Harvard Case - Municipal Decentralization in Buenos Aires: Creating the Municipality of Hurlingham
"Municipal Decentralization in Buenos Aires: Creating the Municipality of Hurlingham" Harvard business case study is written by Howard Husock, John D. Donahue, Merilee Grindle, John Thomas, Jay H. Walder. It deals with the challenges in the field of General Management. The case study is 11 page(s) long and it was first published on : Feb 1, 1999
At Fern Fort University, we recommend that the Municipality of Hurlingham adopt a comprehensive strategy focused on sustainable growth, citizen engagement, and efficient service delivery. This strategy should be guided by a balanced approach, considering both economic development and social well-being, while leveraging technology and innovation to enhance service quality and citizen satisfaction.
2. Background
The case study explores the creation of the Municipality of Hurlingham in 1995, a significant step in the decentralization process of Buenos Aires. This move aimed to empower local communities by granting them autonomy in managing their affairs. The case highlights the challenges faced by the newly formed municipality, including limited resources, bureaucratic hurdles, and a lack of experience in public administration.
The main protagonists are the newly elected officials of Hurlingham, tasked with navigating the complexities of establishing a functioning local government. They are faced with the challenge of balancing the needs of diverse constituents, managing limited resources, and delivering essential services in a rapidly growing urban environment.
3. Analysis of the Case Study
The case study can be analyzed through the lens of several frameworks:
SWOT Analysis:
- Strengths: The municipality possesses a strong sense of community, a growing population, and a strategic location within the metropolitan area.
- Weaknesses: Limited financial resources, bureaucratic inefficiencies, and a lack of experienced personnel pose significant challenges.
- Opportunities: The municipality can leverage its proximity to Buenos Aires to attract investment and create economic opportunities.
- Threats: Competition from neighboring municipalities, economic instability, and social unrest pose potential threats to the municipality's success.
Porter's Five Forces:
- Threat of New Entrants: Low barriers to entry for new businesses and organizations create potential competition.
- Bargaining Power of Buyers: Citizens have limited bargaining power due to the lack of alternative service providers.
- Bargaining Power of Suppliers: The municipality is dependent on suppliers for essential services, potentially giving them leverage.
- Threat of Substitutes: Limited substitutes for essential services exist, but alternative service providers could emerge.
- Competitive Rivalry: Competition exists among neighboring municipalities for resources, investment, and citizens.
Balanced Scorecard:
- Financial Perspective: Focus on revenue generation, cost management, and financial sustainability.
- Customer Perspective: Prioritize citizen satisfaction, responsiveness to needs, and service quality.
- Internal Processes Perspective: Optimize internal processes, enhance efficiency, and streamline service delivery.
- Learning and Growth Perspective: Invest in employee development, foster innovation, and promote organizational learning.
4. Recommendations
To address the challenges and capitalize on the opportunities, the Municipality of Hurlingham should implement the following recommendations:
1. Strategic Planning and Vision:
- Develop a comprehensive strategic plan outlining the municipality's long-term vision, goals, and objectives.
- Establish clear key performance indicators (KPIs) to track progress and measure success.
- Implement a participatory planning process involving citizens, businesses, and other stakeholders to ensure alignment and buy-in.
2. Financial Management and Resource Allocation:
- Diversify revenue streams by attracting investment, promoting local businesses, and exploring innovative financing mechanisms.
- Optimize resource allocation by prioritizing essential services, implementing cost-saving measures, and leveraging technology to enhance efficiency.
- Develop a robust financial management system with transparent budgeting, accounting, and reporting processes.
3. Service Delivery and Citizen Engagement:
- Invest in technology and innovation to enhance service delivery, improve communication, and empower citizens.
- Implement citizen-centric service delivery models that are responsive, accessible, and user-friendly.
- Promote transparency and accountability by providing citizens with access to information and opportunities for feedback.
4. Organizational Development and Capacity Building:
- Recruit and retain skilled personnel with expertise in public administration, finance, and service delivery.
- Invest in employee training and development to enhance skills and knowledge.
- Foster a culture of innovation, collaboration, and continuous improvement within the municipal government.
