Monday, March 3, 2014

Article 49. The Effectiveness Test, a Tool for Reforming Government

The Effectiveness Test is a formalized tool to be applied by the US Office of Inspector General (Newly appointed USOIG) for determining the value added benefits of a government service or product supplied by an Agency of the Government in meeting its budgeted obligations. Failure to meet the Effectiveness Test authorizes the OIG to pursue a number of solutions to rectify the effectiveness failures of an Agency.  Proof of effectiveness compliance is the responsibility of the budgeted Agency.

Solutions for Rectifying Effectiveness Deficiencies
If no effectiveness proof can be found and the OIG Analysts determine that the suspect service or product does not meet acceptable quality and value with results warranting its budget expenditure, the OIG may pursue the following options:

1. Determine if the service or product is actually needed if not then the entire operation including the removal of the budget is pursued resulting in the immediate reassignment or layoff of personnel who provided the service or product.

2. If the service or product is found to be needed the OIG may enforce changes in the way the service is provided on the existing Agency or move the suspect service or product to another Agency with effectiveness and efficiency obligations fully enforced by the OIG.

Application of the Effectiveness Test
All that is required is for the OIG to have evidence that the suspect agency is not meeting its effectiveness obligations for the OIG to go into a proactive mode to investigate further not requiring a bill before congress to authorize the investigation.  The intent is to authorize the OIG to investigate and fix the thousands of ineffective activities found in the Federal government without waiting for the high profile requirement for Congress to enact into law the OIG’s activities.



An Example: The investigation and solution of Duplicated government Services

The Consolidation Model by Lawrence Rosier Principal Consultant
The Consolidation Model empowers the OIG to efficiently investigate and fix government duplicated services.  The beneficial efficiencies comes from the early elimination of ineffective duplicated services by the application of the Effectiveness Test.  Only if the duplicated service passes the Effectiveness Test can the service be considered for further analysis of the efficiency of its operations.

Activities of the OIG Consolidation Committee:

Step 1. Proposed Formation of a OIG Consolidation Committee
The proposed Consolidation Committee will have broad powers to lead and implement consolidation of duplicated government services.  This is necessary for legitimacy and to make sure that the consolidation of duplicated services are evaluated for effectiveness and efficiency.  The Principal Consultant will report to the Consolidation Committee and will train and lead OIG Lean Teams in the documentation of duplicated services and the efficiency of the final Agency.

Step 2. The Consolidation Committee will request the name of a management representative for duplicated services in each Agency where duplication occurs. The representative will provide: the budget for the duplicated service, the customer names of those receiving the service and a flow chart of the activities for doing the service and other documentation as deemed necessary.

Step 3. A OIG Effectiveness Evaluation Team will review the data submitted by the duplicating service Agency for the Effectiveness of the service to the Agency's customers.  If its customers are not satisfied with the services provided by the duplicating Agency it fails to pass the Effectiveness Test.  If the Effectiveness test is inconclusive the OIG Effectiveness Evaluation Teams may visit the Agency providing the duplicated services for further evaluation.  Agencies who fail the Effectiveness Test will have their budgets cut for this service and employees reassigned or laid off.

Step 4. OIG Lean Team documentation of Efficiency
When a duplicating service Agency passes the Effectiveness Test a OIG Lean Team lead by the Principal Consultant is dispatched to the Agency to Document the current process of the duplicated service and the efficient Lean process. The object is to verify actual cost data to enable the process of deciding what to do with the function.  The most efficient duplicated necessary functions shall be moved to a new agency or a revamped agency.

Step 5. Comparison of Duplicated Services
The OIG Lean Team is used to evaluate the efficiency of the duplicated Function and its associated cost data.   Outcomes are to be compared with all the other duplicated Functions from all the organizations depicted in a matrix chart where duplicated Functions are to be compared. Those duplicated services rejected for low efficiency will be declared as redundant and their budgets cut followed by reassignment or layoff of employees.

Those agencies with the highest efficiency will have their budgets moved to the new organization and the employees will be given the opportunity to move to the final Agency providing the services.

Step 6. Resolution of Agency Failures in meeting the Effectiveness Test.
If an entire Agency with Duplicated services fails to pass the Effectiveness Test regardless of how efficient they are they will be declared to be redundant.   With its budget removed and employees laid off.  Some management will remain until the Agency can be shut down.


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