Swiss Service Style

Direct democracy – an organizational analysis II: Strategy

Strategy is goals, objectives, values and missions of an organization. The objective of direct democracy is to let people have a direct say – democracy by the people. This manifests in power sharing, also called ‘system of concordance’.

Power sharing manifests in two major ways in Switzerland.

  • Direct democracy – the sharing of power between people and the state,
  • and Federalism, the sharing of power between the Federation (highest level), Cantons (middle level, regions), and municipalities (lowest, local level)

The combination of the these two elements makes Switzerland a peculiar political system – even unique in political theory!

Regarding direct democracy, the constitution states that “sovereignty resides with the people, who exercise supreme political power”, giving citizens the powers of first and final say (see also in this earlier post). But the constitution also requires “individual and collective responsibility” from the citizens, “to achieve goals of state and society”.

Regarding Federalism, we the constitution guarantees large autonomy to Cantons and Communes, defines them as sovereign, and introduces the “principle of subsidiarity”. this principle means that decisions should be taken closest to where they have their effect. In Switzerland money flows from the bottom up (from Communes and Cantons to Federation), instead of top down. This means the central government can rely on tax incomes only on a provisional and temporary basis – a unique fact among industrialized countries.

The next chapters will explore how Structures, Processes, People and Rewards align with this Strategy.

Peter Horvath

I am unconsultant living in Geneva, Switzerland, focusing on experience and service design. I work at the intersection of technology, business and human-centered design, with international experience in strategy, marketing, experience design and product management – from corporate, startup, agency and freelance environments.