Budget overruns. Employees running amok and management going rogue. A stunning lack of communications. Unethical behavior. This week's revelations of waste and mismanagement at the General Services Administration have all that -- and more.
And the scandal that has engulfed the agency in charge of procuring technology services for the government serves as a cautionary tale for any executive in any enterprise with a sizable org chart.
You don't even have to read the extensive news coverage of this week's congressional hearings to follow the story of how Jeffrey E. Neely, the acting GSA commissioner for the Pacific Rim region, spent lavishly on trips for himself, his wife, and colleagues, all at the expense of US taxpayers. The evidence is posted on YouTube:
According to the findings of GSA Inspector General Brian Miller, Neely was the planner of a Las Vegas conference that cost more than $822,000 of taxpayer money and included hired entertainment, clothing, mementos, lavish parties, and a range of other outrageous expenses. He has cited his right to remain silent during this week's questioning.
Meanwhile, Martha Johnson, the former chief of the GSA, has resigned. She told legislators this week: "I personally apologize to the American people... As the head of the agency, I am responsible. I deeply regret this. I will mourn for the rest of my life the loss of my appointment."
What's tougher to find out is how all this happened in an agency that's supposed to curb government spending.
At the heart of the problem was disorganization. Timothy R. Smith described it well in the Washington Post:
A confusing organizational structure at the agency muddled the lines of authority, said former GSA administrator Martha N. Johnson, who resigned in the wake of Miller's blistering report on the activities in the Pacific Rim region. The structure was so arcane, Johnson said, even she had trouble understanding what she called a "matrix."
A broken and/or complex reporting structure may only have helped a phenomenal lack of communication -- one that allowed the Western regions of the GSA not only to act autonomously but also to spin out of control, beyond the agency's governing core.
Another issue was the intimidation of GSA workers who appeared to avoid exposing the spending of Neely and others in charge. According to the Washington Post, one employee reportedly told GSA investigators "that a regional director was 'squashed like a bug' for questioning the conferences and travel."
Neely also avoided any meaningful oversight from above. The Post says Johnson inexplicably approved a higher bonus for Neely than the performance rating given by a review board, effectively eliminating the board's decision. Further, Johnson failed to act in June 2011 after Miller's office reported that Neely had violated agency rules in awarding $340,000 of gifts to employees in 2009 and 2010.
Lessons learned? There are many -- including the value of communication, internal governance, and a flat organizational structure. But perhaps just as important is the revelation that the GSA has been operating on methods established decades ago. Where was the information sharing? The wikis? The conferencing? The analytics, for heaven's sake!
Could the GSA debacle have occurred in an enterprise based on the tenets of social business, with its emphasis on information sharing, collaboration, and boundary busting? It's a question worth asking.
Compared with the enormous bonuses handed out to executives in the private sector, this kind of money is merely annoying on principle. But the situation makes me wonder whether there's an iceberg underneath. How many other government agencies are riding a similar gravy train?
The many revelations of excess in the GSA scandal are leading to legislation meant to cap spending. Interestingly, there were no caps in place previously, and Jeff Neely answered only to himself in a system that was clearly broken.
It amazes me that in today's tight-budget climate, this kind of eighties-style shenanigans in terms of "over the top" conferences and fancy resort getaways got as far as it did.
There was apparently pressure for would-be whistleblowers to keep silent.
Arrogance can reach toxic levels, as we've seen throughout the history of government, business, and other endeavors. There seems to be a line that is crossed between good, healthy self-approval or confidence and hubris.
The problem seems to be in getting someone to realize when they've crossed the line.
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