It wasn’t that long ago that the Aeronautical Center’s Leadership team set an admirable goal, one that would be beneficial to the agency and to all taxpayers. The goal was to save $20M by fiscal year 2020, and not surprisingly, employees across the AMC organizations have just about reached that target. At the beginning of FY 2019 organizations were encouraged to identify cost savings and/or cost avoidance in their organizations and report their efforts monthly to the AMC Resource Management Office (ABP-550). To date, AMC organizations have saved approximately $19M.
Initially, a variety of cost savings/avoidance projects began coming in and creative alternatives were discussed, which were implemented soon after. ’Cost effectiveness’ is one of the FAA’s strategic priorities for the year, and by focusing on metrics and available data, reduction in spending and cost consciousness immediately became a priority. Soon, every organization was looking at their spending in a very different manner.
Each organization has contributed substantially and creatively to the challenge. Here are some compelling examples:
This organization has revisited workforce management, reviewed contractual savings, and has implemented modernization and automation processes
The Academy conducted an analysis to determine the best method of providing services, whether using Academy personnel or vendors. From the results they obtained, they made necessary changes which resulted in a substantial cost savings.
Facility Management has focused on cost avoidance with regard to energy and the reduction of energy consumption. They have also reduced staff levels and an elevator refurbishment helped to save costs.
The work culture is one that shapes the everyday experience of each employee. When behaviors change, then the culture changes. The MMAC’s culture has become the foundation for future innovation involving cost saving measures. As noted by Bob Parsons, Founder of the GoDaddy Group, "Anything that is measured and watched, improves."
"Employees are thinking more creatively and strategically when it comes to finances. In some cases, we are now seeing employees negotiate prices with vendors, which is remarkable in saving operating costs. We are living in a time where we must consciously think about our expenditures," says Michelle Coppedge, Director of the Mike Monroney Aeronautical Center. "Whether it’s hosting lean meetings, making small cuts in ongoing expenses or closely reviewing those items that do not provide a return on investment, each of us plays an important part in reaching our goal," states Coppedge.
