NEW SPECIAL ISSUE BLOG SERIES: Blog 1 – Public value as the game changer for co-creation of innovative solutions in the public sector

Special issue blog series on strategic management of the transition to public sector co-creation

updated special issue editors co creationJacob Torfing, Ewan Ferlie, Tina Jukić and Edoardo Ongaro

During the 1980s and early 1990s, we were consistently told that the public sector was ossified, incompetent and unimaginative, and squandered value produced by the hard-working and innovative private sector. Government was the problem, not the solution, and we should therefore have less state and more market. The neoliberal onslaught on the public sector had begun and public employees gradually developed an inferiority complex.

This nightmarish development was reversed by Mark Moore’s Creating Public Value (1995) who insisted that the public sector creates its own distinctive value. The public sector creates ‘public value’ defined as what has value for the public and public values. Public managers are not merely engaged in securing compliance with bureaucratic rules, but are entrepreneurs engaged in the exploration of new and better service and policy solutions. In this way, the public sector was redeemed and public managers could re-describe themselves as proud guardians of the public interest and producers of public value.  Continue reading

Successful policy transfer and public sector reform in developing countries

Ugyel and DaugbjergLhawang Ugyel and Carsten Daugbjerg

The scope and intensity of policy transfer—defined as the process in which policies and institutions from one time and/or place are used in another time and/or place—has increased in the last two decades. An area where extensive policy transfer occurs is public sector reform. In particular, developing countries frequently draw heavily on New Public Management (NPM) practices originally designed for Western democracies. Perceived as best practices, NPM-related reforms influenced the good governance agenda for most developing countries in the late 1990s and early 2000s. They were based on market-like characteristics such as performance management systems and citizens’ charters. Developing countries have found these reforms irresistible, as they face a huge need to grow their economies and shrink their governments. Amidst the expansion of the practice of policy transfer, early studies assumed that a key to successful transfer was the transfer of policy models in their entirety. However, recent research – including our own article in Policy & Politics – suggests that local adaption is essential for success.    Continue reading

Introduction to the Special Issue on the potential of design to improve public policy and administration

special issue p&P editors.png

 

 

 

 

Arwin Van Buuren, Jenny Lewis, Guy Peters, William Voorberg

In recent years, policy makers and administrators have shown increasing interest in design approaches to address policy problems. Design methods offer innovative perspectives on persistent policy problems (e.g. climate change; ageing population; urbanization etc.). Given the enormous influx of design toolboxes, design approaches and design steps, there is a search for an ‘ultimate design approach for public sector problems. But there are different approaches that can be used and which have different strengths.

In our introduction to the special issue on design and public policy we distinguish three rather different design approaches in public sector design.   Continue reading

The Role of Public Sector Boards

Thomas SchillemansThomas Schillemans

For many organisations providing important public services, such as education, health care or community services, non-governing boards serve as the primary accountability mechanisms for daily management. The ‘boardisation of the public sector’, as Wilks described this, has evolved considerably. In my country of residence the Netherlands, for instance, the guesstimation is that we have almost 50,000 positions on those boards, six times as many as in democratically elected local councils. A large proportion of those positions have been created in the recent past. This would suggest that the board model is a major success.

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Policy & Politics authors call for a moratorium on the use of management consultants in the NHS until effective governance is established

IanKirkpatricketalIan Kirkpatrick, Andrew Sturdy, and Gianluca Veronesi

A recent study on the impact of management consultants on public service efficiency, published in Policy & Politics, prompted this letter from the authors calling for a moratorium on their use until effective governance is established.

 

Open letter to the Rt Hon Jeremy Hunt MP, Secretary of State for Health and Social Care

 2nd July, 2018

Dear Mr Hunt,

Re Calling for a moratorium on the use of external management consultants in the NHS until effective governance is established

We recently conducted independent research on the use of external management consultants in the NHS in England. This was subjected to peer review to establish the rigour of its analysis and published in an academic journal (Policy & Politics). Since then, it was mentioned in a parliamentary debate (23rd April, 2018, Hansard Volume 639) and widely reported in the media (21st February, 2018), including in The Times, which has also seen this letter.  Continue reading

Mother tongue? Policy language, social enterprise, the UK and Australia

Chris Mason_Michael MoranChris Mason and Michael Moran

Social enterprise has emerged as an important vehicle of public sector reform globally but has received particular attention from policymakers in ‘liberal regimes’ such as the UK and Australia.

