Private Roles for Public Goals

Copyrighted Material

Chapter1

Private Roles for Public Goals

WeliveinturbulenttimesNodoubtitalwaysseemssobutasthetwentyshyfirst century hits its stride the gauge of stress and tumultseemswellaboveparTheglobaleconomyiswobblinghousingpriceshave boomed and busted jobs have evaporated retirement fundshaveshrivelediconicfinancialinstitutionsstaggerfrombankruptcytobailoutAndthesearejustthemomentrsquosproblemsLookingaheadmdashand not all that far aheadmdashwe face massive challenges findingwaystopowertheeconomywithoutfoulingtheplanetfulfillingthepledgeofaffordablehealthcareforallandsecuringthefutureofSoshycialSecuritySchoolsfallfarshortofwhatparentsexpectandstushydentsrequireRoadsbridgesandleveesarecrumblingfromoldageandoveruseBigchallengesarestandardforthisrestlesscountrytobesurebutthosetodaybeatthenormbyaconsiderablemargin

Noonebelievesgiventhecomplexityandcostofthetasksweconshyfrontthatsimplyscalingupthestandardgovernmentalsolutionsisthe answer Government too often finds that it lacks the skill thewillandthewallettofigureoutafixandgetitdoneCorporationsmdashwhichsomehopewillbespurredbytheirsenseofsocialresponsishybilitytosaveusfromtheperilsthatbesetusmdashareoftenstrugglingto savethemselvesandresistdevotingresourcestoanyproblemifaprofitdirectorindirectisnrsquotpartofthesolutionAndprivatecharishytieshavetoofewresourcestotakeupeveryburdenthatgovernmentshrugsoffAparticularlyvividrecenttrendwasthesurgeingovernshymentalresponsibilityforshoringupprivateinstitutionsTh atsurgeboth demonstrates that familiar boundaries between sectors havebeen much in flux and masks the less dramatic but more durable


4 CHAPTER 1

trend that is this bookrsquos focusmdashthe escalation of privateshysector inshyvolvementinundertakingstraditionallyconsideredtheprovinceofgovernment

Yet troubled timescanalsoofferopportunityWehavea toughshymindedpresidentwithbigideasandthecouragetosurroundhimselfwithsomeofthenationrsquosbestthinkersanddoersTheObamaadshyministrationcameintoofficewithamandatenotonlytorescuethecountryfrompressingthreatsbutalsotoimprovethewaygovernshymentworksButsuchimprovementparadoxicallyrequireslookingbeyondtheboundariesofthestateitselfThemagnitudeoftheprobshylemsandtheambitionofthegoalsthatmarkourerameanthatgovshyernmentonitsownisovermatched

TheObamaadministration itssisteradministrationsatthestateandlocallevelsandgovernmentstofollowinthefutureneedwhatthemilitarycallsaldquoforcemultiplierrdquosomesystematicwaytorampuptheimpactofgovernmentrsquoseffortsWebelievethatcollaborative govshyernancemdashcarefully structured arrangements that interweave publicandprivatecapabilitieson termsof shared discretionmdashcanbe thatforcemultiplier

Agenciesatall levels facearangeofopportunitiestocollaboratewithprivateactorstoachievepublicgoalsmoreeffectivelythangovshyernmentcanon itsownWhenwell applied thecollaborativeapshyproachcanbeapowerfulleverforcreatingpublicvalueButitisoftenmisunderstoodmdashconfusedwithconventionalcontractingorcharityormergedwithwoolyconceptionsofpublicshyprivatepartnershipmdashbypolicymakersandthepublicalike

Acarefulreviewoftheevidencefromgovernmentsmdashlocalstateand federalmdashconvincesus that theperformanceofAmericarsquosgovshyernmentwilloftenhingeonmakingthebestuseofcollaborativegovshyernanceItleveragesprivateexpertiseenergyandmoneybystrategishycallysharingcontrolmdashovertheprecisegoalstobepursuedandthemeansforpursuingthemmdashbetweengovernmentandprivateplayersThatdiscretionsimultaneouslymotivatesprivatecollaboratorstoenterthe public arena and empowers them to play their roles well Th ecollaborativeapproachunleashestheunpredictableresourcefulnessofanentrepreneurialcitizenrytodevisefreshandflexiblesolutions


PRIVATE ROLES FOR PUBLIC GOALS 5

Donewellcollaborationcreatessynergiesbetweengovernmentsandprivateparticipants allowing them together toproducemore thanthesumofwhattheirseparateeffortswouldyield

Thisapproach togetting thingsdone is far fromnewTh ose inshyclinedtoviewpublicaffairsasuntilrecentlythestatersquosexclusivedoshymainmightcontemplateimperialRomantaxadministrationwhichwasdelegatedtoprivaterevenueagents1orthefabledhistoryoftheBritishEastIndiaCompanywhichoftenactedasadiplomaticandcommercialextensionoftheBritishgovernmentLewisandClarkrsquosldquoVoyageofDiscoveryrdquowhichopenedtheAmericanWestwasaprishyvateexpeditionoperatingwithalooseflexiblemandatefromPresishydentJeffersonButthoseweresimplertimesGovernmentandsocishyetytodayarevastlymorecomplexandthewhipsawsofchangemorerapid and pronounced And while collaboration between governshymentsandotherentitiescanbefoundinnationsacrosstheglobeitisanapproachuniquelysuitedtothemarketshyfriendlybureaucracyshywarycultureoftheUnitedStates

WearenotclaimingtohavediscoveredsomenewspeciesoforgashynizationalinteractionnordowepretendtoanystartlingdegreeofconceptualnoveltyMostoftheideasinthisbook(ormostmodernbooksforthatmatter)wouldnotbebignewstoAdamSmithJeremyBenthamorJohnStuartMillandsomefirstshyratetwentiethshycenturyworkoncollectiveactionprovidesuswithbothinspirationandsomedirectantecedentsforaportionofwhatyoursquollencounterhere2Ourkeyinnovationsarefirsttodistinguishamongfrequentlyconfoundedformsofpublicshyprivateinteractionsecondtofocuswithspecialcareontheimplicationsofshareddiscretionmdashitsrationale itspotentialdarksideandthetradecraftrequiredtomanageitandthirdtoorishyentthecollaborativeapproachtosomepivotalproblemsoftodayandtomorrow

1SamuelEFinerHistory of Government(OxfordUniversityPress1999)2SomeofourveryfavoritesinthisregardareMancurOlsonThe Logic of Collective Action

Public Goods and the Theory of Groups(HarvardUniversityPress1965)RobertAxelrodTh e Evolution of Cooperation(BasicBooks1984)OliverWilliamsonMarkets and Hierarchies(FreePress1975)andRonaldCoaseldquoTheoryoftheFirmrdquoEconomica4(1937)BothCoaseandWilshyliamsonwereawardedNobelPrizesfortheirworkrespectivelyin1991and2009


6 CHAPTER 1

Thereisanenormouspoliticalscienceliteratureoncoalitionssoshycial capital networks and other relevant concepts3 The pitfalls ofcollaborationmdashfromcronycapitalismtopoliticalmachinesmdasharealsowell documented4 Legal scholars have explored collaboration andrelatedtopicsatgreatlengthsometimeswithimpressiveinsightandalmostalwaysinalanguagealltheirown5

