Jo Casebourne: Innovation in the Public Sector Organizations (NESTA_London)

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III European Summer School of Social Innovation
Organized by: Sinnergiak Social Innovation Centre
www.sinnergiak.org

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  • (20 mins)

  • Science systems: are organised around large scale public and private investment, peer review, and are increasingly long-term, slow, complex, global..

  • Market-driven innovation is also increasingly global, diverse, helped by strong incentives, IP protection, public policy support…

  • But no comparable model for public sector innovation

    Leading to:
    Top-down imposition of unproven new ideas, or
    Creative but disorganised local innovation, or
    Reliance on quasi-markets – but without the R&D necessary for radical innovation as opposed to incremental improvement

    The result: productivity stagnation in 45% of EU GDP
  • There is also an increasing recognition that most innovation funding has gone to military and hardware, not to the most pressing social, economic and environmental challenges.

  • Budget constraints, demographic changes such as an ageing population, and increasingly complex and ‘wicked’ social problems such as chronic health conditions, poverty, inequality and climate change, all mean that we need to reassess ways of delivering economic and social outcomes.

    Changing views of innovation – now including services, public sector, civil society as well as traditional R&D

    Changing methods of innovation, with adoption of methods into business – user involvement, crowd-sourcing, open innovation

    Rising confidence of civil society globally

    New insights from design, business, digital innovation

  • Innovation – state needs to be catalyst for innovation and needs to embed innovations within its operation
    Social innovation
    Evidence of what works and adopting it
  • Not seen huge benefits of digital technology in health or education as we have in private sector

  • Public services seek to generate positive social outcomes for the good of society

    People want better outcomes, care about public services and expect them to be delivered well. To achieve this we need the public sector to innovate.

    Our demands and expectations of what public services can and should deliver are rising, in part in response to service innovations in other areas of our lives.

  • But public sector innovation is hard.

    Public services deal with complex problems, have contradictory and multifarious demands, need to respond quickly whilst balancing the need for security and continuity, and must be transparent and accountable.

    Those trying to innovate within the public sector face barriers such as departmental silos, a lack of champions, reward and incentive systems as well as targets and performance management processes that don’t support innovation, risk aversion limiting experimentation, and a lack of dedicated budgets, teams and processes to facilitate innovation.
  • But conditions are ripe

    Economic: renewed incentives for efficiency as demand increased and public revenue falls
    Political: decentralised decision making and openness to new solutions
    Cultural: community, ethical consumption, collaboration, co-creation and partnership working
    Technological: enabling different relationships, interaction, participation
  •  
    i-teams is a research project from Nesta and Bloomberg Philanthropies to uncover the teams, units and funds that make innovation happen in city, regional and national governments around the world.

    Needs teams to overcome barriers to innovating in public services
  • Nesta’s education failure fest

    Research on cultures that reward risks and creativity

    Key to signal that innovation is valued;

    how risk is to be handled (and failure – leaders actions as well as words)

    which approaches to innovation are recognised – eg promoting hybrid/adoptive innovation/reverse engineering

    appetite for small scale fast experiment
  • Systematic skills development for public officials and partners - the open workshop as a tool (a partnership with innovation agencies around the world, UNDP, Rockefeller Foundation etc)

    Key to recognise that innovation is not innate; or random.

    Requires conscious cultivation of skills: how to manage each stage of innovation processes, how to use key resources, how to judge.

    Skills important both for direct managers and for surrounding system.
  • There are many examples of methods being used around the world to generate ideas …
  • The Transportation Security Administration’s IdeaFactory website
  • Offering cash prizes to incentives breakthrough innovations is a time honoured practice. In the past prize competition have been vital to solve problems like food preservation or measuring the longitude.
  • Using formal pilots and even randomised control trials to test whether an idea works or not.

    Nesta’s Creative Credits is a key example – it is using a randomised control trial to test whether simple vouchers for business to business knowledge transfer generate business innovation.
  • The good public service should be adept at both experiment – creative, fast, radical – and effective assessment and measurement.

