Managing Nordic Local Governments

Table of Contents

1. Frontmatter

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2. Chapter 1. The Nordic Municipal CEO

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   Morten Balle Hansen, Dag Olaf Torjesen, Harald Torsteinsen

   Abstract

   This book analyses the municipal chief executive officer (MCEO) of Nordic municipalities. The Nordic countries operate a distinct model of local government in the context of the welfare state. As there are some variations among the countries, it is important to analyse this model in comparative perspective. In the Nordic countries, the post-war expansion of the welfare state took place primarily in local government, which became the main provider of welfare services and one of the largest employers in these countries. In this chapter, we present the rationale for the book, the Nordic municipal context in which the MCEO works, our research questions, and basic theoretical approaches. Finally, we briefly present the research design, methodologies, and outline of the book.

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3. Chapter 2. Demands, Constraints, and Choices of Nordic Municipal CEOs: A Conceptual Framework

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   Morten Balle Hansen, Rolf Solli

   Abstract

   This chapter outlines the basic theoretical approaches of the book, which will be used to frame the analyses in the forthcoming chapters. Our approach is rooted in theories of organizations, leadership, and public administration. Municipalities are variously seen as local political institutions, organizations, part of the welfare state, and local communities responsible for delivering services within a territory, with varying regional dynamics. Municipal CEOs (MCEOs) are seen as both public servants and leaders operating within a governance system influenced by several, often competing institutional logics, causing tensions, paradoxes, and occasional dilemmas for the leadership of MCEOs (MCEOs operate in the area between politics and administration). From this perspective, seven related contextual conditions of importance to the work of MCEOs are outlined in the introduction, and their implications are discussed in the remainder of the chapter. The seven contextual conditions and their relation to the MCEO position are integrated into an adapted version of the demands–constraints–choices model. This model is heuristic in nature and facilitates the study of the dynamics and stability that apply to Nordic MCEOs in relation to our research questions.

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4. Chapter 3. The Nordic Local Government Model and the Municipal CEO

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   Eva Marín Hlynsdóttir, Anna Cregård, Siv Sandberg

   Abstract

   In this chapter, the notion of a Nordic local government model is discussed in relation to the position of the municipal chief executive officer (MCEO). We elaborate on four key areas: decentralization, fiscal capacity, autonomy, and horizontal power relations. The common characteristics of the Nordic countries in the context of the four key areas are summarized as a way in which to interpret the Nordic local government model within a primarily shared context. However, there are also nuances in the differences between the individual countries. The Nordic local government model allows the MCEO to play a role that is both interesting and influential.

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5. Chapter 4. The Danish Municipal CEO: Managing the Local Welfare State

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   Morten Balle Hansen

   Abstract

   This chapter revisits research from the 1980s and 1990s and analyses the collective profile of the Danish municipal CEO (MCEOs) and its evolution since the 1980s. The analysis shows the embeddedness of the MCEO position in (a) the formal structure of local liberal democracy, (b) the long-term historical trends of public sector expansion, which in the Danish (Nordic) context primarily took place at the local government level, and (c) its associated large, expanding multi-task municipal organizations influenced by (d) national policy priorities and (e) globally diffusing models of governance, such as the new public management (NPM) reform wave of the 1980s. The analysis provides a unique portrait of the changing profile of the MCEOs managing these organizations, which currently employ around 18% of the Danish workforce and 56% of public employees, spend more than 60% of public consumption, and deliver most of the core services of the Danish welfare state. Building on primary and secondary data and previous as well as the most recent research, the chapter provides crucial new knowledge of management and leadership in Danish local government.

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6. Chapter 5. The Finnish Municipal CEO: A Strong Professional Leader in a Changing Political Environment

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   Siv Sandberg

   Abstract

   The early institutionalization of the municipal chief executive officer (MCEO) in Finnish towns in 1927 has had long-standing repercussions for the power balance between politics and administration in Finnish local government. The tension between a strong appointed MCEO and a weaker political leadership has been a recurring theme in the Finnish debate. One key objective of the 1995 and 2015 reforms of the Local Government Act was to strengthen the role of political leadership vis-à-vis the MCEO. This chapter demonstrates that the position of the MCEO in the local politico–administrative system remains strong, despite the reform efforts and changes in the power relations between the MCEO and politicians.

