Transcript DMG-MAXIMUS
Management Studies: Improving Local Government Efficiency and Effectiveness 2010 CALAFCO.gif Annual Conference Thursday, October 7, 2010 The Situation: Key Challenges Facing Local Leaders Decline in revenues: - Assessed value of taxable property will decrease by 2.9% in FY 2009 / 2010, and by 2.2% in FY 2010 / 2011 - Taxable sales will decrease 7.5% in FY 2009 / 2010, and by 6.3% in FY 2010 / 2011 Increased cost of doing business (e.g., cost of living, pension contributions, etc.) An angry constituency: - Demand for transparency and accountability - Increased attention on efficiency and effectiveness - Focus on staffing levels, compensation, etc. The Complication: Key Obstacles to Address the Situation Public continues to demand high levels of service: - Quick response times by fire and EMS - Strong presence of police officers on the streets - Access to community and recreational services - Clean parks, water, streets, etc. Resistance to change: - Political (loss of control, authority, etc.) - Cultural (how staff does their job, identity of their position, etc.) - Organizational (re-engineering processes, technology advancements) Outdated service delivery approaches, technologies, etc. The Questions How do we go about controlling costs? How do we maintain / enhance service levels? How do we optimize / leverage our resources? How do we engage our community? How do we engage our staff? The Answers Assessing your organization, operations, and management - Quantitative and qualitative analysis - Identifying opportunities for improvement Surveying your staff: - Satisfaction of working environment - Perceptions on utilization and workload - Perceptions on improvement opportunities Surveying your constituency: - Satisfaction of current service levels - Perceptions on service and program delivery gaps - Prioritization of services and programs Introduction to the Role of Management Studies A Management Study is also known as the following: - Organizational and Operational Review - Performance Audit - Staffing and Workload Analysis - Cost Recovery and Cost Containment Study - Business Process and Re-Engineering Analysis Can be conducted on the following basis: - Jurisdiction-Wide (all departments at once) - Per Department (e.g., police / sheriff, fire, public works, etc.) - Per Function (e.g., code enforcement, payroll processing, etc.) Who Conducts the Management Study? Entity Advantages Disadvantages Internal Management Staff - Good buy-in - Limited experience / context - Internal understanding - Less independent - Low-cost effort - Less objective Professional Association - Access to best practices - High-level analysis - Professional experience - Qualitative focused - Good credibility - Lower-cost effort Independent Consultant - Independence - Investment of resources - Objectivity - Staff resistance - Related expertise - Accountability to client Summary of Key Tasks (1) Task Issues Addressed 1. Initial Interviews What are the key challenges being faced? How are budget reductions impacting service levels? What are the workload trends? 2. Descriptive Profile How are operations organized, staffed and operated? What are current workloads and levels of service? What are costs? What technology is currently employed? 3. Surveys What is the public satisfaction with current services, what are the perceived gaps? What are the key issues as perceived by employees, improvement opportunities? 4. Best Practices How does the department / function compare to other communities? How does the department / function compare to industry standards of efficiency and effectiveness? Summary of Key Tasks (2) Task Issues Addressed 5. Staffing and Operations Are work processes efficient and effective? Are service levels appropriate? Is staffing appropriate given workload demands? 6. Org. / Management Does the organizational structure promote efficiency? Do managers have the tools and information to monitor efficiency and effectiveness? 7. Alternative Service Are there opportunities to consolidate services internally or externally? Are there opportunities to expand the use of contracts for service? 8. Report / Presentation How should recommendations be implemented – timing, responsibility, outcomes? What are the costs / savings associated with each? What benefits will be achieved? Examples of Best Practices (1) Law Enforcement: - Patrol proactive time is between 40% to 50% after subtracting time handling calls for service and administrative tasks. - Sergeant to Officer ratio is between 1:6 to 1:9 - Approximately 20% to 30% of community-generated calls for service are handled through alternative service delivery. - The number of active cases for “generalist” detectives average 12 – 15 cases each. - The deployment of personnel is regularly and formally evaluated and is based on the calls for service per day, per hour and area of the community. - Crime analysis information is made to patrol and investigation personnel on a daily basis. Examples of Best Practices (2) Fire and Emergency Medical Services: - Fire agencies able to respond within 1-minute of receiving the dispatch time (i.e., the “reflex” or “turnout” time). Four-minute travel time for first responding unit for 90% of emergency calls. - Deliver a minimum of 14 personnel (three engines, a rescue and a truck) to a structure fire with a travel time for all responding units of 8-minutes 90% of the time. - Dispatching agencies able to provide 1-minute or lower dispatch times for emergency fire and EMS calls. - Requiring sprinkler systems in new commercial / industrial occupancies and residential units. - A formal public education program is provided to improve fire safety knowledge and awareness. Examples of Best Practices (3) Public Works and Utilities: - A five-year capital improvement program has been developed that clearly identified the goals, priorities, and expected outcomes of the program. - Approximately 1% to 2% of storm-water, water, and sewer collection mains are replaced or relined annually. - Reactive, unscheduled maintenance (repair of failures) require 20% of available labor hours, while preventive maintenance requires 50% of available labor hours, and scheduled repair work and corrections require 30% of hours (for water operations and distribution) - Street sweeping service levels are targeted as follows (residential is once per month, downtown and other major commercial areas are twice per week). - Potholes are patched within one workday of receipt of the complaint. Examples of Best Practices (4) Planning and Building Safety: - A one-stop shop or Permit Center exists for submittal of discretionary permit applications. - The costs of the discretionary permit process are recovered through fees. - Authority for approval of minor discretionary permits has been delegated to staff or zoning administrator. - Discretionary permits that require approval are processed within 45 days. - 50% to 75% of the building permits requiring plans are checked over-thecounter. - 5% to 10% of the building permits are issued on-line (re-roofs, water heater and furnace replacements, etc.). - Building inspectors conduct 12 – 15 building inspection stops per day. Examples of Best Practices (5) Administrative Services (HR, IT, etc.): - There are approximately 90 – 100 employees per HR FTE. - Human Resources has developed a strategic plan that includes retirement projection rates and prepares for replacement of lost competencies and skills. Average recruitment times include 45 – 60 days for clerical and operations staff, 60 – 90 days for professional staff, and 120 – 150 days for management staff. - The ratio of centralized Information Technology Department staff as a percentage of total organization-wide staff is 2% to 3%. - There is a current IT Strategic Plan in place which addresses future business needs and technology requirements. - City Clerk staffing is approximately 1 FTE per every 10,000 to 15,000 residents. Case Study: City of Lathrop Police Services Situation The City of Lathrop has been receiving contracted police services from the San Joaquin County Sheriff for the past 20 years. Complication For the past several years, the contract costs were rising by approximately 10% annually – which is unsustainable given the City’s economic situation. Question How can the City control costs, and what are the alternatives approaches to service delivery? Answer Analysis of the billing rates indicated excessive overhead rates were being charged by the Auditor / Controller (i.e., unit supervision overhead charged for the contract police chief, overhead charges being billed on overtime hours) – resulting in cost reductions of $300K - $400K. Changes to current organization and service delivery approaches for cost savings of up to $300K. Discussion / Questions Contact Information: Randy Tan Senior Manager Matrix Consulting Group www.matrixcg.net 650.804.6136 [email protected]