Working with Change: Systems Approaches to Public Sector
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OECD Observatory of Public Sector Innovation An initiative of the OECD’s Public Governance and Territorial Development Directorate Working with Change Systems approaches to public sector challenges WORKING WITH CHANGE Systems Approaches to Public Sector Challenges Preliminary version Co-funded by the Horizon 2020 Framework Programme of the European Union GOV/PGC(2017)2 TABLE OF CONTENTS FOREWORD ................................................................................................................................................... 5 EXECUTIVE SUMMARY ............................................................................................................................. 8 SYSTEM APPROACHES IN THE PUBLIC SECTOR: FROM THEORY TO PRACTICE ...................... 10 Introduction ................................................................................................................................................ 10 Managing complexity in the public sector: the case for systems approaches ............................................ 12 Challenges of using systems approaches in the public sector .................................................................... 19 Use of information in highly complex environment: evidence versus action ........................................ 19 Learning and adjusting the system: the feedback loop dilemma ............................................................ 20 Turning a system off .............................................................................................................................. 21 Speed of change ..................................................................................................................................... 22 Systems approaches to public service delivery: approaches and emerging evidence ................................ 23 TOWARD A FRAMEWORK FOR SYSTEMS TRANSFORMATION ..................................................... 29 New systems-based practices ..................................................................................................................... 29 Systems thinking and design thinking: different but complementary approaches ................................. 30 Strategies to manage complexity: what options for the public sector? ...................................................... 32 Working with relative precision ................................................................................................................. 36 Toward a systems transformation process ................................................................................................. 38 People & Place ....................................................................................................................................... 38 Dwelling ................................................................................................................................................. 39 Connecting ............................................................................................................................................. 41 Framing .................................................................................................................................................. 42 Designing ............................................................................................................................................... 44 Prototyping ............................................................................................................................................. 45 Stewarding .............................................................................................................................................. 46 Evaluating............................................................................................................................................... 48 SYSTEM APPROACHES IN PRACTICE: CASE STUDIES ..................................................................... 49 Systems approach to tackle domestic violence - Case Study of the United Against Domestic Violence program (Iceland)....................................................................................................................................... 49 Summary ................................................................................................................................................ 49 Context ................................................................................................................................................... 49 Initiating a Process of Systems Change ................................................................................................. 51 Impacts and Systems Effects .................................................................................................................. 55 Using system approaches in policy design – Case study of the Experimental Policy Design in Finland .. 58 Summary ................................................................................................................................................ 58 Context ................................................................................................................................................... 58 Initiating a process of systems change ................................................................................................... 59 Emerging practice of experimentation ................................................................................................... 66 Impact and effects .................................................................................................................................. 69 2 GOV/PGC(2017)2 Systems approach to reshaping organization’s purpose and working methods - Case study of the Child Protection Services in the Netherlands ...................................................................................................... 70 Summary ................................................................................................................................................ 70 Context ................................................................................................................................................... 70 Initiating a process of systems change ................................................................................................... 73 Impact and effects .................................................................................................................................. 79 Using Systems Approaches to Regulate the Sharing Economy – Case study of public transportation in Toronto (Canada) ....................................................................................................................................... 84 Summary ................................................................................................................................................ 84 Context ................................................................................................................................................... 84 Initiating a Process of Systems Change ................................................................................................. 87 Impact and Effects .................................................................................................................................. 93 CONCLUSIONS ........................................................................................................................................... 95 Lessons from the case studies: results of testing the application of the systems transformation framework95 Challenges and opportunities in the public sector ..................................................................................... 98 When should public policy makers use systems approaches? ................................................................ 98 How much should public managers and civil servants know about systems approaches? .................... 99 How should public managers use systems approaches in the public sector? ....................................... 100 ANNEX 1: DEFINITIONS ......................................................................................................................... 102 ANNEX 2: A BRIEF HISTORY OF SYSTEMS APPROACHES............................................................. 103 ANNEX 3: CASE STUDY METHODOLOGY ......................................................................................... 108 ANNEX 4: INTERVIEWS CONDCUTED FOR THIS STUDY ............................................................... 110 REFERENCES ............................................................................................................................................ 113 Figures Figure 1. The Cynefin Framework ............................................................................................................. 15 Figure 2. Development of systems thinking: towards methodological pluralism ...................................... 16 Figure 3. Complexity of the American strategy in Afghanistan ................................................................ 17 Figure 4. The Vanguard method for ‘Check’ ............................................................................................. 24 Figure 5. The Ashby Space ....................................................................................................................... 34 Figure 6. Three Complexity Regimes .......................................................................................................