Apr 3 - Improving Government Performance Part I Intersectoral Spring 2008

Apr 3 - Improving Government Performance Part I Intersectoral Spring 2008

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Unformatted text preview: Improving the Performance Improving of Public Organizations of Intersectoral Administration 1 Intersectoral Administration Intersectoral Administration— the management and the coordination of the relationships among governments and organizations in the private and nonprofit sectors for the purpose of achieving specific policy goals goals 2 Why Collaborate Savings Fiscal and Personnel Easements Experimentation Lowered Political Risk Image Enhancement Greater Leverage Economic Development Emergency Management Cost Clarification 3 Henry Focus Privatization Public Enterprises and Public Public Authorities Authorities Independent Sector 4 Privatization When government contracts to When sell its assets to, or buy goods or services from, a privately owned, profit seeking company for the purpose of implementing specific policy goals specific 5 A Fundamental Question Can government services be Can better supplied by private organizations than by public agencies? agencies? 6 The Public Sector Has Limitations The government The cannot be equally effective in the areas of in transportation, education, housing, health, defense, etc., all at the same time time Impossible to be Impossible responsible for all these public services these The government must The delegate some obligations or responsibilities to the private sector private Effectiveness and Effectiveness Efficiency are the main goals goals 7 The Private and Public The Sectors Public Private Partnerships (PPPs) Public represent a form of collaboration under contract by which public and private sectors, acting together, can achieve what each acting alone cannot. cannot. 8 The Foundation of PPP’s At the heart of all PPPs is the At deployment of private sector capital. Within a PPP framework, this can result in greatly improved value for money for the government in terms of the risks transferred to the private sector (in cases where the latter is better able to assess the risks) and powerful private sector incentives for the long-term delivery of reliable public services. 9 Major Differences Public Cannot take Cannot risks with their risks capital. capital. Capital budgets Capital are constrained are It is the It government’s responsibility to provide services provide Private Can take risks Can with their capital with Are in it for a Are profit profit 10 10 4 Questions for Privatization Efficiency Equity Accountability Authority 11 11 Efficiency Government bureaus are often less Government likely than private organizations to likely operate efficiently because: operate Government executives are less Government able to define an efficient course able define of action. of Public executives have weaker Public incentives to find an efficient incentives course of action. Public executives have less Public authority than private ones to authority impose an efficient course of action. action. 12 12 Efficiency The greater efficiency of private The suppliers of most public services seems to be chiefly the result of 3 factors: factors: Lower labor costs. Management is more effective at Management attaining efficient courses of action attaining Greater competition 13 13 Equity Predictions cannot be made about Predictions whether government bureaus or private firms will be more fair in distributing outputs and acquiring inputs. (not enough data) inputs. Both private and public agencies Both have discriminated 14 14 Equity For most people the key equity For problem arises when an important service is made available on the basis of fees charged to people with unequal incomes. unequal “Many of us want everybody to have a Many fair chance to participate, we also want them to participate in the ‘right way’ by doing what we think is best” (Wilson, 357). 357). 15 15 Accountability It arises when we are unwilling It to confine our control over a firm supplying a service to the government’s right to grant, withhold, or cancel the contract. withhold, Governments are rule oriented Specify Specify every procedure (i.e. Red Tape) Tape) 16 16 Authority Certain tasks we expect government Certain to perform, not because government is cheaper or more efficient, but because it alone embodies the public’s authority. Certain tasks are public’s Certain sovereign tasks Example-private management of Example-private correctional institutions; halfway houses, youth shelters, and therapeutic programs. Is this a good idea? programs. 17 17 Another Example: PMC PMC—Private Military Company Hired by the Pentagon to help in Hired Iraq Staffed by ex-military personnel Staffed Can make triple what most Can soldiers make Have the flexibility to do some Have things quickly that armed forces simply can't. 18 18 Lessons Learned 1. Strong public support and a political champion 1. are prerequisites for privatization prerequisites 2. Select potential candidates for privatization 2. carefully carefully 3. Privatize gradually 3. gradually 4. Develop an accurate costing system before 4. contracts are solicited contracts 5. Inject the maximum amount of competition 5. possible possible 6. Use well-defined contracts that set performance 6. measures and incorporate evaluation procedures measures 7. Mitigate the impact of privatization on displaced 7. public employees public 8. Recognize that the weakest links in the 8. contracting process are those of managing the contract and achieving accountability contract 19 19 Public Enterprises Market-oriented services provided by Market-oriented government to the people government Public (corporation) authority (district)— llegislatively created organization that egislatively performs a market-oriented performs Program is predominantly of a business nature Is revenue producing and potentially selfsustaining Involves a large number of business-type Involves transactions with the public transactions Requires greater flexibility than the customary Requires type of appropriations budget ordinarily permits type 20 20 Independent Sector Those organizations, Those associations, and institutions that do not seek profits, are not created by governments, and are privately owned are Public Public serving or public benefit organizations organizations Member serving organizations 21 21 Performance by Sector Public sector is best for: Policy Policy management Regulation Ensuring equity Preventing discrimination or Preventing exploitation exploitation Ensuring continuity and stability of Ensuring services services Ensuring social cohesion 22 22 Performance by Sector Private sector is best for: Performing complex tasks Delivering services that require Delivering rapid adjustment to change rapid Delivering services to very diverse Delivering populations populations Delivering services that become Delivering obsolete quickly obsolete 23 23 Performance by Sector Independent sector best for: Independent best Tasks that generate little or no profit Tasks margin margin Require compassion and commitment to Require other humans other Require a comprehensive, holistic Require approach approach Require extensive trust on the part of Require customers or clients customers Require volunteer labor Require hands on, personal attention Enforcing moral codes and individual Enforcing 24 24 responsibility for behavior responsibility Performance and Impact Nonprofit organizations and for-profit Nonprofit companies seem to perform at comparable levels of quality and services in delivering public services public Government funding has a significant and Government positive relationship with third sector organizations organizations Citizens’ confidence in the third sector’s ability Citizens’ to deliver public policies seems to be high and increasing over time increasing Both government and business elites evidence Both considerable faith in the capacity of nonprofit organizations to deliver public services and mange programs effectively and efficiently mange 25 25 Performance Measurement What we can agree on now: 1) There is a vast difference between 1) measuring process and measuring results results 2) There is a vast difference between 2) measuring efficiency and measuring effectiveness effectiveness 3) There is an important difference 3) difference between program outcomes and broader policy outcomes policy 26 26 The Three Sectors 27 27 ...
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This note was uploaded on 11/21/2009 for the course PPD 225 taught by Professor Lewis during the Spring '07 term at USC.

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