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(Unedited) Podcast Transcript 592: New Tricks for Old Bureaucracies

This week on the Talking Headways podcast we’re joined by Joshua Schank to talk about his book New Tricks for Old Bureaucracies: Improving Policy Outcomes in the Public Sector. Joshua talks about the inner workings of LA Metro, benefits of openness and transparency as well as strategic planning. We also share frustrations about meetings, transit board structures, and agency fiefdoms.

You can find this episode at Streetsblog USA

Also find this episode and our archives here.

Below is a full unedited AI generated transcript:

 

[00:04:03] Jeff Wood: Joshua Schank, welcome to the Talking Headways podcast.

[00:04:07] Joshua Schank: Thanks so much. Glad to be here.

[00:04:09] Jeff Wood: Yeah, thanks for being here. Before we get started, can you tell us a little bit about yourself?

[00:04:12] Joshua Schank: Yeah, sure. So I’m a managing partner with InfraStrategies.

We’re a consulting firm that works primarily with transit agencies on strategy and finance. I’ve been here about four and a half years. Prior to that, I was the chief innovation officer for LA Metro for six and a half years, and before that, I had a long career in Washington, DC, starting as the transportation policy advisor to Hillary Clinton during the authorization of what became SAFETEA-LU.

And after that, at the Bipartisan Policy Center running their transportation program before becoming the president and CEO of the Eno Center for Transportation. But now I’m based in Los Angeles, and I teach at UCLA when I have some time to do that, which is really fun. And I also write, which is, I guess, what we’re here to talk about.

[00:04:57] Jeff Wood: Yeah. Are you LA for life now?

[00:05:00] Joshua Schank: I think LA is my home. Uh, I, you know, as an East Coast guy, it’s pretty surprising and unusual for me, but, uh, first of all, I married someone from Los Angeles, and my kids have grown up here, and I’ve grown to absolutely love the place, so probably here for the long term.

[00:05:15] Jeff Wood: What’s the difference between the two?

[00:05:17] Joshua Schank: Between?

[00:05:18] Jeff Wood: East Coast, West Coast.

[00:05:19] Joshua Schank: Oh. Well, I mean, f- as a transportation planner, I’m very focused on the differences in density and mass transit availability, but I would say that the main difference in lifestyle is it is much easier and more relaxing to live in Los Angeles. Even though New York is my favorite city and what I consider a hometown, uh, Los Angeles is so much easier to live in.

The lifestyle is much more comfortable. You have access to way more things that you can do without a million other people trying to do them at the same time. So it is a place that I think is much easier, particularly to raise a family, but also to have a comfortable lifestyle.

[00:05:56] Jeff Wood: Yeah, that’s interesting. I hadn’t heard of that context before.

I’m in San Francisco, and I grew up in Texas, so I have no reference for the East Coast at all necessarily. So I’ve been there a number of times, uh, for conferences and things, but my world is Texas and California for the most part, and maybe a little summer in Colorado.

[00:06:12] Joshua Schank: Nice.

[00:06:13] Jeff Wood: Have you always been interested in transportation?

Is this something that you found out that you were interested in when you were a little kid, or is it something that you grew into later in life?

[00:06:20] Joshua Schank: Yeah, it’s been a long-term interest. I was definitely interested as a kid, I think well before I was in fifth grade. But when I was in fifth grade, we were transported to a new city.

So I was growing up in suburban Connecticut at the time, and my father took a sabbatical and we went to live in Paris. And in those days, in the ’80s in Paris, it was totally acceptable to turn your 10 or 11-year-old child loose on the city and let them roam free as they desired, which is exactly what my parents did.

And the freedom of being able to get wherever I wanted, whenever I wanted, was incredible to someone who until that point had been restricted to when I could convince my parents to give me a ride somewhere. So I really appreciated and loved that, and from then on was kind of committed to the idea that everyone should have that freedom of movement, whether you can drive a car or not, whether you choose to drive a car or not, uh, we should all enjoy those same liberties because that’s what brings happiness and prosperity.

[00:07:22] Jeff Wood: Yeah, it’s fascinating how if you’re a kid and you grow up in some place where you have freedom, you expect it for the rest of your life, right? I have a similar feeling from where I grew up in Texas. We could bike everywhere we wanted to, and nobody had to watch us do what we wanted to do. The book is called New Tricks for Old Bureaucracies: Improving Policy Outcomes in the Public Sector.

How long did it take you to pull all the lessons that you learned together at LA Metro?

[00:07:46] Joshua Schank: Well, I mean, I think we were considering all of those lessons as we were still on the job, right? I mean, we were learning things as we went. That’s kind of the story of the book, right, is that we didn’t really know.

None of us were real experts in how to make change in a public agency, and we were learning while we were doing it, and we made a lot of mistakes. And the point of the book is to say, look, hey, here are the mistakes we made and here’s where we had some success, so you can learn from that. Uh, once we left- The three of us started thinking about, me and my co-authors, we started thinking about, like, what is it that we would have done differently, and let- can we define those in more simple terms in terms of, like, what are the specific rules that you should follow?

What are the specific tactics that can be especially useful? Because we think that would be really helpful for other people who want to make similar change. And so that’s what we did, but yeah, we’d been thinking about them for some time before we started to write them down.

[00:08:45] Jeff Wood: They can consolidate, right, as a story at some point.

[00:08:48] Joshua Schank: Yeah, I mean, we decided to write it as a story narrative because we wanted it to be accessible and compelling, right? We didn’t want it to be a boring textbook where we just were like, “Oh, yeah, do this, do that.” Much more wanting it to be something that told a story about what that was like and what the feelings of it were, and what the inside baseball stuff that was happening in that agency were like.

We thought that would be far more interesting to people and keep them reading so that they could absorb those lessons.

