government in transition name of the game – best value ‘down-under’ gothenburg, october 2010...
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Government in transition
Name of the Game – Best Value
‘Down-Under’
Gothenburg, October 2010Dr Peter Demediuk, CPAVictoria University, AustraliaReims Management School, FranceUniversity of Gothenburg, Sweden
Research Interests• Demediuk, P. 2010 (forthcoming). Modernity and
tradition: critical success factors in small Italian wineries. International Journal of Economics & Business Research.
• Demediuk, P. and Burgess, S. 2010 (forthcoming). Ends before means: unravelling the functions of community engagement by governments. BE&SI Anthology of Business.
• Demediuk, P. 2010. And What Do You Want for the Future? The Journal of Knowledge, Culture and Change Management. V.10. N.1. pp 537-548.
• Demediuk, P. 2010 (forthcoming). Waking Up the Sleeping Town. International Journal of Interdisciplinary Social Sciences.
• Demediuk, P. 2010. Not Just an Innocent Flock of Sheep. The Journal of Learning. V.17. N.3. pp 51-65.
• Demediuk, P. 2010. A Subject to Get You Off the Couch. The International Journal of Diversity in Organisations, Communities and Nations. V.10. N.1. pp 397-407.
What’s in a name – yours?
What´s in a name? That which we call a rose by any other name would smell as sweet.
Question – meaning of the reform name (reform-mark): ’best value’
Solli, Rolf; Demediuk, Peter & Sims, Rob. 2005.
The Namesake: On Best Value and outher reformmarks.
in Czarniawska, Barbara & Sevón, Guje (eds).
Global ideas : how ideas, objects and practices travel in the global economy
Liber & Copenhagen Business School Press. Malmö
Note references on website: metaphors article; NPM figures; Global is local; Cultural values
Down Under (or over) – hit Asia then turn right
Accidents happen*nearly Australie or New Holland*nearly a ‘banana republic’ – federation 1901*still OHMS - on her majesty’s service
A wide brown land22.1 million people
Australia is the 6th largest country by area
• Russia - 17,075,200 sq km • Canada - 9,984,670 sq km • USA - 9,631,418 sq km • China - 9,596,960 sq km • Brazil - 8,511,965 sq km • Australia - 7,686,850 sq km
• Kazakhstan - 2,717,300 sq km Eg France fits into Australia around about 14
times
Her beauty & her terror• Ularu (ayres rock) to Coral Bay• Sharks, snakes, spiders, jellies, crocs … scorpions• Taipan - world’s most potent snake venom (250,000
mice)
No worriesContradictions• Good sense of humour – it’s a big ad• Uncomplicated & open• Irreverent• Rule abiding – helmets, seatbelts, voting!
Quiz1. Initial “small talk” before a business meeting begins?2. Punctuality?3. Bringing presents?4. Contact the level you want directly?5. Ceremony? – cards protocol6. Eye contact; handshaking?7. Openness - how direct in what you say and how react?8. Playing a ‘tall poppy’?9. Trust? - do what you say you will do
The lucky country
Doing business or living in Australia• 5 states; 2 territories; capital Canberra; woman
PM• 3 tiers of government: federal, state & local• Local gov’t ‘r’s – rates, roads, rubbish, recreation,
resources (eg libraries), regional development• Best performer in GFC• Currency AUD = .7 Euro = .9 USD• Strong banks willing to lend• Aggressive business & skilled migration• High ownership; high spend V save• Healthcare & other social benefits• Most ‘liveable’ cities• Political sameness & stability
The Question!!Ideas travel and are translated &
named• The name of Reforms• Public sector reforms• NPM!• Examples: CCT & Best Value
Sweden, England and Victoria it seems different but same name?!?
Have you ever regretted any travelling?
10 random sample of persons
8 answers unconditionally ‘no regrets’1 give the story of when he was running away – buts was glad they did it
1 said yes, regretted it, but didn't want to explain
We learn by travelling© Rolf Solli
8/1023 answered No regrets!
Inspiration
Gabriel Tarde
1843-1904
Ideas travel too!
Opinion – of influential people &/or fashion Tradition – of change or risk takingRational – its seems to do something
Two conditions should be in place!