5. Economic Development and Job Creation:
- Develop a comprehensive economic development strategy that attracts investment, promotes entrepreneurship, and creates jobs.
- Support local businesses through incentives, infrastructure development, and access to financing.
- Promote tourism and cultural development to enhance the municipality's attractiveness and generate revenue.
6. Social Inclusion and Community Development:
- Address social inequalities by providing access to education, healthcare, and other essential services for all citizens.
- Promote community engagement by fostering partnerships with NGOs, community organizations, and local residents.
- Invest in infrastructure and public spaces to improve the quality of life for all residents.
5. Basis of Recommendations
These recommendations are grounded in the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with the municipality's mission to improve the quality of life for its citizens by fostering economic development, social inclusion, and efficient service delivery.
- External Customers and Internal Clients: The recommendations address the needs of both citizens (external customers) and municipal employees (internal clients).
- Competitors: The recommendations aim to position the municipality as a competitive and attractive destination for investment, businesses, and residents.
- Attractiveness ' Quantitative Measures: The recommendations are expected to result in increased economic activity, improved service quality, and enhanced citizen satisfaction, leading to positive financial and social outcomes.
- Assumptions: The recommendations assume a supportive political environment, a willingness to adopt innovative solutions, and a commitment to transparency and accountability.
6. Conclusion
The creation of the Municipality of Hurlingham presents a unique opportunity to build a thriving and sustainable community. By embracing a strategic approach that prioritizes sustainable growth, citizen engagement, and efficient service delivery, Hurlingham can overcome its challenges and become a model of successful municipal governance in Argentina.
7. Discussion
Alternative approaches could include focusing solely on economic development or prioritizing social programs. However, these approaches may lead to imbalances and neglect other crucial aspects of community development. The recommended approach offers a balanced and holistic framework that addresses both economic and social needs, ensuring a more sustainable and inclusive future for Hurlingham.
Risks and Key Assumptions:
- Political Instability: Political changes could disrupt the implementation of the strategic plan.
- Economic Downturn: Economic instability could hinder investment and economic development.
- Lack of Public Support: Insufficient citizen engagement and support could hinder the success of the initiatives.
Options Grid:
| Option | Description | Advantages | Disadvantages |
|---|---|---|---|
| Economic Development Focus | Prioritize attracting investment and creating jobs. | Faster economic growth, increased employment. | Neglect social needs, potential for inequality. |
| Social Programs Focus | Prioritize social welfare programs and community development. | Improved social well-being, reduced inequality. | Slower economic growth, potential for financial strain. |
| Balanced Approach | Combine economic development and social programs. | Sustainable growth, social inclusion, balanced development. | Requires careful planning and resource allocation. |
8. Next Steps
To implement the recommendations, the municipality should:
- Establish a dedicated task force to develop the strategic plan and oversee its implementation.
- Conduct a comprehensive needs assessment to identify key priorities and challenges.
- Engage with citizens, businesses, and other stakeholders to gather input and build consensus.
- Develop a detailed implementation plan with timelines, milestones, and resource allocation.
- Monitor progress regularly and make adjustments as needed.
By taking these steps, the Municipality of Hurlingham can transform itself into a thriving and sustainable community that serves the needs of its citizens and sets a new standard for local governance in Argentina.
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Case Description
As part of its efforts to recover from hyperinflation and an oversized public sector, the government of Argentinaspecifically the province of Buenos Airesseeks to control costs and improve service in local government. To do so, the provincial government tries a bold strategy: it splits up three large suburban Buenos Aires municipalities into eight new, smaller, jurisdictions. This budgeting, financial management, and political strategy case focuses on the implementation of the move toward smaller, more local government, through the prism of the creation of one of the new municipalities: the town of Hurlingham. The case describes the nuts-and-bolts budget decisions which a transition team of officials must make how to structure the new government, how to increase tax receipts and the political decisions which its new mayor confronts. He must decide which parts of the new town will get service priority: high-voting wealthy districts where tax collection has been low, or poorer neighborhoods from which the new mayor drew key electoral support? This case allows both for rigorous budget analysis and assessment of budget-related political strategy. HKS Case Number 1493.0
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