[00:09:16] Jeff Wood: What have people thought about the inside baseball aspect of it?

[00:09:19] Joshua Schank: Well, I think generally the reaction has been, you know, thank you for making this readable and, and interesting and compelling.

Um, I think that there are lots of people who couldn’t believe that we would write, uh, so explicitly and candidly about that experience. But we thought it was really important for people to understand what really goes on in these agencies. You know, there’s a lot of effort by public agencies to preserve themselves as their top priority, and we can understand that.

I mean, they’re preserving themselves for a good reason. They perform a critical function, and we don’t want to see them go away. But at the same time, there’s a lot of improvements that can be made as to how public agencies run and operate, and many people who’ve never worked in them are not aware of those critical changes that are necessary.

So we thought this was a good way to bring that to light, and there are some people who don’t want it to be discussed as openly as we did, but, you know, we’re big believers in that kind of transparency.

[00:10:19] Jeff Wood: It seemed like transparency kind of threaded throughout the book. You had talked about radical transparency and, you know, even letting lower level folks know what the upper level folks were doing and those types of things, and so I found that fascinating as well.

[00:10:31] Joshua Schank: Yeah, it was interesting. I didn’t know any better or different, right? So wh- when I had run Eno, I had always been perfectly transparent with my staff about everything that was happening with the board, whatever. I just naturally w- I don’t know how to do it any other way. And when I came to Metro, I did the same thing, but people who had worked at Metro, when they came to my staff meetings for the first time, they’re like, “He’s telling us what the executive team is discussing at the senior leadership meetings?

He’s telling us what’s happening behind the scenes?” Like, they couldn’t believe that. But I thought, first of all, it’s a great way to build trust with your team, and secondly, it’s the only way you can actually tackle problems is by being open about what they are. And when you hide things from people, it’s much harder to get to the nub of what the issue really is and therefore solve it.

[00:11:16] Jeff Wood: It’s interesting, when I was at Reconnecting America, we, ’cause we were federally funded, we had a policy of just, like, kind of open access. So whatever we put out there, people had access to for free generally. You could always download it on the website or whatever, and sometimes we came across consulting firms that were like, “No, that’s proprietary.

We don’t wanna share that.” And so we were like, “Well, what’s the point of creating all this good information if you can’t share it with everybody,” right?

[00:11:37] Joshua Schank: Yeah, I, I think that’s exactly right, and the transit industry in particular has this bad habit of trying to hide things, in part because there’s such a political bent to it, but in part because it has something of a militaristic history, which is something I talk about a little bit in the book, right?

The way that operations are run for the average bus company or bus agency is very militaristic in nature. It’s very top-down. You know, there’s, there’s a chain of command and authority. And while that might be really critical for military operations, and has some value for bus operations, it really isn’t a great way to run public policy, and public policy depends on openness and transparency to be successful, and the ability to question when your superiors say, “Hey, do this.”

The ability to question that and say, “Why? Why is that important? Uh, maybe could we do it a different way?” That’s really central to good public policy.

[00:12:32] Jeff Wood: It also helps to have a good leader, too. You mention Phil Washington being a great head of this organization. I’m curious, like, how he stands out versus maybe other heads of agencies that you’ve interacted with.

[00:12:43] Joshua Schank: Yeah. So what’s interesting about Phil is he is that military guy. He was a command sergeant major in the US Army, and despite that, I’ve never met or worked for a leader who was more open to ideas from people who worked for him than Phil. What makes Phil special is he’s always approached leadership with the idea that his job is to lift other people up.

It is not for him to be the big hero and take all the credit. It’s not for him to preserve his job above all else. It’s for him to help others become the future leaders of tomorrow. That’s how I met Phil, is that he was involved with Eno, which, you know, does a lot of leadership training courses for people in public transit.

That’s how we met each other, and leadership training really is something that is often underestimated as far as what people need to be successful in the public transit and in public policy in general, but Phil is very focused on leadership. That’s the reason why he’s such a good leader, is not because he’s the world’s biggest transportation expert, but he certainly knows his stuff, but that’s not what makes him special.

What makes him special is he knows how to lead. He knows how to bring people along and get people all working on the same page, and support people who are willing to take risks and make real change.

[00:13:59] Jeff Wood: I feel like some of these good leaders that have been out there, and I count people like Grace Crunican and others among them, they have, like, coaching trees almost, where they- Yeah

uh, started out, and they have folks underneath them that have come up through the ranks and done amazing things as well, and it always starts with this one person who believed in a lot of people.

[00:14:14] Joshua Schank: Yeah, I think that’s a great point. You often imitate the leaders that you wind up going and working for as far as your leadership style.

The first big leader I worked for, for example, when I was at Bipartisan Policy Center was Emil Frankel, who was the assistant secretary for transportation under Bush, prior to that had been the secretary of transportation in Connecticut, and his leadership style was exactly the one that I’ve imitated and the one that Phil has, which is being transparent with everybody, being completely accessible to everybody who works for you, and sharing in success and owning the failure.

I think that’s the most critical component, right? If you’re gonna have an innovation office, if you’re gonna make the chief innovation officer in the office of extraordinary innovation, you have to be ready to own the failures and also give credit for success, and that’s exactly what Phil did.

[00:15:01] Jeff Wood: How did you come up with that name, Extraordinary?

It’s not something you see often at transit agencies.

[00:15:05] Joshua Schank: Well, to be clear, I didn’t come up with the name. Phil came up with the name, and he would often say when people said, “Why is it the Office of Extraordinary Innovation?” He would say, “Well, if you don’t get that, you’re missing the whole point.” His point in naming it that was to say, we are not just going to make this a little thing that we do on the side.

