Making radical changes to the cost structure.
Amid an austere budget environment, many government agencies are looking for pragmatic strategies and proven approaches to assess their fundamental cost structure, realize rapid cost reduction without reducing service quality, enable lasting operational transformation and set the stage for strategic cost reduction to achieve longer term objectives.
While getting the cost equation right can be overwhelming for governments in countries reeling from the global economic crisis and the new normal that has resulted, there are excellent opportunities to make inroads in this area. Cost reduction does not have to be an all or nothing proposition. In other words, radical changes in cost structure do not have to mean radical changes in program quality.
Planning for the best of both worlds—lower costs and service quality sustained over time—requires new ways of thinking and working. It means more than identifying opportunities for more efficient processes and operations. Instead, it means acting on those opportunities rapidly and reinvesting cost savings into critical programs and operations.
Transforming cost structures also requires approaches that free resources for more value-added activities so they can manage the dual challenge of rising demand and budget restrictions with renewed tools and confidence.
Delivering Public Service for the Future
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