Public sector

From Distrust to Trust in Public Services

Public services are under pressure. The combination of difficult-to-implement laws and regulations and budget cuts has weakened service delivery. At the same time, implementation is expected to be more agile, to contribute to societal challenges, and to maintain a human touch in service delivery. But how can this be achieved? A key factor lies in how policy departments steer implementation and how implementation is held accountable. We need a different approach to implementation: from mistrust to trust. This means a different balance is needed in the steering and accountability indicators. Data innovation can accelerate this process. In doing so, implementing organizations must focus more on the interests of citizens and society, and less on the interests of policy. This article outlines the current bottlenecks, explains how we arrived at this point, and offers practical perspectives for change.

Reading time: 7–8 minutes

By Christiaan Gort and Tjalle Hoekstra of Turner

From the principal-agent model to the stewardship model

The principal-agent model has long been the guiding framework for the relationship between policy ministries and implementing agencies. This model assumes information asymmetry and is based on control, mistrust, and conflicting objectives. This economic model aligned well with the New Public Management (NPM) philosophy, in which the government is primarily viewed as a business, with an unequal relationship between policy and implementation. This has translated into performance indicators focused on details and inputs, extensive accountability requirements, and limited autonomy.
The report *Werk aan Uitvoering*[i] calls for replacing the principal-agent model with the stewardship model. This model is based on equality between policy and implementation, with trust, outcome agreements, and shared objectives. The stewardship model is better suited to the public sector, where organizations focus on realizing public values, and it better facilitates the transition toward a more human-centered approach to service delivery. This desired change requires a reassessment of the current management and accountability indicators.

Challenges indicate that the focus on implementation is too one-sided

We have identified three main issues regarding the current management and accountability indicators used by implementing agencies.

  1. Implementing organizations feel that their accountability burden is too heavy. Driven by a focus on control, risk avoidance, and mistrust, the demand for accountability has gone too far. It even appears to be having a counterproductive effect. The purpose of accountability is to ensure that resources are spent lawfully, effectively, and efficiently during implementation. The high pressure to be accountable increases the administrative burden during implementation. As a result, overhead and administrative costs are rising, leaving less time and resources available for service delivery. The high level of detail required for accountability also reduces agility. This means that those carrying out the work have less flexibility to do what is necessary to achieve their objectives.
  2. Current management and accountability indicators are often one-sided and quantitative. They focus primarily on output, efficiency, and/or compliance. Too little attention is paid to indicators that focus on quality and citizen-centeredness. Because of this one-sidedness, management primarily focuses on efficiency and the letter of the law rather than on client needs and the intent of the law. Frontline professionals are primarily driven by productivity targets due to agreements with policy departments. They do want to provide more personalized services to citizens, but are hindered from doing so. This is because such services take more time, which means agreed-upon production targets are not met. This undermines the human touch in service delivery.
  3. Current indicators focus too much on the past and not enough on shared objectives for the future. Implementing agencies are increasingly expected not only to deliver services but also to contribute to societal challenges. Think, for example, of sustainability and diversity goals. Policy and implementing agencies must establish shared performance agreements to give substance to these goals. This calls for indicators that focus more on outcomes and outputs and less on inputs and throughput. The primary focus should not be on accountability, but on joint steering. These indicators facilitate the necessary dialogue between implementation and policy and clarify which scarce resources should be prioritized in implementation.

Legality and efficiency-oriented thinking still too dominant in management

These challenges can be readily explained by the evolution of thinking regarding the role of public services. In this regard, we see three primary perspectives that have succeeded one another. [ii]

  • Public administration: In this classical Weberian conception, the focus of public service is primarily on legality. Implementation serves solely to apply established policy exactly as written, without room for individual interpretations or deviations. This requires a bureaucratic government that makes predictable decisions through guidelines and procedures.
  • New Public Management: Starting in the 1980s, the view of the government as a business gained momentum. The government had become too bureaucratic. Public services needed to perform better by operating more efficiently and effectively. Market-oriented thinking played an important role in this.
  • Public value management: In recent years, there has been an increasing emphasis on the realization of public values. While outcomes cannot be determined in advance, value creation takes place through interaction with citizens and society. Public service providers play a facilitating role in this process. In practical terms, this means that politicians and policy departments define public value through objectives and policy frameworks, and that public service providers are then given the freedom to work with society and citizens to find the best way to achieve it.

Implementing organizations have multiple roles. The dominant perspective may vary depending on the task. This is well illustrated by the NSOB’s model of the four roles of the government.