This isn’t some kind of side project where we try to do a new thing here or there. This is the centerpiece of what we’re trying to do. We are going above and beyond. We’re setting expectations very high to start with, and that’s, you know, that’s a choice that people can make in leadership. You can set high expectations, and when people fall short, say, “Look, we set them high, and we got a lot done because of that.”

Uh, you can overpromise and underdeliver, right? That’s one strategy. Or you can underpromise and overdeliver. I think in public transit, the reason that overpromising and underdelivering is the right call is that it is so difficult to get people to take those risks and to get out of their shell, that you have to set very high expectations for people to get anywhere

[00:16:08] Jeff Wood: You had high expectations coming in.

You wanted four things. You wanted bus lanes, microtransit, congestion pricing, and PPPs. Why pick those four, and what was that meeting like with Phil when you came in and said, “I want these things, and if we can’t do them, then I’m not coming”?

[00:16:23] Joshua Schank: Well, I certainly didn’t put it that way.

[00:16:25] Jeff Wood: I remember- That’s, that’s how I kind of read it from the

[00:16:28] Joshua Schank: book.

I don’t know. I, I, that’s certainly not how I would’ve talked to

[00:16:31] Jeff Wood: Phil about it. But

[00:16:32] Joshua Schank: I did say like, “These are my four ideas,” to see what his reaction would be, because I wanted to see how open he was to change, because otherwise I wouldn’t have been interested in that, right? The reason I was interested in the job was this was an opportunity to make change.

And why those four things? Well, because at the time, we were looking at a time when on-demand public transit and using your smartphone to connect people to vehicles was becoming a thing that was a radical transformation in urban transit, and public transit was at risk of completely missing that boat and not taking advantage of it.

And so I wanted to figure out how could they take advantage of it. Why bus lanes? Because anyone who’s ever studied transportation planning is very aware of the fact that bus lanes are the cheapest, quickest, most effective way to start moving people more quickly through condensed urban areas. That’s how you do it.

That’s what works, and I wanted to make sure that Phil was open to that idea. Pricing, same thing. You know, we all, we’ve all studied transportation planning enough to know that pricing, whenever it has been implemented, is an effective means of accomplishing numerous goals that we all share with respect to transportation improvements, and I wanted to make sure that that was on the table.

And then P3, because project delivery is now, and as it has been for a long time, is just way too slow and unaccountable in the US, and P3s are a mechanism by which you can potentially bring greater accountability to a major capital project. Now, whether they’ve successfully done that or not, we could talk about, but they certainly have the potential to do that if you structure P3s in the right way.

[00:18:09] Jeff Wood: So what was Phil’s reaction?

[00:18:11] Joshua Schank: So Phil’s reaction was yes, yes, yes, and yes. Uh, he did not add any caveats that I remember to that, but he also had made it clear that P3 was a top priority of his even before I got to the interview. I mean, he put together the first transit P3 in the country with the Eagle P3 in Denver.

But also, he was very interested in project delivery, and that’s partly why he took the job. He knew Measure M was coming, and that there was gonna be an opportunity to build out transit in the region, and he wanted to take advantage of that. So he was definitely very open to all those things. Uh, I think that both he and I were a little naive about what it would take to accomplish all of those things, but that’s also one of the things I talk about in the book.

Like, you need a bit of naivete to be successful in this field. Because if you talk to the average person who’s worked at a transit agency for 30 years and you said those four things in 2015, they would say, “You’re out of your mind. We’re never gonna be able to accomplish those.” Okay, that’s one answer.

But the truth is we were able to accomplish a lot of those because we believed somehow that it could be possible, and that’s partly what you need to be successful

[00:19:22] Jeff Wood: What was it like when you got to LA Metro? I read the part about the board staff, and I, I wanted to throw the book, honestly. Uh, I did not throw the book, but I also then thought, like, you’re in LA, why don’t we make a Parks and Rec type television show about this group-

of folks who control but don’t control, but do control but don’t control the whole process of creating policy and moving things through the line at LA Metro.

[00:19:46] Joshua Schank: Yeah, it was quite the shock. The board staff definitely being one of the examples of a thing that was a big shock to me. You know, I, I’d obviously had worked around public agencies my whole life.

I started my career at New York MTA. I knew something about how they functioned, but I didn’t quite understand, uh, how bad it could be as far as… I imagined, I imagined in my naive mind that most people working in the agency shared the goals that I had. Like, basic things, like improving public transportation.

You know, trying to reduce the number of trips by car. Like, the types of things that you would assume if you’re working at Metro, you care about those things. But there’s a whole swath of people working in and around Metro who just don’t care about those, or any public agency, who just don’t care about those things because that’s not why they got into it.

The person running HR is unlikely to be passionate about transportation. Person running procurement, unlikely to be passionate about transportation. So there’s a lot of people who are in the… And then the board staff are the most egregious example, because the board staff are essentially political people who are now put in a position of dealing with transportation experts at this big agency.

So for those who don’t know, this board staff are essentially support staff for the elected officials who run Metro, who sit on LA Metro’s board. They’re the equivalent of congressional staff, which I was a congressional staffer myself one time. I understand how that works. The difference is that as a congressional staffer, you do get to make really important decisions behind the scenes that lead to legislative change, right?

You make really important decisions and, and you help inform your boss about how to vote on those decisions, what amendments to put in, et cetera. In this case, the people who are doing this, um, are almost like in the job themselves because the electeds have another job. The elected’s job isn’t to be on the board of Metro.

The elected job is to be the county supervisor, be the mayor of Los Angeles, be what- whatever that role is, which also includes sitting on the Metro board. So that you wind up with these staff who have an outsized role and outsized influence, and that’s one thing that makes it unusual. The second thing is that because of the Brown Act The board staff can serve as a proxy sometimes for responding to metro board items, because the Brown Act says that if you’re gonna have all the board together in a discussion, that you have to have it be a public meeting.

