Reinventing Government Euteneuer Herwig

Urban Geography, Sociology

and Governance

Urban Governance

Reinventing Government How the

entrepreneurial spirit is transforming

the public sector

written by David Osbourne and Ted Gaebler

Timo Euteneuer Kristina Herwig

Agenda

Reinventing Government

1. Introduction

The Authors

Classification of important terms

2. Presentation of the book

The main statement of the book

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Chapter 1 to 11

3. Critical reflection

Example 1 - National Partnership for Reinventing Government

Example 2 - Realisation of Public Private Partnership in Germany

Example 3 - Effect on employement Germany

Opinions of the book

Agenda

1. Introduction

The Authors





3


Chapter 1 to 11




Example 3 Effect on employement Germany


The authors


DAVID OSBORNE TED GAEBLER

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Former city manager of four cities in the USA

County Executive Officer for Nevada County, California

Currently City manager of Rancho Cordova, California

President of the Gaebler Group

Publisher of the book: Positive Outcomes: Raising the Bar on Government Reinvention

Author of five books and

contributor to The Washington Post, Governing and other publications

Consultant to prominent government leadersand candidates

Senior partner of The Public Strategies Group

Worked with governments large and small, from cities and counties to states, federalagencies, forgein governments and taught atYale University

1. Introduction 2. Presentation of the book 3. Critical reflection

Entrepreneurship

Capacity and willingness to undertake

conception, organization, and management of a

productive venture (...) In economics,

entrepreneurship is regarded as a factor of

Classification of import terms

Public Administration

Part of the executive power

(no legislative/judiciary)


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production together with land, labor, natural

resources, and capital.

Entrepreneurial spirit is characterized by

innovation and risk-taking, and an essential

component of a nation's ability to succeed in an

ever changing and more competitive global

marketplace.

Source: www.businessdictionary.com

Function: enforcement of law, plan and arrange

the community-live

- welfare

- health

- public transport

- defense

...

Source: Detterbeck, Steffen: ffentliches Recht. 85f.


Agenda

1. Introduction

The Authors




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Chapter 1 to 11





The current public administration is dramatically

slow, inefficient and expensive. To deal with the



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challenges of modern times, the public sector has to

be renewed.

The authors call for a Perestroika, carried by

entrepreneurial spirit.


Chapter 1 Catalytic Government: Steering Rather Than Rowing

The job of government is to steer, not to row the boat. Delivering services is

rowing, and government is not very good at rowing.

E.S. Savas


Ressources wasted by implementing laws and allocation of services

8 1. Introduction 2. Presentation of the book 3. Critical reflection

Decision-making (Management) and operational business should be seperated

Public Administration

- supply of capabilities

- definition of priorities

Business/ Third sector

- efficient, cheap, flexible organisation of products andservices

Public Administration smaller but stronger

Chapter 2 Community-Owned Government: Empowering Rather Than Serving

The older I get, the more convinced I am that to really work programs

have to beowned by the people they`re serving.

Geroge Latimer, Former Mayor of St. Paul


Beside the business, also the communities can provide better services.


Community care vs. professional services:

- more commitment to their members

- better understanding to their problems

- communities solve problems and offer care

- communities are more flexible and cheaper

Chapter 3 Competitive Government: Injecting Competition into Service Delivery


Monopolies avoid innovations.

-public and private services are more expensive and have worse quality under monopoly circumstances than in competitive environment

public administration should open the service markets


public administration should open the service markets

-National Comission for Employement Policy, Survey (1989)

- positive 82%, negative 18%. Savings: 15-30%

Privatisation has to be obsorved and regulated by public administration

Chapter 4 Mission-Driven Government: Transforming Rule-Driven Organizations


Assumption: Rules/regulations and the surveillance if they are followed causes moredamages/costs than they prevent.

Rule-Driven = Following rules within strict budget regulations


Mission-Driven = Definition of task. Flexible development of rules and budgetaccording to the mission.

- change in budget planning

- change in human resource management

- reduction of needless regulations

Chapter 5 Results-Oriented Government: Funding Outcomes, Not Inputs

The bureaucratic programs keep very little track of what actually happens to the

people they are serving.

Tom Fulton, President of the Minneapolis/St. Paul Family Housing Fund

Funding Inputs leads to wrong and poor incentives. Funding the Outcomes strengthen the perfomance!


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strengthen the perfomance!

To evaluate the outcome, measurement is needed.

- Example: Illinois Department of Public Aid


Chapter 6 Customer-Driven Government: Meeting the Needs of the Customer, Not the Bureaucracy

Quality is determined only by customers

David Couper, Chief of Police, Madison, Wisconsin

The chapter shows different ways to listen to the voice of the customer, e.g. surveys, interviews, suggestion boxes


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Putting customers in the drivers seat is important as customer-driven systems

stimulate more innovation

give people choices between different kinds of services

waste less, because they match supply to demand

empower customers to choices, and empowered customers are more committed customers


Chapter 7 Enterprising Government: Earning Rather Than Spending

The word profit is anathema to traditional governments.

(Page 198)

But governments should try to turn the profit motive to public use by


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But governments should try to turn the profit motive to public use by

raising money by charging fees

spending money to save money

turning managers into entrepreneurs

identifiying the true cost of service


Chapter 8 Anticipatory Government: Prevention Rather Than Cure

We must love our grandchildren more than we love ourselves.

