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1. Leading in Lean Times AASHTO Spring Meeting
Hal Kassoff
Parsons Brinckerhoff
Maryland State Highway Administrator for 12 years (1984 -1996)
3. Leading in Lean Times (Doing Less with Less) Era of doing more with less began 30 yrs ago . . . following 20 years of plenty (50s to 70s)
Late 70s period of Stagflation
Stagnant economy revenues declining
Double-digit inflation costs sky rocketing
Most DOTs have experienced varying degrees of austerity ever since even when their programs were growing
4. Leading in Lean Times (Doing Less with Less) DOT Responses:
At first - Pick low hanging fruit
Zero-base budgeting question everything
Value engineering are we designing efficiently?
Freeze hiring trim staffing through attrition
Also, some opportunities
Improve efficiencies
Post-Interstate down-sizing
Re-think mission and priorities
5. Leading in Lean Times (Doing Less with Less) DOTs Responses:
As low hanging fruit was picked over. . .
. . . We began cutting limbs, not just fruit
Programs & Projects Cut
Maintenance deferred
Furloughs and layoffs
Some places raising revenue still an option
At some point, doing more with less gives way. . . either do more with more or less with less
6. Leading in Lean Times (Doing Less with Less) Early 90s Recession: (A Maryland Microcosm
After program tripled, the bottom fell out)
Immediate response
Hit the brakes or cancel contracts: The perils of cash flow accounting
Suspend Lettings: 11-year letting streak ends for a year
Rubber band theory stretching to the limit
Cut positions (4000+ down to 3800)
7. Leading in Lean Times (Doing Less with Less) Early 90s Recession: (A Maryland Microcosm)
Lemons to Lemonade
Fostered asset management mindset
System preservation priority reaffirmed
Retained critical mass of core competencies
Retained internal and external credibility
Back to the fuel tax it could still be done
(By selling some projects for the 2nd time)
8. Leading in Lean Times(Doing Less with Less) Late 90s:
TEA-21: nearly 50% more Fed $
Yet austerity mind-set endured
Doing more with less - -
a permanent mindset somehow independent of workload?
9. Leading in Lean Times (Doing Less with Less)
were challenged to run like a private business. What business could run this way and survive?
10. Leading in Have we picked every fruit, squeezed every drop?Lean Times (Doing Less with Less) 2010 & Beyond - What Now?:
Are we making the right choices? In the right way?
Have we demonstrated/communicated that we are?
Are we losing credibility? Can we figure out how to gain credibility in lean times?
If doing less with less is a response, what is our strategy for cultivating more with more?