You can’t do that behind closed doors, except under a special set of circumstances. So board staff briefings at Metro were created so that the board staff could hear Metro items before they go to the board, and give the likely reaction of Metro board members behind closed doors. And those board staff briefings are where a lot of policy gets made, uh, and people hear and discuss what’s gonna happen, and you’ve essentially got, you know, staffers who are 25 or 30 years old, or maybe they’ve, you know, been there 40 years, but they’re political people who are reacting to transportation experts who have come up with answers to s- to solutions.

So it becomes a very challenging situation that when I got there, I, I almost couldn’t believe it was happening. I,

[00:23:03] Jeff Wood: I mean, I was reading the book, I couldn’t believe… I mean, I imagine that’s how it’s like at a number of agencies, and it’s all structure upon structure upon structure upon structure. I mean, you have the Brown Act, you have, like, you know, the requirements of the legislators, you have all this stuff that has to happen, but then it creates this convoluted way of communicating with each other, which then itself doesn’t make sense.

The, the structures make sense from trying to protect-

[00:23:24] Joshua Schank: Yes …

[00:23:24] Jeff Wood: the public, right? But then when you put them all together and mash up, it’s a recipe that doesn’t taste good.

[00:23:29] Joshua Schank: That’s right, and I think the fundamental issue there is that elected officials serving directly on the board of a regional agency can be very problematic, and it’s problematic because they are primarily serving their constituents, and the agency is a second job.

So California, almost all the agencies are structured that way here, right? You almost always have elected officials on the board, or sometimes in a couple of cases, they’re elected directly to the board, which I’ve heard is even worse. But if you’re an elected official serving on a board of a transit agency, everything that the transit agency does is gonna be put through that hyper-political lens, and it’s gonna be much harder to have the regional perspective.

So I w- I would argue, and based on my experience at Metro, and I think the book doesn’t say this explicitly, but I believe That strong governance reforms are necessary in California if we’re going to have public transit agencies that are successful.

[00:24:24] Jeff Wood: How do you break through this weird simulacrum? Like, how do you break through this strange structure that exists?

And so you have to work with it, right? You can’t change it right now. You can in the future, but at the moment, you dance with who brung you.

[00:24:36] Joshua Schank: Yeah. And, and I think one of the things we talk about in the book is the critical component of relationships and how building those relationships is how you get things done.

When we were most successful was when we communicated with and worked with board staff on issues long before they got to the board so that they were part of creating, co-creating with us those big changes. So Metro Micro is a great example. Metro Micro, the microtransit program that we created, from the very beginning, we were working with board staff on what that would look like.

They were bought into the idea. We wanted to make sure that they were comfortable with every step of the way. That’s why the board passed it. Same thing with the Metro strategic plan. There was not a moment where we weren’t communicating with board staff about what was in the plan and how that was gonna transform the agency.

So that’s typically how you can be successful within these environments, and relationships is not just about professional relationships. I talk about this in the book too. Sometimes you really do have to, you know, spend time getting to know people on a social level so that they’re able to connect with you on more than just that one issue when you talk to them, where they can understand, well, you’re getting some pushback, and they’re, they’re gonna stick their necks out a little bit to help you because they understand fundamentally that you’re a good human being who’s trying to do this for the right reasons, and you connect on that level.

So finding the allies within your organization who you can develop strong relationships with is one of the most critical components of success.

[00:26:04] Jeff Wood: How good are you at basketball?

[00:26:07] Joshua Schank: Well, I mean, I’m still playing, so I, I, at 51, I consider that a success. But, um, I would say my basketball skills are, I’ve always been fair to middling.

Um, but I- I’m a, an unselfish player, and I’m someone who loves, above all, to be able to sprint down the court faster than the other guys and get a layup in there. So whatever that says about my personality, you can read into for yourself.

[00:26:33] Jeff Wood: I’m ref- responding to an anecdote in the book where you, you, you bonded with somebody over basketball and, you know, that’s, it’s kind of the idea of like, what’s a beer worth, right?

Like, what’s, what’s this, uh, you know, connection worth in order to get things done inside the agency?

[00:26:46] Joshua Schank: Yeah. And those are the kinds of things that really do resonate, where you do connect with people, right? I mean, I played basketball almost from the moment that I got to Metro in a run that was held after working hours in a church nearby in Chinatown.

And from the moment I started doing that, I started building relationships with some of the people who were in that group, because even if you never say a word, when you play basketball with people, you have to communicate and figure out how to work together to solve a problem. So some of the ways that people play basketball can tell you a lot about how well they’ll work with you in a public agency in dealing with a problem.

If someone is very committed to showing off how great they are at shooting three-pointers, then that’s probably not gonna be as much of a team player who’s gonna work to get things done. But if someone’s trying to figure out, how do I get the best out of each person on this team to win this game, that’s the kind of guy you wanna work with.

[00:27:36] Jeff Wood: How hard is it to deal with folks that are operating with payment systems?

[00:27:41] Joshua Schank: Well, so the, the payment system thing is interesting. From the moment we came to Metro, we were looking at, how can we bring this payment system to be the top in the world, right? We were the Office of Extraordinary Innovation, and it seemed like a lot of the best innovations that we were seeing in technology at that particular moment were about reducing friction- For people who wanted to ride transit and pay for it.

When we got there, the tap card wasn’t that old. It had only been rolled out pretty recently. So Metro was one of the later agencies to adopt a fare card in lieu of tokens, and that was because Metro has 23 different transit agencies that it deals with, trying to get them all on the same card. There’s 88 cities in LA County.

There were a lot of complications in trying to bring all those folks along. And the folks who had built that coalition, that political coalition, had built all the relationships we just talked about to be able to do that. So when we come into that scenario and say, “Oh, that’s great that you did that, but, hey, now we all have the iPhone,” and, you know, some agencies are not even requiring that at this point.

