Tips on Consolidation Strategies

Seeking to measure actual ROI on consolidation of services, a SC city is studying proposals on strategies for moving forward. We provide details on this story as well as research from other completed studies and tips on consolidation from a leading consulting firm

What Happened?

Municipal leaders in Anderson, South Carolina, reviewed a consolidation strategy proposed by one of three consulting firms demonstrating the value of sharing local services with neighboring communities. Management Partners consulting firm claimed consolidation of city programs could save taxpayer money in the long-term, and also create a better experience for local residents.

So What?

Anderson leaders have been reviewing consolidation proposals and studies for two years, unconvinced on the exact returns of a merging of services and programs. City and council officials are considering ideas to consolidate permitting and inspections, information technology, animal control and various law enforcement practices with nearby communities.

Anderson, like many other communities nationwide, sees consolidation strategies as a way to make better use of resources while cutting costs and improving services to residents.

Florida Consolidation Study

A report out of Florida State University assessed the ramifications of city-county consolidation strategies in terms of cost efficiency and delivery of services to residents. The study looked at the merging of the city of Tallahassee and Leon County and how consolidation can enhance economic development through several techniques that counters fragmented governing with more sophisticated measures including:

  1. Increasing accountability, allowing citizens to identify entities responsible for providing services
  2. Boosting social capital and civic participation, as well as higher levels of efficacy and political participation in merged public programs
  3. Eliminating unnecessary spending for overlapping services and unused resources
  4. Enhancing economic development through reduction of competition between communities and drive down information costs
  5. Remedying racial and economic segregation through equal distribution of services, not delivery based on tastes or tax levels

What To Consider

When researching consolidation options to cut costs while utilizing all available resources and manpower, do not forget to ensure the merging of tasks will improve results, not just maintain the status quo. Babak Armajani, chair for the Public Strategies Group, explains how consolidation research and implementation can be successful with a few simple tips:

  1. Focus on value for dollars spent on the project, not just straight costs to prevent a continual need to re-consolidate services or programs
  2. Consider consolidation efforts from the viewpoint of residents receiving the services and make sure the delivery of programs is a top priority in establishing best practices and strategies
  3. Brainstorm merging two or more programs or services into an entirely new structure or entity, rather than having one community’s department absorb the other’s to create an acceptable chain of command and independent entity

Armajani points out that not all communities will benefit from consolidation, and could consider cost saving alternatives such as:

  1. Creating incentives for voluntary consolidation of organizations or services
  2. Combine strategies for similar organizations without creating a single chain of command
  3. Encourage jurisdictions or agencies to purchase services from a private source through a group purchasing program to increase purchasing power and take advantage of market competition

What Else?

Gov1.com is following consolidation efforts that focus on economic benefits and utilize a competitive marketplace for optimal outcomes.[/dw-post-more]