Public Sector Structures PDF

Public Sector Structures 18.10.2024  Different eras in public management history Classic Public Administration (CPA) - Rooted in the late 19th and early 20th centuries, heavily influenced by Max Weber’s bureaucratic model. New Public Management (NPM) - Emerged in the 1980s...

Public Sector Structures 18.10.2024  Different eras in public management history Classic Public Administration (CPA) - Rooted in the late 19th and early 20th centuries, heavily influenced by Max Weber’s bureaucratic model. New Public Management (NPM) - Emerged in the 1980s as a response to the perceived inefficiencies of the CPA model, driven by neoliberal ideas and the rise of market-based governance, especially in countries like the UK, New Zealand, and Australia. Neo-Weberian State (NWS) - Emerged in the late 1990s and early 2000s as a reaction to the limitations of NPM, especially in European contexts. It seeks to blend elements of Weberian bureaucracy with lessons from NPM.  Comparison Classic Public New Public Neo-Weberian State Aspect Administration (CPA) Management (NPM) (NWS) Central and directive Limited role; Strong but collaborative Role of the State role emphasizes privatization role Hierarchical but Organizational Hierarchical, rule-based Decentralized, flexible, modernized and Structure bureaucracy performance-oriented responsive Subjects, passive Customers, with choice Citizens as partners in Citizen’s Role recipients and expectations governance Balance of both: Process-oriented, formal Results-oriented, focus Management Focus outcomes and rule of procedures on outcomes law State-led, but with Public-Private Blurred boundaries, with Clear separation private sector Interface privatization collaboration Decentralized, Top-down with citizen Decision-Making Top-down, politician-led managerial discretion engagement Legality, Impartiality, legality, Efficiency, competition, Values Emphasized professionalism, citizen  How different things are done in different theories – Public Management Paradigms (Pollitt and Bouckaert) Organization Human Resource Performance Financial management Manag. management Classic PA – - homogeneous - tenured careers - scientific management - incremental, line-item hierarchy, hierarchies - promotion by seniority type rationalization and budget legality, - large organizations & qualification (career efficiency (mostly - full cash basis predictability - top-down power, system) implementation and accounting – compliance decisions, information - unified civil service internal management; of spending (absorption flows (regulations, culture) policy-making through ex- & overview of cash, - coordination through ante CS system) spending, legality) hierarchy/regulation New Public - specialization & - decentralization & - Extensive PM – from, Super-budgeting Management – agencification delegation inputs & outputs to To increase perf through marketize, - decreasing the size via - contractual HRM outcomes, effects budget: more break-ups, delegation, - towards position - Intensive PM – from - add perf information competition & contracting-out systems support function to key DM - perf budgeting private sector - centralize to - public-private salary factor - timing and sequence management decentralize competitiveness - External PM – - economies of scale in - perf contracts, senior accountability to - double-entry and management/admin executive services, de- legislature, public, accruals accounting – - coordination via privilegization (money) international community understanding the role markets, contracts and peers and perf of organizations Neo-Weberian - agencification rethought - professionalization - less command and control - use above techniques State - - coordination within (general and field skills) way of using perf for better control and modernize existing administrative - moderation of NPM information; expression of public  New movement: expert organizations & charismatic networks 1. New “things” (and capabilities) emerge through “charismatic” dynamics: from charismatic individuals to charismatic networks 2. If “successful”, these capabilities become “routinized” in some organizational configurations: “expert” organizations (and long-term capacities) 3. Sometimes (due to feedbacks, managerial choices, external pressures), they might break back, be broken back, or be taken over by new forms/confugurations of “charismatic” dynamics  Entreprene Machine Diversified Professional Innovative urial Organizati Simple; Centralized ‘Divisions’ loosely Bureaucratic, Fluid, organic, onal informal; bureaucracy; coupled together decentralized; selectively routines flexible; little formalized; under pigeonholes’ for decentralized staff or middle- specialized headquarter professional ‘adhocracy’ level hierarchy work, division autonomy (task forces) of labor Strategic Visionary, Planning that is ‘Corporate’ Stable and also Largely managem flexible, strategic portfolio strategy many fragmented emergent, ent leadership programming and divisions with strategies by evolving through routines based individual professional a variety of strategies judgment and bottom-up Organizational Personnel Limited Standardized Divided between collective choice Dependent on processes Variety and mix variety: managem personnel, no work and skills headquarter and training to of skills, stability and agility