Challenge

A city's Claims Department discovered that it cost them more than $100 to process each claim. But the average claim settlement – for such problems as minor damage to private driveways by the city snowplows, garbage trucks damaging fence posts-- was only $56 dollars.

Regardless of the size of the settlement, all claims were handled in the same manner: a city inspector examined the damage and wrote a report that then had to make its way through the bureaucracy.

Solution

The city decided to give each inspector a checkbook. Inspectors were empowered to apply their own judgment in each situation they assessed and were given the formal authority to make on-the-spot restitution for claims up to $50.

Result

Settlements were paid more quickly, cost less to process and the department's budget was reduced.