The Road to the New General Director a Post-Merger Analysis of the Appointment of Top Civil Servants at the Local Level in Flanders

FACULTY OF SOCIAL SCIENCES

The road to the new general director A post-merger analysis of the appointment of top civil servants at the local level in Flanders

Ward Van Houdt R0579794

Masters’ thesis submitted to obtain the degree of

MASTER OF EUROPEAN POLITICS AND POLICIES Supervisor: Prof. Dr. Steven Van de Walle Assesor: Prof. Dr. Geert Bouckaert

Academic year 2018-2019

Word count: 16366

The road to the new general director

A post-merger analysis of the appointment of top civil servants at the local level in Flanders

Ward Van Houdt R0579794

Masters’ thesis submitted to obtain the degree of

MASTER OF EUROPEAN POLITICS AND POLICIES

Supervisor: Prof. Dr. Steven Van de Walle Second reader: Prof. Dr. Geert Bouckaert

3 Academic year 2018-2019 ABSTRACT

English:

This master thesis aims at providing new insights in selection procedures of top civil servants by offering novel evidence on how specific legal, political and historical factors within local governments in Flanders affect the different strategies, motives and trends underlying the selection process. Consistent evidence within scholarly approaches to succession events and processes are fragmented at best, especially so in the public sector (administrative succession). Literature and data are both scarce and contradictory. This paper studies a select number of cases of comparable local governments. The new decree on local governance entails a re-organisation of local governments and a merger operation. Consequently, all local governments in Flanders faced the same challenge; to appoint a new general director for the merged organisation. This thesis studied the different possible scenarios of the selection of the new general director using a qualitative research methodology of semi- structured depth interviews with key actors in the selection process. This thesis finds the internal selection scenario’s (3 & 4) to stand out as the most commonly chosen method. Internal financial and organisational elements played a major role in the appointment decisions of the cases studied.

Dutch:

Deze masterproef beoogt nieuwe inzichten te bieden in selectieprocedures van topambtenaren door nieuw bewijs aan te dragen over de manier waarop specifieke juridische, politieke en historische factoren binnen lokale overheden in Vlaanderen invloed hebben op de verschillende strategieën, motieven en trends die ten grondslag liggen aan het selectieproces. Consistent bewijs in de literatuur van gebeurtenissen en processen betreffende opvolging is gefragmenteerd, vooral in de publieke sector (administratieve opvolging). Literatuur en gegevens zijn zowel schaars als tegenstrijdig. Deze paper bestudeert een select aantal gevallen van vergelijkbare lokale overheden. Het nieuwe decreet inzake lokaal bestuur impliceert een reorganisatie van lokale overheden en een fusieoperatie, en bijgevolg hadden alle lokale overheden in Vlaanderen dezelfde uitdaging; om een nieuwe algemeen directeur voor de gefuseerde (geïntegreerde) organisatie aan te stellen. Deze meesterproef bestudeerde de verschillende mogelijke scenario’s van de selectie van de nieuwe algemeen directeur met behulp van een kwalitatieve onderzoeksmethodologie van semigestructureerde diepte- interviews met belangrijke actoren in het selectieproces. Deze meesterproef stelt dat de interne selectiescenario's (3 & 4) opvallen als de meest gekozen methode. Interne financiële en organisatorische elementen speelden een belangrijke rol bij de benoemingsbeslissingen van de bestudeerde cases.

Keywords: New Decree on local governance, local governance, organisational mergers, leadership succession, selection of top civil servants, MSSD, comparative case studies, qualitative methodology.

Preface This master's thesis constitutes the final piece of my advanced master's degree in European Politics & Policies (MEPP) at the KU Leuven. This dissertation is a symbol for me of the end of the academic and personal education which I have completed during the last five years. Therefore, I would like to thank everyone who helped me to write this master's thesis. Firstly, I would like to thank my supervisor Prof. Steven Van de Walle for his good advice, critical remarks and insights. In addition, I would like to express my gratitude to the employees of the municipalities and OCMWs of Bierbeek, Begijnendijk, Holsbeek, Geetbets, Lubbeek, Tielt- Winge, Scherpenheuvel-Zichem and Tienen. Thank you for your time, constructive cooperation and the answers during the interviews. Finally, I would like to thank my proof-readers for reading my dissertation and providing constructive feedback. I would also like to thank Kevin Hens for creating the graphic maps. To my other colleagues at the MEPP program, I would like to thank you for your wonderful cooperation as well. It was always helpful to discuss ideas around with you. I also benefitted from debating issues with my friends and family. If I ever lost interest, you kept me motivated. My parents also deserve a special word of thanks, without their support and help I could never have completed this master's thesis and by extension this degree.

I hope you enjoy your reading, Ward Van Houdt

Leuven, June 8, 2019

List of abbreviations OCMW: Openbaar Centrum voor Maatschappelijk Welzijn/ Public Centre Social Welfare (local social agency in Flanders) CEO: Chief Economic Operations DLB: Decreet lokaal bestuur/ decree on local governance GD: General Director MSSM: Most similar system design MDSD: Most different system design

List of figures Figure 1: Svara’s politico-administrative spheres ...... 22 Figure 2: The scenarios of selection and appointment ...... 27 Figure 3: map of the selected cases...... 32 Figure 4: research design ...... 36 Figure 5: research design model ...... 37

List of tables Table 1: Elements of succession in the literature ...... 17 Table 2: Successor typology by Friedman & Olk ...... 19 Table 3: Codes of the selected respondents ...... 34 Table 4: Core indicators on the cases ...... 38 Table 5: Cases and Respondents ...... 40 Table 6: Respondents background and previous occupation ...... 41 Table 7: Observed scenarios ...... 45 Table 8: The ideal scenario according to the respondents ...... 53

Content ABSTRACT ...... 4 Preface...... 6 List of abbreviations ...... 7 List of figures ...... 8 List of tables ...... 9 1. Introduction ...... 12 2. Literature study ...... 15 2.1 Leadership succession ...... 15 2.2 Types of leadership succession ...... 18 2.3 Explaining the succession decision ...... 20 3. Leadership succession after organisational mergers the case of Flemish municipalities ...... 23 3.1 The context of the case ...... 23 3.2 Legal framework ...... 24 3.2.1 Scenarios ...... 25 3.2.2 Selection procedures ...... 28 4. Methodological framework ...... 30 3.1 Pilot study ...... 30 3.2 Case study ...... 30 3.3 data collection methods ...... 33 3.3.1 Document analysis ...... 33 3.4 Data analysis methods ...... 35 5. Analysis...... 38 5.1 Case descriptions ...... 38 5.2 data analysis ...... 40

5.2.1 On the motivation of the selection ...... 40 5.2.2 On trends in the selection ...... 44 5.2.3 On the strategies of the selection ...... 51 6. Conclusions ...... 54 7. Discussion ...... 57 REFERENCES ...... 59 Annexes...... 67

1. Introduction

“Find the right people, not the best people.” This quote of Chinese businessman Jack Ma points to the central question about leadership succession. How should an organization ensure that the right people are selected for managerial positions? It is not an easy task for an organization to determine who is the “right” candidate for the job. In fact, one of the most far-reaching events in the lifespan of an organisation is a change in its leadership. In the leadership literature, this topic of succession has not been studied this much in comparison with other aspects of leadership, this is especially true for a public sector context. This is quite odd because scholars from different disciplines such as organizational sociology, political science or economics discuss about the impact a leader can have in an organization. Indeed, as Hollenbeck points out, there is plenty of room for contributions in the field of succession and selection (Hollenbeck, 1994). The succession process remains a largely unexamined area. There is however a general consensus in the literature that it is a field worth studying (Hollenbeck, 1994). A specifically interesting research topic is succession after organisational changes such as a merger operation. Not only is our knowledge of succession under this specific condition rather limited, it also provides an additional layer of complexity (Jemison and Sitkin, 1986). Existing literature focusses mostly on financial and economic implications of a merger operation (Halpern, 1983; Jensen and Ruback, 1983). Other authors focus more on the fate of CEO’s whose firms are acquired (Hartzell, Ofek and Yermack, 2004) or who retire (Sonnenfeld, 1991). Thus, academic understanding about the selection of new management staff, after merger operations is lacking; especially in the public sector. The purpose of this thesis is to contribute to this specific lacuna; the process of leadership succession after a situation of an organizational merger. This thesis would like to contribute to the leadership succession literature by focussing on the pre-arrival factors of

12 the succession process in the specific case of merged organisations in the public sector. A recent organisational merger operation at the local level in Flanders presents us with a unique case. Local municipalities merged with the local Public Centres for Social Welfare (OCMW’s). This operation implies a merger of the former separate administrations of these organisations, as well as a merger of the senior management functions; the secretaries. All Flemish municipalities had to comply with these new rules, this implies a population of 300 municipalities. In the Flemish coalition agreement (Coalition Agreement Flemish Government, 2014), the Flemish Government has announced that it wants to integrate the organisations of the OCMWs and the municipalities in Flanders by 1 January 2019 (Flemish Government Governing Agreement, 2014). The OCMW organisations and the municipalities’ administrations both had their own secretaries and general managers. This means choices had to be made. This thesis will analyse the different types of scenarios which might arise from the new local government decree. This paper will analyse the process of the selection. How the new candidate was chosen, which factors play a role, and why? It will be relevant to compare different cases in this perspective. The new decree gives local councils a significant degree of autonomy concerning the selection methods and criteria. This has an impact on the organisational traditions and choices. This paper is a comparative case study, dealing with eight local government-cases and answers the research question: “How did municipalities appoint a new general manager, and on what basis did they make their selection?” The sub-questions will focus on the trends, strategies and motivations behind the process of the appointment. This thesis seeks to study as many underlying motivations as possible, hence eight cases in the same area are chosen (Hageland), in the eastern part of the province of Flemish Brabant. These cases experienced different approaches and paths to the new general director and offer a diverse selection of cases with different characteristics. The methodology of this paper was developed after a brief pilot study of eight cases in a different

