Building an Agile Bureaucracy

Several ongoing disruptive changes have forced a complete transformation of the bureaucracy to provide public services to the people and open up investment.

There are at least four major changes taking place: the Covid-19 pandemic crisis, the rapid digitalization and convergence of technology in various lives, the shift of the older generation to the millennial generation (Gen-Y and -Z) and the strengthening of the flexibility and mobility of the people virtually.

Bureaucratic change is a must toward (the creation of) an agile bureaucracy. This article will discuss how to build the agility of the bureaucracy.

Global flexibility phenomenon

A 2019 Robert Walters survey shows a fundamental global shift in the profile of the global labor market: 81 percent of professionals prefer to start and end work on a flexible basis; 52 percent of workers agree that flexibility in work increases commitment to work; 40 percent of job seekers will refuse to accept a job if it does not meet their need for flexible work.

Also read: Bureaucratic Reform Report Card

The phenomenon of increasing flexibility at work is currently happening not only in the private sector, but also in the public sector. In a survey conducted by the Harvard Business Review in 2019, it was revealed that the motivation to work among the millennial generation has also undergone fundamental changes; flexibility of time and place of work occupies the first place (68 percent), followed by access to training and development (48 percent), only 38 percent have salary motivation and material benefits, followed by opportunities for intrapreneurship in making various innovations (35 percent).

Kompas

Minister of Administrative Reform and Bureaucratic Reform (Menpan and RB) Tjahjo Kumolo, held a press conference related to "Dissolution of Nonstructural Institutions" at the Kemenpan and RB Office, Jakarta, Tuesday (1/12/2020).

How do we interpret information about changes in flexibility globally for the context of bureaucratic transformation in Indonesia? An established bureaucracy can no longer be maintained. A hierarchical tiered bureaucratic structure, working based on rigid business processes, and a rule-based working paradigm is no longer in line with the needs and expectations of the people, let alone the industrial world.

This is of course consistent with what President Jokowi has always said on various occasions that bureaucracy must work fast and agile, be oriented to the interests of the public service, and open up as much investment opportunities as possible in Indonesia.

Also read: New Normal Bureaucracy

If we look at the facts of the condition of governance in Indonesia, it seems that Indonesia still has to work hard to realize bureaucratic flexibility and agility because the ease of doing business in Indonesia has not progressed well (ranked 72nd in 2018 and 73rd in 2019), while the level of effectiveness of our bureaucracy is still very low (with an index value of 60.1 in 2019).

Bureaucratic reform that is currently being carried out by the government has a strategic and critical role in changing the cultural DNA and basic structure of the Indonesian bureaucracy which is very rigid, traditional bureaucratic and rule-based. This rigidity leads to lengthy decision-making processes for public services and business and non-business licensing. What the government has done by simplifying Echelon III (administrator) and Echelon IV (supervisor) into functional positions is appropriate and must be continued by strengthening the competence of functional officials to be able to carry out their duties and functions properly.

Also read: Cutting Down on Bureaucracy

This is the first step to move the rigidity of the process towards the flexibility of performance-oriented and results-oriented bureaucratic work. With the help of technological convergence developments (such as IT, robotic, nano), bureaucratic flexibility will be easier to do because there will be virtual integration (either vertical, horizontal or diagonal) as wholly and fundamentally.

KOMPAS/I GUSTI AGUNG BAGUS ANGGA PUTRA

One of the service rooms of the Setu District office, South Tangerang City, Banten, Tuesday (12/1/2021). Not many people come to ask for services when the implementation of restrictions on community activities.

New bureaucratic order

The global phenomenon that has been explained requires a new Indonesian bureaucracy which is based on three important things. First, a paradigm shift towards a dynamic, networking and collaborative bureaucracy. This is indicated by bureaucracy that always adapts to various changes in the strategic environment, changes in public expectations, and the need for a healthy and strong market.

Bureaucracy must no longer move linearly and sequentially, but must make quick and large jumps or breakthroughs and move in multiple geometrical sequences.

Therefore, a system of values, behaviors, and bureaucratic competences must be prepared to create intrapreneurship, namely entrepreneurial orientation that can create various innovations and better productivity.

Also read: Covid-19: Democratic Recession

In this new paradigm, bureaucracy must not and cannot work alone anymore, let alone concerned with its own unit. On the other hand, bureaucracy must collaborate and build network not only with other units within the government, but also with various stakeholders outside the government (collaborative and network governance).

Collaboration is always marked by good role orchestration and harmony among various parties, sharing outcomes and impacts in planning/budgeting for development programs and activities, governance, and public services.

Second, institutions and business processes of bureaucracy towards digitalization and flexibility (digital governance). The current bureaucratic rigidity has to be replaced by redesigning the organizational structures and business processes based on performance and role, not based on duties and functions as has been the custom and legal norms in Indonesia. Performance-based organizational design prioritizes the division of the roles of ministries/agencies and organizational units at the local administration in terms of performance indicator targets to be achieved with a comprehensive concept of the whole network governance, where each organizational unit is linked to the strategic goals set by the president.

This will form a flexible bureaucratic organizational structure with virtual integration (flatter), less hierarchical, competence based, performance and productivity-oriented organization.

This organizational model is called the squad model or in the Indonesian Army military organization is called the Kostrad Model, which is an organizational model whose basis is the achievement of results supported by various competencies of the troops in it. The squad model must be based on the competence of functional positions and the flexibility of movement of the state civil servants (ASN), both within one agency (ministry/institution/regional administration) as well as between agencies.

Digitalization and globalization force fundamental changes in the bureaucracy.

Thus, various development programs and services to the community can be achieved with strong synergy and collaboration between units. This will simultaneously reduce silo mentality and partial egoism which is currently a disease in the Indonesian bureaucracy.

Third, a cross-generation cultural change is needed towards a more participatory, co-creative, and co-innovative bureaucratic leadership. An agile bureaucracy requires a new leadership character that gives the millennials an opportunity to create various innovations in the government. In the current transition period, namely the shifting from the Baby Boomers generation and the Gen-X (as the head of the bureaucracy) to the Gen-Y and Gen-Z (millennial generations), the awareness and willingness of the older generation are needed to change the hierarchical authoritarian leadership style to an empowering leadership style (leadership from within).

Also read: Reviving Democracy

These three changes of order will cause some bureaucrats to feel uncomfortable. However, this must still be implemented and managed properly. The Covid-19 pandemic has taught us all that change must be forced. Major changes will occur in the near future due to ecosystems that have been and are changing continuously. Digitalization and globalization force fundamental changes in the bureaucracy.

DOK. PRIBADI

Eko Prasojo

The number of organizational units and state civil institutions will be reduced with the help of technology, the role of humans will be replaced by robots and IT. Reducing the number of apparatus, normally or coercively, is inevitable for an era of agile and capable bureaucracy. What is needed is change management to reduce the resistance that will arise. I am optimistic that Indonesia can become the seventh most powerful country in term of economy by 2030, as predicted by McKinsey, if these bureaucratic institutional factors can be prepared properly. Hopefully.

Eko Prasojo, Professor of FIA UI and Chairman of the Independent Team for National Bureaucratic Reform

This article was translated by Kurniawan H. Siswoko.