New Public Management: Lean State, Lean Government

(April 23- May 1, 2006)
By Manuel J. De Vera

Manuel J. De Vera

The seminar on new public management (NPM) under the fellowship of the International Academy of Leadership in Gummersbach, Germany provided 25 participants from all over the world the value of a workable framework in the determination of correct policy direction and options for governance to keep pace with the challenges of a globally competitive environment. As presented in the seminar, the NPM is a strategic tool in managing development with the aide of market principles and objectives. The holistic approach of NPM in involving all stakeholders and the general public in policy-making and implementation is a critical construct in achieving the successful management and delivery of public services. This report is divided into three parts: a) Highlights of the Seminar b) Application of NPM and c) Challenges and Overall Assessment.

I. Key Highlights of the New Public Management Seminar

1. Lean State, Lean Government. This concept re-evaluates the value of an efficient government. It stresses minimizing costs by identifying services that are of real value to the citizenry and eliminating unnecessary peripheral services.
2. Outsourcing. Consistent with the philosophy of a lean government, outsourcing is a key concept. It gives public administration the option to provide better service via contractual management with the private sector.
3. Customer Orientation. The customer is king is perhaps governance’s most important consideration; hence, it would give the best value for public service. The “Burgerservice Gummersbach” provides an excellent model for reassuring the public that the government’s duty is to provide service to its citizenry. The organization’s effort to instill a new kind of service mentality in its civil servants is indeed laudable, and it can serve as a workable model for other societies.
4. Flat Organization. Borrowed from private management, NPM’s support of a flat organization eliminates the unnecessary hierarchical process of tasking and decision-making. It instead empowers civil servants with the responsibility to effect change and promote value within the organization.
5. Incentives on Performance-based targets. Incentives for civil servants, be it cash or non-cash benefits, for performance-based targets should be an acceptable practice among public institutions. It engenders efficiency in the workplace.
   

II. Application of NPM

As learned from the seminar, NPM has the definite potential to solve problems in areas in local governance where micromanagement is tenable. While the seminar discussed the NPM model as the framework for governance, it did not thoroughly discuss how it can bring its tools to the general areas of concern: the economy, security, the pension system, etc. It is understood that NPM is not a panacea for general concerns and cannot prescribe a “one size fits all” model for all countries, but an attempt to provide macro NPM solutions would be most welcome. This would generate debate to further the cause of NPM. A maximalist position on the NPM system should establish a more critical appreciation of the need to provide solutions to a wide spectrum of problems.

III. Challenges of NPM

While NPM as a framework for governance already poses an incredible challenge to the existing system of public administration, it is even made more so as the support or even awareness of the citizenry to support or accept NPM is very limited. Hence, NPM as a strategic tool for change would need its “tipping points” or “trigger factors” as enabling mechanisms. It cannot be denied that in societies or environments where clientilism and information asymmetry are prevalent, NPM is not demand-driven. The success of NPM will largely depend on enlightened political leaders or the vigilance and active support of the media and NGOs, which are invariably stakeholders in the advocacy of NPM. To create demand therefore for NPM, and to pursue and facilitate its objectives given the limited political capital of leaders are the crux of this challenge.

Although most of the key concepts of NPM were discussed, the unstructured presentation of the KGST was a missed opportunity for all the participants especially since the topics on product approach, competition and benchmarking are critical elements in the determination and evaluation of public services. Admittedly, the results of the seminar were less integrated because of this eventuality.

Overall, the NPM seminar was well managed with excellent and competent facilitators and speakers. The logistics and accommodations were very satisfactory. More importantly, the online phase III of the seminar is a good idea as it maintains the established network and allows for the continued discussion of NPM.