Radical Transformations Require Radical Steps (and maybe a bit of soap)

Did you see the 60 Minutes profile on Bob McDonald, the Secretary of Veterans Affairs?  What did you think?  Can a soap salesman (former Chairman of Proctor & Gamble) make a difference in the way a huge  bureaucracy runs?

With scandal and mismanagement at the top of the list of VA troubles, Secretary Bob, as he prefers to be called, has made a priority of something that most of his predecessors and many other government official have ignored, customer service.  He tells his 300,000 employees that they serve customers, not patients.  The customer has a voice and that voice has been complaining.

CNN reported the following facts about the VA this week:

• In 2013, the VA had 312,841 full-time equivalent employees.
• Among VA operations are 151 medical centers and 827 outpatient clinics.
• The VA served over six million people in 2013.
• In 2013, the average wait time to complete a disability evaluation was 78 days, according to the VA.

Congress isn't happy about the way Secretary Bob is addressing the problem of blatant cover-ups and falsified records.  According to The Atlantic, “New plans, initiatives, and organizational structures are all well and good, but they will not produce their intended results until VA rids itself of the employees who have shaken veterans’ trust in the system," said Representative Jeff Miller of Florida, chairman of the House Veterans Affairs Committee. "So far VA hasn’t done that—as evidenced by the fact that the majority of those who caused the VA scandal are still on the department payroll."

ut while Congress remains frustrated over the delays in disciplining VA employees, Bob is focusing on change. And even there his methods rile the critics.  Rather than taking the time to draw up a long, wordy plan, he has outlined four major steps he will undertake in the overhaul of the agency.

USA Today provided the following details:

• Establish a "customer service organization," headed by a chief customer service officer who reports directly to the secretary. The officer's job will be to lead the VA's culture and practices to meet the needs and expectations of veterans.
• Develop a regional framework designed to simplify and coordinate operations. The VA already operates under so-called "integrated service networks" that provide regional oversight for medical centers. It is unclear how the new system will be structured or how it will function.
• Create a network of community veteran advisory councils to coordinate the delivery of VA services with community groups and agencies while developing public-private partnerships.
• Identify opportunities for the VA to improve efficiency and productivity by realigning internal business processes, possibly using private enterprise models.

he lesson for all of us lies in this simple outline.  When tackling seemingly impossible and overwhelming challenges, keep it simple.  Give yourself a solid framework, a set of priorities, limit them to a few, and get started working on them.  

How often do we try to do everything and fail at all?

Secretary Bob knows he will need help, so he has created new positions and assigned specific authority to the role.  If you get the goals right, how can you lose?

"I'm here to fix it," he said. "We will deliver. We will deliver because we have the entire American public behind us."

Sources: 

Change Comes to Veterans Affairs - Russell Berman Nov 10 2014, 5:07 PM ET

VA Announces Overhaul, But Gives Few Details - Dennis Wagner, USA TODAY 8:32 p.m. EST November 10, 2014

Department of Veterans Affairs Fast Facts - CNN Library updated 4:49 PM EST, Fri November 14, 2014

Department of Veterans Affairs Fact Sheet - January 2009

Marketing Without Advertising

Image credit:  marigranula / 123RF Stock Photo

Back when I was managing a large service group, I used to practice the art of management by walking around , which is literally accomplished by taking a walk around the department and talking to people.

Today, I like conduct my own market research the same way, I walk around and talk to business owners.  What I do is listen and learn.

People love to talk about two things, what works and what doesn't work.  So, if you have a few minutes, you can learn a lot about what to do and what not to do, or what to do differently.

In a recent walk-about, I met Danny, who runs a successful service business.  He has been delivering fuel to his customers for over 25 years and he doesn't advertise.  What he does do is nurture the relationships he has with existing customers, and they have remained loyal to him through thick and thin. 

He is not the lowest priced supplier of fuel and he doesn't try to be.  Instead, he delivers the best value for the money, and he never lets his customers down.  He delivers, and his drivers and other employees know that no matter what the customer says or does, they are to solve the problem, treat the customer with respect and let Danny know what happened.  He handles the problems personally.

Danny proudly told me that he believes in being totally honest with his customers.  He sits down with them and shows them his books, what it costs him for the fuel, for labor and other expenses, and how much profit he makes.  Amazingly, they understand and they want him to make money.  This approach has worked over and over again, enabling him to keep his customers through many periods of rising prices.  

In periods of fuel shortages and disasters, Danny is there for his customers, sending out trucks to check on them, to make sure they are ok.

He doesn't take on new customers often, choosing instead to grow wisely.  If he can't deliver the best service, he won't accept the customer.  At times, people have came to him asking to be added to the list, even though he charges more. 

What Danny has built is bigger than his company.  He has built a reputation of trust that serves him quite well.   

By focusing on his customers, checking on them in good times and bad, communicating with each customer personally, and by keeping them informed of what can and will affect them, he has implemented the most effective marketing plan he could have.

And it is his satisfied customers who do the work of advertising for him, telling their friends what a great service they have.