Transformation of Local Leadership - Narrative on Changed Interaction

Open Jou nal o Leade ship, 2015, 4, 117-128 Published Online Decembe 2015 in SciRes. h p://www.sci p.o g/jou nal/ojl h p://dx.doi.o g/10.4236/ojl.2015.44011 How o ci e his pape : Ha e i, A., Ai aksinen, J., & Paananen, H. (2015). T ans o ma ion o Local Leade ship—Na a i es on changed In e ac ion. Open Jou nal o Leade ship, 4, 117-128. h p://dx.doi.o g/10.4236/ojl.2015.44011 T ans o ma ion o Local Leade ship— Na a i es on changed In e ac ion A o Ha e i, Jenni Ai aksinen, Henna Paananen School o Managemen , Uni e si y o Tampe e, Tampe e, Finland Recei ed 24 Sep embe 2015; accep ed 22 No embe 2015; published 25 No embe 2015 Copy igh © 2015 by au ho s and Scien i ic Resea ch Publishing Inc. This wo k is licensed unde he C ea i e Commons A ibu ion In e na ional License (CC BY). h p://c ea i ecommons.o g/licenses/by/4.0/ Abs ac This a icle in es iga es he ans o ma ion o local go e nmen leade ship as a change in in e ac- ion. T adi ional in e ac ion pa e ns a e challenged by he inc easing complexi y o go e nance ela ions. The empi ical analysis is based on biog aphical na a i es o e y expe ienced (bo n in 1945-1950) Finnish municipal chie execu i e o ice s. The na a i es o m a ich se o in e p e- a ions abou he changes ha ha e occu ed in he ole o municipali ies du ing he las ou decades. Acco ding o he na a i es, bo h he quan i y and quali y o in e ac ion ha e changed ma kedly: in e ac ion is needed a nume ous su aces, bu he quali y o in e ac ion is unde going al e a ion. The cu en end o ins an in e ac ion equi es mo e si ua ional awa eness, social skills and quicke esponses. Keywo ds Leade ship and Managemen , Local Go e nmen , Na a i e Resea ch, Go e nance 1. In oduc ion “This is he 110-me e hu dles. In a momen hu dles c ash; ye one needs o each he inish line e en i all o he hu dles a e down. One may no all down be o e he inish line is c ossed. Howe e , he ime is ak- en.” Chie execu i e o ice o a medium-sized municipali y . This a icle in es iga es he ans o ma ion o local go e nmen leade ship as a change in in e ac ion. T adi- ional in e ac ion pa e ns a e challenged by he inc easing complexi y o go e nance ela ions. We shall show ha he e is an impo an ans o ma ion—in bo h he quali y and quan i y—o in e ac ion; a change ha e- qui es new skills and new in e ac ion pa e ns om local leade s. Ins ead o ocusing on mayo s, we ocus on chie execu i e o ice s (CEOs), he highes ci il se an s in Fin- A. Ha e i e al. 118 nish local go e nmen . We ake as g an ed ha he ope a ional en i onmen o local leade ship has changed in consequence o he inc eased complexi y o go e nance ela ions (see La in, 2009: p. 22). We wan , howe e , o ob ain a be e unde s anding o how local leade ship has changed. The esea ch ques ion is: How is he inc eased complexi y seen in in e ac ion needs and pa e ns and how does his a ec he wo k o a municipal CEO? Ou a icle con ibu es no only o he deba e on local leade ship bu also o he deba e on go e nance, wi h i s discussion o he “messy” na u e o p esen -day public go e ning, and wi h he de elopmen and implemen a- ion o public policy h ough in e ac ion be ween di e en socie al ac o s (see Rhodes, 1999; Jessop, 2000; Pe- e s, 2002; Pe e s & Pie e, 2000; Kicke e al., 1997; Milwa d e al., 1993; John, 2001). Bu while mos o he li e a u e on go e nance explo es ques ions o in e -o ganiza ional s uc u es, we examine how local leade s—as ac o s in di e en ne wo ks—in e p e changes in go e nance ela ions as pa o hei leade ship en i onmen . Go e nance heo y has unde lined he complexi y o socie ies and he managemen o in e -o ganiza ional ne - wo ks, bu i has paid li le a en ion o he dynamics be ween in a-o ganiza ional and in e -o ganiza ional ela- ions. The empi ical analysis is based on biog aphical na a i es o e y expe ienced (bo n in 1945-1950) Finnish municipal chie execu i e o ice s. The na a i es o m a ich se o in e p e a ions abou he changes ha ha e occu ed in he ole o municipali ies du ing he las ou decades. The na a i es also gi e a wide a ie y o de- sc ip ions abou he cu en ole and pa e ns o in e ac ion in he leade ship wo k o local execu i es. In addi- ion, ou empi ical da a o e in e es ing explana ions o c ucial ac o s unde lying he obse ed leade ship changes. Examina ion o how he Finnish municipal CEOs desc ibe impo an changes in hei leade ship en i onmen e eals in-dep h amilia i y wi h cu en in e na ional discou ses on ne wo k go e nance, he ole o he s a e, ci izen and ma ke s, and he agmen ed na u e o poli ics and adminis a ion. The aim o his pape is o explo e how he ans o ma ion o local go e nmen leade ship in luences on in e ac ion, and wha kind o changes can be de ec ed. This pape is signi ican by p o iding an in e p e a i e sigh o changes happened by hose who ha e li ed along local leade ship ans o ma ion du ing he pas decades. The da a we e collec ed om one coun y and a e hus bound o a speci ic cul u al con ex . I is jus i ied, howe e , o suppose, ha he na a i es o Finnish mu- nicipal CEOs can bo h suppo and inc ease wide heo e ical unde s anding conce ning local leade ship change while also p o iding in e p e a ions o and explana ions o a phenomenon ha is basically in e na ional. 