Recipes

In Studio:

forSystemic
Change
Bryan Boyer,
Justin W. Cook &
Marco Steinberg
2
Subsection 3

In Studio:

Recipes for Bryan Boyer,

Systemic Change Justin W. Cook &
Marco Steinberg
4
6

Ways Through This Book

Acknowledging that many

of us read in different ways
and most of us have less
time for reading than we
would like, the adjacent
page offers a few sugges-
tions for taking an abbre-
viated path through this
book.

If you're reading this digi-

tally you can click on a
heading to jump to that
page.

To navigate between sec-

tions more easily, click on
the page number at the
top of any page to jump
back to the Table of Con-
tents.
Subsection 7

Understand
strategic design
better Introduction > P 19-22
Strategic Design > P 23-49
Get an idea of
what a studio
looks like The HDL Studio Model > P 87-89
Building a Team > P 104-105
Organizing a Week > P 108-111
Expected Outcomes > P 113-115
Choose one recap
> Education P 54-63
> Sustainability P 64-73
See examples > Ageing P 74-83

of reframing a
challenge Select one Challenge Briefing
> Education Brief P 141-203
> Sustainability Brief P 205-271
> Ageing Brief P 273-323

Then read the relevant recap

> Education P 54-63
> Sustainability P 64-73
> Ageing P 74-83

A quick overview
of it all Introduction > P 19-22
Strategic Design > P 23-49
The HDL Studio Model > P 87-89
Choose one Studio recap
> Education P 54-63
> Sustainability P 64-73
> Ageing P 74-83
8
10

015 019 023

Foreword by Geoff Mulgan Introduction Strategic Design
23 —Beyond Vision
25 —A Third Culture
27 —Becoming Strategic
31 —Mind the Gaps
33 —The Pursuit of Synthesis
34 —Putting It All on the Table
36 —Honing Intuition
37 —Sketching
40 —Handle with Care
41 —Staying Relevant
43 —A Quick Case Study in
Applied Optimism

054 064 074

Education Studio Sustainability Studio Ageing Studio
055—Challenge excerpt 065—Challenge excerpt 075—Challenge excerpt
058—Team 068—Team 078—Team
060—Week schedule 070—Week schedule 080—Week schedule
062—Outcomes 072—Outcomes 082—Outcomes

HDL 2010
Studios

086 137
HDL Studio Model How-Tos Afterword by Mikko Kosonen
087—The 4Ps
090—Your Role
092—Selecting a Challenge
096—Writing the Briefing
100—Building a Team
106—Scheduling a Week
113—Outcomes
116—The Final Review
120—Physical Infrastructure
126—Soft Infrastructure
130—Atmosphere
134—Planning Timeline
Table of Contents 11

141 205 273

Education Studio Sustainability Studio Ageing Studio
Challenge Briefing Challenge Briefing Challenge Briefing

Who's Really Failing? Delivering Sustainability Extending Well-being

Dropouts as Lead Users A pathway to carbon Rethinking welfare for an
neutrality and innovation ageing society
in the built environment

326
326—Some Important Abilities
of the Strategic Designer
328—Glossary/index
330—Bibliography
331—Thanks
332—About Sitra
333—About the Authors
335—Imprint
12

Creative Commons Licence

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mons Attribution-NonCommercial-ShareAlike
2.0 licence.

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Preface 13

This is intended to be a hybrid between a philosophi-

cal operations manual and an operational philosophy.
We hope it to be thought-provoking as well as use-
ful, but most importantly we hope that this book will
inspire you to share your own experiences with the
emerging community of strategic designers and other
related practitioners, such as those in the social inno-
vation community, who are motivated to find their
role in tackling large-scale challenges. This is our
attempt to open-source the Helsinki Design Lab (HDL)
Studio Model. We are continually developing this way
of working at Sitra and if what you read here is useful
in your own context we look forward to hearing about
your adaptations.

When the term ‘open source’ is used to describe a piece of software it means
that the programming that makes software function, the ‘source code,’ is avail-
able for anyone to read, learn from and re-use. If you are not a programmer,
you might associate ‘open source’ with free, and that indeed is one very attrac-
tive aspect of most open source software. But ‘open source’ also means that
the code can be shared, modified and developed in collaboration. This gives a
boost to other programmers who are trying to accomplish something similar
but want to learn from others who have already trodden a similar path.
In this book we’re attempting to do something similar by opening up the
‘source code’ of the HDL Studio Model so that our work might also be useful
to anyone else who is struggling with the same issues. The question we’re try-
ing to answer is how the design studio might be used to deliver strategic input
on hard problems.
The findings enclosed here are accumulated from our experiences organis-
ing and hosting seven week-long studio sessions in 2010 and 2011, the Low2No
Sustainable Design and Development Competition and stewardship of its
ongoing realization as a concrete project, as well as many analogous experi-
ences from our individual backgrounds in teaching, researching and working
as architects.
If this book is useful to you, or should you have suggestions, amendments,
alterations, or corrections, please join the conversation via Twitter @HDL2010
or on the web at www.helsinkidesignlab.org/instudio/. By working in an open
manner we hope that tomorrow’s mistakes will be new ones.
14 Chapter
Foreword by 15
Geoff Mulgan
CEO, NESTA,
National Endowment for
Science, Technology and the Arts

The last few years have brought growing worldwide inter-

est in applying design methods and design thinking to
social and public policy challenges. At their best these
methods catalyse people to see issues and possibilities
in a fresh way. They spark creativity and help us to spot
the possible connections between things, which so often
become obscured by the silos of daily life which dominate
governments and businesses alike. The visualisation tech-
niques which are second nature to designers can be par-
ticularly useful in enabling us to escape the constraints of
prose and numbers which tend to dominate bureaucra-
cies. Best of all the design mind often sees possibilities
that are simply invisible to policy makers.

As a result this book is very timely. We're at a fascinating moment where

design is influencing new fields. Its contribution is recognised as never
before in areas like health, education, welfare or housing. But just as fas-
cinating is the fact that designers are now acknowledging how much they
have to learn, if their tools are to realise their full potential. An important
field of innovation is itself undergoing rapid innovation.
The Helsinki Design Lab is one of the most interesting of a family of
new hybrid models that are trying to synthesise the best of design with the
best of public policy and problem solving. These models tend to draw on
three sets of tools.
A first set help with understanding. Designers have adapted some
of the methods of ethnography to see how the world looks and feels to
the users of services, tools that were at times used in public services but
more often forgotten. Under the banner of ‘user led design’ they've also
taken some of the methods of social movements—like the disability rights
movement—which have always involved people in need to shape new
alternatives. Serious engagement with end users in this way invariably
brings new insights to the surface, showing how apparently well-designed
systems often fail to take account for the fine grain of daily life. Individual
services may work well but the whole service journey does not, whether
for a patient with a life threatening condition, or a pupil passing through
schools and colleges.
16 Chapter

The next set of tools is prototyping. This practice has

spread far beyond its origins in preparing products for manu-
facture. Today we have not only rapid prototyping of things,
using new tools such as 3D printers, but also a new genera-
tion of prototyping approaches that allow fast, collaborative
creation of systems and services. With all of them comes the
idea that the best way to learn is to do, and that rather than
spending years perfecting a new service model or strategy the
fastest way to improve it is to do it on a small scale, and for
real. This has always been the way in some design practices,
*—A note from the authors: and architects such as Christopher Alexander* have long
Mentioning Alexander here is prescient, as he advocated this approach for buildings too—using mock-ups
was one of the guests at Helsinki Design Lab
Global 1968**, a conference that marked the
of structures to see whether they really do feel right. But these
beginning of Sitra's relationship with forward- methods are fresh and radical in other settings, such as public
thinking design practice. Also in attendance services.
were Finnish design leaders such as Kaj Frank
as well as international luminaries including
The third set of tools which are being creatively adapted
Victor Papanek and Buckminster Fuller. come from systems mapping and thinking, which focuses
attention to connections and causes. Systems thinking
**Originally called "Teollisuus Ympäristö
Tuotesuunnittelu"
prompts us to ask the right question rather than taking ques-
tions at face value. What, for example, is the real problem of
non-attendance at school? Is it a failure on the part of schools
themselves, of families or of young people? Do the real causes
lie in the fact that lessons are boring, or that popular culture
devalues hard work?
Getting the questions sharply focused is the necessary
condition for getting the answers right, and, in general, the
more we can think systemically rather than in institutional
and disciplinary silos the more likely it is that we will achieve
results.
Sitra has applied design thinking in many fields, and
helped make Finland one of the world's leaders in design
thinking and practice. The Helsinki Design Lab Studio Model
is a fascinating experiment that points the way forward. It
uses a range of tools from design to achieve breakthroughs,
first in thinking and then in action.
I like very much the principles it uses: one is a commit-
ment to time. Many conferences feel dull and overlong but
are actually too short to seriously think and consider complex
problems. Too often they finish just when we’re beginning to
see things in a new way.
I like the idea of locking participants in, metaphorically
if not literally. Many conferences like using ‘open space’
techniques in which it is always acceptable to leave. This can
lead to creativity. But too often the result is superficiality,
recycling opinions and ideas but without much progress.
Helsinki Design Lab tries to counter this.
Foreword 17

Helsinki Design Lab's activities are also interdisciplin-

ary in just the right way. Working in a crosscutting manner
requires time so that people are able to understand each
other's language. Here the investment in just enough time
spent together yields returns too.
And finally, I like the way that the Helsinki Design Lab
recognises that effective innovation needs a client, and needs
to understand the client's needs. In some cases the clients will
be paying customers. In others they will be a part of govern-
ment. Bringing them in upstream makes it more likely that
the end result will be used and useful.
This particular model won’t be the last word. We're now
living through a period of intensive innovation in innovation
practices, with everything from meetings to collaborative
platforms, prototypes to funds, being adapted and played
with to see what works best for turning ideas into reality.
Finland has shown itself to be particular good at explor-
ing the future, both culturally and in terms of tools. This
book is a great confirmation of just how well placed it is to
think its way out of the profound challenges our world now
faces.
John Maynard Keynes once wrote that governments hate
to be well-informed because it makes the process of decision-
making so much more complex. The same could be said of
the best design methods. But our aspiration in all of this
should be to avoid both simplicity and complexity. Instead we
should follow the injunction of Oliver Wendell Holmes who
once wrote:

“I wouldn't give a fig for the simplicity

on this side of complexity; I would give
my life for the simplicity on the far side
of complexity.”

Geoff Mulgan
CEO, NESTA
London, July 2011
18 Chapter
Introduction 19
Strategic Design &
The Helsinki Design Lab Studio Model

Ignorance, as the cliché goes, is bliss. Modern soci-

ety is now beginning to see—sometimes painfully—
that the most critical challenges we face are also
the ones which are most interconnected or systemic
in nature. A blissful ignorance of Earth’s ecology
allowed humanity to enjoy decades of unprecedented
development without much thought about its long-
term consequences. Only recently have the negative
impacts of this development been measured and
broadly understood by science, yet lagging and con-
flicted decision-making has inhibited a serious and
concerted response. By expanding our understanding
of systemic problems, we can better appreciate the
principles that govern them and the risks they pose to
society.

Today we find ourselves in an awkward adolescence, dis-

abused of a happy obliviousness to the difficulty of dealing
with systemic issues, but still without tried and true exper-
tise to definitively lead us away from oblivion. Will the 21st
century be one of growth—of human health, happiness, and
resilience—or will we face further hardships as the conse-
quences of blissfully ignorant decisions continue to com-
pound?
The answer lies in our ability to redesign decision-making
at every level—from the individual to the institutional—to
operate better in a time of uncertainty and continual change.
At the institutional scale, the global financial crisis of 2008 or
Japan’s nuclear crisis in early 2011 have demonstrated that our
institutions often have no choice but to act decisively in times
of uncertainty. But how do we know that these decisions will
effect positive change? What strategic tools will improve the
agility of our most important institutions and enable them to
respond quickly to problems at all scales?
Where previously the focus has been on improving inher-
ited systems, today’s challenge is to dramatically rethink
existing configurations or even create new ones. But who will
 20 Chapter

design tomorrow’s models? Where do those abilities reside

and what tools are needed? Our ability to provide for our
societies is being challenged by the fact that many of today’s
problems are structural in nature, with little or no precedent.
What do you do when there is no model to copy, no precedent
to improve upon? The radical financial changes sweep-
ing Europe, for example, will not be answered by process
improvements alone, rather they will require rethinking and
redesign. These questions are the motivation for Sitra’s work,
which seeks to create new design tools to shape better deci-
sions and ultimately deliver improved outcomes. This is what
we call ‘strategic design’.
By developing strategic design, we hope to advance
society’s ability to cope with complex issues, such as climate
change and demographic shifts, by developing tools to assist
institutions to better conceptualize and respond to ‘wicked’
challenges. The first fruit of this effort is the HDL Studio
Model, a structured engagement designed to rapidly gener-
ate the sketch of systemic redesign by bringing together the
right people to focus on a carefully defined problem, using a
flexible process in a physical place that is conducive to col-
laboration.
In the course of one week the team immerse themselves
in the problem, unpacking assumptions and
Both hard and soft evidence is taboos to understand root causes. This acceler-
used, thereby avoiding the com- ated timeline is enabled by employing the ‘third
culture’ of design and by bringing together a
mon trap of giving preference to mix of domain experts and designers to work
the quantitative above all else, together intensively. Fundamental to the HDL
which is especially dangerous Studio is an open approach that combines the
expertise and experience of its participants,
when working in areas of knowl- relevant research and observations in the field to
edge where reliable measurements produce a synthetic re-framing of the challenge
do not yet exist or data is over- at hand. Both hard and soft evidence is used,
thereby avoiding the common trap of giving
whelming. preference to the quantitative above all else,
which is especially dangerous when working in
areas of knowledge where reliable measurements do not yet
exist or data is overwhelming.
Having broken down the issues to expose the ecosystem
of the challenge, the Studio defines a strategic intent for
improvement and sketches an architecture of solutions to get
us there. These outcomes help frame a path forward by identi-
fying new opportunities and specifying the first steps of work
necessary to take advantage of those insights. By emphasizing
Introduction 21

an iterative working style, the HDL Studio represents a model

of problem solving that diverges from more common linear
approaches that judge progress incrementally.
Yesterday's and today’s decision-making works well when
precedents exist and context is static. Decision-makers come
to a consensus about the nature of a problem, ask an orga-
nization to research and compare proven models, engineer
the solution, and deliver it to end-users, who then have
limited and slow, if any, mechanisms for direct feedback. Yet
today’s challenges are highly interconnected and dynamic,
demanding new solutions for which our institutions are often
ill-equipped and too slow. The HDL Studio Model is designed
as a lightweight tool to enable organizations to quickly sketch
new solutions matching their new challenges, thereby kick-
starting the transformation process.
Increasingly society operates ‘pre-factually.’1 In such 1—Paul Nakazawa, Lecturer in Architecture at
cases, analysing existing options may not provide the neces- the Harvard Graduate School of Design, uses
this term to describe working in and respond-
sary insights needed to respond successfully because the ing to a context where evidence is still devel-
challenge is one that has not been dealt with before and the oping, information is incomplete, and debate
facts do not exist yet. Although there has been intense focus around the factual foundation is ongoing.
on innovation in products and businesses, our understanding
of innovation at the systems scale is still emerging. We find
ourselves lacking sophisticated ways to articulate new ideas
about systems and the ways they relate and interlock.
Academies of learning, governmental struc-
tures and professions are built around ‘silos’ of Society is lacking sophisticated
protected professional activity and expertise. ways to articulate new ideas about
These were immensely valuable during the
period of aggressive development beginning systems and the ways they relate
with the Industrial Revolution. An intense focus and interlock.
on increasing specialization has yielded great
advances in just about every category of human
effort, especially science. By focusing knowledge-creation
efforts into silos, society was able to excel at engineering
answers to specific, discrete problems, but this came at the
expense of an ability to consider the big picture. In these
fissures between the silos—areas that we do not have a strong
ability to describe, or even name, never mind procure—is
where the grand challenges of today are found.
This is particularly acute in government contexts that
are often saddled with the most inertia. Governments spend
billions annually on research and development in specific
areas of content, such as technology and defence, but they
tend to invest little in themselves—in developing new ways
of tackling problems. Though facing the most pressing of 21st
22 Chapter

century challenges, our government institutions often operate

with 18th century principles. Today’s challenge lies in rewrit-
ing assumptions inherited from previous eras of prosperity
and creating ways of working across silos and other arbitrary
boundaries—and quickly. The HDL Studio offers one model
for filling in the gaps.
While we are pursuing strategic design as a way to frame
challenges, define opportunities and steward their implemen-
tation, this book touches only briefly on stewardship. This is
a reflection of Sitra’s current experience in applying strategic
design, which consists solely of early-stage efforts (such as
the Studios) as the logical starting point. We have benefited
greatly from the proximity of the social innovation commu-
nity and others which are endeavouring to deal with the same
issues. As some of our efforts come to fruition, (including the
1—For more information see www.low2no.org ongoing Low2No sustainable development project 1) we look
forward to publishing further material which shifts the focus
from the refinement of strategic intentions to the stewardship
of implementation.

“Tactics is knowing what to do when there is

something to do, strategy is knowing what to
do when there is nothing to do.”
—Savielly Tartakower, chess Grandmaster
Strategic Design 23

Strategic Design: Beyond Vision

Today there is no lack of vision VISION

in the world, but vision alone is hard Why should we act?

to act on. The difficulty of winning INTENT

political consensus on important & What should be done?
issues such as education, healthcare,
PLAN
and fiscal policy, to name a few, & How will we do it and
means that these conversations often who should be involved?
remain at a fairly abstract level with
STEWARDSHIP
specific plans and proposals tucked Feedback loops that guide
away in piles of paper that few people the why, what, how, and who
ever read. Nevertheless, when con-
sensus does come, action follows and therein lies the dangers
of having strong vision but fuzzy intent: someone will make
specific plans about what to do, but will the choices reflect the
original vision? Strategic intent is the glue that translates the
motivating force of a grand vision into principles that can be
used to make choices on a more discrete level.2 2—In their 1989 Harvard Business Review
Because vision is often tightly coupled with individual article ’Strategic Intent‘, Gary Hamel and C.K.
Prahalad offer a succinct description: “The
leadership, it can also be hard to recognize that we are really goal of Strategic Intent is to fold the future
talking about the same thing. Even when individuals appear back into the present… while [it] is clear about
to be agreeing about a particular vision of change they may ends, it is flexible as to means.” Although our
interest is broader than innovation within
have different ideas about how to get there. For instance, we corporations, many of their observations have
may buy into the notion that society should be diverse and set precedent and remain relevant to the
well integrated, but how do we achieve that vision of integra- discussion in this book.
tion? Where do we start? And most importantly, what does
success look like?
Between the motivating force of grand visions and the
comforting directness of specific plans lies an important
middle ground: strategic intent. When working on something
new, or in a new context, there inevitably comes a time when
one must make a choice without the luxury of precedent or
directive. In these moments when there is ‘nothing to do’ and
no one to turn to, strategic intent is what guides action.
Developing strategic intent benefits from an understand-
ing of what drives value within a given context. It is also help-
ful to be aware of existing barriers, as is devoting time to dis-
cover prime opportunities for creating new value. Ultimately
this yields a more complete description of the problem, which
then enables one to more readily develop actions that deliver
positive impact.
Abraham Lincoln put it well when he suggested that if he
were given six hours to chop down a tree he would spend the
first four sharpening his axe. Vision, too, needs to be honed,
 24 Chapter

and when done right the result is sharp strategic intent that is
useful in chopping planning tasks down to size. Investing the
time to articulate the ecosystem of the problem and create a
balanced ‘portfolio’ of prioritized areas of action accelerates
later choices by providing principles to guide decision-mak-
ing on a more discrete level.
If we take seriously the cheeky example of Lincoln the
lumberjack, how else might he have accomplished his goal?
Without losing the vision of chopping down a dauntingly
large tree, Lincoln the would-be chopper would have looked
to what opportunities were available around him. He could
have spent the first five hours and fifty-five minutes attempt-
ing to design and build a new chopping implement. But
that is hugely risky when existing tools are known to work
decently well and the investment required by new tools is
1—The first mechanical ‘tree-felling machine’ certain to be huge.1 Conversely, he could have immediately
was patented by Andreas Stihl in 1926, a full 64 accepted the givens and started chopping right away with
years after Mr. Lincoln’s untimely death.
a dull axe. The danger with this option is that the task of
chopping becomes so laborious that Lincoln tuckers out
before being able to complete it. In this case, using an already
available option (the axe) and putting his efforts into refin-
ing its effectiveness (honing) represents a shrewd balance of
opportunism and ambition.
Described here is a way of working that is natural to
many entrepreneurs, hackers, inventor-engineers, design-
2—Tinkering is increasingly entering education ers and tinkerers2 of all sorts. Navigating the space between
debates as an important skill for many to have. opportunity and ambition is familiar to anyone who works
For one well-articulated argument see ’A New
Culture of Learning‘ by Douglas Thomas and
with clients, yet working under a brief defined by the client
John Seely Brown. can be very difficult when the instructions are closer to vision
than strategic intent. This is often the case, however, because
robust strategy is difficult to develop a priori, before engaging
specific ideas about services and artefacts that exist in time
and space, and have human consequences.

Design

Investment into clarifying

intent

Visible results Linear approach

ROI

Time
Strategic Design 25

To cope with the compound uncertainty of lacking a clear

strategy but being ‘on the hook’ for very specific and concrete
decisions, many designers have developed ways of working to
clarify inputs and outputs, problem and solution, opportu-
nity and ambition, in tandem.
This nonlinear way of working often remains hidden
inside a ‘black box’ and can therefore be mysterious. Through
our work in strategic design we are attempting to demystify
some of these ways of working so as to make them more
accessible and useful in contexts outside traditional design
tasks.

A Third Culture

This term was coined to describe the characteristics typi-

cal of children growing up between cultures3 (for example a 3—“Third Culture Kids” is a term coined by
child of Finnish parents, growing up in Spain). The idea of Ruth Hill Useem in the 1960’s to describe the
characteristics of children who have grown
a third culture that bridges differences can also be applied up in a multicultural and mobile environment.
to institutional divides, such as our schools and universi- “The third culture kid builds relationships
ties, which are often divided into two distinct parts, the to [multiple] cultures, while not having full
ownership in any” from ‘Third Culture Kids:
sciences and the humanities.4 Taking a closer look at where Growing Up Among Worlds’ by David C. Pollock
departments of design and architecture physically sit reveals and Ruth E. Van Reken
evidence of an ongoing struggle to make sense of what design 4—See C.P. Snow’s Rede Lecture as published
has to offer. in ‘The Two Cultures’ and Immanuel Waller-
stein’s ‘World Systems Analysis: An Introduc-
Sometimes designers share a building with engineers, tion’ for more on this understanding of human
while other times they are collocated with fine arts. Only knowledge.
occasionally do the design departments exist on their own,
separate from both the humanities and the sciences. Perhaps
the difficulty is that design combines some aspects of both
and therefore could legitimately be considered a Third Cul-
ture of knowledge.
As a way of working and thinking, design sits between
the two poles of science, which observes the facts of the
material world, and the humanities, which interprets the
complexities of human experience. Design takes a middle
path and is primarily concerned with appropriateness,
understood as that fragile quality which is achieved when the
best of human intentions are realized within the constraints
of reality.5 Design is a culture that blends the concerns of 5—Cross, Nigel. ‘Designerly Ways of Knowing’.
science and the humanities to search for outcomes that are p. 18

balanced and opportunistic, grounded in the real world but

driven by human aspirations. It is equally concerned with
probing the limits of our current reality as it is with making
new realities possible. Lately within the design professions,
 26 Chapter

a quiet revolution has been growing: is design about mak-

ing or thinking? We see this as a false dichotomy and that
the separation of thinking and doing destroys an important
feedback loop which enables self-learning within a project
*—See also: or programme*. Within architecture for example, persistent
Handle With Care > P40 development from strategy to plans and through the steward-
ship of implementation is what leads to a good building. On
their own, well drawn plans do not mean much.
Design is equally concerned with And during construction it is common for new
probing the limits of our current questions to emerge that would have been impos-
sible to anticipate in advance. This continuity is
reality as it is with making new even more important in the higher-order chal-
realities possible. lenges of strategic design. The fact is that even
the best strategy evolves when put to the test in
1—Mulgan, Geoff. ‘The Art of Public Strategy’. the real world.1
p. 111 ‘Design thinking’ is a buzzword that the market has
picked up to characterize the skills necessary to create strate-
gic intent. In this sense, the popularity of the term is perhaps
more a symptom than a cure. It has become a pathway for
corporations to seek better questions in a market culture
where it is easier to buy clear answers. The growing body of
‘design thinking’ literature emphasizes design as a skill that
everyone should have, but then what do we mean when we
use the word ‘designer’?
Formal education and professional title are often used
as ways of identifying designers, but it’s also possible to find
individuals without any background or training in design
who are very creative in solving problems and therefore
2—Emily Campbell of the RSA discusses might be said to operate like a designer.2 Likewise, many
design as a fundamental skill for ‘resourceful- who hold a degree in design are not particularly suited for
ness and self-reliance’ in the publication ’You
Know More Than You Think You Do’.
systemic or strategic design pursuits.
Just as being musical does not necessarily mean you are
a musician, there are differences between people who are
‘designerly’ and those who are experienced designers. Neither
musicians nor designers ply their trade without clients and
therefore the understanding of someone who is designerly is a
necessary complement to the ability of a designer.
For the purposes of this book, ‘designer’ is not meant
to be defined by professional title or words written on a
diploma. We think of designers as people who exhibit the
attitude, approach and abilities outlined below. Normal Bel
Geddes puts it more eloquently: “No matter what he [sic]
does, in work or play, in one location or another, [a designer]
3—Geddes, Norman Bel. ‘Horizons’. p. 17 thinks in terms of design. It is natural to him.”3
Strategic Design 27

The remainder of this section takes a deeper look at the

attitude, approach and abilities that enable successful strate-
gic design. Our interests have overlaps with areas of organiza-
tional psychology, management, scenario planning and fore-
sight, political science and many others. Each of these fields
yield deep insights into the nitty-gritty of the issues and we
encourage you to pursue that literature as well. The purpose
of this book is not to pretend that design could or even should
supplant these other fields, but to explore the qualitative dif-
ferences that arise when choosing a middle path.

Becoming Strategic

The definition of design and its The purpose of this book is not to pretend
role in the world continues to evolve. that design could or even should supplant
Broadly speaking conventional defi-
nitions of design revolved around these other fields, but to explore the quali-
shaping objects and symbols, tative differences that arise when choosing
but more and more design is also a middle path.
expanding into shaping decisions;
the latter is how we define strategic
design. In an increasingly interconnected, complex and regu-
lated world, the effectiveness of innovations at the discrete
product or project level is becoming limited. In healthcare
architecture, for example, creating significant innovations
by focusing on buildings alone is virtually impossible due to
the highly prescribed and regulated environment. Today’s
hospital solution is predetermined to such an extreme that
the designer has little—or no—room to create new value in
healthcare (or architecture for that matter) by working on
the building alone. While the scale of our healthcare chal-
lenges require strategic improvements, our current systems
of decision-making are often only able to entertain minor
upgrades to existing elements and processes.
While it is easy to agree that the focus should always be
on delivering better health, it can also be difficult to remem-
ber that the systems we live with, such as healthcare, are
human constructions and their dynamics are the result of
accumulated decisions. They can be redesigned. Doing so
may entail a critical re-examination of the notion of ‘best
practice’ to ascertain whether established wisdom is still wise
in our current context.
The emergence of design as a specialized task can be
traced to the rise of mass production. Before massive quanti-
 28 Chapter

ties of a product could roll off the production line, a plan or

master object had to be created by someone with both the
technical understanding of manufacturing and the aesthetic
and cultural understanding of the marketplace—a role filled
1—Sparke, Penny. ‘Consultant Design: The His- by early designers.1 As the development of technology acceler-
tory and Practice of the Designer in Industry’ ated around the turn of the 20th century, a different kind of
design need emerged: entirely new products demanded new
identities. Designers balanced the functional requirements of
technology with specific form and
While the scale of our challenges require shape to express the spirit of the day.
strategic improvements, our current sys- Especially in the wake of widespread
access to electrical power, appliances
tems of decision-making are often only able such as toasters, refrigerators, radios
to entertain minor upgrades to existing and televisions became household
elements and processes. fixtures and industrial designers
helped domesticate these new cat-
egories of objects.
As industrial production
increased with more and more kinds of products entering
the market, some intrepid designers pioneered branding as a
way to build coherence across large sets of objects and media.
As corporations grew larger and operated across diverse
contexts, the design of branding offered a way to retain a
sense of unity among otherwise disparate actions. Eventually
these branding efforts also created new notions of national
and regional identity, with the industrial and commercial
output of different countries offering a productised, pack-
aged and tangible example of the way
1700s
Textile and ceramic patterns
life is lived in a distant land. Even
today it is hard to think of German
1900s design without conjuring up images
Products
of sleekly engineered precision, or to
1930s
Brands

1950s
National identities

2000s
Services and interactions

Now
Systems and strategies
Strategic Design 29

picture Nordic design without its subtle crafting of natural

materials and playful colours.
From the emergence of design as pattern making to
designing global brands, each step in this brief history2 repre- 2—Without attempting to produce a definitive
sents a move from design as giving shape to objects towards history of design, we have included an abbrevi-
ated timeline on the left. This is based on the
using design to give shape to decisions. The career of Ray- 'maturity' of engagement between design
mond Loewy (1893-1986) traces this upstream movement of practice and these various roles throughout
the use of design rather succinctly. After launching his career the ages.

by creating the streamlined appearance of appliances, Loewy

conducted a comprehensive rebranding of the Shell Oil
corporation and was asked by US President John F. Kennedy
to redesign that most visible manifestation of international
statesmanship and soft power, the presidential jet.
More recently designers have begun focusing on the
choreography of services and interactions (such as in user
interfaces), and today a growing group of practitioners are
going one step further by using design to peer into large-scale
systems and developing strategies that enable us to affect
them in positive ways.3 Strategic design is a way to specify 3—A small collection of examples are available
the intentions that we want to accomplish and steward in the Case Studies section of the Helsinki
Design Lab website.
efforts towards the realisation of those aims. For the strategic
designer it’s not a question of thinking or doing, but what to
think about and how to do.
30 Chapter

Sketching the Escalating Division of Knowledge

To test the extent to which silos of knowledge source that could help quantify the growth
are growing in number and simultaneously trajectory. Diderot & d’Alembert’s Encyclopédie
becoming increasingly narrow, we produced was a natural choice. From each listing we
this quick sketch comparing the number gathered only the top two levels of hierarchy
of subjects on offer at the University of (as determined by the description of medieval
Cambridge—one of the oldest institutions in Cambridge, which only had two).
the world. Referring to the university's own
website we found listings of the subjects The intent of this exercise is to provide a quick
on offer today and during the middle ages. scale to the trend so that we could understand
Although we had access to a four volume set the quality of growth in addition to having an
that describes the full history of the university, idea of the quantity. This implies that while the
we opted to maintain the spirit of a sketch volume of human knowledge has grown, so
and instead look for a more easily accessible has its partiality.

11th C. 18th C. 21st C.

Cambridge University Diderot & d’Alembert’s Cambridge University

Encyclopédie

11 Areas 13 Areas 67 Areas

Arts History Arts and Humanities

Grammar Sacred Faculty of Architecture and History of Art, Faculty of Asian and Middle
Logic Ecclesiastical Eastern Studies, Faculty of Classics, Faculty of Divinity, Faculty of English,
Rhetoric Civil, Ancient, & Faculty of Modern and Medieval Languages, Faculty of Music, Faculty of
Arithmetic Modern Philosophy, Centre for Research in the Arts, Social Sciences and Humani-
Music Natural ties
Geometry Philosophy Biological Sciences, including Veterinary Medicine
Astronomy General Meta- Department of Biochemistry, Department of Experimental Psychol-
Divinity physics ogy, Department of Genetics, Department of Pathology, Department of
Law Science of God Pharmacology, Department of Physiology, Development and Neuroscience,
Medicine Science of Man Department of Plant Sciences, Department of Veterinary Medicine, Depart-
Science of Nature ment of Zoology, Wellcome Trust/Cancer Research UK Gurdon Institute,
Poetry Sainsbury Laboratory, Wellcome Trust Centre for Stem Cell Research,
Profane Cambridge Systems Biology Centre
Sacred Clinical Medicine
Clinical Biochemistry, Clinical Neurosciences, Haematology, Medical
Genetics, Medicine, Obstetrics & Gynaecology, Oncology, Paediatrics,
Psychiatry, Public Health & Primary Care, Radiology, Surgery
Humanities and Social Sciences
Faculty of Archaeology and Anthropology, Faculty of Economics, Faculty
of Education, Faculty of History, Faculty of Law, Institute of Criminol-
ogy, Faculty of Politics, Psychology, Sociology and International Studies,
Department of Land Economy, Centre of Latin American Studies, Centre
of African Studies, Centre of South Asian Studies, Development Studies
Committee
Physical Sciences
Department of Applied Mathematics and Theoretical Physics, Institute
of Astronomy, Department of Chemistry, Department of Earth Sciences,
Department of Geography (including the Scott Polar Research Institute),
Department of Material Sciences and Metallurgy, Isaac Newton Institute
for Mathematical Sciences, Department of Physics, Department of Pure
Mathematics and Mathematical Statistics
Technology
Engineering, Chemical Engineering & Biotechnology, Computer Labora-
tory, Judge Business School, Cambridge Programme for Sustainability
Leadership
Strategic Design 31

Mind the Gaps

Let’s zoom out for a moment and reflect on the language

that we use to talk about problem solving and how this
terminology embeds certain assumptions into common ways
of working. The words ‘problem’ and ‘solution’ often imply a
tightly coupled one-to-one relationship between the two—
almost as if every problem had an imaginary best solution,
and likewise every solution could be matched with a single
clear problem. This is an exaggeration, of course, but broadly
speaking it is the model that drove the pursuit of knowledge
in the 20th century: first understand the problem clearly,
identify the solution, and then march towards it. PROBLEM SOLUTION
If problems can be successfully considered in isolation,
increasingly narrow definitions of problems and solutions
are helpful. This drive towards specialization encouraged the
construction of disciplinary silos that effectively ‘own’ groups
of problems. Bounding specific problem and solution areas
creates distinct cultures, jargon, practices and attitudes that
naturally evolve within the community who spend most of
their time focusing on those issues, further reinforcing the
strength of the silo and thus raising the barrier to entry. This
can happen at many different scales, occurring within profes-
sions themselves, different departments of an organization,
and even team by team within a specific department.
The combined result of this mass specialization is akin to
rendering an image in the pointillist style where dots are used
in place of continuous brush strokes. From afar the pointillist
painting is legible as a singular image, but step closer and you
see the image is made up of thousands of dots of paint with
many gaps between them. The deep specializations of con-
temporary society have allowed us to think that we are seeing
the big picture, when in fact our knowledge is represented by
thousands of isolated dots—silos of knowledge—with plenty
of gaps in between. Georges Seurat’s ‘La Parade’, (1889)

If we extend the metaphor to include time and imagine

the development of specializations in our universities, gov-
ernments, organizations, it’s as if the dots of the painting are
growing increasingly small as they focus deeper and deeper
on specific concerns. Adding more dots to maintain the qual-
ity of the image only creates... more gaps!
While we have become better at defining and tackling
issues within individual ‘dots,’ the gaps between them—those
spaces between deep silos of expertise—are where the chal-
lenges of the 21st century lie. We are barely able to name this Detail of ‘La Parade’
 32 Chapter

1—Trans-, multi-, inter-, or cross-disciplinary? area without resorting to metaphors1, let alone describe the
Wicked, hairy, thorny, complex or intractable? territory richly or deliver replicable results on the challenges
The conflict in terminology is perhaps itself a
symptom of the anxiety stemming from soci-
that lurk there. This is not to detract from the very real and
ety’s inability to discuss these issues. truly important contributions that have come from intense
specialization; rather we open this line of inquiry to examine
the potential for, and necessity of, horizontal efforts as well.
To address a different kind of challenge one needs a dif-
ferent kind of approach. Part of the complexity of the most
difficult issues today stems from their intercon-
In a culture dominated by special- nectedness. In a culture dominated by specializa-
ization, the interconnectedness of tion, this results in a frustrating lack of ability to
describe these issues neatly. The linear approach
today’s challenged results in a frus- of first fully defining a problem and then crafting
trating lack of ability to describe a solution proves futile in situations where the
them neatly. problem is ill-defined and is likely to remain so
due to lack of consensus, a dynamic context or
sheer complexity. This is the difference between
working with secrets, which are definitively knowable with
the right insight or access, and mysteries, which always
2—American politician Donald Rumsfeld is include unknown unknowns.2
infamous for this tongue twister, but John C. When working in mysterious territory, we gently reject
Gannon, Deputy Directory for Intelligence at
the CIA, describes the issue more poetically:
the assumption that one first defines the problem and then
“Secrets, at least theoretically, can be obtained creates a solution as separate elements to be addressed in
in one way or another... Mysteries, on the other sequence. We prefer to describe them as existing in a continu-
hand, are unknown or unexplained phenom-
ena... It’s futile to try to steal the answers to
ous feedback loop where quick iterations of framing the prob-
these questions.” lem and sketching potential solutions create a virtuous cycle
of learning. The hunch of a solution inspires new questions
about the problem space and that is where the cycle begins
again. The picture, as it were, is formed by seeing the dots,
the gaps, and the overall relationships between the two in the
same way that the human brain senses and makes sense of all
simultaneously.
PROBLEM SOLUTION Innovation in mysterious situations requires an iterative
approach, improving with each cycle of the feedback loop
as ambition and opportunism are calibrated into a dynamic
equilibrium. The bigger the challenges, the less likely one is to
ever see perfect convergence between framing of the problem
and implementation of solutions. Such challenges will always
be asymptotic in nature, aiming for but never reaching per-
fection. Because of this, working on ‘mysteries’ and avoiding
burn out requires a particular kind of attitude—one that sees
the asymptote as a constant challenge rather than a frustra-
tion.
Strategic Design 33

The Pursuit of Synthesis

In moments when deliberation among existing options Quick iterations of fram-

proves unsatisfactory, strategic design employs synthesis to
create new possibilities where none seemed to exist before.
ing the problem and
Under this methodology, analysis is not the platform on sketching potential solu-
which decisions are made, but becomes a step used to inform tions create a virtuous
the design of revised or totally new alternatives. As a capabil-
ity that enhances innovation, strategic design is therefore
cycle of learning.
most useful in contexts where the stated vision may be com-
pelling but there is no clear pathway to progress.
In the spring of 2009 Sitra launched the Low2No Sustain-
able Design and Development competition which invited
teams to propose a strategy for a low carbon complex of
buildings to be built near the centre of Helsinki. Unlike
typical architecture competitions, however, the teams taking
part in Low2No were asked to pay particular attention to
the expertise profile represented by their teams. The win-
ners would create an ambitious proposal combining a strong
architectural design with strategies for the financial and
infrastructural models that would make their plan achiev-
able. By supplementing the typical competition requirements
with the request for a holistic strategy, Sitra required Low2No
competitors to assemble integrated teams that could intel-
ligently respond to the brief. In effect, Sitra used the rules of
the competition to encourage the formation of new alliances
that could fill in the existing gaps in the market: currently
there are few firms that are single-handedly able to address
the holistic nature of the climate challenge. New problems New problems demand
demand new solutions, and in the case of Low2No that also new solutions, and in the
meant creating new partnerships of knowledge and ability.
Similar to the way that the rules of the Low2No competi- case of Low2No that also
tion encouraged a particular kind of self-organization within meant creating new part-
the community of trades who design and deliver the built nerships of knowledge and
environment, what follows below are loose guidelines for tak-
ing a messy pile of ideas, inputs and experiences and boiling ability.
them down to something coherent, intelligent and useful.
This is the pursuit of synthesis.
Synthesis happens in different ways depending on con-
text. A team of people becomes a synthetic whole when the
abilities of the individuals build on one another to enable the
team to do something that none of the individuals is capable
of alone. This is what occurred during the HDL Studios
described in the How-To section of this book*, where big sets *—See also:
of ideas and inputs are boiled down until they gel into a few The HDL Studio Model > P87
 34 Chapter

strong recommendations. It also happens on a very practical

level, such as when one makes specific choices about how to
phrase a sentence or visualise an idea. The desire for clarity
requires decisions to be made about which elements are given
preference and which are downplayed or omitted without
losing the richness of the original thought. When done well
these are all acts of synthesis that recombine existing bits to
build a new whole that is more than the sum of its parts.

Putting It All on the Table

Strong synthesis relies on having options to choose from

such that the best of each may be borrowed to create some-
thing new, and the more ‘ingredients’ one has
Maintaining an optimism about to choose from, the richer the result. Maintain-
new possibilities and a scepticism ing an optimism about new possibilities and a
scepticism of the givens are powerful ways to
of the givens are powerful ways to remain open to new opportunities. Like a good
remain open to new opportunities. detective, the strategic designer assumes that
they don’t know the full story and that some-
thing, or probably many things, are missing
from the picture. In this sense there is a conscious desire
to expand possibilities and question normative patterns of
reasoning and perception. Seeking a diversity of new and
different inputs helps complement whatever knowledge exists
in a given area and contributes to the formation of a better
big picture. Ultimately the designer seeks to understand the
patterns governing the challenge at hand.
The available information may be broadened by regularly
entering a phase of active expansion of your understanding
of the problem and looking to new sources, such as search-
ing for analogous cases where experience may be transferred
from another professional domain (what?), culture (who?), or
geographic context (where?). History often provides examples
of previous attempts (when?) to solve similar or related
issues, even if the exact problem is now being phrased differ-
ently. Regardless of the source, analysing qualitative differ-
ences (how? why?) is a way of interrogating the relationship
between an idea and its context to understand the critical
factors which might affect its transferability to a new context.
It is best to avoid reinventing the wheel, but often the treads
can make or break an idea’s ability to gain traction in a new
context.
Strategic Design 35

These basic questions of who, what, when, where, and

how are supplemented by introducing the notion of scale.
Changing the scale at which you examine something is a way
of understanding it as situated in or affected by its context,
and, by extension, which questions are relevant or not to the
project at hand. You can think of ‘scale’ as the level of zoom
that you’re using to look at something. Zooming out lets you
see the big picture; zooming in brings details into focus. The
high-level categories of ‘macro’ and ‘micro,’ such as we might
use to describe economics, hint at the role of scalar differ-
ence, but the analogy of a map might be more useful because
maps come in many more varieties than ‘macro’ and ‘micro.’
Comparing a map of the world, a country and a city
reveals very different choices about what information is rel-
evant in each context. On the world map roads are typically
omitted, whereas a city map without roads would be practi- Sometimes the
cally useless, and the map of a country typically includes only decisions one
highways. Different principles govern which aspects become
part of the picture or remain hidden at different scales, makes about a
and from different perspectives. Whereas an engineering small-scale detail
approach uses successively smaller scales to hammer out the have large-scale
details, designers switch between scales during the course
of their work because looking at each scale brings up new impact.
questions. Sometimes the decisions one makes about a small-
scale detail have large-scale impact1, so—whilst intentions 1—For example, John Snow’s discovery of the
are transformed into specific plans—continually iterating water-born nature of Cholera, and his ability to
curb its spread in central London, came down
through different scales helps to round out unexpected to a single water pump. See ’The Visual Display
bumps. of Quantitative Information‘ by Edward Tufte
Being conscious of scale enables the strategic designer to and ’The Ghost Map‘ by Steven Johnson.

test concepts by thinking about their impact at or relevance

to different scales. Information that is critical to frontline
stakeholders might be invisible to national decision-makers,
for instance, so using scalar thinking is a way to be sceptical
of a situation, see it through the eyes of others, and target
your inquiry to uncover the relationships between big and
small. The goal in pursuing these various lines of questioning
is to cast the net as wide as possible and gather the broadest
set of inputs to create a diverse ‘gene pool’ for subsequent
synthesis.
This often means getting out of the office and seeing
things with your own eyes to understand the difference
between the way things are supposed to work and how they
actually work. In addition to the mental frames discussed
here, recent developments in design ethnography and rapid
 36 Chapter

prototyping provide more practical guidance. We’ve included

*—See also: some pointers in the bibliography *.
Bibliography > P330

Honing Intuition

Intuition can be seen as pattern recognition: the ability to

instinctively recognize and understand a set of relationships
without conscious analysis. This is a critical capacity that
humans possess, enabling them to make sense of an other-
wise endlessly complex world.
Having a broad variety of inputs is an important precon-
dition for robust synthesis, but widely collecting insights,
facts and data can be overwhelming if you con-
It can be helpful to work through stantly try to make sense of them. Instead, it can
conscious phases of expansion and be helpful to work through conscious phases of
expansion and contraction, leaning on intuition
contraction, leaning on intuition and analysis at different moments.
and analysis at different moments. Starting with a hunch about what might
be relevant, expansive phases of information
gathering involve the rapid acquisition of new
inputs. Resisting the urge to rigidly structure your findings
enables you to endure a seemingly overwhelming pile of
inputs, knowing that you will have the time to organize and
structure the results. Upon reaching the point of diminish-
ing returns within a particular line of inquiry, the strategic
designer steps back to take stock and begin building a more
structured mental model of how everything fits together.
Doing so enables one to balance induction, where facts are
discovered before articulating a position, and deduction
which starts with a hypothesis and then searches for facts
that validate it. Each are different ways of developing propo-
Expansion Contraction
sitions and codifying meaning, and each have their own
Intuition Analysis strengths. Iterating through both provides a way to hone your
intuition about a given challenge.
Phases of expansion and input gathering tend to happen
quickly and are driven by intuition and hunches, whereas
phases of categorization and contraction are led by analy-
sis and will tend to require more deliberation. By working
through multiple phases of expansion and contraction a
balance may be struck between the speed of an intuitive
approach and the rigour of an analytical one, with each tech-
nique reducing the risk of the other. This cyclical approach
allows the iterations to happen quickly. Early cycles can be
used to explore issues in a cursory way, enabling a more intel-
Strategic Design 37

ligent focus as specific bits of content prove to be interesting

or useful.
For example, when researching food culture in Finland,
you will want to know about production, handling, consump-
tion, marketing and business models. What else? By identi-
fying the various categories that are relevant to the issue of
‘food culture in Finland’ you can use these dimensions to
guide your research. Once a little bit has been collected about
each dimension there is usually a good opportunity to step
back for a minute and begin making sense of how it all fits
together, to assess the overall composition. During this con-
templative pause some dimensions may need be downplayed
or discarded; other dimensions may gain new prominence
and or be added as needed. It is particularly important to
cultivate an ability to disregard dimensions at this stage; tra-
ditional analytical approaches can often get stuck doggedly
pursuing a red herring of an idea. Given that the iterative
approach will generate a few dead-ends quite rapidly, it’s
necessary to learn from these dimensions but also disregard
them. Build them up, yes, but also knock them down. This is
what it means to iterate.
In early iterations of this cycle you might find that the
categories you use to organize ideas will change dramatically,
but over time the categories will stabilize as your intuition
and analysis converge on an appropriate taxonomy that
captures the important themes. Maintaining a gentle scepti-
cism throughout this cyclical approach enables the strategic
designer to unpack a given starting point into an expanded
list of questions, opportunities and inspirations.
Applying intuition can be seen as lacking seriousness of
purpose. On the contrary, to effectively apply intuition in the
context of strategy requires that one fully invest themselves,
living and breathing the issues well enough to have a basic
sense of how things are connected or related.

Sketching

Sketching is how one quickly explores the relationships

between details in a manner and medium that entertains
multiple possibilities simultaneously. As a drawn form of
analysis, it externalizes your ideas so that you can look at
them anew. Doing so in an iterative manner helps to refine 1—The quick iterative model has recently gained
the connections between insights and opportunity.1 This traction in areas outside of design as well,
perhaps most notably in the popular software
requires the ability to follow your intuition to get started, but development methodologies described as ‘agile’.
 38 Chapter

more importantly to learn quickly from your mistakes. These

iterations and your evaluation of them enable a transition
from intuition to tested strategic intent.
In this sense, the working approach of strategic design is
akin to setting out to bake a cake—except that the world had
never seen such a thing, there is no recipe to follow, and you
are not even sure which ingredients are in your kitchen. Only
by digging around in the pantry do you begin to discover
useful ingredients, and through testing and speculation you
begin to develop a sense of how your ingredients might work
together in a recipe that yields a cake on the counter to match
the idea in your head.
Once you’ve pulled a couple mediocre attempts from the
oven you begin to understand the nuances of the emerging
recipe and the importance of certain ingredients in propor-
tion to each other. You might upgrade to a better blender that
will help you fold a more consistent batter, or perhaps you
splurge on organic cherries because you know they will perk
up the recipe. The exact specifics of your solution evolve as
you perfect the recipe and begin to understand which ingre-
dients are key and which need less attention. By hunting and
gathering ideas, trial and error of concepts and the careful
calibration of relationships, you’ve found the recipe for an
excellent cake.
A designer calls this process ‘sketching.’ The seductive
beauty of wispy lines sketched by talented designers often gets
all the attention, but at its core sketching is a way to develop
relationships and details in parallel. Traditionally sketching
is used to begin a design process by allowing different formal
ideas to be explored in a quick and free-flowing way. The
power of the sketch derives from the fact that it implicates
an idea without requiring that every tiny detail be specified
just yet. The written equivalent of a sketch is the bullet-point
outline, but whereas an outline only makes sense when read
from top to bottom a sketch is more open to interpretation
and can be read in many different ways all at
The inherent pliability of sketches once. This inherent pliability of the sketch makes
allow them to be positively re- it positively fungible, able to be re-appropriated
when conditions or context change.
appropriated when conditions or As students we were perplexed by the insis-
context change. tence of our drawing instructors who required
hours of sketching and re-sketching the same
figures and still life compositions, but the reason
was to develop a sensitivity to scale and proportion—two
ways of being specific about relativity. Sketching relationships
Strategic Design 39

in diagrammatic form allows one to quickly explore different

configurations by drawing and redrawing. Strategic design
rarely lends itself to such literal translation onto the page,
but we can still diagram and sketch through problems by
giving ourselves the same freedom to identify key elements
and then work between scales in a nonlinear way to explore
their interdependencies. Working through 'what if ' scenarios
in a spreadsheet, for instance, suffers from a lack of ability to
articulate relationships between systems.
The sketch allows for a momentary suspension of disbe-
lief, offering the freedom to fluidly move between developing
the overall idea, the essential elements and the relationships
between them. Drawing a good sketch of a human figure
involves capturing the dynamic form of the body in broad
strokes while also showing details of the musculature at key
moments. By simultaneously depicting aspects at multiple
scales, the act of sketching out an idea is a way to identify
what matters most and what can be addressed later on.
To use an example we are familiar with at Sitra, develop-
ing a strategy for Finland to reach carbon neutrality is not
possible if we think about the issue on one scale alone. To
truly make progress in this area multiple levels need to be
thought about in parallel and in concert. Structural instru-
ments like energy policy and building codes are certainly
important, and so is the availability of low-carbon consumer
choices such as attractive food options, not to mention the
marketing that will help them grow a customer base. Only
through the combined force of these and many other inter-
ventions will the particularly wicked issue of climate change
be addressed.
Under the banner of Low2No, Sitra is working on many
of these issues as we continue to refine our sketch of the
climate challenge. Every time we shift our focus from one
scale to another we gain a compound understanding of the
interaction between the two. For example, it’s not just about
a carbon neutrality strategy, but the impact of a national
strategy on the built environment and its codes, regulations
and practices. It’s not just about the availability of low-carbon
consumer choices, but how their accessibility and attractive-
ness are shaped and enabled by business models and national
and EU economic policy.
 40 Chapter

Handle with Care

The need to develop a coalition of organizations and

individuals who work together to implement the proposals
that come out of a process like an HDL Studio is one reason
why stewardship is so important. This includes being realistic
about what can be handed off and carried out by someone
else independently, what should be done together, and what
requires occasional tweaking on the difficult road through
vision, intent, plans, implementation and, ultimately, achieve-
ment.
Without the broader stewardship arc, the design process
is easily all about thinking and not doing—this is precisely
what we see to be the difficulty with the ‘design thinking’
debate and its over-emphasis on helping people
In the context of strategic design, think differently. In the context of strategic
ideas are important, but only when design, ideas are important, but only when they
lead to impact. Part of this is appreciating the
they lead to impact. quality with which an idea is executed and rec-
ognizing that quality of execution and quality of
strategy are equally important.
It is common these days for one group to be involved in
analysis of a problem and designing the solution (consultants)
while a different group executes these ideas (contractors). But
this disconnects an essential feedback loop.
Analysis Execution
In contrast, we are primarily concerned with the overlap
or tether between the analysis of problems and the develop-
Consultant & Contractor Relationship ment of solutions. Bridging the gap between analysis and
execution can be an unusual role within many organizations,
though not to the practice of design. By being involved in
stewardship across both is it is possible to close the feed-
back loop between problem and solution, thereby giving the
Analysis Execution
strategy a self-learning mechanism that creates a degree of
intelligent flexibility.

