Public Governance

The UN Global Compact

" The Global Compact is a purely voluntary initiative. It is not a regulatory instrument, it does not police, enforce or measure the behaviors or actions of companies. It relies on public accountability, transparency and the enlightened interest of companies, labor and civil society to initiate and share substantive action" · is a voluntary initiative, not a binding regulation or guideline · builds on the approach of a shared value · no intermediation of governments

Main forms of privatization

*Delegation (all collaborations including the private but the main decision-maker is the public) -Contract -Public-private competition -Frnachise -Public-private partnership -Grant, loan, favored tax status, etc. -Voucher -Mandate *Divestment -Sale -Free transfer -Liquidation *Displacement -Default -Withdrawal (load shedding) -Voluntary Action (voluntarism) -Deregulation

The UN Global Compact: Partnerships

- UN Global Compact creates opportunities for partnerships among different stakeholders - especially among businesses - main point: how to connect businesses and SDGs with the rest of the environment - UN Global Compact creates a network and supports the stakeholders in matching their impact

Targeting collaboration: example - Solomeo

- collaboration seems to be supported by this analysis - low opt cost, no internal competences to promote the city so you need private partners, is very strategic

CSR vs. CSV vs. ESG

1) CSR · related to moral reasons: philanthropy and citizenship ® value: doing good · separate from profit maximization ® no direct link to profit maximization - it's hard to measure how it influences your profits 2) CSV · value: economic and societal benefits relative to cost · joint company and community value creation · strictly related to profit maximization 3) ESG: · using o Environmental factors that include the contribution a company or country makes to climate change through greenhouse gas emissions, along with waste management and energy efficiency. o Social factors that include human rights, labor standards in the supply chain, adherence to workplace health and safety, integration with local community o Governance factors that include a well-defined corporate governance system can be used to balance or align interests/ tasks / responsibilities between stakeholders and can work as a tool to support a company's long-term strategy. · used to evaluate countries and companies on how advanced they are regarding sustainability

The price of collaboration through stakeholder mapping

1) Government: -pro: increase security, alleviation of financial burden -cons: risk of collusion and exploitation, costly (min. wage, cost of surveillance and facilities), reduced control of prisoners 2) Private business owners -pro: readily available workforce, philanthropy and social reputation, lower recidivism -cons: risk of importing criminality in the firm, inadequate workforce, time and resource consuming 3) Prisoners -pro: rehabilitation, free training -cons: risk of exploitation 4) Citizens - pro: increased safety and security (lower recidivism) -cons: potential misallocation of tax money

Porter's 5 forces that shape competition

1) Threat of new entrants 2) Bargaining power of suppliers 3) Bargaining power of buyers 4) Threat of substitute products or services 5) Rivalry among existing competitors *Government is a factor that influences the 5 forces * 5 forces of Porter represent the company's market environment affecting company's ability to be profitable and efficient but they are not enough ® there's also company's nonmarket environment

Example of Public Governance and Contract Management from NY and its Public Healthcare System: The Need: Challenges for Collaborative Care

o Problem of Efficiency: - Clinicians spend a significant amount of time to contact patients often unsuccessfully - Limited ability to address no-shows and appointment adherence o New Challenges During the Covid-19 Pandemic: - Patient engagement with rapid transition from majority in-person visits to telehealth visits: - Difficulties in administering clinical tools in telehealth; - Challenges in ensuring the same quality of clinical interactions in telehealth compared to in-person visits. o The need is the stepping stone -> if you don't have strong evidence behind your need, what you want to do probably won't happen (the data in the graph shows that what you're saying is empirically proven) -> you put together a strong why and then you go for it

Contract Management: the case of Philadelphia - main info

o The Transitional Work Corporation - a nonprofit corporation that was created to help welfare recipients comply with the time limits in-corporated into the federal welfare reform legislation of the mid-1990s. - established in 1998 as a cooperative response to welfare reform. - mission: to serve people seeking self-sufficiency utilizing the transitional jobs model to provide opportunities and support leading to more competitive employment. - was a government contractor, providing critical services to the city of Philadelphia and the Commonwealth of Pennsylvania but it was also an independent, mission-driven, nonprofit organization with multiple sources of revenue. o Philadelphia@Work - The primary relationship for participants in the Transitional Work Corporation's Program, Philadelphia@Work (P@W), is with a Career Advisor. · The Career Advisor will guide the participant through the transitional work experience and provide continued support through the first six months of permanent employment. · Career Advisors will manage an active caseload of active participants (participants in transitional employment) as well as an inactive (employed) caseload of participants. The work includes a series of weekly one-on-one meetings conducted with the transitional employee to provide feedback and guidance to the individual. · the Career Advisor may conduct regular peer support sessions with other transitional workers assigned to the Career Advisor. o Responsibilities include maintaining case management files on individual transitional workers (active and employed) and providing management with appropriate reports on participant status when requested. - Anytime you have to manage a contract, you will always face problems -> you're considered a good contract manager if you can confront them - non-profit = private = independent from an organizational point of view; although was a government contractor - Q: How to measure the performance of this project? · comparison of results of survey in the areas of the city where project was performed and where it wasn't performed [e.g. in terms of employment rates] or before and after [=pre-post analysis] · conducting a survey on the satisfaction of participants o The city embraced annual performance-based contracts because they can be an effective way for government to hold vendors accountable. - but if the government contract managers are not thoroughly familiar with the work of the contractor and do not actively engage the contractor in developing the performance measures, they may end up emphasizing the wrong measures, setting thresholds that are too high or too low, and providing a lower value of service to the citizen/consumer. - In the case of TWC, the city did not discuss the performance measures with TWC in advance, and the contracts were not finalized until several months into the one-year term of the contract. - Performance measures: · Enrollments—people who sign up for the program; · Participants who successfully complete the program; · Participants placed in permanent jobs; · Participants that receive longevity bonuses for staying in their permanent jobs - Annual performance-based contracts: the contract signed required a check of the performance of the project every year · seen as a way to keep under control the implementation of the contract -> however, the tool itself is not sufficient, it's important how you use the tool

CSV: distribution

o increase and change in the quantity and scope of distribution through involvement of new actors and exploitation of micro-finance o shared value: environment, recipients (employment) and entrepreneurs; they all gain from this process o ex: Hindustan Unilever - Problem: underprivileged female entrepreneurs and impossibility to reach the rural areas - Solution: micro-credit, training, employment of women in the delivery process

The Hyderabad Metropolitan Water Supply and Sewerage Board: Framework of Analysis

§ after identifying stakeholders and placing their decisions in the context, we: 1) determine what's discretion, who handles it, what are the responsibilities and the tasks of the private and the public · =trying to understand what type of power, responsibility is in the hands of different stakeholders, esp. private and public 2) discuss pros and cons of each alternative 3) look at how different alternatives could undermine or not the identity of the public org. we represent, what's the added value or opportunity cost of each alternative, and the strategic importance of the public utility they're speaking about - we pretend to be a part of the management team whose leader is Gopal (person appointed by the board to find proper solutions)

Example of Public Governance and Contract Management from NY and its Public Healthcare System: What is the role of the legislator?

· As an assembly member you want as much support from constituents as possible à tricky situation where you need to identify which group is more vulnerable and really balance interests out · Also think about the long-term gains in politics

· How to measure a partnership performance?

