ORGANIZATIONAL STATUS AND PERFORMANCE: A CONCEPTUAL FRAMEWORK FOR TESTING PUBLIC CHOICE THEORIES

Popular belief is that ownership change (from public to private) brings about improved performance. But (i) ownership displays a spectrum, not an either/or; (ii) degree of competition is conceptually and often actually independent of ownership; and (iii) so is change-of-ownership's assumed instruments for improving performance, change in managerial incentive structures and reporting structures. The article surveys the relevant theories, popular and scholarly, and develops models for testing the relationships between status change (ownership) and performance (indices of productivity, profitability etc.), and between status change and internal organizational change (indices of reorganization and of linkage), in a small number of British organizations which underwent change in recent decades. Preliminary results of one or two analyses illustrate the methods and the possibilities.     

Reforming the public sector for leaner government and improved performance: The New Zealand experience

Over the 10 year period from 1984 to 1994 New Zealand has gone through an intense period of restructuring, both of the public sector and of the wider economy. In the process New Zealand has been transformed from a highly protected and regulated economy with a range of intrusive and expensive interventions, to an open and deregulated economy with an efficient and leaned down public sector. The article presents the “New Zealand experience” in restructuring, not necessarily as an example to be copied but as a benchmark to be used in examining the most appropriate restructuring to apply in other circumstances. The stages in the reform are described and the three key success factors set out. One of the key factors is the establishment of a set of clear principles which are then applied with determination. The principles developed in the New Zealand context are set out. The article examines the restructuring of the science sector in New Zealand as one case study; in part because of the author's personal involvement but also because it is a particularly complete example. Areas where work remains to be done are identified including the reforms in education and health and the need for collective action across government. Finally lessons to emerge from the New Zealand experience are discussed. These include especially putting time into fully understanding market characteristics before a market oriented reform is started, carrying reforms through to their conclusion rather than stopping partway, and establishing clear principles to guide the reform process.