opus international consultants - virginia techopus international consultants it is an article of...
TRANSCRIPT
![Page 1: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/1.jpg)
Private sector business principles to adopt & avoid Anna Robak Opus International Consultants
![Page 2: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/2.jpg)
It is an article of faith…that government is bad or at least inept and business is good and efficient.
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 2
Paul R Pillar, ex-CIA analyst
![Page 3: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/3.jpg)
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 3
![Page 4: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/4.jpg)
An organization is effective if it meet the outcomes it intends to produce
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 4
![Page 5: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/5.jpg)
Myths we shall test Compared to private sector, public sector: 1. Less productive 2. Disorganized 3. Less innovative 4. Immobilized by red tape 5. Less motivated staff 6. Pay structure does not incentivize performance 7. Less efficient staff 8. Less cost effective
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 5
![Page 6: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/6.jpg)
THE PRIVATE SECTOR IS MORE PRODUCTIVE
Myth #1
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 6
Test: Are goals being met?
![Page 7: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/7.jpg)
Effectiveness
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 7
Target (objective)
Resources
Alignment
Feedback
![Page 8: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/8.jpg)
Effectiveness
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 8
Target (objective)
Resources
Alignment
Feedback
![Page 9: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/9.jpg)
THE PRIVATE SECTOR IS MORE PRODUCTIVE
Myth #1
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 9
Test: Are goals being met?
![Page 10: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/10.jpg)
THE PUBLIC SECTOR IS DISORGANIZED
Myth #2
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 10
Test: Are decisions based on rational processes?
![Page 11: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/11.jpg)
Strategic Decision Making
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 11
Source: Dean, J. W. and M. P. Sharfman (1996). "Does Decision Process Matter? A Study of Strategic Decision-Making Effectiveness." Academy of Management Journal 39(2): 368-396.
Political Behaviour
Favourable Environment
Effectiveness of Strategic Decision
Unstable environment
Implementation Quality
Rational Procedure +
-
+
+
* Dotted lines indicate control variables
![Page 12: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/12.jpg)
Decision Making
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 12
Source: S. Dillon, J. Buchanan and J. Corner, “Comparing Public and Private Sector Decision Making: Problem Structuring and Information Quality Issues ” in Proceedings of the 45th Annual Conference of the ORSNZ 2010
![Page 13: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/13.jpg)
Decision Making
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 13
![Page 14: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/14.jpg)
THE PUBLIC SECTOR IS DISORGANIZED
Myth #2
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 14
Test: Are decisions based on rational processes?
![Page 15: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/15.jpg)
THE PRIVATE SECTOR IS MORE INNOVATIVE
Myth #3
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 15
Test: Does the structure foster innovation?
![Page 16: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/16.jpg)
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 16
Adapted from Adams, K. “Sources of innovation and creativity: A summary of the research.”
![Page 17: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/17.jpg)
THE PRIVATE SECTOR IS MORE INNOVATIVE
Myth #3
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 17
Test: Does the structure foster innovation?
![Page 18: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/18.jpg)
THE PUBLIC SECTOR IS IMMOBILIZED BY RED TAPE
Myth #4
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 18
Test: Is there a high degree of formalization?
![Page 19: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/19.jpg)
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 19
![Page 20: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/20.jpg)
THE PUBLIC SECTOR IS IMMOBILIZED BY RED TAPE
Myth #4
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 20
Test: Is there a high degree of formalization?
![Page 21: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/21.jpg)
PRIVATE SECTOR EMPLOYEES ARE MORE MOTIVATED
Myth #5
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 21
Test: Is reported commitment to the organization greater?
![Page 22: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/22.jpg)
PRIVATE SECTOR EMPLOYEES ARE MORE MOTIVATED
Myth #5
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 22
Test: Is reported commitment to the organization greater?
![Page 23: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/23.jpg)
PRIVATE SECTOR EMPLOYEES ARE MORE MOTIVATED
Myth #5
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 23
Test: Is reported commitment to the organization greater?
![Page 24: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/24.jpg)
PUBLIC SECTOR PAY STRUCTURE DOES NOT INCENTIVIZE PERFORMANCE
Myth #6
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 24
Test: Does public sector pay scheme incentivize performance?
![Page 25: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/25.jpg)
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 25
![Page 26: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/26.jpg)
PUBLIC SECTOR PAY STRUCTURE DOES NOT INCENTIVIZE PERFORMANCE
Myth #6
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 26
Test: Does public sector pay scheme incentivize performance?
But kind of irrelevant
![Page 27: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/27.jpg)
PRIVATE SECTOR EMPLOYEES ARE MORE EFFICIENT
Myth #7
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 27
Test: Who works faster and more vigilantly?
![Page 28: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/28.jpg)
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 28
When faster, more accurate, and more vigilant work is required, government is superior to private service provision.
![Page 29: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/29.jpg)
PRIVATE SECTOR EMPLOYEES ARE MORE EFFICIENT
Myth #7
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 29
Test: Who works faster and more vigilantly?
![Page 30: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/30.jpg)
PRIVATE SECTOR SERVICES ARE MORE COST EFFECTIVE
Myth #8
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 30
Test: Are overall costs lower for same service by private sector?
![Page 31: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/31.jpg)
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 31
Public sector Private sector
?
?
?
?
? ?
? ?
![Page 32: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/32.jpg)
PRIVATE SECTOR SERVICES ARE MORE COST EFFECTIVE
Myth #8
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 32
Test: Are overall costs lower for same service by private sector?
![Page 33: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/33.jpg)
Myth test results 1. Private sector more organized 2. Private sector more cost effective 3. Private sector staff more motivated 4. Private sector staff more efficient 5. Private sector more productive 6. Public sector immobilized by red tape 7. Public sector pay structure does not
incentivize performance 8. Private sector more innovative
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 33
X X X X ~√ √ √* √
![Page 34: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/34.jpg)
Effectiveness scoreboard Effectiveness component
Element Private Public
Objectives Clarity of objectives Alignment Decision making - -
Information for decision making Staff motivation and performance Risk tolerance
Resources Innovation Cost effectiveness Service quality - - Procurement
Feedback Connection b/w actions & results Performance management
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 34
![Page 35: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/35.jpg)
What to keep doing?
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 35
• Motivation ‘for good’ • Being cost effective • Delivering high quality services • Using rational decision processes • Good data and analysis • Engaging with stakeholders
![Page 36: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/36.jpg)
What are the challenges?
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 36
Effectiveness challenge
Problem Improvement Option
Objectives Multiple, ambiguous, shift Clear, measurable Information Patchy? Data & analysis strategy More stakeholders Resources for consultation Engage early, show
progress Red tape / constraints More costly services Evaluate costs &
benefits Transparency Less innovation Special Purpose Vehicles Performance incentives
Less innovation Business processes to monitor, evaluate, implement innovations
Perceptions “Public sector inept” Communicate the facts
![Page 37: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/37.jpg)
Now what?
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 37
1. Set clear objectives 2. Establish performance management
program with built-in improvement process
3. Assign staff to missions that align with their objectives
4. Capture cost of service provision well 5. Establish good supplier relationships
![Page 38: Opus International Consultants - Virginia TechOpus International Consultants It is an article of faith…that government is bad or at least inept and business is good and efficient](https://reader033.vdocuments.us/reader033/viewer/2022043003/5f84127c24123f0722073cc4/html5/thumbnails/38.jpg)
OBSERVATIONS, QUESTIONS, MUSINGS
6/4/2015 9th International Conference on Managing Pavement Assets | May 18-21, 2015 38
[email protected] Private sector principles to adopt & avoid