The Best Kept

Secrets

In Governmen

VICE PRESIDENT AL GOR

National Performance Review, September 
The Best Kept

Secrets

In Government

A Report to President Bill Clinto

VICE PRESIDENT AL GORE

National Performance Review, September 19
ACKNOWLEDGMENTS

Putting this little book together is a big job. A flood of facts and narr

in from all over government, all around the country. Inspiration and s

that into something that we hope is readable and interesting enough to 

justice to the reinvention story itself.

Research, data tables, and drafts came from the NPR staff and reinve

ing on the report in dozens of federal agencies. I am grateful to all.

The greatest debt of all is due the thousands of federal employees, sta

officials, private citizens, businesses, non-profits, and other organizatio

changing how government works. Day in and day out, with marvelou

they are finding new ways to do things that make government work bet

less. They are redefining public service, giving us all a reason for optim

ii
CONTENTS

Introduction..........................................................................................

Reinvention Highlights ......................................................................

Secret One: Common Sense Has Come to the Federal Government 

Procurement Reform ........................................................................

Management Systems and Structure..................................................

Reinvention Labs ..............................................................................

Personnel Reform..............................................................................

Common Sense Job Applications ..................................................

Less Red Tape................................................................................

Labor-Management Partnerships ..................................................

Family-friendly Workplaces ..........................................................

Performance Appraisals..................................................................

New Civil Service Legislation ........................................................

Reinforcing Success: The Hammer Award ........................................

Franchise Funds ................................................................................

Our Secret Weapon ..........................................................................

Secret Two: Government Is Serving People Better ............................

President Clinton’s Marching Orders ................................................

Who Is the Customer? ......................................................................

Ask Customers What They Want ......................................................

Setting Standards ..............................................................................

The Convenience of the Customer....................................................

Phones ..............................................................................................

Number, Please ................................................................................

Computers........................................................................................

Just A Little Common Sense ............................................................

Training ............................................................................................

Secret Three: Government Is In Partnership With Business............

Forming Partnerships ........................................................................

The Environment ............................................................................

Medicine ..........................................................................................

Worker Safety ..................................................................................

Pensions............................................................................................

Health Care ......................................................................................

iii
Meat and Poultry ..............................................................................

Consumer Products ..........................................................................

Drug Interdiction..............................................................................

Helping our Partners ........................................................................

Who’s the Enemy? ............................................................................

Secret Four: Government Is Partnering With Communities ............

Cities, Counties, States—Partners ....................................................

The Oregon Option..........................................................................

Performance Partnerships ..................................................................

The Environment ............................................................................

Connecticut Neighborhood Revitalization Partnership......................

Addressing Unfunded Mandates........................................................

Welfare and Health Care Reform ......................................................

Fighting Crime ................................................................................

Education ........................................................................................

Conclusion..........................................................................................

Notes ..................................................................................................

Appendices

A: Status of Reinvention Efforts in Departments and Major Agencies 

Department of Agriculture by Secretary Dan Glickman ..........

Department of Commerce by Secretary Mickey Kantor ..........

Department of Defense by Secretary William J. Perry..............

Department of Education by Secretary Richard W. Riley ........

Department of Energy by Secretary Hazel R. O’Leary ............

Environmental Protection Agency ..........................................

by Administrator Carol M. Browner

Federal Emergency Management Agency ................................

by Director James Lee Witt

General Services Administration ..............................................

by Acting Administrator David Barram

Department of Health and Human Services ............................

by Secretary Donna E. Shalala

iv
Department of Housing and Urban Development .................

by Secretary Henry Cisneros

The Intelligence Community .................................................

by Director of Central Intelligence John Deutch

Department of the Interior by Secretary Bruce Babbitt ...........

Department of Justice by Attorney General Janet Reno .........

Department of Labor by Secretary Robert Reich.....................

National Aeronautics and Space Administration ......................

by Administrator Daniel S. Goldin

National Science Foundation by Director Neal Lane...............

Office of Personnel Management by Director James B. King .

Small Business Administration by Administrator Philip Lader 

Social Security Administration by Commissioner Shirley S. Ch

Department of State by Secretary Warren Christopher ...........

Department of Transportation by Secretary Federico Peña .....

Department of the Treasury by Secretary Robert Rubin .........

U.S. Agency for International Development ............................

by Administrator J. Brian Atwood

United States Information Agency by Director Joseph Duffey.

Department of Veterans Affairs by Secretary Jesse Brown .......

B: Status of Major Recommendations Affecting Governmental Syste

C: Summary of Savings to Date .......................................................

D:Status of Regulatory Reform Initiatives .......................................

E: Presidential and Congressional Actions Taken to Date.................

F: Progress in Downsizing the Federal Government .........................

G: Contractors Are Not Replacing Departing Federal Workers.........

H:Progress in Streamlining Management Control Positions.............

I: List of Hammer Awards as of August 1, 1996 .............................

Additional Resources.........................................................................

Index .................................................................................................

v
INTRODUCTION

“The era of big government is over.”

— Bill Clinton, 1996 State of the Union Address

When President Clinton said the era of big government is over, he 

making a promise, he was reporting on his progress. The Cl

Administration has made the federal government smaller by nearly a 

million jobs.1 This is the largest, swiftest government-wide cut in the h

United States. It’s not just a post-Cold War defense reduction; every 

except Justice has become smaller. (See Figure 1.)

The federal government workforce is now the smallest it has been in 

30 years, going all the way back to the Kennedy Administration.2 Th

long overdue. People had long since grown tired of new government p

tiated each year, with none ever ending. They were tired of stories abo

sounding government jobs, like the Official Tea-Taster, tired of large

bureaucracies in Washington interfering more and more with their live

presidential candidates have been promising to make government small

Bill Clinton, none delivered.

The workforce cuts are saving lots of money. For fiscal year 1996, the 

ernment worker costs more than $44,000 a year, not including office sp

plies.3 Cutting a quarter million jobs, therefore, can save well over $10 b

ally. But that’s not the half of it. The savings from all the common sense 

have put in place total $118 billion.* Put that together with the ben

healthy economy, and you’ll see that the Clinton-Gore Administration h

with another one for the record books: four straight years of deficit cu

pendous total reduction of $476 billion.4 (See Figure 2.)

Even though big cuts in government were long overdue, and even tho

a crucial step in getting the country out of the red, there is a right way a

way to cut government. The right way is to show some consideration for 

1

* This total savings figure is derived from three sources. First, $73.4 billion in savings from 

ommendations in the original 1993 NPR report have been realized. Second, another $24 billio

been locked in from additional recommendations in NPR’s 1995 report. And third, more than 

savings is attributable to agency reinvention initiatives beyond the specific recommendations 

For example, the Federal Communications Commission realized $20.3 billion by auctioning w

licenses, and the General Services Administration’s time out and review of federal constructio

more than $1.2 billion. Other savings from reengineering travel and other administrative pr

been quantified, but they have saved tens of millions of dollars. In addition, another $5.2 bil

contained in legislation currently pending before Congress. Appendix C provides additional d
It is wrong just to hand out the pink slips and let government employ

themselves—workers who have devoted their careers to public service an

families to support.

We’ve made the cuts the right way, with layoffs as a last resort. First

down hiring. The government used to hire well over 100,000 people ea

to replace those who retired or quit. We brought hiring down to fewer 

a year.5 We did not stop hiring altogether because many government j

air traffic controllers, simply must be filled.

Next, we encouraged our current employees to retire or quit by of

buyout payments. The offers ranged from a few thousand dollars up 

depending on the workers’ salaries and how long they had worked. It 

deal for the employees and for the taxpayers. Even at $25,000, a buyo

than the paperwork and severance pay that goes with a layoff.6 Nea

workers took buyouts.7

By slowing down hiring and speeding up retirements, we’ve managed 

offs to a small proportion of the workforce that left federal service.8 We 

those who have been laid off to find jobs with private companies. It’s 

we’re trying. It’s all part of making cuts the right way.

2

Office of Personnel Management

General Services Administration

Agency for International Development

Small Business Administration

Defense (Civilian)

Federal Emergency Management Agency

National Aeronautics and Space Administration

Agriculture

Housing and Urban Development

Interior

U.S. Information Agency

Labor

Government wide Average

Transportation

Energy

Treasury

Commerce

State

Health and Human Serv./ Social Security

All other

Environmental Protection Agency

Education

Veterans Affairs

National Science Foundation 

Justice

+10 +5 0 -5 -10 -15 -20 -25 -30 

January 1993-January 1996 (in percentage

Percentage

Source: Office of Personnel Management, Monthly Report of Federal Civilian Employmen
Another part of cutting government the right way is to be selective 

just the parts we don’t need any more—not the parts we do need. It’s w

activities and services that most people depend on—things like ensur

food and water are safe, that our neighborhoods are free from drugs and 

tax refunds and social security payments arrive on time. Our plan is u

eliminate jobs we no longer need: jobs in bloated headquarters, exc

management, and offices that churn out arcane rules, like the rules tha

government procurement so costly and ridiculous. So far, the personne

have occurred pretty much across the board, because we were trying t

offs. We’ll have to retrain and reassign some people to get them into th

A lot of the credit for cutting goes to the very federal workers who

at stake. For example, it was a procurement specialist, Michellee Edwar

gested that we change the law to make small purchases so simple that w

need a procurement specialist. Those small purchases used to generate 

of the work in a typical procurement office.9 Michellee says, “I don’t th

ernment employees would cling to senseless work just to protect their 

tainly wouldn’t. For me, it’s more important to keep in mind the bigger 

promote change where it makes sense. We’re all taxpayers too, you kno

3

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

$150,000

SOURCE: Historical Tables: Budget of the United States; fiscal years

 1997-2001 are estimates.

$-50

$50

$100

$150

$200

$250

$300

$0

Dollars in Billions

1980-2001

Source: Historical Tables: Budget of the United States; fiscal years

1997-2001 are estimates.
Why else would teams of personnel specialists have worked so hard 

10,000 page Federal Personnel Manual and have then gone on to cut o

a typical personnel office’s day-to-day workload by letting employees u

computer kiosks? Why else would U.S. Customs Service employees ha

with the plan that eliminated an entire layer of regional Customs headq

was full of high-paying jobs? Even Washington’s regulation writers are 

16,000 pages of their own creations and removing the bureaucratic 

another 31,000 pages.10 Behind virtually every bit of our successful dow

streamlining are the ideas and the enthusiasm of federal workers. More t

they have the know-how and the desire to make government cost less. O

off to them.

A cheaper, smaller government was only half our goal. President Cl

were determined to make government work better, too. You probably 

or heard much about this part of reinvention—although we never inten

a secret—but we’ve made real progress. The government is beginning 

more results and less red tape. I’ll be the first to say that there is still ple

for improvement, but Americans are beginning to see the results in the 

courteous service. Business owners and local government leaders are n

change, too, as the federal government becomes more of a partner an

adversary. President Clinton and I think it’s time everyone knows 

changes—it’s time for these secrets to get out.

No one can explain the improvements better than the people who 

receiving end. So, in the following chapters you’ll hear from a front

worker, a homemaker, a business executive, and a mayor. They’ll discu

experiences with government in the past. And, frankly, they will tell th

still some bad things going on. After all, putting common sense into go

a big job, it’s still a work in progress, and it probably always will be. Bu

viduals will talk about a change the likes of which they have never see

change very much for the better.

President Clinton and I are just as proud of making government wo

we are of making it smaller. It isn’t good enough yet, or small enough 

sure have things headed in the right direction. We are rebuilding a gove

all Americans can be proud of.

Al Gore

4
Reinvention Highlights

Your government is changing dramatically so that it makes s

and serves you better. Here’s what the Clinton-Gore Administra

is doing to deliver on promises made three years ago:

“THE ERA OF BIG GOVERNMENT IS OVER”

• Government has reduced its workforce by nearly 240,000 

as of January 1996. Thirteen of the 14 departments have

reduced the size of their workforce; the Justice Departmen

grew because of the Administration’s fight against crime 

and drugs.

• We’ve cut government the right way by eliminating what 

you don’t need—bloated headquarters, layers of managers

outdated field offices, and ridiculous red tape and rules.

• We’ve saved and improved the parts you want—

Social Security, our National Park system, and other 

agencies that protect you and your family.

• We’re closing nearly 2,000 obsolete field offices and have

already eliminated nearly 200 programs and agencies, like

the Tea-Tasters Board, the Bureau of Mines, and wool and

mohair subsidies.

WE’RE RADICALLY CHANGING GOVERNMEN

Inside the federal government, radical changes are taking plac

make it work better and cost nearly $118 billion less than it used 

• Government workers can now buy $4 staplers because we

cut out the red tape that ran the cost up to $54 in the pas

• We’ve negotiated better deals for services that the governm

uses a lot and saved a lot of money in the process, like $3.

for a three-pound FedEx delivery instead of $27. And as li

as 2 cents a minute for long-distance calls instead of 16 ce

a minute.

• Government workers are seeing much less of the illogical 

and bizarre rules and regulations:

• One-third of the federal workforce used to write rules f

and micromanage the other two-thirds. We’re getting ri

5
of many of those jobs and are convincing agencies to tr

their workers to use their common sense.

• We’re cutting out superfluous layers of managers. We’ve

eliminated nearly 54,000 supervisors—and a few layers

• In some cases, the Defense Department used to spend m

on getting approval for employees to travel than it did o

the travel itself. Now they’re testing new automated syste

that make sense and will save over $100 million a year.

• With new tools like the Line Item Veto and the ability to

pursue people who are seriously delinquent in their debts 

to the federal government, we’ll be able to do a better job 

of safeguarding taxpayer dollars.

WE’RE SERVING PEOPLE BETTER

President Clinton told federal agencies to make customer ser

to the public equal to the best in business. Over 200 agencies h

committed to meeting more than 3,000 standards.

• The Social Security Administration stunned the business

world last year by coming in first in an independent survey

on the country’s best 1-800 telephone service.

• We’re changing the Blue Pages in the phone book so if you

want a passport, you will look up “passport,” without havin

to know you get it from the State Department.

• Agencies are working together to provide unique services for y

• Veterans in New York can access Social Security and

Veterans Services with one-stop service;

• You can go to the “Trading Posts” that the Bureau of La

Management and the Forest Service have set up to get

maps, fishing information, and guide permits all in one

place and at times that are convenient to you.

• In Houston, small business owners can go to the U.S.

General Store to get information from federal, state, 

and local governments and even apply for loans.

• Or just stay home and do government business on the

Internet. You can do everything from signing on to the

U.S. Business Advisor to get answers to questions, 

to downloading IRS forms, or filling out a Small Busine

Administration loan form.

6
WE’RE CHANGING THE WAY WE TREAT 

BUSINESSES

President Clinton and Vice President Gore told government 

ulators to cut obsolete regulations and to start acting like partn

Agencies are eliminating 16,000 pages of regulations and dram

cally simplifying another 31,000.

• We’re doing it the right way—rewarding companies that coo

erate with us. But for those companies that don’t work with 

to ensure the public’s safety and protect our environment, w

will apply every penalty and sanction that the law allows.

• The Health Care Finance Administration eliminated the

Physician Attestation Form. This ended the filing of 11 mil

forms each year and saved doctors 200,000 hours of time.

• The Department of Agriculture dropped three million pag

of government forms.

• We’re slashing the regulatory and administrative burden o

government on citizens and businesses by nearly $28 billi

a year.

WE’RE CHANGING THE WAY WE WORK 

WITH COMMUNITIES

We’re letting states try new ways to reform health care and 

welfare so they can see what works best by focusing on results,

not red tape. President Clinton and Vice President Gore have:

• Created more than 100 federal-local partnerships to focus 

on the needs of individual communities. These partnershi

allow community residents to implement plans to solve w

they—not Washington—see as their biggest problems.

• Approved welfare demonstration projects in more than 40

states in the three years before President Clinton signed th

welfare reform bill.

