Managing Networks: Propositions on What Managers Do and Why They Do It Author(s): Michael McGuire Source: Public Administration Review, Vol. 62, No. 5 (Sep. - Oct., 2002), pp. 599-609 Published by: Blackwell Publishing on behalf of the American Society for Public Administration Stable URL: http://www.jstor.org/stable/3110019 Accessed: 13/03/2009 22:25 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=black. 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Blackwell Publishing and American Society for Public Administration are collaborating with JSTOR to digitize, preserve and extend access to Public Administration Review. http://www.jstor.org MichaelMcGuire of NorthTexas University Managing Networks: Managers Do and Propositionson Why They Do What It Measuringmanagementin networksis difficultbecause the allocationof managerialresourcesin networkstructures is fluid-that is, theutilizationof managementbehaviorsvariesacrosstimeand space withina given programor project.As a means of focusingthe networkmanagementresearch agenda, propositionsbased in contingencylogic are suggested to test ideas regarding when,why,and how networkmanagersundertakethesebehaviors.Thepropositionsare intended to identifythe vastinventoryof networkmanagementbehaviorsand, mostimportantly, determine how the manager strategicallymatchesbehaviorswith the governingcontext.Suggestionsare also offeredto help us understandhow and why managerialresourcesare reallocatedover time and space. Theproposed researchagenda is offered as a guide to help us determinewhich choicesare mostlikelyto be effective. "The study of governanceneeds its bestseller with snappyaphorismsand vivid stories." -RA.W. Rhodes In the midst of remarkableincreasesin the quality and quantityof researchin public network management,the story of the public managerin such contexts has yet to be adequatelytold. Where is the "day in the life of a public networkmanager"fable to teach us the basic how-tos of networkmanagement?Where are the textbookswith fullcolor pictorials, biographical accounts of highly skilled networkmanagers?Wherecan we find documentationof a managermuddlingthrough,gropingalong,or fallingasleep at the wheel in networksettings?As moreattentionis given to governing structuresthat are multiorganizationaland multisectoral,this aspect of public managementcould use some simple,richdescription.In the passagequotedabove, ProfessorRhodes(1997, xv) writesconcisely,andonly partially in jest, that "all too often academicsmake maps of complexity,insisting that complex problemsrequirecomplex solutions"that stand in contrastto the "snappy'ten commandments'of the latestmanagementbestseller."However,it is difficultto discussclearlyandconciselythatwhich is complex and multifaceted.The practice of managing across governmentsand organizationsoutpacesempirical descriptionandtheoreticalexplanation.We do not yet have the vocabularyand imagery to tell meaningful stories of managementsuccess in networksettings. This articlemay fail the "tencommandments"test, but its intentis to simplifyandfocus researchon networkmanagement.It discussesthe challengesof measuringthepublic manager'scriticalactions andbehaviorsin models of program effectiveness in networkpolicy making and administration.The basic premise is that a research agenda in networkmanagementmust include threecomponents:(1) a descriptionof the behaviorschosen by the networkmanager; (2) an explanation of why managers make such choices; and (3) an evaluationof these choices. Making the importantcase thatnetworkmanagementhas become a criticalactivity in public administration,recentresearch has emphasizedthe thirdcomponent,theorizingaboutthe meaning of effectiveness in networksand testing models of effectiveness with empiricaldata. In such valuable but incompletemodels, networkmanagementhas become the ultimateindependentvariablein causal modeling of programeffectiveness, but the specific behaviorsof the public manager are not properlymeasuredin these models. Although advanceshave resultedfrom the more sophisticated studies (Meier and O'Toole 2001; Provan and MichaelMcGuireis an associateprofessorof publicadministration at the of NorthTexas.Hisresearchon interorganizational networks,colUniversity laborativepublicmanagement,and economicdevelopmenthas been publishedin manyjournals,includingPublicAdministration Review,Journalof PublicAdministration Researchand Theory,State and LocalGovernment Review,Publius:The Journalof Federalism,and EconomicDevelopment Quarterly.Email:mmcguire@scs.cmm.unt.edu. on WhatManagersDoandWhyTheyDo It 599 ManagingNetworks:Propositions Milward1995),empiricalresearchheretoforehasneglected to describe and explain how particularmanagementresources are employed in network structures.In researchdesign terminology,a premiumhas been placed on establishing internal validity, without a similar concern for measurementvalidity.The discussion in this article is intendedto provideone roadmap for identifyingandunderstandingthe behaviorsof the networkmanager. Assumptionsand Definitions Several assumptionsand definitions must be stated at the outset. First, the term "network"is used in this article to describepublicpolicy makingand administrativestructuresinvolvingmultiplenodes (agenciesandorganizations) with multiple linkages. I use the term not just to describe social networksor informalpatternsof interaction,but to connote structuresthrough which public goods and services areplanned,designed, produced,anddelivered(and any or all of the activities). In keeping with recent public administrationresearch,I do not definenetworksas purely sociological phenomena.Instead, I use the network as a metaphorto describejoint situationsin which more than one organizationis dependenton anotherto performa task. My intentis not to apply the concept of the social network to public administration,butto modify ourmodels of public administrationand managementto apply to networklike settings. Second, I assume that governmentis properlyviewed as a steererof policy making and execution,reflectingthe desires and demands of its citizens. My use of the term "networkmanagement"still conveys the steeringfunction of government,but in a way that is wholly differentfrom command-and-controlprocesses within a bureaucracy.In practice,networksmay rely on variousleaders at various times performingvarious roles, all