ent routines systemic routines, needs and recruitment autonomous divisions standardize the skills of its openness to learning and oriented based processes professionals experimentation organizational Financial development Flexible; Efficiency and Autonomous Mixed; based on Flexible, not designs managem emergent process divisions, output professional efficiency ent oriented oriented autonomy oriented routines Coordinati Direct Standardization Standardization of Standardization of Mutual on supervision of work outputs skills adjustment routines processes Location Peripheral or Central policy Central/core Specialized Peripheral or in within machine implementation policy units service providers new domains, or and/or units with (whole policy (between core as parts of diversified public fields) and periphery) machine/diversif organizations accountability ied organizations Capabilitie Simple/initial Efficiency, Concentration of Professional Learning and s developments transparency, different focuses proficiency complex and changes accountability innovations Trade-offs Responsive, Efficient, Autonomy, Democracy, Innovative, with mission VS reliable VS diversity VS autonomy VS effective VS  Stability vs Agility We need the balance in three areas: organizational structure, which defines how resources are distributed (structure/home vs teams/networks) governance, which dictates how decisions (big, frequent, daily) are made; and processes, which determine how things get done, including the management of performance. Skills and capacity  Management/Leadership ACTIVITY LEADERSHIP POSITION SCOPE - Core operation - Topp management - General mangement - Different tasks - Middle management - Specialized management - First-line management STRATEGIC LEVEL TOP Environment, goals, strategy, MANAGEMEN organisational structure T MIDDLE TACTICAL LEVEL MANAGEMENT Coordination, avoidance OPERATIVE LEVEL FIRST-LINE MANAGEMENT Execution, evaluation Source: R. Üksvärav „Organisatsioon ja juhtimine“  Policymaking competencies Source: Competence frameworks for policymakers and res  Ethics and values The purpose of a public official's work is to act honestly and with dignity for the benefit of the state and society. A holder of public authority is guided in their actions by the ethical values outlined in the civil service code of ethics. The most important values of a good public official are: Legality Human-centeredness Trustworthiness Expertise Impartiality Openness and cooperation  Dynamic capabilities Sense-making skills: analytical, assessment, information- gathering and processing routines that enable new learning, appraisal and evaluation patterns. These routines can relate to analysing outputs and outcomes (value), as well as the internal performance of an organisation. Connecting skills: networking and boundary-spanning routines that enable new networks and coalitions of internal and/or external stakeholders to be built. The routines help to (re-)build legitimacy and buy-in for new solutions. Shaping skills: routines to design and implement specific new directionality for an organisation or policy area, embed and mainstream new solutions into long-term routines, either in policy or in management, and be able to provide resources and support for new initiatives. Source: The landscape of innovation appr oaches | States of Change (state Discussion: What kind of skillsets do you practice? Future qualifications – OSKA raports Source: OSKA - OSKA studies - Estonian Qualifications Authority (kutsekoda.ee)  Future qualifications – OSKA raports OSKA study of accounting and business consultation: Future skills include data mining, analysis, and interpretation, information and data visualization, critical thinking, oral and written expression, and project management skills. The growing need for generic skills most often highlights analytical and critical thinking skills, as well as communication skills needed for advisory work. During volatile times and rapid changes, companies value employees with good self- management skills and adapting to changes. Source: OSKA - OSKA studies - Estonian Qualifications Authority (kutsekoda.ee)  OSKA (2021). Forecasts the need for Estonian labour force and skills Understanding the Understanding ICT basics of service field in general design Understanding the Acknowledging the business logic trends in field of technology and ability to implement them Evaluating and Ensuring mitigating cyber Analysing and interpretation of big interoperability of threats and risks systems data Digital skills  Status quo + There is a (digital) skills gap: + Unclear expectations, lack of mutual understanding IT & Business (business owners and IT stakeholders; role of civil servants) + Shortage of ICT-professionals in the labour market + Year 2027 general forecast: there is a need for Policy- 18 000+ ICT-specialists (across all sectors) making + Public authorities perceive the need to contribute Non-IT support skills development more systematically, but: (legal, finance, HR) + Maturity varies by government area, management level and position + Expectations and habits related to the availability of Policy learning and the need to learn together have changed implementation (access to knowledge when it is really needed in a working situation) External support (procurement) + Lack of evidences and systematic approach for training activities planning Citizens, companies What are the relevant skills and knowledge that every public servant should be aware of? Let’s play kahoot! BREAK! Recap for the exam Exam: 40% of deliverables Exam times: 25.10.24 at 10.00-11.45, room S- 236 20.12.24 at 10.00-11.45, room T- 223 24. 