13 area (Noorderkempen). This paper tries to provide new empirical material on succession by means of qualitative semi-structured interviews in order to supplement the existing body of scholarly literature with additional empirical evidence. This study relies mostly on primary sources. As Hollenbeck argued: “CEO selection processes will never be an experimental science.” (Hollenbeck, 1994, pp. 18.). Hence, it is necessary to study the selected cases in their natural environment. Additionally, because of the recent nature of the mergers, empirical data does not yet exist. The aim of this paper is thus not to study the effects of leadership succession, it focusses specifically on the appointment processes. The structure of the paper is presented as follows. The second part of the paper gives an overview of the theoretical framework composed of a review of the relevant contributions to the body of scholarly literature, the chapter on the cases selection will provide the reader with context on the legislative framework of the case: the new decree on local governance. As well as the different scenario’s which can be deducted from this new decree. The fourth chapter entails the methodological framework of this paper. The fifth chapter focusses on the empirical analysis. The cases and the concepts are analysed and described. In the concluding chapter, the research questions will be answered, and general trends and findings will be discussed here. Finally, the paper also presents the critical discussion of the findings in relation with the status quo of the literature, the paper formulates policy recommendations aimed at improving succession processes as well as the implementation of decrees on local governance in Flanders. Research question: How did municipalities appoint a new general manager, and on what basis did they make their selection? ❖ What are the main trends in the selection procedures? (Trends) ❖ What are the most common arguments or reasons for the decision made? (Motives) ❖ What are the strategies, used by the municipalities in the appointment? (Strategies)

2. Literature study This chapter introduces the theoretical foundations and concepts of the paper. As emphasised in the literature study below, succession choices may be explained through various factors studied in previous contributions, which however fall short of delivering a clear-cut academic picture. New empirical evidence might enable to resolve some of these discrepancies. This literature study consists of three parts. A first part delves into the existing (business-economic) literature on leadership succession, relevant to the research questions. Second, a typology of successor candidates will be further explored. Third, different arguments which can explain the succession decision will provide more insights in the motives, trends and strategies of the succession which we will observe in the cases. 2.1 Leadership succession CEO succession is a universal organizational process. Every type of organization is confronted at some time with the question of leadership succession. It is an intense and challenging event for any organization. Leadership succession is defined as “The planned or unplanned change of the formal leader of a group or organization.” (Gordon & Rosen, 1981, 227). The consequences of leadership succession can be quite significant for the organisation. Succession might influence changes in organizational performance (e.g., Denis & Denis, 1995) and cause strong emotional reactions from its employees (e.g., Friedman & Saul, 1991). Many scholars consider leadership succession to be a relevant object of study. Indeed, succession is studied from different disciplines and angles. This field of research started to gain attention with the classic studies of Grusky (Grusky, 1960). The literature on leadership succession varies in the focus placed in the process of succession. Some contributions focus on the typology (1) of candidates and successions, the causes of the succession (2), the succession event itself (3), the environmental factors (4) and the consequences of the succession process (5) (post succession performance). Works in the literature often overlap 15 in these different aspects of succession. (Berns & Klarner, 2017; Giambatista, Rowe, & Riaz, 2005; Kesner & Sebora, 1994; Hollenbeck, 1994; Pratelli, 2019; Fitzesimmons & Callan, 2016). Leadership succession is one of the ways in which organizational change takes place. In the literature, the replacement of key officials is also referred to as “administrative succession”. According to Grusky, the study of administrative succession is relevant because of two reasons: (1) administrative succession always leads to instability and (2) it is a phenomenon which all organisations, no matter the size, will have to deal with. This article is quite old, however the challenges it indicates remain relevant today (Grusky, 1960). Gouldner also holds a pessimistic view of the impact of administrative succession. In his classic study of a leadership succession in a Gypsum plant, he found that the succession caused staff conflict, unrest and a lowered morale among the employees (Gouldner, 1955). Friedman and Singh studied CEO succession as an event of organizational change. The economic literature about leadership succession has not achieved a consensus about the exact importance of a succession. Most scholars rather focus on specifying the conditions under which impact the possibility of individuals placed in the seat of legitimate authority to influence important organizational outcomes (Friedman & Singh, 2018). Helmich and Brown concluded that inside succession, shows less organizational change than organizations which experience outside succession (Helmich & Brown, 1972). Gouldner had a similar conclusion, when he stated that an outside successor is more likely to change subordinates in his working group. This shows the relevance of the question who succeeds in the position which is to be replaced. (Gordon & Rosen, 1981). The context in which a succession takes places is crucial to understand the process. One important contextual element in the case which this thesis will study, is an organization merger. This merger was mandatory (see chapter 3). The literature defines organisational mergers are “the combining of different organisations with the goal of achieving efficiency, savings and the pooling of resources and knowledge” (Basu, 16

2006; Dooley & Zimmerman, 2003, Manzini & Gridley, 1986). Thus, the merger of OMCW and municipality adds another layer of complexity to this case. Some authors explain succession as one of the rare organisational moments in which a strategic shift is possible. Pfeffer considers succession as a ‘window of opportunity’ for organizational strategy change (Pfeffer, 1981). There are numerous studies to be found in the literature which study the effect of managerial replacement or succession events. The effect of the succession, however, is beyond the scope of the study. As mentioned earlier, this study will merely focus on the reasons for the choices made in the succession event.

Table 1: Elements of succession in the literature

Element of Example Author(s) succession Succession process Legal framework of (Berns & Klarner, 2017; succession process, Datta and Guthrie, formalities 1994; Cristina P. 2019) Successor type Insider candidate vs (Berns & Klarner, 2017; outsider candidate Datta and Guthrie, 1994) Individual reasons Retirement of CEO (Berns & Klarner, 2017; Kesner & Sebora, 1994) Organisational Industry or sector- Cristina P. (2019; Berns reasons specific reasons & Klarner, 2017; Kesner & Sebora, 1994). Environmental Financial, cultural or Shen and Cannella reasons technological (2003; Cristina P. 2019) environment Characteristics Character, skills or (Kesner & Sebora, candidates experience 1994; Shen and Cannella 2003)

The table above summarizes the most frequently discussed elements in the succession literature on succession events. Different scholars discussed succession in terms of the criteria used to compare candidates and select a new CEO. Some papers discuss the “successor type” and distinguish between external or internal ‘insider’ candidates (Berns & Klarner, 2017; Datta and Guthrie, 1994). Another topic frequently discussed in the succession literature are individual, organisational and environment-related issues. Individual issues involve personal career events or choices such as retirement, sickness or promotion opportunities (Berns & Klarner, 2017; Datta and Guthrie, 1994; Cristina, 2019). Organisational elements might include the organisational strategy, mission and vision which can influence the choices made in succession events. Environmental issues are external factors which can play a role in the succession events. These can range from the financial situation of the organisation to specific rules or customs. These contingencies might also include the sector-specific situation. A different angle of the succession process is the characteristics of the candidates themselves such as character, skills or experience (Kesner & Sebora, 1994; Shen and Cannella 2003). One can also look at the succession process itself, the legal framework and the different steps of the process. 2.2 Types of leadership succession Shen & Canella argue the succession context is what determines post succession organisational performance. A key contextual factor which might influence motives, trends and strategies concerning the succession is the “successor type”. In the literature sometimes also referred to as “successor origin”. The succession literature observes three types of successor: the follower succession, the contender succession and the outsider succession (Shen and Cannella, 2003). Follower and contender succession are both insider successions. In the case of follower succession (1), a successor is appointed following the predecessor’s normal retirement process. It is not a case of dismissal the follower is often chosen to maintain continuity in the mandate. The literature also discusses contender succession (2); in contrast, this type 18 of succession is characterised by a contender who will try to change the strategic direction of the organization, and thus change the policies or traditions set up by the predecessor (Shen and Cannella, 2003). A third type of succession found in the literature is the outsider succession (3). Outsider successors are most often selected in periods of poor organisational performance and inside successors cannot be found (Finkelstein & Hambrick, 1996: 182-183). Helmich, Brown et al. argue that the introduction of “a fresh perspective” and the ability to initiate and bring strategic changes are commonly made arguments for outsider succession (Helmich & Brown, 1972; Kesner & Dalton, 1994; Wiersema, 1995).

Table 2: Successor typology by Friedman & Olk

(Friedman & Olk, 1995, pp. 149.)

