Tag Archives: lean management

The Efficiency Chimera Strikes Again

It’s magical!

If you had a time machine and chose, not to kill Young Adolf Hitler or have lunch with Jesus or ride horsies with Alexander the Great, but to go back to 2016 and listen to a speech by gubernatorial candidate Phil Scott, you would hear some familiar phrases. “Cradle to Career,” “Affordability,” “Protect the most vulnerable,” stuff he still says all the time.

You would also hear something you couldn’t hear without a time machine because Scott doesn’t say it anymore: “Lean management.” Here’s his campaign pitch, with a specific target number attached:

I believe we can reduce the operational cost of every agency and department by one cent for every dollar currently spent, in my first year in office. Saving one penny on the dollar generates about $55 million in savings. 

Yeah, well, then he got elected and things became much harder. This is what usually happens when a businessperson enters public office convinced that big savings are ripe for the picking, if only a little common-sense efficiency is applied.

The actual results have been embarrassingly puny. When asked about this back in February, after three years of Scott’s governorship, the administration pointed to $13 million in projected savings in his FY2021 (the year starting 7/1/20) budget. More than one-third of that total was due to the proposed closure of the Woodside juvenile facility, which had nothing to do with lean management.

Actual results: Not $55 million in the first year, but something less than $10 million in year four.

And you have to subtract, from whatever the actual savings were, the costs of training hundreds of state workers in lean management processes. (By the administration’s own accounting, 671 workers and managers in all.)

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