(Tarde)
Implementation of an idea
© Rolf Solli
Practice at
A
Story about A
B:s Problems
Conditions
Institutions
Practice at
B
Even if the name is the same, practice at A will always be somewhat, quite or very is different from practice at B due to the context! – if you take a careful look
Societal/ cultural norms or values as contextual factors that affect the travel & translation of ideas
Power
Distance Individualism
Masculinity
Uncertainty Avoidance
Long-term Orientation
USA 40L 91H 62H 46L 29L Germany 35L 67H 66H 65M 31M Japan 54M 46M 95H 92H 80H France 68H 71H 43M 86H 30L Netherlands 38L 80H 14L 53M 44M Hong Kong 68H 25L 57H 29L 96H Indonesia 78H 14L 46M 48L 25L West Africa 77H 20L 46M 54M 16L Russia 95H 50M 40L 90H 10L China 80H 20L 50M 60M 118H Australia 36L 90H 61H 51M 31L Four key elements, or "dimensions", of culture
Power distance, a measure of the inequality between bosses and inferiors, extent to which this is accepted Uncertainty Avoidance, the degree to which one is comfortable with ambiguous situations, can tolerate uncertainty Individualism v. Collectivism, degree to which one thinks in terms of 'I' versus 'we, either ties between individuals are loose or people are part of cohesive in group throughout their lives Masculinity v Femininity. Also known as achievement- versus relationship- orientation - cultures high on masculinity rate achievement and success more than caring for others and the quality of life. Confucian Dynamism - the long or short term orientation of different cultures.
Transferred and translated changeThe case of Best Value –
a duty to deliver service in clear standards covering both quality and costs
First - background to different management structures & processes - lenses that can help with your assessment task…
The New Public Management (NPM) is a generic term for reforms to the structures and processes of government which stress a rationality of economic efficiency in servicing what the State perceives are the needs of ‘customers’
Demediuk, P. and Burgess, S. 2010 (forthcoming). Ends before means: unravelling the functions of community engagement by governments. BE&SI Anthology of Business.
Figure Error! No text of specified style in document.-1 Eras of local governing: a continuum
for policy and administration reform
Continuum of paradigms/source
Traditional public > NPM > Community governance management
Key objectives the governance system (Kelly 2002)
Managing inputs, delivering services in a welfare state context
Managing inputs & outputs in a way that ensures economic efficiency & responsiveness to consumers
Greater effectiveness in tackling problems that the public cares about and greater local democracy
Dominant ideologies (Denhardt 2000)
Professionalism and party partisanship
Managerialism and consumerism
Managerialism and localism
Source of public interest (Aulich 1999b)
Defined by politicians/experts.
Aggregation of individual preferences demonstrated by customer choice.
Individual & public preferences resulting from complex process of officials & community interaction.
Public servants respond to (Denhardt 2000)
Clients & constituents Customers Citizens
Goal of managers (Kelly 2002)
Follow political direction
Meet agreed performance targets.
Meet citizen/user preferences & renew trust through quality services.
Role of government (Denhardt 2000)
Steering and rowing Steering, and unleashing market forces
Serving by brokering and negotiating community interests
Performance objective (Kelly 2002)
Managing inputs. Managing inputs and outputs.
Multiple objectives: service outputs & outcomes satisfaction, trust & legitimacy.
Rationality (Considine 2006)
Laws & rules Management plans & competition
Relationships, co-production & co-operation brokered
Performance information implied by objectives (Stoker 2004)
Resource usage budgets Resource usage budgets Output indicators
Performance measurement: resource usage budgets output indicators outcome information about
services, trust, legitimacy etc. Achieving objectives - preferred service deliverer (Kelly 2002)
Hierarchical administration of programs through existing professional departments
Private sector or tightly defined arm’s-length government or non-profit agency contracts and incentive structures.
Menu of alternatives (e.g. public sector agencies, private companies and community groups as well), selected pragmatically with an increasing role for user choice
Organisational structure (Denhardt 2000)
Bureaucratic organisation with top-down authority
Public sector organisations are decentralised
Collaborative structures with internal and external participants
Management discretion (Denhardt 2000)
Allowed little discretion. Wide latitude in meeting goals
Constrained and accountable discretion
Dominant model of accountability (Stoker 2004)
Upwards through administrative and service departments to politicians, councils and parliaments.