You could just have a credit card. “Can we move towards that?” They’re like, “Who the hell are you?” Like, “Where you been, man? We, we just spent 10 years painstakingly building this system to get to where we are now, and you’re coming in telling us that this isn’t good enough, and you know how to get it to the next level?”

They did not react kindly to that, and I can understand why. But on the other hand, this goes to the issue of transparency. If we came in and said, “Hey, what are the options for getting this to the next level?” A different set of folks might have reacted differently and said, “Yeah, you’re right. We should be thinking about that.

Let’s collaborate on how we bring this to the next level. Let’s collaborate on how we can build the fare payment for the next century that really is far more advanced than what we have today.” But that wasn’t the reaction, and that wasn’t the reaction because that particular part of Metro was a, what we call in the book, an impenetrable fiefdom.

They were not interested in collaboration. They were interested in making sure that they kept control, strict control, over the things that they had under their purview. And collaboration was not of interest to them. They had what they needed to have to do what they needed to do, and if you came in and tried to mess with their stuff, they were gonna push back.

And that’s why we talk about in the book how critical it is to recognize an impenetrable fiefdom when you see it and back off and move on to other things, because we wasted a lot of time and energy trying to work with and collaborate with those folks when it was, it was kinda pointless.

[00:30:19] Jeff Wood: I talked to the Clipper folks maybe about 10 years on the show, and I asked them like, “Well, why don’t we have, like, an oyster card?

Why can’t we do tap?” I w- I’d just gotten back from London, I think, and I was, like, tapping my credit card, and they’re like, “Well, people like their Clipper cards, you know? Cl- people… We’re doing what people like.” And so it’s, it’s fascinating to see, like, kind of the path dependence almost of we’ve done this thing, and so people like it, and so we wanna keep doing it even if there is an improvement down the line that’s possible.

[00:30:45] Joshua Schank: Yeah, I think it comes from the mentality, unfortunately, that often permeates public transit. And I noticed in particular in LA because in LA, the percentage of people riding transit, even at Metro, was just pretty low compared to the cities that I’d worked in before, right? Like, when I worked at New York MTA, everybody at MTA rides New York sub- I mean, that’s not even, this, you’re not gonna find someone who hasn’t been on it.

But at, at Metro, a lot of people had not been on it, and unfortunately, that is true of many American transit agencies, is the people who work there are not necessarily users, and as a result, they often miss the customer’s real perspective on things. Just as an example, when I first got there with fare payment They were still in the phase where you could load your tap card by going to a website, but when you loaded your tap card by going to a website, it would not immediately appear on your tap card because the bus was not equipped to understand that you had loaded your tap card yet.

Until it went back to the depot, it was not going to get that information. So you could load your money on a tap card and then try to get on a bus, and they’d say, “Sorry, you have no money on your tap card.” To me, from a customer’s perspective, that’s crazy. Like, why would you even start there? Don’t start with that.

You’re just disappointing people. Get it to work and then roll that out. Uh, but that’s just not how things were thought of.

[00:32:09] Jeff Wood: It feels like a Cubic thing, ’cause I think that Clipper had the same problem, where you could load it and then it didn’t show up until the next day or whatever. So it was the same thing, and they both use Cubic, so it was probably something from that function at the time.

From the outside, people could look inside of the world that you’re showing us and say, like, “This is all, this is all bullshit.” How do you hold people accountable if, you know, the riders are, you know, doing what they’re doing, they’re getting on the buses and trains, but the people inside of the agency, like you said, they don’t ride, they don’t understand kind of what’s going on.

They’re… control their little fiefdoms. Like, how do you keep them accountable in this huge bureaucracy that kind of just goes along on its own merry way?

[00:32:49] Joshua Schank: Yeah, I think accountability comes from the top, and it comes from having a vision and then attaching accountability to that vision. That’s what we tried to do with Vision 2028, the Metro strategic plan, and that’s a lot of what I do now, actually.

I work with public transit agencies around the country, including some in the Bay Area. I don’t know if you’ve seen the SamTrans strategic plan, but that’s one we worked on, and I’m very proud of it, and I’m very proud of what they’re doing with it, because when an agency takes a strategic plan and makes it into an actual item Which certainly SamTrans has done, and I think Metro has done as well, that’s how you introduce accountability.

Because the strategic plan says, “Here’s the vision for what we’re trying to accomplish, and then here are the goals that will help us get to that vision. And then here are the specific initiatives that we’re going to take to accomplish each of those goals, and each of those initiatives has a specific timeline and a specific lead.”

So there’s a person who’s held accountable, or at least a department that’s held accountable, and there’s a timeline under which they’re held accountable. And if you do that, then you’re at least getting agreement upfront. We all agree these are the things we’re gonna do. We all agree these are the things we’re gonna be held accountable for, and we’re gonna be very public and transparent about how, what we’re doing on that.

I think that is a huge step forward for any public agency that wants to introduce accountability. The problem that you run into with those strategic plans is if you don’t have a strong leader, this is why Phil, again, was so effective. If you don’t have a strong leader that’s willing to push people, then people within the agency will say, “Well, no, I don’t, I don’t think I can do that in that amount of time,” or, “That seems a little too hard,” or, “Let’s scale that back.”

And they’ll set their sights on what they think is something that they’re more likely to be successful in accomplishing. And the key to a good strategic plan is to push people beyond what they would normally think they could do

[00:34:41] Jeff Wood: One of the innovations you guys pushed forward was the unsolicited proposal.

What was the benefit that you got out of those?

[00:34:47] Joshua Schank: Well, the unsolicited proposal policy was a huge benefit because it forced all of us at the agency to consider new ideas on a regular basis. So the way we structured it is we said, “Hey, anyone can send in an unsolicited proposal, a new idea to Metro, and we will consider it and get back to you within a certain amount of time about whether we wanna proceed and consider this as something that we wanna issue an RFP about,” right?

