Transformational Change in Environmental and Natural Resource Management

Guidelines for policy excellence

Mike Young, Christine Esau, Mike Young, Christine Esau

• Publisher: Routledge
• Year: 2016
• Print ISBN: 9781138884694
• eBook ISBN: 9781317505426
• Topic: Politics & International Relations
• Subtopic: Ecology
• Index: Politics & International Relations

The aim of this book is to catalyse global interest in the pursuit of transformational changes in natural resource and environmental management. It is shown that transformational policy reforms involve fundamental shifts in strategy with far-reaching consequences for the structure of industries, the way people behave and the resources they use.

Transformational reforms typically involve a decision to change a suite of institutional arrangements that will result, within a short period of time, in a paradigm shift and the emergence of an approach that will be recognised as being totally different to the arrangements that were previously in place. Transformational change is well established in business and can deliver outstanding results. In the world of policy development, however, many transformational policy reforms flounder. Unlike incremental policy reforms, they are often seen to be politically risky and prone to failure.

Using examples of success and failure, coupled with insights from practitioners and academics who have succeeded in getting transformational reforms implemented, this book presents a set of guidelines for excellence in the pursuit of transformational policy reforms. It includes detailed case studies from Australia, China, Europe, New Zealand, South-east Asia and the USA.

1
Transformational Change

In search of excellence

Mike Young

Political survival depends on making quality decisions; compromised policies lead to voter dissatisfaction; letting things drift is political suicide.

Roger Douglas

Using case studies, this book searches for guidelines to assist those interested in developing a proposal for a transformational policy reform and working to ensure its successful implementation.¹ This chapter digests the resultant guidelines. Most derive from experience associated with reforms that seek to make greater use of market mechanisms (see Guideline 13.7 in Chapter 13).

What do you have to do to get a proposal for a transformational policy reform seriously considered, accepted and implemented?

The idea of transformational change is well established in business and can deliver outstanding results. In the world of public policy, however, many transformational reforms flounder. The list of reasons for failure is long. Reasons include disagreement over objectives, difficulties gaining stakeholder and bureaucratic support, lack of legal precedent, insufficient comprehension of administrative complexities and lack of attention to scientific knowledge. As a result, political leaders often settle for incremental policy reforms, even though they recognise transformational change is needed.

Transformational policy reforms involve fundamental shifts in strategy with far reaching consequences for the structure of industries, the way people behave and the resources they use. Typically, they involve the creation of very different governance, administrative arrangements and incentives.

For ease of discussion, this book's guidelines are grouped into a logical sequence:

• Developing the case for change.
• Securing interest in the proposition.
• Careful design and refinement of the package to be implemented.
• Negotiating the reform package.
• Implementing the reform.
• Adaptation and ongoing improvement.
• Learning.

In practice, at least, the first four of these steps tend to occur in messy parallel processes. In the final chapter of this book, the various guidelines identified and listed in each chapter are classified into these seven groups.

Developing the case for change

What's the problem?

It may seem self-evident, but typically the case for a transformational reform begins with a realisation that a problem exists. Often, however, it is more useful to describe the problem as an opportunity. Whatever approach is taken, there is normally a need to begin by defining the issue in ways that the community, as well as specialists, can comprehend (see Guideline 2.1 in Chapter 2). The costs and benefits of inaction need to be transparent, estimated using methodologies that have broad scientific support (see Guidelines 4.4 and 7.9) and contestable (4.2). Use of multiple methodologies helps to bring about consensus. Almost without exception, the case for change needs to be compared with the status quo and, also, what is achievable via a simple incremental reform.

Not one but two discussions

When developing the case for change, it is insufficient to rely upon the presence of detailed reports. Both the general public and specialists need to be convinced that a problem exists and that the opportunity to fix it is real and realisable (2.3). Academics tend to focus on the detail. It is essential that the dialogue involves one or more policy entrepreneurs who, with credibility, can present an overview of what is proposed (12.2). To this end, simple narratives help. In Phnom Penh, Ek Sonn Chan, the General Director of the Phnom Penh Water Supply Authority, began fixing the city's water supply by making it clear that non-payment of bills and corrupt activities would have to stop. One of Ek Sonn Chan's early actions, fearlessly and protected by TV cameras, was to walk into the Cambodian Army's barracks and switch off their water supply until they paid their bill. The opportunity he identified was to make everyone pay for the water they used and, through this simple reform, collect the revenue needed to extend and improve the service offered to all, without fear or favour.

