Public management in the twenty first century by Universitetsforlaget

Public Management in the Twenty-first Century offers a unique combination of state of the art theory and practice. In parts 1 and 2 the authors have a mostly theoretical approach. But in parts 2 to 5, trends and ideas of public management reforms in practice are validated by data from European Public Sector Award cases (2009 and 2011).

“Public reform is already a commodity after being repeated again and again during the last decades. What is needed is real change that fosters a new paradigm that can improve the future of democracy. A paradigm where politics and public management commit themselves to common goals to face the challenges of the XXI Century as this book shows without hesitation.” Jordi Joly i Lena, CEO for Economy, Business and Employment – City Council of Barcelona

ISBN 978-82-15-02199-7

788215 021997

Busch • Heichlinger • Johnsen • Klausen • Murdock • Vanebo (eds.)

The book consists of six parts: • Part 1: Public Sector in Transition • Part 2: Smart Public Service Delivery • Part 3: Collaborative Governance • Part 4: Going Green • Part 5: Leadership and Management Change • Part 6: Managing Change in the Public Sector

Public Management in the Twenty-first Century

What kind of ideas are behind the remodelling of the state and public sector, and how have these ideas materialized in practice? In this book the authors illustrate what are the driving forces behind the huge amount of public management reforms over the last three decades.

Tor Busch Alexander Heichlinger Erik Johnsen Kurt Klaudi Klausen Alex Murdock Jan Ole Vanebo (eds.)

Public Management in the Twenty-first Century –Trends, Ideas and Practices

Public Management in the Twenty-first Century

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Tor Busch, Alexander Heichlinger, Erik Johnsen, Kurt Klaudi Klausen, Alex Murdock, Jan Ole Vanebo

Public Management in the Twenty-first Century – Trends, Ideas and Practices

Universitetsforlaget

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ÂŠ Universitetsforlaget 2013 ISBN 978-82-15-02199-7 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise, without the prior permission of Universitetsforlaget. Enquiries should be sent to the Rights Department, Universitetsforlaget, Oslo, at the address below. www.universitetsforlaget.no

Universitetsforlaget AS P.O. Box 508 Sentrum NO-0105 Oslo Norway

Cover design: Sissel Tjernstad Prepress: Rusaanes Bokproduksjon AS Typeset: Minion Pro 10,7/14 Printed in Norway by 07 Media AS

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Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Introduction and Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 1: Public Sector in Transition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 2: Smart Public Service Delivery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 3: Collaborative Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The EPSA case studies (emerging best practices and conclusions) in Part 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 4: Going Green. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The EPSA case studies (emerging best practices and conclusions) in Part 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 5: Leadership and Management for Change. . . . . . . . . . . . . . . . . . . . . The EPSA case studies (emerging best practices and conclusions) in Part 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 6: Managing Change in the Public Sector. . . . . . . . . . . . . . . . . . . . . . .

17 18 20 22 23 23 24 25 25 26

Part 1 Public Sector in Transition Chapter 1 Institutional Reconstruction of the State and the Public Sector. . . . . . . . . . . Jan Ole Vanebo Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The state as an organization and institution. . . . . . . . . . . . . . . . . . . . . . . . . The welfare state in transition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fragmentation of the state. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Traditional and new architecture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trends and key messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Concluding comments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31 31 33 35 37 42 43 44

Chapter 2 Public Administration, New PA, NPM, NPG: What’s in a Name. . . . . . . . . . 46 Kurt Klaudi Klausen State or market? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 What’s in a name?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

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NPG: A new reform regime?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NPM: An umbrella concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Two pillars of NPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The next decade: Strategic management, communication management, and corporate management. . . . . . . . . . . . . . . . . . . . . . . . Chapter 3 New Trends in Public Leadership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tor Busch Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Network leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Value-based leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Political leadership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . New Public Management – utopia or reality?. . . . . . . . . . . . . . . . . . . . . . . . Chapter 4 New Public Organizations: A Revivalist Movement. . . . . . . . . . . . . . . . . . . . . Nils Brunsson Reform content: New public organizations. . . . . . . . . . . . . . . . . . . . . . . . . Explanation: an institutional shift . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Effects: Ideas, practice and reconstructive reforms. . . . . . . . . . . . . . . . . . . Continued reform: Maintaining hope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A revivalist movement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 5 Public Sector and the New («Old») Technology. . . . . . . . . . . . . . . . . . . . . . . . Alexander Heichlinger and Jan Ole Vanebo, European Institute of Public Administration (EIPA) Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ICT, NPM and innovation in the public sector . . . . . . . . . . . . . . . . . . . . . . The EU framework to boost IST (Information Society Technologies) in government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The EPSA as observatory for current (e-)trends and innovation areas . . Concluding reflections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Part 2 Smart Public Service Delivery Chapter 6 Smart Public Service Delivery in a Cold Economic Climate. . . . . . . . . . . . . . Michael Burnett and Tore Chr. Malterud Introduction and context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Theoretical perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current challenges and dilemmas in public sector budget and service reviews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Responses to current challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The case studies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Smart public service delivery in a cold economic climate: emerging best practice and conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 7 Stringent and Strategic Budgets – the Bilbao City Council. . . . . . . . . . . . . . . Alexander Heichlinger Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 8 Change2 – City of Mannheim: «Achieving More Together». . . . . . . . . . . . . . Tore Chr. Malterud, Julia Bosse and Alexander Heichlinger Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors, targets and aspects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Institutionalization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Chapter 9 Regional Platform of Shared Services e-Bourgogne. . . . . . . . . . . . . . . . . . . . . Patrick Ruestchmann and Sylvia Archmann Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This article takes a fresh view of this project and its findings after EPSA 2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 10 Ambient Assisted Living. How Fredericia Municipality Reinvented Itself and Became Innovative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kurt Klaudi Klausen The context and strategic challenge: Doing more with less. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The process and the priorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ambient assisted living. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 11 Effectiveness in Healthcare â&#x20AC;&#x201C; The Morgagni-Pierantoni Hospital. . . . . . . . . Alexander Heichlinger Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

122 122 122 126 126

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128 131 133 134

135 135 136 136 137 137 138 138 138 139

Part 3 Collaborative governance Chapter 12 Opening up the Public Sector through Collaborative Governance. . . . . . . . 143 Tore Chr. Malterud The role of the public sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Theoretical perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

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Collaborative governance as a new concept. . . . . . . . . . . . . . . . . . . . . . . . . The involvement staircase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Use of media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Criteria for evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusions and recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 13 Cologne Participatory Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tore Chr. Malterud Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors, interests and preferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Detailed description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusions and assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 14 Mijn Borne 2030 Joint Vision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tore Chr. Malterud Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors, interests and preferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation and organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusions and assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

144 146 146 147 148 150

152 152 152 153 154 154 155 155 156 157

158 158 159 159 160 161 161 162 162 163 163

Chapter 15 The Oldham Partnership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Alex Murdock Case issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Key facts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

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The background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Oldham response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Governance of the Partnership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Engagement of the private sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Themes and the importance of education. . . . . . . . . . . . . . . . . . . . . . . . . . . The success of the Oldham Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . The future and development of the Partnership. . . . . . . . . . . . . . . . . . . . . . Chapter 16 Civil Society Involvement in the Welcoming and Integration of Immigrants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tore Chr. Malterud Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overall objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors, interests and preferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusions and assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