An especially interesting typology on successors can be found in the work of Friedman and Olk (Friedman & Olk, 1995). The table above illustrates the distinction these authors make in successor types. They identify the following types of succession: ‘crown heir’, ‘horse race’, ‘coup d’Etat’ and ‘Comprehensive search’. In their framework, they observe different characteristics. A first element is the control of the process itself (who rules). The power relationships and the political structure of the organisation can play an important role in the selection process. CEO contests can become conflicts among clusters of stakeholders for ‘organisational control’. These competing coalitions are more or less close to the style and legacy of the predecessor. Tied to this concept is whether the preferences for a candidate are known in advance by decision makers or not. Information can be distributed symmetrically or asymmetrically (where some elements are hidden in secrecy). Finally, the number of candidates and the length of the process in time play a major role as well (Friedman & Olk, 1995). 2.3 Explaining the succession decision It is important to not only focus on the legal and technical aspects of leadership succession, but also to take into account political aspects of succession. As Zald has described, succession is too important as a social process to only study technical elements such as length of tenure, effectiveness and qualities. Zald argues that succession should also be studied as a political process, where components of power play a large role. Succession is rarely only about competences (Zald, 1965). In administrative successions in a public sector context, this might be a big factor. In addition, a big factor why successors are chosen would be the context. Organizations which are facing problems and a changing environment would be more likely to use succession to shift the organization direction. The likelihood of so called ‘innovator’ candidates succeeding is low, because organizations often strive towards maintaining the status quo. Outsider candidates with an agenda of change would be chosen only when the organizations face serious environmental threads. Organizations thus would be inclined to choose internal candidates who 20 know the organization well, and who can be considered to be ‘incrementalist’ or traditional candidates. Candidates who guarantee organisational continuity and stability. Each candidate often has their own supporters inside and/ or outside of the organization. Political coalitions might form over the selection process which might influence the outcome of the succession (Pfeffer & Salancik, 1977, 1978). Ocasio and Kim have developed a theory of “power circulation of control” on basis of CEO selection in large US manufacturing firms between 1981 and 1992. Key in this theory is the institutionalisation of power; which refers to the ability of influential individuals to “entrench” themselves in the organisation. And increase their power and influence over time. Ocasio and Kim argue that this entrenchment is accompanied by the formation of “coalitions” or rivalling groups who compete for influence and power in the organization. This is often hidden behind an administrative façade but can come to the foreground with succession events. The coalitions try to get their preferred candidates on the vacant posts. The conclusion of Ocasio and Kim is thus, that successions are influenced by “political” struggles in the organisations itself. These power contests might by initiated by senior executives in the organisations as well as by outside directors. The implicit mandate of an insider candidate (see above) might thus be focussed on strategic change, if it is the result of such a struggle, while it could also be a mandate of continuity if it is the result of ordinary retirement. (Ocasio, 1994; Ocasio & Kim, 1999; Shen & Cannella, 2002; Friedman & Olk, 1995)

The potential political nature of a succession process can have further implications. Traditionally the relations between civil servants and politicians has had a long tradition of practices and (ideological) ideas and traditions. Civil servants were expected to operate in a bureaucratic sphere, fully separate from the political sphere. Indeed, the classical Weberian bureaucratic dichotomy is characterised by a strict division of tasks without overlapping functions. The politicians have a strategic role, making decisions, and the civil servants have to implement their policies. The Weberian dichotomy has evolved over the years taking more hybrid forms of politico-administrative functions. Indeed, the roles over civil servant and politicians have become more interlinked (De Graaf, 2010; Lee & Raadschelders, 2008, Aberbach & Rockman, 2019 and Wille, 2002). Figure: (Svara, 1985, ppt 228).

Figure 1: Svara’s politico-administrative spheres

Svara created a dichotomy-duality model distinguishing between four different spheres (tasks) in the policy cycle; mission, policy, administration and management. This model was bases on research on council-manager relationships in American local governments (Svara, 1985). Mission and policy are linked with agenda setting and policy preparation while administration and management can be linked with implementing the policies. The Weberian dichotomy is still partially accurate according to the model of Svara, for the first spheres (mission and Policy) which are dominated by the political sphere, while the last spheres (administration & management) are rather the responsibility of civil servants/ managers. As the model illustrates, this can be seen most clearly in respectively the mission and management tasks, which are quite dichotomized, although not fully so. In addition, the policy and administration spheres show shared responsibilities to a larger extent. Here politicians and civil servants carry out tasks which would be of a more interlinked nature (Svara, 1985). The relationship between the political actors at the local level and the senior civil servants might be an important determinant to explain the choice made in the selection or appointment procedure (Svara, 1985). 3. Leadership succession after organisational mergers the case of Flemish municipalities The previous chapter focussed on the theories found in the literature which are relevant for the research questions addressed in this thesis, as well as the implications of those theoretical findings for the cases studied in this thesis paper. The second chapter discusses the context of the reform of the case itself. Relevant here are the decree on local governance and the political and legal context of this new reform. 3.1 The context of the case Historically, organisation and identity of a public centre for social welfare has already undergone a thorough evolution. These social organizations have always enjoyed a high degree of autonomy in carrying out their care duties and implementing social policy. The notion of the social contract can always be found, the concept that the right to

23 integration in society is linked to certain duties, for example to actively contribute to society. Luc Notredame notes that in the concept of social assistance has changed over the years from “a favour” into “a right” (Notredame, 1997). An important milestone in OMCW history is 1993, when the right to a decent existence was registered in the Belgian constitution. This is not a mere detail, but a change in the nature of the tasks of an OCMW. After all, the OCMWs were given a much broader task. Assistance was only one instrument, to be able to realize the aim of a decent existence for all citizens (Vranken et al., 1998). Some elements characterise the role of the OCMWs and can be observed consistently in their history. There has always been an administrative bond with the local authorities, often cemented by financing (1). There is a certain degree of political control and oversight by local politicians (2). There has always been a high degree of autonomy in the operations of the tasks of the OCMWs, these tasks increased both in size and scope (3). Originally the tasks of the OCMWs where focussed on material needs, and later increased. The OCMWs focused more on guiding the citizen (Vranken et al., 1998). 3.2 Legal framework The idea of the integration of OCMW and the municipality is not entirely new (Homans, 2016; Homans, 2016). In the new decree on local government, we find some indications for the arguments in favour of the integration of OCMW and municipality. An important objective for the integration is efficiency gains. In addition, the explanatory memorandum describes that the integration project should also lead to a greater customer focus and a greater accessibility of social services. The authorities wanted to get rid of the negative stigma which is sometimes associated with the label “OCWM”. Other authors also note that there has been a long discussion about this decision for a while (Cousaert & Van Cauwenberge, 2012; Teerlinck, Paul., & Kupers, Luc. 2017). Concerning the timing of the new decree, article 583 stipulates that the appointment of a new general director will take effect no later than 1 August 2018. Thus, the choices of succession will be made by the time this thesis is being written. Article 587 of the DLB specifies the 24 mechanics of the transfer of the powers to the new directors from their appointment, the transfer should happen no later than 1 August 2018. Most municipalities will organize a transition period before the real transfer of power, so the new director can get some experience. After January 1, 2019 are appointments in accordance with article 585 DLB the prerogative of the newly elected city council. Appointments of the new general managers which are earlier then 1 August 2018 were possible. In the period in between, there exists a transition phase. 3.2.1 Scenarios The exact regulation of the official organization of the municipality and the OCMW can be found in chapter 2 of the final provisions of the decree; the transitional provisions in the local government decree. An analysis of the articles in these transitional provisions tells us that there are, in fact five different scenarios of appointment. These scenarios are the following: Scenario 1: early integration (ART 581) This scenario is the simplest; and to a certain degree the most prepared scenario. It means that one person has already been appointed for both the municipal secretaries and the OCMW secretaries. This scenario can be linked to the concept in the literature of “heir” or “follower” succession. This person is then simply legally appointed as the general director of the municipality with retention of the employment. In this case it is a purely administrative decision, not a choice. This scenario is the result of an early integration, the local government has been working on the integration already. Scenario 2: both offices vacant (ART 582) The second scenario is also relatively obvious. In this situation, both positions for the secretary of the municipalities and the OCMW are vacant. In this case, the municipal council must lay down the conditions of the post of managing director and choose an appropriate selection procedure. The general manager is then selected on the basis of the job description with the job profile as well as the competency requirements and the assessment of the conditions. 25

Scenario 3: only one post vacant (ART 583) In this third scenario, only one office is currently filled (or OCMW secretaries or municipal secretary). In this situation, the city council calls on the secretary to apply for the office of general manager within 30 days. After the expiry of the term, the College of Mayor and Aldermen determines who has raised a timely and admissible candidate. This person is then legally appointed as general manager. A similar situation could arise when only one secretary is interested in the job. Scenario 4: rivalry (ART 583) In this fourth scenario, both posts have been filled in by different people. In this situation, both secretaries are candidates. In this case a systematic comparison takes place of the titles and merits. This had to be done by 1 August 2018 at the latest. If only one of the two candidates is a candidate, the result is equivalent to scenario 3. In the event that none of the two secretaries are candidates, the outcome is equal to scenario 2, whereby the city council will appoint the new general director by recruitment or promotion. Scenario 5: the outside bet (ART 583) A fifth scenario is implied by the new decree on local governance. It is indeed important to remark that article 583 gives the city council the possibility to opt for promotion or selection even if there are 2 candidates. So, scenario 4 could become scenario 2 in practice if the council decides so. This would be interesting cases to look at. This option also highlights that the scenario’s in the model are not exclusive and exhaustive. Every case is different and the decree gives local lawgivers many options and possibilities. Scenario 5 is not illustrated in the scheme below, because it is a scenario which is a possibility for all 4 other scenario’s.