• Approved 13 comprehensive Medicaid reform demonstrations in partnerships with states to expand coverage to 2.2

million low-income uninsured Americans.

• Signed agreements with two states—Connecticut and

Oregon—to pilot new ways of doing business with less 

burden, and dramatically streamlined planning and other

processes in a range of programs in other states.

7
SECRET ONE: 

COMMON SENSE HAS COME

TO THE FEDERAL GOVERNMENT

“Whatcha got, Bootsie?”

“Coke, looks like about 10 pounds, taped to his chest.”

Tommy exchanges high-fives with Bootsie, one of his undercover ro

explains how she picked the unlikely looking drug mule from among th

of incoming passengers on a flight from Colombia. (Don’t worry, we wo

her trade secrets.) A couple more of his rovers quickly team up to ch

smuggler’s records, book him, and look for any connections to other p

luggage. Within minutes, the troops are back out on the floor, worki

wave of passengers.

Tommy Roland is doing something that any TV cop would envy—r

of the most successful drug-busting operations around. Tommy su

inspection team for the U.S. Customs Service at Miami International A

proud of the rovers,” he says. “The stuff that they’re doing now is def

Customs is going. I’m thrilled to be a part of that. They use their int

creativity, their imagination on the job. It’s really beautiful to watch them

the coach of some awesome basketball team.”

But Tommy says it was not always this much fun. “In the ‘olden day

philosophy of what a Customs inspector was supposed to do and 

supposed to do it was completely different. First of all, we all wore our 

we were easy for the smugglers to spot.” Today, Tommy is working in jeans 

and wearing an earring. “We stood in our little enclosures waiting for p

come to us with their bags. We didn’t know anything about them unti

whites of their eyes. We just stood there in our uniforms waiting. A tough 

a drug war.

“We were looking for needles in haystacks—looking for that nervou

just doing ‘behavior analysis.’ Everyone who walked off a plane wa

Every suitcase was suspicious. We were unfocused and wasted a lot of t

the end of the day, we had dug through a lot of underwear and socks

found much dope. What we were exceptionally good at was infuriating th

travelers—hundreds of thousands of honest, decent American citizens 

tourists and business executives each year.” Passengers sometimes waite

over three hours. Occasionally, a fist fight would break out.

9
Passengers seldom wait more than a few minutes. This is reinvention.

Tommy says it all started with flowers. “We used to handle cargo th

we handled passengers—just stabbing in the dark. We knew dope was 

the country in boxes of flowers. So we probed flower boxes. We used the

flower probes and poked away from midnight ‘til 8:00 a.m. This was 

thing, night in and night out. Thirty thousand boxes of flowers came 

port each night, and we would probe each one once or twice. That’s a 

holes. I totally hated Mother’s Day and Valentine’s Day. Finally, we reali

was a really stupid way to look for dope—and the flower shippers didn

it either. So we sent our own inspectors to South America to look at 

aspect of the whole process.

“We went to the flower farms to see where the flowers were grown. W

how the flowers got trucked from the farm to the market, and then to th

see how they were staged to get on the plane—who put them on the 

hired the people who put them on the plane—and the same on the othe

took them off the plane and who hired these folks. Looking at the entire 

saw just how vulnerable a shipment of flowers is all along the way. Th

hit home. If we were gonna make a dent in the dope, we couldn’t do i

had to be partners with the airlines.

“Now the airlines have their own people checking the flowers. Instead 

inspectors probing flower boxes here, the boxes are x-rayed before they 

planes. The airlines have contract security people watching the x-rays. A

the watchers as a counter-deterrent. They’re not our own people 

check them, but they are our allies, not our enemies. If we had started t

probably would have saved my shoulder. All that bending over prob

wrecked my shoulder.”

Partnership with the airlines and shippers has turned out to be the ke

but according to Tommy, it did not come easy. “Tell the airlines our secr

them work together with us to find drugs? Unimaginable. Co

Immigration Service an ally? No way. Ask the skycaps for their suggesti

Back then everything was a secret and everyone was the enemy. ‘If I t

have to kill you.’ That was more like it. Basically, we didn’t trust anybo

“It wasn’t just that we didn’t trust the folks outside the system. We did

folks inside the system that much more. A perfect example was all the s

work we had to fill out. An hour or two before the end of every single shi

have to come into the office and fill out a shift report. It seemed like we 

time writing these reports detailing every single thing we did during the 

spent looking for dope. It was a real big waste of time and money. And 

feel like I couldn’t be trusted. I really hated that. But things have really 

the last few years. We got rid of a lot of wasted motion. The guys that work 

fill these out anymore. They’re paid to look for dope, not to fill out form

10
when youre looking through cargo, you might need to drill through 

what’s inside. But if I wanted to drill, I had to go to a senior inspector w

to a supervisor who would go to the chief’s office where the one drill 

locked up. Like I wasn’t responsible enough to be given the tools to do m

authority to make decisions by myself. Now, when inspectors come on bo

them their own drills. Makes sense to me.

“Even the way the agency was structured sent a loud and clear message 

There were just so many layers of bureaucracy to deal with. We used to h

offices. They were like speed bumps. The guys there had been away from 

long that you always had to slow down and explain the real world to th

rid of the regions was like a miracle.”

What Tommy attributes to a miracle was really the work of a team o

that Customs Commissioner George Weise chartered to reinvent the U

Service. They cut the size of the Washington headquarters by a third, an

nated all seven regions and 43 district offices. “In my book, George W

awful lot of credit,” Tommy says. “Not just for cutting out some layers 

ment, but for really having faith in us down here—trusting us to figure o

the job better. It takes some leadership to turn an organization arou

Customs has. He should be proud.”

Part of the turn-around came from employing modern tools and techn

assigned me to start looking through the computerized cargo manifests a

information from the airlines,” Tommy explains. “This was the first ti

work with computers looking for dope, and they kinda had to drag me 

and screaming. But in about six weeks, I seized 3,000 pounds of coke us

review techniques and targeting.

“Once we realized the power of targeting freight with computer analysi

to get into pre-analysis of passengers, too. It made sense. If we could get p

when the planes took off, we could start working hours before the plane 

got the majority of the airlines to cooperate. They want to get the do

planes. They certainly don’t want us seizing their multimillion-dollar 74

screen their passenger lists and we know who we’re looking for—we go ri

plane and start working. We don’t just stand there in our uniforms wa

drugs to come to us. We go out and find it. I hate to use a Washington 

guess you’d say we’re proactive.”

The changes at Miami International Airport are tangible. “These par

changing the whole environment here. There’s an energy at this airport th

felt in my 22 years here,” says Amaury Zuriarrain, deputy director of the 

Aviation Department, which runs the airport. “The passengers are 

improvements, too.”

“It’s kind of funny,” Tommy adds. “Life is a lot easier for most passe

don’t have to wait in lines for hours and be treated like suspected crimin

11
because the process is so easy for them now. They shouldnt be fooled 

because they don’t see me doesn’t mean I’m not watching them.”

Tommy is dead serious about keeping drugs out of South Florida. “T

I live. This is where I’m raising my family. And I continually ask mysel

to have dope in the schools?’ Hell, my kids are in those schools. I don’

in my schools. I don’t just go to school for Career Day. I go on field trip

kids. They come to my home. I know every kid’s name in my son’s fifth 

This is my idea of family values.

“It may sound funny, but this experience here at work really has had 

my family life. Before, if one of my kids did something wrong, my wife 

automatically decide how to handle the situation. After all, we’re the pa

the ‘managers’ in our family. But we’ve started to look at things a little 

We’re sharing the decision-making with the boys—asking for their in

involved in the decision-making process.”

Tommy Roland is a new style “manager” at home and on the job, a

just the jeans, sneakers, and earring. He works with energy, creativity

work, and he produces results. He sums it up simply: “I’m not a bureau

a job to do.”

That’s obviously the kind of attitude we want in all federal workers

have. And most young workers have that attitude when they first sign 

government’s various systems—procurement, management, and personn

the energy, creativity, and enthusiasm out of the people who work for 

ment. Luckily for us, lots of workers all over government are like Tommy

with it anyway because they want so much to do something that reall

to do something good for the American people. Let’s take a look at the 

de-motivate people, and what the Clinton-Gore Administration has be

change things.

Procurement Reform

Most Americans have known for years that government procuremen

But to get a full appreciation, it helps to work here. Before the reinven

ment reforms launched in 1993, the typical federal worker was not tru

so much as a $4 stapler for the office. Only trained procurement spe

allowed to buy things—only a trained specialist could understand the 

they would make the buy only if a worker came to them with the for

filled out and signed by several bosses up the line—and even then, 

thought you deserved whatever was requested.

Buying anything associated with a computer was even worse. Federal wo

about having to get a dozen signatures, and then waiting a year or more 

ple PC. When it arrived, it was already obsolete, and it cost more than th

12
read in the papers along with the rest of America, that the procurement sy

did not trust them to buy anything, had gone out and paid $400 for a ha

The government’s procurement system was enough of a challenge tha

to double-team it. We got long-time critic of procurement and former H

fessor of management, Steve Kelman, to lead some government-wide c

brought Colleen Preston in from a Congressional staff to lead reform at 

Department. Rather than try to explain all the ins and outs of the regula

backed by the National Performance Review—changes that the Admin

made on its own authority, and changes we have persuaded Congress t

law—let’s look at some results.

First, results that benefit the entire government and, of course, the ta

foot the bill:

• Last May, we signed a contract with FedEx for overnight package deliv

pound package, at retail—$27. For the government, and the taxpaye

• Long-distance telephone calls: Someone who shops around can mak

long-distance calls for as low as 16¢ per minute. Starting in October, 

calls to anyone anywhere in the country will cost about 5¢ per m

between government agencies are even less, about 2¢ per minute.2

• The government used to do over $50 worth of paperwork for ever

chase—even for something like a $4 office stapler—and there are 

small purchases each year. Now, we have gotten rid of the paperwor

special Visa cards. What’s special? The average American pays fro

percent interest, and a yearly fee of up to $50. The government pay

no annual fee, and we earn cash rebates for paying on time.3

• Earlier this year, President Clinton signed a new law and an executi

fixes one of procurement’s biggest nightmares: buying computers and 

mation technology.4 Under the President’s order, agencies will invest 

tion technology only when there is a clear payback, and they won’t b

cumbersome contracts that can’t keep up with rapidly changing 

The idea is to buy a little, test a little, fix a little, and do it quick.

13
federal governments purchases:

• Remember the $400 hammer? How about a $500 telephone—o

designed for an aircraft carrier. What was so special? It worked even 

had sunk. Following changes in the communications system and by 

every requirement, the Navy determined it could use commercial 

cost 30 bucks.5

• Let’s look at socks and underwear (it reminds us of the old days for Cus

tors). If you were ever a soldier, your GI socks probably fell down beca

no elastic at the top, and they made everything in the washing machin

turn olive drab. The reinvented Army now issues ordinary, color-fa

elastic. The sad-sack socks cost $l.99 a pair—the nice, new ones cost 

• Concerning underwear, we think this letter speaks for itself:6

June 7, l996

For many years, Jockey International, Inc. declined to bid on gove

business. We took this position because the solicitations asked us to man

a T-shirt to unique government specifications. The solicitations also ask

provide sensitive pricing data so the government could determine a fair p

When we saw the latest solicitation for T-shirts we were excited. The 

ment was asking for our standard product, style 9711, without all the he

of a custom design. Moreover, our current catalog price was the basis to n

a fair price. It is with great pleasure that we were able to accept the T-shirt a

The T-shirt will be made in the USA. The production is at our 

Mississippi plant, an economically depressed area. This plant was closed i

but reopened in 1995 on a temporary basis. With a pick up in business 

award of this military contract we now have 175 employees at this facili

Peter J. Hannes

President, Special Markets Division

Jockey International, Inc.

Of course, the savings are not all just from socks and undershirts—

savings come from changes in buying big-ticket items. When the Pe

Congress agreed to a multi-year purchase and the elimination of detai

specifications, manufacturers could use more standard commercial parts

the price tag on the contract for their new C-17 cargo plane went dow

than $2.7 billion. Similarly, they saved $2.9 billion on smart munition

$100 million on the Fire Support Combat Arms Tactical Trainer.7 NA

the same kind of thing and making the same kind of savings on space g

14
only needed a little trust (that workers like Tommy Roland wont stea

some common sense (that Jockey can make decent T-shirts without 

instructions), and some shrewd bargaining (just try to find long distance 

as 2¢ a minute). That is the heart of the procurement reforms that t

Performance Review recommended in 1993 and that became the ba

major legislative changes that have been signed by the President: 

Acquisition Streamlining Act of 1994, the Federal Acquisition Reform A

and the Information Technology Management Reform Act of 1996

Clinton has gone even further by issuing a variety of directives that e

speed the legislative reforms.8

Trust, common sense, and shrewd bargaining might not sound like a 

ary formula to fix government procurement. But added all together, o

ment reforms are expected to save $12.3 billion over five years.9 Pretty 

By the way, we are not just buying smarter, we are selling smarte

government actually used to give away the incredibly valuable rights to b

certain frequencies. This included radio, TV, cell phones—you get the p

the Federal Communications Commission auctions them to t

bidder. So far, we have taken in $20.3 billion.10

Management Systems and Structur

Just a few years ago, the front-line federal workers had more layers o

than they could shake a stick at—as much as they would like to. For exam

in a government hospital would have had to communicate through a rep

of a dozen or more bosses before word reached the Cabinet Secretary—an

the Secretary would have to do the same to get an answer back. Rememb

game called “telephone,” where a half dozen players lined up and whispe

message from one to the next? It invariably came out garbled. Imagine w

many players could do. Imagine a dozen or more layers of managers, no

their deputies and administrative assistants, transmitting that nurse’s goo

how to save money on, say, sphygmomanometers. Every new idea need

approval.

By the way, that long line of managers was not just waiting to conve

line workers’ ideas to the top boss. They were busy producing rules and 

spelling every detail of what front-line workers should and should not 

Back in 1993, when we began reinventing government, we discover

out of every three government employees was part of a network of m

ment and overcontrol. They were headquarters staff, personnel, budg

ment, audit, finance, or supervisors. One-third of our employees had b

to keep the other two-thirds from ever doing anything wrong. They w

15
pliance with internal rules. That occupied almost 700,000 workers, w

payers around $35 billion a year, plus office space and lots of paper.11 

nothing ever went wrong. Right? Wrong!

Big headquarters and big rule books never have kept the govern

making big mistakes. In fact, they often kept front-line workers from d

right. So we asked agencies to cut layers of supervisors, headquarte

other management control jobs by 50 percent.12 Figure 3 shows wha

done so far.

Because we started offering buyouts and putting the brakes on hiring

tions have not been concentrated in management control positions t

the National Performance Review recommended. But 11 of the 27 larg

are at least halfway to the goal on supervisors, and eight have cut headq

by 25 percent or more. In addition, certain bureaus and agencies wit

departments are also making big progress that is not reflected in their d

overall figures. Overall, it is fair progress, but we still have a long way 

Numbers are not everything. Many bosses are changing the way th

jobs—encouraging innovation and customer service instead of just mak

toe the line. Many national and regional management organizations a

a new role whose primary job is support. Ultimately, we have to brin

number of people in management jobs and headquarters, but the shif

is every bit as important.

