New directions for public management Prof. Stephen Osborne’s views on new directions for public management Public administration and governance network Scotland study visit 1/1/2017

New directions for public management Four keys points from Osborne Products vs services Service systems vs organisations Open systems based innovation vs closed organisational boundaries Risk negotiation vs minimisation / analysis

From outputs…. The standard input-activity-output factory model as depicted by OECD, 2009* *Measuring government activity

...to services The public service is predominantly about… services!

1. Services not outputs Nature of a service: 1. User is not a passive “client / customer” but inherently coproduces a process of interpersonal (face to face) interaction 2. Intangible services that require attention to delivery processes and relations with users, not just effective “technical” design 3. “Produsing” = Production and consumption NOT separate, discrete processes

2. Service systems vs organsiations Not just inter-organisational networks but also service users, families, other citizens, local communities, for profit, third sector, other stakeholders,…and hard plus soft technologies apparent from service blueprints = systems perspective Based on collaboration (not competition) and hence enduring relations as most valuable resource (relationship marketing) Mutual trust, respect and friendship that arises out of close interaction at the individual level (staff with policy makers, other PSO, users,…) is core

Sponsor needed to create space 3. Innovation from open systems perspective vs closed organisational boundary Top down innovation mainly focused on efficiency, bottom up on effectiveness Sponsor needed to create space Centrality of service user as prime source of innovation Working across horizontal networks

4. Risk negotiation vs minimisation / analysis Closed system with risk internal and entirely avoidable (using experts) Using inspection, audit, rules, performance management, targets = conceal errors as opposed to learning from them Analysis Limit consequences Linear and unidirectional (professionals analyse, spell out options, decide with poliy-makers, implement) Not able to handle conflicting views Negotiation Iterative interaction with range of stakeholders Recognise different (conflicting) trade-offs