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This Could Be Interesting… Virginia to Get a “Chief Transformation Officer”

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James A. Bacon
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Eric Moeller. Photo credit: McKinsey & Company

by James A. Bacon

This evening Governor-elect Glenn Youngkin announced several new key appointments, including his chief of staff and deputy chief of staff. But it is the appointment of Eric Moeller, a partner at McKinsey & Company, as “Chief Transformation Officer” that I find most intriguing.

I don’t believe that the Governor’s Office has ever included anyone by that title before. The  press release from Team Youngkin does not specify what Moeller will be doing, but it doesn’t take much imagination to speculate that appointing a partner of McKinsey, one of the world’s largest consulting firms, is for the purpose of taking a close look at the organizational structure and business processes of state government.

Chopping regulations is one of those old saws like eliminating “waste, fraud and abuse” that Republicans say they want but is easier said than done. This is pure speculation, but perhaps Moeller will lead such an effort.

The press release says that Moeller has more than 30 years’ experience “shaping and leading transformational change in companies across the United States.” At McKinsey, he leads the RTS unit where “he helps companies seeking dramatic and sustainable improvements in performance and organizational health.” He works with businesses ranging from $1 billion to $70 billion and “has helped them deliver financial impacts ranging from $100 million to $1.5 billion per year.”

He has completed successful transformations in diverse industries such as manufacturing, energy, mining, transportation, logistics, financial services, insurance, real estate, data management and healthcare.

With prior roles as CEO of a small food manufacturer, Trustee of AGE Refining, Vice President of Valero Energy Corporation, and Partner at the Boston Consulting Group, Eric has had an impressive career. The administration is grateful to have Eric’s expertise and ability to create sustainable change.

Eric holds an MBA from Harvard Business School and a BS degree in Chemical Engineering from the University of Wisconsin where he was a member of the national championship rowing team. Eric, his wife Leslie, and daughter live on a farm in Louisa County. They have two sons who are fourth generation graduates of the University of Virginia. Eric will join the administration on January 17th.

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48 responses to “This Could Be Interesting… Virginia to Get a “Chief Transformation Officer””

  1. SudleySpr Avatar
    SudleySpr

    Trump reduced regulation by 8 to 1, add one, remove 8. Or something close to that. Youngkin should do the same. It is impossible not to recognize that over time there will be hideous overlapping regulations and laws. Youngkin will clean things up like never before, hacks like McAuful have layered on BS over decades and cleaning it up will be like losing 30 pounds of fat overnight.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      As with most claims by Trump supporters, this is an exaggeration, at best, if not out and out untrue.

      Trump’s directive to agencies was cut two regulations for every one enacted, not 8 to 1 ratio. But, in fact, by the end of his administration, there were about the same number of federal regulations on the books. https://www.politifact.com/truth-o-meter/promises/trumpometer/promise/1346/enact-temporary-ban-new-regulations/

      One study concluded, “Overall, we find that every claim we examine about the Trump Administration’s deregulatory efforts is either wrong or exaggerated. The reality is that the Trump Administration has done less deregulating than regulating, and its deregulatory actions have not achieved any demonstrable boost to the economy. ”

      https://www.law.upenn.edu/live/files/11017-coglianesesarinshapirotrumpderegulationreport11012

      1. YellowstoneBound1948 Avatar
        YellowstoneBound1948

        I understand that you are a liberal, and most likely a Democrat, but I often give your comments a “thumbs up” because they are sensible. However, this is your first “snarky” comment, at least, the first one that I recall writing.

        You may have a point about Trump’s failure to reduce the number of regulations. (Normally, this is not the kind of failure that would prompt a Democrat to complain.)

        But, have you looked at it from the perspective of increasing regulation? Forget about Trump. He’s not the president. The “regulators” are now in charge.

        And I think it is undeniable that big changes are in the works for the IRS. That is where the jobs are, and that is where the intrusion into our lives begin.

        1. Dick Hall-Sizemore Avatar
          Dick Hall-Sizemore

          I would be happy to forget about Trump if other commentators on this blog would desist from using his dubious “achievements” as models to follow.

          On a higher plane, everyone seems to complain about regulators. It is not as if the bureaucrats are out there regulating for the fun of it. Regulations are needed to implement laws passed by the legislature, be it federal or state. For good reasons, legislation usually sets forth general principles and directs agencies to develop regulations to implement those principles. If we want fewer regulations, pass fewer laws.

