Managing Change: Frequently Asked Questions
Public Works Reorganization Questions and Answers
Why is the Public Works Department being
re-organized?
Following the recommendations of the efficiency study by KPMG, and
in response to the priorities of Tulsa citizens identified in the
independent citizens survey conducted earlier this year, the
department is being re-structured in order to trim costs and
deliver services more efficiently.
Who will choose the department heads for the new
departments?
The mayor has the ultimate responsibility for hiring
department heads, but a selection panel with representatives from
the TMUA, Transportation Advisory Board, Stormwater Drainage and
Hazard Mitigation Advisory Board and City Council, will also
advise.
General Questions and Answers
Why are we doing this study?
The goal of the KPMG Study is to improve the efficiency and
effectiveness of the operations and services provided by the City
of Tulsa. We want to identify strategic opportunities to reduce
costs, generate revenue and enhance efficiency in order to help the
City sustain the delivery of core services.
What's the benefit in this for employees?
This is a great opportunity for employees to participate in
shaping the future of the City of Tulsa as an organization, and
improving the work environment. By learning all they can about the
KPMG Study and participating in the process, employees will help us
to figure out smart solutions as we roll up our sleeves and figure
out a game plan for the future. At this time, the ideas put forth
in the report are opportunities, not mandates. The ideas in the
report will need to be further weighed and evaluated. This is an
ongoing process that we will begin immediately by evaluating,
selecting and implementing the best recommendations and then
continue long term, working together to develop additional ways to
operate more efficiently and effectively. Our goal is job
preservation and ultimately a better revenue/financial position
that will also benefit employees in the long term. By playing a
role in the process, employees can help us navigate our way through
these challenging times and protect jobs. We have outstanding
employees, but some inefficient, outdated processes and programs.
Let's take a common-sense approach and figure out how to improve
those inefficiencies and better utilize taxpayer money.
What did KPMG find in their review?
Key findings in the report include:
- Sixty-one percent of city services are not mandated (some may
be strategically aligned or provide critical support)
- Of the total services provided, 69 percent should be
benchmarked for cost-effectiveness (and are not currently)
- Sixty-one percent have no basis to determine if the service is
competitive with other private or public organizations
- Only 12 percent of services possess measurable objectives,
goals or performance measures
- Many customer-service provider relationships do not appear to
establish service-level expectations
- Many administrative processes are manually intense, with
multiple levels of manual approval
What are KPMG's recommendations for
improvement?
KPMG uncovered a number of opportunities, which will be evaluated
by employees and city leaders to determine which ones will be
implemented to improve services. Recommendations include:
- Strategic elimination, reduction or suspension of services.
There are some services that are not "core" or mandated, but may be
of strategic importance. By going through an extensive evaluation,
we will decide which services will be modified or eliminated. There
may be services that we evaluate and decide they have strategic
value, so we make the decision to leave it alone. There are also
services that may be enhanced, added or improved as we shift
priorities. What affect this will have on employees, we do not know
at this time. However, lay-offs are not our goal.
- Strategic sourcing of services across internal resources and
external providers to convert fixed into variable costs. In some
instances, external providers could be used to help reduce the
city's fixed costs. Employees may find their job duties changed or
adjusted from what they are doing today.
- Managed competition to ensure the largest savings possible.
Work units and groups may be encouraged to bid and compete against
external providers, with the work awarded to the group that best
manages to achieve costs savings and keep service levels high.
- Utilization of public-private partnerships to offset or
transfer the city's investment in operating and capital costs. The
best example of this that we have in place today is the successful
Gilcrease partnership with University of Tulsa. Tulsa Zoo
governance, in partnership with Tulsa Zoo Friends, is well on its
way to becoming another successful private partnership.
- Competitive bidding on the right to lease assets, including
operation, maintenance and financing of services. Some cities have
realized significant cost savings by leasing assets to companies
who bid for the opportunity to be the provider.
- Internal consolidation and development of inter-agency
relationships to maximize efficiencies. There are a number of
functions that are spread across multiple departments. By
centralizing some functions, we have the opportunity to be more
productive.
- Centralization and automation of processes and leveraging of
shared resources. There are a number of manual processes that are
time-consuming and inefficient. By centralizing and automating
these processes, we can spend our time more effectively providing
core services.
What type of employee involvement will there be in the
implementation of the findings?
To date, 457 employees have provided input on the 1,512 services
provided and related departmental processes. Going forward, a
Management Review Office is leading the effort. Department heads
will work closely with employees to help evaluate the
recommendations and assist in the implementation effort. Employees
are encouraged to be involved in this process to help us make
informed decisions given the expert knowledge you have of your
job.
What will be the City Council's role in the
implementation?
The City Council had representation on the Steering
Committee that helped guide the study's methodology and validated
and prioritized opportunities during the first phase of
implementation. It is expected that they will play an active role
as we continue to go through the evaluation process. It is likely
there are city ordinances that need to be modified (or added) to
help pave the way to change, which means they will play a crucial
role in the long-term success of this study.
Is this study primarily about privatization of city jobs
and services?
Privatization is not a primary goal of the study, though it is a
possible outcome for some services. In some instances, we may
strategically decide to source services across internal and
external providers to convert fixed costs into variable costs. We
may look at utilizing public-private partnerships to offset or
transfer the city's investment in operating and capital costs
(similar to what's already being done with the Tulsa Zoo and
non-profit entity Tulsa Zoo Friends). We may also look at a
competitive bidding situation, where outside companies might bid on
the right to lease assets that the city owns, including operation,
maintenance and financing of services. We may also look at
consolidating or centralizing services that today are spread across
a number of departments, or explore inter-agency relationships to
maximize efficiencies. There is also the possibility we will
eliminate non-core, non-mandated services. Privatization is
only one of many possible outcomes. Together, we will decide the
best course of action.
Is the purpose of this study to reduce the current
workforce?
That is not the intent of the study. From the beginning, the
intent has been to focus on strategic opportunities to improve the
efficiency and cost effectiveness of services provided by the city.
While layoffs cannot be assured against, any conversation about
reduction in workforce is extremely premature. With an $18.2
million shortfall predicted in next year's budget, this report is a
precautionary move to best position the City of Tulsa to weather
the storm. City employees have already been through a lot of
change, including layoffs, and our goal is to align city services
appropriately to mandates and the budget so that core services will
not only be restored, but maintained. The KPMG study is our
blueprint for the future.
What is the Steering Committee and what is their role in
this project?
A Steering Committee consisting of business and philanthropic
leaders and representatives from the City Council, the Mayor's
Office and Tulsa County oversaw the study process. The committee
approved KMPG's methodology prior to the study, validated potential
opportunities and provided input on priority initiatives for
consideration during the first phase of implementation. Going
forward, members include:
- Mayor Dewey Bartlett, Jr.
- Robyn Ewing, senior vice president and chief administrative
officer, Williams
- Phil Frohlich, founder/president, Prescott Group Capital
Management
- Ken Lackey, chairman of the board, The NORDAM Group
- Jeff Stava, COO, Tulsa Community Foundation
Advisors to the Steering Committee include:
- Terry Simonson, Chief of Staff, City of Tulsa
How will information about the KPMG Study be shared with
the employees?
You can expect frequent updates through the employee intranet, as
well as through their department heads. We'll be communicating
priorities, timelines and decisions regarding particular
opportunities as we go through the process. Stay tuned and - more
importantly - get ready to help as we roll up our sleeves and work
toward finding the best solutions. We have the road map. Now we
just need to figure out the best way to get there!
