The city of Detroit, Michigan has a projected budget deficit of $280 million USD. Granted, the local economy is suffering the consequences of the auto industry catastrophe. Yet, debt in the hundreds of millions doesn’t accumulate overnight. According to one recent article, much of the city’s problem can be attributed to inefficient systems and processes that have been “neglected, not attended to, left to drift.”
The crisis team investigating the mess is reportedly proposing a variety of solutions, including using Six Sigma to streamline the city’s purchasing department processes. It’s not an ideal scenario for a Six Sigma deployment, but one can hope that the effort will receive enough support for administrators to realize that Six Sigma, along with the addition of Lean principles, could help put the city back on solid footing.
While Detroit’s situation may be extreme, it’s not unique. Government inefficiency is so commonplace, the phrase “good enough for government work” has probably been translated around the world. A process is a process though. Just as in the private sector, public service organizations can benefit from eliminating waste and striving for high quality output.
In Fort Wayne, Indiana, Six Sigma is being used in virtually every department, from fire, community development and water pollution control, to human resources, streets and solid waste. Not only does this equate to improved services for the city’s inhabitants, the city itself has realized millions in cost savings and avoidance. Detroit, as well as other struggling city and state governments, would do well to study Fort Wayne’s implementation and consider how Lean Six Sigma and systematic innovation can contribute to resolving their financial debt.
For more on Performance Excellence in government, visit Innovation 360 Institute.