16

Courtesy of Norm 
17

Percentage Change in the Number 

Headquarters Manageme

Agency Supervisors Staff Posi

Agency for International Development -3 -14 +

Agriculture -21 -15 -1

Commerce -18 -20 -1

Defense (total) -16 -10 -

Air Force -13 -8 -

Army -14 -17 -

Navy -19 -7 -

Defense Agencies -19 -3 -

Education -24 -12 -1

Energy -53 -27 -1

Environmental Protection Agency -38 -10 +

Federal Emergency Management Agency -20 -22 +

General Services Administration -28 -21 -1

Health and Human Services -29 -15 -1

Housing and Urban Deveiopment -37 -36 -1

Interior -29 -27 -3

Justice +4 -5 +

Labor -19 -25 -1

National Aeronautics and Space Administration -40 -34 -1

National Science Foundation -24 -18 +

Office of Personnel Management -53 -65 -4

Small Business Administration -28 -28 -3

Social Security Administration -25 -23 -1

State -8 -7 -

Transportation -22 -25 -1

Treasury -10 +4 +

United States Information Agency -22 -15 -1

Veterans Affairs -28 -19 -

Average -20 -14 -

Note: OMB Circular No. A-11 (1995), sec. 15.4, pp. 47-48, contains the definitions o

series included in each of these three categories. See also Appendix H.

(in percentages)
The first thing we did to encourage a change of attitude at headqua

move more authority and accountability to the front lines was to create 

laboratories,” where front-line workers and managers could try out thei

change. Now there are about 250 reinvention labs leading the reinven

tion. They have been called “islands of innovation in a sea of bureauc

place where Tommy Roland works, Miami International Airport, is a 

lab. Here are some other examples:

• The General Services Administration established the first electron

mall for Federal customers, which cut the cost of real estate sales by 

while generating revenue of $73 million.

• The Air Force medical organization prototyped an automated syste

taining patients’ records. The system will save millions of dollars a

care as it spreads throughout the Defense Department.

• A joint effort between the Defense Contract Audit Agency and 

Logistics Agency cut the government’s and contractors’ overhead 

substituting international quality control standards for the governm

Quality rose, and government costs have fallen by over $150 millio

• The Department of Justice’s SENTRI project in southwest Cal

state-of-the-art technology to reduce the average waiting time to cr

der from 45 minutes to just three minutes for registered travelers

now can focus on non-registered, higher-risk travelers.

• A reinvention lab in Anchorage is combining seven separate librarie

gle one-stop shop for information about natural resources. The De

the Interior is joining forces with state agencies and the University 

create a single natural resources library that will eliminate dupli

money, require less staff, and provide better service to customers.

18
“Filling out the prescribed government job appl

cation used to discourage a lot of people. For many

it was their first dose of red tape. It was almost lik

saying to somebody who wanted to work for th

federal government, ‘Welcome to the fun house’.

— Vice President Al Gore, in a spee

to the Office of Personnel Manageme

In 1883, two years before the first gasoline-powered automobile and six 

the White House had electric lights, the U.S. Civil Service laws we

Not only is the civil service system old, our first report called it “elabora

and over-regulated, preventing agencies and their managers, employees, 

from designing effective and mission-supporting human resource m

programs.” No one argued with us about that.

We have done what we could to fix it. We have done quite a bit.

Common Sense Job Applications

We scrapped the Standard Form 171, the ridiculously long job applicat

in so many words, “Welcome to the fun house.” Now applicants can sen

lar resume, like regular people do for regular jobs.15 Even better, th

Personnel Management has a toll-free phone service and a World Wide W

lets people find out what is available and even apply by phone or fax for 

Less Red Tape 

We junked all but a few parts of the 10,000-page Federal Personnel M

specified everything down to the color of personnel folders. We actua

out to a dumpster in a wheel barrow. The death of the manual gave ag

freedom to tailor things to fit their own operations.

Labor-Management Partnerships

CEOs who had reinvented big corporations told us we could not su

out a true partnership between management and labor. The Presiden

executive order in 1993 establishing the National Partnership Council.1

are more than 650 partnership councils, and labor-management relations 

ing all across government. One of the most successful councils is at the U

Denver, led by Greg Wikberg, president of the local union, and Jack DeB

19
litigation costs have dropped by $10 million and, in 1995, they set an all

by producing 10.3 billion coins.18 How’s that for a money-making partn

Family-friendly Workplaces

Government workers should have lives, too. Moms and dads need 

the kids, with their own parents, and with each other. So, the C

Administration is encouraging job sharing, part-time work, altern

schedules, telecommuting from home and from satellite locations, leave 

child-and-elder-care services.19 Top business leaders agree that th

increases productivity and morale, and reduces lost time.

Performance Appraisals

Every year, everyone who works for the government is to be formal

vidually judged by his or her boss. The process can cause tension an

viewed as ineffective. Most government work depends on team, not 

effort. And often, a worker’s teammates and customers are better able th

to judge that employee’s effectiveness. Several agencies are experim

different evaluation methods that enhance teamwork and give more 

the customers. The Department of Education is using a 360-degree a

evaluation from all directions—the boss, subordinates, colleagues, cus

suppliers. The other new kind of evaluation is not of the individual, but 

It is based on measurable results, and everybody who contributes to the 

the same grade. Workers are being judged and rewarded in terms of ho

teams achieve measurable results. Several variations of the new system

tried, and all have pluses and minuses; the hope is to find better, more 

means of gauging worker performance.

New Civil Service Legislation

Right now, we cannot be as flexible or innovative as we would like to 

the personnel system applies a single set of rules to all federal empl

patent attorneys to park rangers. No corporation would operate this w

Electric makes light bulbs, buys and sells mortgage loans, and leases ca

not try to squeeze such a diverse cadre of workers into a single set of per

and neither should the federal government.

Legislation now moving through Congress will grant agencies more 

administering personnel systems that support their missions, while pres

common values like veterans preference and merit. It will allow each agen

its own method of rewarding good performance and dealing with poor p

20
g 

From the start, Vice President Gore has spotlighted the people and 

were showing the way to reinvention by giving them a “Hamme

a $6 hammer wrapped in ribbon and mounted with an aluminum fra

bolizes the dramatic change from the days when government paid a b

hammers. The awards are highly prized, and teams are eager to publiciz

that they once would have kept under wraps due to fear of criticism. 

Hammer Awards have gone to such teams as:

• the Interior Department team that converted its rules and regu

“Plain English”;

• the Transportation team that, along with their California teamm

out how to get the Santa Monica Freeway back into operation in 

after the Northridge earthquake; and

• the team from the National Park Service that reduced the review t

struction of park visitor centers and other major projects by over 5

Several agencies followed the Vice President’s lead of encouraging 

with special awards. For example, the Deputy Secretary of Veterans Affa

“Scissors Award” to VA employees who have cut red tape.

Franchise Funds

Our government has long opposed private monopolies while crea

ones. A federal manager needing some administrative service—like hel

sonnel, legal, procurement, financial, or computer specialists—had t

departmental monopoly in charge of that service. This approach was 

offer economies of scale.

Today almost everybody understands that monopolies provide poo

high costs. So the original National Performance Review report recomm

ducing competition by lifting the requirement that agencies buy suppl

General Services Administration. GSA’s Federal Supply Service gave up i

on office supplies in 1994 and has been competing succe

government business ever since. Their new motto is “Better, faster, cheaper, 

The National Performance Review also encouraged agencies to prom

tition by establishing “franchise funds.”20 These funds allow selected 

offer their common administrative services to other agencies. C

approval was obtained in May 1996 for franchise funds in Interio

Veterans Affairs, the Environmental Protection Agency, and Commerce

will allow these agencies to sell to other agencies such services as 

computing, records storage, personnel and accounting systems, backgro

and travel management.

21
p

Telepathology equipment at the Veterans Hospital in Milwaukee riv

bay on Star Trek’s Enterprise. But, the real reason the vets get world-cla

is Dr. Bruce Dunn. Dr. Dunn thinks we owe veterans a debt that can ne

repaid. His research to get vets the best pathology on the planet sets the 

closer to balance.

Helen Wassick went to work part-time in the Morgantown office o

Service in a program that employs seniors at minimum wage. Her offi

publications all over the country on tree management. Helen prides he

giving up on a request until she gets an answer. She says, “I treat peop

want to be treated.” And when the Forest Service started giving comm

customers, Helen wrote her own name on the cards. Hundreds of cus

the Forest Service that Helen is the greatest. So now Helen’s on the payr

serving customers.

George Hawkins works for EPA in Boston. He used to practice law a

Gray for more money, and he had a lot less fun. George is the champ

Boston office for EPA efforts to build partnerships with companies and c

that want to protect the environment. George thinks that this is the fu

ronmental protection and that building that future is worth doing. He’l

who will listen. In fact, he wrote 1,000 letters to businesses and town

come and explain the partnership programs. He got a lot of takers. True 

he has made 150 visits so far this year.

Bruce, Helen, and George all have something in common. A big 

these people work for government is that they want to make a contribu

value, to serve. They brag about it too, over a back fence or at a soccer ga

employees haven’t done much of that for years. But, in offices where rein

begun, the employee teams are inspired by the idea of finding ways to 

system so it serves Americans again.

This motivation is a potent force, a kind of pure energy source for cha

been bottled up. Reinvention turns it loose. The government is filled with 

like Bruce, Helen, and George—and don’t forget Tommy Roland. The pr

for years we have kept these good people trapped in bad systems. We are 

systems so all our people can devote more of their time, intelligence, and en

they signed up for in the first place—serving the people of America.

22
SECRET TWO: 

GOVERNMENT IS SERVING PEOPLE BET

“I stumbled from the office dazed and confus

completely disoriented by what had just happened

— Elizabeth Childs, describing her feelings after ha

contact with the federal governm

Beth Childs lives in the shadow of the government—literally. Her 

second-story apartment opens onto a porch overlooking a federal office 

Sacramento. They are separated only by a hedge of white flowering o

kind found in the median strips of the California freeways. Beth has liv

eight years with her husband Bill, a drug and alcohol counselor in a 

school, and Sydney, her junior high-aged daughter. Sydney has recent

playing the flute, following in the footsteps of her self-taught mother.

“The government is a rude neighbor,” Beth complains mildly. “They 

sometimes on Sunday mornings around 7:00 making all kinds of noi

blowers and garbage trucks. But I guess they might feel the same way ab

sidering Fred.” Fred is their gray cat—they also have a calico. “Fred’s lea

open the federal building’s electronic doors, and he goes into the cafete

The health inspector caught him in there once. Caused quite a stir.” 

shows that Fred is making up for the Sunday morning noise. Being the g

neighbor is not what made her feel “dazed and confused, completely dis

she wrote in a recent letter. That came from one of the times she visite

ment office, when she needed something only the government could su

“My twin sister, Tami, just adopted a Russian baby while she and h

were living in Belgium. The baby’s named Amy, and she’s absolutely bea

had to fill out lots of forms in Russian, Flemish, and French. At the 

Tami realized she needed a form in English from INS—the U.S. Imm

Naturalization Service. It’s just a one-page form—a single piece of g

I offered to pick the form up at the INS office.”

The INS office is in a nondescript concrete and smoked glass building 

one of the main drags in Sacramento. Its address is the only thing pri

facade of the building, 7-Eleven. But it is no convenience store.

“There was a sign on the wall that said the capacity was 250, but the

500 people in there. I finally figured out I was supposed to take a numb

were different windows, and there were different numbers and a differ

23
so I took a number for the information window. There was a sign on 

that said, ‘Now Serving 143.’ My ticket was number 327 and it said 

ticket there would be a 72-minute wait. So I went out and had som

bought a book. When I got back almost an hour later, the ‘Now Servin

145—I had only advanced by two.

“I decided to skip the ‘information’ window and took a numbered tic

‘forms’ window dispenser. It was number 79 and the ticket said I woul

a two-minute wait. Three and a half hours later, I was getting near t

The reason it was so slow was that clerk kept getting interrupted wit

from people who were dropping appointment forms in a box right by 

I was impressed by the number of different languages he spoke, and he s

in every one of them. Finally, the clerk had called number 75, so a coupl

I moved up close to the window. Then the lighted sign over the wind

from number 75 to 320! They had switched from ‘forms’ to ‘in

When we protested, the clerk snapped that he had to do what his sup

him, and that he would switch back to forms in 40 minutes.

“With that, he called out number 320, but no one showed. After a sec

no answer, he went to 321 and a young woman stepped up to the wind

elderly woman with 320 had been struggling through the crowd and fin

In broken English, she tried to explain that she couldn’t get to the wind

The clerk reprimanded the old woman and refused to help her until she 

around and apologized to woman number 321. He was really on a pow

“I was so mad that I went to a pay-phone in the back of the waiting 

someone in charge. I got put on hold. I was on hold long enough that 

switched back to dispensing forms. So I hung up and got back in line. 

to the counter, the clerk said ‘Well now, that wasn’t so bad, was it?’ I h

total of five hours. All that time, I could see the forms on the shelf behin

Why did I have to go through that? He wouldn’t even give me two c

form in case Tami made a mistake. To get another copy, I would have h

back another day and wait in line again.” 

Beth’s bad experience at the INS office happened less than a year ago, b

INS recognized they had problems and was doing something about it. Th

country, the agency is beginning to put customers first. For example, they 

easy way to get forms. Customers can dial 1-800-870-3676 and ask fo

need. In a week or so, the forms come in the mail.

But that’s not all. INS has designated two offices—one in Detroit 

El Paso—as “reinvention labs,” where the workers can try out their ow

to improve customer service in ways that all INS offices will be using soo

where throughout the country, INS’s new attitude is catching on. Seven 

undergoing intensive customer relations training and are running 

customer focus groups. Incidentally, that same El Paso office recentl

24
10,000 aspirants became new citizens in the El Paso District alone bet

and August 30, 1996!

Beth Childs’ experience with INS wasn’t what left her “dazed an

completely disoriented by what had just happened.” It was a more rece

unusual encounter with government that dazed Beth—this one on F

1996. Beth Childs gave her daughter an extra hug as she left for scho

This time Beth was ready for the long, unpleasant journey ahead. She h

the plans others make when they go out of town on business for an ind

Her best friend had agreed to pick up Sydney after school. Not knowin

would return, Beth wore comfortable, casual clothes and packed her cro

To prepare herself psychologically, she closed her eyes and tried to 

She lowered her expectations. She did not expect things to run s

efficiently. Prepared for the humiliation and frustration she had experie

Beth drove away to face the government again—this time, the Soc

Administration.

When Beth entered the Social Security office on Fulton Avenue in 

that day, she was shocked. She expected an office filled with long lin

with screaming children. She wondered if she had gone to the wrong bu

place was quiet. The clerks were smiling. As Beth remembers it, “A str

opened up at the Social Security office and bureaucracy was suspend

shock. I was totally blown away by the service I received. Everybody was 

They almost offered to carry my bags. I felt like they were fanning me w

while I filled out this form.” Beth was so moved by her experience th

the following letter:

Sir/Madam:

I had cause to visit your office on February 22, 1996.... I was greete

efficient, friendly, helpful staff in a timely manner and was able to c

my business in one visit. I then stumbled from the office dazed and co

completely disoriented by what had just happened. I wandered the park

for a while before regaining my composure and returning home to re

experience to family and friends. They were spellbound. Thank you for 

us all a new perspective of government agencies and their employees.

Beth is not the only one who has a new perspective on government

similar happened when Beth’s twin sister, Tami, brought newly adopted 

to the United States this past July. “We got into Logan Airport in Bosto

the evening,” Tami explains. “Amy was still on European time—almost 

so she was a bit cranky. When we got to the Immigration counter, we 

25
her green card. He told us that the photo on her application was 

I thought, ‘oh boy, here we go.’ But he was so upbeat and friendly. He h

in his office, he took Amy’s picture, and gave us the right size. Then he 

our address on the application was a post office box—we’d been livi

He said we’d need a street address to get Amy’s green card in the mai

remember my parents’ ZIP code in Maine, so he asked me their pho

picked up his phone, and called them. He let me chat a minute to let 

we were safe and sound, got the ZIP code, and sent us merrily on our 

left, he called out: ‘Your tax dollars at work.’”

They certainly are your dollars, and that certainly is how governm

work. Thanks to strong leadership from President Clinton and the h

federal employees who have been wanting a chance to do this all along, 

is beginning to serve the people better.