In recent years, the emergence of public Value management has led to greater attention being paid to the networking and responsive roles. These roles are also best suited to the challenges faced by implementing organizations in contributing to societal challenges and ensuring a human touch in service delivery. However, in the current governance and accountability framework, the emphasis on compliance and efficiency remains too dominant. This calls for change.

Figure 1: Various Roles of the Government (NSOB)

A New Balance Is Needed to Improve Decision-Making
The necessary changes are primarily a matter of striking a balance. The current emphasis on management and accountability is too one-sided and does not do justice to the multitude of objectives and values in public service delivery. It is not a matter of one or the other. Policy departments will need to be more open to autonomy in implementation. For accountability, greater use can be made of tools from the stewardship model, such as horizontal accountability, status reports on implementation, and public oversight. For the steering and accountability indicators, we propose three approaches to restore balance.

  1. From production, efficiency, and compliance to citizen-centered, quality, and customized services.
  2. From accountability (looking back) to joint management of policy and implementation (looking ahead).
  3. From input/throughput to output/outcome indicators for social impacts/challenges.

A better balance will lead to a more effective weighing of interests in the workplace, allowing for greater flexibility to prioritize citizens and societal challenges and to provide tailored solutions where necessary.

Greater trust in the dialogue between policymakers and those responsible for implementation

To achieve a better balance between policy and implementation—shifting from mistrust to trust in implementation—a different attitude is needed from both politicians and policy departments. The indicators are not primarily intended to hold anyone accountable, but to guide the process collectively. The purpose of the indicators is to facilitate dialogue between policymakers and those responsible for implementation. How do policy objectives translate into implementation, and what are the priorities? The set of indicators should give those responsible for implementation more leeway to be agile and innovative, with greater attention to the human dimension. This requires more than just numbers and indicators. These provide too narrow and superficial a picture of service delivery. They tend to discourage implementation rather than encourage it. A richer form of accountability[i] —one that not only quantifies but also narrates, using visuals and stories—helps better facilitate the conversation about service delivery and the dilemmas encountered in practice. Of course, the implementing agencies must live up to that trust. They need to be more sensitive to the political impact of the services, adopt an open attitude—including regarding problems (“no surprises”)—and first try to resolve bottlenecks on their own rather than immediately turning to the client for help.

Data innovation offers opportunities for renewal of management

The expanded capabilities in data usage offer many opportunities to provide figures for new performance indicators. A key prerequisite, however, is that implementing agencies improve their information management systems. Due to the many mergers and budget cuts of the past decades, many implementing agencies face the challenge of making data and systems more consistent and better integrated. Without this consistency, it takes a great deal of effort to provide insight into and report on service delivery, and the administrative burden remains high. In addition, implementing agencies are no longer solely dependent on available internal data; increasingly, they can draw on external data from other (public) agencies. This is an essential source to leverage, particularly for indicators focused on the societal impacts of program implementation.

Use the momentum to proactively initiate changes through policy

There is now momentum to make this shift. It is important that implementing agencies do not wait for policy departments to initiate changes. After all, the necessary change requires the empowerment of the implementation process, with implementing agencies playing an equal role. Instead of focusing primarily on the wishes and interests of policy departments, public service providers must focus more on what citizens and civil society partners need. They will have to take the initiative themselves and develop concrete proposals and conduct experiments on how to strike a better balance between guidance and accountability. Based on their practical experience, they know best what changes are needed. In doing so, implementing agencies can draw on the experiences of other agencies and engage in learning with one another, as more implementing agencies are addressing this issue. Where to start to put this change into practice? The following three steps provide a good starting point.

  1. Engage in discussions with clients and the owner regarding the implementation of the stewardship model, in accordance with the recommendations of the “Werk aan Uitvoering” report.
  2. Identifying one or two new performance indicators that support shared objectives and are focused on the intended social impact of the services.
  3. To take stock of the multitude of current performance metrics in order to eliminate those that contribute little.

[i] D. Heerschop and H. van der Vlist (2020). Work in Progress, Phase 2: Action Perspectives and a Summary of the Analysis, ABDTOPConsult

[ii] The Pursuit of Public Values (2021), Roeland Stolk, Henk Wesseling, and Pepijn van der Beek, Boom Bestuuskunde

[iii] J. Scherpenisse, J. Vos, M. van Twist (2020), “More Effective Accountability Through Leadership,” NSOB

Tjalle Hoekstra is a senior manager at Turner, specializing in data innovation, and assists organizations in the (semi-)public sector with Strategy Execution projects. LinkedIn

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