  2. Eric the half a troll Avatar
    Eric the half a troll

    Well, he took Valero from $10.50/share to $11.41/share over his 8 years there so a 1% annual return sounds great…. dare I say… transformational…

    1. Donald Smith Avatar
      Donald Smith

      Nice to see that you’re still smarting from the ass-kicking your side took last November.

    2. Nancy Naive Avatar
      Nancy Naive

      Is that what they mean by a “trannie”?

    3. DJRippert Avatar
      DJRippert

      He was a Vice President of Valero. Not exactly the captain of the ship. Meanwhile, how did the transportation fuel industry overall fare during those eight years?

      1. Eric the half a troll Avatar
        Eric the half a troll

        “General Manager of multiple business” units ain’t nothing. I (randomly) looked at Chevron over the same time period – their stock price nearly doubled.

        1. DJRippert Avatar
          DJRippert

          Chevron is a good comp. But, GM of multiple businesses doesn’t tell me much about his ability to influence the overall stock price.

  3. agpurves Avatar
    agpurves

    The first step should be to recognize that public schools are failing to teach reading (they use “whole word” instead of phonics-based instruction), failing to teach math (no drill), and using history to turn students against our Constitution while glossing over communism and socialism.

    1. Nancy Naive Avatar
      Nancy Naive

      The 3/11/1861 Constipitution, right?

      1. LesGabriel Avatar
        LesGabriel

        I’m quite sure he meant the 1789 U.S. Constitution, as amended.

  4. kls Avatar
    kls

    Regulations is just part of the problem.

    The other is the personnel who don’t do their job, or can’t, or don’t know how. It’s near impossible to fire incompetent government employees.

    He needs to promote those in State civil upper management positions into Governor-appointed high level management positions…..then fire them. And keep moving people up, then out. If someone doesn’t take the ‘promotion’; relocate them from Richmond to Clintwood, Dickenson County. If they turn down the promotional re-location…fire them.

    Flush the system….

    1. dave schutz Avatar
      dave schutz

      Careful what you ask for, you might get it… J. Edgar Hoover useta send agents who failed to meet his expectations to Butte Montana. However, there was a problem: they got to Butte, they LIKED Butte. Friendly city, problems of a size where you could make a difference. So making some piece of Virginia into Siberia has its dangers….

      1. how_it_works Avatar
        how_it_works

        They could send them to Manassas. Nobody likes Manassas. It’s like the armpit of Virginia.

    2. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      There are not many state positions, except for maybe VDOT, in Clintwood. Besides, you can’t fire a state employee for refusing to accept a gubernatorial appointment.

      1. YellowstoneBound1948 Avatar
        YellowstoneBound1948

        This illustrates one of the major problems with government: You can’t fire anyone (except, of course, at the executive level). Government employees cling to their jobs, willing to work for low salaries in exchange for early retirement packages, short working days, numerous holidays, and low expectations. I stepped out of the private sector — briefly — into state government decades ago, and remember how shocked I was at the efforts undertaken to do as little as possible. “Quitting” time was 4:30 P.M. That did not mean working until 4:30. Oh, no. At 4:30, most of the employees were standing by the elevator with their coats on. Unfortunately, the outstanding state employees — and there were many — were tainted by this broad brush, but could do little about it. I took pains to promote them, and many of them I promoted into the private sector, knowing they would excel there.

        1. Dick Hall-Sizemore Avatar
          Dick Hall-Sizemore

          The vast majority of state employees that I encountered in my long career of state government were very capable, dedicated, and hard working. Many put in lots of time beyond the normal forty hours with no overtime pay. You are right, some did as little as possible to get by, and, for some reason, this is the caricature of public employees. (I can point to slackers in the private sector, as well.)

          One could retire before age 65, if one had sufficient years in state employment, but that is also true of those in the private sector with defined benefit retirement plans. There are no “short working days”. The standard working day in state government is 8 hours. I admit there are numerous paid holidays.

      2. VaPragamtist Avatar
        VaPragamtist

        Right, it’s incredible hard to fire a state employee and it needs some sort of cause.

        But it is much easier to layoff state employees under the guise of “agency reorganization.” I seem to recall some (apocryphal?) story about Bill Leighty gathering all of the Gilmore admin folks who landed classified positions in state government post-admin and summarily laying them off through agency reorgs.

