How can e-government support a transformation agenda?

Patrick Dunleavy

Public Policy Group

London School of Economics
Public Policy G
© P. Dunleavy 2005

THE ZIG-ZAG PATH TO GOVERNMENT CHANGE
New Public Management push

Web Era Governance push

Government transformation

New Public Management
• NPM = Disaggregation plus Competition plus Incentivization plus performance measurement • Disaggregation – splitting up large bureaucracies

via agencification, micro-local agencies, more QGAs, purchaser-provider separation • Competition – introducing alternative suppliers via mandatory competition, outsourcing, strategic review, quasi-markets, deinstitutionalization, asset sales, consumer-tagged financing, deregulation • Incentivization via privatization, PFIs and PPPs, PRP, charging, public sector dividends, valuing public sector equity

DISAGGREGATION THEMES
Component Purchaser-provider separation Agencification Decoupling policy systems Growth of quasi-government agencies Separation out of micro-local agencies Chunking up privatised industries Corporatization and strong single organization management De-professionalization Competition by comparison Improved performance measurement League tables of agency performance Current status X reversing X X X X X X X ~ stable √ growing √

COMPETITION THEMES
Component Current status Quasi-markets X reversing Voucher schemes X Outsourcing ~ stable Compulsory market testing ~ Intra-government contracting ~ Public/private sectoral polarization ~ Product market liberalization ~ Deregulation ~ Consumer-tagged financing √ growing User control √

INCENTIVIZATION THEMES
Component Re-specifying property rights ‘Light touch’ regulation Capital market involvement in projects Privatizing asset ownership Anti-rent-seeking measures De-privileging professions Performance-related pay PFI (private finance initiative) Public-private partnerships Unified rate of return and discounting Development of charging technologies Valuing public sector equity Mandatory efficiency dividends Current status X reversing X X ~ stable ~ ~ ~ ~ ~ √ growing √ √ √

New Public Management
• Positive short term direct effects, but... • Impacts reducing citizen competencies
– e.g unfamiliar processes, hollow choices, club effects, privatization of information, conflict of users vs citizens control

• Impacts increasing policy complexity
– e.g agencification/fragmentation, corporatization, charging, PFIs and PPPs introducing private bankruptcy risks, re-regulation following catastrophic failures, increased transaction costs

Key NPM problems
• In the UK
– rollback of NHS quasi-market – experience of Railtrack, NATS, British Energy – PFI and PPP instabilities and risk additions, ban on PFI for IT projects, continuing controversies

• In the USA
– re-governmentalization of airport security post 9/11, and ultra-conventional DHS reorganization

• In both countries
– Awareness of possible over-fragmentation and adverse siloing effects

Change of public management regime

Level of autonomous citizen competence

1

+

2

+

Level of institutional and policy complexity

3

-

Level of social problem-solving

Changes in public management regimes normally contribute to improving social problem-solving

Change of public management regime

Level of autonomous citizen competence

4

+

1

+

+

2

Level of institutional and policy complexity

3

-

Level of social problem-solving

One common adverse by-product effect is increased administrative complexity

Change of public management regime

5

+

Level of autonomous citizen competence

4

+

1

+

2

+

Level of institutional and policy complexity

3

-

Level of social problem-solving

Another common adverse by-product effect is a reduction in citizen competences

Change of public management regime
5

6

+

Level of autonomous citizen competence

6

-

4

+

1

+

2

+

Level of institutional and policy complexity

3

-

Level of social problem-solving

Cumulative adverse by-product effects can occur from changes in public management regimes

Web-era governance
is the next wave of change after NPM and comprises 3 elements • Reintegration – rolling back agencification, JUG,

re-governmentalization, new central processes, process costs squeeze, re-engineering, simplification • Holism – client/function structures, one-stops, askonce processes, end-to-end redesign, agile (not fragile) government • Digitalization – ESD, centralized procurement, ZTT automation, disintermediation, mandated channel reductions, isocratic administration, open-book governance

REINTEGRATION THEMES
Rollback of agencification Joined-up governance (JUG) Re-governmentalization Reinstating central processes Radically squeezing production costs Re-engineering back-office functions Procurement concentration and specialization Network simplification

HOLISM THEMES
Client-based or needs-based reorganization One-stop provision Interactive and ‘ask once’ information-seeking Data warehousing End-to-end service re-engineering Agile government processes

DIGITALIZATION THEMES
Electronic service delivery New forms of automated processes – zero touch technologies (ZTT) Radical disintermediation Active channel streaming Facilitating isocratic administration Moving towards open-book government

London’s Oystercard - a travel smartcard

London’s Oystercard
• Smart card with RDF, stores season tickets and pre-pay cash amounts –purchasable by phone, on the Web and via local outlet machines • Initial installation costs were £1.1 billion • Readers on 6,000 buses, 255 Tube stations, 2300 ticket outlets, 23 national rail stations • Initially 350,000 season ticket holders, now over 2.2 million users due to adoption incentives • Time savings for card holders who touch in and out, plus other passengers still queuing and staff savings for Transport for London

6

+
Web-enabling government
5

+ +

Level of autonomous citizen competence

6

+

4

-

1

+

2

+

Level of institutional and policy complexity

3

-

Level of social problem-solving

The unique potential for positive by-product effects from Web-era governance

SUGGESTIONS FOR ACHIEVING KEY GOVERNMENTAL CHANGES
• Use e-gov as part of an overall change management strategy, not as a stand-alone • Try for radical, Zero Touch applications • Aim for quick wins and rapid changes, using incentives and a thorough build and learn approach to spur rapid behaviour changeovers • Treat multi-channel solutions as transitional only –aim to achieve critical mass displacement to egov • Look for positive externalities that offset inequalities and an atrophying of legacy methods

OTHER SUGGESTIONS
• Prefer brand new applications to remaking legacy systems and organizations • Prefer applications that are fault-tolerant • Look at active competition between e-government methods and legacy methods • Prefer low authentication applications – or you’ll still be waiting five years on • Foster information-seeking and –giving, especially from national agencies where users are episodic • Maintain competitive tension in the contracting market – better for industry and government

Achieving a self-reinforcing cycle of Web-era governance processes
Investment flow 1 Organization change Responsiveness boost Customer behaviour changes Key productivity and cost reduction changes feedback savings flows Leadership 2

E-change