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5. Initiate A Long-Term "Textbook"
<br /> Productivity Program
<br />
<br /> These programs focus on motivating individ-
<br />ual employees to work harder. Usually involving
<br />the creation of non-th eatening, productivity task
<br />forces made up of employees, they feature the
<br />creation of systems to measure "output," which
<br />may take years to materialize before any serious
<br />analysis can be accomplished. They also tend to
<br />deal in peripheral functional areas - such as a
<br />police records division, instead of police officers
<br />on the street. The usual outcome is that these
<br />programs begin with great flourish and are for-
<br />gotten before producing any results, or the re-
<br />sults are so negligible they have no real impact
<br />on the budget.
<br />
<br />THE WAY
<br />THAT WORKS
<br />
<br /> Is there a way to reduce local government ex-
<br />penses that works? Yes - but it requires thought,
<br />commitment, resolve, and some up-front money.
<br />Have you ever heard the idea expressed that
<br />"this city is so strapped for funds it cannot afford
<br />to spend even a little money to discover how to
<br />save a lot of money"? That idea is far from un-
<br />common, but just thinking about the obvious
<br />long-term result of such a concept discredits it
<br />pretty easily.
<br />
<br /> So what is the approach that works? It is to
<br />reduce expenses without reducing services,
<br />using a shod-term, results-oriented productivity
<br />improvement procram.~ This is ~.~w,~.~,-,~" in almost
<br />any local government, no matter how well-
<br />managed it is. Reduced to its simplest form: it
<br />means finding ways to accomplish all the work
<br />that needs doing with fewer empioyees! (Most
<br />heads of city operating departments we have
<br />seen are, however, not terribly interested in di-
<br />min!shin~ ;Fei,- ..... own work :"-~"~.,.,, ~.,.,~ "rh!s does not
<br />necessarily mean tavo,,s, may mean manaoed
<br />attrition.
<br />
<br /> There cert, ainly is no need to exempt police
<br />and fire departments from scrutiny for potential
<br />productivity improvements. The widely-held
<br />,,,y~h ma, a city canno, have too r'nsny po~ce offi-
<br />cers or firefighters, or that reducing their number
<br />diminishes pro:ection from lawiessness or fire,
<br />simply is not true. It is quite possiDie tc de;ermine
<br />the optimal number of police officers or firefight-
<br />ers. Having more than that number simply
<br />wastes money; it does not provide more protec-
<br />tion.
<br />
<br /> Cost reduction programs that work require
<br />commitment of the governing body and the chief
<br />administrator (mayor, city manager, county ex-
<br />ecutive). They must really want the 1coal govern-
<br />merit to be run for the benefit of its citizens. They
<br />must also understand that:
<br />
<br /> --Since local governments are very labor-
<br /> intensive enterprises, with the overwhelm-
<br /> ing costs in employee salaries and benefits,
<br /> any serious cost reduction will involve re-
<br /> ducing the number of employees.
<br />
<br /> --Costs can indeed be reduced without re-
<br /> ducing services.
<br />
<br /> --Long-held assumptions must be chal-
<br /> lenged.
<br />
<br /> --In the long-run, cost reduction programs
<br /> that work are good for everybody: citizens,
<br /> elected officials, administrators and em-
<br /> ployees, because the local government will
<br /> be more viable.
<br />
<br />FRAMEWORK FOR A
<br />COST REDUCTION PROGRAM
<br />
<br /> A framework for thinking out a cost reduction
<br />program that works is on the back page.
<br />
<br /> Cresap, McCormick and Paget
<br />
<br /> NEW YORK
<br /> 245 Park Avenue, New York, NY 10167
<br /> (212) 953-7000
<br />
<br /> WASHINGTON, D.C.
<br /> 2101 L S~reet, N.W., Was~ing~oa, D.C. 20037
<br /> (202) 483-2800
<br />
<br /> CHICAGO
<br /> 29S West Mad:.son S:."eet, Cnica~c, iL
<br /> (3121 263-7125
<br />
<br /> SAN FRANCISCO
<br /> 595 Market StreeL San Francisco, CA 9~105
<br /> (415) 781-8421
<br />
<br />LOS ANGELES
<br />1925 Cer~tu.%, C~ark East. Los Angeles. CA .-'9.3067
<br />(213) 556-0330
<br />
<br /> ATLANTA
<br /> 3475 Lenox Road, Atlama, GA 30326
<br /> (404) 261-0859
<br />
<br />
<br />
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