267 – Professor Joseph Drew – Analysis of Financial Results

880 words (10 minutes reading time) by Lancing Farrell

The mean and median of the data set for all NSW councils

Professor Joseph Drew has posted another enlightening video on his YouTube channel. His analysis of 15 years of council data in NSW shows worrying increases in expenditure on staff, materials and depreciation. In fact, ‘worrying’ is an understatement. The situation is becoming catastrophic. Yet, no one seems overly worried in the Premier State.

Professor Drew has committed to producing the same data for Victoria. Maybe there will be more of a response from the Garden State. As every gardener knows, you have to observe what is happening and make timely interventions for a garden to succeed.

One of the challenges Professor Drew’s video has highlighted for me is the relatively low level of executive financial literacy and knowledge of statistics and data. This might explain the lack of response to the data from local government. Professor Drew goes to great lengths to explain the importance of measures of central tendency and the difference between the available measures. In particular, he is looking at the mean and standard deviations of the data set, and the median .

Are you digging out an old text book or searching on Google yet?

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256 – Navigating the Reductionist Loop in OECD Decision-Making

580 words (7 minutes reading time) by Lancing Farrell

In a thought-provoking post titled ‘OECD Solutions,’ Colin Weatherby examined decision-making by those suffering from OECD, shedding light on the prevalence of single-loop learning over its more nuanced counterpart, double-loop learning. The implications of this choice, as Weatherby suggests, go beyond the surface, hinting at a deliberate oversight of systemic causes.

Image source

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254 – Hacking your bureaucracy

850 words (9 minutes reading time) by Colin Weatherby

As regular readers will know, we are partial to a good book that throws some light on the issues facing local government. The idea that knowledge of theory should underpin practice, or that learning how others have solved the problems you face can provide useful insights, is, unfortunately, not always valued as much as it should be

My latest read is an interesting book.  ‘Hack Your Bureaucracy – Get Things Done No Matter What your Role on any Team’ is presented as a ‘how to manual’ of tips and tricks to work within bureaucracy to, unsurprisingly, ‘get things done’.

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249 – OECD solutions.

870 words (10 minutes reading time) by Colin Weatherby

I was talking to a former colleague recently and she described the decision making by her new CEO as ‘OECD’.  I asked her what she meant. She said that when faced with any decision, the CEO would look for solutions that are:

O = obvious (i.e. he won’t have to explain the decision because it will be obvious to everyone).

E = easy (i.e. easy to act on the decision and within his capability to implement it).

C = cheap (i.e. it won’t cost any more money to act on the decision or it will immediately cost less).

D = done (i.e. when action has been taken, the result will be obvious to everyone).

I asked her how this was working out for her.

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245 – Council BI – some more thinking.

880 words (7 minutes reading time)  by Lancing Farrell

Source: Qlik

Summary

Australian local governments make decisions on a range of issues that impact their communities, such as planning, zoning, environmental management, infrastructure, waste management, community services, traffic management, and economic development. The decisions they make are influenced by legislative requirements, public input, and deliberation among elected officials. The specific responsibilities and decision-making processes of local governments can vary depending on the state or territory in which they are located. The decision-making process typically includes planning and preparation, public consultation, council meetings, decision-making, implementation, and review and evaluation.

In Colin Weatherby’s post on BI, he looked at how it is used by companies and how it might be used by councils. With some assistance from ChatGPT (I am becoming quite a fan), I have tried to drill down to the actual decisions councils make where BI would be useful.

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236 – Organisation design in local government

1000 words (9 minutes reading time)                                      by Colin Weatherby

I am intrigued by the thinking behind council organisational restructures. It seems that every new CEO feels the need to redesign the organisation to make it work better. Are they successful? The question on my mind is, how can a restructure make the organisation perform better?

I recently came across a useful publication on the topic that has been provided by the Victorian Public Sector Commission. It is entitled ‘Organisational Design’  and is part of the Leading Public Organisations’ series. The intention is to provide ‘prompts, thought starters, practical ideas, and reminders for leaders and managers working in Victorian public sector organisations’.

There were certainly some useful reminders. In the first section on ‘the basic concepts’, the reminder is that organisational design is a consequence of the organisation’s goals, the work it needs to undertake, how that work is divided up (and how the bits are then connected, especially information flows), and how the work will be authorised and governed. The design is communicated through formal documents (e.g. the organisation chart, position descriptions, instruments of delegation) and informally through workplace practices (i.e. ‘the way things are done around here’). The design is also dynamic and changes in response to formal decisions (e.g. work allocation) and evolutions in practice (i.e. the workarounds that develop over time).

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223 – Risk management in local government

By Lancing Farrell                                                                                                  730 words

risk taking

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Is there a delegation for taking risks at your council? Does your council have a risk appetite? Are the strategic risks that have been identified appropriate? Are the operational risks relevant? Does the audit program decrease or increase risk?

These are questions that a colleague raised with me recently when trying to understand the way risks were managed at their council. I suggested they look at their risk management framework – how is risk assessed in terms of likelihood and consequence. This should explain the inherent risk, current risk rating, the target risk and rate the effectiveness of controls. It can make interesting reading.

Next, I suggested they look for their organisations lists of key risks – strategic and operational. These are usually in the risk register. This isn’t always easy to find. Someone in the risk department will have it. Most councils will have up to 8-12 strategic risks. There will be many more operational risks.