2. Local Leade ship as In e ac ion in Go e nance Rela ions Acco ding o a e y gene ic de ini ion, leade ship can be unde s ood as in luence o e o he s. The leade aspi es o in luence people o ac in ha way ha culmina es in he ul illmen o he goals o an o ganiza ion (Yukl, 2010; No house, 2007: p. 3). In his con en ional way o hinking, he co e o leade ship is abou de ining he di ec ion, in luencing ac ions, mo ing hings and people, and a oiding ine ia. Bu leade ship en ails much mo e: i is a complex social phenomenon (Bennis, 1959) ha is ague in subs ance o limi s (Pede sen & Ha ley, 2008) and is always a ec ed by i s con ex (He sey & Blancha d, 1988). Recen leade ship li e a u e has highligh ed bo h he oic indi idual leade ship (Milne & Joyce, 2005) and sha ed leade ship (Pea ce & Conge , 2003; Wis e e al., 2014), e lec ing he di e se and complex na u e o he phenomenon. The eme ging complexi y leade ship heo y has poin ed ha social p ocesses a e oo uncon olled o be a ibu ed ei he o a single indi idual o o p e-planned p ocesses (Finkels ein, 2002; Lich ens ein e al., 2006). The e is much li e a u e on public sec o leade ship. A good deal o his li e a u e is ai ly gene ic and seems o assume ha public sec o leade ship is leade ship ega dless o he adminis a i e le el, o ganiza ion o scope o he ac i i y. We a gue ha municipal leade ship is unlike any o he ; ha a municipal CEO wo ks in a e y special en i onmen a ec ed by many complex go e nance ela ions (Siegel, 2010: p. 140). The con ex o local leade ship is changing essen ially. Acco ding o Liddle (2010: p. 658), he cu en dy- namic and complex mul i-agency en i onmen o public leade s has ende ed many es ablished heo ies obsole e, as “inapp op ia e explana o y models o complex eali ies.” O ganiza ion heo y has long emphasized he o - ganiza ion’s ela ion o i s en i onmen and leade s’ ac ion a in e aces (Ka z & Kahn, 1966). Fo some ime, his phenomenon has been clea ly isible in public sec o o ganiza ions and local go e nmen , oo. On he one hand, his de elopmen can be seen as he change om adi ional adminis a ion o new public managemen , and on he o he hand as mo ing owa ds new public go e nance (Osbo ne, 2006, 2009). Today, local leade ship akes place mo e o less in he amewo k o go e nance, a concep e e ing o he new p ocess o go e ning, A. Ha e i e al. 119 he changed condi ion o o de ed ule and he new ools wi h which socie ies a e go e ned (Rhodes, 1996: pp. 652-653). The e is no uni o m go e nance heo y, only a numbe o a ia ions and di e en sub-concep s (Schneide , 2012; Klijn, 2008). The co e idea o go e nance is ha hie a chical ela ions a e being eplaced by long- e m ne wo k- ype ela ionships be ween key indi iduals loca ed in a di e se se o o ganiza ions. Bounda ies wi hin he public sec o as well as be ween he public, p i a e and hi d sec o s a e blu ed. Public policy is planned and implemen ed in in e ac ion be ween di e en ac o s, and hese in e ac ions a e based on dependencies, us and he exchange o in o ma ion (Rhodes, 1999; Jessop, 2000; Pe e s, 2002; Pe e s & Pie e, 2000; Kicke e al., 1997; Milwa d e al., 1993; John, 2001). In he amewo k o go e nance, a municipali y can be seen as a pa o an in e ac ion ne wo k made up o mul iple ac o s. A municipali y canno ac independen ly o de ached om o he ac o s, bu ac s a he in close in e ac ion wi h di e en ac o s, bo h ho izon ally and e ically. Go e nance heo y highligh s he municipali- y’s communal and ne wo k cha ac e . The wo k o local leade s is no limi ed o municipal o ganiza ion. In he handling o asks, i is impo an o coope a e wi h many ac o s, e en hose weakly bonded o he municipali y locally and sup a-locally. In ou in e p e a ion, go e nance amewo k speci ically means ne wo k go e nance (see Rhodes, 1999; Klijn, 2008) highligh ing he impo ance o us and ecip oci y in building and sus aining long- e m ela ions (Kicke e al., 1997). F om he go e nance pe spec i e, i is unde s andable ha many o he newe pe cep ions o leade ship em- phasize in e ac ion as he ounda ion pilla o he leade ’s wo k. As Pede sen and Ha ley (2008: pp. 334-335) poin ou , he spaces o public leade s a e c ea ed a he in e ace be ween bounda ies o he public and he p i- a e, poli ics and adminis a ion, he ci izen and deli e y, and hus leade ship is essen ially abou “communica - ing s a egically”. Siegel (2010) analyzed he ole o he municipal chie adminis a i e o ice (CAO) in a con ex ha sha es many use ul elemen s wi h ou app oach. The municipal ci il se an , as many o he manage s, mus lead in h ee di ec ions (Min zbe g, 1997; Siegel, 2010). The adi ional leading down e e s o ela ions wi h subo di- na es in he o ganiza ion. Leading ou e e s o ela ions wi h impo an s akeholde s who, hough no belonging o he municipal o ganiza ion, a e none heless ex emely impo an playe s in he sys em as a whole. Leading up desc ibes ela ions wi h he poli ical