of which may be necessaryfor networkeffectiveness.However,my hypotheses assume the typical situations in which governmentultimately is held accountablefor the satisfactorydelivery of public goods and services. Therefore,the network manager in the situations assumed here is the government managementcharged with completing such a task, who must do so with and throughnetworkedsettings. Public managerscan't commandaction in networks,but they are still responsiblefor their outputs. Third,unlike many studies of networksand collaboration, my focus is on managingthe networkas a network. The first-stage, operations-level management behaviors examined in this article are conducted to achieve a particularpurpose;the hypothesesraisedherearenot intended to directlyaddressthe networkpurpose.In this regard,the behaviors can be viewed as analogous to-but certainly not the same as-behaviors and tasks thatconstituteorgaReview* September/October Administration 600 Public 2002,Vol.62, No.5 nizational behavior theory. For example, in order for an organizationto produceits goods andservices,it musthave the most skilled staff.The staffmustbe motivatedto maintainor increaseproduction,the organizationmustbe structuredin such a way that productionis efficient and effective, and the development of interpersonalrelationships must be fostered. The manager'sjob is to make this happen. Similarly, any government manager charged with achievinga goal throughnetworksettingsunderstandsthe most criticalactivitiesinvolve operations-identifying and working with the properplayers and resources, keeping the players committed, defining the roles of the players, and facilitatingeffective interactionamong the players.A networkmanagercertainlycannotcommandthese to happen, as a managerin a single organizationcan do, butthey still must happenfor networksto be effective. Thus, I delimit my analysis to exploringwhat managersdo to operate in effective networks. TheResearchQuestion I submitthat the most importantnetworkmanagement researchagenda involves answeringa simple but elusive empiricalquestion:Do the actions of a managercontribute to the effectiveness of multiorganizationalarrangements, and if so, how? Governingnetworksdo not simply emerge spontaneouslyas self-sufficient, automatedentities. There is both an operationaland a strategiccharacter to networksthat depends largely on the actions of a manager.Recently adoptedmeasuresof networkmanagement typicallyinvolve countingcontactsandinteractionswithin the network (Agranoff and McGuire 1998; Meier and O'Toole 2001; Provanand Milward 1991, 1995). The use of these preliminary measures in network studies has opened the floodgates, so to speak, and provided a welcome stream of knowledge regardingthe scope and impact of multiorganizationalstructures,but they fall short of accuratelydepicting a networkmanager'sbehavior.If scholarshipultimatelyis intendedto informaction,to provide guidanceto managersoperatingin a complex andrapidly changingenvironment,this empiricaloversightmust be corrected and next-generation measures of network managementmust be conceived. Measuringmanagementin networksis difficultbecause the allocation of managerialresources in network structuresis fluid, thatis, the utilizationof managementbehaviors varies across time and space within a given program or project.A managermay believe it is necessaryto stabilize processes within a network-say, by fostering agreement on the rules of interactionamongthe playersor gaining consensuson a commonlanguageto use duringnetwork operations.But emphasizing stabilizationmeans that, in that particulartime and place, less attentioncan be given to exploiting opportunitiessuch as expandingthe size of the networkor engaging stakeholdersto supportthe aims of the network.The distributionof managementresources expendedat a given point in time will vary,makingobservation and identificationproblematic. As a means of focusing the network managementresearch agenda, I suggest hypotheses to test ideas regarding when, why, and how network managersbehave. The hypotheses are drawnfrom interviewswith local network managersand the rapidlyexpandingliteratureon network management. TheExample An example of a very common scenario illustratesthe complexity and difficulty of measuringnetworkmanagement. One local agency in North Texas is charged with providingservicesto personswithmentalillness andmental retardationas partof the Texas mental health and mental retardation(MHMR) system. The overridinggoal of this particularagency is to respondto the needs of adults and children with mental illness, mental retardation,autism, pervasivedevelopmentdisorder,or substanceabuse,as well as the needs of their families, by providing quality services. The centerhas contractswith a vast numberof providers thatdeliver services to its consumersandhas established working relationships with no fewer than 31 governmentaland nongovernmentalorganizations.Funding for the center'sactivitiescomes frommultiplesources: home and community-basedservices contracts,grantsfor operating expenses from the state MHMR agency, new generationMedicationfunding,Medicaid, child and adolescent mental health block grants, in-home and family services, Medicare,and funding from three local governments. Managersfrom the MHMRservice arrayshave recently experiencedthe opening of two new clinics, an additional office, a merger,and a majorrestructuringof the statefundingsystem. Since the summerof 2000, the home and community-basedservices programfor persons with mental retardationhas experiencedfunding reductionsof approximately25 percentwhile realizing a 39 percentincreasein the numberof people served.Demandfor MHMR services has far surpassed the center's capacity, while centerwide funding from the state of Texas has been reduced every year.Uncertainfundingfrom the federaland state government,a continual shortage of Medicaid providers, increasingcosts of utilities and housing, and other significantshocks to the agency have resultedin many incrementalandseveralfundamentalchangesto the network structureandoperations.Even in suchenvironmentalcomplexity, however,evaluationsindicatethe vast majorityof consumers, family members,communityvolunteers,and representativesof variousgroupsare satisfiedwith the per- formance of center activities, rating the effectiveness of the networkas high or