01.24 at 10.00-11.45, room T- 223 Written closed book exam 3 questions: 2 fact questions 1 open question/mini essay Topics 6.09 Lecture Introduction to public sector management, policy covered making in the 13.09 Lecture Strategic planning, course Crisis management, Analysing methodologies 20.09 Lecture Public secrtor reforms, Change management e-Government and digital transformation 27.09 Lecture Public sector innovation, public private partnerships 4.10 SEMINAR 11.10 SEMINAR 18.10 Lecture Public sector competences, skills Definitions and key concepts to remember Public … includes management in Sector general and organisational management Managem Political pressure and will Dynamism ent Diversity Complexity Processes and routines Organisational structure and culture … (re)distribution of welfare, regulation and goals Tax - service vs tax - benefits  Different eras in public management history Classic Public Administration (CPA) - Rooted in the late 19th and early 20th centuries, heavily influenced by Max Weber’s bureaucratic model. New Public Management (NPM) - Emerged in the 1980s as a response to the perceived inefficiencies of the CPA model, driven by neoliberal ideas and the rise of market-based governance, especially in countries like the UK, New Zealand, and Australia. Neo-Weberian State (NWS) - Emerged in the late 1990s and early 2000s as a reaction to the limitations of NPM, especially in European contexts. It seeks to blend elements of Weberian bureaucracy with lessons from NPM.  Comparison Classic Public New Public Neo-Weberian State Aspect Administration (CPA) Management (NPM) (NWS) Central and directive Limited role; Strong but collaborative Role of the State role emphasizes privatization role Hierarchical but Organizational Hierarchical, rule-based Decentralized, flexible, modernized and Structure bureaucracy performance-oriented responsive Subjects, passive Customers, with choice Citizens as partners in Citizen’s Role recipients and expectations governance Balance of both: Process-oriented, formal Results-oriented, focus Management Focus outcomes and rule of procedures on outcomes law State-led, but with Public-Private Blurred boundaries, with Clear separation private sector Interface privatization collaboration Decentralized, Top-down with citizen Decision-Making Top-down, politician-led managerial discretion engagement Legality, Impartiality, legality, Efficiency, competition, Values Emphasized professionalism, citizen  Public administration vs Governance Public Administration: The implementation of government policy and the management of public programs and services, including the planning, organizing, directing, and controlling of government operations. PROCESS ORIENTED Governance: The processes, systems, and practices by which entities are directed and controlled. In the public sector, this often refers to the way public institutions conduct GOAL public affairs, manage public resources, and ORIENTED consider stakeholder interests.  Public vs private management Public Private Industry Trends Administration Organisational Bound by law and Autonomous goal Customer goals political desicions definition orientation In the interest of Market and profit people and oriented societal wellbeing Organizational Binding norms and Big scope of action Process structure detailed organisation regulations Deregulation Small scope of Standardisation/ action certification Economic efficency Focus on costs Focus on profit Target costing Strict budgets Long term Process costing Financial weakness integrated planning  Public management and politics Legitimacy of Executive Power: Parliament grants legitimacy to the executive by establishing laws and policies that govern public administration. Role of Public Administration: Public administration focuses on practical implementation, executing policies and programs in alignment with political goals. Feedback Loop: Political decisions inform administrative actions, while administrative feedback can influence future political considerations and reforms.  Politics vs policy Policy: A deliberate system of principles or guidelines that govern decisions and actions within an organization, institution, or government. It serves as a framework for addressing specific issues, setting objectives, and outlining strategies and procedures for implementation. Policies can be formalized in documents, such as laws, regulations, or organizational guidelines, and are designed to provide direction for decision-making. PROCESS Politics: the activities, processes, and interactions associated with ORIENTED governance and the exercise of power and authority within a society or organization. Politics often involves the interplay of differing interests, ideologies, and values in shaping public affairs and governance. It influences decision-making and policy outcomes. GOAL ORIENTED  What is policy making? The process by which government translate their political vision into CREATIVITY programmes and actions to deliver „outcomes“ – desired changes in ANALYTICAL the real world. SKILLS A course or principle of action adopted or proposed by a COMMUNICATIO government, party, business or N SKILLS individual.  