o ganiza ion o a municipali y, he council and he execu i e boa d. Siegel (2010: pp. 159-160) conside s he wo k o a municipal ci il se an unique in he way he di e en leading di- ec ions mus be handled. Acco ding o his s udy, he municipal CAO mus emain sepa a e om elec o al poli- ics bu mus also be poli ically sensi i e as well as ope a ionally o ien ed, and a he same ime in ol ed in he poli ics o go e ning socie y. We know ha he wo k o a municipal CEO is challenging. One ac o impac ing on hese challenges is he e y as scope o municipal asks. The highes municipal ci il se an has he di icul job o c ea ing a com- p ehensible en i y om a some imes qui e agmen ed and subs an ially complex ensemble. The job is challeng- ing in pa because o he numbe o go e nance ela ions p esen . I he job me ely in ol ed aking ca e o he o ganiza ional le el o a municipali y, i would be much easie . In addi ion o he con en ional go e nance ela- ions, which include he pe sonnel and cus ome s, he municipal CEO handles ela ions wi h poli icians, local and egional companies, and wi h ci izens o name jus a ew (Siegel, 2010: p. 159). The Finnish municipal CEO sys em di e s om he in e na ional e e ences because o he s ong posi ion o he highes municipal ci il se an , which is close o ha o a mayo . Ins ead o hei o mal posi ion and man- aging ools, he CEOs’ wo k and leade ship a e based on pe sonal and social in luence on people. Municipal CEOs do no ha e di ec ional powe o e municipal poli icians, who make he inal decisions. In consequence, main aining balance and nego ia ing a e impo an , bu o en complex, ields o leade ship. The municipal CEO’s ole is limi ed wi hin he in e aces be ween he p epa a ion and making o decisions, and alls be ween he adminis a ion and poli ics. 3. Na a i es as Resea ch Ma e ial This a icle applies na a i e analysis complemen ed wi h biog aphical pe spec i es. The app oach is based on a iew acco ding o which people deal wi h hei expe iences by elling s o ies. Th ough he s o ies, people gi e meanings o ac ions, e en s and phenomena, and analyze hei expe iences by linking hem o la ge and mo e A. Ha e i e al. 120 gene ic sagas, ales and s o ies. Na a i es allow cul u al lea ning and unc ion as he knowledge ese e o a communi y, e en a socie y. Na a i es can be used o disce n pas e en s, e en a li e as i has been li ed. In his case, na a i es e lec on local go e nmen leade ship. The na a i e app oach allows he s o y elle o obse e pas ac ions and e en s om a di e en poin o iew. Some imes na a i es can be seen as me apho s o social change, o hey can p oduce pa allel in e p e a ions o c ucial e en s in a socie y (see, e.g. Sa bin, 2004; B une , 1990). This s udy is based on he na a i es o 17 e y expe ienced Finnish municipal chie execu i e o ice s. These municipal CEOs, bo n be ween 1945 and 1950, belong o he Baby Boom Gene a ion. In o al, hese 17 leade s ha e held a ious posi ions in mo e han 100 municipali ies and ha e wo ked as CEOs in app oxima ely 50 di - e en municipali ies. The in e iews ook place in Decembe 2012 and Janua y 2013. A ha ime he in e ie- wees we e ei he s ill ac i e in wo king li e o had ecen ly e i ed. They we e selec ed by disc e iona y sam- pling. The c i e ia we e hei da e o bi h and hei long expe ience as a municipal CEO. In o de o ensu e a easonable mix o di e en ypes o local au ho i ies and leade s wi h a ying backg ounds, we emphasized he he e ogenei y o he sample (men women, u al-u ban a eas, di e en poli ical backg ounds and a ious pa s o he coun y). The eason o ocusing on his g oup’s expe iences is hei long ca ee s in municipal managemen . They ha e been able o ollow he e olu ion o Finnish socie y o se e al decades. They ha e seen a ious phases, pheno- mena and s ages o de elopmen all he way om 1970s up o he p esen day. Thei yea s o expe ience ha e p oduced mul iple iews conce ning he Finnish wel a e socie y and municipal managemen , including he changes ha ha e occu ed in he wo k o municipal manage s. Thei social ese es o anecdo es encompass aci knowledge and ision h ough which he de elopmen and cu en s a e o municipal managemen can be s uc u ed and analyzed. The in e iews we e conduc ed and he na a i es we e ga he ed wi h a ligh hema ic app oach. The in e - iewees we e encou aged o be ank when sha ing hei expe iences abou hei li e and wo k as municipal CEOs. The esul s we e as ounding: he in e iews we e ull o i id desc ip ions o ac ions, e en s, pe sons and insigh s as well as in-dep h analysis o he changes a ec ing hei leade ship and municipal li e as a whole. By applying a na a i e app oach and a wide hema ic ame, i was possible o iden i y poignan ea u es and ac o s ha we e key elemen s o change in he municipal manage s’ wo k. In hese s o ies, expe iences gained o e di e en ime pe iods and in di e en places blend oge he and a e, in many espec s, collec i e. The li e s o ies combine he municipal CEOs’ subjec i e expe iences in o la ge de elopmen cycles o local go e nmen and leade ship. The s o ies e eal how ce ain e en s de eloped, wha he causes and consequences