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SAM
T. HARPER Inefficiencies and Ineffectiveness are Inevitable in Government Programs-- They're Implemented by Bureaucracies July 15, 2003 |
I began writing in the last edition www.rightturns.com (see
Archives) on the research that says government bureaucracies will
NEVER grow into efficiency and effectiveness. Looking at the
other side of the issue, it is empirically supported that the
bureaucracies will actually become more inefficient and more
ineffective over time. This is not just conservative thought
based on gut feel, but on some little known research from back in
the 1970's and 1980's when government was expanding as fast as in
the FDR heydays.
The research I refer to is summarized in the article "The
Limits to Complexity: Are Bureaucracies Becoming Unmanageable?"
from the December 1977, The Futurist. The authors of the article,
Duane Elgin and Robert A. Bushnell (E&B), were commissioned
by the Center for the Study of Social Policy, a division of SRI,
Inc., Menlo Park, California. Duane Elgin does not agree with the
inevitable failure argument I make (I have never communicated
with Robert Bushnell), but they both do say, "The power (i.e.,
using updated technology and management structures) to create
large, complex social bureaucracies does not automatically confer
the ability to control them." Politically, I believe their
statement is too soft. Last edition I described (from the
research) eight of the sixteen key characteristics of why
government bureaucracies will undermine representative government.
(If that does not ring a bell to you, please go into the archives
and review them. It will make the rest of this article more
sensible.)
Now let's look at the last eight characteristics of the threat to
our way of life as described in the article:
9. As bureaucracies grow, simple solutions only create more
problems. Government agencies are created to "solve"
problems. The problem is that as bureaucracies grow the solutions
have to become more complex. Simple solutions do not work. This
in turn creates more alienation and more unsatisfied citizens.
10. "The passion for size, reach, and growth is the soul of
all bureaucracies." This tendency will force the bureaucracy
to seek an enduring, predictable form and then threaten any
creative structure focused on providing better "solutions"
with destruction. E&B describes creative management in
bureaucracies as swimming in progressively hardening concrete.
11. The effect of failures becomes greater. As any agency grows
and solidifies its structure to provide a few complex solutions,
the number of "bad" decisions grows (see #9 above). The
impact of a bad decision is much greater because of the size and
reach of the bureaucracy.
12. The diversity of innovation will tend to decline. As
mentioned above, the bureaucracy will tend toward a rigid
structure. This rigidity does not allow innovation because it
threatens its very existence.
13. The legitimacy of leadership declines. The power to manage
comes from the consent of the employees. As the bureaucracy
grows, managing it becomes more and more impossible, due to size
and complexity. Poor agency performance is inevitable, so the
managers become the focus for the reasons for poor performance.
Employees lose confidence in poor performing leadership and grow
more disillusioned and more detached from the goals of the
organization. (I see this in my management consulting work in for
profit companies!)
14. Bureaucracies become very sensitive to slight disruptions. We
saw this in the September 11 attacks. Only nine hijackers changed
the course of history and caused global confrontations.
15. The performance of the bureaucracy will decline. We have
already addressed this in previous points. What also happens is
that the decline accelerates over time. Consider the continuing
deterioration and ineffectiveness of public housing. We have
known since the 1950's that public housing does not work. It does
not work even worse now 50 years later.
16. The declining performance is not recognized. Go back to the
public housing example in #15 above. Despite the failure of
public housing the bureaucrats have ignored it and even learned
to perpetuate it.
E&B explain that these sixteen characteristics all fit
through the common thread of a four-stage life cycle of
bureaucracies.
Stage 1: The bureaucracy is created and grows through excitement
and creativity.
Stage 2: The bureaucracy becomes more complex, yet still appears
to be effective and efficient.
Stage 3: The bureaucracy becomes too complex to understand;
alienation sets in; and skepticism in its effectiveness grows.
Stage 4: The bureaucracy goes through crisis after crisis;
becomes out of touch with constituents; and nothing seems to work.
Re-read the four stages and substitute "The Department of
Homeland Security" for "bureaucracy". I am willing
"to bet the farm" that we are witnessing Stage 1 in The
Department of Homeland Security. Why our conservative leadership
set us up for this inevitable failure is a question to be
answered.
I believe that "solutions" can be legislated that will
give our society a better chance at problem solving than the
inevitable failure of bureaucracies. They entail giving each
citizen the authority and power to devise the solutions to his
own individual problems. That will be the topic for a future
article.
Sam T. Harper graduated cum laude from Vanderbilt University. Following a tour in the US Navy and a stint as Operations Manager at Roadway Express, he earned his MBA from Stanford University Graduate School of Business. He was a contributor to In Search of Excellence, the best selling business book of all time. Sam was also Manager, Economic Planning & Analysis at Sohio Petroleum, Partner and Chief Financial Officer at investment-banking firm Bridgemere Capital, and Chief Operating Officer of the Institute for Contemporary Studies, a San Francisco Bay Area-based think tank and international publishing firm that specializes in self-governing and entrepreneurial public policy. Sam was a chairman of the San Francisco Republican party and the GOP co-host of California Political Review on KALW-FM in San Francisco. Sam is currently the co-owner of the Tennessee based Institute for Local Effectiveness Training, LLC a management consulting, training, and coaching firm.