· KPIs - Key Performance Indicators should be SMART: o Specific o Measurable o Achievable o Relevant o Timely o + Consistent with the values you wanna represent - need to adjust the KPI with the partner - the companies need to set SMART goals but at the same time if they want to represent shared values with societies, the goals need to be consistent [ex: case of UNICEF]

Channel Collaboration and Information Partnership

· The mission of the Wal-Mart/P&G Business team was to achieve the long-term business objectives of both companies by building a total system partnership that leads their respective companies and industries to better serve our mutual customer - the consumer o create points of contact between two realities by sharing info related to the choices of consumer: giving preferential channels to their own products

Targeting collaboration: example - public prisons

-don't internally develop abilities to rehabilitate the prisoners -should be more strategic -the mission of prisons: not to give a job but to rehabilitate -opt cost: many risks cause of involving private actors in an environment requiring a lot of control

What is a shared value?

-the concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates -shared value creation focuses on identifying and expanding the connections between societal and economic progress [combining business and social needs]

The Hyderabad Metropolitan Water Supply and Sewerage Board: Class proposal

- Change of identity is too drastic -> need for a partial change of core functions while leaving the mission unchanged - Opportunity for new solutions (e.g. new solutions of managing and providing water, improving quality of infrastructure) - Everything needs to be implemented within the framework of public constraints (timing, regulation, etc.) -> you need to check if all proposals satisfy public needs - Pay attention to incentives (CSV, ESG) · idea: helping the private and understanding how much the social values are important for the business itself ® the way of public intervention that's important and opens lots of job opportunities - Ideology: · NGOs are important from ideological point of view · the idea of privatizing water can face some resistance, esp. from NGOs · it happened -> NGOs raised their voice to speak against privatizing water supply (=involving the private in providing water) that they equalized with privatizing a public good

The role of IOs

- Global issues need global solutions. International organizations launched declarations on global principles for corporate behaviors - Thus, International Organizations are supporting the establishment of multi-stakeholders initiatives that represent BGR mediated by IOs. Examples: · A) OECD Guidelines · B) United Nations Global Compact

Example of Public Governance and Contract Management from NY and its Public Healthcare System: About NYC Health + Hospitals

- NYC Health + Hospitals is the largest public health care system in the United States. - We provide essential inpatient, outpatient, and home-based services to more than one million New Yorkers every year - It has more than 70 locations across the city's five boroughs. · Our 11 acute care hospitals · Our five post-acute/long-term care facilities · Gotham Health is our network of clinics across NYC. · MetroPlus: health insurance for more than 500,000 New Yorkers. - Collaborative Care Program · 30 H+H primary care across the five boroughs Over 400 Clinicians Involved

The non-market environment's influence: example

* What is the link between Plasmon biscuits and European Commission? · Plasmon biscuits produced by a company Kraft Heinz producing also ketchup, they are usually given for kids · link: EU law on food information to consumers o entered into application 13 Dec 2014 o there's an obligation to provide nutrition information -> EU Commission requires a certain level of transparency w.r.t. the list of ingredients o before the law, the ingredients could include a vegetable oil: now, more clarified and specified descriptions are required o consequences: mothers started to bomb Kraft Heinz · conclusion: the case shows how the nonmarket stakeholder could compromise with the law the ability of the Kraft Heinz in being competitive and profitable; mothers playing the role of activists in turn

The non-market environment's influence: example 2

* Who are the non-market stakeholders relevant for the operations of a firm competing in a global industry such as Mattel? · Mattel: a toy producer, including Barbies · Greenpeace campaign to change the packaging of the company ® changed operations of the company ® nonmarket stakeholder playing an important role · many decisions taken in nonmarket environment affect the companies; companies may partner with nonmarket stakeholders to find common solutions

The UN Global Compact: Mission

*"Business as a force for good" -> by committing to sustainability, business can take shared responsibility for achieving a better world · companies are not left alone · very consistent with CSR idea *aim: mobilizing a global movement of sustainable companies and stakeholders to create the world we want -> to do that we support the companies to: 1. do business responsibly by aligning their strategies and operations with Ten Principles on human rights, labor, environment, and anti-corruption 2. take strategic actions to advance broader societal goals, e.g. UN SDGs

What is a contract?

- A definition: Contracting is a situation where a government organization enters into a relationship with a private, non-profit or other government agency to provide a quantity and quality of services for a negotiated price for a fixed time period. - A contract has to be specific enough to provide a high quality good or service, but flexible enough to allow for that a good or service to be modified to meet the government's evolving needs. - Contracting is a tool for improving organizational performance! - A contract typically includes information about: · price · schedule · the definition of the service/product being delivered · the amount of service/good being provided § The government is the principal and the contractor is the agent: · The agent has to perform an activity (for instance, service provision) on behalf of the principal. The way of acting of the agent may affect the principal. The principal - agent relationship is characterized by the asymmetry of info and by differences in the final goals.

Contract Management: the case of Philadelphia - How would you fix these problems as a consultant?

- Maybe include a third party to implement controlling - Go back to identifying the needs and make sure the quality is included® the investigation phase; screening of the market' what are the true needs of your community; what can you propose in terms of efficient solutions - Stating some penalties -> accountability - Ensure the quality of water - better communicating the expectations for quality, not just costs - give the private companies a chance to examine the field before they sign up to a contract so they do not underestimate the need for investments example for KPI: quality of water, customer satisfaction, accessibility, expenditure for public sector

Mapping Non-Market Strategy: example - The Dubai Ports World controversy (description)

- The Dubai Ports World (DPW) controversy began in February 2006 and rose to prominence as a national security debate in the United States. At issue was the sale of port management businesses in six major U.S. seaports to a company (DPW) based in the United Arab Emirates (UAE), and whether such a sale would compromise port security. - Although the sale was approved by the executive branch of the United States Government, various US political figures argued that the takeover would compromise US port security. - US President George Bush argued vigorously for the approval of the deal, claiming that the delay sends the wrong message to U.S. allies. Legislation was introduced to the United States Congress to delay the sale.

The New York State Assembly

- The New York State Assembly is the lower house of the New York State Legislature and the New York State Senate being the upper house. - There are 150 seats in the Assembly. Assembly members serve two-year terms without term limits. - Very Strong Accountability towards their constituents! - Has 150 voting districts

Contract Management: the case of Philadelphia - What went wrong? What problems did Atlanta face?

- The city had underestimated the workload that had to be done - Little performance evaluation in the early years; managing and controlling the implementation of the contract - miscommunication of needs (Atlanta not being totally upfront about the extent of them problem and oldness of their water utilities, since after the contract signing they had to do thousands more repairs than expected), understaffing by the private water company, lack of KPI during contract period, and private company overpromising at an unfeasible price for the sake of beating their competitors. - Too much focus on quantity instead of quality

The approach to purchase: Decision-making process

- The comparison of tenderers' proposals is based on a score system evaluating both the technical and economic dimension - For commodities and standardized good, services or works the economic dimension is prevalent: · Technical dimension : min 20% - max 40% · Economic dimension: max 80% - min 60% - For personalized good, services or works the technical dimension is prevalent: · Technical dimension: min 60% - max 80% · Economic dimension: max 40% - min 20% - The decision-making process requires an evaluation committee composed of an odd number of members (generally 3 or 5) in order to have a clear majority. - All members must have professionality, autonomy, independence, integrity, morality, ethical behavior

Shared discretion for serving public needs

- examples not found in the book but brought up by other colleagues from previous years -> not mandatory to remember these examples 1: Barcelona Prato airport · one of the largest and busiest in the world · there are security concerns - how to keep them of high quality? · Aena: public company controlling all airports in Spain, originated as a state company in 2010 · Eulen: private company fulfilling requirements related to the security · collaboration between Eulen and Aena 2: shared discretion in military settings - involving the private in military security of the country · topic usually debated in the US · debate on how much the security of the country should be in hands of the private sector? 3: involving business owners in providing training and rehabilitation for prisoners 4: Progetto per la bellezza in municipality of Solomeo; private foundation [not-for-profit partner] joined the forces with the public to revitalize the town of Solomeo

Privatization: the experience of developing countries - water utilities privatization as a failure: Why?

