DOCUMENT RESUME ED 458 346 UD 034 566 AUTHOR Sylvester, Kathleen; Umpierre, Michael TITLE Red Tape, Silver Hammers, & Shattered Ashtrays: What States and Communities Can Learn from Eight Years of Federal Reinvention. Annie E. Casey Foundation, Baltimore, MD. INSTITUTION PUB DATE 2001-00-00 NOTE 39p. AVAILABLE FROM Annie E. Casey Foundation, 701 St. Paul Street, Baltimore, MD 212012. Tel: 410-223-2890; Fax: 410-547-6624; Web site: http://www.aecf.org. PUB TYPE Guides Non-Classroom (055) EDRS PRICE MF01/PCO2 Plus Postage. DESCRIPTORS Benchmarking; Federal Government; *Governance; Information Technology; Internet; Local Government; Organizational Development; Organizational Effectiveness; *Program Evaluation; *Quality Control; State Government *National Partnership for Reinventing Government IDENTIFIERS ABSTRACT This report presents lessons learned from the National Partnership for Reinventing Government (NPR) and offers advice for state and local reinvention efforts, describing how NPR's leaders built political and public support and focusing on five aspects of reinvention: getting started (e.g.; creating a reinvention team, building relationships with the central budget and management agency, creating reinvention labs, using stories and measurements to build support, focusing on customers, and creating a sense of urgency); unleashing untapped human potential (e.g., recognizing good ideas that save money, moving decision making into the field, giving workers the tools they need to do their jobs, enhancing the quality of work life, and building performance partnerships); using benchmarks to improve government processes (employee work groups and surveys, performance measures, and using information technology to transform one-stop customer service) ; governance (government online rather than in line, user-friendly interfaces, Internet applications, and using the power of place to build support for and moving to balanced measures to assess results in terms of change) ; achieving agencies' missions and satisfying customers and employees. (Contains 71 endnotes.) (SM) Reproductions supplied by EDRS are the best that can be made from the original document. (:) 00 EARN FROM EIGHT YEARS OF FEDERAL REINVENTIffN ` WHAT STATES AND COMMLJNTIES CAI 9 k\ ' A ee'n , elucettkin U S DEPARTMENT OF EDUCATION Office of Educational Research end Improvement PERMISSION TO REPRODUCE AND EDUCATIONAL RESOURCES INFORMATION DISSEMINATE THIS MATERIAL HAS CENTER (ERIC) 11 This document has been reproduced as BEEN GRANTED BY received from the person or organization originating it w_tz. Cgst- Minor changes have been made to _firit14. improve reproduction quality Points of view or opinions stated in this TO THE EDUCATIONAL RESOURCES document do not necessarily represent INFORMATION CENTER (ERIC) official OERI position or policy 1 BEST COPY AVAILABLE ACKNOWLEDGMENTS Headquartered in Baltimore, the The authors would like to thank all the Foundation is the largest private foun- veterans of the National Partnership dation in the nation dedicated solely to for Reinventing Government, especially the needs of vulnerable children and John Kamensky and Pamela Johnson, families. The Foundation's grants are who shared their stories and insights intended to help states, cities, and with us. At the Social Policy Action neighborhoods improve the life Network, Kathy Reich provided chances of the millions of American thoughtful editing, and Melody children at risk of poor educational, Drummond assisted with the research. economic, social, and health outcomes. We are also grateful to Ira Barbell of For more information, visit the the Annie E. Casey Foundation and Margaret Dunk le of the Institute for Foundation's website, www.aecf.org. Educational Leadership's Policy Exchange. They provided invaluable guidance and advice during the course © 2001, The Annie E. Casey of the project. Foundation Additional free copies of this report The Annie E. Casey Foundation is a may be ordered from the Annie E. private charitable organization dedi- Casey Foundation at 410-223-2890, cated to helping build better futures or visit www.aecf.org. for vulnerable children and families in the United States. It was established in 1948 by Jim Casey, one of the founders of United Parcel Service, and his siblings, who named the Foundation in honor of their mother. CONTENTS Introduction 1 Overview 2 Getting Started 4 Strategies for Unleashing Untapped Human Potential 14 Moving to Balanced Measures 20 Benchmarking Studies 22 Using Information Technology to Improve Government 26 Conclusion 30 Resources 31 32 Notes INTRODUCTION NPR also changed the culture of ne legacy of the Clinton State and local governments can 0 some agenciesand the relation- learn a great deal from the history administration was its eight- of NPRboth from its successes ship of the federal government to year effort for "creating a govern- its own employeesby measuring and from its shortcomings. This ment that works better, costs less, the agencies against new kinds of report harvests the lessons and and gets results Americans care about." Although the National standards, some set by workers offers advice for state and local Partnership for Reinventing themselves and some adapted from reinvention efforts. It focuses on Governmentor NPRdid not the private sector. Finally, NPR five important aspects of reinven- tion: getting started, unleashing changed relationships with state achieve all of its ambitious goals, it untapped human potential, using did significantly reduce the size of and local governments by treating them as full partners in producing benchmarks to improve govern- the federal workforce, cut adminis- ment processes, using information trative costs, use information tech- results for the citizens they serve in technology to transform gover- nology to improve government common. nance, and moving to balanced interactions with citizens, and reform the procurement system.' measures to assess results in terms of achieving agencies' missions and satisfring customers and employees. I OVERVIEW In 1993, the National also imposed one important rule: Excellence in Performance (STEP), There would be no recommenda- Partnership for Reinventing and Oregon's Benchmarks. Local Government (generally called tions for further study. successes in cities