisions.                            departments
                     Verifying the processed information.         Directors of          by 10.08.1999
                                                                  departments
                     Testing the quality and comprehensibility Director of the          by
                     of the catalogue on a small sample of        department of         20.08.1999
                     citizens.                                    social
                                                                  communication
                                                                  (SC)
                     Copying the catalogue, information for       Director of the       by 30.08.1999
                     citizens on its availability, dissemination. department of
                                                                  social
                                                                  communication
                                                                  (SC)
                     Optional preparation of the catalogue on a Director of the         by 30.09.1999
                     website.                                     department of
                                                                  social
                                                                  communication
                                                                  (SC) (with external
                                                                  backup)
Source: the MSAP, work carried out within the framework of the LGPP, 1999.

The above course of action should be slightly modified with a view to using the catalogue for
other areas of the organisation and functioning of the office, which are discussed in point III
below.

6. BALANCE OF INPUTS AND OUTPUTS
A direct result of creating the catalogue is improved servicing of the clients of the city office
in Namysłów. The citizens do not get lost in the city hall corridors, sent away from one door
to another. Also from the viewpoint of the office staff this means that they deal with clients
they can help. As a consequence, the catalogue strengthens the image of the office as an
efficient and friendly institution, not only for the citizens of Namysłów, but also for the local
business and potential investors.
The “Catalogue of City Office Services in Namysłów” is a simple and inexpensive initiative,
which considerably improves the servicing of the office clients, facilitates the work of the
office staff and improves the positive image of the office.
The catalogue also improved the functioning of the City Office in Namysłów, it helped to
order the scopes of activity and contributed to integrating the staff.

III. RECOMMENDATIONS FOR REPLICATING BODIES
Suggested development of the catalogue should be aimed (in accordance with improving the
organisation and functioning of offices) at rationalizing separated procedures with regard to
criteria like: the duration, cost, possibility of automatisation of some activities related to
implementing the procedure. The target of such a project should be a formal record of all
processes in the office, both with the participation of the client and internal.
In accordance with the accepted descriptive indexes concerning the transparency of
procedures, formalising such separated processes should be considerably easier.


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Developing such a catalogue is the beginning of changes, a place where the gmina can start
improving its organisation. The employees participating in the work are quicker to show the
next steps in the realization of a given procedure, and, more importantly, can identify the
stages where improvement is possible.
The first recommendation related to the method and procedure of implementing the solution is
organising workshops aimed at familiarising the office staff with the notion of process
(procedure). The process approach, which dominates management nowadays, enables local
government entities to improve their activity on the condition that processes are identified.
The second part of the training should be related to the methods of recording (formalisation)
the processes by means of graphical techniques. Using them helps to visualize the progress of
a given process, which is a basis for its analysis and for proposing improvements. Each office
should appoint a team (unless there is already a suitable unit dealing with organization) which
should cope with the identification and recording the implemented tasks within the framework
of the process. The office staff should choose one of the many techniques available. A brief
review of all kinds of auxiliary methods and techniques was shown in the best practice called
“Organisational Audit In The Department Of Architecture, Construction And Geodesy Of The
Kraków City Office”.
The second recommendation is related to using (if possible) appropriate computer
programmes, which will facilitate the implementation of activities that consist in recording the
progress and will make other forms of co-operation possible, e.g. by Intranet.
The third recommendation comes from a report describing this practice: „Finally, there must
be willingness to undertake actions in the gmina. In the case of activities within the discussed
scope, a lack of financial resources is a smaller hindrance than a lack of will. A well-
formulated plan, based on a logical set of tasks, defined deadlines for their implementation,
and results enabling the control of the implementation, favours initiating real activities.”




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      I M PLE ME N TIN G TH E S Y S TE M O F E M PLOYE E
      E VAL UA TI ON – TH E T OWN O F D Z IE RŻ ON IÓ W
I. GENERAL DATA
Management area: personnel management,
Name of best practice: implementing the system of employee evaluation,
Index: the system of employee evaluation,
Index stage: 4,
Implementing Organisation: the city office,
Name and address of Implementing Organisation:
                                            City Office of Dzierżoniów
                                            Rynek 1
                                            58-200 Dzierżoniów
                                            http://www.um.dzierzoniow.pl/
                                            tel. (074) 645-08-00
                                            fax. (074) 645-08-01
Implementation date: November 27, 2000,
Contact person:        Wanda Ostrowska – Secretary
                      City Office of Dzierżoniów
                      Rynek 1, 58-200 Dzierżoniów
                      tel. (074) 645-08-06
                      e-mail: Wanda@smok.um.dzierzoniow.pl
Name of place(s) where the best practice has been duplicated: no information available.

II. DESCRIPTION

1. GENERAL DESCRIPTION OF BEST PRACTICE
The system of employee evaluation makes it possible to make a formal, more objective
evaluation, it facilitates communication with the personnel, enables the evaluation of
employee efficiency (understood as the ratio of achieved results to stated objectives).
Moreover, it forces systematic contact with employees, which is an opportunity to recognise
their training needs, professional aspirations, and creates an opportunity for them to present
their own ideas improving both their and the organisation’s work.
With regard to the system of indexes approved in the Institutional Development Programme,
the presented practice is classified as “the system of employee evaluation”. Taking account of
the criteria of this index, the City Office of Dzierżoniów should be placed at stage 4. The
methods of employee evaluation are suited to the entity’s needs. Employees are informed and
trained with regard to the procedure of evaluation. However, the results of employee
evaluation are not fully used in personnel management.

2. DESCRIPTION OF ENTITY
Dzierżoniów is a town in the Lower Silesia Voivodship, at the foot of the Sowie Mountains,
at the Piława River. It is a medium-sized town, with a population of 38,000. The City Office
of Dzierżoniów employs 75 persons (excluding Municipal Police).
The major problems, which led to the necessity of adopting a new solution, were:
 no model of objective employee evaluation,
 difficulties in communication between the staff and their supervisors,

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   no systematic contact between the staff and their supervisors,
   employees’ difficulties in meeting deadlines,
   the need to increase employees’ responsibility for the implementation of annual and
    quarterly tasks.

3. PROBLEMS OR ISSUES SOLVED
   increasing the staff’s activity by involving them in the process of management,
   eliminating subjective evaluation – the supervisor refers to specific results of the
    employee’s work, which means an objective evaluation can be made,
   ensuring systematic contact between the employee and the supervisor,
   increasing the staff’s awareness related to their responsibility for the implementation of
    the tasks of their organizational unit and the whole organization,
   increasing the responsibility for meeting deadlines.

4. DESCRIPTION OF THE IMPLEMENTATION METHOD
Before the new solution was introduced, the supervisor assigned objectives to employees and
supervised the execution of the tasks. At present it is the employee who proposes tasks to be
implemented in specific quarters, and the final set of tasks is decided as a result of an
interview with the director. This induces employee initiative and increases their sense of
responsibility. The system also encourages exchange of comments on the organization and the
system of training, creating relationships between employees at different management levels.
The elements of the evaluation system are: quarterly task questionnaires, annual evaluation
sheets (of employees and supervisors), forms of statements and the procedure of application.
Quarterly task questionnaires include:
 employee’s name and family name,
 placement in the organization structure (department/branch/post),
 the duration of task/objective implementation,
 tasks/objectives discussed with the employee,
 measurement of evaluation/result of work,
 evaluation of implemented task,
 (optional) additional tasks,
 signature of employee and supervisor,
 date of evaluation interview.
Annual evaluation sheets include:
 employee’s name and family name,
 post held by employee,
 information on the date of assuming the post,
 date of previous evaluation,
 descriptive criteria of evaluation for managerial and independent posts,
 five-grade descriptive scale of evaluation (1 – beneath expectations, 2 – does not meet
    expectations, 3 – meets expectations, 4 – above expectations, 5 – outstanding),
 employee’s self-evaluation,
Forms of statements are related to the state of issues dealt with and include:
 date of coming in, type of issue,
 information and justification of stage of dealing with issue,
 employee’s signature.
The accepted procedure of applying the evaluation system is as follows:
 before the quarter begins, a meeting is held between the supervisor and the employee,
    with the aim of assigning tasks (quarterly task questionnaires),


                                               82
   at the end of every month, the employee hands in a written statement listing the issues not
    dealt with in the last 30 days, quoting the reasons,
   within a month after a quarter ends, the supervisor makes a quarterly employee evaluation,
    the results are recorded in quarterly task questionnaires which the employee keeps in
    his/her own file,
   at the end of a calendar year, by the end of the first quarter of the following year, the
    supervisor, in an interview with the employee, fills in the annual employee evaluation
    sheet (sheets for supervisors are prepared by the Mayor or an authorized person). Annual
    evaluation sheets are kept in the employees personal file for the period of 3 years, and
    then, on receipt, are passed on to the employee.

5. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD
Within two months in 1995, after undergoing training, the Secretary, two external consultants
(employed within the framework of an aid programme) and a two-person team, developed the
methods and internal procedure of introducing a system of evaluations.
Then, with the participation of consultants, a pilot programme lasting about three months was
carried out, as a result of which the applied documents were simplified as much as possible.
After the completion of the pilot project, within one week, the Secretary trained her
subordinates and directors of departments in the area of applying the evaluation procedure.
The procedure has been used in practice only since 2001.

6. BALANCE OF INPUTS AND OUTPUTS
Outlays:
 financial – the cost of printing documents (ca. 500 PLN) and the work of three office
   employees for ca. two months,
 human – involvement of two external consultants, input from three office employees.
Benefits:
 financial – since the procedure is implemented for the first time, and the first employee
   evaluation will take place in 2002, there is no data which would allow to estimate the
   financial benefits, there is no doubt that the work time is more efficiently used now,
 related to the improvement of the quality of services – more deadlines are met, issues are
   dealt with more appropriately, there are fewer appeals, complaints and lawsuits ensuing
   from failing to meet deadlines,
 social – better knowledge of employees’ needs, better communication, greater
   involvement of employees in their work, taking better care of the work quality.

III. RECOMMENDATIONS FOR REPLICATING BODIES
In order to introduce new methods efficiently, senior management should participate in the
process. Moreover, training in the area of employee evaluation should be organised for
managers.
A feasible schedule of implementing the procedure of employee evaluation must be written
up, action should be preceded by training in the area (for subordinates and supervisors). The
schedule should define the deadline of obligatory quarterly task statements. Writing up sheets
for fictitious tasks and sheets not including final measurements should be avoided, and
simplified sheets should be used – complex sheets generate dislike and de-motivate.
At the beginning of a calendar year, after the gmina budget is approved, each organisational
unit should present a plan of objectives for a given budgetary year. The plan of action should
be based on the approved programmes and resolutions of the gmina authorities, tasks which
are commissioned or taken over. This facilitates planning tasks for individual quarters.



                                              83
When setting objectives, the supervisor should avoid imposing tasks, it is also necessary to
define the precise method of achieving the stated objectives It is worth entrusting the
employee with keeping the task file, so that he/she can check how the task implementation is
progressing in his/her case. It is not worth it to burden one employee with the additional task
of supervising the personal files for all the staff.




                                               84
  L OC AL I NV E S T ME N T I NI TIA T IV E S – TH E C I T Y O F
                           K R AK Ó W
I. GENERAL DATA
Management area: public services, including municipal services,
Name of best practice: Local Investment Initiatives,
Index 1. plan of delivering public services,
         2. standards of providing services,
         3. procedure of unit and global cost analysis,
         4. procedure of improving efficiency and organisation of services,
         5. ensuring wider offer and competitiveness of organisation and delivering services,
Index stage: indexes 1, 2, 3 – Stage 4, indexes 4, 5 – Stage 3,
Implementing Organisation: the City Office,
Name and address of Implementing Organisation:
                                             The Kraków City Office
                                             pl. Wszystkich Świętych 3/4
                                             31–004 Kraków
                                             www.krakow.pl
Implementation date: 1994,
Contact person:        Małgorzata Owsiany – Director of Department for Strategic Planning
                      Department of City Development
                      The Kraków City Office
                      pl. Wszystkich Świętych 3/4
                      31–004 Kraków
                      tel. (012) 61-61-534
                      e-mail: owsianma@um.krakow.pl
Name of place(s) where the best practice has been duplicated: Szczecin, Poznań,
Częstochowa, Cieszyn, Mszana Dolna, Zielonki.