In our recent Policy & Politics article we set out to understand why two similar policy contexts – loosely-shared political cultures, institutional arrangements and importantly a common language – ended up engaging differently with a common policy idea, social enterprise.

To do so, we developed a unique policy data set constructed around social enterprise as it applied to a broad range of policy fields – from health and social care to resourcing the non-profit and voluntary sector – and policy initiatives. Continue reading

Has privatisation influenced public service equity? Evidence from China

HuanmingWang_etalHuanming Wang, Rui Mu and Shuyan Liu

Since the late 1970s, governments in many countries have adopted privatisation reforms, including contracting-out public services, transferring functions and responsibilities to the private sectors, and selling enterprises to private interests. The practice of privatisation in some developing countries has led to the problem of unequal treatment. For instance, many local governments in China outsourced their public services (e.g. public bus services, water supply and waste disposal services) to private companies. This included the delegation of operations entirely to these private entities. Government subsidies were allocated to the private operators, but these subsidies could not cover the full costs incurred by those private operators.. In this context, the private operators had to concentrate their services in densely populated areas and neglect the needs of more sparsely populated areas, resulting in the inadequate provision of services in the latter areas. As a result of this, some local governments withdrew from these privatised arrangements in order to ensure a more equal provision of services.

Our recent Policy & Politics article explores whether and to what extent privatisation and its reversal influence public service equity in China. Our paper focuses on public bus services in China, the provision of which has been subject to both privatisation and subsequent re-nationalisation, and draws upon an extensive programme of research that covered 245 cities. The Coefficient of Variation (CV) method was used to measure equity, and the multiple-regression method was adopted to test the relationship between privatisation and equity. Continue reading

Using management consultancy brings inefficiency to the NHS

IanKirkpatricketalIan Kirkpatrick, Andrew Sturdy, and Gianluca Veronesi

Few topics have provoked as much debate and controversy in many western societies as the growth in public spending on management consultants. In the UK’s public healthcare sector: the National Health Service (NHS), this spending more than doubled from £313 million in 2010 to £640 million in 2014. Understandably, it is under constant scrutiny and there are considerable pressures to cut the use of management consultants, but spending remains high. Management consultants provide advice on strategy, organisation, financial planning and assist with the implementation of new information technology. Frequently, they promise significant improvements in efficiency. According to the main industry body in the UK, the Management Consultancies Association (MCA), for every £1 spent on consulting fees, clients can expect £6 in return. However, as shown in a study we conducted recently, published in Policy & Politics, the use of management consultancy in English NHS hospital trusts is more likely to result in inefficiency.

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Should regulators engage consumers in decision-making? Lessons from UK water regulation

Eva Heims and Martin LodgeEva Heims and Martin Lodge

The idea of ‘consumer engagement’ has become a central theme in UK economic regulation. Regulators are demanding it, regulated companies are claiming to be pursuing it – but nobody quite knows what ‘it’ (i.e. consumer engagement’) might actually represent. So what does research on consumer engagement tell us?

In our recent Policy & Politics article on Customer Engagement in UK water regulation, we argue that the idea of consumer representation in UK utility regulation is, of course, not particularly new. The ‘old’ age of publicly owned utilities was characterised by a range of consumer representative bodies. While some managed to survive into the age of privatisation, the key emphasis has been on relying on regulatory bodies themselves to play a consumer representation function since the 2000s. But since the late noughties, putting the consumer at the heart of regulation has become a central theme in UK utility regulation and water regulators in the UK have recently experimented with different mechanisms of customer engagement. Continue reading

Communities First?  Governing neighbourhoods under austerity

Welsh Government is phasing out its (former flagship) Communities First tackling poverty programme from 2017/18.  The Bevan Foundation, a think tank, has stressed that subsequent local action should be led by ‘community anchors’ – community-based organisations with a good track-record and strong community engagement. In a recent article published in Policy & Politics, we use the conceptual framework of hybridity – conducted as part of the Transgob project in Cardiff, Wales – to support this recommendation, and highlight the need for local government to relinquish its former levels of control to give these organisations space to develop approaches which work for their communities.