President Clinton’s Marching Order

In 1993, President Clinton gave the executive order, and he gave it lou

Every agency that deals with the public should deliver service equal to 

business. That goal is easy to understand. Government telephone rep

should be as fast and courteous as those at leading mail-order companie

federal employees should be as eager, able, and happy to serve as the f

Mart. The government should serve the people the way America’s bes

serve their customers.

America’s best companies did not get that good overnight, and neit

government. But we are making progress, and we are measuring our 

same way top companies do. Their #1 rule in customer service is tha

making the grade unless the customers say you are. According to letter

of our customers, we are headed in the right direction:

This is from a recently retired businessman in Mesquite, Texas.—

than ideal contact with a host of government agencies had made a ‘civil se

of me—not particularly kind on my part, but based on experience. And so

1996, I visited the Dallas-Lake June Social Security Office with some 

The waiting room was crowded but I waited only 12 minutes. It’s hard to d

a pleasure that encounter was. Throw out the stereotype of the Civil Serv

These people were so friendly and helpful that you would have expected tha

be asking favors of us, not the other way around. I can only say that I wou

going head to head against you in business. You would win in a walk.” 1

And this is from a lawyer whose client had some unpaid taxes and a 

return.—“With a few telephone calls (no unending busy signals or being p

inite hold) to the Baltimore IRS office, I was able to have an installment ag

26
27

President Clinton’s Executive Order 12862

“Setting Customer Service Standards”

Embark upon a revolution within the Federal Government.

• Identify customers who are, or should be, served by the agency.

• Survey customers to determine the kind and quality of services they want and th

level of satisfaction with existing services.

• Post service standards and measure results against them.

• Benchmark customer service standards against the best in business.

• Survey front-line employees on barriers to, and ideas for, matching the best in bu

• Provide customers with choices in both the sources of service and the means 

of delivery.

• Make information, services, and complaint systems easily accessible.

• Provide means to address customer complaints.

The standard of quality shall be equal to the best in business.
private practice, I cant recall an easier resolution of what I had anticipated 

cedural nightmare.”

From a San Diego resident who works in Mexico and used to spend 

ing in line to come home.—“What a relief it has been, not to worry abo

der lines.... I’m not sure how to quantify anxiety, stress, and frustration le

dedicated commuter lanes have minimized these levels significantly. Who k

I will live longer.” 2 Another frequent border crosser notes, “I don’t get 

aches that I used to.” 3

From an energy analyst who uses Department of Energy technical i

“I would like to thank you especially for the world-class customer service yo

me over the last few years. Employees at Federal Express, Nordstrom’s, and 

have nothing on you in terms of helpfulness, thoroughness, and responsiven

I’m concerned, you set the highest standard for excellence.” 4

From a Montana sheriff who had to deal with a derailed train with tan

ing deadly chlorine gas; he had to know which way and when the w

blow.—“Brenda and [the National Weather Service] staff were there for us, 

at all hours, and under all conditions. [Their involvement] goes a long way 

pelling the stereotype of bespectacled scientists in a windowless room grou

gauges and radar screens (or a crystal ball ).” 5

From an inventor in Massachusetts.—“Joe Cheng [an examiner at the 

and Trademark Office] went out of his way to clarify the specifics of patent l

ple like Mr. Cheng who make it possible for small, independent inventors l

survive....”

From a Detroit police officer who worked security along with the 

Service when some international bigwigs visited Motown (movies and 

often portray how pleased the local cops are to see the feds show up).—

when local and federal agents came together, it would seem like the clash 

but not in this case. It’s really hard to put into words, how wonderful and 

was, everyone working together with one common goal ... [and] no finger po

people are the world’s greatest.” 6

This is part of a letter from a World War II veteran who had gone t

Affairs clinic four years ago and “was extremely disappointed by the lack of 

coordination within the clinic.” Recently, he went again. “What a pleas

I was impressed by the cleanliness and organization. The clerks were very pol

ful. Congratulations on a job well done. As my daughter says, we deserve it

We agree, you do deserve it—all Americans deserve much better s

government agencies. But it does not come easy. Just listen to what has 

on behind the scenes to make the customers notice a difference.

28
We had to start with the basics. Some agencies had never thought in t

tomers before, so the National Performance Review conducted worksho

cies to figure out who their customers were. In private business it’s eas

tomer is the person with the money, the person who might go to your 

But most agencies have no competition, and they saw Congress as the

money. We even had complaints from taxpayers saying they were the g

owners, not its customers. They are right about being the owners, but t

tomers, too, like a Ford Motor Company stockholder who buys a Ford

For some agencies, it was easy to find the customer. The Soc

Administration serves beneficiaries. Veterans Affairs serves vets and th

But what about agencies that don’t usually serve the public directly?

The Department of Education exists to help those trying to learn, th

customer. Yet the Department doesn’t directly operate schools or other l

grams. To get its job done, the Department has to work well with edu

nizations, getting them what they need to do their jobs. It’s a three party 

educators, learners—and thinking about that may produce new answer

ple, the Department wants to reach kids with a literacy program. Librar

ing for new services to attract the public. Kids like pizza. Th

Read*Write*Now, which reached a million kids this past summer.

In the first weeks of summer, Read*Write*Now kits went from the 

to 16,500 libraries. The libraries signed up kids and learning partn

teens, seniors, or neighbors. Kids agree to read and write for 30 minut

learn a vocabulary word a day, and meet with the learning partner for h

twice per week. When the kids finish the challenge, they get a coupon f

pan pizza from Pizza Hut, who is a partner in the whole thing.

A different kind of customer relationship exists for regulators—if som

to comply with the regulations, treat them right, find out what they wa

them all the help you can because that will increase the compliance. 

Richard Hansen, who chairs a transportation committee of Illinois sch

wrote to the Wage and Hour Division of the Department of Labor a

Martinovich and her investigation of an employee complaint. He desc

someone to “work with” rather than someone they have to “deal with.” 

OSHA compliance officers work with S.D. Warren employees who are 

safety hazards. It’s why EPA sits down with Intel to tailor an air permit. A

in public reports, FDA, in an ongoing pilot program, includes compa

problems found in FDA inspections. Throughout government, re

adding customer-friendly ideas because they get better results than th

badges and fines. It’s a key tool in building partnerships to reach regula

When we thought it through, we found that the idea of custom

worked for all agencies, at least for part of what they do. It’s even 

29
pillows in prisons, but they are thinking customers when answering re

other law-enforcement organizations for criminal histories and fingerpr

And customer approaches certainly apply to treatment of victims and w

Ask Customers What They Want

The next step was for agencies to ask the customers what they wanted

turned out to be harder than one might imagine. In 1980, Congres

Paperwork Reduction Act to protect people from having to fill out too m

Diligently, the Office of Management and Budget then wrote detailed 

with stringent requirements that agencies had to satisfy before mailing 

forms—for example, surveys to find out what their customers wanted. B

President ordered a new customer service focus, OMB responded and 

their system, and now agencies can survey their customers more quickly 

Once agencies began surveying customers, they got some surprises. F

the Internal Revenue Service had assumed that what people wanted mo

their tax booklet in the mail as soon as possible after New Year’s Eve. B

customers said they wanted most was little or no contact wit

The Department of Veterans Affairs assumed that vets welcomed long d

waiting room so they could swap war stories; their customers told them

(The VA Regional Benefits Office in New York now serves customers 

they do not need a waiting room anymore. In fact, they are turning it int

of VA memorabilia.) The Federal Emergency Management Agency a

disaster victims wanted help to arrive much faster. They were partly rig

victims FEMA surveyed also said that they wanted someone to take a 

listen to their worries, and reassure them.

Most people had never even heard of the Pension Benefit Guaranty C

or what it does. So PBGC went back to the basics and ran focus g

customers. When PBGC took over the pension plan from the defunct 

Steel Company, Rosemary Thomas of PBGC held a town-hall-sty

She started by telling 200 worried steelworkers that the agency insured 

funded pension plan, and that their checks were safe, and how soon 

would start. That calmed things down right away. 

If we’ve learned anything from reinventing government, it is that th

things right is to start by asking customers. By the way, customers like 

It was a new experience coming from the government.

30
g 

Once customers have said what they want, it is good business to tel

to expect, the way FedEx promises they will deliver a package by 10:

morning, or Disney World has signs posted along the line for Space M

ing how much longer visitors have to wait. Setting customer standards 

They focus on the things that are most important to customers. They als

is critical—tell federal employees where to focus. Federal employees ne

what their goal is too. For so long the goal has been not to make mistak

as defined by rulebooks too thick to lift. Now the goal is built on the go

customer service, treating people the way you want to be treated.

Making firm promises was new territory for government agencies th

to hedging. At first, only three agencies—the U.S. Postal Service, the I

Social Security Administration—were willing to stick their necks out a

fast or courteous they would be. The next year, after the President’s ord

workshops, 150 agencies took the plunge. Now, 214 agencies have pub

than 3,000 specific customer service promises. President Clinton and Vi

Gore compiled a book of them, organized it according to type of 

not agency—and put it on the World Wide Web for all to see.9

31

STANDARDS THAT TOUCH MILLIONS

• Internal Revenue Service: tax refunds on complete and acc

paper returns are due in 40 days; 21 days for electronic retu

• Social Security Administration: new and replacement card

mailed within five days; they’ll tell customers the Social Sec

number in one day if it’s urgent.

• Coast Guard: search and rescue on demand, 24 hours a da

seven days a week.

• Environmental Protection Agency: in voluntary programs, publicly recognize the achievements of business partners.

• Occupational Safety and Health Administration: inspector

be respectful and helpful, and focus on the most serious haz

• U.S. Mint: orders taken 24 hours a day, seven days per wee

• National Park Service: Great Smoky Mountains visitor cen

open every day but Christmas.

• Bureau of Labor Statistics: data any way customers want it

from a live person, or by recorded message, fax, microfiche,

diskette, tape, Internet, or TDD.
promised that local first-class mail would be delivered overnight.10 T

make it in key cities. Only 50 percent of the mail was being delivered 

New York and Washington; in Chicago, mail burned under bridges

media covered it all. But since 1993, on-time delivery in Washington

and Chicago has improved steadily to better than 85 percent by last 

national average was up to 90 percent last spring for the first time.11

The Convenience of the Customer

After they asked customers what they wanted and set standards, ma

had to do things differently so they could deliver what they promised. T

service program is huge. It’s customer service teams and customer servi

tatives and front-line employees in all federal agencies knowing they can 

a difference and pounding away at the old ways of doing things. It’s a

sitting down with their customers all over the country to find out what 

It’s federal employees and private sector partners benchmarking best 

1-800 service, complaint systems, and more, looking for ideas to impr

ment’s service. It’s the President’s Management Council aligning planning

and operating systems to make sure customer service is ma

And we’re starting to see results. Enough so that we know that in time 

the whole government around.

Here’s an example: The Federal Emergency Management Agency 

national disaster all by itself. Congress was seriously considering scuttlin

because, when emergencies struck, FEMA was not much help to anyone

problem was the way FEMA was organized—it had divisions for man-

ters like riots or nuclear war, and divisions for natural disasters like floo

quakes. Each division had people and equipment that could not be use

er division’s disaster. FEMA Director James Lee Witt stopped that, 

FEMA into an “all-hazards” team. Other agencies also had to change t

were organized once they started to concentrate on their customers’ need

their own.

In some cases, agencies have organized for the convenience of the c

banding together. They developed one-stop shops, where the idea is for 

ment to get together so the customers no longer have to wander around

ple, Houston, Boston, Kansas City, and Atlanta now have a “U.S. Ge

offering almost any service from the federal government in one place, w

local governments there, too. SBA is there for loans and advice. The IRS 

help with tax questions. The agencies that don’t have people in the sto

up hot-lines to answer questions right away. This way, for example, E

easy to get. One-stop.

32
Bureau of Land Management and the Forest Service, who often manag

lands, are teaming up in new Trading Posts. Customers told the agenc

make much sense for people to make two stops for maps, fishing i

woodcutting fees, and guide permits. So the agencies are moving in 

Canon City, Colorado, they got the Colorado Division of Wildlife to 

giving outdoor enthusiasts a better deal still.

And to gather firewood in Oregon, citizens can stop by the local 

store, where they buy milk and bread, to buy a permit for federal wood

grows in an Agriculture Department National Forest or a Burea

Management area. We figured it out so the taxpayer doesn’t have to.

There is no doubt that one-stop works for customers. Maybe that is h

ment services should have been put together in the first place.

Phones

Workers need good equipment to give good service. Let’s stick with F

example: FEMA’s main equipment used to be tents and tons of paper. A

FEMA would set up a tent on dry ground and all the victims would hav

to fill out forms. FEMA inspectors would stop by the tent, pick up a bat

slog out to the damaged houses to check them out, then slog back to 

exchange those forms for the next batch. To give better service, they n

tools, and they got them. Now, flood victims can call a toll-free number 

aid, and inspectors have hand-held computers with modems that receiv

transmit their evaluations without any slogging. Many other agencies 

got modern equipment to give better service, too.

Telephones are a top priority in customer service all across the 

because more Americans contact the government by phone than any oth

attention is producing better service.

Last year the people at the Social Security Administration were judge

the business at handling calls. An independent survey by Dalbar, Inc. pi

the best toll-free telephone service, compared to several top private secto

beat Xerox, Southwest Airlines, L.L. Bean, and Disney.13 But SSA wasn

it took too long to reach an operator. The service was world-class, but th

not. This year, Social Security transferred staff to the call centers, con

centers to handle calls, put in technology so that all claims represent

handle overflow calls on the busiest days, and installed a 24-hour autom

for frequently asked questions. Now, less than half as many callers get b

and 90 percent of all calls go through in less than five minutes.

33
better service:

• The Food Safety and Inspection Service has a 24-hour, seven-day-a

free number with safety tips and information on recalls of meat an

• The Food and Drug Administration has a 24-hour phone line a

Wide Web site with information on food, drugs, and cosmetics.

• Starting in November, travelers worried that a new passport wi

before their flight leaves can dial the Passport Services’ new 1-900 

find out the status of their application.

• The Consumer Product Safety Commission’s toll-free hotline runs 

clock. Callers can report hazards or hear about recent product reca

safety information, the Commission will transfer callers to th

Highway Traffic Safety Administration’s hotline.

• The Immigration and Naturalization Service now has a toll-free 

forms (so no one has to suffer what Beth Childs did). They also h

that employers can attach to their phones to call the INS compute

the legal status of job hunters.

• IRS is always on the phone. The TeleTax system is available to prov

information to all taxpayers. And this year, three million taxpayers c

filed their returns by touch-tone phone using a pilot program cal

TeleFile checked their math and sent their refunds to them within 

34

That Number, Please

Auto Safety Information . . . . . . . . . . . . . . . .1-800-424-939

Consumer Product Recall Notices . . . . . . . . .1-800-638-CPS

Export Assistance For Business . . . . . . . . . . .1-800-USA-TR

Immigration and Naturalization Forms . . . . .1-800-755-0777

Meat and Poultry Safety Tips . . . . . . . . . . . .1-800-535-455

Social Security Information . . . . . . . . . . . . .1-800-772-1213

Taxes, Recorded Information . . . . . . . . . . . .1-800-TAX-447
, 

With the government providing more and more services over the ph

the phone number? Try 411—information. Ask the operator about a 

service, like getting a passport. The information operators hate call

because, like the rest of us, all they have to work with are the governmen

the phone book. The low-tech puzzle that must be solved before reachi

tech government is the “blue pages.”

The blue pages are not like the yellow pages. Yellow pages list things a

Blue pages list names of organizations. The information operator wo

know that the question about passports would be answered by the State 

(listed under “S”).

We are fixing the blue pages. The General Services Administration ha

services for the government, but each agency creates its own listings in 

book around the country, so changing the blue pages is a big coord

Nonetheless, as a start, GSA and the agencies have promised to have new 

in at least five cities reaching 11 million people this fall.14 Soon, caller

passport will look under “P” for passport.