very high. In this scenario,how do we measure"networkmanagement"? Considerthe multitudeof activitiesperformedby managers.To meet the demandfor expandedmentalretardationservices,the managerexpandedthe networkof providers and reconfiguredthe roles of existing providers. After the agency initiated person-directed planning-a process for developing service plans from the personal outcomesdesiredandidentifiedby the individuals-managers worked with providersto assist them in realigning their service approachwith the agency's new philosophy. When a committeeof volunteersdrafteda plan calling for improvedinternaland external communication,network managers enhanced informationexchanges and utilized informationmore effectively as a means of improvingthe quality of interactionwithin the network.As the state reduced the center's funding, managers solicited financial resources from previously inactive community representatives and mobilized supportfrom previouslyuncommitted players in the community. The only thing extraordinaryaboutthis example is that it is not extraordinary;environmentalshocks such as those experiencedat the agency are common in many policy areas. As in many networks,over a shortperiod of time, the allocation of managementresourcesvaried considerably. Some behaviors necessarily preceded other behaviors, while otherswereundertakenin responseto abruptchanges in the programenvironment.How do we accountfor these numerousactions andbehaviorsin our models of network management?At what point should we capturethis activity and assign a value to it? For pedagogical and theoretical reasons,it is not desirable,even if possible, to consider managementin this regardas a single set of efforts or a sum of managerialbehaviors.A simple count of the number of contacts with a predeterminedlist of possible networkmemberswill not-indeed, cannot-adequately capturethe extent to which strategicand competentaction by the networkmanager(s)contributesto the success of the network. It is even conceivable that such a count would severely underestimatethe scope of managementactivity, since the quality of interactionmay have changed more significantlythan the quantityof interaction.The limitations of applying our currentmeasures of network managementeven to a typical networkare obvious. TheFluidityof NetworkManagement Management Behavior Network managementis an elusive target to properly measure. The allocation and utilization of management resourcesexpendedis fluid-it variesacrosstime andspace within a given programor project. Managingin network Networks: onWhatManagers DoandWhyTheyDoIt 601 Propositions Managing structuresinvolvesa complex sequenceof moves andcountermoves,adjustmentsandreadjustments,actionsandnonactions. Some moves are more consequentialthan others. Some moves merelyestablishthe contextfor makingother moves. Othersserve as a breachbetween failed andinconsequentialmoves and the promise of eventualsuccess. Ourunderstandingof networkmanagementis derived mainly from theoreticallyexamining, ratherthanempirically cataloging, behavior. During a time when observers first became aware of the emerging intergovernmental and interorganizational forms of governing, Hanf identified how managers intervene in existing interrelationships, promote interactions, and mobilize coordination (Hanf, Hjer, and Porter 1978). Since that time, researchershave documented that officials from all levels of government perceive managing across governments and organizationsas involving a number of discrete but related activities: mobilizing forces within and outside the community to build support;acquiringthe necessary financing, expertise, and other resources while setting a course of action; learning about the externalgovernment opportunitiesand constraints;reading the ever-changing signals of program managers and funding agents; and successfully operating and cooperating within the system (Agranoff 1986; Howitt 1984; Stone 1989). Anotherway to move towardgreaterunderstandingof the activities of networkmanagementis to model the impact of public managementin general on governmental performanceandthen isolate factorsthatarenetwork-specific. O'Toole and Meier (1999) develop a parsimonious yet robustframeworkfor modeling managementthat discerns not only the impact of these functions, but also the managerialresources used to performthese functions in particularstructuralcontexts. O'Toole and Meier's model is not network-specific;rather,it capturesthe resources thatgenerallycomprisepublicmanagement,which include stabilizingthe internaloperationsof a system, exploiting shocks in the environmentof the system, andbufferingthe system to minimize the impact of environmentalshocks. The model is groundedin structuralvariationsthat exist withinparticularprogramcontextsandthe way suchvariations determinethe allocation of managementresources. Thus, network managementis a particularallocation of resourcesin which environmentalmanagement-leveraging externalopportunitiesand bufferingthe system from unwantedshocks-supplements or opposes more hierarchical functions. Meier and O'Toole (2001) test the formal model with performancedata from Texas public school districts.The variableconceptualizedas the environmentalcomponent in the model is measuredby the level of interactionbeand tween the primarynetworkmanagers(superintendents) the school districts'organizational five sets of actorsfrom Review* September/October Administration 602 Public 2002,Vol.62, No.5 environment.Using both ordinaryleast squaresregression and substantivelyweighted analytical techniques (Meier and Gill 2000), the authorsfind the frequencyof interaction is positively related to school district performance; the greaterthe numberof actorsandinteractionwith whom the superintendents"networked,"the higher the performance.In a field withempiricalresearchthathas proceeded at a snail's pace, the evidence demonstratingthe impactof network managementon programperformanceprovides an enormouscontributionto the field. Meier and O'Toole conclude, "the results of this study offer encouragement for those who are convincedthatpublic managementmatters, thatnetworkmanagementitself can be importantfor performance,andthatcomplex models of public management are worthyof serious attention"(291). Even so, the authorsacknowledgethattheirmeasureof managementin networked settings is