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Management article
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Reference no. 97303
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1997

Abstract

Indianapolis, Indiana, has been a leader in the trend toward efficiency in government. Since 1992, when Stephen Goldsmith became mayor, the city has opened up more than 70 services to competitive bidding. It has reduced its operating budget, lowered taxes twice, and cut its non-public- safety workforce. It has also increased the public-safety budget, invested millions to rebuild the city''s infrastructure, and increased budget reserves. According to Goldsmith, the business community has been slow to grasp the significance of government''s move toward increased efficiency. There are many opportunities for businesses to help municipal governments lower costs and increase revenues. He offers seven guidelines to help pioneering companies succeed in what could be their next big market.

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Abstract

Indianapolis, Indiana, has been a leader in the trend toward efficiency in government. Since 1992, when Stephen Goldsmith became mayor, the city has opened up more than 70 services to competitive bidding. It has reduced its operating budget, lowered taxes twice, and cut its non-public- safety workforce. It has also increased the public-safety budget, invested millions to rebuild the city''s infrastructure, and increased budget reserves. According to Goldsmith, the business community has been slow to grasp the significance of government''s move toward increased efficiency. There are many opportunities for businesses to help municipal governments lower costs and increase revenues. He offers seven guidelines to help pioneering companies succeed in what could be their next big market.

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