Upwards through performance contracts and outwards to customers via outcomes & market mechanisms.
Multiple: citizens as users & overseers of
government taxpayers as funders.
Role for public participation Kelly (2002)
Limited to voting in elections and pressure on elected representatives.
Limited – apart from use of customer satisfaction surveys.
Crucial – multifaceted (the community as customers, citizens, and key stakeholders).
Management motivation (1 (Denhardt 2000)
Pay, benefits and security
Entrepreneurial spirit and desire for smaller government
Serve the public and contribute to society
Public service ethos (Kelly 2002)
Public sector has monopoly on service ethos and all bodies have it.
Sceptical of public sector ethos (leads to inefficiency and empire building) – favours customer service.
No one sector has a monopoly on ethos and no one ethos always appropriate – but the ethos is a community resource and needs to be carefully managed.
Relationship with ‘higher’ tiers of government
Partnership with other agencies involved with service delivery
Upwards through performance contracts and meeting key performance indictors
A complex mix of flexible relations negotiated with national and regional governments
Demediuk, P. and Burgess, S. 2010 (forthcoming). Ends before means: unravelling the functions of community engagement by governments. BE&SI Anthology of Business.
Figure Error! No text of specified style in document.-1 Eras of local governing: a continuum
for policy and administration reform
Continuum of paradigms/source
Traditional public > NPM > Community governance management
Key objectives the governance system (Kelly 2002)
Managing inputs, delivering services in a welfare state context
Managing inputs & outputs in a way that ensures economic efficiency & responsiveness to consumers
Greater effectiveness in tackling problems that the public cares about and greater local democracy
Dominant ideologies (Denhardt 2000)
Professionalism and party partisanship
Managerialism and consumerism
Managerialism and localism
Source of public interest (Aulich 1999b)
Defined by politicians/experts.
Aggregation of individual preferences demonstrated by customer choice.
Individual & public preferences resulting from complex process of officials & community interaction.
Public servants respond to (Denhardt 2000)
Clients & constituents Customers Citizens
Goal of managers (Kelly 2002)
Follow political direction
Meet agreed performance targets.
Meet citizen/user preferences & renew trust through quality services.
Role of government (Denhardt 2000)
Steering and rowing Steering, and unleashing market forces
Serving by brokering and negotiating community interests
Performance objective (Kelly 2002)
Managing inputs. Managing inputs and outputs.
Multiple objectives: service outputs & outcomes satisfaction, trust & legitimacy.
Rationality (Considine 2006)
Laws & rules Management plans & competition
Relationships, co-production & co-operation brokered
Performance information implied by objectives (Stoker 2004)
Resource usage budgets Resource usage budgets Output indicators
Performance measurement: resource usage budgets output indicators outcome information about
services, trust, legitimacy etc. Achieving objectives - preferred service deliverer (Kelly 2002)
Hierarchical administration of programs through existing professional departments
Private sector or tightly defined arm’s-length government or non-profit agency contracts and incentive structures.
Menu of alternatives (e.g. public sector agencies, private companies and community groups as well), selected pragmatically with an increasing role for user choice
Organisational structure (Denhardt 2000)
Bureaucratic organisation with top-down authority
Public sector organisations are decentralised
Collaborative structures with internal and external participants
Management discretion (Denhardt 2000)
Allowed little discretion. Wide latitude in meeting goals
Constrained and accountable discretion
Dominant model of accountability (Stoker 2004)
Upwards through administrative and service departments to politicians, councils and parliaments.
Upwards through performance contracts and outwards to customers via outcomes & market mechanisms.
Multiple: citizens as users & overseers of
government taxpayers as funders.
Role for public participation Kelly (2002)
Limited to voting in elections and pressure on elected representatives.
Limited – apart from use of customer satisfaction surveys.
Crucial – multifaceted (the community as customers, citizens, and key stakeholders).
Management motivation (1 (Denhardt 2000)
Pay, benefits and security
Entrepreneurial spirit and desire for smaller government
Serve the public and contribute to society
Public service ethos (Kelly 2002)
Public sector has monopoly on service ethos and all bodies have it.
Sceptical of public sector ethos (leads to inefficiency and empire building) – favours customer service.
No one sector has a monopoly on ethos and no one ethos always appropriate – but the ethos is a community resource and needs to be carefully managed.