simplified and ignoresthe realessence of management.Indeed,the strength of the formal model-conceptual sophistication, parsimony, and generalizability-is also its main weakness when applied to managing in networks. Like other network management studies (Provan and Milward 1995; Agranoffand McGuire 1998), the frequencyand regularity of network managementare accounted for and measured, but the multiple operationalbehaviors undertaken by the managerare not. In orderto look at how managersmanage a networkas a network,it is necessaryto distinguishbehaviorsin terms of their operationaldifferences. I examine four different, thoughcertainlynot all-inclusive,categoriesdiscussedelsewherein the literature(AgranoffandMcGuire2001). These behaviors have parallels in single-organizationmanagement, but, as arguedthroughoutand as managers in the field are quick to suggest, they are quite different from theirorganizational-behavior counterparts.The operational is similar to work of Kickert,Klijn, and the categorization who distinguishthe multitudeof manaKoppenjan(1997a), gerial tasks in terms of purposes: network management activities aimed at the ideas and perceptions of network members,and those aimed at the interactionof members. The formerinclude preventingor introducingnew ideas, bargaining,and inducing reflection within the network, whereasthe latterinvolve arranging,structuring,and mediating interactionamong networkparticipants. One class of behaviorsundertakenby networkmanagers is referredto here as activation,which managersin the field suggest may be the most importantactivity of managing networks.I use the term"activation"to referto a set of behaviors employed for identifying and incorporating the personsandresources(such as funding,expertise,and legal authority) needed to achieve program goals. The single-organizationparallelto activationwould be personnel issues of staffing.Activatinginvolves identifying par- ticipants for the network and including key stakeholders in the process (Gray 1989; Lipnack and Stamps 1994; TermeerandKoppenjan1997). The skills, knowledge,and resourcesof these potentialparticipantsmust be assessed andtappedinto (AgranoffandMcGuire1999;Klijn 1996). Accordingto Scharpf(1978), selective activationis based on correctlyidentifyingthe participantsandotherresources needed for the network.Activationis a criticalcomponent of networkmanagementbecauseresourcessuch as money, information,andexpertisecan be integratingmechanisms of networks. Even after a network is operationalbut not performingas desired, "deactivation"may be needed to remove some networkparticipants.An example of activation is a directorof economic developmentwho is charged with developing an incentive plan for recruitingand retaining businesses and submittingthe proposalto the city council. Applying her knowledge of the community and her experience in the field, the directorassembles a network that includes key governmentaland nongovernmental representativessuch as the county economic development director,chamberof commerce leadership,director of local developmentcorporation,and business owners. Othernetworkmanagementbehaviorsare employed to help frame the structureand the norms and values of the network as a whole. Framing is defined as the behaviors used to arrangeandintegratea networkstructureby facilitatingagreementon participants'roles, operatingrules,and networkvalues. Like activation,framingis used both during the formationof the networkand when networkeffectiveness diminishes or is suboptimal.Network managers must arrange,stabilize,nurture,and integratethe network structure(O'Toole 1997). Framinginvolvesfacilitatingthe internalstructureandposition of the participants(Kickert, Klijn, and Koppenjan1997b), as well as influencing the operating rules and norms of the network (Klijn 1996; Mandell 1990; Termeerand Koppenjan1997). Managers cannotdrawup an organizationalchartin a network,as is done in single-organizationstructures,but they do try to influence the roles that each participantmay play at any given time and the perceptionsone has aboutthe common purposeof the network(Benson 1975;Gray 1989;Lipnack and Stamps 1994). Managersdo this by facilitatingagreement on leadershiproles; helping to establish an identity and culturefor the network,even if it is temporary;assisting in developinga workingstructurefor the network(that is, committeesor network"assignments");andalteringthe perceptionsof participantsto understandthe uniquecharacteristics of working with persons in contexts without organizationalmechanismsbased in authorityrelations. As organizationalbehaviortheoryinstructsus, motivated peoplewho "consistently,creatively,andenergeticallywork towardthe attainmentof organizationalgoals are the key to organizational success" (Denhardt, Denhardt, and Aristigueta 2002). Network managers also must induce individuals to make and keep a commitment to the network. Mobilizing behaviorsare used to develop commitmentandsupportfor networkprocessesfromnetworkparticipants and external stakeholders.Mobilization in this regardis a commonandsometimesongoingtaskfor achieving network effectiveness. Managers build support by mobilizing organizationsand coalitions and by forging an agreementon the role and scope of network operations (Kickert and Koppenjan 1997; Mandell 1990). An economic development directorin city government,for example, shouldhave the cooperationof all networkparticipants as well as the city council and the chief executive as a means to more confidently engage in networking and achieve the strategic purpose at hand (Agranoff and McGuire 1999). Managersalso must employ synthesizingbehaviorsto create an environmentand enhance the conditions for favorable,productiveinteractionamongnetworkparticipants. One critical behaviorof the networkmanageris to build relationshipsand interactionsthat result in achieving the networkpurpose.The strategiesof each networkparticipant and the outcomes of those strategiesare influenced by the patternsof relations and interactionsthat have developed in the network.Network managementbehaviors include facilitatingand furtheringinteractionamong participants (Agranoff and McGuire 1999; Mossbergerand Hale 1999; O'Toole 1988), reducing complexity and uncertaintyby promotinginformationexchange (Gray 1989; LipnackandStamps 1994;TermeerandKoppenjan1997), and facilitating