Consolidate public budgets

Budget optimization or simply put “cost savings” seems to be the main topic for almost all public budgets, no matter if it concerns a whole state or a small municipality. Methods, which worked well in the past, like cut costs following the “lawnmover principles”, can do more harm than good. Applying the ICG-model of “sustainable budget consolidation” also includes costs cuttings but the measures will at the same time structurally improve the organization`s situation. “Sustainable consolidation” is more than only costs saving: A desirable future state is developed, taking the organization`s strategic vision into account. This future perspective is important so that unpopular cuts are also shared.

Related to our experience we see some key success factors

  • Develop strategic short- and mid-term goals as well as powerful visions and strategic objectives.
  • Design a process for the development, description and quantification of consolidation potentials.
  • Effective project-management/-controlling during the implementation phase.

Methods we use successfully

  • Short but precise analysis to clarify facts and budget.
  • Mid-term financial planning (scenarios).
  • Settings and creativity methods to identify saving potentials.
  • Benchmarking and benchlearning.
  • Business process optimization: methods for optimizing organizational structures
  • Service Portfolio Audit: You obtain information about the costs and the effectiveness of existing methods. This information makes it easier to decide which services to provide in the future to what extent, at what quality and to which target Groups.
  • Global budgets support result-oriented thinking and action by means of multi-year, result-oriented budgets. We help our clients with defining outcomeoriented objectives, designing performance agreements and the organizational implementation.
  • Design of effective and efficient funding systems.

For further questions please contact
Andreas Pölzl
T +43/316/71 89 40-0

Project examples
City Graz
City Bruck/Leitha
City Bludesch
City Oberwart