Go Back to Basics

ports coaches often tell their teams: "When things go wrong, go back to the basics." In this case, it's the right prescription for Jeremy Slater. In the rush to be "more like the private sector" and save resources, the basic element of government's responsibility to the taxpaying public is sometimes left on the sidelines. Here, the "fever" to privatize overcame the core requirements of maintaining responsibility for "inherently governmental" matters and oversight of work whether performed by private or public personnel.

Pressures to reduce staff and transfer work to the private sector are immense. And in many cases, privatization is the right answer. But no privatization process should move forward without a thorough review of the work being privatized and a clear decision reached that the work is not inherently governmental. Only through such a focused review can an administrator decide that the basic governmental functions under his or her authority are not jeopardized by the decision to privatize. In Jeremy's case, such an analysis might have foreseen the problems of auctioneers stepping into a role that is clearly a government function (authorizing and executing sales).

The construction of a "most efficient organization" (MEO) is another critical basic step in the privatization decision. The MEO is a model of the best possible method for doing work at the least cost. Only through a critical analysis of present and future operations can an administrator tell whether there will ultimately be true savings to the taxpayer. The MEO is a method for testing cost projections against current known costs. It also provides a means for the administrator to engage staff in reengineering their work to better suit present and future requirements. This basic step in the process provides the foundation on which either privatized or public work is organized in the future.

Lastly, Jeremy's hot pursuit of privatization led him to overlook the critical issue of contract oversight. Even in the most simple privatization initiative the execution of the contract must be carefully monitored and evaluated. Privatization does not mean abandonment. The work being done is still the work of the government and should not be left unmonitored. Government administrators continue to be answerable to the taxpayer for the work being done, its fairness and objectivity and the most efficient use of the taxpayer's resources.

Overall, the message to Jeremy and to all administrators is to stick to the basics. Follow the process outlined in OMB's Circular A-76, be scrupulous in requiring honest analyses of savings and costs, and create opportunities for staff to engage in the question of privatization. Most important, never lose sight of the fact that this is the government's work and you are the responsible public manager.

Ray Woolner, national president of the Professional Managers Association, has conducted a major A-76 study for a large agency. PMA is an association of federal managers and management officials chartered to represent the interests of its members with agencies, the Congress and the administration.