For a long time Copenhagen Municipality has been subject to required annual savings in the administrative area as a result of general framework reductions within the municipal budgets. Consequently, Ramboll Management Consulting was asked to identify specific saving potentials at the administrative level based on a benchmark analysis of the municipality.
Ramboll identified potential savings through a detailed mapping and analysis of the total administrative costs. The municipality was given a comprehensive catalogue of possible savings and suggestions on how to improve the administrative organisation. Ramboll also presented a suggestion on how the municipal organisational and management structure could be simplified.
120 million DKK saved
The project illustrated that Copenhagen Municipality had high administrative costs compared with the other five largest municipalities in Denmark. From the analysis, Ramboll identified saving potentials worth 120-200 million DKK. After a long political and administrative process in the municipality, savings of approx. 120 million DKK were realised.
Savings within the Existing Form of Government
One of the challenges was the municipality's special form of government. It has been a challenging exercise – for the municipality as well as for us, says Executive Director of Ramboll Management Consulting, Tonny Johansen:
- The analysis helped to create the foundation for Copenhagen Municipality to achieve the necessary cost savings in the administrative field. Although it has been challenging, the analysis showed that it was possible to realise remarkable savings within the unique form of government that the municipality has.
Ultimately, the analysis showed that it would be possible to lower the costs within the existing form of government. The project has enabled Copenhagen Municipality to fulfil both the saving requirements and the objective of a more efficient administrative operation.