II. DESCRIPTION

1. GENERAL DESCRIPTION OF BEST PRACTICE
Local Investment Initiatives (LII) consist in implementing public tasks with the financial
participation of the gmina and citizens, as a result of the local community involvement and
partial participation in the costs. Investments under the LII are implemented by the citizens of
Kraków grouped in Community Construction Committees. The LII cover tasks from the area
of the city infrastructure: water-line systems, combined and sanitary sewage systems, sewage
treatment plants, waste water basins and drainage ditches, land melioration and anti-flood
facilities and equipment, central heating, roads, bridges and lighted car parks, maintaining
cleanliness, sports centres and facilities. The investments are implemented in the public-
private system, jointly financed by the gmina and Community Construction Committees,
gathering citizens interested in the development of the area they live in.
The programme mainly serves the citizens of the city outskirts, where the infrastructure has
shortages, and, in a smaller degree, the citizens of the central part of the city, where the
existing infrastructure only needs completing.
The aim of the LII project is to improve the standard of living by developing technical
infrastructure and enabling the citizens access to all facilities.


                                               85
The project’s major tasks are:
 eliminating infrastructure barriers and arranging areas according to urban development,
    which creates conditions for achieving the right intensity of building development,
 public participation (decision-making and financial) in the tasks implemented by self-
    government,
 building a water-line system and sanitary sewage system on the Kraków outskirts, in a
    different system they could be possibly built in 15 to 20 years, which could lead to an
    ecological disaster,
 rational use of finances at the disposal of the gmina through the activity of local
    communities (Community Construction Committees),
 equal access to the city budget of all economic entities operating on the market,
 integration of local communities.
The LII give an objective answer to the questions: which tasks should be supported by the city
budget first? In what amount? On what principles?
The mechanisms of the LII procedure give a comprehensive view of the issues related to the
principles of co-operation between the city and private partners in the implementation of
investment tasks. The gmina developed appropriate documents defining the principles of
providing services, the scope of services and the units responsible for the delivery. In the case
of tasks implemented within the LII framework, there are also standards of providing services
monitored by both by the gmina and Community Construction Committees, procedures of
cost analysis connected with the evaluation of service quality were developed within the task-
based budget. There is also a system of improving the quality of service delivery. Citizens are
informed about the existing system in bulletins issued by city entities, district Councils etc.,
annual conferences are organized with the aim of gathering experiences, introducing
improvements to the system and training committee members. The annual social research also
covers the research of citizens’ aspirations with regard to implementing the plan and
delivering services.

2. DESCRIPTION OF ENTITY
The city of Kraków is a large territorial self-government entity. However, due to its historical
past, it does not form a close urban centre. A significant part are typically rural areas with low
intensity of building development, with considerable lacks in the technical and social
infrastructure (in the former Kraków Voivodship, the gmina of Kraków had the majority of
rural areas). Developing technical infrastructure is the gmina’s own task, but the Kraków
budget does not allow its full implementation because of the scope of the problem. Thanks to
the institutionalised approach to problems, the burden on the self-government is lesser, the
processes of developing peripheral terrains are accelerated, and the quality of services
delivered by the city units is improved.

3. PROBLEMS OR ISSUES SOLVED
The most important measure defining the results of the implemented project is the level of
satisfaction of the needs of local communities. Every year, analyses are carried out to define
the level of need satisfaction and to evaluate the level of implementation of proposed
investments and the prognosis of the money needed, together with the evaluation of the city’s
financing capacity.
These analyses enable comprehensive monitoring of the implementation of tasks so that they
can be co-ordinated appropriately and implemented efficiently.
As a result of the project implementation by the end of 2000 e.g. over 204 km of water-line
system were built, 6,227 properties were connected, 5 local water waste treatment plants were
built, as well as 2 sports stadiums and 3 parks.

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Apart from the achieved tangible effects, what was also observed was great involvement of
the local communities in the development of the infrastructure in their area, which improved
integration and increased involvement in community issues.

4. DESCRIPTION OF THE IMPLEMENTATION METHOD
The functionality of the project consists in initiating numerous initiatives by local
communities and including them in the gmina investment process. This is also a special type
of public participation in the city management. Citizens submit their investment needs and
decide, because of the limited financial capacity of the gmina, to help with the
implementation. They participate financially in the investment project proposed and prepared
by themselves. They do not wait and submit claims, rather, they participate and become
responsible for the gmina development. An objective method of selecting investment tasks
optimally was developed and approved by the Kraków City Board. Criteria of drawing up an
investment ranking list and a list of co-financing investments were approved. The whole
process is open, public and presented in an accessible manner. The method of the optimisation
of selecting tasks for co-financing and the procedure of carrying out tasks proposed for
implementation in the LII mode within the budget task means that money is used rationally,
which leads to lesser financial burden on the citizens. It also gives an opportunity to include a
larger number of Community Construction Committees in the co-financing scheme.
The project received honourable mention e.g. in 1996 by the Board of 21 Mayors and City
Presidents in the competition for the most valuable Local Initiative, and in 2000 in the
competition “Innovations in cities” – City 2000, organized by the Association of Polish
Towns and the Prime Minister.

5. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD
In 1994, the Kraków City Council for the first time put the issues related to tasks concerning
the development of land into the organizational framework and passed Resolution No X/99/94
on the direction of the activities of the Kraków City Board in the area of organizing,
implementing and co-financing Local Investment Initiatives. Since then the process of making
investments in the LII mode has been modified and improved by means of:
 precise definition of the level of financing individual media,
 increasing the gmina’s guaranteed share for the media implemented in the LII mode,
 annual increase of the money for LII investments provided for in the budget,
 obtaining co-financing of tasks from the Gmina Environmental Protection Fund and the
    Municipal Water-Line and Sewage Plant.
Introducing the above changes resulted in the necessity of establishing new principles of the
functioning of local initiatives. They were defined in the Resolution of the City Council No
XC/870/97 of September 24, 1997 on the directions of the City Board activity in the area of
organising, implementing and co-financing Local Investment Initiatives. An effect of
enforcing this act was e.g. the City Board approval of the method of ranking tasks proposed
for implementation in the LII mode under the budget task called “Investment tasks
implemented in the LII mode”, and introducing the procedure of carrying out tasks in the LII
mode.
The tasks in the LII mode are implemented on the basis of a co-financing list. The list is
drafted for individual budgetary years on the basis of the Resolution of the City Board No
1060/97 of September 23, 1997 on the approval of the method of ranking tasks proposed for
implementation in the LII mode. The resolution defines the way of allocating budget funds to
individual tasks by means of the approved method of establishing task priority on the basis of
threshold criteria (construction permit, the applicants declaration of co-financing, no financial
liabilities on the part of the Initiator) the and basic criteria (continuation, gmina’s branch

                                               87
preferences, the functional effect, the convergence of the project implementation, the waiting
period). In 2001, the co-financing list includes the basic list, guaranteeing the implementation
of 48 tasks amounting to the total of 20,508,920 PLN and a reserve list comprising 39 tasks.
In accordance with the Resolution of the City Council No XXVI/192/99 of July 14, 1999, the
City Board selects successive tasks from the reserve list within the cash equivalents available
during a budget year.

6. BALANCE OF INPUTS AND OUTPUTS
According to the analysis of needs for the implementation of tasks in the LII mode, the gmina
should spend over 250 million PLN more in the area of building water-line and sewage
systems. The analysis shows that this will be possible with the active involvement of local
communities. The main objective, i.e. developing infrastructure in all urbanized lands, may be
achieved in the next ten years only with a joint organizational and financial effort of all the
parties participating in the process.
Local investment initiatives are financed:
 from the Initiator’s own funds and gmina budget,
 from investment funds of municipal companies,
 from the environmental protection fund,
 from other non-budgetary sources.
The gmina’s share in financing the tasks averages 84 per cent of the investment’s values, of
which 86 per cent water-line systems and 52 per cent sewage systems.
In the years 1994-2000 a number of investments in the area of infrastructure were
implemented in the LII mode. Their tangible effects were presented in Table 1.




                                               88
Table 1: Investments in the area of infrastructure.
                                        tangible effect           outlays in thousands PLN
                                   system          households      gmina           initiator
Water-line system               66,698 rm*              1,375        5,293             2,976
Sewage system                   129,843 rm              4,852       47,301             7,454
Waste water treatment plants              5                          1,714                 0
Roads                             7,644 rm                             307               123
Recreational facilities                   5                            450               412
TOTAL                           204,185 rm              6,227       55,064           10,965
* running metres
Source: own study.

Additionally, in the years 1994-1995:
 power network: 1,460 rm and 50 households connected,
 gas network: 12,816 rm and 190 households were connected.
In the years 1994-1999 among the investments made in the LII mode there was a noticeable
increase of tasks in the area of developing a sewage system, particularly on the gmina
outskirts.
An analysis of the achieved results shows that through the implementation of tasks in the LII
mode, the development of the Kraków peripheral areas was accelerated by approximately ten
years. The community initiatives serve not only to improve the quality of service delivery, but
also to accelerate the processes of development in Kraków.
The social aspect remains a significant achievement of the project, next to the tangible effect
in the form of infrastructure. The social aspect consists in consolidating local communities
and their increasing involvement in community issues. Citizens from various parts of Kraków
meet and exchange experiences within the framework of the project. A new form of festivity
developed, called “Peryferiada Krakowska” – it is an event organized annually in a different
place in Kraków, where an investment serving citizens has been put to use. What is also
significant is the fact of promoting the idea of public-private co-operation in the
implementation of investments important for local communities.

III. RECOMMENDATIONS FOR REPLICATING BODIES
A systemic approach to the problem is necessary, a clear and detailed procedures of task
implementation facilitate co-operation with local communities.
Depending on the major objectives of local initiatives, it is necessary to develop detailed
investment priorities (at present water-line and sewage systems, in future tasks related to
recreation, sport etc.).
The problem of the initiative’s legal status should be solved by means of a council resolution
on the directions of the board activity in the area of organizing, implementing and co-
financing local investment initiatives.
The implementation of the programme is continuous, modifications should be introduced on
the basis of gained experience and proposals put forward at periodical meetings e.g. in the
form of local conferences.
Conferences, seminars, and contacts with representatives from various Polish cities confirm
that the project base is a very universal one. It can be (and is) successfully applied by other
local self-governments. It seems that the so called “Kraków model” is particularly popular in
the gminas where the budget must satisfy many areas of life and cannot make up for years of
negligence in the infrastructure in a short term.
The most important hindrance in the implementation of LII are inadequate funds at the
disposal of the gmina. The line of committees with construction permits and definite funds is
still bigger than the gmina financial capacity. Citizens are discouraged by construction

                                                89
permits losing validity. The situation would be optimum if the amount of funds assigned from
the gmina budget were the same as the amount of costs of tasks proposed for implementation
in the LII mode.




                                             90
 PUBLIC CONSULTATION & PARTICIPATION
      – CITY OF NAGA, PHILIP PINES

I. GENERAL DATA
Management area: Public Participation and Stimulation of Social Development,
Name of the practice: Successful implementation of public participation initiatives,
Indicator: Public consultations and participation in decisions on all important matters
concerning community,
Indicator stage: 5,
Implementing unit: Municipal Office,
Name and address of the implementing unit:            City Planning and Development Office
                                                      Naga City Hall
                                                     Juan Miranda Avenue
                                                     Naga City
                                                     Philippines
                                                     www.naga.gov.ph

Date of implementation: 1996-1997
Contact person:      Willy Bprilles
                    City Planning and Development Office
                     Naga City Hall
                       Juan Miranda Avenue
                      Naga City
                      Philippines
                      63-54-473-2136

Place of replication: Naga School Board, Negros Occidental, neighbouring towns and
unknown others that have visited to observe the success of Naga City.

