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    Competency Programme - CP4 Innovation and Digital Transformation Day 1 Session 4

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    Saeed Nashar
    This document provides an overview of a session that discusses why innovation is challenging in the public sector compared to the private sector, and what can be done to address these challenges. Some of the key points made include: 1) The public sector faces difficulties in measuring value and performance, allocating resources efficiently, and dealing with conflicting goals. 2) The public sector has limited competition and incentives to innovate due to a lack of competitors, an inability to capture full benefits, and restrictions of civil service rules. 3) Potential solutions proposed include setting a clear vision, using performance management, partnering with private sectors, and increasing accountability, benchmarking and the use of technology.

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    Competency Programme - CP4 Innovation and Digital Transformation Day 1 Session 4

    Uploaded by

    Saeed Nashar
    21 views13 pages
    This document provides an overview of a session that discusses why innovation is challenging in the public sector compared to the private sector, and what can be done to address these challenges. Some of the key points made include: 1) The public sector faces difficulties in measuring value and performance, allocating resources efficiently, and dealing with conflicting goals. 2) The public sector has limited competition and incentives to innovate due to a lack of competitors, an inability to capture full benefits, and restrictions of civil service rules. 3) Potential solutions proposed include setting a clear vision, using performance management, partnering with private sectors, and increasing accountability, benchmarking and the use of technology.

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    Competency Programme_CP4 Innovation and Digital Transformation Day 1 Session 4

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    Competency Programme_CP4 Innovation and Digital Transformation Day 1 Session 4

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    This document provides an overview of a session that discusses why innovation is challenging in the public sector compared to the private sector, and what can be done to address these challenges. Some of the key points made include: 1) The public sector faces difficulties in measuring value and performance, allocating resources efficiently, and dealing with conflicting goals. 2) The public sector has limited competition and incentives to innovate due to a lack of competitors, an inability to capture full benefits, and restrictions of civil service rules. 3) Potential solutions proposed include setting a clear vision, using performance management, partnering with private sectors, and increasing accountability, benchmarking and the use of technology.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    21 views13 pages

    Competency Programme - CP4 Innovation and Digital Transformation Day 1 Session 4

    Uploaded by

    Saeed Nashar
    This document provides an overview of a session that discusses why innovation is challenging in the public sector compared to the private sector, and what can be done to address these challenges. Some of the key points made include: 1) The public sector faces difficulties in measuring value and performance, allocating resources efficiently, and dealing with conflicting goals. 2) The public sector has limited competition and incentives to innovate due to a lack of competitors, an inability to capture full benefits, and restrictions of civil service rules. 3) Potential solutions proposed include setting a clear vision, using performance management, partnering with private sectors, and increasing accountability, benchmarking and the use of technology.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    In Partnership with:

    Working Together: Innovation


    and Digital Transformation
    Session 4. Why is innovation challenging in the Public
    Sector?
    SESSION 4: Why is innovation challenging in public sector?
    What can be done?

    2
    Learning Outcomes

    1. Explain why innovation is challenging in the public sector (vs.


    private sector) and what can be done about it

    3
    General Characteristics of the public sector vs private
    sector

    1. Difficult to value public outputs / performance


    • difficult to determine optimal size of org.
    • Organizations grow and grow big
    • how to trade off multiple / conflicting goals?

    • Result: inefficiency in resource allocation

    Discussion: How do you solve this problem of big


    government and inefficient resource allocation?

    4
    General Characteristics of the public sector vs private sector

    2. Limited competition:
    agencies survive despite
    • X-inefficiencies
    (wastefulness)
    • dynamic inefficiencies
    (failure to innovate)

    Discussion:
    1. What are examples of these
    problems in Saudi Arabia?

    2. How do you solve the problem of


    red tape?

    5
    Characteristics of public sector

    Why little incentive to innovate in public


    sector?
    • no competitors to imitate
    • not able to capture full benefits of
    innovation
    • cannot borrow funds for start up costs
    • civil service rules make it difficult to get
    specialized expertise

    Discussion:
    1. What are examples of these problems in your organization?
    2. How can these problems be solved?

