Introducing PI-Squared: Private innovation in the public interest

In a time when public and private sector collaboration is increasingly crucial to project success, InnovateUS recently hosted a series of three workshops introducing the Pi-Squared (Private Innovation in the Public Interest) initiative. Led by Anita McGahan from Northeastern University's Burnes Center for Social Change, these sessions offered valuable insights into how public agencies and private companies can work together effectively to drive innovation and create lasting positive impact. 

What is PI-Squared?

The PI-Squared Initiative supports private-sector leaders at all levels in becoming smarter, better, and more effective in working with governments to solve public problems in cities, states, federal agencies, and international agencies.

Triumphs and Disasters When Public Agencies Engage with Companies

The first workshop in the three-part series was held on Sept. 11. McGahan presented a comparison of two public-private partnership initiatives: the Sidewalk Labs project in Toronto and the Tulsa Remote program. 

The Sidewalk Labs project in Toronto serves as a cautionary tale for private innovation in the public sector. Despite its ambitious vision for smart city development, the project faced numerous challenges and ultimately failed. Google, the private company behind the initiative, had different objectives than Toronto, which interfered with the success of the project.

“Google wanted the data. Toronto wanted the economic development, but didn't really have a plan for the data,” she said. 

Additionally, McGahan explained that the project failed due to privacy concerns, a lack of alignment with the local needs of Toronto residents, and a lack of concrete investment. 

In contrast, the Tulsa Remote program emerged as a success story of a public-private partnership. This initiative, offering $10,000 to remote workers willing to relocate to Tulsa, demonstrated a more focused and community-oriented approach.

"Tulsa Remote was all designed to try to address the specific problems of the city of Tulsa, which stands in real contrast to what was happening in Toronto," McGahan said. 

She also noted the program's careful implementation: "There's a kind of flywheel of business opportunity that's developing in Tulsa that's been charted out. So we have this sense that there'll be specific local businesses that are going to benefit from the Tulsa Remote program."

McGahan outlined five crucial areas that need alignment for successful public-private partnerships:

• Compelling Aspiration: Ensure both parties have aligned objectives.

• Value Creation: Clearly define who benefits from the initiative.

• Achieving Excellence: Establish concrete ways to demonstrate success.

• Resources and Capabilities: Identify and leverage unique strengths from both sectors.

• Sustainable Excellence: Plan for long-term impact and sustainability.

Turning Problems into Opportunities for Corporate Engagement

This workshop, held on Sept. 18, focused on how to effectively approach innovation initiatives that involve collaboration between the public and private sectors. Participants were asked to name items in their workspace provided by companies and problems they're working on caused by companies.

McGahan then reintroduced her five-part framework for successful public-private initiatives from the previous workshop. 

“This framework can help you make real progress on solving problems. Real progress. But you can't skip steps and ultimately succeed,” she said. "... Often there’s inspiration, sometimes desperation, sometimes hopefulness. And there's a pervasive idea that companies have tons of money."

McGahan continued by explaining the differences in public and private sector approaches to innovation. While the public sector tends to focus on accountability, reliability, politics, and chronic stability, the private sector emphasizes efficiency, flexibility, return on investment, leadership, and competitiveness.

McGahan used the implementation of an electronic medical records (EMR) system in Malawi as a prime example of successful public-private collaboration in innovation. Gerry Johnson, a Malawian software engineer, led the development of the EMR system. Johnson's approach embodied many of the principles discussed in the workshop, including concrete goals, demonstrating excellence, and adapting to local conditions. 

Overall, the workshop emphasized that successful public-private innovation requires systematic thinking about all aspects of the five-part framework, not just inspiration and resource acquisition. 

"It's aligning a compelling aspiration with something very concrete that we can do right now. Creating value for people who may not be receptive initially, but who are critical to the actual delivery of the value, and then achieving and demonstrating excellence at a level that nobody would have anticipated as possible. That's what PI-squared is about. That's what private innovation in the public interest is about - helping us all get better at doing that."

Moving Beyond Corporate Engagement to Sustained Initiatives

The final workshop, held on Sept. 25, discussed the challenges and opportunities in sustaining excellence when public agencies engage with private companies.

McGahan began by highlighting the current impasse in corporate engagement with social issues. 

"The field of corporate engagement is stuck," she said, pointing out the controversies surrounding CSR and ESG initiatives. “ESG and CSR have become controversial lightening rods for criticism.  We’re stuck and not making very much progress. It's very hard for CEOs to do well.”

McGahan explained the various criticisms faced by CSR and ESG initiatives. Those on the left are often concerned that companies are using these initiatives to avoid regulation. Meanwhile, those on the right worry that these initiatives threaten business models and profitability.   Everyone’s worried about greenwashing and socialwashing.  Companies themselves struggle to balance shareholder interests with broader stakeholder concerns.

To move beyond these challenges, McGahan proposed a new approach to corporate engagement with public issues. She emphasized the need for authentic, deep engagement that goes beyond surface-level CSR initiatives.

"What we're learning through the PI-Squared is you've got to build truly authentic conversations and a very deep commitment from individuals in companies," she said.

McGahan outlined several crucial factors for sustaining excellence in public-private partnerships:

• Focus on Innovation

• Personal Commitment

• Trust-Building

• Long-Term Perspective

• Stakeholder Engagement

She concluded by reintroducing PI-Squared to attendees. The initiative’s mission is to reinvent corporate social responsibility and ESG, prototype innovations on a small scale, prove value before scaling, and develop sustainable governance models.

As part of the initiative, PI-Squared will share conversations with changemakers from around the world who have successfully navigated the challenges and opportunities of private innovation in the public sector. 

Find out more here. To sign up for additional InnovateUS workshops, you can register here.