II. DESCRIPTION

1. CHARACTERISTICS OF BEST PRACTICE
In local governments that are well advanced in public participation, conclusions from the
public participation efforts are systematically analysed and considered in the decision-making
process. Naga does this, and goes one step further, by actually decentralizing some decision-
making to the community. In addition, these local governments have one or more advisory
bodies that are consulted on issues of importance to the community. Naga formalized this by
establishing an ordinance which established a “People’s Council”, the role of which goes
beyond mere consultation, and is described under step 2 of the implementation method. In
stage 5, communities do not make important decisions without consulting with the public and
without trying to resolve conflict and discord. In Naga, the requirement for public
participation on important issues has been enshrined in law, and furthermore, Naga has a
number of trained facilitators, both on staff, and in NGOs that are trained to handle conflict in
public consultations. Finally stage 5 local governments utilize public opinion surveys as
required. Naga uses public opinion surveys as required, and was the first local government in



                                               91
the Philippines to hold a referendum (1993), through which the people adopted three crucial
policy measures.


2. GENERAL DESCRIPTION OF THE IMPLEMENTING UNIT
Naga is centrally located in Bicol, a region comprising the southernmost portion of the
Philippine island of Luzon, which is approximately 380 kilometers, or 1 hour by air, from
Manila. The population is 137,810 (year 2000 census), with a growth rate of approximately
1.6% per annum. Naga is the core of Metro Naga, a metropolitan area composed of Naga and
14 other surrounding municipalities, with a total population of 612,576. Naga is the heart of
Bicol, being the region’s center of trade and commerce, education, religion and culture


3. PROBLEMS SOLVED
Naga City, Philippines has been recognised as having an award-winning best practice in
public participation for planning initiatives. The Naga City Participatory Planning Initiatives
represent serious and concrete efforts of the City Government of Naga to actively involve the
citizens of local communities and interest groups as stakeholders to undertake action plans on
key planning, health, and environment concerns.
The main problem confronting the City Government was its limited capability to undertake,
manage and coordinate participative planning that would be consistent with salient provisions
of the Local Government Code of 1991. The 1991 Local Government Code mandated the
need for greater participation of the people – through NGOs, public organizations and the
private sector in local governance. While the city had the needed resources and technical
capabilities to implement development programs and projects, it had very limited skills to
initiate consultations with its constituency. The City Government saw the need for installing
systems and mechanisms that would sustain the development and implementation of its
successful programs and projects. It was argued that institutionalizing community
participation and involvement of stakeholders in current as well as proposed programs and
projects, was key to sustainability. In short, the City Government and the NGOs were
performing their roles in relative isolation insofar as local participatory development planning
is concerned (planning without public participation).
This concern was overcome by consultant technical assistance that facilitated the transfer of a
highly participative planning techniques from the consultants to a local corps of trainers and
facilitators. Technical assistance provided a select group of city and NGO personnel with
necessary skills to engage people and stakeholders in meaningful participation in the
development of action plans on the three key areas for government action. The technical
assistance was extended under an USAID Project.
To ensure the sustainability of City programs and projects, the City has since institutionalized
systems and mechanisms to encourage public participation in local development planning and
has developed in-house capability of facilitating participative planning. In addition, the city
legislature came up with its revolutionary "Empowerment Ordinance of 1996." The ordinance
established the Naga City People's Council (NCPC) – the umbrella organization of NGOs and
Public Organizations in the city envisioned to create greater people participation in
governance, including local development planning.


4. DESCRIPTION OF APPLIED TOOL
The City institutionalized public participation systems and mechanisms in local development
planning through its “Empowerment Ordinance”, which established by law the requirement

                                              92
for public participation. In the same Ordinance, the City established the “People’s Council”,
thereby ensuring an organizational structure to provide the input of NGOs. The capability to
undertake effective public participation was developed with the assistance of specialized
training in public participation techniques. The system was institutionalized by “training the
trainers”, who have since had the capability of training others in techniques of public
participation, thereby creating long term sustainability.


5. DESCRIPTION OF THE IMPLEMENTATION METHOD
Step 1. In 1991, the Local Government Code was passed, which mandated the need for
greater participation in local governance by citizens through NGOs, public organisations, and
the private sector.
Step 2. City Council passed an “Empowerment Ordinance”, which mandated the city to
implement public participation to ensure transparency and accountability in the way
government does business.
Under the Ordinance, a “People’s Council” consisting of duly accredited NGOs and public
organisations in the city was established. This Council:
        appoints NGO representatives to local special bodies of the city government,
        observes, votes and participates in the deliberation, conceptualization, implementation
and evaluation of projects, programs and activities of the City Government,
        proposes legislation, participates and votes at the committee level, and,
        acts as the people’s representatives in the exercise of their constitutional rights to
information on matters of public concern and of access to official records and documents.
The Empowerment Ordinance was both historic and revolutionary because it deconcentrated
political power to the community and equalized opportunity for the very capable but non-
political community leaders to participate in local governance.
Step 3. With the Empowerment Ordinance in place, the following issues to be solved
therefore emerged:
How can people and stakeholder participation be ensured in sustained local development
    planning?
How can the City Government, particularly its planning office, develop capability to
    undertake, manage and coordinate participative planning in the spirit of the Empowerment
    Ordinance?
The Empowerment Ordinance mandated public participation in planning matters. The City
recognized that it had the technical capability to carry out development programs and
projects, but realized it did not have the capability to undertake and manage public
participation in its planning processes. The City decided to seek technical assistance.
Step 4. At about the same time, the City conducted a prioritization of planning issues, and
arrived at four priority areas within the 11 issues identified.
Step 5. The City then engaged technical assistance to train staff of the City (and surrounding
municipalities), the University, and NGO staff in effective public and stakeholder
participation techniques, which came from the USAID’s GOLD (Governance and Local
Democracy) project. The training in ”Technology of Participation” was a state of the art
facilitation methodology that enabled groups representing diverse constituencies to share
basic assumptions, define common ground, identify feasible approaches to problem solving,
and move towards concrete actions. It consisted of three methods for different size
participation events, including small groups, workshops, and action planning for larger
groups.
Step 6. With participation training completed, three major projects were then conducted with
public participation utilizing the new techniques. The projects included a watershed strategic

                                              93
management plan, an ecological solid waste management plan, and a revitalization of the City
Health Board.
Step 7. The requirement for public participation on all issues of importance was then
enshrined in city policy.
Step 8. With the transfer of skills and knowledge of participation techniques, these skills were
subsequently utilized in numerous projects, not only planning projects. Advanced training for
selected staff members “trained the trainers”, who as a result, have the capability of training
others in techniques of public participation, thereby creating long term sustainability. The
local capability to manage and coordinate participative planning has thus been
institutionalized.


6. COST-BENEFIT CONSIDERATIONS
The main costs for the project were the costs of training, which were absorbed by the USAID
project. These costs are therefore not known. However, there were five training sessions in
total held in the Naga area, each of them lasted for two days, and each had 2-3 trainers.
Several of the trainees later went to Manila for advanced training. The trainees later trained
other city and NGO staff, and there is now local capability of providing the training as
required. From this point of view, the original costs of training absorbed by USAID have been
very cost-effective, as public participation techniques and training in those techniques have
become institutionalized. On balance, even if Naga City had to pay for the full costs of the
original training, it is very clear that all of the benefits that have since accrued to Naga city
since that time, have far exceeded the costs of training. Naga City has received numerous
international, national and regional awards, which are listed on their web site.

III. RECOMMENDATIONS FOR REPLICATING UNITS
The following are the recommendations the from Naga City Participatory Planning Initiatives’
implementation:
– Effective participative planning should be founded on a strong, shared vision of
    participative democratic principles. In Naga's case, the "Empowerment Ordinance" set out
    local public policy of consultation and community empowerment principles intended by
    the 1991 Local Government Code.
– Local development planning is a subject area where greater citizen and stakeholder
    participation in local governance can be most easily engendered and made possible.
– Public consultations can be mainstreamed through wide-ranging multi-level consultations at
    the committee, village and city levels. On the whole, these consultations are an effective
    strategy for encouraging and increasing stakeholders’ support for local development
    programs, projects and activities.
– In the absence of local capability in participative planning, there are tools and technologies
    available but these must be transferred effectively to local development planning actors
    for it to matter and become meaningful. Local government must recognise when it does
    not have the expertise, and seek out professional training to assist in developing the
    expertise. “Training the trainers” and enshrining the requirement for participation in
    important matters will institutionalize public participation.
Partnership systems and mechanisms enable local initiatives to access community resources
(particularly the private sector), thereby augmenting the city's limited resources. In the case of
Naga, partnerships were formed with NGOs and University, who often provide trained public
participation facilitators to assist on projects. The People’s Council was a mechanism to
access community resources (NGOs and the private sector).



                                               94
    D E V E LO PM E N T O F B IL A TE R AL C OMM UN IC A TIO N
        A ND P UB LIC PA RTIC I PA TIO N – TH E G MI NA
                        O F N OWA D Ę BA
I. GENERAL DATA
Management area: public participation and stimulating social development,
Name of best practice: development of bilateral communication and public participation in
the gmina of Nowa Dęba,
Index: informing citizens,
Index stage: 3 with elements of 4 and 5,
Implementing Organisation: the City and Gmina Office,
Name and address of Implementing Organisation:
                                         The City and Gmina Office of Nowa Dęba
                                         ul. Rzeszowska 3
                                         39–460 Nowa Dęba
                                         http://nowadeba.npl.pl
Implementation date: starting in April 1999,
Contact person: Wiesław Ordon – Gmina Secretary, tel. (015) 846-26-71 (to 73),
Name of place(s) where the best practice has been duplicated: a similar programme was
implemented in the Gmina Office of Namysłów.

II. DESCRIPTION
1. GENERAL DESCRIPTION OF BEST PRACTICE
The basis for action with regard to building the grounds for bilateral communication in the
gmina of Nowa Dęba was the action plan developed with the participation of external
consultants, enclosed as appendix 8 of this document. The plan specifies the objectives,
detailed tasks for achieving them, results to follow from implementing each task and the task
implementation deadline. The major objectives of the plan are:
   building an organisational basis of the system of social communication in the gmina and
    ensuring efficient communication in the office,
   improving the system of information on the office work, i.e. improving communication
    TOWARDS CITIZENS,
   collecting information from citizens, researching public opinion, increasing public
    participation, i.e. building a system of communication FROM CITIZENS,
The efforts of gmina employees and co-operating consultants focused on preparing this plan.
Obtaining positive results was the result of convincing key persons in the gmina (particularly
Mayor and Secretary) that the activities in the area of social communication and public
participation are valuable. This conviction was further strengthened during meetings and
workshops, which covered all office employees and Council representatives.
So far, the plan has been better implemented with regard to the components, which directly
depended on organisational changes and projects inside the office, the implementation was


