Managing a government like a business: the Sunnyvale System.
Government Finance Review › Vol. 10 Nbr. 2, April 1994
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Summary
Sunnyvale, California - Cover Story
The city of Sunnyvale, CA, has managed to improve its economic standing through the use of business principles focusing on effective long-range planning, performance budgeting and performance auditing. Sunnyvale's financial stability was the direct result of the city's decision to manage its government using the principles involved in running a corporation. The technique is contained in the city's Planning and Management System, which calls for the effective planning and implementation of long-term goals and budget that are to be carried out by the city council and the city manager, respectively.See the full content of this document
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Managing a government like a business: the Sunnyvale System.
Sunnyvale, California, the "Heart of Silicon Valley," has a residential population of 125,000 and a daytime population of 200,000. While other cities are struggling to survive, Sunnyvale has become well recognized as a financially sound city committed to excellence. It may look like any other city with invisible boundaries that hold homes, industry and people, but the unusual characteristic of this city is that it uses the same basic principles that apply to a well-run corporation to run its government. This philosophy of managing the city as a business has been the key to Sunnyvale's success.
As with corporations, the city has its own board of directors--the city council--and its own chief executive officer--the city manager. The council sets policies and goals, including the general plan, which is the statement of the city's long-range goals. The city manager, like the president of a company, carries out the council's policies and manages the day-to-day affairs of the city. The city's sole purpose, which is dictated by the general plan, is to provide high-quality services to the residents, industries and businesses of Sunnyvale in the most cost-effective way possible. The City of Sunnyvale has a dynamic management philosophy. City officials manage this $149 million municipal corporat...See the full content of this document
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