The govt has been a whipping boy for many problems we Singaporeans face.
Putting things in perspective, are some of these things a little beyond their control?
Are costs in other relatively developed nations similarly high?
Are they also grappling with similar cost and social problems?
How much can this be alleviated by govt action?
Is it even realistic to expect that the govt can reduce costs dramatically over the long term?
Lower costs effectively means the price of almost everything goes down (including wages and real estate).
The above-stated might well be the position of the government namely costs are mostly beyond their controls and there exist many constraints in solving high-cost problem.
I have replied to most of the above-stated points in earlier posts.
I have also shown that in the case of HDB flat pricing, it is a matter of creative accounting that people are being made to pay the highest market values and yet were told HDB flat prices were subsidised.
So costs can be a matter of manipulation depending of how one presents the accounts.
We can only take all the cost figures given by SBS, SMRT, PS and HDBs with a big pinch of salt.
Moreover there is a practice of the policy to charge land prices acquired at dirt cheap prices with taxpayers' monies at the full market price on essential government and public services. This is the highest single contributing factor to our high cost problem as increased government costs reduce all business profits and purchasing power of citizens. The majority of the shopkeepers in HDB heartland simply could not survive with such high costs.
Take the recent NKF case for our discussions. Before the NKF court case with SPH, many patients have complained about the high costs of kidney dialysis as compared to similar treatments in Malaysia.
What did Minister Lim Hng Kiang reply in parliament? Did he not deny the problems in parliament and refuce to take action to address the real issues objectively by giving the same excuses ?
Now let us look at the situation after the public outcry and ensuing CPIB investigations. It is now found after there were malpractices and lack of accountability and scrutiny of the excessively high costs incurred on hyper salaries and bonuses of the executives and losses in dubious investments.
Conclusion is obvious from this case : costs are not beyond control and costs of dialysis treatment need not be high and could be reduced quite substantially given the will power and accountability to solve it.
Therefore the most serious problem is not that costs are beyond control but were the human problem - accountability and transparency without which highest pay would be called by leaders as peanuts and all issues were simply swept aside by bureaucratic denial by ministers and their officials.
Let us take a close look at the root causes closely and it will be found that they are mostly solvable but were denied due to human self-centredness and their habit to protect their past policies with denials and justifications and excuses are the worse problems.
The following should provide some solutions in a more in-depth manner to our Public Transport companies and ministries in regard to their high-cost problem up to now constantly denied by ministers and CEOs:-
Instead of waiting for more NKF outcry all of the ministries and departments and GLCs claiming high costs should first cut costs by upgrading their efficiency or competitiveness:-
(1) Simplify and standardise works in Follow-through lego-like work processes.
(2) Adopt simple manpower structure - max 3-tier for close-rein Objective supervision, Clear allocation of tasks, quality-time-cost control.(A lot of hyper-scale multi-tier executive cost could be reduced drastically or made redundant like in the private sector after the HDB/PSA retrenchment exercises if and once the above-stated process management structure is set up)
(3) Coordination and knowledge application.
(4) Effective Coomunication and feedbacks.
(5) Effective control, processes, measurement of performance, corrections.
(6) Objectivity and accountability in management.
(7) Clearly defined Filing, retrieving of records.
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Motivation of workers in knowledge application.
(9) Any effective Departmentalisation and delegation.
Will such process management is set up enterprise will be more efficient or competitive and all tasks re-assembled without laid out in cause-effect lego-like work processes with effective control,comparison, processing and corrections and empowering of staff to attain organizational efficiency and productivity.
Such process management will even lead to in-depth knowledge and technology application integrated to daily works on design, system, engineering, marketing, production and financial controls etc.
Clearly the solution to high cost problem is to cut cost by becoming efficient and competitive, and all tasks should be laid out to be easily understood and carried out by staff with minimal instruction instead of enforcements through thick volumes of standard operating procedures.
Surely there are now too much rhetoric and denials of problems as found in the NKF and HDB/PSA episodes.
Ministries should not rely on subjective look-good reporting, justifications or post-mortem, or amble along through a period of policy-based conceptual justifications or look-good presentations.
Therefore, before conducting an public fault management audit, it is critical to look at the overview of restructuring of enterprise cautiously and objectively as follows:-
(1) Set up tasks consisting of simple standardized work processes.
(2) Tasks should be easily understood and performed with minimal instructions or petty self-centred supervisions.
Try call centre process management to self-audit your organization structure and then decide whether you still need an management audit.