Relationship with ‘higher’ tiers of government
Partnership with other agencies involved with service delivery
Upwards through performance contracts and meeting key performance indictors
A complex mix of flexible relations negotiated with national and regional governments
Figure Error! No text of specified style in document.-1 Attributes of local governing
Economic efficiency ------------------------------------ Local democracy Technocratic (control by experts) ----------------------------- Pluralist (diversity) Political & professional domains ----------------------------- Public domain Developed after Aulich’s (1999a, p. 20) mix-processes-values model with Considine’s (2006) sources of rationality and Hendriks and Tops’ (2000) domains.
Community governance NPM
Dominant process
Rationality source
Dominant values
What are we after - better services or better community
Community engagement initiatives as a ‘package deal’
Democracy orientation/actor Service delivery orientation/actor X Visioning meetings rationale
X
Vision meetings actual
Developed from the case study data
Good ideas Good connection for policies and programs for involving citizens with the kommun and civil society
Government and governance
• http://corporate.bangthetable.com/2010/10/01/having-your-say-baby
best value - process of creation
Benchmarking
Total Quality Management
Performance indicators
MBOSurveys
BudgetingLeadership
Efficiency
costs
Democracy
Ethics
Inspectionsetc
etc
etc
Twelve principles
Four Strategie
s
Get rid of Thatcherism(eg CCT)
best value – UK story, 2000 replaces CCT
Twelveprinciples
Four Strategie
s
BenchmarkingCostsEthicsTotal Quality ManagementPerformace indicatorsEffiencyMBOSurveys LeadershipDemocracy InspectionsBudgeting etc
best value: 4 CCompare
Compete
Challenge
Consult
Implicit = Cooperate
best value: twelve principles Performance plans should be drawn up The Government decide about the model Auditors should audit the relevance of
information Auditors should report publicly about Best Value
and if goals are achieved Secretary of State can intervene after Audit
Commission advise etc
Appoint auditors to all local government and NHS-units in England and Wales
Decide about standards for auditors and auditing recommendations
Do countrywide value for money auditing Define comparable performance indicators
and publish them on a yearly basis
BV82a
BV82b
BV82c
BV82d
Percentage of the total tonnage of household waste arisings which have been recycled.
Percentage of the total tonnage of household waste arisings which have been composted.
Percentage of the total tonnage of household waste arisings which has been used to recover heat, power and other energy sources.
Percentage of the total tonnage of household
waste arisings which has been landfilled.
BV indicators 1/177
BV88
Dudley Metropolitan Borough CouncilWaste Management
Summary Report - September 2000
Scoring Chart1064 inspections (%)
Prospect for improvment?
Poor Fair * Good** Excellent***
Excellent 1 5 5 1Promising 2 23 22 1
A good
Uncertain 2 21 11 0 service?
Poor 1 3 1 0 2000-09-11 2002-09-10
Harrow Refuse Collection
Harrow – Refuse Collection Service
”Fair”
96/97 97/98 98/99 99/00Harrow 2467 1036 752 779Top 25% 24 23 20 20
Missed cans per 100.000
Harrow – Refuse Collection Service
“Unlikely to improve”Dispose to little money – cheapest in the London area
Good argument, said the in-house manager, the rating gave us 8% extra
© Rolf Solli
Appoint auditors to NHS and local authorites in England
and Wales;
Decide about standards for auditors
Produce value for money (VFM) reports through
inspections
Collect and publish performance information on councils
www.audit-commission.gov.uk
best value in England
Keywords
The StatePerformance indicators
InspectionsWWW
Resources
best value - comments
Lots of medicine at one time
MBO, performance indicators, bench marking, TQM, surveys etc
All known for not working
- but maybe they do together
best value?
Mark state-local government relations
Mark the relation between Audit Commission and local government
Yes!
© Rolf Solli
Has it hit someone else?
Best ValueVictoria 1990´s - now
Amalgamations and boundaries 210 to 78
CCT mandated …around 70% of operating expenditure
Words like “customers”, “competition” & “accountability”
CCT - It should work?
“You can get to the moon using lowest price contractors…you can certainly manage a park!” –Bayside CFO, 11/98.
CCT - Did it work?
