If there is one thing about the recession that has caused my heart to ache it’s the reduction in firefighter staffing in many communities. Some economists have argued that economic downturns can force businesses and governments to examine their operations and find more efficient ways to operate. On the surface that sounds good. We want our governments to operate efficiently and we want to be good stewards of the public dollar.
However, the budgets of many fire departments have been chiseled away over the past ten years and all the while these departments were taking steps to reduce expenses and improve their efficiencies. Stated another way, they have become mean and lean, finding creative ways to provide the most essential services with minimal staffing. There was no more proverbial blood in the turnip. So, when cities looked for the next round of cuts there was nothing left to cut except personnel.
Now we’re being told by the economists and the federal government that the recession is over. So what is to come of fire departments in a post-recession (recovery) period? Will the jobs come back? My prediction is they will not (at least not in the short term). I am not a pessimist and I so much want to see the jobs of my brothers and sisters restored.
In my travels I have kept tuned in to what local leaders have been saying, both publicly and privately. This is what I hear them saying… Fire departments have been over staffed and over funded for years and the recession gave elected and appointed leaders the opportunity (a good excuse) to cut out the “excess” with a good reason to propose reductions (the economy). Some of these elected and appointed officials give me the appearance they are actually smug and gloating in their successful attempts to reduce the size of the fire department.
Some fire department leaders have vocally opposed the reductions. Some leaders have resigned their positions or retired out of protest. Union leaders have stood their ground, but only with marginal success.
So when will the jobs come back? My prediction is the jobs will return very slowly, if at all. I also predict that it will take a crisis to reinstate firefighter (and for that matter police officer jobs). We all know this type of reaction is commonplace. There has to be an incident that results in serious injuries or fatalities. Then, and only then, do the elected and appointed officials begin to take grief from their constituents and the calls for action are heeded.
My concern is this: Firefighters are sworn protectors of humankind. Firefighters are wired for action. And unlike some elected and appointed leaders, firefighters will not play politics with the lives of residents. All of this spells the potential for the crisis previously mentioned to involve the lives of firefighters.
I am hopeful that firefighters and their command officers are having meaningful discussions about how the strategies and tactics should be adjusted based on cuts in staffing. I fear that firefighters will continue to fight fires the same way they always have and that is the recipe for a disastrous outcome.
To all my brothers and sisters I ask you that in these challenging times, if your department’s line staffing has been reduced, work smarter and discuss among your colleagues how to adjust your standard operating procedures. Remember that you mean the world to someone… act accordingly and take steps to ensure you safety.
Fire Chief (ret.) Richard B. Gasaway, PhD, EFO, CFO, MICP
www.RichGasaway.com
Showing posts with label Fire department economics. Show all posts
Showing posts with label Fire department economics. Show all posts
Friday, January 1, 2010
Thursday, July 16, 2009
Fire Department, Inc.
I recently attended the IFSTA validation conference in Oklahoma City. Setting aside it was the absolutely hottest weather I can ever remember enduring (108 degrees), the conference was excellent. Chris Neal and Bob England do an outstanding job.
During a reception on Friday evening I was talking to an associate I have known for several years and someone who I would classify as being among the best and brightest in the fire service. We engaged in a discussion about the current state of the economy and the challenges his department is facing.
It was his opinion that most fire departments are being challenged today because the tight economy is forcing city and county governments to look at their operations using a business model-one that is based on profit and loss. He noted that many fire chiefs are not adequately educated to run a business and thus, they struggle.
Being someone who has worked in both the private sector as a banker (perhaps the epitome of profit and loss) and in the public sector as a fire chief, I can relate well to what he was saying. I can recall many occasions when I was conducting meetings with members of my department and someone would vocalize their frustration with my leadership style... "We're a fire department, not a business!" they would say with such disdain that I would feel as though trying to run the fire department like a business was somehow... dirty. Nonetheless, I tried to be patient and help them realize that we are, indeed, in the public safety business.
