The effort to privatize Social Security did not go anywhere and is on its way to a slow death. In any case, even if something happens, it will be not be at the scale at which the president wanted it. So what went wrong? Let us analyze this failure (from previous successes) since there are so many lessons for business leaders, particularly those that do business with consumers. (Related article: Impact of Social Security privatization on businesses)
Success stories of Bush Administration
From a marketing standpoint, the administration has achieved two remarkable successes since 2001.
- War on terror, particularly Operation Iraqi Freedom. President Bush had solid support from many American people because those that were strong supporters of war did not have to fight it. If you can see all the action from your couch while sipping chilled beer, it is easy to agree with the president.
- Discrimination against gays, and more specifically, denying gays the right to marry. Bush owes his election to those extra votes he received from those Americans who strongly support legalizing discrimination. Again, if you are not gay or do not have gay family members, it is an easy decision to support discrimination against others.
So how do Americans think when major change is about to happen?
"What is in it for me?" Consumers will support any change as long as it does not affect them directly. For instance, credit card companies keep charging more from those who have difficulty paying their bills but those who pay on time never protest because it does not affect them directly.
We continue to shop at Wal-Mart even though it means that our friends and family members lose their jobs. Most Americans do not see the direct correlation between shopping at Wal-Mart and impact on employment in the US.
What does it mean for you?
- Social Security privatization was about managing change and the Bush Administration did not grasp that simple concept. Change management is a key step every time you are trying to make structural changes that can affect your employees or customers or shareholders. Invest in good change management expertise prior to undertaking major changes.
- Never present a half-baked idea to your target audience. In a world where communication is almost instantaneous, lack of complete details is a recipe for disaster. The White House never really came up with complete details on what the details of the privatization plan were, leaving everyone to make up their own story. No wonder then that what we don't understand, we rarely support.
- Be careful in crafting the message when monumental change is planned. Work with everyone you can to make it happen. Bush Administration completely refused to work with any opponents on what amounts to a fundamental change in the way Americans live their lives. No change of this magnitude can succeed unless all parties buy into it and "own" it.
There is another theory that I have developed. President Bush never really wanted to privatize Social Security the way he never really wanted to ban gay marriage. He thinks that both these issues really resonate with his base.
This is all fine in the world of politics but I have seen such things happen in business. My advice: Stay away from playing these games in an enterprise.
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