o hese e en s we e, and how di e en de elopmen s and u ning poin s a e linked oge he . Th ough hese s o ies he chie execu i es also cons uc and econs uc hei iden i y as local leade s. S o y elling has a cons uc i e ole. S o ies and na a i es p o ide an oppo uni y o p oduce new in e p e a- ions, e en o c ea e new o ganiza ional o ins i u ional iden i ies (see Manu i & Mininni, 2013). The s o ies we hea d we e e y e lec i e— he saga o he ole o local go e nmen in socie y in e wined wi h he s o ies o indi idual pe sonal g ow h as a leade . The s o y o ein en ing local go e nmen suppo ed he s o y o leade - ship de elopmen . The basic o ien a ion in he s o ies was ans o ma ion: he ans o ma ion o he municipali y, he ans o ma ion o a socie y, and he ans o ma ion o leade ship and he ools used in he local leade ’s e e- yday wo k. The collec ed na a i es i idly desc ibed he pa hs o change and he essen ial phases o he e olu- ion o municipal li e in Finland. In addi ion, he leade s also deeply analyzed he global ends seen in he ans o ma ion o Finnish socie y a la ge. Nex we p esen ou analysis, d awing on he na a i es ha show ha bo h he quali y and quan i y o in e- ac ion ha e changed. To acili a e s uc u ing he na a i es on in e ac ion, we place hem in di e en go e - nance ela ions. In e ac ion akes place on he inges and in he ela ions, so he changes a e seen mos clea ly in he ela ions as well. 4. The Na a i es on Leade ship T ans o ma ion: F om he C ea o o Long-S anding Rela ionships o an In e ac i e All-Rounde The 17 municipal CEOs in e iewed o ou esea ch ell s o ies on local leade ship in he mids o socie al changes and as pa o he ans o ma ion o he No dic model o local go e nmen . Thei s o ies begin in he 1970s and con inue o he p esen day. The ole o municipali ies in Finland has changed in many ways, bu he A. Ha e i e al. 121 main h ead o change is a shi om he “golden days” o municipali ies o he mo e chao ic s a e ha exis s o- day. The cons uc ion and de elopmen o he Finnish wel a e socie y was ollowed by he golden days o “ he ac i e 1980s”, a ime when municipali ies and local go e nmen enjoyed a ou able de elopmen and ac i e lo- cal poli ics; he e a when municipal manage s o he Baby Boom Gene a ion ook up hei i s leade ship e- sponsibili ies, pa ing he way o hei posi ions and laying he ounda ion o hei p o essional de elopmen as leade s. The a ou able a i udes owa ds de elopmen and a s eadily imp o ing economy enabled he municipal manage s o his pe iod o de elop hei ole in he desi ed di ec ion, o example in line wi h hei local eco- nomic de elopmen policy in e es s. Un o una ely, hese “golden days” ended ab up ly wi h he ecession o he 1990s. A ha ime he social ole o municipali ies became mo e p ominen , and ac i i ies became ocused on ensu ing he well-being o ci izens and suppo ing he weakened business sec o . Du ing he pe iod o g ow h ha ollowed he ecession, i was pa icula ly i al o shoulde esponsibili y and ensu e a o able condi ions o de elopmen . In he 2000s, he posi ion o municipali ies has become inc easingly challenging, e en chao ic, in many ways. The municipal CEOs iden i y ou impo an changes in hei go e nance ela ions. These a e summa ized in he ollowing na a i es: he na a i e on he dissolu ion o municipal bounda ies; he na a i e on he cooled ela ions be ween he S a e and municipali ies; he na a i e on municipal inhabi an s’ changing ole om pa i- cipa o y esiden s o exac ing cus ome s; and he na a i e on he agmen a ion o local poli ics. These ou na a i es desc ibe how complexi y is seen in he e e yday p ac ices o local go e nmen , how in- e ac ion needs inc ease, how he na u e o in e ac ion changes and how hese ac o s challenge local leade ship. The changes appea o be ai ly s aigh o wa d in he na a i es; in he pas hings we e one way and now hey a e ano he way. The changes a e no pinpoin ed o some speci ic momen s o connec ed o simple explana o y ac o s. 4.1. The Dissolu ion o Municipal Bounda ies Highligh s Ho izon al Go e nance Rela ions The dissolu ion o municipal bounda ies desc ibes he decline in he impo ance o adminis a i e (in e muni- cipal) and ins i u ional (public-p i a e- hi d sec o ) bounda ies. The ield in which local au ho i ies seek o ca y ou hei asks is escaled and emixed. The bounda ies be ween di e en ac o s a e dynamic and uns able. This change has shi ed he ocus om in e municipal ma e s owa ds municipali ies’ posi ion and in e ac ion in e- la ion o he su ounding socie y. “When I s a ed in Kei ele in 1980, i was mainly dealing wi h decision-making in he local council and municipal o ganiza ion. In a way, he ou e wo ld was somewhe e he e… Now, he municipali y is mo e like a kno in local ac o s’ ne wo k. Ea lie , i was mo e limi ed o he bounda ies o local go e nmen , and he se ices.” In e iew K C oss-bounda y ac i i ies a e seen as a g adual lea ning p ocess. I is a ques ion o inding and building a new kind o leade ship, and consolida ing app oaches and p ac ices o suppo his new leade ship. I is essen ial o build unde s anding be ween di e en ac o s, Ac i e, e ec