So it wasn’t circumventing the procurement process, but it was opening a portal to new ideas from the private sector in particular. And the reason that was so powerful is that when a new proposal came in, we would gather the departments that were relevant to that proposal and have a discussion about, okay, what do we think about this idea, and is this something that we should be considering seriously?

And when you do that, you push people to think beyond what they’ve already been considering. Now, instead of just saying, “Well, your job is…” And this is what something Phil made very clear. It’s not that your job is just to keep doing what you’re doing. Your job is you always have to be looking out for what else you should be doing or what the new thing is you should be considering that will better accomplish the same goal that you might have had before.

So the vision stays the same, but how you accomplish it can change based on new ideas, new technology. And a lot of times, we would get these new proposals, and we’d come and bring the relevant department, and they would say, “No, thank you. We’re not interested.” In fact, most of the time they would say no. But then they had to justify it.

We had to write a memo to Phil, and then to the folks who were submitting the proposal, explaining why we had rejected it. So that forced them to at least give really good answers for why they were rejecting a proposal. And in many cases, once they started to think about it, or once they started to really consider it, and we pushed them a little bit, they would say, “All right, maybe this is something that we would wanna move forward with.”

So it opened a door to new ideas that I think many transit agencies lack

[00:36:46] Jeff Wood: How many weird ones did you get?

[00:36:47] Joshua Schank: Oh my God, so many crazy ones, right? Like, we, we got stuff that was completely infeasible. We got a lot of people saying, “You should build this thing that’s really expensive, but so cool.” Like, tubular rail was my favorite one, where it’s like this crazy rail system that was, couldn’t, the trains couldn’t turn, but they would, uh, you know, they would turn the elevated platform instead of turning the trains.

It was completely insane. But that was the kind of stuff you’re gonna get. You’re gonna get some things like that. But you’re also gonna get some things that are very feasible. You know, one of the projects I was very proud of was we got a proposal for a gondola from Dodger Stadium to Union Station that was proposed to be completely privately funded, and that project is still moving forward.

That’s the kind of thing you get when you say to the private sector, “Hey, we’re open for business. We want your ideas.” They start to think, oh, maybe this kind of thing could be possible. Maybe Metro or maybe whatever agency is someone we could work with on really new, radical stuff.

[00:37:43] Jeff Wood: How hard is that politically though?

Because, you know, the gondola is definitely controversial locally. You know, internally is one thing, but then also, like, how you deal with the politics on the outside of some of these proposals of some of the things that you wanna do.

[00:37:54] Joshua Schank: Yeah. So certainly there’s always gonna be controversy when you’re talking about new ideas that change the landscape of a city, right?

That’s what the gondola is, and that’s what a lot of the projects we worked on are. It’s, like, really game changers. Congestion pricing’s another one. When you work on things like that, there’s gonna be political controversy. Now, the question is, what do you do about that political controversy? Because it’s inevitable that political controversy’s gonna happen.

In the case of both of those projects where we saw highly political challenges, we did a lot of the, what Phil would call, downfield blocking before those projects came to light. You know, we had the idea, as I said, I had the idea for congestion pricing long before I got to Metro, but we waited until the right time to present that, when the political winds of opportunity were going in the right direction and we could throw that idea out there.

That’s when it came up. For the gondola, that idea I’m sure had been around for some time as well, but they saw an opportunity politically with the backing of the mayor at that time, and with the, with Phil being at Metro, to push that forward. The problem with politics is that political winds change, and there’s a new mayor in Los Angeles who’s not as supportive of either of those project, and isn’t thinking that that’s something that she wants to get behind.

Uh, and you can’t control that. You can only control the fact that you try to take advantage of the winds blowing in the right direction at the right time.

[00:39:15] Jeff Wood: Speaking of the current mayor in office, she’s recently proposed free transit, which is something that you had proposed earlier, but probably under a different circumstance.

[00:39:25] Joshua Schank: Yeah, so free transit’s an interesting one. Well, the reason that came up for us is that we were looking at the budget and seeing the Metro at the time was, I think, a $7 or $8 billion organization, and collecting about $300 million a year in fares. Would there be a way for us to stop collecting that 300 million and make it back by saving money on things like contracts for, with Cubic and, and all the things that go along with fare collection that are actually quite costly, and maybe this would be a cost neutral way of getting more people to ride the, the system.

Now, we were very much hindered in trying to understand the answer to that question Because trying to get the data from the finance folks to really understand whether that would be the case or not was nearly impossible, but it was something that was worth considering. The problem that free transit ha- is that free transit has now become more of a political slogan.

We were thinking about it in terms of, hey, this is a cost-neutral way to just improve ridership and to get more people riding. Now it’s become a, oh, I’m, I support free transit because I want to become mayor of this city, and it shows that I care about people who ride public transit, who tend to be low income.

And as I’ve said in many places, free transit is only a benefit if you’re clear on what your objective is that you’re trying to accomplish, and if the objective is, well, we really wanna help low income people, it’s far more effective to give low income people money to use on transportation than it is to make fares free for everybody.

And that’s the problem I have with the free transit proposals that we typically see today is they’re not well thought out. Another strategy, which I know Metro is now implementing, which I love, is the mobility wallet, right? You give people cash to spend however they want on mobility, and that can also increase transit ridership while also targeting money for transportation to the people who need it the most.

That’s the kind of policy that I like.

[00:41:22] Jeff Wood: Yeah. We had Madeline Brozen on the show to talk about their research. Oh. Doing the mobility wallet. It’s really fascinating from a psychological perspective, too, what people are feeling, how much it impacted them, but I agree with you. I mean, I think that it’s often a political slogan, and I think that sometimes the people that are proposing it don’t quite understand what it means.

