Otis White

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What Smart Mayors Can Learn from the Turnaround of Central Park

December 12, 2018 By Otis White

Of all the urban turnaround stories of the past 50 years, none is more impressive to me than the restoration of New York’s Central Park. When I got to know Central Park in 1973, it was sliding into urban wasteland. Vandals had wrecked its buildings and defaced its statues. Every surface was covered in graffiti, even its rocks. Trails were overgrown with invasive shrubs, and the park’s magnificent meadows had been trampled into dust bowls.

And, then, of course, there was crime. In 1981, police recorded 781 robberies in Central Park, but that was surely only a fraction of what took place there. Many victims did not bother to report crimes. Even the cops who patrolled the park did so only in the safety of two-officer cars.

If this is still your image of Central Park, then you owe it a visit. The 840-acre park, whose first section opened to the public in 1858, has been returned to its original beauty. People are using it in record numbers (there were 43 million visitors last year), but no longer abusing it. The trails are inviting and the grass is lush and green again. And as one who has walked across it recently, I can report it is as safe as any place in the city.

So how did this great turnaround happen? There were many factors, but the most important was that New York found a way of managing public spaces through shared responsibility. Founded in 1980, the Central Park Conservancy was the first nonprofit to take the lead in restoring and managing a major city-owned park. Since then, scores of similar organizations have sprung up around the country, from the Balboa Park Conservancy in San Diego to the Piedmont Park Conservancy in Atlanta.

If you’re thinking of starting a nonprofit like this in your city, I have good news. The founder of the Central Park Conservancy, Elizabeth Barlow Rogers, recently published a memoir, “Saving Central Park,” that will take you inside the Conservancy’s amazing success. You’ll learn Rogers’ “three Ps”: “patience, passion, persistence.” You’ll discover the value of a vision. In her case, it was a desire to return the park to its 19th-century design. And you’ll learn why a detailed plan of restoration is important for guiding staff and raising money. (It gave the Conservancy, Rogers explains, “the equivalent of a donor shopping list.”)

These are valuable things to know if you’re starting such a group. But I’d like to turn things around and ask what local-government officials could learn from the Central Park experience. If a group of citizens wanted to form a group to restore a park in your city, what should a smart mayor do? 

The first thing is to recognize what nonprofits are good at and where they are weak. Their strengths are their focus, inventiveness, and ability to raise money and muster volunteers. 

And weaknesses? They’re not good at managing public perceptions. At one point or another, it seems, the Central Park Conservancy angered nearly every group claiming an interest in the park, from birdwatchers to tennis players. And when it did, it was vulnerable to the “who appointed you?” charge. Lesson: A smart mayor will coach nonprofits on politics and occasionally bail them out of controversies.

Not surprisingly, in the case of Central Park’s renaissance one group with a high level of suspicion was city parks employees. Had the Central Park Conservancy not started when it did, as the city was still on the edge of bankruptcy, it is hard to imagine that the parks department would have ever welcomed the nonprofit’s help. Lesson: A smart mayor will spend time counseling city employees on the value of strong outside partners, because all they will see at first are threats.

Finally, a smart mayor will be patient because strong nonprofits aren’t born that way. They become strong over time, as they accomplish things, learn from their mistakes, recruit a strong board and staff, and find their vision and voice.

So a smart mayor will give a fledgling conservancy some space to grow. The Central Park Conservancy worked for 17 years with nothing more than a handshake agreement with three mayors. Only in 1997 did the city feel confident enough to turn the keys of the park over to its staff. Today, every worker in Central Park, including city employees and Conservancy staff, reports to the Central Park administrator, who happens to be the president of the Conservancy. (Important to note: The Conservancy also supplies three-quarters of the park’s budget.)

That level of competence, public trust, and institutional strength isn’t built overnight. And a smart mayor doesn’t just give power away. But when she finds the right partners, she’ll trade power for results.

A version of this posting appeared on the Governing website.

Photo by gigi_nyc licensed under Creative Commons.

How Communities Can Thrive in a Post-Newspaper World

August 29, 2018 By Otis White

I understand why most local-government officials and many other civic leaders don’t like reporters. Some journalists can be uninformed, easily distracted by the sensational, or strangely uninterested in the bigger and better stories that are happening around them. But, man, are you going to miss these folks when they are gone.

