International Seminar on Durability and Lifecycle Evaluation of Concrete Structures-2007

Fundamental Theory of New Public Management～System Design Methodology and System Maintenance～

Seigo NASU
Director of Research Center for Social Management
Professor of Infrastructure Systems Engineering / Entrepreneur Engineering Course
185 Miyanokuchi, Tosayamada-cho, Kami City, Kochi Prefecture 782-0003, JAPANTEL：81-887-57-2792
FAX：81-887-57-2811
E-mail:nasu.seigo@kochi-tech.ac.jp

ABSTRACTSocial systems analysis consists of how to deal with the objectives such as
phenomena, persons under certain social circumstances and how to utilize resources toachieve the target of the social systems. Social systems function properly as far as therelations among social circumstances, objectives, resources, and targets are appropriate.
But it also has to be realized that these appropriate relations may not be able to bemaintained unless the continuous maintenance and organizational and personnel
management and clear management policy are performed under the change of factors
related to social systems. It is not just enough that we have appropriate social systems.
Social systems consist of processes and rules to deal with mutual relations amongfactors. They also consist of systems of processes and rules to determine the socialsystems. Thus systems to determine appropriate systems also have to function properly
and they have to be confirmed. For the social systems analysis, we have to study on
durability of the social systems, and evaluate the mechanism of the social systems
from the social science point of view as well as engineering science point of viewthough New Public Management procedure associated with Logic Model.
1. Background of New Public Management
In general Management of social capital has to be discussed as a system of New
Public Management (NPM), since public service for citizens are mainly provided bysocial capital of software and hardware which is also the major investment of thegovernment. Appropriate management of social capital has to be derived from theinvestigation on NPM and social capital which is related with investment andoperation.
It is difficult to identify one definition of NPM since researchers and critics havetheir own definitions. Some definitions have a specific and systematic concept such as
an actual process, decision making and evaluation standard for public managementtarget. On the other hand, at Japan and at many other countries definition of NPM
varies very much, although necessary functions of NPM can be defined as follows.

International Seminar on Durability and Lifecycle Evaluation of Concrete Structures-2007

1) Enable efficient public management and investment
2) Enable selection of optimal countermeasures for public target
3) Fulfill accountability and process transparency
In order to provide a new concept of NPM for social capital, it is necessary tosummarize and evaluate methodology or process of existing what is called “NPM”
systems. Public management can be divided to investment/planning work and routine
public service work as well as investment planning and public administration.
Planning procedures for investment are to make an appropriate investment plan, toexecute a plan, and to improve a plan which themselves are the procedure of the NPM.
On the other hand, appropriate public service works are output of the improvement
procedure of NPM systems as well as that of investment plan. The traditional
management improvement cycle of the private firms which is well known as “Plan Do
Check Action” cycle is what deployed at public management for the same
improvement purpose. Either for investment plan or for public service works
fundamental procedure and activities are the same as shown below.
Social capital or infrastructures from hardware to software are to be planned, to beconstructed, and to be operated, to be maintained in a single management system inorder to provide public services to citizens for a long term efficiently and steadily. As aresult of NPM system, investment plan has to assure future service level and efficientmaintenance, and maintenance system has to assure optimized function to maintain
service level efficiently. Asset Management System for Social Capital orinfrastructures is an actual example of the output of NPM system procedure for
efficient management system.
2. New Public Management and Logic Model
In order to construct NPM system for strategic target, theoretical relationshipbetween strategic target and actual countermeasures or services has to be investigatedin multiple points of view such as cost and benefit. Theoretically obscure relationships
do not provide us accountability for the governmental budget, and it result in thatcitizens become skeptical to the public management. Logic Model describes how
actual countermeasures and investments are theoretically connected to final strategic
target, and it also functions in multiple ways for NPM procedure and policy/strategy
evaluation systems. Program Logic Model introduced at “Logic Model Development
Guide” published by W.K. Kellogg Foundation is an example of Logic Model, which
is defined as, “Basically, a logic model is a systematic and a visual way to present andshare your understanding of the relationships among the resources you have to operate
your program, the activities you plan to do, and changes or results you hope to achieve.
“ However it is not designed for actual function and procedure which are essential
factors of NPM.
Here, a new definition of “Logic Model” is introduced to define NPM system
structure. The Logic Model for NPM which provides Asset Management System ofsocial capital or infrastructures has to function as a theory that explains which budget
expenditure, investment or countermeasure is appropriate to fulfill public managementtarget, as an evaluation standard for the selected portfolio of them, as well as a total
management structure, and that is why its definition is very important.
[Five New Definitions of Logic Model for NPM]
No1. : Logic Model is a theoretical description of relationship structure among

