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Notes on Goldsmith, S., et. al.

(2004); Governing by Network

Thisbookisabouthowtheworldhaschangedsomuchthattheoldgovernmentmodel(hierarchy, bureaucracy)isnotusefulanymoreanditisleadingtotragedyandfail.Thebookwillarguethatwe needtolearnhowtogovernwithanetworkmodel,andthenwilltrytodescribethe"howto"for applyingthenetworkmodel,usingexamplesofallkinds

I. The rise of governing by network 1. The new shape of government


Example: The "Presidio Park" (Alcatraz) near the Golden Gate in San Francisco has become less like a government-run park and more like a network of inter-locked public-private partnerships Superintendent Brian O'Neill says that his job is to figure out who can make things happen in the broader community This is a partner-centric approach - They serve as a buffer between the park service and the nonprofits - Gives the nonprofits flexibility and freedom - Managing a governmental agency through networks requires different skills than traditional government models Public service people stop seeing themselves as doers, and start seeing themselves as facilitators It has been a great success, silencing the critics New challenges, New governance model Predominant in the XX Century: Bureaucracy, hierarchy - Starts to fail when problems are more complex and global - Example: Homeland security is very complex, needing help from different entities The complexity produces a new model of government - Core responsibilities are no longer managing and organizing resources - Agencies are not as much as service providers any more - Bad guys are organized in networks, and it takes a network to fight a network Management challenges - The key now is the ability to manage partnerships and hold partners accountable - There is a very hard problem: managerial. The system is designed to operate in a hierarchical model and now suddenly everyone wants they to manage networks!. And there is nowhere to turn for help or learning! - But this book comes to the rescue! The rise of Government by Network Government has used networks since the beginning of time, but things are changing now ant there are four influential trends altering the shape of public sectors worldwide Third party government The government intentionally engage networks of providers to deliver public goods Relationships are more complex than simple government-vendor outsourcing This book concentrates in networks that require ongoing managing The administration has steadily shifted to this model Contracts have jumped by 24% between 1990 and 2001 Myriad of examples: from trash recollection to army services The military portion is breathtaking and there are about two pages of extensive examples The environmental services are also a good example Child welfare is another example=In Florida, community-based nonprofits run the child welfare systems This tendency does not show signs of abating

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Joined-up government Created to provide more integrated services A lot of examples in the UK, Australia, and US In the US, the "No Wrong door" initiative: a person seeking state-services should find it behind the first door they knock on (ha!) Another example: Homeland security, prompted by 9/11 The digital Revolution The cost of communicating information has decreased dramatically Example=The Dell company has a very efficient and low cost electronic data system The US military is experimenting with networks to bring expertise to the front in seconds Consumer demand (Citizen choice) Since Bush, the initiative is to have the citizens decide what they want and how they want it Government by network represents the synthesis of these four trends

Several examples: UK experiences, the NASA projects, Medicaid

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Chapter summary

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

2. Advantages of the network model


The networked model is becoming the king In some industries the production network is the most important unit of competition Advantages over traditional hierarchical structures Specialization: Companies can concentrate on their core mission and exploit the expertise of "best of breed" providers Innovation: Networking encourages experimentation leading to innovation Speed and flexibility: The more flexible the company, the faster the response. Networks tend to be more flexible than hierarchies Increased reach: Connect more broadly for supplies and also for customers Explanation of the Milwaukee's welfare program Moved from Hierarchy to networking Right now the W-2 program is one for the most sophisticated networked government programs

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Chapter summary

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

3. Challenges of the network model


There were a myriad of complains in the Milwaukee's W-2 experience Some partners made wrong use of the money Some partners complained that they were being asked for too much in to little time Things were difficult to monitor The first step in governing networks is understanding the challenges Goal congruence: Not so simple Goals of different actors can simultaneously overlap and differ Performance goals can be very different among participants that provide the same services The missions do not always align well Contorted oversight Governments use the networking to offload the managing, and the result is lack of supervision On the other hand, governments may try to overuse their authority and try to micromanage providers, leading to problems Good oversight concentrates on outcomes, not processes Communication meltdown When informal channels such as the "water cooler talk" are eliminated, the communication becomes difficult Technology can play an important role in solving these communication problems But again, when technologies do not align, these efforts can be unfruitful Fragmented coordination When complexity is high and responsibility unclear, coordination problems appear Government must manage relationships with each providers and among organizations within the network Data deficits and bad benchmarks Unrealistic benchmarks Tension among partners Capacity shortages Government starts to "hollow out" becoming less and less effective in managing even its contractors Managing requires a different kind of internal capacity Relationship stability: Stable network relations lead to mediocrity Improving the odds Certain conditions are better for networking and others are better for hierarchical model