That’s because the void left by the loss of independent, professional reporters will be filled by far less reliable sources of news and other information: rumor, gossip and particularly social media, which so often are dominated by angry or frightened people with little interest in facts. And this will be much, much worse.

This isn’t a warning about the future. It’s happening now as newspapers reduce coverage or simply close up shop, so that local governments that were once covered daily are left in silence. The situation is so dire in New Jersey that the state legislature recently put up $5 million to encourage somebody, anybody, to start covering these “news deserts.”

But assuming no one starts a professional news organization in your community, what can a local government do to connect with its citizens in a post-newspaper world?

I put this question to a former mayor of a city known for its tight bond with citizens. Decatur is a close-in suburb of Atlanta that’s beloved by urbanists for its walkable, transit-oriented downtown and pleasant neighborhoods. It has a well-run local government and was recently named an All-America City by the National Civic League.

Call a meeting in Decatur and the citizens will turn out. I know this because I was involved in a planning effort there in 2010 that began with a large-scale citizen engagement effort. Hundreds of people participated in long meetings about what the city could be. Many of their ideas are being realized today.

Not that you would know any of this if you lived elsewhere in the Atlanta area. That’s because the daily newspapers stopped covering Decatur’s city commission meetings long ago. The only time reporters show up at Decatur City Hall today is when something bad happens, which is blessedly infrequent.

So how has Decatur maintained such a tight bond with its citizens in a post-newspaper era? That’s what I wanted to know from Bill Floyd, who was a city commissioner for 22 years and mayor for most of that time.

I started by asking about a colorful monthly newsletter called Decatur Focus that the city mails to every household. Was this the way Decatur kept citizens informed, basically by starting its own publication?

Well, Floyd said in his polite way, Decatur Focus was useful for communicating the city’s plans. “You have to stay in touch with people,” he said. And he was amazed by how many people read the newsletter and commented on it.

But, no, it wasn’t the newsletter alone. In fact, Floyd went on, there is no single way cities can communicate in a social media world. Nor would a single communicator be effective, even one at city hall. Rather, he said, you need an army of communicators in the social media, most of them residents. And Decatur has built just such an army through its endless citizen-engagement efforts.

The bedrocks are Decatur 101 and the Citizens Police Academy. Decatur 101 is what it sounds like, two-hour classes on how the city works, delivered over a seven-week period. Other cities have programs like this; this one is simply done better. Started in 2000, Decatur 101 became so popular that in 2006 the city began running two classes, with morning and evening sessions. There’s a waiting list of citizens who want a spot. Later, Decatur 101 inspired the Citizens Police Academy, a 10-week course on the local police and criminal-justice systems. (There’s even a Junior Police Academy for 11-to-14-year-olds.)

The result of these and other city programs, Floyd said, is that there are hundreds of citizens who know how to get information from the city. So, if a rumor starts on a neighborhood website about, say, car break-ins, or if someone spreads falsehoods about a rezoning case, a citizen who has been through Decatur 101 or the Police Academy is bound to see it, call a city official and have the facts in short order. “And when somebody says, ‘Here’s what the city says,’ it just stops the rumors cold,” Floyd added.

Decatur did not create its citizen-engagement programs in response to social media. There were no social media in 2000. It started them because it believed that informed, involved citizens made it a better place. That the city discovered a way to thrive in a post-newspaper world was a happy, unintended benefit. Wouldn’t accomplishing the same thing be good news for your community?

A version of this posting appeared on the Governing website.

Photo by Felix63 licensed under Creative Commons.

When Bad Things Happen to Good Governments

February 7, 2018 By Otis White

When we talk about good management, we’re really talking about two things: Doing the right things and doing them in the right way. The vast majority of management advice is about the second part, doing things in the right way.

But what about the first? How does a government know the right things to do? And what can you do if a government loses its way?

It isn’t a hypothetical question. I’ve seen governments that were lost. Many cities staggered through the 1960s and 1970s, attempting one half-hearted solution after another as their middle classes fled, downtowns declined, and businesses moved to the suburbs. It took decades to find a set of strategies for turning things around.