    The mentality of evidence is almost opposite to the mentality of creative innovation – but plays a crucial role in systems of innovation, determining which ideas deserve to spread.
  • The Alliance for Useful Evidence – with 1500 organisations – raises awareness of randomisation, big data, effective evaluation - and is helping UK government to create a network of ‘What Works’ centres.
  • Bamberger, J. and Hernandez, A. (1999) ‘Impromptu: An interactive software application.’ New York NY: Oxford University Press.
  • Without space innovations can’t thrive. So tools for decommissioning less effective existing methods are as important as tools for backing good new ideas
  • … and many examples of using procurement, commissioning and market design to encourage innovation
  • The Outcomes Star introduces a way to introduce radically different perspectives on outcomes into commissioning, and provides a way to engage communities and users directly in setting outcomes
  • The biggest gains in the next few years will come from innovating whole systems – such as transport, energy and health – aligning shifts in policy, regulation and tax to creative entrepreneurship. We’ve developed a range of practical examples and theory to guide this, focusing in particular on health and care….
  • Make better use of what’s known about public sector innovation – beyond inspiring talks and anecdotes.

    Accelerate – knowledge management in sectors and places (eg health in a region) experiments in idea generation, support iTeams, creating and organising new markets, procurement experiments, investment modelling

    Coordinate – establish collaboratives of cities working together

    Build capacity – innovation skills rolled-out, programmes for leaders. Helping political and civil service leaders to a comparable understanding of innovation to the best in science or business. Integrating innovation into the competences of public servants

    Spread – drive adoption and scale, generating better evidence about what works in innovation methods – eg on adoption patterns, new financing methods, evidence networks and what works centres, support experimental methods, reward superadopters

    Deepen – back systems demonstrators, develop research and skills on systemic innovation
  • Jo Casebourne: Innovation in the Public Sector Organizations (NESTA_London)