Computers

Some technologies have just been waiting to be discovered by the gove

corner ATM machines and supermarket checkout stands used by mos

already hold the technology needed for a national Electronic Benefits T

tem. This grand reinvention plan, announced in 1994, will deliver f

social security, veteran, and local assistance payments using a single de

each beneficiary. By 1999, about 25 million Americans will be using th

benefits totaling $110 billion per year, instead of getting checks or food 

All states are planning Electronic Benefit Transfer systems. Thirteen 

delivering some benefits this way, with about 3.5 million citizens usin

Checks are no longer mailed or carried around so there is less chan

Electronic records make it easier to spot fraud. When the program is co

and running, it will save about $230 million per year in administrative 

Since April of 1996, a service to order your personal benefits estima

Social Security Administration, called PEBES, has been available via the 

superhighway to the World Wide Web site.16 The statement of expecte

and other benefits has been around for years, but you had to get the 

fill it out, and mail it in. This all happens now from your computer scr

five minutes.

The Web site provides a place for people to offer comments. R

overwhelmingly positive, about how it is easy to use and convenient. F

35
it. But the best compliment comes from Reggie Lewis, who visited the W

left this message, “This is too easy—is this a trick or something?”

The World Wide Web and technology are not for everyone—not ye

for more and more Americans technology plays a central role in their liv

them new options, like how to pay for groceries. It brings convenience, 

a call from the car. It gives them control over their own lives, like bo

reservations from their computer on their desk at midnight. In a wor

much is out of our personal control, anything that lets us drive is welco

tion, many visitors to the government’s new Web pages talk about th

once again being in touch with their government.

Inside government, the technology lets us get and share information m

We can push it out to the front lines, where change is encountered first an

want decisions now. We can collect information overnight from everywh

to managers so they can react to changing needs. Technology lets us th

new ways to do things, one-stop ways, paperless ways, in flatter organi

lots of people working on the same thing at the same time, what comp

weenies call massive parallel processing. In short, technology is the grea

reinventing government.

But, but, but our idea is not to force people to use technology. Our c

being given choices. They can come in, call up, fax an order, or go by In

can get a tax check by mail or direct deposit. Often the technology will 

behind the wizard’s curtain helping the government employee who serve

When government’s customers choose technology options, the burden 

vices that depend directly on face-to-face, or voice-to-voice contact goes 

means better service for those still choosing the old routes. For those c

routes service should be better too. The technology solutions are going 

with fewer steps in front of and behind the curtain, and they are going to 

And cheaper is the critical word if we are to improve customer service i

budget world.

Social Security’s PEBES project is not a lone government success on t

At the Department of Agriculture, they put the first ever standardized d

plant species on-line. A niche product? Not exactly. There are 200,000 

month at the Web site, which was built by the Natural Resources C

Service for users that include scientists, teachers, and other state 

government agencies.

The most used home page in government, and maybe anywhere, be

IRS. It looks and reads more like small town newspaper than a part of 

It answers frequently asked questions, goes over 148 tax topics, and ex

regulations, trying to be as easy to understand as possible. It also provides 

forms, publications, and instructions. From January to June 1996, there h

million electronic accesses on the home page. Just on April 15, taxpayers 

104,000 files. The next day there was a run on the forms for late filing.

36
Surveys new Internet service.17 Sorry, kids, they

ll answer questions bu

write your reports.

Existing technologies are getting new uses all over government. John 

realtor in Naples, Florida, and back in May he had a little problem. H

years worth of Consumer Price Index data to calculate the value of a pro

working on. It was late in the afternoon, but being an optimist, John ca

on-demand hotline at the Bureau of Labor Statistics.18 Zap, he got a cata

in an order, was surprised to find that he didn’t seem to be bothering the 

Bureau, and got his data by 10:37 the next morning. “Refreshing change

Some agencies are writing neat software packages and giving them t

HUD has an amazing little package that draws a city map and, block by 

where in the city all the HUD grant moneys are being spent.19 Among o

cities and interest groups use the software to play “what if” with alterna

use the money.

The Bond Wizard responds to requests from holders of U.S. Savings 

simple way to calculate the redemption value of their bonds. The Wizard 

Bureau of the Public Debt and is available as a diskette or on-line to Inte

For over a decade VA has been taking shots for using outdated techno

ical care for vets. But in Milwaukee, VA is setting medical standards for a 

nosis technique that is a breakthrough in the field of telemedicine. With th

expert pathologists in Milwaukee use a high-speed data link and microsc

to assist doctors diagnosing patients 218 miles away in Iron Mountain, M

technology gives results as good as those the pathologists get in Milwauke

ous payoff is better care for vets through wider access to experts. At the sa

keeps the lid on physician costs by making better use of specialists.

Just A Little Common Sense

So much of what is happening to improve customer service comes from 

ing federal employees the goal of serving customers and the freedom to 

their ideas are low-cost or money-saving testimonials to the return of com

One morning, Hugh Doran, Director of the VA Medical Center in 

walked to his office from his reserved parking space just outside the clinic e

parking space was in a lot also used by physicians and other health care pr

morning, Director Doran decided to charge a diverse group of employees, 

service officers with evaluating the overall parking situation. The group re

converting the existing reserved lot to patient parking. Now, Doran park

employees and walks through the new patient parking lot next to the bui

A few months later, Doran and his team were discussing the need 

accommodate primary care patients. They realized that the most conveni

primary care was on the first floor, and Doran decided to move the d

administrative offices out of their prime first-floor space. Very soon, the

37
Today that area is dedicated to serving over 3,500 veterans.

Moving administration around to make life better for veterans is a t

They did it in Lebanon, Pennsylvania, and Wichita, Kansas. In Boston, 

Philadelphia, and Biloxi, they moved to make first-floor space available 

reach facilities devoted to women’s needs.

Common sense changes save some money, too. Gail Mirsky works w

and witnesses at the Justice Department. She noticed that witnesses and 

needed to travel for the Justice Department had to book their own trave

trips, they sent in travel vouchers and waited to be paid. Gail figured t

the government could set up an account with a travel agent, where tra

booked at the government’s volume discount and paid directly, so wit

avoid being out of pocket for expenses. This works like a charm and al

government about $150,000 in the first 15 months.

Forest Service employees are also putting their money-making, com

ideas to work. Did you ever wonder what happens to all those big trees c

from city streets and parks? Most end up in landfills or, at best, in a c

or firewood stack. In New Jersey, the Forest Service showed a couple of 

to cut the trees for sawmill use, resulting in new wood products, jobs, 

for the cities.

Training

Finally, there is training for all the front-line workers who actually see 

customers. All the clerks waiting at the counters. All the operators poi

call. And training for the managers, too. They have to learn what the 

nies in business know—that employee satisfaction is the key to custom

tion. Some of the nation’s top experts in customer service have volun

time to teach at a couple dozen customer service workshops for federal 

A new organization, formed by cutting and combining three old age

U.S. Department of Agriculture, hadn’t settled on a name for their new 

but they had figured out that they existed to serve customers, the farme

communities. So their first goal was to train everyone—all 12,000 e

on customer service. This, they said, was the only sensible thing to do

the National Performance Review’s customer service program was not 

program. For them, it is the program.

They have a name now. It’s “USDA Rural Development.” The fir

training is done, and if you talk to the employees, they’ll tell you it 

difference. They learned things that let them understand what custome

through, and they know they are doing a better job. The nice fan m

getting says they are right.

The trick was to pull together all the new awareness of who the cust

what the customer wants, all the capability of the new organization a

equipment, and all the common sense and caring that federal workers b

jobs. The reorganized FEMA, for example, has done exactly that. With t

38
ards teams can move a lot faster, get plenty of resources on the job 

cover more territory in less time. But they had to be trained to spend s

extra time just listening to people’s troubles and reassuring them, like th

said they wanted.

It’s a big job to get an entire government turned around from focusing 

to focusing on results that customers want. The Clinton-Gore Admi

leading the way, and we think we’re getting there. But the only opinio

counts is the customer’s:

Dear FEMA,

The morning of August 9th [1995] completely changed our lives. Ver

Ohio, had five inches of rain in under one hour. Our basement began 

with water and when the pumps failed we knew we were in for some pr

The basement windows burst in with incredible force and within an ho

a half we had eight feet of water in the basement and five feet on our fir

We were completely helpless, and had just enough time to rush our tw

children to safety. We lost nearly everything we owned. I cannot b

explain the feeling of watching the water come up in the doors and w

Frantically we tried to move things but the water just came in too fast

truly terrifying and so incredibly sad that everything we worked so hard 

now five feet under water. It is a feeling that will never ever leave me. W

at that moment without a place to live, no clothes other that what we 

and a realization that we had no flood insurance (we were not in a floo

area). It was very devastating.

Then the Red Cross and FEMA arrived. I must tell you that the 

working for you are some of the nicest, most caring individuals we ha

met. They were so willing to do anything in their power to help. They 

wonderful, each and every one of them. They treated each person that 

through the door as if they were their own family.... They were so unbel

organized, whatever they said they would do—it was done. They had 

and got right back with us. They were always right on time and were so 

Thanks to you, and only you, we were able to get back on our feet. O

dren were truly traumatized by the flood and you enabled us to get thin

to normal, and get into a home again. We owe you and the Presiden

thanks than we can ever express. If I had the chance to tell the Presid

thing it would be that FEMA is the answer to prayers.

In closing there is nothing I could say as to how FEMA could work b

help its customers...

Sincerely,

David and Kelly Bodde, Jordan and David 21

39
SECRET THREE: 

GOVERNMENT IS IN PARTNERSHIP

WITH BUSINESS

The relationship goes way back. In the early 1800s, the U.S. governm

the resources of Saint Simons Island off the southern coast of Georgia

live oaks made the sides of the frigate USS Constitution withstand cann

iron. Almost a hundred and fifty years after Saint Simons made “Ol

famous, a group of island entrepreneurs turned the tables and drew on t

of the U.S. military—they leased large freezers from the local Navy b

closing and became SeaPak, the nation’s first commercial producer 

shrimp. Today, half the nation’s retail frozen breaded shrimp, millions o

breaded fish filets, onion rings, French toast sticks and cheese sticks 

Rich-SeaPak, whose corporate offices are still on Saint Simons Island

relationship with the government has had its ups and downs.

“The seafood industry traditionally had very adversarial dealings wit

(Food and Drug Administration), says Ray Jones, SeaPak’s corporate 

quality assurance and regulatory affairs. “In the early days, it was all 

pendent producers—basically fishermen—who didn’t want anything to 

government. It was a matter of getting away with whatever you could. S

ger companies like SeaPak started to be formed, the residue of that adv

tionship was still around.

41

All Regulators Will:

Cut obsolete regulations

Reward results, not red tape

Get out of Washington—create grass

roots partnerships

Negotiate, don’t dictate

February 22, 1995
them, dont give them anything. We could do that legally. The law 

have to let FDA come into the plant and go anywhere they want. But, w

to give them our production records or consumer complaints or let 

pictures. So we didn’t.

“One of the things the food industry has always feared is giving FD

customer complaints. Most customers give us good, legitimate feedba

they think about our product, but there are some complaints that we g

not be legitimate—such as where a customer alleges they found som

package of shrimp or fish. We were afraid that FDA might misinterpre

act to the complaints, so we chose not to let FDA see them. They wou

ask for the customer complaint file or some other records, we’d refuse

would go downhill from there.

“The thing FDA did that hurt us the most was taking samples of o

They would take the samples and send them off for analysis. Sometim

take weeks to get the results back. We were not required to hold the pro

market until the testing was finished, but we almost always did. So so

might have to hold two or three days production until we got the r

Even if we were sure the product was in compliance, we did not wan

possibility that FDA might find a problem and then we would have 

product if we had already shipped it. So we would hold the product an

“Keep in mind that, all this time, SeaPak was running a clean oper

very careful about the wholesomeness of our product. Not just when the 

up, but all the time. The only thing that was coming between us and 

bad attitude. Ours, at least as much as theirs.

“In 1992, I sat down with our CEO, Frank Holas, and looked at our l

tion report. We agreed it was ridiculous. We had set high standards o

ourselves—that’s what our customers demanded. We exceeded the 

requirements as we understood them. So why were we always at odds wi

We were as ethical or more ethical than anybody else we knew in the bu

should have had us up on a pedestal as an example. But it was the pits.

“At any rate, we got tired of the old adversarial relationship at just abo

time Clinton and Gore started pushing the agencies to try partnership. I

together in parallel. We called the FDA and said we’d like to talk. So we 

Atlanta (FDA’s regional office) and all the players were there—includi

inspector from Savannah. We asked them what we had to do to change t

said, ‘How about knocking off all these refusals when we ask for files a

We said we would if they would work with us to solve any minor vio

might find. We wouldn’t expect them to ignore real safety issues—we 

we had any of those anyway—but we didn’t want them to punish u

paperwork problems we could quickly fix, or force us to recall a produ

obviously phony customer complaint.”

42
us. I guess they wondered if we were for real. We let them see everythin

to see. Our lawyer almost had a heart attack. The key to this whole appr

to-one relationships. I told their inspector ‘Look, my job is on the line h

to have trust on both sides.’ We came out of that with the best inspe

we ever had. And they’ve been back three times to inspect us since and 

ting better.”

All the time SeaPak was changing its combative attitude, FDA was ch

FDA’s field investigators traditionally have been rewarded for detectin

and levying fines. But FDA has begun to emphasize public safety over 

action. This reorientation encourages more open communication betwe

industry. For example, FDA recently inspected a food-canning operatio

a malfunction in the sealing equipment, a serious problem that could h

botulism outbreak. Instead of launching a lengthy, formal enforcement 

inspectors quickly recommended to the cannery owners that they destro

the lot and repair the sealing equipment. They agreed and the problem 

immediately. This on-the-spot teamwork saved the agency and the com

sands of dollars and immediately protected consumers from dangerou

That’s the way of the future for FDA.

What does Ray Jones at SeaPak see in the future? One word: “HA

not clearing a fish bone. He’s talking about the Administration’s new sc

to insure the safety of our food.

“It means ‘Hazard Analysis Critical Control Point,’ and basically, i

method the Japanese used to beat the pants off our auto industry in t

and eighties. You build in quality all along the line—don’t wait ‘til the e

spot check the product. It’s a much better way to ensure food safety. In s

for the seafood industry, it means making sure cooked fish stays hot e

enough that no germs could possibly still be alive—and for raw fish, 

cold enough until you’re ready to cook it, so that no germs can grow. Th

be looking at our production control records to make sure we get things 

or keep things cold enough. They’ll check the product randomly to veri

checks. But the quality’s built in. We think it’s great. In fact, I’m trainin

a certified HACCP instructor so I can teach our suppliers and even our 

the new techniques.”

Ray explains why SeaPak welcomes a new regulation that gives FD

production records. “We think it will improve the consumer’s confidenc

Seafood’s taken a bad rap because of things like raw oysters. But shrimp 

ed fish filets are the safest foods you’ll ever eat. This new scientific ins

boost confidence. Five years ago, we would have been worried about l

government in the door. But we’re not afraid of that anymore. We trust 

We have the same goal—top quality food for our customers. We’re par

43
g p

Can federal regulators really be partners with industry? We are no

know that not everyone is going to play by the rules. There will still b

who will not comply. For them, we reserve every penalty and sanction 

allows. And because regulatory time and effort is no longer being wa

good guys, agencies can better focus their attention on the few cheaters

But experience shows that the vast majority do play by the rules—if t

ure them out, that is. In dealing with that majority who want to do the 

partnership can achieve very good results. If we agree on the goals, allo

innovation, and help each other all we can, that will increase complian

With that in mind, we called together all of the top regulators in Wa

repeated meetings to reach consensus on a new approach—a way to ma

make sense, a way that works better and costs less.

The Environment

The Environmental Protection Agency (EPA) used to focus on 

pollution. Now the idea is to prevent pollution, and to use partnership 

stream approach. EPA has found that when they let companies volu

pollution without the government dictating how they had to do it, t

companies jumped at the chance.