i e coope a ion among ci il se an s and poli icians is necessa y; in addi ion, con on a ion and dis us be ween coope a ion pa ne s mus be educed. Acco dingly, he o ganiza ion o se ices be ween he public, p i a e and hi d sec o s equi es a ein o ced mu ual unde - s anding o he ope a ing logic and app oaches o di e en pa ies. F om he pe spec i e o leade ship, he dissolu ion o bounda ies means ha municipal CEOs need o di ec hei ene gy inc easingly o ho izon al go e nance ela ions. This change b ings a as inc ease in he need o in e ac ion be ween municipali ies, and wi h municipali ies, companies and he hi d sec o . The change a ec s municipal leade ship and, o example, i complica es he managemen o se ices. The implemen a ion o asks ha had p e iously been aken ca e o wi hin one’s own o ganiza ion now equi es much in e ac ion. The disso- lu ion o municipal bounda ies has na owed he space o leade ship. Some municipal CEO’s ac ions ha in he pas had been aken on he basis o au ho i y ha e shi ed o become leade ship h ough in luence. 4.2. Cooled Rela ions be ween he S a e and Municipali ies Diminish P edic abili y Rela ions be ween he S a e and municipali ies ha e cooled. In he 1980s municipali ies and he S a e s ill s ood on he same side. They wo ked oge he o c ea e wellbeing in di e en municipali ies h oughou he coun y despi e hei di e ing ope a ing logics. Rela ions be ween municipali ies and he S a e we e handled wi h ca e. A. Ha e i e al. 122 Municipal CEOs had hei own con ac pe sons in cen al go e nmen . Bo h pa ne s in es ed much ime and e o so ha hese ela ions would be con iden ial and du able. Pa icula ly du ing he pas decade his si ua ion appea s o ha e changed essen ially; bo h ins i u ional and pe sonal ela ions ha e cooled down. A he indi idual le el, hese ela ions appea mo e o mal and con ex ual han be o e. The long isi s o mu- nicipali ies made by cen al go e nmen o icials, las ing se e al days and including long dinne s and e enings in he sauna, a e his o y. So, oo, a e isi s o Helsinki, he capi al, by delega ions o municipal leade s. Pe sonal ela ions a e no longe app ecia ed, and he e is no ime o hem. Bo h sides a e also a aid ha en e aining and hospi ali y will be in e p e ed as co up ion o an a emp he eo . “As we no ed, we ha e common acquain ances and iends… I makes i easie , i kind o akes sho cu s. I you ha e been able o be in in o mal con ac . Fo example, i you go skiing o h ee days oge he , you ha e been oge he om e ening o nigh , o mo ning and o he nex day. Then you ha e no iced whe he o no you sha e some kind o common hough s wi h ha pe son.” In e iew B A he ins i u ional le el, he S a e is conside ed o ha e wi hd awn om coope a ion wi h ega d o he de- elopmen o wel a e and he local economy. None heless, when i comes o s ee ing he p oduc ion o se ices, he S a e is seen as eage o con ol municipali ies h ough e y de ailed egula ion. The S a e’s ac ions in he la es e o m p ocess a e seen as being so s aigh o wa d ha he e has been nei he ime no space o in e ac- ion be ween municipal CEOs, local poli icians and cen al adminis a ion. The e o m p ocess is expe ienced as he one-way implemen a ion o op-down plans, o e en as dic a ion. This change has a ec ed bo h he amoun and he na u e o in e ac ion. Municipal CEOs do no ha e he same us ul link wi h cen al go e nmen ac o s ha hey had be o e. Go e nmen o icials had p e iously been seen as ci il se an colleagues who we e s uggling wi h he same kinds o issues and challenges, bu on a di e en scale. Now i seems ha collegiali y has c umbled o some ex en , pa ly because o S a e-le el e o ms and changes and because o he change in he S a e’s poli ical s ee ing. Go e nmen o icials’ ole in he cen al go e nmen sys em has also changed and municipal CEOs canno be su e whe e o in whose hands he powe es s in di e en si ua ions. 4.3. Inhabi an s’ Changed Role Appea s Ambi alen Inhabi an s’ ole is seen as changing om pa icipa o y esiden s o exac ing cus ome s. They ha e adap ed a new ole as consume s and cus ome s o eady-made se ices. These “inhabi an s o new e a” c i ically judge municipal acili ies and se ices, a e mo e demanding and a e awa e o hei igh s. A highe le el o educa ion is one explana ion o hei imp o ed knowledge o hei igh s. Howe e , he le el o educa ion does no seem o enhance hei sense o esponsibili y wi h ega d o common issues. “The e a e lo s o lawye s and enginee s li ing he e. They know hei igh s e y well. And hey a e able o… They know how o ad oca e o hei igh s eally loudly. They know hei igh s, bu some imes… i is no clea whe he hey know wha hei esponsibili ies a e.” In e iew C Consume s a us and being in a cus ome ela ionship wi h he municipali y mean ha inhabi an s a e wi h- d awing om he common esponsibili y o he communi y’s wellbeing ha hey bo e ea lie . Local poli ics is no a ac i e as i used o be; he p o ision o se ices and aking ca e o he local communi y a e le o p o- essionals o p o essional poli icians o handle. The change in municipal inhabi an s’ ole impac s on he need o in e ac ion in municipal leade ship. An