    1. 1. INNOVATION IN PUBLIC SECTOR ORGANISATIONS Dr. Jo Casebourne Director of Public & Social Innovation
    2. 2. Why is public sector innovation important?
    3. 3. Photo: mattfred Photo: Mat Walker Science systems are global & have large scale investment
    4. 4. Open innovation Innovation in services User innovation Design led innovation Data driven innovation Market-driven innovation also global & helped by strong incentives
    5. 5. But no comparable model for public sector innovation Leading to: • Top-down imposition of unproven new ideas, or • Creative but disorganised local innovation, or • Reliance on quasi-markets – but without the R&D necessary for radical innovation as opposed to incremental improvement The result: productivity stagnation in 45% of EU GDP
    6. 6. Recognition that most innovation funding gone to military & hardware… Marksontok, CC BY 2.0
    7. 7. Not to most pressing economic, social & environmental challenges Csjetruner, CC BY-NC 2.0 Fuersen, CC BY-NC 2.0 Monica McGivern, CC BY-NC 2.0 Msmail, CC BY-NC 2.0 kevinkarnsfamily, CC BY-NC 2.0 Viewminder. CC BY-NC 2.0
    8. 8. To improve productivity and generate positive outcomes need to innovate Innovation Social innovation Adoption of innovations that work ccarlstead, CC BY-NC 2.0 ShawnOster , CC BY-NC 2.0 JKFID, CC BY 2.0 Fiery Spirits Community of Practice MattjHerring, CC BY-NC-ND 2.0 Source: Rogers, E.M. (1963) ‘Iffusion of Innovators.’ Third ed., p.247. New York: Free Press.
    9. 9. Harnessing power of digital for social challenges http://manuelherrador.blogspot.co.uk
    10. 10. How can we support public sector innovation?
    11. 11. Expectations on public services increasing JodyDigger, CC BY-SA 2 urbantimes.co HM Treasury, CC BY-SA 2.0
    12. 12. Why it’s hard Barriers • Departmental silos • Budgets and financial flows • Episodic - driven by politics • Lack of champions • Lack of dedicated budgets, teams and processes • Targets and performance management processes • Reward and incentive systems • Attitude to risk and failure limits experimentation Complexity • Contradictory and multifarious demands • Trade offs • Need to respond quickly • Transparency and accountability • Need for security and continuity
    13. 13. But conditions are ripe • Economic: renewed incentives for efficiency as demand increased and public revenue falls • Political: decentralised decision making and openness to new solutions • Cultural: community, ethical consumption, collaboration, co-creation and partnership working • Technological: enabling different relationships, interaction, participation
    14. 14. Evidence Promoting public sector innovation Adoption & Exit Experiments Scaling through: Regulation, Procurement, Commissioning, Investment Structures & cultures: teams funds and labs, promoting risk, harnessing motivation More & better ideas: ideas factories, open calls, prizes Systems change
    15. 15. Structures and cultures
    16. 16. Designing teams, funds and labs
    17. 17. Transforming the processes, skills and culture of government • Focus on transforming the way that government approaches innovation, • Uses consultancy services and training, secondments and placements, to develop skills and mind-sets • Educate and provide insights and knowledge needed to empower others inside government to innovate.. Achieving wider policy and systems change • Focus on achieving wider policy and systems change and bringing about transformation, • Look beyond specific interventions • to the wider policy context and complex systems that need to change, • Architects, creating the designs and blueprints that others can follow Creating solutions to solve specific challenges (CEO) • Focus on solving high priority problems, and developing usable and scalable solutions, Collaborate with colleagues in government agencies. • Developers and creators of innovations. Engaging citizens, non-profits and businesses to find new ideas • Focus on opening up government to voices and ideas from outside the system, • Open innovation and challenge- led approaches • Strong communications and engagement strategies. • Create conditions for innovations from outside government to thrive. • that others can follow 4 types of
    18. 18. Promoting risk and making failure safe Rain Rabbit, CC BY-NC 2.0
    19. 19. Supporting skills development https://openworkshop.nesta.org.uk/
    20. 20. More and better ideas
    21. 21. TRIZ Brainstorms “The way to get good ideas is to get lots of ideas, and throw the bad ones away.” menssanaresearch.com Encouraging ideas Dr Linus Pauling, American chemist and bio-chemist
    22. 22. 22 Using ideas factories http://ideafactory.com http://i1.ytimg.com/vi/6y5RfS-v3wo/maxresdefault.jpg
    23. 23. Using open calls http://www.nesta.org.uk/project/innovation-giving-fund
    24. 24. Using prize competitions
    25. 25. Experiments
    26. 26. Design tools 26 By conducting rigorous experiments
    27. 27. Evidence
    28. 28. By making evidence useful
    29. 29. 29 Standards of evidence
    30. 30. Adoption and Exit
    31. 31. Copying and adopting what works 31 http://allthingsd.com
    32. 32. Adoption of drugs by GPs Research on championing the superadopters Source: Thomas, E., Bennett, F. and Westlake, S. (2013) ‘In Search of the SuperAdopters: What Open Data tells us about GP Prescribing Practices.’ UK: Nesta
    33. 33. By decommissioning J. M. W. Turner, The Fighting Temeraire tugged to her last Berth to be broken up, 1838
    34. 34. Growing, scaling and spreading
    35. 35. Regulation - promoting spin-outs and using procurement for social outcomes
    36. 36. By using procurement
    37. 37. By using commissioning Commissioning for outcomes homeless.org.uk
    38. 38. Through crowdfunding
    39. 39. Peterborough Social Impact Bond launched 2011 with the goal of reducing reoffending amongst a 3000 cohort of male prisoners Through Social Impact Bonds http://www.socialfinance.org.uk http://www.secondowelfare.it
    40. 40. Systems
    41. 41. New technologies, products and services New policies and regulations Recalibrated markets Behavioural change, social movements Through whole system approaches Photograph: Graphic, The Guardian
    42. 42. Learning how to change systems
    43. 43. Where next for public sector innovation?
    44. 44. Accelerating Co-ordinating Building capacity Spreading Deepening Where next? Focus needs to be on…

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