Strategic Design Stewardship

Strategic Design 41

Staying Relevant

Gracefully managing transition points is often about

making sure that both sides share a common understand-
ing. For this reason we pay particular attention to hand-over
moments where critical latent knowledge is most susceptible
to being drained out of the effort.1 This means going beyond 1—Proposals and ideas are just the tip of the
the pale to make sure that not only is the content sound, but iceberg in terms of knowledge that is accrued
during a project or programme. Choices about
that its formatting and transmission also support the strate- what was not done are as important as choices
gic objectives. about what has been done. Maintaining the
Impact is impaired when content cannot be success- integrity of this ‘latent’ knowledge is one part
of future-proofing strategy.
fully communicated or transmitted. In the past,
printed reports have been the dominant tools
for sharing strategy, but what good is a report
Impact is impaired when content
that no one reads? Will another report even get cannot be successfully communi-
the attention it may deserve in today’s crowded cated or transmitted.
media environment? For a number of reasons,
these documents seem almost mandatory—or
may even be a legal obligation, depending on your organiza-
tion’s status. Yet, after spending so much time and effort to
craft a strong, synthetic strategy it does not make sense to
assume that yesterday's communication materials are the
best way to share it. This means becoming as strategic about
media and communication as one is with content.
At the early stage of Helsinki Design Lab we focused on
face to face conversations as our primary format for transfer-
ring the knowledge developed during the Studios. This obli-
gated the Studio teams to articulate their message in a very
digestible way that could focus short but intense discussions,
something like an elevator pitch.2 With the key messages 2—“Elevator Pitch” is a term used to describe
communicated to our essential stakeholders through the a convincing sales pitch that can be made for
an idea in the compressed time frame of an
‘final review’*, we then turned to video as a compelling way elevator ride.
to expand the conversation to a broader audience in a format
*—See also:
that is attractive and accessible enough to develop its own Handle With Care > P40
trajectory across the web. Only after these efforts are we now
turning our attention to the written report (the studio recaps
that follow shortly in this book) which will be useful as a
continual touchpoint during the evolution of Sitra’s work on
the topics of ageing, education and sustainability.
42 Chapter
Strategic Design 43

A Quick Case Study in Applied Optimism

The popularity of some business books makes it enticing

to offer a simple ‘Strategic Design: 7 steps to success.’ While
this might attract attention, it may prove less useful to anyone
attempting to genuinely practice strategic design or apply the
HDL Studio Model. Rather, in this section we have looked at
it as a flexible approach. In a way, this introduction has been
itself strategic, resisting the urge to specify exact tactics and
procedures. Nevertheless, underpinning this way of working
is a set of abilities and an attitude that orchestrates them. To
close this section and bring into play the abilities and attitude
that are complementary to strategic design, we would like to
transition from the heady, ambitious examples used above
and focus on a small vignette from the autumn of 2010.
In September of that year we organized an event called
Helsinki Design Lab Global which brought together over a
hundred people from around the world to discuss the possi-
bilities of design as a government capability. The final session
of the three-day event was organized as a round table discus-
sion and our hope was to use this as a forum for engaging all
120 individuals present. But how were we to avoid the typical
scenario where a panel of speakers sitting on stage are physi-
cally and mentally separated from the audience?
We had an unusual audience consisting of people from
government in equal share to designers, and the content was
equally exploratory for everyone. Under these circumstances
it is hard enough to get everyone in the same room, let alone
try to coax them into the same conversation.
To give ourselves a fair shot at success we were We were attempting to design an
attempting to design an event format to fit our event format to fit our needs rather
needs rather than allowing the existing condi-
tions to shape our aims. than allowing the existing condi-
Our proposal was to forgo the stage at the tions to shape our aims.
front of the room altogether and hold the con-
versation in the round by forming a large circle
of chairs with the moderator in the middle and the panelists
sitting side by side with the rest of the guests. We also pro-
posed specific configurations of lighting and sound, particu-
lar chairs, and changes to the standard catering regimen. In
doing so we hoped to create an atmosphere of comfort and
community that would support our objectives. Citing life
safety concerns in the event of a fire, the venue insisted that
we utilize their usual, time-tested set up with the panelists on
stage and the audience in rank and file rows facing forward.
44 Chapter
Strategic Design 45
46 Chapter

Through investigation, we learned that the chairs were

locked together in sets of 15 and could not be unlocked
because of concerns about congestion that would prevent
people from exiting the room in an orderly fashion. With
some more digging, we discovered that the fire concerns were
based on an occupancy of 300 people, but we would be host-
ing less than half that number. We began sketching alternate
design possibilities so that there would be backup options
if the circle proved impossible. Confident that the initial
rejection was rooted in reflex instead of analysis of the risks
involved with our proposal, we scheduled another meeting
with the venue and politely insisted that the security and
safety manager also attend so that we could have a single con-
versation with all sides represented. Ceding this point would
mean giving up on our goal of engaging all participants in
the finale of our event, a result dramatically counter to the
spirit we wanted to cultivate. It had to work!
Arriving with floor plans drawn to scale illustrating the
ample room there was to manoeuvre around our proposed
circle of chairs, and a willingness to carefully and consid-
erately talk through the venue’s
concerns, we were able to come to
an agreement that would give us the
all-important circle while eliminat-
ing any concerns of fire safety on
behalf of the venue.1 It might sound
like we have a deep attachment to
circular shapes, but we tell this story
because it’s a way to illustrate what
it means to fuss over the big picture
and the details at the same time by
being very careful to understand
their interdependencies and the
1—The answer had nothing to do with the impact that both have on the overall success of your efforts.
chairs: it was about the risks. Rather than solve Unpacking this apparent self-determination reveals a
safety concerns through specific choices about
seating configurations, we mitigated risk by
more satisfying description of the ‘right’ attitude for strategic
having an additional security guard who could design. It began with a sense of empathy that made the team
assist with crowd calming and ushering in the sensitive to the needs of our guests, resulting in shifting
unlikely event of a fire.
our focus from formatting guests into an event, to shaping
an event around guests and patterns of human behaviour.
Empathy feeds inquisitiveness and the desire to know why
things work the way that do—why do people get bored and
disengage in most events? This includes an awareness that
small and seemingly unrelated things can have a big impact—
like the temperature of a room affecting a group’s ability to
Strategic Design 47

concentrate or the mood in a meeting subtly starting to turn

sour. All of this requires observation and a fundamental
understanding of people, things and decisions as situated in
time and space and therefore connected to and influenced by
their context, environment and mental state of being. The dif-
ference between being aware of these issues and understand-
ing them well enough to respond amounts to a difference in
attitude.
Taking action informed by empathy and observation is a
domain where only optimists may tread; optimism allows the
existing condition to be interpreted as status quo
rather than static fact. In contrast to the example Optimism allows the existing
of our event, the grand challenges to which condition to be interpreted as
strategic design is most applicable are character-
ized by inconclusive, incomplete or unavailable status quo rather than static fact.
information. Being comfortable with uncertainty
means one has to be able to suspend disbelief and maintain a
trajectory through situations involving doubt and, inevitably,
risk.
The combined effect of these traits is to enable balanced
judgement in selecting relevant problems and pursuing viable
solutions. By developing a team culture that fosters these
characteristics, one creates an environment that has the
ability to nurture a design process. It’s OK if every individual
does not meet all of these criteria—and you would have a
dream team if they did—but everyone does need to share a
common goal. The ability of each member to work in a team,
and their commitment to doing do so earnestly, is non-nego-
tiable. Without a culture of teamwork and an attitude that is
able to take advantage of collaboration, positive overlaps of
skill set, worldview and expertise are stifled. And it is pre-
cisely those overlaps which help innovation flourish.2 2—Johnson, Steven. ‘Where Good Ideas Come
Overcoming the roadblocks along the way was enabled by From’
abilities in integration, visualisation and stewardship which
form the core of the strategic design skill set. In the appendix
we have provided an additional matrix of abilities* that we *—See also:
look for when seeking talented strategic designers, but here Abilities of the Strategic
Designer > P326
we summarize the highlights.
Skillful integration is what illuminates the complex web
of relationships—between people, organizations and things—
that is necessary to synthesize a point of view and ultimately
deliver well-calibrated solutions. Understanding how things
do or might fit together is a key part of making sure the right
questions are being asked, such as understanding the link
between fire safety, seating options and the concerns of the
 48 Chapter

security staff who were rightfully looking out for their own
job.
Today, the challenges we face have reached a new level of
complexity and volatility for which spreadsheets and other
familiar analytical tools are insufficient. To see challenges in
a new light we sometimes have to literally see them differ-
ently—no spreadsheet would have changed the mind of the
security staff. This is why visualisation as a form
To see challenges in a new light of analysis rather than illustration is more effec-
we sometimes have to literally tive when it is used as part of the thinking pro-
cess, not applied after the fact to pretty up ideas
see them differently. that are fully formed. To deliver on the inten-
tion of having a circular ring of chairs required
exploring the safety concerns through scale drawings that
enabled our team to analyse different options and the risks
inherent to each.
Successful design does not end with good ideas. It also
involves bringing people together to convert ideas into
actions, which is the role of stewardship. Strategic design-
ers are capable of contributing over the duration of a change
process, providing regular feedback to identify, test, rework
and deliver durable solutions. This is why we were not dis-
mayed when we discovered that the plans were not perfect as
we set up the chairs on the eve of the event. The advance team
discovered that one giant ring was unwieldy in practice, but
because we had a clear intent (to foster as intimate a discus-
sion as possible among 120 people) an in-the-moment deci-
sion to split into two concentric rings was easy to make.
Although this episode has now been given far more
attention than it deserves, we tell this story because it allows
us to illustrate the interrelationship between the attitude,
approach and abilities which together form a way of working.
As a whole they enabled our team to navigate from vision to
strategic intent, and then to execution of plans and steward-
ship of successful outcomes.
Strategic Design 49

The next section provides a glimpse into what a similar

process looks like in the context of three of society’s greatest
challenges: education, sustainability and ageing, the three
mega-themes of the HDL Studios that Sitra conducted in the
summer of 2010. Within each chapter we share the initial
challenge, a view into how the week progressed and a sum-
mary of the outcomes. In these Studios the focus was on clos-
ing the gap between vision and intent in just one week’s time,
so please note that the outcomes are very much just sketches.
50 Chapter

For another peek into the HDL Studios you can find brief
video summaries of each on our website:
www.helsinkidesignlab.org/videos/
HDL 2010 Studios 51

We organized the first three HDL Studios on

education, sustainability and ageing with two
goals in mind: to advance Sitra’s understand-
ing of important topics relevant to the future
of Finland, and to test and develop the Studio
Model.1 Included in this section is a comprehen-
sive review of each Studio week. Additionally,
the full challenge briefings for each Studio have
been included as an appendix.

P54 Education Studio 1—We selected these topics for two basic
reasons, one to do with content and the other

P64 Sustainability Studio with resources. We chose topics that struck the
right balance between international relevance

P74 Ageing Studio and Sitra’s national mandate. As such we omit-

ted possible themes such as forestry which are
important for Finland but less compelling from
a broader global perspective. Financial and
staffing resources were also a factor. Simply
put, one topic would not have given us the
confidence of replicability and five would have
been unmanageable. These three studios and
the three topics we selected offered a nice
balance between mission, manageability and
replicability.
52 Chapter
Subsection 53
54 Education Studio

A successful education system

in the future will be defined by
how well it handles diversity and
enables all students to partici-
pate and thrive.
Challenge Excerpt 55

Education
Studio

Despite the reputed excellence of the Finnish Are dropouts simply failing
education system, Finland, too, has its dropouts. in their studies or is Finland’s
Why? Are they simply failing in their studies or
is the highly regarded system showing its cracks highly regarded education sys-
by failing to support these individuals? Dropouts tem showing its cracks by failing
are a leading indicator that reveals a signifi- to support these individuals?
cant challenge and opportunity for education:
how to serve all students in an ever-changing,
diversifying world. For all the effort and money spent on
early intervention, special education, and counselling, not
all students’ learning needs are sufficiently met. Simply put,
the main concern is to expand the learning environment to
reach everyone, including those individuals who learn best in
different ways, in different environments and with different
skills, interests or intelligences.
With the expansion of the global economy comes a
constant flow of money, goods and services between cities
and across borders. International mobility and migration are
redefining populations and diversifying communities while
telecommunications, media and the internet continue to
revolutionize how we perceive the world, consume informa-
tion and interact with others. Taken together, this creates
56 Education Studio

Although current dropout rates

are modest by international stan-
dards, Finland cannot afford to
wait to see if this is an early indi-
cator of a growing trend.
Challenge Excerpt 57

a dynamic culture of complexity that the children of today

must learn to navigate if they are to succeed.
Education must leverage diversity and differences among
individuals into opportunities for greater achievement.
Its challenge is to adjust existing structures to better serve
students of unique cultural backgrounds, talents and intel-
ligences. A successful education system in the future will
be defined by how well it handles diversity and enables all
students to participate and thrive.
At the core of this challenge is the transition from a
monolithic, institutional definition of education to a more
holistic understanding of learning. Today’s classrooms must
evolve and expand into more comprehensive and adapt-
able learning environments, reaching more students more
effectively. Furthermore, classrooms must be seen as only
one of many venues for learning. Doing so will only increase
the value education can deliver amid this emerging cultural
and economic landscape. Education cannot afford to become
complacent nor remain static.
Discrete skills such as reading, writing and arithmetic
must now be complemented by fuzzy competencies such as
the ability to deal with uncertainty, communicate across
cultures and integrate disparate kinds of expertise. Students
must learn to navigate faster-paced and more fluid work envi-
ronments, where divergent thinking, creative problem solv-
ing and flexibility are not only valued but highly rewarded.
In the last century, education was developed to meet
the curricular needs of the industrial age. Now that we have
entered a different era, education systems have not yet fully
adapted to the pressures and opportunities of the new econ-
omy and its more challenging emergent landscape. Students
cannot only think of themselves as members of their com-
munity or nation, but must instead gain deep understanding
of their responsibilities as global citizens.
Although current dropout rates are modest by interna-
tional standards, Finland cannot afford to wait to see if this
is an early indicator of a growing trend. There is a need for
a genuine and fundamental shift away from a highly effec-
tive, but arguably brittle system toward one that can deliver
world-leading education to a diversifying population. The
consequences of inaction are real.
The opportunity for this Studio was to frame this trans- This excerpt is taken from the Education Stu-
formation and identify the key dynamics within education dio Challenge Briefing which is reprinted in the
appendix. > P141 for more.
that will help develop an improved system for today and the
future—one that enables youth to keep pace in a changing
world.
58 Education Studio

Maja Kecman
Senior Associate,
Helen Hamlyn Centre,
Royal College of Art
London

Roope Mokka
Development Director
Demos Helsinki

Dr. Juha Teperi

Programme Director,
Finnish Ministry of Social
Affairs and Health

Lim Lai Cheng

Principal of the Raffles Institu-
tion, Singapore
Team 59

Dr. Jane Holmes Bernstein

Senior Associate in Psychol-
ogy/ Neuropsychology,
Children’s Hospital Boston
Linda Nathan
Founding Headmaster,
Boston Arts Academy

Ann McCormick
CEO, Learning Friends Inc.
San Francisco, CA
Darrel Rhea
CEO of Cheskin
Added Value
San Francisco, CA

Education Studio:
Assistants

Annikki Herranen Rodrigo Cervantes Johanna Nieminen

(HDL Research Team Coor- MSc in International Business Masters student in Industrial
dinator) BSc International Communication, Helsinki Design, Aalto University
Relations, London School School of Economics School of Art & Design
of Economics and Political
Science
60 Education Studio

Monday, May 3 Tuesday, May 4 Wednesday, May 5

Diving in Field visits Starting to Sketch

8:00 Kick off Petri Pohjonen; 07:30 Ressu School 09:00 Day begins
breakfast Deputy Direc- visit
tor Gen, OPH
The Finnish Erja Hoven
07:45 Meeting with
National Board
principal
of Education

8:30 Welcome and Marco Stein- visit 1-2 grad-

"what does berg ers in their
success look class setting
like?" (guest split
into smaller
groups)
10:00 Introductions Studio team
and first
walk around
impressions
school

11:00 Overview of Pekka Ylä- visit 7-9

Finland's mac- Anttila, ETLA, graders in the
roeconomic The Research class setting
and historical Institute of (guest split
development the Finnish into smaller
Economy groups)

10:30 Wrap up
meeting with
Principal

12:00 Lunch in 11:30 Lunch with 11:30 Working lunch Studio team
studio teaching staff w/ discussion with HDL hosts
of first ideas
13:00 Diversity Mirja Talib, 12:30 Walk to the
within the Adjunct Profes- studio
education sor, University
system of Helsinki
13:00 Family and Samuli Koiso-
home life Kanttila, Raisa
14:30 Youth culture Marko Forss, Cacciatore and
and the inter- Ylikonstaapeli Joonas Kek-
net - a police / Internet konen from
perspective Police, Helsinki Väestöliitto
Police depart- (Family Fed-
ment eration)

15:30 Coffee Short walk 15:00 Youth Culture Staff of Kulttu-

in Finland urisuunnittelija
16:00 Overview of Katju Holkeri, Allianssi
Finnish deci- Head of Unit 16:00 Day ends w/
sion making at Ministry of pin-up
Finance, Minis- 16:00 Summarise Studio team
visits 18:00 Walk through (Arranged at
try of Finance
Kamppi shop- the request of
ping center, a studio team)
17:00 Day ends w/ popular youth
pin-up hangout

19:30 Working Studio team 19:30 Working Studio team 19:30 Special dinner Studio team
dinner with HDL hosts dinner with HDL with HDL hosts
hosts
Schedule 61

Thursday, May 6 Friday, May 7

Pulling things together Sharing

09:00 Day begins 9:00 Internal Studio team

review and HDL Hosts

10:00 Phone (Arranged at

interview with the request of
Pasi Sahlberg, studio team)
Director-
General of
the Center for
International
Mobility

12:00 Lunch in 12:00 Lunch in

studio studio

14:00 Vuosaari Upper (Arranged at 16:00 Studio review Maruja Gutier-

Comprehensive the request of rez Diaz, Advi-
School studio team) sor to Director
DG Education
Meet students & Culture
aged 13-16
who are in Timo Lankinen,
a course for Director Gen-
troubled youth eral, Finnish
National Board
of Education

Jonna Sten-
man, Senior
Lead, Sitra

16:00 Day ends w/

Pin-up

19:30 Working dinner Studio team 18:30 Closing Dinner Studio team,
with HDL HDL hosts,
hosts and review
guests
62 Education Studio

Outcomes
Summary
Through conversations with students, teachers, administra-
tors and other stakeholders, the Studio discovered a number
of embedded assumptions about the system itself and about
the ‘lost boys,’ a revealing term used to describe dropouts.
What the Studio observed as underpinning the current suc-
cesses of Finland’s students were strong policies based on
equality that guarantee all students equal access to education;
a high degree of autonomy afforded to individual educational
institutions and teachers; and a particularly high level of trust
between government, communities, schools and students.
But questions remained: does the education system care
about the non-conforming students? Is there a concern for
children’s lives outside of school? Are schools teaching in a
way that is meaningful to all students? Is technology used to
advance education in visionary ways? Is the education system
measuring competencies in accurate ways? Is there teacher
and school accountability? Are kids getting enough physical
exercise? Is there flexibility in applying what students learn
and know? Is the system building empathy and understand-
ing for other cultures?

The Studio suggested a series of seven priority shifts

addressing key elements within the education ecology:

1. Equal access to >  qual opportunity to develop individual talents and

E
education aspirations

2. Current social > Social contract that includes voices of all stakehold-
contract ers (shared meaning)

3. Social welfare >  ocial welfare system v2.0 (Integrated with personal
S
system v1.0 agency and empowerment)

4. Administrative struc- > Ones that are inclusive, open and flexible. Empower
tures that are hierarchi- all levels to interact and co-operate
cal and vertical

5. Schools as institu- > Schools as agents of change that inspire and pro-
tions for acquisition of duce civic innovation creativity as well as holistic
academic skills growth

6. Focus on the > Inclusion of all members of society. Schools to
normative acknowledge and celebrate the whole range of abili-
ties and talents.

7. Learning for academic > Learning for expertise for life
achievement
Outcomes Summary 63

As a set, these merge into the singular guiding principle

of moving from ‘Good to Great.’1 The goal is to replace “I’m 1—A term borrowed from the book of the same
doing well in school” with “I love school and I’m doing great.” name by Jim Collins.

Towards this goal, a set of three action areas were identified.

1. Open Public Discourse

Education is highly valued within Finnish culture, but
the motivations for pursuing education are not always clear.
More voices need to be included in the public discourse, and
with them a broader set of priorities. In particular, children’s
own needs and desires are absent from this discourse, as is a
shared understanding of the value of arts and athletics within
the school establishment.

2. Strengthen International Networks and Collaboration

At a cultural level, Finnish society needs to develop a
more active international presence. Within the education
arena, Finland has a unique opportunity to use its Pro-
gramme for International Student Assessment (PISA) status
to take a leading international role by developing symposia,
conferences and joint research that is multi-lateral. Exposure
to other cultures and lifestyles builds awareness of other ways
of living. This strengthens the personal and cultural core,
enabling students and teachers to appreciate, promote and
preserve their own culture.

3. The New Suomi School

for the 21st Century
The Studio further sketched out the proto-
type of a new learning environment that could
become the model for new schools in Finland.
The emphasis was on experiential learning, col-
laboration, cultural skills and problem solving
enabling children to grow into agile thinkers
who can deftly handle new situations. Success
in this area involves rethinking pedagogy, roles
and infrastructure but also a proper framework
for the pilot so that it offers a clear pathway to
broader adoption if successful, thereby avoiding
prototype paralysis.

The studio proposed a way of thinking about

the education system as being shaped by—and
needing to respond to—a variety of pressures
both global and national.
64 Sustainability Studio
Challenge Excerpt 65

Sustainability
Studio

Finland can achieve carbon neutrality in the Climate change is the symptom
coming decades. In fact, relative to other nations, of a problem; the by-product of
carbon neutrality is low-hanging fruit for
Finland. Its massive carbon sink, growing use of a market failure whose exter-
low-carbon energy sources and effective policy nalities will likely limit future
implementation make the reduction a realistic growth.
and tenable goal. The opportunity for this Studio
is to articulate this value proposition and to
design a pathway to carbon neutrality for the near and long-
term. This marks the first comprehensive effort to design a
clean, green and smart development strategy for Finland.
Climate change is the symptom of a problem; the by-
product of a market failure whose externalities will likely
limit future growth. Unlike other problems faced by past
societies such as war or famine, the invisible pathology of
climate change has also been the engine of global prosperity.
Carbon emissions are our best metric of this failure.
Evidence shows that emissions have increased along with eco-
nomic growth since the industrial revolution. In the last two
hundred years the global economy has grown six-fold, reflect-
ing the tremendous momentum afforded by fossil-fuelled
growth. The expediency of transforming fossils to energy
66 Sustainability Studio

The stage is set for the evolution

of environmental policies into
comprehensive economic and
social transformations.
Challenge Excerpt 67

continues to provide the base material of the built environ-

ment and development worldwide.
Given the conflict between this deeply embedded system
of growth and the urgency to reduce human impact on the
earth’s ecological systems, the defining challenge of this
decade will be to decouple development from combustion.
Economic growth, the built environment, municipal services,
transportation, even agriculture, all rely on combustion, and
our core systems of valuation require that the impacts of
combustion be ignored. Thus, no single individual, firm or
government can transform the practices that drive growth—
it will require an architecture of solutions and actors.
The development of a widespread economic imperative
for restricting carbon emissions seems unlikely in the near or
medium term. As was demonstrated during the Copenhagen
Climate Conference, a global binding pact on climate change
will not happen soon. Enforcement is even more distant.
Addressing this challenge is not just about protecting
ecological systems: it is about creating an opportunity. In
the coming decades, a new frontier of competitiveness will
open between nations—there will be buyers and sellers of the
expertise, technology and models that thrive in a carbon-
restricted economy.
With a decade of crises just behind us, and more on the
horizon, the political and economic climate appears too con-
flicted to shoulder this scale of change. Yet signals from all
sectors and most governments suggest that we have reached
an inflection point, one that signals the onset of change.
While a formal agreement was not reached at Copenhagen,
the event revealed that the topic of climate change had now
engaged not only the environmental ministries, but also
heads of state.
The stage is set for the evolution of environmental policies
into comprehensive economic and social transformations.
For those who want to foster a productive natural environ-
This excerpt is taken from the Sustainability
ment, as well as ensure success in the impending regulatory Studio Challenge Briefing which is reprinted in
environment and emerging markets, the time to act is now. the appendix. > P205 for more.
68 Sustainability Studio

Janne Hukkinen
Professor of Environmental
Federico Parolotto Policy, Helsinki University
Senior Partner, Mobility in
Chain, Milan
Seppo Junnila
Professor of Real Estate Busi-
ness, Aalto School of Science
& Technology

Matthias Rudolph
Project Leader, Transsolar,
Stuttgart

Katharina Schmidt
Masters of Spatial Design
Student, Aalto School of Art
& Design

Dan Hill
Associate,
Arup, Sydney
Team 69

Alejandro Aravena
Executive Director, Elemental,
Santiago de Chile

Patricia McCarney
Director, Global City Indicators
Facility, University of Toronto

Sustainability Studio:
Assistants

Annikki Herranen Taru Hyrynen Kristiina Laine

(HDL Research Team Coor- Masters student in Industrial Masters student in Wood
dinator) BSc International Design, Aalto University Product Engineering, Aalto
Relations, London School School of Art & Design University School of Science
of Economics and Political and Technology
Science
70 Sustainability Studio

Monday, May 24 Tuesday, May 25 Wednesday, May 26

Diving in Field visits Starting to Sketch

8:00 Kick off break- 8:30 Energy effi- Hans Nilsson, 09:00 Day begins
fast ciency, policy, FourFact
and innovation
8:30 Welcome and Marco Stein- in the Nordic
"what does berg region
success look
like?" 10:00 Visits to:

10:00 Introduc- Studio team Mörrintupa

tions and first Outdoor kin-
impressions dergarten
11:00 Transportation Olli-Pekka Pou-
11:00 Overview of Pekka Ylä- Oranssi Co-Op planning in tanen, Director
Finland's mac- Anttila, ETLA, Housing Helsinki of the Traffic
roeconomic The Research Planning Divi-
and historical Institute of sion, Helsinki
development the Finnish City Planning
Economy Department

12:00 Lunch in 12:00 Packed 12:00 Lunch in

studio Lunch studio

13:00 The Govern- Oras Tynk- 13:00 Helsinki City Markku Lahti, 13:00 A global US Ambassa-
ment Sustain- kynen, MP Planning office director of perspective of dor to Finland
ability plan Strategic sustainability Bruce Oreck
See the city on Urban Plan-
14:15 Coffee walk back to ning Division
Studio and Annukka
14:30 Planning Aija Staffans, Lindroos, Dep-
approaches in Aalto Univer- uty Director of
Finland sity Town Planning
Division

16:00 Day ends w/

pin-up

16:00 Day ends w/ 16:00 Summarise Studio team 17:30 Climate Nick Mabey,
pin-up visits Security CEO E3G

19:00 Working Studio team 19:30 Working Studio team 19:00 Special dinner Studio team
dinner with HDL dinner with HDL with HDL
hosts hosts hosts and Nick
Mabey
Schedule 71

Thursday, May 27 Friday, May 28

Pulling things together Sharing

09:00 Day begins 9:00 Internal review Studio team and

HDL Hosts

12:00 Lunch in 12:00 Lunch in

studio studio

13:00 Internal review Studio team with HDL

hosts

16:00 Studio review Mikko Kosonen, President,

Sitra

Jukka Noponen, Director

of Energy programme,
Sitra

Peter Lund, professor of

engineering physics and
advanced energy systems
Aalto University
16:00 Day ends w/
pin-up
Timo Mäkelä, Director of
International Affairs, LIFE
16:30 Cocktail hour w/ Sitra
and Eco-innovation, DG
Energy
Environment, European
programme
Commission
and ERA17
Ministerial
Helena Säteri, Director
working group
General, Department of
on Energy-
the Built Environment The
Smart Built
Ministry of the Environ-
Environment
ment of Finland

19:30 Working Studio team 18:30 Closing Dinner

dinner with HDL
hosts
72 Sustainability Studio

Outcomes
Summary
Three main avenues to carbon neutrality in the built environ-
ment were identified by the Studio: reducing demand for
carbon-intensive energy and behaviours, emphasizing the
role of renewable energy sources, and making use of forests as
a carbon sink. Here the goal was to pursue carbon neutral-
ity under a holistic definition of sustainability. For instance,
although nuclear power is currently a popular low-carbon
choice, it continues to act as a counter-productive crutch to
industry, prohibiting significant innovation in sustainable
energy production and new market sectors.
Finland is one of the few countries featuring a strong cen-
tral government with the ability to efficiently deliver welfare
and quality of life. One of the main questions is how this can
be taken advantage of in the quest to maintain current stan-
dards of living while reigning in carbon emissions.
To advance the conversation, the Studio identified three
meta-themes which specify the qualities that are necessary
for any responses to the current carbon challenge.

1. Diverse needs
Every person, building, and business has different needs,
so blanket approaches to carbon neutrality that favour top-
down implementation may not be productive. A more robust
understanding of one’s carbon tabulation is needed so that
specific trade-offs may be leveraged—even at an individual
level.

2. Urgency
Like most of the world, Finland is already behind its
carbon emission targets for 2050. Yet there is a missing sense
of urgency. Current environmental knowledge suggests that
even five years is a long time to wait for action, thus creating
a palpable sense of urgency is key to unlocking the scale of
impact needed. Many necessary actions have a long cycle of
returns which means they need to be pursued now.

3. Opportunity
A stick-based ‘guilt’ approach to sustainability is proving
its limitations. New strategies need to take advantage of posi-
tive reinforcement. Market opportunities remain open for
those willing to be the first mover.
Outcomes Summary 73

Based on these meta-themes the Studio proposed a set of

ten ‘hunches’ targeting a variety of scales in space, from local
to national, and in time, from immediate results to 100-year
return on investment.

In no specific order:

— War Cabinet of Mayors and Ministers: Bring together

national and local decision makers in a war on carbon.
— Z ero-Energy Homes for Key Gatekeepers: Enlist
influential citizens from politics, business, sports and
culture to lead the transition away from carbon.
— Cross-Finance Renewable Energy: Fund expansion of
renewable sources through taxes levied on non-renew-
able energy.
— Densify Porously: Explore new city planning typolo-
gies that combine urban density with access to nature
emulating the Finnish model (access to nature has
intrinsic cultural importance in Finland).
— Emphasize Small-Scale Natural Areas: Let nature seep
into cities in small pockets too.
— Adopt Mixed Use: Intensify the integration of living,
working, shopping and leisure spaces to reduce travel
needs.
— Invent Medium-Density Public Transport: enable the
creation of products and
services catering to public
transportation for medium-
density environments.
— Invent Cellular Infrastruc-
ture: Explore smart grids and
other technologies to make
lower density viable with a
smaller carbon footprint.
— Performance-based Building
Permits & Audits: Integrated
and holistic ’carbon bud-
gets’ should inform building
design, permit processes and Each of the studio's ideas were described in
usage. terms of their balance across scale, sector, and
timeline. The notion of 'waves' of change was
— Integrate Urban Planning: Bring together quality introduced to offer a pragmatic way to handle
of life, economics, density considerations, natural the extreme inertia in the built environment.
resource strategy, mobility, energy, building perfor- There are many things which require decades
to come to fruition, but there are also actions
mance and land use to make more sophisticated plan- that can be taken today. Both must be done
ning decisions, based on rich, real-time data. in concert.
74 Ageing Studio
Challenge Excerpt 75

Ageing
Studio
With Europe’s most rapidly ageing popula- To make good on the social con-
tion, Finland faces a daunting challenge tract between generations, Finland
in light of the imminent retirement of the
Baby Boomer generation. The onset of sud- must redefine the understanding
den strains and intense pressures will draw of all life stages.
increased attention to shortcomings of the
existing welfare system. To make good on the
social contract between generations, Finland
must rethink how and why it delivers welfare As the Baby Boomers retire, every
services to the elderly, as well as redefine the level of society will be affected—
general understanding of all life stages.
As the average age of many societies in from the individual to the institu-
the developed world steadily rises, the basic tional—with particular attention
assumptions of daily life are being rewritten. focused on the interfaces between
This change affects not only the members
of this ageing population, who are facing these different groups.
increasing competition within a constantly
growing peer group, but also those individuals and commu-
nities who provide care and support for the elderly. As the
Baby Boomers retire, every level of society will be affected—
from the individual to the institutional—with particular
attention focused on the interfaces between these different
groups.
76 Ageing Studio

In advance of the studio week, the assistants prepared a mapping of key stakeholders from all
sectors by placing the elderly in the center and radiating out through all strata of public and
private services and relationships.
Challenge Excerpt 77

The coming of this ‘Silver Wave’ is coincident with

broader structural changes occurring globally. Post-war
welfare institutions are subject to additional stresses as they
confront unfamiliar conditions such as expanding markets
and competition, increasing diversity and fluidity, and new
understandings of citizenship, participation and social rela-
tionships. Welfare systems will have to evolve along with the
constituencies that they serve if both are to continue grace-
fully into the twenty-first century.
The Nordic welfare model has garnered attention because
of its manifold successes. Tight integration into social fabrics
and deep penetration into economic foundations make the
Nordic model unique among welfare systems. But it is unclear
if such a structured, embedded model is flexible enough to
accommodate the onset of these structural challenges.
Models that prove too rigid or brittle will
likely fail under mounting pressures. An agile ‘Old age’ can be described in a
response will require that the ‘how’ be as flexible multitude of ways: although a
as the ‘who’ is diverse and numerous. The basic
terms of the discussion remain open for defini-
biological definition may be the
tion. For instance, ‘old age’ can be described in a easiest to evaluate, it can also be
multitude of ways: although a biological defini- limiting.
tion may be the easiest to evaluate, it can also be
limiting.
Providing adequate care for the elderly, while also pre-
serving their dignity, will be one of the pressing challenges
for existing welfare systems. Handling the ageing challenge
will yield broader insights for understanding how society at
large cares for itself. Harnessing the untapped potential of
the elderly as a value-producing segment of society, rethink-
ing societal and institutional roles and responsibilities, and
devising new ways to measure progress and set targets consti-
tute key areas for future development.
This Studio was designed to recast ageing as an opportu-
nity rather than as a problem. In doing so, changing the very
understanding of ‘elderly’ is one important step towards a
This excerpt is taken from the Ageing Studio
deep conversation about the future of our welfare systems Challenge Briefing which is reprinted in the
and the population they support. appendix. > P273 for more.
78 Ageing Studio

Onny Eikhaug
Programme Leader, Design for
Inderpaul Johar All, Norwegian Design Council

Co-founder, Zero-Zero Architec-

Emily Thomas ture Research
London
Founding Director, Aequitas
Dr. Marianne Guldbrandsen Consulting

Chief Designer, Design Council London

London

Hannele Seeck
Adjunct Professor,
University of Helsinki
Alberto Holly
Professor Emeritus,
University of Lausanne

Petri Lehto
Ministry of Employment and
the Economy,
Helsinki
Team 79

Dr. John Ruark

Adjunct Clinical Associate
Professor of Psychiatry,
Stanford University

Ageing Studio:
Assistants

Annikki Herranen Cristina Bianchi Anna-Leena Vasamo

(HDL Research Team Coor- Masters student in Industrial & Masters student in Economics
dinator) BSc International Strategic Design, Aalto Univer- and Business Administration,
Relations, London School sity School of Art & Design Turku School of Economics
of Economics and Political
Science
80 Ageing Studio

Monday, June 7 Tuesday, June 8 Wednesday, June 9

Diving In Field Visits in Jyväskylä Starting to Sketch

8:00 Kick off break- 8:00 Jyväskylä Ilkka Halinen, 09:00 Day begins
fast City Planning City Architect
office and Anne
8:30 Welcome and Marco Stein- Sandelin, Town
"what does berg planner
success look
like?" 9.35 Visiting Kati Kallimo, 10:00 Chat with a
Sammonkoti, Head of Ser- group of Hel-
10:00 Introduc- Studio team sheltered vices sinki seniors
tions and first home
impressions
9.45 Sammonkoti Essi
11:00 Overview of Pekka Ylä- planning Heimovaara-
Finland's mac- Anttila, ETLA, and building Kotonen, Proj-
roeconomic The Research project ect manager
and historical Institute of
development the Finnish 10.15 Tour and
Economy meeting with
residents

12:00 Lunch in 11:00 Lunch and Pekka 12:30 Lunch Discus- Riitta Aejme-
studio discussion: Utriainen, sion laeus, Head
Delivering Deputy Mayor Physician at
13:00 Overview of Katju Holkeri, integrated and Sirkka Helsinki City
Finnish deci- Head of Unit care Keikkala, Social Service
sion making at Ministry Chief Medical Department
of Finance, Officer, Central
Ministry of Hospital
Finance

14:25 Coffee break 14:05 Flight to

Helsinki
14:30 Reflections Vappu Taipale,
retired Minis-
ter of Social
Welfare at the
Ministry of
Social Affairs
and Health

16:00 Day ends w/ 16:00 Day ends w/

pin-up pin-up

17.00 Working Studio team 19.30 Working Studio team 19:00 Special Dinner Studio team
Dinner with HDL Dinner with HDL hosts with HDL
hosts hosts

20.15 Flight to
Jyväskylä
Schedule 81

Thursday, June 10 Friday, June 11

Pulling things together Sharing

09:00 Day begins 9:00 Internal review Studio team and HDL Hosts

10:30 Elderly social Olli Valtonen,

issues Executive
Director, Hel-
sinki Missio

12:00 Lunch in 12:00 Lunch in

studio studio

16:00 Studio review Paula Kokonen, Deputy

Mayor, City of Helsinki

Juha Kostiainen, Director,

Public Administration
Management Development
Programme, Sitra

Tapio Anttila,Vice Presi-

dent, Sitra
16:00 Day ends w/
pin-up Pekka Timonen, Executive
Director, WDC 2012 Helsinki
16:30 Cocktail
hour with Timo Vierelä, Planner, City
Sitra Public of Helsinki, Department of
Leadership and Social Services
Management
Programme Aleksi Neuvonen,
and their Researcher, DEMOS
guests Helsinki

19:30 Dinner Studio team 18:30 Closing Dinner

with HDL
hosts
82 Ageing Studio

Outcomes
Summary
The profile of the coming generation of the aged in Finland
will differ significantly from its predecessors. As a conse-
quence of both accumulated wealth and an increased life
expectancy, the retiring Baby Boomers will represent a size-
able concentration of individuals with high levels of time,
health, money and wisdom. As a group, they look forward to
the freedom and independence of their post-retirement lives.
Against this backdrop, the Studio set out to articulate a new
understanding of the ageing population based on three core
tenets.

1. New Wealth and New Health

Measured by net wealth, 55–64 year-olds are the wealthi-
est age group in Finland. In 2004, their net wealth was
approximately 1.5 times higher than the national average.
The Studio team saw this as a great opportunity for society:
the Baby Boomers will have the time and resources not only
to demand new categories of products and services, but also
to invest in and advise new businesses launched by younger
generations, extending the active stages of their life and eco-
nomic participation.
2. New Social Contract
Present-day professional culture pushes individuals to
maximize productivity, often at the cost of their personal
lives. This inhibits employees’ ability to form social networks
outside of work. This general underdevelopment of personal
economies in society has far-reaching implications in terms
of low levels of entrepreneurship and activism in Finland,
whether as hobbies or volunteer work. Through interviews
with retired citizens, the Studio team found a need to ignite
deeper desire to contribute to society beyond professional
roles. Thus, the need for a new social contract emphasizing
individuals’ participation in, and contribution to, society
became evident.
3. Systemic, Institutional Innovation
Finland is an institutionally led culture with a strong
public sector. Recognizing this, the Studio set out to sketch
new solutions that would respect the role of institutions and
support innovation at their core, while opening them up for
greater engagement with society. Systemic, institutional inno-
vation is needed beyond current ‘problem/solution’ service
innovation and optimization.
Outcomes Summary 83

Whole-life Solutionscape The studio worked across

all life stages to develop an
architecture of solutions that
Based on this framework, the Studio proposed a set of ten focuses on strengthening inter-
‘hunches’ that constitute areas of opportunity which together offer generational relationships.
a strategic impact. Importantly, these ideas span from birth to
death and are not bracketed by typical ‘elder’ timelines.

They are presented here in a highly abbreviated format:

— Grey Gold: The elderly have massive investment and pur-

chasing power; how might it be put to use to strengthen
intergenerational ties and boost the economy?
— Eliminate formal retirement age: Allow individuals to
choose when and at what rate they step out of working life.
— Develop a new social contract through a nation-wide co-
creation event.
— Create an interdepartmental minister of Ageing & Volun-
teerism.
— Establish a National Wisdom Bank to enable informal
knowledge transfer.
— Welfare to Co-care: Registered Nurses, advanced ICT, and
other means to enable less rigid care structures that focus on
active engagement.
— Mandate that co-creation be at the heart of new service
development.
— Emphasize the importance of lifetime exercise.
— Honour Volunteering: To expand volunteerism in Finland,
put it in the spotlight.
— Consider transitioning away from a traditional pension
system towards a 40-year trust to encourage life-stage flex-
ibility.
84 Chapter
Subsection 85
86 Chapter

A typical day in studio

The HDL Studio Model 87

Strategic design as it is discussed in this book is a way

of working that informs both thinking and doing. At
Sitra our interest is in using strategic design in service
to society, particularly as a capability of 21st century
governments looking to increase their agility in the
face of potentially transformative challenges. Helsinki
Design Lab is Sitra’s learning engine for the methods
of strategic design, and HDL’s first concrete output is
the Studio Model. It is a specific process that benefits
from the attitude, approach and abilities of strategic
design. The following How-To sections attempt to
describe the Studio in a way that makes it easy for you
to adjust the model to your own needs and context.
We hope it to be a flexible recipe.

The way that you organize a Studio will be shaped by the

realities of your own organization and the resources available
to you for this process. To make the best use of the follow-
ing chapters, take a minute to think about what resources
are available to you, how you might use them and how this
relates to your aims for the Studio. At Sitra we are lucky to
have access to stable funding, a wide network and a brand
that helps us to connect with new people and organizations.
We think of this funding, network and reputation as the
key assets that enabled us to organize the HDL Studios in
2010. Your organization will have a different balance of these
assets, which will naturally entail adjustments to the rules of
thumb summarized below.
Having realistic expectations at the outset is essential.
Success will look different based on the nature of your
investment in the Studio in terms of time, effort and money.
Given enough time to prepare and a reasonable budget, you
can identify the right team, generate foresight and chart a
course of action to deliver strategic improvement. The Studio
is designed to deliver outcomes, but the experience itself is
also capable of creating transformational learning oppor-
tunities on an individual level. When funding is limited or
the preparatory timeline curtailed, the Studio is more likely
88 Chapter

Presentation mode for the Final Review.

Discussion mode after the Final Review.

The HDL Studio Model 89

to be weighted towards creating an enhanced awareness of

the approach while still providing a glimmer of the redesign
potential, therefore preparing the ground for future efforts.
We put the model's flexibility to the test during our own
Studio at the Umeå Institute of Design1 in January 2011, which 1—Situated in the northern Swedish city of
was conducted under much different conditions than the Umeå, the Institute has become recognized as
a leading design academy in the Nordic region.
Studios we ran in Helsinki during 2010. With a budget of only Sitra/HDL were pleased to be part of a week-
€100, few established connections to Umeå and the province long experiment called ‘Prototyping the Future’
of Västerbotten, a pre-determined group of students as the that tested out new curricular areas, including
strategic design.
Studio team, and limited time to prepare, we made big adjust-
ments to the details without abandoning the core relation-
ships—of people, process, problem and place*—that make
the model work. We still made sure to frame the challenge
*
carefully, adjusted the process to suit the situation, moved People
some furniture around to make our space more congenial,
and lucked out with a team that had an inbuilt spirit of col-
Process
laboration from the start. Within these parameters we relied Problem
on our limited network and the strength of the Studio Model
to help us deliver something useful at the end of the week. A
Place
heightened awareness to the possibility of strategic redesign
amongst the students and their audience of local government
stakeholders was the main outcome of this Studio, and this
is an important first step towards creating the possibility of
systemic transformation.
Through exhilarating—and occasionally brutal—trial
and error we have learned some rules of thumb. Successful
application of the Studio Model requires the right people, a
flexible process, a carefully defined problem, and a place that
is conducive to collaboration— all applied with an open-
minded spirit.
90 Chapter
Subsection 91

Your Role P
Much of the power of the Studio outcomes derives from the
e
fact that the Studio team is free to recommend whatever they o
feel is the most appropriate response to the challenge. For this
reason the Studio team should be as independent as possible
p
so that their recommendations are truly their own. Although l
you can play an active role in the Studio team, and in some
cases this may be important, in our own HDL Studios we
e
decided from the start that Sitra's role would be supportive Process
rather than actively participative. However, just because you
are not part of the Studio team does not mean that you are
Problem
absent. Place
As the host of the Studio, there is plenty for you to do. The
Studio team will be in a state of awe-inspiring frenzy most of
the week, so your role is to stay two steps ahead and attend
to any details that need attention. Your number one goal is
to ensure that nothing breaks the Studio’s momentum. In
practical terms this means everything from monitoring the
temperature of the room and discretely opening a window
when it gets too stuffy, to making quick introductions when
guest speakers arrive, being available to counsel the team
when they hit a roadblock, and having the time to handle
other needs as they come up.
You are likely to be called in as a sounding board as the
Studio team works through the ever-multiplying issues at
play. When this happens, your informed neutrality will be
a key asset. Try to help the Studio determine what is most
relevant without imposing your own point of view.
By playing a supportive role you also gain the freedom
to focus on the relationship between the Studio team and
your own organization. Take the opportunity, for instance,
to build connections between the Studio team members and
relevant parts of your organization who could benefit from
their involvement at a later date, or invite your co-workers to
drop by the Studio and see for themselves strategic design in
action. Also ensure that you are orchestrating the ongoing
documentation of the Studio.
Most importantly, you are there to keep track of the
overall aim and goals of the Studio as it relates to a larger arc
of work. How does the Studio as a self-contained engagement
fit into the big picture of your project or programme to help
your organization meet its objectives?
92 Chapter
Subsection 93

Selecting a Challenge People

The richness of the topic that you choose for the Studio is
Process
an essential part of determining the Studio’s likelihood of P
generating something useful by the end of the week. A good
topic is neither too small in scale, nor too grand. It is relevant
r
to you, the talent you hope to attract and your organization’s o
networks. Of these factors the question of scale is the hardest
to determine, and in some ways the most important.
b
Topics that balance scale well take a big, general theme l
and connect it to a focused, specific entry point, allowing
this connection to be traversed back and forth by the Studio
e
team. This is why all of our challenge briefings have a title m
and subtitle, as you will discover in the next How-To. Your
Studio will benefit from being able to work between scales,
Place
exploring the thematic issue through specific examples, and
testing the relevance of specific possible solutions against the
broader concerns of the big picture. Selecting something as
broad as ‘ageing’ as a Studio topic, for instance, requires that
the team spend an undue part of their week trying to define
the term and what it includes. Conversely, something as nar-
row as ‘cutting costs in the system of home visits to bedrid-
den elderly citizens’ is so specific that it may not really be a
strategic issue.

Use these four criteria to select a theme and its specific

entry point.

1 Is it important to your orga- Our mandate is to improve

nization? Finland’s international com-
petitiveness, so we looked
for topic that matter to the
future of Finland

2 Is it relevant outside your To be able to attract world-

immediate sphere? class talent we need a
problem that talent all over
the world cares about and
are working on

3 Can you build a network A quick reality check of

around the issue? how much effort would be
required to discover and
engage stakeholders for
research, lectures, Studio
members etc.

4 Is it a focused topic with big Avoid problems which are

picture implications? either too specific or too
broad
94 The HDL Studio Model

Criterion #1: Importance

Ideally the topic you select will be relevant to your entire
organization, not just your team. Topics which matter to
others in your organization will make it easier for you to lean
on the full resources available to you in-house. This generally
makes your life easier!

Criterion #2: Relevance

On a conceptual level, thinking about who the topic mat-
ters to is a way to test the broadness of your topic, and on a
more practical level it impacts your ability to recruit Studio
members. In line with Sitra’s mission we selected Finland as
our sphere and looked for topics that were simultaneously
relevant to Finland and the world, even if Finland’s interests
in the themes are unique. For instance, although the forestry
industry is fundamentally important to Finland, it is a theme
with more narrow appeal outside this country and it would
be harder to develop a diverse international team. You will
want Studio members from outside your immediate sphere
because they are best able to see the things that insiders are
blind to by habit, but unless the Studio topic is relevant to
these people you will have a hard time recruiting them.

Criterion #3: Networkability

Assessing your ability to build a network around the topic
is a way of thinking about how much of an uphill battle it
will be to prepare for the Studio. If you do not already have
a strong network of stakeholders, or access to one, you can
expect to spend significantly longer establishing these con-
nections in your brief writing and Studio planning activities.
This will naturally extend the timeline of that work and, in
some cases, may prove to be insurmountable. In our experi-
ence with the HDL Ageing Studio, the necessity of building
a network from scratch increased the ramp-up time for the
Studio by a factor of about 1.5 as we acquired a basic under-
standing of the important issues sufficient enough to identify
relevant stakeholders and build relationships with them.

Criterion #4: Scale

Rich topics occupy a sweet spot between being too broad
or too specific. Whereas criteria 1-3 are primarily useful in
determining how difficult your task will be as the organizer
of a Studio, criterion 4 affects the outcomes. Topics which
satisfy criterion 4 have a richness that results from their
balanced scale. For example, new concepts for low-energy
building are certainly relevant to Finland and many other
Selecting a Challenge 95

places, and Sitra has a strong network of expertise around this topic,
but it’s already a well-defined problem space that does not benefit much
from the strategic rethinking that a Studio is designed to generate. On
the other hand, situating energy usage issues alongside transportation,
consumer behaviour, food, energy production and the other aspects which
would make up a national sustainability policy for the built environment
certainly does yield a problem space which is not only broad but also cur-
rently ill-defined. That’s a rich challenge.

However, it is also possible to be too broad, which decreases the effec-

tiveness of a Studio as the participants spend too much time grappling
with the boundaries of the challenge. In the example above, ‘Sustain-
ability’ is such a contentious word that it is interpreted differently by just
about everyone. To give the Studio an anchor to their conversation we
asked them to consider “carbon neutrality in the built environment.” This
bracketed the challenge by specifying the lens through which we wanted
to consider sustainability (based on the best current knowledge of Sitra)
and limiting the effort to the built environment (based on the importance
of this aspect and the strength of our network in that area through the
Low2No experience).
You will want to avoid topics which cannot stand on their own
because they are too abstract. While we were deciding on the HDL Studio
topics in 2010 the theme of ‘measuring’ and especially how to measure
ambiguous conditions kept coming up. There is some interesting work
to be done around how we measure and evaluate effort in any number
of areas—from the economy to school performance—but on its own
‘measuring’ is too vague to motivate coherent discussion without requir-
ing the participants to develop some applications to test the ideas, which
would eat up precious time during the week. Good Studio topics ask the
participants to respond to a specific problem couched within a big picture
challenge.
While much of the work in the Studio will focus on developing a
strategic framework that addresses the big picture (‘carbon neutrality’),
the role of the specific problem (‘built environment’) is not to be under-
estimated. It will act as a synecdoche, or stand in, that can be used to test
ideas and ultimately enable decision making among the Studio team. To
continue the example, strategies for achieving carbon neutrality can be
pre-tested by considering how they might impact the built environment.
Similarly, ideas about how to achieve a carbon-neutral built environment
may be tested ‘upstream’ against the broader goal of ‘national carbon
neutrality’ which will include aspects such as the energy use of industry,
matters of employment, and cultural factors which are not part of the
typical definition of ‘built environment.’
96 Chapter
Subsection 97

Writing the People

Challenge Briefing Process
The challenge briefing is a document that specifies the Studio
P
challenge in greater detail. As the first step in the Studio’s r
immersion into the problem and the culture it is situated
within, the challenge briefing should be indicative rather
o
than exhaustive, and it takes a position in order to bring b
focus rather than to persuade. With team members coming to
the Studio from different perspectives, and probably different
l
geographical or cultural contexts, the briefing also plays a e
role as a common touchstone or integrator.
m
Contents Place
A good briefing document frames an opportunity,
describes the current reality and identifies a number of
dimensions relevant to the challenge. These parts of the docu-
ment represent a gradation of objectivity from a framing that
is mostly provocative to the dimensions which are mostly
objective. You might want to think of the challenge brief-
ing as honing the Studio topic into a sharp but brittle form:
it must be focused and clear, but not so strong as to be too
hard for the Studio to crack into. This ‘brittle’ starting point
enables the Studio team to move more quickly because they
immediately have something to react to. If the briefing is too
objective, it will not function in this way and there is a risk
of spending too much of the Studio week simply trying to
develop a consensus on the semantics of the topic.
The brief should cover three areas: an opportunity space
that issues the challenge, background to put it into context,
and key dimensions that dive into a handful of relevant facets
of the challenge.
Writing the Opportunity Space is likely to prove the
most demanding, as it must take the challenge of the Studio
and translate it into positive opportunities at the global and
local scales. In the case of our HDL Studios in 2010 this
meant framing the challenge as a globally relevant issue with
specific opportunities in Finland. This section unpacks the
factors that contributed to the selection of the Studio theme
and clarifies the relevance of the specific entry point. The
opportunity space asks: what do we have to lose as the result
of inaction and what do we have to gain1 through strategic 1—This formulation is borrowed from Alejan-
redesign? dro Aravena, Design Lead of our 2010 studio on
sustainability.
98 The HDL Studio Model

The Studio also has to understand the current reality

in the local context, especially the things which potentially
re-enforce the status quo or prevent its transformation, which
is the content of the background section. In addition to pro-
viding an executive summary of the key dimensions which
come in the following section, the background illuminates
the urgency of action on the Studio theme. In other words,
it must answer the questions ‘why this theme’ and ‘why is it
important right now?’
During the course of researching the Studio topic, a pool
of themes is likely to show up again and again. We call these
the key dimensions of a problem and the challenge briefing
includes overviews of 5-7 of the most important dimensions.
Likely dimensions include such things as the historical evolu-
tion of the system in question; a survey of current actors,
organizations, or systems; examples of other transformation
attempts; cultural factors; or a focused look at one facet of the
* issue*. Selecting dimensions will require the writer to make
Examples from the Challenge a best guess about what might be relevant to the Studio as
Briefings:
—Evolution of the Welfare
they develop an architecture of solutions. Rest assured that
System > P304 regardless of what dimensions are selected, the Studio team
—Today's Education will always seek further inputs.
System > P152
—Government Initiatives and
Reforms in Care for the Style
Elderly > P300 A good briefing is more akin to investigative journalism
—Cultural Drivers in Sustain-
ability > P249
than a peer-reviewed journal contribution. It should be suc-
—Energy: Policy, Consumption, cinct, accessible and written in an open-ended manner that
Supply > P235 invites the reader to question the text. In order to maintain
a big picture perspective on the theme, it can be helpful for
the writer to not be an expert on the topic (they will be by the
time they finish!) or if the document is written collaboratively
by a team. As a working document, it’s more important to
have a well-structured challenge briefing than a narrative that
flows smoothly from beginning to end.