A simple unambiguous vision

When searching for a solution, it is useful to begin by developing a clear vision of the final outcome and options for its attainment (12.4). In the case of water reform in Australia's Murray–Darling Basin the vision was simple: if a formal limit was placed on the maximum amount of water that could be taken and low-cost opportunities to trade water established, the nation and its natural resources would be better off. It was understood that the detail on how best to implement this vision could be worked out subsequently. The gains would come from the improvements in water use efficiency, innovations that competitive market forces would bring and avoidance of serious environmental impacts.

If a transformational change is to occur, it is necessary to gain strong administrative and political support (3.1) and, if possible, a mandate for action (2.2). The narrative underpinning this mandate needs to be both simple and compelling (4.6; 9.3).

Comprehensive information campaigns tend to play an important part in gaining the necessary support for a transformational reform (5.7; 5.8). However, there is a strong case for encouraging independent people to act as policy entrepreneurs. Repeated messaging using different styles and ways of communication can be critical (8.7). Work hard to establish a strong relationship with the media that is built around a sense of trust.

Early design

As a general rule, most transformational reforms propose a sequence of policy and administrative changes that, if implemented, can be expected to enhance a community, sector or region. During the initial stages, it is common for public opinion to be a poor guide as to what is best (3.2). One of the prime reasons is that people tend to think only of incremental reforms. Without careful analysis it is difficult to think through all the implications of a complex, interdependent array of changes – especially when many of the responses are non-linear.

Furthermore, the past is often a poor guide to the future. In business, for example, existing products often appear better than ones still under development (3.3).

When a business sets about developing a new idea or new product, there is a need for strong support from the top of an organisation (3.10). Support from political leaders is equally important when developing a proposal for a transformational policy reform. During the early stages of development, it is important that leaders appear to be confident that a way to implement the proposed reform can be found (1.6). During this process, scenario analysis can be used to work through and refine the case for change (3.5). Scenario analysis can be particularly useful in helping to develop the narratives needed to garner interest in the proposed reform.

Investment in knowledge

During the process of developing the core proposition, there is a need for early investment in the science and data collection coupled with exploration of broad alternatives (12.12). Ultimately, the constellation of arrangements and predictions about likely outcomes needs to be contestable and will be contested by professional analysts and by stakeholders (4.2).

Learning from setbacks

Many draft proposals and countless stakeholder interactions may be needed to build the consensus needed to enable implementation and then sustain a new policy regime (13.1).

Sometimes, the search for the best way to begin a transformational policy is lengthy and can involve several false starts. Early failures can be opportunities to learn about what is achievable and, also, what is needed to implement a reform successfully (13.3). “Persistence and patience” can be particularly important in the development of detail (9.1). In the case of Australia's attempts to reform drought policy, for example, there have been many false starts and set-backs. Each of these attempts, however, produced lessons that made the next attempt easier.

Understanding risk

Sometimes, it is better to see a proposal for a transformational policy reform as the start of a journey which, when reviewed with the benefit of hindsight, will be seen to have been worthwhile. One should expect to be surprised by the extent of innovation and change that will result from a transformational change (10.6). It should neither be assumed that all benefits have been identified nor that all the identified benefits will eventuate (10.7).

In the lead-up to the decision to implement, many compromises may be made. As a result, the benefits of a transformational reform are easily overestimated (10.1). Be careful: never sell the public short (1.5).

Securing interest in the proposition

Chances of success can be improved if the policy development processes include a search for common goals using language that aligns with the interests of key stakeholders (12.3). Early investment in the ways to cast the proposition so that it can be advocated by a broad coalition of interests (6.8) can be expected to increase prospects for success. The broader the coalition of support, the greater the chances of success (13.4). During this search for the right language, it should not be assumed that stakeholders have a sophisticated understanding of their own best, long-term interests (6.8).

Supportive alliances

Early investment in the development of new alliances and narratives can be critical as, in many cultures, those likely to gain the most from a transformational reform often are reluctant to come forward. Search for those who are likely to benefit from such reform and recruit them into the policy development process (2.5).

When significant opposition is encountered, there is a strong case for examining the source of this opposition. Often views and biases are deeply entrenched. “Our current system is working. It ain't broke so don't try to fix it!” If an identifiable alliance is missing, map out stakeholder interests (5.2) and find a way to build one or more alliances that are likely to champion the case for change (10.3; 5.4). Often resistance is due to the fact that people don't like anyone attempting to fix a wheel that is not broken.

