Stimulating Productivity: A Case of Incentive Conflicts Author(s): Kirsten Olson and Mary Maureen Brown Source: Public Performance

& Management Review, Vol. 26, No. 3 (Mar., 2003), pp. 302-305 Published by: M.E. Sharpe, Inc. Stable URL: http://www.jstor.org/stable/3381290 Accessed: 16/05/2010 22:53
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CASE AND COMMENTS

PRODUCTIVITY STIMULATING
A Case of IncentiveConflicts
KIRSTENOLSON MARYMAUREENBROWN
University of NorthCarolinaat ChapelHill

S arah'scoworkersthoughtshe was crazy when she decidedto leave herjob at the softwarecompanyandstartworkingfor the city. She was one of the top groupmanagers at the softwarecompanyandwas frequently who triedto recruited by headhunters lureher away to rivalcompanies.Sarahwas a valuablecommodityto the IT industry and her boss was sorryto see her go. But Sarahknew the time was rightto make a careerchange,andshe hadalwaysfelt the urgeto workin the publicsector.Whenthe officeropenedupwiththecity, shejumpedat thechance. positionof chief information The city was shockedthatsomeonewith so manystockoptionsandexperiencewanted to takethe pay cut and managethe city's IT department. Sarahwas hired; Naturally, she was the most experiencedcandidatefor thejob. In her interview,she wowed the searchcommitteewith herdedicationto publicservice,commitment to introduce private sector IT practicesto the city, and, most of all, her exuberanceover something The city manager called "riskmanagement." was not surewhatthis meant,buthe was anxiousto place someonein the positionwho wouldremoveanyelementof riskfrom the city's investmentin technology. As Sarahcleaned out her office at the software company,she confided to her colleague,

itwon't This butI think onceI getmybearings, bedifferent jobis goingtobeachallenge, I know I canwork than here. withteams of motivatIt'sjusta matter working anywhere. and ateam ITsuccessful. ingthem helping them understand that effort makes Myfirstjob atthecityis to work ona newreporting forthepublic I can't program safety department. waitto implement someof theteamstrategies we'vebeenusinghereforyears. Sarah'sfirstmonthat the city was a whirlwind.She spentmuchof hertime getting to know everyone on the executive team, as well as one-on-one meetings with the
Public Performance & Management Review, Vol. 26 No. 3, March 2003 302-305

DOI: 10.1177/1530957602250237 ? 2003 Sage Publications 302

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mayorand council members.On the executive team, she quickly recognizedthatthe city manager,financedirector,and public affairsdirectorwere especially troubledby the IT department becauseof some of the cost overrunsin the pastandhow these overrunswere perceivedby the public.She madea mentalnote to communicatethe department's successes directlyto the executiveteamon a weekly basis so they would begin to understand the significanceof the IT department. And she also saw thatthe mayor and council did not understand how technology fit into theirlives as elected officials, and thattheirlack of experienceusing computersmade the chief informationofficer role undefinedin theireyes. After familiarizingherself with the city bureaucracy, Sarahfocused her energyon the technologydepartment. The developmentteamwas gettingthe department's work done, but with significantcost overrunsand a lingering sense of animosityand selfdoubt among many of the team members.Everyone she talked to in the department was proneto petty squabblingandplacing blamefor past problems.Groupedaccording to specialization, each division tended to think that the other divisions in the department were the enemy. Sarahnoticed, however,that the tension seemed to be based in the work situationand department's organization,andnot from a bad mix of personalitiesor traits.On the plus side, she also notedthatthe teammemberswere well qualifiedwith strongtrainingand technical skills. In hersecondmonthon thejob, Sarahtook theIT department on a weeklongretreat. The financedirectorraisedhis eyebrowsat the cost, but Sarahknew he would see the value when the team came in underbudgeton the public safety reportingsoftware.At the retreat,she explainedto the teamherideasfor the department andthe whole notion of buildingteams. Althoughsome of the memberswere skepticalabouthow management would perceive her new laid-back style, the majorityof the departmentwas incrediblyresponsiveandthe retreatwas a success. Most of all, they liked to hearthat theirnew boss wantedthemto workas a teamandthatshe wouldnot criticizeor penalize individualswhen problemsarose with developmentprojects.The last chief informationofficerseemedto be workingwith the threatof the administration looming over him, andthe resultwas a teamthatwas undera lot of stressto perform,hence fractured and prone to blaming and hiding mistakes. Among the many suggestions that came from the retreat,Sarahrealizedthe importance of focusing on (a) relaxingsome of the more restrictivenorms in favor of stimulatingcreative energies and (b) promoting open dialogueamongthe variousmembersof the department. Most of the department hadreadabouthow varioussoftwarefirmsencouragedcreativityandcommunication, and they had heardaboutthe success of Sarah'sformercompanyin employing these approaches. It was not long afterrelaxingsome of the proceduresandopeningthe dialoguethat Sarahnoticed that the team startedto act and behave much more cohesively. Each week, she sentan e-mail updateon theprojectto theexecutiveteam,andshe invitedthe mayorandcouncil to visit the department to see firsthand the headwaytheywere making. Waynewas the lead programmer. He liked workingin the public sector,and ever since Sarahwas hired,his job had gotten a lot easier:
Before, I had to constantlyadvocatefor my team of programmers. If I wasn't defending their work to the engineers, I was defending it to the chief informationofficer, or the