Policy tools Regulatory Information Incentive-based Laws and regulations Public awareness Performance-based funding campaigns Standards and codes Research and data Rewards and recognition Economic collection Capacity building Taxes and subsidies Market-based Training and educational Grants and loans Cap-and-trade systems programs Certifictes or credit Techical assistance Administrative Collaborative Self-regulation Programs PPP Voluntary agreement Public procurement Stakeholder engagement Code of practice Co-regulation  Stakeholder engagement What is the difference of: Real consultation and selling Consultation and totally open debate? Read more: Kaasamise hea tava | Riigika ntselei Koosloomeranits | Riigikants Levels of engagement Johnson, Scholes and Wittingham’s Stakeholder Mapping Theory Strategic management vs planning Strategic Planning defines an organisation's strategy or direction and making decisions on allocating resources to pursue this strategy. It involves setting long-term goals and determining the Strategic actions required to achieve those goals. management PROCESS ORIENTED Strategic management involves developing and Strategic implementing plans to help an organization achieve planning its goals and objectives. Extends strategic planning by focusing on the execution and continuous monitoring of the strategy to ensure that organizational GOAL ORIENTEDgoals are met  Global Trends Global trends refer to significant, pervasive developments or changes that are occurring around the world, influencing societies, economies, and environments over the long term. Influenc Push Innovat Deny Prepare Mitigate Adapt e forward e  Strategic foresight The purpose of strategic foresight is to equip Strategic governments and societies management with the capacity to explore Strategic and prepare for multiple planning plausible futures and associated opportunities Strateg ic and challenges, spurring new foresig thinking and assessing that ht strategic plans and endeavours are future-ready.  Different type of changes Technological change Digital transformation Automation and AI Policy and Regulatory change, i.e. Sustainability and Climate Policy Health and Social Policy Reform – health crises, digital health systems, interoperability Data Privacy and Cybersecurity Regulations Governance and Organizational Change Decentralization and Local Empowement PPP Results-oriented management  Different type of changes Incremental Reform Transformation Core question How can we do more of What rules shall we How do I make sense of the same? create? this? Are we doing things What structures and What is the purpose? right? processes do we need? How do we know what is best? Purpose To improve performance To understand and To innovate and create change the system and previously unimagined its parts possibilities Power and Confirms existing rules Opens rules to revision Opens issue to creation of new ways of thinking relationships about power Archetypical Copying, duplicating, Changing policy, Visioning, mimicking adjusting, adapting experimenting, actions inventing Negotiation logic Mediation logic Envisioning logic  Differences in public and private sector PUBLIC SECTOR PRIVATE SECTOR Public good, compliance, policy Profitability, efficiency, Objectives & Priorities goals competitiveness Citizens, government, unions, Stakeholders & Shareholders, customers, elected officials Accountability employees Slow, bureaucratic, consensus- Speed & Agility Fast, flexible, market-driven driven Risk-averse, political/public Risk-taking, market-driven Risk Tolerance scrutiny experimentation Hierarchical, resistant, civil Culture & Organizational Dynamic, performance-driven, service culture Complexity adaptable Government mandates, Competitive pressure, Motivation for Change regulatory needs innovation, profit Source: Leading Change.pdf (multiscreensite.com)  Kotter Change Stages 1/3 Stage Actions needed Pitfalls ESTABLISH A SENSE OF Examine market and competitive Underestimating the difficulty of URGENCY realities for potential crises and driving people from their comfort untapped opportunities. zones Convince at least 75% of your Becoming paralyzed by risks managers that the status quo is more dangerous than the unknown. FORM A POWERFUL GUIDING Assemble a group with shared No prior experience in teamwork COALITION commitment and enough power to at the top lead the change effort. Relegating team leadership to an Encourage them to work as a HR, quality, or strategic-planning team outside the normal hierarchy executive rather than a senior line manager CREATE A VISION Create a vision to direct the Presenting a vision that’s too change effort. complicated or vague to be Develop strategies for realizing communicated in five minutes that vision.  