600 words (7 minutes reading time) by Lancing Farrell

I recently acquired a ‘new’ copy of the 1992 book ‘Reinventing Government – How the Entrepreneurial Spirit is Transforming the Public Sector‘ by David Osborne and Ted Gaebler, a work that wielded significant influence globally in its time.

The impact of Osborne and Gaebler on world leaders can be discerned through the timing of policy changes, public declarations, and the alignment of advocated principles with the reform initiatives undertaken by these leaders. Some explicitly referenced the book in speeches, policy documents, or interviews, revealing its profound effect on their perspectives. In other instances, reforms closely mirroring the book’s principles suggest a potential influence. The book’s impact must be viewed within the broader context of prevailing ideas and reforms during that period.

In Australia, notable influences were evident in Bill Clinton and Al Gore’s policies. From 1993 to 2001, Clinton embraced the book’s ideas, initiating the National Performance Review (NPR) in 1993 to streamline government operations and enhance customer service. Al Gore, leading the NPR, advocated for applying business principles to government operations. Similarly, in the late 1990s, Tony Blair in the UK drew inspiration from the book for modernising public services, introducing performance measurement, and improving efficiency.

In Australia, during the mid-1990s, the Victorian government, led by Jeff Kennett, implemented significant local government reforms using the catchphrase ‘steering, not rowing’. The book’s principles aligned closely with the Kennett government’s objectives of making government more efficient, responsive, and business-like. While not the sole influence, the book served as a guidepost amid a global trend where policymakers sought inspiration from business-oriented models to reshape public administration.

Osborne and Gaebler’s influence is evident in reforms aimed at creating a more competitive, customer-driven, and market-oriented government, reflecting ideas directly from the book. The evolving challenge of finding a balance between markets and public bureaucracy, without a clear theoretical framework, is highlighted by John Bryson at the University of Minnesota.

In the past, we let markets work until they failed; then we responded with public bureaucracies. We’re struggling to figure out a new way, somewhere between markets and public bureaucracy. So far, there’s no theory guiding it. People don’t have a real clear idea of why past practices aren’t working, or what a new model might be. So they can’t learn from success or failure: there is no theoretical framework people can use to integrate their experiences.

John Bryson, cited in Reinventing Government.

The book’s impact is reflected in the ongoing struggle to develop a new model and theoretical framework for reshaping public administration.

Reflecting on the effectiveness of these reforms in making councils more efficient, responsive, or business-like prompts consideration of whether councils have embraced a new theoretical framework or paradigm.

The 1980s and 90s marked a crisis in public services, prompting a reevaluation of accepted practices and the introduction of new ideas and language into government services. Osborne and Gaebler addressed the need for solving problems that traditional paradigms failed to address, providing political leaders with a new understanding of issues and actionable ideas.

The enduring value of Osborne and Gaebler’s book lies in understanding the thinking behind reforms still influencing local government today and in developing a new paradigm. The book offers practical advice, particularly in the appendices on Alternative Service Delivery Options and The Art of Performance Measurement.

Reading the book remains essential for those seeking insights into the transformative thinking that could have shaped councils differently if widely embraced in the 1990s.