On January 1, 2005 the Lower Saxony State Forest (Niedersächsische Landesforsten, NLF) was founded and changed into an enterprise in the legal form of public law (AöR).
The primary aim was to enable the enterprise “to use goals, methods and instruments for business liberties like a commercial company to make a contribution to the budget con-solidation of Lower Saxony”. To create a suitable framework the reform separated NLF from administration of the state of Lower Saxony. The motives of the reform, the process and the results are evaluated from the perspective of the executive board.
KEYNOTES
1. Forestry takes place in the public room. Forest enterprises operate under other condi-tions than those of other lines of business. Our main source of income – timber – is a naturally produced and renewable resource and it therefore will gain meaning at mastering of central ecologic and social challenges (paraphrased in Germany with ge-neric terms such as “balanced national budget”, “energy turnaround”, “climate chan-ge”). At the same time, the significance of the forests as habitat and recovery room for the people as well as for nature conservation of flora, fauna, habitat and biodiversity, increases. These framework conditions force forestry and forest owners to a business model which is dependent on the acceptance by Society in special measures.
2. In view of the very high population density social requirements on the forest seem particularly distinctive in Germany. The transformation of NLF to a publically mana-ged forest enterprise with a priority on economic motives was remarkable in this con-text. To accomplish the goal of the transformation, the politicians of our state formed a frame which concentrated all former administrative tasks of Forestry Commission
in sovereign and regional authorities (and relieved NLF). In return the responsibili-ty for all results of the management was bundled in organs of the enterprise (and the state administration was relieved of it). That process was started on January 1, 2005.
3. The transformation from an administration to an enterprise cannot just succeed by specifications in a law or a written decree or instruction. New structures alone do not cause any change if they are simply understood as a new type of organizational skeleton. Without changing the “culture” and “convictions”, a formerly task-oriented administration can hardly to be changed into an outcome-oriented enterprise. At first as a prerequisite for the success of the reform in Lower Saxony it was more decisive that a common understanding of the “purpose” and the “rules of the game” bounded the policy, the administration and the enterprise.
4. The change then had to be specified by the executives. With us the leading elite wanted to advance this dynamic process and accepted it as demanded responsibili-ty (competence profile). So the risks were not in the focus at first but primarily the chances connected to the new structure were searched and converted profitably. After the new approach has found the acceptance of the employees, the further permanent improvement process is mainly carried by their engagement.
5. To keep all employees in the picture of the changes and to obtain an acceptance as highly as possible, we worked out new ideal values in a one-year process. They con-sist of 12 basic principles to the common values of all NLF employees and in addi-tion to that of the silviculture programme called LÖWE (Long-term ecological forest development). The orientation at this core value model shall offer NLF a firm foun-dation independent of the spirit of the time and short-term political directives. Stra-tegy changes at short notice and perhaps in the intervals of legislative periods might be a main risk for public forest enterprises. From the core value model 20 ecological, economic and social topics were derived and operationalised by corresponding top indicators (Balanced Score Card).
6. The strategy (10 years) and the business concepts follow the aims. The responsibility for the aims and the strategy lies with the supervisory board next to the executive board which develops all that and steers its putting into action. Regarding this the supervisory board has been aware of its responsibility so long despite a change of government from the Conservatives (CDU) to a coalition of the Social Democrats und Greens within the 12 years of existence. Certification systems (PEFC, FSC) play a subordinate role because the silviculture programme (silviculture close to nature (LÖWE)) stands for a long-term development and integrates management standards. The market adaption will have decisive influence on the choice of certification system in the future.
7. A further key factor was the complete assignment of the property to NLF. The executi-ves and the employees most of all feel an intensive sense of responsibility for the wel-fare of the “forests of their own”. Already on top level before the motivation for a suc-cessful management of the “own property” is increased again. Accompanied by the development inside NLF the politicians freed themselves of the responsibility for dif-ficult topics that arise from entrepreneurial risks such as market disturbances or incre-asing staff expenditure. With this course all risks, thus also the “unpopular” decisions, lie within the enterprise (e.g. rationalization compulsion, staff cuts) and at the end with the executive board and the supervisory board. The precautions with reserves and pro-visions were intensified.
8. With regard to some top indicators (e.g. profit, liquidity, reserves, growing volume, employees) the results have developed satisfactorily. Even if impulses arose from the introduction of new bookkeeping instruments (e.g. double entry book keeping, pro-fit & loss), the decisive improvements are, however, based on psychology. Since the profit enables social improvements and since it is accepted as aim and steering fac-tor employees act one by one and accumulated with a greater fortune, liquidity, risk and yield consciousness. Quality and customer benefit have gained a stronger impor-tance. Risks are looked at more thoroughly than in an administration with a yearly budget financed by the state. The identification of the employees not only with their work but also with the employer is very high (employee survey).
9. Conclusions: The new approach of the Niedersächsische Landesforsten (NLF) con-sists of a new organizational structure, new strategic aims and new business princi-pals. It has led to more economic, ecologic and social success. Consequently public enterprises like NLF can go a successful way if they are equipped with the necessary business liberties. The political representatives in the steering board accept their re-sponsibility for the enterprise – they do have to by law – and they are confronted with operative consequences of their political behaviour. The legal form and organisatio-nal structure offer more protection against political influence but cannot reduce the risk of fundamental or ideological changes, however, completely.
Carsten.Wilke@umwelt.hessen.de