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Governing
by Network
A
quiet revolution is transforming the way
government delivers public services. Instead of
doing everything itself, governments are out-
source
more work to the private sector.
Governor
Mark R. Warner and Speaker William Howell talk
openly about making state government more
efficient and bringing more business-like
practices to agencies and programs.
Both say they want state government to
become more user-friendly and modernized.
These two powerful leaders seem to be in
general agreement.
And
many of Virginia’s
statewide candidates for governor and lieutenant
governor in both parties are campaigning on making
government more responsive, more efficient, and
less burdensome on the taxpayers.
But political rhetoric is cheap and the
real challenge is truly changing the way
government works.
I
recently had the opportunity to talk with two
fascinating experts on making government more
efficient. They
were practical, realistic and very optimistic
about the potential that faces government leaders
right now at the federal, state and local levels.
Former
Indianapolis Mayor Stephen Goldsmith and William
Eggers, director at Deloitte
Research-Public Sector, have written
a important new book,
“Governing
by Network.” The
publisher is the respected Brookings Institute,
normally labeled a “liberal think tank” in Washington,
D.C.
This
easy-to-read volume needs to be read by everyone
interested in better government and providing
government services in the more efficient and
effective way.
A
quiet revolution in the way government provides
services is taking place inside at all levels of
government. Government
executives are moving away from managing people
inside government who directly provide services
and toward coordinating services that are provided
by an array of public, private and non-profit
organizations.
Government
at all levels is finding that the public is better
served by various agencies more readily sharing
information and tasks.
The old “stove pipe” management model
(managing personnel in a top-down command system
and only in your specific division without
coordination with other agencies and departments)
is yielding to the philosophy providing the best
outcome to those who use government services.
New
computer-based management tools offer the ability
to substantially change the way government works,
and those tools will become more and more
effective over the next few years.
The “digital revolution” is making
collaboration easier between agencies and with
government grantees that provide services.
Goldsmith
and Eggers call this new approach “government by
network.”
What
this marvelous new book focuses on is this:
Government is relying more and more on
outside contractors, but doesn’t always know how
to manage these “outsiders” very well.
Examples of successes and failures are
peppered throughout this book.
Many
talk about reforming state and local government:
getting agencies to work together and reduce
duplication, promoting public-private partnerships,
delivering services through the private and
non-profit sectors. But government must learn how
to manage the outsourcing of traditional
government functions or the result could be
disappointing. Failures will create pressure to
“go back” to the olds.
Those
who want to see government reform the way it works
need to read this new book and read it carefully.
It is a guide to making government better.
And it carries with it a caution sign that
says: Be careful. Don't think that just by turning
a service over to the private or non-profit sector
that the result will automatically be better.
Management
of these outsourced contracts takes expertise.
Managing people inside government is not the same
as managing several delivery systems outside
government or between government agencies.
Leaders tasked with changing the role of
government must bring new management techniques to
the table, train and retrain current managers and
hire new managers with the requisite know-how.
As
state leaders implement a “more business-like
approach” to government, they must make changes
carefully. Each
agency needs to identify the public value it is
trying to create, what its policy goals are and
what role it plays in reaching those goals.
A careful design of the network of
providers is critical to determine how it is
managed and how the flow of information is to be
established.
Modern
technology is the glue that makes “governing by
network” successful, so up-to-date technology is
key to success. A
firm accountability system needs to be established
so that success and failure can be identified and
incentives introduced.
And, finally, government employee will need
to acquire new capabilities as the new system
takes root. These
changes will not come easily, but the end result
will be more efficient government that provides
better services at least cost.
“Governing
by Network” is a book that should be required
reading by every leader inside and outside of
government interested in dramatic and responsible
change.
--
December 13, 2004
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