International Seminar on Durability and Lifecycle Evaluation of Concrete Structures-2007

strategic management target as an outcome and performance of investment,services, countermeasure as outputs. It theoretically explains how these outputs
relate and contribute to an outcome.
No2. :Logic Model is a management
Concept Structure of NPM
structure itself, since it explains
Operation system of infrastructures or services
the theoretical relationship andLogic Model(Primary system)
the portfolio of investment,services, and countermeasures
Evaluation systems for sustainability, risk,environment, efficiency (subsystem)
which public management has toexecute.
cycle corresponding toNo3. :Logic Model is able to be Maintenancethe socio-economical circumstances
applied for evaluation of the and technical background or standards
Estimation system for each investment or
infrastructure such as cost versus benefit
portfolio
performanceand（third level system）
NPM
maintenanceaccomplishment rate of strategic
System evaluation forSystemchanging conditions
management target, since it dose
Logic Modelnot only show relationship but
Figure.1 Logic Model and NPM system
also can show that quantitatively.
No4. :Logic Model is a management structure which is designed to function undersocial circumstances, environmental circumstances, technical circumstances, sothat Logic Model can be applied for revision or confirmation tool ofmanagement system.
No.5 :The investment, services, countermeasures selected to form output of Logic
Model is a portfolio to accomplish strategic management target.
3. Management procedure for structuring Logic ModelIf we follow a conventional management procedure to make a management systemsuch as Planning/Decision making⇒Organizing⇒Motivate⇒Control/Review (Fig.2),
the first step has to be executed as Fig.3 which is the major part of structuring a LogicModel.
Planning,
Decision making
Resources

・Set Targets
・Set Methods

・Set Targets
・Set Methods

Organizing
・Organize
Resources &Methods①Personnel②MoneyStructuring problems

Target（Effectiveness③Capital④Information

Control,
Review・Monitor theAchievement &Review

Logic Model is a theoretical description of relationshipstructure among strategic management target as anoutcome and performance of investment, services,
countermeasure as outputs. It theoretically explains how
these outputs relate and contribute to an outcome.

Planning,
Decision making

What is Management ?

Recognition of
set of problems,Efficiency）
Motivate
・Activate humanresources

Structuring Target

Set Strategic
Target forManagement

Policystructuring

・Structuring citizens’
recognition
・Structuring stakeholders’relationship●Social Experiments●Survey to citizens, stakeholders①survey to evaluate needs, structuring
problems

Management Environment （Social,Economical, Technological, Natural, etc）

Figure.2 Management procedure②survey to produce numerical function

Figuire.3 Structuring problems & targets

4. Logic Model for New Public Management
Public management starts by setting the strategic target either politically oradministratively. For example if some local government set a strategic target to vitalize
local economy and citizens life as a primary outcomes, they have to be connected tolower outcomes, which also have to be connected to actual investment, services, andInternational Seminar on Durability and Lifecycle Evaluation of Concrete Structures-2007

countermeasures. If effect and cost of these investment, services, and countermeasures
can be measured and evaluated numerically, and if outcomes can be defined bynumerical indicator, hole logic model can be defined as a numerical function whichenable primary outcomes to beevaluated. For example primary ■Logic Model for regional economy and citizen’s amenity
outcome “income per person” is able tobe measured and be evaluated with ●Political Target: vitalize economy and life
statistical data, which can be related to PrimaryLife amenity
Secondary outcome “time saving” by Outcome Increase income
statistical relation function between
Easiness of moving Info. environment
time and income, or related survey. Secondary
Outcome Time saving
Secondary outcome “time saving” isable to be integrated with time saving
Strict ban ofPedestrian Optical fiber
BypassETC
illegal parking Road const. For info. HWY
construction
effect of each countermeasure which Actual
countermeasures
can be modeled as a numerical function
ETC: electric tool systemeither by measurement of social
experiment or by survey.
Figure.4 Example of Logic Model
5. NPM procedure and how to apply Logic Model
The NPM procedure associated with Logic Model is introduced. Once the policy orpolitical vision is set, their appropriateness has to be checked by marketing and bysocio-economical survey, with which outcome for policy or vision is structured bysetting Logic Model. At the Logic Model broader policy or vision requires multiple
layers of intermediate outcomes to reach actual investments, services, andcountermeasures. Here, purposes of surveys can be divided to seeds or needs finding,and developing numerical functions of effect and cost evaluation. And numericalfunction of quantitative indicator has to be developed to evaluate effect and cost ofinvestments, services, and countermeasures. With all these development of Logic
Model policy or vision outcomes can be evaluated numerically and government is able
to sustain their accountability for necessity of individual investments, services, andcountermeasures. Once logic model is developed, existing social capital,
infrastructures, or service systems have to be evaluated whether these are enough orused properly to accomplish primary outcomes as strategic targets without any newspending. This procedure is able toSetting Policy or VisionMarketing needs
Citizen’s
Intension & magnitude
eliminate unnecessary investment
OutcomeforPolicy/Vision
Setting
Logic
Model(LM)and management system. After these
Set Numerical Model of Logic Model (LM)
Numerical Outcome Index
procedures possible alternatives
Propose evaluation method for Policy,
Countermeasures
have to be developed in case⇒Social Experiment, Questionnaire, etc.
existingsocialcapital,
Check the maximum use of resources by LM
Base Line CheckAdequateness check of LM
infrastructures or service systems
Multiple Countermeasures set
Performance evaluation by LM
are not enough, with which theDetermine Portfolio ofPerformance evaluation by LM
portfolio of their effects is evaluatedcountermeasures⇒benefit per cost, sustainability,investment risk
with Logic Model. At the same time
Execution and observing
performance
Logic Model has to be tested
Revise Policy/Vision and Countermeasure Portfolio
whether theoretical relationshipamong outcomes and outputs areappropriate with the proposed portfolio. Figure.5 NPM procedure and Logic ModelPublic Involvement