in- c easingly smalle sha e o in e ac ion akes place h ough he indi ec ep esen a ional sys em while a g ea e sha e akes place ou side i h ough, e.g. se ice o ganiza ions (cus ome -o ien ed app oaches), social mo e- men s (p o-mo emen s) and bo h adi ional and elec onic media. Elec onic media in pa icula call o new skills and new app oaches. Ea lie , and e en in he 1980s, he wo k was domina ed by agendas and in o ma ion was sha ed wi h he media and s akeholde s only a e decisions had been made. Today, publici y is an in eg al elemen o he en i e poli ico-adminis a i e p ocess. The media hus a ec s p epa a ion, decision-making and leade ship all he ime. The changing ole o municipal inhabi an s is conside ed o include con adic o y elemen s. On he one hand inhabi an s a e seen o ake less esponsibili y as esiden s while on he o he hand hey use mo e channels o in- luence o p esen hei demands. They also ac i ely app oach he municipali y conce ning hei special needs A. Ha e i e al. 123 and as a clien using se ices. This change can be seen as opening municipal poli ics. Inhabi an s a e in ouch wi h he municipali y mo e h ough se ices. They demand mo e and no longe accep se ices ha a e he ou - come o adminis a i e logics o poo quali y. 4.4. F agmen ed Local Poli ics Fades ou Powe Coali ions Local poli ics ha e become agmen ed. The in luence o poli ical eli es and egimes has dec eased and been e- placed by populis cul u e. Fea u es o his new cul u e include he ise o mo emen s ocused on a single cause, an emphasis on sho - e m goals, a weakened sense o esponsibili y, he dissolu ion o pa y poli ical ideologies, and inc eased media publici y. Populis cul u e s esses he p esen day and conc e e e en s a he expense o long- e m plans and in es men s, and hus hampe s building o he u u e. In mos municipali ies decision-making used o be based on ce ain p e ailing poli ical coali ions and he ac- i i ies o egimes. A ha ime, he municipal CEO had o nego ia e wi h only wo o h ee he mos in luen ial poli icians o each ag eemen on ma e s. These p e ailing g oups c ea ed a s able, long- e m and p edic able poli ical cul u e h ough hei ac ions. A he same ime, hey made he municipal CEO’s wo k simple because he CEOs knew who o app oach in o de o decide hings and wha so o in luence was needed. When local powe coali ions s a ed o b eak down, he space o leade ship dec eased. Decisions and nego- ia ing coali ions we e di ec ed by si ua ional aspec s, i nego ia ions we e possible a all be o e decision-making i sel . The impo ance o in luence became highligh ed because he nego ia ion pa ne s we e no longe p ede- e mined acco ding o he adi ional powe coali ions o local eli es; ins ead, hey became mo e si ua ional. “E en he poli ical pa ies a e in e nally agmen ed. The logic is no sha ed, and i is di icul o know wha is he ideology ha people ely on… i hey ely on any. I seems o be qui e sho -sigh ed, and some- imes I eel ha he local poli icians a e also somehow, how I should pu i , somehow ‘los ’.” In e iew C In addi ion o many o he p oblems, he je kiness o he new poli ical cul u e hampe s he CEO’s abili y o ac a he o he impo an in e aces o local go e nance ela ions, especially in coope a ion wi h o he municipali- ies and en e p ises. I is di icul o nego ia e and c ea e us ing ex e nal ela ionships i in e nal poli ics p o- duces su p ises e e y day. Howe e , he ans o ma ion o municipal poli ics is no seen as o ally des uc i e. The no el se -up has gi - en oom o a new kind o coope a ion and inno a ion, making i possible o sol e local issues h ough new, eme gen and some imes wide o ums and pla o ms. 4.5. Leade ship as In e ac ion in Go e nance Rela ions In ou s udy he municipal chie execu i e o ice s ega d local leade ship as in e ac ion ha akes place in go- e nance ela ions. This in e ac ion is la gely a se o balancing ac s. Balancing is needed be ween in e nal and ex e nal go e nance ela ions o among di e en in e es g oups, wi h local esiden s, cen al go e nmen , he media and poli ics. In e ac i e leade ship u ilizes di e en opinions and iews, and is adap i e in he sense ha pa icipa ing ac o s o en ha e o econcile hei goals and isions. The u u e does no appea simila o e e y- one, and in e ac ion makes i possible o c ea e in e p e a ions o di e en op ions and new pa hs. I does no p e en con lic s, bu a he uses hem as a esou ce o c i ical openings and e o m ideas. In e ac ion is also conside ed one o he mos impo an ools o expanding he scope wi hin which municipal manage s ope a e. Res ic ing ac o s, such as cen al go e nmen con ol o he municipali y’s pa icula eco- nomic s a us, can be coun e balanced h ough a ious modes o ope a ion and leade ship quali ies, he eby enabling municipal leade s o c ea e a b oade scope o ope a ion. Leade ship is no only dealing wi h he o ganiza ion, no is i me ely aking ca e o ou e ela ions o exe ing in luence wi hin ne wo ks. Leade ship in he con ex o local au ho i y means ac ions occu ing in balance be- ween as in e nal and ex e nal go e nance ela ions. An example o a balancing ac is a si ua ion