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Hosted by: Funded by: All in it together? Exploring ‘isomorphic’ pressures that drive convergence in approach and delivery TSRC Seminar 19 June 2013 James Rees, with Rebecca Taylor and Chris Damm

Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

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Page 1: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

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 All in it together? Exploring ‘isomorphic’ pressures that drive convergence in approach

and deliveryTSRC Seminar 19 June 2013

James Rees, with Rebecca Taylor and Chris Damm

Page 2: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Context• Outsourcing / contracting out• Public service reform• Welfare to work• Role of third sector in ‘Big Society’

Seeking to understand this…Quasi-marketsNetwork governanceThird party governmentNew institutionalism

Page 3: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

The Work Programme• Single programme for all jobseekers• Black Box and payment by results with a back-ended 

profile to reward ‘job outcome’ sustainment• Differential payments  by customer group• Supply chain subcontracting divided into Tier 1 (end 

to end provision) and Tier 2 (specialist)• DEL-AME funding, part funded by savings from 

benefits budget• Designed move from specialist programme(s) to

single generic programme.

Page 4: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Prime Contractor

End to end providers

(tier 1)

Specialist provider(tier 2)

call-off contractsDelivery / Job Outcomes

Referrals from JCP

Direct (in house)Delivery

End to end providers

(tier 1)

A WP supply chain

18 contract package areas (CPAs) covering the UK with 2-3 primes in each area = 40 prime contract

Page 5: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Our research• 1. What is the role of the third sector in the Work 

Programme?

• 3. How have (all sector) subcontractors experienced the Work Programme?

Page 6: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Theory building• So we set out to ask, ‘what is distinctive about 

the third sector’s role’? (expecting difference)• Implicit assumptions about 

difference/distinctiveness:– Unique approaches– Ethos/attitudes/‘mission’– Management practices

• Instead we found a variety of evidence pointing towards similarity and the existence of an area or ‘field’ public policy

Page 7: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Organizational fields• The field in question is ‘welfare to work’

– Synonyms: sector, sub-sector, field, industry, market

• Intermediary organisations shaping field

• Brings into play large literatures on organizational fields

Page 8: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Theoretical traditions• New institutionalism

– Di Maggio and Powell (1983) argue that homogenization of organizational forms emerge out of the structuration of organizational fields (defined as those organizations that, in the aggregate, constitute a recognized area of institutional life). Specifically, they argue that highly structured organizational fields provide a context in which the efforts of specific organizations to deal rationally with uncertainty and constraint often lead, across the field, to similar structures, cultures, and outputs. (Bovaird and Downe, 2006)

– (key text: DiMaggio and Powell, 1983, henceforth D&P)

• Bourdieu, Field Theory– Good on culture and power but less so on mechanisms?

• Fligstein and McAdam (2011)– Theory of strategic action fields– Nested fields, goes wider than D&P and can help explain 

operationalisation of sector– Massive potential

Page 9: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Claims about the field• “It’s not about about sector it’s about size” – ERSA, 

various policy messages• Sector respondent:Q: what do you think the unique role and contribution of the third sector is in general within the 

employment services field?R: There isn’t one.  [!!]

• Rees et al., our message:– Sector not reliable guide to experience in work programme– Crucially about place in the model, in other words how the 

field is structured

• Which is precisely what D&P claim:– That institutional isomorphism is driven by pressures from 

the state and professions

Page 10: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Some intermediate implications• Questions the basis of sector 

distinctions/boundaries• Isomorphism usually viewed as normatively, a 

bad thing (Milbourne 2009, Macmillan, 2010)

– (third) sector becoming more like others– Typically more like bureaucratic public sector– But D&P suggests: would expect this in contracting 

environment• aa

Page 11: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Isomorphic Pressures(DiMaggio and Powell, 1983; Bovaird and Downe, 2006, Mizruchi )

1 There is a trend to organisational isomorphism:• Competitive isomorphism (but, quasi-market)• Institutional isomorphism

