Syllabus for PPA 240A Public Management - Sections 1 & 2 - Fall 2004
California State University, Sacramento
Professor Robert Waste
Office Location, Phone: 3036 Tahoe Hall - 916/278-4944
Email address: wasterj@csus.edu
Office Hours: Mondays 3:30 - 5:30 and by appointment
Class Locations& Time:            (Section 1) Monday 6-8:50 PM in LIB 128

                                                (Section 2) Wednesday 6-8:50 PM in AMD 252

Course Description:              
The purpose of this course is to teach students about public organizations and the challenges facing contemporary public managers. We will learn about the evolution of the field of public administration and public policy, how the "refounding" public administration and "reinventing" government movements have affected public management and spawned counter-movements. We will also examine how public managers use performance measurement and benchmarking to measure and achieve results in the public sector. There will be a specific focus on state and local government in California, and on how public managers in these sectors manage organization change, solve problems and increase agency/team cohesion. In examining these topics, we will return repeatedly to the closely related topics of leadership and ethics in public sector policy and administration, and to the assumptions about organizational behavior that are embedded in the literature on organizational theory from the classics to the present.

Learning Objectives: Eight Management Skill Modules
My larger "formative" learning objectives for PPA 240A are described in the course description above. In addition, the course has several discrete learning objectives, including the expectation that students will master the following eight skill modules:

    1. "Putting first things first" - Consider consciously linking your own management/leadership approach to your own sense of personal/professional ethics by developing a personal mission statement & using that statement to ground your management & leadership decisions. To accomplish this we will analyze Stephen Covey's 7 Habits of Highly Effective People (Week 1);

    2.  Establishing a familiarity with quasi-experimental evaluation design, summative and formative evaluation approaches, CAM Analysis, and the Bardach eight-fold path to policy analysis (Weeks 2 & 3);

    3. Learning how to design and use Logic Models,  and how to conduct performance measurement audits in public agencies (Weeks 4 & 5);

    4. Active listening and HR intervention strategies - including hiring, firing, and misconduct in the workplace, including sexual harassment (Week 6);

    5. Effective management & transformational leadership (Week 7);

    6. using leadership, "pragmatic incrementalism" and strategic management strategies to create public value and achieve positive organization change in government and not-for-profit agencies  Weeks 8-9), by: managing cultural change via:
      • mastering organizational development approaches
      • translating vision and values into action via use of Strategic Planning;  and
      • "Catalytic Mechanisms."

    7. understanding organization theory as it applies to the public sector. Subjects to be examined include: the origin of the concept of bureaucracy; the origin of the field of public sector administration; the life cycle of public agencies; differences between vertical and horizontal communication; early leadership and management theories; and contemporary theories of org behavior and human relations in public agencies.  (Weeks 10-13)

    8. Administrative ethics and Principle-Centered Management (Weeks 1-14)

Learning Objectives: PPA Departmental Learning Goals for Our Seminar

Each of the following are key PPA Departmental Learning Goals. PPA 240A is designed to enhance your understanding and facilitate an increased ability on the part of Seminar participants to:

  1. Learn how public managers manage organizational change, solve problems, and increase agency/team cohesion (Integrative Thinking).

  2. Learn organizational theory from the classics to the present (Integrative Thinking).

  3. Understand public organizations and the challenges facing contemporary public managers (Practical Applications).

  4. Understand how public managers use performance measurement and benchmarking to measure and achieve results in the public sector (Practical
    Applications).

  5. Understand the interplay of leadership and ethics in public sector policy and administration (Practical Applications).

Grades: Grades are based on the following assignments

(1)

Class attendance and participation – including one brief five-minute oral presentation defending memos described in (2) below.

15%

(2)

Three short (single-spaced, one page) memos. The first memo will address the possibility and desirability of ethically-driven principle-centered management in a public or not-for-profit context. You will need to read and include material based on Appendices A & B, attached below) in your paper. Memos number 2 & 3 involve explaining how any of items 1-10 (above) would or would not be valuable for your agency to adopt. This will be difficult because you are limited to one page (no smaller than size 10 font size). It is mandatory that you include these elements in each of your three memos.

  1. a summary of the topic or proposal;
  2. a brief argument in favor or opposed to the proposed change in your organization. When possible, include specific examples and evidence to support your claims in the memo.
  3. the Action Steps (including costs and staff resources) necessary to implement the change; 
  4. Take a firm position and defend your choice. These papers are due in class on 9/27 or 9/29, 10/25 or 10/27, & 11/15 or 11/17.

Beginning in Week 4, I will select 3 students each night to give a five- minute oral presentation explaining and defending his/her class memo. Class participation is worth 15% of your class grade. The oral presentation will constitute one-third of your class participation grade. The remainder of that grade is based on your participation in seminar, including class discussions and group exercises.

In the five-minute oral presentations, it is mandatory that you use the following format:

  1. “Signpost” your key arguments: Quickly tell us what you are going to tell us;

  2. Then tell us, defending your arguments;

  3. Then summarize- in other words, tell us what you told us.

Speakers since Aristotle’s time have sought to have three elements of credibility in their presentations:

Logos – strong logic, thoughtfulness and research

Pathos – a tasteful and respectful appeal to the heart, to emotions and sentiment; and

Ethos – the personal credibility of the speaker, his/her believability, professionalism, or “gravitas.”