- the privatization took place because the idea was to shift the burden of investment from the public to the private and bring more efficiency to this sector, and improve the quality of infrastructure - why did it fail? · many times private investors were not aware of true needs of local communities, were just global partners (foreigners) not aware of local conditions - one girl did a thesis on Hyderabad, turned out the privatization has never happened - why? · 1. ideology: NGOs did a lot of pressure against privatization but their position was contrary to the World Bank · 2. private investors didn't see this privatization as a good investment, unbeneficial in the long term

CSV: How able the company is to determine public needs? (Potential CSV risks)

- very often difficult, requires big effort - sometimes institutions have a mandate to understand what public needs are because we don't know them ourselves - companies can't act alone ® don't have the skills to detect and understand the true public needs o companies are moved by self-interests o so possible way of exploiting CSV is the one of using guidelines and partnerships

Mapping the non-market environment

-5 forces of Porter represent the company's market environment affecting company's ability to be profitable and efficient but they are not enough -> there's also company's nonmarket environment -The non-market should be seen as an endogenous and not as an exogenous variable, because it could be influenced by businesses and market actors -> the effect of non-market could be both on the firm and both on the industry -> this is way in the BGR arena companies look for alliances (associations) -Bach & Bruce Allen enlarge the perspective by saying that company's ability to be competitive doesn't rely only on the market but also on non-market and its stakeholders (NGOs, citizens, governments, regulators, media, and activists)

The Contract Manager responsibilities

-Control payments for successful delivery -> Monitor and measuring outputs -Report to governance group -Provide relationship mgmt -Prioritize risk mgmt -Analyze reporting -Monitor compliance with contract terms -Organize contract admin and record keeping -Contro l

The IA3 framework

-Starts always from an issue (more effective if it is a question) - Takes into consideration multiple variables and it is dynamic -Allows to identify potential alliances for solving the issue -Settles the basis for shaping a strategy for solving the issue (future classes will be a source of inspiration!)

Contract Management: the case of Philadelphia - Who are the main stakeholders?

-citizens as customers of services with lowered costs -the city of Atlanta (2 levels) that benefits from the contract in terms of improved health of the water system, reputation and infrastructure -Mayor Campbell and City Council bc of the potential increased consensus linked to the satisfaction of public needs -private company "United Water Services of the Suez Lyonnaise des Eaux Group -> in terms of profit and awarded reputation -employees who suffered cutting because of managerial choices linked to increased costs -Federal Govt (for the extension of the service)

Collaborative public governance

-we have a number of stakeholders who bring their voice without collaborating -> problem of resources appears -the needs and the voices of stakeholders are many might be useful but only when we find the bridge to collaborate -there's a rising need to go from many unrelated, disconnected voices to a collaboration, network-based approach -stakeholders often have different needs, goals, and objectives but need to collaborate to reach the consensus and get something out of their network -we focus on the collaborative governance in this course o Governance with a management point of view: features of governance implementation. - an effective public governance requires to take into consideration different perspectives. - the shift from governing to governance, meaning a necessary inclusion of stakeholders and the importance of non-market players. o Public Governance is a field that evolves along with the society in which it is applied, its complexity reflects that of the relationships in modern societies and the degree of decentralization of governance. o There are more stakeholders involved than we think ® not only market ones ® and they all play a role in the governance process (e.g. Governments, regulators...) o It's important to identify all stakeholders, map them and find a solutions/ projects /ideas for engaging them: successful business have shown the relevance of non-market strategy. - but is it correct to treat the non-market strategy (also called non-competitive strategy) separately from the traditional market strategy? And is it correct to call it non - competitive? Why not to develop Hybrid Strategy when the role of Government is relevant?

Example of Public Governance and Contract Management from NY and its Public Healthcare System: who solves MTA problems?

1) Andrew Cuomo· - former governor of NYC o Cuomo nominates the President and CEO of MTA, he appoints the main members of the Executive Board, and MTA HQ is in Albany - MTA operates only in NYC o New York City OMB shows that the City of NYC paid $4.8 billions in taxes, fees, and cash in 2015 and $5.3 billions in ticktes/fares. Cuomo publishes a $800 million plan to save MTA and ask NYC di pay half of it o His proposal: "Congestion Pricing" - It would place a surcharge on all private vehicles entering central business districts in Manhattan: - Private cars under 60th Str - Uber and Taxis under 96th Str - $11.52 charge for cars, a $25.34 charge for trucks, and a charge of $2 to $5 per ride on for-hire vehicles entering congestion zones. - It could generate between $810 million and $1.1 billion annually - There wasn't much NYC could do -> new governor is trying to find a congestion pricing strategy that could work for New York - Also consider powerfully lobbying and interest groups -> Cuomo is a moderate/conservative democrat so a millionaire tax would be too progressive as a policy 2) Bill de Blasio - mayor of NYC o He would probably want the state to cover the budget o The average constituent wouldn't want to pay a penny o Remember: almost half the people in New York state live in NYC o His proposal: "Millionaires Tax" - A 0.534% increase on the income tax rate for incomes above $500,000 for individuals, and $1 million for couples. - That constitutes less than 1 percent of the city's taxpayers or about 32,000 people, according to the Mayor's office. - In 2018, the tax will raise $700 million for MTA. Of these additional funds, $250 million will be allocated towards half priced MetroCards; up to 800,000 low-income New Yorkers are expected to benefit from this program o A lot of the elected officials that sit down to represent their district don't want to pay for NYC (the rest of the state is far more rural and people have their own car ® the constituents there have no interest in the MTA and they don't want to pay, with their taxes, for New Yorkers to ride the subway) o The situation is tricky, because on the other side you have New Yorkers who pay a lot of taxes, and have to pay each time they use the subway system o Other interesting point is that the State in NY is Republican and the NYC is democratic ® incredibly different interests between the state and NYC o The proposal chosen was congestion pricing

The approach to purchase: example - call for tender

1) Participation criteria defined in the tender specification · Pag 14: economic and financial, to be proven by filling the form annexed · Pag 16/17: technical capacity o Experience to be proven also with "certificates of satisfactory execution" o CV 2) Awarding criteria: Value for Money · Technical part: 60% (the sum of the scores assigned to the technical project is weighted by 60%) o Methodology: 40 points o Organization: 30 points o Quality: 30 points · Price: 40% o The score to the price is given by applying the following formula: cheapest price/price of the tender x

Contract Management: Key potential problems

1. Problems related to letting contracts 2. Communication issues 3. Contractor internal management issues 4. Government contract management issues 5. Environmental or external issues

Contract Management: Common Mistakes

1. insufficient planning prior to the transition from award of contract to the contract execution phase; 2. poor communication; · linked to asymmetry of information 3. insufficient resources (capacity and/or capability); · internal management issues explained as lack of capacity and capabilities · ex: in the case of performance management you can build a sound and comprehensive set of KPIs 4. inadequate governance and/or confusion of responsibilities; · governance is a time-consuming approach; you risk losing time by listening to different stakeholders etc.; when you make decisions this should be done by someone who has this responsibility 5. poor decision making; · the way in which the contract is written and implemented this could bring to some confusion or gray area; since the call for tender there could be some criteria for selecting participants to the call for tender ; public managers need to prepared to avoid and anticipate this; a point raised by the Recovery Fund by the EU 6. vulnerability to fraud and/or corruption; 7. ineffective risk identification and mitigation · penalties could be a way to mitigate or anticipate risks