And today, it seems to me, it is states that are most at risk, due not so much to overwhelming problems as to divide-and-conquer politics and ideology. We’ve seen it recently in places like Kansas, North Carolina, and Wisconsin, where narrowly elected legislative majorities rammed through laws punishing labor unions or gay citizens, recklessly outsourcing public services, or cutting taxes to the point that education funding was in jeopardy.

I’ve detailed elsewhere why some states have lost their way. But a more interesting question is, what can we do now? How do you put a government back on track once its elected officials have jumped the track?

My answer: Take a page from what local governments learned about turning to the citizens. Starting in the 1980s, some cities started convening residents in open-ended discussions about what they needed and wanted, using a process known as “visioning.”

It was based on two principles. First, you ask citizens things they know from their own experiences, such as the kind of city or neighborhood they want to live in. Second, you let them talk about these things first in small groups, and then report out their ideas. The process tends to refine the ideas and ground them in reality.

Out of this process came demands for many of the things that make cities work today: walkable neighborhoods, lively downtowns, new investments in parks and trails, greater collaboration between schools and local government, transit improvements, and bike lanes. In recent years, these conversations have turned up a new concern, that urban success is depriving cities of the human diversity that fuels them.

Could such conversations be held across an entire state? And if so, who should hold them? State legislatures would hardly be the ones to ask citizens how to fix the problems they’ve played such a large role in creating.

The answer to the first question is yes, there’s no reason we can’t scale visioning to the size of a state. As for the second question, I would like to nominate a surprising convener: state political parties.

My reason is simple. Bad politics are at the heart of what ails state governments today. And the way to fix bad politics is with good politics. If one party (probably the minority party) listens to citizens in a systematic way, reports honestly what they say, and builds its legislative agenda around those desires, it will change politics for the better . . . and possibly make a majority out of the minority party. Warning: Running a dishonest visioning process, one in which you stack the meetings with partisans or report only the ideas you like, is worse than running no process at all. My advice: Trust the process.

But trust it to do what? What is it that citizens are likely to say in these meetings? Well, no one can know for sure until the meetings are held, but based on my experience at the local level, they’ll ask for things that can make their lives and communities better. Sensible things like better public schools, greater access to vocational and higher education, more transportation options, help with economic development, and amenities that might help their cities or towns hold on to their young people. For the most part, they won’t demand things that punish other citizens, satisfy extremist groups, or reward special interests.

In this way, citizens can help focus states once more on their serious work in human development, economic development, and infrastructure. This won’t thrill the ideologues. But it’ll delight the citizens.

A version of this posting appeared on the Governing website.

Photo by Josh Graciano licensed under Creative Commons.

How Citizen Engagement Could Save State Politics

October 24, 2017 By Otis White

Until recent years, I did not pay much attention to state politics. My interests are local, with a particular interest in how people come together to solve problems in cities and regions.

But increasingly I’ve found myself worrying about state governments—and, in particular, their legislatures—because something troubling is happening there. The immediate problem is that we are seeing a wave of “preemption” legislation, laws aimed at forbidding cities from doing things state legislators don’t like.

Now, I am not opposed to all preemptions. If local governments habitually pass ordinances discriminating against minority groups, rewarding cronies, or favoring one form of real estate development over another, I think state governments ought to step in. (The courts usually do a good job of stopping isolated problems.) I also think state governments have a role in preventing cities, counties, school districts, and authorities from spending themselves into insolvency.

But this wave of preemptions has nothing to do with bias, corruption, favoritism, or profligacy. It’s about forbidding local governments from doing things that legislators oppose for political reasons—things like ordinances protecting gay citizens, enacting minimum wages, taxing sugary sodas, restricting fracking, or regulating the use of plastic shopping bags. The Texas legislature even considered several bills limiting cities’ ability to preserve their tree canopies.

You may or may not agree with these local decisions. But I see no reason for one level of government imposing its political judgments on another’s. Especially when the preempting government is the more distant one.

Still, if this were just about heavy-handed legislatures, I wouldn’t be as concerned as I am. We’ve had overbearing legislatures before. It’s how and why legislators are coming to these judgments that is new and ominous.

Many of the preemptions are driven by out-of-state corporations that don’t want to deal with these issues city by city. Having a state legislature ban all cities from taxing soft drinks, regulating plastic shopping bags, or imposing rules on Uber and Lyft saves lobbyists from fighting battles in dozens of city halls.