They just heard it somewhere at some policy forum from kind of more a left-wing perspective, and it shows up, and it’s frustrating, especially when you know about frequency and you understand the policies, you know, paying for it. Right. And what people outside of transit circles feel about paying for transit and those types of things, it gets more difficult.

So it’s an interesting discussion, but I, I, I just noticed that you had proposed it before, but it was also in connection with congestion pricing and trying to sell another policy, so there’s something that’s connected there versus just throwing it out there as an idea to win a mayoral election.

[00:42:09] Joshua Schank: That’s right, yeah.

It, it’s kind of like the opposite of bumper sticker politics, but it has become more of a bumper sticker. Like, free transit, isn’t that great? I’m giving you something for free, so elect me. That’s very different than, hey, if we put in congestion pricing, then we could offer transit for free, which is a great way of improving transportation overall as a comprehensive package.

[00:42:29] Jeff Wood: How much time is wasted in meetings, and why is there so much yelling? It feels, the introvert in me is like, there’s a reason why I didn’t go work for an agency. Like, and I can see in this book why. I, I’m, I’m on my microphone on a podcast now because I don’t like the yelling.

[00:42:44] Joshua Schank: Yeah, it can be a tough environment.

There are, uh, a lot of meetings because if you’re trying to get an agency of 11,000 people and a city of four and a half million people and a county of 10 million people

to agree with you, you gotta do a lot of meetings. And that, that’s, that’s, that’s democracy, right? I mean, democracy does require building consensus and, and building support for change. Uh, that is, that is the world we live in. Um, now could there be a way of not having as many meetings? Sure. Uh, you could have stronger political leaders, you could have stronger agency leaders who are saying, “You know what?

I see that there’s support for this. We’re moving forward,” and that’s, that’s the end of the day. But we don’t typically have that in most places, so you’re gonna have a lot of meetings. Now, why is there yelling? There’s yelling because, uh, people who are strongly trying to protect their fiefdom or strongly trying to prevent change for whatever reason that they have to prevent change are often going to be in a position of being unable to explain to themselves or others why they are doing it.

Because it doesn’t feel good to be the person who’s saying no to new ideas, I’m sure. I’m… I don’t know that well because I, I’m not often that person. But if you’re a person who’s saying no to new ideas and you think you’ve got a good reason for it, but you’ve got someone else in your face saying, “Not only is this a good idea, and not only are you wrong, but I’ve got the backing of the CEO who wants changes to occur and is gonna override you if you don’t do this,” that puts people in a pretty defensive posture.

And sometimes I, I think, uh, uh, it’s fair to say yelling is the last refuge of the powerless. That bec- becomes very contentious when you feel like you don’t have the power to do what you wanna do.

[00:44:45] Jeff Wood: You mentioned also doing a massive survey of the rank and file workers. I’m wondering what those employees told you.

[00:44:51] Joshua Schank: Yeah. When we did our employee survey as part of the strategic planning process, the head of operations at the time said This is the most important thing that this agency’s gonna do over the next several years. And the, the reason why he had a really good point is that asking the people on the front lines, who are the majority of employees at the agency in, in Metro’s case, what their daily experience is like is gonna be a profound benefit if you hold yourself accountable for improving upon the things that they flag.

Because just like customers are on the front lines and you need to listen to them, the workers are on the front lines and you need to listen to them. They probably know more things than you could possibly imagine. If you can get them to tell you what they are, you’re gonna fix a lot of problems. So I’m a big believer in employee surveys.

The challenge with employee surveys is building the trust in the first place that an employee feels like they can fill out the survey and not face repercussions. It’s amazing how many folks at agencies are worried about being honest in those surveys because they’re worried that they could be punished for that.

You have to have enough trust to allow them to do that. And then the second thing is you have to come back to them the next year and say, “You said this. Here’s what we did. Here’s why we didn’t do this. Here’s why we did this.” You have to show them that you’re listening and you’re making changes as a result of their comments.

But if you do those things, it can be a very powerful and important tool for making improvements at a transit agency.

[00:46:18] Jeff Wood: How did the pandemic impact all of this and the progress?

[00:46:22] Joshua Schank: Yeah. Pandemic we saw, and I think Phil saw, as an opportunity for major change. When, when the pandemic started to happen, as horrible as it was, we also saw, well, maybe this is a chance to move forward on some more radical things because a crisis can create that kind of opportunity.

And to some extent, we found some wins there, right? There were bus lanes that were put into downtown LA when no one was looking during the pandemic that are still there now, and that’s great. But to a large extent, unfortunately, what happened in transit is that people retreated a little bit and they said, “This is a crisis for transit, not just a medical crisis.

This is a crisis for transit because people are not riding it, and we’re losing all kinds of revenue, and we don’t know when that revenue’s gonna come back.” And our perspective was, well, that’s a great opportunity for us to explore, you know, other sources of revenue, ways of saving money, like doing things differently.

And unfortunately, we h- often ran up against the opposite, uh, which was people saying, “Now’s the time I don’t wanna take risks. Now’s the time when I want to avoid risk.” So I think my lesson and my takeaway from that is that a crisis can be an opportunity, but it’s not enough to have a crisis. It has to be very clearly stated by the leaders, the political leaders and the leaders of the agency, that we believe that this is the time to make change.

And I think we didn’t do a great job of making that clear. We didn’t have the support from the electeds to use it as an opportunity to make real change, and so we, we fell flat on a lot of those

[00:48:03] Jeff Wood: I’ve talked to Julie Kirschbaum recently, and one of the things that she said was about how the pandemic allowed her to go into her, you know, the offices or the mechanics offices or the division leaders and actually get a lot of information.

