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.
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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.
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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.
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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