Analytic and Managerial Challenges of Collaborative Governance John D. Donahue June 22, 2009.
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Transcript of Analytic and Managerial Challenges of Collaborative Governance John D. Donahue June 22, 2009.
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Analytic and Managerial Challenges of Collaborative GovernanceJohn D. Donahue
June 22, 2009
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Sequence
Definitions and distinctions Spectrum of public-private delivery models Differentiate by allocation of discretion
Generic advantages and risks Examine selected examples Analytical and management imperatives
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Mostly drawn from…
Donahue, The Warping of Government Work (Harvard University Press, 2008)
Donahue and Richard J. Zeckhauser, Leverage: Public Goals, Private Roles (in progress)
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Context
Shift toward complicated public missions that invite or require private engagements
Relative erosion in governmental capacityFinancial and (especially)Personnel
Maturation of institutional and technological infrastructure
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Mid-20th Century Model
Dominance of Central State Direct Governmental Action Elite Public Service
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Diffusion of Governance
For-Profit Public Non-Profit
Supranational
Trans-National Corporations
Inter-Governmental
Organizations
Non-Governmental
Organizations
National
National Corporations
20th Century Model
x
National Non-Profits
Subnational
Local Businesses
State/Local Government
Local Groups
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Purchased Services Relative to Employee Compensation, U.S. Government, All Levels, 1930-2005
0%
10%
20%
30%
40%
50%
60%
1930 1940 1950 1960 1970 1980 1990 2000Source: BEA, NIPA Table3.10.5
1/27/2006
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SKILLS
PAY
government (then and now)
private economy (then)
private economy (now)
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Mid-20th Century Model
Dominance of Central State Direct Governmental Action Elite Public Service
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Emerging 21st-Century Model Erosion of Central State Relative to
Supranational and Sub-national Authority
Shift from Direct to Mediated Governmental Action
Greater Role for Private Agents (both for-profit and not-for-profit)
Chronic Public-Sector Talent Shortages
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Narrow the Focus: Public-to-Private Diffusion
For-Profit Public Non-Profit
National Corporations
National Non-Profits
Local Businesses
20th Century Model
x
Local Non-Profits
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Enlarged Role for Private Agents
Relative to Mid-20th Century Model Return to Historical Norm
Roman Tax AdministrationMercenariesBritish East India Company, other
hybrids
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Rationales for Delegating Public Responsibilities to Private Agents
Limits to making government itself more “business-like”
“Extensive” versus “intensive” accountability
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Rationales for Delegating Public Responsibilities to Private Agents
Resources Competence Information Legitimacy
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Generic Risks of Delegating Public Responsibilities to Private Agents
Diluted Control Financial Exploitation Reputation Vulnerability Diminished Capacity
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Architecture of Agency Relationships: Spectrum of Discretion Government Holds Most Discretion =
Outsourcing, Other Contractual or Quasi-Contractual Relationships
Private Players Hold Most Discretion = Philanthropy, Voluntarism, Corporate Social Responsibility
Shared Discretion = Collaborative Governance
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“Collaborative Governance”
Not new, not rarebut under-analyzed relative to importance
Shared discretion as defining featuremiddle ground between contract and
philanthropy Broad potential for flexibility, precision Strategic complexity Multiple forms of failure
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Forms of Discretion
Production DiscretionMain rationale for collaboration (rather
than direct delivery or contracting) Payoff Discretion and Preference
DiscretionCostly or risky (from government’s
perspective)Often entangled with production
discretion
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x*
Point where benefits start to fall
Benefits
Production Discretion
Point of best balance between benefits and costs of discretion
Production Discretion Boosts Benefits (Up To a Point)
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x*
Payoff Discretion
Production Discretion
Payoff Discretion as Unwelcome Fellow Traveler of Production Discretion
y*
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Generic Challenge of Collaboration
Design delivery models and Select and motivate collaborators To maximize gains from production
discretion Net of losses from payoff/preference
discretion
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Resource-Based Collaboration
Common motive, visible category Central Example: New York City
Parks PartnershipsAdditional Examples to Discuss if Time
and Interest: FDA and Pharmaceutical Industry under PDUFA; Statue of Liberty Foundation
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Productivity-Based Collaboration
Strongest theoretical case for collaboration
Central Example: Charter School Movement
Secondary Examples to Discuss if Time and Interest: Vaccine development and production, Space Shuttle operations
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Information-Based Collaboration
Central Examples:
Infrastructure Security
Job Training
Secondary examples to discuss if time and interest: Securities rating; Management-based regulation
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Legitimacy-Based Collaboration
Central Example: US Hospital Accreditation
Secondary example to discuss if time and interest: Federal Student Loan debate
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Public Managerial Tasks of Distributed Governance
Appraisal Analysis Assignment Architecture Assessment Adjustment
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Note that these functions are:
Fundamentally analytical Complex and demanding, requiring
high-level talent for implementation, not just policy design
Indicators of the convergence of analytics and public management