165 166 167 168 168 168 169

171 171 172 173 174 175 175 175 175 176

Part 4 Going Green Chapter 17 Going Green: Theme Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Martin Unfried Context: Sustainable development and climate change . . . . . . . . . . . . . . . Latest developments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The meaning and objectives of Green Public Procurement (GPP) in the EU. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The EU Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . New rules on public procurement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Chapter 18 Green Public Procurement â&#x20AC;&#x201C; the Case of Ă&#x2013;koKauf (Eco-Buy) Vienna. . . . . Martin Unfried Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overall objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors and interests: ownership as a priority. . . . . . . . . . . . . . . . . . . . . . . . Information and public relations and the presentation of results. . . . . . . The provision of legal certainty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 19 Leadership for a Low Carbon Economy, Aberdeen . . . . . . . . . . . . . . . . . . . . . Alex Murdock Case issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Key facts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives in the wider context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Key actors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Strategies adopted and implemented. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 20 The Green Partnership Agreement, Trondheim. . . . . . . . . . . . . . . . . . . . . . . . Erlend Dehlin and Elin Rognes Solbu History. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors, interests and preferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation (plan). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results (observed and measures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusions and assessment (impact). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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198 198 198 198 199 199 200 200 201 201 202 203

204 204 205 206 206 208 208 209 210

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Part 5 Leadership and Management for Change Chapter 21 Leadership and Management for Change – Theme Presentation. . . . . . . . . . Jan Ole Vanebo and Alex Murdock The theme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Theoretical perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Institutional entrepreneurship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 22 The Lausanne Police: A Change in the Code of Ethics in the Police Force. . Stein Jonny Valstad and Rune Glomseth The challenge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The initiative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The outcome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . And it never ends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 23 Political Management and Leadership – the Sant Cugat City Hall. . . . . . . . . Alexander Heichlinger Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 24 From Bureaucracy to Service Provider – Danish Immigration Service . . . . Nikolaj Lubanski Need for change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives and key actors of the change project . . . . . . . . . . . . . . . . . . . . . How was the project implemented?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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221 222 222 223 224 225 228

229 229 230 230 231 231 232 232 233 234

235 236 237 238

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Innovation â&#x20AC;&#x201C; a cycle of improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Results â&#x20AC;&#x201C; a fast turnaround. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 Conclusions and assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 Chapter 25 Dalarna Case. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alex Murdock Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Key actors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

243 243 244 244 244 245 245 245 246 248

Part 6 Managing Change in the Public Sector Chapter 26 The Role of Public Sector Innovations in the Knowledge Economy . . . . . . . Hans Siggaard Jensen and Knut Ingar Westeren Different ways to understand the concept of innovation. . . . . . . . . . . . . . Using Schumpeter as a point of departure. . . . . . . . . . . . . . . . . . . . . . . . . . A closer look at innovation in service industries. . . . . . . . . . . . . . . . . . . . . Innovation in the public sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Can we find innovative elements in the coordination reform in Norway?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The coordination reform and the design of how municipal responsibility is supposed to be carried out for patients ready for discharge from hospitals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Acute medical 24-hour services in the municipalities . . . . . . . . . . . . . . . . Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

251 251 251 253 257 258

259 263 265

Chapter 27 From New Public Management to Professional Leadership. . . . . . . . . . . . . . 267 Erik Johnsen, Jon Aarum Andersen, and Jan Ole Vanebo Normative recipes on leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 Management, leadership and managerial behaviour. . . . . . . . . . . . . . . . . . 267

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Theoretical-analytical frame of reference. . . . . . . . . . . . . . . . . . . . . . . . . . . Managerial behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leadership awareness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The leadership environmentâ&#x20AC;&#x2122;s components. . . . . . . . . . . . . . . . . . . . . . . . . . Leadership process, leadership communication, and interactions. . . . . . Normative requirements for leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 28 Political Leadership â&#x20AC;&#x201C; Future Challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kurt Klaudi Klausen There is a need for political leadership and for the study of it . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . There is something rotten in the state of politics. . . . . . . . . . . . . . . . . . . . . The literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Political leadership in local government worldwide. . . . . . . . . . . . . . . . . . Crises of legitimacy in Danish local government . . . . . . . . . . . . . . . . . . . .

268 269 271 273 276 278

288

288 289 291 292 295

Presentation of Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 Literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 Web references . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316

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Foreword

As Director-General of the European Institute of Public Administration and one of the founders of the European Public Sector Award back in 2007, I take particular pleasure in writing this foreword. Since then, EIPA has been entrusted with the organisation and management of EPSA; both, the 2009 and 2011 editions were highly successful with some 600 cases being submitted in total. With Public Management in the 21st Century the authors shows how by comparing, analysing and putting in a theoretical context the EPSA cases can be taken one step further. As known Europe-wide by now, the EPSA brings together the best, most innovative and efficient performers from the European public sector. The vision of EPSA and EIPA is to create an arena in which Europe’s public sector institutions can excel and become exemplars for the rest of the world. Therefore, the objective of EPSA is to make this valuable experience transparent, available and usable. By addressing Europe’s most pressing concerns, EPSA contributes to the progress in public performance by highlighting excellent models of proactive public practice, whilst providing a platform for the public sector innovators behind these cases to exhibit their achievements. Since its creation in 2007, EPSA has acted as a driver for change in the way public services function in the 21st century, encouraging them to implement innovations and deliver quality. Due to its very nature, EIPA is in a privileged position to observe – through EPSA – the practical front of public administrations across Europe, since applications submitted so far have come from all administrative levels and from 36 European countries, as well as covering key sectors for innovation and modernisation such as general public reform, social welfare, health sector, education, environment, etc. This observatory stance allows us to state that there is a permanent need for innovation in the public sector; this is also a result of the pressures on public finances as currently being faced by public administrations across Europe, and which are severe though not unique. What is unprecedented in modern times is the number of European administrations simultaneously facing these pressures and the mutual obligation to stabilise public finances. In order to overcome this challenge, public administrations need to improve their performance whilst increasing efficiency and effectiveness; they also need to involve citizens in order to provide diverse responses to the growing complexity of social demands, to cope with the need for prioritised public investments and to deal with cuts in public services; and lastly

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they have to look for new forms of partnerships. In short, public administrations have to do more with less, be smarter and rethink the way they are operating while maintaining the core values of public service. Thus, the EPSA is more than (simply) an award scheme; its cases illustrate that to a great extent, public organisations incorporate multiple solutions and reforms in their daily operational practices. ./.. Thanks to EPSA, EIPA not only gathers best practice cases from across Europe, but also ensures their dissemination and undertakes EPSA transfer-knowledge activities in Europe and beyond. In doing so, it raises interest in successful cases that can either be replicated elsewhere once adapted to the local context, or which can be a source of inspiration for other public administrations facing the same challenges. This publication is an excellent example of this utilisation and I therefore congratulate the authors from the various European academic centres for this valuable work. Maastricht, June 2013 Prof. Dr Marga Prรถhl Director-General European Institute of Public Administration

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Introduction and Executive Summary

All governments are to varying degrees engaged in public sector modernization. It is no longer an option, but a necessity, if governments are to respond to changing societal needs and to maintain a competitive economy in an uncertain national environment.

