ACMA Winter Conference

1
ACMA Winter Conference

• Managing Through Lean Times
• When Decisions Impact People

2
Background

• Cut 23 million FY 2001-02
• Sales tax revenues down 2.5 vs. last year
• Less state-shared revenue due to decline in
  corporate personal income taxes

3
Background

• FY 02-03 03-04 72
  million budget deficit
• Loss of state shared revenues if formulas are
  changed

4
Background

• Depts. identified 20 budget cuts
• Dept. budget cuts
• -Range from 3.8 - 13.2
• City Manager proposed budget
• -6.8 cut of GPF
• -233 jobs

5
Next Steps

• Community Budget Hearings
• Mayor/Council vote on final budget Feb. 18
• Changes effective March 31

6
Next Steps

• Displaced employee to vacancy
• Seniority determination
• Junior employee in class is bumped
• Determine rights of jr. employee
• Severance to prevent a lay-off

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Strategies - Quick Action

• 15 months of savings
• Slowed down hiring
• Enterprise depts. holding vacancies
• Severance program approved in December

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Strategies - Learn,
Change, Improve

• Met with staff from 1990s
• Better communication tools
• Survey employees impacted in 90s
• Changed retirement severance

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Communication

• City Connection
• Intranet - FAQs
• Budget/Personnel hotlines e-mails
• Dept. presentations
• Video

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Communication

• Packet released to Council media
• Union briefings
• E-mail to employees
• External vs. internal message

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Valuing Employees

• Employees part of solution - ESP
• Todays message consistent with past experience
• Furlough days

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Valuing Employees

• Tuition reimbursement
• Wage increases
• Step increases

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Support Systems

• Training for affected employees/supervisors
• EAP services/counseling
• Outplacement

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Support Systems - Resource Manual Topics

• Timeline
• Contacts/Resources
• Process
• Severance
• Retirement/Benefits

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Support Systems - Resource Manual Topics

• Layoff Transition Process
• Job Assistance
• Scripts/Tools
• Correspondence

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Human Issues - Survey

• Work environment
• Unknown
• Compassion

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Human Issues - Survey

• Management visibility and involvement
• Transition feelings
• New opportunities

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Leadership

• Layoff Manual vs. Helping w/ Employee Transitions
• Setting Tone
• Release of information
• Highest percent job cuts executive middle
  managers

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Leadership

• Managing expectations
• -reassure vs. promising
• Maintaining team
• Using familiar processes

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Long Term

• Organizational changes
• Changes in service delivery
• Organization/community doesnt expect business as
  usual
• Add back through supplemental process

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For More Information

• Rick Naimark, City Managers Office
• -602-534-9803
• -rick.naimark_at_phoenix.gov
• Erik Kropp, Personnel Department
• -602-534-9989
• -erik.kropp_at_phoenix.gov
• Budget and Research
• -budget.research_at_phoenix.gov