Context in America 1980s and 1990s Hege federal deficit Deteriorating basic services o Worst public schools in the world o Bad healthcare system o Overcrowded prisons and courts o Convicts walked free Poor public opinion on the government Debate during the 1990-1991 recession o Should we pay taxes or should there be fewer services? o More taxes so more money o Less services so less expenses The old bureaucracy is not effective o Monopolies of the government Usually deteriorate in quality No improvements because it is not incentivized by competition o Bureaucracy should be fast on its feet, responsive, flexible, and productive Organizations must be entrepreneurial rather than bureaucratic o Entrepreneurial - use resources to maximize the results and outcome Does not mean "for profit" Shifts resources of an area of low productivity and minimal yield into an area of higher productivity and greater yield The government invests money where it can get more Applies to public sector, nonprofit sector, and private sector Reinventing Government by David Osborne and Ted Gaebler o They spent five years traveling around the country to examine most entrepreneurial public organizations at state agencies, school districts, etc.
Ten Principles of Reinventing Government Catalytic Government o steering rather than rowing --> direction o The government does not need to do everything on its own Coordination of all facets of society Community-owned government o Empowering rather than serving o Public agencies should encourage communities to take control of services, providing money, training, technical assistance, create advisory boards o Government remains ultimately responsible for making sure services reach those who need them o Community-owned - investment and ownership Competitive Government o Injecting competition into service delivery o Turn monopolies into competition o Bid out services and projects to private sectors Mission-driven Government o Transforming rule-driven organizations We rely a lot on the bureaucracy and rules in it But has it solved and reached our goal? o Entrepreneurial government tends to minimize rules and focus on its mission o Ask the basic questions What is our mission? What is our goal? What are we trying to accomplish? What are the approaches/strategies/activities? How to design the budget? Result-oriented Government o Finding outcomes, not inputs o Accountability Customer-driven government o Meeting the needs of customers not the bureaucracy o The bureaucrats are more concerned with completing processes of the government o The best way to tie spending to results is to give the resource to the customer and let that customer choose the service provider o Providers are forced to be responsive to their customers to stay in business o Customers value a choice of services because they have different needs o Limit the red-tape in order for customers to have a more convenient experience -- customer should be the focus The customer will be satisfied, thus good public perception Can be translated into votes or reelection o Community district 4 example Competition existed because parents can now choose which schools they can enroll their children in So schools will be incentivized to be good to have more students Enterprising government o Earning rather than spending o Instead of government spending o GOCCs can be used to be a source of income 99% of LGUs are losing income in public markets It doesn't make sense that they're losing money because they have the monopoly in those community Rates are too low sometimes Anticipatory government o Prevention is cheaper than cure Better to prepare for the possible risks than dealing with the problem when it comes We should always be ready --> calamities will always be there o Prevention vs. crisis management By creating and enforcing building codes,, installing sprinkler systems, and working closely with developers on building plans and construction, fire departments are beginning to enjoy savings o Futures commissions Comprised of citizens from within the community who are charged with the task of identifying and developing goals Prodding relevant public and private agencies into achieving them o Strategic planning or comprehensive development planning Turned into three years -- in LGUs Examining and organization's current situation and future trajectory, setting goals, developing a strategy to achieve those goals o Long-term budgeting o Accrual vs. cash accounting Includes cost future obligations as expenses while cash accounting record expenses only after the have been paid o Cross-departmental budgeting Planning the budget in other departments -- even those that have little contribution to the budgeting of a specific office o Regional concerns Recognizing the impact of decisions made in neighboring jurisdictions and anticipating regional problems have proven to be beneficial for some governments Governments have realized that constituencies can be created to monitor plans and react as any other special interest group might Decentralized Government o From hierarchy to participation and teamwork o Centralized decision-making has crippled the ability of organizations to respond to various challenges o Decentralized Health environment, Agriculture, Social services Devolving tasks to LGUs o Seeks to empower those individuals who are in the best positions to develop effective and innovative solutions to problems Market-oriented Government o Leveraging change through the market o The most effective way for government to meet the public needs of this local marketplace is not through central control but by steering the decisions and activities of its players through restructuring the marketplace o The government should Set the rules int eh market place Facilitate the provision of information Augment demand Catalyze private sector suppliers and new market sectors Create market institutions Risk sharing Regulate through the application of market-oriented incentives o Problems associated with government service delivery programs Driven by constituents, not customers Look at your people as customers you have to please Driven by politics, not policy Do not use programs as a way to politick Create turf, which public agencies defend at all costs Create fragmented service delivery systems Not self-correcting Obsolete Rarely achieve the scale necessary to make a significant impact Commands instead of incentivizes