Are You Creating Public Value?
Early in my public service career, I was introduced to the concept of 'best value' as an alternative to the outdated focus on 'low cost.' This idea resonated deeply with me, especially since I grew up hearing two competing narratives: “The era of big government is over” and “We need to shrink government to the size we can drown it in the bathtub.” At the same time, I was taught that government is an instrument of good designed to ensure that none of us is left behind.
These competing views shaped my understanding of what government should be and highlighted a fundamental tension: are we perpetuating outdated, minimalist views of government, or are we embracing its potential to create meaningful Public Value? Ultimately, I believe that Government exists to provide high-quality services to support a strong quality of life for residents, business owners, and visitors of a given jurisdictional area. Those services must be available, accessible, and a resource to solve problems and advance the common good.
While the focus on "low cost" emphasizes price, it often sacrifices other facets of the value equation, such as quality, durability, and relevance. This approach is not just short-sighted; it undermines the very purpose of government. If we focus solely on cutting costs, we risk stripping away the value that public services are meant to provide.
The Broader Definition of Public Value
Public Value is the value created by government through services, regulations, and other actions that benefit the public as a whole. Unlike private sector value, often measured by profit, Public Value is measured by its contribution to society. This includes outcomes such as public safety, social equity, environmental sustainability, and trust in government. In essence, Public Value is about aligning the actions of public institutions with the broader needs and values of society.
The Shift from “Low Cost” to “Best Value”
The concept of "best value" shifts the focus from merely cutting costs to prioritizing outcomes and the voices of government service users— residents, business owners, or visitors. This holistic approach aligns with the true mission of public service: to create value that resonates with and benefits the public.
I spent two years in the private sector selling software to governments, where I became familiar with the framework of Features, Benefits, and Value. Features are defined by the products—what engineers build. Benefits are defined by the seller—the anticipated impacts driven by the features in a given product set. However, the buyer defines value—it’s their conception of why those products are important to them.
This framework has a direct parallel in government, though we might think in terms of Services, Outcomes, and the Common Good rather than Features, Benefits, and Value. In this context, Services are what governments provide, Outcomes are the results we aim to achieve, and the Common Good is the public value we hope to create.
Creating Public Value From the Start
Most of my career has been spent thinking about, designing, and delivering public budgets. This is really the heart of any serious conversation about what a government will provide its end users. Far too often, budget conversations quickly devolve into questions like, “Could we fund half of that request?” or “How can we do something for each department?” Like "low-cost" procurement, this race to the bottom ultimately serves only to degrade the quality of public services and erode public trust in government.
If, instead, we start by identifying the outcomes we want to achieve and the impacts we want to make broadly, we can work backward to identify which services we should fund. Better yet, if we analyze public desires and identify what they want those outcomes to look like, we immediately root our actions and decisions in public value and advance the common good.
The Expense in Creating Public Value
While Public Value is far more meaningful than mere cost-cutting, it comes with its own 'expenses.' These challenges represent investments—both financial and intellectual—that are crucial for achieving long-term value:
1. Measurement. Unlike financial metrics, Public Value is difficult to quantify. Governments need robust frameworks to capture both tangible and intangible benefits.
2. Conflicting Values. Public Value often involves balancing competing interests. For example, policies promoting economic growth may conflict with environmental sustainability. Public administrators must navigate these tensions to create balanced outcomes.
3. Engagement. Creating Public Value requires active citizen engagement. Without understanding what the public values through continuous engagement, governments risk implementing policies that may stagnate or miss the mark entirely.
Creating true Public Value is hard work, it takes time, and the path is often neither straight nor narrow. But none of the challenges listed above are insurmountable.
The Role of Leadership in Public Value
Leadership is critical in the pursuit of Public Value. Public sector leaders must articulate a clear vision that resonates with the values of the society they serve. They need to be strategic, forward-thinking, and willing to take risks to innovate and improve public services. Effective leadership can bridge the gap between the government’s actions and the public’s expectations.
Conclusion
As public managers and administrators, we must ask ourselves whether we truly create Public Value in our work. Are we focusing on outcomes that matter to the public, or are we caught in the trap of "low cost" thinking that sacrifices long-term value for short-term savings? By moving beyond outdated, 'low cost' thinking and shifting our focus to 'best value,' we can build a government that truly serves the people.
I’d love to hear your thoughts on Public Value and how your organization has been able to shed a focus on “low-cost” government in favor of providing the best value and advancing the common good. Feel free to comment below or reach out to me directly at mintermill@govstrategist.com.