Networked Governance and Social Innovation

Dr Chris YappChris_yapp@hotmail.co.uk

The ContinuousImprovement Practice™Many small advantages make many large ones

April 10, 2023

Toffler’s Third Wave

Agriculture

Industry

Information

LAND

CAPITAL

KNOWLEDGE

Size of

Economy

Time

2

1970The ContinuousImprovement Practice™Many small advantages make many large ones

The Big Society

Public

Voluntary

Private

Business

Citizen

Community

The ContinuousImprovement Practice™Many small advantages make many large ones

04/10/2023 4

Social Innovations of the Industrial Society

• Limited Liability Company• Co-op, Mutuals, Friendly societies, Building societies• Trade Unions• Schools, Libraries, Museums, Modern University• Police, Fire Services• NHS• Local Authorities• ….

The ContinuousImprovement Practice™Many small advantages make many large ones

Friendly Societies

• Mutual, Fraternal, Benevolent Societies• 1793, Friendly Societies Act• Provided finance,insurance, welfare, health

services to members• Some organised on religious lines• Affiliations between bodies• Credit Unions

The ContinuousImprovement Practice™Many small advantages make many large ones

Building Societies

• 1774, Birmingham Building Society• Terminating Building Societies• Permanent Building Societies• 1874, Building Societies Act• ‘000s of Local Societies at peak• BSA• Mergers• 1980s, DemutualisationHome Ownership promoted by Private not-for-profit sector with Tax incentives

The ContinuousImprovement Practice™Many small advantages make many large ones

Co-operative Movement

• 1498, Aberdeen “Shore Porter’s Society”• 1761, Fenwick Weavers : first consumer co-

operative• Robert Owen• William King• 1844, Rochdale Pioneers• CRS/CWS/Co-op

The ContinuousImprovement Practice™Many small advantages make many large ones

04/10/2023 8

Social Innovations of the Information Society

• Post Office• BBC• BT• OU• ….

The ContinuousImprovement Practice™Many small advantages make many large ones

Some Important Learning

• 1850, Public Library Act• 1870, Forster Education Act• 1840s, Railway Mania• Canals, Telegraph...• LSE was a mutual till 2001• BPSL(ex-BACS) still is

New Organisational forms with new funding mechanismsMarkets better at exploiting infrastructure than building itNeed for “Patient Capital”: Bonds

The ContinuousImprovement Practice™Many small advantages make many large ones

The Vertically-integrated Organisation

CEO

Staff

Finance Personnel

Ops

CustomerService

The ContinuousImprovement Practice™Many small advantages make many large ones

Beyond the “vertically-integrated organisation”

• Supply-chain integration, JIT, Re-engineering

• Outsourcing– Property– Catering– HR and Finance– Security– IT

• Shared Services• Partnerships

• Joined-up Government

The ContinuousImprovement Practice™Many small advantages make many large ones

Outsourcing

• Benefits

Specialist ProvidersEconomies of Scale

• Problems

Contractual inflexibilityHollowed-out

communities

The ContinuousImprovement Practice™Many small advantages make many large ones

April 10, 2023

MIT90s paradigm

The

Organisation

External environment

Management

Processes Strategy

Organisation

Design

IT

People and

Roles

13The ContinuousImprovement Practice™Many small advantages make many large ones

April 10, 2023

MIT90s paradigm

The

Organisation

External environment

Management

Processes Strategy

Organisation

Design

IT

People and

Roles

Organisational

Culture

14The ContinuousImprovement Practice™Many small advantages make many large ones

ICT and Organisational Design

• Divide Organisation into operational units

• Build in co-ordinating mechanisms

• Automate Processes• Provide information to

management

The ContinuousImprovement Practice™Many small advantages make many large ones

Shamrock Organisation

Customer

CoreOrganisation

Contracted Fringe

Part-timeHelp

Source: Charles HandyThe ContinuousImprovement Practice™Many small advantages make many large ones

Shamrock Organisation

Customer

CoreOrganisation

Contracted Fringe

Part-timeHelp

Source: Charles Handy

Integrator/Prime Contractor

Economies of Scale

Peaks and TroughsSelf-

Service

The ContinuousImprovement Practice™Many small advantages make many large ones

Organisational Ethos

• Early 20th Century

Organisations charge for doing something for a citizen, community or customer

• Early 21st Century

Organisations charge for helping a citizen, community or customer to do something for themselves

The ContinuousImprovement Practice™Many small advantages make many large ones

04/10/2023 20

New Wave

• Amazon• eBay• Skype• Facebook• Google• …

• Social Enterprise• Community Interest

companies

The ContinuousImprovement Practice™Many small advantages make many large ones

Cloud Computing

April 10, 2023 21The ContinuousImprovement Practice™Many small advantages make many large ones

Web 2.0 and Broadband

• A New Utility• Open standards, technology and data• “Mash-ups”• Inter-organisational systems• Anytime, anywhere on any device• Location-based• Crowd-sourcing/Social NetworkingEconomies of Scope and Reach

The ContinuousImprovement Practice™Many small advantages make many large ones

Community Sourcing

Council Services

BusinessStart-up

Accounting

LEP

Legal

Recruitment

Property

AccountingAccounting

Legal

RecruitmentRecruitment

Property

Local Employer

SocialEnterpriseThe ContinuousImprovement Practice™

Many small advantages make many large ones

Minority Languages

Council Services

SomaliCommunity

PrivateServices

Voluntary ServicesCommunity

Site

FE College

EFL/ESOL

The ContinuousImprovement Practice™Many small advantages make many large ones

Diabetes-Public Health

Council Services

PakistaniCommunity

NHS

Voluntary Services

Community Site

Blackbird Leys

Community Site

The ContinuousImprovement Practice™Many small advantages make many large ones

Alzheimer's Support

Adult Social Care

Carers

NHS

Voluntary ServicesCommunity

Site

Patient

Community Site

The ContinuousImprovement Practice™Many small advantages make many large ones

Housing Association

Council Services

Tenants

Accounting

Housing Association

Legal

Recruitment

Property

AccountingDecorator

Electrician

RecruitmentPlumber

The ContinuousImprovement Practice™Many small advantages make many large ones

In Conclusion

• Economies of scale and scope• From bureaucracy to ad-hocracy• Self-service society• What Powers do Local authorities have now?• What Powers do they need?• Community sourcing• Localism

The ContinuousImprovement Practice™Many small advantages make many large ones