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To cite this article: D. Bartlett & P. Dibben (2002) Public Sector Innovation and Entrepreneurship: Case
Studies from Local Government, Local Government Studies, 28:4, 107-121, DOI: 10.1080/714004159
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The extensive reforms in local government that have taken place over the
past decade or more have introduced a wide range of new structures and
practices aimed at improving efficiency and performance. Much of this
reform has been based upon what is generally viewed as a move towards
managerialism and the new public management (NPM), however there has
been much criticism directed towards this model of public management (for
example, Rhodes, 1996; Smith, 1998). In particular, the focus upon
performance measurement which it has been seen as inevitably engendering
has come in for severe criticism (for example, Sanderson, 1998; Edwards,
1998). This article adopts a different approach towards the analysis of recent
changes in the management of local government. Drawing upon empirical
case studies of innovations in local government it suggests that the role of
108 L O C A L G O V E R N ME N T S T U D I E S
T H E M A N A G E M E N T O F I N N O VAT I O N I N T H E P U B L I C S E C TO R
strongly linked to the NPM movement and also to Best Value legislation,
which aims to improve the performance of local government. Generally,
these reforms have been cast in terms of a movement away from the
bureaucratic foundations of local government and its hierarchical governing
structures and towards a more market-oriented corporate governance or
managerialist model through decentralisation and developments such as
compulsory competitive tendering, the introduction of internal markets and
a more commercial style of management (for example, CIPFA, 1994).
There were many reforms throughout the 1980s and early 1990s which
aimed to increase efficiency and generally involved evaluation of
performance by government organisations against targets. This also
occurred in other countries – both in the US and Sweden, Switzerland and
Austria, for example – where there was also evidence of increasing concern Reforms in US to
enhance public sector
for efficiency in the public sector (Flynn and Strehl, 1996). In the United efficiency
States the Government Performance and Results Act (GPRA) 1993
introduced the use of strategic plans combined with annual performance
plans for federal agencies (Breul, 1996).
It is also important to note that local authorities are encouraged to place
performance management within a community strategy framework.
According to DETR guidance (DETR, 1999) the community strategy for
each area requires ‘consultation processes which identify and balance the
needs of the community as a whole’. It is this new mandate for
responsiveness that constitutes one lever through which the public sector
entrepreneur can attempt change and innovation in the design and delivery
of services to the public, although some writers have argued that political
differences in attitudes towards participation mean that there is still scope
for the participatory agenda to become marginalised (for example, Leach
and Wingfield, 1999).
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110 L O C A L G O V E R N ME N T S T U D I E S
this may be the primary goal of the managerial leadership, the political
leadership may have an interest in maintaining uncertainty because this
would be conducive to maintaining the cohesion and stability of the
controlling group of politicians, which could not be taken for granted but
had to be worked for in retaining under conditions of uncertainty. This is in
some ways contrary to some of the assumptions underlying certain
descriptions of public sector entrepreneurship, where managers are
described as needing to persuade politicians of the ‘safety’ of potential
innovations because it suggests that politicians may be able to handle
uncertainty to a greater degree than managers.
It is, then, within the policy context and limited empirical research base
which has been described, that we attempted to further elucidate the concept
of the public sector entrepreneur in local government through our analysis
of 12 empirical case studies described below.
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illustrate our analyses with only a limited subset of them due to space
limitations. Table 1 summarises the 12 cases.
TABL E 1
S UMMARY OF T HE CASE STU D IES
D ATA C O L L E C T I O N A N D A N A LY S I S
112 L O C A L G O V E R N ME N T S T U D I E S
Based upon the inductive analyses that were conducted on each of our
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cases, we did not feel that the distinction between the managerial and
political leadership of innovation offered by Hartley and Bennington (1998)
fitted our case study data. Rather, we identified two prevalent coding
categories which related to the role of ‘champions’ of the innovation and
their ‘sponsors’. Further analysis suggested that, while in some of our cases
the role of champion was adopted by a senior manager and that of sponsor
was adopted by a leading politician, this was not necessarily so. In some of
our cases the sponsor function was provided by a more senior manager, such
as the chief executive. In others, the champion was a politician who drove
the innovation through.
C H A M P I O N S O F I N N O VAT I O N
I came in with all guns blazing saying that ‘If you’re not going to do
this, I will …’ It was really their trying to keep me at bay that forced
them to go with it, because they had no other option. So I was really
sort of saying, ‘If a third party can do that, why can’t the DSO?’ that
then set the ball rolling. But it also ruffled fur, I was still in my first
six months of being here, and taking hold of something that they
dearly wanted to happen and making it happen [E1: 194–203].
This conceptualisation of public sector innovation emphasises the way
in which the champions act as vehicles for change and this would suggest a
meta-model of innovation which, in contrast with the diffusion model which
sees the innovation itself as lying at the heart of the process, places greater
emphasis on the ‘people’ aspects of innovation. In this sense, our analysis
supports the views expressed by Hailey (2001) that it is the human resource
management (HRM) aspects in particular which are important in the use of
innovation as a strategic trigger for corporate renewal. From this
perspective, the valuable ‘human capital’ of champions and, in particular,
their mobility, constitutes an important source of the spread of innovation
within an industry or sector (in this case, local government). Upon
examining the rest of our cases, we found that the champions were new to
the authority in nearly half of all the cases. However, our analyses revealed
that it is not merely the ‘knowledge’ component of this human capital that
is important in the innovation process although, as previously mentioned,
knowledge of how things are done elsewhere combined with mobility
within the sector would suggest the importance of this particular component
within a diffusion model of innovation. There is also a cultural component
with respect to people joining an organisation, in terms of the set of
expectations placed upon such newcomers. We would also emphasise the
personal skills and attitudes of champions as important factors. Exploring
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further the knowledge, skills and attitudes of the champions in public sector
innovation would be therefore one of the key areas which we would
recommend as the focus of future research efforts in the area.
