Posts Tagged ‘pay for performance’

Running Business Like A Government: There’s A Lot That Government Does Right. The Private Sector Ought To Take a Few Notes

Tuesday, May 12th, 2009

bank-execs

If there is a bright side to this economic meltdown, hopefully it’s that people gain a new appreciation of what it’s like to manage government. I couldn’t help but chuckle when one of the failing bank CEO’s was brought before Congress and asked what he did with the multi-billions of taxpayers dollars his company had received. He seemed genuinely outraged that anyone would dare ask how the money was used.

The CEO’s outrage turned to indignation when one of the congressmen had the nerve to ask the dreaded “but-for” question. The congressman simply asked, “Could you please tell us how many more loans you have made since you got this money?” To which the CEO exclaimed that it was impossible to keep track of funds separately and that no one could possibly separate these dollars and show the direct impact those specific dollars achieved.

Really? Because that’s what we do in government every day. I remember a colleague of mine who had to fill out four different time sheets every month because his time was split across four separate programs and grants, each of which demanded full accountability for time, money and results. What the bank CEO said was impossible is actually business as usual in government. So rather than giving you advice on how you can help improve government, I thought we would take some time to gloat and perhaps reflect on what we do really well.

Here’s what government can teach businesses about their operations: (more…)

Change The Lens: An Open Letter to Barack Obama (And All Government Leaders) On The Best Way To Improve Government

Tuesday, May 12th, 2009

obama

This year’s election season generated a lot of enthusiasm from all sides. The record-breaking voter registrations and the long lines at the polls are positive signs of an active democracy. The pundits are saying this election will drive renewed interest in public service the likes we haven’t seen since the 1960s. I hope that is true. The work of government is noble, necessary and too often thankless. But we can’t renew interest in public service until we reform the perception of public servants.

 

Government employees have been an easy target for far too long. Imagine how well a company would perform if the employees were continually berated by the investors, the board of directors and the customers. Imagine how inspired you would be if you were told that your life’s work was “the problem” instead of the solution. While you alone can’t change the attitude of taxpayers and elected officials, you can at least assure the employees that the CEO is supportive of them and their important mission.

Over the next four years, people will be approaching you with any number of initiatives to improve government. Many of these initiatives will be directed at improving the performance of the people of government. On the surface, they may sound well-meaning, but I challenge you to search your heart and ask what assumptions these initiatives make about people. Through what lens do they view the work of government? Are they assuming government employees are looking to avoid work and responsibility? Are they assuming that government employees are motivated by money? Do they assume that the customers of government are all out to cheat the system?

As you embark on your new administration, I challenge you to change the lens. To start with a fresh perspective. To see government employees as they truly are — hard working, creative, mission-driven, passionate people who want to make a difference in the world.

With that perspective in mind, what can you do to radically improve the performance of government? (more…)

Profit Sharing in Government: Motivate Your Employees By Giving Them a Stake in Your Success. Just Don’t Try to Do it With Money

Tuesday, May 12th, 2009

helping-handsLast month I wrote an apparently controversial column called “Greed is Good.” (Thanks for all the “fan mail.”) In it, I tried to make the point that government does exist to make a profit; it’s just not measured in dollars. Profit is the outcome or result measure for the private sector. To say in government that we are not here to achieve a profit is akin to saying we are not here to achieve results. Try opening with that one at your next appropriations hearing.

For government, profit is measured in far more important things like quality of life, a clean environment, healthy kids and a vibrant economy. The point of my previous column was that we should be as focused on delivering these results to taxpayers as the private sector is on delivering profits to investors. Once we recognize we are here to achieve a “profit,” we’ll be better able to communicate our value to investors, develop innovative alternatives to achieve more profit — and finally, share our profits with employees.

How could we make profit-sharing work in government?

Let me start with how not to do it. The typical way we have interpreted profit-sharing in government is to give monetary rewards to employees. Borrowing ideas from the private sector, we have tried numerous ways to incentivize employees with money — a merit increase, a pay-for-performance-scheme, a “keep part of the savings” incentive, rewards for offering ideas. These programs have had limited success for a couple of key reasons. First, they are expensive and rarely survive a budget crisis. Second, they are built on some pretty strong assumptions: Namely, that you can motivate people, and that you can motivate them with money. (more…)