Example of Public Governance and Contract Management from NY and its Public Healthcare System: The case of MTA (Metropolitan Transportation Authority)

=- The MTA is the largest public transportation network in N America. · 352 bus routes and subway lines. · It serves 15.3 million people across NYC, Long Island. · The MTA employs more than 75,000 people. · The operating budget for 2020 was $17 billion. · Nearly 2.4 billion (2,376,000) rides were taken in 2019, with an average weekday ridership of 7.7 million. - It is run by the state of NY, not the city government! - What do New Yorkers think about MTA? · New Yorkers have a poor opinion of MTA · MTA is vast and one ride is $2.75 and you can go anywhere · Very cheap, but think about how much money New Yorkers spend on taxes -> they expect a lot (you can't drive in NY so the MTA is the "soul of the city") · The MTA has a lot of issues -> poor maintenance, old infrastructure (ex: WWII trains), weekends the trains don't run (so take the subway or a bus)

OECD Guidelines for IOs and NGOs

For the first time, NGOs are given the right to submit complaints concerning the activities of companies to OECD member and adhering countries through the National Contact Points (NCPs). -OECD stakeholders - should benefit from guidelines: • National Governments (NCPs) • International Organizations (OECD) • NGOs - control behaviors of companies and inform national contact points if the company's behavior is consistent with guidelines; watchdogs • Businesses -OECD Watch is an international alliance of NGOs which facilitates civil society's activities around the guidelines -facilitates implementation of the guidelines • main idea: o each country takes a position, decided to endorse or not the guidelines o to translate the guidelines into local businesses, they ask NGOs to help in implementation o companies through the support of NGOs and public institutions start translating guidelines into code of conduct (CoC) all companies have them and are very consistent with the OECD guidelines - The NGOs all around the world support the Guidelines through the network • no direct link between OECD and companies!! only countries issue laws

OECD GUIDELINES vs UN GLOBAL COMPACT: similarities

OECD guidelines & UN Global compact: -scope: voluntary/reputation, "blaming mechanism" - stakeholders and domains: HR, Env, Labor, Corruption -National Chapters: *OECD: National Contact Points (NCPs) -UN: Local Networks and meetings

Differences between market and non-market

Market: -exchange of money: who's a leader is successful -leadership -flexibility: you need to be flexible towards different needs and goals -predictability: market dynamics based on predictions -> it's easier to foresee the dynamics of the market -value (profitability): profitability as the final goal Non-market: -exchange of information: information moves the market -coalition/alliances (alliances can be with non market actors or other firms in the same industry or industry associations): the one is successful who can build coalition and alliances -uncertainty (several differences also within the same country): there's much uncertainty, it depends on so many externalities and variables -> HUGE list of stakeholders -> hard to predict their behaviors -values * companies need to find balance between both of these environments

OECD GUIDELINES vs UN GLOBAL COMPACT: differences

OECD guidelines: - only companies that operate in or from any of the 48 countries -member countries fund it -stakeholder representations: institutionalized bodies e.g. OECD Watch -clear structure of compliant mechanisms (OECD Watch & NCP) -continuity of checks: compliant system UN Global Compact: -local networks in >90 countries -participating companies fund it -stakeholder representations: indvidual participation of NGOs and labors -complaint mechanism: only to preserve the integrity of the initiative -Communication of Progress

Why to map a non-market strategy?

a) Businesses are social and political beings, not only economic actors b) Because companies create and distribute value, a plethora of actors seek to influence them: · Formally, through laws and regulation · Informally, through social pressure, activism and efforts to shape the public perception of business c) These elements form the non-market environment and any approach to strategy formulation should consider them also. · there is no one unique market, they are interconnected d) Successful businesses have shown the relevance of the non-market environment. But is it correct to treat the non-market environment separately from the traditional market one?

Why governance? The example of health

governance approach becomes more important for health due to 1) COMPLEXITY: the concept of HEALTH has been changing over time and it has become more and more complex •not only regarding last 1,5 years •when thinking about health, we think more about both the physical and MENTAL conditions public managers need to provide services consistent with this complexity •more complexity -> more needs that become more complex -> someone needs to answer these public needs -> answer: public organizations 2) COMMUNICATION & INFORMATION: the increasing exposure to info and networks increase the expectations (e.g. expectations for care, treatments, innovative solutions etc.) •focus on social media -> faster communication but also created expectations -> we expect to be vaccinated, live as long as possible, as much as possible, find solutions for cancer etc. because of news we're fed with these expectations and demand for satisfying needs provide some solutions though to current problems •e.g. when taking a vaccine, we already knew about all the possible side effects 3) BUDGET CONSTRAINTS: the financial - economic crisis led to a reduced availability of resources within the health care systems worldwide •gap between available resources and population' needs •resources in terms of money but also human resources and physical settings {e.g. hospitals for vaccines}

Privatization & PPS - Definitions

o "Privatization is the act of reducing the role of government or increasing the role of the private institutions of society in satisfying people's needs; it means relying more on the private sector and less on government". o "The term "public-private partnership" is particularly malleable as a form of privatization. It is defined broadly as an arrangement in which a government and a private entity, for-profit or nonprofit, jointly perform or undertake a traditionally public activity. It is defined narrowly as a complex relationship ⎯ often involving at least one government unit and a consortium of private firms⎯ created to build large, capital-intensive, long-lived public infrastructure, such as a highway, airport, public building, or water system, or to undertake a major civic redevelopment project. Private capital and management of the design, construction and long-term operation of the infrastructure is characteristic of such projects, along with eventual public ownership".

The price of collaboration [all stakeholders involved in collaboration have to pay the price]

o +: The shared discretion can augment government's capacity for accomplishing public missions and increase the flexibility with which such missions are pursued. o -: The shared discretion also extracts a price. Authority becomes ambiguous, strategic complexity grows, and accountability breakdowns proliferate. -> o The critical question for policy is when that price is small and when large relative to the gains achieved from granting discretion. o When that price is small, discretion should be shared; when large, held tight.

The Hyderabad Metropolitan Water Supply and Sewerage Board: The Alternatives to privatizing utilities

o A) Universal service obligation imposed upon the concessionaire. - probably not attractive for the private who needs to invest own money o B)To fix a coverage expansion schedule while allowing the concessionaire flexibility to choose where such expansion will occur - quite pragmatic - conditions must be interesting for the private and public o C)Recommend that service to the slums be the responsibility of the Municipal Corporation of Hyderabad (MCH), and that the Corporation fund expansion of water and sewerage services to slums through its tax revenues and its foreign aid programs - both private and public involved to address specific needs o D) Any other alternative? Negotiation between public and private to find incentives to make affordable investment

CSV: location

o Because of the rising costs of energy and carbon emissions, greater recognition of the productivity cost of highly dispersed production systems, and the hidden costs of distant procurement, companies now challenge the myth that location no longer matters. o These trends may well lead companies to remake their value chains by moving some activities closer to home and having fewer major production locations, where they can establish deeper roots in important communities o ex: Olam Int. - opening local processing plants and training workers in Tanzania, Mozambique, Nigeria, and Cote d'Ivoire - so it cut processing and shipping costs by 25% and greatly reduced carbon emissions - and built preferred relationships with local farmers

IKEA & UNICEF Case Discussion: What are the actions to be undertaken, in terms of definition of result indicators suitable for the evaluation of the partnership?

o Confrontation of child labor rate in Utter Pradesh (where the partnership operates) and other regions (difference in difference) o Degree of school enrolment (since the beginning of the partnership) + degree of participation in the self-help groups + drop out rate (in combination with income evolution) o Awareness of the community of consequences of child labor -> survey, interviews o Awareness of the opportunities offered by the partnership o Degree of (women) employment o Family (involved in the project) income & women income -> financial indicators o Satisfaction o Investments for IKEA o Health conditions of women & kids o Respect of the ethical code for suppliers

