Analytic and Managerial Challenges of Collaborative Governance John D. Donahue June 22, 2009

Sequence Definitions and distinctions Spectrum of public-private delivery models Differentiate by allocation of discretion Generic advantages and risks Examine selected examples Analytical and management imperatives

Mostly drawn from… Donahue, The Warping of Government Work (Harvard University Press, 2008) Donahue and Richard J. Zeckhauser, Leverage: Public Goals, Private Roles (in progress)

Context Shift toward complicated public missions that invite or require private engagements Relative erosion in governmental capacity Financial and (especially) Personnel Maturation of institutional and technological infrastructure

Mid-20 th Century Model Dominance of Central State Direct Governmental Action Elite Public Service

Diffusion of Governance

Mid-20 th Century Model Dominance of Central State Direct Governmental Action Elite Public Service

Emerging 21 st -Century Model Erosion of Central State Relative to Supranational and Sub-national Authority Shift from Direct to Mediated Governmental Action Greater Role for Private Agents (both for-profit and not-for-profit) Chronic Public-Sector Talent Shortages

Narrow the Focus: Public-to-Private Diffusion

Enlarged Role for Private Agents Relative to Mid-20 th Century Model Return to Historical Norm Roman Tax Administration Mercenaries British East India Company, other hybrids

Rationales for Delegating Public Responsibilities to Private Agents Limits to making government itself more “business-like” “Extensive” versus “intensive” accountability

Rationales for Delegating Public Responsibilities to Private Agents Resources Competence Information Legitimacy

Generic Risks of Delegating Public Responsibilities to Private Agents Diluted Control Financial Exploitation Reputation Vulnerability Diminished Capacity

Architecture of Agency Relationships: Spectrum of Discretion Government Holds Most Discretion = Outsourcing, Other Contractual or Quasi-Contractual Relationships Private Players Hold Most Discretion = Philanthropy, Voluntarism, Corporate Social Responsibility Shared Discretion = Collaborative Governance

“Collaborative Governance” Not new, not rare but under-analyzed relative to importance Shared discretion as defining feature middle ground between contract and philanthropy Broad potential for flexibility, precision Strategic complexity Multiple forms of failure

Forms of Discretion Production Discretion Main rationale for collaboration (rather than direct delivery or contracting) Payoff Discretion and Preference Discretion Costly or risky (from government’s perspective) Often entangled with production discretion

Generic Challenge of Collaboration Design delivery models and Select and motivate collaborators To maximize gains from production discretion Net of losses from payoff/preference discretion

Resource-Based Collaboration Common motive, visible category Central Example: New York City Parks Partnerships Additional Examples to Discuss if Time and Interest: FDA and Pharmaceutical Industry under PDUFA; Statue of Liberty Foundation

Productivity-Based Collaboration Strongest theoretical case for collaboration Central Example: Charter School Movement Secondary Examples to Discuss if Time and Interest: Vaccine development and production, Space Shuttle operations

Information-Based Collaboration Central Examples: Infrastructure Security Job Training Secondary examples to discuss if time and interest: Securities rating; Management-based regulation

Legitimacy-Based Collaboration Central Example: US Hospital Accreditation Secondary example to discuss if time and interest: Federal Student Loan debate

Public Managerial Tasks of Distributed Governance Appraisal Analysis Assignment Architecture Assessment Adjustment

Note that these functions are: Fundamentally analytical Complex and demanding, requiring high-level talent for implementation, not just policy design Indicators of the convergence of analytics and public management