The Relationship between Human Capital and Enterprising ’ Public Services: A Critical Review of the Literature and Proposals for Further Research Refereed Paper

Contemporary public policy advocates a shift in focus from short-term results and efficiency towards the broader notions of client satisfaction and public value. Public value embraces all aspects of government performance and is thought to be enhanced when innovative public services work collaboratively, dynamically adapt to their complex environments and develop new solutions to the problems of ever-increasing expectations. To create such innovative public services, organisations must have the human capabilities and capacities to develop new ways of working and new models of management. Consequently, the Scottish public sector has invested heavily in its human capital through training and development, leadership programmes, and increased spending on doctors and teachers among others. However, recent reports from the Auditor General have suggested that a good deal of this investment is based on an act of faith: there is a great deal of uncertainty regarding exactly how much has been spent and whether it has led to tangible or intangible benefits for clients or public value. In this paper, which is based on the first stage of a project funded by th