Managing customer demand

Local public service providers are facing the dual challenges of substantial reductions in funding accompanied by increases in the demand for the services they provide.

The LGA analysis of the funding outlook for councils indicates a likely funding gap of £16.5 billion a year by 2019/20, equivalent to a 29 per cent shortfall between revenue and spending pressures.

‘Demand management' is an approach to achieving efficiencies that reaches beyond the boundary of the organisation. By changing the nature of the council's role and relationship with customers, local authorities are seeking alternative mechanisms to meet customer needs and thereby better manage demand. Changing behaviours – of frontline practitioners, managers and customers – often features as a critical enabler of demand management.

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