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Innovating America







representatives in government and private industry. Bock took pains to include union representation at every stage of the STEP planning process, building on the substantial trust he already enjoyed with labor leaders. He recalls asking a veteran representative of the government-employee union, "Trust me on this one, at least for six months."

One result of these consultations was that STEP's name was changed even before the program went public. Thus Strive for Efficiency and Productivity became Strive for Excellence in Performance after Hale was informed that "productivity" was viewed by some national union leaders as a buzzword for "taking it out of the hide of employees." She and Bock also abandoned a privatization project out of deference to the unions, though they did retain some of the spirit of privatization in their later emphasis on "marketplace dynamics."

How do the ideas that were the inspiration for STEP, some of them borrowed from the literature on private management, translate to the public sector? It is clear that unless department store buyers are close to their customers they are unable to match merchandise to their customers' tastes and pocketbooks. But how does a bureaucrat develop this kind of insight?

A STEP PROJECT–USING MARKETING TO IMPROVE THE PARKS

The Department of Natural Resources (DNR) was one of the first state agencies to use STEP principles in organizing its response to a problem. In 1985 the Parks and Recreation Division recognized that it was losing customers. Overall attendance was dropping, and parks at a distance from metropolitan areas were underused. Yet entrance fees provided a third of the division's budget. The balance came from appropriations, which had taken a five-year slide. Clearly, a marketing approach was needed. A marketing presentation at an annual conference for park managers helped highlight that need, and it coincided with the first call for STEP proposals by the governor's office. The DNR proposed to develop a strategy that would help match the outdoor recreation people wanted with the park system's natural resources.

Once they overcame institutional resistance to what was initially perceived as self-promotion, park managers turned to a tested marketing tool, the survey. Survey findings helped in planning the location of new trails; they also revealed that most park visitors approved of sufficient infringement on the wilderness to permit installation of electric hookups for camp vehicles and play equipment. Then the division yielded to the public's preference for plastic over cash and started accepting payment of fees with credit cards. In 1987 a partnership with owners of a gift shop at the Minneapolis-St. Paul Airport increased park sales of gifts by 50 percent.