Standardization of the improvement of local self-government units and assessment of digital readiness

Received Golden Case recognition at the CAF Users Event 2025 in Warsaw

CAF Best Practice
Date of publication: July 2025

Executive summary

Improvement and measurement of the efficiency of local self-government units with the help of the CAF tools. The project involved cooperation of several organizations at different administrative levels in Bosnia and Herzegovina. Two methodologies were developed: a Support Tool for CAF in local self-government units and a tool for digital readiness in local self-government units/public administration organizations.

About the organisation

This project is an example of good practice that involves cooperation between multiple organizations and represents a result of teamwork. The main processes in this project were led by the following organizations: Public Administration Reform Coordinator’s Office (PARCO) – the organization responsible for coordinating public administration reform in BiH, BiH Civil Service Agency, Republic of Srpska Civil Service Agency, and the Agency for Civil Service of the Federation of BiH – all of these organizations are responsible for improving public administration. The project received support from the UN Development Programme (UNDP), specifically Municipal Environmental Governance Project (MEG) and its donors. Additionally, besides the above-mentioned organizations, significant contributions were made by the Ministry of Administration and Local Self- Government of Republic of Srpska, the Ministry of Justice of the Federation of BiH, the Town of Prijedor, and the Municipality of Tešanj.

Quality improvement aspects

According to recent reports, Bosnia and Herzegovina (BiH) is still in the early stages of public administration reform. Citizens expect improvements in service delivery from all levels of government, but above all, simplification and digitalization of these services. One of the key problems in the administration of local self-government units (LGUs) in BiH is that they are not being improved at the same pace and quality, as well as the need for standardization in quantifying and validating the results of their work. The goal of the public administration reform is to improve all LGUs in certain areas that are important for citizens, aiming for as equal a level as possible. Therefore, there is a need to establish a set of indicators to monitor the performance and development of all LGUs in BiH. Another part of the problem is the emerging trend of digitalizing the work of administrations and the delivery of services – digital services to citizens. However, public administration organizations, with a focus on LGUs, simply do not know what the concept of digitalization of work and service delivery entails, i.e., what the scope of the digitalization process is. They lack a roadmap for the digitalization of public administration at the organizational level. 

Stakeholders and communication

As mentioned above, this project (case) is the result of teamwork from several organizations at different administrative levels in BiH. The key organizations and their employees were Public Administration Reform Coordinator’s Office (PARCO), BiH Civil Service Agency (BiH CSA), Republic of Srpska Civil Service Agency (RS CSA), and the Civil Service Agency of the Federation of BiH (FBiH CSA), with support from UNDP. All of the public administration organizations listed above carried out several cycles of CAF, and PARCO, RS CSA, and FBiH CSA received the CAF Label certificate. Additionally, the project had support from external experts in defining solutions. However, the entire process was driven by the employees of the aforementioned organizations, who also consulted other colleagues from public administration (in a broader context), especially colleagues in local self-government units that had previously implemented CAF.

 

Implementation process/approach

Two key problems were identified:

  1. The need for standardization in quantifying and validating the evidence-based results of work in local self-government units in BiH;
  2. The scope of the concept of digitalization of work and service delivery in local self-government units in BiH has not been defined;

Based on the aforementioned problems, the key institutions for quality management in public administration – the BiH Civil Service Agency (BiH CSA), Republic of Srpska Civil Service Agency (RS CSA), the Civil Service Agency of the Federation of BiH (FBiH CSA), and PARCO – in collaboration with the UNDP’s MEG Project , decided to take the initiative and address these issues by creating two tools for public administration reform. Since CAF has been implemented in a large number of organizations in BiH for some time now, it was decided to form a support tool for local self-government units (LGUs) that would follow the CAF structure and provide a set of indicators (a total of 43) across different segments. This tool would be used alongside the CAF self-assessment tool. The goal of implementing this tool was to monitor and motivate continued improvements in performance, as well as to standardize the delivery of services from LGUs to citizens.

It is important to highlight that local governments in BiH have begun implementing a results-based performance management system, which includes structures, functions, and processes for development management, with a stronger role for councils/assemblies of LGUs in decision-making and oversight. Despite this positive step forward, the local government system in the country still lacks standardized and systematic measurement of results. Research conducted among nearly 80% of LGUs shows that local governments believe it is essential to introduce financial incentives based on achieved results, from higher levels down to local authorities. They also agree that each local government should regularly conduct self-assessments of achieved results, use the obtained results to improve their work, and share them with citizens.

