Presentation to ANIS

Innovation in Local Government

Health spend as % GDP

versus adult mortality rate

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40 60 80 100 120

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Adult mortality rate

Source: OECD Health Data 2010

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% improvement in mortality rate (p.a.)

Change in health spend share of GDP

versus % improvement in adult mortality rate

The great constitutional conventions of the next 50 years - the digital rights and responsibilities .... the governance of life and biopower .... resource equity

The challenge for cities: managing innovation from ideas to impact…

1.Pure economies – stopping doing things , asset sales

2.Economies of trimming – freezes, efficiency savings, focus on essentials

3.Economies of delay – to capital, pay rises, recruitment

Traditional

4. Economies of scale – eg aggregating call centres, back office

5. Economies of scope – eg one stop shops, multi-purpose personal advisers, capital integration, administrative consolidation

6. Economies of flow – eg automation, hospitals specialising, aggregation by condition

7.Economies of penetration – eg street concierges, utilities, energy

8 Circuit economies – reducing failure demand (hospital repeated re-admissions)- eg Social Impact Bonds, preventive investment models

Organisational

9 Economies of responsibility – passing responsibility out to citizens (eg self-testing, new charges, community asset transfer)

10Economies of visibility – mobilising public eyes (public contracts) and the power of shame (eg surgery rates)

11Economies of regulation and risk – adapting appetites for regulation, reducing inspection, compliance costs etc

12Economies of commitment – shifting provision from low to high commitment people and organisations (tapping into eg volunteer labour, social enterprise, motivation…)

Relational

1. Pure economies – stopping doing things , asset sales 2. Economies of trimming – freezes, efficiency savings, focus on essentials 3. Economies of delay – to capital, pay rises, recruitment

4. Economies of scale – eg aggregating call centres, back office 5. Economies of scope – eg one stop shops, multi-purpose personal advisers, capital integration, administrative

consolidation 6. Economies of flow – eg automation, hospitals specialising, aggregation by condition 7. Economies of penetration – eg street concierges, utilities, energy 8. Circuit economies – reducing failure demand (hospital repeated re-admissions)- eg Social Impact Bonds,

preventive investment models

9. Economies of responsibility – passing responsibility out to citizens (eg self-testing, new charges, community asset transfer)

10.Economies of visibility – mobilising public eyes (public contracts) and the power of shame 11.Eeconomies of regulation and risk – adapting appetites for regulation, reducing inspection, compliance costs

etc 12.Economies of commitment – shifting provision from low to high commitment people and organisations (tapping

into eg volunteer labour, social enterprise, motivation…)

Traditional

Organisational

Relational

Require innovation methods, usually across

organisational boundaries

Require rethinking the relationship between

public services and citizens

How can we systematically prompt innovation?

Collecting and analysing data

Market research Literature reviews

Foresight Academic studies

Generating insights

Community researchers

Map assets

System mapping

Reframe problems Map customer journeys

Trend spotting

Scenario planning Horizon scanning

Surveys

Interviews

Focus groups

Ask different questions Observation

Social and economic data

Ethnography

Issue trees

Map the current system

Challenge assumptions Understanding problems Identifying opportunities

Camps and festivals

Design tools

Collaborative enquiry

Generate many viable ideas in a short time frame Bring new teams together around an idea or challenge

Prizes and incentives

Design tools

Collaborative enquiry

Community

support for the

elderly; cycling;

open data

Prototypes and testing

Pilots

Pathfinders

Beta testing

Experimental zones

Simulations

Rapid Prototyping

Proof of concept

Open testing

Blue-printing Co-design

Cost benefit modelling

Prototyping

Trials

Market testing

Evaluation

Business cases

Product/service/process design

Relationship mapping Design

Design tools

Nesta has developed tools and processes that anyone can use to develop and test a service idea

Design tools

Formal pilots and tests: eg for young children’s support

Cost benefit modelling: eg for reducing hospital admissions for elderly

Cost figure

Activity measure

Unit cost =

Step 1: Identify all

inputs to the service

Step 2: Identify all

outputs to the service

Step 3: Estimate the

costs of all the inputs

Step 4: Calculate the

unit cost

How is it a better use of resource?

open

GOALS strategic

internal PARTICIPANTS external

Idea Factory

Strategy Units

Prizes

accelerators

Skunk works

Collaboratives

Types of innovation agency