Innovation In The Public Sector

This article is based on thoughts and observations rather than research, and is meant to stimulate some thinking on the topic. There will be some generalisations and hence some exceptions can be found also. In this context I define the Public Sector as everything that is not Private thus education and Not For Profit are included also. Innovation is taken to be some sort of system where processes and behaviours are changed to create value and improve output rather than the shiny new gadget that has just come from a high technology start up company.

The big question is ‘Does the public sector innovate?’ and the straight forward answer is no it does not because it cannot. I know of examples of medical innovations within the National Health Service which are exceptions to the rule but the system as a whole does not innovate.

One argument that I often encounter when challenging people on this issue is that their work is governed by rules laid down by government, both local and national. If you provide a service then those rules normally prescribe what happens or must happen at the point of service delivery not what goes on within the body providing the service. So the world is your Oyster as far as Innovation is concerned.

So what prevents Innovation? First of all there are hundreds upon hundreds of self imposed rules or boundaries (see my article on Innovation By Breaking Rules) which are justified by statements such as ‘That is the way we have always done things’. Why is that? What can be changed, rearranged or replaced to improve the quality of what is being delivered? How many people challenge the boundaries?

Targets are a huge issue. I encourage readers to read ‘Freedom From Command And Control’ and ‘Systems Thinking In The Public Sector’ by John Seddon who has a lot to say on this matter. Badly formed targets only encourage behaviour that is designed to meet targets, not to improve service delivery or create value. Many organisations (including private sector) have experienced the touch of Business Process Reengineering (BPR) gurus who have stripped down and rebuilt public sector systems that work poorly. John Seddon talks of ‘value demand’ (demand on a public service) and ‘failure demand’ (demand by way of failure such as complaints or having fragmented information). Our streamlined front/back office systems are candidates for large amounts of ‘failure demand’ and hence wasted energy (but they do meet their targets!!).

Another complex issue revolves around Human Resources and the Unions. I shall not blame either party but simply illustrate a situation that needs resolving. In much of the public sector, HR has been centralised as Employment Law has become more complex thus responsibility for some soft management issues has been withdrawn from the front line (and some managers may have welcomed this). HR has become more about Employment Law and not getting the best out of the workforce.

Even when an employer wishes to reorganise the workforce they come against the Union who are quiet rightfully there to protect the rights of workers. They often start their negotiations from the point of view of ‘change is bad’. Another factor that does not assist is the fact that public sector recruitment and working revolves around the job description and person specification which HR would dearly love to change and the employee and the Union would not (unless there is some compensation). Why is this so? Why can’t contracts of employment describe behaviours and responsibilities rather than actions and qualifications?

Currently in the UK, we are getting ready for significant cuts to spending in the public sector which should spur us on to trying something radical to maintain services to ratepayers and taxpayers. The current economic climate presents a possibly unique opportunity to sow the seeds of Innovation. The danger is that the public sector will be made weaker by simply chopping off bits and not reorganising the remnants or outsourcing to organisations that are still based on a front/back office system that has high failure demand. The justification is that this is what happens when public sector spending is cut.

The conclusion regarding the question ‘does the public sector innovate’ is still ‘no it does not because it cannot’ but also that ‘it does not because those in charge (politicians and civil servants) simply will not’. We can do something about it, if somebody will let us.

Creativity and Innovation in the Public Sector

I imagine that there are some readers who will eagerly begin reading this article expecting me to either say how great the public sector is in this area (like steering a tanker, sterling effort, lots of good work being done) or how bad and behind the times they are (bureaucracy, bound by unions, outdated structures, jobs for life). Both groups will be disappointed I'm afraid. It would be foolish to make a sweeping statement about the performance of hundreds of thousands of people in such an article.

Just like the private sector, there are good and bad examples. The drivers and barriers are the same but the resources and tactics used may differ. What I will do is discuss these and leave it to the readers to decide what is applicable in their particular case. The only requirement on the reader is that they are not allowed to say 'we could not do that here, it just would not work'. Creativity and Innovation is for you, you just don't know how to embrace it. First of all let us look at the overall shape of an organisation and ask the following questions:

• Are management always micromanaging staff?
• Do you work on your own or as groups of individuals?
• Is there a lack of desire to win or meet targets?
• Is there a lack of vision of what winning looks like?
• Are you inward looking?
• Do you have a relatively small number of external relationships?
• Do you have a stagnant culture with some stress and/or low morale?
• The right environment does not exist for employees to stretch themselves?
• Management do not get the best from employees?

If you answer 'yes' or agree with one or more of the above then your capacity to innovate will be hampered. Agree with them all and you need to change jobs quickly. If you are a manager in a public sector organisation and have grudgingly given 'yes' answers on the grounds that the organisation is tackling the issues in question, ask how fast are things changing, will the project ever be complete, will it make any difference?

Many public sector services have had innovation written into their service plans in the last few years and failed to deliver, mainly because those producing the plans inserted the word Innovation without understanding what it meant in a local context.

If you are intrigued by the 'finger in the air' test above then you might also like to think about the following topics - strategic barriers, organisational and corporate culture, learning, leadership and management, process and structure, collaboration and knowledge sharing. If you sense any black marks in those areas then perhaps you should start creating an action plan sooner rather than later.