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S P E C I A L F O C U S
Have you ever heard someone say that government should operate more like business? Let's hope they're not referring to companies like ComEd, Ameritech, Nicor or United Airlinesall notorious for poor customer service. Yet, the reference does have value, suggesting that government should become more efficient, more focused on stakeholders, more fiscally responsible, quicker to act, less bureaucratic and free of entitlement. During the 1990s, the Bolingbrook Park District made such a change. Prompted by its struggles with declining EAV (equalized assessed valuation) and issuance of tax anticipation warrants in the mid-1980s, change was imperative. The park district shifted from being predominantly tax-supported to primarily fee-supported. This shift was intentional and followed a philosophical change critical to success in a market environment. Here's the methodology: Change the philosophy Changing the Philosophy The governing body must wholeheartedly support and adopt the philosophical change required to succeed in the marketplace. While in a political environment such as a park district or village, it can appear as if you are giving up on catering to local residents and taxpayers, nothing could be farther from the truth. Local residents come first. Always have. Always will. In the interest of providing them more services at better value without increasing their taxes, you open up the market.
In business, a dollar is a dollar. It doesn't make a difference whether it comes from a block away or a mile away. When a park and recreation agency opens up the market, it doesn't abandon local taxpayers and residents. They still come first, but non-resident business becomes more welcomed; it becomes sought-after and invited. Consider, for example, pricing. Advance registration and discounts for residents should let residents know they are your primary market. But don't discourage non-residents with a perceived penalty for living out of the district. Consider listing the higher non-resident fee in your marketing materials with a notation that residents get a 30 percent discount (e.g., "Bolingbrook, Ill., residents receive a 30% discount!"). In all likelihood the non-resident will pay more than the resident, but they shouldn't feel punished for not living within your boundaries. Tie rates to market conditions to minimize this feeling. Consider supply and demand, area competition and the other choices potential customers have to spend their entertainment dollars. On the occasion a resident complains about non-resident participation, the explanation is simple. It takes three resident sales to make up for every two non-resident sales that are lost. Non-resident participation allows the agency to afford residents a lower fee. July/August 2001 | 21 S P E C I A L F O C U S Changing Policies and Practice Following the commitment to become market-driven, an organization must change long-standing attitudes, policies and practices. The organizational culture must become driven, and results-orientated. Board members and staff must expand their thinking from pleasing residents to pleasing stakeholders (all who have a stake in the agency's business): residents, nonresidents, business, taxpayers, vendors. Not all board members will embrace the change. They risk re-election or appointment if resident needs are not met. Not all employees will embrace the change. Those who prefer the comfort of a laid-back entitlement setting will find a performance-based, driven culture unsettling. For others, it will offer the chance to excel and increase their value to the team. Bottom line, countless time-honored governmental approaches to operating should be disposed in favor of private sector business models. Changing Marketing Strategies Traditional governmental approaches become barriers to success in a market-driven environment. Governments, in general, are known to be more reactive than proactive whereas private business is credited with being more innovative, more driven and more cutting-edge. Think about it. Traditionally, park and recreation agencies send out a brochure then wait for people to register. Marketing is typically low-key to nonexistent and limited to the local community. Even today, many agencies are reluctant to use paid advertisements. They depend solely on the goodwill and community obligation of local newspapers to announce their activities. In a market-driven agency, marketing expands geographically and becomes more aggressive. No longer should you wait for people to come to your organization. You go after them. Marketing becomes proactive, targeted, repetitive and diverse. It has multiple purposes: to build awareness, to enhance image, to increase sales. And as you get more customers, you pamper them more. Concern yourself with the total customer experience, not just getting them signed up at the beginning and evaluating their experience at the end. Repeat business from satisfied customers is the fastest way to increase revenue and spread the word about your agency. Changing Organizational Structure
Most business models require changes to your organizational structure, job descriptions, performance evaluations and reward system. Each component should tie to performance outcomes. Performance, after all, is what it is all about. There is a sense of urgency. You compete for stakeholders' time and money. You have to earn it every day. You have to provide a better experience and/or a better value than your competitor. The competition is not your enemy. It brings out the best in you. It breeds innovation and risk-taking. Both should be highly encouraged with great tolerance and understanding for mistakes. Changing the Measurements Accountability means reward or consequence. Energize employees with immediate recognition for work done well. Have a consequence for unsatisfactory work or behavior. The consequence should be productive and meaningful if at all possible. For example, have facility managers personally call customers to apologize in cases of mistreatment. It makes managers accountable. Surely, they will train and empower their staff to reduce the number of unpleasant calls they have to make. Reprimands create resentment and seldom lead to a more productive workplace. Bolingbrook's Business Model The model I am most familiar with is the one we've created at the Bolingbrook Park District. It's not perfect, but we're not finished yet. We adopted a vision statement: To be the most effective, efficient, and responsive government our constituents will ever encounter. Our vision is not to create a place, but an environment; an environment in which we relentlessly pursue our mission of providing park and recreation services in a fiscally responsible manner to help stakeholders achieve quality of life. The culture of the Bolingbrook Park District is defined in operating philosophies that espouse the district beliefs. Some of the operating philosophies are: Less than 24 hour responses; The district is performance-driven. Raises are based solely on merit. There are no step increases or cost-of-living increases. Marginal and unproductive employees do not receive raises. On the other hand, stellar performers are well rewarded. Structurally, the district split its large and diverse recreation division into two units: the revenue facilities department and the 22 | Illinois Parks and Recreation B E C O M I N G M O R E B U S I N E S S L I K E
recreation program department. Further, it hired a marketing and communications specialist and a full-time sales associate. Unlike most park districts, the marketing and communication specialist is not responsible for all of the district's marketing and communication. Everyone in the organization plays a role in those activities. In addition to producing the district's program brochures, the marketing and communications specialist's primary objective is to create awareness of and interest in the district's three revenue facilities (golf, fitness and aquatics). Her duty is to generate calls of inquiry and visits to facilities. In turn, the sales associate is charged with selling annual fitness and aquatic memberships and training desk attendants on how to turn the inquiries into sales. The position is commission-based, which puts little risk on the district. While there is a modest base pay, performance drives this individual's income. Putting further emphasis on pay-for-performance and not time spent, the district began to award commissions to the desk attendants at its revenue facilities. Effective January 1 of this year, the per-hour wage for these workers remains the same but they now have vested interest in closing sales and for moving their sales efforts beyond the walls of the facility. It's a simple process. The desk employee records all visitors and inquiries. If the visitor purchases a membership within 30 days the employee gets a $5 commission. The staff member who actually closes the sale gets $5 as well. Therefore, there is incentive to do both (field the inquiry and close the deal in order) to collect $10. Does it work? The closing rate jumped from an average of the 17 percent to 55 percent! Were desk staff pleased? At first some were skeptical: "What no raise?" Others were pleased that they would benefit from their hard work. In the first month most made far more money than a traditional raise would have given them. Will a businesslike approach solve your budget woes? Will you generate sufficient revenue to fulfill your mission? Pick up a newspaper you'll find your answer. The best thrive. The good survive. The rest fade away.
RAY OCHROMOWICZ, CPRP
July/August 2001 | 23 |
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