like Sunnyvale, NPR and formerly the National California, and Hampton, Virginia, For eight years, beginning in 1993, Performance Review) was born. also served as models. NPR's lead- NPR would review the specific and Its mission: Creating a government ers focused less on what govern- the generalfrom assessing the ment should do and more on how that works better, costs less, and effectiveness of individual agencies government should work. Former gets results Americans care about. and their unique functions to NPR Deputy Director John NPR was the tenth attempt in the rethinking government systems Kamensky says that instead of 20th century to reform the federal such as procurement and person- taking the classic approach of reor- nel. It would examine how govern- government. All the earlier efforts ganizing government, NPR "tried including those of the 1937 ment functioned in its central to fix what's inside the 'boxes' offices and in the field in what Brown low Commission, the 1949 rather than spending time and Hoover Commission, and the 1983 NPR officials called "reinvention political energy trying to move Grace Commissionhad used the labs." It would look to the private the 'boxes." same basic formula to engineer sector for innovations, such as James R. Thompson wrote in a benchmarking tools, and adopt a reform: Declare a crisis. Bring in strong focus on customer service the experts. Study the problem for 2000 article in the American a limited time. Issue a report. a mindset rarely associated with Review of Public Administration, "More than prior executive branch bureaucracies. It would look to the Declare success. Disband: future of public administration reform initiatives, NPR is directed Few observers expected NPR to at effecting change in the 'core with advances in electronic govern- be different. NPR was different, ment and decentralized control. technologies' of agencies and hence however, right from the start in the behaviors of rank-and-file NPR's reported accomplishments because it was led by Vice President government employees."' included cutting the federal civilian Al Gore. NPR's leaders used a new The effort focused on what could workforce by 426,000 and recom- set of strategies, many of them mending to Congress about $177 be accomplished through executive inspired by successful state efforts billion in savingsof which such as the Texas Performance authority as well as by legislative action. And Vice President Gore Congress approved $136 billion. Review, Minnesota's Strive Toward 2 NPR'S MISSION: Creating a government that WOR KS BETTER, COSTS LESS, and GETS RESULT& Americans care about. Although a 1999 U.S. General embraced reinvention; others chose Accounting Office (GAO) report' largely to ignore NPR. For the concluded that these savings could most part, NPR's savings were not not be credited solely to NPR, reinvested in efforts such as new most agree that the initiative technology and training; instead, deserves a significant portion of they were spent on programs that the administration considered more the credit. politically popular. And NPR did President Bill Clinton signed 50 not achieve its goal of revamping directives and Congress passed the civil servicethe one reform more than 90 laws aimed at that would have had the greatest streamlining government opera- influence on government effective- tions. NPR also changed the ness and efficiency. relationship between the federal government and many state and Given these successes and short- local governments by implementing comings, the eight-year effort flexible performance agreements in yielded some important lessons for state and local governments that place of restrictive-grant programs.' And finallyin the case of many seek to reinvent their own public agencies and departments of agencies. Just as NPR looked to governmentNPR profoundly state reinvention initiatives for changed both the way government inspiration and cautionary tales, workers view their jobs and the way states and communities can look citizens view their government. to NPR's example for guidance on what to doand what not to It is important to say what NPR doas they seek to make their did not accomplish. It did not own governments more efficient build a strong rapport with and responsive to citizens. Congress. Results in the federal agencies were uneven: Some GETTING STARTED ensure that agencies could not Billy Hamilton is the deputy In this chapter: dump unwanted employees. NPR comptroller of Texas. He also runs Creating a reinvention team veterans, including John Kamensky the Texas Performance Review, and Building relationships with the and former Deputy Director he worked on NPR. Hamilton central budget and management Beverly Godwin, suggest that says Gore's decision to eschew agency using workers on loan from their outside experts was the right one: Reaching for low-hanging fruit agenciesand not being required "Consultants have a role, but they Starting with the high readies to pay their salariesworked to don't have intimate knowledge of Creating reinvention labs NPR's benefit. To begin with, it how the agencies work. They just Using stories and measurements meant that NPR did not have a come in with a bag of tricks and to build support try to make them fit." large operating budget that oppo- Focusing on customers nents of reinvention could seek to Learning from the private sector The original NPR staff consisted of undermine. And the notion that Creating a sense of urgency an interagency task force of 250 NPR was staffed by an elite corps Pushing for legislative support career civil servants, a few state and of volunteerssome of the local government employees who brightest in governmentgave Creating a Reinvention Team were experts on reinvention in credibility to the effort. The NPR model was straight- their own jurisdictions, and some forward. Rather than bringing in An immediate question arises about consultants. The staff was divided outside experts, Vice President Gore into teamssome focused on recruiting: How could agency and insisted on using federal workers department heads be convinced to reviewing individual federal agen- themselves, saying that the problem part with talented workers, even for cies, others focused on government was the system, not the people in it, a short time? One