Figure 2: The scenarios of selection and appointment The figure above illustrates the different scenarios which can happen in the path to a new general manager. In this dissertation, the main interest lies in scenarios 2 & 4. Because these paths imply a selection or comparison between different candidates, and this is what the research question is about. Scenarios 1 and 3 imply, on the contrary, that there is only one candidate who is then appointed automatically by law. There is no real choice, it is only an administrative decision, this is why, this thesis will focus on cases in scenario 2 or 4 (in the figure illustrated with red arrows). Like already mentioned, if in scenario 4, no secretary presents as a candidate, then the result will be the same as in scenario 2 (which is of interest to this research), in addition if the council decides to opt for selection even with two secretaries the result will be scenario 2 in practice as well. However, if only one candidate applies, then the result will be the same as scenario 3 (which is not of interest in this paper.

3.2.2 Selection procedures Recruitment and selection are cornerstones in any HR strategy. The goal is to hire the right person for a specific function in the organisation. Local governments in Flanders are no exception and are also affected by macro trends such as scarcity on the labour market, the war for talent, increasing mobility and alternation between employers and the aging of the workforce (Hondeghem, Platteau, Praet, Ruys, & Vandromme, 2012). Each local government needs to appoint one general director. The general director is ultimately appointed, suspended or dismissed by the city council. It is the city council that will determine the recruitment conditions (art 321. DLB). The city council appoints the director within six months after the mandate has become vacant. This term can be extended once by a maximum of six months, in so far as the recruitment and promotion procedure has been started or if the procedure has not resulted in a successful candidate. However, no decree sanction is provided for when these terms are oversubscribed (art 167-168. DLB). The decree makes it clear that the continuity of the municipal administration is very important. That is why a city council can appoint a new general manager before the termination of the office of the outgoing general manager, at the earliest six months before the termination of his mandate (art 167-168. DLB.). The task of the general manager was elaborated in articles 170-175 of the DLB. The decree of local government mentions specifically the necessity of an objective selection procedure. The city council has the autonomy to lay down the different requirements. A new job description and profile of the general manager is a necessary part of the selection procedure. In addition, there should at least be some kind of test, which examines the management -and leadership qualities of the candidates. This should be done by an external recruitment office. (ART 24, DLB). An exam or test is necessary for scenario 2, and optional for scenario 4. This thesis should however take into account underlying power struggles, which might remain invisible because of legal election procedures. Art 8 & 9 explain the legal position regulations which state that local

28 authorities can opt for four types of appointment procedures. (1) The recruitment procedure, in which both external and persons employed by the board are invited to apply for the position. (2) The promotion procedure whereby a member of staff who is already employed by the local board can apply for a vacant position in a higher grade. (3) The internal staff mobility procedure whereby a staff member who is already in employment applies for a vacant position that is classified in the same grade or in another grade. (4) a combination of the procedure explained above. (art 8 &9 legal position regulation). Any recruitment for positions in local authorities must be accompanied by an external announcement and a call for candidates. As mentioned, it is up to the city council to determine the general rules about this. Art 345 devotes itself to the selection procedure, it is stipulated that the selection committee consisting of experts must make the selection. At least half of the members are external experts, the procedure can be outsourced to external agencies. As mentioned, it is up to the local government to record the concrete selection procedure, criteria and techniques. You can opt for a binding cut, based on a result. Recruitment reserves can also be created (art 10-31 legal position regulation). The key principles: equality and the principle of equal access to public service imply that the merits and the qualifications of the candidates have to be compared in an objective and standardised manner. There must be a concrete assessment in, in relation to the vacant job. The equation must be objective, with the same assessment criteria being used for each candidate applied. The goal being, that the best candidate can be selected. Like already explained, the local government is responsible for choosing the selection criteria. The weight that is attached to the criteria is decisive for the outcome, so this is not an unimportant competence. Examples of criteria can include diplomas, certificates, competences, experience, leadership qualities etc. Seniority can be a factor, however it can’t be the only factor, for it would mean a discrimination against younger employees. The same can be said about the age of the candidates. The criteria must be clear, they cannot be too vague.

4. Methodological framework In this chapter, the methodology used in this thesis will be explained. This research set up a qualitative research design. The main reason for using a qualitative methodology is the ability to understand the meaning of the succession process from the perspective of the participants. To truly understand the process, it is important to take the (local) context into account. This thesis will compare several cases in detail using semi- structured interviews. To test the application of the methods, a pilot study was conducted. 3.1 Pilot study The methods which will be used to study several cases in detail were first tested with a pilot study. In this pilot study, a few municipalities in the region “Noorderkempen” were studied. The pilot study mostly served as a test case, to study the data available. The main lessons learned from the pilot study where the need for in-depth interviews in the field. There were a lot of local factors which have to be taken into account. The pilot study also learned that there is not yet any available quantitative material on this topic. 3.2 Case study This thesis investigates patterns in leadership succession through a comparative case study (Yin, 2009; Zwieten & Willems, 2009; Wildavsky, 1979). It is a case study which will try to gather more information about how appointments of top civil servants at the local level are made. Mabry identified deep understanding about specific instances of a phenomenon as the main goal of a case study (Mabry, 2008). In this case study, the phenomenon is an administrative one, the appointment procedures of top civil servants. Bock defines an administrative case study in the following way: "A chronological narrative that portrays how one or more persons (usually officials) went about the business of making (or influencing the making of) a government decision ; or how they went about carrying out such a decision ; or how they sought to deal with a particular problem of government administration." (Edwin, A. Bock, 1962 pp 89) 30

In order to arrive at a meaningful analysis on the leadership succession after a merger in Flemish local government, it is necessary not to make the choice of the case purely on pragmatic considerations or coincidence (Yin, 2009; Zwieten & Willems, 2009; Wildavsky, 1979). This thesis tries to make as informed a choice as possible. In this respect, the population of my research are organisations, more specifically local governments in Flanders after the integration of OCMW and municipality. Considering case selection, this thesis opted to compare municipalities in the region “Hageland”. The reason for this choice is the variety of the municipalities in the region. There are a few regional cities, larger municipalities, and smaller municipalities. This thesis tried to observe as much motivations and reasons behind the appointment procedures as possible. It is especially interested in the different scenarios and the reasons why these scenarios where observed. Like explained in the legal framework, there are different scenarios which can be observed. This dissertation combines elements from MSSD and MDSD, the cases have their geographic location in common, but differ on most other factors. Depending on the number of municipalities in the selected region, a further selection was then made based of the criteria of the “BELFIUS” statistical cluster classification of municipalities. Belfius identifies different types of municipalities, based on different criteria and indicators. They identify six large types of municipalities: residential municipalities, rural municipalities, municipalities with a concentration of economic activity, urbanized municipalities, large and regional cities and coastal municipalities. This dissertation tried to select a mixture of several types of municipalities. Differing characteristics can possible generate a number of different situations and phenomena. Because this dissertation is exploratory in nature, it could be highly relevant to observe different cases. This thesis contacted 18 local government in the selected area. Finally, 8 local governments agreed to participate with the study.

The map below shows these cases: Bierbeek, Begijnendijk, Geetbets, Holsbeek, Lubbeek, Tielt-Winge, Tienen and Scherpenheuvel-Zichem.

Figure 3: map of the selected cases

3.3 data collection methods This thesis used two different data collection methods, those being the interview and the document analysis. This choice was made to obtain the broadest possible perspective on the subject. 3.3.1 Document analysis Concerning the data this research worked with, his thesis started by analysing information from top management in local governments in Flanders. More specific, a database was made with information about the secretaries of the municipality and the OCMW of the past legislature (2014-2019). As well as information about the appointment of the new general manager. This information showed in what scenario the municipality can be classified. Other information related to general indicators on the cases. This data was mostly collected on basis of the so- called "municipal pocketbook" and analogically the "OCMW pocketbook". This thesis also looked at official documents that record the appointment of the new general director. The deadline for these appointments was 1 August 2018, so these decisions are already have been made, and the official documents were all available.

3.3.2 Semi-structured in-depth interviews The cases were then selected were then be studied in more detail, in qualitative fashion. The method chosen for this is that of the semi- structured in-depth interviews. This choice was made because of the exploratory nature of an in-depth interview. In addition, an in-depth interview can further elaborate on underlying motivations, opinions and intentions, with a strong emphasis on input from the interviewees. Also relevant for this research is the "probing" technique, where at appropriate moments deeper questions are asked about deeper meanings and motivations. In this research design, open questions are mainly chosen because they allow complex answers, possibly also answers to which this paper would not have anticipated in the first place. Open questions also allow insight into the thinking process of the interviewees. That is certainly an asset in this research. A disadvantage that this research master's test took into consideration is that the answers are more difficult 33 to compare (Roose & Meuleman, 2016). Another difficulty is the risk of the social desirability bias in the answers of the respondents. Personal and emotional reasons can blur the objectivity of the respondent. It is of great importance to choose the respondents wisely, it was necessary to interview different employees in cases, but preferably also external people; e.g. external recruiters who were involved or advisors from VVSG. Ultimately this thesis chose to focus only on the GDs themselves. It is not always possible to prevent a social desirability bias, but one can take this into account.