3RobertDahlWho Governs Democracy and Power in an American City(YaleUniversityPress1961)Dahlrsquos1953bookwithLindblomPolitics Economics and Welfaredrawsanintershyesting distinction between ldquopolyarchyshycontrolledrdquo institutions and ldquopriceshysystem controlledrdquoinstitutionsTheirtreatmentofpolyarchyshycontrolledinstitutionsdealswithgovernmentagenshycies collaborative governance imports private institutions into this domain In the politicalsciencetraditionwealsoadmireRobertPutnamMaking Democracy Work Civic Traditions in Modern Italy(PrincetonUniversityPress1993)andBowling Alone The Collapse and Revival of American Community(SimonandSchuster2000)andtheworkofJohnElsterparticularlyTh e Cement of Society A Study of Social Order(CambridgeUniversityPress1989)AclassicinthenetworkliteratureisDavidKnokeandJamesKuklinskiNetwork Analysis(SagePublications1982)aninfluentiallatercontributionisTimothyRowleyldquoMovingbeyondDyadicTiesANetshyworkTheoryofStakeholderInfluencesrdquoAcademy of Management Review22no4(1997)InanexampleofthenetworkliteraturewithparticularrelevancetocollaborativegovernanceKevinMcGuirearguesthataninformalnetworkmdashoriginatingmostlyinelitelawschools(nonprofit)seasonedincourtclerkshipsorstints inthesolicitorgeneralrsquosoffice(government)andcurshyrentlyorprospectivelybelongingtotopDClawpartnerships(private)mdashholdsspecialexpertiseandexercisesspecialinfluenceovertheinstitutionatthepinnacleofthejudicialbranchldquoLawshyyersand theUSSupremeCourtTheWashingtonCommunityandLegalElitesrdquoAmerican Journal of Political Science37no2(May1993)Someinterestingideasaboutgoalcongruencemdashwhy itrsquosgreat tohave incollaborativearrangementsandaproblemwhen itrsquos impossible toarrangemdashcomeupinWilliamGOuchildquoMarketsBureaucraciesandClansrdquoAdministrative Science Quarterly25no1(March1980)OthernoteworthycontributionsinthepoliticalscishyenceliteratureincludeJulianLeGrandQuasishyMarkets and Social Policy(PalgraveMacmillan1990)BarryBozemanAll Organizations Are Public Bridging Public and Private Organizational Th eories(JosseyshyBass1987)RAWRhodesldquoTheNewGovernanceGoverningwithoutGovshyernmentrdquoPolitical Studies44(1996)andAnneSchneiderandHelenIngramldquoTh eBehavioralAssumptionsofPolicyToolsrdquoJournal of Politics52no2(May1990)

4The Carnegie Endowmentrsquos Marina Ottaway explicitly characterizes (and critiques) theGlobalCompactmdashwhichstandsastheposterchildforcollaborativegovernanceontheintershynationalplanemdashasalinealdescendantoftheEuropeancorporatismthatinabaddecadecanmorphintofascismldquoCorporatismGoesGlobalInternationalOrganizationsNGONetworksandTransnationalBusinessrdquo Global Governance A Review of Multilateralism and International Organizations7no3(2001)AclassiccommentaryonurbancollaborativegovernancegonebadisLincolnSteffensThe Shame of the Cities(McClurePhilipsandCo1904)SeealsoJorgRaabandHBrintonMilwardldquoDarkNetworksasProblemsrdquoJournal of Public Administration Research and Th eory 13no4(2003)andJuliaSassRubinandGregoryMStankiewiczldquoTh eLosAngelesCommunityDevelopmentBankPossiblePitfallsofPublicshyPrivatePartnershipsrdquoJournal of Urban Aff airs23no2(2001)

5OnegoodexamplehereisJodyFreemanldquoCollaborativeGovernanceintheAdministrativeStaterdquoUCLA Law Review45no1(October1997)MarthaMinowrsquosworkmostlydealswithcontractingbutthereismuchtolearnfromherwritingsthatappliestocollaborationaswell



There ispertinentwisdomtobeharvested inmanysubfieldsofeconomics including game theory behavioral economics institushytionaleconomics(especiallytransactionsshycostshybasedtheoriesofecoshynomicstructure)andinparticularagencytheory6ThebusinesslitshyeraturewhichaddressesmanytopicscloselyrelatedtoourstudyofcollaborativegovernanceincludingcorporatealliancesandstrategicpartnershipsmdashareasofinquirybyeconomistsbusinessscholarsandorganizationalexpertsmdashturnsouttobesurprisinglyrichinmaterialrelatedtocollaborativearrangementsThisliteraturehasbeenespeshyciallylivelysincethelate1980sinparallelwiththefermentofrealshyworldexperimentationwithnewmodelsofinteractionamongfirms7

Andinthe literatureonpublicmanagementapproachesrelatedto

HereditedvolumePartners Not Rivals Privatization and the Public Good(BeaconPress2002)andthebookMinowandFreemancoeditedGovernment by Contract Outsourcing and Amerishycan Democracy(HarvardUniversityPress2009)offergoodoverviewsofhowthemainstream(ifabitleftshyofshycenter)legalworldthinksaboutthesetopicsAprovocativebookfromanotherlegalperspectiveisJochaiBenklerThe Wealth of Networks How Social Production Transforms Markets and Freedom(YaleUniversityPress2006)

6WehavealreadynotedouradmirationforMarkets and Hierarchiesbutcanalsorecommendamore recentWilliamsonpiece ldquoTheNew InstitutionalEconomicsTakingStockLookingAheadrdquoJournal of Economic Literature38(September2000)WilliamsonexploredtherelativevirtuesofmarketsandfirmsintheorganizationofeconomicactivityOurvolumebycontrastlooksatthemeritsoforganizingactivityacrosstheboundaryofthepublicandprivatesectorswhich is why agency theory is critical for its analysis While the agencyshytheory literature isenormousweconfidentlyrecommendJohnPrattandRichardZeckhauseredsPrincipals and Agents The Structure of Business (HarvardBusinessSchoolPress1985)Onalliance theorymoregenerallyseeMancurOlsonandRichardZeckhauserldquoAnEconomicTheoryofAlliancesrdquoReview of Economics and Statistics48no3(August1966)266ndash279andToddSandlerCollecshytive Action Theory and Applications(UniversityofMichiganPress1992)SociologistVictorNeehasdonecrossoverworkintheeconomicsarenathatdrawsuponandcomplementsconceptsdevelopedbyWilliamson(andalsoMancurOlson)amongothersldquoNormsandNetworksinEconomicandOrganizationalPerformancerdquo American Economic Review88no2(May1998)

7ConsiderforexampleFarokContractorandPeterLorangeedsCooperative Strategies in International Business(LexingtonBooks1988)BruceKogutldquoJointVenturesTh eoreticalandEmpiricalDimensionsrdquo Strategic Management Journal9(1988)andaspecialissuesofOrganishyzation Science featuringMitchellKozaandArieLewis ldquoTheCoshyEvolutionofStrategicAllishyancesrdquoAfricaArintildeoandJoseacutedelaTorreldquoLearningfromFailureTowardsanEvolutionModelofCollaborativeVenturesrdquo(whichwarnsthatincreasinglypopularcollaborationsldquohavebeencharacterizedbyahighlevelofdissatisfactionwiththeiractualoutcomesrelativetoexpecshytationsrdquo)andAnoopMadhokandStephenBTallmanldquoResourcesTransactionsandRentsManagingValuethroughInterfirmCollaborativeRelationshipsrdquoOrganization Science9no3(MayndashJune1998)SeealsoKenGSmithStephenJCarrollandSusanJAshfordldquoIntrashyandInterorganizationalCooperationTowardaResearchAgendardquoAcademy of Management Journal 38no1(February1995)


8 CHAPTER 1

whatwetermcollaborativegovernancearemdashatendencytowardtershyminologicaluntidinessnotwithstandingmdashthoroughlymainstream8

Thenotionofacollaborativeeffortbetweengovernmentandtheprivate sector sits uncomfortably in many Americansrsquo minds OurconventionalconceptualmodelhasgovernmentdoingpublicworkbusinessdoingprivateshysectorworkandcharitablenonprofitsfillingthegapseachsectorcultivatingitsowngardenAndformanyyearsthisconceptionofdividedrealmswasareasonablyaptdescriptionoftherealworldHalfacenturyagothestandardpracticewasforgovshyernmentalactiontobecarriedoutbypublicemployeesworkingin

