Managed Competition A Tale of Two Fleets – One Fleet Manger John Clements Deputy Director Fleet Services City of San Diego Why Do We Have Government? Without Government We Would Never Know What A Dangerous World We Live In! Managed Competition – A Tale of Two Fleets – One Fleet Manager What are we going to talk about? • What Managed Competition Is • What Managed Competition Is Not • What Invites Managed Competition Into Your House • Tips for Being Competitive Managed Competition - A Tale of Two Fleets – One Fleet Manager What is Managed Competition ? • One of Many Tools to Improve Service Levels and/or Reduce Costs What are other tools? • Informal changes from within the organization – “Grass Roots Stuff” • Formal changes from within the organization – BPRs, Direct Orders • Informal changes from outside the organization – Suggestion awards • Formal changes from outside the organization – contracting out or managed competition Managed Competition – A Tale of Two Fleets – One Fleet Manager Managed Competition by Definition is: • A Formal and Structured Process • Whereby an Organization Selects a Program • Issues a Formal Solicitation for a Service Provider • Accepts Proposals from Both Private Sector Contractors and InHouse Employee Groups • Service Provider Performs the Service(s) Under a Contractual Arrangement Managed Competition – A Tale of Two Fleets and One Fleet Manager What Managed Competition Is Not! • Managed Competition is Not Only About Outsourcing or In-Sourcing • Managed Competition is Not About Fixing Everything • Managed Competition is Not About A Giant Jig Saw Puzzle with a Bunch of Missing Pieces • Managed Competition is Not About Low Bid Services • Managed Competition is Not Cheap Managed Competition – A Tale of Two Fleets – One Fleet Manager What Invites Managed Competition Into Your House? Cost of Services • Real or Perceived High Cost of Service(s) • Fleet Organizations That Do Not Know Their “True” Cost of Providing Services • No Accountability or Transparency for Fleet Charges and/or Services Managed Competition – A Tale of Two Fleets – One Fleet Manager Organizational Processes • Leadership That Doesn’t Lead • No Growth or Continual Improvement as Individuals and/or the Organization • Real or Perceived Poor Quality of Work – No Confidence in Employees • No Program to Address Customer Needs – Real or Perceived Managed Competition – A Tale of Two Fleets – One Fleet Manager Organizational Processes • Lack of Accurate Fleet Information and Use of Same • No Internal or External Performance Measures Including Publishing of Results (e.g. Annual Report) • Poor Internal Relations within Fleet Organization • Poor Vehicle/Parts/Fuel Inventory Management Managed Competition – A Tale of Two Fleets – One Fleet Manager Organizational Processes • Physical Facility Locations, Hours of Service and Cleanliness • Real or Perceived Bureaucratic Processes That Delay Vehicle Acquisition or Other Services • Real or Perceived Blame for No Vehicle Replacement Program and/or Purchasing Correct Type of Vehicle(s) Managed Competition – A Tale of Two Fleets – One Fleet Manager Customer Service • No Real or Perceived Customer Service • Lack of Customer Input into Fleet Processes • Complex Processes or Procedures to Obtain Services Managed Competition – A Tale of Two Fleets – One Fleet Manager Political Environment • Management’s, Politician’s and/or Taxpayer’s Minds Made Up to Outsource Fleet Services • Employee Issues – Let Contractor Worry About All That Employee “Stuff” • Real or Perceived Lack of Performance by Current Organization • Managed Competition – A Tale of Two Fleets – One Fleet Manager Political Environment • Real or Perceived Success Record with Managed Competition • Desire to Take an Organization in a Different Direction – “There’s Something Better Out There” • “I Love This Country, It’s Government That Scares Me!” Managed Competition – A Tale of Two Fleets – One Fleet Manager John’s Managed Competition Tips • Loose Lips Sink Ships and Organizations • Bad Request for Proposals (RFP/RFB) Result in Bad Proposals • Read the RFP - Bid the RFP • Process First – Cost Second! Managed Competition – A Tale of Two Fleets – One Fleet Manager John’s Managed Competition Tips • Win the Battle – Lose the War! • Repeat After Me – It’s About Time! • Your Most Important Asset Never Changes • Value Added –Value Added – Value Added Managed Competition – A Tale of Two Fleets – One Fleet Manager John’s Managed Competition Tips • Key to Winning – Don’t Change A Thing! Key to Losing – Don’t Change A Thing! • Other Than Software Vendors - Who Cares About Data? • Have Your Customer Ducks in Order Managed Competition – A Tale of Two Fleets – One Fleet Manager John’s Managed Competition Tips • Win or Lose - Your Worst Nightmare • Begin at the End! • Managed Competition Can Actually Be Your Friend! Managed Competion – A Tale of Two Fleets – One Fleet Manager John’s Managed Competition Tips • Lead or Someone Else Will! • There Will Be Those That Get It! • Ethics, Ethics, Ethics………………………… • What Initials Are on Your Business Card? Managed Competition – A Tale of Two Fleets – One Fleet Manager John Clements City of San Diego Deputy Director – Fleet Services jaclements@sandiego.gov 3940 Federal Blvd. San Diego, CA. 92102 Office - 619-527-6020 Fax – 619-527-6030 Cell – 619-540-0835