These findings indicate that there is momentum in the country to introduce a basic standard quality management model in this regard.

The main challenge in creating the additional methodology for CAF (43 indicators) was to ensure that the CAF process itself was not burdened with additional barriers to implementation, and that it remained comprehensible to people in LGUs. This issue was resolved through discussions with LGUs that had already implemented CAF and their feedback on the 43 indicators, which played a crucial role.

The second tool is the Digital Readiness Assessment of organizations/LGUs, aimed at evaluating the digital readiness of organizations, which results in a roadmap that will serve for the further development of implementable projects and their positioning in relevant strategic documents. Digital transformation involves a process that starts with an assessment of the initial state, followed by clear planning of the digital transformation roadmap, with well-defined goals, implementation of planned activities, and final evaluation and continued monitoring of implemented projects. The end result of this tool is the creation of a Digital Transformation Roadmap, which serves as a plan for coordinating and initiating changes within LGU institutions as well as other organizations.

 

Success Measurement. Main results with regards to the focus area

The Support Tool for CAF in Local Self-Government Units

After developing the Guidelines for the Support Tool for CAF in Local Self-Government Units with the help of UNDP, key institutions for quality management in BiH piloted the tool in 10 local self-government units. All pilot projects were assessed through 43 pre- defined indicators, which, based on years of practice in local self-government units in BiH, best reflect the efficiency and results of their work. These organizations in BiH do not need to define new indicators but are required to establish baseline values, scoring, verification methods, and target values for each proposed indicator. The indicators are designed to evaluate the work of local self-government units, including the establishment of ethical codes, communication channels with citizens, alignment of job positions with development strategies, application of the law on free access to information, establishment of participatory bodies, inclusivity of administrative procedures, etc.

After the pilot phase, a baseline year was created with ratings for each indicator, along with recommendations for improvement through an Improvement Plan for areas with low scores (low indicator ratings). At the end of the pilot phase, concrete improvement plans were developed based on the assessment of indicators from the Support Tool for CAF in Local Self-Government Units. These plans would serve as the basis for donors to provide support to local self-governments in the following period for the implementation of their Action plans, as well as to group activities from multiple LGUs into projects. In 2025, it is planned to implement this tool in circa 20 new LGUs in BiH.

One of the significant results of applying this tool as a support CAF tool for LGUs in BiH was obtaining the CAF Label for the Town of Bihać, which was one of the first pilot projects. This was, in a way, proof that the methodology is successful. As a long-term decision for the public administration improvement process, this tool, as a support tool for CAF in LGUs, is recommended in all strategic documents for public administration reform. Additionally, for individuals who expressed a desire to become trainers for the CAF process and CAF for LGUs, a trainer training program was organized in collaboration with EIPA.

The Tool for Digital Readiness in Local Self-Government Units/Public Administration Organizations

The foundation for applying this tool is to create a Digital Readiness Roadmap for local self-government units/public administration organizations. This document must describe the initial state, but with a focus on the desired future state in the upcoming period. Like the previous tool, this one was also piloted in several local self-government units/public administration organizations. The piloting of this tool proved to be a key prerequisite for the digitalization process in the upcoming period for public administration organizations.

The essence of this process was the creation of a Digital Transformation Roadmap, which involved preparing a list of measures with brief descriptions of projects arranged by priorities in terms of their implementation. The realization of each measure in the roadmap leads to significant changes within local self-government units/public administration organizations, as well as in the overall environment for delivering public services. In addition to accelerating and facilitating the delivery of public services, it will increase the transparency and efficiency of public administration organizations, help prevent corruption, increase revenue and savings, contribute to greater user satisfaction, and serve as a generator for the development of the digital economy. This tool has been implemented in five local self-government units, with five digitalization roadmaps developed for towns in BiH.

The essence of the innovation and the transferability of the solutions introduced

Quality management and the CAF tool have been applied at various administrative levels in Bosnia and Herzegovina for over ten years. Before this project, there was no significant use of CAF in local self-government units (LGUs) in BiH, although other methodologies for measuring efficiency had been implemented. However, the innovative approach of the group of people involved in the realization of this project contributed to making CAF more accessible to employees in LGUs in BiH.