                                               95
weaker or nonexistent in the areas, which assumed citizens involvement and participation.
Therefore it can be regarded as an example of best practice mostly in the area of activities
oriented towards informing citizens. However, we present the whole project here, since at the
planning stage it was comprehensive, and failures to implement some projects are also
instructive.
2. DESCRIPTION OF ENTITY
Undertaking work on developing and implementing the programme of social communication
and public participation was planned to serve the purpose of increasing public participation in
preparing the strategy, and then winning public approval at the implementation stage. In the
course of programming work, the gmina authorities quickly became convinced that the
development of social communication and public participation should be an independent,
important and long-term project implemented by self-government.
Nowa Dęba is an urban-rural gmina in the Podkarpackie Voivodship, inhabited by
approximately 20,000 people. The gmina occupies the area of 142,52 km2.
Nowa Dęba was created 60 years ago as an ammunition factory settlement built under the
programme of constructing the Central Industrial Region. After World War II, the factory
settlement connected with the “Dezamet” Metal Plants developed into a town. In the 1990s, as
a result of transformation, four companies were created out of the Plants. The town also has
three bank agencies, small commercial and service businesses, an invalids’ cooperative, and a
military base with one of the major firing grounds in Poland.
The diagnosis of the gmina and office carried out with regard to the level of social
communication and public participation enabled painting the following picture of the entity at
the start of the project:
1. There is a need to take action in the area of social communication and there is already
   some output in this regard, although our interlocutors uniformly stressed the fact that these
   actions are insufficient and have not been integrated into a coherent programme.
2. The gmina does not have a separate position for co-ordinating activities related to
   communication with the local community, which to some extent follows from the size of
   the gmina. The duties in this respect are assigned to the gmina Secretary.
3. The gmina has a local paper called “Nasze Sprawy” [Our Affairs] issued by the gmina
   office, the gmina Secretary is its editor-in-chief. There have been attempts to hand the
   paper over to independent editorial staff, but without success. The paper is issued
   quarterly, it contains information on the gmina life, the Council and Office work. It is free
   and quite popular with the citizens (its issue had to be increased from 1000 to 2000
   copies).
4. There are irregular contacts with the regional press, but so far there are no rules of co-
   operation.
5. There is a large network of the office’s information showcases, but the Mayor emphasises
   the need to find methods of highlighting the information placed in them.
6. The gmina has just completed work on its website and is in the process of initiating e-
   mail.
7. There has already been an independent attempt at carrying out a survey on the subject of
   the vision of the town, gmina and directions of development. This form generated great
   response: 600 out of the 2000 questionnaires placed in public places were returned. This



                                               96
   form may therefore, after some more development, arouse interest of the citizens and the
   authorities consider it to be important.
8. The meetings of councillors and representatives of the Board with the citizens are more
   often held and frequented in villages, in the town such activity is weaker. It is planned to
   introduce permanent duty hours of Councillors.
9. The Council sessions are open and if there is discussion of conflict issues (e.g. school
   reform), many citizens participate in them. Minutes from the Council sittings are available
   on request, although there is no practice of placing them in public places (e.g. libraries).
10. There are social organisations in the gmina, but there is still no system of co-operation
    between them and the gmina authorities. The authorities are open to change in this
    respect.
This diagnosis became a starting point for programming work whose basic assumption was
using the existing assets and incorporating them in the framework of the programme in
progress.

3. PROBLEMS OR ISSUES SOLVED
The detailed scope of the tasks assigned for implementation is included in the enclosed plan
of action. After two and a half years it is possible to conclude that the plan has been largely,
although not fully completed. What turned out to be important (according to the gmina
Secretary, who was consulted about the level of implementation) was creating a separate post
for social communication in the gmina, although its performance must be still improved.
Tasks related to the first and second objective of the plan were implemented (“Building the
organizational base of the system of social communication in the gmina and ensuring efficient
internal communication in the office”, “Improving the system of information on the office
work”), with the exception of improving direct contacts of the authorities with citizens, whose
implementation is evaluated negatively.
So far the tasks connected with the inflow of information from citizens and public
participation have not been implemented successfully, although initially there was
considerable understanding of the needs in this regard and there were some independent
attempts at learning the public opinion (there is only press monitoring). Apparently these were
more difficult tasks, requiring activity also on the part of social partners. Such activity and co-
operation were not achieved. The “good practice” presented here is not, therefore, an ideal
practice. It is presented because it illustrates well the area of activities which may be
undertaken and implemented with consistency and involvement after performing some
essential activities aimed at encouraging NGOs to activeness and co-operation. The practice
also shows that it is easier to undertake and implement activities which depend directly on the
activeness of the Board, but a lot of attention should be paid to the development of civil
society in the gmina or powiat, so that the tasks oriented towards improving public
participation do not meet with social indifference.

4. DESCRIPTION OF THE IMPLEMENTATION METHOD
The project was comprehensive and assumed implementing a series of techniques improving
social communication and public participation. The axis of the project was preparing, with the
participation of the Board members and office employees, a plan of action (enclosed) which is
the best characteristic of the applied “tool”. Preparing the plan of action was preceded by
workshops carried out by consultants, whose aim was to provide knowledge on the area of
social communication and possible techniques and to build positive approaches and
motivation for implementation. Consultants also conducted workshops resulting in the

                                                97
establishment of the basic challenges and priorities, and identification of local assets. The
preliminary version of the plan was drafted by consultants on the basis of the arrangements
made at workshops. The final version of the plan included corrections and changes introduced
by the gmina authorities and was approved for implementation. The detailed progress of the
implementation process is presented in the next point.
5. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD
Step 1. Initiating co-operation.
On April 21 1999, after preparations and study, there was a meeting of the MSAP experts
with the participation of the Mayor, Board and Council members, and directors of the gmina
office departments. The meeting enabled partners to meet and to define mutual expectations.
Moreover, the MSAP consultants held interviews and talks with the Mayor and
representatives of the Board and Council. The talks were on the subject of a set of issues
prepared earlier by the team.
During this first visit an agreement was reached with the persons in charge of the gmina (the
Mayor, Board members, the Chairperson and members of the town Council, directors of
departments) on the essentials of bilateral communication and participation and the guidelines
of co-operation with consultants. Emphasis was put on the interactive formula of developing a
plan of action and the need for basing this plan on clearly defined tasks, deadlines, persons
responsible and assigned resources. It was also agreed that there was a need for monitoring
activities so that tangible effects of co-operation would be achieved within 6 months.
As a result of the first visit the following results were achieved:
1. The gmina authorities and its key employees were familiarised with the methodology of
   bilateral flow of information informally described as “Reaching out to people”.
2. Tangible benefits from applying the methodology in everyday work of the gmina staff
   were shown.
3. Models of participation in the process of efficient, partner communication between the
   gmina and local community were presented.
4. A common understanding of the strategy of „Reaching out to people” was worked out
   with the gmina representatives.
5. A diagnosis of information policy and social communication in the gmina was arrived at.
6. The approval by gmina authorities of the methodology and the concept of work under the
   project of „Reaching out to people”.
Arrangements were made together with the gmina as to the organization and running
workshops for the gmina staff. It was arranged that the workshops would be organized in the
gmina office. The first day of the workshops was addressed to the gmina Board,
representatives of the gmina Council and directors of departments. The remaining office staff
would take part in the second-day of workshop.
During the first visit a positive approach towards the programme and the team of consultants
was obtained, as well as the Mayor’s and Secretary’s personal involvement in the
implementation. Agreement on the general shape of the project was achieved.
Step 2. Workshops on communication and initiating work on the plan of action.
The next stage of work consisted in preparing and running workshops which served the
transfer of the knowledge on bilateral communication in the gmina and the development of
the grounds for constructing a plan of action. Presentation materials on communication and

                                                98
participation in the gmina were prepared, as well as material devoted to the practical aspect of
conducting a poll in the gmina.
The workshops were run by the MSAP experts in two rounds. Individual subjects of
workshops were as followed:
1. The principles and forms of social communication.
2. Information policy, organisation of direct contacts with citizens, co-operation with social
   organizations, the organization of co-operation with the media, social consultations about
   the budget etc.
3. Workshops – social communication in the gmina.
4. Group work. Identification and analysis of weak and strong points. Drawing up a list of
   essential activities to be undertaken.
5. Internal communication in the office: introduction and group work.
6. Summing up the workshops.
The first day of the workshops was addressed to the gmina Board, representatives of the
gmina Council and directors of departments. The remaining office staff took part in the
second-day of workshop. The results of the workshops may be summed up as follows:
1. The gmina authorities and staff were familiarised with the instruments and techniques of
   social communication in the gmina.
2. A review of the system of communication with the community and inside the office.
3. A set of necessary activities which must be taken into account when constructing a plan of
   action related to improving the system of social communication was developed together
   with the gmina authorities and staff.
4. A SWOT analysis concerning the communication with the community and inside the
   office was carried out.




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Table 1: SWOT analysis of internal communication in the office.
Strengths                        Weaknesses              Opportunities                  Threats
Good atmosphere among     No meetings of the Mayor     Building a computer network      Outflow of personnel
departments               with the staff               Readiness to bear the            Underestimating the staff
Young managerial personnelNo motivation and evaluation responsibility for decisions
Flexibility of employees  system in the office
Good discipline           No clear system of promoting
                          employees
                          No software and computer
                          network
                          No system of training and
                          improving qualifications
                          Centralised decision-making
                          No formal procedures of
                          communication between
                          supervisors and employees
                          and among departments
Source: MSAP study under the LGPP, 1999.



Table 2: SWOT analysis of social communication in the gmina (office-citizens).
Strengths                        Weaknesses              Opportunities                  Threats
„Nasze Sprawy” Quarterly  No involvement of              Printing „Nasze Sprawy”        Lack of funds
Open Council sessions     councillors in communication   more frequently                Apathy of citizens
Organising village meetings
                          with citizens                  Increasing the community’s
Network of notice boards  Cable television not           influence on the paper’s
Website                   participating in informing     content
                          about the office activities
Consultations of the budget                              Appointing a spokesperson
Good information on the   No independent newspaper       for social communication
                          No training on social
Council sessions (radio, radio                           Comprehensive
relay centre, posters)    communication                  telephonisation of the gmina
Questionnaires            No regulation regarding the
Employees open to citizensissue of co-operating with
Frequent direct contacts  NGOs
                          Promotional policy
                          (organising entertainment
                          events for citizens)
                          No co-operation between the
                          gmina authorities with the
                          business milieu (economic
                          sphere)
                          Insufficient office premises
                          (Councils sittings)
                          Contacts with the media
                          No co-ordinator of
                          informational and
                          promotional activities
Source: MSAP study under the LGPP, 1999.



The above SWOT analysis is a sum of views and opinions created during the workshop with
the town authorities and office staff. On some matters the positions of the gmina authorities
was different from the evaluations formulated by the office staff.
The effects of the workshops formed a basis for working out a plan of action regarding social
communication in the gmina. Drafting a preliminary version of the plan based on the
guidelines formulated during the workshop was undertaken by the team of MSAP consultants.
Step 3. Drafting a plan of action and its approval by the gmina authorities.



                                                     100
Thanks to recognising the basic problems connected with social communication during the
workshops in Nowa Dęba, and working out the directions of solving them, it was possible to
start drawing up the work draft of the plan of action. The draft was prepared by the MSAP
consultants. Then the authorities of the gmina were consulted and expressed their opinion
about the work draft. Next, the final draft of the plan of action was prepared, developed
graphically and copied. Information materials related to drawing up a catalogue of services
provided by the gmina office and units were also prepared.
The final draft of the plan of action in the area of social communication was presented at the
workshop carried out in the gmina of Nowa Dęba on June 9, 1999. The participants in the
workshop were: Board members, representatives of the Council and directors of departments
and gmina units. The plan of action was passed and approved for implementation by the
gmina authorities.
Step 4. Implementing and monitoring the plan of action.
The plan of action in the area of social communication prepared by the MSAP experts and
gmina authorities was quickly approved for implementation. The gmina received support
through continuous telephone consultations and opinions on the documents sent to the MSAP
consultants. As part of advisory help with implementing the plan, the MSAP experts went on
a work visit to the gmina in the early stage of the implementation. With hindsight it can be
said that such co-operation should take longer and lead to dealing with all the tasks specified
in the plan, especially in the area of initiating questionnaires and organizing co-operation with
the non-governmental sector.
6. BALANCE OF INPUTS AND OUTPUTS
The cost of consultants’ work was covered by the LGPP. The project budget was 30,000 PLN.
The gmina implemented the project within the framework of the staff’s professional duties.
Appointing an independent post for social communication and promotion is an additional
costs which is a result of the implementation but which is not the cost of implementation.
The balance of activities in the area of social communication is positive by nature (although
difficult to measure) since the activities are not very expensive and usually consist in adding
the participation and communication components to other gmina activities and in bearing
some costs of grants for social organizations (usually already present in the form of subsidies
in the gmina budget). The benefits in the analysed case are difficult to measure quantitatively,
this would be easier if co-operation with organizations had been developed and if social polls
had been conducted. However, it is difficult not to evaluate positively the fact that
information flowing to the citizen has improved through new notice boards and a book of
services, which describes precisely the manner of dealing with issues in the office
(http://nowadeba.npl.pl/uslugi/uslugi_spis.html). The practice in the area of social
communication and public participation in the presented gmina requires further development
and improvement, although important steps have been made, which must be appreciated.
Consequently, it is not an ideal practice, but in some respects (planning) it brings solutions
and ideas which are worth disseminating. The knowledge of inadequacies turns our attention
to the more difficult aspects of the implementation.
On the basis of the available information which was not gathered with a view of measurement
with the help of the currently accepted system of indexes, it can be said that after the
implementation of the programme, the gmina of Nowa Dęba is at the following level as
regards public participation and social development:




                                              101
1. Public participation in the budget: involvement of the local community in selecting
   investments, drawing up the budget and evaluating its execution – Stage 2.
2. Supporting social initiatives and co-operation with social, economic and agricultural
   organisations – Stage 2.
3. Social consultations and citizens’ participation in decisions concerning all the
   community’s important issues – Stage 2.
4. Informing citizens – Stage 3 with elements of 4 and 5.
All stages recorded an improvement as a result of the implementation, particularly Stage 4.
III. RECOMMENDATIONS FOR REPLICATING BODIES
Inadequacies of the presented case highlight the need for taking actions leading to
strengthening the non-governmental sector. Frequently, especially in rural gminas, it is
underdeveloped, not active and oriented to its internal affairs. The authorities should
encourage and stimulate social initiatives, support them with infrastructure and act towards
strengthening their prestige.
Also the co-operation with local economic milieus should become a subject of special
treatment and a strongly emphasized planned task. The ideal target solution is trilateral co-
operation of the authorities with social and economic organizations towards solving local
problems. In this area, Nowa Dęba has not achieved results yet, although the confrontation of
the actual state of affairs with the assumed plan turns the attention of the local authorities to
the deficit in the area of obtaining information from citizens and public participation. The plan
should be extended by relations with the local economic milieus, including agricultural
producers.
From this perspective, the presented plan of action may be extended by the following key
tasks:
   Creating a local economic forum,
   Creating a forum of NGOs,
   Finding planes of co-operation among the three partners.
The implementation of the system of grants for the NGOs involved in the actions for the
objectives regarded as important for the local community should be a good start of this co-
operation. The general formula of the grant system may be inspired by the familiar and well-
functioning solutions in the conglomeration of Gdynia, Gdańsk and Sopot, and several other
Polish cities. It would be an innovation if the local economic milieu got involved in the
financing of the grant fund, with the simultaneous participation of this milieu’s
representatives in the auditing committee announcing the results of the grant competition.
If it were possible to implement the project, significant secondary effects could be achieved:
      Prior to each grant competition (recommended twice a year) a list of priorities must be
        drafted. This should take place with the participation of Councillors, the business
        sector and NGOs. This naturally stimulates public participation in the process of
        managing the gmina issues. It can also be an opportunity of joint civil debates,
        integrating the town authorities, the business sector and NGOs.
      Organisations may join forces to prepare joint grant applications.
      At least once a year the co-operating parties should approve their representatives for
        the auditing committee, which stimulates internal integration of milieus.
      The constitution of the „association of associations” should stimulate systematic co-
        operation of NGOs and thus strengthen the infrastructure of civil society.


                                              102
It may be necessary to train NGOs and gmina Board representatives in the area of designing
activities and filling in grant applications, but this may consequently stimulate the activity of
the non-governmental sector as well.
More attention should be paid to encouraging Councillors and the gmina Board to intensifying
their contacts with citizens, sometimes training in the area of improving the technique of such
contacts should be organised.
The key issue in the case of building social communication in the gmina is the office
management and staff’s approach to „reaching out to people”. In the work of consultants,
especially in the process of preparing workshops, a lot of emphasis should be put on this
approach with regard to three aspects, related to cognition, emotion and evaluation, and
activity.
On the cognitive plane, it is very important to transfer the appropriate knowledge on the
technique of activities fostering good communication, this is the role of workshops initiating
the work on the plan of action. The selection of these techniques, accepted by partners,
becomes the plan of action. Therefore they cannot be abstract ideas but specific tasks which
may be implemented and evaluated.
The transfer of know-how concerning social communication alone cannot result in actions if
there are no people involved in the issue and appreciating its significance – the leaders of
change. What is particularly important is the involvement of the gmina management, with the
Mayor leading the way. Without such involvement innovations usually are marginalized and
in consequence the concepts remain only on paper.
Finally, there must be a will to take action in the gmina. In the case of the aspect discussed
here, funds are less of a hindrance than a lack of will to act. What favours initiating real
activities is a well-stimulated plan, based on a logical set of tasks, defined implementation
deadlines and results enabling the control of the implementation,.
It is important that the plan of action should be formally approved. It then becomes a
document steering the actions taken within the framework of various functions performed by
the office. It also makes the monitoring of the implementation possible. In the discussed case,
the approved plan of action was also a basis of reviewing the implementation stage during
advisory and monitoring visits in the course of implementation.



       E CO NOMI C D E V E LOP ME N T I N FO RM AT ION –
       M ULTI PLE F O RM A TS – C IT Y O F S T. A LBE RT
I. GENERAL DATA
Management area: Economic Development
Name of the practice: Successful implementation of complete economic development
data/information in multiple formats
Indicator: Creation of information resources for economic development needs
Indicator stage: 5.
Implementing unit: Municipal Department
Name and address of the implementing unit:          Economic Development & Tourism
                                               City of St. Albert
                                               71 St. Albert Road
                                               St. Albert,


                                               103
                                                Alberta, Canada
                                                T8N 6L5
                                                Phone: (780) 459-1631
                                                Fax: (780) 460-1161
                                                E-mail: info@st-albert.net
                                                www.city.st-albert.ab.ca

Date of implementation: 2001,
Contact person:      Larry Horncastle
                    Department of Economic Development & Tourism
                    City of St. Albert
                    71 St. Albert Road
                    St. Albert,
                    Alberta, Canada
                    T8N 6L5
                    Phone: (780) 459-1631
                    Fax: (780) 460-1161
                    E-mail: info@st-albert.net

Place of replication: An exact duplication is rare. However, the Centre Wellington Chamber
of Commerce with a population of 21,307, also has an excellent presentation of information
on their web site which may be found at http://www.ferguselora.com/facts.htm. This site
received an award from the Economic Developers Association of Canada for communities
with small budgets.
See also:
    Richmond Hill, Ontario, Canada: http://www.richmondhillonline.com/main/default.htm
    For an example of searchable/sortable information on-line for multiple communities see:
    http://www.targetnovascotia.com/


II. DESCRIPTION

1. CHARACTERISTICS OF BEST PRACTICE
Information is the foundation of local government economic development activities, as
information is a key ingredient in business decision-making. The objective therefore is to
have information that is complete and easily accessible to business decision makers to assist
them in making decisions that are favourable to the local government area. In the most
advanced cases (stage 5), complete statistical data and information related to business location
decision-making is kept current for the local and regional economies, and is available in
multiple formats, such as printed form, CD-ROM, and World Wide Web.
There are several Canadian best practice examples that illustrate stage 5 characteristics, some
of which are small communities of 20-50,000 in population. At the recent annual conference
of the Economic Developers Association of Canada, the conference theme was best practices
in economic development. A number of communities were recognised for their efforts in this
area. For example, the City of St. Albert, Alberta, with a population of 51,716, not only won
the first prize for “use of information technology” in organizations with annual budgets less
than $250,000, but also won “Best in Show”, beating other category winners from 26
categories. Their entry entitled “Wired and Ready for Business” was a compact disc
presentation of:
– the advantages of St. Albert,


                                              104
– a link to an on-line business directory (in addition to a directory on disk),
– an innovative presentation of the community profile on the disk,
– and a visual presentation of the city in both map and 360 degree views of St. Albert.

Design work prepared for the CD-ROM was also utilized on the City web site that contains
the much of the same content. Hard copy publications are limited to copying the necessary
information upon demand.


2. GENERAL DESCRIPTION OF THE IMPLEMENTING UNIT
The City of St. Albert is a suburban city adjacent to the larger City of Edmonton. It is a fast
growing city in terms of population, and is trying to grow its employment base as well. The
City’s Department of Economic Development and Tourism has four full time staff, and two
summer students. The 2002 budget of the Department is approximately $350,000. An
economic development advisory committee is utilized to provide general feedback on the
economic development program.


3. PROBLEMS SOLVED
When the new Director of Economic Development took over control in August 1999, he
found economic development communications material in disarray. A marketing and
communications audit was undertaken. The economic development publications presented
mixed images and messages about St. Albert and were costing the City a lot of money with
questionable results.
“Wired and Ready for Business” addressed a number of economic development information
needs in one award-winning package that is inexpensive to produce, and to disseminate. It is a
much more effective and efficient means of communicating economic development related
data and information about St. Albert than previous methods. One of the business audiences
particularly targeted was the creative sectors of high tech, such as multi-media, software
development, animation, etc. The promotional product therefore had to appeal to the targeted
industries.


4. DESCRIPTION OF APPLIED TOOL
“Wired and Ready for Business” delivered in one small CD-ROM package:
    – promotional information of the type normally found in an economic development “lure
        brochure”,
    – a link to an on-line business directory (for the most complete and up to date
        information), or to a business directory on the disc if internet access is not available,
    – an innovative presentation of the St. Albert community profile.
This unique package therefore effectively replaces three hard copy publications. The City
supplied the information it wanted to communicate, and hired a creative graphics/multi-media
development firm. The City utilized the services of this young company (run by young
entrepreneurs) located in an incubator, to design the product. No documentation or reports
were produced related to this project other than the product itself.
The CD-ROM is used for promotional purposes including personal contacts, business
attraction, business enquiries, and trade shows.




                                               105
5. DESCRIPTION OF THE IMPLEMENTATION METHOD


Step 1. Decide on the target audience.
Economic development officials first decided the target audience for the communication tool.
In the case of St. Albert, focus groups were held with a number of companies that located in
St. Albert to determine why they chose St. Albert as a business location. From the focus
groups, staff knew that quality of life was one of the key selling features of St. Albert, and so
quality of life is promoted on the CD-ROM. St. Albert decided that the product would focus
on development of the commercial vs. residential sector, with a particular focus on the
creative sectors of high technology.
Step 2. Gather and/or update the necessary data/information.
The City then gathered/updated the information that would be the content of the CD-ROM. In
this case, information for the business directory and the economic profile was updated. These
are two of the most common types of economic development publications, and there are no
special requirements for CD-ROM vs. print production. Information for the promotional
aspects of the product needed to be created under the direction of the City of St. Albert.
Step 3. Select a creative multi-media production firm.
A creative multi-media firm needs to be selected for the project. In this case, the City chose
(without competition), a small, new firm within the City. The City took a significant risk
going with the inexperienced firm, but wanted to demonstrate confidence in, and to support
the young entrepreneurs. This one project gave the firm substantial experience and credibility,
and the company has now grown substantially and is a well-established firm.
Step 4. Work closely with the multi-media production firm.
Creative firms can easily produce something that does not meet the client’s needs unless there
is close cooperation between client and designers. A team approach between the City officials
and the creative artists was taken to ensure satisfaction and timely delivery. City staff
frequently visited the firm during the design process, spending a total of two man-weeks with
the firm.


