Notes on Goldsmith,. S., Et. Al. (2004); Governing by Network

7/30/2019 Notes on Goldsmith,. S., Et. Al. (2004); Governing by Network

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Notes on Goldsmith, S., et. al. (2004); Governing by Network

Prepared by Ariadna73 Page 1 of 16

Thisbookisabouthowtheworldhaschangedsomuchthattheoldgovernmentmodel(hierarchy,bureaucracy)isnotusefulanymoreanditisleadingtotragedyandfail.Thebookwillarguethatweneedtolearnhowtogovernwithanetworkmodel,andthenwilltrytodescribethe"howto"forapplyingthenetworkmodel,usingexamplesofallkindsI. The rise of governing by network

1. The new shape of governmentExample: The "Presidio Park" (Alcatraz) near the Golden Gate in San Francisco has becomeless like a government-run park and more like a network of inter-locked public-privatepartnerships

Superintendent Brian O'Neill says that his job is to figure out who can make things happen in thebroader communityThis is a partner-centric approach

- They serve as a buffer between the park service and the nonprofits- Gives the nonprofits flexibility and freedom- Managing a governmental agency through networks requires different skills than traditional

government models

Public service people stop seeing themselves as doers, and start seeing themselves asfacilitators

It has been a great success, silencing the critics

New challenges, New governance modelPredominant in the XX Century: Bureaucracy, hierarchy

- Starts to fail when problems are more complex and global- Example: Homeland security is very complex, needing help from different entities

The complexity produces a new model of government- Core responsibilities are no longer managing and organizing resources- Agencies are not as much as service providers any more- Bad guys are organized in networks, and it takes a network to fight a network

Management challenges- The key now is the ability to manage partnerships and hold partners accountable- There is a very hard problem: managerial. The system is designed to operate in a

hierarchical model and now suddenly everyone wants they to manage networks!. And there isnowhere to turn for help or learning!

- But this book comes to the rescue!

The rise of Government by NetworkGovernment has used networks since the beginning of time, but things are changing now ant thereare four influential trends altering the shape of public sectors worldwide

Third party governmentThe government intentionally engage networks of providers to deliver public goodsRelationships are more complex than simple government-vendor outsourcingThis book concentrates in networks that require ongoing managing

The administration has steadily shifted to this modelContracts have jumped by 24% between 1990 and 2001Myriad of examples: from trash recollection to army services

The military portion is breathtaking and there are about two pages of extensive examplesThe environmental services are also a good exampleChild welfare is another example=In Florida, community-based nonprofits run the childwelfare systems

This tendency does not show signs of abating


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Joined-up governmentCreated to provide more integrated servicesA lot of examples in the UK, Australia, and US

In the US, the "No Wrong door" initiative: a person seeking state-services should find itbehind the first door they knock on (ha!)Another example: Homeland security, prompted by 9/11

The digital RevolutionThe cost of communicating information has decreased dramaticallyExample=The Dell company has a very efficient and low cost electronic data systemThe US military is experimenting with networks to bring expertise to the front in seconds

Consumer demand (Citizen choice)Since Bush, the initiative is to have the citizens decide what they want and how they want it

Government by network represents the synthesis of these four trends

Several examples: UK experiences, the NASA projects, Medicaid


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Chapter summary


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2. Advantages of the network modelThe networked model is becoming the king

In some industries the production network is the most important unit of competitionAdvantages over traditional hierarchical structures

Specialization: Companies can concentrate on their core mission and exploit the expertise of

"best of breed" providersInnovation: Networking encourages experimentation leading to innovationSpeed and flexibility: The more flexible the company, the faster the response. Networks tend tobe more flexible than hierarchiesIncreased reach: Connect more broadly for supplies and also for customers

Explanation of the Milwaukee's welfare programMoved from Hierarchy to networkingRight now the W-2 program is one for the most sophisticated networked government programs


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Chapter summary


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3. Challenges of the network modelThere were a myriad of complains in the Milwaukee's W-2 experience

Some partners made wrong use of the moneySome partners complained that they were being asked for too much in to little timeThings were difficult to monitor

The first step in governing networks is understanding the challengesGoal congruence: Not so simple

Goals of different actors can simultaneously overlap and differPerformance goals can be very different among participants that provide the same servicesThe missions do not always align well