Table 3: Codes of the selected respondents

Categories of Politicians Civil servants External respondents persons Interviewees A (1, 2, 3…) B (1, 2, 3…) C (1, 2, 3…) case 1 Interviewees D (1, 2, 3…) F (1, 2, 3…) G (1, 2, 3…) case 2 Interviewees … … … case n

A number of new GDs and a mayor were interviewed for this study. For this master's thesis, interviewees have had first-hand experience with the recent leadership succession of top management the selected cases. Possible respondent are the new general manager of the merged organization, the (former) municipal secretary, the (former) OCMW secretary, the department heads, the OCMW chairman, local politicians, external recruiters (HR consultants) or advisors for local policy such as VSSG staff or employees of the Flemish agency for home affairs. These interviewees were interviewed by means of a topic list. The interviews were all recorded with a recorder. The interviewees were informed according to the rules of informed consent.

3.4 Data analysis methods The interviews were processed with NVivo. Its use allowed researchers to understand social reality in a scientifically sound way (Zhang & Wildemuth, 2005). The interviews were analysed on the basis of coding that emerged from the thematic analysis with Nvivo and were shown on the basis of quotations from the interviewees. The model below illustrated the different steps this thesis will take to analyse the assembled qualitative data. First the cases were selected, and possible respondents were contacted as explained above. The data was gathered by means of semi-structured interviews with experts on the topic. After the data was gathered, and the interviews transcribed, the data was coded. In the first coding phase, known as ‘open coding’ the text was divided into smaller pieces of information. In this phase, pieces of text were divided with names and labels. It involved isolating separate meaning components that are relevant to answering the research questions. The second part of the coding is the 'axial coding' in this phase, the extensive set of codes generated by the open coding phase were structured and put in relation to each other. Loose pieces of code were combined into a logical entity in function of answering the research questions. The last step in the coding process is known as selective coding. In this step the concepts were connected, here the theory was formed and worked out. It was about which concepts are in which relationship with each other. Which processes lead to which outcomes? It is important that these steps are not necessarily linear in nature, the cycle can repeat itself, and the phases can influence each other. Finally, this thesis reports the results of the research in the conclusion. It is the ambition of this thesis not to work in a vacuum but also to link back to the respondents in the selected cases. Since the results may also be interesting for them (Lewins & Silver, 2007; Mortelmans, 2017).

Figure 4: research design

In the last step of the coding process, with selective coding, this thesis tried to examine the main concepts. In addition, these concepts were defined and classified on the basis of indicators, properties and dimensions. These concepts were elaborated upon in relation to other concepts. These concepts can have one or more sub-concepts, a technique which can be found often in the literature. The intention is that these concepts can always be traced back to the research questions (Lewins & Silver, 2007; Mortelmans, 2017).

Figure 5: research design model

5. Analysis This chapter presents the analysis of the empirical material. This chapter consists of two parts, first a short descriptive overview of the cases is given. Second, the material gathered in the interviews will be analysed in function of the sub-research question; motives, strategies and trends. 5.1 Case descriptions This part of the paper will give a short descriptive overview of the selected cases on basis of general indicators. This data was retrieved from the municipal monitor (gemeentemonitor) for the respective cases. The most recent data possible was used for the table below.

Table 4: Core indicators on the cases

Case Bierbeek Begijnen Geetbets Holsbeek Lubbeek Tielt- Tiene Scher dijk Winge n penhe uvel- Ziche m

Number 10.017 10.004 6.037 9.920 14.270 14.756 34.365 22.924 of (2017) (2017) (2017) (2017) (2017) (2017) (2017) (2017) inhabita nts

Surface 39,7 17,6 35,2 38,5 46,1 21,6 71,8 50.50 (km²)

populati 252 568 172 258 309 684 479 454 on density (inhabita nts/ km²)

Average 24.072 20.826 18.456 22.360 23.700 20.960 19.164 19.399 income/ inhabita nt in euro

Number 62 (2015) 57 (2015) 37 (2015) 56 (2015) 80 (2015) 66 (2015) 216 ? of staff (2015) local governm

38 ent (FTE)

BELFIU V1 V3 V9 V1 V1 V1 V5 V5 S Cluster

The Belfius cluster is a typology of local governments in Belgium. The cluster identifies 16 types of municipalities based on a large number of demographic, morphological and socio-economic characteristics. This allows for a comparison between groups of municipalities with similar characteristics. The Belfius cluster is a standard reference work in the field of local governance studies in Belgium. As the table above suggests, most cases selected in this paper are of the type ‘V1’. This type represents “Residential municipalities in the city outskirts.” 1 Other types included in the case are V3: residential municipalities with higher income levels 2, V5: Medium-sized cities 3 and V9: little rural municipalities 4. The Belfius-cluster types of municipalities are characterized by different dynamics. For example; the aging population can play a different role in certain types of municipalities, or the number of registered vehicles or the phenomenon of professional cross-border traffic. However, these dynamics are outside the scope of this paper. For more information, this paper would like to refer to the Belfius cluster (Windey & Beerten, 2018. Belfius, 2017) as well as the reports from the VRIND indicators (VRIND, 2017) and the municipal monitors (Windey & Beerten, 2018). The total number of inhabitants is similar for Bierbeek, Holsbeek and Begijnendijk. The population of Geetbets is a bit smaller, Lubbeek and Tielt-Winge have larger populations and Tienen & Scherpenheuvel have the largest populations of the selected cases. The number of staff working in the local governments of the selected cases is rather similar

1 V1: Woongemeenten in de stadsrand 2 V3: Woongemeenten met hogere inkomens 3 V5: Middelgrote steden 4 V9: Kleine agrarische gemeenten 39 expect for Lubbeek and Tienen, which employ a larger staff of employees. 5.2 data analysis This chapter will analyse the empirical material gathered in the cases. As explained in the methodology chapter, the material is both qualitative and primary in nature. The table below gives an overview of the different functions of the respondents and their corresponding case numbers and respondent codes. Henceforth, this paper will refer to these case numbers and respondent codes. The analysis will be illustrated with citations of respondents on various questions. The quotes are deliberately kept anonymous. 5 This analysis will deal with the background of the general directors, the job competences, the scenario’s in the cases, the ‘ideal scenario’s and finally a short overview of scenarios of local governments in the region which were not included in the case-selection of this paper. These elements are structured on basis of the corresponding three sub- questions; motives, trends and strategies.

Table 5: Cases and Respondents

Function Case number Respondent code General director Case 1 Respondent A General director Case 2 Respondent B General director Case 3 Respondent C General director Case 4 Respondent D Mayor Case 5 Respondent E General director Case 6 Respondent F General director Case 7 Respondent G General director Case 8 Respondent H

5.2.1 On the motivation of the selection A first part of the analysis deals with the motivation of the selection of the new general director as well as the methods of comparison, the necessary competences and the procedure itself.

5 To avoid social desirability bias and to encourage the respondents to speak freely. 40

As the table below illustrates, academic backgrounds among respondents are varied. Four respondents studied law while others studied in different areas. Almost all respondents, however, studied broadly within the "humanities". Concerning previous occupations, most respondents previously worked as the municipal secretary of the same local government they are currently employed in. In case 4, the respondent previously worked as the OCMW secretary and in case 6, the respondent was previously employed in a research project of an educational institution. Before that, however, this respondent also worked as a staff member in the local administration where she now works as general manager. None of the respondents is therefore a real (external) newcomer. They all have a professional link and history with the local administration where they now work as general directors.

Table 6: Respondents background and previous occupation

Case Last occupation Academic background 1 Municipal secretary Military studies/ international politics 2 Municipal secretary Law/ notaryship 3 Municipal secretary Law 4 OCMW secretary Criminology & Business economics 5 Municipal secretary Law 6 Antwerp Management school Law (research project) previous staff member of city (case 6) 7 Municipal secretary Criminology/ communication sciences 8 Director support services Engineering/ city planning Provincial administration of Flemish Brabant

Respondents did not agree on the question whether the competences needed for the function of general director of a local government are different than those needed for the function of secretary of the municipality. The answer on this question depended on the size of 41 the OCMW. An OCMW which is roughly comparable to a municipality in terms of staff and budget will probably require more attention and possibly other competencies than an OCMW which is smaller than the municipality. Respondent B noted that a smaller organization has a different way of organizing and collaborating. “Je manier van organiseren en samenwerking moet je helemaal herschikken want dat kan je niet hetzelfde doen, je kan veel minder zelf opnemen dan een fulltime OCMW-Secretaris. Die OCMW-secretaris had veel meer autonomie dan de gemeentesecretaris tegenover het college. Die was minder gebonden.” (Respondent B) The former function of OCMW-secretary would have more autonomy to manage the internal affairs of their organisation. The OCMW-secretaries of smaller organisations would have had more time to devote to individual employees and cases. Thus, expectations on autonomy and delegating are different between the general director and the OCMW secretary. Other respondents mentioned the social sensitivity which is specific to social policy. The function of general director would be more strategic and less operation than the predecessor functions. Especially in case 6, the importance of management skills where stressed. According to respondent A, an important motivation in explaining the final succession decision is the personal relationships between the persons involved. Especially important is having stable politico-administrative relationships. The General Director stands between the politicians and the administration. It is important to have trust and good relationships, the general director is a civil servant, who has to be able to juggle between these operational and strategic roles. “Het hangt altijd veel van personen af in het lokale bestuur. Als personen goed met elkaar kunnen opschieten … ik vind het zelf ook belangrijk dat de ambtenaren op het hoogste niveau zich loyaal opstellen aan het politieke niveau. Je moet de scheidingslijn met de politiek respecteren … het heeft dus altijd te maken met relaties tussen personen.” (Respondent A)

