Business Schools & Public Management: Creating Public Value for Economic and Social

Development

GBSN webinarOrganizers: Manuela Brusoni and Veronica VecchiGuest speakers: Elio Borgonovi and Luca Brusati

Agenda (veronica + manuela) – 5 min.• GBSN Working Group on Public management lead by SDA Bocconi

• Move to NEXT SLIDE

• Among this working group we are designed a series of webinars and today we start with:

• Prof. Borgonovi and Prof. Brusati will discuss the central role of Government and other public Institutions to create value for the societal development. They will explain why public management is a crucial topic for business school, expecially those working in developing countries. They will cover the following issues:

– Value creation– The evolution of Public management – The centrality Public Private Partnership in the current approach to

Public management as it will be shown by prof. Borgonovi– Finally, they will focus on the implication for management

education

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SDA Bocconi portfolio for public sector, healthcare and not for profit

Our view: relevance of public management to execute policy as a transmission belt between policies and street level -> see the following slide

Our interest for this topic is dated back in Seventies and rooted in Masini academic work. From then on Bocconi University has been developing a wide offer of Education and Research programs

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POLL

• WHEN BORGONOVI STARTS TO SPEAK, LISA AND PAGE HAVE TO LAUNCH THE POLL – 3 QUESTIONS

1. Have you experience with education programs for Governments?

2. In your experience, is there an explicit continuous learning demand in your Country?• Yes• It is weak• It is growing up• It is absent

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POLL

3. How is executive education for managers working within public sector in your Country?• Weak• Well structured offer of programs (master and

executive programs)• Absent• Need for innovation

CLOSE THE POLL AFTER 15 MINUTES

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Government or Governments? – 5 min. (Luca)

• PA is not a monolith – why it is relevant to be aware of that, especially in the management education field (BORGONOVI)

• Luca can show a slide with the most important form of authorities, providing some examples

• This overture could help our audience – because they come from different Countries with different Institutional framework

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Where does “public management” take place?

Core central administration Agencies

GOVERNMENT IS NOT A MONOLITH – BETTER TO TALK ABOUT GOVERNMENTS OR PUBLIC AUTHORITIES

Here Luca speaks

Value creation – some basics(Borgonovi + Luca) – 10 min

• Value creation for businesses and for public authorities

• How to create value?

• How to distribute value?

• How to communicate value?

• Accountability – not only transparency

• Value based pricing, value for taxes, value for money

• LUCA (a couple of min.): Some example (referred to economic and social development, agribusiness and entrepreneurship)

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Value creation… what, how, why?

Here Borgonovi speaks

Creating or destroying value?The example of customs management

Documents for export

(number)

Time for export (days)

Cost to export(USD /

container)

Documents for import (number)

Time for import (days)

Cost to import (USD /

container)

Singapore 4 5 456 4 3 439

United States 4 6 990 5 5 1245

Hong Kong, China 4 6 625 4 5 633

Thailand 4 14 625 3 13 795

Georgia 8 12 1380 7 14 1340

Azerbaijan 9 48 3075 14 56 3420

Kyrgyz Republic 13 64 3000 13 75 3250

Kazakhstan 11 89 3005 13 76 3055

Russian Federation 8 36 2150 13 36 2150

Morocco 7 14 700 10 18 1000

Uzbekistan 7 80 3100 11 104 4600

Tajikistan 10 82 3150 10 83 4550

Here Luca speaks

Evolution of public management (Borgonovi + Luca) – 10 min

• From Bureaucracy

• Passing through New public management (efficiency and lean delivery)

• To Network governance: public institutions are player within a wide system of relations and actors

• Therefore, decision making, execution and delivery models and measurement have changed.

– Decision making is often participatory (Luca’s example in a couple of minutes)

– Execution relies on Public Private Partnership – Measurement of public action has evolved to cover the following

items/phases: Input, Process, Output, Results and outcome

LUCA – 5 min.

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Form a public administration transition…..

Shift from “government” towards “governance”

Here Luca speaks

To a theoretical evolution

Therefore, decision making, execution and delivery models and measurement

have changed.

Here Borgonovi speaks

Public management:tentative definitions

• Goal-oriented configuration and steering of public sector organizations (or parts of them)

• The art and science of planning, steering, coordinating and controlling public sector organizations

• The management of societal resources to achieve results in the public interest

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The changing role of public managers (1)

• Stable environment, availability of resources emphasis on compliance– definition of “ideal” behavioural

patterns– tasks defined by procedural

responsibilities, not outcomes– checks on compliance between

procedures and actual behaviours rather than the satisfaction of needs

Here Luca speaks

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The changing role of public managers (2)

• Fiscal crises (1970s onwards) emphasis on efficiency (“NPM” / value for money)– rationalization– productivity– incentives / performance pay– cost accounting– contracting / outsourcing– indicators / targets– business process reengineering

Here Luca speaks

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The changing role of public managers (3)

• Environmental complexity / unpredictability emphasis on effectiveness– customer satisfaction– citizens’ rights– stakeholder engagement– fundraising– “triple bottom line” / corporate

social responsibility– diversity management

Here Luca speaks

This evolution requires NEW competences

Here Borgonovi speaks

Partnership and Business Government Relations (LUCA + Borgonovi) – 5 min

• Recall the network governance approach, here Borgonovi’s Diamond is presented to show the complexities of the system:

– Public authorities– Businesses– Not for profit– Banks – financial institutions– Citizens

• LUCA: Public Institutions should play as “director or coordinator” of the relations system, stimulating the other actors to converge towards shared goals of development. That process can take place at all institutional levels (macro, meso and micro); but the meso and micro levels play a key role, as they are in charge of the execution processes.

Some examples, mainly refereed to entrepreneurship and agribusiness

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Public – Private Partnership diadem

Here Borgonovi speaks

Governance in practice: overcapacity in the steel industry

Mill Capacity Funding requested for decommissioning

Funding granted for decommissioning Outcome

A 4,000 3 Million Euro 1,5 Million Euro Decommission

B 3,000 2 Million Euro 1 Million Euro Do not decommission

C 2,000 2 Million Euro 1 Million Euro Decommission

D 1,000 1 Million Euro 0,5 Million Euro Do not decommission

2 POLL

• As soon as we pass to discuss about EDUCATION a second POLL must be launched

• DO YOU HAVE ANY SUGGESTIONS FOR FURTHER WEBINARS?

– Public private partnership for infrastructure development

– How to implement local development policies – a public management approach: discussion of some experiences across the world

– Corporate Social Responsibility in management education

– Other: suggestions

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Implication for the management education – 15 min (BORGONOVI + LUCA)

• LUCA - Implications for management education: for programs devoted to private sector and for those devoted to the public

– To help to better know each other: mutual understanding and respect

– Some example: to know the policy making process is relevant for businesses and for the public sector is relevant to know, for example, the difficulties for companies of competing in an international arena (etc…)

• BORGONOVI - Messages: not adaptation of programs and competences but rethinking; skilled faculties on topics and learning methodologies

• Some example: what we did in SDA Bocconi since our begin (Borgonovi)• Some international examples (LUCA, Borgonovi can says that he is just

back from Vietnam where they are thinking about a program – what are their needs??)

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Implications for Education

Here Borgonovi speaks

Lessons from our experience….

Here Borgonovi speaks + LUCA adds