Business Schools & Public Management:
Creating Public Value for Economic and Social
Development
Organizers: Manuela Brusoni and Veronica Vecchi
Guest speakers: Elio Borgonovi and Luca Brusati
GBSN webinar
Agenda (veronica + manuela) – 5 min.
Back
up
•
GBSN Working Group on Public management lead by SDA Bocconi
•
Move to NEXT SLIDE
•
Among this working group we are designed a series of webinars and today we start
with:
•
Prof. Borgonovi and Prof. Brusati will discuss the central role of Government and
other public Institutions to create value for the societal development. They will
explain why public management is a crucial topic for business school, expecially
those working in developing countries. They will cover the following issues:
– Value creation
– The evolution of Public management
– The centrality Public Private Partnership in the current approach to Public
management as it will be shown by prof. Borgonovi
– Finally, they will focus on the implication for management education
SDA Bocconi portfolio for public sector,
healthcare and not for profit
Undergraduate
Graduate
Post Graduate
Executive
Back
up
Our view: relevance of public management to
execute policy as a transmission belt between
policies and street level -> see the following
slide
Our interest for this topic is dated back in
Seventies and rooted in Masini academic work.
From then on Bocconi University has been
developing a wide offer of Education and
Research programs
Basic and applied research to feed education
POLL
Back
up
• WHEN BORGONOVI STARTS TO SPEAK, LISA AND PAGE HAVE TO
LAUNCH THE POLL – 3 QUESTIONS
1.
Have you experience with education programs for
Governments?
2.
In your experience, is there an explicit continuous learning
demand in your Country?
• Yes
• It is weak
• It is growing up
• It is absent
POLL
Back
up
3. How is executive education for managers working within
public sector in your Country?
• Weak
• Well structured offer of programs (master and executive
programs)
• Absent
• Need for innovation
CLOSE THE POLL AFTER 15 MINUTES
Government or Governments? – 5 min.
(Luca)
• PA is not a monolith – why it is relevant to be aware of that,
especially in the management education field (BORGONOVI)
• Luca can show a slide with the most important form of
authorities, providing some examples
• This overture could help our audience – because they come from
different Countries with different Institutional framework
Back
up
Where does “public management” take place?
Here Luca speaks
Core central administration
Agencies
GOVERNMENT IS NOT A MONOLITH – BETTER TO TALK ABOUT GOVERNMENTS OR
PUBLIC AUTHORITIES
Value creation – some basics
(Borgonovi + Luca) – 10 min
•
Value creation for businesses and for public authorities
•
How to create value?
•
How to distribute value?
•
How to communicate value?
•
Accountability – not only transparency
•
Value based pricing, value for taxes, value for money
•
LUCA (a couple of min.): Some example (referred to economic and
social development, agribusiness and entrepreneurship)
Back
up
Value creation… what, how, why?
Value creation for businesses and for public authorities – what
differences
How to create value?
How to distribute value?
How to communicate value?
Accountability – not only transparency
Here Borgonovi
speaks
Value based pricing, value for taxes, value for money
Creating or destroying value?
The example of customs management
Documents for
export
(number)
Time for
export
(days)
Cost to
export
(USD /
container)
Documents
for import
(number)
Time for
import
(days)
Cost to
import
(USD /
container)
Singapore
4
5
456
4
3
439
United States
4
6
990
5
5
1245
Hong Kong, China
4
6
625
4
5
633
Thailand
4
14
625
3
13
795
Georgia
8
12
1380
7
14
1340
Azerbaijan
9
48
3075
14
56
3420
Kyrgyz Republic
13
64
3000
13
75
3250
Kazakhstan
11
89
3005
13
76
3055
Russian Federation
8
36
2150
13
36
2150
Morocco
7
14
700
10
18
1000
Uzbekistan
7
80
3100
11
104
4600
Tajikistan
10
82
3150
10
83
4550
Here Luca speaks
Evolution of public management (Borgonovi + Luca) –
10 min
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up
•
From Bureaucracy
•
Passing through New public management (efficiency and lean delivery)
•
To Network governance: public institutions are player within a wide
system of relations and actors
•
Therefore, decision making, execution and delivery models and
measurement have changed.
LUCA –
5 min.
– Decision making is often participatory (Luca’s example in a couple of
minutes)
– Execution relies on Public Private Partnership
– Measurement of public action has evolved to cover the following
items/phases: Input, Process, Output, Results and outcome
Form a public administration transition…..
