Auckland City Retains Management Consultants

Press, Volume XCVII, Issue 28552, 3 April 1958, Page 9

Auckland City Retains Management Consultants

"The Press" Special Service

AUCKLAND, April 2. The Auckland City Council has decided to retain its Australian management experts, W. D. Scott and Company, for a further year to continue investigations into streamlining town hall administration. After hearing that the company claimed the total potential savings from its campaign would reach £140,000 a year, the council decided to vote £7500 more toward the cost of the survey this year. This will be added to any saving in the £9125 voted last year toward the cost of the investigation. Annual savings already made by the consultants were computed at £18,770. There was also a possibility that further large savings could be made if the investigation was continued, said a recommendation from the finance committee of the council. A sum of £15.440 has already been paid to the consultants in fees. In 1956-1957, the first full year of the survey, £9548 was paid to the firm, and for 1957-58. £5892. With more than £3OOO unexpended from last year’s estimates to be added to the £7500 voted this year, the total cost of the investigation may reach £26,173. This figures does not include £l5OO paid to the firm for its preliminary survey. When the firm was retained by the council in August, 1956, to make its investigation it claimed it could save the council £59,000 a year. Its fees were then stated to be about £15,625 spread over a year or 18 months. The survey was to have beer completed last November. Consultants’ Report A report from the consultants said the “reported potential Savings available to the council as the results of its efforts and the efforts of the departmental heads should be in the vicinity of £93,000 a year.” The actual achieved savings by March 31 should be at a rate of more than £22,000 a year. The company had submitted 14 reports to the council showing agreed potential savings of

£50,000 and actual achieved savings by council officers of more than £20,000. There had been delays in the investigation caused by factors beyond the control of the company or the council. While appreciating that delays had been unforeseen when the investigation began, the company had tried to cut down the delays by taking on extra consultant staff. The additional time had been at no charge to the council but had involved 55 man-weeks of consultant time, which represented £6875 in fees. The council's new organisation and methods officer and his assistant had also attended a management conference at no charge to the council, although the fees were £420. Further Savings A relatively small number of departments still remained to be studied, said the consultants’ report. This would require 49 manweeks of work, of which the council organisation officers should contribute 20. Another 49 man-weeks of work would be needed to implement schemes of work planning, performance, control an'd budgetary control. These controls were essential if the current savings in economies and services were to be maintained. The total fees for 60 man-weeks of work by the consultant experts at £125 a week would be £7500.

For this sum the company estimated it could make further potential savings at the rate of £46,500 a year. The total potential savings for the complete assignment would be at the rate of £140,000 a year.

"We are confident,’’ the report said, “that this potential of £ 140,000 can be turned into actual savings within a relatively short period provided the senior council officers can make available the necessary time to ensure the implementation of the recommendations put forward and others to come.”