Reader says its not about getting “bigger” it’s about taking advantage of “best practices”

File Photo by Boyd Loving

Reader says its not about getting “bigger” it’s about taking advantage of “best practices”

It isn’t about getting “bigger”. Shared services and outsourcing are about taking advantage of “best practices” and eliminating wasteful/redundant overhead costs. Several steps are necessary:

1) Identify where wasteful costs exist
2) Evaluate whether efficiencies can be achieved through a cooperative agreement with other municipalities and quantify the specific efficiencies/savings and how they will be achieved
3) Structure and implement an agreement that actually realizes those efficiencies/savings
4) Once implemented, the process needs to be monitored to ensure that the savings continue to be achieved

When these agreements fail it is usually because they were entered into without quantifying the efficiency savings, properly structuring the agreement or monitoring them to ensure that the savings are being achieved. Shared services are not always the answer. However, when done properly in the right areas, this approach can be extremely effective. As with anything, it requires attention to detail.