Frequently, local governments are asked to drop a few pounds from their budgets — and quickly. Some are turning to lean thinking, an approach to organizational improvement that helps cities and counties save money by making quick, yet efficient changes. The method is based on the principles of lean manufacturing, which has been used for decades by industry.

Lean thinking identifies the value stream, or core processes, of an enterprise, and aims to eliminate waste and ensure that activities are adding value. Organizations document the processes that comprise a particular function and develop maps that classify the activities as value-added, non-value added or non-value added but necessary. Value is determined by whether a particular activity adds direct value for customers. Once a “current state” map is developed, a “future state” map is created based on how the system would look if the process worked perfectly. Then, small changes can be made to match the future map.

For example, a licensing bureau was a significant revenue center in one city's budget and, with two part-time employees, was $33,579 in the black. Recovering from a significant state revenue loss, the city administrator considered increasing license bureau revenues. The process began by observing the “ebb and flow” of people obtaining licenses. Through discussions with customers, the city administrator learned that most people used the city's license bureau because it was faster than neighboring bureaus, that most of the transactions occurred during lunchtime hours and that customers wanted the license bureau to open earlier than 8:00 a.m. and close later than 4:30 p.m.

As a result, the administrator extended the weekday hours and added Saturday morning hours. To provide faster service, he also hired a full-time employee, shifted the hours of two part-time employees to cover the busiest hours and cross-trained front office staff to assist when busy. The changes virtually eliminated the wait time and increased customers, resulting in additional annual revenue of $72,000.

In another city, the city council meetings contained many unnecessary items that added to the duration and cost of each meeting. Creating a value stream map of the council packet process, the city categorized agenda items as policy issues, non-policy but informative and routine management items, such as approving payments. The City Council agreed to delegate approval authority to staffers for nine of the 12 items and made five items “consent” rather than “discussion” items. By reducing agenda preparation time, city administrator review, agenda copies, council review and minutes, the city is saving an estimated $300 per item, totaling $64,800 annually. Also, simplifying approvals improved customer serv-ice and reduced turnaround time.

In addition to linking processes to customer value, lean thinking differs from other approaches by conducting a direct, concentrated analysis over a short time, followed by swift action to change the system, ensuring continuity and a quicker return on investment. Lean thinking is popular because employees are involved in the changes, are trained to see the waste and are empowered to make or suggest changes. With baby steps, employees can concentrate on specific solutions that yield immediate results.

The authors are vice president and senior vice president for Springsted, Public Sector Advisors.