Interested in selling to a city manager? Here’s what you should know!
by Mary Scott Nabers, CEO of Strategic Partnerships, Inc.
Since every city in the nation is looking for ways to cut budgets, the public officials said they definitely were open to evaluating any cost-savings proposition. But, they were also very specific about how they wanted to be approached and what they expected to see from any serious contractor.
Here’s an overview of what we heard:
City managers make large purchasing recommendations to elected mayors and council members. (The important word to focus on is "elected.") They make recommendations in a public setting and they are expected to present every proposition in a manner that can be understood by the elected council members as well as the public at large.
Currently, all city managers are being asked to bring forward cost-cutting solutions so they are eager to see legitimate proposals. The problem is that the elected officials who approve all expenditures must be convinced of the savings. That is not always an easy task.
Most municipal elected officials are either business generalists or specialists in some particular profession...i.e. attorneys, accountants, contractors, etc. While they may be very well educated, they often do not have expertise in areas where cost-cutting proposals are suggested. As a result, it can be difficult to prove up and convince them of the anticipated cost savings. Technology solutions, for example, are often hard for council members to grasp if they have limited knowledge about technology. And, there can be problems explaining savings in any area unless vendors are willing to invest time and resources to help municipal staff build a solid business case that is easily understood.
City managers also wanted vendors and service providers to understand the public environment better. City officials know all too well how unpopular it is to suggest staff layoffs, so cost reductions are best embraced when they can be accomplished in other ways. Politics, press and the next election for council members must be factored into any vote related to a cost-cutting proposition.
Successful municipal contractors are the ones willing to go the extra mile to provide resources, time and financial plans for city managers and municipal staff. It is very important to help craft the business justification or cost savings validation that will be presented at a public meeting.
If every contractor could stand in a city manager’s shoes for one full working day, the following things would be obvious:
- City managers work in a political environment and every decision must make perfect business sense when reported in the press.
- They struggle to find time to oversee all their areas of responsibility so meetings are often hard to come by and when they suggest vendors meet with subordinates, there should be no grumbling.
- City managers in large cities take recommendations from department directors and program staff. They meet with vendors only when a concept has been approved by stakeholders and influencers from within the staff hierarchy.
- Any cost-savings proposition slated for public scrutiny must be validated in a way that allows taxpayers and the press to see, understand and believe the benefits.
- Proposals that advance to city managers and council members should hold no risk or very little risk. Otherwise, elected officials will find dozens of reasons to stall or reject the proposition.
- Savings to be touted should not impact current city staff. Rarely will elected officials vote to lay off employees if there is no misconduct or negligence involved.
- Constituent and taxpayer services are critically important and must be factored into every decision made. Every cost-savings proposition should benefit, in some way, constituent services.
Once a sales exec understands the very visible, public and political world that every city manager lives in, it is much easier to come to a meeting armed with a well-prepared business justification for products and/or services being presented.
Mary Scott Nabers is president and CEO of Strategic Partnerships, Inc., a 15-year-old procurement consulting and procurement research firm headquartered in Austin, Texas.
