THE THREE SECTOR SOLUTION Delivering public policy in collaboration with not-for-profits and business THE THREE SECTOR SOLUTION Delivering public policy in collaboration with not-for-profits and business EDITED BY JOHN R. BUTCHER AND DAVID J. GILCHRIST Published by ANU Press The Australian National University Acton ACT 2601, Australia Email: [email protected] This title is also available online at press.anu.edu.au National Library of Australia Cataloguing-in-Publication entry Title: The three sector solution : delivering public policy in collaboration with not-for-profits and business / David Gilchrist (editor) ; John Butcher (editor). ISBN: 9781760460389 (paperback) 9781760460396 (ebook) Series: ANZSOG series. Subjects: Nonprofit organizations--Political aspects. Nonprofit organizations--Government policy. Public-private sector cooperation--Government policy. Public administration. Other Creators/Contributors: Gilchrist, David, editor. Butcher, John, editor. Australia and New Zealand School of Government. Dewey Number: 361.763 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher. Cover design and layout by ANU Press. This edition © 2016 ANU Press Contents Figures . vii Tables . ix Abbreviations . xi Acknowledgements . xv Contributors . xvii Foreword . xxvii Contextualising the Imperative of Cross‑Sector Working 1 . Introduction . 3 David J . Gilchrist and John R . Butcher 2 . Three Sectors, One Public Purpose . 23 Peter Shergold Part 1. Cross‑Sector Working: The rhetoric and the reality Overview . 35 Meredith Edwards 3 . From New Public Management to New Public Governance: The implications for a ‘new public service’ . 41. Helen Dickinson 4 . Partnerships between Government and the Third Sector at a Subnational Level: The experience of an Australian subnational government . 61 David J . Gilchrist 5 . The Contribution of Not-for-Profits to Democratic Process . 79 Tessa Boyd-Caine Part 2. Three Sectors: Three change agendas Overview . 107 Penny Knight 6 . Policy Impediments to Social Investments by Australian Businesses . 113 Leeora D . Black 7 . Navigating Reform in Contested Spaces: Reflections on not-for-profit sector regulatory reform in Australia, 2010–2013 . 131 Krystian Seibert 8 . Shining a Light on the Black Box of Collaboration: Mapping the prerequisites for cross-sector working . 157 Robyn Keast Part 3. Great Expectations: Outcomes and social impact Overview . 181 Nina Terrey 9 . Does Outcomes-Based Reporting Contribute to or Contradict the Realisation of Social Outcomes? . 185 Emma Tomkinson 10 . Not-for-Profit Accountability: Addressing potential barriers . 215 Dale Tweedie 11 . Results, Targets and Measures to Drive Collaboration: Lessons from the New Zealand Better Public Services reforms . 235 Rodney Scott and Ross Boyd Part 4. New Tools for Policymakers and Practitioners Overview . 261 Ursula Stephens 12 . Redesigning Procurement Strategies for Complex Policy Spaces . .. 265 Ann Nevile 13 . Alliance Contracting: How to progress in a world of uncertainty . 285 Cassandra Wilkinson 14 . Expanding the Role of Cooperative and Mutual Enterprises in Delivering Public Services: Disrupting the status quo . 301 Melina Morrison and Cliff Mills 15 . The Boundaries of Budgets: Why should individuals make spending choices about their health and social care? . 319 Catherine Needham Cross‑Sector Working: Meeting the challenge of change 16 . The Challenge of Change . 337 Paul Ronalds 17 . Conclusion . 353 John R . Butcher and David J . Gilchrist Figures Figure 8.1: Continuum of interorganisational relationships: The five Cs ......................................159 Figure 9.1: The changing role of government ................187 Figure 9.2: Changing expectations of government ............189 Figure 9.3: Red tape issues for NGOs ......................193 Figure 9.4: The impact analysis cycle ......................204 Figure 11.1: Stylised representation of performance management in the New Zealand Government .....................237 vii Tables Table 3.1: Elements of new public governance, in contrast with public administration and new public management ........44 Table 4.1: Year-on-year response rates ......................68 Table 7.1: Chronology of the ACNC reform process ...........141 Table 8.1: Summary of the key presenting processes used ......164 Table A8.1: Summary of collaboration exemplars .............178 Table 9.1: Job Services Australia star rating and star percentages ..200 Table 11.1: Results, targets and measures ...................239 ix Abbreviations ABS Australian Bureau of Statistics ACAG Australasian Council of Auditors-General ACNC Australian Charities and Not-for-profits Commission ACOSS Australian