6. COST-BENEFIT CONSIDERATIONS
The cost of the design for the first version of the CD-ROM product produced in 2001 was
approximately $8,000 Canadian. It is estimated that the cost for a more experienced multi-
media firm to do this work would have been approximately $15-20,000. The production run
was 500 copies, costing $2.20 per CD. During the design phase, approximately 2 man-weeks
of effort was required from City staff to work with the multi-media production firm. The
entire project took approximately 6 months to complete from the time the contract was
awarded.
A second version of the CD-ROM was produced in 2002, with updated data and information
on the disk, but keeping the same creative content. The same multi-media firm was utilized,
and the cost of the update was approximately $1,000 Canadian. 1,000 copies were produced
of the second version, costing the same price per unit ($2.20).
Other costs involved the compilation of the information to be put onto the CD. In the case of
St. Albert, an economic profile already existed, and only needed to be updated. To prepare an
economic profile where none existed, would typically take approximately 3 man-months over
a one-year period. The time required to update the profile depends upon the extent of changes
required. While a St. Albert business directory also existed before this project, there is little
difference in the time required to update versus create a new business directory. St. Albert has


                                              106
approximately 2,000 businesses. Typically, a business directory of this magnitude takes
approximately 3 man-months of effort.
The comparable printing costs for these publications are typically $5.00/copy for the business
directory, and $9.00/copy for the economic profile. Both of these publications, plus the lure
brochure ($5-10.00/copy) are all one CD-ROM costing $2.20/copy.
The benefits include lower production costs per copy as noted above. Usually with small
printing production runs, the cost/copy is very high. In the case of a CD-ROM, production
costs do not vary as significantly between small and large production runs. Therefore, smaller
more frequent production runs can be made, with the material being more frequently updated.
Having outdated economic development material (which happens often with printed material)
reflects poorly upon a community.
Additional benefits include mailing costs that are less than 50% of the equivalent mailing
costs for hard copy publications. St. Albert economic development staff found that
businesspeople at trade shows for example, would rather tuck the mini-CD into their shirt
pocket than carry heavy print publications. In the case of St. Albert, the City targeted an
industry sector with one of the industry’s own products, which is quite effective in
communicating that the City understands this business sector. The CD-ROM is very easy and
quick to update. If there are unforeseen changes that require an update before the end of the
expected shelf life, a few hundred time-expired CDs is much less expensive waste than a few
hundred time-expired hard copy publications. The City of St. Albert also believes that the
quality graphic and video presentations used on the CD-ROM are far more effective in
communicating the City’s message than a flat one-dimensional hard copy. Finally, design
work can be used on the web site, whereas the design work for printed material cannot be
used on the web.

In summary, the pre-production costs of a CD-ROM communication tool are similar or less
than the pre-production costs of the equivalent printed publications. The production costs of
CDs are a lot less than printing costs, and mailing costs are also less than half the cost of
mailing hard copies. The time and cost of preparing the content is equal for both formats. CDs
can be produced in smaller production runs without a significant cost penalty, thereby
allowing more frequent updates. Balancing costs and benefits, the CD-ROM offers lower
costs, and greater benefits than the printed publication.

III. RECOMMENDATIONS FOR REPLICATING UNITS
Other than following the steps outlined, the City of St. Albert strongly recommends that local
governments get professional help to produce quality work. The City also recommends
working very closely with the design/multi-media firm to ensure that the design that evolves
is in keeping with what the City wants, and to ensure that deadlines are respected.




                                             107
Q UE S T ION NAI RE R E S E A RCH O F TH E C LIM A TE FO R
       E N TE R PR IS E – TH E T OWN O F O S TR ÓW
                      W IE LKO POLS K I
I. GENERAL DATA
Management area: stimulating economic development,
Name of best practice: questionnaire research of the climate for enterprise,
Index: taking initiatives supporting economic development,
Index stage: 3,
Implementing Organisation: the city office,
Name and address of Implementing Organisation:
                                            Ostrów Wielkopolski City Office
                                            Aleja Powstańców Wielkopolskich 18
                                            63-400 Ostrów Wielkopolski
                                            http://www.ostrow-wielkopolski.um.gov.pl/
Date of implementation: September 1999,
Contact person:         Stanisław Krakowski – Secretary
                       tel. (062) 736-43-10
                       e-mail: rzecznik@ostrow-wielkopolski.um.gov.pl
Name of place(s) where the best practice has been duplicated: the gminas of: Chełm,
Namysłów, the powiats of: Kłobucko, Starachowice.

II. DESCRIPTION

1. GENERAL DESCRIPTION OF BEST PRACTICE
The questionnaire research of the climate for enterprise offers the authorities an opportunity to
recognise the needs and preferences of local companies. An analysis resulting from the
questionnaire provides significant hints concerning the difficulties that companies encounter
on the market, what their expectations towards local authorities are and how business people
evaluate the activity of local authorities. Using the opinions of entrepreneurs skilfully in
developing the activities of the local government will contribute both to supporting the
already existing companies and (thanks to creating favourable, pro-company conditions)
attracting new companies and investments.
The innovativeness of the questionnaire research of the climate for enterprise in Ostrów Wielkopolski
consists in:
 Addressing a wide representation of economic entities with a detailed questionnaire,
    whose most significant elements were the evaluation of the performance of public
    administration in the city and learning the suggestions of entrepreneurs concerning the
    developed economic development strategy,
 Conducting research in specific companies by representatives of the City Economic
    Development Committee, consisting of a wide representation of the city government and
    other local milieus,
 Taking account of the postulates put forward by businesspeople in the text of “Strategy of
    Economic Development of Ostrów Wielkopolski”.




                                                108
2. DESCRIPTION OF ENTITY
Ostrów Wielkopolski is a city situated in the south-east part of Wielkopolskie Voivodship.
Ostrów Wielkopolski is the fifth largest urban centre of the Wielkopolska area, with a
population of 74,728 people (1988). It is inhabited by 2.2% of the total Wielkopolska area
population and 3.9% of its urban population. It occupies the area of 42.39 km2. At present
Ostrów Wielkopolski is a well-developed centre of industry, mainly food-processing and
means of transport (repair plant of rolling stock, manufacture of special railway cars and spare
parts for rolling stock), machine-building industry, precise industry, construction materials
industry and wood industry (plywood plant). Following the 1998 administrative reform, the
city also performs important administrative functions – it is the capital city of the third most
populated powiat in the Wielkopolska area. The main source of non-budgetary funds for city
development are bonds.
At present, Ostrów Wielkopolski is a dynamically developing city. What particularly
distinguishes the city are the innovative solutions related to the gmina management and
finances, including the privatisation of companies providing municipal services and issuing
municipal bonds quoted on the Warsaw Stock Exchange.
Ostrów Wielkopolski’s prospects of development may be regarded as quite good. After the
first period of transformation, the companies key to the city economy reached a stable
position, and their present situation holds promise for the future in most cases. At the
moment, however, the city’s largest companies make modest profit and invest little, which
weakens the bases of the city’s economic existence. What may also be a problem for the city
is a lower level of enterprise than in other cities of this size. Small, and particularly medium-
sized companies are insufficient in number.

3. PROBLEMS OR ISSUES SOLVED
For the first time, the city authorities turned in an organised way to economic milieus with
questions on the status, condition and plans of local companies, but also on the evaluation of
self-government’s activity. Entrepreneurs could also put forward proposals of improvements
of the functioning of public offices, the organisation of services, or point to trouble areas
which should be reflected in the city development strategy.
The information from the report on examining the climate for enterprise provided local
authorities with significant knowledge on the condition and plans of local companies, on their
expectations concerning the future and development of the city, and on their expectations
concerning the activities of various public institutions. So far such information has been
incomplete and obtained only through direct bilateral contacts. Conducting questionnaires in a
large group of companies and guaranteeing confidentiality of individual questionnaires
enabled building a greater picture of local companies, not burdened with lies or things left
unsaid. The questionnaire results were an important element of programming the city
development for members of the Economic Development Committee.

4. DESCRIPTION OF THE IMPLEMENTATION METHOD
The questionnaire research of the climate for enterprise was one of the stages of building the
“Strategy of economic development of Ostrów Wielkopolski”. Two documents were drawn
up as a result of the work on the diagnosis: “The city profile” and “Report on the
questionnaire research of the climate for enterprise”.
The research was aimed at learning the expectations, preferences and problems of the local
business sector. Three major priorities were distinguished:
1. Deep understanding of the positions of businesspeople towards local authorities and local
    economy.


                                              109
2. Learning the plans of employers and entrepreneurs with regard to expansion or change of
    premises.
3. Achieving better agreement between the business milieu and self-government
    administration.
The research of the climate for enterprise was carried out closely according to defined
procedure, which had been discussed at a Economic Development Committee session. The
main tool was a complex questionnaire sheet, covering over 30 questions divided into 6
thematic groups:
 company history and status,
 type of business activity,
 employment and personnel matters,
 information on the company facilities,
 public services and relations with the powiat and gmina authorities,
 general impressions.
Interviews with businesspeople and company bosses were conducted by members of the
Economic Development Committee. The research covered all significant companies operating
in the city (but it was not representative). The interviews with management representatives or
owners of the selected companies were carried out in the course of two weeks. The achieved
level of returned questionnaires exceeded 80%. A result of the project implementation was a
report on the local companies, their plans, problems and evaluation of the activity of public
authorities and co-operation with them. The report was broadly discussed by the Economic
Development Committee members and the conclusions of the discussion were directly
translated into some provisions of the “Strategy of Economic development of Ostrów
Wielkopolski”.

5. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD
The questionnaire research of the climate for enterprise in Ostrów Wielkopolski was an
element of drafting the city economic development strategy. The strategy was implemented
under the LGPP. The work on the strategy began in the spring of 1999 and was supported by
MSAP consultants. The Economic Development Committee of Ostrów Wielkopolski – the
partner of external consultants in the process of drafting the strategy – was appointed and
constituted on September 7, 1999. On the same day the Committee members were presented a
proposal and principles of conducting the research. The time directly prior to this meeting was
devoted to adjusting the questionnaire sheet (provided by the LGPP) to Polish conditions and
the specificity of Ostrów Wielkopolski and to selecting local companies to be covered by the
research. The period from September 8 to October 11 was devoted to carrying out the
questionnaire research of the climate for enterprise. Keeping to such a schedule, involving
dozens of people, was possible thanks to the detailed preparations of the schedule and
monitoring its progress by the City Secretary and the MSAP consultants. The approved
schedule of questionnaire is presented in Table 1.

Table 1: Schedule of the implementation of the questionnaire research of the climate for
enterprise.
                       Presenting the principles of questionnaire research of the climate for enterprise at an
September 7
                       Economic Development Committee (EDC) session
                       Sending the City President’s letter of introduction to owners and CEOs of companies
September 8
                       selected for questionnaire
September 10-14        Interviewers telephone the selected companies to set the date of the meeting
1-2 days before the
                       Telephone call to confirm the date and hour of the meeting
meeting
September 15-27        All questionnaires should be completed, reviewed from the angle of clarity and


                                                  110
                          sent/handed in to the contact person in the city office
September 28              Sending the questionnaires to the unit dealing with their analysis
September 30 – October
                          Analysis of questionnaires, writing a report
8
October 8                 Sending the report to the City Office of Ostrów Wielkopolski
October 9                 Sending the report out to the EDC members
October 13                Presenting the report at the EDC forum, discussion and conclusions
Source: own study.

Out of the 43 selected companies, 36 completed questionnaires were received back, which
means a return at the level of 83.7%. The report presenting the research results and
conclusions was presented at the ECD session on December 13, together with the city profile.
The presentation and discussion of the documents were a basis for selecting the issues key for
the city development, proposing a development mission, and carrying out a SWOT strategic
analysis.
The steps towards preparing and carrying out the research (in the case of carrying it out
independently) are as follows:
Step 1. Appointing a person (unit) in the office responsible for preparing and carrying out research.
Step 2. Preparing research which will consist of the following stages:
 verifying and adjusting the questionnaire form (enclosed) to the specificity of the entity
   and the detailed objectives of the research
 selecting the research method: mail research (lower return of questionnaires must be
   expected), or direct interviews (conversation between the interviewer and respondent) in
   the second case the percentage of returned questionnaires will be much higher, although
   larger outlays must be taken into account (the need of hiring interviewers or entrusting
   this role to office employees or e.g. members of the gmina Youth Council) as well as the
   need of preparing information materials and training for the persons who will carry out the
   questionnaire
 selection (drawing a sample or e.g. targeted selection) of companies that will be covered
   by the research and letting them know about the fact, informing them about the purpose,
   method and date of the questionnaire research
Step 3. Carrying out research.
Step 4. Analysis of questionnaires received from entrepreneurs.
Step 5. Drafting a report.
Step 6. Presenting and disseminating the report, sending copies of the report to the
companies which participated in the questionnaire (this will increase the office credibility e.g.
when undertaking new editions of the research or other projects).
Step 7. Using recommendations from the research in programming future office projects.