So the corporate interests are clear. Selfish, lazy, and damaging to good government, but clear.

But why would a legislature go along with these things? Why would legislators run roughshod over a sizable portion of their voters and pick a fight with a formidable group of local elected officials?

Well, in part because they can. In most cases, legislatures can extend or withdraw home rule as they wish. And in part because the benefits of doing so (contributions from out-of-state corporations) outweigh the risks (blowback from citizens, mayors, and the media). Again, the interests are clear. Venal but clear.

O.K., but why now? Why are we seeing this wave of special-interest preemptions today and not 20 years ago? And how are legislatures getting away with it? Three reasons, I think.

First is the decline of the mainstream news media, which kept a watchful eye on state legislatures in the 1970s, 1980s, and 1990s. There simply aren’t as many reporters in statehouses today as 20 years ago. So when legislatures act in ways that benefit the few at the expense of the many, there’s a good chance no one will notice.

Second, we’ve seen the rise of organizations that marry ideology with self-interest and are aimed specifically at influencing legislatures. The most obvious is the American Legislative Exchange Council or ALEC, the right-wing organization behind many of the preemption measures and a lot of other bad ideas that have spread from state to state. (For a glimpse of how ALEC works, read this New York Times editorial.) ALEC has little-brother organizations in nearly every state now, right-wing “think tanks” supported by big corporations and ideologists, churning out dubious research and “model legislation.” (Who are the people in your city writing op-ed articles that call public transit a boondoggle and promote private-school vouchers? It’s likely someone on the payroll of one of these state-level mini-ALECs .)

Finally, some state politicians have learned to use distraction and division as a strategy. That is, they use emotional but symbolic issues (in the 1990s these were called “wedge issues”) to create smokescreens for their real interest, which is passing laws that few would support—if they knew about them.

This explains the bathroom bills, which are unadulterated acts of demagoguery. You probably remember the one in North Carolina that set off a national firestorm of protests and boycotts, resulting in the legislature’s retreat. Surely, given that experience, no other state would go down the same road, right? On the contrary. Similar bills have been introduced (and passed) in other states.

Why? Because, in truth, the North Carolina bill accomplished what it set out to do: It divided voters over symbolism while distracting them from issues of substance. The odds of a North Carolinian sharing a public restroom with a transgender person were small to begin with. The chances that any harm would come if he did were . . . zero. And yet for a year this became the dominant political issue in North Carolina—more discussed than education, transportation, water, economic development, the environment, or any other issue that might actually affect the state’s citizens.

Over the years, ALEC and its allies have gotten good at driving wedges and laying down smokescreens with constitutional amendments forbidding gay marriage, crazy concealed-carry laws (and now, laws permitting silencers!), so-called religious liberty laws, elaborate voter-suppression efforts, and other legislation aimed at riling half the citizens of a state while rallying the other half. This is politics at its worst: distracting, destructive, and dangerous. And unless we figure a way to stop the demagoguery, things will grow only worse.

But how could we do that? I have a suggestion: Let a political party begin listening to the citizens. Not in a metaphorical sense, but literally. Start holding meetings around the state asking citizens what they need and want.

In doing so, we will quickly see that, given an opportunity to think about things, citizens aren’t interested in wedge issues; they’re interested in “web issues” (to use a Bill Clinton phrase). That is, issues that nearly everyone agrees are important, that unite us rather than divide us.

I’ve seen it over and over in years of citizen engagement work at the local level. With space to think about what they truly need and want, citizens don’t ask for voter-suppression laws, handgun silencers, privatized education, or the right to chop down trees. They ask for better public schools, more transportation options, new forms of economic development, greater access to broadband, and more ways of keeping young people in cities, towns, and rural areas.

But hold on. Meetings convened by a political party? Held across an entire state? Open to any citizen? Could anything good come from such an effort?

The short answer is yes. The longer answer is . . . well, let me explain.

Why engaging citizens is right for today. The most obvious reason is because politics are so broken in our states. We need something to shock legislators back into focusing on what their citizens need and want, and not what out-of-state corporations and wealthy ideologues are willing to pay for.

And there is nothing more convincing to a politician than hearing citizen after citizen, from one end of the state to the other, asking for the same basic things from their government. Not in an angry protest or online petition. Not in a town-hall screaming match. But in calm, neutral discussions in small-town church basements, suburban school cafeterias, and neighborhood libraries.

