The Georgetown Mayor and City Council (M&CC) of Guyana is responsible for garbage collection and
disposal, construction and maintenance of roads, drains, parapets, streetlights, markets, parks and open green spaces, cemeteries, public health and environment services and enforcement of the citys bylaws. The main source of revenue for the M&CC is property rates and taxes which are due to be paid annually. Additionally, revenue is obtained from various fees for services that the Council provides. Unfortunately, at May 2019, more than $8.4 billion minus accrued interest was owed in rates and taxes. In a press release coming from the M&CC, five businesses owed a total of $1 billion and efforts to claim it through the legal system in 2017 proved immediately ineffective and prolonged. The Council has identified at least one hundred and forty businesses that owe taxes and though this may be the larger percentage of the revenue owed it is a smaller number than the residential customers that owe.
Property rates and taxes are tied to the value of properties and it is common practice for owners to undervalue or use obsolete values for paying rates and taxes. Some owners continue to pay residential rates while operating commercial entities. Many persons both residential and commercial are also unaware that paying rates and taxes in the relevant category is the law. Property rates and taxes based on size, use and location of property have not been revalued or revised since 1998. Rates based on 1998 costs are therefore unrealistic and contributes to the Councils budget deficit. Additionally, some customers who access the Councils service have increased their demand either based on expansions to their buildings/occupants or the addition of commercial activities. A revaluation of the size and use of buildings could be one way of generating a more realistic revenue base to support customers needs.
The inadequacy of revenue at City Hall impacts their ability to complete their mandate effectively, the most noticeable of which is garbage collection and disposal which costs approximately $48 million monthly. Unfortunately, this situation also affects their ability to pay taxes and pension payments for its employees. The Council has on record approximately 829 employees 27 in a Roads Rehabilitation Unit, 78 in a Drainage Section, 188 in the City Constabulary and 86 called Constabulary Security Guards. This amounts to one employee for every 250 citizens in Georgetown.
The focus for the M&CC is therefore to increase profitability most likely through increased revenue, reduced cost and enhanced productivity.
Answer the following questions:
A) Identify and justify with explanation, one metric for each area listed below:
a. Profitability
b. Internal marketing
c. Innovation/ new product development
d. Promotions
e. Customers (2 marks for each metric = total 10 marks)
B) Based on a strategy for increasing revenue, reducing cost and enhancing productivity by M&CC:
a. Identify and justify with explanation two critical success factors (CSFs) that would be essential for success of the strategy.
b. For each CSF, identify and justify with explanation, a key performance indicator (KPI) that could be used to measure and monitor performance of the CSF.
C) In line with a drive for continuous improvement, and using the PDCA framework, answer the following:
a. Recommend and justify with explanation, one initiative that could be considered in the planning phase of the continuous improvement plan.
b. Based on what is identified in part (a), recommend, and explain what the next step should be in the doing phase.
c. Indicate and explain how the checks will be done to assess performance.
d. Assume that the planning, doing and checks have been implemented, indicate, and explain when you would implement this improvement.
Use only internet websites for researches and stick to this scenario given and answer the above questions asked.
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