Her and Jeff were able to get a lot of stuff out of that, and I find that fascinating that there’s some agencies that, that were able to, like, kind of push forward a lot of different things, and then some had trouble because of that kind of feeling of, “I’m in an unsafe space.” I mean, and, and also, to be fair, I mean, Metro had a lot of deaths during the pandemic as well for frontline workers, so there’s probably a lot of fear that comes from just facing this thing that was happening and seeing something.

You know, change is one of the biggest drivers of fear, right? Um, and so you have fear from the actual things that are happening, and then you have fear from this, this change that’s coming, which, you know, humans don’t do generally well with it.

[00:48:52] Joshua Schank: Yeah, that’s absolutely true. And I would say that we were going in and talking to the folks at the divisions on a regular basis well before the pandemic.

That was part of what, part of what Phil did was hold senior leadership teams at different, uh, hold senior leadership team meetings at various divisions throughout the r- uh, area, uh, on a regular basis. So we were often going and talking to people on the front lines. I think the, the pandemic created a new level of contention between labor and management because labor was taking the brunt of that pandemic from a health perspective.

And even though Phil and lots of other executives continued to come in every day, uh, most of the Metro employees who were not on the front lines were not coming in and were protected, and that was seen as a, as a big differential

[00:49:44] Jeff Wood: Is there a question that you haven’t been asked about the book that you wish more people would talk about?

[00:49:49] Joshua Schank: Um, I think the key thing that perhaps people may not necessarily understand about the book is that the people who you bring in to make change, and I talk about this a little bit when I talk about bringing on fellows from other departments, the people who you bring in to make change are ultimately what’s gonna be determining your success.

And because we had the mix of agency insiders and naive outsiders like myself, I think that was a really winning combination for trying to make change. If it had just been one or the other, we wouldn’t have gotten anywhere. And I can’t emphasize enough, having now done this several times, right, when I was at Eno, and then at Metro, and now at InfraStrategies, the people you work with and the people you hire are the most critical factor as far as your success.

And being able to judge which people are the right people to hire is not only, I would say, the most important skill of any leader, but is also where leaders tend to make the biggest mistakes. And I, I, I point to some of those mistakes in the book. I, I made some mistakes in that area, too. We all do. Uh, but getting that right and being honest with yourself about what kind of person you need is critically important.

[00:51:03] Jeff Wood: How do you tell if somebody’s gonna care? Like, when I was doing a lot of mapping and cartography and data stuff, we’d have interns come in, and I would ask them to do something. But it wasn’t necessarily like what I asked them to do is what I wanted. I wanted them to be creative, thoughtful, and inventive, and I found it hard to get that out of some folks, to care the way that I care, you know?

So I imagine that’s similar for you in that you’re trying to hire people that care as much as you do.

[00:51:32] Joshua Schank: Absolutely. That’s the first question I ask in job interviews. Why do you care about transportation? Why do you care about public transit? What matters to you? You… It was the first question you asked me on this podcast.

And that’s because, as I said in the book, and I, we, we all follow this Tam principle, uh, named after Tam Nguyen, who was one of the folks who I met who worked in my office. The Tam principle is first you have to decide what it is you’re trying to achieve, then you get back to, all right, what are the steps to achieve it?

And the mistake that we often make in life and in public transit is we start with like, I’m gonna do this thing. Why? Why do you care about it, is the most important thing, and if the answer to why do I care about it is because I want to earn a paycheck, or because someone told me that this was a good thing for me to do, that tells you a lot.

If the answer is because I want to change the world and I see that this is something that’s missing in the world that needs to happen because of all these positive outcomes it will create, that’s the kind of person you want to work with

[00:52:31] Jeff Wood: What did you learn from writing the book that helped you consolidate your thinking?

Or what did you learn from writing the book that you hadn’t been thinking of beforehand?

[00:52:42] Joshua Schank: I think one of the key lessons I learned from writing the book was, you know, I had thought about this before, but I think it, it was crystallized in the book, how important it is to be able to put your ego aside when you’re trying to accomplish things like this.

I don’t remember if I quote it in the book, but one of the first things that Stephanie Wiggins, who was the deputy CEO, one of the first things she said to me when I got there was, “Do you want to be right, or do you want to get what you want?” And it’s a really great piece of motivational leadership advice, because if you’re focused on being right and not on getting what you want, you’re often going to be missing the outcome that you care about because you’re so focused on being right.

And I think writing the book led me to all kinds of understanding about ways that I could have done better, mistakes that I made, ways that I let my ego get in the way of accomplishing that outcome, and I wanted to make sure that other people understood that. And I think a lot of the lessons in the book are related to that.

The extent to which you can say, “It’s not about me, it’s about the outcome,” and then take all the hits you need to take in order to get to that outcome, the more successful you will be. And I think writing the book and being honest with myself about the missteps was an important phase in that evolution.

The

[00:54:00] Jeff Wood: book is New Tricks for Old Bureaucracies: Improving Policy Outcomes in the Public Sector. Where can folks find the book if they want to get a copy?

[00:54:08] Joshua Schank: You can get it on Amazon. You can also order it directly from the publisher’s website, Business Expert Press. And I hope if you like it, that you’ll also write a review.

[00:54:16] Jeff Wood: You can also get it from your local, uh, bookstore. I know bookshop.org has it as well.

[00:54:21] Joshua Schank: Oh, great.

[00:54:21] Jeff Wood: So I’m looking forward to folks getting it off there. Where can folks find you if you wish to be found?

[00:54:26] Joshua Schank: Easiest way is, uh, [email protected]. I’m easily accessible by email and always happy to talk to anyone who has ideas about transportation or wants career advice or guidance.

So please feel free to reach out.

[00:54:41] Jeff Wood: Awesome. Well, Joshua, thanks for joining us. We really appreciate your time.

[00:54:44] Joshua Schank: Thank you, Jeff. Appreciate you having me on.

 


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