Contorted oversightGovernments use the networking to offload the managing, and the result is lack of supervisionOn the other hand, governments may try to overuse their authority and try to micromanageproviders, leading to problemsGood oversight concentrates on outcomes, not processes

Communication meltdownWhen informal channels such as the "water cooler talk" are eliminated, the communicationbecomes difficultTechnology can play an important role in solving these communication problemsBut again, when technologies do not align, these efforts can be unfruitful

Fragmented coordinationWhen complexity is high and responsibility unclear, coordination problems appearGovernment must manage relationships with each providers and among organizations within thenetwork

Data deficits and bad benchmarksUnrealistic benchmarksTension among partners

Capacity shortagesGovernment starts to "hollow out" becoming less and less effective in managing even itscontractorsManaging requires a different kind of internal capacity

Relationship stability: Stable network relations lead to mediocrityImproving the odds

Certain conditions are better for networking and others are better for hierarchical model


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Chapter review


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II. Managing by network4. Designing the network

Networks don't just happen. They need to be designedIdentify possible partners

Bring all relevant stakeholders to the tableAnalyze the current in-house operationsDetermine and communicate expectations of how the network will functionAssemble and enmesh the pieces of the networkDevise strategies to maintain the networkFinally: Activate the network

Questions for the designerAccomplish WHAT?

This is a frequently neglected questionDetermine the Mission and strategy

Network designer must ask the right questionWhat outcome-based public value is the agency trying to create?

Determine the important public valueDo not define the problem or the answer trough historical processesCalibrate the design of the network to the desired outcome

Step outside the box

Which TOOLS use to form and activate the network?MoneyRhetoricCapacity to convenePeople and Technology ResourcesAuthority: Can be "loaned" through the network

WHO are the most appropriate partners? (A network is as strong as it weakest component)Factors change depending on the circumstances

Cultural compatibilityOperational capacity

CostSpecialized expertiseFinancial viabilityAbility to assume some risk

Proximity to the customerNeighborhood tiesLegitimacy

Who should integrate the network?A strong integrator has many abilities

Can coordinate activities

Handle problemsEnsure the provision of quality services

The integrator is the "hub"

Possible integratorsThe government

It has been the integrator by traditionBut has challenges


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How to choose the right networkWhat do you want to do?

Deliver a service?Provide Information?Build something?

Is the need ongoing or one-time?How much money is available?What is the relative importance of accountability versus flexibility?

How should the network be GOVERNED AND MANAGED?Officials must understand the limitsThey need to be careful whom they invite to the tableThe question revolves around labor issues and activities

What are the core values that government must protect?How can public officials maintain the integrity of these values?

Chapter summary


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5. Ties that bindHow do you tie together disparate organizations and discrete business processes into afunctioning network?Technology can help

But other issues have to be addressed tooPeople issues

Examining processesAligning valuesBuilding trust

Establishing communication channelsDigital connectionsCo-location

Public partnerships locate at least some of their employees and operations in the samespace


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Coordinating activitiesReduce transaction costs and build trusting relationshipsSynchronized ResponseVisibility

Reduces riskBetter decisions are made

Single view of the clientNetworking activities are decentralized, so the view of the client tends to be fragmented. Thisneeds to be correctedLack of interoperabilityPrivacy issues

Building relationshipsGovernance structures

Quickly identify and resolve any friction pointsset out the overall vision and strategy of the network

Sharing knowledgeNetworks foster organizational learning. There are two types of knowledge

Tacit knowledgeExists within the heads of the employees

Explicit knowledgeInformation-orientedManuals, symbols, facts

Barriers to knowledge sharingTacit knowledge provides the most valueTacit knowledge is extremely difficult to capture and transfer

What to doBuild infrastructures that promote the transfer of knowledgeRegular meetings, email, co-locationVirtual communities

Communities of practiceCreating trust and collaboration among sometime competitors

Create trust

Determine whether a consortium of providers which compete in some areas can cooperate on theproject


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Handling cultural differencesSharing decision-makingPresenting integration challenges

Chapter summary


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(The other chapter's summaries)Chapter 6: Networks and the accountability dilemma


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Chapter 7: Network governance


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Chapter 8: The road ahead

Documents

Notes on Goldsmith,. S., Et. Al. (2004); Governing by Network