whe e he CEO builds ne wo ks o s eng hening local economic de elopmen in a way ha calls om majo in es men s om he municipali y. While wo king closely wi h ex- e nal go e nance ela ions, he CEO has o con i m suppo o he in es men s om his own s a and om poli icians as well as also ensu ing accep ance by local ci izens and he media. Main aining balance equi es in- e ac ion be ween poli ics and adminis a ion, be ween he municipali y’s inances and needs, and be ween so- cie al change and he ole o local go e nmen . The spaces o leade ship a e de e mined on hese su aces ia A. Ha e i e al. 124 in e ac ion, and leade ship posi ions a e p oduced h ough in e ac ion in go e nance ela ions. The e a e many in e ac ion planes, some o which in ol e mo e ension han o he s. Bu wha makes he si u- a ion wicked is he no ion ha he scale and scope o in e ac ion equi ed is “ge ing ou o hand” and he na u e o in e ac ion i sel is ans o ming apidly. Acco ding o a common h ead in he ou na a i es, bo h he quan- i y and quali y o in e ac ion ha e changed so ha he e a e mo e and mo e planes a which in e ac ion is needed, bu a he same ime he quali y o in e ac ion is al e ing. The quan i a i e inc ease o in e ac ion is one o he di ec consequences o he inc eased numbe and com- plexi y o go e nance ela ions, which s em om he ou changes desc ibed abo e. New in e aces ha e a isen be ween municipali ies, en e p ises and he hi d sec o and wi hin municipal key ac o s, he media and munici- pal inhabi an s. The wo k o public leade s, pa icula ly ha o municipal manage s and ci y mayo s, has always equi ed much in e ac ion because o he wide scope o asks and he many s akeholde g oups associa ed wi h hem. Lo- cal poli ical g oups, esiden s, local en ep eneu s and businesses, and cen al adminis a ion ha e adi ionally been impo an s akeholde s o municipal leade s. E e y one o hese g oups includes ens and e en hund eds o di e en in e ac ion in e aces. Bu he na a i es o he Baby Boom Gene a ion leade s desc ibe a phenomenon ha could be de ined as an explosion o in e ac ion needs. Ea lie , a leade aced a hec ic a mosphe e momen a ily, o example in ac ions ela ed o local economic de- elopmen . E en du ing hec ic momen s, hings we e mo e s aigh o wa d and easie o go e n. Now, he agmen a ion o local poli ics has o ced local leade s o in e ac in new and uns able coali ions and o seek suppo in a decision-speci ic way in o de o pa e he way o decisions. The inc ease o in e ac ion in go e - nance ela ions is di icul o desc ibe ma hema ically wi h p ecision—no would his make sense, because he si ua ion a ies in each municipali y and in ime—bu acco ding o he na a i es, he amoun has g own signi - ican ly, e en exploded. Many na a i es link he changes in in e ac ion no only o go e nance ela ions bu also o he de elopmen o communica ion echnology, he al e ed ole o inhabi an s, and communica ion cul u e. In his new commu- nica ion cul u e, ace o ace mee ings a e no as popula as be o e. Technological de elopmen has made i eas- ie o communica e independen ly o ime and space. People communica e 24/7 because hey conside i possible and because hey ca y hei communica ion de ices wi h hem, e en in he e enings and du ing weekends. Ci izens now ha e a lowe h eshold o sending email o ex messages o o calling. They communica e when hey ace a si ua ion ha in hei iew equi es a leade ’s a en ion. Some inhabi an s also expec an ins an eply. In his kind o si ua ion, i is no easy o a leade o s ep aside om he in o ma ion low and make a dis- inc ion be ween wo k and leisu e. The inc eased quan i y o in e ac ion and mo e nume ous possibili ies enabled by new echnology s ill ha en’ led o quali a i e imp o emen s in in e ac ion. Municipal CEOs in e p e he si ua ion o be he opposi e. In e - ac i e ela ions a e no necessa ily buil wi h any long- e m in en bu occasionally, eadily and si ua ionally. To an inc easing ex en , in e ac ion is “ins an in e ac ion” ha b ings people oge he o sol e a ce ain p oblem, o some ex e nal challenge pushes people o hold a couple o quick mee ings in o de o each an ins an solu ion. I is no e en necessa y o mee ace o ace; he mee ings can ake place ia ideocon e ence, e-mail o elephone. Communica ion is di e en han be o e, when i was based on pe sonal, o en long- e m, mee ings. Coali ions change apidly and he e is oo li le ime o ge o know each o he pe sonally, o people don’ wan o do so. The mos impo an cha ac e is ics seem o be speed and sho - ime e ec i eness. The change becomes isible when he p esen is compa ed o he “golden days” o 1980s, e e ed o abo e. Acco ding o he municipal CEOs, a ha ime hei in e ac ion skills and coope a i e knowledge suppo ed success in hei wo k as a leade . Thei na a i es indica e ha he e was enough ime o ake ca e o asks and ela ions. Municipal CEOs, public se an s and poli icians we e no o ced o do e e y hing as quickly as possi- ble; he e was ime o si down, p epa e and ha e a p ope discussion in di e en g oups wi h a iew o imp o - ing pa icipa ion. “Pe sonal good ela ions we e buil h ough longe isi s (wi h nego ia ions in saunas, e c.). People be- came iends. And isi s we e made on bo h sides. One didn’ ha e o wo k ha d o a ac isi o s, when you jus called and said: ‘Would you like o come, I will o ganize a nice…’ ‘Yes de ini ely’ ‘How abou ishing?’ Some liked ishing, o he s wan ed o hun .” In e iew K. The leade s say i is impo an o pay a en ion o su i al skills, which a e needed o cope wi h he in o ma- A. Ha e i e al. 125 ion lood. Owing o he as scope o in e ac ion, i is necessa y o p io i ize ime managemen and o de ine he su aces which a e necessa y o handling he undamen al asks. I is no possible o ac wi h same in ensi y a e e y in e ac ion in e ace. Ins an in e ac ion en ails mo e si ua ional awa eness, social skills and quicke esponse. Sel -knowledge and so- cial capi al can also help o expand he scope in which expe ienced municipal manage s ope a e. O he use ul com- pe ences a e he abili y o p io i ize and ime managemen , he abili y o iden i y wha is necessa y, a apid abso p- ion capaci y, abili y o p ocess in o ma ion, good a gumen a ion, social compe ence and in e pe sonal skills. The new ways o in e ac ion mean ha knowledge and di e en , compe ing iews a e a ailable in a way comple ely di e en o ha in he ea ly days o he leade s’ ca ee . Fo a leade , i is inc easingly impo an o be able o p ocess and comp ess in o ma ion. Poli icians, o example, wai o clea and some imes seamlessly jus- i ied mo ions in o de o make decisions. Leade ship is—e en mo e han be o e—de ined by he abili y o make choices and o ex ac he mos ele an issues o u he p ocessing. “In municipal leade ship one has o be able o comp ess hings o a ce ain ou look. I needs a lo o skill. I is no easy when so much in o ma ion and so many compe ing iews a e a ailable. And hen hese in e - pe sonal skills, hey a e impo an . Li e is mo e open and in e ac i e han be o e. Ge ing along wi h people is impo an .” In e iew K In he leade ship na a i es, in e ac ion abili y is no abou managemen echniques o know-how gained om managemen ex books; i is a mix o expe ience and knowledge, “a si ua ional awa eness and sense o hy hm” ha has been achie ed o e he cou se o ime. Acco ding o one CEO, i is like a long ma iage: “you know om you spouse’s ace whe he she is in a good o bad mood”. In leade ship, expe ience and sel -con idence, us in one’s own compe encies, su ace as an essen ial esou ce. Ve y o en he na a i es end up in e lec ion on how he leade sees people. In mos o he s o ies, he mu- nicipal leade s expe ience wo king wi h people in a posi i e way. In ac , he mos posi i e expe iences o mu- nicipal leade ship a e associa ed wi h in e ac ion. The o e all posi i e sen imen leads o he conclusion ha in- e ac ion is no seen as a bu den, bu ha leade s also ge a lo ou o hei in e ac ions; in e ac ion gi es mo i a- ion, eedback and a sense o meaning. Leade s don’ lis en o people o discuss issues wi h people because managemen ex books ins uc hem o do so, making in e ac ion wi h people a lea ned managemen echnology; leade s in e ac wi h people because hey like o do so. “A municipal leade has o like people, o be in e es ed in hem. You ge some hing, always, when you deal wi h people. I expe ience i no as a bu den bu as en iching.” In e iew N In e ac i e leade ship is pa ly a ques ion o skills and knowledge, bu i is equally as much abou pe sonali y. In he leade ship na a i es one can see he “ideal leade ” who is pa ien and who has he abili y and desi e o in e ac . The na a i es include desc ip ions whe e leade s ac i ely y o make hemsel es easily app oachable and humane, o a oid he p oblems caused by hie a chies and dis ance o powe . In e ac ion is conside ed o be he mos aluable ool when one aims a widening he spaces o leade ship. In e ac ion is so aluable ha he leade s ha e in es ed ime in i . None o he leade s conside hemsel es in e ac ion p o essionals in he ea ly s ages o hei ca ee , bu all o hem desc ibe an inc ease in in e ac ion abili ies du ing hei ca ee s. “I s a ed building he… I didn’ wan o be dis an , bu laid back and wi h a sense o humo . I’m no a big comedian du ing co ee b eaks, bu make un o mysel and my mis akes. ‘I did i again, blew he whole hing!’ I y o be a no mal pe son. I eel ha i is app ecia ed.” In e iew A 5. Explosion o In e ac ion Needs and Eme gence o Ins an In e ac ion— Implica ions o Local Leade ship and Go e nance Theo y A s a ing poin o his s udy was he idea ha s udying local leade s’ na a i es on hei in e ac ion in e aces, and he changes ha occu he e, would con ibu e o he knowledge on changes in leade ship and would gene - a e a en a i e heo y on in e ac i e local leade ship wi hin go e nance amewo k. The na a i es o local leade s pain a pic u e o local leade ship as in e ac ion in go e nance ela ions. Local leade ship di e s om leade ship in many o he compa able o ganiza ions, e en public ones. Local leade ship is less abou o mal powe bu mo e abou in luence. In luence and in e ac ion a e shown o be he e y co e ele- men s o local leade ship. The leade ship is mos ly cons uc ed in ela ion o s akeholde s and people o e whom