This mentality is not confined to fire department members. Several years ago I was reading in a newspaper about a battle raging at a city council meeting. The city was looking to hire a new fire chief. The debate was whether or not the fire chief needed to have a bachelor's degree or not. One of the council members was quoted in the paper as saying "I cannot, for the life of me, understand why our fire chief would have to have a college degree to run our fire department." The department in question had more than 400 career employees and a $20+ million budget. The fire chief in a department of this size isn't the "top firefighter." He's an administrator of a very large business with all the challenges and complexities of running a corporation: Budget, personnel, legal, marketing, quality control... it's all there.
Like it or not, the fire department is a business and the sooner you realize that, the better off you'll be. The fire department is not exempt from the fallout of a bad economy. It is going to take savvy business managers to survive these challenging times.
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
http://www.woppyjawed.blogspot.com/
RBG31oo@aol.com
During a reception on Friday evening I was talking to an associate I have known for several years and someone who I would classify as being among the best and brightest in the fire service. We engaged in a discussion about the current state of the economy and the challenges his department is facing.
It was his opinion that most fire departments are being challenged today because the tight economy is forcing city and county governments to look at their operations using a business model-one that is based on profit and loss. He noted that many fire chiefs are not adequately educated to run a business and thus, they struggle.
Being someone who has worked in both the private sector as a banker (perhaps the epitome of profit and loss) and in the public sector as a fire chief, I can relate well to what he was saying. I can recall many occasions when I was conducting meetings with members of my department and someone would vocalize their frustration with my leadership style... "We're a fire department, not a business!" they would say with such disdain that I would feel as though trying to run the fire department like a business was somehow... dirty. Nonetheless, I tried to be patient and help them realize that we are, indeed, in the public safety business.
This mentality is not confined to fire department members. Several years ago I was reading in a newspaper about a battle raging at a city council meeting. The city was looking to hire a new fire chief. The debate was whether or not the fire chief needed to have a bachelor's degree or not. One of the council members was quoted in the paper as saying "I cannot, for the life of me, understand why our fire chief would have to have a college degree to run our fire department." The department in question had more than 400 career employees and a $20+ million budget. The fire chief in a department of this size isn't the "top firefighter." He's an administrator of a very large business with all the challenges and complexities of running a corporation: Budget, personnel, legal, marketing, quality control... it's all there.
Like it or not, the fire department is a business and the sooner you realize that, the better off you'll be. The fire department is not exempt from the fallout of a bad economy. It is going to take savvy business managers to survive these challenging times.
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
http://www.woppyjawed.blogspot.com/
RBG31oo@aol.com
Wednesday, July 8, 2009
Righteous fire chief throws self on sword
Fire Chief Donald Barnes of the Shaker Heights (Ohio) Fire Department took a stand against more cuts to the fire department and it cost him his career. He is not the first chief to stand up for what he believed in and it cost him his career. I personally know several who have and I hold them in hero status. Nonetheless, it is a shame that fire chiefs have to throw themselves on the sword for the sake of trying to protect the lives and property of their citizens.
As fire chiefs, we take an oath to protect our citizens and that includes never doing anything that would jeopardize their safety. When a fire chief feels they are violating their oath, then they have to take a firm line.
Unfortunately, there are plenty of fire chiefs who would rather roll over and do whatever the administration wants done for the sake of saving their jobs. While that is shameful, it is also the stark reality that some leaders are more selfish than righteous.
I have always taken the stand that I would do what is right without regard to what the consequences are. It has cost me dearly on several occasions but at least I am able to wake up in the morning and look myself in the mirror and know that I did the right thing when I stood up to my boss.
There have been, along the way, a few times when I did acquiesce to the boss and did what I was told to do, even when I knew the outcome held great potential to harm public safety and firefighter safety. When that happened, I found myself wallowing in guilt and praying every one of many sleepless nights that no one would be harmed from the decisions I had been forced into making. It was a miserable existence.
