My daughter would not use ketchup on her hamburger this weekend because she saw that it was “tomato ketchup.”
I can’t help but notice how often the governmental regulatory process has come up recently—from toys, to food, to drugs, to financial markets, to accounting practices, to the airways, to just about anything and everything in our lives. It’s hard for a “reinventor” to ignore regulatory processes and practices, but our clients are extremely reluctant to take them on—until there is a crisis, and even then the wheels turn slowly (witness 9/11 and containerized cargo) and only down well-traveled bureaucratic roads.
How is a reinventor of government to approach this? That is the question. The stakes and incentives for both the regulator and the regulated are high. Agencies in a bureaucracy don’t like to solve problems that are their very reason for being, and the regulated, even though they rail against the regulatory paper storm are quite comfortable with the status quo. Who know what evil lurks in the shadows of change?
Paul Krugman, in his NYTimes column last Friday the 13th, highlights how some of our most, apparently, mundane regulatory functions of U.S. government affect everything from my household, to our foreign policy, to the stability of foreign governments (witness the demonstrations in Korea related to American beef). So even though the regulatory functions seem mundane, the stakes can be high – as I found out when my bypass surgery depended to a great extent on a drug that was found to be adulterated.
What is a reinventor to do with regulatory functions that don’t work – or don’t work the way we think they should?
As with just about any question concerning reinvention we begin with “who’s the customer?” That is, who is the primary intended beneficiary of any product or service – or regulatory function? The idea of “customer” makes many public servants uncomfortable – particularly when regulatory or other kinds of “control” functions are concerned. I find that this discomfort goes away when we point out that the “customer” is not always the person or group that you interact with regularly – like in a retail transaction.
It doesn’t make sense to call the recipient of a speeding ticket the customer of the “arresting” officer. This is because the primary intended beneficiary of the speeding ticket is not the speeder, it is the “public.” This is to say that it is in the public interest that we regulate traffic. The officer in this case delivers an obligation (in the form of a ticket) to the speeder.
This is quite common in government agencies. Sometimes the agency is delivering a service (such as welfare benefits), and sometime the agency is delivering an obligation (ensuring eligibility for the benefit). A reinventor makes a strong distinction between service functions and compliance functions, because their customers are very different. Service functions are generally delivering services (or benefits) directly to their customers. Compliance functions generally deliver obligations to the people they regularly deal with – we call them “compliers” so they are not confused with “customers.”
So what do you think? Who are the customers of these regulatory functions?