Here Luca speaks
“First generation” needs: public goods
• (e.g., defence, roads, lighting)
“Second generation” needs: “merit” goods
• (e.g., healthcare, education, housing)
“Third generation” needs: effective steering
• (e.g., industrial competitiveness)
Shift from “government” towards “governance”
12
To a theoretical evolution
From Bureaucracy
Passing through New Public Management
(efficiency and lean delivery)
To Network Governance
public institutions are player within a wide system of relations and
actors
Therefore, decision making, executionHere Borgonovi
and delivery models and measurement
speaks
have changed.
Public management:
tentative definitions
• Goal-oriented configuration and steering of public
sector organizations (or parts of them)
• The art and science of planning, steering,
coordinating and controlling public sector
organizations
• The management of societal resources to achieve
results in the public interest
The changing role of public managers (1)
Here Luca speaks
• Stable environment, availability of
resources  emphasis on
compliance
– definition of “ideal” behavioural
patterns
– tasks defined by procedural
responsibilities, not outcomes
– checks on compliance between
procedures and actual behaviours
rather than the satisfaction of
needs
15
The changing role of public managers (2)
Here Luca speaks
• Fiscal crises (1970s onwards) 
emphasis on efficiency (“NPM” /
value for money)
– rationalization
– productivity
– incentives / performance pay
– cost accounting
– contracting / outsourcing
– indicators / targets
– business process reengineering
16
The changing role of public managers (3)
Here Luca speaks
• Environmental complexity /
unpredictability  emphasis on
effectiveness
– customer satisfaction
– citizens’ rights
– stakeholder engagement
– fundraising
– “triple bottom line” / corporate
social responsibility
– diversity management
17
This evolution requires NEW competences
Decision making is often participatory
Execution relies on Public Private Partnership
Measurement of public action has evolved to cover the following
items/phases: Input, Process, Output, Results and outcome
Here Borgonovi
speaks
Partnership and Business Government Relations
(LUCA + Borgonovi) – 5 min
•
Recall the network governance approach, here Borgonovi’s Diamond is
presented to show the complexities of the system:
–
–
–
–
–
•
Back
up
Public authorities
Businesses
Not for profit
Banks – financial institutions
Citizens
Some examples,
mainly refereed to
entrepreneurship
and agribusiness
LUCA: Public Institutions should play as “director or coordinator” of the
relations system, stimulating the other actors to converge towards
shared goals of development. That process can take place at all
institutional levels (macro, meso and micro); but the meso and micro
levels play a key role, as they are in charge of the execution processes.
Public – Private Partnership diadem
Public
authorities
Citizens
Banks –
financial
institutions
Here Borgonovi
speaks
Businesses
Not for profit
Governance in practice: overcapacity in the
steel industry
Mill
Capacity
Funding requested for
decommissioning
Funding granted for
decommissioning
Outcome
A
4,000
3 Million Euro
1,5 Million Euro
Decommission
B
3,000
2 Million Euro
1 Million Euro
Do not
decommission
C
2,000
2 Million Euro
1 Million Euro
Decommission
D
1,000
1 Million Euro
0,5 Million Euro
Do not
decommission
2 POLL
Back
up
•
As soon as we pass to discuss about EDUCATION a second POLL must be
launched
•
DO YOU HAVE ANY SUGGESTIONS FOR FURTHER WEBINARS?
– Public private partnership for infrastructure development
– How to implement local development policies – a public management
approach: discussion of some experiences across the world
– Corporate Social Responsibility in management education
– Other: suggestions
Implication for the management education – 15
min (BORGONOVI + LUCA)
•
LUCA - Implications for management education: for programs devoted to
private sector and for those devoted to the public
– To help to better know each other: mutual understanding and respect
– Some example: to know the policy making process is relevant for
businesses and for the public sector is relevant to know, for example, the
difficulties for companies of competing in an international arena (etc…)
Back
up
•
BORGONOVI - Messages: not adaptation of programs and competences but
rethinking; skilled faculties on topics and learning methodologies
•
•
Some example: what we did in SDA Bocconi since our begin (Borgonovi)
Some international examples (LUCA, Borgonovi can says that he is just back
from Vietnam where they are thinking about a program – what are their
needs??)
Here Borgonovi
speaks
Implications for Education
To make public policies more effective
To make public Institutions more efficient
To better know environment, stakeholders
and needs -> mutual understand
To help business to know public sector
(regulation and doing business with
Government)
Lessons from our experience….
Don’t adapt programs and competences but rethink;
Invest in skilled faculties (topics and learning
methodologies)
Do apply research in partnership with local Government
to help them to innovate and to develop faculty's skills
Here Borgonovi
speaks + LUCA adds