Kotter Change Stages 2/3 Stage Actions needed Pitfalls COMMUNICATE THE VISION Use every vehicle possible to Undercommunicating the vision communicate the new vision and Behaving in ways antithetical to strategies for achieving it. the vision Teach new behaviors by the example of the guiding coalition. EMPOWER OTHERS TO ACT Remove or alter systems or Failing to remove powerful ON THE VISION structures undermining the vision. individuals who resist the change Encourage risk taking and effort nontraditional ideas, activities, and actions. PLAN FOR AND CREATE Define and engineer visible Leaving short-term successes up SHORTTERM WINS performance improvements. to chance Recognize and reward employees Failing to score successes early contributing to those enough (12-24 months into the improvements. change effort  Kotter Change Stages 3/3 Stage Actions needed Pitfalls CONSOLIDATE Use increased credibility from Declaring victory too soon—with IMPROVEMENTS AND early wins to change systems, the first performance improvement PRODUCE MORE CHANGE structures, and policies undermining Allowing resistors to convince the vision. “troops” that the war has been Hire, promote, and develop won employees who can implement the vision. Reinvigorate the change process with new projects and change agents. INSTITUTIONALIZE NEW Articulate connections between Not creating new social norms APPROACHES new behaviors and corporate and shared values consistent with success. changes Create leadership development Promoting people into leadership and succession plans consistent positions who don’t personify the with the new approach. new approach  Emotional Barriers to Change Mistrust and low sharing of useful and timely information – A “politics first” mentality that prizes appearance management above action. This causes a situation where no one wants to be the bearer of bad news. Problems will come to leaders’ attention only when it is too late. Strategic alignment is further hindered by information-hoarding among players who see their colleagues as competitors. Low receptivity to effortful change – Effortful change is easy to profess, difficult to do. Leaders must demonstrate their own willingness and ability to change before asking it of others. More talk than action, then misaligned action – Communication for intellectual understanding does not elicit emotional engagement to implement the new strategy. When leaders fail to inspire the collective toward a common goal, each team will tend to veer off in its own direction. It becomes impossible to integrate all the silos. Mechanistic action – When under high time and performance pressure, employees become creatures of habit rather than taking risks to become innovative. Complacency – Confronted with the potential effort and risk of strategic change, the organisation as a whole believes the status quo is good enough, so why do the hard work to change it? Tuckman’s Stages Behavioural To achieve desired public outcomes, insights (BI) governments around the world are using behavioural insights in the development of public policies. Behavioural insights inform public institutions by combining knowledge and research methods from behavioural science fields such as: psychology, economics, sociology, and neuroscience. Insights gained into how people actually behave can help inform public policy levers, potentially yielding more effective and representative policies and programs. Behavioural insights (BI) Messenger – we are Priming – we are heavily influenced by who influenced by unconcious communicates information cues Affect – our emotional Norms – we are strongly associations can powerfully influenced by what others shape our actions do Commitment – we seek to Defaults – we „go with the be consistent with our flow“ of pre-set options public promises, and reciprocate acts Salience – our attention is Ego – we act in ways that drawn to what is novel and make us feel better about seems relevant to us ourselves Crisis… … is an unexpected and significant event or situation that creates a high level of uncertainty, poses a serious threat to the stability or functioning of individuals, organizations, or communities, and requires immediate response and decision-making to mitigate its impact. Crises typically involve risks that can lead to severe consequences if not addressed promptly and effectively - communication.  Where do crisis come from? Internal Technical- Human- economic organizational- factors social factors Source: C. Lemonakis, A Zairis „Crisis Management and the External Public Sector: Key Trends and Means of Crisis Management mitigating Plan Risk assesment the impact of a crisis Communication Plan Training and drills Resource allocation Digital …the integration of digital technologies, trasformati processes, and data-driven strategies into government operations and on in services to improve efficiency, transparency, accessibility, and citizen public engagement. This transformation involves sector… modernizing legacy systems, automating processes, enhancing public services through digital platforms, and fostering a culture of innovation. It aims to create more responsive, efficient, and inclusive governance, while addressing challenges like cybersecurity, privacy, and digital inclusion for all citizens. Digital …is about building a new trasformati type of organisation around on in internet-era principles, not adding technical complexity public to try and fix analogue sector… organisations. It means changing how organisation runs itself in the background at least as much as changing what its users actually see. Digital state/digital society …a society or government that extensively integrates digital technologies into its public services, governance, and everyday interactions. In a digital state, citizens interact with the government, businesses, and each other through digital platforms and services, allowing for more efficient, transparent, and accessible public services. NB! digital governance does not minimise bureaucracy; instead, it merely transitions it into the digital sphere. 