Since 1992, EPA has more than tripled membership in its “Partn

Environment” program, with over 7,100 companies now participatin

these partnerships was forged by EPA’s Regional Administrator in B

DeVillars, with The Gillette Company, which has a good track record 

ance. Under a program DeVillars calls “Star Track,” an independent 

Gillette’s compliance with environmental regulations, and makes the a

public. Gillette pays the cost of the audit and gets amnesty to fix n

violations without being fined. EPA makes no other inspections, and G

no other reports.

In March 1995, President Clinton offered this additional challenge to 

“If you can meet even higher environmental performance standards, we 

flexibility and cut red tape so you can find the cheapest, most efficient w

Today, EPA’s Project XL—for excellence and leadership—has more th

projects with industries, states, and cities getting underway around the c

Altogether, EPA’s partners removed from circulation an estimate

pounds of planetary poisons just in the last year.3 Since the companies 

way, instead of Washington’s way, they saved $360 million in the proce

a clear winner that EPA expects to sign up 10,000 new partners in th

years.4 (See Figure 4.)

44
Medicine

FDA has been cultivating partners in the drug industry, too. Their ne

“make safe and effective drugs available” to Americans, whether from th

ventional processes or from the newest biotechnology. FDA will never 

on safety, but that is not stopping them from cutting out bureaucracy. S

northern California pharmaceutical manufacturer, recently wrote the ag

ing it for its new approach, in which inspectors work with companies to 

correct problems, rather than just issue reports of deviations.5 Citing a 

to its facility by an FDA inspector, a company vice president remarked 

trating history of industry relations with the agency, noting that, “... s

1980s, relations between FDA and its regulated industries have been on 

disheartening decline.” However, the new approach taken by the FDA 

team was a refreshing change: “Our goal is to get safe and effective ther

market as soon as possible; you’ve contributed to this effort,” the execu

commenting on the new and welcome change in the FDA.

45

1991 1992 1993 1994 1995 1996 2000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

EPA Partnership Programs

Source: Unpublished data from the Environmental Protection Agency; data for

year 2000 is an estimate.
effective new drugs against cancer and other killers, and to market th

example, they worked with Merck & Co., Inc., to make an important 

the fight against HIV/AIDS available faster. Knowing that scientists at 

nearing a breakthrough on a new drug to treat HIV/AIDS, the FDA set 

teams for regulatory review and manufacturing inspection to reduce d

approval process. In particular, the Baltimore district office of FDA w

Merck’s Elkton, Virginia, facility to integrate the review process with th

tion of the new manufacturing plant and validation of the manufactur

As a result, Crixivan, one of a new class of protease inhibitors offering 

new treatment in the fight against HIV/AIDS, was cleared for the m

days, the fastest ever approval of a new drug by the FDA.

Worker Safety

When workers contact the Occupational Safety and Health Administ

are usually worried about life and limb in the place where they go to m

every day. The “old” OSHA would send off letters to the employers, som

didn’t have a clue they had a problem. In the meantime, the worker wa

month for action. Not anymore. Now OSHA calls the employer—usual

hours—and works out a plan to fix the hazard. The fax speeds documen

forth. It’s common now for hazards to be resolved in a week rather than 

Industry leaders like this “new” OSHA. The new OSHA emphasiz

partnership with companies, and it’s paying off. Joe Dear, Assistant 

Labor for Occupational Safety and Health, set up a team of experts fr

compliance officers, managers, union representatives, and support staff 

country. He asked them to design a new way to protect American w

“design team” created an approach that puts more stock in results than i

and they’re using it in field offices nationwide. The new way includes no

response to worker complaints but also partnership with companies 

long-range prevention of health and safety hazards.

One partnership is with Horizon Steel Erectors Company. Horizon 

with OSHA’s Atlanta office, Argonaut Insurance Company, and the De

Defense. Horizon, building a Defense facility in Florida, said that e

would use fall protection and that supervisors would enforce this comm

the first 90 days, Horizon had a 96-percent reduction in accident cost

hour—from $4.26 to 18 cents. In six months, the total cost of worker

tion claims fell from more than $1 million to $13,200.

There’s more. Horizon President Ken Sanders told OSHA that thre

saved in three separate falls because the workers were wearing fall pro

46
about the new OSHA.

Even though we believe the partnership approach has a big payoff, w

lose sight of the government’s basic responsibilities and will never 

ability to enforce the rules. In the Maine 200 program, OSHA told th

hazardous companies in Maine that, if they would run good safety prog

tional inspections would be a low priority. Worker safety soared, an

establishing similar programs nationwide. When one of the Maine 200 

reneged on its commitment and subjected its employees to extremely 

unsanitary conditions. OSHA stepped in quickly, cited them for doze

tions, and fined the company $3.6 million.

Pensions

The departments of Labor and Treasury are simplifying the rules and 

that ensure company pension plans are financially secure. Under the 

companies file less paper and do less mind-numbing math. More sma

will be able to start pension plans covering more workers. And the wor

more secure than ever that their money will be there when they reach ret

In August, President Clinton signed legislation to provide better pen

age and security for workers. The new law expands opportunities to sav

ment. It improves the protection of pensions and removes obstacles f

workers who want to bring their retirement savings with them when 

jobs. It also simplifies the pension rules to make it easier for small busi

up and run pension plans. Ten million workers in small businesses co

from the new, simplified 401(k)-type plan—no red tape, just a simple 

Health Care

The Health Care Financing Administration is shifting from red tape 

doctors and hospitals can focus more time and attention on their p

example, doctors will no longer have to sign an additional form for e

attesting to the fact that all of the medications and treatments they o

proper. That alone eliminates 11 million forms and frees up 200,00

doctor time each year. And instead of holding frequent inspections to 

procedures are being followed and all the paperwork is in order, HCFA 

to see how the patients are doing. And they will publish the results t

sumers make informed choices. They will inspect laboratories more 

focusing on those with past problems, and they will stop wasting mone

lab tests that are done by machines that rarely make mistakes.

47
y

Every year, Americans consume over 43 billion pounds of beef, pork

try—more than 160 pounds per person.6 Ensuring that meat is safe fo

families is an important governmental mission. For most of the l

federal inspectors have carried out that mission by using the old “pok

system, in which an overworked cadre of U.S. Department of Agricultu

physically checked 95 percent of all that meat, using their eyes, noses, a

try to detect any problems.

In July 1996, President Clinton announced the overhaul of USDA

poultry inspection process. The new system is HACCP, the same scient

that are making seafood safe. The government sets the goals, but gives e

ny the flexibility to design a plan to meet them. It replaces a reliance on o

cedures with new scientific testing that will keep diseases out of the foo

better than the old inspections ever could. The new food safety system b

ernment regulation and industry responsibility. Industry will assume so

new equipment and technology, including its own scientific testing to 

safety, while USDA will conduct other testing and oversight to ensure t

is meeting its food safety responsibility. These changes will add an est

tenth of one cent to the cost of a pound of meat—and will save an estim

lion to $4 billion a year in the cost of food-borne illnesses. That’s not mu

to pay for a system that will far better ensure the safety of our food supp

Consumer Products

The Consumer Product Safety Commission is a government agency 

virtually every American. It ensures that nearly 15,000 consumer goo

jurisdiction do not pose undue risks to their users. Under Chairperson A

the CPSC is a model of partnership with industry to achieve goals. W

industry, the agency has developed over 300 voluntary standards, while 

ing only 50 mandatory, traditional rules—a six-to-one ratio. This app

results faster, and at less cost. For example, in April 1994, the CPSC pres

mation to manufacturers of children’s clothing that drawstrings on ja

and sweatshirts posed a significant risk and were, in fact, killing childre

with industry, the CPSC crafted a voluntary agreement to remove th

drawstrings from most of the 20 million children’s garments manufactu

ly in the United States, without having to issue any new regulations. T

was addressed in the span of four months—less time than it would hav

to draft typical government regulations.

Similarly, the CPSC worked with manufacturers to address the haza

dow blind and drapery cords posed to small children. Since 1981, ov

dren between the ages of eight months and four years had died after b

48
deal with this tragic situation. Working together, the agency and indust

program to eliminate the hazard. This was accomplished in six months 

without going through the expensive and time-consuming regulatory p

importantly, it will save children’s lives.

Drug Interdiction

One of the latest alliances between business and government is the Bu

Smuggling Coalition, which started last August in San Diego and is s

other ports. Led by Mattel, Inc., in cooperation with the Customs 

Coalition is stopping drug smugglers from using shipments of toys and 

from overseas. It is purely voluntary, but Mattel executives are having 

recruiting dozens of other patriotic business leaders to join the alliance

Helping our Partners

The U.S. Business Advisor gives business one electronic stop to all 

that deal with business.8 The Advisor was designed the way a commerc

product would be. Originally shown as an “alpha product” by Presiden

the White House Conference on Small Business in 1995, with the Presi

tion it was designed and redesigned based on user groups of business cu

These users from big and small businesses around the country work

product and told us what to change. They loved the idea of one electron

wanted to change just about everything else. So we did. A central the

thinking was that government is drowning them in information—they 

it easy to find what we need and then let us do business.” They wante

to make transactions, such as applying for permits, or to find out how to 

lems, like getting rid of a health hazard.

The new Advisor, released this past spring, lets business search 106

World Wide Web addresses for information by typing in simple English 

“show me the regulations for cutting Christmas trees on federal la

President typed that in, and the Advisor answered. Results are returned 

with a key passage highlighted.

The Advisor provides several ways to quickly reach agency home pa

critical to business. The SBA’s home page is often mentioned as one o

most popular and is always adding new, “cool” stuff. Responding t

requests for on-line transactions, SBA just put their fast-track loan appl

line to be filled out and submitted without paper. Another Advisor link 

ness to the OSHA home page. Employers can get “how to” advice th

think you need to get rid of asbestos in your building? OSHA has an ex

49
tronic tools address cadmium, lead, and the hazards of work in confine

The Advisor is a modern, state-of-the-art, electronic one-stop shop

some shops made out of good old bricks and mortar, too. Houston’s U

Store for Small Business dispenses nearly any service or information 

business owner needs from the federal government in one place—wit

ernment there, too. So far, the General Store has had about 4,000 cu

independent survey says they love it. One customer, Roy Owens, got 

loan, tax advice, and even contract leads with the Post Office. Roy says 

work than he can handle, and he’ll “go anywhere, any time to tell anyb

store is the best thing he’s ever seen from government.” Business owner

same kind of one-stop service at the U.S. General Stores and SBA’s “on

tal shops” in Atlanta, Kansas City, Philadelphia, and Boston.

EPA is making it easier for businesses to comply with environmental 

EPA has funded Small Business Compliance Assistance Centers for th

ishing, printing, automotive repair, and farming industries to help these 

nesses identify—in plain English—low-cost compliance and pollution 

strategies. EPA also waives or reduces penalties for first-time violators if 

corrects the problem or comes into compliance with the law. And to t

EPA is simplifying more than 70 percent of its regulations on busines

nating 1,400 pages of obsolete rules.

There are also 88 U.S. Export Assistance Centers where companies t

sell goods overseas can receive the collective assistance of staff from Com

Small Business Administration, the Export-Import Bank, and state and 

cies. These centers and the 1-800-USA-TRADE number place all 

export assistance resources at anybody’s fingertips.

The Treasury, Labor Department, and Social Security Administ

teamed up with state and local governments and private organizations t

paperwork burden of reporting and depositing payroll taxes by the natio

lion employers. Reports will only have to be filed with one agency, wh

tribute the information to all federal, state, and local agencies that need 

for withholding and reporting income tax, social security, unemploymen

and Medicare information. There is even an electronic version in the wo

be on the Internet. Federal tax deposits are now being made electronica

law says 1,500 big businesses must deposit payroll taxes electronically, bu

it so easy that 64,000 more companies do it voluntarily.

The biggest assistance that many small businesses need in order to 

ground, or to expand, is a loan. The SBA has cut way, way back on th

paperwork and time it takes small entrepreneurs to obtain the backing 

SBA has also boosted the amount of private capital available. The resu

themselves: SBA arranged 55,000 small business loans last year, more th

number for 1992, for a total of $7.8 billion—a real shot in the arm for 

ness and the economy.

50
y

Some of the new partnerships are going so well that, frankly, it is a l

rassing. 3M just nominated EPA for an award, for goodness sake.9 The 

al trade community in Miami named Customs Commissioner George 

“Man of the Year.” As Tommy Roland said, some people might thin

doing our job because we’re not hassling everybody anymore. Well, ha

was our job, and corporate America never was the enemy. The enemy 

contaminated food, workplace and product hazards, and the small p

people who smuggle drugs, cheat on taxes, and deliberately pollute o

ment. Our job is to stop all of them, and we are doing it better than 

with new partners eager to help get the job done.

51
SECRET FOUR: 

GOVERNMENT IS PARTNERING

WITH COMMUNITIES

“And there’s something else we can do together

We can reinvent government. We can switch from

red tape to results. We can put the days of

almighty, holier-than-thou, mister-know-it-al

Washington behind us. We can become partners.

— Vice President Al Go

Remarks to U.S. Conference of Mayo

Austin, Texas, July 23, 19

“Clinton and Gore are trying to change this huge bureaucracy. It’s lik

three-mile-high mountain, and they’ve made it to mile post one. N

gotten to the one-mile post before. But there’s still a long way to go.” 

city leader with a national reputation for straight talk—a successful city 

reinventor, Philadelphia’s mayor, Ed Rendell.

“Most of our dealings with the federal government are with HUD” (H

Urban Development), Rendell explains. “HUD would get an A+ from m

board. Henry Cisneros is a great Secretary of HUD—he’s the embodi

Administration’s policy to cut regulations and red tape, and to give local 

the maximum amount of flexibility to use money most effectively.”1

“Empowerment Zones are an example,” says Rendell. Philadelphia an

ing Camden, New Jersey, share one of 105 new flexible federal grants to re

urban and rural communities. These communities were chosen from ove

cants, based on the strength of their strategic plans and community part

Grants of up to $100 million, along with tax breaks to attract new bus

“Empowerment Zones” in six big cities and three rural areas; two more c

grants of over $100 million without tax incentives. There are smaller gr

breaks for 94 other areas (64 urban, 30 rural) called “Enterprise Comm

told, Washington is providing more than $1.5 billion in flexible grants an

$2.5 billion in tax incentives. The communities also receive special assistance 

red tape and regulatory barriers that prevent the innovative uses of federa

53
grass-roots effort. To qualify, the community residents themselves, with h

and county governments and local businesses, drew up plans to solve w

Washington, saw as their biggest problems. Most communities that got 

more businesses, more jobs, and better low-cost housing, and they plan to 

of that not with handouts, but with low-cost loans so the money will be r

Rendell continues: “The Empowerment Zone really lets the people in 

nities take control and be responsible for the outcome. But that was kin

HUD to implement without lots of red tape, because the law itself had th

it. I’m more impressed with things like HUD’s housing regulations. They

of some of the most onerous, inflexible requirements on cities, like the 

rule on public housing. That rule said that if we tore down an abandon

that had 580 units, we had to construct 580 new units, even though there 

anybody living in there for five years. It was the same thing with single u

go to some blocks in Philadelphia where everybody’s done a great job wit

es—put money into rehabilitating their houses—and right in the middle 

there are two HUD scattered housing units that are terrible—places for d

places where kids got into trouble, a big negative on the neighborhood

past, we couldn’t demolish them without plans to build two new ones. 

there without ever being demolished or rehabilitated, doing nobody any g

shown the common sense to eliminate that rule. So we’ve brought down 

high-rises and scattered units.” Philadelphia is not the only city that has 

get rid of those high-rise nightmares. In the past few years, 30,000 uni

razed, more than in the previous 12 years. And President Clinton recen

to tear down another 70,000 in the next four years—a total of 100,000 ur

gone.

