Director Innovations in American Government Program Harvard Kennedy School Social Innovation in Cities More Necessary and More Likely Than Ever Social Innovation Social innovation is the spark that brings government business nonprofit and philanthropy together to help people in the ID: 698501
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Slide1
Stephen GoldsmithDaniel Paul Professor of GovernmentDirector, Innovations in American Government ProgramHarvard Kennedy School
Social Innovation in Cities: More Necessary and More Likely Than EverSlide2
Social Innovation
Social innovation
is the spark that brings government, business, nonprofit, and philanthropy together to help people in their everyday lives.
Social innovators (i.e. civic entrepreneurs )
are helping communities to rethink education, housing, health care, and other core safety net programs. They take risks on new or existing ideas to ignite policy change, drive results, and give people real choices. They cut through bureaucracy and eliminate ineffective programs. They demand more of themselves but also of the citizens they serve.
What can cities do to drive local innovation?Slide3
Government Is Changing
1
Government
can’t solve complex horizontal problems with vertical solutions
, nor by simply accomplishing bureaucratic activities better.
2
The
role of government is being transformed
from direct service provider to generator of public value.
3
We won’t get the results taxpayers deserve nor citizens require until we figure out how to
better manage a government
that does less itself and more through third parties.Slide4
Hierarchical Government No Longer Suffices
It’s vertical in a horizontal world
It’s based on activities, not results
It values compliance over innovation
It’s hierarchical and control and command when we need discretion
Its systems—IT, budget, HR, Procurement, etc. are broken
It extinguishes real community participation
It commoditizes in a personalized world. Slide5
Activities Confused With Value
The point of all managerial activity is to “Create Public Value”: to transform existing social conditions in collectively desired directions
Demonstrations of public value creation lie in evidence showing changes in social conditions
Problem: Not everyone sees public value in the same waySlide6
Value- and Outcome-driven Governance
Articulate the goal of every activity in terms of the
value
being created for citizens. For example:
Improved public health, not better Medicaid;
Education for children, not just better public schools
Measure mobility, not new highway lanes or transit lines
Determine if the public good sought is a natural by-product of
another,
more fundamental good (better jobs create affordable housing as a by-product)Slide7
Example #1: Focus Less on Programs and More on Public Value
Before:
DC General Hospital
After:
DC Health Care Networks, From One to ManySlide8
Example #2: NYC Homelessness
MissionFounding mission: provide good, decent shelter
Hadn’t moved beyond that goal
“
“they
served homeless, but they didn’t solve homelessness”
NEW Mission:
preventing
homelessness
Vision
Systematic reallocation of resources; money and manpower devoted to ending homelessnessSlide9
Social Outcomes Stagnant or Deteriorating
High School Education Dropout Crisis
Male black graduation rate of 42% compared with 71% whites
2/3 who don’t graduate end up in prison
Wealth Disparity
In 2008, 39.8 million in poverty nationwide
17.2 million of these are in our country’s cities—the largest number ever in urban poverty
17% of the urban population lives in poverty, only 9.8% outside cities
Children in Single Parent Households
11.9% in 1970
26.32% in 2008Slide10
Not Enough Scale; Not Fast EnoughGovernment dominates funding
No market for innovationIron triangle of fundingReluctance to hold good organizations accountableBusiness leaders on boards not insisting on performance
Politics
Legitimacy does not = performance or accountability
*
INDIANA NONPROFITS: IMPACT OF COMMUNITY AND POLICY CHANGES, Survey Report #3 June 2004, see http://www.indiana.edu/~nonprof/results/npsurvey/inscom.htmlSlide11
Creating the Conditions of Social ChangeSlide12
Catalyzing Social Innovation:I.
Open Space for Innovation
Set aside risk capital.
To stimulate change, the President’s Social Innovation Fund and similar efforts direct public and private capital into new models and hold them accountable.
Identify and support exceptional successes.
Incubate innovation by helping grow the best programs already succeeding in their communities.
Import new expertise
into an organization or community.
Break apart “iron triangles”
between entrenched bureaucracies, incumbent providers and politically-connected funders that protect an underperforming status quo.
Stop social protectionism.
Elected officials, particularly legislators, must no longer protect existing programs by earmarking budgets or biasing regulations against new providers.Slide13
II. Trust in Citizens and Demand Side Change
Replace patronizing systems.
Don’t assume those seeking assistance will always be in need– and instead give citizens choices and hold them high expectations.
Ask for feedback on services
and take that feedback seriously.
Devolve access to information
from “experts” to citizens.
Develop new volunteer and donor goodwill pipelines.
Identify an unmet need and unleash people’s energy with activities they find meaningful and productive.
Leverage social media.
Make the most of new attention grabbing ways to mobilize fellow citizens.Slide14
Integrating Two Approaches
Public Value
Better Services
Better Outcomes
Better Citizen-Generated SolutionsSlide15
III. Get Performance-Based Results
Trade good intentions for performance. Be less impressed with the ongoing efforts of good-hearted nonprofits and be willing to repurpose dollars to what works.
Repurpose dollars to what works.
Create a new market for better services to catalyze system-wide change.
Realign systems.
Take on the status quo, create a culture of collaboration, and develop new roles that closely match goals.
Take the first financial risk
to help individuals in whom you see potential, even when others see only liabilities.Slide16
Use Data Analytics and Big Data
to Unlock Value
Digital systems
are replacing paper-based ones
Breakthroughs in
data analytics
allow the examination of data in disparate systems
Social networking
and social sentiment analysis allows citizens to participate in solving problems in new ways
Handheld devices
can provide decision support to field workers and real time supervision to managers
Performance metrics
and
digital warehouses
make up the building blocks of this new model of preemptive government.
Open Data
and
transparency
encourage third party innovation. Slide17
Using Data Analytics
Predictive AnalysesBy highlighting common issues before they occur.
Question
: What factors make a building most at risk for fires?
Root Cause Analyses
By providing insights that explain common incidents.
Question
: Why are there frequent accidents at certain intersections? Which individuals best benefit from job training?
Increased Accountability
By monitoring areas for improvement.
Question
: Which City inspectors are behind schedule?
Improved Operational ManagementBy providing data-driven solutions to promote more effective business processes.
Question
: What are the best routes for City vehicles to take?Slide18
Role of Universities
Three main roles:
Knowledge Management
: documenting and facilitating information
Evaluation
: determining what works
Publish
: spreading word about best practicesSlide19
Examples of Social Innovation
Social Innovation Fund (SIF)
combines public and private resources to grow promising community-based solutions that have evidence of results in any of three priority areas: economic opportunity, healthy futures, and youth development
T
he
SIF
program provides funding to experienced grant-making intermediaries that match federal funds dollar-for-dollar and then select local nonprofits through a competitive processSlide20
Social Innovation Fund Model
Goal: change the normal course of government contracting where a group of professionals tightly prescribe sought after results and then ask for bids
Similar to venture fund model:
Seeks proposals for how to solve social problem
Contractor
chosen must meet performance
deliverables
stated in proposal
Work with local governments and private and non-profit sectors
Increased local experience
Additional fundingSlide21
Social Impact Bonds
Government pays for outcomes instead of effort
How it works:
Example: New York City and Goldman Sachs “Adolescent Behavioral Learning Experience” recidivism reduction program
Source: New York Times
http://www.nytimes.com/2012/08/02/nyregion/goldman-to-invest-in-new-york-city-jail-program.html?_r=0
Private investor
funds initial years of
a social
program
Program exceeds
goal
Program meets
goal
Program does not
meet goal
Government pays back investor , with bonus
Government pays nothing
Government pays
back investorSlide22
The Power of Social Innovation