This conclusion from an OECD-report (2005) has been an inspiration for this book, and driving research questions have been: What kind of ideas are behind the remodelling of the state and public sector, and how have (are?) these ideas materialized in practice? The ambition is to contribute answers to the recent debates in the field: – Why have public management reforms become such a prominent issue? – Which relevant models and methods have been influential? – How can these reforms be deliberate changes in structures, processes and incentives which improve efficiency, effectiveness and legitimacy in public organizations? The authors illustrate the forces which drive the huge number of public management reforms over the last three decades. The book consists of six parts: In Part 1, Public Sector in Transition, the authors take a theoretical approach to analyse the recent development in public management. In Parts 2 to 5, trends and ideas of public management reforms in practice are validated by data from European Public Sector Award cases (2009 and 2011) in four categories: Part 2 Part 3 Part 4 Part 5

Smart Public Service Delivery Collaborative Governance Going Green Leadership and Management for Change

Managing Change (Part 6) is high on the agenda for the public sector and the battlefield of crisis management and securing the welfare state at the same time. Innovation has become urgent (Chapter 26), and there should be more creative,

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professional leadership at all levels (Chapter 27); and last, but not least, political leadership to handle the future challenges (Chapter 28).

Part 1: Public Sector in Transition Chapter 1 Institutional Reconstruction of the State and the Public Sector (Jan Ole Vanebo) The need for reform and demands for change in the public sector can be seen as a consequence of what Jackson and Price (1994) call «public governance failure» – the «public sector failed to deliver public services efficiently and effectively». In the Status Report (2005), the OECD states that «All governments are to varying degrees engaged in public sector modernization. It is no longer an option, but a necessity, if governments are to respond to changing societal needs and to maintain a competitive economy in an uncertain national environment». Trends of public management reforms in practice can be validated by data from EPSA 2009 and EPSA 2011. EPSA 2009 selected four themes: performance improvement in public service delivery, citizen involvement, new forms of partnerships working, and leadership and management for change. Likewise, EPSA 2011 had three themes: smart public service delivery in a cold economic climate, opening up the public sector through collaborative governance, and going green: concrete solutions from the public sector. These eight themes can be narrowed down to five as a consequence of similarities. I

Performance improvement in (smart) public-service delivery (231 eligible applications for this category); II Citizen involvement (48 eligible applications); III Collaborative governance/new forms of partnerships working (196 eligible applications); IV Leadership and management for change (44 eligible applications); V Going green (56 eligible applications).

Chapter 2: From Public Administration over New PA to NPM (Kurt Klaudi Klausen) Ever since the Scottish economist and moral philosopher Adam Smith and the German economist and historian Karl Marx wrote their groundbreaking masterpieces – The Wealth of Nations (Smith 1776) and Das Kapital (Marx 1867) – scientists and politicians have debated the relative importance of the state and the market, with

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reference to these works and the ideas behind them. In transitioning between the twentieth and twenty-first century, this discussion has acquired a new dimension, a new life, and a new icon: New Public Management (NPM) is the icon of a neo-liberal reform wave, as a new dimension which recommends that governments learn from the private sector and introduce reforms which point in the direction of privatizing, outsourcing, and incorporating market-like mechanisms in the public sector, and as a dimension which works with organizational and management principles drawn from the private sector, including contract management. With its push for less state and more market, NPM seems to me to be and to remain a dominant reform regime for public reform initiatives well into the twenty-first century.

Chapter 3: New Trends in Public Management (Tor Busch) Over the last thirty years, New Public Management has contributed to major changes in the organization and control of the public sector. While many of the NPM-inspired changes have been institutionalized, it is increasingly obvious that NPM is limited in its ability to solve key challenges in the public sector. The purpose of this chapter is to discuss what kind of leadership challenges we may face in the aftermath of NPM. Based on current research, we argue that network leadership, value-based leadership, and political leadership are particularly important elements of those challenges.

Chapter 4: New Public Organizations: A Revivalist Movement (Nils Brunsson) In this chapter it is argued that the reform movement that has been called «new public management» was more radical than this name indicates. The movement represented a shift of institutions by which various parts of states became seen as separate organizations rather than subunits of a large state organization. This radical shift explains why it was easy to launch and defend the reforms and why they met little resistance. Like in other revivalist movements the reforms were driven by lofty ideals and great hopes. They created organizations that in turn offer a perfect context for the same kind of ideas and hope, making them highly reformist. The «new public organization» movement created a basis for continued reform, now within each organization.

Chapter 5: Public Sector and ICT/eGov: Latest Developments and Trends (Alex Heichlinger and Jan Ole Vanebo) Europe is an information society which largely depends on information and communication technologies (ICT). The effect of ICT is complex and touches on all aspects of life («pervasive technologies»). From a government perspective, an

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integrated, strategic and coherent approach for stimulating and facilitating the development and deployment of ICT for the common welfare is necessary. To this end, European public administrations have implemented deep reforms by using smart technology solutions to increase efficiency and effectiveness, reduce bureaucracy, simplify procedures, reallocate resources and increase overall quality of the public services provided.

Part 2: Smart Public Service Delivery Chapter 6: Smart Public Service Delivery – Theme Presentation (Tore Malterud and Michael Burnett) The pressures on public finances currently faced by public administrations across Europe are severe though not unique. For example, the United Kingdom in the 1970s, Ireland in the 1980s and Sweden (and Canada) in the 1990s, all faced very painful choices about stabilizing public finances. But what is unprecedented in modern times is the number of European public administrations simultaneously facing these pressures. Public administrations face formidable challenges in the current climate which, in practical terms, amount to consideration of questions such as: – Can they stabilize their finances while delivering the highest possible quality of public services? – Will this mean abandoning attempts to address diversity issues (plurality of staff and service access based on gender, race, age, disability, etc.), and failing to address the climate change agenda? – Can they also at the same time protect employment and promote employability? – How will their success be measured?

The EPSA – case studies (emerging best practices and conclusions) in Part 2

The distinguishing features of the cases which attracted the most favourable assessments in the EPSA 2011 evaluation process were: – The importance of political support for, and decision making in, budget and service reviews; – Securing the commitment of employees/service users to change processes; – The potential for cost savings through cooperation between public administrations;

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– The potential for the use of technology to significantly improve service delivery and/or reduce costs.

Chapter 7: Stringent and Strategic Budgets – Bilbao, Spain (Alex Heichlinger) This project, initiated by the Lord Mayor’s office in the city of Bilbao in Spain, was launched as a result of steadily increasing budgetary constraints from the 1990s onwards, aggravated by the global financial crises starting in the USA in 2008.

Chapter 8: Change² – City of Mannheim: «Achieving More Together» – Mannheim, Germany (Alex Heichlinger and Tore Malterud) A five year reform project was launched to stabilize the city of Mannheim’s finances, politically driven from the Mayor’s office but with support of other parties, to improve the delivery of public services using strategic and operational outcome-based targets, and to develop a better model of future planning.

Chapter 9: «Regional Platform of Shared Services – e-Bourgogne»– Dijon, France (Patrick Ruestchmann and Sylvia Archmann) The overall winner under Theme I in 2009 was the Regional platform of eServices for all: e-Bourgogne (FR) (www.e-bourgogne.fr) project, a single regional platform that offers municipalities and SMEs a unique web access to all public markets and public aid, saving public money and facilitating the purchase of quality products and services. The modernization of public administration has become a reference for France through the use of e-Bourgogne, involving the stakeholders from the public and private sector. One of the main leading edge aspects of this application was that it is not owned by any organization, but by the users. It is a fine example of innovative thinking, partnership, use of technology, improved public service delivery and efficiency (see more details in Chapter 9).