Why Contract Out?

o Crisis Management: - Urgency · Previously, they had time to assess the need, go through the whole process etc. · Now though, there was no time to negotiate or get a sense of a long-term process - Time Constraint · urgency and time constraint created a need to act in the moment and take initiative immediately - Large Scale - Flexibility Needed · find, hire and move people quickly - No time to develop expertise - No time to staff up! o Staffing Contract: - Staff on Site Fully Contract Out: · Borough Managers - Private Consulting · Site Leader - Vizient/Execu Search · RNs - Vizient · Clerks - Vizient · NPs - Execu Search - Contracted out: consulting agencies and also staffing agencies (clinicians, site leaders à you have agencies to provide all these people) - Even if you contract out, you still need to monitor the quality of the service · Ex: one of the 2 staffing agencies weren't performing as well (was slower, some of the people they were giving weren't showing up etc.), so as time went by, they changed the contract quickly o Key Performance Indicators: - Rapidity, · =give me people quickly - Accuracy, - Reliability · =you need people to show up, and you need them to be quick when unpredictable things happened o Staffing Figures: - Between the last two weeks of May and the first half of July 2020, 32 Mobile Testing Centers went live - More than 200 Teams (1 site lead, 1 NP, 1 RN, 1 Clerk) - 2,500 staff members hired and deployed (70 site managers) - 13 Acute Care Facilities involved in Go-Lives o Competence and Skills: - Emergency Management - Relationship Management - People Management Time Management

The procurement and contract management cycle

o Cycle: Identification of needs, Plan contracting, Request Proposals, Select partners, Contract negotiations, Close and implementation of the contract o Every year, over 250 000 public authorities in the EU spend around 14% of GDP on the purchase of services, works and supplies. In many sectors such as energy, transport, waste management, social protection and the provision of health or education services, public authorities are the principal buyers. Public procurement refers to the process by which public authorities, such as government departments or local authorities, purchase work, goods or services from companies. Examples include the building of a state school, purchasing furniture for a public prosecutor's office and contracting cleaning services for a public university o The Public Procurement Principles -Free Competition -Economic viability, effectiveness, efficiency -Transparency

Privatization: the experience of developing countries

o During much of the 1990s, water utilities worldwide experienced a wave of privatization, in particular of divestment of state-owned enterprises. Two hypothesis that may explain the reason for privatizing: 1) The fiscal hypothesis: it suggests that privatization will relieve governments of the burden of investment. 2) The efficiency hypothesis: it suggests that water utilities performance will improve under private ownership because it is 'obviously' more efficient than the public sector. o *Divestment: shedding an enterprise, function, or asset. Like delegation, this requires a direct, positive act by government but unlike delegation it is a one-time event. The enterprise or asset is either sold or given away as an ongoing business, or shut down. Where state-owned enterprises are abundant, "denationalization" is frequently used to mean divestment (Savas, 2000).

Corporate shared value (CSV)

o Every firm should look at decisions and opportunities through the lens of shared value. This will lead to new approaches that generate greater innovation and growth for companies - and also greater benefits for society (Porter and Kramer, 2011) 1) by reconceiving products and markets · example: video by General Electrics o didn't do philanthropy but their own business -> but one doesn't exclude the other - [e.g. pharmaceutical company can donate medicines for poor countries and therefore address their markets by selling their drugs] · meeting societal needs through products and addressing unserved or underserved customers 2) redefining productivity in the value chain, in terms of: [ways in which shared value thinking is transforming value chains:] - energy use and logistics + resource use · 1) energy use and logistics: major improvement in energy utilization through better technology, recycling and numerous other practices - all of which create shared values o logistical systems are beginning to be redesigned to reduce costs o ex: Costa Coffee reduced their energy use and improved their influence on the environment [their sustainability] plus reduced their costs - nearly 40% reduction in energy use from a 2009 baseline implementing a new energy management system standard - reduced costs plus satisfied public needs · 2) resource use: new approaches to use resources more efficiently; environmental awareness and advancement in technology are fostering the process o ex: Ford Motor Co. reduced water consumption by 883 mln gallons annually and reduced costs by $22 mln annually

· From expectations to KPIs

o Expectations « Expected Results « Goals « KPIs - KPIs measure our ability to reach our goals o Example: The CEO of a pharmaceutical company decided to create, within the Value and Access function, a new team whose task is to generate real world data able to demonstrate the clinical (but not only) value of the company portfolio for the clinicians, patients etc. (all the stakeholders and decision makers). The evidences [real world data] produced by this team are fundamental for the drug assessment process carried out by Drug agencies (e.g. EMA, Aifa, HAS etc). · Aifa decides whether to approve vaccinations for kids 5-11

Collaborative governance

o Given the complexity of managing the public sector / interests, a «force multiplier» is needed in order to create public value - if we want to produce value for all stakeholders involved we need the force multiplier - connected with a wave of reforms of New Public Management (NPM) - taking inspiration in managing public needs from and involve the private sector that is very efficient o The collaborative governance = carefully structured arrangements that interweave public and private capabilities on terms of shared discretion - we shouldn't copy and paste but to BUILD agreements btw public and the private - shared discretion: shared freedom in making decisions · public and private should share their responsibilities, expertise, means, tools to create common solutions - is the interaction between private and public to co-create solutions to satisfy public needs

Example of Public Governance and Contract Management from NY and its Public Healthcare System: Approvals and Contract Negotiation

o The Contract Review Committee review and approve the Project - There are other committees that you need to go through and achieve "approval" - ex: IT committee that you need a person from that office from and you give them the specifications etc o Contract Benefits and Funding are discussed o HIT Prioritization Committee Review o Contract Negotiation and Signature: payment schedules, milestones, etc. - you agree of payment schedules, the timeline of delivery etc.

Case study: UNICEF-IKEA

o Global Compact found UNICEF as a partner for IKEA o UNICEF's partnership with IKEA began in 2000 when UNICEF supported IKEA in developing the company's child labor code of conduct. o That code, "The IKEA Way on Preventing Child Labor", describes the specific demands IKEA places on suppliers and sub-contractors to prevent child labor. o Based on national law, relevant ILO conventions, and the UN Convention on the Rights of the Child (CRC), the code clearly states that all actions must always be in the best interests of the child. o The first program IKEA funded was a Child Rights Project in the state of Uttar Pradesh (the carpet belt) in India. o The partnership has the following aims: - Mobilizing the rural communities by preventing child labor through school enrolment drives and alternative leaning centers (ALCs); - Involving 1,600 women self-help groups aimed at debt reduction: · child rights, education, health and nutrition, saving money and business skills; · strategy for economic empowerment embroidering IKEA cushions; - Committing the Children's Ombudsman for Southern Asia (Delhi). o The IKEA Foundation has also invested in UNICEF's work to prevent child labor in India's cotton and cottonseed farming areas. It is estimated that 28 million children are involved in child labor in India, of which two thirds work in the agricultural sector, as mentioned in the background section. o Since IKEA is a large buyer of textiles in the area, the IKEA Foundation is committed to go beyond the reach of the company's efforts to secure good working conditions in its supply chain. o The aim of these efforts is therefore to address the root causes of child labor and thus prevent and eliminate child labor in the cotton and cottonseed growing industries in several Indian states

The Hyderabad Metropolitan Water Supply and Sewerage Board: case study information

o Hyderabad—city of over 4 million in the southern Indian state of Andhra Pradesh - 7th largest city in India, fast-growing o Technology-based development Need to provide infrastructure to firms and households

