Desperately seeking Susan..?’ In search of innovation in the era of the New Public Governance

1. University of Edinburgh Business School Desperately seeking Susan..?’ In search of innovation in the era of the New Public Governance Professor Stephen P Osborne, Chair of International Public Management and Deputy Dean, University of Edinburgh Business School, Scotland

2. University of Edinburgh Business School This presentation • Genesis of the New Public Governance (NPG) • Key challenges of the NPG • Enabling innovation under conditions of the NPG • ‘The one-liner’

3. University of Edinburgh Business School I - Genesis of the NPG • Public Administration (PA) • The New Public Management (NPM) • The New Public Governance (NPG) • Not a linear history but a layering added complexities

4. University of Edinburgh Business School Public Administration • Focus on implementation of public policy and administration of law • Politics-administration dichotomy • Flawed in enactment • Public officials as self-serving elite and little genuine citizen engagement • Inefficient allocation of public resources

5. University of Edinburgh Business School New Public Management • Management of public services not administration of policy, with disaggregation of services to units/unit costs • Focus on efficient allocation of public resources and (variable) focus on markets and competition • Performance management and output control • Re-casting of citizens as customers • Draws upon managerial theory developed from experience of the manufacturing sector • A product-dominantandintra-organisationalbusiness logic

6. University of Edinburgh Business School But… • ‘The world has changed’ • Fragmented • No longer possible for one organisation to meet social/economic need in isolation • Current public management theory not ‘fit for purpose’ , if it ever was • Policy not service-user focus • Product not service orientation (outputs not processes) • Intra-organizational focus in a plural and pluralist world

7. University of Edinburgh Business School New Public Governance (Osborne 2006, 2010) • Acknowledges fragmentation of needs • Embraces plural and pluralist service delivery • Focus on inter-organisational relationships and service systems • From administration and management to negotiation and governance • Of needs, service delivery, and outcomes • Service users as co-producers • A different, service-dominant, business logic (Osborne et al 2013): beyond the ‘missing product’ of public services delivery

8. University of Edinburgh Business School Two caveats… • NPG is not a normative term but a descriptive and evaluative one • NPG does not replace the administrative or managerial imperatives of PA or NPM – it adds a new layer of complexity that conditions the other two

9. University of Edinburgh Business School II - Key challenges of delivering public services under conditions of the NPG • Beyond product-dominant to public service-dominant business logic • Beyond silo organisations and inter-organisational relations to public service systems • Beyond policy dominance to a user orientation

10. University of Edinburgh Business School A public service-dominant business logic (Osborne et al 2013) • Public service delivery is not a process of manufacture but of service realisation • Public services are not tangible goods: there is no ‘missing product’ but a process of service delivery • Public service delivery is about the transformation of (professional) knowledge to produce added value for end-users (Lusch & Vargo 2006) • You cannot separate production from consumption: all public services are co-produced by users and staff • The service system is the key unit of analysis

11. University of Edinburgh Business School The service system • Beyond inter-organisational working to service systems • Public policy creation is a pluralist process: negotiation between stakeholders • Public service delivery requires plural elements: public service organisations, staff, hard and soft technology, end-users, communities… • Not just inter-organisational working and networks but service systems • Moving from closed and natural systems to open systems • A process of negotiation and governance to produce public services

12. University of Edinburgh Business School Making a reality of ‘user orientation’: Co-production • ‘User orientation’ and co-production a long time goal of public policy • BUT • Seen as an add-on, under professional/political domination • The reality • (public) service-dominance logic identifies co-production as an inalienable element of service delivery: this way to ‘best practice’… • ‘The lunatics are taking over the (public policy) asylum…’ (Bekker et al 2011) • Towards consumer, participative and enhanced co-production (Osborne & Strokosch 2013)

13. University of Edinburgh Business School NPG: five implications for innovation I • From manufacturing design to process governance: from the ‘missing product’ to ‘realising the promise’ (Osborne et al 2013) • ‘Hard’ innovations can support public services but.. • Away from R&D and technocratic dominance • Meshing user expectations and experience to produce performance • From rivalrous competition to open (collaborative) innovation • Share risks, costs, knowledge - and benefits

14. University of Edinburgh Business School NPG: five implications for innovation II • Innovation is socially constructed within social systems (Osborne & Brown 2011) • What is acceptable? • ‘Pin down’ and biometric ID • Risk is (also) socially constructed (Brown & Osborne 2013) • From technocratic risk management to risk governance • Who are the stakeholders? • How much risk, for what benefit?

15. University of Edinburgh Business School NPG: five implications for innovation III • The user is at the centre of public service innovation(Osborne & Strokosch 2013, Radnor & Osborne 2013) • Co-production not an ‘add-on’ but the driver • ‘Sticky knowledge’ plus professional knowledge leads to innovation • From R & D and policy dominance to understanding the reality of co-production in service systems • Beyond the technocratic and political imperatives to innovation rooted in a public service-dominant logic

16. University of Edinburgh Business School The ‘one-liner’ for the NPG? • Service users (not technocrats, politicians or professionals) are at the heart of the public service system and drive public service innovation across that system • Their needs, their public services, their innovations, their outcomes