Chapter 10: «Ambient-assisted Living» – Fredericia, Denmark (Kurt Klaudi Klausen) This project by a Danish municipality aims to increase the self-esteem and self-reliance of citizens above 65 years old, by reinforcing their capability to perform unaided the most common and simple tasks (e.g. taking a bath, self-dressing, cooking, going shopping, etc.). By improving the self-sufficiency of the elderly, and involving them directly in their self-care, the project thus also helps to manage an increasingly high demand on public budgets.

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Chapter 11: «Effectiveness in Health Care – Digitization of Surgical Processes» – Forli, Italy (Alex Heichlinger) An Italian hospital achieved both service improvements and reduced costs in health care procedures based on re-engineered clinical procedures and improved information flows. It addresses an increasingly important area of financial pressure in the budgets of most European public administrations.

Part 3: Collaborative Governance Chapter 12: Collaborative Governance – Theme Presentation (Tore Malterud) Over time the public sector has undergone substantial changes in the way it functions, responding to changing trends and demands. At the same time the public sector has traditionally been characterized by hierarchical structures, governed by written and unwritten rules and norms – based on tradition, not needs or effectiveness (March and Olsen 1984). However, during the last 20–30 years, the concept of governance has been high on the agenda and can, in broad terms, be seen as the exercise of political authority and the use of institutional resources. The concept can be seen as a form of governing through networking and is therefore not so much who exercises power, i.e. the government, but the environment and the relations within which the power is executed. Therefore governance can be seen as a cluster of tasks which are all related to the environment surrounding the public sector. It is not merely sufficient to describe the tasks of the public sector alone but also how it operates and functions, or more widely, how it ought to operate, in relation to its environment (Kooiman 1993).

The EPSA case studies (emerging best practices and conclusions) in Part 3 Chapter 13: Cologne Participatory Budget, Germany (Tore Malterud) The intentions of the new «service for citizen participation» (which is an e-participation project) of the municipality of Cologne was to improve the quality of the different stages of the political decision-making processes.

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Chapter 14: Mijn Borne 2030 Joint Vision, the Netherlands (Tore Malterud) The medium-size Dutch municipality Borne is located in the eastern part of the Netherlands. The municipality contains three centres of population. The project presented in the EPSA competition has its roots in 2001 when a common vision for the future of the municipality was established by the Assembly. It became evident from the beginning that the involvement of the civil society would be a crucial part of the project. The municipality has joined forces with 20 different organizations.

Chapter 15: Oldham Local Strategic Partnership, UK (Alex Murdock) In order to solve growing social problems, the municipality of Oldham in the United Kingdom entered into a partnership between several statutory bodies, the third sector and representatives from the private sector. The cooperation went beyond their statutory (and traditional) ways of cooperation and the stakeholders entered into a strategic alliance, agreeing on a common goal and a combined use of tools.

Chapter 16: Civil Society Involvement, Integration of Immigrants in Portugal (Tore Malterud) The application to the 2011 EPSA Award was sent by the High Commission for Immigration and Intercultural Dialogue (ACIDI) in Portugal, and the project became the winner under Theme II. This public body, being responsible for implemention of the project on behalf of the Portuguese Government, played an initiating and coordinating role. The main purpose of the project is twofold, namely, to ease the integration of immigrants into the society and to foster cross-border dialogue and understanding between cultures.

Part 4: Going Green Chapter 17: Going Green – Theme Presentation (Martin Unfried) Warning about the environmental threat was expressed as long ago as in the ’60s. But the concept of «sustainable development» was launched and defined in 1987 by the Brundtland Commission (led by former Norwegian prime minister Gro Harlem Brundtland). It postulates a development that «meets the needs of the present without compromising the needs of future generations to meet their own needs» (United Nations 1987). The last report from the UN’s environmental programme shows that the environmental situation has not improved since the publishing of

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the Brundtland report, and the present environmental challenges are more critical and complex than 25 years ago (United Nations 2007). Urgent need for actions is underlined.

The EPSA case studies (emerging best practices and conclusions) in Part 4 Chapter 18: City of Vienna – Ökokauf Wien (Green Public Procurement) (Martin Unfried) «ÖkoKauf Wien» is a cross-departmental programme attached to the Executive Group for Construction and Technology of the City of Vienna. The aim of the «ÖkoKauf Wien» programme is to enhance the environmental compatibility of the city’s procurement system in line with the principles of climate protection and EU procurement regulations.

Chapter 19: Leadership for a Low-carbon Economy – Aberdeen (Alex Murdock) A Step Change – Aberdeen City Council’s Leadership for a Low-Carbon Economy – Aberdeen City Council. The challenges of a low-carbon economy are economic, environmental and social. This is true for Aberdeen, the UK’s northernmost city. Aberdeen is an internationally significant city renowned as an energy hub for the past 30 years. Moving towards a low-carbon economy has been Aberdeen City Council’s aim for more than 12 years.

Chapter 20: The Green Partnership Agreement – Trondheim, Norway (Erlend Dehlin, Elin Rognes Solbu) «The Green Partnership Agreement» for protecting the Environment (Miljøpakken) is a major ingredient in the Municipality of Trondheim’s framework for «going green». The planning of this package has involved a complex mixture of administrative and political processes. The main objective of «The Green Partnership Agreement» is to combat GHG emissions and climate change in transport.

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Part 5: Leadership and Management for Change Chapter 21: Leadership and Management for Change – Theme Presentation (Jan Ole Vanebo and Alex Murdock) In order to create more efficient, effective and citizen-friendly public organizations, the focus in the last three decades has been on public sector reforms. In recent years the main questions asked are: how can these reforms be delivered successfully and how can the changes be made to last? One of the answers has been to focus on the quality of the management of change and of leaders of the organizations (Rude & Kuperus 2010).

The EPSA case studies (emerging best practices and conclusions) in Part 5 The proven (and measured) results of these four nominees and «best practice» cases were changed behaviour, improved performance and image outside the organization (Rude & Kuperus 2010).

Chapter 22: Lausanne Police, Switzerland (Rune Glomseth and Stein Jonny Valstad) Organizational and cultural change in the Swiss local police force in Lausanne took place after a growing number of complaints from the public and staff resignations. Both management and employees worked together to change the organization’s culture, e.g. limiting the code of silence and questioning the traditional modes of management and leadership (e.g. purely hierarchial command); and strongly emphasizing ethical values. The approach is adaptable to other organizations that deal with such socially sensitive areas in addition to the police, such as healthcare and social services.

Chapter 23: Sant Cugat, Spain (Alex Heichlinger) In this Spanish municipality, the public administration’s traditional expenses culture, where budgets are to be spent, was changed into a cost culture which is based on the continuing optimization of economic resources by introducing a contract between politicians and top public managers (PACTE). In the contract they agree on long term vision and short term actions. This change in management and political culture resulted not only in a more efficient public organization, but led to both the politicians and public managers thinking in the same direction and having the same values, therefore making better policies.

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ďťżIntroduction and Executive Summary

Chapter 24: Danish Immigration Service (Nikolaj Lubanski) Danish Immigration has been transformed from an institution with a very bad public reputation to a customer-oriented organization which is able to adapt to the new migration challenges in Denmark. A documented result is significant reduction in service delivery times in a politically very sensitive area (i.e. processing time for asylum seekers), through technological innovation supported by process analysis based on lean principles. By increasing resources only marginally, and undertaking a significant reorganization of workflows and procedures, it was possible to handle demand peaks satisfactorily and is likely to lead to sustainable efficiency gains.

