Instead of Cost Reduction, Make Cost Reallocation Your Mantra
As noted in my previous post, service reviews are started for a number of reasons. The driving factor for them is that governments, on whole, are being asked to meet an increasing service demand from their community, without increasing tax rates.
To tout the success and impact of these initiatives governments tend to use on measure above all else: cost reduction.
Cost reduction is an easy, effective, and universally understood metric for success, and this is why it is commonly used. Many times, it is the only publicly available result of the service review. In a quick Google search, I was able to find calculations from Regina, Vancouver, and Toronto, ranging from $1.95 million to well $167 million in estimated savings.
That said, I believe cost reduction does a poor job of communicating the success of service reviews: Read more