“Detroit has been spending on average $100 million more than it has taken in for each of the past five years. The city’s $11 billion in unsecured debt includes $6 billion in health and other retirement benefits and $3 billion in retiree pensions for its 20,000 city pensioners, who are slated to receive less than 10 percent of what they were promised. Between 2007 and 2011, an astounding 36 percent of residents lived below the poverty line. Last year, the FBI cited Detroit as having the highest violent crime rate for any major American city. In the first 12 years of the new century, Detroit lost more than 26 percent of its population.”
You gotta love the moxy of a Rosslyn Analytics. That’s right moxy!
Moving with a swagger that can only come from proven success, the company’s in your face we can do the job approach to marketing its services is both exciting and engaging. One can only wonder if this latest example of casting out a bold challenge will fly better in the United States than it did a few years ago in the UK. Back then, Rosslyn embarked on an aggressive marketing campaign that saw the company go so far as to offer to do a “UK central Government-wide spend analysis free of charge.” According to a post by Spend Matters UK’s Peter Smith, the offer p***ed off the government for obvious reasons.
Undeterred by the British rebuff, the company has just extended a similar offer to the City of Detroit. The only difference is that they have actually assigned a number in terms of the potential savings, should Detroit accept. This is tantamount to the Godfather making someone an offer they can’t refuse. While such conduct might be deemed to be too brash for British sensibilities, the same cannot be said for the U.S. Let’s face it, this was once the new world where a person simply had to have both the gumption and perseverance to rise to the top in Horatio Alger-type fashion.
While I am still awaiting third-party verification as to whether or not the projected $197 million dollars in savings is in fact possible, one thing is certain, the procurement world – particularly within the U.S. public sector – is a far more interesting place with a Rosslyn in it.
I will keep you posted.
Will this new offer be accepted?
Note: For story updates on Twitter, follow the hashtag #MotorCityOffer
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Procurement Insights 
colincram2013
September 9, 2014
This is a very good article, Jon. I am meeting up with Lance later this month.
Colin
piblogger
September 9, 2014
Thank you for the feedback Colin. Hopefully Lance will have some news regarding the Detroit offer.
In the meantime, do you think that Rosslyn’s offer has a better chance of being accepted in America as opposed to the UK?
Why for example were people within the UK government peeved off? Why would there be a different reaction on this side of the pond?
colincram
September 9, 2014
Three main reasons. The timing was wrong. Secondly, Rosslyn had not demonstrated that they understood the UK public sector, so there was a credibility issue. One has to prepare the ground for this sort of thing. Thirdly, the UK public sector is very big and complex – very different from a city. A fourth possible reason could simply be not invented here.
I hope Detroit accept the offer. They have nothing to lose. I am cautious about the size of the savings claim, but whatever happens, if Detroit accept the offer, they should be able to save alot of money – as long as they are prepared to take the necessary decisions. So, why would they not choose to do it? One reason could be that expensive consultancies may want the business, so may lobby the City not to accept the offer. If this appears to be happening, PI could do worse than to publicise this as it would mean a bankrupt city would be spending
large sums of money that it doesn’t have.