way, suggest the systems such as procurement and and that he trusted people in gov- NPR veterans, was to include personnel. ernment to lead the reinvention supervisors in meetings to keep Recruiting the right people was effort and fix the system. The idea them apprised of ideas coming crucial. The effort was staffed by was based in part on the success of from the reinvention effort and to volunteers from federal agencies the Texas Performance Review, remind them constantly that their who remained on their own which had produced a reported loaned employees would return to agencies' payrolls. But NPR staffers $2.4 billion in savings using the agencies full of new ideas. were chosen by NPR's leaders to suggestions from state workers.6 4 How could agency and department heads be CONVINCED TO PART WITH TALENTED WORKERS, even for a short time? It was also important that the invi- folks on the brink of retirement. additional point. He agrees that it Interns saw everything in a new was important to keep the effort tation came from the vice president. Says Hamilton, "If you can get a light and networked tirelessly. separate from OMB, but he says it's commitment from someone of equally important to maintain a A number of the people who were high enough stature, the frontline harmonious relationship with the about to leave government were workers will rally around the budget agency. "I would advise fearless. They had years of experi- flagand they know the prob- ence, they knew the problems, and governors to make sure that their lems." There is another strategic had nothing to lose by proposing budget office is supportive. They advantage. When such a reform know where money is available." change." effort is spearheaded by an elected One innovation that built strong Building Relationships,with official, says Hamilton, "agency the Central Budget and relations between NPR and OMB heads can implement needed Management Agency was the President's Management reforms and then blame it on the When states and communities Council (PMC), the creation of elected official." begin reinvention, Kamensky which was among the first NPR recommends that they keep their recommendations to be adopted by Robert Knisely, another NPR efforts separate from their tradi- the president. It brought together veteran, suggests a slight variation tional management agencies. in the formula for staffing a state high-ranking political appointees, "Management," he notes, "needs or local government reinvention designated as "chief operating offi- to create order out of chaos ... cers," from each federal department effort. Knisely suggests adding [Management needs] people who people with "different rhythms" and from selected major agencies say no." A reinvention effort, he to promote fresh discussions about for regular-discussions about suggests, "needs people who say management and reinvention 'improving the public sector. He go." In NPR's case, the initiative efforts. The head of NPR sat on suggests a mix of current employees, was independent of the federal the council, but it was chaired by retirees with long years of govern- Office of Management and Budget OMB's deputy director for ment experience, and university- (OMB), the executive branch's management. This arrangement sponsored researchers. management agency. gave OMB a stake in reinvention, Adds Pamela Johnson, former NPR and it ensured that the top leaders Bob Stone, a Pentagon veteran who deputy director: "Two groups were of the executive branch were focus- was NPR's first director, makes an invaluable to NPRinterns and ing on management reform. 5 9 Because of the importance of reinventing all of the federal government, NPR ATTEMPTED TO FOCUS ON ALL AGENCIES both internally and in the public from PMC became a critical force in planning and implementing view. For NPR, this meant the start. The vice president mandated workforce reductions making government cost less by obtained promises from coming up with recommenda- and in using balanced measures, cabinet members to MAK E harnessing information technology tions for savings that added up REINVENTION A PRIORITY to $108 billion and a plan to to create an electronic government, and coordinating the federal eliminate 252,000 federal jobs and to assign top department through attrition.' response to the Y2K computer bug.' officials to guide the project. Some cabinet members and These sizable recommendations Reaching for Low-Hanging Fruit did two things. First, they One serious problem reinventors agency heads were receptive; grabbed headlines, which helped face is skepticismfrom the others were less so. generate public attention for the public, from politicians, and from effort. Second, Texas's Billy government workers themselves. Hamilton says, the cuts were The public and politicians have necessary to build credibility seen many reform efforts come and "You can't just do a regular go with little effect. Government president obtained promises from review and cut 5 percent from each workers have outlasted many more. cabinet members to make reinven- department; you have to put some Although it took NPR nearly eight tion a priority and to assign top blood on the sidewalk and make years to achieve some of its more department officials to guide the them afraid of you," he asserts. important reforms, NPR staff project. Some cabinet members and Making government cost less was members were keenly aware that agency heads were receptive; others the achievement that allowed the they needed to build credibility reinventors the time to make were less so. Kamensky advises state quickly. As Godwin puts it, and local reinventors to start with government work better, which "Acknowledging that [reinvention] what he calls the "high readies" was the more important goal. is a long-term change is important, the leaders who are eager to but you still need short-term wins Starting with the High Readies beginand then lavish attention Because of the importance of rein- to make sure people play. on their agencies. He suggests that venting all of the federal govern- when the high readies start produc- By achieving the easily achievable, a ment, NPR attempted to focus on ing results, other agencies will be reinvention team gains momentum, all agencies from the start. The vice encouraged to become involved. 6