Conditions for success

The senior officials in central government are an important resource for the Government. Their commitment, capabilities and resources have a crucial impact on realisation of societal objectives. Success in management positions is supported by meaningful areas of responsibility and professional performance management support. The key stages in performance management include agreeing on targets, providing guidance and support for achieving them, evaluating the results, and taking the necessary development, compensation and support measures. 

A functioning dialogue between the manager and their supervisor is essential for the manager’s performance. Management discussions between managers and their supervisors increase the shared understanding of what good management is. Mutual trust and a genuine dialogue in which both parties are heard and understood are cornerstones of successful interaction. Ideally, management discussions are also places for shared learning. They should be held whenever necessary, but at least once a year. 

Good management also needs effective feedback. The most senior public officials also have the right to receive feedback on their management work. For one thing, feedback makes it possible to agree on the support and development measures that the manager needs. Feedback also strengthens the principle of impartiality when discussing the manager’s employment relationship. 

Management agreements and management discussions support performance management

Management agreements are an essential tool for setting the objectives for and monitoring the performance of the most senior civil servants. Management agreements are part of the guidance process of an operational unit. As such, they must be compatible with the unit's performance agreement and the budgetary framework. The performance agreements of government agencies set out the objectives for the agency, i.e. what will be done. The management agreements set out how the agency will be managed so that these objectives can be achieved. A functioning dialogue between the manager and their supervisor is essential when the agreement is drawn up. Such dialogue also makes it possible to agree on the development measures and support needed by the manager. Central government has used this management agreement procedure since 2005. 

Rewarding assignments

In 2017, the Ministry of Finance reformed and provided instructions for the management agreement procedure and the content sections of the agreements. The reform simplified and harmonised the agreement procedure and adapted it to the performance agreement procedure for government agencies. The new agreement model includes: 

  • common management objectives in central government (based on the Government’s objectives) 
  • key performance targets (to be attached) 
  • management and leadership (the ministry’s and agency’s objectives) 
  • personal development and employment relationship of the manager (informal) 

The Ministry of Finance continues to develop the management agreement procedure and the content of management agreements. The Ministry has also examined the suitability of management agreement practices for the permanent secretaries at the ministries and prepared a specific model for management discussions and a support package to be used in discussions between ministers and permanent secretaries. 

Meaningful management positions, good development opportunities and competitive overall terms of employment ensure that central government is a competitive employer in the labour market. Central government must at all times be able to attract and retain qualified managers and supervisors who have the capacity to develop. 

In economically difficult times, it is particularly important to introduce and develop diverse methods of compensation. These may include various ways of developing competence, such as taking on new types of tasks that may come with more responsibility, undergoing training, or taking advantage of personnel mobility and rotation opportunities to deepen or widen expertise. Systematic competence development along with flexible career opportunities and career path options are important incentives in central government positions. The societal importance and foundation of values of positions in central government are a competitive advantage when hiring managers and other personnel. 

Contact information

Ari Holopainen 
Senior Ministerial Adviser, Financial Affairs 
Tel. +358 295 530 520 
firstname.lastname@gov.fi