IKEA & UNICEF Case Discussion: Who are the stakeholders to be actively involved?

o IKEA o UNICEF o smaller NGOs/welfare organizations - e.g. "Alternative Learning Centres" that IKEA collaborates present in the field o children & mothers - families in general o state & local authorities o IKEA's investors o everyone in IKEA's supply chain o the agricultural sector (part of ikea's supply chain, many children are employed in it)

IKEA & UNICEF Case Discussion: · Who would be the beneficiaries of the partnership be? What could the impact on them be?

o Local communities/families - but also India as a whole - will benefit directly o IKEA/UNICEF - are stakeholders so should naturally benefit o local business environment (enlarged virtuous cycle) - can benefit but can also lose profit [children paid less] bc you need to change your ways of doing your own business o workers that replaced children o local governments/state government

Example of Public Governance and Contract Management from NY and its Public Healthcare System: Contract Implementation

o NOTE: this whole process so far has to do with the leadership, so after this to have a successful implementation you need to have some steps: o Think about the patients -> you need someone to have the app - Ensure that the clinicians know how to use the app -> ensure they are prepared in order to implement the contact efficiently o How to be successful? - Engage with your Stakeholders · the first thing is engaging with the stakeholders (ex: leadership of the clinics) and tell them: this is the need, this is what I've done to solve your problem · You also need to outline the expectation and have a conversation with relevant stakeholders to create a timeline of objectives to meet for app development (ex: user count, features, targeted consumers) - Bottom Up Approach (especially with difficult stakeholders) · Then you also need to choose your approach -> she chose a bottom up approach (which is useful with difficult stakeholders) · In the medical sector you're talking to doctors, who don't really care about you, so anything you're telling them to do, you need to show them how it'll make their life and the patients' lives easier · So: she went to different hospitals and organized webinars to essentially" sell the app" - Get them involved! · You also need to get people involved -> make the ownership to go from you centrally to the people who have to use the app - Let them own it - Lead and Clinical/User Champion - Manage Expectations · Managing expectations is really important -> the clinicians wanted an interactive software where people could talk, but leadership wasn't supportive of that, so you need to be clear with the clinicians from the beginning and impose the strengths of the app - Share a Timeline - Recurrent Training o How to select Pilots? [Performance Evaluation] - Volunteers · Look at volunteers -> you need people who are actually interested in this, and their stories need to be the selling point · Can be difficult because even if you go with volunteers, there might be clinics that are difficult to work with and leadership is difficult etc · When you have volunteers, you need to take what you get · After the volunteers you want all possible type of clinician · Essentially, you need an emblematic site that comprises a lot of things - Complexity - Engagement - Strong o There is a team within the hospital that does the performance evaluation of the product -> work with them to define the metrics you're interested in, and work with them to see if you've been successful or not - People who spend money on this stuff want to see how the app is doing

Targeting collaboration

o Not every public goal, to be sure, requires or can benefit from collaboration. - the final aim is never the collaboration, collaboration is a tool while satisfaction of public goods is the goal o Before deciding to collaborate, an organization must decide if it is willing to accept a change in capacity. In order to decide if collaborating a number of issues have to be taken into account. Among the main ones: - It is important to recognize the organization identity. An organization may decide that to adequately perform its core function, it must shed other functions. The issue of collaborating must be viewed in light of the issue of organizational capacity. The decision is a decision to retain and emphasize an area of distinctive competence and internal skills - What can be the added value for the organization? What is the opportunity cost? Many times collaborating represents the opportunity for a reduced price or the need for access to new proprietary technology. But pay attention not to loose internal capacity to deliver outputs by becoming too reliant on the work of other organizations. · opportunity cost: I am lending the money to you, instead I could lend it to the bank and get an interest on these money; my opportunity cost is the interest I'm not getting by lending the money to you and not to the bank - How much strategic a service /activity /function is for the organization? Among the environmental variables to be taken into account: political calculus, ideology, etc. o Collaborating as a tool - a mean and not an end! = 3-dimension-cube: - internal competences/skills - strategic importance of the service - cost opportunity

Managing Privatization: what pre-conditions are needed to increase the possibility of success of privatization? (by Sava)

o Requires political will (support of political actors) o Assign responsibility to agencies carrying out privatization o Establish clear objectives o Select type of privatization o Pass necessary laws o Transparent procedures o Determine value of assets o Deal fairly with employees of state-owned firm o Gain public support - Sharing of values: being able to demonstrate to the public that it's important to share values

Example of Public Governance and Contract Management from NY and its Public Healthcare System: App and Smartphone Technology

o Research shows smartphone technology can enhance collaborative care services o over 80% of Americans own a smartphone o An increasing number of individuals access the web primarily through smartphones o Studies have validated the use of technology to support health-related communication for mental illness.

Example of Public Governance and Contract Management from NY and its Public Healthcare System: COVID-19 testing

o The Washington Post: "Mayor De Blasio Says He Wants Every New Yorker to Get Tested For Covid-19, Especially if They've Attended Protests" o NYC created testing sites ® idea of test and trace (she opened a lot of test centers during the peak of the pandemic) o She focused a lot of places that weren't "clinical" -> senior centers, schools etc. o De Blasio stripped control of virus tracing from the Health Department -> he wanted H&H to do it (Health and Hospital acknowledged that they would be responsible for test and trace) - this was a project with a lot of media attention o 3000 workers were hired in a short period of time for contact tracing, but there were a lot of difficulties in the beginning o A lot of testing sites opened during the BLM protests, to keep people as protected as possible o What happened is that a lot of managers were taken from their programs and they were given roles -> the decision making here is different -> they decided to contract out basically everything

Example of Public Governance and Contract Management from NY and its Public Healthcare System: A Greater Mental Health Need under Covid

o The need for mental health services has grown in our communities. o Recent study found 3-fold higher prevalence of depression symptoms in all demographic groups during COVID-19 o Burden disproportionality falls on individuals with lower income o Potential for large scale and long-lasting mental health consequences of COVID-19 in NYC H+ H patients - There are a lot of homeless people in NYC - A lot of people who live in poor communities are served by the public health service ® our own population, specifically in the pandemic have high levels of depression etc. -> that's why you're proposing this mental health program

IKEA & UNICEF Case Discussion: What is the aim of the partnership?

o Through an innovative approach to development, i.e. that of public-private partnerships, the IKEA-UNICEF partnership aims to prevent and reduce the exploitation of child labor in Northern India, particularly in the carpet belt region of Uttar Pradesh by ad-dressing the root causes. Through an operationalization* of the child labor in Uttar Pradesh phenomenon, the figure below depicts the root/ underlying and immediate causes of child labor in Uttar Pradesh. - *Operationalization: process of defining the measurement of a phenomenon that is not directly measurable o This partnership is among the partnerships that involve core business operations and value chain. - =IKEA doesn't do pure philanthropy o This type of operation aims to "create positive shared value for host countries and communities by mobilizing the innovative technologies, processes, products and skills of the private sector to help achieve international goals through what are increasingly called "inclusive business models", "base of the pyramid" models, or creative capital-ism".