International Seminar on Durability and Lifecycle Evaluation of Concrete Structures-2007

Effect evaluation of portfolio should not be done just for the selection of outcomesbut for the investment or expenditure level of each countermeasure, or even for themethodology of investment or operation. Efficiency of investment as benefit by cost is
not just indexes for countermeasure evaluation. They are to be used for integration of
total effect and cost to evaluate rate of outcome accomplishment, as well as investment
risk and other necessary standards.
The selected portfolio of investments, services, and countermeasures, or theiroperation methodologies has to be the output of the NPM procedure including
development, operation, and maintenance of infrastructures, whose performance has tobe evaluated on the procedure of the execution whether the Logic Model has atheoretically and effect-quantitatively appropriate relationship. Evaluation may resultin the review of Logic Model and policy or vision. Even though original Logic Modelis appropriate, it may become inappropriate under the changing social circumstance,and other circumstances such as culture, economy, environment, and technology.
Therefore the New Public Management cycle has to be constantly activated for thereview of policy, vision, and outcomes. Through these procedures accountability tocitizens is able to be sustained, which is a major purpose of NPM.
6. Policy Logic Model for Social Capital Investment PlanAs already explained, Social Capital Investment Plan is an output of NPM system
and Logic Model which consists of theoretically connected layers of outcomes toaccomplish strategic target or a primary outcome. Therefore Logic Model itself has ahierarchy of multiple Logic Models.
The most fundamental Logic Model is a “Countermeasure Logic Model” which
has a relationship among countermeasure outcome, and output produced by each
investment, service, or countermeasure. On the other hand, some intermediate Logic
Models connect “Countermeasure Logic Model” to the “Policy Logic Model” which
explains the primary outcome of policy or vision.
Infrastructures Plan and Policy Logic Modelat each planning period
Policy Logic M odelLong termPlan
Review for thechanging
Circumstances

R eview
by Policy Logic M odel

Policy Logic M odel
Middle term
Plan
Review for thechanging
Circumstances

Compatibility Checkby Policy Logic M odel

Figure.6 Structure of Policy Logic model

Policy Logic M odel
Short term
Plan
Review for thechanging
Circumstances

Figure.7 Plan review by Logic Model

These Logic Models have to be developed at each level of governmental planning.
Development plans of infrastructures generally consist of long term, middle term, andshort term. In case of infrastructures, Logic Model has to have an identical theory
structure of Infrastructures development plan, where outcomes layers of infrastructuresgenerally have to correspond to the planning levels and planning periods.

International Seminar on Durability and Lifecycle Evaluation of Concrete Structures-2007

7. System Maintenance
Revision of infrastructures development plans through the New Public
Management procedure is able to be proceeded by Logic Model.
●Maintenance stages
1st step：accuracy improvement by data storage
2nd step：quantitative logic model improvement
3rd step：Review of Logic model（Policy Review, Review of relationship between countermeasures and outcome）

At the first step, even if environmental circumstances dose not change,
Management System and Logic Models have to be reviewed to improve accuracy withincreasing monitoring data storage. At this stage if the selected countermeasures,investments, and services have to be revised, compatibility check among short term
plan to long term plan has to be executed. At the second step, Quantitative relationshiphas to be improved, and at the third step, theoretical relationships have to be revised
including the alternation of outcomes, outputs, countermeasures. These revisions ofdevelopment plan of infrastructures is enabled in more precise manner by the Policy
Logic Model which is structured with engineering based quantitative measurement andevaluation for effect and cost, so thatCircetrgum
engineers should contribute more to theseTastci
angce
fields as their responsibility. Even though StratesManagement System or plan for
infrastructures are properly designed for
Asset Management
the outcomes, it is obvious that AssetSystem( Logic Model)
Management System will not provide
services to citizens properly unless theircompatibility to Social circumstances,
Social Capital
Environmental circumstances, TechnicalResources
circumstances,andTechnologicalstandards are not reviewed.
Figure.8 System Maintenance among factorslveleas le yice es stab ncrvie,se tcom ion ffic)t e
1uO fac n,2) tis isiosa ovpr12) )so
3 en cia4) )tec viro l ci
te hr
ch ni nm cu
no ca en msl o l c i t a ta
gi rc l c nc
ca um irc es
ls s uta t a m sn d n c ta
ar es ncdses

REFERENCES“ Total Asset Management Manual” New South Wales Gov. Australia, AssetManagement Committee 2003“Logic Model Development Guide” W.K. Kellogg Foundation“Road Asset Management and New Public Management” invited lecture at 25th
Shino-Japan Technological Workshop, 2005/6/15 Taipei city, TAIWAN“Introduction of New Public Management system into a local government” GOSO
Takashi, UEMOTO Kotomi, NASU Seigo, International Conference on
Measurement and Management of Infrastructure, Oct.29-31, 2004）