Can it be done? And can it be done across an entire state? Yes. And yes. We do it at the local level all the time, so we don’t lack experience in holding civil, meaningful discussions about public policy or the ability to make sense of what the citizens are telling us. We lack a motivated sponsor. (If you’re interested in how to create civil conversations, start with this, then read this, then this. Oh, and know that we’ve held inclusive, polite, forward-looking, communitywide conversations for a long time . . . at least since the 1940s.)

O.K., but could we hold these discussions across an entire state? There’s no reason to think not. I’ve been involved over the years in visioning projects that convened a dozen or more meetings in different parts of a city or county. A state is larger, of course, but the principles are the same: to hear the voices of citizens, go to different parts of the state and ask essentially the same questions. (Here are some good ones: If your community could be everything you’d like it to be, what would it look like and how would it work? What would need to change? What needs to stay the same? Then ask: If the state government could help your community achieve these things, what are the most important two or three things it should do?)

But why ask a state political party to do it? Because it’s the surest way of repairing our broken state politics. Nothing focuses attention like serious competition. If one political party is convening meetings across the state asking citizens what they need while the other is cozying with special interests and engaging in demagoguery, citizens will notice. And eventually so will the leaders of both parties.

But why a political party? Why not a candidate? This gets us a little deeper in the thicket of state politics. State political parties are pretty feeble organizations. That’s because most of them don’t do much but carry out light-housekeeping election responsibilities and wait for candidates to emerge. They have neither the ambition nor the resources to do anything else.

Which strikes me as odd, given how important the labels “Democrat” and “Republican” have become in the past 30 years. Book after book and scholarly article after article have documented the rise of partisan identity in America. Some even see partisanship behind where people choose to live today. In many states, having an “R” or “D” next to your name is enough to ensure your re-election or doom you to defeat, depending on the district. No company in America has brand loyalty as great as America’s political parties.

So if you are the minority party in a one-party state, why not try to change your brand? Why not give those who would never consider voting for a Democrat a reason to see things differently? I believe having a state political party, year after year, holding civil, open, constructive conversations with voters—and publishing what it hears—could be just such a game changer.

But couldn’t a candidate do this kind of thing even better than a party? After all, plenty of politicians have begun their campaigns with “listening tours” in which they asked voters what’s on their minds. One candidate, Lawton Chiles of Florida, kept it up for his entire campaign. In 1990, Chiles asked people to tell him what was working in their communities all the way to election day. (The voters must have liked this unusual way of campaigning. They elected him governor.)

The problem is that most of the listening tours are just political tactics that are quickly dispensed with. Chiles’ efforts weren’t—he truly seemed to learn something by talking with voters—but he didn’t stick with it once he became governor. Candidate “listening tours,” then, aren’t sustainable. Nor are they systematic.

And that’s what we need: A new form of state politics based on listening to citizens in ways that are systematic and sustainable. And we can’t depend on candidates to do this. We need a permanent sponsor, an organization that sees value in engaging citizens year in and year out and is in a position to change politics.

And the only entity I can think of that fits this description is a political party.

So what would it take for a political party to take on a statewide citizen engagement process that continues indefinitely?

It takes a leader. Not a candidate or office holder (elected officials have their hands full with their own campaigns), but a donor, staff member, or party activist. Someone in a position to answer the three “P” questions of public policy: How do we manage the politics (inside the party)? How do we bring the public along (by positioning this new initiative)? And how do we pay for it (by finding donors willing to support such a bold new initiative)?

But what about publicizing and holding the meetings and making sense of what the citizens say? Isn’t this difficult? Well, it does require a talent for organization, a devotion to listening and reporting things accurately, and some skill with facilitation, but none of these is particularly hard to learn. (Trust me, I’ve learned all these things.) You can find consultants who can help, but if the party does it long enough, it will create these skill sets among its own staff.

So let me summarize: We have a way of changing the toxic nature of politics today. It has been thoroughly tested at the local level. It could change the way voters look at the two parties—to the benefit of the one bold enough to undertake such an initiative. It could bring purpose to one of our most underutilized political institutions, state political parties. We need just one thing: a leader willing to fit the pieces together in her state and make it work.

