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(Fwd) Re: Analysis Paralysis - Gov't vs. Private rules

  • 1.  (Fwd) Re: Analysis Paralysis - Gov't vs. Private rules

    Posted 02-20-2000 12:04
    Hope this makes it to digest. First forwarding failed.

    JPO

    ------- Forwarded Message Follows -------
    From: Self <Single-user mode>
    To: Wendy L Corfield <Wendy.L.Corfield@MAINROADS.QLD.GOV.AU>
    Subject: Re: Analysis Paralysis - long post
    Reply-to: johno@cameron.edu
    Date: Thu, 17 Feb 2000 11:50:26 -0600

    Dear Ms. Corfield,

    Your letter reminded me of one of those stellar quotes that I
    encountered a couple of years ago. Unfortunately, I didn't clip it
    out and save it.

    It was attributed to an ancient Roman (?) general, and the jist of it
    was:
    "We never really solve problems, we just reorganize."
    ---------------------------------------------------------------------
    The problem involves the differences between public-sector and
    private business organizations, the realities of political
    environments, and the need to sort out the good from the bad of
    bureaucracies.

    My musings on this come from the experiences of my first two
    career tracks in life: military (regular and later reserve), then
    newspaper journalist // and the studies and limited experiences of my
    third: college professor. (And hopefully last track).
    ------------------------------------------------------------------
    Private vs. Public Sector

    Private business operates under the profit model, generally involving
    a buyer and a seller involved in a voluntary relationship.

    Public-sector organizations operate under the public goods model
    (maximize the benefits to be derived from Org. X's public goods).
    The recipient and deliverer of these goods are often involved in an
    INVOLUNTARY relationship, mandated by law.

    The "public goods'' concept appears to have little salience in
    the mind of the average US citizen. Hence, many US citizens are
    reluctant to embrace, for example, municipal public transportation -
    because it doesn't "pay for itself." They then fail to realize that
    the private automobile proliferation doesn't "pay its own freight"
    either - it is subsidized by highway construction funds paid for with
    tax dollars.

    Also, the US citizen needs to pay more attention to the roadways. A
    lot of the infrastructure build during the 1950s interstate highway
    system boom is now breaking down, and needs to be replaced.

    In Western Europe, the "public goods" concept is more talked about
    due to the prominence of the social democrat political philosophy
    (whether they're in power or not). I'm not sure how much the
    British and Australians think about it.


    Political Realities

    Public organizations theoretically exist to maximize the benefits of
    public goods for use in their particular area. Private-sector
    organizations, conversely, are governed by the profit motive. But,
    the average US citizen - and I suspect many other nation's citizens -
    fail to realize this.

    Thus, economic pressures control poorly performing private-sector
    firms (they go broke), whereas political pressures control
    public-sector firms. Your basic public-sector organizations, such as
    police and road departments, have a rather rigid hierarchy. This is
    in part a defense against the political pressures for the public
    sector org to somehow "turn a profit", which according to my theory
    is an impossibility. But, the debate on maximizing benefits (what?)
    to the citizens (which ones) is a valid one, and can get heated.

    The bureaucracy and its procedures are designed in part to create the
    trappings legitimacy in terms of stewardship of the public goods.
    More coherently put, is there systematic "due process" in how
    decisions are made in using these goods.

    Also, how do we decide which members of society deserve access to the
    benefits of Org. X's public goods? (The political economists and
    conflict management people call this area "distributive justice." I
    only done a little reading in this area myself, although it is
    interesting). ****************


    Bureaucracy to the Rescue

    So, bureaucracy gives orderly (and hopefully reasonably efficient)
    process to govern our public goods/benefits system. Bureaucracy came
    originally as a response to the evils/inefficiencies of nepotism and
    cronyism as ways to run organizations. As mentioned in your letter,
    bureaucracy was supposed to be, in part, a meritocracy where the
    employees would be trained in the system, and the best performers
    promoted.

    But, "performance" becomes a touchy term in the public sector, in
    part because of the difficulties of determining this in a non-profit
    motive arena. (I'm leaving this thought underdeveloped... sorry).

    In bureaucracies, true reform and improvement takes place usually
    within given departments. Rarely does major reform take place
    bureaucracy-wide. Part of the problem comes from what the Marines
    call the "Crisis of the Month", similarly known in the Air Force as
    the "Deal of the Week." People endure, year after year, a flood of
    half-baked initiatives which are supposed to solve problems, but
    never really do.

    Some organizational researchers tout Empowerment as a way to achieve
    major change. It involves top management support to really
    restructure the organization. Even if everyone has true "buy in" to
    empowerment, it often takes 5 to 7 years to really make the cultural
    leap to the new system.

    ------------------------------------

    So, (ASSUMING YOU HAVEN'T FALLEN ASLEEP YET)
    read up on Empowerment and Distributive Justice, and you should come
    upon a few public-sector success stories. Public sector success
    really does happen - it's just that many journalists ignore it while
    looking for stories on embezzling department heads going to prison.

    JPO












    --------------------------
    John P. Orr, Ph.D. (Management)
    Dept. of Business, Rm. 314
    Cameron University
    2800 W. Gore Blvd.
    Lawton, OK 73505
    Phone: 580-581-2367