Chapter 25: Move to Dalarna, Sweden (Alex Murdock) Move to Dalarna (Flytta till Dalarna) is a highly innovative project. The whole project is based on research and background facts, while at the same time being carefully measured and the results followed up. Apart from the tangible figures, the project has resulted in raising the importance of inward migration to the regional agenda. This has led to broad political support and an engagement among the general public. This has given Dalarna many good ambassadors among the citizens. The cooperation between stakeholders in the region created by Flytta till Dalarna has resulted in more efficient work focused on the needs of the inward migrant. This cooperation and networking has influenced other areas of interest and thus benefited the region in many ways.

Part 6: Managing Change in the Public Sector Chapter 26: The Role of Public Sector Innovations in the Knowledge Economy (Hans Siggaard Jensen/Knut Ingar Westeren) In the last twenty years the use of the concept of innovation has increased substantially; this applies both as a part of the economic and political debate about what is happening in society, and as a part of a theoretical discussion mainly in the academic world. There has also been a discussion between academics and in scientific journals about how to define the concept of innovation and to which degree it is possible to measure innovation.

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Chapter 27: From New Public Management to Professional Management (Erik Johnsen, Jon Aarum Andersen and Jan Ole Vanebo) In all three Scandinavian countries, policy documents have been developed to strengthen leadership practices in the public sector. The documents especially pertain to how the public sector should or ought to be managed, and therefore these documents emerge as the ideal recipes or models for leaders in the public sector. Moreover, these documents contain, to a greater or lesser extent, definitions of what constitutes public entities, especially in contrast to private companies and the management of them. The proposed purpose for the field of public management studies has been ÂŤto develop an understanding of how public, primarily governmental, organizations may accomplish the missions charged to themÂť (Perry and Kraemeer 1983: xi).

Chapter 28: Political Leadership â&#x20AC;&#x201C; Future Challenges (Kurt Klaudi Klausen) In this chapter we will shed light on the critically important but remarkably little studied phenomenon of political leadership, by presenting research on local and regional political leadership in Denmark, that focuses on the crucial relationship between elected politicians and appointed CEOs and points at future challenges not only for political leadership at the local level but also for research on political leadership. With the development of challenges to the public sector in the foreseeable future caused by, e.g. social, demographic and economic developments, by globalization, digitalization and the like, there is no doubt that we will be forced to rethink what the public sector can and should do, and notably how. Such developments call for radical welfare innovation including the reinvention of political leadership.

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ďťż

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Introduction and Executive Summary

Part 1

Public Sector in Transition

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Chapter 1 Institutional Reconstruction of the State and the Public Sector

Chapter 1

Institutional Reconstruction of the State and the Public Sector Jan Ole Vanebo

Introduction Thirty years ago the welfare state ran into serious trouble, and an emerging ambition was to refurbish or replace what was seen as an outdated set of institutions in the public sector. Management consultants and the state apparatus came together in generating positive vibrations about new public management reforms (NPM). NPM became a normative, disseminating recipe for improved governance in the public sector. Academics were resistant to these ideas, fearing that the ideals of the commercial and economic realm were intruding into the complex domain of government and putting the public interest at risk. But practitioners in many countries began experimenting with the new approaches to public management. The impetus for change did not come from new ideas about public management (OECD 2005), but from the political, social, technological, and economic developments that unfolded in the latter half of the twentieth century. These developments pressured all governments in every part of the world to adapt to new problems, new capacities, and new relations between citizens and governments. In short, it was essential to bring in new approaches to public management. Even more important was incorporating them within the core institutions and values that form the governance architecture. With institutional reconstruction as a metaphor, and by drawing on Finger (2008), we shall take a closer look at the challenges and consequences the state as an organization and institution has confronted during the past forty years.

Public governance failure The need for reform and demands for change can be seen as a consequence of what Jackson and Price (1994) call «public governance failure» – the «public sector has

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failed to deliver public services efficiently and effectively». With rising stagflation that marked the economic turmoil of the 1970s, the credibility of Keynesian economic policies was lost in the eyes of some, and there was a breakdown in the thirty-year-long consensus around the merits of social democratic Keynesian policies, which prescribed a strong social and economic role for the state. The corresponding reforms took their theoretical inspirations from economic theory, particularly financial organization and decision theory: «Public Choice theory», «principal–agent theory», and «transaction-cost theory». The scepticism that some modern economists held towards the welfare society was inspired by Public Choice theory, which assumes that self-interested bureaucrats are not necessarily motivated to implement policies which from a more academic point of view appear to be in the public interests. Reforms and new patterns of organization and leadership, or what Professor Christopher Hood (1991) called «New Public Management», became the solution to the previously mentioned problem. Public Choice theory’s most important contribution to New Public Management is its focus on the fact that opportunistic behaviour can occur in the public sector, potentially resulting in overproduction or low productivity. Avoiding this problem necessitated internal control and incentive systems that reduce the possibility of opportunistic behaviour. Institutional rebuilding and the pursuit of effective governance is nothing new. To be sure, Hood (1998) argues that when everything is said and done, the discussion on «good governance» has in the course of the last two thousand years focused on the extent to which it is possible or desirable to work through «rule and rote» and «government of laws and not men», as opposed to «enlightened discretion or caseby-case bargaining». The tension lurks between limiting the public sector, including those who are leading it, through «strict regulatory rules», versus the opposite doctrine, whereby managers should be «free to manage» and be assessed based on results rather than processes. Institutional rebuilding is a metaphor for the wave of modernization reforms that have swept through the public sector during the last thirty years. «Public management reform» means deliberate changes in structure and processes to make public organizations (in some ways) function better (Pollitt and Bouckaert 2004). More recently, the push for NPM reforms has to a certain extent stalled and is no longer as strong it was previously. And while NPM is still of vital importance in many countries, it now exists alongside new reforms and developments that go beyond NPM (Christensen and Lægreid 2010). These are widely referred to as «whole of government» (WoG), «joined-up government» (JUG), or more broadly «post-NPM».

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The state as an organization and institution As mentioned at the outset, this chapter examines recent historical challenges to the state, and the consequences of those challenges. These challenges are depicted in Figure 1.1 (revised version of Finger, 2008) to which we now turn our attention. Globalization

Rule-making Parliament

Regulation

Government ICT

Judiciary

Parties

Environment

Administration Citizens as individuals

Service delivery

Individualization-entitlements

Figure 1.1 The state as organization and institution

Government consists of the political and administrative institution’s formal structure and legitimacy, i.e. the traditional hierarchical management and organizational structures that ensure political and democratic governance and transparency in public administration (Sand, 2004). As illustrated in Figure 1.1, which shows the state’s institutional elements, the parliamentary chain of governance is traced from citizens and voters through parties via democratic elections, the legislative assembly, government, public administration, and back to citizens and voters again. The figure also demonstrates that the state and the public sector have three important purposes and must fulfil the following core functions: – Legislation and policies for key policy areas (finance, redistribution, environment, education, health, etc.) – Regulation and governance (internal and external security) – Providing services (health, education, infrastructure, etc.)