        1. Dick Hall-Sizemore Avatar
          Dick Hall-Sizemore

          The reason that it is hard to fire a state or federal employee is the decision in the late 1880’s that the “spoils system” was not good for public policy. So, you have a choice: have a classified personnel system in which employees are protected from arbitrary dismissals or return to the “spoils system,” with all its corruption.

      3. kls Avatar
        kls

        you don’t fire them for refusing…. you move them elsewhere in the state.

  5. Nancy Naive Avatar
    Nancy Naive

    I-95 Snarly F@@@ — A parting shot at Northam? Or just more Virginia State Police institutional incompetence?

    As tempting as the former may be, the latter has proven out before. Remember the insecticide spill SNAFU? History repeating.

    1. how_it_works Avatar
      how_it_works

      “Every time Virginians think that their state is better than all the rest, God dumps some snow on them to demonstrate otherwise”

    2. how_it_works Avatar
      how_it_works

      Wow. Over 24 hours since the snow has stopped falling and I can confidently say that this snow storm has kicked Virginia’s ass like a troop of Union soldiers.

      1. Nancy Naive Avatar
        Nancy Naive

        Just one — Grant. Although Custer cut his teeth on the Peninsula.

  6. WhatMeWorryVA Avatar
    WhatMeWorryVA

    My experience with McKenzie at the organization where I work was sad and pathetic. F***** up is actually a better description. Gutted the place. Lost centuries of experienced people due to “reorganizations” and forced moves to “Hubs” and now we have wet behind the ears low paid high turnover idiots making life hard for everyone. But I do like the idea if not the person he picked…

    1. VaNavVet Avatar
      VaNavVet

      That is what venture capitalists and consulting firms do. They do not build things but rather tear them down to take out a profit.

  7. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    On the surface, this seems to be analogous to Northam’s Chief Diversity, Equity, and Inclusion Officer–a position of little or ambiguous substance, but long on political symbolism.

    1. DJRippert Avatar
      DJRippert

      I’m afraid you are right. I watched Obama’s Federal CTO flounder as he tried to reform a fundamentally un-reformable federal bureaucracy. Aneesh Chopra, once the Virginia Secretary of Technology, took the role. I went to several dinners where he put forth his big plans to reform federal technology. Then, he hit the brick wall of Departments and Bureaus. The CIOs and other “executives” in those entities had their friends in Congress who would back them against the President’s own man.

      Less than 3 years later, Aneesh was gone.

      If Younkin really thinks he can reform an entrenched bureaucracy of myopic, non-innovative state government “executives” in four years – he’s naive. He might be able to pick one department, like DMV, and gut it. It would be hard to the General Assembly throwbacks to defend DMV. Too many Virginians have dealt with that morass.

  8. tmtfairfax Avatar
    tmtfairfax

    Organizations should not reorganize for the sake of reorganizing. However, an organization that does not adapt to changed and changing conditions will fail. And everyone knows that, over time, virtually every organization becomes focused on preserving itself over its missions and goals.

    Our little 10-lawyer firm is in the midst of finding how we need to change in order to meet market demands from clients.

    1. Nancy Naive Avatar
      Nancy Naive

      Upon taking overr as CEO, a fellow opened his center desk drawer to find 3 envelopes. One said, “If things go wrong, open first”.

      After a year, sales had plummeted, costs were up, and the CEO opened the first envelope. A piece of paper fell out and on it was written, “Blame your predecessor.”

      After the next year things had gotten dismal and the CEO opened the envelope that said, “Open me next.” Out fell a piece of paper with one word, “Reorganize”.

      At the end of the third year, the investors were threatening lawsuits, the banks were calling loans, and our CEO opened the envelope that said, “Open me last”. Its note said, “Write 3 letters”.

      And with that, I confer upon you an MBA.

  9. VaNavVet Avatar
    VaNavVet

    Some would say that he was elected to reduce the chaos not to be transformational. As JB noted, it is always easier to talk than to produce.

  10. energyNOW_Fan Avatar
    energyNOW_Fan

    I was going to say it does not sound like the old Virginia Way, but then I looked up Youngkin on Wikipedia, sheesh Richmond native. I bet Hogan was not born in Maryland, let me check: hmm close enough for government work: Wash DC.

    1. how_it_works Avatar
      how_it_works

      It doesn’t say. Is he a descendant of Pocahontas? That’s very important to be a successful Virginia politician, from what I’ve heard.

