CASE STUDY

significant cost savings

 

Past performance success example of Business Management

Details

Pilot Study Proves Valuable in Recommending Cost Efficiencies

Challenge

The Office of Management and Budget (OMB) and General Services Administration (GSA) asked an agency Office of the Secretary to reduce the agency’s use of office space and fleet vehicles to save taxpayers money on operating expenses.

Agency leadership brought Galvan in to conduct a pilot study, first to assess the current usage and to offer recommendations on how to increase efficiency, having as little effect on agency operations as possible.

Approach

The pilot study covered three diverse large geographic areas: the New York/Philadelphia corridor, metropolitan Chicago plus South Wisconsin and the combination of Seattle and Portland. The agency and Galvan agreed that sample size was large enough to be representative but manageable within the scope of the project.

The Agency’s eight Operating Administrations had 66 office space leases totaling $33M annually in those geographic areas along with a combined fleet of 411 vehicles.

Galvan employed a two-stage process. The team conducted structured interviews with Agency staff and gathered data. They then validated the location data by comparing the findings with agency data from other sources. Finally, data analysis identified potential cost savings and efficiencies.

The Final Report broke down individual facility and vehicle fleet data by Operating Administration within each of the three geographic regions.

It compared office utilization rates for each location along with the ratios of employees to vehicles (while controlling for urban vs. suburban locations). It also found that half of the office leases were expiring within 3 years – allowing for efficiencies.

Solution

Galvan identified savings recommendations that could save taxpayers a significant amount of money, projected to be in the millions of dollars over time. The improved transparency gave leadership a better ability to view Agency operations and significantly improved means to achieve cost reduction goals.

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