#66 -- Commercializing the Government....sort of...
How about changing the business model of the government....:)
In the early 2000’s the corporate world changed their business practices, forced by the shifting global trade policies, outsourcing of services and products, global convertible currency and foreign direct investments. It was sexy to be international. The US government did not follow in changing their operational processes while businesses did. The result is what we see today across trade, non-profits, contracting, quality of products, misaligned supply chains, fractured international relationships and unfocused mindsets.
Today we are at yet another inflection point which will force the needed change of the out dated operational systems. It is not about the catalyst, though. Rather, it’s about our system’s ability to adapt through checks and balances, the ability to create new, the ability to demolish what doesn’t work, the floating global currency, and the power of the people.
China does not have this. It’s their kryptonite.
If we (American businesses & citizens) do not change the operational system, someone will do it for us. Intentionally or unintendedly. We have a choice. Many countries do not. The business world holds the key to making the changes in the government and DOD. I recently sat through a few hubris sessions with US DOD Acquisition Executives. As they explained the complicated process and global structure of the branches of the military it struck me…..corporations have successfully navigated these waters already. Companies over the last 30 years were forced to change, adapt and build local products and services at global scale…..some made it and some did not. Product development teams, engineers, corporate executives and business development across industry have designed, build, tested, refined, and solved problems in highly complex international environments for decades. Why doesn’t the DOD ACQ just call up the companies that built the current global network? Is it ego, competence or just narrowed awareness and knowledge…….or a combination of all.
US Government Transformation
The only way out of the current bureaucratic swamp is with corporate America. Govies may scoff at the private sector banter. Corporate leaders may shout common sense. In the early 2000’s, corporate did away with things like RFPs….RPIs and out dated processes. In came the new demand cycle. Self service, on demand and fast. Procurement, and the power (and mistakes) that came with it, shifted to the buyer.
So how do we compete, shape and influence to win in the future……
Job Rotations
Executive and operational leaders in business and government should have role rotations. The military is good at rotating, training and shaping specific skillsets….they are not trained to have business mindsets. Successful business leaders have economic mindsets tied to customer driven results. The recent cuts in government highlighted this well. In the business world, this stuff happens all the time. If you are not producing revenue and/or value, you will get cut. A continuous system of change and adaption to the customers they serve. The government is missing this today. They forgot the customer. Rotate the positions and everyone will get served.
Open, Tradable Currency
Open currencies allow the market to decide who wins and loses. China is a good example of the limitations of planned societies. China does not have an open, tradable currency which limits the economic confidence of business and individuals for current and future investments. Your money can go into the country, but you will have a tough time getting it out, legally. Venture and private capital die in this system with an over dependency on government money, programs and plans. Without an open currency, the economic balance is lopsided and can tip into the abyss.
Hyper Competition
Competition is healthy. You cannot plan competition. It happens. The role of the government is to govern the competition, not create it, “innovate” it, or manage it. Governments suck at this. Let the open market decide who the winners are and let the product, service or process win. You cannot plan creativity. You can be creative in a one system planned economy, but you cannot plan to be creative. You would see a highly robust private sector from China if you could plan creativity. They start, then the government and corruption f**ks it up. The US government role is to protect the system, not run it.
Ownership Mindsets
The psychology of mindsets is tricky in this age of unlimited neurolinguistic programming. Experience matters. You want business and private organizations that are willing to take risks and engage. In many cases, businesses have already solved the problems which the US government has. Its the people who are in the way. The systems shape the people. The people breaking the systems are the ones you want. Ownership of the problem is the first step. In business, the customers shape what you sell/use. In the military, the warfighter shapes the tools, systems and weapons needed to provide offensive and defensive postures. In government, the citizens shape and fund the policies needed to protect the union.
Build, Build, Build
Businesses hold the keys to change the US government and enhance US critical industries. Businesses led the charge decades ago abroad, they will be the tip of the spear at reshaping the domestic agenda. New alliances, new partnerships, new technologies, and new business models. All of these will reshape the relationship between the America people, the government and the world. They already are…..
God Bless America!
Tyler
