Governing by Network Producing Public Value with Private Actors

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Governing by NetworkProducing Public Value with
Private Actors
Stephen Goldsmith 5th Workforce Innovation in
Regional Economic Development Academy May 1, 2008
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Government Is Changing
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Problems Are No Longer Vertical Silos
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The Imbalance Between Citizen Demands and
Resources is Growing
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Government by Proxy is Increasing
Table True Size of Government Totals from
1990-2002
Information taken from Paul C. Lights Fact
Sheet on the New True Size of Government
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The Shape of Government is Changing
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The Shape of Government is Changing, Contd
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Golden Gate National Recreational Area
Overcoming futility by using a network to create
public value
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CGNRA Employees, 18
Private partners have invested 100M in capital
improvements.
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The Privatization or Outsourcing Debate
Reflects a False Choice
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Role of GovernmentFocus Less on Programs and
More on Public Value
Before DC General Hospital
After DC Health Care Networks, From One to Many
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Advantages Of Networked Model
Speed andflexibility
Specialization/New Talents and Skills
Enhanced Quality/ Effectiveness
Networked government benefits
Increased Reach and Choice
Innovation
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Speed Flexibility NASA and Getting a Man on
the Moon
NASAs Change in Employment Levels 1962-1969
Contractors does not include unknown of
rocket builders working under various contracts
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But It Isnt Easy to Get Right
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Disadvantages Of Networked Model
Inadequate Protection of Public Values
Choice and Competition Can Give Way to Private
Monopolization
Creaming Deprives Those Most in Need
Networked Government Problems
Poor Contractual Protection of Public and
Incorrect Quality Measures
Lack of Necessary Government Oversight Talent
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How the Network is Designed Can Mean the
Difference Between Failure and Success
VS.
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Another Challenge Tying the Network Together
How do you knit together disparate organizations
and discreet business practices into a
functioning network?
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Co-producing SafetyHandling Cultural
Differences Is Critical
Partnership with NY state division of Parole to
reduce the number of paroles sent back to prison.
Cultural differences caused constant tension but
were eventually worked out.
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Human Capital Capabilities Needed for Network
Management

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Managing the Tension b/w Accountability and
Flexibility
Accountability
Flexibility
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The Accountability Dilemma How Can You Get
Results with Only Limited Control?

• Example Explosion of the space shuttle
  Columbia.Who was responsible?

Columbia explodes during re-entry due to damage
done to left wing caused by broken foam
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Issue Preserving Democratic Accountability
During Transformation
Rule Enforcement
Value Referee
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Ingredients of Success

• Clear sense of public purpose and public value
• Clear existing benchmarks and agreed on future
  metrics
• Process for adaptation and change
• Contract management that looks to outcomes
• Leadership
• Separate buy or make

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Government Innovators Network
www.innovations.harvard.edu