8Whilework in thisareavariesenormously inqualityoneentirelyrespectable (andreshylativelyearly)collectionisHarveyBrooksLanceLiebmanandCorrineSchellingedsPublicshyPrivate Partnership New Opportunities for Meeting Social Needs(Ballinger1984)EugeneBarshydachrsquosGetting Agencies to Work Together The Practice and Theory of Managerial Craft smanship (BrookingsInstitutionPress1998)dealswithintrasectoralcollaborationbutisotherwiseverymuchpartof the intellectual traditionweaimtoadvancehereStephenRathgebSmithandMichaelLipskyworkrelatedterraininNonprofits for Hire The Welfare State in the Age of Conshytracting(HarvardUniversityPress1995)asdoesJohnDDonahuersquosThe Privatization Decishysion Public Ends Private Means(BasicBooks1989)andpartsofThe Warping of Government Work (HarvardUniversityPress2008)OthernoteworthypublicshymanagementtextsthatconshytributetothisconversationincludeBarryBozemanrsquosAll Organizations Are Public Bridging Pubshylic and Private Organizational Theories(JosseyshyBass1987)DavidOsborneandTedGaeblerrsquosReinventing Government (AddisonshyWesley1992)DonaldKettlThe Next Government of the United States(Norton2008)andindeedmostbooksbyDonaldKettlPhillipCooperrsquosGovernshying by Contract Challenges and Opportunities for Public Managers (CongressionalQuarterlyPress2003)andLesterSalamonrsquoseditedThe Tools of Government A Guide to the New Govershynance(OxfordUniversityPress2002)especiallySalamonandRuthHooglandldquoPurchaseshyofshyServiceContractingrdquopp319ndash339StevenJKelmanldquoContractingrdquopp282ndash318andPaulLPosner ldquoAccountabilityChallengesofThirdshyPartyGovernmentrdquopp523ndash551RecentbooksandarticleswhoseconcernsandconclusionscomportparticularlywellwithoursorelseconshytrastwiththeminproductivewaysincludeKettlrsquosThe Transformation of Governance(JohnsHopkinsUniversityPress2002)StephenGoldsmithandWilliamDEggersGoverning by Netshywork The New Shape of the Public Sector(BrookingsInstitutionPress2004)RScottFoslerWorking Better Together How Government Business and Nonprofit Organizations Can Achieve Public Purposes through CrossshySector Collaboration Alliances and Partnerships (IndependentSector2002)ChrisHuxhamldquoTh eorizingCollaborationPracticerdquoPublic Management Review 5 no 3 2003 Ann Marie Thomson et al ldquoConceptualizing and Measuring CollaborationrdquoJournal of Public Administration Research and Th eory19no1(2009)DavidVanSlykerdquoAgentsorStewardsUsingTheorytoUnderstandtheGovernmentshyNonprofitSocialServiceContractshyingRelationshiprdquoJournal of Public Administration Research and Th eory17no2(2007)BarbaraCrosby and John Bryson ldquoA Leadership Framework for CrossshySector Collaborationrdquo Public Management Review7no2(2005)KeithProvanandHBrintonMilwardldquoAPreliminaryTheory of Interorganizational Network Effectivenessrdquo Administrative Sciences Quarterly 40(1995) and Rosemary OrsquoLeary and Lisa Blomgren Bingham eds The Collaborative Public Manager New Ideas for the Twentyshyfi rst Century(GeorgetownUniversityPress2009)



publicorganizationsandunderthedirectionofpublicmanagersPrishyvateplayerswhentheywereinvolvedactedinlimitedandsubordishynate rolesAs recentlyas themidshy1970sAmericarsquospublic sectormdashfederalstateandlocalcombinedmdashdevotedabout40percentofalloutlaystogovernmentworkersTodaythatsharehasslumpedtolessthan 29 percent9 reflecting a shift away from direct production tograntstransferpaymentsandcontractsTheformandthecomplexshyityofinteractionswiththeprivatesectorhavealsochangedFromashortandsimplelistofthestancesaprivateorganizationcouldtakein its dealings with governmentmdashconstituent contractor taxpayergranteelobbyistadvisermdashtherepertoireofpotentialroleshasgrownricher more sophisticated and not surprisingly more confusingPrivaterolesinproducingpublicvaluenowspanabroadspectrumfromsupplierswhomakeabuckmeetingthespecsofprocurementcontractstophilanthropistswhopursuethecommongoodattheirowninitiativeandontheirowntermsTheaccomplishmentofmanyandperhapsmostimportantpublicmissionsinthetwentyshyfirstcenshyturydependsonprivateforshyprofitandnonprofitorganizations

Yet wemdashpoliticians direct participants and the publicmdashtend tooverlookormisconstruethenatureandimplicationsof theprivatesectorrsquosinvolvementinpublicundertakingsThereisnobroadshybasedrecognitionofhowextensivecollaborationalreadyisandevenlessunderstandingofhowitdiffersfromotherformsofprivateinvolveshymentwiththepublicrsquosworkAnditistoooftenviewedthroughthedistortinglensofideologyDebatesoverthegeneralproprietyofprishyvate involvement in public work though perhaps entertaining aremostlyawasteoftime10TheconversationbecomesmeaningfulonlywhenitzeroesinonspecificgoalsspecificsettingsspecificactorsTh econditionsthatmakecollaborativegovernancetherightanswertobigquestionsmustbeunderstoodbothmorebroadly(bythepublicatlarge)andmoredeeply(byscholarsandpractitioners)Thiswillenable

9Thesepercentagesarecalculated fromOfficeofManagementandBudgetBudget of the United States Fiscal Year 2010historicaltable154andUSDepartmentofCommerceBureauofEconomicAnalysisNationalIncomeandProductAccountstable3105bothaccessedonshylineinlateMay2010

10JohnDDonahueldquoTheWrongQuestionaboutBusinessandGovernmentrdquoGoverningApril282010


10 CHAPTER 1

ustochooseitselectivelyfortheproperpublictasksavoiditwhenitisnottherightapproachandapplyitwiselywhereveritisused

Acrucialfirststepistorecognizethatmanyprivaterolesinpublicmissionsarenotmdashandshouldnotbemdashcollaborativebyourdefinishytion11IndividualcharitycorporatephilanthropyandotherformsofvoluntarismarerelatedtobutdistinctfromthetopicatissuehereInthesearrangementsdiscretionisnotsharedbutismonopolizedornearly soby theprivatepartiesWithinverywideparameters thechoices made by private individuals and institutions are presumpshytivelydefinedasfulfillingldquothepublicgoodrdquofortaxpurposesTh erearelimitstobesureNocorporatetaxdeductionscanbeclaimedforgifts topoliticalpartiesor to theCEOrsquosshiftlesscousinButwhileshareholdersmightquibbleovergrantstothechairmanrsquosalmamaterorthelocalpololeagueandtaxpayersmayresentindividualsrsquodeductshyiblegiftstoarcaneartisticcollaborativesorexoticreligioussectsthegovernmentitselfhasnomechanismtodenysuchgiftstaxshyfavoredstatus shortof thenuclearoptionofdiscrediting thecharity itselfThedonorhasdiscretionandthegovernmentdoesnotdespitethefactthatthepublicsectorisapartytotheundertakinginthatitsurshyrendersrevenueitwouldotherwisehavereceivedNodoubtthisarshyrangementpromotesoccasionsofwasteortrivialityorselfshydealingattimesbuttherearestrongreasonsforprotectingdonorsrsquodiscretionagainstgovernmentalsecondshyguessingonthemeritsofthemissionFewamongusforinstancewouldwantgovernmenttobeintheposishytionofdeclaringwhichreligionsareacceptableandwhicharenot12

