Beyond Bureaucracy:Beyond Bureaucracy:Transforming Our Approaches

to HomelessnessTransforming Our Approaches

to Homelessness

David OsborneDavid Osborne

to Homelessness to Homelessness

David OsborneThe Public Strategies

G

David OsborneThe Public Strategies

GGroupDavid@psg.us

GroupDavid@psg.uswww.psg.us.978 768 3244www.psg.us.978 768 3244

The Coming Federal Train Wreck

The Coming Federal Train Wreck

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Train WreckTrain Wreck

The Coming Federal Train Wreck

The Coming Federal Train Wreck

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Train WreckTrain Wreck

The Coming Federal Train Wreck

The Coming Federal Train Wreck

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Train WreckTrain Wreck

The Coming Federal Train Wreck

The Coming Federal Train Wreck

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Train WreckTrain Wreck

The Coming Federal Train Wreck

The Coming Federal Train Wreck

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Medicaid, Medicare, Social Security, and Interest as a Percentage of GDP

Train WreckTrain Wreck

2009 Congressional Budget Offi R

2009 Congressional Budget Offi ROffice ReportOffice Report

40

30

35Plus Plus

Interest on Interest on DebtDebt

20

25

Federal RevenueFederal Revenue

Plus Plus Medicaid & Medicaid & MedicareMedicare

10

15

5

10

Social SecuritySocial Security0

Source: Congressional Budget Office, The Long-Term Budget Outlook, 2009.

GAO 2009 Report: The Federal Government’s Long-Term Fiscal Outlook

GAO 2009 Report: The Federal Government’s Long-Term Fiscal Outlook g

(Most Realistic Scenario)g

(Most Realistic Scenario)35.00

30.00

Plus Plus InterestInterest

20.00

25.00

Federal RevenueFederal Revenue

Interest Interest on Debton Debt

10.00

15.00

Federal RevenueFederal Revenue

Plus Medicare Plus Medicare & Medicaid& Medicaid

0 00

5.00

Social SecuritySocial Security

0.002009 2019 2030 2040

Source: GAO’s Fall 2009 analysis based on the Trustee’s assumptions for Social Security and Medicare.

The Fiscal Crisis is The Fiscal Crisis is PermanentPermanent

A “perfect storm” – the convergence of inexorable cost drivers:inexorable cost drivers:

• 10% annual increase in health care costs.

• Pension (and Social Security) obligations as population ages.

The DNA of Public Systems The DNA of Public Systems and Organizationsand Organizations

• Purpose

• Incentives

• Accountability

• Power• Power

• Culture

Five Strategies to Reinvent Five Strategies to Reinvent Bureaucratic GovernmentBureaucratic Government

• Core

• Consequences

• Customer• Customer

• Control

• Culture

I: THE CORE STRATEGY:I: THE CORE STRATEGY:

Clarity of Direction, Purpose, & RoleClarity of Direction, Purpose, & Role

Approaches:

• Clarity of direction: Improving your aim

• Clarity of purpose: Clearing the decksy p p g

• Clarity of role: Uncoupling steering and rowing

Budgeting for OutcomesBudgeting for OutcomesBudgeting for OutcomesBudgeting for OutcomesStates Cities

• Washington• Iowa• South Carolina

• Azusa, CA• Los Angeles• Spokane WA• South Carolina

• Michigan• Louisiana Dept. of Culture,

Recreation & Tourism

• Spokane, WA• Dallas, TX• Ft. Collins, CO• Northglenn CO

Counties• Snohomish, WA.

M lt h O

• Northglenn, CO• Redmond, WA• Eugene, OR• Savannah Georgia• Multnomah, Oregon

• Mesa County, CO• Polk County, FL

C i AZ

• Savannah, Georgia• Baltimore, MD

School Districts• Cococino, AZ• Larimer, CO

• Jefferson County, CO• Billings, MT

Results Not ActivitiesResults Not ActivitiesResults, Not ActivitiesResults, Not Activities

Move Focus From Here…

…to Here!

Inputs Activities Outputs OutcomesResults

SeparatingSeparatinggSteering and Rowing

gSteering and Rowing

• To Govern = To Steer

• Rowing = Providing services & enforcing compliance with rules

• Steering = Providing direction, setting policy, and catalyzing public and private action toand catalyzing public and private action to solve problems and meet public needs

Advantages of Steering over Advantages of Steering over RowingRowing

• More efficiency

M fl ibili• More flexibility

• More accountability for resultsy

• More experimentation, innovation

• More comprehensive solutions

• Better results for the moneyy

An Example: Children’s Service An Example: Children’s Service Councils in FloridaCouncils in Florida

E.g.: The Pinellas County Juvenile Welfare Board:

• Combines funding streams; controls $50 million a year

• Does no “rowing” itself

• Contracts with 60 providers: childcare centers, teen p ,centers, counseling, domestic violence shelters, residential treatment services, after-school activities…

• Uses performance contracts

• Providers compete; best ones expand, worst lose fundingfunding

II: THE CONSEQUENCES II: THE CONSEQUENCES STRATEGY:

Using Incentives to CreateSTRATEGY:

Using Incentives to CreateUsing Incentives to Create Consequences

Using Incentives to Create Consequences

Approaches:

• Managed competition• Managed competition

• Enterprise, or “entrepreneurial” management

• Performance management

Performance Management: Performance Management: Keys to SuccessKeys to Success

• Written performance agreements that lay out results expectedresults expected

• Direct, immediate, personal feedback on fperformance

• Meaningful rewards and consequences based• Meaningful rewards and consequences, based largely on objective measures of performance, not subjective evaluations

III: THE CUSTOMERIII: THE CUSTOMERSTRATEGY:

Putting the Customer in the Driver’sSTRATEGY:

Putting the Customer in the Driver’sPutting the Customer in the Driver s Seat

Putting the Customer in the Driver s Seat

Approaches:

• Customer choice• Customer choice

• Competitive choice

• Customer quality assurance

Customer Service Customer Service Standards: ExamplesStandards: Examples

• Bromley (London borough): Will repair paving problems within 2 hours of notice.p

• Minneapolis Public Schools: Any order of supplies will be delivered within 48 hours (down from 6 weeks)will be delivered within 48 hours (down from 6 weeks)

• Social Security Administration: 90% of calls to 800 number will be answered on the first call; 95% will benumber will be answered on the first call; 95% will be answered within 5 minutes.