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Over time there have been changes within society and the state, creating new social conditions for how the public sector can operate and thus how it can be controlled and managed (Sand 2004: 64–76). Recalling Figure 1.1, in «the late-modern society», we have been confronted with three social revolutions: globalization, our relationship with nature (milieu, biodiversity, and climate), and individualization and changes in family structures (Giddens 1998, 2001). In his book entitled The Third Way (1998), Anthony Giddens elaborates on how these pervasive revolutions create fundamental dilemmas and major political issues that politicians have to deal with today and in the future. We draw on Giddens by introducing the concept of the late-modern communication society, and we supplement this with two additional revolutionary trends which are much discussed:

ICT (information and communication technology) and the social media revolution created from today’s dynamic media society and what Østerud and the Power Examination (NOU 2003: 19) call the edited public.

In addition to globalization, neo-liberal policies and new theoretical insights into government regulation and governance have been driving forces and justifications for modernization programmes in the public sector. These modernization programmes have resulted in radical changes in the traditional institutional model depicted in Figure 1.1. Correspondingly, the relationship between the three key societal institutions – namely, the government (public sector), the market, and civil society – has been subject to modification. In tandem with this, there have also been radical changes in the relationship between these institutions and individuals in the society. Public governance has changed considerably, from direct provision of services, to services provided through a regulated market. An increasing degree of autonomy has been assigned to government agencies and service organizations. What we describe as public administration or the public sector, today consists of several layers of different types of activities: political, legal, administrative, financial, knowledge-based, and service-producing. The conglomerate of organizations that performs these activities has an assortment of mutual relations and interacts extensively with various external organizations. This differentiation and complexity sets significant limits on what can be achieved through hierarchical control. Not surprisingly therefore, the new governance paradigm involves deregulation, greater reliance on network governance, and the use of market-like organizational and leadership principles. The OECD (2005) has pointed to six key policy levers for reforming public management in the course of modernizing government and altering institutions:

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– Open government. Across OECD member countries, governments are becoming more open and more transparent, accessible, and consultative. – Enhancing public-sector performance. Governments have become more performance focused. – Modernizing accountability and control. The main trends across OECD member countries consist of moving from ex-ante to ex-post control, and of stronger processes of internal control. – Reallocation and restructuring. National budgeting has become the primary vehicle for strategic management. – The use of market-type mechanisms has become more common. But protecting key governance principles is still important, including preserving the line between private gains and public interests and maintaining public responsibility and accountability. – Modernizing public employment. In many countries, by altering the legal status and employment conditions, the employment arrangements of public servants have become more like those found in the private sector. The various aforementioned policy levers of public administration are not of equal importance. According to the OECD (ibid.), there is a hierarchy of values between the day-to-day activities of government and the shared values that underpin constitutions and keep societies together in the long run. Legitimate government is ultimately significant for maintaining and building trust in public institutions. Responsible government is also of vital importance for taking care of the collective interest. Finally, government must be responsive to and faithfully execute policies that meet the needs of its citizens. If the legitimacy of the institutions of government is damaged, society’s ability to function is permanently impaired.

The welfare state in transition According to Ringen (1987), the welfare state is a political experiment, and the concept includes a set of policies that ensure economic and social security for its citizens. Rather than relying exclusively on the self-regulating invisible hand of the market, centralized planning is used for coordinating economic activities, and extensive use of authority regulates the markets and the redistribution of income. Ringen (ibid.) believed that in the 1980s, the welfare state was confronted with four serious problems related to legitimacy, governability, economic efficiency, and scope of activity. The argument was that the welfare state had been taken farther than what was acceptable to the majority of the population. Stated plainly, people

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wanted the benefits of the welfare state, but hesitated to pay the bills associated with them. Indeed, the welfare state grew into a rather large machine and took on more social obligations than it could manage. According to O’Connor (1973), the need for government support for advanced capitalism tended to surpass a tax level that the population would accept or the economy could support, resulting in a government funding crisis. There is a statutory relationship between public expenditures and public revenues (taxes), and the need for taking up loans. Budget deficits must be financed by loans, and deficit financing is faced with problems in the long run. In his opening address, entitled the «Welfare State in Crisis», at a 1981 OECD meeting in Paris, the Secretary General of the OECD, van Lennep, formulated the following general programme for the 1980s: [...] new relationships between action by the state and private action must be sought; new agents for welfare and well-being developed; the responsibilities of individuals for themselves and others reinforced. It is in this sense that the emergence of the Welfare Society is both inevitable and desirable (van Lennep 1981: 12).

Policies that create social safety nets can undermine individuality. Instead of encouraging «self-reliance» and initiative, the welfare state can cause dependency and inactivity among citizens, thereby reducing their participation in work and community life as they become support-dependent clients. Liberal-oriented economists argued that the welfare state destroyed incentive systems: Unemployment insurance destroyed the incentive to search for work. Rent subsidies destroyed the housing market. High tax rates, which were necessary to finance public activity, created disincentives and greatly impacted the saving and supply side of the economy. Reduced access to labour and capital seemed to limit economic growth and thus the ability to finance the welfare state. In many countries, public deficits grew during the stagflation years and provided an impetus for reform. In response to these disincentives, the developments that have unfolded over the last thirty years can be described as a transition from the welfare state to welfare society, where greater focus is placed on individual freedom and individual responsibility. Professor Werner Jahn at Potsdam University in Berlin describes this as the transition from «hammock-society» to «trampoline-society».

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Fragmentation of the state Modernization reforms inspired by New Public Management (NPM) have long ago pushed the limits set by the hierarchical and representative form of governance, and have instead created a more fragmented state (Sand 2004) – i.e. one that is broken up into a complex decision-making system with fuzzy boundaries between levels and leadership principles. Oversight becomes poor, equal treatment is difficult to implement, and the ability to coordinate is undermined (Tranøy and Østerud 2004). The boundaries between the state, the market, and civil society are erased. Moreover, knowledge and technologies have become increasingly specialized in their various fields and increasingly set the standards of how businesses in both the public and private sectors are led. This has also been significantly impacted by international factors. In the knowledge society, we often talk about reflexive knowledge, where there is a multiplicity of issues and competitive responses. Reflexivity means that all knowledge is challenged when new information is available and raises critical questions towards the prevailing paradigms and institutional systems. In knowledge society, professional power and user orientation have contributed to wider demands on academics and the substantive aspects of public administration, and has also contributed to providing professions and users with more power and influence. In light of this fragmentation, Giddens (2000: 51) argues that «government, the economy and the communities of civil societies [the three arenas of power] all need to be constrained in the interests of social solidarity and social justice». Stated differently, it is necessary to have a balance between the three dominant institutions in society: the state, the market, and civil society. A democratic order, as well as an efficient market economy, depends on a thriving civil society. Civil society in turn must be restricted by the other two arenas. According to Luhmann (1982) we live in a polycentric society, i.e. one characterized by the existence of a plurality of power centres. Inger Johanne Sand (2004) describes Luhmann’s sociological and universal theory of society as being functionally differentiated. The approach builds on seeing society as containing different functional and social systems, such as economics, politics, law, science, religion, etc., that operate without any unifying centre or hierarchical structure. The various systems are communicative and interact via cognitive functions in different social processes. Modern society lacks the centre that is the condition for unity, and politics and economics can no longer be combined into one unit. It is rather a question of interaction, interdependence, and the structural links between them. With this in mind, we can see that the institutional elements depicted in Figure 1.1 are still the same but have changed in scope. A prevailing trend is that large supply businesses (energy, postal services, and telecommunications), which traditionally were public monopolies, are increasingly being converted into transnational com-

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panies. Everything that is mobile and profitable is being globalized. The state has reacted to globalization by increasing the scope of market regulation and supervision. At the same time, there has been a reduction in other public services, which are increasingly being offered to the public by participants in the private market. The synthesis of this institutional reconstruction, in other words, results in a reduction of the service delivery function and increased emphasis on the regulatory function.