A municipal government contracting with a private wasteshymanagementcompanyrepresentstheotherendofthespectrumDisshy

11ThemurkyboundarybetweenldquopublicrdquoandldquoprivaterdquoorganizationsposesachronicriskofimprecisionAgenerationagotwoscholarsobservedthataldquonumberofcompetingapproacheshavebeenusedtodefinethepublicshyprivatedistinctionandeachhasdifferentimplicationsToavoidcontinuingtheconfusionprovisionsfordefinitionmustbeconsideredinplanningforfutureresearchrdquoJamesLPerryandHalGRaineyldquoThePublicshyPrivateDistinctioninOrganishyzationTheoryACritiqueandResearchStrategyrdquo Academy of Management Review13no2(1988)185Thisisasensiblepleaoftenreprisedbyotherauthorsandgenerallyignored

12ThecomptrollerofTexasattempted tostripUnitarianismmdashoneofAmericarsquosoldestdeshynominationsmdashofitsstatusasataxshyexemptchurchin2004onthegroundsofexcessiveheteroshydoxy but reconsidered after mild local protests and louder national ridicule Ken HermanldquoUnitariansGetReligiousStatusafterIntercessionrdquoAustin AmericanshyStatesmanMay252004pBshy1



cretionrestsentirelywiththegovernmentThecompanyrsquoschargemdashtopickupthegarbageanddumpitatthelandfillmdashisexplicitcompleteandgearedtothegovernmentrsquosprioritiesIftownofficialswantthegarbage tobecollectedonFridays insteadofWednesdays startingwithMapleStreet insteadofElmor incinerated insteadofburiedgovernmentisatlibertytoalterthemandatesolongasitpaysupaspromisedSucharrangementsarecommonandwhenobjectivesarereadilydefinedandmeasuredarelikelytobeentirelyappropriateIncollaborativegovernancebycontrasteachpartyhelpstodetermineboththemeansbywhichabroadlydefinedgoalisachievedandthespecificsofthegoalitself

Collaboration in the Concrete

Chapterstocomebrimwithspecificexamplesofcollaborationbutafewquickpreviewsrightupfrontwillhelptoclarifyhowcollaborashytive governance differs from other ways of getting collective tasksaccomplished

A Park in Chicago

In the midshy1990s Chicagorsquos city government regained control of achoicedowntownparcellonglenttotheIllinoisCentralRailroadTh eplanwas tobuildamuchshyneededundergroundparking lot toppedwithturfandperhapsafewbenchesandstatuesInhopesoflightenshyingtheburdenonthecityrsquosbudgetMayorRichardDaleyapproachedlocalbusinessleaderJohnBryanaboutraising$30millioninprivatemoneytohelppayfortheprojectBryanacceptedthemayorrsquosbidforprivateinvolvementandraiseditmdashbutwithacrucialtwistHecalledformakingtheacresabovetheparkinglotaculturalshowplacenotjustagreenspacebylettingdonorsputtheirstamponaparticularpieceoftheparkinexchangeforsubstantialcontributions

IttookmoretimeandmoneythaneitherDaleyorBryanoriginallyexpectedbutthebasicstrategyofsharingdiscretiontomotivateprishyvatecollaboratorsworkedbrilliantlyChicagorsquoswealthiestfamilythePritzkers commissioned a fabulous Frank Gehry openshyair concert


12 CHAPTER 1

hall as the parkrsquos centerpiece Communications giant ATampT led aconsortium of donors to provide an elegant plaza surrounding aninstantlyiconicsculpturebytheupshyandshycomingartistAnishKapoorTheCrownfamilyhiredanedgyCatalanartisttodesignafountainforitscorneroftheparkOnoccasionthecityturneddownorinshysistedonrevisionstoaprivatecollaboratorrsquosproposalButChicagorsquospublicleadersgenerallygaverunningroomtofamiliescompaniesandindividualswhowantedtocontributereasoningthattheyhadeverymotive tomakesure theprojects towhich theirnameswereattachedwouldfindfavorwithChicagorsquoscitizensBythetimetheunshydertakingwascompletedmorethan$200millioninprivatemoneymdashitsimpactintensifiedbydonorsrsquoexpertiseandinfluencemdashhadpouredintothetwentyshyfourshyacreplotdwarfingthepublicresourcesdevotedtotheprojectAndfromthedayitopenedinmidshy2004MillenniumParkhasbeenwildlypopularwithChicagoansandvisitorsalikeaglitteringandhappilycrowdedcultural jewelattheheartofdownshytown (Millennium Park is discussed in detail on pages 264ndash271AnothernoteworthyvenueofcollaborativegovernanceNewYorkrsquosCentralParkfiguresprominentlyinchapter7wherewealsodiscusstheremarkablehistoryofthecityrsquosparkssystemasawhole)

A School in Massachusetts

OnadecommissionedarmybasefortyshyfiveminuteswestofBostonnearlyfourhundredmiddleschoolandhighschoolstudentsabsorbanupdatedmodelofprogressiveeducationatanunusualschoolEventhepeculiararchitectureoftheschoolsignalsitshybridstatusmdashtwoshystorymodularbuildingsboughtsecondhandfromanearbycollegeare stitched onto an old redbrick elementary school building StushydentsattheFrancisWParkerEssentialCharterSchoolcomefrommorethantwentycitiesandtownsdrawntoParkerrsquosdistinctivelyinshytensestrippedshydowncurriculumanditstraditionofcloseinteractionbetweenfacultyandstudentsAdvisorygroupsgathereverymorningtodiscussthedayrsquosworkandknititintotheacademicyearrsquosoverallplanTeachersofEnglishfineartsmathandtechnologyplantheirlessonstogethertopresentstudentswithanopportunityforintegrated



learningRatherthangivingmultipleshychoiceexamsParkermonitorsstudentprogressandreadinessforpromotionthroughtheexhaustiveevaluationofportfoliosofstudentworkThesefeaturesarecommonat thepricey exclusiveprivate schoolsmdashGrotonDeerfieldPhillipsAndoverWinsormdashoperatingelsewhereinMassachusettsButParkeris apublic school charteredby stategovernmentand fundedwithgovernmentmoneysomefromthestateandsomedivertedat thestatersquosdecreefromthecitiesandtownswhereParkerstudentsliveParkerwasfoundedin1994inthefirstwaveofMassachusettscharshyterschoolsbyahandfuloflocalparentsandeducationalreformers

ThetermsoftheschoolrsquosrelationshipwithMassachusettseducashytion officialsgiveParkera substantialbutnotunboundedrangeofdiscretionItcancreateatrademarklearningcultureandcallonallstudentstoembraceldquotheParkerWayrdquoButitcannotpickandchooseitsstudentbodyitisrequiredtodrawbylotteryfromapoolopentoevery schoolshyaged resident of the region It can follow its leadersrsquolightsinshapingacurriculumverydifferentfromthatoftheconvenshytionalpublicschoolButitmustsubjectitsstudentstothesamestanshydardizedtestsasdoeseveryotherMassachusettspublicschoolandmust submit toconsequences should its studentsrsquoperformance fallshort It can raise private grants to supplement the resources thatcomefromgovernmentButitcannotchargeanystudentadimetoattendParkeristhrivingwiththethrongofstudentswantingtoatshytendvastlyoutnumberingavailablespotsagrowingrosterofgratefulalumni and a stellar reputation among Massachusetts parents andeducators alike (TheParkerSchool andother charter schools getmuchfullertreatmentonpages79ndash103)

