State and local governments are really starting to feel the pinch of the current economic slowdown. Property tax revenues are down, layoffs are occurring, budgets are being cut almost everywhere. Big city mayors are even trying to get a piece of the $700 billion bailout package.
So how does a government cut its budget in a responsible, selective way, so that it can continue to deliver its most important and valued services to its citizens?
Information helps reduce the negative impact of revenue set-backs.
Now, more than ever, there is a big payoff for governments that are able to track their true outputs and outcomes. For these types of organizations, there need not be any draconian, across-the-board, "who knows what the effect will be" budget cuts.
An example: if you know the number of kids you are serving in after-school programs and have conducted satisfaction surveys of the kids and parents (with information on what they value and why), you have the data needed to start brainstorming how the same quality program can be delivered to the same number of children at a lower cost. Your folks are clever; they are likely to come up with programming options that cost less and are still fun for the kids. They might even ask the kids for ideas. Dodge ball might be a bigger hit (or at least as much fun for the kids) as the Karate instructor who comes in twice a week (and costs a lot more).
Of course, the reverse is also true. If you don't know the current service level, satisfaction levels, and drivers of those satisfaction levels, you can't assess the impact of a potential cut.
If you're not measuring now, you're behind the curve. But better late than never.
Start with a few critical measures for each program. Use samples of data to get a baseline.
For instance, survey a sample of residents to get data on their satisfaction with government communication on events and programming. Make sure it is a representative sample (i.e. be sure that your survey is not limited to people who use computers -- you might have to make some calls). Also ask how they prefer to receive information on events and programming. It could be that including information in school newsletters or in the "Community" section of your newspaper works just as well as that expensive brochure you put out (and don't forget the labor and postage costs of your glossy magazine).
Make cost effective changes and monitor the satisfaction rating; if there is no slippage, you found a way to save with little or no negative impact on your outcome.
Remember: you'll need to keep measuring.
Even after we've passed through the current slow-down, you have to keep watching the numbers on your "Communication Scorecard." Community demographics and preferences change, so a very cost-effective (and citizen satisfying) solution for today may not be very cost-effective tomorrow. As more and more people turn to the web for information, for example, the newsletter/newspaper listings may not be enough to achieve the same levels of satisfaction.
Not to worry, though. If you track key performance measures, you will be the first to know when such change and savings opportunities occur.
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