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Chapter review

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

II. Managing by network 4. Designing the network


Networks don't just happen. They need to be designed Identify possible partners Bring all relevant stakeholders to the table Analyze the current in-house operations Determine and communicate expectations of how the network will function Assemble and enmesh the pieces of the network Devise strategies to maintain the network Finally: Activate the network Questions for the designer Accomplish WHAT? This is a frequently neglected question Determine the Mission and strategy Network designer must ask the right question What outcome-based public value is the agency trying to create? Determine the important public value Do not define the problem or the answer trough historical processes Calibrate the design of the network to the desired outcome Step outside the box Which TOOLS use to form and activate the network? Money Rhetoric Capacity to convene People and Technology Resources Authority: Can be "loaned" through the network WHO are the most appropriate partners? (A network is as strong as it weakest component) Factors change depending on the circumstances Cultural compatibility Operational capacity Cost Specialized expertise Financial viability Ability to assume some risk Proximity to the customer Neighborhood ties Legitimacy Who should integrate the network? A strong integrator has many abilities Can coordinate activities Handle problems Ensure the provision of quality services The integrator is the "hub" Possible integrators The government It has been the integrator by tradition But has challenges

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Notes on Go oldsmith, S., et. al. (2004); Gover a rning by Network k

Prime cont tractor

Third party y Find som meone with th only goal of managing th network on behalf of the governmen he o he n nt Diagram m10

Downsid Adds a lay between the governme and the ult de: yer t ent timate client What should be integrated? W ? Breaking up the pieces of a contract may cause dis f m sastrous opera ational proble ems How interdep pendent are the current pr t rocesses? Which proce esses are not "in scope" for the network solution? r k How should the network be DESIGNED? w n D Determining th right type of network D he o Service cont tract: Contrac ctual arrangem ments are use as organiz ed zation tools Supply chain Formed to deliver a com n: d mplex product to governme ent Ad-hoc: activ vated for a sp pecific situatio on Channel par rtnership: To handle transa h actions on beh of the government half Information dissemination Partner with organization that have r d n: h ns resources suc as web sit or ch tes newspapers :-) Civic switchb board: Govern nment connec diverse or cts rganizations s they augm so ment each othe er's capacity to produce an im p mportant publi outcome ic The degree of governmen involvemen varies acco o nt nt ording with the type of netw e work

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

How to choose the right network What do you want to do? Deliver a service? Provide Information? Build something? Is the need ongoing or one-time? How much money is available? What is the relative importance of accountability versus flexibility? How should the network be GOVERNED AND MANAGED? Officials must understand the limits They need to be careful whom they invite to the table The question revolves around labor issues and activities What are the core values that government must protect? How can public officials maintain the integrity of these values? Chapter summary

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5. Ties that bind


How do you tie together disparate organizations and discrete business processes into a functioning network? Technology can help

But other issues have to be addressed too People issues Examining processes Aligning values Building trust Establishing communication channels Digital connections Co-location Public partnerships locate at least some of their employees and operations in the same space

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Coordinating activities Reduce transaction costs and build trusting relationships Synchronized Response Visibility Reduces risk Better decisions are made Single view of the client Networking activities are decentralized, so the view of the client tends to be fragmented. This needs to be corrected Lack of interoperability Privacy issues Building relationships Governance structures Quickly identify and resolve any friction points set out the overall vision and strategy of the network Sharing knowledge Networks foster organizational learning. There are two types of knowledge Tacit knowledge Exists within the heads of the employees Explicit knowledge Information-oriented Manuals, symbols, facts Barriers to knowledge sharing Tacit knowledge provides the most value Tacit knowledge is extremely difficult to capture and transfer What to do Build infrastructures that promote the transfer of knowledge Regular meetings, email, co-location Virtual communities Communities of practice Creating trust and collaboration among sometime competitors Create trust Determine whether a consortium of providers which compete in some areas can cooperate on the project

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Handling cultural differences Sharing decision-making Presenting integration challenges Chapter summary

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

(The other chapter's summaries)


Chapter 6: Networks and the accountability dilemma

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Chapter 7: Network governance

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Chapter 8: The road ahead

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