Protecting Ports with the Coast Guard

Bad things can and do happen at American ports During WorldWarIGermanagentsblewuptwomillionpoundsofEuropeshyboundammunitioninNewYorkrsquosharborravagingtheportareaandinflictshyingdamageontheStatueofLibertythatweakensitsstructuretothisdayButthepassageofmanydecadeswithoutseriousincidentslulledAmericansintoviewingportprotectionasasecondshyorderissueTh at


14 CHAPTER 1

complacencyendedabruptlyonSeptember112001Officialsandcitishyzensalikewerevividlyawareofthevulnerabilityofportspackedwithvesselscargoandpeople fromallaroundtheworldAnattackonportfacilitiescouldcripplecommerceSabotageatafueldepotoradocksidenaturalshygastankercouldobliteratebroadswathsofacityOranucleardevicecouldbe smuggledquietly throughanyof thecountryrsquos hundreds of ports to wreak cultureshychanging havoc anyshywhereinland

ItfelltotheUSCoastGuardtofigureoutawaytofixthevulnershyabilityItwaseasytoimagineanynumberofclumsycostlywaystodothejobNewlawsornewinterpretationsofexistinglawscouldmakeprivatepartiesstrictlyliablefortheconsequencesofanysecushyritybreachIfpolicytrulycouldimposeliabilityforeveryeventualityandifinsurancecompaniescouldcalibratewithprecisioneveryportshysideriskthenthedesireofshippersvesselownersandportopershyators tosecure liability insuranceat lessshythanshyruinousrateswouldinspireaneffectiveandentirelyprivatesecurityregimeButnoteventhemostardentfreeshymarketfundamentalistseriouslyproposedsuchanarrangementToomanythingshadtogorightformarketshydrivenport protection to work and the consequences of failure could becatastrophicAclassicallygovernmentalsecuritysystemwasanotheralternativeTheCoastGuardcouldringeveryharborwithacordonofarmedcuttersVesselswouldbeallowedtopassonlyaftertheGuardinspectedthemfrombowtosternlighttoensurethatneithercargonorcrewnortheshipitselfposedanydangerParallelproceduresonthelandsidewouldchecktheidentificationofallpersonnelandtheprovenanceofvehiclesandshipmentsarrivingat theportbyroadsubjectingeach to the samesortof thoroughsecurity scrubSucharrangementswouldnodoubtlowerriskssubstantiallyTh eywouldalsobestunninglyexpensive to thegovernmentandwouldcripplewaterbornecommercethusaccomplishingaspiringterroristsrsquoobjecshytiveswithoutevenrequiringanyeffortontheirpart

InsteadtheCoastGuardcreatedaportshyprotectionsystemthatwasthoroughlycollaborativeTherewasaroleforinsuranceshyinspiredprishyvateinitiativetobesureandaroleforarmedcuttersaswellButthemainstayofthesecurityregimewasanintricateskeinofprovisions



specifictoeachporteachprivatepartyandeachtypeofriskTh eCoastGuarddefineditsrolewithrespecttotheseprovisionsastwoshyfoldfirst relentlesslydemandingahigh levelof security for everyaspectofeveryportandsecondscrupulouslyreviewingproposedprovisions to ensure that they really did deliver the risk reductionthatprivatepartiesclaimedandthatthegovernmentrequiredWhattheCoastGuarddidnotdowasinsistonanyuniformmethodtobeappliedacrossthewholevariedspectrumofharborfacilitiesshipshypersvesselsandotherdiversecomponentsofhundredsofseparateoperationsByembracingthecollaborativeapproachtheCoastGuardsought (successfully by the inevitably partial evidence to date) tosquaretheimperativesofsecurityandsmoothcommercialoperationsatAmericarsquosports(TheCoastGuardrsquosportprotectioneffortsaredisshycussedinmoredetailonpp64ndash66)13

The Spectrum of Discretion

ThereisnothinginevitableorimmutableabouttheseexamplesInshydeeditwasnotfatedfortheretobeany substantialprivateroleinanyof these undertakings Governments can and generally do manageparksrunschoolsandprovidesecurityForpresentpurposesthoughwewanttodwellnotonthedividebetweendirectanddelegateddeshyliverybut ratheron thediversitywithin thatcategoryofdelegateddeliveryInsodoingweaimtoenrichyoursenseofwhatwemeanbycollaborativegovernanceandtomapthedomainitoccupieswithinourrepertoireforgettingthingsdoneThekeyonceagainisthealshylocationofdiscretion

WhatmarksMillenniumParkasacollaborativeenterpriseistheconsciousdecisiontoletprivateplayersexerciseinfluenceoverwhatkindofparkwouldbebuiltThisisbynomeanstheonlyoptionfora private role in theprovisionofparksRoughly10percentof thespendingonBostonrsquospublicparks(asof2007)forexamplewentto

13Wediscussportprotectioninevenmoredetail invokingametaphorthatweadore inldquoTheTummlerrsquosTaskrdquoachapterinaforthcomingvolumeeditedbyMarkHMoore


16 CHAPTER 1

hireprivatecontractorstoprovidepruningturfcarebuildingmainshytenance and other services While some cities including OaklandandRaleighrelyalmostexclusivelyoncityemployeestobuildandrun their parks in most places some degree of contracting is theunremarkablenormIncontrasttocollaborationhowevercontracshytorshewtothegovernmentrsquosprioritiesexercisinglittlediscretionontheirown

ProvidinganotherrevealingcontrastwithcollaborationasweusethetermarethoseparksandaspectsofparkoperationsthatfallattheotherendofthespectrumwithprivateactorsholdingmostofthediscretionBarelytwohundredmilessouthofMillenniumParknearthecenterofIndianapolisaswathofmanicuredgrassshrubsbenchesandpathswindsamongredbrickbuildingsTheterrainisunfenced neighborhood residents often stroll its greenswards SowhoisresponsibleforthisadmirablepublicparkItisactuallyneishytherpublicnoraparkTheappealingacreageispartoftheheadquarshyterscomplexofdruggiantEliLillyLillydesignedgreenspaceintoitscampuswithaneyetowardaestheticsandemployeemoraleTh entoencouragegoodcommunityrelationsitinvitedresidentstosharethespace

VoluntaryprivaterolesarecommontooinmanystrictlypublicparksSometimesindividualsorinstitutionsdonatetheirtimeexpershytiseormoneyastheirspiritsguidethemwithgovernmentplayingapassiveroleAtothertimestherelationshipmovestowardthemiddleofourspectrumandpublicandprivatecapabilitiesintermingleontermsofshareddiscretionChapter7exploressomeparticularlyworshythyexamplesinNewYorkCitybutsucharrangementsaresprinkledacrossmanylocalesInparksasinotherareasnosharpborderexistsbetweencollaborationandotherformsofprivateinvolvementButthespectrumofdiscretionprovidesameaningfulmetricofthedifferentwayspublicandprivateenergiesinteracttoadvancecollectivegoals

So too with schools In Massachusetts as in every other statemostprimaryandsecondaryschoolsaregovernmentrunOurfocusthoughisonceagainonthediversitywithinthebroadcategoryofprivateshysectorinvolvementLetrsquosstartthistimewiththeendofthespectrumfeaturingmostlyprivatediscretionHerewefindfamous



privateprepschoolsboundlikeanyother institutiontoobeystateenvironmentallawsandlocalbuildingcodesbutoperatingwithnearshycompletediscretiononspecificallyeducationalmattersWealsofinda much larger number of schools run by religious organizationsmdashmorethanfiftyRomanCatholicsecondaryschoolsaloneinjustthisonesmallishstateAndexemplifyingadifferentmodelwefindawelterofvoluntaryprivateeffortsinandaroundpublicschoolsfromPTAsandendlesssignshyuplistsforvolunteeractivitiestolocaleducashytional foundations that fund activities that schoolsrsquo public budgetscanrsquotTocontinuethetouragreatdealofprivateinvolvementinedushycationcomesontermsthatleaveallormostofthediscretioninthegovernmentrsquos hands Most public schools contract with the privatesectortoprovidefoodservicesortransportationormaintenanceorotherservicesinstrumentaltobutseparatefromthecoreeducationalmissionManyschoolsalsocontractforaccountingservicesteachertraininglibrarymanagementspecialeducationandotherfunctionsthataremorecomplexthanrunningasteamtableorschoolbusbutstillamenabletodelegationthroughawellshyspecifiedcontractOnlysomeexamplesofprivateinvolvementineducationinshortmdashindeedonlyarelativelysmallfractionmdashfeaturetheshareddiscretionthatdeshyfinesthemascollaborativegovernance