Councils are very risk aware. Some people describe it as risk aversion. I think this is driven by the multiple accountabilities that councils live with – the Minister for Local Government, the Ombudsman, the courts, the media and the community. Sometimes it is hard to know who is going to take issue with what you have done. Continue reading

220 – A decision-making backlog – do you have one?

By Colin Weatherby                                                                                                700 words

decision making

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I was recently talking to a colleague about local government decision making. There have been many posts on the topic (see some here, here, here and here). Our discussion turned to whether the common complaints made about the performance of councils reflect a decision-making backlog – i.e. not all the decisions that need to be made, have been made (certainly not on time).

A comment I heard from Professor Mark Moore had started me thinking about the number of decisions we need to make.  He says that today a government makes 10,000 decisions each year. It would be great to know how he came up with the number. His comment was made in the context of the mandate a government takes from an election – they can only campaign on a small number of key issues, which cannot provide a mandate for all the decisions they must then make.

It started me thinking about how many decisions a council makes each year. Working out how many decisions a Council makes in the chamber is relatively easy. I am not sure how you would work out how many decisions are made by officers under delegation from the Council or how many operational decisions are made delivering services.

I started doing some sums. Continue reading

192 – Boundaries, interfaces and thresholds. Why do we love them so much?

Posted by Whistler                                                                                         450 words

stile over fence boundary

I was at a meeting recently where officers were discussing who is responsible for different maintenance activities. They had developed a ‘demarcation information guide’ for the managers of facilities so that they could try and work out who to contact for different maintenance tasks. It told you who looked after fences, paths, lights, floor coverings, broken windows, etc. It started me thinking about local government’s penchant for boundaries (nobody suggested that an alternative could be service integration).

I think we like to set boundaries because it lets us focus on what is special about ourselves as a point of differentiation from other local governments. I once worked at a council where the CEO said that we should act as though the world ended at the municipal boundary. We were different to everyone else. He said to imagine that if you left the municipality you would fall off the edge of the world. As a leadership ‘device’ it certainly focussed attention on the municipality. It was a simple and effective way to differentiate the council – pretend there is nowhere else!

This approach reinforces the view that each council is ‘special and different’, rather than accepting that we have more in common than we have that is different . This view is evident when councils are reluctant to share systems or services. In Victoria we resisted municipal amalgamations and many councils still complain about them. I think it is part of our culture to resist ideas from outside our sector or organisation. This creates a safe and reliable place.

We also like interfaces. If we didn’t, why would we design our organisations around town planners, engineers, social workers and accountants? The functional structure of councils creates lots of interfaces between units, departments and divisions in the processes that actually deliver services. It is these interfaces that result in service failure and the resultant ‘failure demand’ identified by John Seddon. Work flows across interfaces, not up and down within silos.

And thresholds abound. There are the tiered levels of authority delegated by the CEO. The typical council ‘command and control’ structure, so criticised by John Seddon, puts in place lots of hierarchical thresholds. We have entry levels for employment. Anyone unsuccessful in applying for a senior role will be familiar with the response ‘we had other applicants already at the required level’ when you seek feedback.   We like to employ people based on what they have done rather than what they can do. Suppliers and contractors who are new to local government struggle to get a customer. Once you have worked for a council, the others will open their doors. Getting the first council is the hard bit.

I think that the attachment to boundaries, interfaces and thresholds comes from our desire to limit things –  the extent of our responsibilities; the extent of authority; the amount of risk we will take.

187 – A high functioning Executive. What would it take?

Posted by Colin Weatherby                                                                                         1100 words

awesome

This is a question I was asked recently by a reader. Having read several posts critical of the behaviour of the Executive (What can a culture survey, an organisational self assessment, and your Executive’s risk appetite tell you?, The Executive. What exactly is their role? , Does your Executive suffer from altitude sickness?, and The Executive: filters, traffic controllers or drivers? ) she wanted to know whether I had a solution. Knowing that it is easier to be critical than creative, I cast my mind to thinking about the nature of the problem and some potential solutions.

I think the starting point is to understand the problem. In a nutshell, I think the following issues illustrate the problem:

  1. The Executive is overloaded with the small stuff handed to them by councillors (not the council). Much of it has to do with the personal idiosyncrasies of councillors and behaviours arising from their inability to work together as a group. It is dysfunctional, urgent and produces little value for the community. There are better ways for potholes to be reported.
  2. The Executive has to deal with high level relations with external organisations and strategic external pressures. These are often CEO to CEO relationships and cannot be readily delegated.
  3. The Executive is not putting enough time and effort into leading the organisation. Their focus on councillors and the external environment takes most of their time and energy. At the same time, they worry about problems 1 and 2 being made worse so they try to control organisational communication and decision making. When this is done ‘efficiently’ by time poor leaders it drives dysfunctional management behaviours.
  4. The Executive operates independently of managers and participates in the Senior Management Team (SMT) episodically. There is frequently no genuine and continuous engagement with the SMT in strategy and decision making. Managers are included in decision making when it suits the Executive – which is usually when they have the time and energy to do it. Managers are effectively isolated from information and the strategy decisions being made continuously by the Executive.

Obviously there are different solutions possible. Continue reading