BCG: Reshaping New York City Housing Authority support functions

Check out a real BCG presentation on Reshaping New York City Housing Authority support functions.

BCG Presentation: Reshaping New York City Housing Authority support functions

Key Learnings from the Presentation

The BCG report on “Reshaping New York City Housing Authority (NYCHA) Support Functions” provides a comprehensive analysis and roadmap for transforming NYCHA’s central office support functions to achieve greater efficiency, effectiveness, and to reallocate resources towards frontline operations. Here is a structured summary highlighting the strategic approach, key findings, actionable insights, and recommendations presented:

Strategic Approach and Objectives

• Objective: Enhance the efficiency and effectiveness of NYCHA’s central support functions to redirect resources to field operation activities.
• Focus Areas: Business process improvements, IT systems enhancements, organizational structure redesign, and capabilities and cultural change.

Challenges and Context

• NYCHA faced significant challenges including aging housing stock, increasing maintenance demands, growing capital investment needs, declining funding, and public pressure to deliver more services with fewer resources.

Key Findings

• Under-funded Capital and Maintenance Backlog: Identified a vicious cycle of under-funded capital improvements leading to higher unmet demands and increasing structural deficits.
• Sub-optimal Property Management: The vertically integrated model exacerbates efficiency issues, contributing to growing maintenance and repair backlogs.
• Inefficient Support Functions: Significant ‘shadow’ resources were found in central and borough offices, alongside highly rigid and bureaucratic processes.
• Underleveraged IT Systems: While powerful software packages were implemented, their full potential was not leveraged, and critical functionality was missing.
• Ineffective Resource Deployment: Workforce engagement was low, and civil service/union procedures impeded effective resource deployment.

Recommendations for Transformation

• Property Management Model: Transition to a leaner, property-centric model employing best practices from private management companies, with increased outsourcing.
• Community Operations: Shift from a direct service provider to orchestrating core services supportive of improved property management.
• Capital Projects: Introduce a proactive integrated asset management model with operations.
• Procurement and Supply Chain: Move to centralized, strategic sourcing that leverages spend; streamline supply chain with Just-In-Time (JIT) inventory management.
• Support Functions (HR, Finance, IT, FGSS): Transition to a business partner model, focusing on strategic support and outsourcing non-core activities; eliminate shadow functions and redundancies.

Anticipated Outcomes

• The recommended changes are estimated to deliver approximately $70M in run-rate cost savings and $55M in run-rate revenues by 2016, primarily driven by better leveraging of procurement spend and restructuring of central office support functions. Moreover, significant improvements in service quality and organizational effectiveness are expected to enhance both customer and employee experiences.

Implementation Insights

• The transformation includes critical investments in systems and capabilities, underscoring the importance of IT systems investments to support ongoing process redesign and the necessity for new positions and training for successful transition to the new operating model.

About Boston Consulting Group (BCG):

BCG is a global management consulting firm with a wide range of services in strategy, operations, corporate finance, and sustainability, among others. It is well-known for its innovative approach to solving business and societal challenges. BCG places a strong emphasis on thought leadership and has made significant contributions to business strategy concepts. The company is committed to delivering solutions that combine human insight, technology, and strategic vision to drive competitive advantage and growth for its clients.

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