I will be grading your oral presentations with each of these 3 rhetorical elements and steps 1-3 above, in mind.

30%

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

A midterm and final exam. These include:

  1. A 10-page paper due Oct. 18th (Mon) or Oct. 20th (Wed), which constitutes your midterm exam in the seminar. The midterm take-home paper will require you to use a Logic Model, and CAM Analysis or Back-of-the-Envelope Analysis to construct a performance audit of a public agency or program. (Appendix C, below, is a copy of the criteria that I will use in grading your midterm take-home essay exams). In your essays, you must use these mandatory elements:

    1. a theory of change;

    2. a logic model;

    3. an evaluation or performance metric- including either Bardach’s CAM Analysis or the 5 Back-of-the Envelope evaluation criteria – for an actual program or policy.

    The 10 pages may include text, logic models and, where applicable, surveys used to evaluate agencies or programs. The title page, notes and bibliography do not count in your 10 page total for either the midterm or final paper.

  2. Your final exam is a second 10-page paper due December 6th (Mon.) or Dec. 8(Wed.).
    There are two options for the final exam.

    OPTION # 1:
    Complete an actual grant application for an existing program or policy effort utilizing the logic model developed in your earlier midterm examination (or a new logic model developed for the purposes of this grant application). Grant application topics and potential granting agencies (i.e., the Irvine Foundation, Kellogg Foundation, the Annie E. Casey Foundation, the California Wellness Foundation, the Sierra Health Foundation, the Great Valley Center, etc.) must be approved ahead of time by your Instructor.


    OPTION # 2
    Drawing on material from the Bardach, Drucker, and Moore readings, design an Organizational Development (OD) intervention plan to improve – in Moore’s terms, to add “public value” – to a specific agency or program. Include:

    1. a brief background summary (no longer than 3 pages) of the history and current status of the agency or program;

    2. Use the Intervention Toolkit & Worksheet in developing your intervention;

    3. a CAM Analysis reviewing at least two different intervention alternatives including a careful explanation of your CAM weighting criteria;

    4. a budget and explanation of agency resources & personnel that will be needed for the intervention;

    5. a timetable & chart describing the Work Plan or Action Steps that would be needed for implementation; and

    6. a summary including a vigorous and persuasive defense of your intervention.
55%

Attendance Policy:
I consider enrolling in this class to be a commitment to me and to your student colleagues to attend each class session. We all benefit from everyone’s contributions. It is not okay to miss class for any but the most unavoidable of reasons Excessive absences jeopardize successful completion of the course. In addition to "seat time," the quality of your participation in class discussions will be reflected in your grade.

Seminar Format:
This is not a lecture class. If you come expecting to be told what was covered in the readings, you will be disappointed. My job is to select interesting and useful readings, orient you to them by identifying key questions, and to guide the discussion. Your job is to read the material, think about it, and come prepared to share your ideas with your classmates. We have the tremendous advantage that many of you, like me, work in the public sector. In our class discussions we will relate, whenever possible, the theories and concepts from the readings to our workday experiences. Those of you who work in public or not-for-profit sector organizations (and, after discussing your case with the instructor, those of you who work in for-profit organizations) will have the opportunity to construct your assignments around issues of importance to you in your work. This includes writing memos applying three of the nine-skill learning modules listed above to your agency, writing a two term paper projects; one applying performance measurement to your agency or program, and one describing an Organizational Development (OD) intervention for an agency or program.

Required Books (All available in paperback editions):

  1. Eugene Bardach, A Practical Guide for Policy Analysis. An excellent free electronic version of this book is available on the Internet at: : http://www.puaf.umd.edu/courses/puaf790/bardach.pdf
  2. Peter Drucker, The Effective Manager (New York: HarperCollins, 1996).
  3. Mark Moore, Creating Public Value: Strategic Management in Government (Cambridge, MA: Harvard University Press, 1995).
  4. Hal Rainey, Understanding and Managing Public Organizations.

Recommended Books:

  1. Diana Hacker, A Pocket Style Manual, 3rd Edition (Boston, MA: Bedford Books).
  2. Stephen Covey, 7 Habits of Highly Effective People.

Required Internet Readings:

  1. On Logic Models: http://www.the2professors.com/Logic%Models.htm
  2. On Eugene Bardach, CAM Analysis & the Eightfold Policy Analysis Method: http://www.puaf.umd.edu/courses/puaf790/bardach.pdf

Course Calendar, Outline and Readings:

PART I: ETHICS & LEADERSHIP IN THE PUBLIC SECTOR

Week 1:

Aug 30/Sept. 1

The ASAP Code & Principle-Centered Leadership (Covey & Mackey)

The ASPA Code of Ethics (attached below as Appendix A,  read this and the New York Times Magazine article, attached below as Appendix B, before the first class session)
The Seven Habits of Effective Managers: Stephen Covey via Peter Drucker
Principle-Centered Management: John Mackey & Steve Demos
Discussion Questions:
Who are the leaders in your life?
What are the qualities that characterize good leaders?
Must a good leader also be an ethical leader? Why or why not?
Should the ASPA Code of Ethics guide a public management leader? Why or why not? This last question will be raised repeatedly throughout our PPA 240A seminar, and we will spend our last seminar meeting trying to construct an answer to this question that will be voted on (by secret ballot) by all the members of our 240A Seminar.