    6
    Characteristics of public sector

    3. Ex-Ante Controls: Civil Service Inflexibility


    • Problem of evaluating ex-post performance 🡪
    need for ex-ante controls
    • Directly restrict discretion of agency heads
    • Need for continuity and non-partisanship comes
    at a cost on flexibility of staffing
    • Difficult to fire for political reasons, difficult to
    fire for incompetence
    • Fixed pay schedules: minimize political
    leverage 🡪 under-reward most productive and Discussion:
    over-reward least productive 1. What are examples in KSA?
    2. How do you solve these
    problems?

    7
    Characteristics of public sector

    4. Bureaucratic procedures
    • Bureaucratic pay not tied to performance but
    long run promotion tied with observed
    performance:
    • Incentive🡪 risk aversion🡪 everything must pass
    thru channels (RED TAPE)
    • Bureaucratic corruption = red tape + unclear
    procedures + discretion – accountability

    • Dilemma: checks-balances needed to minimize


    discretion in use of public funds
    • Discussion: What are examples of these in KSA?
    How do you solve red tape?
    8
    Characteristics of public sector

    5. Bureaucratic failure as market failure


    5.1 Organizational Public Goods

    Example:
    • Organizational reputation is a public good
    (private cost, public benefit)
    • Requires extra effort to meet customer demands
    quickly, effectively, cheerfully

    Result:
    • Undersupply of organizational public goods
    • Acute in developing countries: poor pay / working
    conditions 🡪 poor motivation

    9
    What can be done about these problems?

    1. Vision statement / political support for


    innovation
    2. Performance measurement and management
    3. Performance based budgeting / output based
    budgeting
    4. Public private partnership
    5. Output and outcome based contracts
    6. Competition (to spur innovation)
    7. Autonomous organizations (to give flexibility
    from civil service rules)

    10
    What can be done about these problems?

    7. Build professional capacity / meritocracy


    8. Accountability (to stop kicking the ball around)
    9. Benchmarking (domestic and international)
    10. Use of technology 🡪 solve red tape
    11. Hard deadlines (so there is sense of urgency)
    12. Sunset provisions (automatically subject to
    review / updating)
    13. Spring cleaning (to review / remove
    unnecessary / outdated regulations)
    14. Sand box regulations

    11
    Your learning journey
    Time Day 1 Day 2 Day 3 Day 4 Day 5

    Session 5: Recap of Day 1


    Session 1: Program Overview Lecture Discussion Session 17: Recap Day 4
    Session 9: Recap of Day 2
    9.00 What is innovation? Three Case Study 4: Australia Session 13: Recap of Day 3 Case Study 15
    Case Study 8: Listening and
    10.15 types of innovation. What is digital Case Study 11: Video Discussion: AI and the Future of Work
    Learning: The Sawti App AI applications & issues
    Innovation in KSA transformation? How do we
    measure progress

    10.15
    10.30
    Break Break Break Break Break

    Session 6: Case Study 5


    Session 2: Case study 1: Digital Transformation in the Session 10: Case Study 9 Session 14: Case Study 12 Session 18: Workshop:
    10.30 Master Card Digital Video Discussion: China’s Social
    12.00
    Innovation in Singapore and UK Credit Innovation Completion of Innovation
    lessons for KSA Lessons from the Transformation Project Idea
    Government Digital Service

    12.00
    13.30
    Lunch Lunch Lunch Lunch Lunch

    Session 7: Case Study 6


    Session 3: Case Study 2 & 3 Session 15: Case Study 143 Session 19: Presentation &
    13.30 Argentina, Peru, Mexico Session 11: Case Study 10 Saudi
    15.00
    S. Korea and UAE and Arabia’s Covid 19 response Video discussion: feedback on innovation
    Lessons in building a Unified AI and Fintech / Edutech
    lessons for Saudi Arabia project
    Government Website innovation

    15.00 Break
    15.15
    Break Break Break Break

    Session 4: Lecture
    Session 8: Case Study 7 Session 16: Case Study 14
    15.15 discussion Why is innovation Session 12: Lecture / Video
    16.00
    Kenya and India What is AI? How does it work? Video Discussion AI in Session 20: Closing program
    challenging in public sector?
    Mobile Payment Innovation Healthcare
    What can be done? 12
    The Academy for Developing Administrative Leaders

    Thank You

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