linkages among participants (O'Toole 1997). Weiner (1990) suggests that organizationalmanagementtechniquessuch as teambuildingandgroupproblem solving are applicableto networks,but networkmanagementis based on informationratherthanauthority.The networkmanagerseeks to achieve cooperationamong actors while minimizing and removing informationaland interactionalblockages to the cooperation.This steering of networkprocessesis like gamemanagement,in the sense that the result of the network process "derives from the interactionbetween the strategiesof all actors involved" (Klijn and Teisman 1997, 99). The categorizationof networkmanagementbehaviors offered here is less importantthan the point that it is necessaryto catalog suchbehaviorsandto determinehow and why to use such behaviors.However one categorizes behaviors, the differentmanagementresourcesallocated by managersare nearly seamless in their applicability.Multiple behaviors are utilized in network settings. For example, the addition or removal of a critical network resource-human or otherwise-can have myriadeffects on the network.While roles are rearranged,the managerwill try to facilitate an environmentin which greaterinterac- DoandWhyTheyDoIt 603 onWhatManagers Networks: Propositions Managing tion can takeplace. This mightbe done by improvingcommunicationor by changingthe incentivesof participation. Similarly,synthesizingis often accompaniedby reframing or by a conscious attemptto change the networkparticipants' perceptionof the interactionchanges. Duringor after deactivationor reframing,managersoften must mobilize supportfor the changes,reestablishthe purposeof the network,and make sure all participantsare "on board." Network Environment Thereis a fundamentalneed to discover some explanation or rationale-the set of managerialdecision rulesfor why managerschoose one activity over anotherand how they allocate their time and effort on these activities. What does a networkmanagerdo when the networkmust undergoa transformationof vision andphilosophy?What should she do? Whatdoes a networkmanagerdo when the goals of a programor project are elusive or conflicting? Whatshouldhe do? Broadly,what arethe criticalenvironmental variables affecting network operations,and what are the preferredresponses to these variables? Contingencytheorysuggeststhereis an identifiableand predictablelogic to network managementthat can assist researchersin explaininghow and why managersallocate resourcesin a given context.Applying this logic can lay a foundationfor determiningwhetheractivities and behaviors chosen by managersalways, sometimes, or never operate systematically.Even as researchreveals the vast inventory of network management behaviors, it is also importantto understandhow the managermatches these behaviorswith the policy context. One assumptionof this logic is thatthe network'sfulfillmentof purposesandgoals is contingenton its ability to function in, and its capacity to adaptto, the environmentin which it operates.According to Simon (1981), goal attainmentis a functionof adapting the many and varied inner environmentsin a system (thatis, the network)to the outerenvironment.He argues that "in very many cases whethera particularsystem will achieve a particulargoal or adaptationdepends on only a few characteristicsof the outerenvironmentand not at all on the detail of that environment"(11). If networkmanagementis indeedcontingent,it is necessaryto isolatethose "few characteristics"of the outer environmentthat affect the allocationof managerialactivities. Mandell (1990) was one of the first researchersto suggest how managerialconstraintsvarysystematicallywithin and across networksettings, and thus can affect what she refersto as "strategicnetworkmanagementstyle."Thebasis of her strategic-contingencylogic is similar to Simon's framework:Programperformanceis contingenton the relationship of managementand its problem context. Network settings offer a unique problemcontext with sets of constraintsthataffect, in some way, the allocationof manAdministration Review* September/October 604 Public 2002,Vol.62, No.5 agement resources, and thus the choice of particularbehaviors. Some of the relevant environmentalcontingencies are not exclusive to networks,but others are, and all are importantchallenges for managers. The hypothesesofferedhere extend her analysis by examining not just the roles played by network managers, butthe activitiesof the manager.Before we can adequately describeand informthe practiceof networkmanagement, it is necessary to examine actual behaviors performedin networksandhow managementresourcesmay be allocated differentlywithin networksat differentpoints in time and across networks. I discuss a necessarily brief list of key environmentalvariablesas a means of illustratingthe fluid natureof networkmanagement;a more exhaustivediscussion of such variablesultimatelyis needed to properlydevelop theories of networkmanagement. Matching Environment and Behavior Goal Consensus. The degree to which program or projectgoals are unambiguousis a critical environmental factor affecting the allocation of managementresources by the networkmanager(Thompson1967). Local government executives involved in network settings suggest the final productis by far the most importantcriterionof effectiveness.This instrumentalperspectiveof networkmanagementis commonamongadministrators(Kickert,Klijn, Koppenjan1997b), who lear early on thatone's ability to steer government processes is closely related to goal achievement.Some programshave very clear objectives and readily determinedperformanceindicators,which allow managers to expend more energy on collecting the properresourcesandcoordinatingactivities,just as a managermay do in a bureaucraticorganization.Otherprograms areconceived in vague terms,andthe networkmust establish its objectivesjointly. Consequently,it is reasonableto predictthe following hypothesis: Hypothesis 1: Effectivemanagersin networkswith relativelyclear programobjectiveswill allocate the greatestshareof managerialresourcesto activating (identifying participants,tapping the skills and resources of these persons, ensuring all interests are included)and synthesizing(promotinginformation exchange, developingproceduresof interaction). A program infused with many conflicting goals requires a different type and level of managerial