Due to a budget shortfall of over $200 million in 2010, the City of Phoenix needed to develop
and implement innovative processes that resulted in more efficient delivery of services, while at
the same time maximizing the use of limited taxpayer dollars. Borrowing a page from the
private sector board on which he served, the City Manager developed an organizational review
process of each city department, as one component for reducing the budget shortfall. The City
Manager’s initial goals for this process were to eliminate layers of supervision, broaden span of
control, streamline services, identify efficiencies, and reduce the size of government. Through
these goals, the City Manager aimed to improve services to residents by providing for faster
decision making and enhanced organizational flexibility and communications, while at the same
time identifying cost savings. Over a two-year period these goals were attained, achieving a
structurally balanced budget, maintaining the City’s AAA bond rating, and leading to the
smallest City government in 40 years, measured by employees per capita.