Globalization, the state, the market, and civil society Globalization in a broader sense is not just about economic processes. Instead, it is a collective term used for capturing the realities of increasing contact across borders and the corresponding exchange of ideas, knowledge, and culture. And, as this section shows, one consequence of globalization is the weakened capacity and authority of the national state and national culture. In the economic sphere, globalization represents the increasing integration of the world economy, which unfolds through compounded streams of trade, capital, technology, and information across borders. ICT in general and the internet in particular have, in a revolutionary way, challenged the boundaries of the nation-state. One impetus for this occurred during the 1980s, when capital markets, e.g. stocks and bonds, were deregulated, thus contributing to a massive reconfiguration of the international economic system. Moreover, there has been an increased integration of markets for products, services, labour, and capital across countries. Amid these processes, the national state has been weakened by a shift in power relations between key actors, which has tended to favour the influence of international companies, capital owners, and supranational bodies. New institutions, new institutional requirements, and new rules emerged, which create new frameworks for public-sector leadership. Globalization, international integration, and the growing importance of transnational institutions like the EU and the WTO contribute to reducing the political authority of the state in each country. The national stateâ&#x20AC;&#x2122;s leadership capacity has been reduced as a result of these developments. The result is what is called the fragmented state, where the stateâ&#x20AC;&#x2122;s capacity for action and governance is reduced, although it still remains a fundamental institution. Finally, globalization processes greatly shape national cultures and civil societies. New communication technologies and new social media today give us access to large amounts of information, knowledge, and entertainment. They create new opportunities for communicating across cultural and national boundaries, thereby providing a channel for the diffusion of values, norms, and ideas, some of which may be challenging to the national state and the prevailing national culture.

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Environment, biodiversity, and climate Warnings about a possible global catastrophe were first expressed in the 1960s, and this too has implications for the national state. Some claimed that the world’s resources were being consumed at a frightening pace, while the impact was devastating to the ecological balance on which the environment hinges. In response, the term «sustainable development», or «the capability of the current generation to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs», was launched in 1987 by the Brundtland Commission, led by Norway’s Gro Harlem Brundtland. Since then, sustainable development has been the key concept for describing the challenges to and concerns about the global environment. Despite the realization of the environmental challenges we face, the latest report from the UN Environment Programme (UNEP) shows that environmental conditions have not been improved in essential respects since the Brundtland Commission’s report, which is now some twenty-five years old. Most notably, more than two million people die every year due to air pollution, and about sixty percent of the world’s ecosystem is being degraded in an unsustainable manner. The report demonstrates that environmental challenges are more critical and complex today than twenty-five years ago, and the need to act is more acute. According to the Stern report (2007), economic analysis shows that it is cheaper to prevent and invest in environmental measures now than to let development continue at the same pace. Similarly, the Sukhdev report (2007) shows that long-term economic growth worldwide depends on preserving nature’s diversity. The report also states that it is the poor who lose the most when biodiversity is shrinking, declaring that we have still not been able to evaluate the real value of nature, and this is the reason why we destroy species and entire ecosystems at a furious rate. The December 2010 Climate Conference in Cancun resulted in a compromise agreement which covers key negotiating areas. The Cancun agreement is considered to be a basis for continued work towards a binding climate agreement that includes all countries.

ICT, the media, and the edited public New technology and new social media have had radical consequences for public debates and everything that is directed by the state and the public sector. Sharper competition and new forms of ownership have revolutionized media content and form, and has hastened the dissemination of information. The Power Examination (ibid.) points out that the media have become more important in the coronation and dethroning of leaders generally, including political ones. An edited public, or media’s social construction of the public, requires politicians and other actors to adapt to

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a journalistic form and utilize media characteristics when seeking to influence. The media have become more personality focused, intimidating and persistently critical towards political and private actors. The consequences are a greater focus on strategic communication and a strong expansion of the communications industry. Communication consultants are hired in crisis situations, as well as being hired to contribute to preventive reputation management. ICT has revolutionized the interaction between citizens, government agencies, and clients and users of public services. According to Homburg (2007), e-government is a relatively new phenomenon that involves the strategic use of ICT (especially internet technologies, but also other types of ICT applications) in relation to public administration. The purpose of e-government is to create a politically controlled public administration and service production that is more focused on and responsive to community needs by providing services twenty-four hours a day, seven days a week. The intention and ambition is that the application of new information and communication technologies will make public management, administration, and service production more efficient and democratic. According to Chadwick and May (2003), e-government is not a matter of understanding the technology, but rather focusing on the democratic consequences of the use of ICT-technology. Chadwick and May (ibid.) also identify three models of interaction between government and citizens, each with its own normative frame of reference: one managerial, one consultative, and one participatory. In the managerial model, the main focus is on administrative reforms, with the objective of fast, efficient, and user-oriented service delivery to the citizens. This is denoted as the NPM approach. In the consultative model, the technology looks to facilitate the citizens’ ability to communicate their opinions to politicians and policymakers. In the participatory model, citizens have the opportunity to participate in the political process through active involvement in problem definition, problem solving, and policy making. In this model, «interaction is regarded as constitutive democracy itself». The report from EPSA 2009 (European Public Sector Award 2009) (Pröhl and Heichlinger 2009) seems to show clearly that ICT is an important instrument when it comes to improvements in public service production. The main focus of the EPSA 2009 competition was administrative capacity building and reduction of administrative burdens and red tape for citizens and businesses.

Individualization, entitlements and user focus Anthony Giddens argues that neither the left nor the right side of politics has the solution to the major challenges of the late-modern society. The neo-liberal ideology, with its belief in the free market, has, according to Giddens, a negative

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and pessimistic view of the state in general and the welfare state in particular. For Giddens, socialism is strongly related to liberation from suffering and the right to equal opportunities. He presents a third way, which is constructed between the two political ideologies that have dominated the post-war period – namely, socialism and neo-liberalism. He argues for «a politics of life-changes» that makes it possible to capture an individual’s modern life-projects with personality and identity building, and manage institutional tensions that individuals experience today. An individual’s identity work is shaped by four institutions, namely work, family, gender, and generation, and the connections between these must be understood. Together they constitute a diamond that Giddens refers to as a «decision matrix», within which late-modern individuals meet and conduct themselves. The four social institutions represented by the diamond are clearly linked to the late-modern social identity. Many countries, for example, have ageing populations, and questions and issues arise about how these communities shall finance and pay for the elderly. Focus is likewise set on caring for the elderly. However, even more important are the sociological concepts of age as social constructions that «have to some extent permeated large sectors of society», which now question the traditional notions of what it means to be young, adult, and old. Moreover, important issues about gender and sexuality are at the centre of the social debate, as traditional norms of sexual expression and sexual identity are increasingly challenged in the public sphere. For Giddens, as social identities are transformed, «life politics» in the late-modern society must also transform. He leans on the German sociologist Ulrich Beck’s observation that the new individualism is not individualism in a liberal, market economic sense. On the contrary, it means institutionalized individualism. For example, most rights and legitimate claims in the welfare state are designed for individuals rather than for families. And in many cases, these claims are based on work. Work on the other hand requires education, and both are subject to mobility. Through these requirements, people are invited to constitute (shape) themselves – that is to plan, understand, and design themselves as individuals. The Power Examination (2003) demonstrated a clear development of rights. From the 1990s, a number of laws were passed in Norway that secured the rights to health services, welfare, and education, while gender equality rights and rights for cultural minorities were expanded. A host of the general welfare rights were to be implemented at the municipal level, and this limits the scope for local self-government. At the same time, these rights add to already overburdened municipal budgets, and not all legitimate claims can be fully satisfied at the same time. In this way, new and unintended forms of inequality were formed out of unequal opportunities to promote one’s case through mass media and the legal system. As a consequence, conflicts have increasingly shifted from political arenas to legal arenas. The Power