– Coercive– Mimetic– Normative

2 There are deviations and resistance to organizational isomorphism:• Differences in local external environment (e.g. allowing an organisation to 

resist resource dependencies; i.e. having reserves?)• Organizational resistance to institutional pressures towards isomorphism 

(e.g. ‘mission’)

Page 12: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

CoerciveFinancial model- Convergence to standardised models/generic provision:if we wanted to stay in the market, we had to offer an end-to-end service rather than just on a call off basis, which is where a lot of Third Sector organisations end up, as a Tier Two supplier, on a call off basis [TS sub]Regardless of what the government are saying… they haven’t funded it properly to be able to get a good service. [Private sub]

Prime management practices– Performance management systems– League tables / Perform or be sacked

That black box is a matchbox, by the way, you know, in terms of “Do it how you want to do it, how you feel it should be done,” it’s just not being...[realised]…well it’s bobbins. [local authority subcontractor][good orgs...] they’ve got really good management … good staff who manage well, who deliver well, and you get the right results. [Prime]

Page 13: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

MimeticStandardardised approaches to uncertainty and risk, 

imitated across orgs.– Response to risk and institutional environment– Merger / acquisition to move into more ‘generic’ provision– TSOs shifting focus, reading the markete.g. disability charity moving to more mainstream provision:And it’s that balance between obviously commercial, the mission statement, and then in the middle of that the fact that we know from the contracts that we’d run previously and the comments that we’d had that actually there were going to be a lot of people referred to Work Programme who could do with the support that we could offer. So even though you can’t control who’s coming through the door, there'll be lots of people who benefit from that and we’ll have disabled people, people with mental health issues, whatever. [TS sub]

Claims that specialist to generic is ‘natural transition’:when we went and opened up in a white working class part of Leeds, followed a similar approach i.e. recruiting local people, and running the service in exactly the same way, lo and behold, we were just good at getting people jobs [Prime]

Page 14: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

The old structure/agency problem• Savvy TSO @ tier 1:[Primes] saw us as a health and social care provider and just thought all we wanted to 

do was hug people and have a chat... a lot of the big guys just think that the third sector isn’t outcome focused enough. [...] It was a continual battle... that’s why people just wanted us to do specialist interventions and not the end-to-end because they though we were just... yeah... They liked the name... We could evidence job outcomes but the primes still weren’t really confident we could do it. [TSO]

• Savvy private @ tier 1: Q. So... as an organisation, you could see the writing on the wall?R. Absolutely, yeah absolutely...R. Which again, is why [name] decided we cant exist on this kind of business model. 

We need to have geographical coverage, hence he bought geographical coverage.

Page 15: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Normative and resistance• Normative – not so relevant but developing?

– Professional standards/accreditation– Intermediary bodies

• Resistance – Going beyond the contract– Service with human face / missione.g. Small TSO doing in work support, Prime wants basic checks, not 

people-centred service, Prime staff don’t ‘get it’

• Local environment / resource dependencies– Almost certainly a factor but hard to research

Page 16: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Summary• Tier 1 is place to be, in this contracting environment, 

clear evidence of institutional isomorphism• Amount of ‘movement’ T2s make depends on 

commercial knowledge and resource dependence• TSOs have to ‘move’ to become more like private 

sector orgs, in a variety of ways• Isomorphism suggests ways in which 

pressures/movements operate• Unifying theory: Isomorphism + SAF

Page 17: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

Questions for you• Is isomorphism a useful approach (worth 

publishing on) or is this merely a confirmatory case of isomorphism (banal)?

• Does this add to third sector academic debates? Particularly on sector boundaries, categories, shape of the sector, fields?

• Useful theory? Linking D&P/iso with Fligstein and McAdam...

... Isomorphic pressures interacting with positioning, incumbents and niches in SAF

Page 18: Isomorphism in the work programme, james rees, tsrc seminar 19 june 2013

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[email protected] @JamesRees_tsrc