Über die Autorin bzw. den Autor

MARTIN COLE is Group Chief Executive of Accenture's Government operating group. He is also a member of Accenture's Executive Leadership Team. Mr. Cole was profiles in the April 2004 issue of Consulting Magazine as one of the IT industry's top six power brokers. He was also a recipient of the 2002 Computerworld Top 100 IT Leaders award.

GREG PARSTON is Director of the Accenture Institute for Public Service Value. He has extensive experience in the public, private and not-for-profit sectors as an entrepreneur, executive director and manager. Dr. Parston has consulted widely on governance, leadership, strategy and change in public services.

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Praise for Unlocking Public Value

"Unlocking Public Value addresses one of the most challenging questions for governments: how to measure transformation in order to improve outcomes and deliver value to citizens."
―Steve Ballmer, Chief Executive Officer, Microsoft Corporation

"All public services, the Metropolitan Police Service included, are faced with the increasing need to achieve more with the same or less resources at a time of escalating demand and rising customer expectations. This book provides some fascinating insights into public value, how to measure it and, at the same time, may assist in making informed judgments about future spending decisions."
―Sir Ian Blair, QPM, Commissioner of Police of the Metropolis, UK

"Government performance excellence needs instruments that help public sector managers to focus on when and how to create and measure public value. The Public Service Value Model is a sound and outstanding step forward in the field of strategic management in the public sector."
―Julio Gomez-Pomar, Former Secretary of State for Public Administration, Spain

"Public value is the most exciting and widely discussed concept in contemporary public service policy. It offers a common language to connect public services. This book will help you to put clothes onto your particular emperor."
―Ed Mayo, Chief Executive of the National Consumer Council, UK

"While pressure on public budgets increases at the same time expectations of performance rise, this is an excellent and example-rich guide to tracking performance and measuring real outcomes rather than just activity or outputs. It shows how creative experimentation can show the best methods of satisfying taxpayers who want to experience the real effects of the investment of their dollars."
―Sir Mark Moody-Stuart, Chairman of Anglo American plc and former Chairman of Shell

"Three cheers for Cole and Parston! In this important work, they have moved well beyond the simple idea of 'customer-oriented government,' preoccupied only with the quality of services, to a 'citizen-focused government' focused on assisting citizens to define and achieve important social outcomes in cost-effective ways. The practical tools they have developed will help citizens, taxpayers, clients and public managers align and achieve a shared concept of public value."
―Professor Mark Moore, Kennedy School of Government, Harvard University, and author of Creating Public Value: Strategic Management in Government

"This model for measuring performance in public services demonstrates cutting-edge research. In addition, it provides public managers with a hands-on tool for measuring, evaluating and improving public performance. An excellent study!"
―Andrea Römmele, Professor of Communication Management, International University, Bruchsal, Germany

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Praise for Unlocking Public Value

"Unlocking Public Value addresses one of the most challenging questions for governments: how to measure transformation in order to improve outcomes and deliver value to citizens."
—Steve Ballmer, Chief Executive Officer, Microsoft Corporation

"All public services, the Metropolitan Police Service included, are faced with the increasing need to achieve more with the same or less resources at a time of escalating demand and rising customer expectations. This book provides some fascinating insights into public value, how to measure it and, at the same time, may assist in making informed judgments about future spending decisions."
—Sir Ian Blair, QPM, Commissioner of Police of the Metropolis, UK

"Government performance excellence needs instruments that help public sector managers to focus on when and how to create and measure public value. The Public Service Value Model is a sound and outstanding step forward in the field of strategic management in the public sector."
—Julio Gomez-Pomar, Former Secretary of State for Public Administration, Spain

"Public value is the most exciting and widely discussed concept in contemporary public service policy. It offers a common language to connect public services. This book will help you to put clothes onto your particular emperor."
—Ed Mayo, Chief Executive of the National Consumer Council, UK

"While pressure on public budgets increases at the same time expectations of performance rise, this is an excellent and example-rich guide to tracking performance and measuring real outcomes rather than just activity or outputs. It shows how creative experimentation can show the best methods of satisfying taxpayers who want to experience the real effects of the investment of their dollars."
—Sir Mark Moody-Stuart, Chairman of Anglo American plc and former Chairman of Shell

"Three cheers for Cole and Parston! In this important work, they have moved well beyond the simple idea of 'customer-oriented government,' preoccupied only with the quality of services, to a 'citizen-focused government' focused on assisting citizens to define and achieve important social outcomes in cost-effective ways. The practical tools they have developed will help citizens, taxpayers, clients and public managers align and achieve a shared concept of public value."
—Professor Mark Moore, Kennedy School of Government, Harvard University, and author of Creating Public Value: Strategic Management in Government

"This model for measuring performance in public services demonstrates cutting-edge research. In addition, it provides public managers with a hands-on tool for measuring, evaluating and improving public performance. An excellent study!"
—Andrea Römmele, Professor of Communication Management, International University, Bruchsal, Germany

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Unlocking Public Value

Jossey-Bass

Chapter One

As public managers around the world seek ways to do more with less, the need is growing for a practical approach to define, measure and drive high performance in the public sector. Although public managers' budgets remain tight, taxpayers demand more, and better, service from public service organizations. Particularly in times of crisis, taxpayers question the value their governments are delivering to them. The increasing use of the Internet has further raised the bar on the level of service expected by the public. Some governments employ selective contracting out and privatization to raise productivity.