PLEASE NOTE: Ethics is central to our seminar. The premise of 240A is simple and straightforward. Management grounded in ethics is capable of transformational leadership. Management that is not ethically grounded is simply the study of "tools" and techniques." Non principle-centered management may involve skills, vast sums of time and resources - even good will and good people - but it can never (or so your professor will argue), by definition, rise beyond "managing things" to "leading people" or, in the vocabulary of our seminar, "transformational leadership". To be sure, PPA 240A is about "managing things" (time, people, & finances) but it is also about "leading people" -  participating in the highest form of  public sector activity; which is "creating public value" and providing "transformational leadership." You do not have to accept this view of your professor that ethics and managerial leadership are inextricably connected. You will, however, be obliged to consider that argument and even (twice in the semester- on our first and last night together) to engage in a secret ballot or "vote" on the proposition. In several of our seminar sessions, we will engage in a discussion in full seminar and in small groups analyzing the tie (if any) between ethics, leadership and professionalism in public sector management.

 

PART II. MEASURING PUBLIC SECTOR PERFORMANCE

Week 2:

Sept. 13/Sept. 8th

Evaluating Agencies & Programs:
Experimental and Quasi-Experimental Evaluation Design,
Summative vs. Formative Evaluation,
the Bardach Eight-Fold Path to Policy/Program Evaluation
CAM (Comparative Alternative Matrix) Analysis,
The Delphi Technique & Smart/Best Practices

Read: Bardach, Practical Guide. & Internet source on Eugene Bardach, CAM Analysis & the Eightfold Policy Analysis Method: http://www.puaf.umd.edu/courses/puaf790/bardach.pdf

Week 3:

Sept. 20/Sept 22

 

Week 4:

Sept. 27/Sept. 29

 

Week 5:

Oct. 4/Oct. 6

CAM Analysis: Group Exercise

Building on the discussion of CAM Analysis from last week, we will work in groups tonight on the 3 CAM Case Studies identified on the Bardach Handout attached to this syllabus (Appendix B, below). Read these CAM Case Studies in Appendix B, below, before coming to class tonight.

Memo # 1 due in class (Mon. Sept. 27 or Wed. Sept. 22)

Constructing Logic Models and Conducting Performance Measurement Audits in Public Agencies
Read: On Logic Models: http://www.the2professors.com/Logic%Models.htm (entire).

Logic Model: Group Exercise

Building on the discussion of Logic Models from last week, we will work in groups tonight on the Logic Model Case Studies distributed in class last week.

PART III. ETHICS, LEADERSHIP & ORGANIZATIONAL DEVELOPMENT (OD)

 

Seek First to Understand, then to be Understood: Active Listening

Week 6:

Oct. 11/Oct. 13

Review for Midterm
The Ethics of Active Listening
Active Listening: Case Studies/Role Playing
Guidelines for Identifying Sexual Harassment
HR Intervention Strategies

Week 7:

Oct. 18/Oct. 20

Take-home Midterm Paper (Logic Model/CAM Analysis or Logic Model/Back of the Envelope) Due in Class this Session (Mon.. Oct.18 or Wed. Oct 20)
Effective Managers & Transformational Leaders
Read: Peter Drucker, Effective Manager.

Week 8:

Oct. 25/Oct. 27

 

Weeks 9 & 10:
Nov. 1/Nov. 3

Nov. 8/Nov. 10

Leadership Tricks from the Harvard Business Review: Catalytic Mechanisms, BHAG’s & Creating New Market Space

Memo # 2 Due in Class Tonight (Mon. Oct. 25 or Wed. Oct. 27)
Leadership: Don’t Forget the Small Stuff: It’s Not Always “Big Rocks” Leadership That Counts

Brainstorming Guidelines,
Building Trust via “Tipping Point” Contributions & Admiring Antagonists,
Remember Drucker: Feed Strengths & Starve Weaknesses,
Manage Your Time: Small-Scale Strategic Planning (S3p),
Running Effective Meetings
Formative Evaluation/Motivation

Leadership in the Service of Creating Public Value
Envisioning Public Value,
Defining Mission & Goals,
Building Legitimacy & Support,
Advocacy, Negotiation & Leadership,
Re-engineering Public Sector Production,
Implementing Strategy: The Policy/Program/Org Intervention Tool Kit & Worksheet
Read: Moore, Creating Public Value.

Weeks 11:

Nov. 15/Nov. 17

Week 12:

Nov. 22/Nov. 24

Week 13:

Nov. 29/Dec. 1

Memo # 3 Due in Class (Mon. Nov. 1, Wed. Nov. 3)
A Quick Primer on Organization Theory: From the Classics to the Present
Read: Hal Rainey, Understanding & Managing Public Organizations (Chapters 2 & 5).