Jim Dator, Univercity of Hawaii futurist

Prevention: Solving problems rather than delivering services with

Fire prevention

Health care


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Health care

Environmental protection

Governing with foresight: Anticipating the future with

Future commissions

Strategic planning

Changing the incentives


Chapter 9 Decentralized Government: From Hierarchy to Participation and Teamwork

There is nothing that can replace the special intelligence that a worker has

about the workplace. No matter how smart a boss is or how great a leader,

he/she will fails miserably in tapping the potential of employees by working

against employees instead of with them.

Ronald Contino, former deputy commissioner, NYC Sanitation Department


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Ronald Contino, former deputy commissioner, NYC Sanitation Department

Advantages of decentralized institutions:

more flexible, effecitve, innovative and generate higher morale, more commitment, and greater productivity

Decentralizing public organizations through participatory management by different techniques like e.g. employee evaluation of managers or reward programms


Chapter 10 Market-Oriented Government: Leveraging Change Through the Market

How governments are restructuring the marketplace:

Setting rules of the marketplace

Providing information to customers


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Providing information to customers

Creating or augmenting demand

Catalyzing private sector supplies

Creating market institutions to fill gaps in the market

Sharing the risk of expanding supply with the private sector


Chapter 11 Putting It All Together

To build entrepreneurial management into the existing public-service institution

may be the foremost political task of this generation.

Peter Drucker


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Vision and central challenge of our age:

We will not suffer the future. We will shape it.

We will not simply grow. We will manage our growth.

We will not passively experience change. We will make change.

But to shape our future, we need a new vision of government.


Agenda

1. Introduction

The Authors





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Chapter 1 to 11




Example 3 Effect on employement Germany




President Clinton and his vice president Al Gore created the National Partnership for Reinventing Government to reform the

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National Partnership for Reinventing Government to reform the way the federal government works

Their mission was to create a government that works better, costs less, and gets results Americans care about by putting customers first, empowering employees to allow them to put customers first, cutting the red tape that held back employees, and cutting back to basics.

David Osborne and Ted Gaebler served the programme as key advisors



The Hammer Award

Presented to teams of federal employees who have made

significant contributions in support of reinventing government


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principles

Al Gore answer to yesterdays government

From 1993 to 1999 more than 1.200 Hammer Awards have been presented to teams comprised of ferderal employees, state and local employees, and citizens who are working to build a better government

Savings of $ 37 billion



PPP is a part of the functional privatisation

Producing public goods and services

PPP vs. Outsourcing: Allocation of the whole net production chain instead of a partial transfer

Transfering of risks from the public sector to more efficient private enterprises blurring of boundaries and responsibilities


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The public sector can save costs and time through PPP-Projects

In GB: Private Finance Initiative (PFI) since 1992

In case of real estate and structural engineering: Planing, building, financing, management and refurnishment of public buildings (e.g. schools, administration buildings, prisions or army buildings)

Currently 208 PPP projects in Germany / 6 in Saxony

Change from contested concepts to prevalent practice

Compared to other real estate projects the risks of PPP-Projects are more complex due to the long-term contracts and particular structures



PPP are currently enjoying policy popularity on the global political stage, as well

as commercial attractiveness in the business sector. It is an attractive policy to


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as commercial attractiveness in the business sector. It is an attractive policy to

third way governments eager to please markets. But transaction costs are high,

competition is weak and value for money is debateable, despite being more

reliable in terms of on-time delivery of major projects.Hodge, Graeme / Greve, Carsten: The Challenge o Public-Private Partnerships. Learning from Unternational Experience, 2005, page 344.)



Contra PPP-Projects:

High financial costs

Not every project is suitable for PPP, actually PPP is only suitable for huge projects

Long-termed and confusing contracts

The public sector is often inexperiencend and unskilled


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The public sector is often inexperiencend and unskilled

Private company can become insolvent

Small opportunities for the public sector to navigate and controll the private company

The constructing time is shorter, but the time for preparation, planning and building permission islonger

Due to profit maximinization the architectural quality is being neglected


(Source: Bundesverband PPP, Pro und Conra PP, 2009)

Example 3 - Effect on employement - Germany


Effect on employement by rationalisation and privatisation in the public administration


Source: Brandt, Torsten, Thorsten Schulten, 2007: Auswirkungen von Privatisierung und Liberalisierung auf die Tarifpolitik in Deutschland Ein vergleichender berblick. Quelle: www.boeckler.de

negative effect on employement (-600 000) in the analysed sectors (Energy, Telecommunication, Transport, Health, Mail)

Should be read by every elected official in America. This book gives us the blueprint. Bill


Visionary (in its time)

Built on case studies of officials experiences


Our own opinion:What do others say about the book:

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America. This book gives us the blueprint. Bill Clinton

Offers both a vision and a road map how entrepreneurial government can work ... A lively, creative, and important book it will intrigue and enlighten anyone interested in government. The New York Times Book Review

Built on case studies of officials experiences

Written in an american prosa, not in an acadamically style

No negative examples

Relatively old (1992)

Poor german translation


Thank youThank you


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Thank you

for your attention!

Thank you

for your attention!

Reinventing Government Euteneuer Herwig

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