CONTEXTUAL FACTORS
116 L O C A L G O V E R N ME N T S T U D I E S
Regulatory issues are fairly low on the agenda of that committee and
consumer protection, my own area, are even lower because we’re a
new service and we don’t have the members. The most active
members, the best aware, whatever, have been on the city council for
a number of years and have already got their teeth into the issues of
environment and all these issues. There aren’t many councillors out
there who are looking for an interest [F1: 516–23].
When asked about the impact of this lack of political will, the respondent
replied:
Can I deliver the service without that? The answer is yes, I can
probably deliver a service. Should I? No, because I think all the time
there is a sort of issue about accountability and the democratic
element that there ought to be councillor involvement and
accountability and some sort of input from there and I’m sure it would
have an impact, it would change some of the issues that we were
addressing and raise some things to priorities or whatever [F1:
528–39].
It seems that this respondent is describing the essential role that a sponsor
plays for the champions of particular innovations by providing a mandate or
political support. In contrast, in local authority E where there was political
support present, the role of the champion was one of stewardship while that
of the sponsor was one of freeing up time for the champion to work on the
innovation: ‘I suppose in reality I got behind it and shoved it … there is a
councillor … who can also be seen as a champion. I mean the political
environment here was perfect … for such a scheme’ [E1: 156–82].
The empowered champions in two of our cases in particular (local
authorities B and E) would appear to come closest to the ‘intrapreneurship’
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In all of our case studies some kind of conflict or tension was present in the
innovation process and it could well be that such conflict is inevitable
during innovation. We compared the main form of this conflict or tension to
the type of innovation and the type of champion involved and found that
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118 L O C A L G O V E R N ME N T S T U D I E S
R I S K A N D I N N O VAT I O N
Finally, we examined our cases in terms of the type of stakeholder they were
responding to, the sorts of risks and risk management strategies they
suggested and the models of innovation management that they implied.
The nature of risk was different in each of our models of entrepreneurial
government. The public champion obviously runs the risk of failure to
better meet public needs, while the empowered champion can run the risk
of revolt on the part of dissatisfied stakeholder groups. In some of our cases,
needs were well articulated (for example, A and B), while in others (for
example, C) the champion was responding to perceived needs among an
inarticulate section of the community. In local authority A, the managers
responded to users’ needs in favour of responding to central government
and indeed subsequently became involved in lobbying central government
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for a change in the law. In contrast, the innovations in some of our cases (for
example, B and D) were responsive to a new government policy or scheme
which acted as the trigger for change. While we were not able to draw firm
conclusions about which type of entrepreneurial government is best suited
to the differing models of innovation management, we did find that piloting
was found to be very useful in helping see through innovations based on
responsiveness to public need, while in another of our cases we found the
use of negotiation between the council and individual stakeholders was
beneficial. In both the public and empowered models of entrepreneurial
TABL E 2
CHAMP I ONS I N E NT RE P RE NE U R IA L G O V ERN MEN T
Type of champion
Public champion Empowered champion
Orientation to novelty and Wants changes that are Is known for or wants to be
innovation different from status quo known for unconventional
changes (lover of change for its
own sake)
Solution to problem of Spread ownership – Involved from beginning to end
getting stuck in the middle possibly creating secondary – a common thread
champions to make
improvements and
adjustments
Function of sponsor Provide help with Create space for champion –
authorisation and support remove some of the routine
inside the organisation work responsibilities
Main locus of conflict as a Internal conflicts and Conflict with public or service
result of innovation process tensions users’ representatives
Nature of risk Failure to better meet Revolt
public need
Management Piloting Negotiating with various
stakeholders
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CONCLUSIONS
Our cases sampled entrepreneurial organisations and identified the key roles
to be played by ‘champions’ and ‘sponsors’ of innovation. In doing so, this
study moves away from a bias towards individual characteristics of
entrepreneurs by focussing upon the roles played by people within
organisations and, in this sense, did not identify ‘an entrepreneur’ as such.
While the role of champion may come closest to that of the entrepreneur in
the public sector innovation literature, it may be better to think of the
champion and sponsor working together as a combined force and thereby
supplying the entrepreneurial input into innovation. Although we emphasise
two contrasting types of champions of innovation and entrepreneurial
cultures, it may be that further research will add further types of
entrepreneurial government. While we are not suggesting that the analysis
of champions and their sponsors in the innovation process provides a
comprehensive description of the public sector entrepreneur, it has allowed
us to establish the importance of a champion to the innovation process, to
distinguish between different types of champion, to establish the essential
complementary role of the innovation sponsor and to highlight some of the
possible interactions between different types of champion and cultural
conditions, conflict and responsiveness.
In conclusion, we suggest that, in contrast to the stereotype of local
government organisations as large bureaucracies which stifle innovation
and for which there is little room for the entrepreneurial spirit, the public
sector entrepreneur is critical to the successful implementation of recent
policy initiatives in an international public sector context. We see
entrepreneurship and innovation as necessarily going hand in hand in the
local government context and we have pointed towards the ways in which
the entrepreneurial roles we have identified serve to generate, develop,
implement and consolidate innovations in the public sector.
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120 L O C A L G O V E R N ME N T S T U D I E S
ACKNOW LEDGE ME N T S
This article was based upon research supported by an ESRC grant (L125251044). The principal
award holder was Professor Paul Joyce and the authors would like to acknowledge his
contribution to the ideas contained in this article, as well as those of the rest of the research team
(Aidan Rose, Paul Corrigan, Tony McNulty and Simon Franklin) who were based at the
University of North London.
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