Why privatization? (reasons fostering privatization process)

o a) Public enterprises performed well, but not well enough - increasing performance of public enterprises o b) Public enterprises often have multiple, ambiguous and conflicting objectives - trying to clarify the objectives of the public enterprises o c) Part of world-wide governance reforms o d) Perceived advantages of markets (what happened in developing countries -> the private becomes more able to be flexible and becomes market-oriented, becoming more efficient): - Competition - Specialization of producers - Improved service and innovation - Managerial flexibility - Efficiencies - Reduced government corruption

CSV: employee productivity

o changing practices in the value chain to drive productivity through better utilizing resources, employees, and business partners · a business has own mission of doing profits - can create value by managing their own productivity · Increasing awareness of the positive effects that a living wage, safety, wellness, training, and opportunities for advancement for employees have on productivity. Hence, companies are increasingly investing in health care coverage for their employees. · Because of lost workdays and diminished employee productivity, poor health costs them more than health benefits do · ex: Johnson & Johnson - helping employees to stop smoking and implementing wellness programs o so the company could save $250 mln on health care costs, and a return of $2.71 for every dollar spent on wellness from 2002 to 2008 o so the company has benefited from a more present and productive workforce healthier people produce more -> productivity behind this, not philanthropy

· When measuring a performance of something, you cannot take into consideration a single dimension but also:

o ethics - relates to the code of conduct - to what extent is it applied? o equity - ex: how much the emergency room is accessible for all patients? - the extent of discrimination o legality o esp. in public setting - public institutions need to define the needs of the public mainly o economic dimension combines input and output and outcome - relationship between input and output = efficiency - relationship between output and outcome = effectiveness - relationship between input and outcome = economic sustainability · refers to the long run; how much the investment of input can satisfy the public needs o efficiency and effectiveness can be measured by KPIs o combines quantitative and qualitative approaches o hard to find same indicators for any type of reality

CSV: procurement

o improving the quantity and quality of inputs through investments, technology-sharing, and the increase in access to inputs o shared value: environment, producers (income) and buyers; they all gain from this process o ex: Nestle - Problem: poor and unreliable suppliers, degraded environment and low quality of coffee - Solution: through financial aids, supply of technology and specific tools Nestlé was able to improve the quality and quantity of the inputs, while benefiting the environment along with the living conditions of the producers themselves

The approach to purchase: From whom to purchase?

o it is necessary to define the different suppliers' features (participation criteria) 1) The tenderer's features (in terms of experience, reliability, suitability to pursue the contract performance targets) are defined by the Contracting Authority in the call for tender: · Personal situation of the candidate or tenderer (moral requisites) · Suitability to pursue the activity · Economic and financial standing · Technical and/or professional ability 2) The tenderer's features (as requested by the Contracting Authority) must be: · Clearly defined in the call for tenders · Not discriminating or unreasonably excessive with respect to the object of the tender · Consistent with the requested performance

The approach to purchase: How to purchase?

o it is necessary to identify and apply the proper procedure - Open procedure · All interested economic operators can submit their tender after the publication of the call for tender · The Contracting Authority must consider all the submissions - Restricted procedure · All interested economic operators can apply to the call - The Contracting Authority will select the candidates on the basis of: o information about their personal situation o evaluation of their financial and technical capability · The Contracting Authority will invite only the selected candidates to submit their tenders (short list) - Negotiated procedure · The Contracting Authority can consult the economic operators of its choice and negotiate the terms of contract (from both a financial and a technical point of view). · This procedure is generally limited to some specific circumstances. · Within EU, a negotiated procedure can be used to run the so called "competitive dialogue", when the authority interacts with selected candidates (selected by applying participation criteria) in order to receive specific inputs and ideas related to the service/product to be bought. Generally it is applied when the authority is not able to define exactly the features of the product/service to fulfil a need. In some cases, the authority is neither able to define exactly the need.

The approach to purchase: What to purchase?

o it is necessary to identify the requirements and to specify how to satisfy them 1) Technical specifications and standards · In order to avoid restrictions of competition, the EU has adopted a standardisation and certification policy, implemented by specific Directives aiming at standardising the contracting authorities. · They have to adopt standards, i.e. technical specification approved by a recognised standardising body for repeated and continuous application which guarantee wide competition. · The contracting authorities must describe the subject of the contract (technical specifications) in the form of objectively formulated performance requirements. · Contracting authorities must be careful not to infringe the Treaty principles. · Thus, specifications must not discriminate either directly or indirectly suppliers from other member countries. · Pay attention to the INVESTIGATION phase! 2) Selection / award criteria · Two selection / award criteria in order to evaluate a tender: o the lowest price o the most economically advantageous tender - Value for Money

Example of Public Governance and Contract Management from NY and its Public Healthcare System: Sum-up

o they did good at selling the app and at finding support from the clinicians but an important barrier was the interactive part - (ex: the patients do this survey to see how depressed they are, and the score should go straight to their health record -> this was really important for the clinician because it saved time; in the beginning this was part of the first approvals, and then leadership changed their mind, and so because of this some clinicians decided to not launch the app; on the other hand what she tried to do was work with the producer to offer more perks to the clinicians who still decided to launch the app, such as more language) o They launched the app on 10 sites -> both the clinicians and patients are happy with them o Good specifically with the situation where most people she serves are under-served communities

How to map a non-market strategy?

the idea cube: management tool used to map market stakeholders using the IA3 framework · ask 6 questions going through the idea cube: - What's the issue?(A company's non-market environment is organized around issues. A business should take a position on an issue if the issue's resolution could significantly affect the company's ability to create and/or appropriate value.) -Who are the actors? (Identifying the actors who care about the issue. What are their interests? What these actors actually want? What motivates them? What do they hope to achieve and how critical is this issue for them?) -In what arena do the actors meet? ( nonmarket issues can play out in multiple settings, from courtrooms and regulatory proceedings to parliamentary committee hearings and industry forums, to the news media etc.) -What information moves the issue in this arena? (The kind of information that can influence the resolution of an issue varies across arenas) -What assets do the actors need to prevail in this arena?(While having the right kind of information for a given issue and arena is critical, other assets matter as well. E.g. a broad network of contacts and the ability to assemble and mobilize coalitions quickly can be critical assets.) · it's not an academic tool

Permanent Partnership

· "A collaborative relationship which transcends national boundaries and brings together at least three parties, among them a corporation (and/or industry association) and an intergovernmental organization, so as to achieve a shared development-creating goal (health/education/environment) on the basis of a mutually agreed division of labour" (Buse and Walt 2000) · partnerships are created to deliver societal outcomes and ensure added value to all parties involved in the middle-long run.

Mapping Non-Market Strategy: example - The Dubai Ports World controversy (applying IA3 framework)

· 1) Actors with a stake in the issue o "Does DP World's management of US ports pose a security risk?" - Bush administration, departments represented in CFIUS, DP World, P&O, Port of Singapore Authority o "Should a country associated with terrorism control our ports?" - Congressional Democrats, Congressional Republicans, governors, unions leaders, media commentators · 2) Relevant actors' interests o "Does DP World's management of US ports pose a security risk?" - Protect US national security, maintain strong ties with the UAE o "Should a country associated with terrorism control our ports?" - Democrats want to win Congressional seats by brandishing their national security credentials; Republicans do not want to be outflanked and have diminished loyalty to an unpopular president; governors hope that port security challenges will lead to new federal investments; unions want to protect port jobs; media thrive on sensationalist reporting · 3) Arenas in which the issue unfolds o "Does DP World's management of US ports pose a security risk?" - Committee for Investment in the United States (CFIUS), made up of Department heads (executive) o "Should a country associated with terrorism control our ports?" - Media, US Congress · 4) Information that moves the issue in these arenas o "Does DP World's management of US ports pose a security risk?" - facts and data about DPW's security record, state of US port security o "Should a country associated with terrorism control our ports?" - emotion, fear, stereotypes, reports of UAE citizens' ties to Al Qaeda · 5) Assets needed to prevail o "Does DP World's management of US ports pose a security risk?" - Top level government support, solid track security track record o "Should a country associated with terrorism control our ports?" credibility, media savviness