  1. Systems Theory
  2. Scientific Management & “Fordist” Approaches (Taylor)
  3. The origin of the concept of bureaucracy (Weber)
  4. Gulick & POSDCORB

Org Theory (II)

  1. Mary Parker Follett
  2. The Hawthorne Studies
  3. Early leadership and HR theories (Barnard)
  4. Informal versus formal organizations (Barnard)
  5. The life cycle of public agencies (Downs)
  6. Vertical versus horizontal communication

Org Theory (III)

  1. Org Culture & Dysfunction (Merton)
  2. Maslow’s Hierarchy of Needs
  3. Theories X, Y & Z (McGregor)
  4. Agenda-Setting, Garbage Can Models (March & Olson, Kingdom)
  5. Contemporary HR approaches (Rainey)

Read: Rainey, Chapters 1-3.

Week 14

Dec. 6/Dec. 8

Take-Home Final Paper Due in Class Tonight (Mon. Dec.  6, or Wed. Dec. 8)
Leadership (VI): Leadership & Professional Ethics
Read: ASPA Code of Ethics (attached below as Appendix A)


APPENDIX A

ASPA's Code of Ethics

I. Serve the Public Interest
Serve the public, beyond serving oneself. ASPA members are committed to:
Exercise discretionary authority to promote the public interest.
Oppose all forms of discrimination and harassment, and promote affirmative action.
Recognize and support the public's right to know the public's business.
Involve citizens in policy decision-making.
Exercise compassion, benevolence, fairness and optimism.
Respond to the public in ways that are complete, clear, and easy to understand.
Assist citizens in their dealings with government.
Be prepared to make decisions that may not be popular.
II. Respect the Constitution and the Law
Respect, support, and study government constitutions and laws that define responsibilities of public agencies, employees, and all citizens. ASPA members are committed to:
Understand and apply legislation and regulations relevant to their professional role.
Work to improve and change laws and policies that are counterproductive or obsolete.
Eliminate unlawful discrimination.
Prevent all forms of mismanagement of public funds by establishing and maintaining strong fiscal and management controls, and by supporting audits and investigative activities.
Respect and protect privileged information.
Encourage and facilitate legitimate dissent activities in government and protect the whistle blowing rights of public employees.
Promote constitutional principles of equality, fairness, representativeness, responsiveness and due process in protecting citizens' rights.
III. Demonstrate Personal Integrity
Demonstrate the highest standards in all activities to inspire public confidence and trust in public service. ASPA members are committed to:
Maintain truthfulness and honesty and to not compromise them for advancement, honor, or personal gain.
Ensure that others receive credit for their work and contributions.
Zealously guard against conflict of interest or its appearance: e.g., nepotism, improper outside employment, misuse of public resources or the acceptance of gifts.
Respect superiors, subordinates, colleagues and the public.
Take responsibility for their own errors.
Conduct official acts without partisanship.
IV. Promote Ethical Organizations
Strengthen organizational capabilities to apply ethics, efficiency and effectiveness in serving the public. ASPA members are committed to:
Enhance organizational capacity for open communication, creativity, and dedication.
Subordinate institutional loyalties to the public good.
Establish procedures that promote ethical behavior and hold individuals and organizations accountable for their conduct.
Provide organization members with an administrative means for dissent, assurance of due process and safeguards against reprisal.
Promote merit principles that protect against arbitrary and capricious actions.
Promote organizational accountability through appropriate controls and procedures.
Encourage organizations to adopt, distribute, and periodically review a code of ethics as a living document.
V. Strive for Professional Excellence
Strengthen individual capabilities and encourage the professional development of others. ASPA members are committed to:
Provide support and encouragement to upgrade competence.
Accept as a personal duty the responsibility to keep up to date on emerging issues and potential problems.
Encourage others, throughout their careers, to participate in professional activities and associations.
Allocate time to meet with students and provide a bridge between classroom studies and the realities of public service.

APPENDIX B

Ethics & Principle-Based Management


June 6, 2004

The Virtue in $6 Heirloom Tomatoes

By JON GERTNER

John Mackey was sitting at a conference table in Austin, Tex., explaining what he calls ''the paradox of food shopping in America.'' Mackey, who started Whole Foods Market in Austin nearly 25 years ago and currently serves as the company's C.E.O. and president, is known for being casual, opinionated and very direct. On a scale of CEO bluntness, with Ted Turner a 10, Mackey might rate an 8 -- or, on a banner day, a 9. On a scale of CEO complexity, he would be off the charts.

Current and former colleagues describe Mackey, 50, as both spiritual and calculating, forthright and aloof, humble and arrogant, good-natured and prickly. And Mackey himself does little to dispel the contradictions. He says he is pro-employee but is avowedly anti-union. He calls himself pro-customer but acknowledges that he runs a store with higher profit margins (and prices, often) than almost any other grocer. He is avowedly pro-capitalism but also pro-love. Asked once to list the principles he lives by, he included his belief that ''love is the only reality. Everything else,'' he added, ''is merely a dream or illusion.''

Mackey -- dressed in a short-sleeve polo shirt, shorts and running shoes -- sat back in his chair and sketched out his point in a light Texas accent. ''Americans love to shop, right?'' he asked. ''We love to shop. And Americans love to eat. We're the fattest nation on earth. But paradoxically we don't love to shop for food. Grocery shopping in America for the most part is a chore.'' To his credit, Mackey tried to address this problem before almost anybody else. Yet he began as a food entrepreneur not so much to introduce style into the supermarket aisles as to influence the health and eating habits of the next generation of Americans. His original stores were big on nuts and grains and loaves dense as doorstops. It was food that took some serious chewing. The produce often came from farmers who showed up unannounced at the backdoor with muddy boots and battered pickup trucks. Tomatoes, turnips, carrots, basil -- it might be local, it might be organic, it might be both; it just depended on the day.

