Tweet

Why City Governments are Floundering

Guest post by: Pat Lynch

Article Overview: What is preventing decision-makers from devising an effective process for allocating their cities’ scarce resources in ways that will allow them to re-group successfully in the aftermath of slashed budgets, plummeting revenues, forced furloughs, and layoffs?

Why City Governments are Floundering

Across the U.S., scores of municipalities technically are bankrupt, as their financial obligations far outstrip their ability to cover them. Some cities already have declared bankruptcy legally. Politicians nationwide desperately are seeking ways to stave off bankruptcy by stemming the flood of red ink that threatens imminent financial disaster. So far the red ink is winning.

What is preventing decision-makers from devising an effective process for allocating their cities’ scarce resources in ways that will allow them to re-group successfully in the aftermath of slashed budgets, plummeting revenues, forced furloughs, and layoffs?

A major impediment is the lack of a clearly articulated “big picture” – i.e., a city-wide mission statement or vision. A quick check of half a dozen large cities across the U.S. reveals no city-wide mission statements on their official web sites. Yet most of the departments in each of those cities do have mission statements prominently displayed. And therein lies the problem. Although having department-specific mission statements surely is desirable, the departments’ individual efforts must be directed toward the same collective end. Unless those diverse missions are aligned with the city’s mission, all you have is a set of competing and conflicting interests – hardly the basis for setting priorities effectively.

The importance of having an overall big picture has never been more critical for cities than it is now, when resources are exceptionally scarce. Given the need to change decades-old structures, programs, processes, systems, and regulations that no longer work, at the same time that demand for government services has skyrocketed, setting clear priorities to allocate scarce resources most effectively is key to a successful rebuilding effort. In order to set priorities, however, there must be a unifying frame of reference. Otherwise, how can decision-makers and stakeholders agree on what programs or services should take precedence over others? Some groups’ “must have” lists are viewed as “nice to have” or even “unnecessary” from others’ perspectives. Absent the touchstone of a clearly articulated overall mission or vision, who is to say which group is “correct?”

For example, in February 2010, the Los Angeles City Council was considering drastic actions such as laying off over 1,000 employees, eliminating departments, and cutting public safety budgets and staff in order to erase a $208 million shortfall. During discussions about how to close this gap, one City Council member went on record as saying that he wanted to do whatever was necessary to preserve the $1 million allocated to paying a handful of city employees who work as calligraphers – i.e., those who handcraft the ornate certificates of recognition that elected officials like to hand out to constituents and other supporters.

Who is to say that this council member’s priorities were misplaced? After all, while most Los Angeles departments have their own mission statements, the City itself has none. As a result, there is no definitive basis on which people can decide whether keeping calligraphers on the job is more or less important than providing adequate levels of public safety or keeping libraries open.

While there are no easy solutions to allocating scarce resources, you first must have an effective process to guide the tough decisions. Trying to set priorities without benefit of a city-wide big picture is akin to trying to put a 1,000-piece jigsaw puzzle together without knowing what the picture is supposed to look like – and while both hands are tied behind your back. When I advise clients how to prioritize their scarce resources, step one necessarily is articulating a clear, overall big picture. That picture becomes the touchstone by which all decisions are made, and by which priorities may be set.

What is your organization’s big picture? Making sure that you have one – and that all stakeholders know what it is – ensures that you have a solid foundation upon which to set organizational priorities.

Related Articles
  What is the government’s role in supporting microfinance? FAQ
  SME's - why business from government is a challenge
  SMEs - SME finance and capital formation
  SME's - regulation in Africa
  World Class Airports at Denver
  SME's - The need for more thought by African governments on the informal sector
  The internet is like New York City. Only better.
  Different Types of Bonds
  SMEs - regulation in Africa
  Green Thinkers Meet in Brussels
  Where You Start Is Not Important
  Precious Moments
  Examples of Sustainable Development
  SME's - the impact of regulation
  SME's - government purchasing opportunities
  Doing Business with the World - The New Role of Corporate Leadership in Global Development
  4.0 The Role of Governments: Microfinance in Africa - Experience and Lessons from Selected African Countries
  Outdoor Billboard Advertising - Working With City Hall
  7.1 Making the case for reform: A pro-poor training strategy

Article Tags: budget cuts, city government, resource allocation, set priorities



Related Forum Posts
Re: About: product production! - At the end of the day, having a patent, copyright or trademark are pretty much useless because if the person who infringes on your legal rights and has more money than you... they'll bleed you dry (i.e. outlast you by being able to pay legal costs) long before you can finish the lawsuit. For instance, let's say the City of Toronto copied my artwork. Do you really think I can file a lawsuit and win against the City of Toronto?? Not a chance. Lawyers will try to tell you differently, but that's only because they want your business.
Re: Will North America make carbon taxes anytime soon? - There are various carbon taxes sneaking in. The plastic bag being one of them, and in the UK there are higher taxes on bigger cars. Governments to me never seem to shut up about green stuff, and their answer is carbon tax and re-investment (with lots of money wasted in between due to governments being less efficient than the market). Personally I am more for tax breaks to companies and individuals that are efficient and pollute less. So that such companies have a competitive advantage, without more money being wasted through governments. Just think how quickly green technology would evolve if businesses and employees paid little to no tax. The motivation factor would be tremendous.
Still having problems? - Hi guys - sorry for the delay. I was in New York City for the week and got engaged! I've posted a few items today without issue - are you still experiencing problems?
Re: Do you think you can win? - Certainly was a marvelous and entertaining finish, both are winners for different reasons, but a deserving win for Man City. Happy for QPR Some say winning isn't everything, but winning in Entrepreneurship is a testimonial to you idea, concept or product
Nu America - Entrepreneur Profile - Hi DeepThought, The September edition of Entrepreneur might be of some value to you. It highlights Nu America, a New York City advertising, marketing, and promotion agency focusing on the urban music market. Their projected sales for 2006 are $7 million.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

What To Do With a Troublemaker?

Google Panda and Your Search Engine Rankings

Steps For Starting A Small Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.