energy. Mandell (1990) argues that "the problem is how to meet the overriding interorganizationalgoal (or set of goals) while at the same time allowing each organizationin the networkto also meet its own...." The presence of unclear programgoals means that one of the first tasks the manager must attend to is facilitating goal consensus-indeed, some networks cannot (should not) proceed without some level of agreement on the ultimate objective. Faced with this constraint,the goals and actions of network memberswill be mutuallycreatedand adjustedover time (Agranoff 1986). Because goals often are embedded in other goals, disentanglingthe primaryor immediate programobjectiveis a criticalmanagementtask.Thus, one can posit the following: Hypothesis 2: Effectivemanagersin networkswith relativelyunclearor multipleprogramgoals will allocate the greatestshareof managerialresourcesto mobilizing (motivatingnetworkparticipants,gaining supportfrom stakeholders,fosteringtheir commitment) and framing (influencing the operating structureof the network,influencing its prevailing values and norms, creatinga sharedpurpose or vision). Resource Distribution.The structureof organizational interdependenciesin a networkis defined by the distribution of resourcesacross networkmembers.The positional resourcesof policy making-legal authority,funding, organization,materials,needed supportservices, expertise, information,and experience-are at the disposal of many differentorganizations(Franz 1991). Each party literally possesses some level of resourcesthat will make a policy work. Just as organizationscan adapt their structuresto the environment(Pfeffer and Salancik 1978), so, too, will network managers shape the structureand membership based on resourcedependencies. Resourcesmay be distributedwidely acrossmanyplayers, resultingin a necessarily large network,or they may be relatively concentratedin a few key players. Persons who contributemay come from many different sources, and their hierarchicalposition in their "home"organization is less importantthan the resourcesthey bring to the network.The types andquantityof resourcesheld by each playermay varyas well. One networkmight includemany members with a relatively equal distribution(control) of policy-makingresources,andanothernetworkof the same size might includeone playerwho possesses an influential amountof a criticalresource,such as fundingor legal authority (Mandell 1990). The network manager needs to identify and include in the network the needed expertise and other resourcesto move a project forward.Effective managersknow who has such resources and will be successful in bringingthem into the networkstructure.Thus, we can predictthe following: to manageexternallyis relatedto the internalconditionof the manager'sprimaryorganization.City administrators reportthattheircapacityto functioneffectivelyin networks is directlyrelatedto the scope of cooperationwith the city council throughparticipatingin strategysessions and representingthe city in public forums. Supportalso involves a willingness on the part of governmentofficials to conduct an open and continuous dialogue with existing and potentialpartners,thus sharinginformationfrom government to network,and vice versa. The repertoireof a networkmanagercertainlymust include these support-building activities.This suggests the following: Hypothesis 4: Effectivemanagersin programswith a relativelylow level of supportfromkey stakeholders will allocate the greatestshareof managerialresources to mobilizing. Relationships.Networkscomprisingmemberswho have worked togetherpreviously may requireless attentionto developing a common purpose or establishing trust than will networkswith relativenewcomers. Trustis a critical resourceas public and nonpublicorganizationsattemptto redefinetheirusual legal-based(hierarchical,contractual) relationships(Nohria 1992). It is commonly acceptedthat people join, remain,and work togetherbecause some element of trust exists, and trust is developed most easily throughexperienceand familiarity.Managerialbehaviors such as sharingand discussing information,finding similarityin processingandtechniques,andjustifying transaction costs may be less criticalwhen trustis presentin networks.Similarly,managerscan allocatefewermanagement resourcesfor formulatingproductiverelationshipsamong the networksmembers when a sharedbelief or common purpose-a programrationale(Mandell1988)-is already present.Thus, one could predictthe following: Hypothesis 5: Effectivemanagersin networkscomposed of some memberswho have workedtogether previouslywill allocatethe lowest shareof managerial resourcesto synthesizing. Policy Orientation.The content of the policy practices endemic to a particularnetworkis anotherenvironmental contingency on which the fluid nature of network management may rest. What Benson (1982) calls a "policy paradigm,"which refers to a commitmentwithin the sector to a particularset of policy options, consists of the network's choice of policy instrumentsor tools (Elmore Hypothesis 3: Effective managersin programenvi1987; Salamon 1981). Some programareasmightrely prironments with a wide distribution of needed remarily on grants-in-aidfor resolving problems, whereas sources will allocate the greatest share of manageothersdependon informationtransferand technicalassisrial resourcesto activationand mobilizing. tance. The dominantpolicy focus constrains,to some deSupport.As in any public program,political and social gree, the extent to which a network managercan exploit supportis an importantenvironmentalcontingencyor con- the environmentfor needed resources;when grant fundstraintfor single organizationsand networks.The ability ing is needed,fundingmustbe sought,andactivatingmemonWhatManagers DoandWhyTheyDoIt 605 Networks: Propositions Managing bers with resourcesotherthanfundingmay have to be deferred. Some programareas depend on directly provided instrumentsor regulationandauthorityinstruments,resulting in mandatedaction. Otherpolicy areas, such as economic development,rely increasinglyon instrumentsdesigned to tap into the special qualities of a community, thus requiringmore diversity in policy formulationand implementation. McGuire (2000) demonstratesthat the process of designing and administeringlocal economic development policy can vary accordingto the types of policies and institutionsadoptedin