38 Studios 'no' vote pushes lean ideas

WYOMING, R.I. (WPRI) --  The lone dissenting vote in the Economic Development Corporation board’s decision on the 38 Studios loan guarantee sees nothing new in the RIPEC study about the agency.

“It looks like 3 other studies that have been done,” Karl Wadensten says, shaking his head.

Wadensten owns VIBCO, a Richmond company that employs 70 people. He is pushing for full implementation of Rhode Island's recently passed Lean Government bill that calls for state agencies to adopt a customer friendly, 'lean' philosophy. 'Lean' was developed from how Toyota has run its car factories.

During a tour of his industrial vibrator plant, one employee summed up what Wadensten considers a big part of the idea, in 2 words.

“Eliminating waste,” he said.

Wadensten is convinced the ‘lean’ philosophy would streamline state regulations that hamper existing and new businesses.

“We don't have anyone ever teaching the process,” Wadensten said. “It’s about process not people. An efficient government would be good for its customers and help create jobs.”

As he walked us by his busy employees, the EDC board member also pointed to communication problems among the 13 or so agencies that businesses have to deal with in Rhode Island.

He scrawled a rough draft of the difficult structure, saying the various government departments work vertically within their offices but their customers, as in business owners, have to move laterally from one agency to the next.

“We're probably 3 to 4 times the length of time to cut through the red tape and all the procedural items.”

The $75 million loan guarantee to Curt Schilling's 38 Studio's might be one time there was not enough red tape. Wadensten, appointed by Governor Don Carcieri, stuck the board with the only no vote.

“I polled experts around the country,” Wadensten said. “And I asked, would I have put 75 million dollars of my hard earned money into this venture? And I couldn't justify it. I couldn't justify it.”

But a VIBCO pot hole vibrator might be a rolling metaphor for how hard government change can be. Wadensten gave one to the state, saying it would make pot hole repairs last 4 times longer.

“They can go out and fix it 1 time or fix it 5 times. I want to do it once."

But after the state received the machine; “They didn't use it,” Wadensten said with a slight grin. “They didn't use it.”

Still, he is optimistic about injecting 'lean' ideas into government and predicts with training and hard work, it would produce improvements in as little time as 3 months.

“People are cynics and skeptics and talk about this all the time. State agency. We're too big. We're too small. We don't have the time. It's just a cop out.”

Wadensten is confident Rhode Island could go from 'worst to first' when it comes to business regulation and efficiency.

Send your news tips to Walt Buteau at wbuteau@wpri.com and follow Walt on Twitter: @wbuteau