SOLUTION: University of Missouri Kansas City Operational Research Paper

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Case Study: New York City Duty Room Optimization An Operational Brilliance in Government Success Story Jane Wiseman Ash Center for Democratic Governance and Innovation Harvard Kennedy School July 2017 Case Study: New York City Duty Room Optimization An Operational Brilliance in Government Success Story Jane Wiseman Ash Center for Democratic Governance and Innovation Harvard Kennedy School July 2017 contents Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Background: The Convenience for Greater Competency in Legislation Real Eparticularize Skillful-treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Project Beginnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Results Achieved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 What Makes It Innovative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Implementation Overlight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Keys to Luck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 An Operational Brilliance in Legislation Luck Story acknowledgements The Operational Brilliance in Legislation Project, including this tract, is public-heartedly funded by the Laura and John Arnold Foundation. This tract would not accept been likely outside the public-hearted offering of convenience, reflections, and spring materials from the implementation team in New York City. In feature, Agent County Executive/Commissioner of Suffolk County, Department of Economic Development and Planning, Theresa Ward, formerly the Senior Advisor to the Agent Mayor for Operations in New York City, was inestimable to the profundity of element and atonement of this tract. Elimination livelihood from Elimination Assistant Devon Ziminski was critical at completion station of the classification. The direction and control of Daniel Paul Professor of the Achievement of Legislation and the Director of the Innovations in American Legislation Program Stephen Goldsmith cannot be inferiorestimated. The tract would not accept been affectly outside the comprehensible feedback and editorial livelihood of Senior Associate Director for Innovations and the Legislation Innovators Network Christina Marchand, Editor of the Legislation Innovators Netis-sue Jessica Engelman, and Guile Manager of Data-Smart City Solutions Katherine Hillenbrand. This relation is an rebellious is-sue emanation and lights developed are those of the inventor and do not necessarily portioicularize those of the funder. 1 An Operational Brilliance in Legislation Luck Story executive summary In 2016, the Ash Center for Democratic Governance and Innovation at Harvard Kennedy School common funding from the Laura and John Arnold Foundation to launch the Operational Brilliance in Legislation Project. The intent of the guile is to warrant and puff operational competency luckes athwart portioicularize and national legislation via the guile website at https://www.innovations.harvard.edu/opex. The site makes accelerationful for the foremost convenience from a uncompounded searchable gateway 30 bulky studies of legislation competency. This condition examine of upright-sizing the New York City developed eparticularize portfolio is one of three that provides a elemented obaccommodate at an unappropriated copy of luck in achieving operational brilliance in legislation. The intention of the condition studies is to explain the implementation strides, the key challenges, and the driving factors for luck. With this is-sue, we anticipation to curtail the require of warranting opportunities for competency and require savings athwart all layers of legislation, and to excite the transplant and deployment of these luckful provisions. The economic downturn of 2008 hit powerabundantly in the nation’s financial centers. Within a year, New York City legislation had suffered momentous brings in tax wealth. The Bloomberg administration, inferior the illustration of Agent Mayor for Operations Stephen Goldsmith, sought ways to delay the financial gap. Goldsmith crusty to operational competency as a temporization for vindication savings, and set out to examine the ways the city could use divided services to amend virtue period reducing require for the professional livelihood businesss of city legislation. The relation, “Maximizing Competency in NYC Government: A Guile to Consolidate and Modernize Back-Office Operations,” attested efficiencies in technology, cosmical instrument, wealth assemblys, the sprightly of city vehicles, and the developed eparticularize portfolio. In completion, the divided services endeavors outlined in the relation reserved the city $100 favorite. This condition examine pictures, for the foremost convenience, endeavors by the agent mayor for operations and his team to optimize the city’s developed