I applaud Chief Barnes and I am confident he will land on his feet. As for the administration in Shaker Heights, I am hopeful that your residents will revolt against you for what you have caused to occur. You are one step closer to balancing your budget by saving $140,000 of pay and benefits from your fire chief. Congratulations. Your budget shortfall is nearly solved. Don’t worry at all about the consequences of public safety or fire department morale you have destroyed.
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
http://www.woppyjawed.blogspot.com/
As fire chiefs, we take an oath to protect our citizens and that includes never doing anything that would jeopardize their safety. When a fire chief feels they are violating their oath, then they have to take a firm line.
Unfortunately, there are plenty of fire chiefs who would rather roll over and do whatever the administration wants done for the sake of saving their jobs. While that is shameful, it is also the stark reality that some leaders are more selfish than righteous.
I have always taken the stand that I would do what is right without regard to what the consequences are. It has cost me dearly on several occasions but at least I am able to wake up in the morning and look myself in the mirror and know that I did the right thing when I stood up to my boss.
There have been, along the way, a few times when I did acquiesce to the boss and did what I was told to do, even when I knew the outcome held great potential to harm public safety and firefighter safety. When that happened, I found myself wallowing in guilt and praying every one of many sleepless nights that no one would be harmed from the decisions I had been forced into making. It was a miserable existence.
I applaud Chief Barnes and I am confident he will land on his feet. As for the administration in Shaker Heights, I am hopeful that your residents will revolt against you for what you have caused to occur. You are one step closer to balancing your budget by saving $140,000 of pay and benefits from your fire chief. Congratulations. Your budget shortfall is nearly solved. Don’t worry at all about the consequences of public safety or fire department morale you have destroyed.
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
http://www.woppyjawed.blogspot.com/
Tuesday, July 7, 2009
Do more with less...
"Do more with less." We're hearing that cliche a lot these days, especially in emergency services as elected officials have found ways to justify cutting core services - like fire protection - and making the claim that such cuts will not have an impact on public safety.
Take, for example, the recent story on CNN about cuts in firefighters and the impact it had in Flint, Michigan and Alameda, California.
LINK:
http://www.cnn.com/video/?/video/politics/2009/07/06/meserve.budget.firefighters.cnn
Firefighting is dangerous and labor intensive work. Almost everything done on an emergency scene requires a team of four or five firefighters. Cutting down the size of the team has an impact. Elected officials can live in their denial if they wish, but it will show in the performance and in the consequences.
This is easy to see if you apply an example that is less emotional. In this case, a professional baseball team. The dialog goes something like this:
Owners: "Sorry guys, it's tough economic times. We're going to have to layoff some players and you're going to have to play the game with less players... 8 instead of 9."
Players: "Does the other team still get to have nine?"
Owners: "Yes, we're afraid so."
Players: "How are we supposed to win the game if we're outnumbered liked that?"
Owners: "You'll have to learn to do more with less."
This mentality assumes there are expendable positions on the team. Hmmm... who shall we cut.
The catcher? No... too important.
The pitcher? No... too important.
The first baseman? No... too important.
The center fielder? Yes! We'll cut the center fielder.
There won't be an impact. We'll just tell the left fielder and right fielder to run a little faster toward center field when the ball is hit there. We'll win as many games.
You know... and I know... this team is being set up for failure by myopic and dilusionary owners.
The problem is, baseball is just a game and no one is going to get hurt or killed if a team plays bad because they have less players. But firefighting isn't a game and there are real and lasting consequences when emergency services budgets are cut and firefighters are told to find a way to "Do more with less."
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
http://www.woppyjawed.blogspot.com/
Take, for example, the recent story on CNN about cuts in firefighters and the impact it had in Flint, Michigan and Alameda, California.
LINK:
http://www.cnn.com/video/?/video/politics/2009/07/06/meserve.budget.firefighters.cnn
Firefighting is dangerous and labor intensive work. Almost everything done on an emergency scene requires a team of four or five firefighters. Cutting down the size of the team has an impact. Elected officials can live in their denial if they wish, but it will show in the performance and in the consequences.