Format and Delivery

A briefing can only function as the common platform of
understanding amongst the Studio team if everyone has read
it before the Studio begins. This implicates both the format-
ting and the timeline for its delivery. Ideally the Studio team
members do not just read the document but interrogate it,
rip it apart (often physically) and reformulate it. Think about
the ways in which page margins, paper stock and the binding
encourage or inhibit interactions such as marking up the
challenge briefing with notes in the margins.
Writing the Challenge Briefing 99

Consider delivering an electronic copy of the briefing a month before the Studio
and a printed copy about a week before. We prefer to design the challenge briefing as a
small booklet that could easily be slipped into any bag and read in an hour or less. As
we hoped, most of our Studio teams read it on their respective journeys to Helsinki.

The Briefest Brief

Any briefing document delivered in advance of the Studio week is useful, even if it
is not as complete as what is described here. The briefest of briefings would include a
one-page opportunity space, a couple of pages on background, and a bullet point list of
key dimensions for the Studio to investigate on their own.

Let the Studio Tear Down and Rebuild

While it’s worth the time and anguish to make sure you select a viable topic and
compile a thorough challenge briefing, do not be surprised when the Studio rejects or
alters your framing of the challenge. This happens in all of our studios and the discus-
sions is richer because of it. Even though it can be difficult to watch months of hard-
fought effort be re-arranged or downplayed in the span of a week, this is after all the
purpose of inviting a group of experts to give their unvarnished advice. The Studio’s
revision to your statement of the challenge is testament to the seriousness with which
the Studio has taken on the work, the importance of the chosen Studio topic and the
success of the Challenge Briefing in enabling them to have a single discussion.

Section Aim Tone Pages

Opportunity Macro Situate the challenge within Provocative > Objective 1

Space its macro context

Local Create urgency within the Provocative > Objective 1-2

local context

Background State of the Raise questions about the Provocative = Objective 1-4
State status quo

Dimensions Dimensions of Briefly describe key aspects Provocative < Objective 5-50
the problem of the challenge in facts and
figures

Future Scenar- Provide loose estimates of Provocative > Objective 2-4

ios (optional) basic facts about the local
context / Index macro trends
that may impact the challenge

Bibliography Point to further sources of As needed

information

End notes Includes information about 1-2

the host organization and the
role of the Studio and what
happens next
100 Chapter
Subsection 101

Building a Team P
At one point during the first HDL Studio a member of the
e
team pulled us aside and remarked that they felt like they o
were participating in an Agatha Christie novel: a group of
people pulled together out of thin air—why are they here and
p
what will they do now? The reason Studio teams are assem- l
bled on a per-Studio basis is that challenges have diverse
needs and top talents that can address those various aspects
e
seldom exist as a pre-built team. Whether you are recruiting Process
within your organization or outside it, let these criteria be
your guide.
Problem
Place
The Right Mix
A good team is balanced along the axes of age, gender,
geographical origin and domains of expertise. Seeking such
a balance will naturally push you to expand the size of the
team, but our experience confirms that 8-10 people is the best
size for this kind of work. Anything smaller and it will limit
the balance of the group, any larger and it will be hard to hold
a single conversation. Of these eight, two should be strategic
designers—one who takes the role of Design Lead and the
other as a second opinion.

The Right Expertise

While the challenge briefing is under development you
will begin to understand which issues are relevant to the
challenge and in what proportion. Parallel with researching
and writing our own challenge briefings we create expertise
profiles for each Studio. These are running lists that identify
what we consider to be key perspectives for each Studio topic,
which then allow us to target specific skill-sets and experi-
ence profiles. As you prepare, it is a good idea to keep this list
posted in a public place and regularly review its contents to
ensure that it represents the current state of your knowledge
of the challenge.
For instance, in the Studio on Sustainability we knew
that building physics, transit and policy would be key areas.
These were quite predictable before we even started. We also
sought some perspectives that might at first be unexpected.
The thought behind this is simple: if you only include the
regular suspects you will only get regular results. By the same
token, the notion of an ‘X-factor’ can go too far. For instance,
although juggling is certainly an unexpected perspective for a
102 The HDL Studio Model

conversation about sustainability, it is probably not the most

relevant. The X-factor works best with someone who has a
demonstrated commitment to the Studio theme even if their
everyday work does not overlap with it 100%. One’s expertise
often stretches beyond the words on their business card.

The Right People

Individuals are multifaceted and play many roles in their
lives. The totality of an individual’s experience and identity
should be considered when building the team. It might be dif-
ficult to balance factors such as age and gender while looking
for individuals with a particular expertise, but the results of
doing so are worth the effort. It is also worth underscoring
the importance of including one or two younger members
on the team. Beyond adding a youthful energy, including
upcoming leaders in the Studio is an investment in the future
of society’s ability to think holistically.
Having team members who come from different cultural
backgrounds and generations builds a useful edge of igno-
rance into the team. Being an outsider can be helpful because
it gives an individual the freedom to see the peculiarities of
the situation and ask questions that members of the culture
or generation under consideration are blind to.

The Right Attitude

While one might be able to judge an individual's expertise
by browsing a CV and reading some of their publications, it
is very difficult to assess whether an individual will work well
as part of a team until you share a conversation. Meeting in
person is always preferred, but a phone call is a good start, or
a recommendation from a trusted friend.
One useful indicator of an individual’s ability to function
well in a Studio is significant experience in other cultures,
whether geographical or professional. Given a choice between
an expert in astrophysics and an expert in astrophysics with
a previous background in agriculture, our bet is on the latter.
There is something about having lived or worked in multiple
cultures and contexts that prepares an individual for the kind
of lateral thinking that is required in an HDL Studio.
Building a Team 103

Design Lead
Being a leader means knowing when to listen and when to
ask for help, and being able to break deadlocks by making a
confident decision. We recruit strategic designers who exhibit
these qualities and are comfortable working in a subject area
on which they do not necessarily possess any specific exper-
tise. The Design Lead’s job is to keep the Studio focused and
moving. In some cases this includes stepping in to make deci-
sions when differing opinions amongst the Studio team are
inhibiting the synthetic process. In this manner, the Design
Lead role is more active than that of a facilitator.
In contrast to a facilitator, the designers are part of the
team rather than outside of it. They are expected to bring
their expertise and experience to the table by actively contrib-
uting like everyone else. This includes guiding the synthesis
process as well as being able to comment on the cultural and
social consequences of material decisions.
The background of these individuals will be varied and
there is no particular field of design that is more likely to
attract those who exhibit the qualities we have mentioned
here. Currently, even the world's best design schools are not
yet educating designers specifically for this kind of work.
Broadly speaking, the best designers for this role will
have the ability to conceive of and critique systems, a deep
understanding of material culture, and be able to respectfully
lead the conversation during the week.

Incentives
Depending on who you recruit for the Studio, the ques-
tion of incentives is likely to come up. Although we paid
the participants in our 2010 Studios and believe that it is an
essential part of respecting the time of your Studio members,
you are likely to find that the opportunity to approach issues
from a new angle and to experience a new way of working is
itself very attractive when offered to the right individuals.
104 The HDL Studio Model

Rules of Thumb

Here are some rules of thumb that we used when think-

ing about the mix of the team and how to select the right
individuals:

Keep it Small
With too few people there is a danger that the conversa-
tion will not be robust enough, but with too many people in
the room it is difficult to have a single conversation. Based on
experience, a team of eight is optimal. Some things work in
large groups, but strategy sessions are not one of them. Eight
is also small enough for you to fit into a small minibus for site
visits and although this seems like a small thing, the logistics
required to smoothly pull off an HDL Studio are not to be
underestimated.

Avoid Duplicates
The Studio team will be working quickly, which means
that the collective expertise and experience in the room is the
team's largest asset. Although team members may have some
overlaps in their interests, it is best if each member is the
master of their own domain and can offer serious, focused
expertise in their field. Each member becomes a ‘represen-
tative’ of their expertise and there is not much room for
redundancy.

Look for the Best

When it comes to selecting individuals, start at the top of
the field. High-quality input may not quite guarantee high-
quality output, but it is certainly a prerequisite and a decent
indicator. Recruiting talented participants will not only help
you attract other high-quality people, but it will also raise the
profile of the Studio, smoothing engagement with stakehold-
ers and making outputs more likely to ‘stick’.
Building a Team 105

Consider the Whole Person

It makes no difference whether someone is the top expert
on the planet on subject XYZ unless they are able to relate to
others and convey their ideas in an open, productive manner.
For this reason, look for people who are at the top of their
field, know their material inside and out, but are also naturally
curious about the world around them and are able to sociably
entertain models that conflict with—or even contradict—their
own.

Be (a bit) Local
One of the great strengths of the HDL Studio format is
that it offers a very fast and focused infusion of outsiders who
are empowered by their ignorance of the local culture to touch
taboos. To take advantage of this we set a rule of thumb for
ourselves that two of the Studio members would be locals so
there would always be ‘cultural ambassadors’ in the core team.

Design is the Glue

The pair of strategic designers work as synthesizers
amongst a group of peers. It is their job to ensure that the
conversation is balanced and holistic. When recruiting the
two designers for each Studio we look for one highly-seasoned
professional for the Design Lead role alongside one who is
closer to the beginning of their career so as to also make our
recruiting an investment in future design capability.
106 Chapter
Subsection 107

Organizing a Week People

The flip side of assembling a talented group of people is that
P
they tend to be incredibly busy, meaning that you will be r
lucky to get a solid week of their time. A week is just barely
enough time to properly conduct a Studio. Setting aside a five
o
days for an engagement like this might seem like a luxury, but c
it is actually a fundamental requirement. While it is certainly
possible to apply the Studio methodology over a longer period
e
of time (academic architecture and design studios usually last s
a couple months), every hour you shave off a full week will
impact the outcomes. The accelerated schedule ensures that
s
a mood of urgency keeps things moving. Remember, this is a Problem
sketch of the problem and an attempt to find ways of address-
ing it—the outcomes of the Studio are meant to be a solid
Place
starting point for what comes afterwards.
In this short window of time, the Studio members have
to meet and get to know each other, acclimatise to your local
culture and context, and soak up the specifics of the Stu-
dio challenge. They also need some time to work together
towards developing a holistic, integrated framework for
thinking about the challenge and then document it in a way
that will spur conversation at the final review. With only a
week to accomplish all of this, you will have to make every
minute count.

Day by Day
We structure the first half of the week so that the Studio
team has some time to develop their own rhythm without
spinning their wheels, but leave the second half fuzzy with
the understanding that the final review on Friday is a fixed
target.

Sunday Monday Tuesday Wednesday Thursday Friday

Introduction: Field trip Guest speaker Pre-review with

what does suc- x 2-3 as ‘sparring HDL team
cess look like? partner’ for
studio Tweaks to
Guest speaker presentation and
w/ conversation final production
Time to be used
x3 as needed by the
Welcome: studio, guided by “Final review”
quick, social, Design Lead Studio presents
and casual outcomes…

Days officially end at 4pm Conversation

Group dinners organized each night & meal

108 The HDL Studio Model

Sunday: Monday:
Settling In Getting to Know the System

If possible, gather the To help put the team at

team for a casual, quick meal ease, start off with a session
to welcome everyone and give discussing ‘what success looks
them a chance to get to know like’. This and introductions
one another. In our case we had easily take up the morning of
people flying in from overseas, Monday. To give the personal
so this get-together was an early introductions a bit of structure
dinner that ended with plenty we ask each person to share a
of time for everyone to catch up question that they have after
on sleep before the busy week. reading the challenge briefing.
If it’s not possible to do this Monday morning is also the
immediately before the Studio, right time for the Design Lead
try to find another opportunity of the Studio to share with
for the team to meet socially as everyone some thoughts about
far as one month in advance of how they want to handle the
the Studio week. design process during the next
five days. The point of this chat
is to give the team some reas-
surance that although it might
feel quite chaotic at times, there
is a logic to the madness.
Organizing a Week 109

Tuesday: Wednesday:
Seeing the Reality Beginning to Sketch
on the Ground

Monday afternoon ramps With some sense of how Wednesday is when the
up with a series of lectures things are supposed to work— Studio has the first real oppor-
intended to give the Studio a as conveyed by the top-down tunity to begin synthesizing
solid overview of the context viewpoints of Monday—Tues- their experiences, findings and
that they are working in. This day is about getting out of the expertise. The only thing we
is conveyed through a series Studio to see the first-hand schedule for Wednesday is a late
of three or four thirty-minute realities in two or three visits. lunch with the hosts (us) to give
lectures, each followed by a It will be tempting to cram the the team an opportunity to get
discussion period of about day with more, but remember feedback on the way that their
an hour. For example, the that it’s better to have time for hypotheses are developing.
education Studio had speakers proper discussion at each visit Before and after lunch the team
talk about the socioeconomic than it is to breeze through. is likely to be spending lots of
development of Finland, Finn- To continue using the edu- time scribbling things on the
ish bureaucracy, classroom cation Studio as an example, whiteboard, erasing them and
education, teacher education this included visits to a primary looking puzzled.
and policing and prevention and secondary school offering Even though it is early in
related to at-risk youth, which participants the opportunity to the week, we encourage our
are all-important aspects when talk to administrators, teachers Studio teams to formulate a
thinking about addressing the and students, as well as see the working theory or proposition.
dropout rates in Finland. The premises and observe active This is not intended to be final
best speakers are ones who can classrooms. Later in the day or comprehensive, but it should
talk with the Studio rather than they visited a youth culture help the participants begin to
at them, so be sure to spend NGO. organize their thoughts while
the time to properly vet your Tuesday ends with a down- reinforcing the need for ideas
speakers. load session back in the Studio to be concise in preparation for
By the end of Monday the where everyone shares their Friday’s presentation. We have
team’s heads will be spinning, insights from the day and the often found ourselves saying to
so it is important to give them group begins to assess emerging the Studio, “Imagine you had to
time to digest. We end Monday themes and questions. This is present in an hour, what would
with a lightning quick sum- where the Studio assistants start you say?”
marizing discussion just to get to become crucial: their role is
some ideas on the whiteboard to field questions that come up
and then head out for a team during this session. More on
dinner where discussion can the role of the assistants in the
continue in a less formal set- Soft Infrastructure How-To*.
ting.

*—See also:
> P127
110 The HDL Studio Model

Thursday: Friday:
Pulling Things Together Sharing

By Wednesday, the back Continuing the intense syn- If at all possible it is best to
office will be buzzing with thesis development that began have the final review session
activity, attempting to arrange the day before, Thursday is near the end of Friday. This
meetings and researching the probably hectic in the morning, gives the team an extra bit of
Studio’s questions from the reaching the point of maximum time to tune and represent their
previous days. The Studio is chaos just before lunch. By that ideas—which they will be very
probably requesting meetings point the looming deadline is thankful for. Friday morning
with additional stakeholders about 24 hours away and there is a good time to re-assess the
or wishing to spend additional is likely to be palpable appre- work from Thursday and make
time with people they met on hension in the room. This is a any last-minute changes. As
Monday or Tuesday. This is a moment that the Design Lead the host of the Studio, you can
good time to take an inventory should be prepared for, as they gently provoke this by ask-
and set to work arranging these might have to do some heavy ing the Studio to present an
visits or meetings for the fol- lifting to translate between abbreviated ‘dry run’ of their
lowing afternoon. various points of view and help presentation first thing in the
the team organise their ideas morning.
into one thesis. As quickly as possible, the
Thursday afternoon is a team needs to transition to pro-
good time for the group to ducing the documentation of
divide and conquer. Once the their ideas and doing whatever
big picture is starting to gel, the preparations they need to be
teams often split into smaller able to present them articu-
groups of two and focus on lately. This is a time for the
specific hunches or concepts Design Lead to help the group
which later feed back into the divvy up presentation respon-
single group presentation. For sibilities and orchestrate the
this reason, the end of Thursday presentation in a way that does
can be the quietest point in the not lose the richness of the syn-
Studio as the team members are thetic framework. In a practical
deep in flow. sense this includes deciding
Your role as host is to who will present the different
remind the Studio that they are aspects of the synthesis, putting
human. Ask if people want cof- together a narrative arc, indi-
fee, remind them that there is viduals producing diagrams
an outside and it can be lovely or data visualisations with the
to go for a short walk, and help of the Studio assistants,
ignore any claims by the Studio and each person spending some
that they are not hungry. Order time to collect their thoughts.
in lunch, set it in the corner of
the Studio space, and watch the
sandwiches disappear.
Organizing a Week 111

About one hour before the final-review guests are set to

arrive you will want to begin cleaning up the Studio space. Be
careful not to erase all the traces of intense work throughout
the week, but removing stray coffee cups and hanging up
coats and bags is a nice way to make the room more present-
able. This activity also sends an important signal to the team
that they need to wrap it up soon.
Next is the final review, a particular kind of discussion
between the Studio and your invited stakeholders. Because
designing this engagement is a task in and of itself, the Final *—See also: The Final Review
Review has its own How-To* which follows. > P117

Evenings
One week disappears very quickly during such an intense
experience, and if you have done a good job at recruiting, the
team will consist of conscientious people who dedicate the
full strength of their mental facilities to the Studio challenge.
As a mental ‘steam valve’ we set the hours of the Studio as
09:00 to 16:00. This gives everyone a chance to relax or nap
before a group dinner at about 19:00. If the team—or part of
it—decides to stay late that is OK too.
We prefer to pre-book dinners for each night of the week
with the agreement that Studio members can opt-out if they
need to rest. However, in our experience the majority of din-
ners were with the full Studio teams and this proved to be a
very important venue for fleshing out ideas and developing
the team’s social bond. With only four days to really develop
the bulk of the work, the Monday-Thursday meals represent
a total of about eight hours of conversation—essentially
another full day’s work. If your Studio arrangement does not
allow you to entice everyone to meet in the evenings, slightly
longer Studio hours are recommended.
Because of the compressed schedule, dinners and lunches
become important opportunities to downshift into a more
casual mode that allows work to continue in a social context,
layering on new opportunities for consideration as well as
offering the team the chance to get to know each other better.
112 Chapter
Subsection 113

Expected Studio Outcomes People

The Studio experience will produce outcomes on three
P
levels. The direct outcomes are specific deliverables such as a r
framework for strategic improvement and a set of ten oppor-
tunities. Indirectly the Studio can be thought of as a vehicle
o
to build momentum and influence within your network by c
providing an engagement with meaningful content. Finally,
because the week will be an intense experience, our observa-
e
tions are that one of the substantial outcomes is a personal s
transformation that comes from hands-on experience with a
new way of working. Participants generally leave the Studio
s
with an invigorated sense of the possibility of working in a Problem
cross-silo team and a deeper understanding of systemic chal-
lenges.
Place

The Studio’s target at the end of the week is twofold:

1. Articulate a clear vision or framework for strategic

improvement describing the ecology of the problem.
2. Propose an architecture of solutions that highlights
the top ten opportunities to help move closer to the
vision.

Today’s challenges are as much about vision as they are

about designing the transition to accomplish that vision. As
such, the opportunities are the critical hinge between the
way things are now and how things could be. Together these
two outcomes form a bridge between current realities and a
projective1 future, reinforcing the importance of stewardship 1—Imagining new configurations after analy-
and integration within strategic design. sising existing ones, and ‘projecting’ these
new ideas into the world with compelling and
The collection of opportunities are likely to be well- descriptive imagery and narrative.
informed guesses more than detailed proposals, but articulat-
ing them—even as hunches—is a way to avoid the generalities
and abstractions that strategic conversations often get lost
in. The specificity of the hunches, supported by sketches and
diagrams, act as an arbiter between the Studio and their final
review guests to help avoid situations where individuals are
using the same words but talking about different things.

Framework for Strategic Improvement

A strategic framework is the result of breaking down the
initial challenge, putting everything on the table, and then
re-assembling it in a synthetic manner. These are the Studio’s
high-level thoughts that plot the course of the conversation
114 The HDL Studio Model

during the final review and they tend to be best articulated as

a set of themes that identify trouble spots and point to oppor-
Framework
for Strategic
tunities. While it is important to root the strategic framework
Improvement in specific examples of problems the Studio observed in the
existing system, the emphasis should be put primarily on the
—Ecology of the Identify systemic
architecture of solutions as a pathway to improvement. From
problem flaws a practical point of view this often means that the Studio
explains the framework by collecting their thoughts into a
—Architecture of Highlight systemic
handful of thematic areas (3-7). Qualitative in nature, these
solutions opportunities & themes form the bedrock upon which an architecture of solu-
Define stewardship tions can be built.
pathway

Opportunities
The opportunities are individual building blocks that
together form an architecture of solutions. These solution-
oriented actions should be coordinated to operate on the
same timeline and at multiple scales with the goal of creating
a well-balanced portfolio amongst the ten ideas that make
Questions to ask of each opportunity: strategic opportunities actionable today. The studio’s success
at crafting this portfolio is directly related to their experience.
—Who can make this happen?
—What scale does the work start at?
Studios comprised of less experienced individuals tend to
—What scale is the potential impact at? lack a realistic understanding of plausible causality between
—What is the scale and nature of investment hunches and their potential impacts. Experienced studio
needed to get started, and to achieve
success?
members, however, are better able to evaluate the causality of
—How long will it take for the impact to be hunches and their anticipated impact and can therefore make
realized? better decisions about which to choose and which to jettison.
To give some structure to the process it can be helpful
to think of the hunches along two axes: scale of the proposi-
tion and the timeline of its impact. For our purposes, the
scale of the proposition refers to the extent to which it can be
realized unilaterally. For instance, in the HDL Sustainability
Studio one of the hunches was a suggestion that key ‘gate-
1—The Gatekeeper concept comes out of keepers’1 be given zero-energy summer cottages as a way of
research that DEMOS Helsinki conducted capitalising on their status as influential individuals to spark
for Sitra. See http://www.demos.fi/files/
FFRC2009_Neuvonen_REVISED.pdf
widespread interest and attention towards more sustainable
lifestyle choices. The hurdles in this proposition have to do
with securing funding and building relationships with the
right gatekeepers, but in the speculative realm of the Studio
we can put these considerations aside for a moment. If the
money and a few willing partners can be found it is pretty
easy to execute because it involves relatively few groups of
people. By contrast, another one of the Studio’s hunches was
to bridge the gap between national and local decision making
by creating a low carbon ‘war cabinet of mayors and minis-
ters.’ Securing the political consensus needed to create such
Expected Studio Outcomes 115

a high level entity requires the buy-in of many people across

multiple parties. We could therefore consider this idea to be a
large-scale proposition.
The scale of the effort required to implement an idea
can also be compared to the scale of its potential impact.
While implementing the hunch about zero-energy homes
for gatekeepers1 would tangibly translate into the design and
construction of a limited number of houses, the scale of the
impact vis-à-vis positive perceptions of sustainable lifestyle
choices is potentially much larger.
Considering the timeline is a way to factor in the inertia
that is inherent to all systems2 and to maintain the focus on 2—Meadows, Donella H. ‘Thinking in Systems:
strategic issues by recognizing that some of them have more A Primer’. p. 39

inertia than others. To honour the nature of these hunches as

part of a sketch you might prefer to use a relative time scale.
Both the zero-energy homes for gatekeepers and a ‘cabinet
for the war on carbon’ can happen relatively quickly, whereas
the Studio’s suggestion that Finland densify parts of its urban
areas requires persistent effort by many people over a genera-
tion or more. Useful time scales might be: today, next year,
three years, ten years, a generation, one hundred years.

Be Selective
Remember, this is a sketch of the problem and an attempt
to find ways of addressing it—the outcomes of the Studio are
intended to be a solid starting point, so while the Opportunities
thinking must be articulate and compelling, it big and small

does not have to be exhaustive or rock solid just

yet.
Whether it is 10, 11, or 20, pick a number of
hunches and use this as a target. Working within Framework
an artificial numerical constraint will introduce
a useful degree of rigor to the selection process.
The act of making these tough choices is an
important part of the synthesis process, gently
Architecture of
forcing the Studio to take a position on what is solutions
important and in which order. Particularly when
working with governmental decision-makers this kind of
clarity is important. It can be difficult to get someone in a
busy position to sit still for long enough to talk about a couple
of ideas, let alone more than that.
116 Chapter
Subsection 117

The Final Review People

Presenting the Studio’s outcomes in a review setting gives
P
the team a chance to receive feedback on their work and r
gives you, as the host, a way to attract stakeholders who will
be important to any subsequent implementation efforts. It is
o
about enhancing the robustness of the strategic framework c
and beginning to explore next steps.
The ‘final review’ as a format is based on a concept com-
e
mon to academic design studios. The culmination of the s
design school semester is a final review where students pres-
ent their projects to a panel of 4-6 professors who offer a cri-
s
tique of the work, discussing the highlights as well as openly Problem
identifying areas of necessary improvement. This discussion
is where the ideas of the semester are teased out, compared
Place
and tested and it is where ideas gain their full richness. In
the case of the Studio Model the team is working as a single
unit, but using the same template of presenting to a panel of
informed guests, followed by a group discussion.

Review Guests
Months before the Studio starts you want to start secur-
ing a group of about five guests who have a deep understand-
ing of the big picture, or key parts of it, and are positioned to
become champions of the work. At Sitra we look at issues on a
national level, which means we recruit Studio critics who see
the challenge from a local, national and EU-wide perspective.
Having an audience that is both committed to the topic and
acutely aware of the nature of the challenge is very important
because it positions them to be good critics, and ultimately
good champions. In general it helps if the review guests are
seasoned so that they can respond with experience, yet are
open-minded to having their own wisdom challenged.

Start Strong
Once everyone has arrived and settled in, it is time for the
host to give a very brief introduction that orients the guests
towards the Studio and its intended goals. The purpose of
this is to manage expectations by explaining the nature of
a sketch and its emphasis on getting the relationships right,
rather than nailing each of the details with 100% accuracy.
Following this introduction, the Studio gives a presenta-
tion of 30 minutes or less, typically with the Design Lead in
the role of MC and the other team members making specific
118 The HDL Studio Model

contributions. In our experience, it works well if the Design

Lead begins the presentation by explaining the strategic
framework, the team members speak about each of the action
areas, and then the Design Lead comes back at the end for the
wrap-up.
The presentation needs to share how the Studio defines
the challenge, what opportunities they see, what barriers they
perceive, and then outline a collection of possible actions that
coalesce into a ‘road map’ of strategic improvement. This is
the synthesized outcome of their week together and it may be
accompanied by slides, videos, whiteboard drawings, hand-
outs or any other medium the Studio team see fit to use.

Focus on the Conversation

The formal presentation might be thought
of as a menu of possible conversations which the
guests can then choose from. As the presentation
concludes, the group transitions into discussion.
This is a moment where the specific nature of
the physical space is very important. Once the
formal presentation is over, the presenters should
sit down so that a conversation among peers can
flow easily. Pedestals, presenter’s tables or other
barriers in between the Studio team and their
invited guests create a formal interaction that is
too rigid. The more seamlessly you can transition
from presentation to conversation the better.
The best review discussions are lively and The worst mistake you can make after a
conversational. Prep your guests by asking presentation is to leave too little time for discussion, reducing
them to avoid prepared remarks and to engage
the presentation material, the studio team, and
any emergent dialogue to platitudes and clarifications. Since
each other. the collaborative evolution of ideas during conversation is
the focus in these review sessions, be sure to leave ample time
to discuss. We try to make room for 60-90 after the review,
which is just about enough to process some of the new knowl-
edge which has been shared by the team.

Shift Gears
After a good stretch of discussion following the presenta-
tion, it can be useful to transition again from the review to
a meal that allows the conversation to continue in a more
casual setting, encouraging everyone to open up a bit. This
is often when some of the more fringe—and therefore most
interesting—opportunities are revisited.
In the case of our 2010 Studios we catered dinner in the
Studio space itself to make the transition as easy as possible.
This gave the Studio team, the invited guests and the HDL/
The Final Review 119

Sitra team members time to celebrate an incredible week of

effort, but it also functioned as a real working dinner wherein
the review conversations were revisited and continued.
Perhaps most importantly, moving from the review to din-
ner allowed us to spend more time together, stewing on the
ideas without resorting to an awkwardly long meeting. Using
exactly the same space for both formal and informal discus-
sion usefully ensures that the Studio’s ideas remain in focus,
as if they were hanging in the air while the context is shifted
around them.
Combining the final review with a meal allows you to
dedicate a total of four to five hours of intense conversation
around the work of the Studio team. Especially when dealing
with strategic questions that are often complicated and messy, Sharing a meal in the studio space, surrounded
by the work of the studio team, is a useful way
having a solid bit of time to properly talk through things to extend the conversation while avoiding
is important. The danger of a short conversation without fatigue.
enough opportunity for back and forth is that the partici-
pants use the same words without ever sharing a common
understanding. It is a fact that understanding takes time, and
that is what the review/meal pairing is designed to deliver as
painlessly as possible.

Sample Schedule

—Months before review: identify and confirm guests

—Weeks before review: set up dinner and other logistics
—Friday 10:00: presentation ‘dry run’ with Studio team
and HDL to test the story and work out the bugs
—15:00 move studio table and arrange chairs for review
—15:45 guests arrive
—16:00 presentation starts
—16:30 presentation concludes and conversation begins
—17:45 conversation slows down as people get hungry
—17:50 a short toast before sitting down to dinner
—18:00 dinner begins and the conversation continues,
lasting as long as the table likes
—A fterwards: follow up with thank you emails and begin
exploring next steps
120 Chapter
Subsection 121

Physical Infrastructure People

Process
“The Delegates all… walked to the Car- Problem
penters Hall, where they took a View of
P
the Room, and of the Chamber… The
General Cry was, that this was a good l
Room.” a
c
—John Adams on September 5th, 1774 describing in his
diary the very first decision at the first meeting of the Conti-
e
nental Congress of the United States. Before getting down to
the ‘small’ matters of bootstrapping a new government they
first made sure to identify the right room.

Working collaboratively in an integrated way does not

always come easily and working long hours can be emotion-
ally and physically draining. For these reasons, the environ-
ment of the Studio is very important. Getting this right cre-
ates an atmosphere of hospitality that enables the Studio team
to focus on the quality of their work and their deliverables
instead of being bothered by the lack of creature comforts or
missing tools. If your participants are not happy and com-
fortable, then they are not functioning at their highest levels.
Too often this is overlooked by people who organise and host
events, yet it is the most basic of considerations.
To get the most out of a week together the Studio team
must be well cared for and well supported. Although creature
comforts might seem like a frivolous concern for a seri-
ous Studio, a little bit of effort in this area goes a long way.
Concern for the comfort of your team will come up again
and again in the next two How-Tos, but here we are primarily
concerned with the physical space.
In the best cases you will have the ability to select a space
specifically for your Studio, but even if you have to work with
what is available in your own building it is necessary to spend
a bit of time thinking about how to make the room comfort-
able and pleasant to be in for long stretches of time.
The Studio will serve as a temporary office for the team
and should really feel like the kind of place that has been
lived in. We used the HDL Studio space as an office for a
month leading up to the first Studio as a way to ‘road test’ the
experience, ensuring that all of the little details were taken
care of and that it already felt lived-in when the first team
122 The HDL Studio Model

stepped inside. Spare toilet paper? Check. Printer? Yup. Well-

placed stash of marker pens? All present and correct.

Location & Quality

The Studio should be held in a place that feels connected
to the challenge and that offers the potential for pleasant and
refreshing breaks. For instance, organising a Studio on home-
lessness and then hosting the team in a conference centre at
a golf course feels disconnected and counter-productive. For
our 2010 Studios we found a space in the centre of Helsinki.
Being located on the second floor and having large windows
allowed the team to feel connected to the life of the city with-
out having constant distractions. The team could also pop
by for a coffee at the café downstairs when they were feeling
stuck, or take a quick stroll through the adjacent park. Con-
sider issues such as the amount of daylight and the possibility
of natural ventilation.
For a Studio team of eight people plus 1-2 research assis-
tants you will want to have at least 80 square metres. While
you can make it work with less room—a Studio could be run
out of a conference room if it had to be—the investment in a
little extra space will enable multiple things to happen at the
same time, such as different brainstorms happening simulta-
neously. This kind of parallel processing is really productive,
and keeping everyone in the same space is essential because
it maintains the ambient connectivity of the Studio members,
ensuring that the collective intelligence is always accessible.

Room to Relax
If possible, provide a corner of the space which has casual
seating and is private enough to make a quick phone call. The
Studio team all have their own lives and even if they have
made a commitment to participate in the Studio, outside life
has a way of creeping in. Make it easy to step out of the con-
versation for a moment without leaving the Studio altogether.

Coffee & Chit-chat

Equally as important as being able to have a moment of
privacy is the ability to socialise. We set up a small kitchen
with coffee, tea and a pantry full of snacks that naturally
encouraged the Studio team to chat in small groups or one-
on-one.
Physical Infrastructure 123

Furniture
Whether enabled by wheels, fold-ups or some other
means, it is best if the Studio furniture can be reconfigured to
support one big conversation, multiple small groups, presen-
tations with an audience or a casual lunch. Do not fall prey
to the myth that particular types of seating, such as beanbag
chairs, are more supportive of open-minded thinking than
others. What matters is that the Studio have a diversity of
seating options. In the HDL Studio we observed the order
of preference starting with task chairs and followed by the
window sill, sofa and stools in that order—not a single person
demanded a bean bag.

Equipment & Supplies

The general principle is to cover basic physical and digital
media needs so that no time is wasted struggling to get ideas
into the flow of conversation. Cater to the Studio team’s needs
rather than be proscriptive about how they express them-
selves. This means being prepared for the person who works
best with Post-its and the one who draws on the whiteboard
and the one who prefers PowerPoint.
If having a hammer makes you see everything as a nail,
what does that say about designers if they see the flimsy,
sticky little piece of paper called a Post-it note as the answer
to every workshop or brainstorm? There is going to be a lot of
list making, sorting of ideas, relationship-mapping, sketching
and diagramming activity going on during the Studio, and
much of it is better suited to a larger format than a sticky note
can support, even the big ones.
Whiteboards are critical because they are naturally
large-format. The larger your whiteboard surface, the better.
The necessity to erase and redraw as conversation evolves is
a useful quirk, as the re-inscription of ideas gives them an
opportunity to develop in new ways either in substance, as
they are brought back into the consciousness of the group, or
in representation as they are literally re-presented through
rewriting or redrawing. In addition to copious whiteboard
surfaces and—yes—even some Post-its, you might want to
have a map depicting the corner of the world relevant to your
Studio topic, especially if team members have come from
overseas.
Beyond the physical media, digital presentations are
a necessity. Not only is it a likely candidate for the final
presentation that the Studio makes to its stakeholders, but
guest speakers, or even the Studio team themselves will prob-
124 The HDL Studio Model

ably want to collectively refer to a digital document at some

point. If at all possible, avoid relying on a projector due to the
sleep-inducing effects of turning out the lights. Using a large-
format flat screen and keeping the lights on helps set a tone
that is more conversational and allows the Studio to fluidly
move between using different kinds of analogue and digital
media without fuss.
Do not forget to have a printer, preferably a fast laser
printer that is located in the Studio space itself and not down
the hall.

Info Point
Dedicate part of one wall, preferably near the entrance
or the kitchen, for posting the latest schedule of the week,
short biographies of everyone that the Studio will be meeting,
and essential details such as the password for the wireless
network. We learned the hard way that it is very difficult to
control a schedule that involves a lot of moving parts. People
change their arrival time or become unavailable and things
sometimes run late. For this reason, the printed schedule that
we handed out at the beginning of the week was just an over-
view, and we kept the latest schedule posted on a large format
wall calendar that was updated as needed in the old fashioned
way: with a marker.
Physical Infrastructure 125

D B

K
C

Don't forget to have a place to relax. You may

find that some of the best work happens on
the couch.

A. Large table
B. Whiteboard wall
C. Easy-to-move chairs
D. Assistants' corner
E. Report table
F. Back office
G. Quiet corner for personal phone calls
H. Big windows with natural ventilation
J. Kitchen (with stocked pantry)
K. Large digital screen
L. Printer with wireless access
M. Info wall with poster introducing everyone
who is part of the studio week and a day by
day calendar
N. Quick access to central Helsinki
126 Chapter
Subsection 127

Soft Infrastructure People

If the physical space, equipment and supplies form the hard-
P
ware of the Studio, there are also bits of software necessary r
to make it run. This involves a number of support roles that
should be coordinated ahead of time.
o
c
Studio Assistants
e
The role of 1-3 Studio assistants is primarily to field ques- s
tions that come up during the course of the Studio’s conversa-
tion so that the Studio itself does not lose momentum. As the
s
Studio is shaping their strategic framework, the assistants Problem
are able to track down details to answer questions, arrange
appointments with people that the Studio are interested in
Place
meeting, or to more carefully document ideas that the Studio
has sketched out. This allows the assistants to work in parallel
with the Studio itself without introducing serious interrup-
tions.
If possible the assistants should be available before the
Studio week actually begins to field questions and do prepa-
ratory research. Mailing the Challenge Briefing to the Studio
participants in advance is a good way to get thoughts flowing
before the team convenes for the actual week. As questions
come up in response to the Challenge Briefing the Studio
assistants can collect and respond to them in advance via
email so that the team is able to hit the ground running.
During the week it is important for the Studio assistants
to be as available as possible. This means arriving at the Stu-
dio before the team and staying until after they leave. In our
experience it worked well to have the assistants working in a
semi-private corner of the same space where they were within
earshot of the Studio team but could converse quietly and
make phone calls when needed without disturbing anyone.
The best Studio assistants are able to judge the tone of the
room and are careful not to interrupt at a point when it could
break the flow of conversation.
Creating an input/output system to keep track of which
questions have been asked, which are being worked on, and
which have already been answered will help ease the chaos
of the week. Whether it is web-based or an old-fashioned
list on the whiteboard does not matter so long as the system
is dead simple to use, posted in a highly visible place within
the Studio, and kept up to date. Immediately adjacent to the
Studio assistant’s desk we set up the ‘report table’ where the
128 The HDL Studio Model

Sample output from the assistants in

response to a question from one of the stu-
dio members. We use a simple template that
structures the document as: Initial Question,
Synopsis, Findings, Source.
Soft Infrastructure 129

assistants curated a selection of reports, their own research

summaries and other documents during the course of the
week. This gives the Studio team a single go-to source for
their research needs as well as enabling anyone walking by
to have a glance over a diverse range of sources, potentially
making interesting connections. Seeing the contents of the
‘report table’ expand over the course of the week provides a
nice visual reminder of the intense pace that everyone was
working at.

Tech Back-up
Primary concerns from a technology point of view are
easy to use file sharing and wireless networking. Before the
Studio begins, identify the person who will help with any set-
up needs ahead of time and coordinate with them so that they
are prepared if and when a bevy of urgent requests come up
on the first day of the Studio. Have the file sharing and wire-
less networking login details available in written form before
the Studio arrives.

Odds & Ends

Having someone tasked with cleaning the Studio and
making sure that everything is stocked is not to be under-
estimated. With 8-10 people dedicating all of their focus to
the work at hand, you will quickly find that there is a pile of
cups and food containers that need some attention before
the Studio turns into a waste heap. There is always a need for
odds and ends such as batteries, more paper for the printer,
or another bar of soap for the bathrooms, so it is good to have
someone identified ahead of time to handle these necessities.
130 Chapter
Subsection 131

Cultivating Atmosphere People

Attention to the details of the Studio experience is a way
P
for you as the host to cultivate an atmosphere of hospital- r
ity, enabling the team to do their best. It also conveys to
the Studio your respect and appreciation for their work.
o
Our goal when conducting a Studio is to take care of c
things in a subtle way so that the Studio members feel
well-cared for without the details calling too much atten-
e
tion to themselves. Since these ineffable qualities can be s
hard to describe in abstract terms, this section is a series
of vignettes that attempt to articulate what we mean by
s
cultivating a distinct atmosphere and the benefits that this Problem
yields. In this regard, one of the tricky things is to craft
situations with care without forcing anything, which will
P
only alienate your guests. Perhaps due to the necessity of l
eating, we tend to treat food and meals as natural opportu-
nities to subtly handle the details with special care.
a
c
Give Ownership to the Studio
An hour before the first day of the Studio begins we
e
schedule a meeting with the Design Lead in the Studio
space so that they can acclimatise themselves to their
office-away-from-home and mentally prepare for the hectic
week ahead. In addition to a basic run-through of logistics,
this meeting is when we hand the key to the Studio over
to the Design Lead as a symbolic gesture. The intention is
that having a key allows the Studio to assume ownership
of the space, treating it and the Studio challenge truly as
their own.

Make it Memorable
Although we plan dinners each night of the week, we
take extra special care with one of the meals, typically on
Wednesday night. In 2010 everyone was able to rest after
a full day in the Studio before gathering at a private home
on the outskirts of Helsinki to have drinks in the garden.
After sunset the gathering moved inside where we enjoyed
an excellent meal in an intimate dinning room. The
motivation for all of the choreography around dinner is to
foster the chemistry of the group by enabling them to share
a special experience—hopefully one that will serve as a
lasting reminder of their time in the Studio. Moments that
give the team a chance to bond socially are an investment
in the team’s ability to collaborate fluidly.
132 The HDL Studio Model

Be Casual but Serious

To find a suitable venue for our 2010 Studios we started
with three of Helsinki’s best cafes and radiated out from
there until we found spaces to consider. The reason for this
is simple: the Studio needs to get out every now and then,
and a short walk to the cafe for a snack and some caffeine is
a wonderful way to punctuate the day without dramatically
breaking the flow. Being able to step out and recharge every
now and then helps create a relaxed atmosphere. Just because
the content is serious stuff does not mean it has to be stuffy,
nor does it mean going too far in the opposite direction to
create an atmosphere of enforced fun.

Eat Right
Brain work can be deceptively exhausting. Although it
might not seem taxing, it is easy for a group of people who
are working hard and fast to forget about their stomachs
and exhaust themselves. For this reason, you might have to
make polite inquiries around lunch time or see if the Studio
is hungry for lunch or a snack in the middle of the afternoon.
Meals don’t have to be fancy but they do have to be tasty,
nutritious and filling. To avoid sending your team into a food
coma it is a good idea to avoid heavy midday meals. We paid
extra attention to provide local foods that would give visitors
a sample of Finland’s best.
Cultivating Atmosphere 133
 134 The HDL Studio Model

1 Month before
Months before

Weeks before

Week before
Challenge briefing done Electronic copy of challenge Paper copy of challenge
PROBLEM

briefing sent to studio briefing delivered to studio

members

Building network around studio theme All guest

Identifying expertise profile for studio presentations
and field visits
confirmed
PEOPLE

All studio mem- Meeting and vetting

bers and support potential field visits
staff recruited and and guest lecturers
confirmed
PLACE

Studio location confirmed Studio assistants work in Double check

and final furnishings and the studio for 1-2 weeks all equipment
equipment being secured beforehand so that the space and supplies
feels lived-in

Matching possible studio top-

ics to the vision and trajectory
of the organization
PROCESS

Meeting with internal and Studio assistants are work- All-hands

external stakeholders to build ing on initial questions that meeting with
awareness studio members ask about host team to
the challenge briefing review details
for studio
week
 Planning Guide 135

Planning Guide
To work without rushing you will want to begin your earli-
est preparations 6-9 months in advance of the studio week.
Provided here is the rough schedule that we use.

Months after
Weeks after
Week after
Thur.
Mon.

Wed.
Tue.

Fri.

Studio week
PROBLEM

Studio presents its strategic framework and architecture of solutions to invited guests

Check-ins with stu-

PEOPLE

dio team and guests

to get feedback.

Check-ins with stakehold- Collaboration with key

ers to explore continued stakeholders to develop the
collaboration around studio studio's sketches into viable
outcomes. projects
PLACE

Introduction to how things are ‘supposed to work’

Studio assistants are in

studio for 1-2 weeks while
documenting the work
Field trips to see on-the-ground reality
PROCESS

Ongoing synthesis
Starting to sketch

All-hands meeting to review

Studio week and collect
internal feedback
136 Chapter
Afterword by 137
Mikko Kosonen
President, Sitra,
The Finnish Innovation Fund

This book is really more of an ‘opening chapter’ in a

broader story about the potential value of strategic design
to government, the public sector and to public life. As you
have seen, its particular focus is in distilling the essence
of the Helsinki Design Lab Studio Model, an approach
that is beginning to quietly enrich Sitra’s activities.

I was fortunate enough to be involved in several of 2010’s

Studios, as a guest and stakeholder at the ‘Final Review’ stage
described here.
There, I began to see how strategic design might help
transform the at times elusive world of policy-making and
governance. The tone of the studio conversations were differ-
ent somehow, with previously impossible challenges suddenly
being transformed in a more positive light, with a sense of
agility and constructive suggestion. Though proposals were
often sketchy and incomplete, I felt that the terrain had
shifted; moving from convoluted issues with many reasons
for a quick ‘no’, to a balanced portfolio of practical yet imagi-
native proposals as to what could be done instead.
In our book Fast Strategy 1, Yves Doz and I described the 1—Doz, Yves L., and Mikko
value of strategic agility in possessing “an ongoing capability Kosonen. Fast Strategy: How
Strategic Agility Will Help You
for real-time strategic sensitivity, quick collective commit- Stay Ahead of the Game.
ments, and fast and strong resource redeployment”. The
combination of these approaches—in conjunction with, it
must be said, design-led innovation—has radically trans-
formed entire business sectors in recent years.
Yet recent business history is also littered with examples
of firms answering the wrong questions or of proving inca-
pable of responding to rapidly changing ecosystems and the
structural challenges of digitalisation, globalisation, and
deregulation. In many cases these firms were weighed down
by inertia and uncertainty.
Increasingly, governments in developed nations are also
facing structural challenges. As globalisation makes states
more interdependent, the internal ties that have bound
them together in the past have been loosened by shifts in
demographics, resources, culture and values, changing
the landscape considerably. The ability to make long-term
investments to address these changes—and perhaps the
biggest change of all, to our climate—is actually threatened
138 Chapter

as a result, suggesting that government may need to strategi-

cally redesign itself. In the case of Finland, the success of the
so-called ‘Nordic Model’ is now facing a kind of inertia of
its own, due not least to the challenges posed to the Studios
described in this book.
Yet government is not the mobile phone business nor is
it Facebook. The Nordic Model will not continue to thrive
by simply installing a web front-end while outsourcing its
back-end.
For government is more complex than business. Some-
times this complexity can feel like a particularly frustrating
inertia to all of us, yet perhaps the consequence of introduc-
ing greater agility is that there is a simultaneous need for
‘slow government’ too, particularly at times of great change.
This, in the spirit of the slow food movement, which values
the richness and care of craft, responsibility, sustainable local
solutions and human-centred practices.
Either way, it’s this ability to shift scale and pace—to
bring agility to the public sector, whilst engaging in the rich-
ness and depth of public representation—that makes strategic
design necessary and valuable.
The various characteristics of design articulated in this
book—including its ability to quickly develop multiple
perspectives, to understand people, communities and societ-
ies, and to blend strategic intent with a focus on the quality
of execution, for example—presents us with a potentially
valuable tool for addressing the future with sensitivity and
ambition. It allows us to identify the punainen lanka, or red
thread, that connects the critical dimensions to redesign our
systems of delivery.
Finally, as a leader of an organisation oriented towards
the future, perhaps the thing that speaks to me most clearly
and most personally here is that strategic design is a practice
predicated on optimism—on a firm belief that current condi-
tions are changeable for the better, that the present can be
transformed into multiple positive futures. Like Sitra, design
is also necessarily oriented towards the future, and we hope
to learn much from its inherent ability to pull off the artful
balancing acts intrinsic to good design.
Whilst strategic design is pragmatically grounded
through its focus on generating plausible prototypes of new
approaches, systems and services, it is also offers an alter-
native to the common kind of decision making based on
analytics—that today’s living conditions are necessarily the
determinant of tomorrow’s.
Afterword 139

We must deeply and imaginatively research the past

and present in order to project into the future. As a practi-
cal capability, with real clients attached, design is drawn to
working from this position.
Yet we must also suspend disbelief that the present is
necessarily the only guide to the future, or that existing
methods will continue to serve us well. It is design’s ability
to project new configurations that sets it apart from many
analytical methods. In fact, I share the authors’ assertion that
the complex systemic challenges we face today actually neces-
sitate frameworks that are intrinsically capable of generating
and testing entirely new approaches, and learning from their
introduction to existing structures. Again, design is inher-
ently drawn to working from this position too.
For Sitra, strategic design enables us to explore this deli-
cate combination of pragmatism with imagination: research
through prototyping, learning from execution, communica-
tion through tangible projects, strategic intent with iterative
action, systems thinking and human-centredness, all under-
scored by an optimistic belief in progressive change.
Having folded strategic design into our organization as
a core capability, Sitra is committed to continuing to both
develop this work and share its story. In this spirit, I encour-
age you to also join the story at helsinkidesignlab.org, and
share your own experiences. The map is still developing
around us, and we rely as much on the dispatches from our
friends in the growing international network around Helsinki
Design Lab as on our own efforts.
Government is too important for it to fail through inertia,
or lack of attention, of insight, of belief. In fact, we hope
that strategic design can help shed new light on the value of
public life, and help reorient public institutions, services and
structures towards the future with optimism. We owe it to
ourselves to sketch out this story together.

Mikko Kosonen
President, Sitra
Helsinki, July 2011
140
What follows is a complete re-printing of the
Challenge Briefing issued to the Education
Studio. For more about the studio and its
outcomes see > PP 54-63.

For more about the style, role, and format of

Challenge Briefings see > PP 97-99

141
142
 With the rise of the global economy comes a constant flow of
money, goods and services between cities and across borders.
International mobility and migration are redefining populations
and diversifying communities while telecommunications, media,
and the internet continue to revolutionize how we perceive the
world, consume information and interact with others. Taken
together, this creates a dynamic culture of complexity that the
children of today must learn to navigate if they are to succeed.

Education must leverage diversity and differences among

individuals into opportunities for greater achievement. Its chal-
lenge is to adjust existing structures to better serve students of
unique cultural backgrounds, talents, and intelligences. A suc-
cessful education system in the future will be defined by how
well it handles diversity and promotes all students to participate
and thrive.

At the core of this challenge is the transition from a mono-

lithic, institutional definition of education to a more holistic
understanding of learning. Today’s classrooms must evolve
and expand into more comprehensive and adaptable learning
environments, reaching more students more effectively. Fur-
thermore, classrooms must be seen as only one of many venues
for learning. Doing so will only increase the value education can
deliver amid this emerging cultural and economic landscape.
Education cannot afford to become complacent nor remain
static.

Discrete skills such as reading, writing and arithmetic must

now be complimented by fuzzy competencies such as the abil-
ity to deal with uncertainty, communicate across cultures, and
integrate disparate kinds of expertise. Students must learn to
navigate faster-paced and more fluid work environments, where
creative problem solving and flexibility are not only valued but
highly rewarded.

The dynamics of change and diversification have compli-

cated the pathways to employment and success in life. In the
last century, education was developed to meet students’ cur-
ricular needs for the industrial age. Now that we have entered
a new era, education systems have not yet to fully adapted to
the pressures of the new economy and an emerging, more chal-
lenging market.

143
Opportunity Space

Finland must transform its education system for the twenty-first cen-
tury. Doing so is not only necessary, but it would place Finland in the lead
among nations in its ability to train and prepare its entire population to be
even more competitive in the global marketplace and within a changing
world.

Education in Finland already has a proven record of success. Decades

of continuous reforms have resulted in universal literacy, top rankings
in international student achievement test scores, and a population with
increasingly higher levels of educational attainment. By law, education in
Finland is free and accessible to everyone. Teachers are highly trained, fairly
compensated, and highly respected within society at large. And yet, not all
students in Finland thrive in the existing system. A significant number of
students drop out of school year after year. Some never continue onto sec-
ondary school and others leave school before completing their degree or
qualifications. Collectively, dropouts become symbols of failure, perceived
as social outcasts and a drain on the economy.

Finland’s dropouts may actually be the catalyst for reform in educa-

tion. Dropouts are a leading indicator that reveals the ultimate challenge
and opportunity for education—how to become more relevant in the ever-
changing, diversifying world. For all the effort and money spent on early
intervention, special education, and counselling, not all students’ learning
needs are sufficiently met. Simply put, the main concern is to expand the
learning environment to reach everyone, including those individuals who
learn best in different ways, in different environments, and with different
skills, interests or intelligences.

Although current dropout rates are modest by international standards,

Finland cannot afford to wait to see if this is an early indicator of a grow-
ing trend. There is need for a genuine and fundamental shift because the
larger consequences for society are real. The current education system was
developed for a young nation with a small and homogenous population. It
was designed for the last structural transformation from an agricultural to
industrial economy in which traditional skills and conventional methods
were valued.

144
 The government’s latest five-year Development Plan for Education and
Research recognizes the many challenges facing the current education
system under the pressures of the post-industrial era. It is a candid and
comprehensive survey, delineating many topics in education that deserve
greater scrutiny and need improvement. However, the report merely out-
lines and names near-term targets and abstract goals. What is truly needed
is a clear pathway for education and what it must do to must to take on
present challenges and address long-term solutions.