10 principles of service design and delivery 1. Identify the user's real problem and need. 2. Involve a team with diverse knowledge and innovative people. 3. Simulate possible solutions and choose the best one. 4. When considering solutions, also look to the future. 5. Create a necessary and simple service. 6. Develop the service together with users and other stakeholders. 7. Ensure interoperability, reuse existing solutions, and make your creation accessible to others. 8. Work agile. 9. Make and keep the service secure and transparent. 10.Manage your service. Source: Digiteenuste 10 käsku Key Challenges with Digital Transformation 1.Lack of Clear Distinction: There is confusion between digital transformation and public administration reform, causing ambiguity in policy formulation. 2.Decentralized Governance: The fragmented digital approach leads to inconsistent outcomes across ministries, lacking a unified vision and clear standards. 3.Legacy Systems: Outdated legislative and governance models hinder the full potential of digital transformation. 4.IT Over Strategy: The focus on technology over business architecture leads to inefficient service design and delivery. 5.Lack of Administrative Capacity: Civil service struggles with inadequate capacity to drive and manage digital initiatives effectively.  What is innovation? Innovation: a new or improved product or process (or combination thereof) that differs significantly from the unit’s previous products or processes and that has been made available to potential users (product) or brought into use by the unit (process). Invention: a new or improved product or process (or combination thereof) that differs significantly from the unit’s previous products or processes and that has been made available to potential users (product) or brought into use by the unit (process). What is public sector innovation? K as Foundation, but not Knowledge necesarily R&D Characteristics that were not Novelty previously made available to Initative users Implementation and Distinct from ideas or ivnentions actual use Intention vs reality Broad notion of value: address Value creation needs Predictive validity What is innovation? Radically disruptive – Innovation that harnesses new technology and creates a new business model. Has no clear competitors. Radically sustaining – Improvement on a product or process in an existing market that provides new value for the customer. Incrementally disruptive – An incremental improvement in technology that leads to a dramatic disruption. Incrementally sustaining – Small and cumulative changes in an existing product, technology or service. Source: Innovation Portfolios - Observatory of Pub lic Sector Innovation (oecd-opsi.org)  Enhancement-oriented innovation … upgrades practices, achieves efficiencies and better results, without significantly altering the current system. It starts with the question: “How might we do X better?” The challenge: Rapid technological change, austerity policies and rising expectations of government services have put the public sector under increasing pressure to serve citizens better, faster and more efficiently, all while minimising costs. Public sector organisations must enhance their current operating systems continuously, while at the same time demonstrating greater efficiency, user-centricity and value for money.  Adaptive innovation … tests and tries new approaches in response to a changing operating environment. In environments demanding both stability and the need to act quickly, such as during crises, adaptive innovation supports public administrations by simultaneously strengthening resilience and building adaptive capacity.  Anticipatory innovation The nature of the issues that governments are confronted with today is volatile, uncertain, complex and ambiguous. Governments need to consider variety of scenarios and act upon them in real time. Public sector needs to prepare for what is coming next, continuously identify, test and implement innovative solutions to benefit from future opportunities while reducing the risks through increased resilience of their public systems. Messy wicked issues wicked problems seem incomprehensible and resistant to solution (Churchman, 1967; Rittel & Webber, 1973), Every problem interacts with other problems and is therefore part of a system of interrelated problems, a system of problems... I choose to call such a system a mess... The solution to a mess can seldom be obtained by independently solving each of the problems of which it is composed... Efforts to deal separately with such aspects of urban life as transportation, health, crime, and education seem to aggravate the total situation. (Ackoff, 1974, p. 21, italics in original) Head, B. W., & Alford, J. (2015). Wicked problems: Implications for public policy and management. Administration & society, 47(6), 711- 739. Types of problems Type 1 - both the definition of the problem and the likely solution are clear to the decision maker (e.g., the manager or policy expert). Type 2 - definition of the problem is clear, but the solution is not —typically because the relevant cause- and-effect relationships are hard to discern—and therefore learning and discussion are required by both the governmental managers and the stakeholders they lead. Type 3 - both the problem definition and the solution are unclear, and more extensive learning and discussion are required for all concerned.  