This sounds good, but wait a minute. What would we do with the results of all this citizen engagement? If the Georgia Democratic Party or the California Republican Party went from city to suburb, town to country asking people what they wanted, if it made sense of what the citizens needed and wanted, if it created a report listing the top 10 (or 20) needs . . . then what?

In essence, nothing. Publish the results on a website (videos from the meetings would be nice) and send out a press release. (“Here is what the citizens of Georgia told us in 12 open-ended conversations across our state.”) Then repeat the following year.

After the first year, nothing will happen. Probably not much will happen after the second year. But about year three, the media, reformers, and your party’s leaders will start paying attention—and so will the opposition party’s leaders.

Among other things, they’ll notice that, in conversations across the state, in neighborhood libraries, suburban school cafeterias, and small-town church basements, citizens asked for the same things, over and over. They’ll also see that the citizens have big ambitions for their communities—a bigger vision than elected officials—but are realistic about the state’s role. And as these things sink in with legislators, the tide will turn.

As legislators and the news media see what the citizens really want, the demagogues will look foolish and those peddling special-interest legislation will be unmasked. Members of the party sponsoring the citizen meetings will rush in with bills responding to the citizen needs. Members of the other party will cast doubt on the meetings, but that won’t last long because the needs and wants will be so . . . obvious. And if they persist in denying the needs, that’s fine too. Because they won’t be the majority party for long.

My aim in putting this idea forward isn’t to elect more Democrats in Georgia or Republicans in California, but to change state politics. It probably would elect more Democrats to my state’s legislature because it would give voters a reason to reconsider the party. After all, it’s a great tactic. (“The Democrats listen to Georgia’s citizens, the other party listens to out-of-state interests.”)

But it’s more than that. It’s a way of reorienting politics to listening to citizens and treating them as equals in decision making. No government, state or local, should ever do things for citizens. It ought to do things with citizens. With, that is, the understanding that individuals, families, nonprofits, institutions, charities, religious organizations, and other governments have roles to play in making places better. All progress in complex societies is collaborative.

It begins with some simple questions: What do you need and want? What are you as citizens willing to do to achieve these things? What could others in your community do? And what could the state government help with?

And there’s only one group that can answer these questions: the citizens.

Postscript one: I’ve learned from long experience that one thing is essential in citizen engagement, and that is integrity. Manipulate the meetings by asking leading questions or packing the sessions with supporters, and you’ll be spotted as a fraud. You must make a sincere effort to get a cross-section of citizens to attend, and you must ask open-ended questions whose answers are recorded publicly and reported accurately.

Likewise, as you compile and analyze the comments and search for common themes, your methodology must be made clear. It has to answer this question: In combing through thousands of comments made by hundreds of citizens, how did you decide these were the things they wanted?

Trust me, the other party will criticize everything you did. So be prepared to defend everything you do. (Having videotape of the meetings will help.)

Postscript two: Small detail but big consideration. Should you let elected officials speak at these citizen meetings?

My answer: no. Elected officials (of either party) should be welcome to come, observe, and—if they wish—join the citizens as a citizen in talking about local needs. But allowing them to address the meeting would open the process to charges that the results were manipulated (see postscript one). These meetings should be about listening to the citizens. And that’s what elected officials should do in them: Stand to the side and listen attentively. They just might learn a thing or two.

The Worst Management Idea of the 20th Century

April 12, 2017 By Otis White

I started paying attention to business management in the late 1970s, and my timing could not have been better. I saw all the business fads of the late 20th century paraded before me, from “management by objectives,” “Theory Z,” and “in search of excellence,” through “reengineering the corporation,” “good to great,” and “Six Sigma.” At one point, I wondered, are all these management theories actually the same ideas with new titles?

The fads seemed harmless enough—and may have been useful if they encouraged executives to think about their businesses in new ways. But one struck me, then and now, as dangerous. And that was “pay for performance.” Even more frightening, it has made its way into government, with terrible consequences.

In one sense, there’s nothing new about paying people for performance. Factories have long paid for “piece work”—that is, for each unit a worker turns out. Sales people often receive commissions, which are a share of each sale. And if you tip a waiter, a hair stylist, or a parking attendant, you’re paying for performance.

But extending this idea to employees who work not as individuals but as team members and are involved in complex tasks and not simple, easy-to-measure transactions is a new idea. Like a lot of bad new ideas, it came out of Wall Street.

