This chapter takes a systems-thinking approach to reviewing the centre of government (CoG) holistically. Evolving pressures and new requirements for the CoG need cohesive approaches which take into account the collection of elements – including people, processes, information and input – that can make up a high-functioning CoG. The chapter focuses on systems approaches, presenting country practices. It analyses the organisational design of the CoG, a systems approach to workforce development and the right mix of staff, and a holistic view on obtaining the right key materials and support, including digital tools and the right workflows. This chapter also highlights the need for balance between stability and agility at the CoG.
Steering from the Centre of Government in Times of Complexity
Compendium of Practices
9. Building the centre of government (CoG) as a system
Abstract
Key messages
The evolution of and changing pressures on the centre of government (CoG) need a cohesive and holistic approach to building a high-performing CoG into the future.
Thinking of the CoG as a system – a collection of different elements, such as people, processes, information, inputs, etc. – ensures a holistic and adaptive perspective when developing it. CoGs can use a systems approach to their design and strengthen their various elements.
Several elements can be considered to enhance performance in a comprehensive way, including through processes such as organisation design, workforce and material input management, and support with tools such as mandates, governance arrangements, authorities, data and financial input.
Review of and constant adjustment to the system is to ensure support adaptive and sustainable systems.
1. Introduction
The CoG has traditionally played an important role in facilitating cabinet decision-making. However, the CoG’s role is increasingly expanding into other areas such as policy development, co-ordination, monitoring, strategic planning (OECD, 2015[1]) and reform (OECD, 2018[2]). These practices are being reshaped by internal and external transformations, including declining trust in governments, pressing fiscal contexts, crises and advancing technologies. Since the COVID-19 pandemic, CoGs have also become more involved in risk and crisis management, as well as tackling mis- and disinformation (OECD, 2020[3]) (see Figure 9.1).
This evolution of roles and responsibilities requires CoGs to consider how they need to develop to ensure they are fit for purpose now and in the future. Organisational development theory suggests that CoGs can be considered a complex system based on the various elements that must come together to enable them to perform. These elements include mandates, information inputs or flows, structure, workforce skills and culture and financial resources and data. Building effective CoGs requires consideration of these elements in a cohesive manner.
The compositions and functions of CoGs, including communications, national security and foreign policy, vary greatly across jurisdictions (see Figure 9.2).
Given the diversity of CoGs globally, identifying generic ways to build a strong CoG is challenging. However, doing so is increasingly relevant as the complexity of the role of the CoG increases in response to the global context.
Figure 9.1. CoGs’ priority functions
Note: n=26. Respondents to the OECD survey were asked: “How much of a priority are the following functions in the CoG?”.
Source: OECD (2023[4]), “Survey on strategic decision making at the centre of government”, OECD, Paris.
Figure 9.2. The existence of dedicated units or teams in the CoG to support functions
Note: n=26. Respondents to the OECD survey were asked: “Is there a dedicated unit or team at the CoG to support the following functions?”. The survey did not seek dedicated teams on cross functions such as digital or environment.
Source: OECD (2023[4]), “Survey on strategic decision making at the centre of government”, OECD, Paris.
This chapter will discuss key elements of building an effective CoG through the following structure:
Enhancing the CoG as a system.
Organisational design mandates.
Workforce development.
Material input and support.
2. Enhancing the CoG as a system
A system can be defined as a set of elements and interconnections organised in a way to achieve an outcome or product which is more than just the sum of the system’s independent elements (Meadows, 2008[5]; Dekker, 2017[6]). The CoG, just like any other organisation, can be considered a complex system based on the multiple elements that comprise it and its influence on its environment.
A first step in enhancing the CoG as a system is to ensure it has clarity in its purpose and mandates. This will ensure that there is a clear frame for developing specific elements. For example, it needs to adjust its performance or workforce incentives to increase collaboration. Following this, the CoG can consider its organisational design, mandates, workforce and other enablers.
Organisational design of the CoG
CoG mandates, structures, processes and consultative mechanisms are key to ensuring the CoG can work across boundaries (OECD, 2017[7]). To illustrate the diverse design of CoGs, Box 9.1 outlines in more detail the functions and powers of the CoG in the Czech Republic, Finland, Ireland and Lithuania.
