The Strategic Triangle and Public Value Proposition

1. The Strategic Triangle and Public Value Proposition Facilitators Anton Florek Boudewijn van Velzen Coleen Jackson WilfriedSchley

2. The Context for Adaptive Leadership A key task of the resourceful leader is to effectively interpret their context and utilise the resources available to them to deliver better outcomes for children and young people. This process is one of change: shaping and transforming their organisation and influencing the context in which it operates over time. Resourceful leadership: how directors of children’s services improve outcomes for children. National College/C4EO 2011

3. FOUR KEY ANALYTIC IDEAS The “Strategic Triangle” The “Public Value Proposition (Task Environment) The “Authorising Environment” The “Operating Capacity” (Value Chain)

4. Mark Moore (1995)

5. WHAT IS PUBLIC VALUE? For Moore public managers create public value. “The problem is that they cannot know for sure what that is. Even if they could be sure today, they would have to doubt tomorrow, for by then the political aspirations and public needs that give point to their efforts might well have changed” Moore, (1995)

6. Creating public value is about ensuring that social goals are delivered in a way that is perceived as: • Legitimate; and • Is trusted by the public Moore, (1995)

7. CREATING PUBLIC VALUE • The Private Sector aims to create private value • Financial Profit • The Public Sector aims to create public value • ?

8. A useful, conditional conception of public value can be envisioned by public managers if they integrate: • (1) substantive judgments of what would be valuable and effective; • (2) a diagnosis of political expectations; and • (3) hard-headed calculations of what is operationally feasible. Moore, (1995)

9. CREATING PUBLIC VALUE “In short, in envisioning public value, managers must find a way to integrate politics, substance and administration”. (Moore 1995) Authorised Valuable Done

10. The strategic triangle model posits that a strategy for a public sector organisation must meet three broad tests. It must: be aimed at creating something substantively valuable (i.e. constitute public value); be legitimate and politically sustainable (i.e. attract sufficient ongoing support – and concomitant resources – from the authorising environment, that is, from political and other stakeholders taken as a whole, with due recognition of their differential power); and be operationally and administratively feasible (i.e. doable with the available organisational and external capabilities needed to produce it)

11. The Strategic Triangle Legitimate & politically sustainable Authorising Environment Public Value Proposition Operationally & administratively feasible Operating Capacity Substantively valuable

12. Functions of the Strategic Triangle • To help public managers position their enterprises in complex, dynamic environments • To focus and distribute managerial attention across their “Task Environment” and their “Authorising Environment” • To help them envision a sustainable Public Value proposition to be pursued (Question zero)

13. The Private Sector aims to create private value Financial Profit The Public Sector aims to create Public Value Who Decides?

14. THE REALITY OF PUBLIC MANAGEMENT Incoherent, fickle mandates emerging from a chaotic authorising environment

15. Stakeholders / Authorising Environment People who can say Yes or No or influence those who can say Yes or No Courts Parliament Local Authority SoS Chief Executive Unions Staff Associations Director Media Direct reports Staff Lobby Groups Same people different views Taxpayers Citizens

16. The Strategic Triangle – Mark Moore Three Key Questions • Is it administratively and operationally possible? • Is it politically and legally possible? • Is the purpose publicly valuable? Three Key Activities • Managing downward towards improving the operating capacity for achieving the desired purpose. • Managing upward, towards politics, to get or maintain legitimacy and support for that purpose • Judging the value of your imagined purpose Moore M H (1995) Creating Public Value, Cambridge, Massachusetts: Harvard University Press.

17. “OPERATIONAL CAPACITY” AND THE “VALUE CHAIN” Operational Capacity: Assets and capabilities entrusted to manager (plus those that the manager can influence required to achieve the desired results) Value Chain: Process by which tangible assets like money, social resources, ideas, etc. are deployed to produce particular results

18. THE VALUE CHAIN WITHIN THE “OPERATING CAPACITY” The boundary of your own organisation • Money based • i.e. anything that can be purchased • buildings • equipment • peoples time C L I E N T O U T C O M E S P O L I C Y O U T C O M E S Programmes Processes Procedures INPUTS OUTPUTS Authority based the unique resource only available to authorities to obligate citizens to do what they would not volunteer to do Partners & Co-Producers The boundary of your Operating Capacity

19. INPUTS & OUTPUTS Public managers are not limited, as they are in the private sector, to the provision of goods and services; “often public managers are in the business of imposing obligations not providing services." Probably the public managers most commonly thought to be engaged in this “retail delivery of obligations” are those in policing. Turbitt, (2011)

20. THREE KEY QUESTIONS • Is it administratively and operationally possible? • Is it politically and legally possible? • Is the purpose publicly valuable?

21. WHY IS (the concept of) PUBLIC VALUE USEFUL? Public value offers a more holistic way of thinking about goals and performance of public policy. It is a theory that works comfortably alongside systems thinking and strategic analysis, and is therefore well-suited to cross-cutting work (tackling the so-called ‘wicked-issues’). By applying a public value test to statements of goals, outcomes and vision statements, it can aid decision-making.

22. Moore emphasises the ‘co-production’ of outcomes achieved by public managers and public authorities working together with their clients. Indeed the essence of co-production, and thus the successful creation of public value, is dissolution of the boundaries between client and provider. The legitimacy of public bodies grows as their accountability to the public is thereby strengthened.

23. Public managers should be seen as: “explorers who, with others, seek to discover, define, and produce public value. Instead of simply devising the means for achieving mandated purposes, they become important agents in helping to discover and define what would be valuable to do. Instead of being responsible only for guaranteeing continuity, they become important innovators in changing what public organisations do and how they do it.” Moore, (1995)

24. The Strategic Triangle and Public Value Proposition Facilitators Anton Florek Boudewijn van Velzen Coleen Jackson WilfriedSchley