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
2
The main statement of the book
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
Classification of important terms
2. Presentation of the book
The main statement of the book
Reinventing Government
3
The main statement of the book
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
The authors
Reinventing Government
DAVID OSBORNE TED GAEBLER
4
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)
Reinventing Government
5
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.
1. Introduction 2. Presentation of the book 3. Critical reflection
Agenda
1. Introduction
The Authors
Classification of important terms
2. Presentation of the book
Reinventing Government
6
The main statement of the book
Chapter 1 to 11
3. Critical reflection
Opinions of the book
Example 1 - National Partnership for Reinventing Government
Example 2 - Realisation of Public Private Partnership in Germany
The current public administration is dramatically
slow, inefficient and expensive. To deal with the
The main statement of the book
Reinventing Government
7
challenges of modern times, the public sector has to
be renewed.
The authors call for a Perestroika, carried by
entrepreneurial spirit.
1. Introduction 2. Presentation of the book 3. Critical reflection
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
Reinventing Government
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
Reinventing Government
Beside the business, also the communities can provide better services.
9 1. Introduction 2. Presentation of the book 3. Critical reflection
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
Reinventing Government
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
10 1. Introduction 2. Presentation of the book 3. Critical reflection
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
Reinventing Government
Assumption: Rules/regulations and the surveillance if they are followed causes moredamages/costs than they prevent.
Rule-Driven = Following rules within strict budget regulations
11 1. Introduction 2. Presentation of the book 3. Critical reflection
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!
Reinventing Government
12
strengthen the perfomance!
To evaluate the outcome, measurement is needed.
- Example: Illinois Department of Public Aid
1. Introduction 2. Presentation of the book 3. Critical reflection
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
Reinventing Government
13
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
1. Introduction 2. Presentation of the book 3. Critical reflection
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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14
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
1. Introduction 2. Presentation of the book 3. Critical reflection
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
1. Introduction 2. Presentation of the book 3. Critical reflection
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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16
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
1. Introduction 2. Presentation of the book 3. Critical reflection
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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17
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
1. Introduction 2. Presentation of the book 3. Critical reflection
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
Reinventing Government
18
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.
1. Introduction 2. Presentation of the book 3. Critical reflection
Agenda
1. Introduction
The Authors
Classification of important terms
2. Presentation of the book
The main statement of the book
Reinventing Government
19
The main statement of the book
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
Example 1 - National Partnership for Reinventing Government
Reinventing Government
President Clinton and his vice president Al Gore created the National Partnership for Reinventing Government to reform the
20
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
1. Introduction 2. Presentation of the book 3. Critical reflection
Example 1 - National Partnership for Reinventing Government
The Hammer Award
Presented to teams of federal employees who have made
significant contributions in support of reinventing government
Reinventing Government
21
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
1. Introduction 2. Presentation of the book 3. Critical reflection
Example 2 - Realisation of Public Private Partnership in Germany
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
Reinventing Government
22
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
1. Introduction 2. Presentation of the book 3. Critical reflection
Example 2 - Realisation of Public Private Partnership in Germany
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
Reinventing Government
23
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.)
1. Introduction 2. Presentation of the book 3. Critical reflection
Example 2 - Realisation of Public Private Partnership in Germany
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
Reinventing Government
24
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
1. Introduction 2. Presentation of the book 3. Critical reflection
(Source: Bundesverband PPP, Pro und Conra PP, 2009)
Example 3 - Effect on employement - Germany
Reinventing Government
Effect on employement by rationalisation and privatisation in the public administration
25 1. Introduction 2. Presentation of the book 3. Critical reflection
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
Opinions of the book
Visionary (in its time)
Built on case studies of officials experiences
Reinventing Government
Our own opinion:What do others say about the book:
26
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
1. Introduction 2. Presentation of the book 3. Critical reflection
Thank youThank you
Reinventing Government
27
Thank you
for your attention!
Thank you
for your attention!
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