An integrated planning, learning and innovation system in the decentralized public sector; a Norwegian perspective

Innovation is doing things in new ways. Innovation involves changes in thinking, products, processes and organization. Many innovations in the public sector occur randomly as a reaction to crises or scandals, or when new leaders desire to show that they are capable. The problem with these innovations is that the public sector does not increase capacity to engage in continuous innovation. Therefore, there is a need to develop a system of innovation in the public sector. In this paper we set out three hypotheses: (1) the public sector does not build capacity to engage in continuous innovation; (2) the main cause of this is lack of accountability for outcomes; (3) reforms inspired by New Public Management (NPM) make it possible and necessary to create an integrated planning, learning and innovation system. In literature about planning systems, planning, evaluation and learning are connected, and the design of functional systems that contribute to connect planning and evaluation are regarded as essential to stimulate learning and innovation in both organizations and societies. Municipalities in Norway have implemented a planning system with institutional, strategic, tactical and operational planning and learning that has a potential to stimulate learning and innovation. We find that this system can be innovative if the practice becomes more communicative and network-based. Communicative innovation demands focus on the outcome of public sector production, and public sector units need to collaborate in order to fulfill societal needs and public sector values and missions. However, the influence of New Public Management reforms in the public sector is still very strong and public sector units are very output focused and self-centered. Lack of outcome accountability is a system failure and an obstacle in the process of stimulating innovative capacity in the public sector.