Examples of Redress:Examples of Redress:Examples of Redress:Examples of Redress:

• If we fail to process your development permit within 60 days, we will refund the fee (Massachusetts)

• If a bus is late to school, the school gets a free bus for a field trip (Minneapolis School District)for a field trip (Minneapolis School District).

• If it takes more than 30 minutes to process your d i ’ li l i ’ f (I )driver’s license renewal, it’s free (Iowa).

IV: THE CONTROL STRATEGY:IV: THE CONTROL STRATEGY:IV: THE CONTROL STRATEGY:Shifting Control Away from the Top and

C

IV: THE CONTROL STRATEGY:Shifting Control Away from the Top and

CCenterCenter

Approaches:

O i ti l t• Organizational empowerment

• Employee empowermentEmployee empowerment

• Community empowerment

B ti BB ti BBusting BureaucracyBusting Bureaucracy

• “We can defy gravity, but the paperwork is overwhelming.”

Werner Von Braun

Decentralizing Decision Decentralizing Decision gMaking

gMaking

• HUD has pledged to do this—hold them to it!

• Do the same in your own community.

• The best operational (as opposed to strategic) decisions are usually made by the

l l t t th it tipeople closest to the situation.

Culture ChangeCulture Changegg

The other four strategies will change theThe other four strategies will change the culture.

But it never happens fast enough, so youBut it never happens fast enough, so you need to work on it directly--to change peoples’ unconscious paradigms.

• It’s not easy

• It happens slowly one by one• It happens slowly, one by one

• It’s retail work

Mantras of theMantras of theBureaucratic CultureBureaucratic Culture

♦ It’s not my job.

Th t’ b d♦ That’s above my pay grade.

♦ I’m only following the rules.

♦ It’s their fault; I’m a victim here.

♦ Stay low; go slow.

V: THE CULTURE STRATEGY:V: THE CULTURE STRATEGY:Changing Habits, Hearts, and MindsChanging Habits, Hearts, and Minds

Ch i h bit C ti

Approaches:Approaches:

• Changing habits: Creating new experiences

• Touching hearts: Developing a new covenant

• Winning minds: Developing new mental models

How do you changeHow do you changeHow do you change How do you change habitshabits??

WITH NEW EXPERIENCESWITH NEW EXPERIENCES

Ch i H bitCh i H bitChanging HabitsChanging HabitsTools:Tools:

• Meeting the customers

Tools:Tools:

• Walking in the customer’s shoes

• Job rotation• Job rotation

• Internships & externships

T hi H tT hi H tTouching HeartsTouching Hearts

Tools:Tools:

• Celebrating success

• Honoring failure• Honoring failure

• New rituals, symbols, stories, y ,

Winning MindsWinning MindsWinning MindsWinning Minds

Tools:Tools:•• Benchmarking performance

Tools:Tools:

• Learning groups and site visits

• Real-time, Large-scale Strategic Planning

Over Time, You Need All Over Time, You Need All Five StrategiesFive Strategies

• Core

• Consequences

• Customer• Customer

• Control

• CultureC C C C C T f tiC x C x C x C x C = Transformation

Leading and Managing Leading and Managing ChangeChange

• You need to lead—at every level.

• You need a strategic blueprint—a roadmap.

• You need to manage the change process.g g p

• You need to invest (in training, team-building, technology, consulting, facilitation, etc.).technology, consulting, facilitation, etc.).

• You need communication and political strategies.

Fear of ChangeFear of ChangeFear of ChangeFear of Change• Fear of failure/ridicule/bad press

• Fear of loss of control

• Fear of losing your job

• Fear of co workers or allies reaction• Fear of co-workers or allies reaction

• Fear of hurting clients/customers

• Fear of risk-taking

• Fear of the unknown

Overcoming Fear (1)Overcoming Fear (1)Overcoming Fear (1)Overcoming Fear (1)• Naming it• Naming it

• Embracing the fears

• Removing the issue

• Helping people admit problems of status quo

• Painting a vision of the future: turning thePainting a vision of the future: turning the unknown into the known

• Involving people in planning

Overcoming Fear (2)Overcoming Fear (2)Overcoming Fear (2)Overcoming Fear (2)

• Risk-sharing partners

Creating new rewards• Creating new rewards

• Pilot Projects

• Site visits

MistrustMistrustMistrustMistrust

• Nonprofits vs Cities vs HUD• Nonprofits vs. Cities vs. HUD

• Labor vs. Management

• Managers vs. Elected Officials

Citi G t & P liti i• Citizens vs. Government & Politicians

• Business vs. Government

• Democrats vs. Republicans

Overcoming MistrustOvercoming Mistrustgg

• Information; the more the better

• Constant communicationConstant communication

• Listening is critical!

• Earning trust, promoting real honesty

• Putting yourself in others’ shoesg y

• Equal partnerships

B di t• Bonding events