Respondent B agreed with the importance of personal relationships and added that personal characteristics can play a major role. “In de legislatuur 2012 was er al een grote stap vooruitgezet, toen de voorzitter van het OCMW tot het college is toegevoegd, dat heft het wantrouwen zeker doen afnemen, dat was dus een hele forse stap, toen was de OCMW-secretaris een zeer sterke figuur, inhoudelijk ook, met een zeer duidelijke visie voor het OCMW.” (Respondent B) An important motivation for the decision made is the stance of the local government on the idea of the integration of OCMW and municipality and the DLB. Local governments which are actively supportive of this vision will be more likely to cooperate, hence facilitating the process. The speed of the integration process is also an important factor, if the integration grew incrementally, the decision was probably taken months before the deadline (1 January 2018). If the integration was more chaotic, with resistance, conflicting ideas and visions, then the appointment will be more likely to be prone to conflict as well. “Onze integratie, ik noem het ook nooit inkanteling maar samenwerking, zeer pragmatisch te werk gaan, daar zit helemaal geen dwang achter, als we deze werking integreren, geleidelijk aan, dan komen we wel tot een surplus voor onze diensten, als we daar zes jaar over doen dan is dat zo, maar ieder moet wel inzicht hebben in het belang van die samenwerking … in die zin is het hier zeer zacht verlopen … dat is hier zeer rustig verlopen in vergelijking met andere gemeenten.” (Respondent B) Respondent D made a similar argument in a more conflicting context: “Naar mijn aanvoelen was er een heel groot verschil in visie, toen zat ik in het OCMW, toen was in de gemeente een sterk uitgebouwd team met de sterke gemeentesecretaris en het managementteam, binnen het OCMW-bestuur was dat ook zo, we hebben elkaar nooit zo goed aangevoeld, begrepen. De relatie tussen OCMW en gemeente is nooit zo goed geweest. Ambtelijk en ook een stukje politiek.” (Respondent D) 43

Another element which played a role in some cases was a ‘sense of urgency’ on the timing of the appointment procedure. The deadline of January 1, 2018 was early for some local governments, certainly because not all local governments hold full city councils in the summer. Respondent G mentioned this argument, the period where no decision is yet taken, is a period of uncertainty. This uncertainty would have an impact on the legitimacy of the management of the administration, and the functioning of the organisation. “Na een tijdje duur het lang, en toen zei ik: burgemeester nu moet u niet te lang meer dralen. Het wordt tijd dat ge beslist. Niet alleen voor mij persoonlijk. Dat heeft een impact op de organisatie hé, je focust op jezelf, kan niet alle beslissingen nemen, end at heeft een impact op de werking van de collega’s.” (Respondent G) 5.2.2 On trends in the selection The second part of the analysis consists of the trends observed in the scenario’s selected, as well as the modes of selection and the scenario’s in other municipalities of the area. In the cases we observe two scenarios 4, four scenarios 3 and two scenarios 5. As explained in chapter 3, these are the scenario’s where there is only one candidate (scenario 3), a rivalry between the secretaries of municipality and OCMW (scenario 4) and the outside bet, where an external candidate is selected (scenario 5). Thus, most local governments travelled the roads of scenario’s 3 and 4 towards the new general director. In not all cases, an exact overlap with the theoretical scenarios could be found. For example, the official scenario sometimes differed from the actual scenario. It was therefore important to look at the story behind it. As the table below illustrates, most cases appointed their general director before the deadline of the Flemish government on the first of august 2018. One case appointed the general director later than the deadline.

Table 7: Observed scenarios

Case Scenario Date of appointment GD 1 De Jure 4 25 April 2018 De Facto 3 2 3 26 February 2018 3 3 25 April 2018 4 3 28 February 2019 5 De facto 4 21 June 2018 De Jure 3 6 5 13 July 2018 7 4 28 June 2018 8 5 July 2018 If we compare these findings with the literature on successor candidates, we see that most cases have insider candidates, only two cases have an outsider successor. In most cases we observe a follower succession pattern. One candidate was the ‘logical’ choice in the local government. These local governments have chosen a candidate well in advance. The literature also mentioned the mandates the types of successor represent with their appointment, a mandate of stability for follower successors and a mandate of change for outsider candidates. This link is true in the cases as well. Most local governments preferred stability, the two outsider successions (case 6 and 8) where specifically linked with a mission of organisation re-direction and change (Helmich & Brown, 1972; Kesner & Dalton, 1994; Wiersema, 1995). The question remains however why most cases chose for scenario’s 3 and 4. Both scenarios have in common that they are internal procedures, there are no external candidates involved in the procedure. Thus, most cases preferred an internal procedure. Respondent G noted that in practice, there are generally few external candidates for the position of general director in a local government. The function would be very niche, there is no specific training or education for it, it is not very known, and it might prove to be very challenging to lead the administration of a local government you 45 don’t know. In addition, candidates need very specific skills regarding the relationship with the local politicians. “Waarom is die keuze gemaakt? Omdat we aanvoelen, politiek en beleidsmatig, dat er weinig nieuwe externe kandidaten te vinden zijn om dat mee op te starten.” (Respondent G) A second reason on why most cases chose an internal procedure is the financial argument. Both secretaries (of the municipality and OCMW) are the civil servants with the highest wage. The decree on local governance states that the secretar(y)(-ies) who are not elected for the office of the managing director are entitled to a retention of financial rights and a wage increase of up to 30%. If an external candidate is chosen, this means for a local administration that three officials are entitled to such a salary. In practice, this would mean a large burden on the finances of a local government. From a financial perspective an internal choice is more rational. “Het gevolg is dat weinig besturen een derde in functie hebben aangesteld, gezien ze dan beide secretarissen moeten blijven betalen en één derde erbovenop met 30% opslag. Dat is “financiële harakiri” dat doe je niet als je weet waar je mee bezig bent, het is dan ook logisch dat je één van die twee mensen gaat kiezen.” (Respondent E) A third reason on why internal selection chosen more frequently is the risk which comes with an external selection. Opening the position of the general director towards third parties gives a signal of distrust towards the sitting secretaries. Certainly, if the secretaries function well and have also received good evaluations, an external opening can give a strange signal. The risk is then that the good working relationship between the administration and the local politicians could deteriorate considerably, which can hinder the good functioning of the administration. In addition, involving third parties is no guarantee for selecting a better candidate. These three reasons can help us understand why the cases where more likely to opt for an internal selection procedure. To further analyse

46 why the scenario’s where chosen, we need to look at the history in the cases leading up to the merger of OCMW and Municipality. “Ik denk dat dat heel sterk afhankelijk is van de lokale situatie, ik denk dat het vaak een personenkwestie is, in welke mate zijn de relaties goed tussen OCMW-secretaris, gemeentesecretaris en de lokale politici? Als je relatie met het beleid select is, dan is het al eenvoudiger voor politici om je de deur te wijzen.” (Respondent A) Respondent A mentions that the local situation is very important to understand the choices made. One very important factor is the personal relationships. Especially important is the politico-administrative relationship between the secretaries and the local politicians. If the trust is high, and the relationship is generally good, then it is probably easier to appoint (one of) the secretaries. If the trust is low and the relationship generally bad however, the appointment of the new general director might be considered to be a ‘window of opportunity’ to side-track the secretary or as a way to disconnect the secretary from the organization. The history of the politico-administrative relations in the cases are important to understand the choices made. An element of the personal relationships can be the political ‘colour’ of the candidates. If the political colour of the candidates matches the majority parties of the local government, this might influence the process. Politicians prefer to work with people who share a similar vision, or who at least, do not actively oppose their vision (or that of their party). Another historical element which can explain the choice of the scenario is the (personal) career history of the sitting secretaries, at the moment of the selection. How recent was the secretary appointed? How old are both secretaries? If one of the secretaries is considering retirement, the choice might be easy, indeed in scenario 3, only one secretary applies for the function of general director. The local governments knew about the plans of the Flemish government, it was part of the government agreement of the Flemish government (2014- 2018). However, the plans shifted and changed during the legislature of the government. Because of political discussion and constitutional constrains the plans to abolish the OCMW’s where altered to integrate 47 them in the municipality. It was not entirely clear for the municipalities of Flanders what the result of those political discussions would be in the end. Most local governments were however working on the integration of OCMW and municipality in terms of support services, assets, policy and personnel. Indeed, respondent B mentioned that the local government did not select a new OCMW-secretary because they knew of the future plans of the government to merge the secretary-functions into one function of general director. “Mocht de OCMW-secretaris jonger geweest zijn en niet ziek, dan was het hier wel anders verlopen denk ik.” (Respondent B) “De nota Homans was er toen al, we wisten dus dat we gingen naar een ambtelijke integratie en er was stilzwijgend aangenomen dat als ze écht met pensioen gaat we de wervingsprocedure niet zullen opstarten.” (Respondent B) In many cases, the choice of the candidate has to be traced back to some years earlier. Many local governments did not select a new secretary if a secretary retired, with the reforms in mind. The selection was thus made earlier. Natural outflow and retirement can ease the process of selection. This can be observed with scenario’s 3. The single secretary who remains (and who exerts both functions) is appointed by law. These are examples of early integration. Only two cases (6 & 8) chose for scenario 5 (external comparison). This paper already noted the main arguments against an external procedure. So, what are the arguments for external comparison? One of the main arguments is that scenario 5 generates a larger 'pool' of potential candidates. A competitive comparison of a number of candidates with different backgrounds and experiences can lead to the best candidate. The wages of a general manager could attract competitive 'high profile' candidates. In case 6, the board wanted to give a different, new interpretation to the position of the managing director, it had to become a more management-oriented position. Less executive, more policy than operational. That is why an external procedure has been