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as a team. Sure, administration. But now, we're workingwith the whole IT department makemy guys worka heck some of those engineersareprettydry,buttheirperspectives of a lot moreefficiently.Now, insteadof waitinguntilwe've completedan entirestageof department, we just walkoverto theirdesks the projectto get theinputof theengineering andsee whatthey think.Plus, it's madethe mood of the office a lot better.Whenwe get on the hoop Sarahinstalled stuckon a problem,we takea breakandplayNerf basketball on her office door.There'snothinglike a slam-dunkover the team from testingto help talking At first I was uncomfortable you refocus and get the bugs out of the program. about programming problems,but I've come to realize that it's the only way to find solutions.

on their Oneday,themayorandtwo councilmembersstoppedby theITdepartment way to lunch.As Waynewent up for a jump shot on the Nerf net, he almostcollided with the mayor.After apologizing,Wayneand the programmers told the mayorthat system softthey werejust "lettingoff some steam"beforethey tackledthe reporting ware,and thatthey had almost successfullyfixed a majorproblemthey had with the Becausethe mayorandcouncilmembers userinterface. did not knowwhatthisjargon with the knowledgethattherewas a majorproblem meant,theyleft the IT department game fresh on theirminds. in the softwareand the image of the basketball GivenOfficerGeorgeSmith'sproclivitytoward technology-he hadthreecomputwith-he was the police department's liaison to ers at home he was alwaystinkering Inthepast,he was constantly frustrated withtheinabilityof the thecity ITdepartment. to "getit right." Theyneverseemedto listento him, andon the last reportdepartment ing softwarethey developed,they waited until the last minuteto get George'scomof theprogram. mentson thefunctionality Of course,it was unusable by anyoneon the halfof the information thechief needed.So it wentbackto force,andit didnot capture was atthe boardandwas 6 monthslatein development. ButnowthatSarah thedrawing helm, thingswere different:
I can talkto the IT teamwithoutworryingaboutoffendinganyone,becausewe're all in In fact,it's gottento the pointwherewe'reall so in sync withtheproject,the thistogether. Andno one gets whatI'll say whenI reviewthe program. techguys can almostanticipate theirfeelings hurtwhenI tell themthatsomething just won'twork.Beforewe openedthe untilit was too late.Now, the softwareproblemswentunnoticed lines of communication, I just tell the teamwhensomethingis headeddownthe wrongpath.Sarahencouragesus even if it means to sharepotentialproblemsbecausein the end, it's betterto be proactive shootingdown someone'swork.But we can all takeit; we'reall adults.I told Waynethe otherday thattherewasn't a chancein the worldthatpolice officerswould understand theirdaily reports.He's got his how to use the F-Control keys when they were inputting for the offiteam workingon this so the softwareis easierto use and moremanageable cers. It's thatkind of opennessthatwe have now, and I like it.

The projectwas movingaheadat recordspeed,andalthoughtherewere some setwas on targetto finish the softwareprojectin backsnow and then,the IT department fromthe executiveteam,butshe chalkedit Sarah had not heard much the next month. A week about and theircomfortwithherleadership. their to technology up uncertainty in the staff lunchroom.The IT team was a heatedconversation later,she overheard of the softwareon the screen.She heardthe programdebatingaboutthe appearance with how the engineerswished to proceed.And manyof mersvoicing disagreement

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abouttheirusercapacity.It was stanthem were challengingthe police representative and Sarahknew therewas not any angerin the process; dardbanterfor the department, it was just partof the open dialogue thatwas needed to flesh out the detailsof the software design. But as she walked towardthe lunchroomto get a betterhandleon what financedirector, theywere discussing,she cameface to face with the city manager, and public affairs director.They had stopped by for a visit and could hear the raucous debatefrom the hallway. Sarahwas summonedthe nextday to a meetingwith theexecutiveteam,mayor,and council. She anxiously awaitedthe chance to tell them thatthe softwarewas close to final design, and that the project was on time, to specification,and would likely be underbudget.Whenshe arrived at the meeting,thefaces aroundthetablewere stem. "We're concernedaboutyourprogresson the publicsafety software," the city manager began. "Wehearthatthe softwarehas a numberof problemsand thatthe team has a tencontinuedthe finance director. dency to procrastinate," The public affairsdirectorchimedin, "Plus,the whole city is talkingaboutthe disagreementsamongyour staff andnow I havereporters calling me askingme for statements on 'the problems'associatedwith the new system!" The mayor said, "What'sgoing on, Sarah?You have us very worried.We've seen the anticsof the department, andheardthe arguingthatis going on. We can't have that type of image projected;we're workingfor the taxpayershere and it's not seemly to have one department goofing off and airingdisagreementswhen they'resupposedto be working-especially a department thateats up so much of our budgetas yours." The city managergave Saraha firmdirective,"Idon't knowwhat'sgoing on, butwe need your department to shapeup-act moreresponsibly.There'stoo muchfinancial and public risk involved;you need to keep the department on task. Keep a lid on the fighting, and for God's sake, Sarah-your department needs to act more professionally." Sarahleft the meeting with a sinking feeling. Had the skeptics at the retreatbeen right?Despite the progressher department had made, the administration just did not the type of cultureshe needed to establish to make her team productive. understand And if she now clampeddown on her team,what would thatdo for deliveringthe project on time and on budget?
KirstenOlson is a researchassistantand a masterofpublic administration degreecandidate at the Universityof North Carolinaat Chapel Hill. Her researchinterestsinclude intergovernmental collaborationand local government issues. Contact:keolson@email. unc.edu MaryMaureenBrownis an associate professorof public administration at Universityof North Carolinaat ChapelHill. Her research,teaching,and service interests focus on the adoptionand implementation of information technologyto advancepublic sector operations. Contact:brown@iogmail.iog.unc.edu