Appendix B — Summary of the literature review

This appendix provides a summary of the literature review undertaken for the ANAO as part of the process of preparing the Guide.

The full literature review, including a review of overseas experience, entitled Public Sector Innovation: A Review of the Literature, is a supplement to the Guide. The full literature review is available through the ANAO web site: www.anao.gov.au.

An extensive review of academic, professional, government and international organisation literature on public sector innovation was undertaken along with some bibliographic analysis. Key themes to emerge from the literature are:

• the academic literature is growing rapidly but is still in an immature state (just over 50 per cent of the total publications identified were produced in the period 2006 to 2008);
• the professional and government literature is better developed — but focusses largely on ‘aspirations’ as regards achieving public sector innovation — there is relatively little practical guidance at the level to which the Guide is pitched;
• these aspirations stress the central role that should be played by innovation in the public sector — particularly increasing efficiency and effectiveness;
• there is a tendency to draw on lessons from the study of private sector innovation with a less well-developed understanding of the distinctiveness of innovating in a public sector context;
• risk aversion is a common characteristic and concern, reflecting the common perception of the distinctive role of government but also restricting innovative potential;
• the UK government stands out in terms of the priority it has placed on achieving public sector innovation, and in the use of specialised risk-funding to promote innovation;
• innovation championing (and leadership in general) is recognised as a key success factor;
• greater use should be made of formalised experimental approaches, including trials and pilots and use of ‘off-line’ teams to support the development of these experimental approaches; and
• a stronger emphasis on evidence-based innovation cycles: plan-do-check-act/adjust is supported by the literature.

Explaining some terms used in the Guide

Selected terms, mentioned in section 4.2 of this Guide, dealing with techniques to think outside the current paradigm are described below.

De Bono’s six thinking hats — is a conceptual tool to facilitate thinking and discussion. The six hats denote the six distinct ways the brain works (for example considering the facts, using intuition and thinking creatively). The tool is designed to offer a structured means to think about a topic comprehensively and collaboratively.

Econometrics — is a statistical method that draws on economic theory to analyse and test economic relationships. Econometric modelling posits relationships between variables to examine and explore economic situations and behaviours. The models allow users to see the possible effect of changes in the variables and therefore support the exploration of options and their possible consequences.

Force field analysis — is a technique to look at all the forces for and against a goal. In essence, it is a method for weighing the pros and cons of a situation. The analysis can assist in assessing the viability of an initiative and can guide planning by suggesting areas of focus to strengthen the forces supporting the decision and to reduce the impact of opposition to it.

Scenario analysis and planning — is a framework for exploring different possible future states and supporting planning and decision-making based on the most likely scenarios. Creating scenarios requires the exposure and assessment of assumptions about the future and this can help clarify thinking about options and solutions.

SWOT analysis — is a technique for understanding perceived strengths and weaknesses and looking for opportunities and threats. At an organisational level, it can help identify potential activities which are particularly suitable to the organisation’s endowments, and help the organisation to understand weaknesses and thereby to direct its attention to ways to mitigate threats that might otherwise undermine performance.

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Next: Appendix C - Key themes from interviews