Council of Social Service ACT Australian Capital Territory ACTU Australian Council of Trade Unions ANAO Australian National Audit Office ANDI Australian National Development Index ANZSOG Australia and New Zealand School of Government APS Australian Public Service ARC Australian Research Council ASX Australian Securities Exchange ATO Australian Taxation Office ATSI Aboriginal and Torres Strait Islander BCCM Business Council of Co-operatives and Mutuals BPS Better Public Services (NZ) C4C Communities for Children CAD computer-aided design CBA cost–benefit analysis CDC consumer-directed care CEO chief executive officer COAG Council of Australian Governments CPSU Community and Public Sector Union CRN Collaborative Research Network CSCI Commission for Social Care Inspection (UK) xi THE THREE SECTOR SOLUTION CSD Community Services Directorate (ACT) CSI corporate social investment CSR corporate social responsibility DCSP Delivering Community Services in Partnership DES disability employment services DGR deductible gift recipient EHRC Equality and Human Rights Commission (UK) ESA employment service area FYN Family and Youth Network GDP gross domestic product GST Goods and Services Tax IBSEN Individual Budgets Evaluation Network ICA International Co-operative Alliance IYC United Nations International Year of Cooperatives KPI key performance indicator LHA Local Housing Allowance (UK) LNP Liberal National Party ML Medicare Local MOU memorandum of understanding NAB National Australia Bank NCEA National Certificate of Educational Achievement NCSMC National Council for Single Mothers and their Children NDIS National Disability Insurance Scheme NFP not-for-profit NGO non-governmental organisation NHS National Health Service (UK) NPC New Philanthropy Capital NPG new public governance NPM new public management NSW New South Wales NZQF New Zealand Qualifications Framework OECD Organisation for Economic Co-operation and Development PAF private ancillary fund xii ABBREViations PHN Primary Health Network PSP preferred service provider R&D research and development SA South Australia SBB social benefit bond SHS Specialist Homelessness Services SIP Services Integration Project UBIT unrelated business income tax UK United Kingdom WA Western Australia YWCA Young Women’s Christian Association xiii Acknowledgements The editors would like to thank the Dean of the Australia and New Zealand School of Government (ANZSOG), Professor Gary Banks AO, for his support and encouragement. The editors are grateful, too, for the generous financial support provided by Professor John Wanna, Sir John Bunting Chair of Public Administration at The Australian National University, and the Curtin Not-for-Profit Initiative, Curtin University. We also wish to thank the ACT Government’s Community Service Directorate for generously meeting the costs of recording the workshop, and cameraman Martin Helmreich for his capable videorecording and post-production work. With regard to the organisation of the workshop, the editors are indebted to Professor Wanna’s executive assistant, Claire Dixon; Jamie Kidson and the multimedia team at The Australian National University; and to Jacqui Burkitt, Nicole Mallick and Susie Bate from ANZSOG’s marketing team for their invaluable practical assistance. Thanks go also to Isi Unikowski for pitching in to help at the workshop, as well as to Sam Vincent for shepherding the manuscript through the prepublication process, Jan Borrie for her usual astute and meticulous copyediting and the team at ANU Press. Of course, neither the workshop nor this book would have been possible without the generous and enthusiastic commitment of the authors and presenters, the discussants and the session chairs. The last deserve special mention as they are not named elsewhere: Professor Andrew Podger, The Australian National University; Dr Alison Procter, ACT Community Services Directorate; and David Casey, Department of the Prime Minister and Cabinet. xv THE THREE SECTOR SOLUTION Special thanks go to Natalie Howson, former director-general of the ACT Community Services Directorate, and Simon Rosenberg, CEO of Northside Community Service, for setting the scene in their remarks to the pre-workshop dinner. And, of course, the editors are grateful for the enthusiasm shown by the workshop audience, who remained vitally engaged in the conversation throughout a packed and intellectually demanding day. xvi Contributors Dr Leeora Black Dr Leeora Black is Director of the Australian Centre for Corporate Social Responsibility and a leading authority on corporate social responsibility (CSR). Her work focuses on building competitive advantage and stakeholder wealth through CSR,