“Under CCT the council managers have lost the plot and see parks in terms of a facility to maintain rather than a community resource – they are quite different things” - Rob Sims, Public Sector Research Unit.
A sad story of parks
CCT - Did it work?
• Too often the process of competition became an end in itself
• CCT distracted attention from need, fit and priority of services that were provided
• Where CCT worked it looked a lot like Best Value• Hard to go back• Misplaced metaphor paper – decimated rural towns -
atomic bomb V aromatherapy• A pivotal force in the government losing the election
Summary
Victoria 1999Unexpectedly win the elections
Decision on the run
NPM-policy out!!
Hell - What to do?
Stole UK BV label and concept & legislated and implemented before UK
Best Value
Victoria now
• No new CCT contracts.• Best Value principles mandated for
ALL expenditure.• No rate cap.• Words like “community”, “co-
operation” and “accountability”.• Words like “PPP´s” (private/public
partner-ships).
Six principles
1. All services must meet quality and cost standards.In developing standards councils must:• Review the best on offer in the public and private
sectors• Assess value for money• Consider community values and expectations• Balance affordability and accessibility• Foster opportunities for local employment growth
and retention• Make service standards publicly available
Six principles
2. All services must be responsive to the needs of the community
3. A service must be accessible to those for whom it is intended
4. A council must achieve continuous improvement of its provision of services
5. A council must regularly consult with the community about services
6. A council must report regularly, at least yearly, on its achievements to its community in relation to the Best Value Principles.
Australia - Victoria
City of Maribyrnong
The Best Value Framework contains the following stages:
UNDERSTAND
CONSULT
COMPARE
IMPROVE
DELIVER
The Review Process - Key Steps
STEP 7Review &Analysis
STEP 2Initial
Scope of Project
STEP 3Review of
Current Service
STEP 4Strategic Review
STEP 5Develop Scope for
Consultation
STEP 6DETAILED
CONSULTATIONPHASE
STEP 8Prepare &
seek feedback on
Draft ServiceProfile
STEP 9Adoption
of New
Service Profile
STEP 1Form
Review Team
CONSULTATION WITH STAKEHOLDERS
SHARE LEARNING - ISSUES/FEEDBACK
Output of Each Step is submitted to the Best Value Consultancy Group for ratification
BV Victoria
• Best Value is nothing but good management, we will make it a part of our business plan … the Best Value Act is still there but people use names like Continual Improvement and Community Engagement now”
(Shire of Yarra Rangers,)
Marigyrnong Library Service
UNDERSTAND CONSULT COMPARE IMPROVE DELIVER
Best Value Victoria
No inspectionsNo performance indicators
No WWWActions for new identity
But the name BEST VALUE
That means
SwedenLocal Governments (290)
•Day Care Centres•Schools (6-18)•Social welfare•Care for disabled•Library•Refuse Collections and disposal•Streets•etc
Local Governments in Sweden
(Average)Turnover: 1 Billion SEK
Employees: 2200Inhabitants: 31000
Must• care of the elderly and the disabled citizens• primary and secondary education, childcare• refuse, water, sewerage, streets, planning and
building matters, emergency preparedness, rescue services, public health protection and environmental matters
Typically• leisure, culture• housing, street maintenance• energy provision• share with regional governments tasks relating to
local public transportAutonomy • local governments are dependant on transfers
from the State• significant autonomy accrues from their ability to
raise taxes
Best Value Sweden
InspectionsPerformance indicators
WWW
But NOT the name BEST VALUE
Comparison
England Victoria Sverige*Label Best Value Best Value NonePerformance idikators Yes No YesInspektions Yes No NyesResources Much Litle LitleInternetdriven Yes No YesState Control Yes Nja Yes
*Most of it is a discorse in Sweden
That means!
Mathematics!
Sweden + Victoria = England
England - Victoria = Sweden
England - Sweden = Victoria
Sweden - Victoria = India?
An interpretation
England
SwedenVictoria
Low
High
Benefit
Lott
Effort
Compare The tableYour job!
England Victoria Sweden* Your CountryLabel Best Value Best Value None ?Performance indikators Yes No Yes ? Inspektions Yes No Nyes ?Resources Much Litle Little ?Internetdriven Yes No Yes ?State Control Yes Nja Yes ?
*Most of it is a discorse in Sweden
Participation Budgeting some some some ?