CSV: enabling local cluster development

· Clusters= geographic concentrations of firms, related businesses, suppliers, service providers, and logistical infrastructure in a particular field. · Improving the available skills, supplier base, and supporting institutions in the communities where a company operates to boost productivity, innovation, and growth · cluster - firms and related businesses deciding to concentrate their presence in a geographic area · ex: Nespresso o in each coffee region, Nestle built agricultural, technical, financial, and logistical firms and capabilities, to support efficiency and high quality local production o partnership with Rainforest Alliance, to teach farmers sustainable practices that make production volumes more reliable o strengthened regional farmer coops by financing shared wet-milling facilities o increased taxes to essential agricultural inputs such as plant stock, fertilizers, equipment etc. o extension program to teach farmers farming techniques

OECD Guidelines for Multinational Enterprises

· Launched in 1976 by OECD, they do not legally bind companies concerned. [not a law!] · They define the expectations of the adhering governments of both OECD member nations and non-associated countries concerning specific standards and principles. o countries [=not businesses/companies!] could decide if they want to join these guidelines; signing = agreeing · The guidelines include several new topics such as sustainable development, environmental management, bribery and corruption, · The revised OECD Guidelines include supply chains of multinational enterprises. o idea: guide the development of companies through local governments -> OECD inform the states how the businesses should behave o directed at underdeveloped nations · Now adopted by the 37 OECD countries and 12 non-member countries

Examples of government services that can be contracted

· Refuse collection · Public security (private policing) · Road construction and repair · Public health · Mental health · Tax collection · Parking garages · Transportation · Utilities: water, electricity, natural gas

Example of Public Governance and Contract Management from NY and its Public Healthcare System: RFP Process

· Request for Proposal (RFP) Process -> says what you want, what are the requirements, and how you will weigh the proposals that re coming in; this is essentially the launch of the public procurement steps à shows the technical specifications and the award criteria that they decided to apply o Process: - Posted to city record and shared with 9 vendors - 3 vendors responded - Formed an Evaluation Committee - Completed two rounds of scoring - Product demos - Spoke with 3 references o The Criteria to award a contract: - Category: · Proposal Meets Requirements - 20% · Work Plan and Time Frame - 20% · Qualifications and Experience - 20% · Cost - 30% · MWBE Utilization Plan or MWBE Status - 10% - Ex: if a company has no qualification and experience, they might lose that 20% - Ex: last thing about minorities/women owned -> this is a plus for her - This last requirement has to do with inclusion of some parts of the population -> diversity and inclusion is becoming more important, and there are a lot of corporations that focus a lot of their attention on this and they get a lot of "points" because of it - In terms of a hospital, this was very important -> when there Is little diversity, it is difficult to come out with a better outcome - And MWBE's are a strong criteria in the US, specifically in the public system - In general, you have a scorecard where the evaluation committee scores each criteria for each contract - If you have a women owned/minority owned business and score top in the other criteria, it will probably get the contract o Valera Health was the highest rated proposer and awarded vendor - = it's a mobile application

Example of Public Governance and Contract Management from NY and its Public Healthcare System: It is announced the closure of a psychiatric hospital in the District of Assembly woman Aileen Gunther - Who are the different stakeholders?

· The patients themselves -> need the hospital open · The family members of the patients in the psychiatric hospital · The workers and former workers of the hospital -> think about it: the people who work at the hospital are also constituents, · The interest groups -> the CEO of the hospital, members of the board etc · The people who live around the hospitals are also interested -> specifically when you have mental health related facilities, because of the stigma around mental health, don't usually like having that sort of facility around the area they live in o They want the hospital gone

Example of Public Governance and Contract Management from NY and its Public Healthcare System: The work of Intergov and its Negotiations

· When you work for Intergov, you study a lot of legislation · For NY state you work a lot on lobbying -> the more interest groups, the more lobbies · NYC councils: the work you do there is negotiating legislations (council members will draft a legislation which then goes to the executive side and you get an estimate of the cost of the legislation) o Remember: difference between what is on paper and what is implemented on the ground · The work of Intergov is trying to have an effective and efficient implementation of public work This is the level of government where the relationship between policy and public administration is the strongest -> this is the lower level of government

IKEA & UNICEF Case Discussion: What are the actions to be undertaken, in terms of allocation of tasks and responsibilities?

· [IKEA and UNICEF should share the responsibility in order to maximise their reach] o IKEA: - reviewing its internal organization including the value chain · e.g. building ethical code for suppliers - way to guide acquisition - communications/dissemination - provision of money · UNICEF has the expertise in the sector of abolishing child labour but a key component of the partnership is the fact that IKEA brings not just influence but also a budget o UNICEF: - operations should be managed and coordinated by UNICEF as IKEA has no resources to implement the project - focuses specifically on child labor part ideas · while IKEA decides how to use money to implement UNICEF ideas - preparation - Communication / dissemination -> targeted for instance to the public opinion o IKEA + UNICEF: - local authorities' involvement in order to increase school enrolment - preparation of the self-help groups for the local women, and prepare the content and resources (staff, material...) that will be needed · UNICEF have experience in this kind of work and can advice and guide the IKEA staff in this process. - build and agree on a common set of indicators [KPIs] - accountability between and outside the partners

Range of discretion between public and private

· discretion mostly public - parks: contracts for maintenance, turf care etc. -schools: contracts for food, service, transport, etc. - port security: contracts for security patrols, monitoring technology, etc. · substantially shared discretion in the middle row - parks: Millenium Park -schools: charter schools -port security: coast guard - orchestrated security regime · discretion mostly private - parks: corporate parks, traditional voluntarism - schools: secular and religious private schools; education foundations - port security: security arrangements left to shippers and port operators

What are KPIs?

· expectation & expected results: facilitating access to the market through the generation of sound RWE [real world evidence = data based on reality] · optimizing the value proposition: being able to demonstrate the value and how its represented for stakeholders

What is a partnership?

· it includes expectation, you start collaboration, and then you expect specific results · can be between NGOs, companies, public, national or local institutions or IGOs · ex: Walmart + P&G joined forces to improve their opportunities of their businesses; may lose power, are risking o traditional partnership decided to create Channel Collaboration and Information Partnership - the idea was to evolve and expand their opportunities · include 3 main elements: o co-responsibility - need for balance: redistribution of tasks and partnerships in any partnership o sharing goals o and middle-long run perspective

Collaborative Governance in practice: Protecting Ports with the Coast Guard

· the Coast Guard created a port-protection system that was thoroughly collaborative. · there was a role for insurance-inspired private initiative, to be sure, and a role for armed cutters as well. But the mainstay of the security regime was an intricate skein of provisions specific to each port, each private party, and each type of risk. · The Coast Guard defined its role with respect to these provisions as twofold: o first, relentlessly demanding a high level of security for every aspect of every port, and, o second, scrupulously reviewing proposed provisions to ensure that they really did deliver the risk reduction that private parties claimed and that the government required. · What the Coast Guard did not do was insist on any uniform method to be applied across the whole varied spectrum of harbor facilities, shippers, vessels, and other diverse components of hundreds of separate operations. · By embracing the collaborative approach, the Coast Guard sought (successfully, by the inevitably partial evidence to date) to square the imperatives of security and smooth commercial operations at America's ports. · pros: making the risk more effective · cons: giving the discretion to the private over smth that is a core function of public institutions

Collaborative Governance in practice: A Millenium Park in Chicago

· wants to build a parking lot and build a green space but not being heavy on the budget - so want to collaborate with the private sector · instead of a green space, they built a park where private contributors can build something [e.g. fountains, landmarks]