The Moravian-Silesian Region is one of 14 superior regional self-governing units in the Czech Republic. It has a population of 1,203,299. The region consists of a total of 6 districts and has a total of 300 municipalities, 5 of which are statutory cities, 35 towns and 3 townships. The region has an area of 5,427 km.
The Moravian-Silesian Region has established 222 organisations in the field of education (182), social matters (20), healthcare (10), culture (7) and transport (3). These organisations have approx. 17,000 employees. Up until 2013 the region assumed a departmental approach to governance of regional organisations by individual branches. The regional authority of the Moravian-Silesian Region carried out establishment functions without direct interconnection between the strategic and operative goals of individual departments and without any great motivation to act and appear in a united manner.
In 2013 the Moravian-Silesian Region was the first region in the Czech Republic to start implementing corporate governance standards. The concept of providing shared services, i.e. services utilised by multiple organisations, was subsequently accepted and the approach to management of allowance organisations was changed from departmental to corporate. This means that the Regional Authority is not just a governing authority carrying out administration, but assumes the role of corporation headquarters. Together with the established organisations we represent one unit and we standardise and computerise supporting processes. The principles of at least medium-term planning and assurance of long-term sustainability are respected when carrying out activities.
The project is anchored in the Regional AuthorityÕs Strategy for 2015Ð2020, which clearly determined the direction of the Regional AuthorityÕs management and also defined the strategic approach to governance by the entire regional corporation, with individual goals to ensure a higher standard of execution of establishment functions and to transparently and effectively manage purchasing processes.
The main activities of the allowance organisations are fully within the competence of the individual organisations. Only supporting processes are provided by means of shared services, i.e. operating and auxiliary activities typical for organisations of a similar nature. Shared services focus on the field of central and associated purchasing, IT services, management of economics, asset management, energy management, marketing, etc. Organisations can therefore concentrate more fully on their mission.
The management of the organisations did not initially consider the change in approach to management of organisations from departmental to corporate completely positive, despite the fact that the organisations retained full competence, shared services save funds, improve the effectiveness of processes and simplify communication between the organisations and the founder. Obstacles on the part of organisations during implementation of the concept of shared services were particularly:
- The managementÕs concerns regarding loss of competence
- The unwillingness to change established processes, even though these were no longer effective
- The unwillingness to work with new applications
- The computer literacy of employees of the organisations
- Insufficient technical equipment
- Insufficient internet connection
These obstacles were dealt with by establishment of new communication channels, repeated training courses, workshops and personal visits to organisations. Organisations were supported by execution of work procedures, standards and methodologies in the field of economics and ICT. For the purpose of motivation, the managements of regional organisations were regularly informed of the savings generated by operation of shared services, with the saved funds remaining in the organisationÕs budget to be used for its further development.
More, complicated and extensive projects of the type of implementation of a unified salary and personnel system or unified economic system, are currently in the process of being implemented. High investment costs are estimated for these projects. These costs may be covered from own funds with financing distributed over multiple years, or by means of external financial support, e.g. from EU structural funds.
The duty to fulfil all statutory standards and adapt to the terms of subsidy titles (strategic concepts, the act on public tenders, competitive situation on the market, the donorÕs rules) is reflected in their preparation and realisation.
Initial problems were successfully resolved in most cases. Common solutions useful for the involved parties were always found. Corporate governance was validated and will continue to be practiced in the future. The planned new strategy for 2025 includes the goal ÒA well managed corporationÓ.
See the file Images to the Text.pdf, Picture 1 Ð The strategy of the Regional Authority of the Moravian-Silesian Region until 2025.