221 -The Vanguard method in Australia.

By Tim Whistler                                                                                                         1000 words

Progressive leaders

The summit offered an opportunity for those who are unfamiliar with the Vanguard method to hear about work that has been done in Australia by IOOF (a superannuation fund manager) and the County Courts Registry using the Vanguard method. Vanguard team members presented public service case studies from the UK.

It was an interesting event and it highlighted the potential for leaders to think differently and better understand how work is being performed in their organisation, what is happening in delivering value to customers, and how improvements can be made.

There were several issues relevant to local government in Victoria. Continue reading

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215 – From the Archive: Creative ways to make your capital expenditure target. Some ideas.

Posted by Whistler                                                                          570 words

capital expenditure graph

Originally posted 20 April 2015

Yes, it is that time of the year when our engineers and accountants become highly creative.   By June 30 they will need to explain whether or not the targeted amount of capital works has been completed. Often the target is expressed as simply as ‘90% capital program completed’. Usually it is a KPI for the CEO and senior managers. That makes it an important target.

So, why the need for such high levels of creativity?

Delivering 90% of the planned capital works is harder than it sounds. Many councils would have averaged around 60% to 70% over the last ten years. This is partially explained by growth in capital expenditure that has exceeded the organisational capacity to deliver. Another part of the explanation is that capital works programs have become more diverse with more people participating in the planning and delivery across the council. As a result, projects have become more complex and people with inadequate project management skills are often involved.   Finally, councillors have become much more involved and the capital works program will now have projects that councillors, sometimes in response to community submissions to the budget process, have included – often at the last minute.

As the capital works program has grown, become more complex, involved more people with less skills, and started to include projects without adequate pre-planning or feasibility analysis, especially if they require community engagement, it has become much more difficult to deliver the whole program. But the target remains.

This is where the creativity occurs. Continue reading

211 – Unpredictability, interdependence, complexity and chaos – why councils need to adopt the Third Principle: optimisation.

Posted by Lancing Farrell                                                                                              1200 words

the third principle

I recently rediscovered a book that I bought 17 years ago when it was first published. It is one of those useful management books that is an absorbing read when you buy it, and then it quietly sits on your shelf waiting for the day you really need it. It is now a book for the times with rate capping coming into Victorian local government.

Neville Lake’s central idea is that management practice has three fundamental organising principles – effectiveness, efficiency and optimisation. He believes that an organisation can be both effective and efficient but be sub-optimised. This leads to only 80% of its potential being realised.

The other 20% is trapped in processes that don’t work, management models that don’t deliver, and interactions with customers that fail to deliver expected value.

Having worked in local government for 30 years, I have to agree that we are sub-optimised organisations. Continue reading

204 – Rate capping: an update.

Posted by Whistler                                                                         900 words

service brainstorming 2

It has been some time since discussions commenced regarding the imposition of a rate cap on local government in Victoria. There have been a few earlier posts on the topic (see here, here, here, here and here). The rate cap has now been set and the process for any council seeking an exemption from the rate cap has been communicated. The Essential Services Commission has been effectively positioned as a regulator for local government. So what have councils been doing?

I would say not much. The requirement that the community support must be demonstrated if seeking an exemption, coupled with 2016 being an election year, has stifled activity across the sector. According to The Age newspaper 21 councils have indicated they may apply for an exemption. Some councils, including Melbourne City Council, have attempted to demonstrate community support for their rating strategy, which could support an application for an exemption from the cap.

The results from the few people’s panels held have been interesting but not unexpected. The community expects the council to use current resources well before asking for more. They want to see value for money before they will support asking people to pay more tax. Fair enough. Continue reading

167 – High performance: ‘Why I Like People with Unconventional Résumés. Claudio Fernández-Aráoz.

Posted by Colin Weatherby                                                                         500 words

its not the what or the how cover

This is the title of a chapter in Fernández-Aroáz’s book ‘It’s not the How or the What but the Who’. It is also the title of a blog he posted for HBR.org . In it he discusses the unconventional candidate with exceptional potential. I was surprised at his honesty in discussing his personal ‘epiphany’ when he realized that, as a recruiter, he had been advocating a recruitment strategy that his own company did not follow.

Fernández-Aráoz starts the chapter by discussing his HBR.org blog post and the response it prompted. Many of the respondents described their frustration at recruiters who didn’t appreciate, understand, or even consider their track record. For many people who have pursued executive roles in local government this is not news.

Many councils or almost all recruiters play it safe. Continue reading

154 – “If it is easy or there is a budget, councils are probably doing it”.

Posted by Whistler                                                                                                          400 words

easy peasy lemon squeezy

The flip side of this statement is that if it is difficult or there is no budget, councils probably aren’t doing it. This is one of my most common bits of advice to residents. The reality is that councils can really struggle to do difficult things. It isn’t that they don’t want to. It is just that the system militates against it. It is worth thinking about the hallmarks of something that is difficult for local government.

It is often something that is new – something that the council hasn’t done before that has to be learnt. This takes time and effort, and can be risky. Someone could be upset by it. You might make a public mistake. I once worked for a council that wanted to be recognised as a leader, but only by doing things that other councils had already proven would work. Continue reading

143 – Developing a dashboard for performance measurement. A case study – Part 3.

Posted by Colin Weatherby                                                                                         750 words

the score

In the first two posts (see here and here) I discuss the requirements for a performance dashboard for my unit, the sources of performance measurement ideas, and the thinking behind creation of that dashboard. This post has the final dashboard.

At the outset I will remind you that purpose of the dashboard is to provide the performance information that I need in real time to be able to drive my unit. It is not intended to measure everything that might be relevant to understanding the performance of the unit. There will need to be other measures. The objective is to have no more than ten ‘dials’ ion the dashboard.

The performance questions that I have selected that are relevant to real time understanding and management of performance are: Continue reading