The opportunity for this studio is to frame this transformation and

identify the key dynamics within education toward developing an improved
system for today and the future. To do this, the studio will define more rel-
evant and more comprehensive learning environments for all students. If
Finland wants to guarantee that its youth are able to keep pace in a chang-
ing world and become active participants and competitive players on the
global stage, the time to act is now.

145
 Background

Dropping out conjures such powerful images that it is easy to accept

the term without question, but what is a dropout and what are they drop-
ping out from? While the typical definition of dropout focuses on a student
discontinuing their studies, the ultimate concern is one of the individual’s
ability to live a happy life balanced with their duty to contribution to soci-
ety. Widespread education enables a more-able workforce which in turn
bolsters the local economy and its ability to compete on the global stage.
While some students drop out of school, others seem to fall into it, pro-
longing their time as a student and delaying a full entry into the productive
economy. In 2007, 43% of Finland’s students took six years to complete a
university bachelors degree of three years full time study, according to the
OCED. These twin concerns of the micro, individual level and the macro,
societal scale will both shape the dropout challenge.

Education Makes Economic Sense

Finland’s participation in the global economy requires balancing

domestic objectives within the larger, more complex dynamics of the com-
petitive international marketplace. Despite its relatively small size with
only 5.3 million inhabitants, Finland continues to be a global player, having
earned international respect for successes in its mobile communications,
high-tech, and design industries. However, the long-term survival and
prosperity of Finland rests on how well the goods and services it produces
can remain innovative and competitive in the new and changing economy.

80 bn EUR

Export
60 bn EUR Import

40 bn EUR

20 bn EUR

Trade Balance
0

-20 bn EUR
| | | | | | | | | |
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Imports, Exports and Trade Balance 1990-2008 Source

*The figures of the time series have been converted from FIM into euro by a fixed rate. Tulli-Finnish
customs
statistics
To meet this challenge, Finland’s education system must be able to pro-
duce a constant supply of skilled and high-value workers. Finland has a long
tradition investing in the social capital of its youth—its greatest renewable

146
 resource—and has shown a strong commitment to building and maintain-
ing an excellent education system. Confirmation of many of these efforts
has captured international attention and praise, as measured in Finnish
students’ superior performance in international standardized tests, the
high rate of secondary school graduates, and the increasing population of
university degree holders.

17% 15%
50% 38% 27% 20% 18%

50% 62% 73% 80% 82% 83% 85%

| | | | | | |
1975 1980 1985 1990 1995 2000 2005

No post comprehensive qualification Upper-secondary or tertiary

Source Share of completers of post comprehensive qualifications 25-34 year olds in 1975-2005
Statistics
Finland
There is a strong argument that by continuing to develop the qual-
ity of education for all its citizens, Finland is simultaneously securing its
economic survival and future prosperity. Internal pressures include a rise
in immigration and a diversifying population, an increasing demand for
new skills, tightening budgets requiring government agencies to do more
with fewer resources, and a rapidly ageing population. A more educated
workforce promotes a rise in GDP by means of higher valued production,
more frequent innovation, greater efficiency in business and manufactur-
ing, and a larger population of skilled labour. A stronger economy, in turn,
safeguards the ongoing and larger project of Finland, a nation determined
to protect and provide for all its citizens, promoting greater equality and
opportunity for everyone.

160 bn US$

140 bn US$

120 bn US$

100 bn US$

80 bn US$

60 bn US$

40 bn US$

20 bn US$

| | | | | | | | | | | | | | | |
1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2006

Source Total GDP (constant exchange rate US$), Finland 1960-2006

OECD

147
 Finnish Core Values

In Finland, equality lies at the heart of government policies and social

programs. In keeping with certain core values shared by its Nordic neigh-
bours, every individual in Finland has a fundamental and universal right to
government assistance in the form of universal health care, housing assist-
ance, parental work-leave benefits, free education, disability and unemploy-
ment insurance, and retirement pensions. Seen from this perspective, each
person, at every stage in life, is provided equal access to a reasonable and
decent standard of living.

Education is the cornerstone to this promise in the Finnish welfare

model, the principle means by which all young people, over an extended
period of time, are prepared for life and work. School is where they develop
the skills required to enter the labour market and become active and com-
petitive participants in a changing society. Education—and equal access
to it—also forms the basis of Finnish identity and culture. For this reason,
education is an essential and equalizing institution. It is free and available
to all young people, regardless of economic background, race, religion or
gender.

The number of non-native speakers has increased in Finnish schools in the past several years.

Year 2005 2006 2007 2008

students students students students share

comprehensive level 15,737 16,279 16,398 17,156 3.10%

upper secondary level 12,655 13,849 14,926 16,633 4.30%

tertiary level 10,647 12,154 13,836 15,576 5.30% Source

National Board of
Education, Informa-
tion and Evaluation
In Finland, alongside the principle of equality stands the equally Services
important notion of equity. At its most basic, Finland has embraced the
principles of inclusion, supporting the rights and needs of minorities for
the betterment of society. For education, this is evident in various policies.
A national core curriculum establishes uniform standards for all students
nationwide. Instruction in one’s mother tongue is guaranteed in Finn-
ish or Swedish, the two national languages. Other minorities in Finland,
including the Sami, the Roma, and new immigrant arrivals have rights for
educational instruction in their native languages as well. Special educa-
tion is offered to students needing additional support and with an emphasis
on early intervention. Most often, this takes place in the classroom, with
the help of special assistants, as means to preserve the cohesive class unit.
School health clinics, counsellors, and government aid ensure that stu-
dents’ physical, emotional and financial needs are also met.

Finland embraced a more international outlook when it joined the

Europe Union in 1995. Suddenly, Finland’s borders with its European
neighbours disappeared as a larger pool of immigrant workers were able to
enter the country and its labour market. The advantages of attracting new

148
 2008 Foreign Exchange Students 8,800

Europe 84.40%

Asia 9.30%

North America 3.00%

2008 International Degree Students 12,600

University students 3.80%

Soure Polytechnic students 5.00%

CIMO

and cheaper labour did not come without its challenges, as Finland con-
tinues to absorb these new workers and their families into Finnish society.
Inclusion is another dimension of Finnish cultural values toward equality
and equity. It is a also a plays into a longer-term strategy, to become more
international and remain competitive.

➢ Immigration has tripled in Finland the last thirty years, to just

under 30,000
➢ In 2008, Somalis rank second, after Russians, in the number natu-
ralized citizens

Further evidence of Finland’s international strategy is seen in the effort

to attract more international students to Finnish universities. In doing so,
Finland hopes to lure greater foreign expertise and talent to its research
institutions.

149
 Another distinguishing feature in Finland is the high level of autonomy
in local government at the municipal level. While the Ministry of Educa-
tion establishes the goals for students at the highest level and for the entire
nation, it is largely up to the local authorities and schools to decide how to
implement these goals and by what methods. While 57% of education budg-
ets are provided by the national government, the remaining 43% is raised
through local taxation. Rural areas, especially those that have lower tax
bases, can rely on a government redistribution of tax revenues in order to
close any wide gaps between them and the wealthier, more urban munici-
palities.

In Finland, autonomy at the local level translates into a sense of shared

responsibility and trust in government. It allows for independence and flex-
ibility within the education system. Municipalities determine how to allo-
cate the budget to meet local education needs. Local administrators decide
for themselves how to monitor and assess school performance within their
districts. National school inspections no longer exist, so comparisons
between schools are never made public and no administrator fears the
threat or consequences of public shame.

PISA: Measured Success & Conventional Metrics

Despite a decentralized system of independently operating schools,

Finnish students uniformly excel. In the most celebrated example, Finland
ranks at the very top among fifteen year-olds in the Program for Interna-
tional Student Assessment (PISA). In 2006, Finland’s students collectively
outperformed all other OECD countries in science and mathematics, and
all but one country in reading. Variation between regions in Finland was
the smallest of all participating nations. Speculation and consideration
why this is the case, year after year, has many wondering what is the secret
ingredient in Finnish schools and the education system.

The successful performance of Finnish students seems to be attributable

to a web of interrelated factors having to do with comprehensive peda-
gogy, students’ own interests and leisure activities, the structure of the
education system, teacher education, school practices and, in the end,
Finnish culture.
The Finnish Success in Pisa – And Some Reasons Behind It

Success did not happen overnight, but rather over a forty-year period of
education reform. Today, the Ministry of Education proudly points to the
current structure of its education system, the extensive services it offers its
students, and the high quality of its teachers.

Ironically, for a nation whose education system has moved away from
a system of standardized testing, Finnish students continue to outperform
nearly all their peers. There are aspects of the PISA exam that favour Fin-

150
land’s education system and its students, adding caution and scepticism to
the praise and international attention Finland has received.

➢ The exam is conducted at the optimal moment in education for

Finnish students. At age fifteen, students are at a peak, in their final
year of comprehensive school. Most experts agree that Finland’s
scores would likely fall if the test were offered one year later, after
the transition to secondary school.
➢ Absence of high-stakes testing in Finland removes the anxiety over
test taking. Some suggest that students are excited for the test, see-
ing it as an opportunity to become part of something special.
➢ Extremely high reading scores in Finland contribute to higher test
scores in the math and science domains.
➢ PISA tests only three core domains which may align with Finnish
students’ strengths and obscure weaknesses found elsewhere.

Dropouts: Outcasts or Disruptive Innovators?

Finland’s attitude toward equality and equity resonate with the wider
notion that Finland is a culture that values and cultivates consensus. Finn-
ish society is extremely homogenous—in race, religion, income and educa-
tion background. This homogeneity or predominant level of “sameness” in
Finland places even greater scrutiny on those individuals who fall outside
the norm and the mainstream. These outsiders who appear at the extremes,
and in Finland, they include the very rich or very poor, racial minorities,
and in the case of this briefing, the dropouts.

From a cultural perspective, dropouts are individuals who have fallen

outside the mainstream and beyond the reach of the paternalistic state.
They are symbols of failure in the system as well as future burdens on soci-
ety and the state. Educators see them as lost youth, stragglers lacking moti-
vation, ability—or both. Law enforcement officials see them as truants, loi-
terers and idlers on city streets and town squares. Economists see them as
holes in the tax base, contributing less than their graduate counterparts and
creating added stress on the near-exhausted pension funds. Health care and
social workers see them as preventable patients adding costs to an already
burdened system and more likely to suffer from poor physical health, addic-
tion, domestic troubles, and depression.

Despite Finland’s record for success in education, the simple truth is

not all students keep pace in the current system, as designed. The Finn-
ish education system establishes a carefully prescribed path from primary
to secondary and then onto higher education. Deviations from this path,
however small, may appear all the more significant simply because Fin-
land is a small and homogenous country whose education system is already
so highly regarded. Yet, for a country so committed to equity and shared
responsibility, Finland’s population of young dropouts is the easily identi-
fied “crack” in an otherwise pristine façade. Understanding dropouts as

151
 “lead users” re-frames the question from “why are these kids failing?” to
“what can we learn from these students about learning in Finland?”

Early 1900's Autonomy, Independence and Nationalism

Education was a means to assert a Finnish national identity and political autonomy. The focus
on Finnish-language education was understood as a way forward toward full independence
from its imperial neighbours.

1950/60's Post World War II: Economic Recovery, Expansion and the Rise of Industry

Education was necessary to prepare a new labour force with the practical skills required in
industry and the technical expertise for government. Education helped lay the groundwork for
Finland’s economic recovery and the creation and development of the welfare state.

1970's Expansion and Maturation of the Welfare System

Reforms within the structure and curriculum of the education system built upon the funda-
mental guarantees of the welfare state. Consolidation of basic education into more uniform
comprehensive schools, removal of tracks and dead-end routes, creation of more formalized
secondary education paths, and expansion of higher education all together began to fulfill the
promises of equality and equity within Finnish society.

1990's Recession and Reinvigoration and Realignment

Finland’s entry into the European Monetary Union and the collapse of the Soviet Union
brought new and untested challenges to the Finnish economy. A severe recession required the
government to make cuts to many social programs. Meanwhile, funding for higher education
and research was increased, the polytechnic university system was created, and the Bologna
Accords were adopted—all in order to ensure Finland’s place in the post-industrial European
and global economy.

Key Dimensions

Provided below are a number of key dimensions to the education challenge.

This list is by no means exhaustive and exploration of additional dimen-
sions is encouraged.

D1 – The Education System

The Education system in Finland is an ongoing project. It developed

over time and has undergone significant reforms that continue to alter its
structure, content, and methodologies. Despite more recent changes, the
root or core mission of education has not been altered: to provide knowl-
edge and skills for all young people, and in doing so, to cultivate active
citizens and engaged participants in Finnish society. However, as Finland
faces new challenges within its borders and from abroad, the education
system must be renewed in order to remain current to meet these chal-
lenges—social, economic, and cultural.

D1.1 Structure of the Education System

The hierarchy behind the structure of the education system in Finland

separates the roles of the national and local government into two equally
important partners. At the upper level, the central government defines the
overall structure and goals for education nationwide, while at the lower
level, municipalities and local authorities implement the schemes.

152
 The Ministry of Education sets the general objectives of education and
drafts the legislation for the national government. Beneath it, the Finnish
National Board of Education writes the national core curriculum for basic
and secondary education, a regulatory framework that sets the main objec-
tives and working guidelines for education programs. It outlines the cur-
ricular goals, study contents, and evaluation criteria. At the more general
level, it defines broad “cross-curricular themes” as well as the principles and
objectives for student support. At the more detailed level, it determines the
minimum number of class-hours required by subject.

Locally, municipalities are responsible for the practical arrangements of

the school curriculum based on the larger framework and guidelines of the
national core curriculum. Each school establishes its own program of study
based on the national requirements while also accommodating local needs,
issues and concerns. Within the school, teachers are given the responsibil-
ity to choose their own methods and materials in developing their own
specific lesson plans.

Administration of basic and upper secondary education

President of the republic Parliament

Government

Ministry of Education

Finish Higher Local authorities and joint municipal authorities Other ministries
Education Evaluation Council schools and other educational institutions
National Board of Education Private education providers
Research Institutes
schools and other educational institutions
Center for International
Mobility, CIMO State-maintained educational institutions
Matriculation Examination
Board

Administration of the higher education system and research

President of the republic Parliament

Government

Other Science and

Ministry of Education
ministries technology
policy
council
Finish Higher Universities Research
Education Evaluation Institutes
Academy of Finland
Council
National Board of Education Research Institutes

Center for International Polytechnics

Mobility, CIMO

153
 D1.2 Student Pathways
0
1
Day Care Ministry of
2
(Pre-primary Education is
3 education) not respon-
4 sible
5
6
Pre-school Ministry of
7
Education is
8 Primary
not respon-
education /
9 sible
Single
10 structure
11 Compulsory full-time education
12
13
14
15
16
Additional Upper Upper Combined
17
year secondary secondary school and
18 general vocational workplace
19 courses
20 University Technical
(Tertiary college
21 education)
22
23
24
25 ( ≥3 years Compulsory work experience )

Organisation of the education system in Finland, 2008/09 Source

Eurydice.
Education in Finland is divided into three categories: Basic education,
secondary education, and tertiary or higher education. At all three levels,
education is guaranteed by the government: it is free and it is made acces-
sible to everyone.

Pre-Primary Education: Daycare and Preschool

Day care for young children between the ages one and six is voluntary,
but with government subsidies available. It is offered by some municipali-
ties and at private day care centres by region. Over 60% of one to six year-
olds in Finland take part.

Pre-primary education is free for all children in the year preceding

compulsory education. It is voluntary, but around 96% of all Finnish six
year-olds participate. Local authorities are responsible for arranging pre-
primary education, following guidelines set by the Ministry of Education
and the Early Childhood Education and Care group within the National
Institute for Health and Welfare. In some municipalities, pre-primary edu-
cation takes place at comprehensive school, but not in all cases.

154
 Basic Education: comprehensive school

Basic education in Finland is compulsory and takes place in compre-

hensive schools. Students begin first grade at age six or seven and leave with
a certificate of completion at the end of ninth grade at age fifteen or sixteen.
Students typically learn many different subjects from class teachers in the
first six years of comprehensive school and specific course material from
subject teachers in grades seven to nine. A small percentage of students
elect to enrol in a “tenth grade” either under academic probation or else for
an additional year of preparation for secondary school.

Secondary Education: General & vocational upper secondary schools

Secondary school is divided into two categories: general upper second-

ary school and vocational upper secondary school. Although students must
apply to secondary school, every student is guaranteed a place of study. Tui-
tion is free, but some of the costs for learning materials and travel become
the responsibility of the student.

General upper secondary school is the more academic route. Students

are not organized into grades, but instead are required to fulfil a minimum
seventy-five course credits, which is the equivalent of three years’ full-time
study. After completion of the curriculum, most graduates of general upper
secondary school will take the national matriculation examination, a cul-
tural rite of passage in Finland. Passing the examination guarantees a stu-
dent a place of study at university.

Vocational upper secondary school is the more practical skill-focused

route, which requires both classroom and on-the-job learning. The curricu-
lum, drafted in cooperation with business and industry, lasts three years’
full-time study and prepares students for one of fifty-three different voca-
tional qualifications within 119 different study programs. After completion
of the curriculum, students may earn a certificate of qualifications upon
demonstrating mastery in a given skill or trade.

Tertiary Education: University & Polytechnic

Higher Education in Finland is divided into two sectors: Universities

and polytechnic institutes. Tuition is free, and various forms of financial
aid are available to meet students’ living expenses.

Universities in Finland offer bachelors, masters, and post-doctorate

degrees. It is the more academic path in higher education with a long tra-
dition. The first university in Finland was founded by Queen Christina of
Sweden in Turku in 1640. Today, universities operate as “independent cor-
porations” under public law, or “foundations” under private law, designed
to “educate students to serve the country and humanity” through research.

155
 Polytechnics, also known as institutes of technology or universities of
applied science, were created in Finland in the 1990's. They are the prod-
uct of the consolidation of vocational colleges into multidisciplinary insti-
tutions of higher learning, with closer ties to industry and as a means to
foster regional economic development. Their creation, for the first time,
allowed graduates from vocational school the opportunity to earn higher
degrees. Polytechnic institutes offer bachelors and advanced degrees based
on applied research.

160.000
Total Students

140.000

120.000

100.000

80.000

60.000

40.000

20.000

0
University
Comprehen- General Vocational Polytechnic
sive School School School
0
Drop Outs

24 % 2,2%
800
5,2% Source
6,9% Statistic
Finland
8,9%

Total number of students and drop outs per sector of education 2007/2008

D1.3 Transitions and Applications

There are two primary transition points in the Finnish Education sys-
tem: the first, between comprehensive and upper secondary school, and
second, between secondary and tertiary education.

Students nearing the completion of comprehensive school must choose

between general or vocational upper secondary school. Career counselling
helps students weigh the options for their next move. Applying to either
general or vocational upper secondary school follows a single joint applica-
tion process. Students are able to file applications to multiple institutions
electronically, all at once, including a list of schools by ordered preference.
Some schools may also require an aptitude tests and an entrance examina-
tion, in addition to the application and academic transcript. Any student
who wishes to continue onto secondary school is guaranteed a place of
study; however, selectivity varies between schools, and not every student is
promised admissions to a specific school or school program.

156
 There is a similar process for the transition between upper secondary
and tertiary education. Although it is not a prescribed path, the “academic”
route is from general upper secondary school to a university while the more
“practical” route is from vocational upper secondary school to a polytech-
nic. Universities admit students independently, with differing sets of crite-
ria based on the school and individual academic program. In addition to
the application, students’ records in the matriculation examination and at
secondary school are often required. Polytechnics admit students through
a consolidated, online joint application system, requiring applicants to sub-
mit a list of schools and degree programs by ordered preference.

D1.4 Teachers: Quality and Training

The quality of education in Finland is often largely attributed to the

quality of its teachers. As a profession, teachers maintain high status and
widespread respect among the general population. Despite modest com-
pensation, becoming a teacher is highly competitive process. Applications
to education programs at university often require entrance exams, face-
to-face interviews, and occasionally psychological and performance-based
evaluations. The acceptance rate of in education programs is around one
in ten, adding to a certain level of prestige. Teacher-training programs are
research based and known for their rigor, covering theory and pedagogy in
lectures on campus and practical experience in classroom “laboratory” set-
tings. Prospective teachers earn a master’s degree in five years. Continuing
education for teachers is encouraged with a guaranteed minimum three
paid training days per year.

D1.5 Student Services & Special Education

There is a strong social responsibility component evident within

Finland’s education system. Part of this is supporting a student’s ability
to learn, in the form of free tuition, free school meals, routine medical
exams and transportation assistance for long-distance commutes. Another
dimension is access and availability to special needs education and reme-
dial instruction. With an emphasis on early detection and intervention for
students with learning disabilities, the goal is to include special needs stu-
dents in the mainstream, wherever possible. For those students who need
additional or more focused attention, placement in specific special needs
classes or special needs schools is another option. For other non-learning-
related needs, the education system is expected to draw on the wide net-
work of social services in order to meet and protect each student’s physical
and emotional well-being.

D1.6 Pre-school

Although compulsory education does not begin until a child reaches

age seven, all children in Finland are offered free pre-primary education
from the municipality and in conjunction with either daycare centres or

157
 the local comprehensive schools. The emphasis is on play, group participa-
tion, and basic preparation for comprehensive school, the following year.
The programs are offered at a minimum seven hundred hours per year, but
no more than four hours per day. Many children in pre-primary education
also participate in day care.

D1.7 Education Budget + Financing

Funds for all education sectors as well as student financial aid are
expected to rise in the next proposed budget.

2009 2010

Budget Budget Year over

proposal year change

million € million € %

General education 813 843 4

vocational training and education 638 665 4

Adult education 475 502 6

Higher education and research 2,574 2,595 1

Student financial aid 871 890 2 Source

Ministry of
Education
press release
Compared to other nations, in 2006 Finland spent less money per stu- 2009-9-15
dent and only slightly more as a % of GDP than the OECD average.

2006 Annual Expenditure Expenditure as % GDP

per student (USD)

Finland OECD Finland OECD

average average

Primary Education 5,900 6,400 2.4% 2.5%

secondary Education 7,500 8,000 1.4% 1.2%

Tertiary Education 12,800 12,300 1.7% 1.4%

All Education 8,000 7,800 5.8% 5.7% Source

OECD Educa-
*Tertiary Education Includes R & D tion at a
Glance 2009

158
 Financial Aid is available for students in upper secondary and Higher
Education. Kela, the Social Insurance Institution of Finland, administers
student aid. In 2008, 241,600 students benefitted from student financial aid
in following forms:

Study Grants 440.7 million EUR

Housing Supplements 241.9 million EUR

State Guarantees for Student Loans 23 million EUR

Student Loan Interest Allowance and Subsidies 1.7 million EUR

Student Loan Tax Deductions

Meal Subsidies 24.1 million EUR

159
 D2 – The Youth Population

The teenage years are a period of transition and experimentation. Social

peer pressure, physical and emotional changes, a desire to fit in and the
simultaneous pull to assert one’s independence—all these contribute and
complicate a teenager’s ability to navigate one’s course in school and in life.
Teenagers are examined here in the context of the family, health, and soci-
ety in order to gauge how young people fit into the greater social context,
how they view the world, and how they see themselves within it.

D2.1 Population At A Glance

The population of Finland is 5.3 million

➢ 59,530 births in 2008
➢ 21.8% of population is under the age 19
➢ 10.3% of the population is between the ages 7-16
[Primary Education]
➢ 3.8% of the population is between the ages 17-19
[secondary Education]

Finland is getting older

➢ In twenty years (2030), the population of Finland is projected to
increase 8.8%
➢ The younger population under the age fifteen will increase 6.3%
➢ The elderly population above the age sixty-five will increase 61.6%

Finland is becoming more diverse

➢ Since the year 2000…
➢ Foreign nationals living in Finland increased 55% to
143,000 foreigners
➢ Immigration increased 72% to 29,000 new immigrants
➢ Naturalized citizenship increased 124% to 6,700 new citizens

In the early 1990's, only 1% of the population in Finland was a foreigner.

Today, that number is closer to 3%.

Rank, by country of origin Foreign Immigrants New citizens Asylum

nationals Applicants

1 Russia Russia Russia Iraq

2 Estonia China Somalia Somalia

3 Sweden India Iraq Afghanistan

4 Somalia Somalia Iran Russia Source

Statistics Fin-
5 China Ukraine Sweden Iran land, Finnish
Immigration
Service

160
 Finland's student population reflects this increasing diversity

Mother tongue other than Finnish, Swedish or Sami (2008) Number of % share
students of student
population

Primary Education 17.200 3,10%

Upper secondary Education 16.600 4,30%

Source Tertiary Education 15.600 5,30%

National
Board of
Education,
Information Finland is becoming more educated
and Evalua-
tion Services ➢ In 2008, 65.5% of the population had a degree or educational quali-
fications
➢ 1.25 million students are enrolled in education leading to a qualifi-
cation or degree
➢ 22% population is currently a student

Distribution of Students, by school type (2008) Number Percent Total

Students

Comprehensive school 561.000 51,00%

General upper secondary school 114.200 10,40%

Vocational upper secondary school 127.300 11,60%

University 164.100 14,90%

Source Polytechnic institutes 132.500 12,10%

Education
Statistics, TOTAL 1.099.100 100,00%
Statistics
Finland

161
 D2.2 Families

The family is still the dominant social unit in Finland; however, con-
temporary family life has changed from the traditional nuclear family
model.

There are 1.4 million families in Finland

➢ 38.3% of the population is married
➢ 42% of families include at least one child under the age eighteen

In size of families is shrinking

➢ In 2008, the average family size was 2.81 down from 3.72 in 1950
➢ 24% of children under the age eighteen are only children

The single-child family is becoming more common

Among families with children under the age 18… 61.7% married couples

18.3% cohabitating / unmarried

17.4% single mothers

2.6% single fathers

Among families with children under the age 18… 43% one child only

38% two children

5% four or more children

Family structure in Finland has changed over the past century, with an
increase in divorce
➢ In 2008, there were 31,000 marriages and 13,400 divorces
➢ 20% of families with children under the age eighteen are single-
parent homes
➢ There are 54,000 “reconstituted” or combined families in Finland
10% of all children under the age eighteen belong to a “reconstituted
family”
➢ Finland supports working parents with maternity/paternity leave
benefits and childcare allowances.
➢ More young children are spending more time in childcare settings.
➢ In 2008, 63% of all one to six year-olds are enrolled in daycare, and
56,600 children, nearly the entire eligible age group, are enrolled in
pre-primary education

D2.3 Health

Similar to other developed nations, the Finnish population is becoming

a more sedentary and physically less active one with notable health conse-
quences.

162
 ➢ In 2008, 77% of all men and 74% of all women (between the ages
15-25) reportedly exercised two to three times per week
➢ Still, 20% of all men and 17% of all women are considered over-
weight
➢ And 6-10% of pre-primary education students are considered over-
weight

The most recent school Health Promotion Survey 2008 reveals health
habits and perceptions among Finnish teenagers.

Among 8th and 9th Grade students in 2008…

Health 17% believed themselves to be in poor health

16% saw themselves as overweight

30% ate junk food at least twice weekly

Sleep + Fatigue 25% went to sleep after 11pm

15% reported fatigue during school hours

Stress 31% reported frequent headaches

38% reported burdensome school workload

12% reported school “burnout”

10-13% reported moderate or serious depression

Adolescence is the period during which most young Finns experience

their first encounter with alcohol, tobacco and drugs.

Even as smoking and experimentation has declined among young people…

In 2005… 7.3% 14 year-olds …smoked cigarettes daily

23.3% 16 year-olds

33.9% 18 year-olds

Finns reportedly get drunk more often than other Europeans, even
though they drink alcohol less frequently. Finnish teens’ first episode of
drunkenness, on average, is at thirteen to fourteen years old, for both boys
and girls.
➢ 20% of young people report getting drunk almost every week
➢ 45% of 15-16 year-olds are reported to have been drunk in the previ-
ous twelve months
➢ Drug use in Finland is also in decline.
➢ Among 16-18 year-olds in 2005, 7% of boys and 6% of girls experi-
mented with drugs, most commonly with marijuana.
➢ On average, girls reach sexual maturity shortly before age thirteen.
Boys follow one to two years later.
➢ Unwanted teenage pregnancies are not common
➢ 19% of 8th and 9th graders in comprehensive schools complain they
received inadequate information in health courses on topics related
to sexual health

163
 100 % Finland
90 % 2007 All
Finland
80 %
2007 Boys
70 %
Finland
60 % 2007 Girls
50 %

40 %

30 %

20 %

10 %

0%
| | | | | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1. Cigarettes lifetime use 7. Any illicit drug lifetime use 12. Tranq./sedatives non-prescr.
2. Cigarettes use past 30 days 8. Cannabis lifetime use lifetime use 
3. Alcohol lifetime use 9. Cannabis use past 30 days 13. Alcohol and pills lifetime use
4. Alcohol use past 30 days 10. Any drug other than cannabis 14. Inhalants lifetime use
5. Drunk past 12 months lifetime use
6. Heavy episodic drinking 11. Ecstasy lifetime use
past 30 days

*The figures of the time series have been converted from FIM into euro by a fixed rate.

D2.4 Pressures

Teenagers experience a great deal of emotional and physical change

over a relatively brief period of time. Many of these changes are intensified
by the external pressures of daily life in contemporary culture. For teenag-
ers, pressures exist in many different forms—social pressure among one’s
peers, academic pressure in school, and even economic pressure to make
ends meet.

Social Pressure

Bullying in school has attracted significant attention in Finland in

recent years, especially in the aftermath of two separate school shootings
in 2007 and 2008. More attention is now being given to mental health and
how to prevent social exclusion among young people. Bullying, in the form
of physical and verbal intimidation between students takes place in and
outside the classroom and even online, now known as “cyber-bullying.”

In 2008… 8% of students in 8th and 9th Grade admitted being bullied

10% of boys were bullied once per week

6% of girls were bullied once per week

Boys typically face more physical harassment

Girls typically face more verbal cruelty, including gossip

KiVa school is a national bullying prevention program launched in

Finland’s comprehensive schools. Students in grades one through four par-
ticipate in classroom learning sessions. Teachers and parents receive anti-
bullying information and materials to heighten awareness and prevention.

164
 Academic Pressure

Even though Finnish students typically attend fewer hours in class and
have less homework than their European counterparts, academic anxiety
persists. Students fear the social stigma believed to accompany failure to
succeed.

➢ Matriculation examination: 7% failed nationwide in 2007

Economic Pressure

Young people are not entirely insulated from the pressures felt in wake
the global economic crisis and the increasingly competitive job market.
Higher degrees are understood to improve one’s employment prospects and
potential earnings; however extending one’s education beyond the average
length of time needed to complete a degree or qualification may also have
negative effects on one’s late entry into adulthood.

The job market is tight, especially for younger job-seekers:

Unemployment (Dec 2009) All 15-64 Youth 15-24

Total 8,30% 20,30%

Men 9,00% 22,40%

Source Women 7,60% 18,40%

Statistics
Finland, Despite financial aid, an increasing number of students eighteen and
Labour force
survey 2009, older are employed seek part-time work while pursuing an educational
December
qualification or degree:

Education by sector (2007) Students Employed % Students % Increase

students (2006-2007)

Upper secondary general education 48.359 15.286 31,6 1,8

Vocational education 212.322 131.862 62,1 3,5

Polytechnic education 133.264 77.925 58,5 2,7

University education 176.298 107.427 60,9 1,8

Source Total 570.243 332.500 58,3 2,7

Education
Statistics,
Statistics
Finland

165
 Government assistance to Finnish students (in the form of tuition,
housing, meals, healthcare, etc.) is generous. The benefits and lifestyle it
affords an individual can have the unwanted consequences
Students are taking longer to complete their degrees
Completed lower and higher university degrees in 4 years 32,50%

… in 8 years 63,80%

Completed first polytechnic degree in 4 years 39,40%

… in 7 years 69,70%
Source
Statistics Fin-
land, Progress
Young people are waiting longer before starting a family: of Studies
2007
Year 1981-85 2007

Mean Age for Marriage:

Men 26,2 30,6

Women 24,2 28,5

Mean age of mother at first birth: 25,4 28

Source
Finnish
Yearbook of
Population
D2.5 Cultural Institutions of Finnish Youth Experience Research
2009

Religious confirmation, the matriculation examination, and mandatory

military service are three institutions of Finnish culture that unify broad
segments of the youth population. Each one falls under a different aspect of
national culture and identity—religion, education and military—and yet all
three serve a meaningful purpose in creating a common and shared experi-
ence for many Finnish youth, lasting well into adulthood.

Confirmation

Religion plays a relatively minor role in contemporary life in Finland,

and yet 80.7% of entire nation identify themselves as members of the Evan-
gelical Lutheran Church of Finland. Confirmation is the religious a rite of
passage for a young Christian to declare one’s faith in the church and marks
his or her entry into adulthood and full membership into the local parish.
Families typically celebrate a child’s Confirmation much like a baptism,
graduation, or a wedding.

Confirmation training in Finland precedes the religious ceremony and

is open to everyone, no matter one’s family background. Finland boasts the
highest rate of participation for all countries where the Lutheran denom-
ination is observed, with 89% of all fifteen year-olds electing to partici-
pate. The curriculum is left largely to local parishes, but it requires eighty
hours of religious instruction and lasts a minimum six months. For most
young Finns, it is the lure of the seven-day camp experience, typically held
in the summer during the school vacation that is the primary motivation

166
for enrolment. Confirmation training camp is widely known to be a deep
bonding experience among teenagers, regardless of religious devotion or
intent to pursue an active relationship with the church in the future.

Matriculation

The matriculation examination is the culmination point at the comple-

tion of the general upper secondary school curriculum. The examination
is administered in four parts over a six-hour time period and is offered
twice per calendar year. Students elect four different academic subjects in
advance, one of which must include a test of one’s “mother tongue.” A pass-
ing mark, especially with honours, guarantees the student a place at uni-
versity. A failing grade in any one test subject is an automatic failure for the
entire exam.

Matriculation is a second cultural rite of passage among Finnish youth,

on par with a high school graduation elsewhere around the world. It is part
of a long tradition inherited from Sweden and predates the Finland’s own
independence by sixty-five years. The examination has been updated to
fit the contemporary curriculum and is no longer a general education test
requiring mastery of Latin. Matriculation is steeped is still steeped in old
customs, from the Latin grades awarded to the symbolic white student cap
given to each successful young scholar. On Vappu, the May 1st holiday that
signals the beginning of summer each year, the parks and avenues across
Finland are filled with graduates proudly sporting their white caps at pic-
nics and in public, a status symbol worn atop one’s head for all to see.

167
 Conscription

All men are required to complete military service in Finland by law.

Many view conscription as a cultural badge of honour. It is a duty to the
state, to those who sacrificed their lives in World War II, and to those who
rebuilt and protected the nation in its aftermath. Young men are drafted
at nineteen and must complete their 6-12 month obligation before reach-
ing twenty-nine. Most elect to complete their service in their early twen-
ties, often before enrolling in higher education. Eighty percent of con-
scripts elect the military option while less than 10% choose civilian service.
Another 10% are declared unfit, based on physical or emotional criteria,
and are dismissed from service at the start.

In practice, the military offers conscripts thorough physical training,

leadership opportunities, and exposure to specialized technical skills. In
addition, many young men see their successful completion of service, with
discharge report in hand, as an added benefit when applying for work or
higher education degree programs. Deep friendships and a wide social
network of contacts and associates typically form during military service.
These bonds often endure long after a conscript’s return to civilian life.

168
 D3 – The Dropouts
60%

50%

40%

30%

20%

10%

0%
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Poland
Slovakia
EU-27 countries
Croatia
Czech Republic
Slovenia

Switzerland
Lithuania
Finland
Austria
Sweden
Hungary
Germany
Belgium
Netherlands
Ireland
France

Denmark
Bulgaria

Luxembourg
Romania

Cyprus

Malta
United Kingdom
Macedonia
Greece

Latvia
Estonia
Norway
Italy
Iceland
Spain
Turkey

Portugal
Male

Female

Source Percentage of the population aged 18-24 with at most a lower secondary
EuroStat. education and not currently in further educational training in 2007.
Data for
Estonian
females not
available.
The perils of early discontinuation in education are usually argued from
an economic, social or public health perspective. It is important to try and
identify who the dropouts are, how many there are, and at what stage they
leave education. A large portion elects to discontinue their education after
completing a degree and before starting a next one while another portion
drops out of education mid-stream. Dropouts are best understood against
the backdrop of a changing economic and social landscape within Finland.
Some of the data begins to reveal inequalities and discrepancies within
Finnish education. These inequalities point to conditions latent within the
system that contribute to early discontinuation.

It may be important to consider why a dropout bias persists in Finland

and to ask if it really is necessary for all Finnish students to pursue higher
education or even to complete formal secondary education. Might there
be room to consider alternative, non-traditional paths for young people to
become active participants in the Finnish labour market and in Finnish
society?

D3.1 Discontinuation

Dropouts fall into two sub-categories: Those who opt not to continue
to the next level of education and those who leave school before completing
their degree or qualifications.

169
 Each year, about 12,500 young people are in danger of remaining outside
the public education system. They complete basic education with poor
grades, dropout from basic education, do not apply for upper second-
ary education or drop out during the first year. There are an increasing
number of students who have completed basic education but who lack the
knowledge and skills required in future society, the world of work and a
high-quality life. Problems can be seen in their insecurity in selecting the
educational route or field and in dropout rates.
From Education and Research 2007-2015: Development Plan

Nearly all children in Finland complete the compulsory nine years of

comprehensive school. In 2008 a large majority, or 92.5% of all students,
continued directly to upper secondary school. 3,600 students (or 5.6%)
elected not to continue to the next level of education. 1,300 students (or
2.0%) enrolled in an additional tenth grade in comprehensive school, a
“second chance” to master a poor or failing subject and have more time to
prepare for upper secondary school.
Students %

Completers of 9th grade of comprehensive school 64,740 100

Continued studies in year of graduation

In upper secondary general education 32,740 50.6

In upper secondary vocational education 27,100 41.9

In 10th grade of comprehensive school 1,300 2

Did not continue 3,600 5.6

Source: Statistics Finland, Education Statistics

There is a significantly larger fall-off or discontinuation among stu-

dents at the completion of general upper secondary school. Even among
the achievers, or the 32,900 students who passed the matriculation exami-
nation in 2008, a majority of them did not continue directly onto higher
education.
Students %

Completers of the matriculation examination 32,900 100%

Continued studies in year of graduation

...In upper secondary vocational school 1,400 4.2%

...In polytechnic education 6,000 18.5%

...In university education 6,300 19.1%

...Did not continue studies 19,200 58.2% Source

Statistics
Finland,
Education
There are a variety of reasons students may choose not to continue Statistics
directly onto higher education. One segment of this group simply wants
a break, especially after all the preparation for the matriculation examina-
tion. Some will travel while others will take the time to weigh academic or

170
 employment options. A second large segment of young men will elect to
fulfil their military service requirement before pursuing higher education
or work. A third group will use the time to prepare for or retake university
or polytechnic entrance exams, especially those who previously missed the
cutoff for an especially competitive program or a highly selective school.

Even as vocational upper secondary school has steadily increased in

popularity among graduates of comprehensive schools over recent years,
this sector also saw the largest proportion of students who discontinued
their studies. More students in vocational upper secondary school, poly-
technic institutes, and universities quit school than switched to a different
sector. However, trends show that more students transfer into the practical
and applied qualifications programs than shift to the general or more aca-
demic programs.

Sector of education Students Discontin- Changed Discontinued

ued in own sector of completely
(academic year 2006/2007) sector of education
education

General upper secondary school 4,800 4.20% 2.10% 2.00%

Vocational upper secondary school 27,200 10.20% 1.00% 9.20%

Polytechnic education 12,000 9.00% 2.30% 6.80%

University education 9,900 5.60% 0.80% 4.80%

Source Total 53,900 7.30% 1.50% 5.80%

Statistics
Finland,
Education
Statistics

D3.2 Economics and Dropouts

One of the primary incentives behind the policy to decrease and elimi-
nate the number of dropouts is an economic rationale.

More education translates into higher earnings

Earnings by Level of Education, 2007 EUR/month

Primary Education 2.392

Secondary Education 2.431

Undergraduate Tertiary Education 3.243

Graduate Tertiary Education 3.972

Source Post-graduate Tertiary Education 4.462

Statistics
Finland,
Structure of
Earnings Higher incomes not only have added benefits for individuals or fami-
lies, they also serve to bolster the national balance sheet with added revenue
in taxes.

171
 More education is correlated with higher levels of employment, as evi-
denced in the immediate transition to working life, by level of education…

One year after completing Employed Unemployed Full-time

student
A degree or qualification,

By level of education in 2007

General upper secondary school 44,10% 1,90% 38,40%

Upper secondary vocational school 74,50% 9,30% 7,10%

Polytechnic Degree (Bachelors) 88,70% 4,50% 3,40%

University Degree (Bachelors) 74,30% 1,60% 22,50%

University Degree (Masters) 87,70% 3,70% 4,60%

Licentiate Degree 86,00% 3,20% 7,50%

Doctorate Degree 87,40% 1,60% 1,60% Source

Statistics Fin-
…and later in life, among 25-29 year olds, by level of education. land, Educa-
tion Statistics
(2009-3-25)

Unemployed, by level of education (2007) Finland EU-27

Primary Education 17,10% 15,20%

upper secondary Education 8,50% 8,20%

Higher Education 4,40% 6,30% Source

Eurostat
“Youth in
Unemployment insurance benefits are not available to young dropouts Europe”
in Finland. A person must be at least eighteen years old and show proof (112)

that he or she has worked for ten months within the preceding two years in
order to be eligible for a government stipend.

D3.3 Health and Dropouts

The Finnish National Institute for Health and Welfare (KTL), in its
2006 summary Health in Finland draws a connection between poor school
performance and discontinuation with poor health and health habits later
in life.
➢ Higher rates of smoking
➢ Higher rates of binge drinking
➢ Poor oral hygiene

The differentiation of health behaviour in adolescents begins at ages thir-

teen to sixteen, at the latest. Those who finish their schooling early and
those who opt for a vocational training path, drink more often and, in
general, lead a less healthy life than their age peers who continue to upper
secondary school [Health in Finland, 117]

172
 D3.4 Equality but not Equal

There are more opportunities for education in Finland today than in

the past. The creation of comprehensive schools, upper secondary voca-
tional schools, and the polytechnics removed the “track system” and “dead
end” paths that used to exist not long ago. However, discrepancies that arise
due to variations among schools and unequal access continue to persist.

All school-aged children are guaranteed a place in school; however, the

application system favours students with greater means. Children from
families of parents with higher levels of education, that can afford tutors
or supplementary learning materials, and that are able to commute greater
distances beyond the nearest school possess certain advantages over oth-
ers. Although equal in principle, Finland’s education system is structured
in two tiers. Vocational upper secondary school is viewed as the second or
lesser option when compared to the academic route. A vocational education
is seen to offer more limited prospects for higher education and mediocre
job opportunities. The higher status general upper secondary school allows
for greater flexibility to enter either university or a polytechnic education.

Some students who graduate from general upper secondary school

enrol in a vocational program afterwards. Known as the “double degree,”
students use it to improve their applications to more selective higher educa-
tion degree programs.

Government Financial Aid grants and subsidies do not take into

account one’s family’s ability to support a student. The system does not dif-
ferentiate cost of living expenses between more and less expensive regions
in the country, meaning that acceptance to a top choice academic program
could result in greater economic hardship. Lower-income students often
rely more heavily on government-backed loans for their education, taking
on greater risk in the face of uncertain employment prospects years later,
after graduation.

A discrepancy between gender-based performance appears to be on the

rise in Finland. When comparing male and female students in terms of
enrolment in higher education, rates of continuation, matriculation exami-
nation results, and degrees earned, the data shows that Finnish males are
falling behind and dropping out of school at higher rates.

173
 All Male Female

Completers of 9th grade of comprehensive school (2008) 64.700 33.000 31.700

Continued studies in year of graduation

In upper secondary general education 50% 42% 59%

In upper secondary vocational education 42% 50% 33%

In 10th grade of comprehensive school 2% 2% 2%

Did not continue studies 6% 6% 6%

Source
Statistics
Finland,
“Direct transition to further studies of completers of the 9th grade of Education
Statistics
comprehensive school” and “Direct transition to further studies of passers
of the matriculation examination”

All Male Female

Passers of the matriculation examination (2008) 32.900 14.100 18.800

Continued studies in year of graduation

In upper secondary vocational education 4% 2% 6%

In polytechnic education 19% 17% 19%

In university education 19% 22% 17%

Did not continue studies 58% 59% 58%

Source
Statistics
Students with learning disabilities already face greater challenges in Finland,
Education
education, and the overall number of students in special education has Statistics
increased over the last decade. Boys outnumber girls in special education
by a ratio of nearly 2:1.

Comprehensive school Students % Students % Boys % Girls

Transferred to Special Education (2008) 47.300 8,40% 68,10% 31,90%

Part-time Special Education (2007) 126.300 22,10% 60,60% 39,40%

Source
Education
Statistics,
Statistics
Finland

174
 D3.5 Celebrity Dropouts

The cultural discourse celebrates winners. Famous dropouts, to name

category, are most often individuals who strike out on a different path. They
become fascinating subjects esteemed for their courage, determination, and
willingness to be unconventional. Many are in creative fields, such as art-
ists or musicians, or have unpredictable and demanding workloads, such as
actors or athletes. Some are so driven by an entrepreneurial spirit they even
become global leaders in industry and business.

Sir Richard Branson, British billionaire and founder of the Virgin Group,
is a celebrated high school dropout who took a different path toward suc-
cess. He launched his first venture, a student magazine at age sixteen,
and has since gone on to create global empire with businesses in media,
retail, financial services, mobile telecommunications, and the airline
industry. Branson is celebrated for his flamboyance in marketing the
Virgin brand, his willingness to take big financial risks, and his appetite
to compete against larger and more powerful business interests. Branson
is listed as the 261st richest person according to Forbes magazine's 2009
list of billionaires, with an estimated net worth of approximately US$2.5
billion.

175
D4 – Differentiated Learning:
The Brain & Learning Environments

Intelligence, maturity, aptitude, skills, learning styles, study habits—

these are a few of the characteristics assessed in education and applied in
the classroom setting. The brain lies at the centre of these cognitive func-
tions and behaviour and plays an important role in how a person learns.
For this reason, it is important to consider the role brain research plays in
classrooms for educators. New findings in neuroscience continue to reveal a
wealth of information regarding how the brain the functions, its structure,
and how it continues to develop through adolescence.

Parallel to this flood of scientific research are new techniques for han-
dling different types of learners based on the notion of different and multi-
ple intelligences. In full recognition that each individual does not possess
the same level of intelligence or aptitude for every skill, educators are still
focusing on how best to connect with all the different kinds of learners.

As for dropouts, they may be seen to fall into two categories: Com-
mon losers and rare winners. Academically unfit, undisciplined, or unmo-
tivated on the one hand, or else too smart and too driven to be constrained
by school’s regulations and limitations. In both cases, traditional learning
environments do not appear to serve either extreme well. Rather than con-
cede and admit that education cannot reach each individual or compro-
mise standards to serve a lowest common denominator, why not consider
how education can be made more flexible and create differentiated learning
environments for all individuals and all types of learners, no matter how
eccentric or extreme.

D4.1 The Brain

In the 2006 PISA results, fifteen year-old girls in Finland out-scored

boys in reading by fifty-one test points. In fact, in all OECD countries, girls
scored higher than boys, with an average spread of thirty-eight points. Fin-
land’s fifty-one point spread was the second largest among all PISA coun-
tries (after Greece), which prompts two questions: Is this difference a matter
of culture and environment or are the brains of boys and girls different?

Some will argue one side, that the test results reflect a simple fact that
girls read more than boys and are culturally predisposed to do so. In Fin-
land, this is evident whether one looks for statistical evidence in library
usage or observes children’s leisure habits in the field. Others will argue
that there are physiological differences in the brain and brain development
of boys and girls. These differences begin to explain why girls develop a
capacity for language and speech at a younger age.

Dr. Leonard Sax falls into the latter category and attracted widespread
attention for advocating single-sex education in U.S. public schools. He

176
supports his argument based on a view that boys and girls learn differ-
ently because their brains develop differently. He draws from a wide array
of scientific research that may give reason as to why boys and girls observe,
behave, and communicate in fundamentally distinctive ways. According to
Sax, boys and girls should be taught separately, using prescribed techniques
geared toward each gender’s innate strengths.

Brain-based education is the common term used for the adaptation

of scientific brain research directly to the classroom. Over the last twenty
years, the tools used to study the brain, especially functional magnetic
resonance imaging (fMRI), have significantly improved. Neuroscientists
have been able to map the brain with greater accuracy, higher resolution,
and under different conditions and stimuli. This has led to an increase in
published findings regarding the anatomy and development of the brain. In
recent years, many popular magazine articles and books in the mainstream
press have circulated “best practices” for the classroom based on the latest
scientific “evidence.” Critics have cautioned that these amount to unau-
thorised oversimplifications of controlled scientific methods. Discoveries
at the neurological and anatomical level, they argue, cannot necessarily be
applied at the behavioural level for students.

In 2007, the OECD published "Understanding the Brain: The Birth of

a Learning Science," acknowledging the importance of brain research for
education. It is a primer for educators to consider how brain science may
one day affect classroom pedagogy, based on more recent discoveries in the
physiology and development of the brain.

Scientists are investing more to learn about brain development among

adolescents, with a heavy focus on the prefrontal cortex, the area responsi-
ble for “executive function.” It is the locus for decision-making, planning,
complex thought, and weighing risks versus rewards. The onset of puberty
delivers a tremendous growth spurt within it, followed by a prolonged
period of “pruning” through adolescence until the age of twenty. Mood
swings and impulsive, thrill-seeking behaviour occur with greater fre-
quency during this time in part, because the brain has yet to fully develop.
As young people’s brains’ mature, these traits subside.

D4.2 Differentiated Intelligence

Intelligence, what it is, and how it is measured is an area of research

filled with competing theories and applications for learning. Traditional
views of intelligence saw it as something fixed, a quantity that could be
measured, predicted and even compared based on the size, shape or weight
of a person’s brain. The IQ test evolved from this tradition, holding to the
belief that intelligence was static, that a person was born with a finite capac-
ity that would not change with age or experience.

177
 More recent theories of cognitive development believe intelligence
to be more nuanced and more fluid. Traditional metrics and evaluations
failed to recognize other forms of cognition such as analytic, creative, and
practical forms of intelligence. A leading, alternative model for intelligence
is Howard Gardner’s theory of Multiple Intelligences (MI), which under-
stands intelligence as something far more complex than what can be meas-
ured in an IQ test. MI views intelligence as “a series of relatively separate
faculties, with only loose and non-predictable relations with one another.”
Gardner identifies eight distinct intelligences:
1. Linguistic
2. Logic-Mathematical
3. Musical
4. Spatial
5. Bodily Kinesthetic
6. Interpersonal
7. Intra-personal
8. Naturalist

Each individual possesses a unique and dynamic intelligence profile

or a combination of intelligences that change over time. Intelligence, he
believes, is culturally defined, expressed through actions and develops with
experience.

Multiple Intelligences theory demands a different approach to assess

students in the classroom. Students who are thought to under-perform in
the traditional setting may actually be deprived of the learning opportu-
nities they need to more fully express the intelligences they possess. MI
requires a much less rigid view toward learning and requires greater flex-
ibility for different modes of learning, in different environments, and for
all types of learners.

D4.3 Differentiated Learning Environments

Not all students are suited to learn best in the traditional classroom,
seated at a desk, reciting a lesson, observing a demonstration, or following
along in a textbook. Just as one may entertain the possibility of different
types of intelligence—and even the idea of Multiple Intelligences—one may
also appreciate that there are different types of learners, each one suited to
a different learning environment.

Some students thrive in a classroom. Some students learn better in

smaller groups, in a more collaborative atmosphere, drawing on others’
ideas and input. Still others learn best one-on-one or even with a book,
all by oneself. Students who find inspiration in art or music class may not
necessarily be the ones who look forward to sports or organized games in
physical education.

178
 There are those who learn well when following a teacher’s lesson plan
adhering to a pace set by the group. There are others learn better following
an individualized plan, more slowly or more rapidly, at one’s own pace.

Finding the right fit or the optimal learning environment is crucial to

sustain the interest and motivation of students for the learning process.
Forcing students to endure a lesson in a way that cannot be absorbed, due
to the environment or mode in which is being taught, is a waste of valuable
resources and precious time.

A non-definitive list of schooling options

➢ Home-schooling
➢ Private schools
➢ Single-sex schools
➢ Religious/Parochial schools
➢ Magnet schools (arts, math/science, language immersion)
➢ Boarding schools
➢ Military academies
➢ Alternative schools (Montessori, Waldorf)
➢ _________________?

179
 D5 – Culture of Youth

Teenage culture in Finland is an entertainment free-for-all, a mix of

messages and media, advertising and content, speed and information. Cul-
ture today is built around communication, interactivity, and virtual real-
ity—static and moving words and images. The media is embedded in con-
sumer culture, a driving force behind materialism, celebrity, and reality TV.

D5.1 TV

TV Saturation

Television endures as the primary mass-media outlet for entertainment

and information in Finland.
➢ 92% of Finnish households own at least one television
➢ 37% of Finnish households own at least two televisions
➢ 10% of Finnish households own at least three televisions
➢ Average family size in Finland: 2.8

TV Consumption

Television reaches nearly the entire youth population. In 2009, among

Finnish youth between the ages 10-24 years 823,000 or 85% watched televi-
sion weekly.