48 chosen there. The appointment of the managing director can therefore also be used as a way to implement a change of direction. “Wat mijn benoeming betreft heeft de stad geopteerd in het voorjaar van vorig jaar om een open procedure te doen, er was in de stad zelf vier jaar geen secretaris. We zijn al vier jaar aan de slag gegaan met de waarnemend secretaris. Dat heeft een gigantisch effect op een organisatie. Dat is vergelijkbaar met een bedrijf zonder CEO: compleet stuurloos.” (Respondent H) “(Municipality) heeft dan ook nog een bijzondere geschiedenis, omdat we hebben gezeten met een onbestuurbaarheid. Men heeft dan een procedure gedaan, men heeft dat extern laten verlopen.” (Respondent H) Another trend observed in the different cases was the high number of legal and procedural difficulties many local governments encountered. There were indeed many procedures which were started to contest the appointment decision. Respondent D noted that there was a conflicting decision not in line with the results of the comparison: “De politieke overheid toen in het OCMW wilde iemand anders toen dus ze hebben iemand anders gekozen, maar ik was het hoogste geclassificeerd op het vergelijkende examen. De gouverneur heeft dat dan geschorst. De beslissing van de gemeenteraad vernietigt dat is toen naar een minister gegaan en daarna naar de raad van state.” (Respondent D) Respondent F remarked that there is a high chance for procedural contestations of the decision. “Ik weet dat er een grote kans is op procedures, van de ruimere regio, dat mensen die besluiten gaan aanvechten.” (Respondent F) Respondent G observed procedures in this case as well: “Mijn collega-secretaris had een grote weerstand tegen het integratieproces en heeft een aantal procedures uitgelokt.” (Respondent G)

Finally, respondent H noted that even in cases where there was a comparison by an external partner, procedures can still happen. “In die procedure is er wel één van die deelnemers die beroep heeft aangetekend door een van de deelnemers, dat heeft gemaakt dat ik niet snel kon beginnen, dat is finaal uitgesproken in oktober, toen de gouverneur stelde van ik zie geen reden voor schorsing, maar daar is de raad van state op gesprongen. De rad van state duurt een aantal jaar hé.” (Respondent H) Because of the legal nature of selection and appointment procedures in the public sector, there are a lot of possible difficulties local governments can encounter. Candidates may contest the decision made, there are many reasons for contestation, including non-respect of comparison results, breaches of specific conditions or rules or other irregularities in the selection process. Local governments try to avoid procedural contestations for they can take a long time, ranging from several months to even a few years. During this period of contestation, the position of the appointed candidate is uncertain, possibly leading to instability in the organisation. Difficult scenarios observed in this paper encountered legal procedures. The respondents were asked to give a quick overview of the process of appointment in the neighbouring municipalities of their local government. The list below gives a short overview of the municipalities in the region, which were not studied by this paper. Most municipalities opted for scenario 3. In some municipalities, the procedure is still running.

• Aarschot: Procedure still running • Bekkevoort: OCMW secretary became general director • Boort-Meerbeek: OCMW secretary became general director scenario 4 procedure running • Diest: Procedure is still running • Herent: scenario 3

• Hoegaarden: scenario 3 • Leuven: scenario 3 • Linter: Scenario 3 • Landen: Difficult situation, decision was suspended • Glabbeek: scenario 3 • Kortenaken: OCMW secretary became general director • Tremelo: scenario 3 • Rotsleaar: municipal secretary became general director scenario 4 procedure still running

5.2.3 On the strategies of the selection The third part of the analysis will discuss the strategies for the selection process observed in the caes. Scenario 4 is more difficult than scenario 3 in the sense that it is more conflictual. Only one of the secretaries was able to get the job of the general director. The decree only mentions that the candidates need to be compared on basis of “merits and titles”. Local governments thus could choose the specific instruments and procedures of comparison themselves. Cases 1, 5 and 7 opted for a scenario 4, and thus compared two candidates. The instruments and procedures of comparison differed. In cases 1 and 5 however, there was only de jure a comparison. In reality there was only one candidate who was appointed de jure. In case 1, one of the candidates was retiring and thus did not apply. In case 5, the local politicians and the secretaries negotiated to choose one candidate (and compensate the secretary who did not get the function with a raise), being more a negotiation. This type of scenario could either be an adaptation of scenario 4 or could be its own scenario. The possibility of a pay raise up to 30% is used as a negotiation tool. In case 7 there was a de facto comparison. The two secretaries were compared on basis of cv and motivation letter. The evaluation thereof was done by an external organisation, ‘jobppunt Vlaanderen’ who made a report. The Council members followed that report and appointed the municipal secretary. A difficult balance was that the preparation of the appointment procedure

51 was largely done by the municipal secretary, since the OCMW secretary was absent for a long time. “Ik heb zelf aan de organisatie daarvan meegedaan, maar heb op een moment uiteraard afstand gedaan om dat rechtsgeldig te laten verlopen.” (Respondent G) Case 6 opted for scenario 5, and thus also made a comparison. A total of 36 candidates participated in the procedure, of which 1 internal candidate. These candidates were compared on basis of an exam, which included a large case-study of the approach on the integration between services. There were also theoretical questions. The message was spread with regional press, websites of employer organisations (VDAB) and the municipal website. An external bureau was asked to handle this process. The reason for involving this external bureau was to ‘protect’ the internal HR service. Since they would have to choose their next ‘boss’ and compare some of their colleagues. “Als je een extern bureau kiest heb je op zijn minst de schijn van de onpartijdigheid. Ook om de mensen van HR af te schermen. Die kunnen wel mee ondersteunen en bepaalde dingen doen, maar het is een belangrijke verantwoordelijkheid.” (Respondent F) The respondents had interesting answers on the question what an ‘ideal’ scenario for the selection of a general director would look like according to them. The table below summarizes the answers of the respondents. Respondents A and C had no clear ideal-type. Too many factors play a role in the choice and too much depends on the local situation. Respondents B and E would opt for scenario 5, with external candidates, the competition between candidates who would be compared objectively would be the best choice. According to Respondents D and E the best scenario is 4. Mostly because of the reasons mentioned earlier: financial, risk, trust, and positive evaluations. Respondent G had in interesting answer as well, according to this respondent, the legislator has included a too large number of possible choices (scenarios) for the local governments too choose from. It is not clear which choice is the optimal choice for the local situations. He would propose a scenario where the 52 municipalities firs have to appoint an existing secretary (if there is only one = scenario 3). Then scenario 4. And if this is not satisfactory or if this doesn’t work, go to an external procedure (scenario 5). “Mijn opinie is dat men de politiek te veel keuze heeft gelaten. Er waren te veel keuzes.” (Respondent G).

Table 8: The ideal scenario according to the respondents

Respondent Ideal scenario A Depending on local situation (?) B Objective comparison of (external) candidates (5) C Not sure (?) D Comparison between internal candidates (4) E Internal comparison (4) F Objective comparison of (external) candidates (5) G Too many choices now! Prefers step-by-step system with first internal and external if needed. (3 to 4 to 5). H External open procedure with external partners (5)

Finally, in practice the succession was not always associated with a major change in operations. Some local governments have chosen a minimalist interpretation of the DLB meaning the new general director mostly continuous with the previous tasks, and the other secretary continuing with his former tasks as well, both under a different title.