In the 80's and 90's, Whole Foods opened up new branches and bought up other natural grocers, poured enormous resources into beautifying its store decor and established its quality standards. The company acted, in the words of one executive, as ''the editor'' for its customers, drawing a bright line between what is and is not a ''whole,'' or unadulterated, food. At any of the 150 American branches, you can now find ice cream (but only with natural sweeteners), sausage (from animals treated humanely) or a (nitrate-free) prosciutto sandwich. You cannot find Pepperidge Farm cookies or anything with trans fats, synthetic preservatives or artificial colors.

To customers familiar with the company, which is poised to become one of the 500 largest businesses in America (it is currently 508 on Fortune's list) and which recently began a conspicuous invasion of New York with a spectacular store at Columbus Circle and soon-to-come emporiums in Union Square and Park Slope, Whole Foods still carries a patchouli whiff, a lingering reputation for being crunchy and countercultural and somewhat earnest. Mackey says he thinks this is amusing as well as mistaken. His customers are not alt-lifestyle types, Mackey says; nor does ethnicity or geography define them. The company is growing at a steady clip in the South and Midwest; it has increasingly wide appeal in Asian, Hispanic and African-American communities, and it will open a store next year in center-city Oakland. Mackey's market research suggests that Whole Foods doesn't appeal to any unique demographic these days other than highly educated people who are willing to spend more on what they eat. The prices have lent the chain its unflattering nickname: Whole Paycheck. Yet just as it is inexact to dismiss Whole Foods as hippie artifact, it is simplistic to ascribe its growth to the country's swelling class of luxury-seeking elites.

A number of years ago, Mackey and his team bet on a big idea: that mainstream Americans, even those with only the vaguest concerns about the integrity of the agribusiness food chain, would decide that it made sense to pay more for better food -- that is, food with ''whole'' and ''natural'' ingredients, sold by a purveyor they felt confident about -- just as they would pay more for better cars or kitchen cabinets. Harvey Hartman, head of a Seattle-based consumer marketing group who does work for Whole Foods, attributes the payoff of that bet partly to something he calls retrieval: in a society brimming with the ersatz and the inauthentic, where consumers increasingly attempt to save what's soulful from disappearing cultural traditions, Whole Foods' premodern authenticity, or its appearance of premodern authenticity, presents an opportunity to reclaim meaning.

There's also a less high-minded explanation: Hartman says that Mackey's stores appeal smartly to our ''messiness.'' People are messy in their habits and shopping preferences, he says. That's why Whole Foods, in its something-for-everyone largess, is categorically messy, or inconsistent, too. It responds to how health-conscious Americans actually live (eating Hagen-Daz after a stir-fry) rather than how they feel they should live (by finishing lunch with a pomegranate frappe). As a yoga-practicing-vegetarian-libertarian who admires Ronald Reagan and prefers The Wall Street Journal editorial page to this newspaper's, you might say Mackey is a little messy himself.

Mackey's next project, after more than two decades spent trying to reinvent the supermarket, is to change the values and reputation of business in America. ''Business is always painted as the bad guys,'' he remarks. ''They're the ones who are greedy, selfish, the ones who despoil the environment. They're never the heroes. Business has done a terrible job of portraying itself as invaluable. And it never will be accepted by society as long as business says it has no responsibility except for maximizing profits.'' Mackey's efforts at rehabilitating the good name of business have involved speaking to college students and talking up the Whole Foods ''stakeholder'' philosophy, which emphasizes the importance of satisfying customers and employees before shareholders. His argument is that a responsible business benefits all its stakeholders, including the local community and the environment; he also asserts such a business will naturally enjoy a higher stock price. If his own track record is any indication -- $10,000 invested in Whole Foods when it went public in 1992 is now worth more than $198,000 -- he may have a point. At the moment, he is at work on a book, due out next year, that lays out his business ideals in detail.

In the meantime, he intends to make some waves. Tired of the way Wall Street's analysts enlist corporate executives in the setting of important quarterly earnings targets -- often with the effect of punishing the stock of companies that fail to meet them -- Mackey has decided Whole Foods will not play the short-term expectations game. ''It's stupid,'' he says. ''When we announce our year-end 2004 results next November, we're going to announce a totally different way we're going to relate to the investment community.'' Just a few days before, he explains, his corporate board gave him the O.K. on this.