Daily use 10-24 year-olds

Total 1h 32min

Men 1h 18min

Women 1h 43min
Source
Finnpanel

TV Content

Besides the popularity of nationally televised special events, major

sporting championships, and breaking news, Finnish youth are hooked on
a heavy dose of Finnish and imported versions of reality TV, comedies and
drama.

Top Television Shows among youth 10-24 year-olds, by genre

Finnish Reality TV Reality TV (US) Drama/Comedy (US)

Duudsonit (The Dudesons) The Amazing Race House

Dilli (The Apprentice) American Idol The Simpsons

Big Brother Hell’s Kitchen Gossip Girl

Talent Suomi (Finland’s Got Talent) Survivor CSI

Huippumalli haussa (Finland’s Next Top Wipeout Desperate Housewives

Model) Source
Finnpanel

180
 90%
Home PC
80%
Internet connection
70% Broadband

60%

50%

40%

30%

20%

10%

0%
| | | | | | | | |
2000 2001 2002 2003 2004 2005 2006 2007 2008

Source Frequency of information technology equipment in housholds, 2000-2008

OSF: Statis-
tics Finland,
Consumer
survey
D5.2 Internet

Internet use among teenagers (age 15-19) is universal, having reached

99% saturation in 2007. Access is widely available throughout the day on
computers at home, in the classroom and public libraries, and on hand-held
mobile devices.

High-speed internet is a legal right in Finland. Legislation passed in

June 2009 requires internet service providers must guarantee bandwidth at
a minimum 1 MBps with the goal set for 100 MBps by 2015.

The most common uses for the internet include e-mail, online research,
shopping and banking. Many of the social and more interactive tasks skew
heavily toward younger ages.
% Internet Users, by task 16-29 yrs 30-49 yrs 50-74 yrs

Instant messaging 69% 28% 12%

Downloading music 64% 37% 16%

Chatting online 54% 26% 11%

Source On-line gaming 31% 8% 4%

Statistics
Finland, “Use
of information
and com-
munications
D5.3 Social Networking & Virtual Experience
technology
2008”
Social networks draw a large audience among Finnish teenagers. IRC-
Galleria, which grew from a modest photo-sharing website, is now the most
widely used online social network in Finland. Much like Facebook, users
post photos, add comments, chat with a network of friends and make new
friends on line. Its popularity and reach makes IRC-Galleria the largest
form of “youth media” in the country, surpassing print, radio and televi-
sion.

181
 ➢ 74% of 15-24 year use the site on a weekly basis
➢ 500,000 registered users spend thirty minutes, on average, daily
➢ 40% of these users are under the age 18
(Source: Sulake Corporation Oy)

Habbo, another Finnish website creation, takes social networking into

the virtual realm, and is a network aimed directly at teenagers. Registered
users create online characters to interact with others and make friends in
a virtual hotel environment—at the pool, in a café, or in privately created
rooms. In the Habbo Hotel, they can chat, play games, join clubs, and buy
goods to use in this virtual world. There is corporate advertising in the
Habbo environment, on billboards in the virtual landscape. Users can
buy virtual goods and furnishings paid for with Habbo credits which are
backed by real currency.
➢ 162 million users worldwide, in 31 different local communities
➢ 65% of Habbo users are 13-16 years old
➢ Average visit is forty-three minutes per session
(Source: Sulake Corporation Oy)

Popularity of these online communities has attracted the attention of

youth workers and government programs aimed to protect the safety and
welfare young people from cyber-bullying, sexual harassment, and poten-
tially harmful real-world encounters.

Netari is an initiative that places youth workers online, inside the same
virtual communities where they can best reach their target audience. Using
the existing platforms of IRC-Galleria and Habbo, they organize educa-
tional outreach programs and sponsor virtual gatherings, parties, and
events.

The Helsinki Police has also adopted this strategy, bringing commu-
nity outreach and a police presence to the virtual street. Three detectives
have created genuine police profiles on IRC-Galleria and Facebook so they
can participate in the online space. They can post comments in raucous
chatrooms to quiet escalating situations of cyber-bullying and intimida-
tion. They can assist troubled teens by putting them in contact with social
workers and informing their parents. In some instances, they have received
useful tips online for help solving real crimes in the city.

D5.4 Video Games

Video gaming is a growth entertainment industry and a popular pas-

time in Finland, especially among its youth. Games now cross many plat-
forms—the personal computer, the dedicated game console, the internet
and mobile devices. Gamers are drawn to the screen for entertainment,
social interaction, escape and relaxation. Concerns surrounding video
games include additive or excessive use and the graphic depictions of vio-

182
 lence. Some question possible detrimental effects gaming may have on
young people’s health, sociability, and performance in school.

Video gamers in Finland tend to be younger and male. The average age
of the Finnish “active gamer” is thirty years-old. Thirty-six percent of the
population under thirty is an active gamer.

Reported time spent playing games, weekly

<1 hour 14%

1-5 hours 50%

6-10 hours 24%

11-15 hours 6%

>15 hours 6%
Source
Nielsen
Games, 2008
Demographic Breakdown

16-19 38%

20-24 43%

25-29 29%

30-39 25%

40-49 20%

50+ 4%

Male 25%

Female 13%

Parent 31%

Non-Parent 14%
Source
Nielsen
Games: Video
Gamers in Title Category Circulation % under 19
Europe – 2008
(p. 28) Soundi Music

Cosmopolitan (Finnish) Fashion 256000 41%

Image Fashion

Suosikki teen culture 207000 67%

Demi teen culture

Pelti Gaming

Urheilulehti Sports

183
 D5.5 Media, Sports & Celebrity

Media consumption is rapidly moving closer to online platforms and

away from traditional paper media. Popular magazines still capture a sig-
nificant portion of Finnish youth.

Professional sports and sports coverage is an area of great interest

among young Finns, especially among young men.

Ice hockey is extremely popular in Finland, which currently ranks

fourth in the International Hockey Federation. The May 4th, 2009 world
championship game against Canada was the third most watched television
event in Finland for all of that year. Finnish hockey fans keep close tabs on
Finns playing overseas in other professional leagues such as in the NHL.

Finland’s national football team has yet to qualify for a place in the
World Cup or European Cup championship, and still the sport remains
popular, with a domestic professional league that includes fourteen clubs.

Auto-racing, including both Formula One and Rally Car, is an inter-

national sport where Finnish athletes rank at the top, attracting a large
and enthusiastic following. The annual Rally Finland, held each summer in
Central Finland near Jyväskylä, attracts half a million spectators, making it
the largest organized public event in all the Nordic countries.

Celebrity

Celebrity, and the nature of fame, has evolved as media and media con-
sumption have changed. Finland has embraced the global media market.
The films, television shows, popular music, tabloid magazines, and even
books available in Finland today are part of a much broader cultural land-
scape. Celebrities in Finland are often the same people who are celebrities
elsewhere—in England, the United States, or even in China. Reality televi-
sion and the rise of YouTube, for better or worse, have rewritten many of the
rules of what is expected of a person in order to become famous. The lines
between fame and infamy are blurring as the fascination and the desire for
celebrity status is increasingly high.

This is a generation that sees the online space not as a separate place
you go but as a continuation of their existence. The worrisome stuff…has
to do with a broader cultural framing that gets played out online—and
online in a magnified way. Because if you think of a lot of the internet—it
scales everything….A certain kind of celebrity culture has been perpetu-
ated through the online space because you think you have access. And
the fact is, it’s not a question of “Fifteen minutes of fame” online, it’s a
question of being “ famous amongst fifteen.”

Danah Boyd, “Internet Famous” from Digital Nation (Frontline, PBS)

184
 D6 – Finland Education Scorecard:

FINLAND OECD

Average class size (primary education) 19,8 21,4

Student-Teacher ratio (primary education) 15:01 16:01

Student-Teacher ratio (secondary education) 13.1:1 13:01

Hours in Classroom per year, Age 15 856 921

Computers per class/student 1:13

GDP share of education 5,80% 5,70%

Teacher Starting Salary 28,201USD 28,687USD

Teacher Salary after 15 years 36,578USD 39,007USD

Source Average Duration of Tertiary Studies 4.85 years 4.11 years

Education at
a Glance 2009
(OECD)

185
futures of finland

There's no way to predict the future, but by using scenarios we can make an
educated guess. In the following pages is a brief glimpse of what Finland may
look like in 2020 and 2050. As a projection, this is meant to act as a rough
guide for what we may reasonably expect.

Finland 2020 – At a Glance

Population1

➢ 5.6 million, evenly distributed between women and men

➢ Age distribution (in years)
0-14: 17%
15-64: 60%
65 +: 23%
➢ Population by age and gender 2020, projection 2009 2

➢ Natural population growth: 9,900.

➢ Net immigration: 20,000 (immigration: 36,000 persons, emigration:
16,000 persons).
➢ E migration mainly to EU and other European countries, North
America and Asia.
➢ O ver one million Finns live or have settled abroad.
➢ Some 1.1 million live in the Helsinki area, which includes Espoo and
Vantaa.
➢ City populations:
Helsinki 620,000
Espoo 280,000
Tampere 230,000
Vantaa 220,000
Turku 180,000
Oulu 150,000
Jyväskylä 140,000
➢ Some 80% of the population live in cities
➢ Commuting times and distance have continued to rise and the coun-
try’s average is now approximately 18 kilometres. Due to the dis-
tances, the majority of commuters use private cars.
➢ Life expectancy: men 79 years, women 84 years.
➢ Employment rate: 72%; unemployment rate: 6%.
➢ Foreigners 4%, most from Russia, Estonia, Sweden and Somalia; 25%
of Helsinki region dwellers have an immigrant background.
➢ Religion: Lutheran 75%; Orthodox 1%; Other 2%; some 22% do not
belong to a religious group.
➢ Languages: Finnish speaking 89%; Swedish speakers 5%; foreign lan-
guage speakers 6%.
➢ Major health challenges: alcohol abuse, obesity and memory-related
illnesses.

186
 ➢ E ducation: 29% of young Finns have a university of other tertiary
qualification; the share of women with a university degree or equiva-
lent is much higher than men.

Economy

➢ Finland is highly integrated in the global economy; international

trade is a third of GDP.
➢ Finns take approximately 6.8 million trips abroad, of which business
trips account for some 20%.
➢ Economic structure (employed persons by industry):
35% public and other services
18% trade, hotels and restaurants
18% financial and business services
12% manufacturing
7% transport and communications
7% construction
3% agriculture and forestry

1. Most of these figures are based on the estimations of Statistics Finland

2. Statistics Finland

187
Finland 2020 – Slow recovery from 2010

The traditional investment-intensive industry has slowly diminished in

Finland. Instead of electronics, machinery, and pulp and paper, the main
exports are products from knowledge and innovation-intensive businesses,
like biosciences, design, textiles, IT and education. Many companies are
geographically scattered around the world according to the availability of
skilled labour. Although Finland has succeeded quite well in transforming
its economic production after the 2010 recession, the national economy is
now only slowly recovering its balance and annual GDP growth is 1-2%. In
cities, there are large empty business properties awaiting alternative uses.

The service sector is still the major employer. Municipal services have
been further privatised and the demand for services has grown. The ageing
population needs more health services and to accommodate the need for
nurses, educated nurses from Asia are brought to Finland. Finnish nursing
schools offer programmes for nursing students from outside the EU that
qualify for jobs in EU member countries. Since depleting natural resources
have raised the prices of consumption goods, demand for other kinds of
commodities has increased: IT, cultural services, maintenance, tailoring
and dressmaking, especially from recycled materials, and design.

Politically, social democratic values are back after all the free market
and liberalism ‘hype’ around the change of the millennium, especially
equality. Although the economic situation has been tough, keeping up the
welfare system has been the priority of most political parties. The social
security system has been transformed, and instead of a complicated sys-
tem of various social benefits all citizens receive basic income. Since basic
income does not depend on other income, there is less of a poverty trap
there used to be, and self-employment becomes more attractive and com-
mon. This has led to a significant attitude change and empowerment of the
unemployed; there is a notable increase in small-scale businesses, handi-
crafts shops and community arts projects. The Internet and social media
have the main role in channelling the activities of civil society.

The continuous economic insecurity has increased the role of traditions

and conservative values of the citizens. Most Finns are still members of
the evangelical Lutheran church, although participation in weekly serv-
ices continues to decrease. New types of religious activity are on the rise,
e.g. Volunteering in church charities and awareness-raising campaigns on
Christian values, e.g. ‘no to abortion’. This has also influenced the political
spectrum; the Christian Democratic Party, which used to be quite small
in 2010, has gained more seats in parliament, and the centre-right wing
parties have turned more to the right. Similarly Muslim communities have
grown culturally and politically louder, and now there are more conflicts
between religious and ethnical groups than there have been for decades.
However, conservative, fundamental religious and racist views have stayed
in the minority compared to the liberal majority.

188
 Immigration, both legal and illegal, has increased. The foreign work-
force is more in demand: low-income blue-collar jobs are populated by
foreign workers from Africa and Asia, whereas highly-educated special-
ists are employed from all over the world—although most still come from
neighbouring countries. Illegal immigrants arrive especially from central
and southern Asia, due to the increased political instability in the regions.
Russian is the most commonly spoken foreign language in the Helsinki
region and there have been discussions about abolishing the status of Swed-
ish as the second official language. One or two new orthodox churches and
mosques have been built in the metropolitan area.

The average level of income has decreased in Finland due to several

years of economic stagnation and slow growth; further, differences in
income distribution have decreased slightly compared to 2010. The higher
middle class has somewhat decreased in numbers and changes in taxation
have favoured citizens with low income.

189
Finland 2050 – At a glance

Population

➢ 6.1 million, evenly distributed between women and men

➢ Age distribution (in years)
0-14: 16%
15-64: 57%
65 +: 28%
➢ Natural population growth: -4.000 persons
Immigration: 28.000 persons
Emigration: 13.000 persons
Net immigration: 15.000 persons
➢ Some 1.3 million live in the Helsinki area, which includes Espoo and
Vantaa. Other major cities: Tampere, Turku & Oulu.
➢ Population in major cities (Helsinki area, Tampere, Turku &
Jyväskylä): 35%.
➢ Working population decreasing; number of retired persons remains
constant; employment rate: 75%; unemployment rate: 6%.
➢ Population by age and gender 2050, projection 2009.
➢ 85% of the population live in cities.
➢ Life expectancy: men 83 years, women 87 years.
➢ Foreigners 10%, most from Russia, Estonia, Sweden and Somalia; 30%
of Helsinki region dwellers have an immigrant background.
➢ Religion: Lutheran 65%; Orthodox 3%; other 4%; some 28% do not
belong to a religious group.
➢ Languages: Finnish speaking 85%; Swedish speakers 4%; foreign lan-
guage speakers 11%.

Economy

➢ Economic structure (employed persons by industry):

30% Public and other services
12% Trade, hotels and restaurants
18% Financial and business services
17% Manufacturing
8% Transport and communications
8% Construction
7% Agriculture and forestry

190
Finland 2050 – Immaterial individualism

Globalization has taken new forms compared to 2010, since the costs of
travel and transportation have been raised to compensate for the environ-
mental impacts. Global trade in goods has diminished but global exchange
continues strongly via highly developed virtual channels. Many products
have become immaterial: newspapers, books, music and games, for exam-
ple, are sold only via the Internet in electronic format.

The world economy has managed to accommodate the economic set-

backs caused by the impacts of climate change and most EU countries have
positive GDP growth. China has taken the lead in the world market, and
the economic centre of the world has moved to Asia. Finland has succeeded
to have 3-6% GDP growth for the last decade. The main exports are biomed-
icines and intelligent textiles; both successes rely on the intelligent use of
wood fibres and cellulose, resources that Finnish forests produce plenty of.

Finland gains advantage within the EU from its close location to Russia.
Contacts and exchange with Russia have increased significantly compared
to the beginning of the century. Most Finnish exports are sold to Russia.
Many Finns work in Russian companies and commute daily from Helsinki
to St. Petersburg with fast, environmentally friendly trains that cover the
distance in ninety minutes —a journey that took over three hours with the
new fast train connection opened in 2010.

The service sector continues to be the main employer, although the

public sector has diminished. Some of the universality principles of a wel-
fare state have been altered; for example, citizens are now encouraged to
take better care of their health and well-being by providing better pen-
sions and social benefits to those who commit themselves to certain health
programmes related to obesity, coronary diseases, alcohol overuse, etc.
Services and medical innovations related to keeping people healthy form a
notable part of business sector.

There have been radical changes in production and consumption pat-

terns globally, due to environmental concerns. All citizens now have a
natural resource consumption quota, which limits the amount of natural
resources they can consume per year. Excess quotas can be sold, and the
trade in quotas is managed by the Stock Exchange. The introduction of a
personal quota system has caused a redistribution of income: less wealthy
people who have consumed fewer natural resources are in a position to sell
part of their quotas and increase their consumption, whereas wealthy peo-
ple who want to maintain at least part of their previous lifestyle have been
forced to buy quotas. Personal mitigation strategies have reflected the val-
ues of individuals—the diversification of lifestyles has decreased in mate-
rial respects but increased in immaterial ones.

191
 Environmental taxes and personal quota systems have significantly
reduced both business and personal travelling compared to 2010. The
attractiveness of travelling has, however, not disappeared and thus there
are new ways to travel and experience other cultures. Trips, once made, are
longer in time and concentrate in one place. Advanced virtual technolo-
gies allow people to travel for several months and continue working from
abroad. New exchange programmes for manual and service sector workers
have been created: A group of Finnish teachers, for example, may exchange
jobs with their Irish colleagues for months or even years.

Local consumption and production has increased, and the farming and
forestry sectors have grown in importance. There are groups of people, liv-
ing on basic income, who have moved back to the countryside to live in self-
sufficient communities. These communities who have embraced "poverty
as a lifestyle," use local trading and exchange systems in addition to the
regular currency.

Economic diversification has increased compared to 2010. The lower

middle classes are mainly educated but have low incomes and form the
largest group of citizens. The highest income group has also increased in
number, since the salaries for the most skilled specialists have grown and
are now competitive with the rest of the world.

The Asian influence is also seen in religious life as well as in econom-

ics; many who were previously Lutherans have converted to Buddhism and
Taoism. The share of Lutherans has also decreased due to the Muslim and
Orthodox immigrants.

192
Alternative trends: What else could happen by 2050?

Mass Immigration

In 2050 the world is suffering from the consequences of climate change.

Draughts and extreme weather conditions have caused famine and loss of
human life in many poor regions. Immigration has increased within the
EU from southern Europe, which suffers from draught and a lack of drink-
ing water, to northern Europe. Also, immigration from Africa to Europe
has intensified. Finland has received two waves of immigrants, first from
northern Africa in the 2030's and recently in the 2040's from southern
Europe. Some 20% of the population of Finland are now foreigners. English
has become the second official language in the EU and it is commonly spo-
ken in most workplaces in Finland. Most immigrants, therefore, manage
to find their place in job market. Catholic and Muslim influences on the
Finnish culture increase.

Food Scarcity

Megatrends such as climate change, biodiversity, environmental deg-

radation and population growth compile a situation where food security
becomes an even more critical issue over the developing world. Bioenergy
production, especially in the western world, adds to the problem by over-
taking a share of the fields used for food production. By 2020, surplus food
production in industrialised countries has diminished to close to zero.
Between the 2020's and 2050's, severe droughts, floods and storms attribut-
able to climate change also cause disruptions to the food security of citi-
zens in the western world. Finland struggles with the same problem but has
an advantage of relatively rich water resources for irrigation (if needed)
and space for farming expansions. Nevertheless, food security is a serious
issue and the share of food expenses rises notably in private households.
Professional farming becomes an attractive profession. Also, small scale
supplementary farming gains popularity among lot owners. Respect for
close-to-nature professions and know-how such as farming, fishing and
hunting rises.

Extreme Privatisation

There is severe economic hardship in funding state and municipal

operations. The Finnish welfare state model demonstrating strong and
high-quality public services leading to equal opportunities in education,
healthcare and social structures continues to deteriorate. To a certain extent,
more efficient processes are able to maintain the service level; gradually,
however, private options in healthcare and education, for example, attract
families that are better-off. Public authorities are not able to ensure the qual-
ity of public services due to budget limitations resulting from a political
unwillingness to raise taxes. By 2050, there are more or less separate private
and public lines of public services such as education and healthcare. This

193
slowly leads to the practice whereby social and professional opportunities
are inherited from the parents for the largest part of the population. Shifting
between the classes is only possible for the most talented individuals.

Brain Sweatshop

Recovery measures for the 2010 economic depression fail and the west-
ern economies prove to be unsustainable. A prolonged slowdown of the
global economy leads to the domino effect of collapsing western economies,
which kills western capitalism. Chinese capitalism is the new form of inter-
national trade and business. Western countries try to keep the research
and educational level high to compete with the Chinese but it is not quite
successful. Finland, as well as other European countries, become a cheap
‘brain sweatshop’ for Asian investors and leaders. The educated Finnish
working force mainly produces semi-demanding design and engineering
solutions and services that can be easily electronically transferred form
one place to another. The most talented individuals move to Asia for better
career opportunities. Western Europe becomes something like India was
for Westerners at the beginning of the millennium. Less educated young
Finns find it difficult to accommodate themselves to working life. There is
a very high level of youth unemployment, which becomes very expensive
for the government at the time. Also, a critical mass of frustrated youths
becomes violent, paralysing many societal traditions and structures.

Generation Change

By the end of the 2040's, most of the baby boomer’s generation have
passed away. Along with them disappears the hegemony of a generation
who has had a notable impact in society, and who have held widely accepted
common values and beliefs. The relatively homogenous Finnish identity
deteriorates and is replaced by subcultures and "value shopping." People
identify themselves more and more through subcultures and peer groups,
such as music style fan groups and other entertainment fan groups (e.g.
manga); professional groups; hobby groups; life-situations (e.g. Young fam-
ilies); or political passions. People tend to switch these ‘reference groups’
very fast. International companies and brands can establish a central posi-
tion as the symbol of certain groups. There is no uniform value basis or
leading institutions in society, but rather a puzzle of multiple pieces that
interact. The life circles of different groups become more isolated and a
nationwide common experience of ’being Finnish’ does not exist – it is not
even yearned for except in marginal groups.

End Of Party Politics

The turn-out of voters in elections continues to decrease, as well as the

membership of political parties. Traditional parties lose their legitimacy
and single-issue movements become more active players in political deci-
sion making. There are a variety of issues attracting a critical mass to estab-

194
lish a movement, such as "no to abortion," "more nurses for the elderly," "no
to nuclear power," etc. Political structures are reorganised and new ways
for direct democracy, like interactive planning procedures, are introduced.
For example, "open source wiki-applications" are used in city and budget
planning.

Church In Crisis

The Lutheran Church enters into a legitimacy crisis, since it does not
manage to follow the liberal public opinion regarding, gay marriages or
women priests, for example. Roughly half of the population are still mem-
bers of the church, but the trend is declining. Even fewer people practice
the religion. The Lutheran state-church system is abolished. In schools,
religious education is replaced by ethics and philosophy. Other forms of
Christian churches as well as other religious groups (including traditional
animistic religions) gain moderate popularity, but the major winners are
atheistic trends. In general, religion is becoming less and less significant
in society.

Climate Conflicts

Climate change reinforces existing drivers of conflict and therefore

threatens achieved development across many countries. Geopolitical ten-
sion also increases due to the diminishing availability of natural resources.
International cooperation drifts in a lock-up situation and nations turn
inwards. Finland finds itself in a situation resembling the situation in the
1960's, 1970's and early 1980's when geopolitical tensions were higher and
when economic activities were heavily regulated and guided by the govern-
ment. Industrial production relies on domestic raw materials. Competition
between countries is fierce and various protectionist measures such as high
tolls on imports are introduced. The highest earning people suffer a notable
drop in their incomes and the overall income level declines. The level of
income distribution decreases, since government interventions secure jobs
and income for most citizens. The majority of people turn to traditional
values of ’home, church and the fatherland’.

195
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Interviews

Heidi Cook, Vice Principal

Lincoln School, Brookline MA

Marko Forss, Sergeant

Helsinki Police

Sani-Emma Härkönen
Sovinto Ry

Tommi Karjalainen, Senior Advisor

Ministry of Education, Department for Education and Science Policy

Samuli Koiso-Kanttila, Project Coordinator

Väestöliitto / Poikien Puhelin

Tuomas Kurtilla, Secretary General

Ministry of Education / Department for Cultural, Sport and Youth Policy
Youth Division / Advisory Council for Youth Affairs

Elina Lahelma, Professor

University of Helsinki, Dept. of Education

Panu Mäenpää, Cultural Coordinator

Nuori Kulttuuri (Youth Culture), Alliansi

Jarmo Osterlund, Psychologist

Defence Command Finland

Veli Sarmakari, Chief of Social Affairs / Personnel Division

Defence Command Finland

Marjukka Siikaniemi-Holopainen, Former Teacher and Textbook Author

Raini Sipala, Teacher

Helsingen Suomalainen Yhetiskoulu (SYK)

Liisa Tenhunen-Ruotsalainen, Director

Economic Information Office (Taloudellinen Tieotustoimisto / TAT)

200
Anna-Kaisa Tunkelo, mother
Sitra

Ilkka Turunen, Special Government Advisor

Ministry of Education, Department for Education and Science Policy

Michael Walker, Military Conscript

Ministry of Defence

Pekka Ylä-Anttila, Managing Director

ETLA

201
 End notes

Prepared by Ezra Block

With Bryan Boyer, Justin W. Cook, & Marco Steinberg of Sitra

The Futures of Finland was prepared by Gaia Consulting Group of Fin-

land and Switzerland.

This challenge briefing has been prepared in advance of the Helsinki

Design Lab Studio on Education held on May 3rd through the 7th in Hel-
sinki, Finland.

Sitra, the Finnish Innovation Fund, is responsible for organizing the

Helsinki Design Lab in cooperation with other key partners. Sitra is an
independent, publicly funded body which, under the supervision of the
Finnish Parliament, promotes the welfare of Finnish society. Since its estab-
lishment, Sitra’s duty has been to promote stable and balanced develop-
ment in Finland, the qualitative and quantitative growth of its economy,
and its international competitiveness and co-operation. Our activities are
governed by a vision of a successful and skilled Finland. We have always
operated with a strong belief in the future and in the ability of innovation
to benefit society.

HDL is a continuation of Sitra’s long-term activities in making design a

key driver in building the Finnish society and the innovation system. Sitra's
first design-related event was held in 1968, when it sponsored the Industrial,
Environment and Product Design Seminar (HDL1968).

Sitra will sponsor three studios during the summer of 2010 which each
bring a group of six to eight top international designers and key experts to
spend an intensive week in Finland "charretting" on a given studio topic.
With access to key decision makers relevant to their area of inquiry, these
teams will be charged with developing a strategic road map and a top ten
list of possible action items.

202
203
204
What follows is a complete re-printing of the
Challenge Briefing issued to the Sustainability
Studio. For more about the studio and its
outcomes see > PP 64-73.

For more about the style, role, and format of

Challenge Briefings see > PP 97-99

205
206
 Climate change is the symptom of a problem; the byproduct of a market
failure whose externalities will likely limit future growth. Unlike other prob-
lems faced by past societies such as war or famine, the invisible pathology
of climate change has also been the engine of global prosperity.

Carbon emissions are our best metric of this failure. Evidence shows that
emissions have increased along with economic growth since the industrial
revolution. In the last two hundred years the global economy has grown
six-fold. This growth, and the unprecedented rate of convergence between
developing and developed nations, reflects the tremendous momentum
afforded by fossil-fueled growth. The expediency of transforming fossils
to energy continues to provide the base material of the built environment
and development worldwide.

Given the conflict between this deeply embedded system of growth and
the urgency to reduce human impact on the earth’s ecological systems, the
defining challenge of this decade will be to decouple development from
combustion.

Economic growth, the built environment, municipal services, transpor-

tation, even agriculture, all rely on combustion, and our core systems of
valuation require that the impacts of combustion be ignored. Thus, no indi-
vidual, firm or government can transform the practices that drive growth—
it will require an architecture of solutions and actors.

The development of a widespread economic imperative for restricting

carbon emissions seems unlikely in the near or medium terms. As was
demonstrated during the Copenhagen Climate Conference, a global bind-
ing pact on climate change will not happen soon. Enforcement is even
more distant.

Addressing this challenge is not just about protecting ecological sys-

tems: it is about creating an opportunity. In the coming decades, a new
frontier of competitiveness will open between nations—there will be buy-
ers and sellers of the expertise, technology, and models that thrive in a
carbon-restricted economy.

With a decade of crises just behind us, and more on the horizon, the
political and economic climate appears too conflicted to shoulder this scale
of change. Yet signals from all sectors and most governments suggest
that we have reached an inflection point, one that signals the onset of
change. While a formal agreement was not reached at Copenhagen, the
event revealed that the topic of climate change had now engaged not only
the environmental ministries, but also heads of state.

The stage is set for the evolution of environmental policies into compre-
hensive economic and social transformations. For those who want to foster
a productive natural environment, as well as ensure success in the impend-
ing regulatory environment and emerging markets, the time to act is now.

207
208
OPPORTUNITY SPACE

Finland can achieve carbon neutrality in the coming decades. In fact,

relative to other nations, carbon neutrality is low hanging fruit for Finland
and only requires a 50 percent carbon emissions reduction. Its massive car-
bon sink, growing use of low carbon energy sources, and effective policy
implementation make the reduction a realistic and tenable goal that would
place Finland among a select league of nations leading this change.

In a carbon-restricted global economy and a strong regulatory environ-

ment, the first nations to bind emissions reductions to economic growth
will enjoy a substantial competitive advantage over other nations still work-
ing toward compliance.

Although the technical challenge of energy efficiency is a central con-

cern of business and government, the question now concerning Finland
is how to achieve a low or no carbon economy and to continue to prosper
socially, economically and environmentally.

In recognition of this new reality, the Prime Minister’s Office recently

released a foresight report outlining an 80 percent emissions reduction tar-
get by 2050—a target aligned with many OECD countries and dependent
upon international cooperation. While the report signals a potential direc-
tion for Finland’s long-term policy planning, the details of how the country
will transform itself and of who will lead the effort remain unanswered.

A transformation of such a scale will require Finnish businesses to

engage emerging markets and spark new ones. The central government and
municipalities will need to lead with strategic policy interventions, smart
investment, forestry practices that improve carbon sink capacity, as well as
low carbon retrofitting and development for the built environment.

The Finnish government is extremely adept at transforming goals and

objectives into public policies and legislation, but they tend to result in
short-term achievements. One such example is Finland’s compliance under
the EU emissions trading scheme. The government does not have a record
of success in long-term energy and environmental policy planning and
implementation.

In order to gain a First-Mover advantage, the government will need to

set more aggressive targets that build on-the-ground momentum via a path
of higher risk at a potentially greater cost. Yet, in an era of crisis, expensive
risk taking is likely to be politically unpopular.

Nonetheless, Finland will act to address climate change. As has been its
custom, the government will most likely move forward in lockstep with the
EU. A necessary first step will be capturing and re-presenting the strategic
advantage that comes with leadership in carbon neutrality at a national

209
scale. Overcoming "fast no's," deflating conformist arguments, and building
transformational momentum will happen only with a shared understand-
ing of value.

The opportunity for this studio is to make this value proposition and
to design a pathway to carbon neutrality for the near and long-term. Such
insight into the value and mechanism of carbon neutrality will help release
the full potential of the public and private sectors in Finland. The work of
this studio will help protect the natural environment and catalyse a new
community to become global exporters of climate neutral know-how.

This marks the first comprehensive effort to design a clean, green and
smart development strategy for Finland—not in 2020—not in 2050—but now.

Why Carbon?
Why not design a pathway to maximum energy efficiency?

Improving energy efficiency has been a focus of the public and private
sectors in Finland since the Energy Crisis of the 1970's. In fact, Sitra initi-
ated an early energy program in response to the crisis given Finland's par-
ticular vulnerability caused by the scarcity of domestic energy sources. This
program sparked a revision of Finland's building codes, which specified
greater energy efficiency and helped the country to move towards a more
diversified fuel supply.

Since, Finland has become a leader in energy efficiency and technology.

Its energy plants, among the most efficient in the world, use combined heat
and power, district heating and even district cooling. Energy efficiency has
become a vital part of the national energy policy and the impacts of these
measures are reflected in the decline of Finland's energy intensity by 23%
between 1994 and 2006. This decline has occurred despite an increase in
total final consumption, by nearly a third, from 1985 to 2005.

Finland’s effective energy audit system provides detailed information to

its end users. This system is paired with voluntary agreements that have had
a significant impact on energy efficiency at many scales. A 2006 Ministry
of Employment and the Economy study revealed that the audit/agreement
system was exceeding expectations in terms of improving energy efficiency.
Government and private sector investments in the energy audit system are
continuing.

At its core, energy efficiency is a technical challenge that can be

addressed through effective policies, measures, and investments. Finland
has shown great strength and leadership in driving cost effective improve-
ments in energy efficiency and all signals from government and the energy
industry suggest that this trend will continue.

210
 There is always room to improve efficiency, and Finland is no exception.
Energy efficiency in the built environment and transportation are two sec-
tors where there is still much work to be done. In addition, Finland relies
heavily on the EU for guidance on long-term energy policies and measures,
even though it has a proven record of effective implementation of direc-
tives. In order to achieve the next level of efficiency gains, Finland will need
a comprehensive long-term strategy that is bundled with broader public
policy objectives (i.e. mitigating climate change).

Why not design a sustainability strategy for Finland?

A sustainability strategy for Finland would provide the means for the
economy and government to value social, economic and environmental
returns without prejudice. This is the underlying goal of sustainable devel-
opment.

Relative to other nations, Finland has succeeded in promoting and

delivering high social, economic and environmental returns through pol-
icy. For instance, the Ministry of Environment has built and implemented
an advanced Baltic ecosystem protection plan that utilises hundreds of reg-
ular measurements to inform regulation. The government has used effective
social welfare systems to ensure high rates of education, employment and
productivity that place Finland among the leading nations in the Human
Development Index (12th, ahead of the United States and behind Norway
(1), Iceland (3) and Sweden (7) in 2009).

These examples suggest that the Finnish system of governance (and

more broadly, the Nordic Model) and its economy have already delivered
on many of the key metrics for sustainable development.

However, the management and reduction of green house gas emissions,

especially carbon dioxide has yet to be addressed by social, economic or
environmental policies. Evidence points to a steep increase in Finland’s
total carbon emissions and carbon intensity per capita, in spite of a pledge
to maintain carbon emissions constant at 1990 levels.

With the EU set to agree on ever increasing reduction directives for

carbon, Finland needs a well-calibrated and actionable de-carbonization
strategy that can intervene productively in its economy and deliver real
reductions.

Sustainability captures a central challenge of our time, but carbon is

operable and provides focus where sustainability has been inadequate.

211
 Climate Change

Chemical pollution Ocean acidification

(not yet quantified)

Atmospheric Stratospheric
aerosol loading ozone depletion
(not yet
quantified)
Nitrogen
cycle
(biogeochemical
Biodiversity loss
flow boundary)
Phosphorus
cycle
Change in Global
land use freshwater use

The Systemic Nature of the Climate Change Challenge Source

Rockström,
Johan, et al.
"A Safe Oper-
Some Key Challenges To Decarbonization ating Space
for Humanity"
Nature 461
➢ The decarbonization of a nation is a massive challenge. Each potential (2009)

area of activity has the depth and complexity to consume the resources
of those working to spark change. Focusing on the principal factors that
determine carbon emissions will be of critical importance. Below is a par-
tial list of challenges that serve as a primer for a broader discussion of what
must be done to achieve carbon neutrality:

➢ Government Protection: Overcoming preferential treatment of energy

intensive industries via subsidies, exemption and special status (metals,
engineering, manufacturing, forest and chemical industries modernised
Finland’s economy in the twentieth century and raised the standard of liv-
ing).

➢ Decoupling Growth & Emissions: Finland’s national carbon sink

capacity is roughly equal to its 1968 carbon emissions level (33 Mt CO2/a).
A reversal to 1968 GDP levels is not a feasible mitigation approach—a tran-
sitional strategy is needed to push down Finland’s emissions curve while
allowing growth to continue. Binding emissions reductions to economic
growth should be the long-term goal.

1968 2008 Percentage Increase

GDP (Billions of USD) 8,8 271,3 3000%

GDPP (USD) 9.490 28.560 200%

212
 The World Bank provides a picture of the strength of Finland’s econ-
omy at the projected time of carbon neutrality, compared to present day:

➢ Evidence: Transitioning to a low carbon economy will require evi-

dence of economic, social and environmental benefits for business lead-
ers, politicians and the community. Finns consider themselves as leaders
in energy efficiency. This sentiment has been mapped onto the challenge of
climate change, affecting the ambition of leadership across sectors.

➢ Policy: Any durable climate change policies will need to blend "car-
rots" and "sticks" so as to spur new economic activity while ensuring regula-
tory compliance. With little time to prototype new solutions, impact needs
to occur rapidly. The government will need market-based instruments as
well as policies to level the field, allowing the entry of new technologies and
new approaches.

➢ Mobility: Reversing/redirecting the rapidly increasing personal automo-

bile use (up 60% 1980-2000), while public transport usage rates remains flat.

➢ Energy Efficiency: Finland has already invested significant capital to

achieve high levels of efficiency in its energy production and built environ-
ment. The low hanging fruit of energy efficiency models available to other
countries, those which make quick gains at low costs, is not viable in the
Finnish context. Additionally, the turnover of the country's existing capital
stock will take time, as many of the investments are recent. Achieving a
dramatic reduction in carbon emissions will principally require systemic
change; incremental improvement to Finland's energy production systems
and usage will achieve limited gains.

➢ Durability: Because political guidance and accountability are indis-

pensable to sustainability, changes to policy and incentive systems must be
made durable enough to survive many political cycles.

➢ Consumption: The EU is moving toward product-based climate

change mitigation policies that will account for the energy and natural
resources used throughout the product's life cycle. The implementation of
a labelling system tracing the footprint of goods sold into the European
market (One-third of the global market) back to the point of manufacture is
likely. Strategies such as "eco-labelling" will help mitigate so-called carbon
leakage, and have the potential to force real change outside of Europe.

➢ Density: Changes to land use (primarily with regard to sprawl), which

have increased transportation emissions and formed lose urban dwelling
efficiencies, have put downward pressure on Finland’s national carbon sink
and upward pressure on carbon emissions.

➢ Funding Change: Great ideas can provoke change, but without stable
funding streams, such changes are likely to be fleeting. The demand for

213
different scales of funding will include everything from small subsidies (to
encourage micro-generation and improved insulation for homeowners), to
large investments in energy production facilities. Finance must go hand-in-
hand with de-carbonization strategies.

"The OECD Environmental Outlook to 2030 projected that, if we continue

on a business as usual path, global greenhouse gas emissions will grow by
over 50 percent by 2050…This pace of change is ten times greater than that
experienced since the last Ice Age."
-OECD Secretary-General Angel Gurria, 10 October 2008

"Clearly in financial terms, in human terms, in ecological terms the chal-

lenge that climate change poses will require much greater investment…
So you could justifiably say, not enough was offered in Copenhagen. With
the scientific community saying that we need to reduce global emissions
by 50% by mid-century, that in order to achieve that, industrialised coun-
tries probably need to reduce their emissions by 80% by mid-century, I
don't think that Copenhagen or indeed Mexico is going to be the last word
on climate change."
-UNFCCC Executive Secretary Yvo de Boer, 20 January 2010

State Of The State

Some key questions for this studio: What is Finland doing to tackle
climate change? How well is it performing according to its current policies?
Where must it go from here?

Within the EU, climate change policies in Finland are generally per-
ceived as lagging behind leading European states. For instance, in spite of
government developed and implemented energy efficiency regulations for
buildings in the 1970's (cutting edge at the time) these regulations have only
been marginally improved since their inception as a response to the Energy
Crisis.

In 2002, the EU issued a Directive on the energy performance in build-

ings, prompting many countries to reappraise the intent of existing build-
ing codes that focused largely on calculating component-based insulation
performance. Most countries, including some of the newest member states,
adopted regulations based on total energy use—commonly associated with
primary energy. This fundamentally new, integrative approach incorpo-
rates aspects such as orientation of the building, lighting and heating/cool-
ing systems.

Although Finland opted to meet the minimum requirements of this

Directive, the Ministry of the Environment has set a 2012 target for imple-
menting new building codes based on an energy performance value that is
calculated from all energy delivered to a building.

214
 While there are many policy options on the table, few have been adopted
by the central government. An October 2009 Deutsche Bank (DBCCA) sur-
vey of worldwide climate change policies cites three targets in Finland:

➢ Kyoto Protocol: 0% change in greenhouse gas emissions from 1990

levels for the period 2008-2012 under EU burden sharing agreements.

➢ EU Renewable Directive 2001/77/EC: 31.5% of gross electricity gen-

eration from renewable sources by 2010 (2008 renewable energy share was
28% suggesting Finland is on track to meet its target (Statistics Finland);
DBCCA found no likely penalties for non-compliance even though the
directive requires the Commission to begin infringement proceedings if
the Member State does not meet its target).

➢ EU Directive 2009/28/EC: 38% of gross final energy consumption

from renewable sources by 2020.

While the overall rate of policy adoption in Finland is comparable to

those of other EU states, all three of these policies originated from external
sources. The lack of internally driven policies is indicative of the extent
to which Finland has looked externally for guidance on how to direct its
climate change activities.

However, these Directives have instigated the internal development of

measures aimed at reaching compliance. The EU Renewable Energy Source
(RES) Directives resulted in supportive policy actions that are highly rated
by the DBCCA. These include tax exemptions, investment subsidies, feed-in
tariffs for wind and national grid access for all users and plants.

The Prime Minister’s Foresight report and the 2008 Long-term Cli-
mate and Energy Strategy have provided new focus for the conversation
in Finland. However, for all of the policy papers and reports, few systemic
impacts have been made. Comprehensive public policies, investments and
activity in the public and private sectors remain at inadequate levels to
achieve an 80 percent emissions reduction.

215
 While Finland has clearly begun to address climate change, it is help-
ful to compare its activities to those of its neighbours. While Sweden and
Germany, like Finland, are subject to the same EU directives, and Nor-
way is not, all three countries have enacted aggressive, internally generated
national policies:

Country National (Internal) Policies % reduction 2007-2020

Finland None 13,6

Sweden Integrated climate & energy policy (regulates CO2 outside 48,4
EU-ETS*; carbon neutral by 2050)

Germany 4 policies with robust penalties that are likely to be enforced 34,4

Norway 30% reduction by 2020; carbon neutral by 2030 (with global 40

agreement)

Though the EC has been successful in establishing an EU-wide climate

change response, member states continue exhibit divergent levels of ambi-
tion. As the table illustrates, Finland’s neighbouring countries are within
reach of a 50 percent reduction by 2030 if the DBCCA projections are
accurate. In the case of Finland, the country must halve its 2008 carbon
emission levels to achieve carbon neutrality with its current carbon sink
capacity.

The EU Emissions Trading System (ETS) covers less than half of total
GHG emissions. Sectors such as buildings, transport, agriculture, waste
and industrial plants fall outside of the ETS; Member States are responsible
for their development and enforcement.

216
 DIMENSIONS OF THE PROBLEM

Provided below are a number of key dimensions to the sustainability

challenge. This list is by no means exhaustive and you are encouraged to
introduce further dimensions.

D1 – Carbon
D1.1 Greenhouse Gas Sources

Among EU Member States, Finland was a latecomer to industrializa-

tion. During the decades between independence from Russia in 1917 and the
structural shift to an industrialised economy in the 1950's, the country was
largely agrarian. Its rapid economic rise during the 1960's and 70's

100 Primary
% of GDP

Production
80 Manufac-
turing
Industries
60
Service
Sector
40

20

0
| | | | | | | | | | | | | | |
1862

1872

1882

1892

1902

1912

1922

1932

1942

1952

1962

1972

1982

1992

2002
Structural Change in the Economy 1860-2007

1800
Volume Index GDP (index 1926=100)

80

Mte CO
1600
70

1400
60
GDP
1200
50
1000
40
800
CO Emissions 30
600
20
400

10
200

0 0
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1860
1865
1870
1875
1880
1885
1890
1895
1900
1905
1910

1920
1925
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
1915

Source GDP and CO2 Emissions 1860-2008

Statistics
Finland
to become one of Europe's richest countries produced a parallel rise in
its greenhouse gas (GHG) emissions. Now, Finland’s per capita GHG are
among the highest in Europe, in spite of having one of the lowest emissions
levels per total primary energy unit.

217
 The relationship between GHG emissions and Finland's GDP has been
somewhat volatile over the last few decades, mainly due to large fluctua-
tions in annual emissions levels. Since the deep recession of the early 1990's,
the economy has been growing faster than emissions. In 2007, the CO2/
GDP ratio was about 20% below the 1990 level, indicating that carbon
intensity lessened while the economy grew after the Kyoto base year.

In 2008, Finland produced just over seventy million tonnes of CO2

equivalent emissions, down about 10% from the year before. The majority
share of GHG emissions—around 85%—is CO2 from fossil fuel and peat
based energy production. CO2 emissions have continued to grow compared
to 1990 levels while other GHG emissions have declined. NO2 and methane
emissions dropped by 13% and 30% respectively in 2007 compared to the
1990 level.

90 Energy
Million tonnes CO² eq.

80
Industrial
70 processes and
60 solvent use
50 Agriculture
40 Waste
30
20
10
0
| | | | | | | | |
1990 1992 1994 1996 1998 2000 2002 2004 2006

Finland's Greenhouse Gas Emissions 1990-2007 Source

Statistics
Finland
The energy sector is responsible for the largest share of emissions, a
figure of about 80%. In Finland's accounting system, the energy sector
includes emissions from all fuels used in transportation and energy pro-
duction, transmission, and consumption. Long distances between settle-
ments, fossil fuel-based energy production, and many energy intensive
industries make transportation and industry the most carbon intensive
sectors in Finland.
100 Solvent and
90 other product use 0,1%
80
Energy industry 48%
70
60 Energy 81%
50
40 Transport 23%
30
20 Manufacturing industries
Industrial processes 9% and construction 18%
10
Agriculture 7% Households, services etc. 8 %
0 Waste 3% Fugitive 0,3 %
Other 2 %
Finland's GHG Emissions by Sector 2007 Source
Statistics
Finland; Prime
Minister's
Office

218
 Industry still dominates Finland's economy, delivering as much as 40%
of GDP. GHG emissions from industrial processes accounted for 10% of
overall emissions in 2008. Since 1990, industrial emissions have increased
by about 140%, making it the fastest developing emissions sector in Fin-
land, even as the industry's share of the economy is diminishing.

Most industrial emissions are composed of CO2 output from iron and
steel production. While emissions in this sector have increased, by inter-
national standards many industrial processes in Finland are already very
energy efficient. The metal industry estimates that even with the inclusion of
mining activities, emissions per ton of steel are half the European average.

The concrete sector is also an emissions intensive industry. Currently,

the sector produces carbon and concrete in near equal amounts. According
to the Foresight Report, realistic estimates of emission reductions for the
concrete industry amount to 1%, even with the implementation of efficiency
technologies. Replacing concrete with climate neutral construction materi-
als is a more probable GHG emission reduction pathway.
140
Index (1990=100)

Industrial
processes
120
Energy

100

80 Agriculture

60 Waste
Solvent & other
product use
40

20

0
| | | | | | | |
|
1990 1992 1994 1998 2000 2002 2004 2006
1996

Source Greenhouse Gas Emissions by Sector 1990-2007

Statistics
Finland

Finland's Kyoto Protocol emissions target is to stabilise emissions at the

1990 level during the 2008-2012 commitment period. However, over the last
decade, GHG emissions have hovered around 10% above this commitment
level. Industry is partly to blame for this, but carbon emissions from energy
production and consumption drive much of this growth.

Year to year volatility in the country's total GHG emissions is a product

of its diversified fuel mix. In general, an unusually wet Nordic rainy season
will cause a rise in hydropower sold into the Nord Pool market. Under these
conditions, Finland is able to import more electricity, reducing output of
fossil fuel-based condensing power plants. Economic pressures on Finland's
industries, the number of heating days, and variability in renewable energy
production can also have a significant emissions impact.

219
 D1.2 Carbon Sink

Finland's forests are its largest carbon sink pool. In 2008, it is estimated
that the country's forests removed almost forty-two million tonnes of CO2
from the atmosphere. Despite a decrease in total forest area, carbon sink
capacity has been growing over the last century as forest management prac-
tices have improved.
20
Tg C/year

Carbon Emissions
15

10

5 Forest Sinks

-5

-10
| | | | | | | | |
1920 1930 1940 1950 1960 1970 1980 1990 2000

Carbon Emissions & Forest Carbon Sinks 1920-2000 Source

METLA
presentation
During the 1920's and 30's, and the rebuilding years after World War II, Carbon Budget
of Finnish
Finland's Forests were a source of carbon because harvests (drain) outpaced Forests from
1920-2000, 21
growth. Forest growth and the subsequent increase in carbon stocks have April 2004
been particularly strong since the 1970's. This is mostly due to an increased
tree volume per hectare of land and because growth has exceeded drain.
During the 1990's, the average carbon sink of forestland was 35% of Fin-
land's carbon emissions.

With most of Finland's forests under commercial management, the

industry's activities have a significant impact on carbon sink capacity and
duration of carbon sequestration. The majority of the industry produces
pulp and paper products. Compared to durable goods, such as wood panels
and other building materials, pulp and paper products have a very short
carbon sequestration period. The Finnish Forest Research Institute (Metla)
estimates that as much as a hundred million tonnes of CO2 are temporarily
sequestered in wood products in Finland. This is equivalent of over 140% of
Finland's GHG emissions in 2008.

220
 Chemical Pulp Sawmilling
Industry Industry
31.9 million m³ Pulp Industry Wood Industry 28.0 million m³

Plywood & Veneer

Industries
4.0 million m³
Other Wood-based
Panels & Products
Mechanical Pulp Industry 0.5 million m³
10.1 million m³ Semi-Chemical Pulp Industry
1.0 million m³

Source Roundwood Consumption by Industry & Use 2007

Finnish Forest
Industries
Federation;
Metla
Soil and peat are another important driver of Finland's carbon sink
capacity. Soils vary between being an emission source and a sink for a vari-
ety of reasons, but year-to-year changes in climate generally has the greatest
impact. Peat lands contain Finland's largest carbon stock and peat produc-
tion's share of emissions was about 2% in 2008.
Million tonnes CO² eq.

20 Soil
Biomass
10
Dead
organic
0 matter

-10

-20

-30

-40

-50
| | | | | | | | | | | | | | | | |
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Source Negative values indicate carbon dioxide removals, positive values indicate emissions.
Statistics
Finland;
Metla

221
 The Land Use, Land-Use Change and Forestry (LULUCF) mechanism
under the Kyoto Protocol outlines provisions for countries to include some
of the net changes in national carbon sink capacity towards their final emis-
sions levels. For Finland, LULUCF acts as a net sink as carbon removals are
much higher than any emissions from the sector and removals have grown
by over 120% since the Kyoto base year. Under the UN Framework Conven-
tion on Climate Change, emissions removals from the LULUCF sector can
be reported in their entirety.

-54,71% 0,00% 119,12% -478,29% 0,00% 136,74%

Total Change in Emissions of Annex I Countries with & without LULUCF 1990-2007 Source
UNFCCC

Finland's greenhouse gas emissions, 1990-2007, excluding the LULUFC sector (vertical bars)
and including the LULUFC sector (blue line). The horizontal lines shows the net removals in the
LULUFC sector.
90 Net sink of the
Million tonnes CO² eq.

80 LULUCF sector
70 Greenhouse
60 Gas Emissions
50 without the
40 LULUCF sector
30
20 Greenhouse
10 Gas Emissions
0 with the
-10 LULUCF sector
-20
-30

| | | | | | | | |
1990 1992 1994 1996 1998 2000 2002 2004 2006

Carbon sink potential of LULUCF sector 1990-2007 Source

UNFCCC

From a more global perspective, Finland's removals from the LULUCF

sector give it a substantial advantage in meeting its Kyoto commitment
levels. Among Annex I countries, Finland's LULUCF was the fourteenth
largest net sink in 2007, only second to Norway, and ahead of its Nordic
neighbours and most of Europe.

While the LULUCF sector removals (and carbon sink capacity) are use-
ful in determining a national carbon footprint, carbon sinks are unstable

222
over time. Research has shown increasing temperatures generally result in
increased emissions from soils and forests, suggesting that Finland's carbon
sink capacity will decline under pressure from global warming. In addition,
they are potentially reversible due to human activity such as misguided
policies, poor management and over-harvesting.

Even with robust management and careful monitoring, carbon sinks

may have limited impact on a country's true carbon footprint. With the
bulk of Finland's carbon stocks processed into nondurable goods, the true
value of its carbon sink is unclear.

D1.3 Foresight Report

The Government Foresight Report on Long-term Climate and Energy

Policy is a recent and significant development in the government's approach
to the de-carbonization challenge. The document assembles research on
the potential to limit climate change and the costs, impacts and efficacy of
climate policy. It suggests that Finland could become a leader in climate
protection, but does not call for this directly.

The report includes four model pathways to move Finland toward a low
carbon future:

➢ Pathway A is an "Efficiency Revolution" where Finland's economic

structure transitions to become dominated by services and advances in
energy efficiency lead to a 50 percent reduction in final energy consump-
tion. All remaining energy is supplied with renewable sources and nuclear
energy production is ended.

➢ Pathway B is a "Sustainable Daily Mile" strategy where Finland's

population becomes centralised in a few urban centres, transportation is
dramatically reduced and services replace consumption. Energy is provided
by increased nuclear power production and the share of renewable energy is
increased to two-thirds of the final energy consumption.