Black swan: Unanticipated, unpredictable events with large impacts (unknown unknowns), like the 9/11 attacks. Popularized by Nassim Nicholas Taleb in 2007. Black jellyfish: Represents small changes within complex systems leading to significant impacts, such as human migration, triggered by feedback loops. The term stems from jellyfish population booms due to environmental changes. Grey rhino: Refers to highly probable, high-impact events (known knowns) that are often ignored, like the COVID-19 pandemic. Coined by Michelle Wucker in 2016. Black elephant: Describes events that are either unseen or ignored (known unknowns) but, once they occur, are often mislabeled as black swans. Examples include COVID-19. Source: Anticipatory innovation governance  Mission-oriented innovation … the public sector takes an active role in convening and coordinating actors around complex, cross-sectoral issues that cannot be solved with existing methods or by individual actors alone. Mission-oriented innovation refers to any new or improved technological, social, or organisational solution (product, process, or service) that aims to respond to one or several objectives tackling grand societal challenges (missions) and create public value to society (e.g., climate mitigation, clean oceans, sustainable economic growth, and well-being).  Reasons why missions fail 1. Mission washing 2. Mission dilution 3. Mission fatigue 4. Missions as cure-all 5. Mismatched mission conditions 6. Siloed missions 7. Orphan missions Source: 13 reasons why missions fail by OECD Mission Lab | Medium  Reasons why missions fail 8. One–tool missions 9. Mission portfolio blindness 10. Politically-dependent missions 11. Ill-equipped mission teams 12. Under-resourced missions 13. Non-systemic mission evaluation Source: 13 reasons why missions fail by OECD Mission Lab | Medium  How can Governments support public sector innovation? Institutionalizing innovation in Creating organizational variety into organizations or whole systems through new routines, rules, norms, tools: existing bureaucratic systems: - Innovation funds within in gudgets and rules - Central but politically insulated on innovation expenditures agencies (centralizing innovation) - HR practices: recruitment, rotation, training - Temporary networks, task forces - „start-up“ culture in government - Innovation labs (hackatons, mentoring, HR) - New tools creating new insights (big data, AI, ML, design thinikg, co-creation etc) - Institutional „ineffeciences“: sunset clauses on policies/organizations - Slack (not the app)  Experimenting in public sector A solution is a means to achieve a certain goal … means the limited trial or to solve a problem. A solution can take many different forms: a policy, intervention, program, of a solution to gather digital application, support measure, etc. information necessary for Information necessary decision-making. for decision-making Delimitation refers to the testing means the systematic of a solution on a limited scale analysis of the tested Experimentation involves the and/or for a limited time. solution and its impacts to implementation of the solution Delimitation mitigates the risks of make further policy in some way. Experimenting testing and allows for comparing decisions. This differs from other impact the impact of the solution on distinguishes testing from assessment methods, where something. Delimitation pilot projects, where solutions are analyzed without distinguishes testing from reforms, solutions are implemented being implemented. where the solution is implemented in a limited way but often immediately on the largest without systematic impact possible scale. analysis It is all about comparability and evidence! Individual decision making is Randomized Control subject to a myriad of Trials (RCT) influences, including: persistent cognitive biases (e.g. risk or loss aversion) complex time-based preferences (e.g. wanting to save for the long-term benefit, but spending for short-term satisfaction) limited capacity to take into consideration information and make choices (information and choice overload) Regulatory and Technological Sandboxes Regulatory Sandbox Technological Sandbox Definition: A controlled Definition: A testing environment for businesses to environment focused on test innovations with relaxed developing and validating new regulatory requirements. technologies. Key Features: Key Features: Facilitates rapid development and Limited scope and duration for prototyping. testing. Encourages interdisciplinary Temporary regulatory exemptions. collaboration. Consumer protection safeguards. Provides access to tools and Collaboration among resources. stakeholders. Prioritizes research and development. Global adoption in various sectors. Course Provide a systematic overview of aims the principles and development of public sector management; Introduce various perspectives related to public management; Acquire basic terminology of public management; Establish a foundation for completing a research seminar and writing a thesis in the field of public management. Questions? Thank you!