Poor Decisions Are Expensive

Peter Drucker states that “Management effectiveness is doing the right things well.”

Our $50 million energy losses are clear evidence that, by Professor Drucker’s standard and/or any other reasonable measure of merit, our city’s decision processes are seriously flawed. A combination of arrogance and ignorance is always expensive and we all know who pays.

There were four major aspects of the energy decisions.

  1. We have a fixed term, a fixed amount (double our needs) and a fixed price. Not fixed was the market
    price of our excess, which is roughly half of our cost.
  2. Rarely can you depend on the people or process that created a problem to fix it.
  3. Therefore, we need an audit that goes beyond financials and investigates our management and decision process: who has authority, power and/or influence and who has oversight responsibility.
  4. There is currently someone working on something in this area and the city is close to signing a management contract.

That all of the above is confidential is troubling. There is an urgent need for at least four council members to renounce their “potted plant” status, assert themselves and fulfill their fiduciary responsibilities.

The council should vote to block all contracts in this area until the consultant, [whoever that is], completes his investigation and renders his report. To make informed decisions the council must analyze the report prior to allowing any additional management or contractual agreements.

Charles Baker Colonel USAF, retired