It's debatable whether Mackey's philosophy of stewardship differs as radically from mainstream corporate America as he seems to believe. It's more likely that Whole Foods is modestly different in many respects, and that such modest differences have amounted to a business that is somewhat unconventional. Many large companies (Costco, for instance) share a stakeholder model that makes a priority of customer and employee satisfaction. Other large companies (like Starbucks and British Petroleum) have serious community and environmental commitments. And some influential businesses place reasonable limits on executive compensation (Warren Buffett earned about $300,000 last year in total compensation from Berkshire Hathaway). Whole Foods does these things and a few others. About 94 percent of its stock options go to nonexecutives, for example, and any employee may see the salary of any other, regardless of rank. Mackey's own salary is about $400,000 a year, owing to a policy that bars officers from earning more than 14 times what the average company employee makes. That means that the average worker at Whole Foods earns in the range of $29,000 -- not bad for the grocery industry, but not enough to keep the company from pitched battles with unions, most recently in Madison, Wis., where in July 2002 workers voted in favor of representation by the United Food and Commercial Workers. (Mackey says the union's victory, which was certified and then decertified, resulted from his inattention to workers' concerns, and he spent the past year visiting all of the Whole Foods stores in the country in order to bond with his employees and to shore up enthusiasm.)

What really separates Whole Foods from other companies, according to Mackey, is the mission that weaves the company's ideals together. Mackey and two former partners, Craig Weller and Mark Skiles, founded Whole Foods in 1980 in a 10,000-square-foot space down the road from the company's current Austin headquarters. It wasn't until 1985, though, when the company had about 600 workers (it now has 29,500) that Whole Foods tried to lay out formally what it really wanted. Mackey and about 60 employees spent several weekends that year at a retreat working out their business principles and boiling them down to a few pages they called the Declaration of Interdependence. Mackey had little idea what a mission statement should look like, but the resulting stakeholder model and guiding principles -- sell quality food, please customers, satisfy employees, create wealth, respect the environment and conduct a responsible business, all at the same time -- have served the company well for more than 20 years.

What Mackey calls his business model is, in effect, the practice of giving customers what they want: a profusion of fish, meats, fruits and vegetables, presented with detailed explanations, far beyond what's required by law, of where it all comes from and how it was grown, caught or processed. But customers may be getting more than abundance. At Whole Foods stores, the mission statement (or pieces of it) is posted on walls, listed in free pamphlets, voiced by employees and managers in every aisle. Customers are not only consuming the groceries at Whole Foods. They are also buying its values. And this could be the most revolutionary thing about Whole Foods.

Of course, the mission may be only so many words. You can't help wondering if the company's ideals and neologisms mask convention more than change it. Employees are ''team members''; managers are ''team leaders''; the annual corporate report declares, ''We believe in a virtuous circle entwining the food chain, human beings, and the earth; each reliant upon the others through a delicate symbiosis.'' It's not difficult to get numerous former employees and executives to say unflattering things about Mackey, who is widely known to be tough to work for. Yet it is hard to find anyone who has ever been involved with the company who doubts Mackey's commitment, or who questions whether Whole Foods is an innovative enterprise.

And for those who would challenge his vision, Mackey has a response: their problem isn't with Whole Foods itself but with the expectation of what Whole Foods should be. Human nature makes it hard to categorize something novel and complex. Where we see contradictions in him or in Whole Foods, he sees continuity; where we see compromises, he sees progressive good sense; where we see pragmatism, he sees big-tent idealism. Above all, where we recognize a fast-growing company making cosmetic adjustments to timeworn business practices, he beholds a gleaming new paradigm. When I asked Mackey about the rhetoric of Whole Foods, he replied bluntly: ''People say, 'They just changed the words.' It's O.K. They can believe that. I'm not out to convert anybody. I'm just doing what we're doing, and a lot of young people really like it. I don't care if you don't get it. In fact you're doing me a favor by not getting it. Because you're stuck in the old way, you're wedded to a business model that is ceasing to work very well.''

Mackey is known to read several books a week, and his answers to questions are often studded with references to heady stuff like Thomas S. Kuhn's ''Structure of Scientific Revolutions'' and Adam Smith's ''Wealth of Nations.'' In conversation these quotations come off as reflective rather than grandiose -- evidence that he trolls good distances from ''Who Moved My Cheese?'' for business insights. Indeed, Mackey compares the idea of natural foods and more healthful eating to Charles Darwin. Survival of the fittest was a fringe belief that caught on only when a resistant generation died off and younger, more open-minded people discerned its value.

Mackey says he thinks Whole Foods benefits from the fact that our culture, and especially our food culture, is shifting profoundly. The old idea was A&P and Shop Rite: the milk always in one place and the meat in another, the Muzak and fluorescent lights and wheels rolling over linoleum producing a supermarket trance that was exactly the same in Connecticut as in California. The old idea was Mom going to the store once a week and rarely reading labels. The old idea was male grocery executives and store managers and a clientele that was almost exclusively women.

In Mackey's view, consumer evolution necessitates a change in the look and feel of grocery stores. It obliges retailers to understand that a sizable portion of consumers (up to 65 percent) are willing to pay more for organic food. It demands a new kind of empathy for an American family that has changed its eating habits (cooking less, shopping more often and buying more prepared foods) and its makeup (more single parents, fewer children). A large number of women hold executive positions within Whole Foods, Mackey points out, and store designs depend greatly on women's preferences. ''We have a lot more feminine energy here,'' he says.