6. BALANCE OF INPUTS AND OUTPUTS
Virtually without financial costs (excluding the cost of preparing materials, questionnaire
analysis, and drafting the report), reliable information was collected on the condition and
intentions of local companies, their perception of the activity of the city government and other
public institutions. When planning the city development, postulates put forward by
entrepreneurs could be (and were) taken into account. Moreover, entrepreneurs could see that
their opinion has direct influence on the activity of the local authorities and is taken into
consideration when strategic documents are drawn up. In future this will contribute to
establishing closer contacts and building agreement between the business sector and self-
government administration. If an external agency is employed, the cost of carrying out the
research could amount to several thousand PLN (depending on the number of interviewed
companies, distance etc.). However, it is possible and advisable that the office itself should

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carry out the research, the outlays will then be limited to the cost of printing questionnaire
sheets and reports. Analysing the data and drafting the report may be done by the office staff.

III. RECOMMENDATIONS FOR REPLICATING BODIES
The presented example of identifying the condition and expectations of economic subjects by
the local authorities is an element of building the territorial entity’s strategy of economic
development. It is advisable, however, in the context of stimulating economic development, to
continue such activities also after the process of planning economic development is
completed. Such questionnaires should become a permanent element of communication
between self-government and local companies. In the case of entities which already drafted
their economic development strategy, the research will certainly be a valuable element of
verifying the strategy. In the case of entities which do not intend to begin drafting the
development strategy in the near future, the conclusions from carrying out the questionnaire
can frequently be the only clear signal as to what the desirable directions of action are.
The questionnaire research of the climate for enterprise may be an element of permanent co-
operation between local (gmina and powiat ) authorities with the business sector. In this
situation, the structure of the office should have a unit (person) responsible for the
preparation, carrying out and analysing the research results, and define the frequency of
conducting research (once a year, once in two years etc.). Such an approach to the research of
the climate for enterprise should result in some modifications as to its implementation, the
most important ones being:
 carrying out the questionnaire research in the mail form (initially this will result in a lower
     return of questionnaires, but in the following editions entrepreneurs, seeing the continuity
     of the research and its direct reflection in specific decisions, will see it is advisable to
     answer the questions thoroughly),
 aiming at achieving a representative sample of the interviewed companies,
 adjusting the questionnaire sheet (enclosed in Appendix 6) to the local specificity and
     updating (verifying) it in the following research cycles,
 determining the method of presenting the research results and translating them into
     decision-making processes, together with designing a method of disseminating the
     research results and decisions based on them.
When carrying out the questionnaire research of the climate for enterprise, it seems advisable
to establish co-operation with a local organisation associating businesspeople (economic self-
government, local commerce and industry chamber, association etc.). This will improve the
credibility of the research in the eyes of entrepreneurs and may allow to divide the cost of
carrying out the research between self-government and the organisation associating
businesspeople.
It is possible to become more familiar with the method and its results at:
http://www.lgpp.pl/pl/projekty/rozwoj_gospodarczy/default.htm, where files related to the
questionnaire research in Chełmno can be downloaded, among which there are: the
questionnaire sheet, recommendations for people carrying out the research, and a full version
of the report on the analysis of the research results.




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    C O -O PE R ATIO N AM ON G L OC A L G OV E RN ME N T
     E N TI TIE S WIT H IN TH E F RA ME WO RK O F T H E
    A S S O CI AT ION O F G M INAS OF TH E U P PE R R ABA
                     B A S IN AND K R A KÓ W
I. GENERAL DATA
Management area: co-operation among territorial government entities,
Name of best practice: co-operation of self-government entities within the framework of The
Association of Gminas,
Index: institutionalising co-operation among territorial government entities,
Index stage: 4,
Implementing Organisation: The Association of Gminas,
Name and address of implementing organisation:
                                              The Association of the Gminas of the Upper Raba
                                              Basin and Kraków
                                              32-400 Myślenice, ul. Drogowców 8
                                              tel. (012) 274-39-71, 274-05-00,
                                              tel. (012) 274-05-01, 274-05-02
                                              fax (012) 274-27-43
                                              e-mail: biuro@gornaraba.krakow.pl
                                              http://www.gornaraba.krakow.pl/
Date of implementation: since 1995,
Contact person:         Stanisław Nowacki – Chairman of the Board
                       The Association of the Gminas of the Upper Raba Basin and Kraków
                       32-400 Myślenice, ul. Drogowców 8
                       tel. (012) 274-39-71, 274-05-00, 274-05-01, 274-05-02
                       fax (012) 274-27-43
                       e-mail: biuro@gornaraba.krakow.pl
Name of place(s) where the best practice has been duplicated: no information available.

II. DESCRIPTION

1. GENERAL DESCRIPTION OF BEST PRACTICE
The Association of the Gminas of the Upper Raba Basin and Kraków is a good example of
co-operation among gminas aimed at solving ecological problems. Wanting to stop the
degradation of the Raba Basin water and to improve its quality, the gminas situated in the
Upper Raba Basin and the city of Kraków decided, in 1994, to create a targeted association
based in Myślenice. The creation of the inter-gmina association with legal personality,
performing public tasks on its own behalf, was possible thanks to the Act of 1990 on gmina
self-government.
The Association’s priorities are:
 putting the water and sewage economy into order by means of constructing and
    modernising the system of sanitary sewage and waste water treatment plants in the
    territory of 14 associated gminas,



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    protection of the water basin environment, which is the condition of stopping the
     increasing degradation of the Dobczyce Reservoir supplying drinking water to over one
     million people.
The first task of the Association was preparing the „Comprehensive programme of
maintaining the cleanliness of the Raba basin from the source to the Dobczyce dam”, which
covers a list of sources of pollution, proposed methods of neutralizing pollution, and a
financial-material schedule of the investment implementation. Although the Association is
constituted by many territorial entities and the descriptive index cannot be used directly, it
seems that the way the Association functions is most faithfully described by the fourth stage
of the index: institutionalisation of co-operation among territorial government entities. There
is a structure created for the purpose of consultation and implementation of a definite group of
tasks. The activity of the structure has not been extended.

2. PROBLEMS OR ISSUES SOLVED
The direct effect of activities within the Association framework is the implementation of
various investments of pro-ecological nature for the total amount of 78 million PLN. The
investments, which solve the problems of individual gminas, will directly contribute to the
protection of the Raba basin.
The pro-ecological nature of the activities of the Association has indirect influence on the
intensification of building developments, creating areas of new economic activity, the
development of agrotourism and related services.
Inter-gmina co-operation within the framework of the Association proves that it is possible to
overcome barriers resulting from administrative division and to carry out coherent activities in
the territory of several powiats (in this case the powiats of Myślenice, Limanowa, Wieliczka,
Nowy Targ, Sucha and the city of Kraków).

3. DESCRIPTION OF THE IMPLEMENTATION METHOD
The Association took over the majority of organisation and accounting related to the
implementation of pro-ecological investments in the associated gminas. This led to better use
of the available funds and human resources. The innovativeness of the project is related to the
comprehensive approach to environmental issues which are solved by means of co-operation
of gminas. The creation of the Association and its efficiency result from the involvement, co-
operation and exchange of experiences of the leaders of the associated gminas. Moreover, the
Association is engaged in activities in the are of ecological education in primary and
secondary schools in the territory of partner gminas. Indirectly the inhabitants of the Raba
basin are also covered by the educational activities through participating in the process of
deciding the situation and construction of environmental protection infrastructure. The
programme called “Modern management techniques in agriculture” intended for farmers is
also innovative. The programme is a comprehensive solution of the problem of discharging
and treating sanitary waste water in the whole Upper Raba basin, from the river source to the
reservoir. The programme of water treatment in the basin is planned to be continued until
2005.

4. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD
At the beginning of 1994 during informal meetings representatives of several gminas from the
present-day powiat of Myślenice came to the conclusion that the problem of waste water
economy, which exceeded the capacity of individual gminas, had to be solved in a
comprehensive manner. The group of initiators included the following gminas: Kraków,
Dobczyce, Myślenice, Lubień and Rabka. In June 1994 in Myślenice, a meeting of
representatives of these gminas was organised, chaired by the Mayor of Myślenice, who was

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elected the co-ordinator of the project. The impulse encouraging the gminas to act was the
opportunity to take advantage of the funds from the voivodship office allocated to water
protection. There was an opportunity to include the project of water basin protection in the
central plan. The invitation to tender was preceded by consultations on the gmina tier about
the expectations related to the commissioned project. The Tender Board was constituted of
the representatives of gminas participating in the initiative. A Kraków-based company called
Hydrotrest won the bid for preparing the project. The funds for developing this conception
were reserved in budget of the Voivodship Office in Kraków. The first meeting of the
Association was held in 1995. During the meeting organizational issues were discussed, the
Board and Auditing Committee were elected. An advertisement for a director was placed in
the press. The Board and President were elected. Soon afterwards, a director was chosen.
Later, the Association secretarial staff was appointed, since up till then the Mayor’s secretarial
staff had dealt with all the organizational matters. Initially the Association’s office was
confined to one room, then it occupied three rooms. At the initial stage both the accountant
and the legal advisor were working to order. A year later the recruitment of full-time staff
started. The statute of the Association approved by eight gminas (Myślenice, Dobczyce,
Siepraw, Pcim, Tokarnia, Kraków, Rabka, Lubień ) was published in the Official Journal of
Krakowskie Voivodship No 1, Item 4 of 1995. In August 1995 more gminas (Raba Wyżna,
Mszana Dolna (town and gmina) and Niedźwiedź) were associated by the Association
resolution. In January 1997 Wieliczka, Wiśniowa and Jordanów joined in. This led to a
change of the statute in 1998. Until 1998 the Association rented office premises from the city
office, next the seat was moved to premises rented from a private company.

5. BALANCE OF INPUTS AND OUTPUTS
The total cost of implementing the “comprehensive programme” amounts to ca. 400 million
PLN (100 million USD). The basic sources of financing the infrastructure tasks of the
“comprehensive programme” are:
 50% – appropriated allocation from the state budget to investments covered by the
    programme,
 20% – contributions from the associated gminas,
 5% – donation from the Municipal Water-Line and Sewage Systems in Kraków,
 25% – money from ecological funds (National Environmental Protection and water
    Management Fund, Małopolski Environmental Fund, Eco-Fund).
The work of the Association office are financed by the gminas from additional contributions
whose size depends on the population of a given gmina. At present the office employs 12 full-
time employees. The cost of the office functioning amounts to ca. 400,000 PLN a year. The
office provides full administrative service and accounting of the implemented investments.
Since 1995, the Association implemented successive tasks planned in the „comprehensive
programme:. The scale of the project is depicted in the following effects (after six years of
activity):
 completing the construction of the waste water treatment plant in Rabka (8.700m3/day),
 constructing 150 km of sanitary sewage system
 closing down the landfill in Niedźwiedź,
 constructing in-house waste water treatment plants in Byszyce and Gorzków (80 units),
 constructing intermediary pumping stations in Drogina (1), Brzączowice (7), Zakliczyn
    (6) and Dobczyce (10).
Moreover, the Association is prepared for the implementation of next tasks, it has the grounds
for the construction of new facilities and technical projects for the planned tasks.
The geographical location of the associated gminas, in the neighbourhood of attractive tourist
and recreational areas (the mountain ranges: Beskid Makowski and Beskid Wyspowy, the


                                               115
Raba River and the Dobczycki reservoir and Gorczański National Park), is a great advantage
in relation to the growing importance of relaxation and recreation.