Table 11 illustrates how collaborative arrangements in the exshyamplesmentionedaresituatedwithinthebroaderterrainofprivate

TABLE 11 TheRangeofPrivateDiscretioninPublicMissions

Parks Schools PortSecurity

Discretionmostlypublic

Contractsformaintenanceturfcareetc

Contractsforfoodservicetransportetc

Contractsforsecuritypatrolsmonitoringtechnologyetc

Substantiallyshareddiscretion

MillenniumPark Charterschools CoastGuardndashorchestratedsecurityregime

Discretionmostlyprivate

CorporateparksTraditionalvoluntarism

SecularandreligiousprivateschoolsEducationfoundations

Securityarrangementslefttoshippersandportoperators


18 CHAPTER 1

involvementinpublicmissionsOurcentralconcerninthisbookistherangedefinedbythemiddlerowofsubstantiallyshareddiscreshytionthoughweremainmindfulof(andsometimesdetourinto)theneighboringrealmsofcontractandcharity

The Price of Collaboration

Theshareddiscretionthatisthehallmarkofcollaborativegovernancecan augment governmentrsquos capacity for accomplishing public misshysionsandincreasetheflexibilitywithwhichsuchmissionsarepurshysuedButshareddiscretionalsoextractsapriceAuthoritybecomesambiguous strategic complexity grows and accountability breakshydownsproliferateThecriticalquestionforpolicyiswhenthatpriceissmallandwhenlargerelativetothegainsachievedfromgrantingdiscretion When that price is small discretion should be sharedwhenlargeheldtight

ThesortsofarrangementswedescribeinthisvolumehavebeenusedtocreatepublicvalueforaverylongtimeandwillcontinuetodosointhefutureacrossabroadrangeofgovernmentalgoalsYetcollaborativegovernanceisoftenanimprovisedadhocaffaircobshybledtogetherbycreativepractitionersonatrialshyandshyerrorbasisSelshydomdoparticular instancesofcollaborationdrawfromoraddtoanycommonpooloflessonslearnedAssuchithasamixedrecordoften working exceedingly well but sometimes not so well at allWhenitsucceedsitproducessignificantpublicbenefitsasmostofourexampleswillshowButoftenitisusedwhenitshouldnrsquotbeorignoredwhenitshouldbeembracedEvenwhenitisappliedintherightsituationstheprocessmaybesoineptlydesignedthatitfailstoproducemuchbenefitAndwhenmisappliedorbungledinimpleshymentationitcandoseriousdamage

Given the economic events of the recent pastmdashincluding themassive governmental rescues of private companies that broughtthemselvestothebrinkthroughtheirowngreedorfollymdashitisundershystandablethatsomereadersmayinstinctivelyrecoilatthenotionof



grantingdiscretiontogovernmentrsquosprivatecollaboratorsSomemightseeourenterpriseasrepresentingeitheraprodigiousdegreeofimmushynitytoevidenceorelsecynicalcoverformoregovernmentsubsidiesandbailoutsFarfromit

Themessyfinancialrescuesof latearewebelieveonceshyinshyashylifetimeevents that inmost instancesexposecritical failures inpastgovershynanceIndeedwhilethefinancialbreakdownhadmanycauseshighonthelistwasconfusionoverthetruenatureofthelinksamongpubshylicandprivateactorsinthefinancialsystemKeyrelationshipsweredeeplycollaborativebythestandardswedevelopinthisbookButtheywerenotrecognizedassuchMisunderstandingbredmismanshyagementGovernmentdoledoutdiscretiontoprivateplayersonthebasis of custom convenience or ideology rather than disciplinedthinkingabouthowdiscretionshouldbeusedmdashandhowitmightbeabused Ensuring that the citizenry understands the prospects andrisksofpotentialinvestmentsforexampleisacrucialpublicmisshysionButgovernmentessentiallyturnedovertotheprivateratingsagenciesmdashsuchasMoodyrsquosandStandardandPoorrsquosmdashthetaskofinshyformingthepublicaboutthehealthoffinancialfirmsTh egovernshymentbelievedwithgoodreasonthattheseagencieshadthecapacitytoferretoutanddisseminatesalientfinancialfactsbutitpaidlittleheedtotheratersrsquoincentiveswhenemployingtheirdiscretion

DiscretionunmonitoredisfrequentlydiscretionabusedandsoitwashereTheagencieswerepaidbythefirmstheyratedNotsurprisshyinglytheyratedgenerouslyandinconsistentlySimilarlythegovernshymentassumedthat itcouldcountoneachfinancialplayersuchasLehmanBrothersorGoldmanSachstoinvestigatethefinancesandassureitselfofthesolvencyofthosewhoseobligationsitstoodbeshyhindorwhoseguarantees itacceptedButwitheachfinancialfirmtradingwithdozensofothersnonehadsufficientincentivetointenshysivelymonitoritstradingpartnersandraisethealarmintheeventofextremeorsystemicrisksThegovernmentstoodbymdashinsomecasesunder the illusion that its regulations really effectively controlledprivatebehaviorinotherscountingonprivateactorstodotherightthing of their own volition With no one rating the raters no one


20 CHAPTER 1

monitoringthemonitorsmdashinshortnorealgovernanceinthisputashytivegovernanceregimemdashnoonerecognizedhowflimsyourfinancialsectorhadbecome

ThateconomicdebaclemayinspiresometoinsistthatgovernmentforswearcorruptingentanglementswithataintedprivatesectorandcarryoutitsworkallbyitselfNotsurprisinglyAmericanslostconfishydence in every single private industrymdashsome dramaticallymdashin thewakeofthefinancialcrisis14whilesupportforconventionalgovernshymentalprogramsatleastbrieflysurged15Butsuchashibbolethagainstinvolving private players in public missions however understandshyablewouldbebothperverseandatwarwithwidelysharedvalues

Therightkindofdelegation is if anything evenmoredesirablethanithadbeenbeforethebubbleTheevaporationofsomuchnashytionalwealthalongwiththenearcertaintyofstraitenedpublicfishynances for years to come means we cannot afford to pass up anychancetocreatepublicvaluemoreefficientlyIfwearesmartmdashandluckymdasha new generation of the right kind of collaboration willemergefromthewreckageofmisbegottencollaboration

Targeting Collaboration

Noteverypublicgoal tobesurerequiresorcanbenefitfromcolshylaborationSomepublicfunctionsmdashimposingtaxesengagingindishyplomacyandconductingmilitaryoperationsmdasharebestleftasexclushysivelygovernmentalactivitiesOthersaresoprosaicmdashpavingaroadrunningamilitarymesshallmdashthatgovernmentneeddonomorethanletacontractPrivatediscretioncanrsquothelpandmaywellhurtAndstillotherpublicgoalsmaybestbe lefttocorporationsorcharitieswithlittleornogovernmentinvolvementatallButthatleavesavastmiddlegroundbetweentotalgovernmentcontrolandpureprivateinitiative that can benefitmdashoften immenselymdashfrom collaborationrightlyunderstoodandadroitlymanagedThechallengeisfirsttobe

