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5 Tools
5 Tools
Competition Between Districts
An
additional positive dynamic
When
a local government has all the tools described herein, in particular
Activity-Based Costing/ Management with an internet ABC budget
fully on display, everyone has the new tools to see the real life
expenses and outputs of the of government performance.
When similar, neighboring governments collaborate to provide real
cost comparisons for services they provide in common with the neighboring
entity,
then an additional competitive dynamic enters the field of play.
Now, leaders of the districts are comparing notes,
particularly when their own delivery of a particular service is more
expensive than the neighbor's.
New questions arise as to what is causing the additional expense.
Are there efficiencies the neighbor is deploying that could also come
into play? Perhaps the neighboring district's department is a suitable
bidder for outsourcing the more expensive services? Perhaps there are
additional savings opportunities that have yet to be exploited?
The visionary elected or appointed individuals in charge of
governance will more clearly come to understand
that they are the temporary hired hand of the citizens they serve. That
service to the constituency includes a transparent government that can
justify its costs and provides only necessary services, actually desired
by the governed.
Competition is a naturally curing dynamic in the economy of the
business of government..
Putting districts in a clearer, more calculable competitive
pressures from outside neighbors further adds to the managed competitive
competition that occurs
within the entity under this future model.
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