By Mark Williamson, Director of Communications, Akron (OH)
September 27, 2004

For several generations there was a distinct smell of rubber in the air in Akron (OH). As the home of Goodyear, Firestone, and General Tire, Akron had earned the moniker "Rubber Capital of the World." The aroma is gone now, having left town 20 years ago along with thousands of high-paying union jobs. Today, there is a different scent in Akron — it's the sweet smell of success.

"I grew up in Akron in the 60s and 70s and I remember the distinct smell of rubber in the air," said Dan Horrigan, a three-term Akron city councilperson and chair of the council's Public Utilities Committee. "When I came home from college I noticed that smell wasn't there anymore. By then, there was nothing to go downtown for except the going-out-of-business sales."

Today, Akron is thriving thanks to a creative approach to the business of city government, a ground-breaking economic development program, a commitment to education, and a best practices initiative in public works that has saved $11 million.

The turnaround began when Donald Plusquellic was elected mayor in 1987. Akron was no longer riding on the wings of Goodyear. Some 30,000 jobs in the rubber industry had been eliminated, the city was in the doldrums, and it would have been easy to continue the downward trend.

Today, Akron is an international center of polymer research; the University of Akron is highly-acclaimed; the city is attracting major foreign investment; and its public library system was recently named America's best. Although this city of 217,000 faces the same financial pressures as other U.S. cities, Akron has emerged as a shining light.

It Began with High Water Rates

The turnaround in public service began at the Akron Public Utilities Bureau (APUB), the city-owned utility that provides water and wastewater services to the region.

In 1997, Akron had some of the highest water and sewer rates in Ohio. At the same time, the revitalization of downtown was underway and the mayor's economic development initiatives were taking root. Canal Park, a picturesque minor league baseball stadium located downtown, was emerging as the symbolic turning point for the community. While the Akron Aeros threw out the first pitch at the new ballpark, the mayor tossed APUB a curveball, announcing an immediate rate freeze and a blue ribbon panel to investigate the high water rates.

"That was the first wakeup call," said Michael McGlinchy, now APUB Manager. "The second was when we had the consultants from EMA come in to do a competitive assessment."

Because the mayor had promised there would be no layoffs, APUB had to find other ways to economize. EMA, which specializes in public sector optimization, helped the city launch a Competitive Action Program to redesign the way the utility did business.

When the program began in 1999, McGlinchy concedes, the customer wasn't even in the bureau's vocabulary. Today, APUB is a customer-focused organization that is setting an example for the rest of public works. A pilot project at the Water Pollution Control Center (WPC) has seen the organization transformed from a traditional hierarchy to an efficient, effective, team-based operation.

Through attrition, WPC staff has been cut in half, yet provides better service. Some 42 plant-level recommendations have been implemented. The city is installing an automated meter reading system that will reduce meter reading staff from 18 to two while improving billing accuracy. And the bottom-line savings keep multiplying.

Director of Public Service Jerry Holland believes having a third-party perspective was crucial to the city's change effort. "It doesn't matter who you are, you need a third party to take a look at what you-re doing," he said.

McGlinchy agreed. "It's not just your own perspective," he said. "If I don't know what tools are available, my ideas and my recommendations are going to be limited to the tools and ideas that I know."

Akron is now in the midst of the multi'stage optimization process — called World Class Organization — with city-wide pilot projects on the horizon. "We were so successful in public utilities that it would be a shame and a crime not to roll it out throughout the city," said Diane Miller-Dawson, City Finance Director.

Plusquellic, serving his fifth mayoral term, is currently President of the U.S. Conference of Mayors. He is widely hailed for Akron's turnaround.

"I give the mayor a lot of credit," said Horrigan. "He didn't want to live in a city that rested on its past."

Lessons Learned Along the Way

Of course, not everything has gone according to plan. For instance, expectations for employee empowerment — since modified — were unrealistic when the pilot began. The number of supervisor positions may need to be tweaked. Some compensation issues are still on the table.

McGlinchy believes it's all about the fundamentals. "Just because we are in government, we shouldn't be exempt from doing the fundamentals properly," he said. That means putting the tools and technology in place, writing standard operating procedures so everyone is speaking the same language, designing an effective organization, and developing a comprehensive strategic plan.

One of Akron's most important decisions was the appointment of Paul Gahres, former Vice President of AFSCME Local 1360, as reengineering coordinator. Gahres has bridged the gap between management, labor (Local 1360 and the Civil Service Personnel Association) and multiple city departments.

Union involvement from the outset was crucial according to Jim Masturzo, Deputy Mayor for Labor Relations. "You can't put a time limit on it, either," he said. "You need to be upfront, share all the information. You can't hide anything from them and they can't hide anything from you. That's 90 percent of the battle."

Holland, who came up through the union ranks himself, has seen labor's thinking shift with the times.

"Things are changing. They have to change. If we remain the same, we are going to go broke. It's that simple," he said. "The unions are buying in because it makes sense. Without their willingness to get involved with the change process, the progress we have made would not have been possible."