Employees in LGUs where the methodology was piloted highlighted that the creation of a certain number of indicators, which were familiar or recognized by them, was very important because these indicators can improve work processes and services for citizens. They particularly emphasized indicators related to the ethical code, integrity, and ethical behaviour of council members, the number of communication channels with citizens, involving citizens in the development of strategic documents, establishing participatory bodies for two-way communication between citizens and the administration, social inclusion, the implementation of annual and three-year plans, and the involvement of entrepreneurs and other partners, etc.

Furthermore, measuring performance based on these indicators highlighted the possibility of creating objective and credible development plans for LGUs, which could also help potential donors. Donors will be able to direct their resources to pre-prepared plans that align with the policies and objectives of the specific donors. The methodology developed for the purposes of this project is universal. When looking at the indicators that were added, which align with all nine CAF criteria, they are adaptable and objective for local self-government units (LGUs) in any country. What particularly stood out during the implementation of the project was that all decisions were made by consensus, which indicates that the employees who worked on the development of the methodology had extensive experience in applying CAF, and this is one of the key indicators of success. Additionally, it is important to note that employees from the LGUs in Prijedor and Tešanj (two towns in BiH), who had previously applied the CAF methodology in their organizations, provided significant support during the development of the methodology.

The Digital Readiness Assessment Tool, as the second tool in this case, is also universal and can be applied to all local self-government units in any country. Its innovation lies in the fact that after its implementation, a series of steps are identified that an organization, i.e., a local self-government unit, must take on its path toward digitalization. From an experiential perspective, the greatest success of all the project participants has been the networking of people that we achieved through collaboration with a large number of individuals from different administrative levels. Moreover, working with such a large group of people highlighted the positive two-way communication and the objective listening to issues from all organizations.

Lessons learnt

When we look back at the project, several factors stand out as key to the success of such a complex initiative, as well as several lessons learned that we would like to share with others:

  1. “Listen to each other, whether in the team or not.” As mentioned earlier, this project involved people from several organizations and different administrative levels in Bosnia and Herzegovina. Although common problems and project goals were outlined at the beginning, all participants must pay attention to what others are saying about their problems related to the project’s theme. Only by establishing two-way communication, both official and unofficial team members can a project succeed. This approach also leads to respect for different perspectives and perceptions of the given problem.
  1. “We are the best, we want to see how others are ” Generally speaking, people by nature enjoy competition. This is most often expressed through sports, but it also applies to public administration, especially at the level of local self- government units in Bosnia and Herzegovina. The competitive spirit is important, and from a fair play perspective, it ensures that everyone has equal conditions. When you recognize that a competitive spirit exists, use it for positive progress toward achieving the goals!
  1. “People are like unpolished diamonds in every ” It is very important to have people who are willing to work and share their previous experiences with others. Also, always keep in mind that for new knowledge, you may need some external experts. However, within your own organizations, you always have a number of individuals who are the so-called “unpolished diamonds” in a specific field. Take advantage of today’s technology, communicate with as many of your colleagues as possible, and someone may come forward with a solution to a problem where you’ve reached a dead end. It was from these kinds of people that we received the best ideas, which we successfully implemented during our project.

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complete study

About the author(s)

Kenan Avdagić
Civil Service Agency BiH (BiH CSA) in cooperation with Civil Service Agency of Federation of BiH (FBiH CSA) / Civil Service Agency Republic of Srpsa (RS CSA) / Public Adminstration Reform Coordinator’s Office (PARCO) / UNDP
Bosnia and Herzegovina

Other best practices

Bosnia and Herzegovina
Written by: Kenan Avdagić
Project Facilitator
of Civil Service Agency BiH (BiH CSA) in cooperation with Civil Service Agency of Federation of BiH (FBiH CSA) / Civil Service Agency Republic of Srpsa (RS CSA) / Public Adminstration Reform Coordinator’s Office (PARCO) / UNDP

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CAFficiency (www.cafficiency.suk.gov.rs)

Received Golden Case recognition at the CAF Users Event 2025 in Warsaw
September 2025 -
The Human Resources Management Service (Government of the Republic of Serbia)
, Serbia