Box 9.1. Functions and powers of CoGs in the Czech Republic, Finland, Iceland and Lithuania
Finland
In Finland, the CoG is composed of the Prime Minister’s Office (PMO), the Ministry of Finance and the Ministry of Justice. The working areas and functions of the PMO include foresight activities and work on the future, analysis, assessment and research, communications and councils on economics and regulatory impact assessment. The PMO is also responsible for steering government ownership, Finland’s European Union (EU) policy co-ordination and inter-administrative co-operation in specific areas like sustainable development. The Ministry of Finance is responsible for financial and governance policies. The ministry also serves as the secretariat to the Economic Policy and Finance Committees. The Ministry of Justice maintains and develops legal order and protections, reinforces democracy and safeguards citizens’ fundamental rights. It is responsible for drafting key legislation and ensuring the judicial system’s proper functioning.
Iceland
The CoG in Iceland is composed of the Office of the Prime Minister (OPM), the Ministry of Finance and Economics (MoF) and the Ministry of Foreign Affairs (MFA). The role of the MFA mainly regards the implementation of the European Economic Area agreement in partnership with the OPM. The OPM has a concrete role and functions in relation to co‑ordination and project management across all ministries, in line with the 2011 Administrative Act. The function is mainly enforced through regular meetings of the permanent secretaries, ministerial committee meetings and ad hoc working groups and committees. Functions of the MoF concern the organisation and operations of the public sector in general, public sector reforms, public procurement, digitalisation, public ownership, innovation and public finance. Some of these functions are clearly stated in legislation supported by public agencies, while others are more ad hoc.
Lithuania
The CoG in Lithuania is composed of the Office of the Government. Its functions include scrutinising and drafting legislation, co-ordinating the implementation of the government programme and monitoring its results, co-ordinating Lithuania’s EU interactions and policies, record keeping and government communication with the public.
Czech Republic
The CoG in the Czech Republic is composed of the Office of Government. It is the central state administration body and plays an essential role in decision-making through the preparation of government meetings, especially by preparing the agenda and submission materials. However, the office currently only assumes limited responsibilities for strategic planning and the co‑ordination of policy development and other traditional CoG functions. This depends on political support from government. Some CoG functions in the Czech Republic have been performed by different bodies and line ministries.
Source: Informal Contact Group on Ukraine of the OECD Public Governance and Regulatory Policy Committees, Responses to Ukraine’s Request for Comparative Experience (2023, unpublished).
Box 9.2 outlines Portugal’s use of strong mandates for the CoG, combined with purposeful design, pushing for co‑ordinated, forward-looking strategic planning.
Box 9.2. Mandates for strategic planning, PlanAPP, Portugal
To address challenges relating to policy continuity and co‑ordination, in 2021, Portugal established a Competence Centre for Planning, Policy and Foresight in Public Administration (Centro de Competências de Planeamento, de Políticas e de Prospetiva, PlanAPP). Located within the Presidency of the Council of Ministers, the CoG has a strong mandate regarding its role in the planning, design, adoption, implementation, monitoring and evaluation of public policies. PlanAPP designs, shapes and steers strategies and their planning processes, co‑ordinates sectoral efforts and works with public administration to boost its anticipation and adaptation capabilities in a changing environment. Currently, work is underway in co-operation with the OECD to map CoG and non-CoG ministries involved in the strategic planning process and identify gaps and overlaps in responsibilities for the purpose of clarifying the responsibilities and role of line ministries and fostering internal networking.
Source: PlanAPP (2021[8]), PlanAPP Presentation, https://planapp.gov.pt/o-planapp/apresentacao/.
Workforce development
The composition of staff within the CoG is a crucial enabler for a successful operation. Yet, CoGs often have limited resources, which highlights the critical nature of the composition and expertise of the staff. CoGs need to help secure institutional memory, ensure continuity and develop long-term strategy (EC, 2017[9]). They must also have good political sense and the ability to react to events. This provides some basis for a CoG comprised of both permanent staff and contingency staff, experts or specialists. Political appointees may also be part of the mix and bring with them information about government objectives and a deep understanding of the political environment. CoGs have identified gaps in their workforce skills (Figure 9.3) and key challenges in recruiting the right staff.