the jurisdiction.Similarly,O'Toole's examinationof replacingfederalgrantsupportfor municipal wastewatertreatmentwith state revolving loan funds concludes that "decisions to shift programsto the states, deregulate, privatize, and employ market-basedmechanisms have consequencesfor interorganizationalarrangements andprogramsin practice"(1996, 239). This discussion suggests the following: Hypothesis 6: Effectivemanagersin programareas with a reliance on policy instrumentsusing local resourceswill allocate a greatershareof managerial resourcesto activatingand mobilizing. Because the implementationof programsusing intergovernmentalinstrumentssuch as grants-in-aidand mandated regulationsrequiresa great numberof actors with disparategoals, sometimesconflictingobjectives,andlittle incentive to cooperatein operationalactivities, one might predictthat: Hypothesis 7: Effectivemanagersin programareas with a reliance on intergovernmentalsubsidies and regulationswill allocate a greatershareof managerial resourcesto framingand synthesizing. Strategic Orientation. A complicated environmental factor concerns the multiple and sometimes conflicting purposesfor which networksexist. In its most fundamental form, managementis the mechanism for achieving a programobjective, such as educatingchildren,improving the local economy, or providing critical health care services to those in need. Even if the objective is unclearin the relevantlegislation or becomes compromisedduring the process, managers seek to deliver that which policy makersintend and citizens demand.All tasks undertaken by the managerderivefromachievingthatproject.In many fields, neither the principals (lawmakers)nor the clients (servicerecipients)areas concernedaboutprocessas much as they are goal achievement. Because managerial resources are finite, managers sometimes must choose between facilitatingnetwork action to achieveprogramobjectivesandcateringto key networkplayers.Programobjectivesmay be clear-thus proReview* September/October 606 Public Administration 2002,Vol.62, No.5 viding a clear measureof effectiveness for networkmembers, in theory-but the stability of the network may be fleeting if key stakeholdersandnetworkmembersperceive little benefit from membershipand threatento bail from the network by demandingmore agency-level resources. In this scenario, the managermust brokera solution that balances network effectiveness with the efficient allocation of resourceswithin the network.If the networkmember withdrawsfrom participation,effectiveness is jeopardized; if resources are reallocated, efficiency may be sacrificed. Provan and Milward (2001) argue that networks may be expected to fulfill criteriafor effectiveness that are different from simple goal achievement. Satisfying groups thatrepresentdiverse communityinterests, such as advocacy organizations,is a crucial criterionof effectiveness. As the authorssuggest,in termsof stakeholders,"networks must satisfy the needs and expectation of those groups within a community that have both a direct and indirect interestin seeing thatclient needs are met"(417). The primaryprogramobjectivemay be to deliver and/orenhance client services, but the community at large may demand success in achievingvisible aggregateoutcomes.Although a social services networkmay seek to enhanceits arrayof services to reach needy populations,the population as a whole may determinethe community-levelcosts of such a programare too high, either because of competition for limited resourcesor for philosophicalreasons. Effectiveness may be viewed by externalgroups as "dependingon whatspecific serviceproviderseitherdo or do not do, rather thanhow well services areprovidedas a resultof network activities,"thusresultingin community-andnetwork-level decisions made "at the expense of networkparticipants" (422). Thus, one could posit that: Hypothesis 8: The allocation of managerial resourcesto be expendedin a networkmay varyto the extent thatclient needs may not be compatiblewith community-or organizational-levelneeds. It follows then that: Hypothesis 9: Managersin networks where competing assessments of effectiveness exist will allocate the greatest share of managerialresources to framingand mobilizing. The complete range of environmentalcontingencies is not specifiedhere.The foregoinghypothesesillustratehow to proceedwithnetworkmanagementresearch,butthe level of generalityis variable.Forexample,one can reconfigure thehypothesesto be moregeneral,perhapsphrasedin terms of stability,exploiting the environment,and bufferingthe environment(O'Toole andMeier 1999). In this regard,the first hypothesiscould be restated: with innetworks Hypothesisla: Effectivemanagers relativelyclearprogramobjectiveswill allocatea resourcesto exploiting greatershareof managerial thanto stabilizingthesystheexternalenvironment tem. Alternatively,one could test a hypothesisby examining a particularbehaviorratherthan a broad category of behaviors;therefore,the first hypothesis could be restated: innetworks with Hypothesislb: Effectivemanagers relativelyclearprogramobjectiveswill relyprimarily on identifyingand securingneededresources neededpolicy resources,andpromotingeffective communication amongparticipants. The hypotheses offered here suggest the need for simplified,even elementary,researchon networkmanagement. Regardlessof the level of generality,researchis needed to test these and otherhypotheses. TheFluidityof the Match servationsof managersthan on the networkmanagement literature,it is reasonableto inferfromthe manager'slogic in use thata single packagerepresentingthe allocationand reallocationof tasks exists and can be observed.There is an implicit understandingthat certain behaviors work in certainsituationswithin certaincontexts, so a playbookof sorts can be constructedfrom the manager'sexperience. When asked to describe the generalprocess of managing a network, network managers operating in a largely technicalenvironment-involving clearobjectives,broadbased support,and ampleresources-assert the use of ostensibly linear strategies. An example of a network in which linearstrategiesmay prevailis a temporary,projectbased networkor a networkformed as a result of a catastrophicevent. The quality (measuredby the high level of goal consensus, lack of contentiousness among network members,supportof key stakeholders,presence of a