Risk management: a neglected factor in public service transformation

Political, legislative and socio-economic changes drive the need for public service transformation (PST) because they render current service delivery models ineffective. However, the process of transformation introduces... [ view full abstract ]

Political, legislative and socio-economic changes drive the need for public service transformation (PST) because they render current service delivery models ineffective. However, the process of transformation introduces uncertainty and risks which may hinder the process or deliver ineffective results. The role of risk management is therefore key to facilitating transformation and ensuring organizational objectives are achieved because it can optimise inherent opportunities while mitigating associated risks. Risk management features prominently in public and private sector discourse and is perceived as a core element of corporate governance and a tool for achieving strategic objectives. Yet, based on results from a systematic literature review of articles published between 2010 and 2015, this paper argues that there is a paucity of academic research into its critical role in PST. The findings highlight the role of risk management in PST, revealing the gap in this area of research. It argues that more studies are required to clarify the role and implementation of risk management in PST. Specifically, the systematic literature review addresses the following research questions:

• Is there a need for PST in Scotland?
• If there is a need, what inner factors can facilitate and/or hinder PST?
• Are the factors identified adequately researched?

The first research question is addressed with a scoping study which examined the outer context of public service provision in Scotland to determine if there is a need for PST. Considering the political, legislative and socio-economic environment, the study revealed an urgent need to transform public services in Scotland. In 2015, more government publications referred to PST relative to previous years; suggesting increasing awareness of the need for PST.

The second research question was addressed via a database search of scholarly journal articles addressing PST. Risk management, leadership and stakeholder engagement emerged as key inner factors capable of influencing PST. Critical identification, analysis and classification of these key factors were achieved via a thematic analysis. To ensure rigour, increase internal validity, and reduce bias, a combination of five selection techniques were employed including the repetition (Ryan and Bernard, 2003), eyeballing (Bernard, 2000), cutting and sorting (Weller and Romney, 1988), key word in context (Ryan and Bernard, 2003) and missing data techniques (Ryan, 1999).

Using the missing data technique (ibid), risk management was identified as the least researched factor capable of influencing PST; thus, addressing the third research question. Information that is conspicuously absent during qualitative data analysis may reveal vital information (Ryan and Bernard, 2003). In this case, risk and risk management were not mentioned in 74% of the articles reviewed despite various guidance documents provided by Central Governments (HM Treasury, 2004, US Government Accountability Office, 2005) and professional bodies (AIRMIC/ALARM/IRM, 2014).

This paper contributes to the public management literature by developing a new conceptualization of the role of risk management in PST. It stresses the need for more academic studies exploring risks during PST, particularly in an environment of fiscal consolidation, increasing social inequality and exclusion, declining school education attainment, and other challenges.