This is easy to see if you apply an example that is less emotional. In this case, a professional baseball team. The dialog goes something like this:
Owners: "Sorry guys, it's tough economic times. We're going to have to layoff some players and you're going to have to play the game with less players... 8 instead of 9."
Players: "Does the other team still get to have nine?"
Owners: "Yes, we're afraid so."
Players: "How are we supposed to win the game if we're outnumbered liked that?"
Owners: "You'll have to learn to do more with less."
This mentality assumes there are expendable positions on the team. Hmmm... who shall we cut.
The catcher? No... too important.
The pitcher? No... too important.
The first baseman? No... too important.
The center fielder? Yes! We'll cut the center fielder.
There won't be an impact. We'll just tell the left fielder and right fielder to run a little faster toward center field when the ball is hit there. We'll win as many games.
You know... and I know... this team is being set up for failure by myopic and dilusionary owners.
The problem is, baseball is just a game and no one is going to get hurt or killed if a team plays bad because they have less players. But firefighting isn't a game and there are real and lasting consequences when emergency services budgets are cut and firefighters are told to find a way to "Do more with less."
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
http://www.woppyjawed.blogspot.com/
Wednesday, December 31, 2008
The "new economy"
This "new economy" is going to create some wonderful opportunities for the fire service. Let me explain. There's an old saying that goes something like this "You don't worry about where your next meal will come from when your belly is full." In other words, it's the hunger that drives our instinct to "hunt" for food. Budget cuts will mean there will be less food (money), forcing us to go on a hunt for new and creative ways to survive.
This can be a good thing because it will force fire administrators to look at solutions that before were not attractive. Again, back to my example, if you're not hungry, ants may not look like a tasty treat. But if you are starving, you may eat it (and might even enjoy them... I hear they're quite good when covered in chocolate). But if you are never forced to consider ants as a meal choice, you're far less likely to even consider them an option.
A fire department who has been able to survive on the budget plan that next year's budget will be equal to this year's budget plus 3% is in for a rude awakening. The new economy is going to force them to go on the hunt for new ways of doing business. What do I mean? Here's an example.
Let's say there's a fire alarm activation in a high school during school hours. Logic (and experience). Using my high school as an example (enrollment of about 2,500). There are no less than 1,000 cell phones in that school (my kids contribute 3 of them). If there is an actual fire in the school, the 9-1-1 phones are going to light up like a Christmas tree. So why is it that some fire departments send 3 engines, 2 ladders, 2 chiefs, a boat and a helicopter (ok, maybe a slight exaggeration... maybe they don't send the boat) to a fire alarm activation at a fully occupied high school. Send one company. If you get additional calls, upgrade. Controversial? Perhaps. But this type of response is, in my opinion, excessive and expensive. Helps to keep the numbers up and justify the staffing levels, for sure. But those staffing levels are going to change in this new economy and departments are going to be forced to hunt for new ways to do business.
Regionalization of services, consolidations, mergers, cooperative ventures... all on the table. Some years ago (age won't allow me to remember the year) we were going through some tough economic times and I wrote an article where I noted the tough economy will force departments to do things in new ways. Unfortunately, the economy turned around quickly and everyone was able to recover before they changed or starved and it was back to business as usual.
I am far less optimistic that this economy will turn around as quickly and we are all going to be forced to go on the hunt for new and innovative ways to survive... and thrive.
Richard B. Gasaway, PhD, EFO, CFO
www.RichGasaway.com
This commentary was also posted on the Fire Service Chief Officer's Group on LinkedIn. My thanks to the visionary leadership of Fire Chief George Esbensen (Eden Prairie, Minnesota) for starting this group. I encourage you to join in the discussion here and there. Sharing thoughts and ideas makes all of us smarter.
This can be a good thing because it will force fire administrators to look at solutions that before were not attractive. Again, back to my example, if you're not hungry, ants may not look like a tasty treat. But if you are starving, you may eat it (and might even enjoy them... I hear they're quite good when covered in chocolate). But if you are never forced to consider ants as a meal choice, you're far less likely to even consider them an option.
