Local Government, the New Normal, and Benchmarking
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Transcript of Local Government, the New Normal, and Benchmarking
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Local Government, the New Normal,
and Benchmarking
April 24, 2014
Ray A. ScherAssistant Director, Office of Management and Budget
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The View from Miami-Dade County
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Managing for a Diverse Community
• 2.5 million residents
• Diverse (61% Hispanic, 18% non-Hispanic White, 18% Black and 3% Other)
• Approximately 50% Foreign Born
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Managing for a Diverse Government
• Strong Mayor / 13 District County Commissioners
• Two-Tier Form of Government– 55.5% residents live in cities
(including Miami and Miami Beach)– 44.5% live in Unincorporated Area.
• Many County Services: Many Disparate Customers
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Recent Budget Picture…
$3,800
$4,000
$4,200
$4,400
$4,600
$4,800
$5,000
$5,200
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Ope
ratin
g Bu
dget
(Mill
ions
)
Fiscal Year
Miami-Dade CountyOperating Budget
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Recent Workforce Picture…
20,000
22,000
24,000
26,000
28,000
30,000
32,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Num
ber o
f Em
ploy
ees
Fiscal Year
Miami-Dade CountyBudgeted Employees
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Catalyst for Change…Last few years - considerable transition:• Employee health insurance and retirement
contributions + other pay cuts (~ 8% to 25%)• Downsizing of workforce
• Additional pressure to save $s with little or no service impact
Managing with FACTUAL DATA(and using benchmarking!)
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Examples of Miami-Dade County’s Use of Comparative Analysis (a.k.a. Benchmarking)
Example 1: Solid Waste Transfer
Example 2: Animal Services
Example 3: IT Procurement
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Example 1: Solid Waste Transfer
Challenge: Lower the cost of transporting solid waste to disposal facilities in the County
Methodology: Lean Six Sigma / DMAIC (including comparative analysis with Palm Beach)
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Example 1: Solid Waste Transfer (continued)
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Solution: Lower Tare Weights of Trucks and On Board Truck Scales for Greater Consistency
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76.8%
22.8%
-4.9%
-26.1%-18.3%
-51.2%-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Tractor Trailers WITH Onboard Scale Tractor Trailers WITHOUT Onboard Scale
Out
of S
pec
-In
Spe
c
Comparison of Tractor Trailerswith/without Onboard Scales
% Trips WITHIN target (77,000 - 80,000 lbs)
% Trips OVER target (>80,000 lbs)
% Trips UNDER target (<77,000 lbs)
Data from April 2013 through March 2014
(Vehicles 110421, 110507, 110509, 110513)
Example 1: Solid Waste Transfer (continued)
Results: Pilot Project showing savings of over $350k annually
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Example 2: Animal Services
Challenge: Lower the overall cost
Methodology: Plan-Do-Check-Act (including comparative analysis with other jurisdictions)
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Example 2: Animal Services (continued)
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Solution: included Comparative Research (benchmarking survey): 8 jurisdictions including 5 in Florida Obtained information about successful practices
in licensing, customer service and enforcement Also visited Broward County’s Animal Care and
Regulation Division for more detailed information about its animal licensing process
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Example 2: Animal Services (continued) Results:
5 of 8 jurisdictions outsource data entry of rabies certificate information submitted by veterinarians
Several jurisdictions don’t respond to all stray calls; only aggressive or contained animals
Evaluation of different work schedules; (3 of 8 jurisdictions use 4x10s)
Revised tag/rabies citations procedure: hybrid with grace period for compliance 13
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Example 3: IT Procurement
Challenge: Improve the process and lower the cost
Methodology: Plan-Do-Check-Act (including comparative analysis with other jurisdictions)
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Example 3: IT Procurement (continued)
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Solution: included Comparative Research (benchmarking survey):
MDC plus 5 other large counties in Florida
Obtained information regarding general IT demographics and purchasing related practices
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Example 3: IT Procurement (continued) Results:
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Table 6: IT Procurement Characteristics of Other Large Florida Counties
Florida
Counties Surveyed
IT Goals,
Policies and Standards Set by Entity Other than IT Dept.
Technical
Specifications Prepared by
User Departments
Legislation Specific to
IT Purchasing
Actively Utilizing Advance
Acquisition Planning
Utilization of
External Contracts for IT Purchases
Broward Duval Hillsborough Miami-Dade Palm Beach Pinellas
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Lessons Learned
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Comparative analysis is often a beginning or means to an end, and not the end (result) itself
When selecting benchmarking partners, consider factors/differences but best to be open minded: Large vs. Small Govt, City vs. County, Public vs. Private Sector, etc.
There are always doubters/naysayers that will not support comparative analysis
Comparative Analysis (Benchmarking) is an important and useful tool in the New Normal
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The End(Questions and Answers?)