Tearing down houses is not the ultimate goal. HUD has also crea

Partners in Homeownership, comprising 58 national organizations 

lenders, real estate professionals, home builders, nonprofit housing pr

federal, state, and local governments. The goal is to achieve an all-time 

homeownership—67 percent of all American households by the end of th

creating up to eight million additional homeowners. The partners are mak

By the spring of 1996, the national homeownership rate was 65.1 perce

64.2 percent at the end of 1994 (an increase of more than 1.5 million 

This is the highest rate since 1981, and the sharpest year-to-year increase in over 

“HUD’s made a wonderful change,” according to Mayor Rendell. 

same story on money for economic development. They’ve given us all k

bility to use that money most effectively. It’s a night and day difference 

way. They’ve done an excellent job. They haven’t gotten rid of all the reg

burdens, but they’ve gotten rid of a tremendous share of them.”

What about getting rid of all of them? Would the mayor welcome the 

plete freedom some in Congress advocate in the form of block grants? “

dom, it’s baloney,” says Rendell. “First of all, freedom from federal rules 

54
sympathetic to the cities than the feds are. So wed never see all that freed

“But the main thing is that even if we got freedom from rules and 

could only operate maybe 10 or 15 percent cheaper. They’re talking abou

cuts. You might be able to be just as effective if you had freedom and 10 

money. But no way are you going to be effective with 25 percent less. N

Rendell moved on to discuss the Environmental Protection Agency. “

administrations, EPA was the single worst bureaucracy, promulgating reg

avoided risks of one-in-a-trillion and had huge price tags to local g

They’ve gone from that absurd starting point to . . . fair. For example, th

dealer here who handles old refrigerators. An EPA regulation says that you 

a red tag on them certifying the safe disposal of freon. He employs a ton 

jobs that pay $20 an hour, and they were about to fine him more th

dollars, which would put him completely out of business, because he di

tags right.3 We argued it with them at the local level, the regional lev

Washington level. I think we got it worked out, but they were going to 

out of business.”

“But on the plus side, EPA’s Brownfields effort makes a lot of sense,” 

The Brownfields program is EPA’s new way of getting abandoned in

cleaned up and put back into the economy. The first success was in Clev

at a 20-acre eyesore owned by Sunarhauserman, Inc. It had been sitting i

limbo land for years, with prospective buyers and developers afraid to tou

much because of the actual pollution but because the clean-up liability w

Now it is being cleaned up and houses four new businesses that contrib

jobs and $1 million to the local tax base.4 One of the latest Brownfi

is right inside Philadelphia’s American Street Empowerment Zone. EPA 

that the site of a small, abandoned gasoline tank farm can be sealed, pav

developed by businesses that are attracted by the Empowerment Zone’s t

and low-cost loans.

Here is a recent example from the West coast: The creosote-soaked 

Wyckoff Company’s wood treatment plant on Seattle’s waterfront is abou

a world-class port facility for American President Lines. If EPA had not be

ner, the 1,000 jobs that are coming would have gone south—literally—

would have lain there oozing poison into the harbor while the lawyers 

court for years. But EPA and the Port of Seattle worked out a common-se

is good for everybody.

“Look, there’s clearly plenty of work to do yet—two more miles of 

climb,” says Rendell, going back to his original metaphor. “But things a

ed in the right direction.”

55
, , 

Each year, the federal government attaches strings to nearly a quarter 

dollars and gives it to state and local governments5. The strings that 

make the state and local governments go through strange motions th

citizens and state and local governments alike.

Tillamook County, Oregon, is on the end of some of those strings. 

their health department, Sue Cameron, gives some good examples of 

they go through. “We get federal money to immunize kids. That’s a gre

it’s not that simple. There are six different kinds of federal immuniza

One kind is for diphtheria. Another is for hepatitis-B, but only for teena

a different one for hepatitis-B for infants. Not a different shot—ju

money. But that’s not all. For the best protection, babies should get the

within two weeks of the day they’re born, and most babies are born in h

common sense tells you to have the hospital nurses give the shot whil

are there. But before President Clinton launched the ‘Vaccine for Ch

gram, the shots had to be given in public or private health clinics. That r

some babies from ever getting their shots.

“And the bookkeeping! With each different kind of money for ea

kind of thing—not just the different kinds of immunization, but nu

grams, mental health, teen pregnancy, and so on—we have to keep sepa

That means that everybody who works here—from the receptionist to t

is keeping track of which federal program they work on each minute to 

sheets for Washington.”

Ask around Washington about all that red tape and it becomes clear 

programs and all the rules are based on good intentions. All the 

attached for good reasons. This is true; everybody in Washington is tryin

good government. But, as Gandhi said, “Good government is no subst

government.” Somehow, we have to give government back to the peop

So how about having the feds cut all the strings and just hand mo

block grants? Mayor Rendell said the result would be too little freedo

too little money. Here is what another potential recipient of block grant

Jono Hildner, and he is the essence of Oregon—tall, fit, and outdoorsy, 

rivers for fun. He also runs everything from public housing to the do

Clackamas County, Oregon. Never heard of Clackamas County? In t

was the end of the Oregon Trail. Today, it is the beginning of Chr

nation’s most prolific producer of Christmas trees. “Block grants are 

Jono says, “but I don’t think the feds should just leave the money on a s

I’ve seen that tried before. The money disappears and you’re never sure w

for it.”

56
gp

So where is the happy medium? We do not want all these Washingto

more. But we do want to make sure we get good results for all that mone

Cameron and Jono Hildner are up to their necks in the happy medium 

in something called a “performance partnership.”

In Oregon, the partnership is known as the “Oregon Option,” and it 

of the future.6 In December 1994, Oregon’s Governor and numerous 

county commissioners signed an agreement with Vice President Gor

Cabinet Secretaries. They agreed to pilot a redesigned system that is:

• structured, managed, and evaluated on the basis of results;

• oriented to customer needs and satisfaction;

• biased towards preventing problems, not just fixing them afterwar

• simplified and integrated as much as possible, delegating res

for service design, delivery, and results to front-line, local-level pro

Government reinventors believe in the adage, “Lead, follow, or get out 

In the Oregon Option, we are following. Through surveys in the early 

people of Oregon sorted out which issues were most important to them—

up rivers, increasing adult literacy, and reducing teen pregnancy. They a

performance goals—like going in three years from 18 pregnant teens in 

to only 10. They called the goals “Oregon Benchmarks.”7 And they sta

down the old-fashioned state and local bureaucracy that stood in their w

they invited the feds to join them—to follow their lead. We followed pr

“The feds don’t make us fill out those stupid time sheets anymor

Cameron. “And the seven different immunization funds have been co

Jono Hildner adds, “The biggest improvement is communication. I’ve go

in Washington who knows me now, who I can talk to, who understand

lems and helps us get them fixed. I think the feds should be doing a lot m

Performance Partnerships

We agree, Jono. Based on the success of the Oregon Option, President 

asked Congress to combine 271 separate grants and programs, which n

of strings attached, into 27 performance partnerships that are focused on 

like Oregon’s benchmarks. Each of the President’s performance partne

would consolidate funding streams, eliminate overlapping authorities, c

cial incentives to reward results, and reduce micromanagement and wa

work. So far, Congress has approved performance partnerships for rural d

and the environment. The recently enacted Farm Bill created three new 

opment performance partnerships in which a large number programs—f

57
with input on local needs from state and local officials, and focused on 

We are eager for Congress to complete its work in other areas where t

has proposed performance partnerships, and we and the states are ready 

soon as Congress does. The Department of Health and Human Service

ple, has met with over 1,000 folks around the country—from states, lo

consumer groups—to identify the public health results we all want and 

measure progress. We also have partnerships with states and cities eve

could think of, in every way the current laws allow.

President Clinton has established a Community Empowerment B

major federal domestic agencies to support community-driven econom

tion. The board helps break down the bureaucratic walls that sometime

cies from responding effectively to state and local partners. The Presiden

ed agencies to eliminate unnecessary regulatory and legal impediments. W

ing control and responsibility back to the people—providing top-down 

bottom-up reform.

The Environment

“These partnerships are based on a shared vision 

environmental protection that is based on tr

respect, and a commitment to changing the way we 

business. These grants are one of the top 25 [envir

mental] initiatives for reinventing government t

President Clinton announced last March 17 [1995

— EPA Administrator Carol Brow

Last May, EPA signed the first performance partnership grant agree

Colorado and Utah. Through negotiation, EPA and states agree upon 

and priorities to achieve better environmental outcomes. The new, one

replace up to 16 separate agreements the states used to have to negotia

the states to shift money as priorities change, without time-consumin

EPA. Gone are the 16 separate reports; there is just one report under 

ship grant. It is just the kind of change in government that we envisione

of the first National Performance Review report: “From Red Tape to R

EPA is creating partnerships at the local level, too. When EPA beca

at a potential Superfund cleanup site in north Boulder, Colorado, se

were entrenched in litigation about groundwater contamination. 

informed the parties as to the potential risks involved in the status qu

58
Superfund list. Next, EPA invited all parties—including citizens—to 

responsibility for resolving the disputes and cleaning up the water. 

months, they had come up with a solution and a way to pay fo

This approach saved millions in federal dollars—and saved the comm

being immersed in the Superfund program for the next decade.

EPA, Energy, and other federal agencies, along with 22 state en

agencies, have pioneered a successful partnering effort to improve 

process for contaminated toxic sites. Together, these groups break dow

ers to using innovative environmental technologies for remediation an

of hazardous and radioactive wastes. Partnering has streamlined th

process for environmental technologies and moved states and fede

toward results-oriented cleanup.

The Bureau of Land Management has created 24 resource advisory 

the Western states to advise the Bureau on issues concerning manage

public’s lands and resources. These councils, developed under the Fede

Committee Act, are made up of 12 to 15 members appointed by the 

the Interior from among individuals nominated by the public and stat

Three groups are represented on these councils: business; conservationis

citizens, including representatives of local government and Indian tribes. 

have been very successful at bringing diverse—and often competing—

the table to deal with each other on issues of mutual concern. The app

great promise in successfully solving long-standing problems of 

management. Many individuals who were initially skeptical of the coun

quite supportive of their work and are optimistic that they will be a str

resolving disputes about the uses of public land in the West. 

Connecticut Neighborhood 

Revitalization Partnership

In 1995, Connecticut passed an innovative law, the Neighborhood R

Act, which requires the state and its municipalities to break down 

response to neighborhoods’ comprehensive plans and measurable goals 

their economies and neighborhoods. In 1996, the federal governmen

party. This partnership allows federal barriers to be overcome along wi

riers and allows federal, state, and local partners to work together 

Connecticut’s poorest communities through economic development an

hood revitalization. The Neighborhood Revitalization Zone process 

dents, businesses, and municipal officials to develop a strategic plan 

their neighborhood. Grassroots planning and community organizing 

components of this concept, just as in the Oregon Option, Empowerm

and Enterprise Communities.

59
g 

The Clinton-Gore Administration fully understands the burdens stat

ities face when the federal government imposes mandates without pro

quate funding. In October 1993, President Clinton signed the first exe

requiring all federal agencies to consult with state and local organiza

promulgating any rules or regulations that impose new unfunded mand

In March 1995, President Clinton signed the Unfunded Mandates 

which restricts the ability of Congress to impose costly mandates on stat

and tribal governments.11 Based on analyses required by the Congressi

Office, mandates costing states and localities $50 million or more in an

five years after becoming effective are not permitted—unless waived 

votes in both the House and Senate. The Act also requires greater interg

consultations in the administrative rulemaking process and allowance 

expensive means of complying with federal regulations.

Welfare and Health Care Reform

One of the best pieces of evidence that Washington is changing its wa

ing a partner with communities instead of a know-it-all—is its willing

the way for welfare reform. We all have the same goal, to make welfar

to a decent life, instead of a hand-out for life. But there are different 

there. While Congress was debating the different ways over the past fe

President let states try them to see what worked best. The Clinton Adm

has approved welfare demonstration projects in more than 40 states—tw

as the previous two administrations combined.12

The new, national welfare reform legislation incorporates many of th

being tried by the states. The Indiana welfare reform plan, which is ty

scores of demonstration projects approved by the Clinton Administ

12,000 able-bodied welfare recipients on a “placement track” where the

help finding a job—including subsidies for employers. Parents have t

kids in school and get them immunized. Adults receive up to two yea

help finding a job, then their welfare benefits run out. Children’s benefi

but there are no new benefits for additional children conceived on w

President approved Indiana’s plan in late 1994, and between March o

March of 1996, Indiana’s welfare rolls dropped by 22 percent.13

President Clinton has done the same thing for states wanting to try 

reforms. Tennessee, for example, can now expand health care coverage to o

people who were previously uninsured. To date, the President has a

comprehensive health care reform demonstrations similar to Te

working in partnership with states to increase the use of managed care, 

quality of care, and expand coverage to 2.2 million low-income uninsured 

60
They are ideas from the communities themselves—from the people who 

the problems best and who will live with the results. To be fair, Wash

have some experts with a wealth of experience to share and, of course, t

resources that communities need. But now, communities don’t hav

Washington’s rules to get Washington’s money. It is the people’s 

Washington is becoming the people’s partner.

Fighting Crime

Some of our partnerships are making America’s streets safer. Legi

President Clinton fought for is putting 100,000 community police on 

and crime in our cities is now at its lowest rate in years. But fighting cr

than just a matter of brute force. The Justice Department has teamed u

and local police on some innovation that really works.14 It is called, a

enough, COPS, for Community Oriented Policing Services. Just look 

for Tampa, Florida: A few years ago, Tampa had a tough crime proble

with a $3.8 million partnership grant from the Department of Justice, 

COPS squad joined forces with the local police and made a 23 percent d

crime category, with drug busts up by 51 percent.16

How? First, COPS got out of the patrol cars and mixed in with the 

The Tampa COPS immediately investigate crimes themselves, instead of 

information and responsibility to detectives. COPS keep kids in school 

streets, a tactic that has drastically reduced crime during school hours. 

auctions where kids bid community service hours in exchange for 

unclaimed bicycles. COPS organized the area’s first Girl Scout troo

are starting a Boy Scout troop. COPS organized crime-watch groups 

volunteers who canvass their communities and help eliminate crimes such 

street-drinking, curfew violations, and prostitution. For every COPS o

community, there are dozens of watchful citizens who take pride in th

and safety of their community. This is government in partnership with 

Another crime-fighting partnership, Operation Safe Home, teams lo

law enforcement with the resources of HUD, Justice, Treasury, and th

National Drug Control Policy. This innovative partnership has not on

gangs, drugs, and violence, but has also brought together a range of cr

tion initiatives to ensure long-term safety. Since 1994, Operation Safe 

made a nationwide improvement in the safety of public housing with 

8,000 arrests and the confiscation of 1,000 weapons as well as $5 milli

and drug money.17

61
“Over the last two years, the Congress and th

U.S. Department of Education have mad

tremendous progress in transforming the federa

relationship with the states on education. It ha

changed from one based on regulatory complianc

to one based on accountability and performance.

— Robert V. Antonuc

Massachusetts Commissioner of Education

Some of the most impressive examples of the way government is chan

nership are in the Department of Education. In Goals 2000, the 

Department led states to set challenging academic standards for their st

then the reinvented Department of Education let them get to work.

longer have to submit their plans to the experts in Washington for appro

need to have a plan, a schedule for progress, and a way to measure progre

don’t have to report their progress to Washington, either; they report it to 

If selected federal laws or regulations stand in the way of progress, the 

Education has the authority to waive them—he has waived more than 1

States that really want to get on board—those willing to waive their ow

let local school districts be accountable—can waive federal rules w

asking Washington for permission. The program is called Ed-Flex. The 

success is simple: improved academic performance of the students. Eigh

signed up and there is room for four more; the legal limit is 12, for now

Since the goal of all this academic freedom is better academic perfor

look at some results. Maryland, one of the Ed-Flex states, reports a 52 

in the number of schools whose students are doing well at the third grad

are up by 13 percent at the fifth grade level and by 32 percent at the e

Forty percent of all students statewide met the state standards—that’s a 

gain over 1993.21

It is no surprise that flexibility, local control, and measured ac

produce good results. Kentucky has been doing it since 1990 with great 

we copied the idea from them. Kentucky schools manage themselves th

cils that include teachers, parents, and community members. They se

measure success by looking at things like student test scores, dropout r

at getting jobs, and how many students go on to college. Schools that 

goals get bonuses that school staffs decide how to spend. Schools that d

the grade get special help from the state.