Figure 9.3. The existence of moderate or major skills gaps in the CoG
Note: n=26. Respondents to the OECD survey were asked: “To what extent are the following skills lacking or a gap to the CoG?”.
Source: OECD (2023[4]), “Survey on strategic decision making at the centre of government”, OECD, Paris.
Figure 9.4. Challenge factors for ensuring the right skills in the CoG
Note: n=26. Countries were asked: “To what extent are the following factors a challenge to ensuring that the required skills are available for the CoG?”.
Source: OECD (2023[4]), “Survey on strategic decision making at the centre of government”, OECD, Paris.
The CoG must maintain strong partnerships with internal stakeholders to harness broader workforce resources and expertise when necessary, for example, when the CoG itself is small, as seen in Estonia (Box 9.3), which has very particular workforce requirements due to the size of its government and CoG. The Estonian CoG has the mandate to recruit staff and quickly draw on it and its information-related expertise in other areas.
Box 9.3. CoG as a system in small government, Estonia
Estonia’s comparatively small CoG has a broad set of functions with articulated mandates and authority that addresses culture, relationships with ministries and capacity building. The small scale of the Estonian administration requires civil servants to work flexibly, adapting quickly without disrupting daily tasks. This requires civil servants with a broad strategic perspective and expertise, and who are skilled in collaborative and integrated work. The CoG can also recruit staff for specific projects. It also has the potential to streamline communication and minimise bureaucracy between ministers and government.
Information access is also fundamental for CoG operations. The CoG can directly request and acquire data from different departments, ministries and public agencies in Estonia. Obtaining high-quality data in a timely manner and rapidly producing analysis for informed decision-making can be challenging in complex and evolving contexts. To address this, the Estonian CoG is working to increase the automatisation of data sharing to accelerate data circulation and improve collaboration.
Source: Interview with a representative of the Estonian Government Office.
Designing the appropriate staff body for the CoG will require different mechanisms depending on the employer status of the CoG and the role of the CoG in recruitment. Expertise can be drawn into the CoG unit and the broader administration through a combination of targeted recruitment, flexible secondment and staff-sharing arrangements. Investing in public service leadership also achieves longer-term CoG goals (OECD, 2020[10]).
Building the skills of the existing CoG staff is equally essential. Professional development at the CoG through training and experiential learning can help build the diverse skills necessary for good governance, particularly in response to the unique needs of each CoG within its context (Box 9.4).
Box 9.4. Mobilising in-house and international training expertise at the CoG
Bulgaria
The CoG in Bulgaria has used internal and external training resources to build a high-performing workforce. Annually, CoG staff are encouraged to take part in two in-person training programmes at the Institute of Public Administration (IPA) as well as specific additional modules. Annual performance appraisal meetings often serve as a forum for employees and managers to discuss and address a unit’s particular training needs. Many employees at the CoG also serve as instructors, delivering training at the IPA that targets a wide range of policies. This has helped to provide a practical perspective.
Bulgaria has also made use of EU-funded projects to enhance specific capabilities at the CoG by welcoming external expertise to deliver training on priority policy areas in co‑operation with international organisations such as the OECD and the World Bank. The CoG currently participates in the Public Administration Cooperation Exchange (PACE) project within the EU Technical Support Instrument, which has allowed for study visits and peer exchanges between civil servants across EU member states.
Hungary
To support a high-performing CoG, there are various strategies and initiatives implemented, including specialised yearly training for the staff and different compulsory public administration examinations for entry-level and senior managerial-level positions at the University of Public Service, to offer the skills and knowledge necessary to handle the nuances of central government functions and today’s challenges.
This training covers a number of policy areas and materials needed for the professional conduct of a civil servant and helps maintain the professionalism of the civil service.
Source: Information provided by representatives of the Council of Ministers of Bulgaria and the Hungarian Prime Minister’s Office.
