To help fashion the vital new future for a downsized and restructured local government, executives
must understand that the psychological impacts of downsizing seriously exacerbate the actual reductions in resources. Employees typically feel victimized, pessimistic, overwhelmed, and resistant to any change or opportunities. An executive cannot manage an organization’s way to a new, more vital future.

Rather, an executive must spend a lot of “face time” with employees, exerting visible, confident, and optimistic leadership and then engaging employees in envisioning a new story and fulfilling

A survey of several thousand local governments and new report offer insights on advancing sustainability policies in large and small communities.

<p><i>by Frank Benest </i><br>
<p>Many local governments across the United States have been forced to downsize in response to the ongoing recession, reduced revenues, and skyrocketing health care and other employee-benefit costs. To aggravate matters, some states have shifted money away from local governments to solve their own budgetary problems. Whatever the reasons, local government executives face more than a financial challenge in cutting budgets. An even bigger dilemma for executives is the leadership challenge of crafting a new and vital future for the downsizing organization. <br>