Economic Analysis and Strategic Planning

Economic Analysis and Strategic Planning

Today’s solid waste managers must always think strategically. Managing scarce resources, and delivering vital public services within a constantly evolving competitive environment, demands a long range perspective. What is ‘strategic planning’? Strategic planning is a process that:

  • Identifies customers’ needs, wants, and expectations.
  • Analyzes environmental and market constraints
  • Diagnoses an agency’s weaknesses
  • Identifies an agency’s competitive advantages
  • Reaffirms or defines an agency’s mission and values
  • Enables an agency to detect threats and capitalize on opportunities
  • Establishes short and long term goals that are in alignment with the agency’s mission and values.

Strategic Planning Objectives

The objectives of strategic planning are to:

  • Educate the public and elected officials about the agency’s role in public life
  • Justify the appropriation of public resources
  • Motivate key personnel about future challenges and opportunities

Issues Often Addressed in Strategic Planning

  • Capital financing (use cash reserves or issue debt)
  • Entrance into new markets
  • Adoption of new technologies
  • Public vs. private delivery of collection and disposal services
  • Public vs. private ownership of landfills and transfer stations
  • Franchises for exclusive service vs. non-exclusive service
  • Cooperative arrangements with other government agencies

Strategic Planning Tools

Various methods we use to assist agencies with strategic planning

  • Scenario planning
  • SWOT Analysis
  • Balanced Scorecard
  • Management retreats

Case Study: City of Anaheim

In 2010 and 2015, we assisted the OCCMA, which represents all the incorporated cities in Orange County, in negotiating a long-term waste disposal agreement with the County of Orange. The County owns and operates the three landfills used by the Cities.

In 2010, the OCCMA and the County negotiated a new long term Waste Disposal Agreement with a value of over $1 billion. MSW Consultants served as lead analyst. Work included reviewing the County’s extensive landfill tip fee model, and evaluating the reasonableness of the County’s projected tons, revenues, operating expenses, and capital expenditures. We also identified and quantified key deal points, and recommended negotiating strategies. In 2015, we again assisted the OCCMA in re-negotiating the Waste Disposal Agreement.

Cities We Have Served

Have a look at the different ways we have helped these cities. How can we help you?