Reforming Government Takes More than Rhetoric
By Michael Thompson
Governor Mark Warner and Speaker William Howell openly talk about making state
government more efficient and bringing more business-like practices to the way agencies and
programs are managed. Both say they want state government to become more user-friendly and
modernized. These two powerful leaders seem to be in general agreement.
And many of Virginia’s statewide candidates for Governor and Lt. Governor in both
parties are campaigning on making government more responsive, more efficient, and less
burdensome on the taxpayers. But as some have said, political rhetoric is cheap and the real
challenge is truly changing the way government works.
I recently had the opportunity to talk with two fascinating experts on making government
more efficient. They were practical, realistic and very optimistic about the potential that faces
our government leaders right now at the federal, state and local levels.
Former Indianapolis Mayor, Stephen Goldsmith, and Director at Deloitte ResearchPublic Sector, William Eggers, have written an extremely important new book entitled,
“Governing by Network.” The publisher is the respected Brookings Institute, normally labeled a
“liberal think tank” in Washington D.C.
This easy to read book needs to be read by everyone interested in better government and
providing government services in the more efficient and effective way.
A quiet revolution is taking place inside government at all levels. That revolution is in
the way government services are provided. Government executives are moving away from
managing people inside government who directly provide services and toward coordinating
services that are provided by an array of public, private and non-profit organizations.
Government at all levels is finding that the public is better served by various agencies
more readily sharing information and tasks. The old “stove pipe” management model (managing
personnel in a top-down command system and only in your specific division without
coordination with other agencies and departments) is giving way as government looks for
providing the best outcome to those who use government services.
New computer-based management tools offer the ability to substantially change the way
government works and those tools will become more and more effective over the next few years.
The “digital revolution” is making collaboration easier between agencies and with government
grantees that provide services.
Goldsmith and Eggers call this new approach “government by network.”
What this marvelous new book focuses on is this: government is relying more and more
on outside contractors, but in a lot of cases it doesn’t yet know how to manage these “outsiders”
very well. Examples of successes and failures are peppered throughout this book.
Many talk about reforming state and local government. We want government agencies to
work together and reduce duplication. We promote the use of public-private partnerships. We
discuss using the private and non-profit sectors to more efficiently deliver services. However,
government must learn how to manage such outsourcing of previous government functions or the
result will be far less than what we hope. And failures will produce pressure to “go back” to the
old way of government and that would be a real long-term disservice to the people who rely on
government services.
Those of us who want to see government reform the way it works need to read this new
book and read it carefully. It is a guide to making government better. And it carries with it a
caution sign that says: be careful and don’t just think that by turning a service over to the private
or non-profit sector that the result will automatically be better.
The management of these outsourced contracts takes expertise. Managing people inside
government is not the same as managing several delivery systems outside government or
between government agencies. And those leaders who are faced with the changing role of
government must be willing to bring new management techniques to the table, to train and
retrain current managers and to hire new managers who have this necessary expertise.
As a “more business-like approach” to government is promoted, it is critical that those in
charge make these changes carefully. Each agency needs to identify what the public value is that
it is trying to create and thus what their policy goals are and what role that agency plays in
reaching those goals. A careful design of the network of providers is critical to determine how it
is managed and how the flow of information is to be established. Modern technology is the glue
that makes “governing by network” successful so up-to-date technology is key to success. A
firm accountability system needs to be established so that success and failure can be identified
and incentives introduced to the system. And finally, government employee capabilities will
need to change as this new system takes root. These changes are not easy, but the potential for
more efficient government that provides better services at less cost is the end result that will be
beneficial to everyone.
“Governing by Network” is a book that should be required reading by every leader inside
and outside of government interested in dramatic and responsible change.
(Michael Thompson is the Chairman and President of the Thomas Jefferson Institute for Public
Policy, the leading non-partisan public policy foundation in Virginia. The opinions expressed
are his and do not necessarily reflect those of the Institute or its Board of Directors. He can be
reached at info@thomasjeffersoninst.org)