eparticularize portfolio. New York City legislation employees employ 300 favorite balance feet of dutys, schools, police and affection stations, warehouses, and the affect. There had never antecedently been an endeavor to light the entirety of the room as an asset that could be allocated aid fruitfully. Rather, aggravate 3 condition examine: New York City Duty Room Optimization time, idiosyncratic departments had rebelliously habitual or leased the room they needed, predominantly delay their own manner rules. By implementing the adviseations in the relation, developed eparticularize was lighted as a city asset and was directd as a portfolio for the foremost convenience. In the foremost three years of this endeavor, the city curtaild duty room by 400,000 balance feet and reserved $15 favorite in annual schism enjoyment require. Additional savings in activity requires completioned $4 favorite as the trace shrank. Period New York City is far vastr than most other American cities, and period other cities may accept inferior developed eparticularize requires in unconcealed, there rest key insights from this guile that could be precious athwart portioicularize and national legislation, including: • Put someone in admonish. New York City had never antecedently had a uncompounded person obligatory for the developed eparticularize portfolio, and naming a leading asset skillful-treatment dutyr meant there was someone obligatory for upright-sizing the portfolio. Illustration was inheschism to the continued convergence on bulk and consistent flourish-up delay departments to close issues. • Rely on axioms. To direct the portfolio, the foremost stride was determining how plenteous room was being compensated for and how plenteous was being used. This set a baseline that enabled tracking twain intents and savings and orderly a common understanding of the metrics for measuring way. • Rethink how plenteous duty room is insufficiencyed. The competency relight fix that city is-sueers clogged closely twice as plenteous balance footage per employee as private-sector employees (290 balance feet versus 176 balance feet). A mandatory use of special-sector rules for public-guile duty room for new duty buildouts momentously shrank balance footage, period bringing city employees in closer alignment to fruitful and new-fashioned special-sector achievements. • Rethink storage. Walking encircling to obaccommodate at the developed eparticularize attested inefficiencies — a delayt unmeasured of never-used typewriters, parley rooms that could not be used consequently they had grace storage room for steep bottles, dutys converted to tract finish storage, and outdated computers and phones that filled an whole pedestal in an duty fabric regular to shun the obstructive classification of sending them to rest. Switching to offsite archives storage, converting tract 4 An Operational Brilliance in Legislation Luck Story files to electronic ones, and switching to filtered instead of bottled steep for new dutys momentously curtaild storage insufficiencys. • Do not pay for exhausted room. At the convenience of the guile, New York City was paying enjoyment requires for desks that were exhausted, a unmeasured 13.6 percent of all desks. Reducing the vacancies reserved $13 favorite. The pages that flourish picture the is-sue of a diminutive, greatly talented team of city employees who used a obdurate axioms assembly classification, best achievement benchmarking, and new perspective from the special sector to momentously bring operational requires to the city by upright-sizing the developed eparticularize portfolio. new york city snapshot Population: 8,550,405 City Employees: 250,000 2018 Budget: $85 billion 5 An Operational Brilliance in Legislation Luck Story background: the convenience for greater competency in legislation developed eparticularize skillful-treatment City halls, portioicularize houses, schools, libraries, and police and affection stations are some of the aid palpable properties used by legislation to accommodate the social. But there are countless other types of fabrics owned or schismed for legislation intentions such as seduce centers, garages, and equipment storage facilities, as polite as the program skillful-treatment, budget, device, professional, and legislative dutys of legislation. All told, legislation offices declarement for 31 percent of the completion duty room trace in the dominion. And yet, seldom is the use of that developed eparticularize in-truth optimized. Often superfluity room rests in a legislation developed eparticularize portfolio solely consequently of inertia, and room is inferiorutilized consequently there is weak or no excitation to new-fashionedize or upright-size. Many of the studies of legislation competency attested by the Operational Brilliance in Legislation Guile advise ways to curtail the require of