Elliott Hibbs must have felt as if he were caught in the jaws of a giant vise. During the first few months of 2003, the State of Arizona's newly appointed Director of the Department of Revenue found his agency had taken severe budget cuts for several years due to a state-wide austerity plan, in spite of its role as the major revenue producer for the State. Meanwhile, stakeholders ranging from legislators to taxpayers were demanding continued high levels of processing, enforcement and taxpayer assistance services without adequate resources to deliver those services. In addition, the prior administration had taken resources from enforcement and moved them to the service delivery side of the agency to meet the demands for swift refund processing, adversely impacting the effectiveness of the department, particularly in collecting unpaid taxes. As part of the new administration and to combat what appeared to be a serious decline in agency function and capabilities, Hibbs presented a plan to the legislature to restore department resources to 2002 levels by improving processing while increasing aggressive collection of delinquent taxes.

Hibbs, an Arizona state government veteran of more than 20 years, was confident that the initial steps he took at the agency were improving the agency's performance and adding value for many stakeholders. He reassigned staff back to audit and enforcement activities and continued a major upgrade of the agency's computer systems, which had started prior to his arrival. Yet he was frustrated with the lack of good data and meaningful facts that could help sell his message to the legislature, that cutting the Revenue Department's budget was a short-sighted fiscal act. "We were accomplishing a lot in spite of getting budget reductions or not enough increases to even cover higher personnel and operations costs. We couldn't easily get the legislature to see the importance of the value we were adding for the people of Arizona," he said. Caught in this dilemma, Hibbs agreed to pilot the Public Service Value methodology as a way of allocating resources to areas that would create the most value for Arizona taxpayers. Along with other public managers around the world at that time, Hibbs was facing a public sector squeeze. He needed to find a way to create value with scarce resources.

Public Service Value Approach

Like Director Hibbs, readers wrestling with the challenges of delivering value in the public sector may find Figure 1.1 helpful. It can be used to frame discussions with public managers about choices and trade-offs available to increase outcomes, or end results of programs, as cost-effectively as possible. The Public Service Value Model is a framework that public managers can use to set priorities between several goals and objectives. By our definition, high-performance governments are those that increase public value-they are able to efficiently produce more or improved outcomes for the public monies spent.

The Public Service Value approach has been developed over the past few years with the help of dozens of government organizations and academic experts. Using the Public Service Value Model, a public manager can evaluate an organization's ability to achieve key social outcomes cost-effectively and aggregate these results to provide an indicative measure of relative public value creation.

Public service organizations can plot their performance on the Public Service Value Model diagram (see Figure 1.1). The direction that an organization moves from year to year reveals how performance is trending. For example, if an organization moves to the upper right-hand quadrant, it is succeeding in increasing outcomes and cost-effectiveness at the same time. On the other hand, if a public service organization increases outcomes but is not cost-effective, it will move toward the upper left-hand quadrant. An organization that manages its costs, but sees a reduction in outcomes, will move toward the lower right-hand quadrant. In these last two cases, when done deliberately, organizations are making explicit trade-offs between focusing on improved outcomes and increasing cost-efficiency in order to, in effect, maintain public value. Lastly, if an organization heads into the lower left-hand quadrant, it is experiencing a reduction of both outcomes and cost-effectiveness and is eroding public value and most likely taxpayers' confidence.

The Public Service Value approach to helping public managers define and increase value in the public sector was inspired by the principles of Shareholder Value Analysis, which is commonly used to understand the performance of companies. In the private sector, a company's shareholder generally sees the value of his or her investment increase with company earnings, which are ultimately reflected in the company's share price. For the Public Service Value Model, we substitute private sector shareholders with taxpayers, citizens, public service recipients and legislators.

Fiscal Crunch

The "value squeeze" experienced by Director Hibbs is an all-too-familiar challenge shared by public managers worldwide (see Figure 1.3). In the United Kingdom, for example, Ian Watmore, who in 2004 was appointed to the newly created position of Chief Information Officer and is now the head of the Prime Minister's Delivery Unit, said, "It is difficult to balance the objectives of delivering social outcomes and services that consume more resources in an era when governments have less to spend on this rising demand." Since public managers are continually asked to do more with less, the questions on everyone's mind are:

How does one determine if taxpayer money spent is actually improving government performance?

How does one tell if public service programs are adding value?

Politicians, like public managers, feel the squeeze when it comes to delivering value. Politicians feel pressure to deliver on voters' expectations for education, security, social services, pensions and health care. The pressure on budgets in most countries is unlikely to lessen significantly in the years ahead. One significant factor driving this fiscal crunch in most of Europe (particularly in France and Germany), Japan and the United States is the rapid aging of the population and the demands that population is putting on the social security and health care systems in these countries.

In the United States, for example, spending on Social Security, Medicare and Medicaid total roughly 8 percent of the gross domestic product (GDP). By 2030, according to the Congressional Budget Office, the cost of these...