The new administration in Indianapolis initially determined to privatize many municipal services. Before taking this action, however, city leaders want to know the current value of the implementation of these services to municipal employees. Existing financial system of record how much the city spends on functional categories and departments, but no information on the cost of services. City establishes a task force to develop an activity-based (ABC) estimate the costs of filling potholes. It shows information about the municipal employees and allows them to introduce new efficient procedures to enable them to submit their applications in competition with private contractors. This case describes the development of the model and the response ABC city workers to newly discovered information. "Hide
by Robert S. Kaplan Source: Harvard Business School 15 pages. Publication Date: Feb 05, 1996. Prod. #: 196115-PDF-ENG
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