There’s a Limit to Doing More With Less, And Many Feds Have Reached It

Eighty-five percent of government leaders believe their workload will increase, but only 20 percent think their resources will keep pace.

It should come as no surprise that almost all public sector leaders today anticipate increased cost pressures to get their jobs done. In a recent survey of these leaders by CEB (now Gartner) 85 percent believe their workload will increase in the future, but only 20 percent think their resources will keep pace. Agencies have long sought to cut costs and improve efficiency, pushing the mantra “do more with less.” But the reality is that teams are hitting their limits.

Leaders often focus on squeezing just a little bit more out of their team’s performance to maintain the same level of service at a lower cost. This may seem logical, but it is not sufficient to sustain the level of cost cutting federal leaders currently face.  

A major mistake many take when implementing cost-reduction campaigns is to assume that all of a function’s activities are created equal and each delivers the same worth for the same cost to the organization. Instead, leaders need to think critically about what their teams should and should not do. With the private sector companies we work with, we’ve found that those that implement sustainable cuts to service delivery costs focus on the total value of the services—prioritizing resource investments where the value is the greatest, and cutting back on those where it is low.  

To realize true cost savings, federal leaders should focus on three critical steps for sustainable cuts and investments:

  • Define the value proposition of your function. When prioritizing services during a cost-cutting exercise, many leaders protect the activities that their function does well. However, when leaders are pressed to make resource tradeoffs, the things their function does well may not be the things that are the most important. To define the value proposition of the function, leaders need to first understand the return of different services through the lens of the customer. Since not all services are equally appreciated by customers, leaders need to identify the activities that the function must do to deliver the greatest value. From there, leaders can pair the things that their customers need the most with the activities required by legislation or regulation to define the function’s value proposition.
  • Determine the costs of products and services provided to customers. Functions are often classified as a series of activities or things the team is required to do to meet performance expectations. The challenge with this definition is that activities are often not tied to the time, resources and cost to deliver the activity, making it difficult to evaluate the investment required. Instead, leaders should look to organize activities into a portfolio of services and products and include the cost each one has to the organization. One way to do this is to consider what a statement of work would look like if a certain activity was outsourced and estimate the cost and time associated to deliver it—this is the total investment required.

  • Make principled cuts to the portfolio of products and services offered. When there are not enough resources to deliver all of the function’s services, leaders must make decisions on what to invest or underinvest in and what can be stripped out. By making investments based on the value of the service, leaders can avoid a one-size-fits-all approach to cost cutting, continuing to do the things that are most important and deprioritizing the things that are not. This, in turn, will enable leaders to sustain cost cuts while funding services and products that are most important.  

There is no doubt that leaders across the federal sector will face tough decisions in this environment of “more with less.” To drive sustainable cost cuts, leaders need to shift their approach from driving efficiencies across all activities and instead make investments and cuts to resource the areas that are most valuable to the organization.

Liz Joyce is an executive advisor at CEB, now Gartner.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.