A fire department who has been able to survive on the budget plan that next year's budget will be equal to this year's budget plus 3% is in for a rude awakening. The new economy is going to force them to go on the hunt for new ways of doing business. What do I mean? Here's an example.
Let's say there's a fire alarm activation in a high school during school hours. Logic (and experience). Using my high school as an example (enrollment of about 2,500). There are no less than 1,000 cell phones in that school (my kids contribute 3 of them). If there is an actual fire in the school, the 9-1-1 phones are going to light up like a Christmas tree. So why is it that some fire departments send 3 engines, 2 ladders, 2 chiefs, a boat and a helicopter (ok, maybe a slight exaggeration... maybe they don't send the boat) to a fire alarm activation at a fully occupied high school. Send one company. If you get additional calls, upgrade. Controversial? Perhaps. But this type of response is, in my opinion, excessive and expensive. Helps to keep the numbers up and justify the staffing levels, for sure. But those staffing levels are going to change in this new economy and departments are going to be forced to hunt for new ways to do business.
Regionalization of services, consolidations, mergers, cooperative ventures... all on the table. Some years ago (age won't allow me to remember the year) we were going through some tough economic times and I wrote an article where I noted the tough economy will force departments to do things in new ways. Unfortunately, the economy turned around quickly and everyone was able to recover before they changed or starved and it was back to business as usual.
I am far less optimistic that this economy will turn around as quickly and we are all going to be forced to go on the hunt for new and innovative ways to survive... and thrive.
Richard B. Gasaway, PhD, EFO, CFO
www.RichGasaway.com
This commentary was also posted on the Fire Service Chief Officer's Group on LinkedIn. My thanks to the visionary leadership of Fire Chief George Esbensen (Eden Prairie, Minnesota) for starting this group. I encourage you to join in the discussion here and there. Sharing thoughts and ideas makes all of us smarter.
Thursday, December 4, 2008
Finding the good in a bad economy
We are officially in a recession. Now what? Companies are laying off record numbers of workers. Now what? State and local governments are predicting huge deficits. Now what?
As tax revenues decline, local governments will be forced to reduce budgets. This can result in significant challenges to the providers of local government services, especially those who provide essential services.
Fire departments who have done the same thing the same way for a long period of time may find it difficult to find creative solutions in these difficult times. However difficult it it may be, fire department leaders must break out of the "that's the way we've always done it" mold and think creatively. I know of no vocation that is required to be more creative on a regular basis than the fire service. However, you are used to solving other people's problems and this time the problem is yours.
It is harder to solve a problem when you are emotionally attached to it. No fire department wants to cut any services that dedicated personnel have worked so hard to provide. No fire department wants to see members receive a pay raise that does not keep pace with inflation. No fire department wants to merge with a neighboring department and risk giving up their identity. But all these things are on the table.
Challenging economic times like these do not create character, but such times will expose the character of your members and challenge your leadership. I encourage you to be strong, principled, rational, and above all else, open-minded as you look for innovative ways to weather this stormy economy.
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
As tax revenues decline, local governments will be forced to reduce budgets. This can result in significant challenges to the providers of local government services, especially those who provide essential services.
Fire departments who have done the same thing the same way for a long period of time may find it difficult to find creative solutions in these difficult times. However difficult it it may be, fire department leaders must break out of the "that's the way we've always done it" mold and think creatively. I know of no vocation that is required to be more creative on a regular basis than the fire service. However, you are used to solving other people's problems and this time the problem is yours.
It is harder to solve a problem when you are emotionally attached to it. No fire department wants to cut any services that dedicated personnel have worked so hard to provide. No fire department wants to see members receive a pay raise that does not keep pace with inflation. No fire department wants to merge with a neighboring department and risk giving up their identity. But all these things are on the table.
Challenging economic times like these do not create character, but such times will expose the character of your members and challenge your leadership. I encourage you to be strong, principled, rational, and above all else, open-minded as you look for innovative ways to weather this stormy economy.