➢ Pathway C is an effort to "Be Self-sufficient" where Finland's popula-

tion remains dispersed and highly efficient single-family homes produce
their own energy. The current fleet size of light-duty vehicles remains stable
but zero-emission vehicles replace emitters. The share of renewable energy
is increased to four-fifths of final demand and industry creates its own
energy with bio-refineries.

➢ Pathway D assumes that "Technology is the Key" and leverages a

highly networked population and technological advances to reduce emis-
sions. Rural areas are de-populated by moving the population to suburban
and urban areas in southern Finland. Zero-emission vehicles and a high-
speed train network meet increasing transportation demands. Fossil fuel-
based energy production remains high, necessitating the development and
implementation of carbon capture and storage. Nuclear power production
is increased dramatically to keep pace with rising demand.
223
 It is predicted that both Pathway A and D will result in an approxi-
mately 90% GHG emissions reduction by 2050 and the average economic
growth will continue at 1.7% and 1.8% respectively. Pathway B and C will
result in an 80% reduction compared to Kyoto base year levels and eco-
nomic growth with continue at 1.8% and 1.2% respectively.

The Report is intended be used as a baseline for communication

between the Government and Parliament. The Prime Minister's Office will
set the overarching climate agenda, but implementation will be the respon-
sibility of the different ministries.
16 A B
Mt CO2 eq.

Emission reductions % of GHG emissions in 1990

80%
14 Waste management

12 Agriculture

10
Industrial Processes (incl. solvents)
Waste management 90%
8 Other

6 Agriculture
Industry (incl. oil refining & building)
4 Industrial Processes (incl. solvents)
Other
2 Industry (incl. oil refining & building) Transport
Transport Heating
0 Heating 100%
Energy Generation

16 C D
Mt CO2 eq.

Emission reductions % of GHG emissions in 1990

80%
14 Waste management

12 Agriculture

10
Industrial Processes (incl. solvents)
90%
8
Other Waste management
6 Agriculture
Industry (incl. oil refining & building) Industrial Processes (incl. solvents)
Other
4
Industry (incl. oil refining & building)
Transport
2 Transport
Heating Heating
0 Energy Generation Energy Generation 100%

GHG Emissions Reductions by Pathway in 2050

At its core, the Report is also a consensus-building tool. For a gov-

ernment and society that is founded on the principle of distributed risk,
consensus is the critical first step to any change effort. Thus, the report
attempts to provide multiple pathways toward a still prosperous future
without explicitly picking any losers.

224
D2 – The Built Environment
D2.1 Land Use

Finland is a sparsely populated country were most Finns live near the
coasts or in a few urban centres in the interior of the country. For much of
Finland's history, its population has lived in small, thinly distributed settle-
ments. The structural shift during the middle of the twentieth century from
an agrarian to industrial economy reorganised this settlement pattern, and
Finland slowly began to urbanise. Since the 1950's Finland's population has
coalesced in the southern and western regions along the coast, near riv-
ers and inland lakes. The north and east of Finland, especially north of
the Arctic Circle gradually became depopulated as residents moved toward
centres of economic activity.

The Finnish migration toward the cities continues. In 1960, 56% of the
population lived in built-up areas that equaled about 1.6% of Finland's total
land area. By 2008, almost 84% of the population lived in these built-up
areas, a 50% increase. Finland's cities have also grown in area by 50% to
accommodate their new residents, suggesting that densification has not
been the key mechanism for housing delivery.

A closer analysis reveals that while Finns are moving toward the cities,
they are settling in the expanding suburban periphery. The Helsinki met-
ropolitan region is the epicentre of this suburbanization. Since the 1960's,
the population of Helsinki has increased by about 27% while neighbouring
Espoo has increased by over 325%. Despite Espoo's explosive growth, Hel-
sinki's density is still nearly 3.5 times that of Espoo.

This relatively recent trend is common to all of Finland's largest cit-

ies. During the deep recession of the early 1990's, cities began to grow at a
faster rate than the suburbs. Finland's rapid return to economic prosperity
sparked a suburban population growth rate that has exceeded growth in the
urban cores. In spite of this trend, urban density has again begun to slowly
increase, after the decline of the 1980's.

D2.2 Building Stock

Of the total heated building area in Finland in 2008, almost half was
composed of residential and nearly forty percent was office and commer-
cial space. Of the residential share, there were 1.1 million detached houses,
over 380,000 attached houses, and over 1.2 million dwellings in apartment
blocks. Only 10% of Finland's housing was built before 1940. Since 1970, the
number of dwellings has increased by over 93%, most of which occurred
between the 1970 and 1990.

225
 Inhabitations/km²

1—16

17—499

500+

Uninhabited

Population Density Finland 2008

Regional divisions as on 1 January 2008 Source

Statistics
Finland]

Floor area per dwelling has also increased along with the number of
buildings, approaching 80 m2 per unit, up by 55% since 1960. In 1960, floor
area per person was 14 m2. By 2008, this figure had grown to almost 39 m2
per person.

In general, construction materials and methods are uniform in Fin-

land: 84% of buildings are wood framed and 15% are stone construction.

226
 The heating sources of Finland's building stock are diverse, but district
heating has become the dominant share with half of all buildings connected
to a municipal system. For buildings that are outside district service areas,
heat pumps are gaining share for economic and environmental concerns.

Percentage of 1980
workers commu-
ting to jobs on
the Helsinki
Metropolitan Area

2—10%

10—35%

> 35%

1990

2000

Source Helsinki Metropolitan Commuter Catchment Area 1980-2000

YTV & REX YTV Helsinki Metropolitan Area Council
Archi-
tecture

227
INDEX 1990=0
15
Rural areas
adjacent to cities
Cities
10

-5
Core rural

-10

Sparsely settled
-15 rural areas
| | | | | | | | |
1990 1992 1994 1996 1998 2000 2002 2004 2006

Relative Change in Population by Region

45
m²/person

40

35
30
25

20

15
10

5
| | | | | | |
1960 1970 1980 1990 2000 2005 2007

Development of Floor Space 1960-2008 Source

Statistics
Finland

Others
5%
Small combustion of wood
12%

District heating Oil

49% 17%

Electric heating
17%

Heating Energy in Residential, Commercial and Public Buildings 2007 Source

Ministry of
the Environ-
ment and
Nearly three-quarters of district heating networks are connected to Statistics
Finland
combined heat and power (CHP) plants. Government estimates indicate
that the potential for CHP conversion of Finland's heating networks is
nearly exhausted. The bulk of these CHP plants use coal and natural gas as

228
 their primary fuel; this is especially prevalent in Helsinki and other coastal
cities. Inland CHP plants tend to be powered by peat, but efforts are being
made to transition to wood fuel and other forest industry by-products.
250
PJ

200 Other
Oil
Wood Fuels
Peat
150

Natural Gas

100

Recovered Fuel
& Waste Heat
50
Coal

0
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1980

1982

2004

2006
1970

1972

1974

1976

1978

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002
Source Fuels Used in District Heating & CHP 1970-2007
Ministry of
the Environ-
ment and D2.3 Energy Efficiency
Statistics
Finland
Building age is the greatest determinate of the energy efficiency of Fin-
land's building stock. In general, buildings constructed during the rapid
urbanization of the 1950's, 60's and early 70's are the least efficient buildings
of any decade either before or after. In fact, apartment buildings built at the
turn of the 20th century and during the 1940's are, as a class, the most effi-
cient in the country. Those built during the 1970's energy crisis are among
the least efficient.
Delivered District Heat to Apartment Buildings Delivered District Heat to Non-residential
by Decade Buildings by Decade

16 16 kWh/m³
Milj./m³

Milj./m³

14 14 < 30
30-40
12 12
40-50
10 10 50-60
8 8 > 60

6 6

4 4

2 2

0 0
| | | | | | | | | | | | | | | | | | | | | |
1950

1960

1970
1980
1990

2000
1930

1940

1950
1960
1970

1980
1990
2000

1910

1920
1930
1940
-1900

1900
1910
1920

Source Delivered District Heat Energy by Decade of Construction

Sitra's Energy
Programme

229
 Because of Finland's climate, the country's building stock has one of the
highest space heating demands in Europe. As such, building codes have a
strong focus on thermal insulation and recent improvements have resulted
in a 20-30% improvement in insulation levels in new buildings.

Despite these improvements, an International Energy Agency (IEA)

analysis reveals that Finland's building code standards are not as aggres-
sive as those of its neighbours:

Country Overall U-Value* Average U-Value

Denmark 0,77 0,77

Finland 0,91 1,01

Norway 0,7 0,8

Sweden 0,72 0,72

*Overall U-values are calculated in order to compare across countries.

It sums the U-values from the ceiling, wall, and floor, and adds 20% of win-
dow value.

In most cases, Finland's U-value reference figures have been overstated;

they provide the builder with a 20% cushion depending on how they choose
to comply with the standard. This cushion effectively increases the U-value
for the building by 20%, making full compliance with the target U-value
voluntary. Under progressive regulations in other countries, the builder is
given the option of over-complying in some areas and under-complying in
others to meet an overall energy standard for the building.

D2.4 GHG Emissions

Heating is the biggest source of carbon emissions for housing and

the service sector, accounting for nearly 7% of total emissions. Because
of Finland's diversified fuel mix and climactic variation between the and
north and south areas of the country, emissions vary widely from region
to region. For instance, because the bulk of Helsinki's energy production,
district heating and district cooling are generated from fossil fuels, the car-
bon footprint of the city's residents may still surpass the levels of suburban
residents who commute long distances to work. In addition, the number of
heating days in northern Finland can be double what is typical in Helsinki.

However, since building code improvements were implemented in

the 1970's, total energy consumption per unit of heated space has dropped
nearly 40%. The widespread transition from oil-based heating to district
and electric heating has also produced a significant emissions reduction for
both the service and residential sectors.

230
 D2.5 Renovation & New Construction

Not unlike the rest of the world, the Finnish construction industry
has been under considerable pressure from the economic crisis. Volumes
trended down strongly in 2009, but renovation is set to grow in 2010 due in
part to government subsidies.

Percentage Change of Construction Volume Number of Dwellings (1 000's)

10 40

Building 35
5 Renovation &
Modernisation 30
0 Civil Engineering
25 Housing
Construction
Building Starts
-5 20
Construction
15 Privately
-10 Financed
10 State
-15 Subsidized
5

-20 0
| | | | | | | |
2006 2007 2008 2009 2006 2007 2008 2009

Source Construction Indicators 2006-2010

Statistics Fin-
land, Ministry
of Labour, Housing has remained relatively stable through the crisis; volume is
ARA, Bank of
Finland, RT
bolstered by state subsidised construction. Housing demand in Finland
began to rise in the 1990's and but declined during the mid-decade reces-
sion. As Finland began to return to economic prosperity, household income
outpaced new housing starts, leading to a rise in prices that continues today.

Pricing increases and demand tends to be concentrated in Finland's

expanding cities. But, the number of growth centres is Finland is dimin-
ishing as the population migrates toward jobs. Over the past two decades,
much of this growth has been concentrated in the Helsinki Metropolitan
area, Turku, Tampere, Jyväskylä and Oulu.

Single-family housing continues to outpace the construction of apart-

ments. Almost 307,000 detached houses were built between 1980 and 2008,
while only about 11,500 apartment buildings were constructed.

D2.6 Physical Density

Finland's overall density is among the lowest in Europe. As stated

above, a majority share (over 80%) lives in built-up urban areas and this
figure is projected to rise.

The density of these areas is on average seven hundred inhabitants/

km2, but this number has been on the decline since the 1990's as the subur-
ban periphery has grown in population. The Ministry of the Environment
​

231
 Population Growth

9746—4515

4515—672

671—277

119—42

41—1

Population Decline
Population Change 2000-2007

No Change
4514—1672

Population Growth
1 - 213 1671—812
214 - 811

812 - 1671 811—214

1672 - 4514
276—120
4515 - 9746 213—1
Population Decline

1415 - 672 No Change

671 - 277

276 - 120

119 - 42
41 - 1

source: YRK/SYKE 2008

Population Change 2000-2007 in 100 km2 Grid Source

YKR/Finnish
Environment
estimates that Finland's built-up area is low compared to the other Nor- Institute and
dic countries and less than half the density of similar areas in Sweden and Statistics
Finland 2008
Norway. The Ministry cites unmitigated sprawl as the chief factor causing
this disparity:

232
 Population Density in Built-up Areas, 1980-2007 Average Daily Commuting Distance, 1980-2005

Inhabitants per km²

1000 14

km
900
12
800
700 10
600 8
500
400 6
300 4
200
2
100
0 0

| | | | | | | | | | | | |
1980 1985 1990 1995 2000 2005 2007 1980 1985 1990 1995 2000 2005

Source Population Density & Commuting Trends 1980-2007

Ministry of
the Environ-
ment and
Statistics Finland became urbanised relatively late and the urbanization process is
Finland
still continuing…Often there is no distinct boundary between urban and
rural areas…In many cases there are few tight restrictions on construc-
tion close to urban areas. This has led to a dispersed and fragmented
urban structure. Urban areas have typically expanded inexorably out-
wards, leading to the creation of unstructured, low-density built-up
areas. These low-density districts of built-up areas cover some 30-35% of
the land surface of the country's urban areas—even in the main growth
centres. Arranging services for those low-density urban areas is very dif-
ficult. Many of these households need more than one car to manage their
daily lives… (Finland’s Fifth National Communication under the United
Nations Framework Convention on Climate Change 53)

Finland's urban cores tend to be composed of low-rise construction,

with tall buildings a rarity. With few exceptions, Helsinki is has limited its
height to six or seven stories on average. Though areas outside of Helsinki
have now seen the construction of high-rise apartment buildings, these
projects have generated controversy.

Less than three hundred buildings (0.02% of building stock) are ten or
more floors in Finland; of this number, only two hundred are residential. In
Finland 76% of all buildings are single-family detached houses or summer
cottages. Despite this figure, by 2008, approximately 53% of Finns lived in
some form of apartment.

D2.7 City Planning

Finland has a highly structured master plan delivery system. Based

on national and municipal objectives, master plans have been drafted for
most of Finland's inhabited areas. From these master plans, professionals
working for the municipal governments will draft plans that specify strict
guidelines for building use, massing, occupancy levels—even paint colours.
The need for such detailed planning at the municipal level has resulted in
the creation of exceptionally large planning departments in all of Finland's
largest cities. The City of Helsinki for example, has over two hundred archi-
tects and engineers in its planning department.
233
 NATIONAL LAND USE GUIDELINES
Approved by
Council of State
REGIONAL LAND USE PLAN
Drawn up & approved by Regional Council
Confirmed by Ministry of the Environment
JOINT MASTER PLAN
Approved by joint local
authority body
Confirmed by Ministry
LOCAL MASTER PLAN of the Environment
Prepared & approved by local authority

LOCAL DETAILED PLAN

Prepared & approved by local authority

Land Use Planning System

Senior planners and architects are given substantial latitude to shape

both the development priorities and character of areas under their purview.
Often, under this highly centralised control system master planned areas
are built-out rapidly,. The result is evident in some recently constructed
areas of Finland's cities that appear quite homogenous.

D2.8 Mixed-Use

Currently, mixed-use development (as is commonly understood in

North America and much of Europe) is illegal under Finland's land-use
regulations. There are a few notable exceptions such as Helsinki's Kamppi
shopping and multi-modal transit centre. However, exceptions are granted
only after a lengthy appeal process that is a legal exemption for the land
in question. These exempted plots are then adopted into the city's detailed
master plan.

The biggest obstacle to mixed-use development is the coexistence of dif-

ferent owners on multiple floors in one building. In other words, two-dimen-
sional mixed-use development is possible while three-dimensional is not.

234
D3 – Energy
D3.1 Energy Policy

In the past, the Finnish government has focused on securing a cheap and
reliable energy supply for industry and domestic consumers, relying heavily
on Russia and other Baltic states to provide fossil fuels. Since joining the EU,
it began to adopt and integrate its policies with Europe. As the EU developed
a more robust and comprehensive energy policy framework, Finland turned
over much of its policy leadership to Brussels. Today, most energy policy is
tightly coordinated with EU recommendations and directives.

Finland's energy markets have been liberalised since the Energy Market
Act of 1995. In 1998, it became a partner in the Nord Pool electricity market
(Nordic Power Exchange); the largest power derivatives exchange market in
the EU and largest physical power market in the world.

Energy policy in Finland is organised into five principal institutions:

➢ M inistry of Employment and the Economy (MEE) is the principle

authority. Within the MEE, the Energy Department directs activities
through three subdivisions (Energy Management & Nuclear Energy
Division, Renewables & Energy Efficiency Division, and Energy Mar-
ket Division). MEE works with the Ministry of the Environment to
address GHG and climate change issues.
➢ T EKES (Finnish Funding Agency for Technology & Innovation)
finances R&D in the private and public sectors with public funds.
➢ V TT (Technical Research Centre of Finland) focuses on energy tech-
nology and how energy is used in transportation and industry.
➢ MOTIVA OY is a government-affiliated agency that "promotes the
sustainable use of energy and materials." It is a key organization in
developing and measuring voluntary energy efficiency commitments
in Finland through energy audits and information dissemination.

Finland's energy objectives as stated in its Climate and Energy Strat-

egy, will function as the government’s road map until 2020. The Strategy
describes policies and measures that will bring Finland into compliance
with the EU's climate and energy targets. According to an IEA analysis, the
specific objectives are:

➢ Restructuring energy production to meet GHG reduction targets.

➢ Promotion of free energy markets.
➢ Promotion of energy efficiency and conservation.
➢ Promotion of bio-energy and other domestic fuels.
➢ Maintaining high technological standards.
➢ Ensuring a diversified fuel mix.
➢ Ensuring security of supply.

(Energy Policies of IEA Countries, Finland 2007 Review 21-2)

235
 Finland is still greatly dependent on energy imports, especially with
regard to electricity demands. This dependence is evident in Finland's natu-
ral gas network, which is physically linked only to Russia. Net electricity
imports from neighbouring nations can reach 15-20% of total final con-
sumption. In addition, over 80% of oil imports typically come from Russia.

Finland's dependence on energy imports has made supply security a

high priority policy objective. This dependence is also responsible for recent
growth in renewables as a way to meet the government's self-sufficiency
objectives.

National energy policy is also a product of Finland's Kyoto emissions

targets for the first commitment period (2008-12). Finland committed to
stabilise its emissions at 1990 levels through a set of policies and mandates,
but mostly (75%) with emissions offsets. Over the last decade, Finland's
emissions have remained above its target despite these measures. While
the surplus emissions are a concern, closer analysis reveals an important
characteristic of the government's response to the challenges of energy and
climate change: greater political comfort with short term initiatives and
certainty. An IEA critique states:

We are pleased to note the link between energy policy goals and objec-
tives, and policies and measures that address these goals. However, the
government initiatives are generally focused on those that can bring
short-term benefits. For, example, in the area of climate change, much
of the government's efforts are placed on the European Union's trading
scheme for greenhouse gasses, the EU-ETS, a policy that brings clearly
defined, short-term benefits. Less attention is paid to the longer term,
such as to implementing policies and measures in the building and trans-
port sectors, areas where consumption is growing. Efficiency improve-
ments and emissions reductions in these sectors will require steady pol-
icy treatment as results are slower to emerge and less easy to quantify.
(Energy Policies of IEA Countries, Finland 2007 Review 27-8)

A focus on short-term gains can be interpreted as evidence of a lack

of political will. More likely, it reflects the government's long tradition
of deploying cost-effective solutions that minimise or distribute risk and
whose impacts are measurable. However, complex challenges like climate
change, long time frames and ambiguity will be constant factors.

D3.2 Consumption

Until the 1960's, Finland relied on hydropower and wood resources to

fuel much of its energy production. But as consumption increased to meet
a growing economy and an expanding population, the limits of domestic
energy sources were reached initiating increased levels of oil imports to
meet this demand. A natural gas pipeline to Russia was constructed in 1973

236
 and Finland's first nuclear power plant was commissioned in 1977. The use
of peat fuel sources also began to rise in the 1970's.

Finland’s existing energy supply mix is relatively well diversified. Since

the mid-80's, oil consumption, the largest fuel share, has been relatively
stable (25% in 2008). Wood fuels are next with 21%, followed by nuclear at
17%. Overall, fossil fuels still account for at least 52% of total consumption
(if peat is included). Renewable energy sources (RES) reached 28% in 2008
with the greatest growth in the wind and hydropower sectors.

Other
Net Imports
3%
3%
Hydro
4%
Peat Oil
6% 25%

Coal
10%

Natural Gas
11% Wood Fuels
21%

Nuclear Energy
17%

Source Total Energy Consumption 2008

Statistics
Finland

The predominance of fossil fuels has resulted in significant carbon

emissions from energy production in Finland. Yet carbon emissions per
primary energy unit are less than many European countries due to Fin-
land’s diversified fuel mix, which includes low or no emission sources.

Industry is the largest consumer of energy. The sector was responsible

for nearly half of Finland's total final consumption (TFC). The transporta-
tion and residential sectors each consumed about 20% of TFC; the commer-
cial and other sectors were responsible for the rest. These shares have been
stable over the last few decades, although both industrial and commercial
sectors have grown, especially during the last ten years. No one sector has
achieved a reduction in TFC.

Use of biofuels, hydro and wind continues to grow at a national

scale, and many of Finland's ubiquitous summer cottages are pow-
ered by solar and heated with wood, suggesting broad-based public
familiarity with RES. This familiarity is not insignificant as the argu-
ment for the efficacy of RES should be self-evident for Finns. Famili-
arity gives proponents of renewables a special advantage nation-
ally where the RES share has consistently approached 30% over the
last decade. In Europe, the average share of renewables is around 9%.
237
 1 600

PJ
Net Imports of
Electricity
Other
1 400 Peat

Wood Fuels
1 200

1 000 Hydro Power

Nuclear Energy
800

Natural Gas
600
Coal

400
Oil

200

0
| | | | | | | | | | | | | | | | | | |
1970

1974

1976

1982

1984

1986

1988

1992

1998

2006
1972

1978

1980

1990

1994

1996

2002

2004
2000
Total Energy Consumption 1970-2007 Source
Statistics
Finland
Finland has consistently had an energy import dependency greater than
50% (see table) in its modern history. Current projections show dependency
trending down in the coming decades as the share of renewables increases
and plants achieve greater efficiency gains.

Energy Profiles 2005 (Appendix 1: Model-based Analysis of the 2008

EU Policy Package on Climate Change and Renewables):

Country Import Share of CO2 Emis- GHGs Emis-

Dependency Renewable sions (Mt; sions Index
(%) Energy Energy (1990=100)
Sources (%) Related)

EU27 52,4 8,7 3947 93,4

Finland 54,7 28,8 54.1* 95.3*

Sweden 37,2 42,5 48,5 99

Denmark -51,6 15,5 48,9 94,6

Germany 61,6 5,9 804,8 80,9

*This emissions figure is misleading. In 2004 and 2006, Finland’s car-

bon emissions were on average 10 Mt CO2 equivalent higher because its
condensing power plants burned less coal than normal due to a very wet
rainy season and increased hydro production.

D3.3 Electricity Supply & Consumption:

Over the last three decades, nuclear power became the largest source of
electricity production in Finland. With the construction of a new nuclear
reactor Olkiluoto 3 (the first in an IEA European country in eight years) to

238
 be completed in 2012, nuclear power usage will increase, further enhancing
be completed in 2012, nuclear power usage will increase, further enhancing
supply security and decreasing carbon intensity. Olkiluoto 3, once opera-
tional, should produce a 33% increase in nuclear capacity.

The share of fossil fuels has grown in recent decades to meet increas-
ing demand from households and industry. Overall, fossil fuels account
for about a third of electricity production. Among renewables, hydropower
is the dominant source, but inconsistent due to seasonal variation in the
climate. Carbon neutral fuels such as wood chips and concentrated liq-
uor (e.g. Black liquor) make up a significant share of energy production.
Wind power p rovides less than 1% of electricity, but its share grew by 38%
between 2007 and 2008.

Other RES fraction

Other Wood Fuels
Other Energy Sources
6%
Concentrated Liquors 1%
7%

Wind
fraction
Nuclear Energy
30%

Hydro
23%

Oil
1%
Coal
Peat 11%
6%

Other Fossil Fuels

Natural Gas
fraction
15%

Production of Electricity by Fuel 2008

TWh

100
Net Imports of
Electrocity

80 CHP, District
Heat

CHP, Industry

60
Condensing
Power

40 Nuclear Power

20 Hydro Power

| | | | | | | | | | | | | | | | | | |
1970

1974

1976

1982

1984

1986

1988

1992

1998

2006
1972

1978

1980

1990

1994

1996

2002

2004
2000

Source Electricity Supply 1970-2007

Statistics
Finland

239
 As with TFC, overall electricity consumption is dominated by industry,
accounting for 53% of overall consumption in 2008, with 28% going to the
forest industry alone. However, according to preliminary data, 2008 saw a
sharp decline in industrial electricity consumption brought on by a slow-
down in industrial output. GDP also declined to 1% from the 4% in 2007,
helping to push down consumption.

Further analysis of 2008 reveals an electricity production system that

is in flux and is highly susceptible to climatic variation. The exception-
ally mild, wet winter of 2008 reduced space heating and district heating
loads by 2% from the year before and increased hydropower production.
In addition, combustion of wood chippings increased by 50% over the year
before while black liquor combustion declined. These dynamics combined
produced a record year for the share of renewables in electricity production
(28%) and a 13% decline in carbon emissions from energy production. With
industrial output down, Finland's total carbon emissions were just below
its 1990 levels.

While Finland has achieved compliance with its Kyoto target in 2008,
reductions were achieved through special circumstances rather than struc-
tural shifts in its energy production and consumption. With the exception
of the forest industry, consumption is still projected to increase across sec-
tors.

Losses
4%

Households & Forest Industry

Agriculture 19%
26%

Metal Industry
9%
Services &
Public Consumption Chemical Industry 8%
19%
Other Industry
6%

Source
Total Electricity Consumption by Sector 2008
Statistics
Finland

240
 100

TWh
Transmission &
Distribution Losses
Service, Public
80 & Other

Households &
Agriculture
60

Industry &
40 Construction

20

0
| | | | | | | | | | | | | | | | | | | |
1970

1974

1976

1982

1984

1986

1988

1992

1998

2006

2008
1972

1978

1980

1990

1994

1996

2002

2004
2000
Source Electricity Consumption by Sector 1970-2008
Statistics
Finland

D3.4 Renewables

The 2005 National Energy and Climate Strategy outlines four major
objectives for RES development in Finland:
1. The share of RES should increase by 25% in 2015 and by 40% in 2025
to achieve one third of primary energy supply.
2. Biofuels, including forestry chips, biomass, biogas, etc. should grow
by 65% in 2015 and by 80% in 2025 when compared to 2003 levels.
3. The share of RES in the electricity supply should reach 31.5% in 2010.
4. Biofuels should reach 5.75% of road transportation fuels by 2010.

The IEA finds that Finland generally takes a cost-effective approach to

developing its RES, investing around eighty-five million euros per year in
a variety of projects. Yet, Finland continues to lag behind many other IEA
countries in the development and implementation of feed-in tariffs and cer-
tification schemes. Currently, there are policies under consideration that by
2012 will put feed-in tariffs into practice.

Finland is ranked fourth highest among IEA countries for share of RES
in its total primary energy supply, behind Norway, New Zealand and Swe-
den which have substantial hydropower sources. Finland's energy supply
has the highest share of biomass among any of the IEA countries.

241
 400 Other Biofuels

PJ
Recovered Fuels
(bio-fraction)
Heat Pumps
Wood Fuels in
300 Industry & Energy
Production

Black Liquor &

Other Concentrated
Liquors
200

100 Small-scale
Cumbustion of
Wood
Hydro Power

0
| | | | | | | | | |
1970 1974 1978 1982 1986 1990 1994 1998 2002 2006

Fuels Used in District Heating & CHP 1970-2007

Source
Ministry of
the Environ-
Renewables have additional capacity for development in Finland. An ment and
Statistics
IEA summary of recent studies outlines development potential in three Finland
areas:

➢ Hydro. According to a report prepared by Finnish Energy Industries for

MEE, there is a total additional potential of 9.7 TWh annually. However,
most of that potential is located in places that are either protected from
development, uneconomic to develop, or both. The total economic poten-
tial in unprotected areas is about 1 TWh annually.

➢ Biomass. Additional techno-economic potential has been estimated at

upwards of to 30 TWh annually of fuel energy in 2020 on the basis of
analysis by Pöyry Energy, the Ministry of Agriculture and Forestry, and
the Ministry of Employment and the Economy. The additional biomass
would be used mainly as wood chips in CHP plants, equivalent to 15 TWh
annually. Possibilities to increase the use of biomass are closely connected
to the forestry and forest industry sector, meaning that changes in forest
industry production have large influences on biomass potential.

➢ Wind power. The theoretical potential in Finland is large (though less

than in Denmark or Norway) even though factors such as high global
demand that has increased costs and freezing seas complicate both off-
shore and wind projects in general. Nevertheless, according to Pöyry
Energy for MEE, the tenable potential for wind in Finland ranges up to
6 TWh annually through 2020. (Energy Policies of IEA Countries, Fin-
land 2007 Review 66)

Recently, Helsingin Energia, the municipally owned power company

that supplies Helsinki with electricity and district services, announced its
goal to achieve carbon neutrality by 2050. This is a substantial challenge as

242
the share of fossil fuels in its procurement mix is substantial: 57% natural gas,
26% coal, 10% nuclear power, 6% RES, and 1% oil in 2008. While the details
of its decarbonization plan are still unclear, the company has suggested that
a potential investment of approximately three billion euros. Initial efforts
will likely include the replacement of older coal burning condensing plants,
located in Helsinki’s periphery, with new wood chip fired plants.

D3.5 ICT-Smart City Potential

Finland is regarded as a leading centre for information and communica-

tions technology (ICT) innovation, and by most measures, the world's most
ICT-dependent country. Nokia, representing 2.2% of GDP, drives much of this
innovation by investing as much as a third of Finland's total R&D volume into
ICT. As a result, ICT is a central focus of the service and technology sectors
that are producing a workforce geared toward meeting growing tech demand.

Given projections from a recent study by the Global e-Sustainability Ini-

tiative sighting a potential 15% reduction in global emissions from ICT-driven
energy efficiency gains, Finland is well positioned to build capacity in emerg-
ing markets and make progress on emissions targets by retooling its tech sec-
tors to focus on climate change over communications equipment.

Firms such as GE, IBM and Siemens are piloting ICT-driven Smart Cities
approaches in Seoul, Delhi, Zagreb, Stockholm, London, New York, and San
Francisco among others.

From the CommonCurrent blog comes this summary of areas of activ-

ity and some of the firms involved. Others are added from the Smart 2020
Project:

➢ Healthcare process integration: Ericsson

➢ Traffic congestion monitoring and pricing systems: IBM, Capita
Group ➢ Water (leakage detection, purification): IBM, Siemens
➢ Buildings (sense-and-respond monitoring): Johnson Controls, Siemens,
IBM
➢ Public transportation and logistics: PwC, Samsung, Cisco
➢ Telecommuting, shared offices and TelePresence: Cisco, Hewlett-Pack-
ard, Sun
➢ Home & office appliances with smart grid energy applications: GE,
AT&T, Whirlpool
➢ Smart grids: GE, Schneider Electric, SAP, Oracle, ABB
➢ Energy monitoring/management tools: Google
➢ Urban data centres: Google, Hewlett-Packard, Cisco
➢ Carbon inventories and carbon accounting: Microsoft, Oracle

The breadth of the issues listed not only reveals complexity of reaching
a 15% reduction by employing ICT systems, but also illustrates the scale of
potential opportunities.

243
244
 D4 – Transportation
D4.1 Transportation Profile

Energy consumption in the Finnish transportation sector has been

growing over the last two decades. Oil consumption has increased by 19%
since 1995 and transport consumption remains high relative to other EU
states. Growing consumption of goods, suburbanization, increased vehicle
ownership, and consumer preference for larger vehicle engines have driven
up the energy curve in the transport sector. Meanwhile, the use of public
transportation has remained unchanged since the 1990's.

Currently, transportation policies in Finland are focused on improving

energy efficiency and to some extent, carbon emissions:
➢ Coordinating transportation systems with sustainable land use (pro-
moting public transportation options, cycling and waking; further
investment in transportation information systems)
➢ Voluntary agreements with commercial carriers
➢ "Ecodriving"
➢ Coordination with the EU (manufacturers and taxes)

As is the case with climate, Finland has looked to the EU for trans-
portation policy direction. With the Ministry of Transportation and Com-
munication's Transport 2030 plan released in 2007, new legislation should
begin to exceed EU directives and help Finland better incorporate the sec-
tor as part of its overall climate change mitigation strategy.

D4.2 Passenger Transport

Finland's domestic transportation has been increasing despite many

Finns moving into built-up areas. Since 1990 passenger-kilometres has
increased by as much as 19%. Passenger cars make up 82% of transport, an
increase of about a quarter since 1990. While overall use of public trans-
portation remained flat, there has been a decline in bus use while rail and
130
airline use has increased.
Index (1990=100)

125 Passenger Car

120 Passenger
Transport, Total
115

110

105

100 Public Transport

95

90
| | | | | | | | | | | | | | | | | |
1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Source Passenger-kilometres in Domestic Transport 1990-2008

Statistics
Finland
245
3.5
All Vehicles
3
Passengers
2.5 Vehicles

1.5

0.5

0
| | | | | | | | |
1922 1932 1942 1952 1952 1990 1994 1998 2002

Number of Vehicles (in Millions) 1922-2008 Source

Statistics
Finland

Finland averages about one car per two people, a figure that is above
the OECD and EU average. Car travel is evenly divided between leisure
and business travel. The stock of passenger vehicles is increasing by about
2.8% per year.

Vehicle traffic and congestion is increasingly problematic in Finland's

cities, especially Helsinki. Closer analysis reveals Helsinki's mobility den-
sity profile to be closer to North America than its European neighbours.
The pace of new vehicle registrations suggests the further aggravation of
the conditions on Helsinki's roadways.

D4.3 Freight transport

Finland's heavy industries have generated the largest share of economic

output since industrialization. As such, the transportation of raw materials
and products has a substantial impact of the country's overall transport
profile. This is compounded by the long distances and dispersedly distrib-
uted industrial centres in Finland.

Currently, 89% of all freight is transported by roadway in Finland, with

rail transport a distant second at 7%. With the decline of paper and pulp
industry, freight transport may become more centralised as the electron-
ics and engineering sectors gain prominence in the economy, leading to a
change in the existing transportation percentages. High added value prod-
ucts such as electronics are typically transported internationally from Fin-
land via air-freight.

246
 D4.4 Transportation Emissions

Finland's total transportation generated carbon emissions total about

20%. Along with energy consumption, emissions have increased 15% since
1997. Passenger cars are the largest factor, accounting for around half of all
transportation-based carbon emissions.

The Ministry of Transport and Communications has made carbon

emission reductions a central policy focus for the near and long terms.
Much is to be done to achieve substantial emissions reductions. Currently,
the Finnish fleet averages 80 g/km of CO2 emissions, a level above the exist-
ing EU average of 165 g/km, and far above the EU 2012 target of 120 g/km.

45 000
Million tonne-km

Water Transport
40 000 Railway Transport

35 000

30 000
Road Transport
25 000

20 000

15 000

10 000

5 000

0
| | | | | | | | | |
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Source Ton-kilometres in Domestic Goods Transport 1990-2008

Statistics
Finland

247
 Passenger Traffic in
the Helsinki Area
6% Passenger Traffic in other
Major Urban Areas
6%
Passenger Traffic in
Transport of other Major
Goods Urban Areas
36% 3%

Long-distance
Passenger Traffic
Passenger Traffic in 41%
other Municipalities
7%

Distribution of CO2 Emissions from Transport by Type 2002 Source

Kalenoja, H, et
al. "Potential for
Reducing Carbon
The Government Foresight Report suggests several broad approaches Dioxide Emissions
to emissions reductions. These include: improving efficiency through new from Transport in
Finland" Tempere
vehicle technologies; reducing the transportation demand; further promo- University of Tech-
nology, Traffic and
tion of public transportation and low or no carbon mobility; and the intro- Transport Studies
duction of policy measures. A larger challenge will involve the transforma- 48 (2002)

tion of Finland's built environment to support low carbon mobility, which

is likely to yield greater reductions.

248
D5 – Cultural Drivers
D5.1 The Lagging Memory of Leadership

Finland’s leadership in energy efficiency technologies and strong stew-

ardship of the use of natural resources and the preservation of the environ-
ment has created a public perception of excellence in environmental issues.
This perception is part of the national psyche and plays an important part
in how the nation faces the climate change challenge: Because of a sense
of accomplishments, the Finnish government has taken a light-handed
approach to the transforming its policy instruments, economy and priori-
ties to address GHG emissions and a shifting global landscape.

Evidence is both direct and indirect. In many areas of policy develop-

ment (especially energy and climate), Finland has relied on EU directives
and model policies to drive its own policy objectives. Other countries that
are the perceived leaders in addressing climate change (such as Denmark
and Sweden), have vigorously transformed their national objectives as the
danger and opportunity of climate change have grown. In its own Fore-
sight Report, the Finnish government identifies five other countries already
implementing a carbon neutrality pathway (Maldives, Costa Rica, Norway,
New Zealand, and Sweden).

There is indirect evidence of Finland’s self-perception regarding these

issues. Many citizens recall a time (during the Energy Crisis) when Finland
was at the forefront of providing energy models, efficiency policy, and tech-
nology know-how to countries struggling to change their energy consump-
tion practices. Current criticisms centre on Finland's perceived alignment
with more conservative EU member states with regard to environmental
and energy legislation. Some policy concessions suggest that Finland's
energy intensive industry retains some level of influence over the country's
political will.

Finns operate by consensus. Many of the challenges of the last century

such as employment, social safety nets, or healthcare have been tamed by
governmental and civil consensus. This is the fundamental precondition to
the efficacy of the Nordic Model. But a consensus-driven political mecha-
nism also bears some risks. Risk must be minimised or distributed, making
state-driven initiatives toward an alternative future, such as a decarbonized
economy, often seemingly inviable.

Now Finland finds itself in a state of flux. Though it was once a leader,
Finland has to confront the reality that it now has a long way to go in order
to catch up to its neighbours. This involves transforming its habits and
economy in response to global demands, providing the services required
by foreign economies and governments. With a global perspective comes
the demand for competitive national, economic, and even urban contexts.

249
 Policy planning in Finland is beginning to grapple with unprecedented
time frames. The Foresight Report looks to 2050. The transportation policy
framework stretches to 2030. Some energy planning scenarios are even
being investigated to 2100.

The challenge will be how to deal with the "here and now" once policy
objectives for the next generation are confirmed. Institutions and global
connectedness in general makes it relatively easy to see and adopt what
other leading countries are doing. The challenge will be to transform exist-
ing institutions and instruments to meet new objectives.

D5.2 Kyoto…That Was Easy!

At the time, and perhaps until very recently, the political atmosphere
in Finland was protective of heavy industry (paper, metal, chemicals, etc.),
geared toward ensuring cheap energy. This together with some natural
advantages (large carbon sink, low population) did not force the Finnish

Percentage Deficiency
Est 47,4%

PL 26,3%

H 23,9%

Sk 22,4%

L 16%

Cz 15%

S 7,2%

Gr 0,4%

F 0%

Percentage Surplus
GB 0,2%

D 3%

FIN 4,8%

EU15 5,8%

Slo 6,1%

P 9,5%

NL 10,6%

B 13%

I 13,6%

E 18,1%

IRL 18,6%

DK 21,3%

A 23%

| | | | | | | | |
50 40 30 20 10 0 -10 -20 -30

EU Member State Kyoto Target Deviation Projection 2001-12 (Fichtner) Source

http://www.
co2-info.com
250
government to make any emission reductions below 1990 levels for its Kyoto
target. In other words, Finland would continue “business-as-usual” so long
as its emissions levels were consistent with 1990 levels.

As with most Kyoto signatories, this commitment has proven difficult.

The DBCCA remarked in its detailed assessment that:

In 2006, Finland’s emissions were 13% higher than base-year level, well
above its target for the period. Projections show that with existing policies
emissions will increase to 20% above base-year by 2010. Finland hopes to
reach a level 1% below base-year through use of Kyoto Protocol mecha-
nisms and carbon sink activities.

The analysis goes on to point out that the European Environment

Agency reported in 2008 that Finland was one of six EU states that are fur-
thest from reaching their Kyoto targets. The Fichtner table reveals that even
Member States with aggressive climate policy profiles, such as Denmark,
are unlikely to meet their targets (by as much as 23).

D5.3 Security

Political and business leaders in Finland should question apprehension

about further loss in its past position of technical leadership. If one looks
to China's rapidly rising capacity for technical innovation, than the answer
is "yes," especially given the difficulty of regaining leadership once it is lost.
China's research and development investment has increased 20% each year
for twenty years to 70 billion USD. The 863 Program alone has increased
energy research investment nearly fifty-fold from 1991-2005.

To keep this in perspective, Finland is still a world leader in R&D

investment: 3.5% of GDP in 2007 compared to 2.7% in the US and 1.3% in
China (UNESCO Institute for Statistics). Investing additional resources
would probably not be prudent or cost-effective for Finland. But investment
occurring outside of the dominant states will reduce the impact of internal
investment. Finland's investments will need to be highly calibrated to the
challenges and opportunities of the time.

Finland also faces a significant security risk with regard to its energy
supply. The city of Helsinki provides an instructive example. In 2008,
83% of Helsinki's electricity, heating and cooling was generated from
fossil fuels, mostly procured from Russia. Finland's indigenous energy
sources are limited and its current energy production system is not ena-
bled to capitalise on its natural resources such as wind, biofuels and
hydropower (to the extent that greater capacity is available). For sev-
eral decades, Finland's energy policies have focused on ensuring secu-
rity of supply, but imported fossil fuels continue to be a large energy
source, especially in the country's most economically active, urban areas.

251
 D6: Governance
D6.1 Finland's Policies & Measures

Current climate policy in Finland is developed within the framework

of two treaties: the Kyoto Protocol (legally binding) and the United Nations
Framework Convention on Climate Change (UNFCCC). As an EU Member
State, Finland is bound to climate and energy Directives issued by the EC.
This two treaty/EU framework generally results in two phases of obliga-
tions: the 2008-2012 first commitment period of the Kyoto Protocol and the
post 2012 period that is largely driven by the EU's 20 20 by 2020 Climate
and Energy Package.

The Kyoto Protocol was the first international treaty to which Finland
responded with a national climate policy. Under the EU burden sharing
agreement, upon parliamentary ratification of the Kyoto Protocol in 2002,
Finland pledged to stabilise its GHG emissions at its 1990 levels during the
period of 2008-2012 (about seventy-one million tonnes of CO2 eq. per year).
Much of the necessary reductions can be achieved through emissions off-
sets under the EU-ETS scheme.

In 2003, the Ministerial Working Group on Climate Change and

Energy was established to coordinate the activities that lead to the 2009
Foresight Report. Representatives from the ministries constituted the
group that commissioned a series of studies of Finland and its climate and
energy challenges. The Report suggests four scenarios for how Finland
might achieve an 80% reduction in GHG emissions, but does specify bind-
ing targets or policies.

Other than ratification of the Kyoto Protocol, little substantial policy

work has been done in Finland on climate change until very recently. The
2009 Making the Climate Count report from the Finnish Environment
Institute (SYKE) sums up the state of affairs:

In previous decades little has been achieved to promote climate issues in

other areas. Following an increasing emphasis on climate issues in the
twenty-first century, especially during 2007-2008, the Finnish Govern-
ment and municipalities began to pay more attention to climate change
as well as to measures that could be taken to mitigate climate change and
to address its implications in different sectors. In 2008, the Government
began preparing a new long-term climate and energy strategy and the
Prime Minister’s Office coordinated a number of background studies for
a forthcoming foresight report on climate and energy policy. Through the
recent activities, the climate issue is increasingly becoming a horizontal
challenge for public governance in Finland. (Making Climate Count: Cli-
mate Policy Integration and Coherence in Finland 7)

252
 Stakeholder involvement and support for preparation and implementation:
Climate Forum of the Ministry of the Environment, expert organizations, universities, NGO´s and others

Kyoto Protocol Implementation

Statistics Finland, Energy Market Authority

Ministry of the Environment, Ministry of Employment and the Economy,

Ministry of Transport and Communications, Ministry of Finance,
Ministry for Foreign Affairs, Ministry of Agriculture and Forestry

Interministerial Working Group High-level Working Group of Government Officials

International Climate Policy Domestic Climate Policy

Domestic Climate Policy

International Climate Policy
Government, Parliament
Government, Parliament
Ministerial Working Group on
Cabinet Committee on EU Affairs
Climate Change and Energy
Ministry of the Environment
Ministry of Employment and the Economy

EUROPEAN UNION
Council of the European Union Commission of European Communities,
(Environment, Energy, Transport etc.) European Parliament
Working Party on Intl. Environment/Climate Climate Change Committee
Monitoring Mechanism

UNFCCC, Kyoto Protocol

Source Institutional Arrangements Concerning Climate Policy and its Implementation

Finland’s Fifth
National Com-
munication under With climate change taking a more central role in public policy dis-
the United Nations
Framework Conven- cussions, more ministries and agencies have an interest in forthcoming
tion on Climate
Change
regulations. This has, and will continue to significantly alter the policy and
governance landscape in Finland. In addition, the upcoming 2011 parlia-
mentary elections suggest that climate change may potentially become a
core issue in the new government. Many in Finland expect this new govern-
ment to invigorate the climate policy debate.

Detailed information on Finland's current policies, projected GHG

abatement impact and the various groups, ministries and agencies working
on climate change in Finland are outlined in Finland’s Fifth National Com-
munication under the United Nations Framework Convention on Climate
Change.

D6.2 The EU

The EU is driving much of Finland's climate change policy formulation,

especially for the post 2012-2020 period. As required, Finland's commu-
nication to the UNFCCC outlines its climate policy obligations as an EU
Member State:

253
 The EU legislative Climate and Energy Package adopted by the European
Parliament in December 2008 forms the framework for the EU's climate
policy after 2012. Under this Climate and Energy Package the European
Union is committed to reducing its greenhouse gas emissions by 20 per
cent by 2020 from the 1990 level, or by 30 per cent if a global and com-
prehensive agreement is reached. The majority of the reduction will be
reached within the EU emissions trading scheme (EU ETS). Emissions
from sectors not included in the EU ETS—such as transport, housing,
agriculture and waste—will be cut by 10 per cent from the 2005 level by
2020 within the EU as a whole. Finland's reduction obligation for sectors
not covered by the EU ETS is 16 per cent. It is up to each Member State to
decide how these targets not covered by the EU ETS will be achieved. A
Member State that fails to meet its targets will be penalised with a further
8 per cent emission reduction obligation.

The Climate and Energy Package also requires Finland to increase its use
of renewable energy sources to 38 per cent of final energy consumption by
2020 and the share of biofuels in gasoline and diesel to 10 per cent by 2020
(Finland’s Fifth National Communication under the United Nations
Framework Convention on Climate Change 99).

As is stated above, a majority share of the EU's Climate and Energy

Package targets can be achieved through emissions trading and offsets.
While this scheme helps states achieve climate impact reductions in a cost-
effective manner, it will not likely result in the urban, economic and indus-
trial transformations that will be necessary to achieve lasting, accountable
reductions.

However, the EU ETS is not without merit in a supranational sense.

It can help achieve impact other countries through two instruments: The
Joint Implementation (JI) and Clean Development Mechanism (CDM). The
JI and CDM are projects in other Kyoto Annex I or developing countries
that cost-effectively reduce emissions. These reductions generate tradable
emissions credits that can be used by the sponsor country to meet national
emissions commitments. Finland can use JI and CDM-based credits to
"reduce" up to a maximum of 10% of its emissions under the EU ETS.

Finland's domestic implementation of EU-wide policies is carried out

under the umbrella arrangement: Common and Coordinated Policies and
Measures (CCPMs). The major program include the EU burden sharing
agreement under Article 4 of the Kyoto Protocol (Decision 2002/358/EC),
the EU ETS (Directive 2003/87/EC), and the EU's 20 20 by 2020 Climate
and Energy Package and its Decision of the Monitoring Mechanism (Deci-
sion 280/2004/EC).

254
 D6.3 Domestic Scales of Governance

Finland's Parliament and Government are the primary decision mak-

ers for issues of climate change and policy. The Parliament is responsible
for shaping Finland's international relations and commitments, especially
with regard to the EU. It is responsible for determining how to implement
its international commitments according to the constitution.

The Ministry of the Environment leads much the government's

response to climate change and is the administrative body responsible for
dealing with the UNFCCC. All ministries have some role in addressing
climate change, although only the Ministry of Foreign Affairs, Ministry of
Agriculture and Forestry, Ministry of Transport and Communications and
Ministry of the Environment formulate climate-related policy.

The responsibilities and policy areas of ministries related to climate issues

Ministry Responsibility in climate policy Policy areas that have links to climate issues

Prime Minister’s Office Coordination of government programmes

Ministry of Foreign Affairs CDM projects Development aid; Trade policy; Foreign rela-
tions; Extended security policy

Ministry of Justice General guidance of legislative preparation

Ministry of Internal Affairs Rescue services; Guidance of provincial

planning: particularly the provincial plans
and the regional development programmes
of provinces

Ministry of Defence Public procurement (26%)*: procurement and

use policies of equipment, energy consump-
tion; Security policy

Ministry of Finance State finances (budget proposals and guide-

lines for the ministries); Guidance of public
procurement at state level; Energy taxes and
support; Other taxation and general support
policies; Municipal structure

Ministry of Education Educational policy; Research and science

policy; Public procurement (17%)*

Ministry of Agriculture and Main responsibility in the adaptation to Agriculture and forestry; Water supply and
Forestry climate change the use of water resources

Ministry of Transport and Transport Transport infrastructure; Transport and com-

Communications munication services; Public procurement
(22%)*

Ministry of Employment Main responsibility for climate change Energy policy; Emissions trading, Industrial
and Economy mitigation, energy, industry, services, house- policy; Technology and innovation policy;
holds, markets, technology development Monitoring and guidance of public procure-
ment

Ministry of Social Affairs Environmental health

and Health

Ministry of the Environment Main responsibility for international climate Guidance of land use and construction; Gen-
change negotiations, JI projects, community eral guidance of sustainable development;
structure, construction, waste Environmental legislation, permits, wastes

* Share of the total value of all public procurement

Finland's regions and municipalities also play a significant role in

addressing climate change at the sub-legislative level. Land use, transporta-
tion, waste processing, and energy production are often directly controlled
at the municipal level and thus can have a significant impact in Finland's

255
GHG emissions. For instance, Helsingin Energia, Helsinki's municipally
owned energy corporation provides the city with all of its electricity and
district services under the city's indirect leadership.

Five Finnish municipalities have initiated a carbon neutrality project

called Carbon Neutral Municipalities (CANEMU) that will attempt to
achieve emission reductions ahead of EU targets. The project will pro-
vide prototype solutions for the near (two to five years) and long (six to
twenty years) terms in the municipalities of Mynämäki (8,000 inhabit-
ants), Uusikaupunki (16,000 inhabitants), Kuhmoinen (2,700 inhabitants),
Padasjoki (3,600 inhabitants) and Parikkala (6,100 inhabitants). The Finn-
ish Environment Institute (SYKE) will coordinate implementation through
voluntary agreements and demonstration-based business practices. Its first
phase began in 2008 in collaboration with TEKES and Uusikaupunki is
already projecting a 30% GHG emissions reduction by 2014.

City and sub-national regional leaders are generally best suited to

design strategies to address their infrastructure needs, land use, geog-
raphy, and economic profiles. Central governments, in turn, can set out
the broad goals and frameworks to encourage action in the right areas;
they can also provide needed funding or other incentives for city initia-
tives. Together they could work closer together to develop and exchange
information about possible policy responses, to experiment with new
solutions, to share experience and broaden and replicate successful ini-
tiatives. (Gurría, Angel. “Competitive Cities and Climate Change.” 2nd
Annual Meeting of the OECD Roundtable on Urban Strategy of Mayors
and Ministers, Milan. 10 Oct. 2008.)

Some cities, such as Tempere, are acting more aggressively at local levels
to achieve GHG reductions. This activity, although independent of national
interventions, is often in collaboration with international partner networks.
Tempere has now integrated climate change-driven strategies into all of its
activities following its participation in the Peer Review for European Sus-
tainable Urban Development project in 2004. Tempere's climate initiative
is self-directed, but the national government is providing some outcome-
based program financing.

256
257
futures of finland

There's no way to predict the future, but by using scenarios we can make an
educated guess. In the following pages is a brief glimpse of what Finland may
look like in 2020 and 2050. As a projection, this is meant to act as a rough
guide for what we may reasonably expect.

Finland 2020 – At a Glance

Population1

➢ 5.6 million, evenly distributed between women and men

➢ Age distribution (in years)
0-14: 17%
15-64: 60%
65 +: 23%
➢ Population by age and gender 2020, projection 2009 2

➢ Natural population growth: 9,900.

➢ Net immigration: 20,000 (immigration: 36,000 persons, emigration:
16,000 persons).
➢ E migration mainly to EU and other European countries, North
America and Asia.
➢ O ver one million Finns live or have settled abroad.
➢ Some 1.1 million live in the Helsinki area, which includes Espoo and
Vantaa.
➢ City populations:
Helsinki 620,000
Espoo 280,000
Tampere 230,000
Vantaa 220,000
Turku 180,000
Oulu 150,000
Jyväskylä 140,000
➢ Some 80% of the population live in cities
➢ Commuting times and distance have continued to rise and the coun-
try’s average is now approximately 18 kilometres. Due to the dis-
tances, the majority of commuters use private cars.
➢ Life expectancy: men 79 years, women 84 years.
➢ Employment rate: 72%; unemployment rate: 6%.
➢ Foreigners 4%, most from Russia, Estonia, Sweden and Somalia; 25%
of Helsinki region dwellers have an immigrant background.
➢ Religion: Lutheran 75%; Orthodox 1%; Other 2%; some 22% do not
belong to a religious group.
➢ Languages: Finnish speaking 89%; Swedish speakers 5%; foreign lan-
guage speakers 6%.
➢ Major health challenges: alcohol abuse, obesity and memory-related
illnesses.