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Examination (2003) describes the trend towards individual rights and the development of rights through the legal system as an adaptation to an American pattern: The development of rights in Europe is characterized by a trend that has more in common with American social conditions. Individual and group rights are more decisive, while the room for action for common solutions and democracy becomes more limited.

Traditional and new architecture Since the 1960s we have seen three waves of reform thinking (Pollitt & Bouckaert 2011). The period from the mid-1960s to the late 1970s is frequently regarded as the golden age of rational planning, when science and expertise were expected to produce progress. The golden era of NPM was from the late 1970s to late 1990s. Business techniques to improve efficiency and «better management» were seen as the solution to a wide range of problems. Since the late 1990s, no dominant concept, but several key ones, including governance, networks, partnerships, «joining up», transparency and trust, have dominated the reform discourse. Beginning in the mid-1990s and reaching full effect from around 2002 onwards, the digital era governance (DEG): movement of government services online has had major consequences for the previously dominant approach to government (Dunleavy and Margetts 2010). In the Status Report (2005), the OECD states that «All governments are to varying degrees engaged in public sector modernization. It is no longer an option, but a necessity, if governments are to respond to changing societal needs and to maintain a competitive economy in an uncertain national environment». The public sector’s role in governance, providing services, and shaping society has been in the making for the past three decades. According to Johan P. Olsen (1993, 1998), the public sector’s power should be reduced, and the management and organizational structures should be modernized and streamlined. The challenge was, accordingly, to create more room for spontaneous social processes through privatization and deregulation and replace bureaucratic regulatory management and negotiations between organized interests with The New Public Management» Olsen (1993: 20).

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Chapter 1 Institutional Reconstruction of the State and the Public Sector

Olsen has focused on evaluating the processes of change that Western societies are in the middle of, and the uncertainty and confusion which often results regarding the various social institutionsâ&#x20AC;&#x2122; duties, powers, responsibilities, and ways of functioning, as well as the normative grounds for these. He is particularly interested in the role of representative democracy in controlling society. Olsen (ibid.) argues that a common feature of many reforms in recent years has been the desire to move decisions out of the political sphere, understood as legislatures and governments. A new centralization and the construction of new forms of government is taking place, where the vision is a social order with the competitive market as the central institution. In a word, the market will discipline the elected bodies â&#x20AC;&#x201C; not vice versa. Olsenâ&#x20AC;&#x2122;s opinion holds that NPM represents the supermarket state, i.e. a state that is a service producer and not a society controller. The shift in thinking, from government and executive power in the traditional sense to governance in the contemporary sense, can be seen as a result of the hollowing out of the state from above (international dependence), below (through the creation of specialized organizations and businesses), and from the side (through the creation of independent administrative entities). Governance is not political governance through representative and accountable institutions, such as parliaments and bureaucracies, which are included in the term government, but rather through innovative practices of networks or horizontal forms of interaction. Pollitt and Bouckaert have named this reform model New Public Governance (NPG).

Trends and key messages Trends of public management reforms in practice can be validated by data from EPSA 2009 and EPSA 2011. EPSA 2009 selected four themes: performance improvement in public service delivery, citizen involvement, new forms of partnerships working, and leadership and management for change. Likewise, EPSA 2011 had three themes: smart public service delivery in a cold economic climate, opening up the public sector through collaborative governance, and going green: concrete solutions from the public sector. These eight themes can be narrowed down to five as a consequence of similarities. I

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Jan Ole Vanebo

IV Leadership and management for change (44 eligible applications); V Going green (56 eligible applications). As evident in Table 1.1, a closer look at the 574 eligible applications shows that the competing candidates came from all levels in the public sector and that institutional modernization and reconstruction (in brackets in the second column) make up 225, or more than 40 percent of all applications. Table 1.1 EPSA-applications Local Level

Regional Level

National Level

Pan-European Level

Performance Improvement in (Smart) Public Service Delivery 231 (100)

100

Citizen Involvement

48 (20)

Collaborative Governance / New Forms of Partnerships Working

196 (69)

Leadership and Management for Change

44 (19)

Going Green

56 (17)

Total

575 (225)

251

139

163

Applications EPSA 2009 and 2011

Eligible Applications (Institutional Modernization in Public Administration)

Concluding comments I

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Performance Improvement in (Smart) Public Service Delivery In total, 231 entries were registered under this theme, covering important sectors such as health and education. The pressures on public finances, as currently faced by public administrations across Europe, are severe though not unique. But what is unprecedented in modern times is the number of European administrations simultaneously facing these pressures, and a mutual obligation to stabilize public finances. Citizen Involvement

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Chapter 1 Institutional Reconstruction of the State and the Public Sector

Citizen involvement is necessary to provide differentiated answers to the growing complexity of social demands, to cope with the need for prioritized public investments, and to deal with cuts in public services. III Collaborative Governance/New Forms of Partnerships Working Collaborative governance refers to the involvement of citizens, the business society, NGOs, and other representatives from civil society at different stages of the political process. New forms of partnerships have emerged, such as public/public partnerships, public/private partnerships (PPP), and new publicâ&#x20AC;&#x201C;third sector relations. IV Leadership and Management for Change Leaders have to inspire people to participate, enable, and maintain the new values that are necessary for public-sector reforms. V Going Green The Europe 2020 Strategy highlights a smarter, more sustainable, and inclusive economy. Sustainable growth in this context means being more resource-Â efficient, greener, and more competitive, but this is also a challenge for the public sector. Public sector reforms often turn out to be more like geological sedimentation where new layers overlie but do not replace or completely wash away the previous layer (Pollitt and Bouckaert 2011). The authors argue that they could have chosen a number of models upon which to focus in their comparative analysis, but have settled for the following three: NPM, NWS and NPG (New Public Governance). The New Weberian State (NWS) is a progressive version of traditional public administration. Classical public administration still plays an important role, but is being modernized so that it becomes more professional, more efficient and more responsive to citizens. Business methods may have a subsidiary role in this, but the state remains a distinctive actor with its own rules, methods and culture. The EPSA-cases illustrate that public organizations to a large degree incorporate NPM and NPG-reforms in their daily operational practices.

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ISBN 978-82-15-02199-7

788215 021997

Busch • Heichlinger • Johnsen • Klausen • Murdock • Vanebo (eds.)

Public Management in the Twenty-first Century

Tor Busch Alexander Heichlinger Erik Johnsen Kurt Klaudi Klausen Alex Murdock Jan Ole Vanebo (eds.)

Public Management in the Twenty-first Century –Trends, Ideas and Practices