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
Tuesday, November 25, 2008
Bailout the American people
Bailouts are abounding. First $700 billion for the financial industry. Now car makes, home builders and more are lining up for federal handouts. Enough! By the time the dust settles on all this, these federal gifts of your tax dollars will cost more than $400,000 for every adult American.
Here's a idea. Just give each adult American a $400,000 check. Talk about a recovery plan?!?! How could you go wrong with this bailout plan? Doesn't matter what a person does with the money, the economy benefits. Buy a house=economy benefits. Buy a new car=economy benefits. Fund a retirement plan=economy benefits. Pay off your credit card debt=economy benefits. Invest in the stock market=economy benefits. Take a vacation=economy benefits. Buy a new TV=economy benefits. Where's the downside?
There is a downside. There is no such thing as "free" money. The billions the government pumps into bailout plans will contribute substantially to the debt that already chokes our economy. As the federal deficit continues to grow, our economy will continue to suffer.
How is this current economy impacting you? How have you benefited from the federal bailouts?
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
Here's a idea. Just give each adult American a $400,000 check. Talk about a recovery plan?!?! How could you go wrong with this bailout plan? Doesn't matter what a person does with the money, the economy benefits. Buy a house=economy benefits. Buy a new car=economy benefits. Fund a retirement plan=economy benefits. Pay off your credit card debt=economy benefits. Invest in the stock market=economy benefits. Take a vacation=economy benefits. Buy a new TV=economy benefits. Where's the downside?
There is a downside. There is no such thing as "free" money. The billions the government pumps into bailout plans will contribute substantially to the debt that already chokes our economy. As the federal deficit continues to grow, our economy will continue to suffer.
How is this current economy impacting you? How have you benefited from the federal bailouts?
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
Monday, November 3, 2008
Economic Opportunities
Unless you are living under a rock, you know we are experiencing tough times. High energy costs, home foreclosures, corporate and financial industry failures, stock market downturns... it all seems like bad news. But in this bad news, there may be opportunity.
As cities begin to feel the strain of these difficult economic times, so will the fire department. For example, I believe many fire departments will be asked to take budget cuts, to reduce staffing, to cut services, downsize training, and more.
When this happens, you will be at a crossroads. You can go down the path of slash and burn, painful cuts and reduced service. Or, alternatively, you can look for new and creative ways to ensure your customer continues to get great service.
Look at the way you provide services. Do you send a full response assignment to every alarm drop? Maybe you don't have to do that. Do you bring every member in from home for every call for service? Maybe you don't have to do that. Is your department surrounded by other communities who duplicates every service you provide? Maybe it's time to strike up some regional cooperation. Or... dare I say it... mergers and consolidations. When you eliminate the duplication of services, money is saved. Money that can be put toward ensuring the residents receive the same, or improved levels of care during difficult economic times.
These challenging economic times are going to require changes in the way you do business. Do you want to be pushed and forced to change? Or do you want to be proactive and a leader of change? The time to decide is now... because the forces of change are already set in motion.
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
As cities begin to feel the strain of these difficult economic times, so will the fire department. For example, I believe many fire departments will be asked to take budget cuts, to reduce staffing, to cut services, downsize training, and more.
When this happens, you will be at a crossroads. You can go down the path of slash and burn, painful cuts and reduced service. Or, alternatively, you can look for new and creative ways to ensure your customer continues to get great service.
Look at the way you provide services. Do you send a full response assignment to every alarm drop? Maybe you don't have to do that. Do you bring every member in from home for every call for service? Maybe you don't have to do that. Is your department surrounded by other communities who duplicates every service you provide? Maybe it's time to strike up some regional cooperation. Or... dare I say it... mergers and consolidations. When you eliminate the duplication of services, money is saved. Money that can be put toward ensuring the residents receive the same, or improved levels of care during difficult economic times.
These challenging economic times are going to require changes in the way you do business. Do you want to be pushed and forced to change? Or do you want to be proactive and a leader of change? The time to decide is now... because the forces of change are already set in motion.
Richard B. Gasaway, PhD, EFO, CFO
http://www.richgasaway.com/
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