14httpwwwharrisinteractivecomharris_pollindexaspPID=94015httpwwwharrisinteractivecomharris_pollpubsHarris_Poll_2009_01_13pdf



opentocollaborationandsecondtocarefullymatchmissionstotheright collaborative models Our aim simply put is to improve theodds that analystswill adviseandofficialswill adopt collaborationwherecollaborationmakesthemostsenseandthatpractitionerswillimplementcollaborativearrangementswith insight creativity caushytionand(theultimatebottomline)success

CollaborationcanbeanextraordinarilyusefultoolButtoooftenithasfallenfarshortofitspotentialOnecommonreasonisthatthegovernmentalorganizationsthatneedtotaketheleadinshapingandorchestrating collaborations suffer both a lack of imagination anda characteristicconservatismwhenitcomestodecidinghowtogetthingsdoneIdeologycanalsomilitateagainsthavingthepublicsecshytorgrantdiscretiontoaprivatecollaboratorButperhapsthebiggestreasonwhycollaborativegovernanceisunderemployedandundershyperformsisthatthoseinchargesimplydonotknowhowtodoitToofewpeopleunderstandthecriticalimportanceofmatchingtaskswithdelivery models and then calibrating the proper pattern of shareddiscretionforaccomplishingaparticulartaskFewerstillappreciatethemanagerialandanalyticalrequirementstoplanandcarryoutawellshyfoundedcollaborationTheresultisthatwecollaboratewhenweshouldcontract trusttophilanthropywhenweshouldcollaborateshunprivateengagementwhereitmakessensetopursueitandemshybraceitwheregovernmentshouldactaloneAndwhenwedocolshylaboratewhereweoughttocollaborateweoftenfailtofineshytunethearrangements in ways that obtain anything approaching all of theachievablebenefits

Even under the best possible circumstances collaboration posesspecialchallengesGeorgeandIraGershwinwerelovingsiblingsenshydowedwithastonishinglycomplementarytalentsmdashGeorgeformusicIra for lyricsmdashandwerebothbyall accountsdecentandagreeablemenTheystillarguedfordaysoverthedetailsofmeterandrhymeinthechorusofldquoFascinatingRhythmrdquo16Inlessidealcircumstancesmdashwhenaffinitiesbetweencollaboratorsareweakerhistoriesshorter

16Howard Pollack George Gershwin His Life and Work (University of California Press2007)p188


22 CHAPTER 1

futures lessforeordainedandinterests lessautomaticallyalignedmdashthechallengesmountThis is especially sowhenprivateactorsareenlistedtoadvancegovernmentrsquosmissionsAuthoritybecomesamshybiguouscomplexitygrows the temptationarises for theplayers toworkfortheirownendsratherthanforthosetheyareintendedtoserve and performance may be twisted to curry political favor orservepartisanendsTheresultsoftendivergefromwhatwasanticishypatedordesiredTheanswertomostquestionsabouthowcollaborashytionsbetweenthepublicandprivatesectorsworkorshouldworkstartswithldquoItdependsrdquoThisvolumewillprovidesomeguidelinesforfinishingthatsentencebyhelpingpractitionersfigureoutsystemshyaticallywhattheanswerdependsupon

Collaboration from the Governmentrsquos Perspective

CollaborationsnecessarilyhaveatleasttwopartiesandanystudyofcollaborativegovernancecantakeatleasttwopointsofviewthatofgovernmentandthatoftheprivatepartyWecouldhavesimplydeshyscribedhoweachpartyviewsacollaborationhoppingbackandforthfromoneperspectivetoanotherButwewanttogobeyondplayshybyshyplaydescription toofferpracticalguidelines formakingcollaborashytionsworkbetterThatambitionleadsustoviewcollaborationfromthegovernmentrsquosperspectiveOnereasonisaccidentalandrelativelytrivialweteachataschoolofgovernmentandthisistheviewpointtowhichweareaccustomed It isalso theusualperspectiveof theeconomicsprofessionwhereoneofushashishometurfandwheretheotheronefrequentlyvisitswhenpublicshyprivateinteractionsareassessed A more important reason is that in the rich countries ingeneralandtheUnitedStatesinparticularpeoplehavegottenquitegoodmdashtheoccasionalspectacularlapsenotwithstandingmdashatcomingupwithallkindsofsturdysophisticatedflexibleandeffectivewaystostructureprivateaffairsGovernmenthoweverlagsbehindinthisregard

ButthemostimportantreasonisthatweseegovernmentasaspeshycialsortofactorGovernmentatitsbestisauthorizedtodefineand



actuponbroadlysharedinterestsinwaysthatprivateorganizationscannotAlltoooftengovernmentisnotatitsbestorevenclosetoitRealshyworldgovernmentstendtofallfarbelowtheidealsketchedinajunior high civics textbook or even in a jaded university seminarroomThemechanicsofdemocracycanbreakdownandstiflecitishyzensrsquovoicesorcanbecorruptedsothatelectoraldemocracygivesweak or warped signals about what the citizenry values Flaws ofjudgmentonthevotersrsquopartordeceptiononthecandidatesrsquopartcanproducedulyelectedleaderswhosegoalsareatwarwiththemashyjorityrsquos true interestsAndofficialsandbureaucratscanwall themshyselvesofffrompublicaccountabilityandfeathertheirownnests

WedonotdisputethatsuchthingsoccurIndeedweprobablyhavebettershythanshyaveragefamiliaritywiththeflawsofgovernmentbothasscholars and as occasional practitioners As coauthors we occupysomewhatdifferentpositionsontheideologicalspectrumsowhatshyevertheturnoftheelectoraltidesthereisreliablysomethinggoingon somewhere in government that appalls at least one of us andfrequentlybothButwhilewelongagoshookoffromanticillusionsaboutthepublicsectorwecanrsquotjointhosewhocharacterizegovernshymentasjustanotherorganizedinterestcompetingforresourcesandlegitimacySometimesasneakercompanyoragardenclubreallydoesoutdoitspublicshysectorcounterpartsindefiningandcreatingpublicvalue but not often enough to warrant jettisoning the notion thatgovernmenthasthepotentialtobeauniquecategoryofactorTh eballot box equips government to aggregate interests in ways thatotherorganizationsmatchonlyoccasionallyandaccidentallyWheregovernmentisabsentweakorundemocraticmdashalessthancleancrishyterionwerecognizemdashthisgeneralizationcollapsesThusourconcepshytionofcollaborativegovernanceapplieschieflytoinevitablyflawedbutrelativelyhealthypolitiescharacterizedbyadecentrespectforthepreferencesofthecitizenry

While we address ourselves most directly to government howshyeverwemodestlyaverthatwehavemuchtosaytotheprivatesectorReadersfromthebusinessandnonprofitworldsarecordiallyurgedtojointheconversationandweexpecttheywillfindourexplorashytionofcollaborativegovernancebothcongenialandusefulAspiring


24 CHAPTER 1

collaboratorsfromtheprivatesectorwhoaimtoaidinthecreationof public value after all need to understand how smart strategicpublicofficialsviewthecraftofcollaborationsothattheycandefinetheircollaborativeroleswithaminimumofmisunderstandingTh egoodactorsontheprivatesidemoreovermdashwhichinourexperiencedescribesthevastmajoritymdashhaveanintenseinterestinmakingsurethat theirgovernment is smartandstrategicwhen itcomes tocolshylaboration and able to steer clear of the bad actors Th e bettershyequippedgovernmentistopicktherightprivatepartnersthesaferitwillbe tosharediscretionAndthemorediscretioncanbesharedwithout imperiling accountability the more scope there is for thekindsofflexibilityandinnovationthatcanmakecollaborativegovershynancesuchaboonSothe lessons laidoutherewillbevaluable towellshymeaningreaders fromtheprivatesectorbothtodeepentheirunderstandingoftheirgovernmentalcounterpartsandtomorereadshyilyfindorfashiontheirowncollaborativenichesOntheotherhandifyouareaprivateplayerhopingtohijackgovernmentrsquosagendawhileonlypretendingtocreatepublicvalueoracynicalofficialschemingtoexploitprivateidealismgoreadsomebodyelsersquosbookWedonrsquotaimtoabetsuchintentions