258
 ➢ E ducation: 29% of young Finns have a university of other tertiary
qualification; the share of women with a university degree or equiva-
lent is much higher than men.

Economy

➢ Finland is highly integrated in the global economy; international

trade is a third of GDP.
➢ Finns take approximately 6.8 million trips abroad, of which business
trips account for some 20%.
➢ Economic structure (employed persons by industry):
35% public and other services
18% trade, hotels and restaurants
18% financial and business services
12% manufacturing
7% transport and communications
7% construction
3% agriculture and forestry

1. Most of these figures are based on the estimations of Statistics Finland

2. Statistics Finland

259
Finland 2020 – Slow recovery from 2010

The traditional investment-intensive industry has slowly diminished in

Finland. Instead of electronics, machinery, and pulp and paper, the main
exports are products from knowledge and innovation-intensive businesses,
like biosciences, design, textiles, IT and education. Many companies are
geographically scattered around the world according to the availability of
skilled labour. Although Finland has succeeded quite well in transforming
its economic production after the 2010 recession, the national economy is
now only slowly recovering its balance and annual GDP growth is 1-2%. In
cities, there are large empty business properties awaiting alternative uses.

The service sector is still the major employer. Municipal services have
been further privatised and the demand for services has grown. The ageing
population needs more health services and to accommodate the need for
nurses, educated nurses from Asia are brought to Finland. Finnish nursing
schools offer programmes for nursing students from outside the EU that
qualify for jobs in EU member countries. Since depleting natural resources
have raised the prices of consumption goods, demand for other kinds of
commodities has increased: IT, cultural services, maintenance, tailoring
and dressmaking, especially from recycled materials, and design.

Politically, social democratic values are back after all the free market
and liberalism ‘hype’ around the change of the millennium, especially
equality. Although the economic situation has been tough, keeping up the
welfare system has been the priority of most political parties. The social
security system has been transformed, and instead of a complicated sys-
tem of various social benefits all citizens receive basic income. Since basic
income does not depend on other income, there is less of a poverty trap
there used to be, and self-employment becomes more attractive and com-
mon. This has led to a significant attitude change and empowerment of the
unemployed; there is a notable increase in small-scale businesses, handi-
crafts shops and community arts projects. The Internet and social media
have the main role in channelling the activities of civil society.

The continuous economic insecurity has increased the role of traditions

and conservative values of the citizens. Most Finns are still members of
the evangelical Lutheran church, although participation in weekly serv-
ices continues to decrease. New types of religious activity are on the rise,
e.g. Volunteering in church charities and awareness-raising campaigns on
Christian values, e.g. ‘no to abortion’. This has also influenced the political
spectrum; the Christian Democratic Party, which used to be quite small
in 2010, has gained more seats in parliament, and the centre-right wing
parties have turned more to the right. Similarly Muslim communities have
grown culturally and politically louder, and now there are more conflicts
between religious and ethnical groups than there have been for decades.
However, conservative, fundamental religious and racist views have stayed
in the minority compared to the liberal majority.

260
 Immigration, both legal and illegal, has increased. The foreign work-
force is more in demand: low-income blue-collar jobs are populated by
foreign workers from Africa and Asia, whereas highly-educated special-
ists are employed from all over the world—although most still come from
neighbouring countries. Illegal immigrants arrive especially from central
and southern Asia, due to the increased political instability in the regions.
Russian is the most commonly spoken foreign language in the Helsinki
region and there have been discussions about abolishing the status of Swed-
ish as the second official language. One or two new orthodox churches and
mosques have been built in the metropolitan area.

The average level of income has decreased in Finland due to several

years of economic stagnation and slow growth; further, differences in
income distribution have decreased slightly compared to 2010. The higher
middle class has somewhat decreased in numbers and changes in taxation
have favoured citizens with low income.

261
Finland 2050 – At a glance

Population

➢ 6.1 million, evenly distributed between women and men

➢ Age distribution (in years)
0-14: 16%
15-64: 57%
65 +: 28%
➢ Natural population growth: -4.000 persons
Immigration: 28.000 persons
Emigration: 13.000 persons
Net immigration: 15.000 persons
➢ Some 1.3 million live in the Helsinki area, which includes Espoo and
Vantaa. Other major cities: Tampere, Turku & Oulu.
➢ Population in major cities (Helsinki area, Tampere, Turku &
Jyväskylä): 35%.
➢ Working population decreasing; number of retired persons remains
constant; employment rate: 75%; unemployment rate: 6%.
➢ Population by age and gender 2050, projection 2009.
➢ 85% of the population live in cities.
➢ Life expectancy: men 83 years, women 87 years.
➢ Foreigners 10%, most from Russia, Estonia, Sweden and Somalia; 30%
of Helsinki region dwellers have an immigrant background.
➢ Religion: Lutheran 65%; Orthodox 3%; other 4%; some 28% do not
belong to a religious group.
➢ Languages: Finnish speaking 85%; Swedish speakers 4%; foreign lan-
guage speakers 11%.

Economy

➢ Economic structure (employed persons by industry):

30% Public and other services
12% Trade, hotels and restaurants
18% Financial and business services
17% Manufacturing
8% Transport and communications
8% Construction
7% Agriculture and forestry

262
Finland 2050 – Immaterial individualism

Globalization has taken new forms compared to 2010, since the costs of
travel and transportation have been raised to compensate for the environ-
mental impacts. Global trade in goods has diminished but global exchange
continues strongly via highly developed virtual channels. Many products
have become immaterial: newspapers, books, music and games, for exam-
ple, are sold only via the Internet in electronic format.

The world economy has managed to accommodate the economic set-

backs caused by the impacts of climate change and most EU countries have
positive GDP growth. China has taken the lead in the world market, and
the economic centre of the world has moved to Asia. Finland has succeeded
to have 3-6% GDP growth for the last decade. The main exports are biomed-
icines and intelligent textiles; both successes rely on the intelligent use of
wood fibres and cellulose, resources that Finnish forests produce plenty of.

Finland gains advantage within the EU from its close location to Russia.
Contacts and exchange with Russia have increased significantly compared
to the beginning of the century. Most Finnish exports are sold to Russia.
Many Finns work in Russian companies and commute daily from Helsinki
to St. Petersburg with fast, environmentally friendly trains that cover the
distance in ninety minutes —a journey that took over three hours with the
new fast train connection opened in 2010.

The service sector continues to be the main employer, although the

public sector has diminished. Some of the universality principles of a wel-
fare state have been altered; for example, citizens are now encouraged to
take better care of their health and well-being by providing better pen-
sions and social benefits to those who commit themselves to certain health
programmes related to obesity, coronary diseases, alcohol overuse, etc.
Services and medical innovations related to keeping people healthy form a
notable part of business sector.

There have been radical changes in production and consumption pat-

terns globally, due to environmental concerns. All citizens now have a
natural resource consumption quota, which limits the amount of natural
resources they can consume per year. Excess quotas can be sold, and the
trade in quotas is managed by the Stock Exchange. The introduction of a
personal quota system has caused a redistribution of income: less wealthy
people who have consumed fewer natural resources are in a position to sell
part of their quotas and increase their consumption, whereas wealthy peo-
ple who want to maintain at least part of their previous lifestyle have been
forced to buy quotas. Personal mitigation strategies have reflected the val-
ues of individuals—the diversification of lifestyles has decreased in mate-
rial respects but increased in immaterial ones.

263
 Environmental taxes and personal quota systems have significantly
reduced both business and personal travelling compared to 2010. The
attractiveness of travelling has, however, not disappeared and thus there
are new ways to travel and experience other cultures. Trips, once made, are
longer in time and concentrate in one place. Advanced virtual technolo-
gies allow people to travel for several months and continue working from
abroad. New exchange programmes for manual and service sector workers
have been created: A group of Finnish teachers, for example, may exchange
jobs with their Irish colleagues for months or even years.

Local consumption and production has increased, and the farming and
forestry sectors have grown in importance. There are groups of people, liv-
ing on basic income, who have moved back to the countryside to live in self-
sufficient communities. These communities who have embraced "poverty
as a lifestyle," use local trading and exchange systems in addition to the
regular currency.

Economic diversification has increased compared to 2010. The lower

middle classes are mainly educated but have low incomes and form the
largest group of citizens. The highest income group has also increased in
number, since the salaries for the most skilled specialists have grown and
are now competitive with the rest of the world.

The Asian influence is also seen in religious life as well as in econom-

ics; many who were previously Lutherans have converted to Buddhism and
Taoism. The share of Lutherans has also decreased due to the Muslim and
Orthodox immigrants.

264
Alternative trends: What else could happen by 2050?

Mass Immigration

In 2050 the world is suffering from the consequences of climate change.

Draughts and extreme weather conditions have caused famine and loss of
human life in many poor regions. Immigration has increased within the
EU from southern Europe, which suffers from draught and a lack of drink-
ing water, to northern Europe. Also, immigration from Africa to Europe
has intensified. Finland has received two waves of immigrants, first from
northern Africa in the 2030's and recently in the 2040's from southern
Europe. Some 20% of the population of Finland are now foreigners. English
has become the second official language in the EU and it is commonly spo-
ken in most workplaces in Finland. Most immigrants, therefore, manage
to find their place in job market. Catholic and Muslim influences on the
Finnish culture increase.

Food Scarcity

Megatrends such as climate change, biodiversity, environmental deg-

radation and population growth compile a situation where food security
becomes an even more critical issue over the developing world. Bioenergy
production, especially in the western world, adds to the problem by over-
taking a share of the fields used for food production. By 2020, surplus food
production in industrialised countries has diminished to close to zero.
Between the 2020's and 2050's, severe droughts, floods and storms attribut-
able to climate change also cause disruptions to the food security of citi-
zens in the western world. Finland struggles with the same problem but has
an advantage of relatively rich water resources for irrigation (if needed)
and space for farming expansions. Nevertheless, food security is a serious
issue and the share of food expenses rises notably in private households.
Professional farming becomes an attractive profession. Also, small scale
supplementary farming gains popularity among lot owners. Respect for
close-to-nature professions and know-how such as farming, fishing and
hunting rises.

Extreme Privatisation

There is severe economic hardship in funding state and municipal

operations. The Finnish welfare state model demonstrating strong and
high-quality public services leading to equal opportunities in education,
healthcare and social structures continues to deteriorate. To a certain extent,
more efficient processes are able to maintain the service level; gradually,
however, private options in healthcare and education, for example, attract
families that are better-off. Public authorities are not able to ensure the qual-
ity of public services due to budget limitations resulting from a political
unwillingness to raise taxes. By 2050, there are more or less separate private
and public lines of public services such as education and healthcare. This

265
slowly leads to the practice whereby social and professional opportunities
are inherited from the parents for the largest part of the population. Shifting
between the classes is only possible for the most talented individuals.

Brain Sweatshop

Recovery measures for the 2010 economic depression fail and the west-
ern economies prove to be unsustainable. A prolonged slowdown of the
global economy leads to the domino effect of collapsing western economies,
which kills western capitalism. Chinese capitalism is the new form of inter-
national trade and business. Western countries try to keep the research
and educational level high to compete with the Chinese but it is not quite
successful. Finland, as well as other European countries, become a cheap
‘brain sweatshop’ for Asian investors and leaders. The educated Finnish
working force mainly produces semi-demanding design and engineering
solutions and services that can be easily electronically transferred form
one place to another. The most talented individuals move to Asia for better
career opportunities. Western Europe becomes something like India was
for Westerners at the beginning of the millennium. Less educated young
Finns find it difficult to accommodate themselves to working life. There is
a very high level of youth unemployment, which becomes very expensive
for the government at the time. Also, a critical mass of frustrated youths
becomes violent, paralysing many societal traditions and structures.

Generation Change

By the end of the 2040's, most of the baby boomer’s generation have
passed away. Along with them disappears the hegemony of a generation
who has had a notable impact in society, and who have held widely accepted
common values and beliefs. The relatively homogenous Finnish identity
deteriorates and is replaced by subcultures and "value shopping." People
identify themselves more and more through subcultures and peer groups,
such as music style fan groups and other entertainment fan groups (e.g.
manga); professional groups; hobby groups; life-situations (e.g. Young fam-
ilies); or political passions. People tend to switch these ‘reference groups’
very fast. International companies and brands can establish a central posi-
tion as the symbol of certain groups. There is no uniform value basis or
leading institutions in society, but rather a puzzle of multiple pieces that
interact. The life circles of different groups become more isolated and a
nationwide common experience of ’being Finnish’ does not exist – it is not
even yearned for except in marginal groups.

End Of Party Politics

The turn-out of voters in elections continues to decrease, as well as the

membership of political parties. Traditional parties lose their legitimacy
and single-issue movements become more active players in political deci-
sion making. There are a variety of issues attracting a critical mass to estab-

266
lish a movement, such as "no to abortion," "more nurses for the elderly," "no
to nuclear power," etc. Political structures are reorganised and new ways
for direct democracy, like interactive planning procedures, are introduced.
For example, "open source wiki-applications" are used in city and budget
planning.

Church In Crisis

The Lutheran Church enters into a legitimacy crisis, since it does not
manage to follow the liberal public opinion regarding, gay marriages or
women priests, for example. Roughly half of the population are still mem-
bers of the church, but the trend is declining. Even fewer people practice
the religion. The Lutheran state-church system is abolished. In schools,
religious education is replaced by ethics and philosophy. Other forms of
Christian churches as well as other religious groups (including traditional
animistic religions) gain moderate popularity, but the major winners are
atheistic trends. In general, religion is becoming less and less significant
in society.

Climate Conflicts

Climate change reinforces existing drivers of conflict and therefore

threatens achieved development across many countries. Geopolitical ten-
sion also increases due to the diminishing availability of natural resources.
International cooperation drifts in a lock-up situation and nations turn
inwards. Finland finds itself in a situation resembling the situation in the
1960's, 1970's and early 1980's when geopolitical tensions were higher and
when economic activities were heavily regulated and guided by the govern-
ment. Industrial production relies on domestic raw materials. Competition
between countries is fierce and various protectionist measures such as high
tolls on imports are introduced. The highest earning people suffer a notable
drop in their incomes and the overall income level declines. The level of
income distribution decreases, since government interventions secure jobs
and income for most citizens. The majority of people turn to traditional
values of ’home, church and the fatherland’.

267
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20 20 by 2020: Europe’s Climate Change Opportunity. Commission of the

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Finland 2007 Review. Paris: OECD/IEA, 2007. Print.

Finland’s Fifth National Communication under the United Nations Frame-

work Convention on Climate Change. Rep. Helsinki: Ministry of the Envi-
ronment and Statistics Finland, 2009. Print.

Global Climate Change Policy Tracker: An Investor’s Assessment. Publica-

tion. DB Climate Change Advisors, Oct. 2009. Web. 01 Mar. 2010.

Government Foresight Report on Long-term Climate and Energy Policy:

Towards a Low-carbon Finland. Vol. 30/2009. Helsinki: Prime Minister’s
Office, 2009. Print.

Statistical Yearbook of Finland 2009. 2nd Revised ed. Vol. 104. Helsinki:
Statistics Finland, 2009. Pdf.

Sources for scenarios

Ympäristön tila Suomessa 2008:

➢ http://www.ymparisto.fi/download.asp?contentid=98319&lan=fi

Työmatkojen pituus kaksinkertaistunut 20 vuodessa (s.10)

Työmatkan pituus:
➢ http://www.findikaattori.fi/70/
➢ http://pxweb2.stat.fi/Dialog/varval.asp?ma=tyoma_tau_101_
fi&path=../database/StatFin/lii/tyoma/&lang=3&multilang=fi

Väestörakenne tähän asti:

➢ http://www.stat.fi/tup/suoluk/suoluk_vaesto.html#Vaestorakenne

Väestöennuste:
➢ http://www.stat.fi/tup/suoluk/suoluk_vaesto.html#Vaestoennuste

Population by age and gender 2050, projection 2009:

➢ http://www.stat.fi/til/vaenn/2009/vaenn_2009_2009-09-30_
kuv_003_en.html

Väestöennuste 2009–2060:
➢ http://www.stat.fi/til/vaenn/2009/vaenn_2009_2009-09-30_
tie_001_fi.html
Työministeriö (2007). Osaamisen ja täystyöllisyyden Suomi.
Työvoima 2025.

268
 ➢ http://www.mol.fi/mol/fi/99_pdf/fi/06_tyoministerio/06_
julkaisut/06_tutkimus/tpt325.pdf

OPH (2009). Koulutus ja työvoiman kysyntä 2020.

Tulevaisuuden työpaikat – osaajia tarvitaan.
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embeds/46470_koulutus_ja_tyovoiman_kysynta_2020.pdf
(262s.)

Suomi vuonna 2050 – visioita tulevaisuudesta (2008).

➢ http://www.minedu.fi/export/sites/default/OPM/Tapahtumakal-
enteri/2008/10/Ennakointiseminaari/Vanhanen.pdf

TEM (2009). Suomen aluestrategia 2020, kalvosarja.

➢ http://www.tem.fi/files/24519/Suomen_aluestrategia_2020_-
Veijo_Kavonius.pdf

Kaupunkiväestön tieto:
➢ http://www.kunnat.net/k_peruslistasivu.
asp?path=1;29;374;36984;148786

VNK (2009). Yhdessä ja erikseen – Maailma ja Suomi 2010-luvulla.

Toimintaympäristökuvaus ministeriöiden
tulevaisuuskatsausten taustaksi.
➢ http://www.vnk.fi/julkaisukansio/2009/j33-yhdessa-ja-erikseen/
pdf/fi.pdf (158s.)

Skenaarioita sosiaalimenoista.
Terveyden edistämisen vaikutukset ja analyysimallin esittely.
➢ http://www.stm.fi/c/document_library/get_file?folderId=39503&
name=DLFE-7307.pdf

EVA (2009) Evan Globaalit skenaariot: Tulevaisuuden pelikentät.

➢ http://www.eva.fi/index.php?m=2&show=373

269
 End notes

Prepared by Justin W. Cook, Sustainable Design Lead at Sitra.

The Futures of Finland was prepared by Gaia Consulting Group of Fin-

land and Switzerland.

This challenge briefing has been prepared in advance of the Helsinki

Design Lab Studio on Sustainability held on May 24th through the 28th in
Helsinki, Finland.

Sitra, the Finnish Innovation Fund, is responsible for organizing the

Helsinki Design Lab in cooperation with other key partners. Sitra is an
independent, publicly funded body which, under the supervision of the
Finnish Parliament, promotes the welfare of Finnish society. Since its estab-
lishment, Sitra’s duty has been to promote stable and balanced develop-
ment in Finland, the qualitative and quantitative growth of its economy,
and its international competitiveness and co-operation. Our activities are
governed by a vision of a successful and skilled Finland. We have always
operated with a strong belief in the future and in the ability of innovation
to benefit society.

HDL is a continuation of Sitra’s long-term activities in making design a

key driver in building the Finnish society and the innovation system. Sitra's
first design-related event was held in 1968, when it sponsored the Industrial,
Environment and Product Design Seminar (HDL1968).

Sitra will sponsor three studios during the summer of 2010 which each
bring a group of six to eight top international designers and key experts to
spend an intensive week in Finland "charretting" on a given studio topic.
With access to key decision makers relevant to their area of inquiry, these
teams will be charged with developing a strategic road map and a top ten
list of possible action items.

270
271
272
What follows is a complete re-printing of the
Challenge Briefing issued to the Ageing Studio.
For more about the studio and its outcomes
see > PP 74-83.

For more about the style, role, and format of

Challenge Briefings see > PP 97-99

273
274
 As the average age of many societies in the developed world
steadily rises, the basic assumptions of daily life are being
rewritten. This change affects not only the members of this
ageing population, who are facing increasing competition with
a constantly growing peer group, but also by those individuals
and communities who provide care and support for the elderly.
As Baby Boomers retire, every level of society will be affected—
from the individual to the institutional—with particular attention
focused on the interfaces between these different groups.

The coming of this “Silver Wave” is coincident with broader

structural changes occurring globally. Post-war welfare institu-
tions are subject to additional stresses as they confront unfa-
miliar conditions such as expanding markets and competition,
increasing diversity and fluidity, and new understandings of citi-
zenship, participation, and social relationships. Welfare systems
will have to evolve along with the constituencies that they serve
if both are to continue with dignity into the twenty-first century.

The Nordic Model has garnered particular attention because

of its manifold successes. Tight integration into social fabrics
and deep penetration into economic foundations make the Nor-
dic Model unique among welfare systems. It is unclear if such a
structured, embedded model is flexible enough to accommodate
the onset of these structural challenges.

Models that prove too rigid or brittle will likely fail under
mounting pressures. An agile response will require that the
“how” be as flexible as the “who” is diverse and numerous.
Success suggests three major shifts:

• Broadening the emphasis of care beyond institutions;

• Repositioning our understanding of the elderly as a norm
rather than the exception;
• Intensifying our attention to social wellness in addition to
biomedical health.

The future of social welfare systems—their scope, structure,

and form—is in flux as societies continually struggle to provide
for the well-being of all its citizens. This state of flux is par-
ticularly important as the Silver Wave fundamentally shifts the
dependency ratio, a term used to describe the balance between
productive and dependent members of society.

275
 Providing adequate care for the elderly, while also preserv-
ing their dignity, will be one of the earliest challenges for exist-
ing welfare systems. Handling the ageing challenge will yield
broader insights for understanding how society at large cares
for itself. Harnessing the untapped potential of the elderly as
a value-producing segment of society, rethinking societal and
institutional roles and responsibilities, and devising new ways
to measure progress and set targets constitute key areas for
future development.

The basic terms of the discussion remain open for definition.

For instance, “old age” can be described in a multitude of ways:
although a biological definition may be the easiest to evaluate,
it can also be limiting. To recast ageing as an opportunity rather
than as a problem—to change the very understanding of “eld-
erly” is where we must start any conversation about the future
of these welfare systems and the populations they support.

276
Opportunity Space

With one of Europe’s most rapidly ageing populations, Finland faces a

daunting challenge in light of the imminent retirement of the Baby Boomer
generation. The onset of sudden strains and intense pressures specific to
Finland will draw increased attention to shortcomings of the existing wel-
fare system.

However, the challenges put forward by this condition present Finland

with a unique opportunity of unprecedented scale: Given its long history of
fostering innovation and growth, Finland is in a perfect position to capital-
ize on the pressures created by this challenge and channel them towards the
production of new areas of expertise and prospects for growth.

The imperative to act quickly and the impetus to respond fully to

the challenge ahead will inevitably create substantial momentum toward
changing how Finland provides for the welfare of its citizens. If this
momentum can generate more than a simple solution to the immediate
problem, the opportunity to restructure the welfare system will generate
new benefits for Finnish society as well as constitute valuable strategies that
can be used by other nations with similar ageing populations.

Finnish society, and its elderly population in particular, are key assets
in this challenge. As a nation that values strong family bonds, one impor-
tant element for enhanced social approaches to care is already in place. A
powerful cultural work ethic also offers the opportunity to shift labour
out of a binary notion of career and retirement to a “downshift” model
of phased transition. This stepped phasing would ease the overall impact
of Finland’s dependency ratio in a culture whose tendency for consensus-
based action often results in a reluctance to act until the establishment of
a proven path.

Because the social contract underlying the Finnish welfare system (a

contract common to other Nordic welfare states) ties generations around
service providing structures, the overall health of the Finnish welfare state
is heavily contingent upon the balance between its productive and depend-
ent members of society.

The social contract will be tested as the dependency ratio rapidly

increases, doubling within the next thirty years. The magnitude of com-
ing pressure threatens to render traditional operations ineffective; practices
such as targeting tax raises on the actively working populations is finan-
cially impossible, while lowering the scope of welfare services is socially
unpalatable, and increasing immigration, improving efficiency, and other
quick fixes seem unlikely.

If Finland hopes to successfully counter these pressures while exploit-

ing the opportunities presented by this challenge, it must first find a way

277
to hedge risk with competitive growth. Finland must embrace a strategy
for capitalizing on the opportunities presented by its ageing population in
a manner that is more social than institutional in nature; it must invest in
the renewal and redefinition of the social contract between generations.

In order to create value potential, Finland must rethink how and why it
delivers welfare services to the elderly, as well as redefine a general under-
standing of the term “elderly.” This will necessitate innovation in the broad-
est understandings of the role of the elderly within society. It will require
evaluation and adaption of how the elderly population is integrated into all
aspects of their surroundings such as, their position in the overall social
fabric, the character of their consumer presence, their location within the
built environment, and the means of their political participation.

Finnish society must find a way to embrace the notion of a healthy,

productive, independent, and connected old age for its citizens as a means
to change the very way that ageing is understood. Improvements to the
elder care system must involve the full participation of all levels of society
so as to provide a more robust societal support network. The elderly must
be reintegrated into the rest of society in such a way as to preserve their
dignity without adding additional strains on the welfare system.

278
The Challenge: Finland At The Forefront

While the coming retirement of the Baby Boomers is a global occur-

rence affecting countries worldwide, the event is of particular significance
in Finland, a country where a large segment of the population is projected
to age rapidly over the next twenty years. Finland’s integrated, compre-
hensive welfare system will be the first to experience meaningful pressure
from the worldwide increase of the elderly population. Here in Finland,
the magnitude of the pressure will strain the welfare system more seriously
than elsewhere.

Awareness of this mounting pressure is spreading throughout Finnish

society. Currently, the problem is discussed in essential economic terms:
Retiring Baby Boomers will create a sustainability gap in the national
budget if the dynamics of the situation are not changed. Proposed solutions
are often accordingly framed in economic terms.

The most serious strategies for addressing the situation generally

involve one or more of the following three propositions: tax increases,
reduction of the scope or quality of services, and an increase in systemic
efficiency.

Such proposals have yet to produce realistic responses to the situation

because they are either economically unfeasible (i.e. Increasing the welfare
burden of the working population) or socially unacceptable (i.e. Challeng-
ing the provision for universal welfare coverage). Other proposals, such as
increasing the immigration rate or encouraging rapid economic growth,
remain implausible quick fixes for the challenge at hand.

As a result, Finland continues to lack a meaningful strategy of signifi-

cant momentum to address the issue raised by the presence of a rapidly age-
ing population. The challenge facing Finland, and this studio, is to develop
a feasible strategy that dramatically re-frames the dimensions of the prob-
lem so as to reveal previously unseen opportunities. Such a strategy has the
potential to mobilize society and provide the tremendous force necessary
for positive change.

Harnessing The Momentum

Underlying the economic principles that describe the state of the Finn-
ish welfare system is the social contract between generations. This contract,
which lies at the root of both the challenge and the solution, dictates the
terms of the very relationship that will be strained by the retirement of the
Baby Boom generation.

This social contract should be the first point of consideration for the
development of any strategy designed to address the support of Finland’s
rapidly ageing population. Potential strategies will have to account for both

279
participants in the relationship: the working population that is currently
supporting the welfare system, and the retiring population that is becom-
ing dependent on it.

To dramatize the problem, the dynamic between the welfare system and
its beneficiaries will have to be altered radically. Balancing the inputs and
outputs that feed the current system is one option, but Finland may also
seek to redefine the entire system in such a way as to create a new relation-
ship that encompasses a satisfactory balance.

At the most elemental, such a redefinition must create new value if it

is to produce a balanced system. Turning to the elderly—the fastest grow-
ing segment of the population—as the potential source of this new value
is the most logical. The elderly cannot be considered a negative variable
in the welfare system, a criteria that compels basic structures to be altered
so that ageing individuals become a positive contributing segment of the
community.

Finding A Strategy For Producing Value

The untapped potential value of the elderly population in Finland is

both economic and social in nature. The elderly should be given the oppor-
tunity to capitalize on their value potential rather than simply be cared for
by the welfare system.

Strategies such as raising the retirement age or extending functional

capacity to delay retirement are too simplistic. The challenge demands the
creation of a more nuanced strategy that recognizes and capitalizes on
types of value that are not immediately quantifiable in economic terms.
This strategy must engage a range of different components and scales
of Finnish society, and address different structures and constituencies
through a variety of understandings and frameworks.

A rich, multifaceted strategy should begin by addressing some of the

following structural concerns:

The strategy must strike a balance between social and medical

approaches to understanding and interacting with the elderly. Integration
of these two ways of thinking and acting will correctly frame the challenge
by combining qualitative understandings of the elderly situation with more
analytical, medical ones.

➢ The strategy must also find a balance between social and institutional
proposals. Concentrating the focus only on institutional actions will prove
too inflexible and costly. A purely social focus will lead to a thin, unrealistic
solution. The strategy must consider distributed, subtle, social solutions in
addition to centralized, clear, institutional ones.

280
 ➢ The strategy must also engage all parties with the political system. If
the strategy is to succeed, various constituencies must be able to partake
in its creation and implementation. Political notions of citizenship, rights,
privacy, individuality, family, social network, and disciplinary structure
will need to be addressed. Encouraged by the need to redefine the means
and modes of democratic participation, dramatic government overhauls are
currently underway. Any successful strategy must consider how the work-
ing and elderly populations will position themselves and participate within
the political system of the future.

➢ The strategy must involve other groups into the discussion. Beyond
considering the elderly and working populations and the government that
runs the welfare system, the strategy must foster meaningful connections
with private enterprise, volunteer groups, the church, and other groups that
hold prominent positions within society, groups which have in the past
been often overlooked or undervalued in the discussion. The potential for
meaningful contribution by these groups is increasing as welfare structures
open up.

➢ The strategy must operate at scales that range beyond the typical rigid
landscapes of systemic care. Finland requires a strategy that captures how
the elderly fit into the larger urban ecosystem, that recognizes that well-
being is defined by surrounding environments, contexts, mobility, infra-
structure, networks, and communication.

➢ A successful response to this challenge will require coming to terms

with the reality of old age moving from the exception to the norm. As soci-
ety ages with the Silver Wave, issues typically reserved for “the elderly”
will move beyond the confines of a single population. Increasing the well-
being of the elderly could dramatically redraw the fundamental balance
of the social welfare system. Such a change would counteract the coming
wave and lay the groundwork for a more sustainable care system that would
involve institutional, social, and individual models in a cooperative and
productive balance.

281
 Key Dimensions

Provided below are a number of key dimensions to the ageing challenge. This
list is by no means exhaustive and exploration of additional dimensions is
encouraged.

D1—The Looming Wave

The Baby Boom generation is approaching retirement age. In Finland,

as the retirement population surges, a significant shift in the demographic
balance will have profound effects on the structure of the Finnish welfare
system.

8%
Finland's population by age cohort

2009 2050

7%
2020

6%

5%

4%

| | | | | | | | |
5-9 15-19 25-29 35-39 45-49 55-59 65-69 75-79 85+

Population of Finland by percentage that each age cohort represents. 2009 based on actual Source
data; 2020 and 2050 based on projections.
Statistics
Finland

The estimated increase in the number of individuals over sixty-five will

rise from 16% of the overall population to 26% by 2030. At the same time,
the proportion of the population under fifteen will decrease from 17% to
15.5% by 2040. This represents the effective doubling of the dependency
ratio by 2030. (Statistics Finland)

The retirement of the Baby Boomers will produce a critical imbalance

between the number of working and non-working citizens. This imbalance
will in turn produce a sustainability gap in the national budget. While
it is unrealistic to propose a particular figure that could close this gap, it
remains clear that if everything is held constant, the retirement of the Baby
Boomers will create long-term systemic deficits regardless of which under-
lying assumptions are made.

282
 70

Old age dependency ratio in Europe

60

50

40

30

20

Source 10
Eurostat

0
| | | |
Finland
2000 2010 2020 2050
Average
of EU 27

2010-2050 based on projections.

Average net contribution per capita in Finland by age

contribution
Net social

20k EUR

10k EUR
Net social cost

-10k EUR

-20k EUR

-30k EUR

Source -40k EUR

Vaittinen and | | | | | | | | | |
Vanne (2006) 0-4 10-14 20-24 30-34 30-34 50-54 60-64 70-74 80-84 >90
as in The Nor-
dic Model The difference between tax payments (of
various kinds) and the value of transfers and
individual services received.
283
 D1.1 Origins Of The Wave

The Silver Wave is a particularly large population for a certain genera-

tion. This imbalance is a consequence of the confluence of a number of fac-
tors: extremely high fertility rates after World War II, steadily increasing
life expectancy, and dramatically declining infant mortality rates. Addi-
tionally, the fertility rate has remained below the replacement rate for more
than a generation, so more people are exiting the workforce than entering it.

At the end of World War II, the number of births in Finland reached
a historical high. September 1945 saw an all-time record of 12,000 births
in a single month, while 1947 set a record with 108,168 total births. At that
time, the national fertility rate was 3.5 births per woman and has dropped
to 1.8 births per woman, a figure that has been constant for the past three
decades.

Life expectancy at birth and total fertility rate in Finland, 1960-2050

90 2.8

Fertility rate
Life expectancy at birth

Female Life
expectancy
2.6
85

2.4
80
Male Life
expectancy
2.2
75

2.0

70
1.8

Fertility rate
65 1.6

60 1.4
| | | | | | | | | |
1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Data from 2001-2050 is projected Source

OECD Health
Data (2001)
and Statistics
Finland

Since World War II, the life expectancy of Finnish citizens has been on
the rise. After national independence, life expectancies for men and women
have risen from 43/49 to 76/83 years of age, and represent one consequence
of a dramatic increase in the Finnish standard of living. With its history
of innovation, Finland has managed to address life-threatening problems
such as a very high incidence of cardiovascular disease (especially among
men). During the post-war and post-independence period, Finland has also
significantly reduced its infant mortality rate, which is currently one of the
lowest in the world at under 0.5%. (Statistics Finland)

284
 D1.2 Previous Effects Of The Silver Wave

Combined, these demographic trends have created a significant “surge”

in the graph of population size versus age. As the Silver Wave ages, it moves
along the graph, placing stress on various aspects of the Finnish welfare
system. Although the ageing of the Silver Wave population presents a sig-
nificant strain to the Finnish welfare system, retirement is not the first time
that the system has felt the effects of the Baby Boom generation’s size.

As the Baby Boomers entered the workforce in the 1960's and 70's, they
also created substantial pressures. Internal migration in Finland increased
dramatically as the population moved to towns and urban centres in search
of work. This trend reached a high point in 1974, when over 275,000 people
(nearly 6% of the country’s total population) changed municipalities. (Sta-
tistics Finland)

The labour market was unable to accommodate such a significant influx

of people, so emigration from Finland also increased dramatically over this
time period: hundreds of thousands of people left Finland for Sweden. As a
result, in the mid-1970's, Finland experienced its first population reduction
in over three decades (since 1940). Though emigration later ceased, Finland
has experienced lower immigration rates than other European markets
as the Baby Boomer population continues to provide a constant source of
readily employable labour. (Statistics Finland)

D1.3 Who Are The Baby Boomers?

Eventful historical developments that occurred at critical times for

the Baby Boomers seem to bind them as a generation. The radical social
changes of the 1950's and 60's have cast them as a generation of change or
upheaval. Their generation also benefited from increasing access to edu-
cation, expanding labour markets, migration towards urban centres, and
social mobility.

The Baby Boom generation is often seen to be in opposition of the more

conservative values of preceding generations. They are the first generation
to embrace the openness and mobility of an increasingly global society;
they lived through the expressive revolutions of the twentieth century.

Baby Boomers are also defined by conspicuous consumption. They have

lived primarily in times of economic growth, full employment, and increas-
ing materialism. The Baby Boom generation grew up in world defined by
the engine of consumption, and as a result they have been able to success-
fully exploit the agency that is attached to consumer choice.

Finally, it is worth noting that the Baby Boomers are the first children
of the social welfare system. The Finnish welfare system developed lockstep
with the Baby Boomers, the first generation to receive child benefits; the

285
 first group of dependents of the social contract between generations that
defines the Nordic Model. The fates of the Baby Boom generation and the
social welfare system have been tied together since their inception, and will
continue to be intertwined well into the future.

D1.4 Preparing For The Wave

"Perfect Storm"
Intensity of
economic, social
"Rise in sea level"
and demographic
pressures

"100 Year Flood"

Time

The following three descriptive models are conceptual starting points

for considering the pressures that the Silver Wave will put on the welfare
system.

The hundred-year flood: The Silver Wave can be likened to a coming

flood, a finite surging and receding of demographic, financial, and social
pressures. In this situation, is it better to prepare for a one-year flood, a
ten-year flood, or a hundred-year flood? With short-term preparation, in
the case of the one-year flood, one risks being swept away by a larger swell.
Preparation for the hundred-year flood creates risks of bankruptcy through
excessive expenditure. Should the Silver Wave be considered a temporary
challenge to the welfare system—however long in duration—that will even-
tually recede? How can solutions be scaled up and down accordingly?

The Rise in Sea Level: If the surge is not temporary, it may be likened
to a permanent rise in sea level. The changes demanded by such an event
would imply the occurrence of deep and permanent paradigm shifts. Is it
constructive to view the ageing issue as demanding a permanent paradigm
shift that will irrevocably alter the structure of the welfare system? If so,
how does one prepare a system for such a dramatic structural realignment?

The Perfect Storm: Perhaps the Silver Wave represents the incredibly
unlikely confluence of a number of different powerful variables, one that
may be compared to a perfect storm descending upon the Nordic Model.
While it may be unreasonable and even impossible to adequately prepare
for such a scenario, the severity of its potential effects demand that it be
considered and that preparations be made. Is it meaningful to cast the chal-
lenges of the Finnish welfare state in such a drastic light? (One where the
only option is to prepare for the total replacement of the welfare system?)
If so, how does one design a new system and still retain aspects of existing
system?

286
 D2—The Welfare Landscape

For the elderly in Finland, the welfare system is a complex landscape

of services, relationships, and physical places. As individuals move beyond
retirement age, the features of this landscape will define ever greater por-
tions of their journey—from where one lives, to what one eats, to defining
how and with whom time is spent.

Individual paths through this landscape are unique; each journey is

determined by a constant interaction between the elderly individual and
the available options provided by the welfare system. Like individual
health, pathways through this landscape are often complex and non-linear.

Individual

Income Employee Pension, National Pension, Housing Allowance, Care Allowance

ASSISTANCE - Advisory
Advice
Center

Community - P rivate

Help - Volunteers
- Neighbors
- Family

Government - Home Care - Home Nursing

Help
- Home Service - Meals-on Wheel
- Transportation
- Security & Coping
- Clothing & Cleaning
- Social Participation

Preventive
Home Visit

Day Service - Stimulation

- Exercise
- Social Interaction

HEALTH CARE - Health Center

- Home Nursing
- Service Housing Nursing
- Special Dementia Service

HOUSING live in an institution - short term care - nursing home

- long term care - a bed in a health center
- part time care - a bed in a specialized health
facility

live in service housing - individual service flat - may be intensive care (24hr)
- service flat cluster - s pecial group homes for
- service block dementia patients

live at home - live with others - live in cooperative

- renovation grants - live with family
- informal care support
- live alone
d ementia is a real
problem here:
75-84: 10,7%
>85: 35,0%

287
 D2.1 Defining The Landscape

The defining features of this welfare landscape map onto the features
of the real landscapes of Finland in which it is embedded. This landscape
is described by the structures and properties of the built environment,
the infrastructural network, the social fabric, and the product and service
delivery systems of Finland.

Therefore, understanding the structures and properties of the urban,

suburban, and rural ecosystems of Finland is the key to engaging the wel-
fare landscape. In order to begin strategically rethinking the welfare system
of Finland, one must begin by considering the designs of the various envi-
ronments in which it is situated.

Based on the conclusions of a Social Services Needs Assessment—a

basic right, conducted by a panel of experts at age sixty-five or older—as
an elderly person begins his journey across this landscape, he faces a bewil-
dering array of possibilities as to how his life will be framed and choreo-
graphed during the ageing process.

D2.2 Physical Environments

The question of where to live is perhaps the most fundamental deci-

sion affecting the elderly and the infrastructure systems connected to these
environments. The primary options of living at home, in service housing, or
in an institution are each located within different urban, suburban, or rural
contexts. Together, these factors determine an elderly person’s surround-
ings and their mobility options.

Live at Home

The option to remain at home is currently the one favoured encouraged

by the Finnish government. As stated by the Ministry of Social Affairs and
Health’s National Framework for High-Quality Services for Older People,
the nationwide goal for 2012 is to have 91%-92% of persons over the age of
seventy-five living at home. As of 2006, the reported figure nearly met the
goal as a recorded 90.1% figure (Facts about Social and Health Care).

Living at home is defined as living outside of the welfare state’s physical

care infrastructure (composed of institutions such as retirement homes and
hospitals). Home living is characterized by independent living within one’s
own apartment, with a family member or within an informal cooperative.

Persons unable or unwilling to live at home, even when a supporting

network of home care and support services is available, will likely opt for a
residence where care and services are more explicitly and tightly integrated
into the design of the living environment. There are a number of differ-
ent types of such facilities, whose entry is generally contingent upon the

288
specifics of the potential resident’s physical and mental condition, or the
functional capacity.

Residence within such a facility generally becomes more expensive,

complex, and restrictive as the individual’s independence declines. As
of 2005, 6.9% of the Finnish population over sixty-five was dependent on
institutional care and services; this figure is the smallest among the Nordic
countries, with Sweden at 7.0%, and Norway, with 11.7% (Facts about Social
and Health Care).

Service Housing

An elderly person residing outside the home may chose between two
primary types of care facilities: Service housing (or sheltered housing), is
one type of residence in which a full suite of care and services are avail-
able (on demand); in some cases such care is provided on a 24-hour basis
in those facilities that offer more intensive care. Service housing exists as
individual, clusters, or entire blocks of such apartments.

As of 2007, approximately 29,300 people sixty-five and over lived in

ordinary service housing, while 2.3% lived in 24-hour service housing (Sta-
tistical Yearbook). This percentage has steadily increased, having more than
doubled from 2000 to 2007 (Statistical Yearbook. During the past decade,
this 24-hour type of institutional care is the only one to have experienced
an increase in Finland. It is also a relatively new form of care that yet to be
officially defined.

Institutional Housing

An elderly person in need of the most complex or comprehensive inte-

grated care may chose to live in an institutional environment. Such institu-
tions offer part-time, short-term, or long-term care, and include nursing
homes, general health centres, and specialized health facilities. An indi-
vidual that typically enters such a facility due to specific medical and social
conditions that demand a very particular forms of institutional care.

For example, most nursing homes and health centres have a significant
long-term population that is suffering from dementia, which is very preva-
lent amongst the oldest of the ageing population (10.7% of those over sev-
enty-five and 35% of those over eighty in Finland (Health in Finland)). As of
2005, 45% of the patients in nursing homes, and over 53% of the long-term
patients in health centres, suffered from dementia (Statistical Yearbook).
These residents live within special parts of the institutions that have been
designed to accommodate the particular needs associated with dementia.

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 D2.3 Social And Service Networks

An elderly person also faces an array of options concerning the social

fabric and service networks they will be connected to—who provides the
care and services for their well-being? The primary support sources are
provided by institutional systems, from independent social networks, or a
hybrid situation such as a home care system. These systems will determine
an elderly person’s social context and service environment. These options
are combined with the different physical environments above for a range of
possible permutations.

Home Care

An elderly person who lives independently is still able to receive a range

of different services and nursing care through the home care system. Care
available at home ranges from yearly preventive visits to daily procedural
visits. As of 2004, 10.6% of people over sixty-five living outside of institu-
tions received some form of daily assistance within the home (with 3.6%
receiving 24-hour care), while 74.8% received little to no help at all (Health
in Finland 55, figures reported on the male population, but those for women
are similar, though slightly lower). Assistance fall into a number of differ-
ent categories, which are based on the type and scope of services provided.

The government has typically made a distinction between home serv-

ices and home nursing (which are now merging under the umbrella con-
cept of home care) primarily based on the level of the qualifications of the
service providers. “Nursing” may include technical medical assistance and
mental or physical rehabilitation, while “Services” might include meals-
on-wheels, transportation, or laundry and cleaning services. In addition to
these services, there are other “day services” that include programmemed
activities aimed at encouraging social interaction or exercise.

Social Networks and Informal Care

In addition to governmental home care services, an elderly person liv-

ing alone or with family might receive more informal types of assistance
from their surrounding community and social network. Assistance at vary-
ing levels of formality might be provided by family members, the commu-
nity, volunteers, or even private organizations. If an elderly person lives
with others or has caretakers, care services may be financed by the govern-
ment through informal care allowances. For those elderly living at home,
the government offers different types of assistance in order to encourage
independence and self-sufficiency.

In addition to different types of direct assistance, the government tries

provide access to indirect assistance in the form of renovation grants, which
may be applied to home modifications that are better adapted to accommo-
date physical needs, or informal care support allowances for family mem-

290
bers or others who are assisting in the care of an elderly person living at
home. As of 2007, approximately 3.9% of the population above seventy-five
was receiving informal care support, and this number is currently increas-
ing with a government target of 5-6% by 2012 (Statistical Yearbook).

Institutional Care

In institutional facilities, care and services are part of a total environ-

ment design; A resident will receive the care and services they need, most
of the time on-site. At health centres and specialized facilities that operate
like hospitals, daily medical care structures dominate a resident’s routine,
with less emphasis placed on engaging the social components of an elderly
resident’s life. The services in such facilities are usually determined to first
address direct medical concerns, with softer, social criteria as secondary
concerns. Depression and loss of appetite are the sorts of general health
decline experienced by residents, conditions which may be the result of
general complaints from residents in such facilities. These complaints may
include stifling routines, inconsistent caregivers, and isolation from mean-
ingful social networks.

In a typical nursing home, while residents have individual rooms and

receive individual care, they also spend their time in common spaces, dine
together, cohabiting and sharing services with those of similar functional
capacity. Medical care is integrated into daily routines accordingly: resi-
dents are encouraged to choose and prepare their own meals, determine
their own schedules, and participate in activities as they choose; residents
with dementia often live in more controlled environments with more struc-
tured care.

It is the general philosophy of the more progressive facilities to use care

and service delivery as an opportunity to encourage independence and
self-sufficiency in the residents. At such institutions, nurses are encour-
aged to propose their own small innovations in helping residents improve
their functioning, increase daily enjoyment, and maintain their independ-
ence, daily routines, habits and level of comfort in a manner similar to what
they experienced at home. These procedures are then shared among nurses
for bottom-up development, while simultaneous top-down procedures are
implemented.

In nursing homes, where common spaces are open to residents, a dining

facility might be open to the public, allowing guests and residents to dine
together, and be designed like a restaurant so as to encourage some level of
integration between the institution and the surrounding community. Resi-
dents may also receive taxi subsidies or participate in group activities, such
as shopping or museum visits.

Such principals and practices reflect a general attempt at making the

nursing home experience in Finland as similar to home living and home

291
care as much as possible. It is generally believed that home care is the ideal
solution for an elderly person. Hope of returning home at some point, how-
ever wishful, is one of the driving sentiments in the nursing home environ-
ment.

Hybrid Care

Sheltered housing (both daily and 24-hour) combine the independence

and social network connections supported by home care with the inclusive,
structured environments of nursing homes and other similar institutions.
It provides a suite of inclusive services in an environment that is intended
to be more reminiscent of a resident’s previous house or apartment and feel
less like an institution, and as such is more integrated with the surrounding
built and social environments.

This hybrid condition takes on the form of differentiated groups of

appropriate apartments clustered by care needs and embedded in a flex-
ible service network. Services and experiences are in line with those of
home care, with residents receiving a customized suite of services in an
independent apartment that is both tailored to individual needs and well-
integrated with the surrounding area. This relatively new type of elder care
environment remains somewhat loosely defined, and is still developing as
a service and care archetype.

D2.4 Cities

Combining concerns of housing and services as well as mobility, civic

participation is the question of larger settlement patterns. How gracefully
do our cities age and how easily can they accommodate an ageing popula-
tion? The paired trends of urbanization and societal ageing put increased
pressure on cities as a key site of innovation opportunity. Conceived in
2005, The World Health Organization’s Age Friendly Cities programme
seeks to foster global attention to these issues by providing a set of key indi-
cators ranging from the built environment to political engagement.

D2.5 Developments In Care Systems

In Helsinki, nursing home services and structures are being altered as

medical and social care become more tightly integrated at the administra-
tive levels. As a result, nursing homes are expanding and becoming more
versatile service centres that are more closely integrated with home care
and home service organizations and infrastructures.

One objective is to formalize aspects of the expanding home care net-

work while impart some level of flexibility and customisation to the insti-
tutional care system. In general, the home care system, which includes
services and nursing, is seen as the ideal model, one that more institutional
systems should try to emulate.

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 D2.6 Excessive Institutionalization

The long-term care of patients within health centres and specialized

health facilities has been of particular concern in recent years due to its
perception as an inefficient and source of major financial strain within the
elder care system. In 2007, over 10,000 patients in long-term care in health
centres and specialized health facilities required over 6.5 million care days
during the course of one year (Facts about Social and Health Care).

There is concern that the abundance of available beds in these facili-

ties is actually a negative factor detracting from the level of care an eld-
erly person may expect. An individual entering an institution in need of
only minor care, may rapidly deteriorate and eventually require long-term
institutional care when or if they become isolated and restricted within the
system,.

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D3—Beyond Functional Capacity

Contemporary research suggests that an elderly person’s well-being can

be judged by two major indicators, one related to medical issues and one
to social issues:
1. The condition of their musculoskeletal system.
2. The robustness of their social networks.

Current government policy in Finland echoes these assumptions: the

primary objectives of the government in providing care for the elderly are
to increase the functional capacity of the elderly, maintain their independ-
ence, and promote their involvement in society. (National Framework for
High-Quality Services for Older People)

In order to maintain functional capacity, independence, and involve-

ment, care must address both medical and social issues. Care for the elderly
therefore straddles the line between two traditionally distinct disciplines.
Health and social services are often separated in Finland, in terms of philo-
sophical underpinnings, to training regimes, to the service structures of
administrative policies.

The difficulty of the situation is generally recognized at most levels

of the welfare service structure. For example, Helsinki is currently in the
process of trying to combine their Health and Social Services departments
into one coherent unit. Yet, if Finland is to achieve its goals with regard to
elder care, it will have to do more than simply close this divide. The states
will have to provide more sophisticated services without further isolating
the elderly within an institutionalized regime, and do so under a tighter
budget.

Finland’s current strategy has been to promote extended home care as

the major mode of caring for the elderly. From the ministries to local health
centres, there is an increasing acceptance of home care as a panacea that
can potentially integrate medical and social care, decrease isolation and
promote independence, and still remain the more cost-effective alternative
to other forms of care:

“…support for independent living in the community is supposed to be

the cornerstone of future old age policy…outpatient and housing services
must be developed in such a way that older people can continue to live
independently in their own homes as long as possible…effective hous-
ing and planning policy can help to reduce the need for services…it is
imperative to have better coordination and integration of social welfare
and healthcare services. Private services are needed alongside the exist-
ing range of public services, and better coordination is needed between
service providers.” (Health in Finland 145)

294
 But while home care has been generally accepted as the solution to
the elder care problem, there remains an absence of adequate frameworks
and measures with which to design, analyse, and evaluate a meaningful
home care structure. As a measure, functional capacity does not adequately
address the needs of those individuals it hopes to describe, especially when
those individuals are well-integrated into society.

How useful is it to know whether a person can shop for themselves

(a primary measure of capacity) if a family member accompanies them?
There is consensus that educating families is essential to the home care
process, but how is this process best handled? There are attempts being
made at expanding home care services from the institutional side, but if
society is not expanding its attitudes and habits to meet these services, can
home care really represent a shift of responsibility from institutions into
new territory?

“More research is needed into the implications of population ageing to

(sic) different institutions in society and to the operation of society as a
whole. More knowledge is needed about how service needs can be pre-
vented by supporting old people’s functional capacity. Improved service
impact also calls for research into outcomes and effectiveness.” (Health
in Finland 145)

Perhaps it is time to move beyond the acceptance of home care as the

quick solution to the elder care problem and instead, start to outline com-
prehensive strategies that ensure well-being without increasing institu-
tional demands. Criteria such as “functional capacity” must be revised or
replaced in light of a new care regime. Clearer definitions of independence
and societal involvement must be articulated if they are to become the tan-
gible objectives of a concrete system. Social and medical care cannot simply
be combined or hybridized, but must be completely rethought to encom-
pass agents and processes that are beyond their current scope.

Two anecdotes seem to illustrate the need to move beyond the rhetoric
of home care advocacy in order to begin the design of a non-institutional
elder care system:

In an interview, a head physician of Helsinki’s Social services depart-

ment was asked to explain the major problems facing an elderly person.
The answer was both physical (movement) and social (loneliness) in nature.
As an example, malnutrition was a particular case that encompassed both
problems. If someone is alone, they will not eat; If someone does not eat,
they become weak; If someone becomes weak, they cannot be with other
people comfortably. And, a viscous cycle begins. When I inquired about
a proposed solution, I was told that involving family members was the
answer. I was eloquently told that, “If every elderly person would receive a
protein drink instead of a bouquet of flowers from their family, many prob-
lems would be solved.” I followed by asking how families could be informed

295
and educated, and attain the tools and the incentives to be involved more
adequately. Essentially, could the way to prepare society to better integrate
the elderly. There was no good answer…

In interviews with nurses at an elderly home near Helsinki, we dis-

cussed the essentials of caring for the elderly. Everyone shared the belief
that fighting loneliness and increasing independence were the key elements
to elderly care. Family involvement and integration into society were also
critical. When I asked about the home care system, as an alternative to
the institutionalized nursing home system, I was initially told that integra-
tion was occurring between the two and that everything would be fine.
But when asked which was better, I received mixed answers. One nurse
defined independence (as a general goal) as being able to accomplish tasks
independently or with the assistance of a care professional, and by another
as the feeling of self-motivation, which might be easier at home, alone.
While fighting loneliness with integration was key, one nurse felt that the
elderly were less lonely and better integrated when with their families,
while another suggested that the elderly would prefer the company of their
peers in a nursing home environment. While common goals were shared,
the means and criteria for achieving those goals were discordant.