62
Results? Grades have been going up steadily the last two years, e

fourth, eighth, and twelfth graders. The fourth graders were best of all—

went up about 10 percentage points overall, and a whopping 16 perce

in reading.22 Way to go fourth graders! Way to go Kentucky!

From teaching kids how to read to fighting crime in the streets, fro

like Philadelphia to rural counties like Tillamook, from both coasts an

between, people in governments closest to the people are seeing the ch

better. The National Performance Review is leading the shift 

Washington’s well-intentioned efforts at good government toward the 

power of self-government. Ed Rendell is right—we are at the one-mi

three-mile mountain. Let’s get a good grip and keep climbing.

63

The National Education Goals

BY THE YEAR 2000:

• All children in America will start school ready to learn.

• The high school graduation rate will increase to at least 90 per

• All students will leave grades 4, 8, and 12 having demonst

competency over challenging subject matter in the core acad

subjects.

• U.S. students will be first in the world in mathematics 

science achievement.

• Every adult American will be literate and will possess the know

and skills necessary to compete in a global economy and exercis

rights and responsibilities of citizenship.

• Every school in the U.S. will be free of drugs, violence, and 

unauthorized presence of firearms and alcohol and will of

disciplined environment conducive to learning.

• The nation’s teaching force will have access to programs fo

continued improvement of their professional skills and 

opportunity to acquire the knowledge and skills neede

instruct and prepare all American students for the next cen

• Every school will promote partnerships that will inc

parental involvement and participation in promoting the so

emotional, and academic growth of children.
CONCLUSION

I haven’t tried to compile an exhaustive list of all the problems the P

I have faced trying to reinvent government, or of all the successes we

there just aren’t enough pages in an easy-to-read book to be fair to all the 

ing government reinventors that are helping us. I have invited t

Secretaries and heads of some of the larger government agencies to te

they are proudest of having accomplished—their stories fill the followin

if you’d like an even more complete story about how the federal govern

ting its act together, turn on a computer and call up our World Wid

There are hundreds of success stories there.

The point of this short book is just to show you that we “get it”

Clinton and I understand what’s wrong with how the government has 

things—and we are turning things around. The battle against the old f

government, central control, and mistrust isn’t won yet, but everything 

the right direction. And, we have a plan to continue the changes.

First, we are turning some of today’s agencies into smaller, sleeker o

that won’t look like government at all. They will be like private compa

real CEO on contract to cut costs, and a free hand when it comes to th

government rules about procurement, personnel, and the like. The Bri

ment did this a few years ago, and costs have been dropping steadily. W

their good idea.

On customer service, we’ll stick our necks out even further. The top b

agency that touches millions of Americans—like the IRS and VA and C

on the line to make dramatic improvements in service this year. There’s 

page where you can read their specific goals and let them know what you 

Regulatory agencies are on orders to make partnership with businesse

dard way of operating. We have tested it long enough to know it incre

ance with the laws of the land. After all, compliance is what we’re after—

ingless hassles. Now we can move beyond pilot programs for partners

mainstream.

The same goes for federal grants to state and local governments. No m

to follow the federal rule books to receive federal funds. We will focus on 

consider replacing many grant programs with performance-based partne

to dispel the last vestiges of nameless, faceless bureaucracy, we will give 

community partners a single, live federal employee, complete with nam

who will help them with any and all business in Washington, regardle

agency’s turf it is.

65
would be lucky to have a workforce like the federal governments. We n

in it: better tools and training, closer partnership between labor and m

more opportunities and challenges for our senior executives.

All of the progress we have made, and all of our plans for the future 

on one goal—restoring the American people’s faith in their own system 

ernment—the people’s belief that we can solve our national problems 

together through the institutions of self-government. Faith in governme

point, and that lack of faith threatens the nation’s future. Governm

everything, and it certainly shouldn’t try. But some national problems 

violence, poverty, and pollution can be solved only by Americans work

through our system of self-government. If we lose faith in that, we a

future to chaos.

Reinvention restores our faith. Americans find government service 

over the counter and over the phone. Business leaders find federal regu

to use common sense and to look for common ground. Communities fi

coming down between agencies and levels of government, and beyond t

they find partners ready to do whatever it takes to solve problems. Re

securing the future of self-government in America.

So, if you see government changing, don’t keep it a secret. Tell your f

business associates, your neighbors. Tell them government can do thin

the first to admit that government isn’t the answer to all our problem

government has to be part of the solution, more and more, we American

on getting results.

Al Gore

66
NOTES

Introduction

1. The Postal Service is not included. It has grown because it has m

to deliver, but it is financed primarily from the sale of stamps, n

taxes.

2. For historical trend data on federal employment, 1965-1995, see 

Appendix F, Table F-1.

3. Unpublished calculation prepared by the Office of Management 

Budget, based on civilian pay and benefits budgeted for fiscal ye

4. Office of Management and Budget, Budget for Fiscal Year 1997, 

Tables, “Table 1.1 - Summary of Receipts, Outlays, and Surpluse

Deficits: 1789-2002” (Washington, D.C.: Government Printing 

1996), p. 20.

5. Office of Personnel Management, Office of Workforce Informat

Central Personnel Data File (unpublished data).

6. General Accounting Office, Federal Downsizing: The Costs and S

of Buyouts versus Reductions-In-Force (Washington, D.C.: Gover

Printing Office), GAO/GGD-96-63, May 14, 1996.

7. Office of Personnel Management, Office of Workforce Informat

Central Personnel Data File (unpublished data). This figure (11

outs) includes all civilian defense and non-defense personnel wh

outs between January 1993 and January 1996.

8. Office of Personnel Management, Office of Workforce Informat

Central Personnel Data File (unpublished data). Between Janua

and January 1996, 239,286 personnel left federal employment. 

21,125 were separated involuntarily.

9. Stephen Barr, “A Simple Suggestion Worth Millions: Civil Serva

Expected to Mean Big Savings in Procurements,” Washington Po

October 13, 1994.

10. Vice President Al Gore, Common Sense Government: Works Bette

Less (New York: Random House, 1995), p. 26.

67
Common Sense Has Come to the Federal Governm

1. Unpublished data on drug seizure activity in passenger processing 

by U.S. Customs Service, Miami. The data include seizures as o

July 31, 1996.

2. Unpublished data on FTS2000, the Federal Telecommunication

from the General Services Administration.

3. General Accounting Office, Acquisition: Purchase Card Use Cuts

Procurement Costs, Improves Efficiency (Washington, D.C.: Gove

Printing Office), GAO/NSIAD-96-138, August 6, 1996.

4. Public Law 104-106, National Defense Authorization Act for FY 

February 10, 1996; Executive Order 13011, Federal Information 

July 17, 1996.

5. Unpublished data from the Office of Management and Budget.

6. Letter from Peter J. Hannes, President, Special Markets Division, Jo

International, Inc. to Mr. Dennis Dudek, Department of Defense, 

1996.

7. Department of Defense, Office of Assistant Secretary (Public Aff

“Defense Acquisition Pilot Programs Forecast Cost/Schedule Sav

To 50 Percent From Acquisition Reform,” News Release No. 13

March 14, 1996; and unpublished data provided by the Departm

Defense.

8. See Presidential Memorandum, Streamlining Procurement Throug

Commerce, October 26, 1993; Executive Order 12931, Federal P

Reform, October 13, 1994; Executive Order 12979, Agency Proc

Protests, October 25, 1995; and Executive Order 13011, Federal

Information Technology, July 17, 1996.

9. See Appendix C.

10. Unpublished data from the Federal Communications Commissi

11. Al Gore, Creating a Government That Works Better & Costs Less, (Wash

D.C.: Government Printing Office, September 7, 1993), pp. 13-14.

12. For more information on streamlining management, see Append

13. James Thompson, “The Reinvention Revolution,” Government E

Vol. 28, No. 5, May 1996, pp. 39-41. See also, General Accoun

Office, “Management Reform: Status of Agency Reinvention Lab E

(Washington, D.C.: Government Printing Office), GAO-GGD

March 20, 1996.

14. President and Mrs. Harrison were afraid to touch the light switc

civil servant was assigned to switch the lights on in the evening, 

burn all night, and return in the morning to switch them off. Ja

68
pp. 561, 572, 587.

15. Congressional Testimony by James King, Director, Office of Per

Management, before the House Committee on Government Ref

Oversight, October 12, 1995.

16. Each agency now has the authority to do its own hiring (Public 

52), but many agencies choose to hire through the Office of Per

Management’s phone-in center.

17. Executive Order 12871, Labor-Management Partnerships, Octobe

18. U.S. Mint, “Denver Mint Receives National Partnership Award 

Improved Labor-Management Relations,” Press Release,

February 14, 1996.

19. Presidential Memorandum, Expanding Family-Friendly Work Arr

in the Executive Branch, July 11, 1994; Presidential Memorandum

Supporting the Role of Fathers in Families, June 16, 1995; and Pre

Memorandum, Implementing Family Friendly Work Arrangements

June 21, 1996.

20. Michael Serlin, “The Competitors,” Government Executive, Vol. 2

June 1996, pp. 29-33.

Secret Two: Government Is Serving People Better

1. Undated letter from Robert J. Lacombe to Shirley Chater, Comm

Social Security Administration.

2. Letter from Lloyd Hartford regarding the Dedicated Commuter 

Project, April 12, 1996.

3. Anonymous comment sheet from the Dedicated Commuter Lan

4. Letter from Chris Petersen to the Department of Energy, Energy

Information Administration.

5. Letter from Michael R. McMeekin to D. James Baker, Undersec

Oceans and Atmosphere, National Oceanic and Atmosphere

Administration, May 6, 1996.

6. Undated letter from an unidentified police officer to Eljay B. Bo

Director, United States Secret Service.

7. Undated letter from Alexander Schuster, veteran, to Director and 

Staff of a Veterans Affairs hospital.

8. Public Law 96-511, Paperwork Reduction Act of 1980, December 

94 Stat. 2813.

9. Bill Clinton and Al Gore, Putting Customers First ‘95 (Washingto

Government Printing Office), October 1995, The electronic ve

located at “http://www.npr.gov”.

69
11. Postal Service, “It’s A Record—90 Percent On Time Delivery!” P

Release No. 49, Washington, D.C., June 4, 1996. The U.S. Pos

Internet address is “http://www.usps.gov”.

12. President Clinton directed agencies in 1993 to appoint chief ope

cers—normally the deputy secretary of the department or the he

agency. He then convened two dozen of the chief operating offic

departments and largest agencies as the President’s Management 

share their best practices and advise him on ways to implement r

13. Dalbar Financial Services, Inc., “Social Security Administration 

Customer Service,” Press Release, Boston, Massachusetts, May 3

14. Although the General Services Administration promised to have 

in five cities, seven cities have already signed up. They are: Balt

Chicago, Denver, Indianapolis, Los Angeles, New York, and San 

15. Unpublished calculation from the Office of Management and B

16. PEBES stands for “Personal Earnings and Benefit Statement,” an

located at “http://www.ssa.gov”.

17. Send your geology questions by e-mail to “ask-a-geologist@usgs.

18. The fax number for the Bureau of Labor Statistics’ Fax on Dem

202-606-6325.

19. The World Wide Web address for HUD’s city maps is

“http://www.hud.gov/communit.html”.

20. The World Wide Web address for the Bond Wizard is

“http://www.ustreas.gov/treasury/bureaus/pubdebt/savwizar/htm

21. Undated letter from the Bodde Family to the Federal Emergency

Management Agency.

Secret Three:

Government Is In Partnership With Business

1. Bob Bauer, “A Swimming Time for Shrimp; Frozen Sales Up in 

Supermarket News, Vol. 44, No. 52, December 26, 1994.

2. Unpublished data provided by the Environmental Protection Ag

3. Calculation based on unpublished data from the Environmental 

Agency.

4. Unpublished data provided by the Environmental Protection Ag

Environmental Assistance Division.

5. Letter from Jack Cohen, Ph.D., Vice President for Quality & C

Scios, Inc., to Gregory Bobrowicz, District Director, Food and D

Administration, Alameda, CA, May 29, 1996.

70
Livestock Slaughter 1995, March 1996.

7. Jerry Knight, “Meat Inspection Changes Produce an Unusual Un

Washington Post, July 9, 1996, p. D1, citing Administrator Micha

of the Food Safety and Inspection Service, U.S. Department of A

8. The U.S. Business Advisor is located at “http://www.business.go

9. The EPA 33/50 team was nominated by 3M for Vice President 

Hammer Award and received the award in June 1996.

Secret Four: 

Government Is Partnering With Communities

1. To learn more about HUD partnerships with Philadelphia and o

visit the HUD homepage at “http://www.hud.gov”.

2. Department of Housing and Urban Development, “Empowerm

and Enterprise Communities,” Community Connections. To lear

about the Empowerment Zone/Enterprise Community initiative

homepage at “http://www.ezec.gov”.

3. EPA believed that some of the scrap refrigerators still contained 

which could have escaped into the atmosphere. Freon is harmfu

environment because it destroys ozone.

4. Environmental Protection Agency, “Removing Liability Barriers 

Encouraging Development,” unpublished information, June 20, 

5. Office of Management and Budget, FY 1997 President’s Budget, A

Perspectives, “Aid to State and Local Governments,” March 1996

6. Memorandum of Understanding, “The Oregon Option” (unpub

December 1994, p. 1.

7. Oregon Progress Board, “Oregon Benchmarks: Standards for M

Statewide Progress And Institutional Performance,” Report to th

Legislature, December 1994.

8. Public Law 104-127, Federal Agricultural Improvement and Refor

1996, April 4, 1996.

9. Environmental Protection Agency, “Environmental News,” Press 

Washington, D.C., May 16, 1996.

10. Executive Order 12871, Enhancing the Intergovernmental Partner

October 1, 1993.

11. Public Law 104-4, Unfunded Mandates Reform Act of 1995, March 

12. See Appendix A, “Department of Health and Human Services,” 

details on the welfare demonstration projects.

13. Unpublished data from the Administration for Children and Fam

Department of Health and Human Services.

71
fill out a one-page application.

15. Pam Noles, “No Tax Increases in New Budget,” The Tampa Trib

31, 1996, p. 1.

16. Unpublished information from the Department of Justice, June 

17. Nicole Marshall, “65 Arrested in Sweep of Public Housing,” Tul

May 31, 1996, p. A8.

18. Robert V. Antonucci, Massachusetts Commissioner of Education

Federal Role in Education Reform, Testimony before House Sub

on Early Childhood, Youth and Families, House Committee on 

and Education Opportunities, June 21, 1995.

19. Department of Education, Goals 2000: Increasing Student Achiev

Through State and Local Initiatives (Washington, D.C.: Governm

Printing Office) April 30, 1996.

20. The Ed-Flex states are: Kansas, Oregon, Massachusetts, Texas, O

Vermont, Maryland, and Colorado.

21. Maryland State Department of Education, “High Expectations P

Better Schools, State School Superintendent Grasmick Says,” Ba

MD, Press Release, December 12, 1995.

22. “Kentucky Accountability Results,” The Cincinnati Enquirer, Fe

1995, p. B2.

Conclusion

1. The National Performance Review homepage address is

“http://www.npr.gov”.

2. Customer service standards can be found at

“http://www.info.gov/Info/html/customer_service.htm”.

72