Reinventing Government

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Reinventing Government

• How the Entrepreneurial Spirit is Transforming
  the Public Sector

Monday, February 23, 2009
Natalie Grandison, Kate Otto Dawlat Soulam
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Introduction

• A snapshot of governments in 1992 shows evidence
  of an emerging governance paradigm
• Bureaucracies are bankrupt, markets have
  collapsed, but a hybrid is developing American
  Perestroika
• Provide an outline of a new way to conducts the
  publics business

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The FactsThe Ten Commandments

• CATALYTIC

• CUSTOMER-DRIVEN

• COMMUNITY- OWNED

• ENTERPRISING

• COMPETITIVE

• ANTICIPATORY

• MISSION-DRIVEN

• DECENTRALIZED

• RESULTS-ORIENTED

• MARKET-ORIENTED

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I Catalytic Government Steering Rather Than
Rowing
It is not governments obligation to provide
services, but to see that theyre provided1

• Public, private and non-profit collaboration
• Public promotes social equity
• Private provides products
• Non-profits provide human services

1 Osborne, David and Gaebler, Ted. Reinventing
Government How the Entrepreneurial Spirit is
Transforming the Public Sector. 30
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II Community-Owned Government Empowering Rather
than Serving

• Case Study Lee Brown, Houston Police
• Client vs. citizen
• Governments can transfer control to community and
  organizations
• Remove barriers
• Provide seed money, training, and technical
  assistance
• Move resources necessary to deal with problems

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III Competitive Government Injecting
Competition into Service Delivery

• Three Types of Competition
• 1. Public vs. Private
• 2. Private vs. Private
• 3. Public vs. Public
• Competition is only as good as it is regulated
• Competition breeds accountability,2 but also
  unregulated markets breed inequity3

2 Osborne, 94 3 Osborne,104
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IV Mission-Driven Government Transforming
Rule-Driven Organizations
Historically, most public institutions have
been designed to serve mass marketsToday we need
institutions whose mission is to serve one
niche4

• Case Study Louisville Housing Services
• Build a culture around mission
• Tools Sunset laws, reviews, and zero based
  budget

4 Osborne, 131
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V Results-Oriented Government Funding Outcomes,
Not Inputs

• Fund success and prevent failure
• Three approaches
• 1. Link pay to performance
• 2. Use performance information as a management
  tool
• 3. Tie spending to results

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VI Customer-Driven Government Meeting the Needs
of the Customer, Not the Bureaucracy

• Case Study GI Bill vs. Veterans Hospital
• Customer choice creates most the efficiency
• Total Quality Management

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VII Enterprising Government Earning Rather
Than Spending

• Example Fillet mignon versus chicken
• Governments should make a habit of gauging the
  return on their spending as if it were an
  investment5
• Four Way to Make Profits
• 1. Turn the profit motivate to public use
• 2. Charge user fees
• 3. Invest on expected returns
• 4. Turn managers into entrepreneurs

5 Osborne, 205
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VIII Anticipatory Government Prevention Rather
Than Cure

• Case Study Health Care
• Two Characteristics of Anticipatory Government
• 1. Focus on prevention not cure
• 2. Builds foresight into decision making

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IX Decentralized Government From Hierarchy to
Participation and Teamwork

• Example 9/11
• Consolidating agencies and super agencies
• Shared information
• Participatory management
• New challenges of the information age
• Knowledge is either relevant to a task or
  irrelevant not higher or lower6

6 Osborne, 268
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X Market-Oriented Government Leveraging Change
through the Market
The question we ask today is not whether our
government is too big or too small, but whether
it works. President Barack Obama

• Most powerful method of steering is structuring
  the marketplace
• Giving incentives instead of commands
• Government programs vs. markets

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Analysis

• Winners Losers
• Crisis Response
• Conflicting Principles

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Winners Losers

• Example Prison
• Solutions were presented under the assumption
  that they are all win-win

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Crisis Response

• Author assumptions
• During times of intense crisis the Depression
  and two world wars the bureaucratic model works
  superbly.
• In a crisis goals are clear, widely shared, tasks
  are straight forward, everyone is willing to
  pitch in for the cause
• Conflicts with the reality of a globalized world

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Conflicting Principles

• JFK and the mentally ill population
• Community ownership vs. decentralization
• Anticipatory government vs. catalytic government

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Conclusion

• Governments seeking to improve efficiency and
  quality should follow these commandments
• Creation of a visionary government
• the ultimate test in government is not
  performance but re-election

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Thank you