Box 1.1 A selection of guidelines from a presentation by a renowned New Zealand reformer, Roger Douglas, written soon after he left politics:

Guideline 1.1

For quality policies, you need quality people.

Guideline 1.2

Speed is essential. It is impossible to go too fast.

Guideline 1.3

Once you start the momentum rolling, never let it stop.

Guideline 1.4

Let the dog see the rabbit.

Guideline 1.5

Never sell the public short.

Guideline 1.6

Don't blink, public confidence rests on your composure.

Guideline 1.7

Get the fundamentals right.

(Douglas, 1990)

As soon as one or more of these new alliances have been established, support them by undertaking the work that enables the development of new narratives (5.6). Necessarily, some of this work will be empirical. It is important to ensure that the proposal is evidence-informed, derived using robust and accepted methods, and has been reviewed by qualified, capable and unbiased analysts (4.1). Ensure that this work is undertaken by people with a strong public standing. Once the empirical work has been completed, search for simple stories and examples of the benefits likely to flow from implementation of the reform.

When assembling the proposal, try to ensure that there is at least one influential group that is prepared to work tirelessly for the proposed reform. Think carefully about polycentric leadership models and, if possible, ensure that these leaders are well resourced (6.8).

One of the best ways to achieve broad support is to engage with as many different types of beneficiaries as possible and search for ways to turn them into parents, champions and sponsors of the reform (6.8). Remember to treat early protagonists with respect. With attention to detail and process, early detractors can become the biggest supporters of a proposed reform (11.5; 13.9).

Entrepreneurship

It is unusual for a transformational reform to get over the line unless there is a least one and preferably many policy entrepreneurs prepared to push for action (12.2). When a cadre of policy entrepreneurs is lacking, search for a way to create them. One of the prime roles of a policy entrepreneur is to search for ways to reveal the nature of the expected benefits and the consequences of inaction (3.6). In addition to presenting the case for change in a convincing manner, policy entrepreneurs can also play an important public role in explaining detail.

Careful design and refinement of the reform package

Once the broad case has been established, it is important to work on the design detail to instil confidence in a proposed reform. Stakeholders need to feel confident that the proposed reform will work. The old adage that “there can be devil in the detail” is worth considering. Often, there is considerable opportunity to learn from experience elsewhere (5.9).

When reading this book's case studies, you cannot help but conclude that it is important to pay attention to distributional implications. Search for astute ways to package the reform. If possible, find a way to organise the reform process so that no group can argue that the proposed reform is likely to make them worse off (12.8).

Early in the development of a transformative proposal, it is common for many people to perceive that the reform will make them worse off (6.9). Try to avoid talking about compensating losers (2.4). Instead, look for ways that will enable all involved to benefit (9.6). Remember that, if the case for a transformational change is strong, the reforms should produce a sizable net benefit to society. If this is truly the case, then there should be enough gains to make nearly all, if not all, people better off. There are a range of options to manage costs felt by some parties, including managing the pace of change, introducing transition arrangements, and, as a last resort, directly compensating losers (5.3).

Trials and pilots

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Table of contents

• Cover
• Title
• Copyright
• Dedication
• CONTENTS
• List of figures
• List of tables
• Contributors
• Preface
• 1 Transformational change: in search of excellence
• 2 Significant, sustainable environmental reform is difficult in any democracy
• 3 Unpacking the dynamics of successful change: ten insights from the private sector
• 4 An assessment framework for resilient public policy
• 5 Lessons from reforming fossil-fuel subsidy regimes
• 6 Two steps forward, one step back: the ongoing failure to capture synergies in natural resource management (Australia)
• 7 Never waste a crisis: drought as an opportunity to bring robust water-policy reform to California
• 8 Development of water markets in China
• 9 Drought policy: lessons and strategies to change the transformational game
• 10 The collision of aspiration and reality in payments for ecosystem services
• 11 Angling for a solution: fisheries management and the individual transferrable quota regime in Aotearoa (New Zealand)
• 12 New York City’s payment for ecosystem services: providing clean water for millions
• 13 Empowering consumers: Forest Stewardship Council leadership in internationally traded product certification
• 14 The art of good governance: analysing water management success in Phnom Penh
• 15 Guidelines for transformational change in environmental and natural resource management
• Index