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Case # HR-50 | Stanford Graduate School of Business
In 2024, California DMV Director Steve Gordon could point to considerable improvements in the department under his leadership. Compared to when he took the role in 2019, twice as many DMV services were now available online, 60 percent of which were accessible through mobile devices. Average transaction times required to issue a Real I.D.—a new form of identification required for domestic air travel—excluding waiting times, had fallen from an average of 28 minutes down to just 8 minutes. Levels of employee engagement and customer satisfaction had substantially improved.
But the transformation hadn't been easy. When he arrived to lead the department, Gordon faced immense challenges: outdated technology, bureaucratic constraints, and an entrenched divided culture resistant to change. How had he managed to drive major improvements in such a complex and bureaucratic environment, while keeping everyday services online? The story of the DMV's turnaround revealed important lessons about leadership, innovation, and reducing friction under sizable legal, cultural, and organizational constraints in the public sector.
Michael Rothkopf, Professor Hayagreeva Rao, and Professor Emeritus, Robert Sutton prepared this case solely as the basis for class discussion. James Davidson, Jazmine Diaz-Esteves, Cristina Strombotne, Stephanie Woods, and Pablo Woythaler (Teaching and Learning Hub) created the multimedia and website design. Stanford GSB cases are not intended to serve as endorsements, sources of primary data, or illustrations of either effective or ineffective handling of an administrative situation. Funding for this case was provided by the Stanford Graduate School of Business. This case was reviewed and approved before publication by a company designate.
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