Unlocking Public Value Unlocking Public Value A NEW MODEL FOR ACHIEVING HIGH PERFORMANCE IN PUBLIC SERVICE ORGANIZATIONS Martin Cole and Greg Parston John Wiley & Sons,Inc. Copyright © 2006 by Accenture LLP. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. 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Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley prod- ucts, visit our Web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data: Cole, Martin, 1956– Unlocking public value : a new model for achieving high performance in public service organizations / Marty Cole and Greg Parston. p. cm. Includes bibliographical references. ISBN-13: 978-0-471-95945-8 ISBN-10: 0-471-95945-6 (cloth) 1. Government productivity—Evaluation. 2. Public administration. I. Parston, Gregory. II. Title. JF1525.P67C65 2006 352.3—dc22 2006011222 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 For Vivienne Jupp, whose vision for this book and active participation made it happen. Contents Introduction ix Preface xiii Chapter 1 The Public Sector Squeeze 1 Chapter 2 Zeroing In on Outcomes 19 Chapter 3 Why Is It So Hard to Measure Public Value? 43 Chapter 4 Defining Value 61 Chapter 5 Measuring and Analyzing Public Service Value 83 Chapter 6 Driving Results 111 Chapter 7 The Key to Unlocking Public Value 133 Appendix Public Service Value Methodology 143 Notes 169 Bibliography 175 About the Authors 179 Index 183 vii Introduction Among the many admirable aims of the environmental movement, the one that strikes me as most useful to those in public services is captured by the motto, “Think globally, act locally.” In a public services career spanning more than 35 years, I have had a chance to look at public service systems in the Americas, Europe and Africa. I have been forcibly struck by the need to give substantial weight to the local political and cultural context of a particular system. You ignore a genuine understanding of these features at your peril: You, the public services administrator or elected official, must be seen to listen and pay attention to local priorities. In other words, act locally. At the same time, my experience in South Africa and Canada (which in key ways face vastly different challenges) and elsewhere is that there are some major global economic, human and social drivers that all politicians and public service adminis- trators need to take account of in their engagement with their citi- zens. Think globally. In Unlocking Public Value, Marty Cole and Greg Parston offer public services practitioners a unique tool to help them capture the mix of goals or outcomes, some reflecting local, some global, con- cerns, and measure performance in attaining these outcomes. Providing a framework and step-by-step process for defining these outcomes is one of the key achievements of the book. Since nearly all meaningful outcomes come at a cost to taxpayers, the measur- ing of outcomes occurs in the context of tracking not just costs, but cost-effectiveness as well. Following are some of the critical questions that I have found over the years underlie successful approaches to delivering public services around the world: • How do you improve the quality of public services? • How do you hold down the tax bill for public services, as few societies willingly agree to pay more? ix
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