In the 1990s, the refrain asked of local government was, “Why can’t the public sector operate more like the private sector?” Pilot projects to do just that began to crop up here and there. But Stanislaus County, Calif. has gone far beyond the pilot program. Today, the county is six years into its effort to transform the entire organization of 4,700 employees to a corporate culture dedicated to public purposes — perhaps the only such county in the nation.
The transformation began in 1996, when Stanislaus decided to pursue a prestigious Malcom Baldrige National Quality Award from Congress, an honor reserved for the most respected and successful companies in the world. That decision now guides the approach in this agricultural county of about 480,000 residents in and surrounding Modesto.
To win a Baldrige would mean performing to the levels of renowned Baldrige winners such as Xerox, Westinghouse, Ritz-Carlton, Federal Express, and a host of select small firms with records of sustained excellence. So novel was the notion that an entire government entity could compare with these corporate stars and meet Baldrige national standards, that Congress made no provision for governments to win the award, which usually follows five–10 years of preparation and corporate transformation.
But winning is not the point, insists Reagan Wilson, chief executive officer in Stanislaus County. “If you are truly seeking success,” Wilson explains, “you are doing it to learn from a proven set of values and a process that fosters performance and results. It is the journey that matters.”
Wilson began his career as an analyst in Stanislaus, then left to hold executive positions in the private sector. He returned to lead the county staff in 1992, bringing with him corporate expectations for performance. Inspired by Ted Gaebler’s 1993 landmark book, Reinventing Government, Wilson became more convinced that an effective blend of private sector and public sector values could foster more efficient and effective government. By the mid-1990s, Wilson and his Board realized that Baldrige and its demanding model for accountability to results and seven criteria to achieve them, were the tools that could help make Gaebler’s vision a reality. The seven criteria are described later in this article.
“An enlightened and supportive Board of Supervisors was critical to undertaking this effort,” Wilson says. Six years into the process, more than 800 managers and political leaders (including all five board members) have undergone extensive training and changes in their approach to service.
Specific results that reflect the Baldrige model are not isolated successes, but products of a countywide culture. Workers painting the lines on roadways used to stripe about 10–15 miles a day. Now they are completing 90 miles a day and reduced costs from $231 a foot to $7.60 a foot. Substance abuse programs are achieving greater success for more clients through Baldrige-inspired partnerships with the private sector and across department lines.
Major improvements in monitoring the dairy industry have refocused priorities and shortened or eliminated unnecessary process. An “At Home” program for kids integrated health, mental health, probation, education, and other children’s services to reduce recidivism among probation youth. The program is succeeding and saving more than $900,000 a year.
It is difficult to conclusively link every success with Baldrige. Most counties can point to a few such creative partnerships and projects. But in Stanislaus, the breadth of such efficiencies and creativity is clearly a result of adopting the Baldrige culture throughout the organization as a way of life. Estimates are that they have realized $11 million in savings and costs avoided since implementing Baldrige.
Denise Shields is a consultant and Baldrige judge and a member of the Board of Directors of California Awards for Performance Excellence (CAPE), a state program that emulates Baldrige using the Baldrige standards. “As far as I can determine, no city, county, or entire government organization has ever committed itself to the rigorous criteria that earn a Baldrige award,” she concludes. “I have seen specific government units, or a small division, compete for a CAPE award [the California model allows public sector entries], but nothing even approaching what Stanislaus County is doing.”
The crown jewel reflection of the Baldrige mentality in this Central Valley county was the opening last year of Tenth Street Place in Modesto, the county seat. The complex may be the only joint city/county headquarters in any sizeable city in the country. It is the only one in California and quickly becoming a tourist attraction for other city and county leadership teams.
At Tenth Street Place, the City Council and Board of Supervisors are committed to sharing costs and ownership of a new, efficient, combined government center as a first step toward a true partnership. The city and county now share everything from the Council/Board dais (with two seals behind it) to copy machines. The long-term plan is to combine duplicative functions beginning with such programs as permits, general services and full integration of human resources. The building is managed by a joint-powers authority of city, county and private sector representatives. Private businesses lease shops and offices on a first-level plaza.
Baldrige’s seven indicators of excellence
Baldrige National Achievement Awards are given based on achievements graded according to seven values, or criteria. They are: strong leadership, strategic planning, customer and market focus, information and analysis, focus on human resources, process management, and business results. While Baldrige painstakingly measures all indicators and compliance with the criteria, evaluators will give 40 percent weight to the results achieved.
Other improvements in Stanislaus illustrate the Baldrige approach. For example:
- A new agricultural center brings together the County Agricultural Commissioner, Cooperative Extension, Environmental Resources, Parks Department, State Department of Food and Agriculture, U.S. Department of Agriculture, and the Milk Advisory Board.
- Westside Center houses health, welfare, mental health, probation, library and literacy, employment services, private ambulance services, and a community center for public use.
Instilling the Baldrige principles among 5,000 employees in 50 worksites is not an easy task. Wilson estimates that the training, consultants and other direct expenses will be about $500,000 annually. Much of the expense goes to consultants and training. But, as Wilson points out, the improvements are paying off for Stanislaus County residents every day.