      1. Dick Hall-Sizemore Avatar
        Dick Hall-Sizemore

        Either a descendant of Pocahontas or a member of the FFV (First Families of Virginia–https://en.wikipedia.org/wiki/First_Families_of_Virginia

        1. how_it_works Avatar
          how_it_works

          Also known as the “plantation class”.

          1. DJRippert Avatar
            DJRippert

            Actually, the Descendants of Pocahontas aka the Plantation Class tend to pull the puppet strings of those elected to office in Virginia rather than seeking elected office themselves.

          2. how_it_works Avatar
            how_it_works

            So that’s why there’s no limit on campaign contributions in Virginia….

  11. Nancy Naive Avatar
    Nancy Naive

    Who’s paying for this guy? Or is this just another example of a Republican throwing money at their friends?

    1. YellowstoneBound1948 Avatar
      YellowstoneBound1948

      “Amusing” question coming from a person who has (probably) never objected to the escalating cost of government.

    2. DJRippert Avatar
      DJRippert

      Ha ha ha! Yes, I’m sure that Harvard educated Moeller, a McKinsey partner making at least $2m per year, feels deeply personally enriched by Younking “throwing” $175k per year (at most) of cash at him.

  12. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    Getting Richard Cullen to join his office on a full time basis is probably his smartest personnel decision to date. Cullen will bring the knowledge of Virginia politics and government that his administration so far lacks. The far right wing of the party has got to be disappointed so far. https://richmond.com/news/state-and-regional/govt-and-politics/richard-cullen-to-leave-mcguirewoods-to-serve-as-counselor-to-youngkin/article_603f60ae-da00-5b32-9ccf-c81d7559585c.html#tracking-source=home-top-story-1

  13. YellowstoneBound1948 Avatar
    YellowstoneBound1948

    It will be difficult for one “private-sector” individual to make a big difference, but it is a start. What is needed is a heavy infusion of “private sector” thinking at every level of state government. In January 1995, Tennessee’s new governor placed private-sector individuals in virtually every one of the executive departments, most of them at commissioner (the highest) level. Two of these appointees went on to fame: Bob Corker, who recently concluded two terms as a United States Senator, and Marsha Blackburn, who is a member of the U.S. Senate now. The Democrats grumbled, at first, but they came on board eventually, and Tennessee is prospering. For all the naysayers here, stow your “Travel Magazine” surveys that show Tennessee’s quality of life is mediocre. That is pure balderdash. Tennessee is heavenly to most, and all of you are invited to enjoy our lower cost of living, clean air and water, and hospitable people. Come on down and see for yourself. (Bring your businesses with you.)

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      I am just starting my career my career at DPB when the George Allen administration took office, singing the praises of the private sector. During at least one meeting, I was directly admonished by one of the Allen political appointees that “private business does things cheaper and better than government”. A funny thing happened: most of those Allen political staff members went on to careers in the public sector.

      By the way, wasn’t it “private-sector thinking” that resulted in the Great Recession of 2008 and government had to bail out private businesses, including the automobile industry?

      1. how_it_works Avatar
        how_it_works

        Depending on who you ask, the Great Recession of 2008 was caused by Corey Stewart, Chairman of the Prince William County BOS, cracking down on all the illegal aliens living in the county.

      2. DJRippert Avatar
        DJRippert

        “A funny thing happened: most of those Allen political staff members went on to careers in the public sector.”

        No doubt they figured out that they could grift far more money in the public sector than they could ever earn in the private sector.

        Meanwhile, George Allen and the private sector? That man never did anything in the private sector. He graduated from law school in 1977 and was running for office by 1979. In 1983 he became a delegate.

      3. DJRippert Avatar
        DJRippert

        More like private sector malfeasance that led to the so-called Great Recession of 2008. And you know what happened to those banking executives that committed the malfeasance? Nothing. The Obama / Holder regime didn’t prosecute a damn one of them. If you want to read a good book about the utter and complete failure of the Obama Administration to enforce US law against the banking executives who caused the recession of 2008 I’d suggest Matt Tiabbi’s “The Divide”.

        Prosecuting criminals and punishing those found guilty is a core competence of government. Bush did it with Enron, Worldcom executives. Obama failed miserably with the white collar criminals who caused the 2008 recession.

        However, Obama was compensated for his negligence. Three months after leaving office he was getting $400,000 for a single Wall Street speech.

        https://www.bbc.com/news/world-us-canada-39710529

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