HOUSE_OVERSIGHT_020963.jpg

...Aim to Answer Questions Like These About USA Inc. Productivity / Operations e How does USA Inc. measure performance and progress — are tools in place to measure success / failure? e Should USA Inc. empower an independent / 3rd party auditor with expertise in government operations around the world AND corporate turnarounds to conduct a broad-ranging audit of USA Inc.’s operations to measure efficiency and productivity of each business lines? e Does USA Inc. have tight management and financial controls? e What is the best way to measure and improve individual program performance? Can Congress, the administration and the agencies agree on common metrics? e Are there operations that should be centralized (like procurement, human resources, employee payroll and benefits) and decentralized? e Are there operations that USA Inc. can outsource to local private companies to improve efficiency and reduce costs? e Where should USA Inc. increase and or decrease investment? e ls USA Inc. investing for the future in a responsible way? e Should USA Inc. drive public / private partnership in infrastructure investment with collective ‘skin in the game?’ e ls the organization leveraging technology to improve productivity and connect with customers and suppliers? e How can USA Inc. improve business process related to time, cost and quality? e Does USA Inc. own assets it doesn't need that it can sell at attractive prices? K P Source: KPCB and Alvarez & Marsal Public Sector Services, LLC. (@ 4 www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 243 Three Principles for a USA Inc. “Turnaround’ from Louis Gerstner e Do not impose “across-the-board” cost reductions - This is a simple and tempting remedy for an organization in fiscal trouble. But it is almost always unproductive. A truly effective organization needs incremental investments in programs that drive innovation and higher productivity. Moreover, across-the-board cuts are almost guaranteed to reduce morale, promote short-sighted choices, and encourage accounting gimmicks that send people looking for loopholes instead of creative solutions. e Focus on programs, not costs - The greatest productivity gains come from asking questions such as: What things are we doing now that we do not need as much in the future? Can we eliminate them? Reduce their size? Provide them in a totally restructured fashion? e Allow no exceptions - To drive a truly effective restructuring program, everything must be on the table. There can be no sacred cows—no part of the organization that is exempt from scrutiny. Every unit of the organization may not face a cut, but every unit needs to be rethought. KP Source: Louis V. Gerstner Jr. “Don’t Just Cut Government, Reinvent It,” Opinion in The Wall Street Journal, 2/1/2011. (@ EB) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 244 HOUSE_OVERSIGHT_020963