Innovation in the Irish public sector

Introduction\nInnovation is a widely used term, but one that seems to give\nrise to ambiguity in a public sector context. In part this\noccurs because there is a myriad of definitions on\ninnovation applying to business models but few specifically\ndefined for a public sector context and, secondly, the\nparameters for implementing innovation in a public sector\ncontext are quite different to those operating in the private\nsector. As Mulgan and Albury (2003) suggest, successful\ninnovation is ‘the creation and implementation of new\nprocesses, products, services and methods of delivery\nwhich result in significant improvements in outcomes\nefficiency, effectiveness or quality’. To achieve this outcome,\na number of critical factors require to be put in place, as\noutlined in Chapter six.\nResearch overview\nThis study attempts to assess the critical factors necessary\nfor public sector organisations that are implementing\ninnovation programmes. The research also identifies the\ncritical steps and cultural change needed of government\ndepartments and public sector organisations in order to\nbenefit more effectively from, and develop, innovation\npotential. The study also seeks to provide a useful guide to\norganisations undertaking innovative initiatives by learning\nfrom good practice case studies included in the study. The\nmajor challenge for the public sector is to develop a culture\nof innovation, to move from ad hoc initiatives to developing\na comprehensive strategy for innovation underpinned by\nfunding arrangements, by leadership from senior\nmanagement and by reward for managers who lead by\nexample, drive innovation and provide support for staff\nwhen they encounter project success and failure. The\ndevelopment of a reward system for innovators should\npercolate specifically through the PMDS system. The need\nfor this has been given further impetus by the proposed\nlinkage of the PMDS and Performance Related Pay (PRP).\nThe roll-out of the decentralisation programme and further\ndevelopments in the human resource management,\nfinancial management and knowledge management areaswill also shape the innovation agenda in the public service\nover the coming years.\nKey action learning points\nBased on the evidence from the case-study organisations\nreviewed in this study, a range of action learning points\nemerge relative to innovation. These action points can act\nas a guide with which to develop specific organisational\ninitiatives:\n1. Innovation needs to be driven by senior management\nand supported by management in times of success and\nfailure.\n2. A feasibility study of innovative projects should be\nundertaken at the outset to ensure core-funding. A\nconsultation programme with stakeholders should also\nbe conducted to ensure effective implementation.\n3. Encouragement of innovation reward schemes or\nexceptional performance awards at all levels will\nengender an innovative culture in the organisation.\n4. Further develop PMDS to encourage innovation and\nchange by linking it to PRP and provide promotional\nopportunities, by ensuring line managers identify staff\nin their sections for future promotions, and, moreover,\nprovide for additional annual increments to exemplars\nof innovation.\n5. Develop a comprehensive, rather than an ad-hoc\napproach to innovation across the public sector through\na systemic Practitioners’ Forum for innovators, change\nmanagers, who are developing or implementing\ninnovative initiatives across the public sector.\nConfidentiality is paramount to development of the\nForum, to provide a safe environment for practitioners\nto discuss successes and failures in the development of\ninnovative projects and initiatives. The suggestion for a\nPractitioners’ Forum originated from the Revenue\nCommissioners and was supported by all organisations\ninterviewed. Key informants suggest this forum should\nbe outside of funding bodies or departments and be\nmore a practical exchange of information and\nknowledge-sharing rather than a policy think-tank.\n6. Establish innovation indicators for organisations to\nmeaningfully compare innovation across the public\nsector. Existing performance or service indicators do not\nprovide a sound basis for comparison of the extent of\ninnovation undertaken in organisations, nor do they\nmeaningfully provide a true comparison of one\norganisation to another. There is a need for an\nassessment mechanism which would aim to measure\nthe extent of innovation in the public sector. It would\nclassify and apportion a weighting scale of accrual of\nefficiencies which could then be used by central\ndepartments when evaluating proposals submitted to\nthem.\n7. Structural obstacles and the cultural challenge should\nnot be underestimated. Development of a supportive\nentrepreneurial and innovative culture, where\nsuccessful innovation is rewarded and management\nsupports individuals in times of failure, will enable\nlessons to be learned without individuals who take risks\nbeing undermined. Perhaps a risk neutral attitude\nshould apply to innovative project development in the\npublic sector as opposed to the prevailing situation of a\nrisk averse attitude?\n8. It is important to acknowledge that innovation is costly.\nIt is necessary to allow teams to pull back to an extent\nfrom activities at the ‘coal-face’ to provide time and\nspace to develop new projects. Dependent upon the\norganisation, innovation occurs organically within the\norganisation, with the use of cross-functional teams,\nwork flexibilities, reward schemes and various\nincentives. In some organisations a small full-time\norganisational development resource works with\ndifferent parts of the organisation to examine issues of\nconcern in an objective way and identify opportunities\nfor innovation.\n9. Similarly, it is important to invest resources in regular\ntechnology scans to keep abreast of technological\ndevelopments and identify opportunities for the\norganisation.\nConcluding remarks\nThis study has sought to enhance understanding in relation\nto innovation in the public sector and also to provide\nlessons from initiatives implemented to date in the Irish\npublic sector. ‘What we need now is the entrepreneurial\nimperative. Innovation has to be the end in itself if we want\nto survive. It’s not sufficient any more to see innovation as\na means to an end. It has to be built into everything we do’\n(Professor Klaus Schwab, Founder and executive chairman\nof the World Economic Forum cited in Marc Coleman’s\narticle in The Irish Times, Friday, May 12th, 2006). The\nchallenge now for the public sector is to develop an\ninnovation culture underpinned by a comprehensive\ninnovation strategy, to provide a supportive environment to\ndevelop ‘enterprising leaders’ for the modern public sector\nrather than 'loose cannon-balls’.\n

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