Our Goals for This Book

Collaborative Governanceismeantbothtoprovideaconceptualframeshyworkforunderstandingcollaborativegovernanceandtoserveasapractical guide to the design and implementation of collaborativeundertakingsWehopethatthelessonsofthisvolumecontributetomoresuccessfulandvisiblecollaborationsandthattheexemplarsitpresentswillprovecontagious

Oneofthemostimportantlessonswewanttoconveyhereistheneed to think differently about the responsibilities of governmentofficialsTheincreasingimportanceandsubtletyofprivateroles inpublicventuresmeanthatorchestratingcollaborationasopposedtomanagingagencieswillbeacorecompetencyforpublicmanagersAtonetimegoodgovernmentmayhavemerelyentailedrunningbushy



reaucraciesefficientlyandaccountablyNowtoalargeandgrowingextentitdependsonknowinghowtocapitalizeonprivatecapacityEfficiencyandaccountabilityremainbedrockcriteriaforpublicmisshysionsbuttheskillsrequiredtoreachthosegoalsmustmutatewiththeshiftfromdirectactiontocollaboration

Inthepagestocomeyouwillencountergovernmentsatvariouslevelsrelyingoncollaborativeeffortstopursueawiderangeofmisshysionsincludingresurrectingcityparksrunningschoolscertifyinghospitals aiding poor countries training unskilled workers andprotecting vital infrastructure Many of these collaborations workexceedinglywellAnumberareamixedbagwithsomeweakpointssomestrongpointsandsomequestionmarksAndsomecollaborashytionsworkquitebadlyindeedWehopeyoufindthemanycasestudshyiesinterestingilluminatingandmaybeevenfunButweseekneithertopraisenortoburyincriticismanyparticularattemptatcollabshyorativegovernanceWealsodonot seek toproducecutshyandshydriedrecipesforjustwhatpractitionersshoulddowhenseekingtoharnessprivatecapacitytopublicpurposesInsteadweaimtoteaseoutthegeneralprinciplesthatspandisparatecasesandthatcanserveasuseshyfulguidelinesforclearthinkingaboutcollaborativegovernanceWewill succeed if our account of Millennium Park in Chicago sparkssomeinsightsnotjustaboutparksinSanFranciscobutaboutparksinSeoulorindeedabouthealthcareinSomaliaorurbantransporshytationinSpainThemostvaluablelessonsaretheonesthatcanleapacrossbordersbothpoliticalandprofessional

Th isfirstchapterhasintroducedcollaborativegovernanceandexshyplainedtheparametersthatdistinguishitfromotherwaysofgettingpublicworkaccomplishedChapter2providesthefundamentalrashytionales for engaging in collaborationmdashto obtain better outcomesmoreresourcesorbothmdashaswellasreservationsaboutwhenandhowtouseitInchapter3ldquoTheDelegatorrsquosDilemmardquowepresentadeshytaileddiscussionoftheroleofshareddiscretionthedefiningfeatureof a fullshyfledged collaboration distinguishing among three formsofdiscretionProductiondiscretionisattheheartofsuccessfulcolshylaborationwhilebothpayoffandpreferencediscretionchannelselfshyservingmischiefthatcanunderminethebenefitsofcollaboration


26 CHAPTER 1

Thefourchaptersthatconstitutepart2delvemoredeeplyintothereasonscollaborationcanbesuchaneffective formofgovernanceChapter4explainshowcollaborationcanincreaseproductivitywhilechapter 5 examines the importance of informationmdashwho has itwhethertheycanandwillshareithowmuchitmattersmdashinmotivatshyingsomecollaborationsChapter6examinesthewaysinwhichusingtheprivatesectortoproducepublicvaluecanfosterlegitimacybothasagoaltosatisfythepublicoftheworthofanundertakingandasanenablerallowingustocreategovernmentprogramsthatdependheavily on the expertise and energy derived from private entitiesChapter7presents threecasestudies inwhichamajormotive forgovernmentrsquos opting for collaboration with private parties was thehopeofsecuringmoreresourcesforpublicendeavors

Part3approachescollaborativegovernancefromapracticalpointofviewChapter8ldquoTasksandToolsrdquooutlinestheskillsindividualsandgroupsneedtodeterminewhetherandhowcollaborationcanbeusedandtodesignimplementandmonitoraneffectivecollaborashytion Inchapter9weexaminereasonswhycollaboration isnrsquotpurshysuedwhenitshouldbeandreasonswhywhenattempteditsomeshytimesdoesnrsquotworkaswellasitshouldTh efinalchapterlooksattwocollaborationsoneofwhich(ChicagorsquosMillenniumPark)hasrackedup remarkable success even as the other (Americarsquos approach tohealthcare)hasfaredquitebadly

WehopeyoursquolldrawonyourownexperiencetomakeconnectionstothemissionsthatmattertoyouIfcollaborativegovernanceisthewaveoftodayandtomorrowmdashaswearepersuadedandaswehopetopersuadeyouaswellmdashletrsquoslearntoridethatwavewithskillgraceandaminimumofmishaps


4 CHAPTER 1

trend that is this bookrsquos focusmdashthe escalation of privateshysector inshyvolvementinundertakingstraditionallyconsideredtheprovinceofgovernment

Yet troubled timescanalsoofferopportunityWehavea toughshymindedpresidentwithbigideasandthecouragetosurroundhimselfwithsomeofthenationrsquosbestthinkersanddoersTheObamaadshyministrationcameintoofficewithamandatenotonlytorescuethecountryfrompressingthreatsbutalsotoimprovethewaygovernshymentworksButsuchimprovementparadoxicallyrequireslookingbeyondtheboundariesofthestateitselfThemagnitudeoftheprobshylemsandtheambitionofthegoalsthatmarkourerameanthatgovshyernmentonitsownisovermatched

TheObamaadministration itssisteradministrationsatthestateandlocallevelsandgovernmentstofollowinthefutureneedwhatthemilitarycallsaldquoforcemultiplierrdquosomesystematicwaytorampuptheimpactofgovernmentrsquoseffortsWebelievethatcollaborative govshyernancemdashcarefully structured arrangements that interweave publicandprivatecapabilitieson termsof shared discretionmdashcanbe thatforcemultiplier

Agenciesatall levels facearangeofopportunitiestocollaboratewithprivateactorstoachievepublicgoalsmoreeffectivelythangovshyernmentcanon itsownWhenwell applied thecollaborativeapshyproachcanbeapowerfulleverforcreatingpublicvalueButitisoftenmisunderstoodmdashconfusedwithconventionalcontractingorcharityormergedwithwoolyconceptionsofpublicshyprivatepartnershipmdashbypolicymakersandthepublicalike

Acarefulreviewoftheevidencefromgovernmentsmdashlocalstateand federalmdashconvincesus that theperformanceofAmericarsquosgovshyernmentwilloftenhingeonmakingthebestuseofcollaborativegovshyernanceItleveragesprivateexpertiseenergyandmoneybystrategishycallysharingcontrolmdashovertheprecisegoalstobepursuedandthemeansforpursuingthemmdashbetweengovernmentandprivateplayersThatdiscretionsimultaneouslymotivatesprivatecollaboratorstoenterthe public arena and empowers them to play their roles well Th ecollaborativeapproachunleashestheunpredictableresourcefulnessofanentrepreneurialcitizenrytodevisefreshandflexiblesolutions









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Private Roles for Public Goals

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Transcript of Private Roles for Public Goals