Chartered Institute of Public Finance and Accountancy



Public Money & Management

Volume 24, Number 4

August 2004

Contents

VIEWPOINT
GOVERNANCE, PARTNERSHIPS AND PERFORMANCE
Edward Peck

EDITORIAL
THEME: FAILURE AND TURNAROUND IN PUBLIC AND NON-PROFIT ORGANIZATIONS
Chris Cornforth and Rob Paton

THEME ARTICLES

ORGANIZATIONAL FAILURE AND TURNAROUND: LESSONS FOR PUBLIC SERVICES FROM THE FOR-PROFIT SECTOR
Kieran Walshe, Gill Harvey, Paula Hyde and Naresh Pandit explore the literature on failure and turnaround in for-profit organizations. They present frameworks for describing and categorizing failure and turnaround, and examine the relevance of studies in the for-profit sector to the emerging field of failure and turnaround in public services.

WHAT'S DIFFERENT ABOUT PUBLIC AND NON-PROFIT 'TURNAROUND'?
Rob Paton and Jill Mordaunt suggest that policy-makers may be justified in their concerns about chronic under-performance, and that it is important to understand better the conditions under which 'moulds can be broken' and lasting recovery initiated. Some ideas from the business literature are valuable, but public and non-profit turnarounds are different as well as similar, and several concepts will have to be adapted not just adopted.

INTERVENTION OR PERSUASION? STRATEGIES FOR TURNAROUND OF POORLY-PERFORMING COUNCILS
This article provides early results from a long-term evaluation of the turnaround strategies by poorly-performing local authorities in England. Dave Turner, Chris Skelcher, Philip Whiteman, Michael Hughes and Pauline Jas review the history and theory behind central government interventions into local government, focusing on the CPA. The authors conclude by setting out a research agenda for the future.

THE ROLE OF BOARDS IN THE FAILURE AND TURNAROUND OF NON-PROFIT ORGANIZATIONS
Chris Cornforth and Jill Mordaunt show that boards often play an important hands-on role in turnaround. As well as needing skills, such as leadership, board members leading the change process need high levels of commitment, emotional resilience and a 'safe place' to formulate plans.

THE ROLE OF LEADERSHIP IN THE TURNAROUND OF A LOCAL AUTHORITY
This article examines leadership behaviour during a successful turnaround in a public services organization. Paul Joyce draws important lessons from his case study about the kind of leadership needed in public sector turnarounds.

THE DYNAMICS OF CHRONIC FAILURE: A LONGITUDINAL STUDY
For 25 years repeated efforts were made to reduce the costs and refocus the efforts of a regional office of an agency in the USA. Eventually these efforts resulted in the office being effectively eliminated. Dean F. Eitel argues that the processes used during organization change efforts were so flawed that they actually accentuated chronic failure.

NON-THEME ARTICLE
BEST VALUE: IS IT DELIVERING?

Best Value is intended to improve public service performance by replacing compulsory competitive tendering with a policy that has been likened to a local government version of total quality management. Paul Higgins, Philip James and Ian Roper draw on a survey of local government officers to explore the extent to which Best Value is providing the basis for improvements in the quality of local services and find mixed results.