The research explored what austerity means for participation in city governance.  The optimistic view is that making governance more participatory can help overcome the hurdles of bureaucracy, with government ceding control to enable capacity to address complex problems.  The pessimistic view is that city governance remains dominated by state elites, with third sector and community partners co-opted to compensate for the decline in state provision, compromising their ability to advocate for and ensure that communities get decent services.  In Cardiff we uncovered attitudes and practices somewhere in between these two views.

We found that austerity had accelerated the city council’s use of its city governance structure, the Cardiff Partnership, to share the risk and responsibility of service delivery with other public organisations, but also with third sector organisations and neighbourhood-level community groups.  Communities were certainly having to take more responsibility for delivering their own (formerly public) services, such as play and youth services and the maintenance of parks, sports grounds and streets.  Those at the neighbourhood frontline faced tensions and power conflicts in trying to develop workable practice.

But we did find that community-based organisations had some room for manoeuvre in developing forms of co-production that were rooted in communities as well as responding to the strictures of funding cuts.  One example was timebanking, championed by a deprived community-based organisation in south Cardiff.  The approach means that volunteers can exchange equivalent hours of providing a service such as kids’ school holiday activities for other services.  The scheme was underpinned by the council offering access to facilities such as swimming pools, but the opportunities to spend credits earned within the community were expanding, indicating potential for it to become self-sustaining (and thus definitively community-led).  But it was too early in our research to tell whether attempts to replicate it will be successful.

mpill

Credit: photograph taken by Madeleine Pill of the mural celebrating ‘Timeplace’, a community timebank running in the Cardiff neighbourhoods of Ely, Caerau, Fairwater and Pentrebane.  Timeplace is run by ACE (Action in Caerau & Ely) http://www.aceplace.org/timeplace/, a community-based organisation, in partnership with Spice,http://www.justaddspice.org/, a specialist timebanking non-profit organisation.

The city council was also seeking to transfer assets such as libraries and community centres to communities.  The frustrations of this process – such as the need for willing community groups to become formalised organisations – showed the need for change in the council’s attitudes to risk.  In the words of a Welsh Government officer, government needs to ‘recognise that the cheapest and best way to achieve real things is to spot what people are doing for themselves and support them’.

When the Communities First programme was reshaped in 2011, Cardiff Council innovated by contracting community-based organisations to manage the four deprived neighbourhood ‘clusters’ eligible for programme support. In so doing, the council downloaded risk and offloaded staff costs as the organisations took on responsibility for finance, HR and evaluation – thus becoming hybrid third-public sector organisations.  Their staff had to navigate the tensions and dilemmas of implementing a (national) programme, engaging in the (city-wide) strategy overseen by the Cardiff Partnership, and the needs and demands of their communities.  Doing this aligned with the demands of austerity, enrolling these community organisations into service delivery in ways that included voluntarism, thus increasing community self-reliance.  But we also found, to an extent, that community organisation staff were able to innovate (such as with timebanking) – and in ways that maintained their community-focused mission.

Therefore our Cardiff research shows how the ‘devolution, decentralisation and downloading’ of Peck’s (2012) ‘austerity urbanism’ encourages hybridity at a scalar, organisational and individual level.  But our research also reinforces the need to understand local practices to provide insight beyond the dualism of empowerment or incorporation.  The Cardiff experience of participatory governance demonstrates the potential for transformative alternatives in the everyday and the small-scale – and also highlights the need for state supports rather than constraints in these processes.   In the case of Wales, the need to sustain the work of community anchors should be a priority.

The ‘Transgob’ project analysed the discourse and practice of participatory urban governance under austerity in two British (Cardiff and Leicester) and four Spanish cities.  It was funded by the Spanish government’s National Research and Development Plan (reference CSO2012-32817).

Dr Madeleine Pill is a Lecturer in Public Policy at the University of Sydney, Australia, and Valeria Guarneros-Meza is a Senior Lecturer in Public Policy, based at De Montfort University, in the UK.

If you enjoyed this blog post you may also like to read Community asset transfer in Northern Ireland by Brendan Murtagh.