6. Conclusions

The selection and appointment of the new general secretary proved to be a tough and highly complex choice for the cases studied in this master thesis. The road to the new general secretary certainly is not without its challenges, complications and obstacles. There are many possible choices and considerations to be made. One of the trends identified in this thesis is that most cases opted for insider succession. In this thesis identified as scenario 3 or 4. These scenarios involve an appointment by law (3) or an internal comparison between the secretaries (4). The most commonly chosen scenarios thus are internal procedures. Referring to the literature, we observe mostly follower succession, with a ‘crown heir’ scenario. While some cases had a contender succession with a ‘horse race’ between two candidates. Local governments rarely opt for external selection (outsider succession) (5). Another trend which was observed was that comparison is also rather rare. There are no real ‘outsider’ candidates, even the one case where there was external selection, the candidate was a person with previous experience in the local government. All candidates had previous experiences in their local government, the job of a general director is very niche and specific in nature, a good knowledge of the local government in question is necessary for the job. If there is a comparison, the methods of comparison differ, the decree states few rules on how to do so, cases who compared all involved an external partner to do so. In some cases, the situation ‘de jure’ and ‘de facto’ was different. There are many anomalies and highly situational elements which play an important role in the selection. Personal reasons such as relationships, political preferences and individual careers (retirement) can also play a large role. If one of the secretaries planned to retire soon, many local governments used this as an opportunity to apply scenario 3. Many local governments encountered complicated legal procedures contesting the decision made, both internal and external scenarios. Different motives for the choices made were observed. As explained above, one of the main trends was a preference for internal 54 procedures. Few cases compared candidates, de facto scenario 4 was rare, external selection and comparison even more so, these scenarios are only chosen if there are specific reasons to do so. The motives for choosing an internal candidate are financial, because the DLB has financial guarantees for the secretaries in office. A “third candidate” means a big additional cost for local governments. Another important reason to opt for internal procedures is the risk-related reason, choosing a third candidate would mean choosing a candidate who doesn’t know the organisation, this is potentially a risk. In addition, choosing a third candidate is a kind of “motion of no confidence” towards the sitting secretaries. This can seriously damage good working relationships and trust. Finally, the job of a general director is highly specific, some cases feared that the pool of potential candidates would be very small. The reason all cases which compared did involve an external partner is to ‘protect’ their own HR-staff, candidates might be their own colleagues and their future boss. An external partner might be a guarantee for objectiveness. This thesis thus can confirm the argument of Helmich and Brown that outsider succession is mostly used as an instrument to bring a fresh perspective and to get a strategic change. The reasons where mostly contextual, there were complex organisational problems, which needed an outsider candidate to solve them. In contrast, insider succession, and especially follower succession (crown heir) was mostly used to guarantee a certain stability in the organisation. Concerning the strategies employed, the local governments knew of the plans of the Flemish government regarding the relationship between OCMW and municipality. The developments and legislative process was followed closely. That’s why many local governments opted for a strategy of “early integration” in which they did not replace secretaries who retired if possible or planned the succession in advance. In the literature this is called follower succession, the difference in this case being that the follower successor succeeds him/herself. Since the raise of 30% (in salary) for the general director, both secretaries had strong incentives to be candidates for the job. If both candidates where interested, some municipalities engaged in negotiations with the candidates. This could be seen as an adaptation of contender succession 55 between two candidates. The DLB mentions possibilities for a pay raise for the candidate who didn’t get the job as well (up to 30%). This measure was used in some cases as a tool of negotiations and to circumvent conflict. These negotiations can be considered as a form of scenario 3. Since the result is only one candidate who is appointed by law. Some cases saw the appointment of a new general director as a way to give a new strategic director to the local government. The image the municipalities have of the new function is determining of how the new role will be filled in. In some cases, the change will be small, with the secretaries staying in their old roles “de facto”, while other cases will change their operations more drastically. Most successions observed where insider successions, only two cases showed an outsider successor. Most cases preferred stability over organisational change. The theoretical notion of a link between insider succession and stability and outsider succession with organisation re-direction can be affirmed in these cases (Helmich & Brown, 1972; Kesner & Dalton, 1994; Wiersema, 1995). So how did local governments select the general director, and on what basis? To answer this question, it is important to stress the importance of the local situation and its history. Local governments act rather pragmatically. If one candidate retired in the years before the new decree, chances are great that the local government did not replace the secretary and opted for scenario 3. To summarize, local governments act mostly pragmatic and based on the local situation and history when selecting a general director and the appointment procedure. The most important reasons for the choice are mostly pragmatic and not strategic in nature; financial, personal, historical etc. The selection of the new general director thus is not used as a strategic tool. Changes in organizational direction mostly happen because of environmental reasons to do so, scenario 5 thus is rare, and often a reaction to an environmental force. Organisations opt for insider successors to achieve stability and security and will only opt for outsider succession if there are environmental reasons to do so, to achieve a strategic change in the organisation or to solve complicated problems. In the cases studied we observed an adapted form of contender succession, where the authorities negotiated with the candidates involved. We also observed a variation of 56 follower succession were the candidate was his/her own successor. Succession in public organisations is further complicated by a large number of specific legal procedures, in this case the merger operation proved to be a further layer of complexity. 7. Discussion This thesis studied leadership succession in 8 cases. The paper was limited both in scope (n cases) and in size (one specific region). In addition, the decree on local governance is still very recent. Further research could expand upon this relevant research object by looking at it with a quantitative lens, with a much larger sample size. The local governments face many future challenges for many policy areas are passed down at the local level, not always taking into account the staff and organisational capacity of local governments. Further trends such as (obligatory) mergers between municipalities could be fertile ground for further research. This paper hopes to have given a humble contribution into this field. The interviews highlighted some of the more problematic implications of the new decree on local governance. A first difficulty (1) for the local stakeholders was the uncertainty which was associated with the implementation and approval of the decree during a long period. The future role of the OCMWs and their relationship with the municipal administration was very uncertain. In addition, it was unclear which scenarios would be on the table (2). Various local authorities did not clearly find which options existed under the decree and which measures were considered (ill)legal. In addition, it was unclear which scenarios would be on the table. Various local authorities did not find clearly which options existed under the decree and which measures were legal. The increase in the salary of the new position of general manager was also not without criticism (3). The possibility of a wage increase for the secretary who was not appointed as general manager had unexpected consequences, this measure allowed to "buy off" conflict but sometimes proved to be expensive for local authorities. In practice, therefore, the reform was not always as far-reaching as expected (4). In some situations, the former secretaries continue their previous work almost unchanged, 57 under a different title. In practice the reform might not have changed this much in some local governments. Based on the criticisms and observations outlined above, this dissertation would like to present a couple policy recommendations. First, the Flemish government should better consider the realities in the local administrations. Every local government has its own history, the implications of the decree on local governance are thus different for every case. The government should better consult the local governments on changes towards the future to create more certainty. The local governments face a lot of different challenging reforms at once. The integration of OCMW and municipality is a serious challenge on its own and is often in full transition. The appointment of one new general director is another big challenge, obviously, meanwhile the local governments still need to fulfil their core duties. It would have been better if these changes were introduced step-by-step at an incremental manner (1). Given the diversity of local phenomena, the autonomy the decree offers in terms of scenario’s is a good thing, however, the government should give the local governments a better framework for when scenarios are (legally) applicable (2). Lastly, the universal nature of the salary raise for the general director is problematic (3). De facto, local governments are very unlikely to opt for an external candidate because these financial reasons. In this matter, more autonomy should be given.

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Annexes Annex I: map of all types of municipalities according to the Belfius cluster

Annex II: map of the municipalites in Flanders according to the VRIND- indicator (Flemish regional indicators)

Annex III: map of municipalities of the type ‘small rural municipalities’

Annex IV: municipal logos of the selected cases

Annex V: Questionnaire

Research questions How have municipalities appointed a new general manager, and on what basis have they made their selection? • What are the most common arguments or reasons for the decision taken? (Motives) • What are the most important trends in the selection procedures? (Trends) • What are the strategies used by the municipalities for the appointment? (Strategies)

Introductory questions - What is your academic / and professional background? - What was your upcoming position? - How long have you been working at your local - administration? - Can you briefly outline the story of incorporation into your local administration?

Main questions Motives / reasons - Why are you sitting in this chair now, and not someone else? - What are the primary competitions for a general manager? o Are these competencies different from those of the former secretary of the municipality? o Who determined these competencies? o What are the biggest evolutions in the provisioning competences? o How did your local government deal with this?

Trends - Has there been a lot of conflict about the succession / integration discussion? o Discussion about "earlier integration" in the past, was it so frictionless back then? - What has been the role of politicians in your selection? - Has a selection committee been established? o Which selection tools have been used? - Have external parties been involved in the selection and the committee procedure? - What are the biggest changes made to the meeting? - How did the transition period expire (if applicable) - Has the mandate of general director in your local administration been opened to third parties? 70

o Why yes / no? o If yes, which channels have been used to make this known?

Strategies - Why has your local government prepared for this scenario? o Explain other scenarios and ask why not here? o Did everyone agree with this scenario? - Would you have acted differently now that you can look back at the complete procedure? - How did this process go in the neighboring municipalities?

Probing questions questions Why was this option taken? Why not another? Can you further elaborate on this choice? Can you briefly sketch the situation back then?

Annex VI: Interviews by date and length

CASE DATE LENGHT INTERVIEW INTERVIEW CASE 1 19.02.2019 39.08 min CASE 2 28.02.2019 31.01 min CASE 3 7.03.2019 37.07 min CASE 4 19.03.2019 25.57 min CASE 5 26.03.2019 41.30 min CASE 6 02.04.2019 19.16 min CASE 7 04.04.2019 1.01:53 min CASE 8 17.04.2019 38.02 min

Annex VII: Word cloud Nvivo

Annex VIII: coding tree Nvivo

Annex IX: interviews clustered by word similarity

Annex X: Nodes clustered by word similarity

Annex XI: extract municipal council decision Begijnendijk

Annex XII: extract municipal council decicion Geetbets

Annex XIII: extract municipal council decision Bierbeek

Annex XIV: map of the studied area ‘Hageland’

Annex XV: Control vs independence (Svara, 2002, pp. 179)

Annex XVI: different angles of the succession event