Short answer
When designing or evaluating public sector processes, prioritize understanding and optimizing the performance of the individuals and teams responsible for execution, as they are a major determinant of outcomes.
- Field
- Innovation & Design
- Source
- National Bureau of Economic Research (2017)
- Method
- Quantitative analysis of large-scale public purchase data.
- Sample
- 16 million public purchases
- Evidence
- Strong effect
The effectiveness of individual public officials and their organizational structures significantly impacts the efficiency and cost of public procurement. This innovation & design research insight is drawn from a 2017 study published in National Bureau of Economic Research. Using Quantitative analysis of large-scale public purchase data. with 16 million public purchases, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing or evaluating public sector processes, prioritize understanding and optimizing the performance of the individuals and teams responsible for execution, as they are a major determinant of outcomes.
Individual Bureaucrats Drive 39% of Procurement Price Variation
The effectiveness of individual public officials and their organizational structures significantly impacts the efficiency and cost of public procurement.
National Bureau of Economic Research · 2017
Key Findings
- 0139% of price variation in public purchases is attributable to individual bureaucrats and their organizations.
- 02Lower prices in procurement are associated with higher spending quality.
- 03Policy effectiveness, such as domestic supplier preferences, is contingent on the inherent effectiveness of the implementing bureaucrats.
Application
Design takeaway
When designing or evaluating public sector processes, prioritize understanding and optimizing the performance of the individuals and teams responsible for execution, as they are a major determinant of outcomes.
How to apply
When designing a new public service or improving an existing one, conduct an assessment of the human resources involved in its delivery, identifying potential bottlenecks or areas for performance enhancement.
Project actions
- 01Consider how the people who will use or implement your design might affect its success.
- 02Think about training or support needed for users or implementers to achieve desired outcomes.
- 03Investigate if your design's effectiveness depends on the skill level of the user.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Large-scale dataset providing robust statistical power.
- +Identification of a significant, quantifiable impact of human factors on outcomes.
Limitations
The specific context of Russian public procurement might not perfectly mirror other settings. The study focuses on price and quality as primary measures of effectiveness.
Reliability & validity
The study's reliance on a large dataset and statistical analysis suggests high reliability. Validity is supported by the clear correlation found between individual/organizational factors and procurement outcomes, though the specific context of Russia may limit generalizability.
Think critically
If ineffective bureaucrats benefit from policies designed to help domestic suppliers, does this imply that such policies are a form of 'support' for inefficiency, or are there other underlying reasons for this correlation?
Design Principles
"System effectiveness is a function of both policy design and human implementation capacity."
This research highlights that the human element within bureaucratic systems is a critical, often overlooked, factor in achieving policy objectives and managing resources. Understanding and optimizing the performance of individuals and organizations involved in implementation can lead to substantial improvements in public sector outcomes.
What This Means for Your Design
This study shows that the people in charge of buying things for the government can make a big difference in how much things cost and how good they are. Nearly 40% of price differences were because of who was doing the buying. Also, a policy to help local companies only worked well when the buyers weren't very good to begin with.
How to use in your project
- 1.Reference this study when discussing the importance of user or implementer capabilities in your design project's evaluation.
- 2.Use the findings to justify focusing on user training or support as part of your design solution.
Add to My Project
Quick Cite
Paragraph starter
The effectiveness of a design solution is often significantly influenced by the individuals and organizations responsible for its implementation. Research by Best, Hjort, and Szakonyi (2017) on public procurement demonstrated that individual bureaucrats and their organizational structures accounted for 39% of price variation, highlighting the critical role of human agency in achieving desired outcomes. This underscores the importance of considering user capabilities and support mechanisms within any design project.
Source
National Bureau of Economic Research
Individuals and Organizations as Sources of State Effectiveness
journal · 2017
View sourceQuestions About This Research
- What does the research say about individual bureaucrats drive 39% of procurement price variation?
- When designing or evaluating public sector processes, prioritize understanding and optimizing the performance of the individuals and teams responsible for execution, as they are a major determinant of outcomes. Evidence: National Bureau of Economic Research (2017).
- Why does "Individual Bureaucrats Drive 39% of Procurement Price Variation" matter for design?
- This research highlights that the human element within bureaucratic systems is a critical, often overlooked, factor in achieving policy objectives and managing resources. Understanding and optimizing the performance of individuals and organizations involved in implementation can lead to substantial improvements in public sector outcomes.
- How can designers apply this research?
- When designing or evaluating public sector processes, prioritize understanding and optimizing the performance of the individuals and teams responsible for execution, as they are a major determinant of outcomes.
- What were the main findings?
- 39% of price variation in public purchases is attributable to individual bureaucrats and their organizations.. Lower prices in procurement are associated with higher spending quality.. Policy effectiveness, such as domestic supplier preferences, is contingent on the inherent effectiveness of the implementing bureaucrats.
- What research method was used?
- Quantitative analysis of large-scale public purchase data. with 16 million public purchases.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2017 journal from National Bureau of Economic Research.
- What should I do differently in my next project?
- When designing a new public service or improving an existing one, conduct an assessment of the human resources involved in its delivery, identifying potential bottlenecks or areas for performance enhancement.
- What are the limitations?
- The study is specific to the Russian context, and findings may not be directly generalizable to all national procurement systems. The definition of 'effectiveness' is primarily tied to price and quality outcomes.