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Determined to deliver: Private-sector ingenuity boosts public-sector results, through executive 'delivery units'

Christopher Colford's picture

Innovation is the Holy Grail of governance practitioners worldwide – but, when it comes to public-sector management, is there truly a “science of delivery”? Politics is “the art of the possible,” and governing often seems to be more a skilled craft than a predictable science – requiring an ad hoc alchemy of persuasion, pressure, guile and gumption.

Yet beyond its operational finesse or its scientific rigor, strong governance also requires something more practical – and perhaps more painstaking: diligent management. Improving government agencies’ performance is a key priority for policymakers, and private-sector-style thinking – especially about delivering cost-effective results, on time and on budget – can make a constructive contribution to public-sector management.

Public-sector leaders must always design finely tailored solutions that suit ever-shifting political moods, but they can also adapt the most deft techniques – many of them tested in the private sector – that emphasize achieving tangible results. With a blend of the private sector's can-do drive and the public sector's focus on accountability, an imaginative crosscurrent of ideas enlivened a recent “deep dive” conference at the World Bank that explored a relatively new management mechanism: the results-focused executive “delivery unit.”

The World Bank Group’s Governance Global Practice (GGP) teamed up with a global nonprofit foundation, the Centre for Public Impact (CPI), to convene an expert group exploring this recent innovation in public-sector management. The gathering – “The Future of Delivery Units: Accomplishments, Challenges and New Directions for Reforms at the Center of Government” – was co-sponsored by the President’s Delivery Unit within the Bank Group.

The forum heard various perspectives from governance practitioners, political theorists and academic scholars, along with both practicing and former civil servants. Much of the conference-goers’ thinking also seemed to have been influenced by private-sector logic. The conference’s pragmatism was reassuring amid this year’s primal-scream spectacle, in all too many countries, of political dysfunction. For many good-government idealists, it’s been alarming to see the tumult in many once-stable, now-volatile developed economies where an advanced capacity for governing had seemed well-established.



Bob Beschel, the Global Lead of the Center of Government Global Solutions Group – part of the World Bank's Governance Global Practice – convenes the conference's opening session. Photo by Lana Wong.

The use of delivery units should be evaluated “in the context of management innovation,” as the conference chairmen – Bob Beschel, the Global Lead of the GGP’s Center of Government Global Solutions Group, and Adrian Brown, the Executive Director of CPI – told the participants. Indeed, such consulting firms as the Boston Consulting Group (which funds CPI) and McKinsey & Company have long aimed to bring private-sector-minded efficiencies to public-sector institutions. Having labored in those vineyards awhile, some years ago, I came to see how creatively cross-pollinating ideas can transfer knowledge about best practices among the public, private, social and academic sectors.

More efficient ways to transfer remittances are emerging. Are migrants and their families ready to benefit from them?

Massimo Cirasino's picture

The price of sending international remittances has reached a new record low in the first quarter of 2014. The global average cost of sending money across borders was recorded at 8.36 percent. This figure is used as a reference point for measuring progress toward achieving the so-called “5x5” objective – a goal endorsed by the G8 and G20 countries – to reduce the cost of sending remittances by five percentage points, to 5 percent, by the end of 2014.

Most indexes of international remittance costs – published by the World Bank in the new, ninth issue of the Remittance Prices Worldwide report, which was released on March 31 – indicate good progress in the market for remittances.

The global average cost is significantly lower when weighted by the volume of money that flows in each of the report’s country-to-country pairs. The weighted average cost is now down to 5.91 percent, following a further decline in the last quarter. For the first time, the weighted average has fallen below 6 percent.

Nearly one-third of the remittance-sending countries included in Remittance Prices Worldwide have now achieved a reduction of at least 3 percentage points. Those countries include such major sources of remittances as Australia, Canada, Germany, Italy and Japan. This is also the case for 39 out of 89 of the remittance-receiving countries.