Local Authorities Can Save Up To NZ$1.4 Million

New Zealand Local Authorities Can Save Up To NZ$1.4 Million In Hidden Costs

On average, each council across New Zealand is missing out on potential annual savings of up to NZ$1.4 million per year through inefficient document production processes, according to new research from Objective Corporation (ASX:OCL), a specialist provider of content, collaboration and process management solutions.

Similar research conducted by Objective in the United Kingdom uncovered potential savings for the public sector of GBP £1 billion.

On the back of this and the launch of Objective’s solutions in ANZ, research has been conducted across a large sample of documents from 30 New Zealand councils, to map activities, costs and resources supporting the creation and publishing of documents. The findings have identified an untapped area for cost savings and performance improvements in the document creation lifecycle.

Tony Walls, CEO, Objective Corporation, said: ‘The sheer number of documents, many of which are statutory, produced each year by local government lent itself to this research. This study aims to highlight where, when and how real savings can be delivered against a backdrop of financial constraint and increased pressures for better service delivery to the community.

“Our research suggests business transformation and process efficiency improvements, through the use of our uCreate and uEngage solutions, offer local authorities a new opportunity for savings.”

Key findings include:
• NZ$1.4 million per year can be saved by individual councils in the document production process through improved business processes, design and print

• On average a New Zealand city or regional council has 1753 live and current documents in the public domain (505 documents for a district council)

• The average annual production of documents is 203 for a New Zealand council

• Over 50 per cent of documents produced by local authorities are of low design standard, with little or no structure, formatting or style. Almost half of all documents produced have no branding whatsoever.

This activity can cost a large regional or city council up to NZ$7.08 million a year and NZ$2.72 million for district councils.

• In terms of hidden costs, a regional or city council could save up to NZ$980,000 by improving business processes, a district council could make up to NZ$490,000

• A regional or city council could save up to NZ$89,000 as a result of improving the way they use graphic design services, while a district council could make up to NZ$45,000

• Improvements in print management can also deliver significant savings, up to NZ$300,000 for a regional or city council and up to NZ$60,000 for a district council.

Walls added, "These figures present a very strong case for councils to consider adopting best practice creation and publishing processes for policy and planning documents, to provide a significant and viable option for delivering ‘hidden’ savings.

“Our experience in the United Kingdom, where Objective’s solution
“Our experience in the United Kingdom, where Objective’s solutions have over 50% of local government market share, shows that councils have become experts in managing tight budgets over the years.

“However they are likely to be facing tighter financial constraints in the very near future, which will extend over a long period of time. Our research identifies substantial cost saving opportunities that are achievable for councils across New Zealand. These savings can be converted into providing better services at a lower cost to the community,” he concluded.
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