Whole Foods has also been helped by the entrepreneurs who have been driving the organic and natural-foods movements for the past three decades. The company has incorporated ideas and employees from the chains it has bought -- Bread & Circus and Fresh Fields in the Northeast, Mrs. Gooch's in the West, Wellspring in North Carolina -- even as many of its vendors have followed the same path from fringe to hip to the edge of mainstream. There seems to be some agreement among Mackey and businessmen like Steve Demos, the president of White Wave, which makes Silk soy milk, that the battles for consumer attention (good taste, recognizable brands), as well as the fight for agricultural validation (sustainable farming, no antibiotics), have largely been won. It's the push to get their ideas about socially responsible business into the mainstream that is just beginning. Demos says: ''Wall Street -- that's where the fun begins. They only measure one thing, the bottom line. My goal is to demonstrate that the principle-based business model is more profitable than its counterpart, and when we do, Wall Street will chase us instead of the other way around.'' Hence the virtue of big profits. ''Our industry should focus on making the most money possible,'' he says.

Mackey, of course, is just as fervent a capitalist -- or neocapitalist, as he calls himself, since he characterizes his early political views as socialist and says his ardor for free markets came late in life. He simply maintains that there is no conflict between an aggressively capitalistic enterprise like Whole Foods and a socially responsible enterprise like Whole Foods. He is steadfast that his company will never compromise with Wall Street on its values -- the 5 percent of profits given every year to charity, the installation of solar panels on the tops of some stores, the payment to employees for their community service. At the same time, Mackey says the company won't compromise its intentions to make as much money as possible along the way. ''One of the things that's held back natural foods for a long time is that most of the other people in this business never really embraced capitalism the way I did,'' Mackey says.

It irks Mackey that some of his oldest customers don't accept that the road to profitability runs directly into the mainstream. ''I don't know how many letters we get from people who resent that,'' he says. He affects a mocking tone: '' 'You've sold out,' they say, or, 'Don't forget about the little people who supported you when you were nothing.' '' It's interesting, he adds, that when an idea that began on the fringe hits the mainstream, it's no longer hip and cool, even if it preserves its integrity and values, as he says he believes his company has. ''America has a love affair with small businesses, the Jimmy Stewart, 'It's a Wonderful Life' kind of businesses,'' he says. ''But when they get to be big, they're no longer good, they must be evil.''

The plan for Whole Foods, as it happens, is to grow to 300 stores by 2010, and to make deep commercial inroads on Canada and the United Kingdom. By then, Mackey says, it should have at least $10 billion in annual sales. He also says that's just a start. Across from his Austin office is the future headquarters of Whole Foods Market, an enormous building still under construction that will house the grocer's new flagship store on the first floor -- all of 80,000 square feet -- which Mackey has privately declared will be the grandest supermarket in the world. And which of course leaves little doubt. Love may or may not be the only reality. And big may or may not be better. But to Mackey, big is what a big idea needs to be.

Jon Gertner is a contributing writer for the magazine.


APPENDIX C

PPA 240A - Handout on Eugene Bardach & CAM Analysis

I. Bardach’s Eightfold path includes:
(1)   Define the Problem; (2) Assemble Some Evidence; (3) Construct the Alternatives; (4) Select the Criteria; (5) Project the Outcomes; (6) Confront the Trade-Offs; (7) Decide! and (8) Tell Your Story (Steps 3-5 are the heart of the CAM Model)

II. Examples of Criteria to Consider:
(1)   equity; (2) economic costs; (3) political considerations; (4) legal issues; (5) ethical considerations; (6) efficiently designed? (7) robust & capable of being improved? (8) bureaucratically feasible? and (9) most like existing best practices?

III. Constructing A Criteria Alternative Matrix (CAM Analysis):

CAM Case # 1 - Homeless Shelters
Assign values for each cell with 1 being the lowest possible (worst) ranking and 3 being the highest possible (best) ranking.
 “Maximize the number of homeless individuals housed on any given night; subject to the constraints of $50,000 per night total budgetary cost to Agency X and to not putting shelters into Neighborhoods A and B for political reasons.”

CRITERIA

ALTERNATIVE Economic Costs Politics

Administrative Feasibility

Ethics & Equity CAM SCORE

Leave Current Conditions Undisturbed:
Funded Winter-Only Shelter at Cal Expo

         

Augmenting Existing Services & Providers – No County Funded Winter Shelter at Cal Expo

         

Year-Round Homeless Shelter at Cal Expo or Elsewhere

         

CAM Case # 2- The California Fuel Cell Partnership is a partnership of eight major car companies from around the world working to create viable, practical and economical fuel cell vehicles that would be available on the market in California by 2002. The Fuel Cell Partnership is scheduled to end in late 2002.  The California Legislature has mandated that a certain percentage of vehicles in the state be alternative fuel vehicles that will increase progressively by percentage over the next decade and beyond. To date, however, the Legislature has not created a policy that would fund the research of fuel cell vehicles for use in automobiles or supported the research of automobile companies.

Politics: The presence of electric vehicles already on the market helps constituents to have some knowledge of electric vehicles, which in turn raises the possibility that legislators might be willing to fund some research. Fuel cell vehicles on the other hand are not on roads and the public may be hesitant to support a legislator who would promote these possibly dangerous vehicles. Lastly, more fuel-efficient automobiles are devised every year by auto manufacturers and would likely receive the most support from the public at large as well as the Legislature.