developed eparticularize for government. For copy, Louisiana estimates it can reserve $9 favorite a year by increasing duty-room competency through spatial harmony and adduceing best achievement private-sector room manner rules. Wisconsin estimates it could reserve $5.6 favorite by renegotiating portioicularize duty-room leases at excellent rates. One of the most pompous copys of luck in optimizing a developed eparticularize portfolio occurred in New York City rise in 2009. That luck condition is pictured below, along delay direction for legislations new york city developed possessions: at a glance seeking to optimize their own developed possessions • 300 favorite balance feet of completion city-occupied space, including duty fabrics, warehouses, police purlieu, and schools • Aid than 75,000 New York City employees is-sue in duty room that occupies aggravate 19 favorite balance feet in 250 fabrics • In the foremost three years of this endeavor, the city poor duty room by 400,000 balance feet and saved $15 favorite in annual schism enjoyment require portfolio. New York City is one of the vastst corporate legislations in the dominion, and a subsidence where developed eparticularize requires are expensive, so the savings in this guile are greater than what could be expected in other jurisdictions. However, the approximation and the ability to developedize savings are transplantrable athwart portioicularize and national legislation. 7 condition examine: New York City Duty Room Optimization guile rises When the 2008 financial contingency hit, the application was featurely bitter in financial centers such as New York City. All athwart city legislation, there was a insufficiency for belt-tightening, and then-Mayor Bloomberg set out to amend operational competency and constitute economies via shared services athwart a multiplicity of legislation businesss. As Bloomberg’s agent mayor for operations, Stephen Goldsmith led a citywide assessment1 of opportunities for achieving operational competency by leveraging shared services. The relation, “Maximizing Competency in NYC Government: A Guile to Consolidate and Modernize Back-Office Operations” (pictured at upright), attested five guidance areas for amendd competency: developed possessions, sprightly skillful-treatment, wealth assemblys, cosmical respring skillful-treatment, and advice technology. One key adviseation was to curtail the require of enjoyment for the city’s duty room trace. The endeavor addressed the indispensable extent for the city’s developed eparticularize trace, the optimal figure of that room, and examined options for harmony and aid require-effective facilities skillful-treatment. The intent was to constitute an duty developed eparticularize portfolio that was truly extentd to city insufficiencys and to erect clear governance to amend economize room, delay the germinative to reserve $36 favorite a year. The require of enjoyment was one of various professional and operational businesss of city legislation explored as portio of an endeavor to use divided services to solicit down require and tend or amend virtue. The require of enjoyment, affect the other divided services the mayor’s duty of operations took on, had aged aggravate convenience outside a set of persuasive principles or firm skillful-treatment. Working provisions for employees had worsened period costs had increased. The mayor is-sueed in an public duty, which require short, but employees did not. The classification performed some despatch bumps in stipulations of production alienation but however performed aggravate $100 favorite in completion savings. — Stephen Goldsmith 8 Describing the rationale for taking on the require of enjoyment, Goldsmith said, “The require of enjoyment, affect the other shared services the mayor’s duty of operations took on, had aged aggravate convenience outside a set of persuasive principles or firm skillful-treatment. Working provisions for employees had worsened period requires An Operational Brilliance in Legislation Luck Story had increased. The mayor is-sueed in an public duty, which require short, but employees did not. The classification performed some despatch bumps in stipulations of production alienation but however performed aggravate $100 favorite in completion savings.” results closed In the foremost three years of this endeavor, the city curtaild duty room by 400,000 balance feet and reserved $15 favorite in annual schism enjoyment require. A mandatory use of public-plan duty room for new duty buildouts momentously shrank balance footage, period bringing city employees in delayr alignment delay fruitful and new-fashioned special-sector achievements. Balance footage was aid curtaild by the city through reductions in the aggregate of storage room used. A savings of $4 favorite a year in activity requires was closed consequently of the inferior trace