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7. Chapter 6. Structuring the Unstructured: The Very Special Case of the Icelandic Municipal CEO

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   Eva Marín Hlynsdóttir

   Abstract

   The position of the Icelandic municipal chief executive officer (MCEO) is the single most important municipal administrative position. The Icelandic system has strong Nordic traits, with a strong local identity, strong local councils, and a wide range of tasks. However, this trend has only recently been manifested, as the arrangements of Icelandic local governments have changed considerably in the past decades. This chapter discusses the history of the MCEO position and demonstrates how the past is effectively influencing the present. The chapter shows how the Icelandic case both diverges from and converges with those of the other Nordic countries. Finally, special emphasis is placed on demonstrating the similarities and differences between different types of MCEOs and the main challenges of the complexity of the Icelandic case.

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8. Chapter 7. The Contemporary Norwegian Municipal CEO

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   Dag Olaf Torjesen, Harald Torsteinsen, Hans Petter Saxi, Charlotte Kiland, Tor-Ivar Karlsen

   Abstract

   This chapter describes the evolution of the Norwegian municipal chief executive officer (MCEO) from 1980 to 1992 and 2018, when the position was weakened politically but strengthened administratively. Today, the Norwegian MCEO corresponds to Mouritzen and Svara’s council–manager model, making it one of the most powerful in the Nordic region, second only to the Finish MCEO. Despite multiple significant contextual changes in the last two to three decades, the essential role of the Norwegian MCEO has remained remarkably stable, demonstrated in survey data from 1997 to 2017. Nevertheless, the data also show that the biographical characteristics of the MCEO have undergone considerable change during this period, most notably the increase in the proportion of female MCEOs from 7% to 30%. Further, today’s MCEOs are older and more highly educated, especially in disciplines such as economics, administration, and public management, reflecting the strong emphasis on economic management and performance in Norwegian municipalities. Finally, MCEOs are met with increasing expectations to combine innovation and management, cooperate internally and externally, and govern municipal affairs through complex, hybrid networks.

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9. Chapter 8. Twenty-Five Years of the Swedish Municipal CEO

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   Anna Cregård

   Abstract

   This chapter focuses on the Swedish municipal CEO (MCEO). The development of the role over the last 25 years is analysed in terms of stability and change. The chapter discusses the changes that have taken place in terms of the demands and constraints of the role. These changes are further compared with changes in actual performance relating to the priorities of MCEOs. The results show that while contextual factors, background, and reasons for job termination have changed considerably, small or moderate changes can arguably be observed in the MCEOs’ role performance. The role of the MCEO is discussed as a stable and institutionalized role in an otherwise changing world. However, there are some minor long-term indications that the role may become either more of an extended arm of majority politicians or a professional, administrative head—or perhaps both. The findings are based on a large amount of survey data collected every five years for a quarter of a century.

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10. Chapter 9. The Nordic Municipal CEO Model: Stability in Change

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    Eva Marín Hlynsdóttir, Anna Cregård, Morten Balle Hansen, Siv Sandberg, Rolf Solli, Dag Olaf Torjesen, Harald Torsteinsen

    Abstract

    In this concluding chapter of the book Managing Nordic Local Governments: Paradoxes and Challenges of the Municipal Chief Executive, we present the main findings in relation to the Nordic municipal chief executive officer (MCEO) model of embeddedness. The MCEO role is discussed in relation to each of the seven conditions: the local–national welfare state, the governance model, regional dynamics and disparities, political–administrative organizations, leadership expectations, public servants, and career systems. Each of the seven conditions is put into context with the demands, constraints, and choices of the MCEO position to demonstrate the entangled institutional web of the position of the Nordic MCEO. The chapter concludes by discussing the research questions of the book. The main findings of the book suggest that the fundamentals of the MCEO position remain relatively stable over the study period, demonstrating incremental rather than major changes. In sum, the role of the Nordic MCEO has a long tradition, and its importance does not seem to be diminishing; rather, it is the opposite.

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11. Backmatter

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