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D4—Structure and Organization of the Welfare System

All Finnish citizens are entitled to equal access to the social welfare
system. Adequate social and healthcare, along with income security, are
a basic right of each Finnish citizen. The robust social welfare system that
provides for these entitlements is complex by nature, spanning every scale
of government, using significant finances and other resources, and interfac-
ing with many actors throughout the social fabric. Any attempt to reform
such a complex system must first consider its existing form and modes of
operation.

D4.1 Welfare And Income Security

The Finnish welfare system is composed to two main components: wel-

fare services and income security. The welfare services division is generally
divided between health and social welfare services that are differentiated
throughout the system and over time. The income security division man-
ages both the pension system and the insurance system.

D4.2 The Ministry Level

Operation of the Finnish social welfare system is divided between two

tiers: the administering ‘Ministry’ level and the secondary ‘Municipality’
level.

The administering tier, which is composed of The Ministry of Social

Affairs and Health and attendant Agencies such as STAKES and KTL, acts
with parliament to define the overall political agenda concerning social
welfare, which the agencies subsequently presents to the lower tier as social
welfare provision principals and guidelines. This tier is also tasked with
outlining the agenda as social and healthcare policy, preparing the legisla-
tion and reforms required to implement the policy, guiding and monitoring
certain aspects of the development, funding, implementation, and coordi-
nation activities conducted by the lower tier.

The Ministry is responsible for drafting statutory rules for each munic-
ipal agency; these guidelines have been “equalized” for each individual
municipality by way of the Basic Services Budget System.

D4.3 The Municipal Level

As of 2009, the welfare system consisted of approximately 348 munici-

palities in various structural agreements and arrangements with each
other. The municipal tier is responsible for the actual delivery of social wel-
fare services. It is at this level that the recipients of social welfare directly
engage with the welfare system.

297
 The municipalities must abide to the statutory requirements passed
down from the Ministry level, but have broad discretion in determining
the precise type and scope of services they provide; they are free to design,
implement, and operate the various welfare delivery systems as they see fit.

Municipalities may deliver welfare services independently or in con-

junction with other municipalities. Additional procurements may be
attained from other municipalities or public and private service providers.
Some municipalities may opt to privatize their own operations through the
establishment of a limited-liability company.

D4.4 Issues Of Scale And Structure

The complex municipal system in Finland is a product of the powerful

cultural impulse toward local self-governance. However, the scale of local
governance is not always conducive to the effective management of broader
issues such as social welfare, which often rely on economies of scale to func-
tion fluidly. As a result, many municipalities chose to collaborate in order to
more effectively provide or procure welfare services.

The current arrangement of ministries at the national level is locked

into the so-called "silo" mode of operation. Policies are created within
single ministries and steered vertically by them. As a result, there is little
meaningful lateral interaction between ministries, a organisational struc-
ture that increases the complexity of large programmes like social welfare,
which—by definition—span multiple silos.

D4.5 Service Delivery System

For the provision of health and social services, Finland is broken down
into twenty-one hospital districts. Every municipality is a member of one
of these districts. District health centres and hospitals are the primary sites
for citizens to receive health and social services, primarily in the form of
outpatient (health centres) and specialty services (hospitals). Private care
facilities (especially for specialized care), as well as secular and religious
associations and volunteer groups may provide supplementary services.

For the elderly, municipalities manage nursing homes, sheltered hous-

ing, and sophisticated networks of home care services. They also provide
the funding for informal care outside of the institutional system. The eld-
erly are entitled to comprehensive care, which encompasses preventive
home visits, coordinated social activities, sophisticated institutional medi-
cal care, and monthly income grants.

The pension delivery system, which is organized according to its own

districts, offices, and service centres, is superimposed over the welfare serv-
ices system.

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 D4.6 Paying For Welfare

Funding of the social welfare delivery system is divided between its

two tiers and the recipients themselves. As of 2005, the municipalities were
responsible for approximately 65% of the cost, with the central government
funding approximately 25%, and client fees covering the remaining 10%.

In total, Finland spends approximately €43.4 billion, about 25% of

GDP, on social welfare. (Facts about Social Welfare and Health Care in
Finland 2007) Approximately 30% of total social expenditure goes directly
into municipal social and healthcare services. The bulk (about 60%) of total
social expenditures is used to finance Finland’s comprehensive pension and
insurance schemes.
Social Expenditure Distribution
Source: "Characteristics of the Social Security System in Finland"

D4.7 The Cost Of “Old Age”

“Old Age” currently accounts for approximately 30% of total social wel-
fare expenditure (Facts about Social Welfare and Health Care in Finland
2007). “Old age pensioners” currently number close to one million, a figure
predicted to double by 2060. (Statistics Finland Population Project 2009-
2060) Elderly care comprises one of the most complex, costly, and critical
facets of the social welfare system in Finland.

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 D5—Government Initiatives and Reforms

Currently, there is considerable desire for reform at all levels of the wel-
fare system, from the highest levels of government to the most local corners
of the care network. There are many systemic changes now in various stages
of design and implementation, from legislative actions to municipal pilot
programmes to local initiatives.

Such reforms are relevant to this studio because they represent the
most meaningful attempts at producing the kind of results necessary for
the improved welfare of the elderly population in Finland.

The nature of these reforms differ depending on which part of the wel-
fare system they are targeting. They include “bottom-up” reforms aimed
at improving the horizontal functioning of the municipal system, “top-
down” reforms focused on vertical structures of the national government,
and “local” reforms that target particular structures within the finer grain
of the welfare system.

D5.1 Bottom-Up Reform: Municipal Mergers

At the municipal level, regional oversight mergers and innovative care

cooperatives are attempting to bridge perceived gaps in horizontal com-
munications and inefficiencies in delivery networks. Such mergers are an
attempt to counteract the fragmentation that occurs at the finer scale of
municipal agencies, as compared to the necessarily large scale of social and
medical care delivery.

The Kainuu regional governance experiment is one of a number of such

experiments in improving organization, structure, and communication at
the municipal level of the welfare system. Others examples include the cur-
rent integration of Health and Social Services in Helsinki and Sitra’s ongo-
ing Municipal Programme.

D5.2 Top-Down Reform: Fighting ‘Siloing’ In The

Ministries

At the ministry level, government reforms driven by

“performance management” and “information steering” are
attempting to overhaul the operation of the upper tiers of
the welfare system. Such ministerial reforms are tasked with
breaking down communication barriers that hamper effective-
ness.

In an attempt to combat the ineffective “siloing” of pro-

grammes that results from intensive vertical control within
The Kainuu Region ministries, these reforms embrace value- and result-based
approaches, rather than procedural and hierarchal ones. For

300
example, under the Performance Management System, programmes are
developed by policy area, across different ministries rather than by one
particular ministry. Under the OECD Public Management Review, minis-
tries are required to develop strategies for increasing lateral interaction and
networking with other parts of the government.

D5.3 Local Reform: Supporting Small-Scale Innovation

At the smallest scale of local service provisions, pilot programmes,

which include hospital redesign, administrative restructuring, and family
education, seek to improve the citizen’s experience of the welfare state. Such
programmes support innovative approaches to welfare service delivery by
sponsoring small-scale, prototypical solutions intended to address larger
systemic problems.

The Pareto programme at the Aalto University School of Science and

Technology is one example of how architectural and urban design think-
ing may be applied to address the question of elder care facilities. The pro-
gramme is developing prototypical solutions for problems in the built envi-
ronment of the welfare system. Some solutions include the development of
mobile technologies for home care, the conversion of a standard hospital
into a more holistic wellness centre, and the unification of different care
facilities into a single health campus.

The Finnish Well-being Centre develops and promotes a system for

elder care that incorporates services, knowledge, and architecture into a
comprehensive design package. In Finland, these prototype systems are
currently in use; Japan, which faces the second most rapidly ageing popula-
tion in the world, is also developing similar systems.

D5.4 The Kainuu Regional Experiment

Municipalities are the main organisational node for the provision

of welfare services in Finland. The municipalities are responsible for the
design, provision, and oversight of all aspects of health and social care serv-
ices.

Out of Finland’s 348 municipalities, 248 had populations of less than

10,000 in 2008 (StatsFi). In order to counter the problems of scale inherent
in providing complex welfare services to such small, decentralized popula-
tions, many municipalities may work in collaboration with other munici-
palities for the deliver of services, while others purchase necessary services
directly from another municipality, private provider, or public organiza-
tion.

“There is a wide variety of cooperation between municipalities in both

the provision of basic services and regional development. Inter-munic-
ipal cooperation is often the most appropriate and economically sound

301
 approach for carrying out municipal tasks. The aim is to achieve eco-
nomic and above all functional benefits so that universal access to high-
quality services can be secured. At the moment, there are 228 regional
joint municipal authorities producing services for more than one munic-
ipality. Health care and education are by far the most common basic
services provided by these organs, even though there is also regional coop-
eration between municipalities in other basic services.” (OECD PUBLIC
MANAGEMENT REVIEW, FINLAND—64)

The demand for municipalities to find joint solutions to welfare serv-

ice provision problems will increase dramatically in the coming years. The
shift in Finland’s dependency ratio, in conjunction with internal migration
drains from certain areas of the country, will leave some municipalities
insufficiently prepared to provide adequate welfare services.

The region of Kainuu faces a particularly rapid ageing of its population,

reporting a projected 6% population decrease by 2030 (Statistics Finland
Population Project 2009-2060). As a result, the employment outlook in Kai-
nuu is dismal, and core public services are under threat.

Because it falls within the 20,000 population figure, which the govern-
ment considers ideal for effective welfare service delivery, Kainuu is cur-
rently acting as a bellwether for the other municipalities with regard to the
coming service delivery problems. In response to this critical situation, the
region of Kainuu, with the aid of the national government, has opted to try
a new centralized regional government and service structure for two terms.

“The experiment increases regional authority and cooperation between

municipalities and other actors…The highest decision-making of the
region has been centralized into one organ, the Joint Authority of the
Kainuu Region, consisting of fifty-nine members. It was elected through
a direct public election process. A centralized arrangement of basic public
services enables securing the service quality, availability and economy in
Kainuu in the long term, despite the threatening population forecasts. At
the same time, the citizens living in the eight Kainuu municipalities will
have equal opportunity to receive basic public services.” (Kainuu Region
Driving Development)

Welfare services and funding are arranged at the regional level in an

attempt to improve quality, availability, and cost-effectiveness. This restruc-
turing of government at the regional level will have significant effects on
the way welfare services are delivered:

“The social and healthcare services have been divided into three lev-
els based on the customer’s service needs: services which the residents
of Kainuu need almost daily are offered as local services; these include
home care services…Services that are needed less often are provided on
a regional scale…Services requiring special expertise that are needed

302
 rarely are offered as centralized regional services. The customers can
freely, regardless of their home town, select any treatment point.” (Kai-
nuu Region Driving Development)

Although the final evaluations of the experiment will not be available

until after its conclusion, initial results suggest that the necessary struc-
tures are in place and operating. The initial restructuring has yielded
meaningful changes to the service system in the form of cost savings and
expenditure cuts. Understandings have been forged between different
municipalities. Still, these changes have been met with resistance by some
actors entrenched within the current hierarchical system. Complete evalu-
ations will be closely watched as the Kainuu experiment draws to a close.
(OECD PUBLIC MANAGEMENT REVIEW, FINLAND 55-56)

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 D6 - Evolution of the Welfare System

Happening in Finland Happening in Scandanavia

1937 National Pension Act

In the 1940’s the notion of 1943 New health legislation mandates

public welfare, and with it municipal and provincial health
public health, emerges. officers

1943 General Hospitals Act

1944 A law is passed mandating that

each municipality have a free
maternity and child health clinic,
a major development

1945 Only 4.1 doctors per 10,000

people

1956 By now, there are 1,500

maternity/child health clinics in
Finland

1948 Tuberculosis Act passed - with Sweden reforms national

earlier vaccination programmes pension system
and improved living conditions,
curbs the epidemic

1948 Reform of the National Pension

Act

1948 Introduction of family allowance

1949 Introduction of maternity grants

Hospital development begins 1950 General Hospital Construction 1950’s: Sweden introduces
in the 1950's. It will occupy Act concepts of Income Security,
the bulk of healthcare balancing gender roles
spending through the 1960's.
From 1950-69, the number of 1956 National pension reformed to be 1956: Danish government
hospitals triples. means-tested and flat-rate, pay- reforms take a big first step
as-you-go is introduced towards ‘full old-age pension’
An imbalance between
1956 Social Assistance Act
hospital care and outpatient
care emerges because of this
spending priority, as well as 1956 Hospitals Act
cost allocation and a short-
age of doctors. 1956- Pension expenditure increases
1957 2.5x
Control of hospitals is
transferred from the state to
municipalities.

The primary concern of the 1960 Three new medical faculties are Denmark introduces full uni-
1960’s was the development established (initiated in 1960, versal protection under the
of extensive healthcare completed in 1972) national sickness insurance
services. scheme

Towards the end of the 60’s, 1961 Earnings-related Pension Acts

even with the development
of hospitals, there was 1961 Finland joins EFTA
little improvement in public
health beyond dealing with 1963 Sickness Insurance Act creates
tuberculosis and infant a national sickness insurance
mortality. system specifically to address
outpatient care
By the end of the 60’s,
1969 Finland joins OECD
Finland still had the third
lowest density of medical
doctors in Europe (after
Turkey and Albania), and the
life expectancy of the Finnish
male is the lowest in Europe.

304
The Primary Healthcare act 1971 Labour market organizations
of the 1970’s is a significant sign an agreement on workplace
attempt at shifting attention healthcare services
to preventive and outpatient
care. 1972 Primary Healthcare Act passed,
it becomes a significant attempt
at shifting attention to preven-
Municipalities (or groups
tive and outpatient care
of) are required to establish
health centres
1973 Children’s Day-Care Act
Municipal care is centralized
1974 Free-trade agreement with the
Costs are shared between EEC
central and local govern-
ments 1975 Bed spaces are transferred from
mental hospitals to mental
Central and local groups health clinics, which increase
must submit annual 5-year their capacity by 89% (initiated
action plans in 1975, completed in 1987)

The number of doctors work- 1978 Occupational Health Care Act

ing in primary health triples passed
in a few years

1984 reforms of the Social 1980-85 National pension reform

Welfare Act, together with
the earlier Primary Health- 1984 Reform of Social Welfare Act-
care and Children’s Day-Care Increased cooperation between
Acts, were the foundations public health and social welfare
for the growing Finnish # Creation of informal care allow-
welfare state. ance system for elderly care #
Social assistance is replaced
Elder care is particularly by income support # New state
effected by the creation of subsidy system
informal care allowances
and the strengthening of 1985 Child Home Care Allowance Act
outpatient services for the
elderly. 1986 Health for All by 2000
Programme#Develop primary
healthcare # Expand den-
tal services#strengthen
outpatient services for the
elderly#modernize psychiatric
healthcare#intensify rehabilita-
tion

In 1993, the recession hit 1990 Survivor’s pension reformed to

Finland at the same time as include widowers
the government launched
a major effort to decentral- 1991 Major reorganization into
ize the health and social 21 hospital districts with
services systems. compulsory membership for all
municipalities
Though there were cuts in
expenditures in some health 1991 Reform of rehabilitation legisla-
and social services areas tion
- notably for the elderly,
disabled, and families with 1993 Decentralizing reform of the
children - as a result of the state subsidy system#State
recession, by the end of distributes funds through a
the decade numbers had needs-based estimating formula
returned. rather than expenditures#Central
health administration is
To deal with the recession, restructured#Move from statu-
geriatric care is transitioned tory guidance to information
from a health issue to a guidance#STAKES is formed
primarily social one, and is
1995 State and local government
reduced in both scope and
retirement ages raised from 63
content.
to 65

The decentralization effort is 1999 Finland joins the EU

not hindered dramatically by
the recession, and goes on 1999 Finland joins the EMU Sweden introduces a new
to define the contemporary pension system to replace
state of the Finnish welfare the old, which was experienc-
system. ing rising costs in the face of
an ageing population

2000 Basic social rights are written

into the new Finnish constitu-
tion

305
futures of finland

There's no way to predict the future, but by using scenarios we can make an
educated guess. In the following pages is a brief glimpse of what Finland may
look like in 2020 and 2050. As a projection, this is meant to act as a rough
guide for what we may reasonably expect.

Finland 2020 – At a Glance

Population1

➢ 5.6 million, evenly distributed between women and men

➢ Age distribution (in years)
0-14: 17%
15-64: 60%
65 +: 23%
➢ Population by age and gender 2020, projection 2009 2

➢ Natural population growth: 9,900.

➢ Net immigration: 20,000 (immigration: 36,000 persons, emigration:
16,000 persons).
➢ E migration mainly to EU and other European countries, North
America and Asia.
➢ O ver one million Finns live or have settled abroad.
➢ Some 1.1 million live in the Helsinki area, which includes Espoo and
Vantaa.
➢ City populations:
Helsinki 620,000
Espoo 280,000
Tampere 230,000
Vantaa 220,000
Turku 180,000
Oulu 150,000
Jyväskylä 140,000
➢ Some 80% of the population live in cities
➢ Commuting times and distance have continued to rise and the coun-
try’s average is now approximately 18 kilometres. Due to the dis-
tances, the majority of commuters use private cars.
➢ Life expectancy: men 79 years, women 84 years.
➢ Employment rate: 72%; unemployment rate: 6%.
➢ Foreigners 4%, most from Russia, Estonia, Sweden and Somalia; 25%
of Helsinki region dwellers have an immigrant background.
➢ Religion: Lutheran 75%; Orthodox 1%; Other 2%; some 22% do not
belong to a religious group.
➢ Languages: Finnish speaking 89%; Swedish speakers 5%; foreign lan-
guage speakers 6%.
➢ Major health challenges: alcohol abuse, obesity and memory-related
illnesses.

306
 ➢ E ducation: 29% of young Finns have a university of other tertiary
qualification; the share of women with a university degree or equiva-
lent is much higher than men.

Economy

➢ Finland is highly integrated in the global economy; international

trade is a third of GDP.
➢ Finns take approximately 6.8 million trips abroad, of which business
trips account for some 20%.
➢ Economic structure (employed persons by industry):
35% public and other services
18% trade, hotels and restaurants
18% financial and business services
12% manufacturing
7% transport and communications
7% construction
3% agriculture and forestry

1. Most of these figures are based on the estimations of Statistics Finland

2. Statistics Finland

307
Finland 2020 – Slow recovery from 2010

The traditional investment-intensive industry has slowly diminished in

Finland. Instead of electronics, machinery, and pulp and paper, the main
exports are products from knowledge and innovation-intensive businesses,
like biosciences, design, textiles, IT and education. Many companies are
geographically scattered around the world according to the availability of
skilled labour. Although Finland has succeeded quite well in transforming
its economic production after the 2010 recession, the national economy is
now only slowly recovering its balance and annual GDP growth is 1-2%. In
cities, there are large empty business properties awaiting alternative uses.

The service sector is still the major employer. Municipal services have
been further privatised and the demand for services has grown. The ageing
population needs more health services and to accommodate the need for
nurses, educated nurses from Asia are brought to Finland. Finnish nursing
schools offer programmes for nursing students from outside the EU that
qualify for jobs in EU member countries. Since depleting natural resources
have raised the prices of consumption goods, demand for other kinds of
commodities has increased: IT, cultural services, maintenance, tailoring
and dressmaking, especially from recycled materials, and design.

Politically, social democratic values are back after all the free market
and liberalism ‘hype’ around the change of the millennium, especially
equality. Although the economic situation has been tough, keeping up the
welfare system has been the priority of most political parties. The social
security system has been transformed, and instead of a complicated sys-
tem of various social benefits all citizens receive basic income. Since basic
income does not depend on other income, there is less of a poverty trap
there used to be, and self-employment becomes more attractive and com-
mon. This has led to a significant attitude change and empowerment of the
unemployed; there is a notable increase in small-scale businesses, handi-
crafts shops and community arts projects. The Internet and social media
have the main role in channelling the activities of civil society.

The continuous economic insecurity has increased the role of traditions

and conservative values of the citizens. Most Finns are still members of
the evangelical Lutheran church, although participation in weekly serv-
ices continues to decrease. New types of religious activity are on the rise,
e.g. Volunteering in church charities and awareness-raising campaigns on
Christian values, e.g. ‘no to abortion’. This has also influenced the political
spectrum; the Christian Democratic Party, which used to be quite small
in 2010, has gained more seats in parliament, and the centre-right wing
parties have turned more to the right. Similarly Muslim communities have
grown culturally and politically louder, and now there are more conflicts
between religious and ethnical groups than there have been for decades.
However, conservative, fundamental religious and racist views have stayed
in the minority compared to the liberal majority.

308
 Immigration, both legal and illegal, has increased. The foreign work-
force is more in demand: low-income blue-collar jobs are populated by
foreign workers from Africa and Asia, whereas highly-educated special-
ists are employed from all over the world—although most still come from
neighbouring countries. Illegal immigrants arrive especially from central
and southern Asia, due to the increased political instability in the regions.
Russian is the most commonly spoken foreign language in the Helsinki
region and there have been discussions about abolishing the status of Swed-
ish as the second official language. One or two new orthodox churches and
mosques have been built in the metropolitan area.

The average level of income has decreased in Finland due to several

years of economic stagnation and slow growth; further, differences in
income distribution have decreased slightly compared to 2010. The higher
middle class has somewhat decreased in numbers and changes in taxation
have favoured citizens with low income.

309
Finland 2050 – At a glance

Population

➢ 6.1 million, evenly distributed between women and men

➢ Age distribution (in years)
0-14: 16%
15-64: 57%
65 +: 28%
➢ Natural population growth: -4.000 persons
Immigration: 28.000 persons
Emigration: 13.000 persons
Net immigration: 15.000 persons
➢ Some 1.3 million live in the Helsinki area, which includes Espoo and
Vantaa. Other major cities: Tampere, Turku & Oulu.
➢ Population in major cities (Helsinki area, Tampere, Turku &
Jyväskylä): 35%.
➢ Working population decreasing; number of retired persons remains
constant; employment rate: 75%; unemployment rate: 6%.
➢ Population by age and gender 2050, projection 2009.
➢ 85% of the population live in cities.
➢ Life expectancy: men 83 years, women 87 years.
➢ Foreigners 10%, most from Russia, Estonia, Sweden and Somalia; 30%
of Helsinki region dwellers have an immigrant background.
➢ Religion: Lutheran 65%; Orthodox 3%; other 4%; some 28% do not
belong to a religious group.
➢ Languages: Finnish speaking 85%; Swedish speakers 4%; foreign lan-
guage speakers 11%.

Economy

➢ Economic structure (employed persons by industry):

30% Public and other services
12% Trade, hotels and restaurants
18% Financial and business services
17% Manufacturing
8% Transport and communications
8% Construction
7% Agriculture and forestry

310
Finland 2050 – Immaterial individualism

Globalization has taken new forms compared to 2010, since the costs of
travel and transportation have been raised to compensate for the environ-
mental impacts. Global trade in goods has diminished but global exchange
continues strongly via highly developed virtual channels. Many products
have become immaterial: newspapers, books, music and games, for exam-
ple, are sold only via the Internet in electronic format.

The world economy has managed to accommodate the economic set-

backs caused by the impacts of climate change and most EU countries have
positive GDP growth. China has taken the lead in the world market, and
the economic centre of the world has moved to Asia. Finland has succeeded
to have 3-6% GDP growth for the last decade. The main exports are biomed-
icines and intelligent textiles; both successes rely on the intelligent use of
wood fibres and cellulose, resources that Finnish forests produce plenty of.

Finland gains advantage within the EU from its close location to Russia.
Contacts and exchange with Russia have increased significantly compared
to the beginning of the century. Most Finnish exports are sold to Russia.
Many Finns work in Russian companies and commute daily from Helsinki
to St. Petersburg with fast, environmentally friendly trains that cover the
distance in ninety minutes —a journey that took over three hours with the
new fast train connection opened in 2010.

The service sector continues to be the main employer, although the

public sector has diminished. Some of the universality principles of a wel-
fare state have been altered; for example, citizens are now encouraged to
take better care of their health and well-being by providing better pen-
sions and social benefits to those who commit themselves to certain health
programmes related to obesity, coronary diseases, alcohol overuse, etc.
Services and medical innovations related to keeping people healthy form a
notable part of business sector.

There have been radical changes in production and consumption pat-

terns globally, due to environmental concerns. All citizens now have a
natural resource consumption quota, which limits the amount of natural
resources they can consume per year. Excess quotas can be sold, and the
trade in quotas is managed by the Stock Exchange. The introduction of a
personal quota system has caused a redistribution of income: less wealthy
people who have consumed fewer natural resources are in a position to sell
part of their quotas and increase their consumption, whereas wealthy peo-
ple who want to maintain at least part of their previous lifestyle have been
forced to buy quotas. Personal mitigation strategies have reflected the val-
ues of individuals—the diversification of lifestyles has decreased in mate-
rial respects but increased in immaterial ones.

311
 Environmental taxes and personal quota systems have significantly
reduced both business and personal travelling compared to 2010. The
attractiveness of travelling has, however, not disappeared and thus there
are new ways to travel and experience other cultures. Trips, once made, are
longer in time and concentrate in one place. Advanced virtual technolo-
gies allow people to travel for several months and continue working from
abroad. New exchange programmes for manual and service sector workers
have been created: A group of Finnish teachers, for example, may exchange
jobs with their Irish colleagues for months or even years.

Local consumption and production has increased, and the farming and
forestry sectors have grown in importance. There are groups of people, liv-
ing on basic income, who have moved back to the countryside to live in self-
sufficient communities. These communities who have embraced "poverty
as a lifestyle," use local trading and exchange systems in addition to the
regular currency.

Economic diversification has increased compared to 2010. The lower

middle classes are mainly educated but have low incomes and form the
largest group of citizens. The highest income group has also increased in
number, since the salaries for the most skilled specialists have grown and
are now competitive with the rest of the world.

The Asian influence is also seen in religious life as well as in econom-

ics; many who were previously Lutherans have converted to Buddhism and
Taoism. The share of Lutherans has also decreased due to the Muslim and
Orthodox immigrants.

312
Alternative trends: What else could happen by 2050?

Mass Immigration

In 2050 the world is suffering from the consequences of climate change.

Draughts and extreme weather conditions have caused famine and loss of
human life in many poor regions. Immigration has increased within the
EU from southern Europe, which suffers from draught and a lack of drink-
ing water, to northern Europe. Also, immigration from Africa to Europe
has intensified. Finland has received two waves of immigrants, first from
northern Africa in the 2030's and recently in the 2040's from southern
Europe. Some 20% of the population of Finland are now foreigners. English
has become the second official language in the EU and it is commonly spo-
ken in most workplaces in Finland. Most immigrants, therefore, manage
to find their place in job market. Catholic and Muslim influences on the
Finnish culture increase.

Food Scarcity

Megatrends such as climate change, biodiversity, environmental deg-

radation and population growth compile a situation where food security
becomes an even more critical issue over the developing world. Bioenergy
production, especially in the western world, adds to the problem by over-
taking a share of the fields used for food production. By 2020, surplus food
production in industrialised countries has diminished to close to zero.
Between the 2020's and 2050's, severe droughts, floods and storms attribut-
able to climate change also cause disruptions to the food security of citi-
zens in the western world. Finland struggles with the same problem but has
an advantage of relatively rich water resources for irrigation (if needed)
and space for farming expansions. Nevertheless, food security is a serious
issue and the share of food expenses rises notably in private households.
Professional farming becomes an attractive profession. Also, small scale
supplementary farming gains popularity among lot owners. Respect for
close-to-nature professions and know-how such as farming, fishing and
hunting rises.

Extreme Privatisation

There is severe economic hardship in funding state and municipal

operations. The Finnish welfare state model demonstrating strong and
high-quality public services leading to equal opportunities in education,
healthcare and social structures continues to deteriorate. To a certain extent,
more efficient processes are able to maintain the service level; gradually,
however, private options in healthcare and education, for example, attract
families that are better-off. Public authorities are not able to ensure the qual-
ity of public services due to budget limitations resulting from a political
unwillingness to raise taxes. By 2050, there are more or less separate private
and public lines of public services such as education and healthcare. This

313
slowly leads to the practice whereby social and professional opportunities
are inherited from the parents for the largest part of the population. Shifting
between the classes is only possible for the most talented individuals.

Brain Sweatshop

Recovery measures for the 2010 economic depression fail and the west-
ern economies prove to be unsustainable. A prolonged slowdown of the
global economy leads to the domino effect of collapsing western economies,
which kills western capitalism. Chinese capitalism is the new form of inter-
national trade and business. Western countries try to keep the research
and educational level high to compete with the Chinese but it is not quite
successful. Finland, as well as other European countries, become a cheap
‘brain sweatshop’ for Asian investors and leaders. The educated Finnish
working force mainly produces semi-demanding design and engineering
solutions and services that can be easily electronically transferred form
one place to another. The most talented individuals move to Asia for better
career opportunities. Western Europe becomes something like India was
for Westerners at the beginning of the millennium. Less educated young
Finns find it difficult to accommodate themselves to working life. There is
a very high level of youth unemployment, which becomes very expensive
for the government at the time. Also, a critical mass of frustrated youths
becomes violent, paralysing many societal traditions and structures.

Generation Change

By the end of the 2040's, most of the baby boomer’s generation have
passed away. Along with them disappears the hegemony of a generation
who has had a notable impact in society, and who have held widely accepted
common values and beliefs. The relatively homogenous Finnish identity
deteriorates and is replaced by subcultures and "value shopping." People
identify themselves more and more through subcultures and peer groups,
such as music style fan groups and other entertainment fan groups (e.g.
manga); professional groups; hobby groups; life-situations (e.g. Young fam-
ilies); or political passions. People tend to switch these ‘reference groups’
very fast. International companies and brands can establish a central posi-
tion as the symbol of certain groups. There is no uniform value basis or
leading institutions in society, but rather a puzzle of multiple pieces that
interact. The life circles of different groups become more isolated and a
nationwide common experience of ’being Finnish’ does not exist – it is not
even yearned for except in marginal groups.

End Of Party Politics

The turn-out of voters in elections continues to decrease, as well as the

membership of political parties. Traditional parties lose their legitimacy
and single-issue movements become more active players in political deci-
sion making. There are a variety of issues attracting a critical mass to estab-

314
lish a movement, such as "no to abortion," "more nurses for the elderly," "no
to nuclear power," etc. Political structures are reorganised and new ways
for direct democracy, like interactive planning procedures, are introduced.
For example, "open source wiki-applications" are used in city and budget
planning.

Church In Crisis

The Lutheran Church enters into a legitimacy crisis, since it does not
manage to follow the liberal public opinion regarding, gay marriages or
women priests, for example. Roughly half of the population are still mem-
bers of the church, but the trend is declining. Even fewer people practice
the religion. The Lutheran state-church system is abolished. In schools,
religious education is replaced by ethics and philosophy. Other forms of
Christian churches as well as other religious groups (including traditional
animistic religions) gain moderate popularity, but the major winners are
atheistic trends. In general, religion is becoming less and less significant
in society.

Climate Conflicts

Climate change reinforces existing drivers of conflict and therefore

threatens achieved development across many countries. Geopolitical ten-
sion also increases due to the diminishing availability of natural resources.
International cooperation drifts in a lock-up situation and nations turn
inwards. Finland finds itself in a situation resembling the situation in the
1960's, 1970's and early 1980's when geopolitical tensions were higher and
when economic activities were heavily regulated and guided by the govern-
ment. Industrial production relies on domestic raw materials. Competition
between countries is fierce and various protectionist measures such as high
tolls on imports are introduced. The highest earning people suffer a notable
drop in their incomes and the overall income level declines. The level of
income distribution decreases, since government interventions secure jobs
and income for most citizens. The majority of people turn to traditional
values of ’home, church and the fatherland’.

315
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Interview. 18 Nov. 2009.

Tulenheimo, Martti. Personal Interview. 19 Nov. 2009.

Holkeri, Katu. Ministry of Finance. Personal Interview. 20 Nov. 2009.

Pollock, Eric. Personal Interview. 20 Nov. 2009.

Old Age Home Interviews

Lindblom, Minna. Nursing Home. Personal Interview. 19 Nov. 2009.

Included interviews with: Jaanna, another nurse, two other administrators,
3 clients, and others…

Translator: Tuija Kokko

321
 End notes

Prepared by Adriel Mesznik

With Bryan Boyer, Justin W. Cook, & Marco Steinberg of Sitra

The Futures of Finland was prepared by Gaia Consulting Group of Fin-

land and Switzerland.

Thanks to everyone interviewed for being so helpful and forthcom-

ing. In particular: Juha Teperi, Kim Aarva, Pekka Yla-Antilla, and Katu
Holkeri.

This challenge briefing has been prepared in advance of the Helsinki

Design Lab Studio on Ageing held on June 7th through the 11th in Helsinki,
Finland.

Sitra, the Finnish Innovation Fund, is responsible for organizing the

Helsinki Design Lab in cooperation with other key partners. Sitra is an
independent, publicly funded body which, under the supervision of the
Finnish Parliament, promotes the welfare of Finnish society. Since its estab-
lishment, Sitra’s duty has been to promote stable and balanced develop-
ment in Finland, the qualitative and quantitative growth of its economy,
and its international competitiveness and co-operation. Our activities are
governed by a vision of a successful and skilled Finland. We have always
operated with a strong belief in the future and in the ability of innovation
to benefit society.

HDL is a continuation of Sitra’s long-term activities in making design a

key driver in building the Finnish society and the innovation system. Sitra's
first design-related event was held in 1968, when it sponsored the Industrial,
Environment and Product Design Seminar (HDL1968).

Sitra will sponsor three studios during the summer of 2010 which each
bring a group of six to eight top international designers and key experts to
spend an intensive week in Finland "charretting" on a given studio topic.
With access to key decision makers relevant to their area of inquiry, these
teams will be charged with developing a strategic road map and a top ten
list of possible action items.

322
323
324
Appendix 325
326

Look Again Unpack Issues Examine Boundary Conditions Find the Right Simplifiers
We are bound by our own Putting everything on the The complex challenges that a By their nature, complex
experiences and patterns of table is one way of opening Studio confronts are in some challenges cannot be simpli-
behaviour. New experiences our minds to new possibili- sense endless, so one cannot fied. But solutions need to be
help create new insights by ties. This involves asking the examine all aspects of every simple to be robust, adoptable
allowing you to see what was usual questions of who, what, issue. Rather, one has to be and replicable. Thus the chal-
previously undetected. This when, where, why and how in able to identify key boundary lenge in strategic design is to
can happen in many ways, for an attempt to try to analyse a conditions where something find the right simplifiers. Think
example by empathetically problem or explore a solution starts, ends or has a point about the idea of democracy:
seeing things from someone from all angles. Often what of inflection. Observing and it is a simple enough concept
else’s perspective or seeing seems like a simple concept is understanding extreme condi- that everyone gets a say in
them in a new way, such as packed with complexity when tions is a way to peer into a the fate of their community,
the visualising of data in a carefully examined. parallel reality where innova- but the social, juridical and
different manner. The Studio tion often happens at a faster political systems that make
Model itself gently pushes its Work Between Scales rate out of simple necessity. democracy function are incred-
participants into a new pattern Understanding insights and Only the innovative survive at ibly complex in nature.
of behaviour by introducing propositions as situated within the extremes.
new perspectives, new knowl- S,M,L,XL contexts in time and Dig for Roots
edge and new experience. space enables the strategic Build and Rebuild Taxonomies Pursuing strategic improve-
designer to also think about Humans have attempted to ments always involves looking
Draw Insights and Ideas the way decisions at one par- structure their understanding for root causes. By under-
The specific choices involved ticular scale have an affect on, of the world since ancient standing first principles one is
in committing ideas to the or are affected by, decisions at times. Taking a pile of items able to reformulate the needs
page is a way to confront their other scales. Being cognisant and finding order in their coex- and see status quo solutions
complexity. Occasionally what of scale is a practical way to be istence is one way of searching in a fresh light, exposing new
seems like a simple thought sensitive to the interconnectiv- for meaning by focusing on the opportunities. When digging
is incredibly difficult to draw ity of our world. relationships between things. for roots you continually asks
because the act of making Different taxonomies create yourself if you have discovered
marks on the page forces different alignments and leave the primary causes or if there
one to answer questions that open different gaps. Building are still deeper drivers.
words alone are able to avoid. and rebuilding these structures
That is a good thing: after is a way to be diligent about
working through the drawing seeing all aspects of an issue
you will have a refined under- and discovering areas that
standing! Drawing is especially need more attention.
powerful as a way to develop
a more robust consensus
amongst a group of individuals
who may be using the exact
same words but thinking
about different variations of
an idea.
Appendix 327

Some Important Abilities of the Strategic Designer

We are often asked for advice in identifying strategic

designers, for instance as Studio leads. We look for indi-
viduals who work at the intersections: individuals who are
well skilled in their particular trade but have experience,
fascinations, and interests in other fields—and apply this
mindset to their work. Whether industrial design, graphic
design, architecture, or any another field, we are looking for a
demonstrated ability to integrate various forms of knowledge,
to steward a project from conception through high quality
implementation, and to use visualisation to help see new pos-
sibilities. Included below is an incomplete list of additional
abilities and habits that help us identify a strategic designer.

Embrace Constraints Iterate Make Propositions Model and Prototype

Understanding what con- Strategic designers do not Design has the highest return Hand in hand with iteration is
straints exist within a given treat ideas as precious. Rather, on investment when used to the notion of using it to test
area can be very helpful as they develop propositions make sense of new conditions assumptions and propositions.
a strategic designer seeks through continual cycles of or take action in a new con- A strategic designer explores
opportunities for redesign. It exploration and refinement, text. In these situations there ways to de-risk propositions by
is a way to help you choose allowing for the testing of is seldom much precedent to testing them through partial
your battles. By being flex- variants. Often times work- rely on and the ability to make prototyping or by modelling
ible enough to accept given ing under an artificial time propositions is a key way in and simulation. This includes
constraints on less important constraint and holding oneself which to drive the conversa- the use of scenarios, games,
issues you reserve energy to an arbitrary number of tion forward. In abstract and role playing, as well as
and effort for those areas that iterations can generate a conversations, asking ‘what limited roll-outs of systems
have the potential to deliver momentum that leads to new if?’ can become a powerful in the familiar style of alpha,
real value. and better ideas. mechanism for consensus as beta, or 1.0, 2.0 etc. These
it enables intangible ideas to mechanisms create virtuous
Be Persistent Translate be evaluated through concrete cycles of self learning. The
Once the issues have been Translating between different expressions. sooner one begins making
unpacked, root causes perspectives and assumptions models or prototypes, the
discovered, and propositions enables the strategic designer Leverage Intuition better.
iterated to refinement, the to act as the intermediary To benefit from iterative work,
strategic designer will have a between disparate ideas, the cycles have to happen with
strong understanding of what viewpoints and even goals. a certain degree of urgency.
aspects of their proposition Being able to translate in Working in this way often
are critical and which are less this manner is an essential means using your intuition to
important. Reap the rewards precondition for being able to make decisions that are not
of this investment in having a integrate many things. able to be fully vetted out.
strong understanding of the Remember that subsequent
problem space by defending iterations act as a check and
propositions that have a high balance to reduce the risk of
potential for return on invest- intuitive decisions that may
ment. In other words, do not prove to be wrong.
give up when you know you
are onto something.
328 Chapter

Glossary/Index

Ageing Ecology of the problem HDL Global 1968 Iteration

—p 74-83, 273-323 One of the outcomes of the —p 16 The process of taking multiple
HDL Studio Model. An “ecol- passes at a question to help
Agility ogy of the problem” is a way HDL Global 2010 generate a broader range of
—p 19, 137-138 of describing the connections —p 43 possible solutions or perspec-
and interdependencies of a tives. In design, iteration is
Alexander, Christopher systemic challenge. HDL Studio Model generally an early to mid phase
—p 16 —p 113-115 A lightweight tool to enable process of cycling through new
institutions to quickly sketch takes on the same question in
Analysis Education new solutions to the chal- a quick manner.
—p 33, 36-37, 40, 48 —p 54-63, 141-203 lenges they face, thereby kick- —p 21, 32-33, 35, 36-37, 139
starting the transformation
Architecture of solutions Elevator pitch process. Executing a studio Kosonen, Mikko
One of the outcomes of —p 41, 117 involves considerations about —p 137-139
the HDL Studio model. An people, place, problem, and
“architecture of solutions” is Empathy process. Leadership
a balanced portfolio of actions —p 46-47, 62 —p 87-89 —p 19-20, 23, 103
that are designed to produce
positive impact in concert. Ethnography Hospitality Lead user
—p 113-115 —p 15, 35 —p 121-122, 131-132 A term coined by MIT Profes-
sor Eric von Hippel to describe
See 62-63, 72-73, 82-83 for Final review Inertia users that have needs that
examples described in an The “final review” comes at —p 21, 73, 115, 137-138 lead current market offerings
abbreviated form. the end of the studio week. and thus can be leveraged
While the format is flexible, Innovation to help create new markets,
Carbon neutrality every review involves a 10-30 —p 15, 17, 21-22, 27, 32, 33, 47, products, and services.
—p 33, 39, 64-73, 205-271 minute presentation by the 82, 137 —p 141
Studio team using audiovi-
Clients sual material that they have Integration Learning
—p 17, 24, 26, 139 created, followed by a 60-90 The process of bringing dispa- —p 26, 32, 40, 54-63
minute conversation. The rate cultures, knowledge, and
Complexity team presents to a group of perspectives together to create Lincoln, Abraham
—p 16, 17, 20, 32, 36, 48, 57, 138 3-5 invited review guests who a common conversation. —p 23-24
have a deep understanding of —p 47, 57, 73, 77
Consultancy relationship the topic at hand. Following Low2No
—p 40 the presentation, the studio See also: synthesis Sitra’s model of sustainable
team and their guests discuss urban development that seeks
Decision making the positives, negatives, and Intuition to retool the practice of city-
—p 19-21, 25, 27, 33, 35, 121, areas of opportunity within the The act of unconsciously making to thrive in a carbon
138 content presented. recognizing patterns and neutral economy. Currently
—p 88, 110-111, 116-119 relationships based on Sitra is prototyping the first
Design, short history of accrued experience. Intuition iteration of this model by lead-
—p 28 Formatting, importance of is frequently leveraged in early ing the development of a block
—p 41, 42-45 phases where information or of five buildings in central
Design thinking complexity is overwhelming Helsinki that strive to meet
—p 15-16, 26, 40 Helsinki Design Lab (HDL) or absent. rigorous carbon standards
An initiative by Sitra, The —p 36-37 and support carbon-neutral
Dropout students Finnish Innovation Fund, to lifestyles.
—p 54-63, 141-203 advance strategic design as a Investment —p 22, 33, 39
new discipline in tackling the —p 17, 24, 73, 83, 114, 137
problems of the interdepen- Mulgan, Geoff
dent world. We advance knowl- —p 15-17
edge, skill-set, and achieve-
ment in strategic design using Nordic Model
three main tools: our website, —p 77, 138, 275, 277
our Studios, and the HDL
Global event and network.
Subsection
Appendix 329

Pin-up Silo Strategic intent Vision

A meeting where work that is Refers to the division of labor If vision specifies why action The best vision statements
still in progress is pinned up into functional groups that should be taken, intent nar- answer the simple question
on the wall so that a project often have little or no horizon- rows in on what exactly should “why?” By describing an
team may have a group discus- tal connection between each be done. Strategic intent opportunity and offering a
sion about it. Pin-ups often other—like the silo structures
specifies a course of action in general direction of change,
happen on a daily basis during that store various sorts of dry
terms of methods and desired strong vision makes the status
intense design phases. goods. This works wonderfullyoutcomes. While it might quo fungible.
—p 109-110 when problems can be cleanly include some key details, for —p 23-24, 113
subdivided, and less so when the most part these remain
Place, the importance of interdependencies exist. fuzzy and adaptable to future See also: intent, plan
—p 121-125, 132 —p 16, 21-22, 30, 31 evolutions of the context.
Nevertheless, strategic intent Visualisation
Plans Sketching acts as a shared touchpoint Literally “making visible”, the
The description of a detailed The quick and dirty exploration that helps a team to make strategic implications of visual-
course of action that includes of an idea, often using visual individual decisions that align isation come when used as an
roles, responsibilities, techniques. Sketches allow the towards a common vision. analytical tool, not merely to
timelines, and other practical relationships between part and —p 23-24 illustrate fully formed thoughts
details. The best plans reflect whole to be explored when ex post facto. This includes
vision percolated through details are still fuzzy. See also: vision, plan sketching, data visualisation,
strategic intent and are subject —p 20, 37-39, 46, 109, 114-115 and mapping.
to continual reality checks. Studio —p 47-48
—p 23-24, 26, 28, 35, 40, 48 Stewardship May refer to a team of people
Good strategies rarely remain (p 101-105), a design process See 24, 30, 40, 44-45, 64, 73,
See also: vision, intent unchanged when pressed into as described in this book (p 76, 83, 96, 112, 115, 116 for
action. Stewardship is a role 87-89), or a physical place (p examples
Pre-factual of ongoing involvement over 121-125).
—p 21 the duration of an initiative to Welfare system
assist with corrective feedback, Synthesis —p 62, 74-83, 273-323
Prototyping troubleshooting, and course The act of combining multiple
—p 16, 139 correction. elements to create one thing. Wicked problems
—p 22, 23, 26, 40, 47-48 In contrast to cutting and past- —p 20, 32
Recruiting ing things together, synthesis
—p 101-105 Strategic design results in more than the sum
Traditional definitions of of its parts.
Return on investment design often focus on creating —p 6
—p 24, 73 a solution for a specific need—
be it a product, a building, or Third culture kids
Scale a service. Strategic design is —p 25
—p 19, 21, 27, 31, 35, 38-39, 67, the adaptation of principles
72-73, 93, 94-95, 114-115 from traditional design to "big Time management
picture" systemic challenges —p 107-111
Service design like health care, education, and
—p 24, 28-29, 82 climate change. It is the use of Uncertainty, Comfort with
design method and mindset —p 19, 25, 47, 57, 137
to redefine how problems are
approached, identify oppor-
tunities for action, and help
deliver more complete and
resilient solutions.
—p 19-41

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Adams, John. "John Adams Meadows, Donella H., and Barber, Michael. Instruction to Thomas, Douglas, and John
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November 1774." Adams Fam- Systems: A Primer. White River Britain's Public Services. Lon- of Learning: Cultivating the
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ist.org/digitaladams/aea/cfm/ 2008. Constant Change. Lexington:
doc.cfm?id=D22&mode=popup Bason, Christian. Leading CreateSpace, 2011.
sm&pop=D22_1 (accessed July Pollock, David C., and Ruth Public Sector Innovation: Co-
4, 2011). E. Reken. Third Culture Kids: creating for a Better Society. Tufte, Edward R. Envisioning
Growing Up Among Worlds. Bristol, UK: Policy Press, 2010. Information. Cheshire, CO:
Campbell, Emily. "You Know Boston: Nicholas Brealey, 2009. Graphics Press, 1990.
More Than You Think You Do: Brand, Stewart. How Buildings
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2011). Practice of the Designer in Phaidon, 2001. ethnography resources are
Industry. London: Pembridge available on our website at
Cross, Nigel. Designerly Ways Press, 1983. Johnson, Steven. The Ghost www.helsinkidesignlab.org/
of Knowing. Basel: Birkhäuser, Map: The Story of London's dossiers/design-ethnography
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Appendix 331

Thank You

This book and the work that it describes benefit from the involvement
of many people. First and foremost, we would like to thank the partici-
pants of the first three HDL Studios as well as our studio assistants (pages
58-59, 68-69, 78-79) and all guest speakers and those who hosted our field
trips (pages 60-61, 70-71, 80-81). Without their active and enthusiastic
engagement, much of this would not have been possible. Annikki Her-
ranen, Seungho Lee, and Hanna Häppölä deserve special mention for
their extra effort behind the scenes.
Through their involvement in various Studios during the past two
years we sincerely appreciate the support of our colleagues at Sitra,
especially Tapio Anttila, Mika Kalliomaa, Sanna Kettunen, Elina Kiiski,
Johanna Kirkinen, Juha Kostiainen, Paula Laine, Minna Mayer, Helena
Mustikainen, Jukka Noponen, Hannele Sirkkanen, Jonna Stenman. And
of course to Mikko Kosonen for allowing us to deliver.
Without the collaboration of the Ministry of Education, Ministry of
Housing, and City of Helsinki the studio challenges described here would
be lacking real depth.
Ezra Block and Adriel Mesznik intrepidly contributed research and
writing muscle to the Challenge Briefings. Jeremiah Tesolin and Martti
Tulenheimo provided valuable feedback on the manuscript.
We’ve enjoyed listening to and learning from Alejandro Aravena, Peter
Barmer, Christian Bason, Landon Brown, Laura Bunt, Ivo Corda, Rama
Gheerawo, Rosanne Haggerty, the team at DEMOS Helsinki, Rory Hyde,
Irene Hwang, Erkki Izarra, Indy Johar, Martti Kalliala, Poonam Bir Kas-
turi, Maja Kecman, John Landau, Nick Mabey, Geoff Mulgan, Anni Puo-
lakka, Darrel Rhea, Jack Schulze, Jenna Sutela, Tuomas Toivonen, Martin
and Lupi at TwoPoints, Anna Valtonen and her staff at the Umeå Institute
of Design, Matt Webb, and Dan Hill. This last individual has since joined
Sitra where we are happy to have him as a member of the Strategic Design
Unit.
In addition, events hosted by Ken Friedman and his staff at Swinburne
University of Technology in Melbourne, Marcio de Miranda Santos and
Claudio Chauke Nehme at CGEE in Brasilia, and Andrea Coleman and
Cynthia Shanmugalingam at the Young Foundation have provided rich
testing grounds for many of the ideas we explore in the introduction.
Our thanks to all of the individuals and organisations named above
and the many others who have made contributions big and small along
the way.
332

About Sitra

In 1967, Finland rewarded itself with a gift for the 50th

anniversary of its independence: a fund was established with
a mission to build for the future.
Sitra is an independent fund operating under the supervi-
sion of the Finnish Parliament, which seeks to promote stable
and balanced development in Finland, qualitative and quanti-
tative growth of the economy, and international competitive-
ness and cooperation. Our operations are funded out of the
returns from our endowment capital and business funding.
Sitra searches for new understandings of well-being.
Through foresight activities we anticipate societal changes
and attempt to address them proactively. In our investments
and pilot projects we promote new operating models and
stimulate businesses aimed at sustainable well-being.
The aim of this work is to help Finland prosper as a global
pioneer in systemic changes that foster well-being. A systemic
change is a broad, far-reaching change of the kind that
simultaneously affects the structures and practices of society
and the everyday life of its citizens. Sitra is an enabler of such
changes—as visionary and implementer. We are building a
successful Finland for tomorrow.

www.sitra.fi
Appendix 333

About The Authors

Bryan Boyer
At Sitra, Bryan is a part of the Strategic Design Unit
where he focuses on building the Helsinki Design Lab initia-
tive to foster strategic design as a way of working in Finland
and abroad. This includes the Studio Model, as well as the
HDL Global event and website. In his spare time Bryan
searches for innovative uses of walnuts, a fascination that
stems from growing up on a walnut farm in California. Previ-
ously Bryan has worked as an independent architect, software
programmer, and technology entrepreneur. He received his
BFA with Honors from the Rhode Island School of Design,
and his M.Arch from the Harvard Graduate School of
Design.

Justin W. Cook
As Sitra’s Sustainable Design Lead, Justin is working at
the intersection of climate change and the built environment.
He led content development for the Low2No competition and
is focusing on Low2No as a development model that aims
to balance economy, ecology and society through strategic
investments and interventions in existing cities. He has
previously worked in the Renzo Piano Building Workshop in
Genova, Italy; as a design researcher on the Harvard Stroke
Pathways project; and was the principal of a design-build
firm in Seattle. Justin received his BA from the University
of Washington and his M.Arch from the Harvard Graduate
School of Design.

Marco Steinberg
Marco directs Sitra’s internal strategic design efforts,
charting new forward-oriented opportunities to help Sitra
meet its mission of enhancing Finland’s national innovation
ability and well being. In addition to Helsinki Design Lab
he is responsible for the concept and design-development of
Low2No, a transitional strategy to create sustainable urban
development models in Finland through the implementation
of a large scale development project in downtown Helsinki.
His previously experiences include: Professor at the
Harvard Design School (1999-2009); advising governments
on SME & design funding strategies; and running his own
design & architecture practice. He received his BFA and
BArch from Rhode Island School of Design and his MArch
with Distinction from the Harvard Design School.
334
Imprint 335

In Studio: Images Published by

Recipes for Systemic Change The photographs in this book are Sitra
by Ivo Corda with the following Itämerentori 2
Bryan Boyer, exceptions: 00181 Helsinki
Justin W. Cook & Pekka Mustonen; p. 46, Finland
Marco Steinberg Kristian Runeberg; p. 16,
Bryan Boyer; pp. 1, 5, 9, 49, 51, 90, ISBN
96, 100, 106, 125, 125, 130, 167 978-951-563-786-4
The reproduction of Georges (Electronic Copy)
Seurat’s ‘La Parade’ on page 31 is
in the public domain. Copyright
© 2011 Sitra, The Finnish Innova-
Editing tion Fund
Silja Kudel
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