Environmental Interests: Environmental groups would doubtlessly be more supportive of electric vehicles and fuel cell vehicles, compared to greater efficiency in gasoline fuel vehicles, as the two former vehicles produce little or no pollution. It is probable that fuel cell vehicles would be stronger environmentally, as electric cars would still produce some waste and energy consumption, at least in a higher degree than would fuel cell vehicles.

Economic Costs: In the short run the least expensive alternative (in terms of direct costs) would appear to be the production of more efficient petroleum-based vehicles, followed by electric vehicles for which the means of production already exists. The most expensive would be producing fuel cell vehicles as this technology is newer and the means of production requires more skilled labor as well as other variables that need to be considered (potential dangerousness, opportunity costs, etc.).

CRITERIA

ALTERNATIVE

Economic Costs

Politics

Administrative Feasibility

Ethics & Equity

CAM SCORE

Leave Current Conditions Undisturbed:

         

More Efficient Autos

         

Electric Vehicles

         

Fuel Cell Vehicles

         

CAM Case # 3 – The Living Wage Proposal.

(More information on this example is included in material to be provided in class).

CRITERIA

ALTERNATIVE

Economic Costs

Politics

Administrative Feasibility

Ethics & Equity

CAM SCORE

Leave Current Conditions Undisturbed:

         

Adopt the Ordinance

         

Targeted Wage Subsidy - i.e.,

Earned Income Tax Credit, or City-funded Childcare Services

         

APPENDIX D
Policy/Program OD Intervention Toolkit & Worksheet

The "Toolkit" &- Levels of Intervention - Bob Waste/ 240A

1 (Minor) 2 (Medium) OR 3 (Major)
Brainstorming  
Theory of Change

CAM Analysis (Explicit & Quantifiable Tradeoffs)
Logic Model (Theory of Change, Process & Measures)
Back of the Envelope Evaluation (5 types of measures)
Bardach 8 Fold Evaluation (How best to "tell" the story?)
Surveys of Best Practices - Use Delphi Technique?         
Evaluation Using an Experimental Design
Benchmarking & Assessment

Agency/Program or Personal Mission Statement  
Building Trust via “Tipping Point” Contributions, Admiring Antagonists, Taking the Time to Set Ground Rules & Get "Buy-In"
Active Listening
Design an HR Intervention, such as a Sexual Harassment Workshop?
Brainstorming        
Effective Meetings
Pragmatic Incrementalism Covey’s 7 Habits of Effective Managers
Hire an OD Consultant
Bardach’s Eight-Fold Path to Policy Analysis
Drucker’s Leadership "Habits"
BHAG’sand/or Catalytic Mechanisms
Leadership: Set Tone, Model Behavior, Empower
Increase Public Participation
Build an Increased Commitment to Public Service             
Build a Culture of Accountability/Evaluation
Add Formative Eval/Motivation to Summative Eval
Bardach-Agency Cooperation/Trust Building Strategies
Build Increased "Public Value"

Planning the Policy/Program/Org Intervention: A Worksheet

STEP 1: Org/program/policy to be strengthened or problem to be resolved:



STEP 2: Goals:

            A)

            B)

            C)

            D)

STEP 3: Strategies to accomplish these goals:

            A)

            B)

            C)

            D)

STEP 4: Resources available to implement these strategies:

            Internal                                   External

            A)                                            A)

            B)                                            B)

            C)                                            C)

            D)                                            D)

STEP 5: Action Plan                                                     Time Line:

            A)                                                                    ________________

            B)                                                                    ________________

            C)                                                                    ________________

            D)                                                                    ________________

REMEMBER Peter Drucker’s 3 key pieces of advice:

  1. Put "first things first" - change the things that matter.

  2. The only thing you truly control is your own use of discretionary time; and

  3. “Feed strengths and starve weaknesses.” Focus on capabilities, not on shortcomings.

APPENDIX E

The Grading Template Used in the PPA 240A Seminar

Here is the template that I will be using to assess and grade your midterm papers. I am providing this in advance so that you will know in advance the items I consider to be strengths and weaknesses on the PPA 240 Midterm Take-home Essay.
PPA 240A MIDTERM GRADING SHEET
Name:
Date:
PPA 240 Midterm Fall 2004
Professor Robert Waste
278-4944 Phone
Email: wasterj@csus.edu
Office Hours: Mon 3:30-5:30 5-PM
GRADE:
Midterm Strengths:

Brief history of program, policy included
Logic Model included & well-developed
Logic Model includes measures on same page as process elements
Logic Model includes solid quantitative measures
Logic Model includes solid qualitative measures
Formative Measures of  improvement, stretching, partnership activity, leveraging and/or  professionalism or growth included
Bardach Analysis or Back-of-the-Envelope Assessment included
Exceptionally thoughtful use of Logic Model/ Bardach Analysis or Back-of-the-Envelope evaluation

Midterm Problem Areas

Minor spelling/grammatical errors included – Use Spell Checker & Grammar Check in the future
Major spelling/grammatical problems
Discussion simply too brief, not well-thought out, or not well-researched
Discussion concentrates primarily on history or explanation of program/policy and does not spend enough time applying a Logic Model, and developing and defending qualitative and quantitative performance measures
Does not understand or apply Logic Model to policy or program
Does not understand or apply Bardach or Back-of-the-Envelope Analysis

Additional Comments:

 

 

 

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