From Steering to Rowing: Public Sector Solutions for the Grand Challenge of Climate Adaptation

The complexity of coordinating multiple actors and reconciling their divergent interests makes governance a critical concern when addressing grand challenges. The consensus is that Cross-Sectoral Partnerships (CSPs) provide the most suitable governance approach: governments “steer” by setting objectives and orchestrating, while the private sector and civil society “row” by delivering innovative services efficiently. We report on a discovery that challenges this consensus. Switzerland’s disaster insurance system relies on the government to do both the “steering” and the “rowing.” Public sector organizations in this context are exceptional in providing affordable disaster insurance coverage directly to property owners while also addressing the grand challenge of climate adaptation by integrating disaster prevention and mitigation at scale. We identify key mechanisms that enable this public sector solution and invite management scholars to investigate their application to other grand challenges.