program rationale,etc.) of coordinatingrelief efforts across governments and organizations after the attacks on the WorldTrade Center and the Pentagon illustrates the essence of a technical environment.Such an environment addressesproblems that have been referredto as "tame" (Rittel and Webber 1973; O'Toole 1997). In these contexts, managersactivatea network,mobilize commitment, frame the operating structuresand rules of the network, and then synthesize interactioninto a productivewhole. Although certainlyoversimplified,networkmanagement may operate like this in specific contexts where the vast majority of resources are dedicated to one set of tasks, then the next, then the next, and then the next, with only occasional changesmade. Sharedprogramgoals andrelatively clear operatingobjectivesmake for relativelystable systems, so one would expect linearnetworkmanagement strategiesto result in stability even while leveraging externalopportunities(table 1, la). Othernetworkmanagementstrategiesmight be identifiable in different contexts. Network managers lacking broad-basedsupportfor theiractivitiesdescribehow often the process of mobilizing must be revisited over time. In these contexts, the allocation of resources alternatesbetween activationand mobilization:Persons become part The first step in properlymodeling network management is to identify specific behaviorsundertakenby managers in various situations.The hypotheses offered above are meant as guides for such research.However, observing the way networkmanagementresourcesare allocated within a networkis necessary,but not sufficient;because managementin networksis fluid, we also mustunderstand how and why managerialresources are reallocated over time and space. Even in networksin which a certaintype of resourceis most salient,many activities are performed, andwe mustidentifywhy andhow managersrotateamong and reallocateresources"on the fly." The concept of strategyoften is used ambiguously to referto these many activities,butthe presentanalysisdoes not view strategyin this manner.The term "strategy"is best used to describewhatO'Toole andMeier (1999) refer to as the "whole set of behaviors"relatedto management. In keeping with contingency logic, the totality of behaviors and the fluid allocationof such behaviorsis itself the strategy.Choosing to expandthe size of the network-an activationbehavior-is not the same as formulatinga management strategy.Expandingthe network is a single be- Table1 SpeculativeNetworkManagementStrategies havioramongmanybehaviorsthattypically areemployed la. LinearStrategy(technicalenvironment,clear programobjectives, to effect a single purpose. Thus, a networkmanagement project-based) - Framing- Synthesizing strategyis defined not only by the numberand types of Activation- Mobilization instrumentsthat are used to solve a policy problem, but (Withminimalreallocation) also by the ways in whichtaskdeploymentvariesovertime. 1b. RecursiveStrategy(lackof support) - Activation - Activation- Mobilization Activation- Mobilization (Withminimalreallocationand less need forframingand synthesizing) Audacious Speculation Interviews with local government executives suggest some common,genericstrategiesinvolvingmultiplemanagerial behaviors.Althoughthey are based more on the ob- 1c. RecursiveStrategy(institutional environment) - Framing - Framing- Synthesizing Activation- Framing- Motivation (Withemphasison identifyingsharednormsand valuesof the network) on WhatManagersDoandWhyTheyDo It 607 ManagingNetworks:Propositions of the network,supportis solicited, more personsare activated and some are deactivated,commitmentis solicited, and so on. As hypothesis4 suggests, effective managersin these contexts will allocate the greatestshareof managerial resourcesto mobilizing, but managersin the field describe the process as recurring.The other management behaviorsof framingand synthesizingareundertaken,but the main approachresultsin whatcan be called a recursive strategy(table 1, lb). Similarly, it is plausible to hypothesize that network managersemploy recursivestrategiesin institutionalenvironments(Scott and Meyer 1991), where immediategoal achievementis impossibledue to a lack of goal consensus, and perhapseven undesirableif the network must build long-termlinkageswithin a communityandnetwork-level "soulsearching"definesmuchof the network'soperations. In suchenvironments,a greatdeal of attentionwill be given to framingandreframingthe network.As rules andnorms are established,some networkmembersleave, others are added;supportis mobilized internallyand externally;and interactionis enhanced, but framing tasks dominate the activities of the networkmanager(table 1, lc). Conclusion The focus of this article has been the actions of the many governmentaland nongovernmentalofficials operating in network settings on a daily basis. To them, management may not seem predictable,and it certainly may be presumptuousto call it systematic. The contingency logic suggested here does not imply rationality.It passes no judgment on the long-term public value of network management,nor does it advocate specific management strategies. Particularmanagementstrategies are not preferredover others. Instead, a simple contingency logic is used as a tool for magnifying a process that seems too complicated to comprehend. Why does managerB allocate managerialresourcesin one way, and managerC allocates resources differently? Why are some networkedprogramssuccessful, but others arenot?The answersto these questionscan be foundsomewhere throughthe kind of observationthatprovidesa rich description of network managementand the type of inquiry that assumes public managersdo and must manage networkas networks.Observationof managerialbehavior is one mechanismfor more accuratelydocumentinghow managersmatchbehaviorwith environmentalconstraints, as is interviewingmanagers,eitherthroughin-depthinterviewing or with a survey.The preliminaryclassificationof behaviorsofferedhere shouldbe tested andrefined-even rejected-if sound data are collected from managersfor this purpose.Bottom line, it is necessary to hear from the managersthemselves.Researchersmay assistpractitioners with a vocabularyandpreliminaryframeworkwithinwhich their actions can be described,but the managersmust be the ones who reveal their actions. 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