Material input and support
For the CoG to co-ordinate and drive towards the strategic objectives, material input and infrastructure support are required. Centralised, interoperable and accessible platforms for the management of data or digital information and workflows are essential. Establishing these requires investment in systems and data expertise, clear mandates for ownership and the development of guidelines.
This process requires consideration of resources, finances, training and roles, as can be seen in Latvia (Box 9.5).
Box 9.5. Standardisation and centralisation of support services to strengthen the CoG in Latvia
Latvia is working toward establishing a Joint Service Centre by 2026. A key goal is standardisation and centralisation of support functions to provide high-quality administrative data and information in real time. This will include systems such as human resource management, financial accounting, information and communication technology, procurement and property management, and will provide economic benefits, service quality and efficiency.
Employees of joint service centres are specialised professional staff who focus on improving the service they deliver. These centres allow the broader administration to focus on their primary business tasks. Once all departments are connected to the Joint Service Centre, its functions will be performed by the Treasury and the structure of the CoG will be revised to best fit the new environment.
Source: Republic of Latvia (2023[11]), On the Public Administration Modernisation Plan for 2023-2027, https://likumi.lv/ta/id/341706-par-valsts-parvaldes-modernizacijas-planu-2023-2027-gadam; Information provided by representatives of the State Chancellery of Latvia.
Some CoGs are also deploying digital tools and capacities to support their processes, for example the electronic systems in Estonia.
Box 9.6. Digital platforms for strategic planning in the Czech Republic
The Czech Republic has developed eKlep, a digital platform for submitting and reviewing documents in preparation for cabinet meetings. This inter-ministerial procedure includes the review of draft strategic plans and public policies, and allows comments from all government institutions.
The process is managed by the Office of the Government (CoG). In addition, strategic documents are added to an online registry, which includes all strategic and conceptual documents. It clearly displays documents, goals and measures, fulfilment responsibilities and success indicators. All line ministries and regions add their strategic documents to this registry.
Source: OECD (2023[12]), OECD Public Governance Reviews: Czech Republic: Towards a More Modern and Effective Public Administration, https://doi.org/10.1787/41fd9e5c-en.
3. Common challenges and enablers
Common challenges
Drawing on the results of the 2017 and 2023 CoG surveys and country feedback, a range of recurring challenges around enhancing the CoG as a system have been identified:
Finding the balance between agility and stability in the design of the CoG.
Tensions in setting the right mandates, as this can hinder the CoG system in doing its job.
Absence of routines in co‑ordination and a siloed working culture.
Recruiting and developing skills in specialist areas.
Devolved responsibilities creating silos.
Creating the conditions for innovation and agile responses.
Establishing central data systems and participating in workforce planning.
Appropriately recruiting and training CoG staff and specialist skills in certain areas.
Building transparent and accountable relationships between political and administrative officers.
Lack of permanency of the CoG and the consequent absence of institutional memory.
Key enablers
CoGs are complex systems themselves and, thus, their design should take a systems-design approach to support a functional and adaptive perspective to building a high-performing CoG. CoGs must take a holistic approach in ensuring they have the right set of design elements. Sustainability is enabled through a balance of constant review and stability in some elements.
CoGs could consider a dual-pronged approach, with the right mix of all or some permanent staff and established networks of experts available at short notice. Political appointees can offer information about government objectives and a deep understanding of the political environment.
Communication skills, including negotiation, mediation and instruction, must also be a priority, requiring an appreciation and understanding of both the political and administrative culture (EC, 2017[9]). This is important as the CoG plays an essential role as a bridge between the political and administrative interfaces (see Chapter 1).
CoGs must be able to react rapidly to new scenarios. Adaptive approaches to management that place knowledge of the system at the centre are critical, as they dictate the need for information flows, expertise and skills development within the system to achieve sustainable and long-lasting performance (Mele, Pels and Polese, 2010[13]).
Annex 9.A. Composition and functions of the CoG
Annex Table 9.A.1. Institutional composition and functions of the CoG, selected OECD countries
Note: n=26. Countries were asked: “How does your country define the CoG? Broadly, what roles, functions, units or agencies comprise your CoG?”.
Source: OECD (2023[4]), “Survey on strategic decision making at the centre of government”, OECD, Paris.
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