of duty room. This luck has been embedded in city operations athwart mayoral administrations and the city continues to relation on the achievement intent “Consolidate and curtail city duty room” in the annual Mayor’s Skillful-treatment Report2 (MMR) using the metrics constituted in repartee to the 2010 competency relation adviseations. The most recent MMR indicates that the Department of Citywide Professional Services (DCAS), the obligatory production, “continues to relight opportunities in DCAS-managed properties to livelihood the most fruitful use of city-owned room.” what makes it innovative This guile stands out for its congratulation in questioning the foothold quo, using axioms, and gaining new perspective from special-sector benchmarks. Looking at the aggregate of balance footage per employee had never been done before. Challenging the foothold quo and upending years of lays is not an directable labor, but the team obligatory for optimizing the city’s developed eparticularize portfolio gathered axioms and then asked a set of exploratory questions, such as: 9 condition examine: New York City Duty Room Optimization • How divers dutys insufficiency to accept walls? • If the mayor does not insufficiency a special duty, then why do you? • What figures of duty room best excite emanationivity and collegiality? • Why can’t agencies divide vast contravention and parley rooms instead of each managing its own (casually in the selfselfsame fabric)? • Does the city get the unmeasured service of duty fabrics it owns? • Who should tend and direct city duty room? Asking these and other questions was twain intensitive and emanationive. The senior leader obligatory for the competency endeavor, Agent Mayor Goldsmith, distinguished at the time, “The Bloomberg administration is the gold rule for innovative governance — regularly inclined to try brave solutions to abstruse, entrenched challenges.” implementation aggravateview Implementation began as a issue of the competency relation and the divided services efforts inferiortaken by the Duty of the Agent Mayor for Operations, which moderate a completion of 37 adviseations athwart five categories. Figure 1 adown illustrates the timing and application of each of the seven developed eparticularize skillful-treatment state adviseations. Implementation elements and compromise of the team, implementation strides, and direct strides can be fix in the flourishing sections. 10 An Operational Brilliance in Legislation Luck Story Figure 1: Timing and Application of Developed Eparticularize Skillful-treatment Recommendations  2 Create a citywide strategic room guilening unit    3 Institute and announce citywide duty room utilization achievement indicators    Create dashboards for agencies and aggravatesight entities to access developed eparticularize advice    Implement a classification of declarementability for, and formalize the assignment of, city-owned room   4 5 6 Develop a developed eparticularize customer service temporization 7 Reduce storage in duty rooms to amend operational competency    06/2014 E 06/2011 E 03/2011  E 06/2011   E 06/2012   E 06/2011 E 06/2014 Improve Customer Service $50M Improve Governance Date to Be Completed Reduce the city’s duty room by 1.2 favorite balance feet and $36 favorite in annual expenses Potential Cost Savings 1 Leverage Technology Improve Operational Efficiency Preliminary Recommendations Improve Accountability Anticipated Impact   E – Efficiencies allure be gained but are not currently quantifiable “Potential Require Savings” portioicularizes cumulative require savings aggravate the direct filthy fiscal years This chart is conducive from the “Maximizing Competency in NYC Government: A Guile to Consolidate and Modernize Back-Office Operations” relation. The team. The endeavor was completed wholely by a diminutive team of city staff. The multiyear guile began as portio of the competency relation written by the agent mayor for operations and his team. Senior Advisor to the Agent Mayor for Operations Theresa Ward was obligatory for the elimination and enjoyment guile for developed possessions. To unmeasuredy enact the recommendations in her relation, Ward became the city’s foremost leading asset skillful-treatment manager and was portio of the illustration team at the city’s production obligatory for developed estate, the Department of Citywide Professional Services (DCAS). 11 condition examine: New York City Duty Room Optimization The cluster consisted primarily of Ward, one agent, and a cluster of production staff who volunteered to acceleration in the axioms assembly station. They determined themselves SPACE, for Strategic Property Alignment for Citywide Efficiency. In importation, as the guile wayed and departments took on their developed eparticularize optimization endeavors, eac ...
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