Driving improved value for money in the New Zealand public sector

Abstract

The new, National-led government is seeking a significant lift in productivity and economic growth. Raising the performance of the public sector is central to achieving such an objective. In our view, improving public sector performance is unlikely if we rely solely on the management tools and approaches introduced some 20 years ago. Nor will periodic budget cuts and reductions in ‘back office’ resources result in the level of improvement desired (Cook and Hughes, 2009). Rather, the focus should be on how the public sector can stimulate innovation and economic transformation through its critical role as the leader of several large, pervasive value chains, such as health, education, science, justice and social services.

New Zealand Association of Scientists Submission to the Crown Research Institute Taskforce

“…There is a growing body of evidence that 'knowledge workers' and their output cannot be managed effectively using conventional notions of management from business. For example, Prof. Robert Austin of the Harvard Business School, (Austin 2006) notes that 'best practice calls for emphasis on relationships, collaboration and professionalism and for de-emphasis of formal performance measures.' These considerations probably have greatest relevance at the organisational level (i.e.…”

Creating engines of growth

“…In an attempt to improve efficiency, New Zealand science has become increasingly management-driven during the past decade (discussed in Rowarth & Goldson 2009). Cook & Hughes (2009) have suggested that management tools and approaches of twenty years ago won't achieve improved public sector performance.…”

Resource allocation and service design in local government: a case study

“…As part of the reform process, a new model known as the "NPM" was introduced as the existing practices were found to be inefficient, costly, and unresponsive to social and economic development. Such an approach attempts to introduce management structures, practices, and principles that are based on the market principles (Cook and Hughes, 2009a;Guthrie et al, 2005;Hood, 1995). NPM combined insights from public choice, the new institutional economics and managerialism to reduce the scope for public sector activities (Boston, 1990;Hood, 1995).…”