III. RECOMMENDATIONS FOR REPLICATING BODIES
A similar project may be implemented in the areas situated in river basins. The chances of
success increase if the project covers a drinking water source of a bigger city (due to the
available funds).
The Association has gathered a few years of experience in implementing the programme of
water protection, which can be used in similar initiatives. In the context of the ever increasing
opportunity of obtaining the EU financial aid allocated to environmental protection, such a
possibility should be provided for when replicating the presented project.




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 P R E PA R IN G A N E TWO RK O F S PE CI AL IS TS F O R TH E
  EU AND I T S P RO G R AMME S I N TH E G MINAS AND
         P OW I ATS O F T H E S ILE S I A V O IVOD S H I P
I. GENERAL DATA
Management area: project management and using EU financial aid,
Name of best practice: preparing a network of specialists for the EU and its programmes in
the gminas and powiats of the Silesia Voivodship,
Index: capacity for preparing projects,
Index stage: 4,
Implementing Organisation: The Association of Gminas and Powiats of Upper Silesia,
Name and address of Implementing Organisation:
                                            The Silesian Association of Gminas and Powiats
                                            ul. Stalmacha 17, 40-058 Katowice
                                            tel. (032) 25-11-021, 25-11-241, 25-10-945,
                                            fax: (032) 25-10-985,
                                            e-mail: zwiazek@silesia.org.pl
                                            www.silesia.org.pl
Date of implementation: May 2000,
Contact person:        Bożena Pieruszek-Kwarciak – Project Co-ordinator
                      Specialist for/in EU programmes
                      tel. (+4832) 25-11-021, 25-11-241, 25-10-945, 25-15-493
                      fax: (+4832) 25-10-98
                      e-mail: bpieruszek@silesia.org.pl
Name of place(s) where the best practice has been duplicated: Opolskie Voivodship.

II. DESCRIPTION

1. GENERAL DESCRIPTION OF BEST PRACTICE
The Silesian Association of Gminas and Powiats is engaged in activity oriented towards
preparing gmina and powiat office staff to using EU programmes available for the Silesia
Voivodship in the pre-accession period. An educational series called “Preparing a network of
specialists for the EU and its programmes in the gminas and powiats of the Silesia
Voivodship”, which has been implemented since June 2000, is a priority project in this area.
The project is co-organised by the Polish-German Co-operation House, National Government
of Nordrhein-Westfalen and the representative of the Nord-Pas de Calais Region. The partners
co-operate with the Silesian Voivodship Self-Government, which defines the institutional and
political framework of the project
A year-long series of trainings resulting in a functioning network of specialists in the EU and
obtaining funds is directed to gmina and powiat staff.
The programme modules of the project cover three thematic segments. The first one covers
theoretical elements related to the functioning of the EU, regional policy and aid programmes.
The second segment is based on practical classes on project management and using the EU
aid programmes.
The last, operational, segment assumes the creation and functioning of a network of specialist
in the territory of the whole voivodship.


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The objective of the project is to prepare representatives of self-government administration in
gminas and powiats of the Silesia Voivodship for active participation in the process of
Poland’s integration with the European Union, in particular:
 understanding and supporting the idea of European integration and Poland’s future
    membership in the EU structures,
 obtaining aid funds both from the Phare Fund and ISPA and SAPARD pre-accession
    funds, and, consequently, the Structural Funds and Cohesion Fund available for the EU
    members,
 establishing and maintaining contacts with the EU institutions.
The educational programme “Preparing a network of specialists for the EU and its
programmes in the gminas and powiats of the Silesia Voivodship” broadens the participants
knowledge, enables co-operation in creating sets of projects, mutual aid in creating local
projects, and exchange of information useful for the process of integration at the local level.
At present, the network of specialist in EU and its programmes in the Silesia Voivodship
consists of 25 representatives of gminas and powiats who participated in an 18-month series
of seminars, workshops and conferences and informational trip to the EU institutions in
Brussels and Nordrhein-Westfalen. At the moment the network works in the form of the
SAGP Committee for EU Affairs and a discussion forum connected with local development
projects with a database of proposals and an archive.
The „Partner” project currently implemented by the Marshal’s Office of the Silesia
Voivodship, which is aimed at efficient absorption of Structural Funds, requires self-
government personnel which is well-prepared in the area of the EU, and a co-ordinator (i.e. a
person familiarised with the EU and responsible for projects financed from the EU funds)
functioning in each self-government entity. In response to the urgent need of preparing self-
government personnel for the future functioning in the EU conditions, the European Centre of
the Polish-German Co-operation House together with the Silesian Association of Gminas and
Powiats implement the project called “Preparing a network of specialists for the EU and its
programmes in the gminas and powiats of the Silesia Voivodship”.

2. DESCRIPTION OF ENTITY
More than ten years ago, a group of self-government activists created an association called the
Upper Silesia Gminas Association. Their energetic efforts for the benefit of the region did not
pass unnoticed, encouraging many partners, even foreign ones, to co-operate with the
Association. The openness and willingness to for the good of the region encouraged the
culturally close gminas of Northern Moravia to co-operate. In September 1992, the
Association was transformed into the Association of Gminas of Upper Silesia and Northern
Moravia. The involvement of self-government sectors on both sides of the border enabled the
Association to broaden the scope of activity considerably, and to survive such historical
change as the collapse of Czechoslovakia. The Association continued its activity in this form
until the systemic reform of Poland of 1999, which brought about serious changes. On the one
hand, the Association’s territorial scope was increased and new areas of activity appeared, in
the relations among gminas, powiats, and regional self-government. On the other hand, the
structure of the Association was changed – the Polish and Czech part of the Association were
separated in a statutory way. The Polish part of the Association called itself the Silesian
Association of Gminas and Powiats (SAGP), and it continues to act in this form today, co-
operating with the Czech partner in the implementation of projects.
At present the SAGP associates approximately 100 territorial government entities, and covers
the area populated by ca. 3.3 million people. The main aspiration of the SAGP is work for the
benefit of public good in the Silesian Voivodship. The implemented projects and initiatives



                                             118
are aimed at the region integration and development. With this view, the Association tries to
create and disseminate the best models in the area of local development.
After ten years of activity, the SAGP is one of the landmarks of the self-government
landscape in Silesia, thanks to its activity, it enjoys great respect in the region. With regard to
the scale of activity and the population inhabiting the area it covers, it is the largest regional
self-government organisation in Poland.
The SAGP mission is service for the public good in the Silesian Voivodship by supporting
local communities and self-governments through:
 integrating Silesian gminas and powiats at the regional level,
 supporting and promoting local self-government,
 shaping a common policy of local self-governments and self-government lobby,
 supporting initiatives for the benefit of the development of gminas and powiats,
 professional training, advice, exchange of experiences and disseminating model solutions
     in the area of local development and management in gminas and powiats.
Main spheres of activity of the SAGP:
I. Economic promotion of gminas and powiats.
II. Development of rural areas of the Silesia Voivodship
III. Shaping common policy of local self-governments.
IV. Self-government lobbying for gminas and powiats.
V. Preparing gminas and powiats for using the EU pre-accession funds and Structural Funds
and other aid programmes for self-governments.
VI. Implementing the programme called „Efficient gmina and powiat management” and
training self-government personnel.
VII. Implementing the programme “Development of tourism and recreation in the gminas and
powiats of the Silesia Voivodship”

3.PROBLEMS OR ISSUES SOLVED
As a result of addressing the project to specific self-governments and to people selected as
„specialists” for the participation in the project by their supervisors, it was possible to
eliminate the randomness of the training and people dealing with the issue of EU projects
management in gmina and powiat offices. The fact that the project is long-term and carried
out consistently ensures systematic building of know-how and experience.

4. DESCRIPTION OF THE IMPLEMENTATION METHOD
1. Number of training participants – 25 persons.
2. Requirements for participation in the training for the candidates proposed by gminas and
powiats:
 at least rudimentary knowledge of the EU,
 knowledge of English at intermediate level,
 criterion of receiving a diploma is obtaining the First Certificate in English before the
    training is completed,
3. Procedure of recruitment:
 language test – English (intermediate level),
 brief interview at the SAGP.
The project participants created a network of co-operation on the basis of the Committee for
the EU Matters of the SAGP and an Internet discussion forum at http://www.silesia.org.pl/.
The forum consists of two thematic fields:
 Information on the European Union (law adjustment, the activity of the European Union
    Commission, EU Delegation etc),
 Projects.

                                               119
Data bases and archive of the projects implemented in the gminas and powiats covered by the
programme were created.

4. DESCRIPTION OF IMPLEMENTING THE APPLIED METHOD
The tools and the implementation method, as well as the programme of the practice were
agreed on during the workshops with the participation of the SAGP, the Polish-German Co-
operation House, Marshal’s Office of the Silesia Voivodship, and a representative of the
Nord-Pas de Calais Region.
The programme modules in the three segments of the project were:
I. Segment – theoretical elements of the project:
 The European Union – genesis and institutions,
 The functioning of the EU,
 The principles of regional policy,
 Sector policies of the EU,
 Poland’s accession negotiations – general review,
 The EU aid programmes – general principles,
 Pre-accession funds and other EU programmes available in the pre-accession period,
 Structural Funds and other EU programmes,
 Own resources in the process of obtaining EU funds,
 Study visits in the course of the project duration.
II. Segment – practical elements of the project:
 Project management,
 Financial management,
 The principles of building good projects,
 The methods of preparing applications for financing under the EU programmes,
 Study visits in the course of the project duration,
 Institutions supporting local and regional development, mostly related to the EU.




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III. Segment – operational elements of the project:
 Establishing the principles of co-operation in introducing EU programmes in the territory
     of the Silesia Voivodship, creating a partnership convention to ensure a well-functioning
     system of information, accessibility, and implementation of EU programmes, involvement
     of various local resources in the project implementation,
 Summing up – trip to Brussels (if possible).

5. BALANCE OF INPUTS AND OUTPUTS
The project is efficient because it is largely based on self-financing by the participants (self-
government), obtaining external funds only for some of the needed activities. The created
network of co-operation is very strong and not very susceptible to negative external
influences, e.g. local politicians.
The first edition of the project was a success and it will be continued in the Silesia Voivodship
and extended to the Opolskie Voivodship.
The input of the Silesian local self-government for the project implementation:
 Gminas and powiats’ own input 7000 PLN x 35 participants equals 243,000 PLN,
 The SAGP’s own input in 2000 was 103,000 PLN gross (i.e. including the cost of
    functioning of a task unit in the amount of 14,000 PLN) and 105,000 PLN gross for the
    project implementation in 2001 (i.e. including the cost of functioning of a SAGP task unit
    in the amount of 14,000 PLN)
 The input of the Polish-German Co-operation House was 325,900 PLN gross (including
    the cost of functioning of a PGCH task unit in the amount of 50,000 PLN).
The total net input (excluding the cost of functioning of task units) was 698,900 PLN. The
gross input (including the cost of functioning of task units) was 776,900 PLN.
The output of the practice was obtaining direct financial benefits by the gminas and powiats
which delegated their project participants, following from the received subsidies from EU aid
programmes for the implementation of local development projects, improvement of the
organization of the offices which created separate European offices or units co-ordinating
projects financed by the EU funds, and better access to information from the EU as well as
benefits from creating joint (inter-gmina and inter-powiat) local development projects.

III. RECOMMENDATIONS FOR REPLICATING BODIES
Consultations and good preparation of such a programme in close co-operation with the self-
government managements which are to select their employees for the participation in such a
project and network are essential. The programme and network should be as much self-
financed as possible so that the project can operate in the long run.
New partners should be sought, and networks should be built, not only of “officers” but also
of local institutions: self-governments, NGOs, aid organizations, advisory firms etc.




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