It began with CEO pay, which Wall Street wanted tied to stock appreciation. If you want to know how executive pay became so grotesque with so little to show for it, that’s the reason.

But why stop with CEOs? In the 1980s and 1990s, the idea trickled down in corporations, aided by an army of consultants. It was easy to see the appeal. Employers wanted their staffs to work harder with better results. They wanted to hold on to the best workers and didn’t mind if the others left. And if pay—in the form of incentives for performance—could do all that, why not use it?

There’s just one problem: It doesn’t work in the way you’d think. Oh, it produces results all right; but some can be downright destructive.

Consider the Wells Fargo scandal that became public last year. The bank set goals for its customer-service representatives that most people considered unrealistic. One was to “close” (that is, sell) 20 new bank accounts a day. And one way was by convincing existing customers to set up at least eight separate accounts with the bank—checking, savings, credit cards, mortgage, and so on. (The CEO had a phrase for it: “Eight is great!”)

You can probably guess how this turned out. To keep their jobs and earn bonuses, employees began opening accounts for customers without their knowledge. And not a few rogue employees; thousands were involved in the fraud.

That’s a problem in a high-pressure environment like a bank. But it couldn’t happen in a government, could it? Well, it has happened. The Atlanta public schools’ test-cheating scandal of 2009 began when the superintendent announced that she would measure principals’ performance by their schools’ progress in standardized tests. For years this strict-accountability approach brought extraordinary gains in test scores—until it became known that some principals and teachers were changing their students’ answers in what were called “erasure parties.”

It happens once in a while in police departments, too, when a zealous chief decides there ought to be a quota for traffic tickets. (“Eight is great!” or something like that.) And predictably, cops start writing tickets just to meet the quota. Not exactly a formula for great police-community relations.

If setting quotas and paying for performance can turn into a disaster, then how should we think about compensation and motivation? Here’s the sensible alternative:

  • Pay employees a fair wage that compensates them for their skills, experience, and education.
  • Encourage teams to set their own measures of performance, ones that they will commit to meeting or exceeding.
  • If you feel compelled to offer bonuses for superior performance, award them to the teams and not individuals.
  • Understand that there are other motivations that drive people to work smarter and harder. You’ll find that, once employees have reached a livable wage, personal pride and the esteem of colleagues and superiors work as well as bonuses with none of the disastrous side effects.

In other words, if you want people to perform complex tasks and do so at a high level, don’t cheapen their work with simple measurements and simple-minded rewards. Try coaching, praise, promotions–and maybe a simple “thank you.”

A version of this posting appeared on the Governing website.

Photo by Anil Mohabir licensed under Creative Commons.

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  • Seven Habits of Highly Successful Civic Projects
  • When Bad Things Happen to Good Governments
  • How Citizen Engagement Could Save State Politics
  • How Odd Couples, Complementary Needs, and Chance Can Change Cities
  • A Better Way to Teach Civic Leadership
  • The Worst Management Idea of the 20th Century
  • How to Deal with a Demagogue
  • What Government Is Good At
  • Return to Sender
  • The Loneliness of the Courageous Leader
  • A Better Way of Judging Candidates
  • How to Build an Army of Supporters
  • A Beginner’s Guide to Facilitation
  • The Temperament of Great Leaders
  • Units of Civic Progress
  • Leadership as “a Kind of Genius”
  • How to Read a Flawed Book About Cities
  • A Mayor’s Test for Good Decisions
  • How to Manage a Crisis Before It Happens
  • Lesson Seven: Process and Results

Categories

About Otis White

Otis White is president of Civic Strategies, Inc., a collaborative and strategic planning firm for local governments and civic organizations. He has written about cities and their leaders for more than 30 years. For more information about Otis and his work, please visit www.civic-strategies.com.

The Great Project

Otis White's multimedia book, "The Great Project," is available on Apple iTunes for reading on an iPad. The book is about how a single civic project changed a city and offers important lessons for civic leaders considering their own "great projects" . . . and for students in college planning and political science programs.

For more information about the book, please visit the iTunes Great Project page.

Follow Us on Mastodon

You can find Otis White’s urban issues updates by searching on the Mastodon social media site for @otiswhite@urbanists.social.