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

Advertisements

142 – A question. If I was the CEO what would I do? Answer: Focus the change effort.

Posted by Colin Weatherby                                                                                            740 words

boat builder CEO

I am sure being a CEO isn’t easy. The political environment in Australia is difficult and even more so in local government where the politicians are unpaid and not supported by political parties. There are many other pressures from the external environment – i.e. changing State government legislated responsibilities and increasing oversight of council operations; contentious urban growth and renewal planning decisions; inadequate State services for transport, education and health; and changing community expectations of service. So, if it was me, what would I do?

To begin I would not let the limitations and problems of the political and external environments dominate my management of the organisation. They are both urgent and sometimes important. However, they are not easily influenced and can take all of top management’s time and energy for little return. By all means be engaged and influence where you can but my approach would be to put my effort where no one else can and where I will get the best return.

By doing this, I think there would also be an improvement in the political environment and a stronger position to tackle the external pressures.

What do I mean? I would get my house in order. I would ensure that the resources at my disposal are used to create the maximum value for the community that has provided them. My goal would be for every ratepayer and resident to love living in my municipality. They would love it so much that they would tell all of their friends about it. They would offer to pay more for the services that they or their neighbours need. Every day social media would have stories of the great experiences people have had dealing with the council and the surprisingly good value they received.

Expectations would be met for basic service and exceeded where the value is visible and appreciated. This is the value capture that Sayan Chatterjee  talks about – councils don’t want people to value the services they provide and to offer to pay more so that the council can make a profit. Councils are not in that business. Instead, councils want them to be loyal customers who enjoy the value they get from paying their taxes. That enjoyment and loyalty is the value capture.

I wouldn’t ignore the outside world but I would want to be leading an organisation that redefines community expectations and delivers outstanding value. Here is how I would do that in order.

  1. Provide a more inclusive and less autocratic management style that suits local government culture and organisations expected to work that way with their customers.
  2. Set clear strategy – who are/are not customers; what service will/will not be provided to them; and how will it be done efficiently using available resources.
  3. Improve the customer focus by putting customers first (I mean really putting them first, not just saying it) through understanding the value they expect and designing services to provide it within available resources, now and in the long-term.
  4. Create better processes to make decisions and delegate more decision making and empower staff throughout the organisation so that more decisions are made and faster.
  5. Establish greater accountability by setting expectations and measuring performance so that feedback is provided to support achievement and create a performance-orientated culture.
  6. Focus innovation on areas of the organisation where significant change is required and set up systems to so that everyone continuously improves.
  7. Simplify the complexity inherent in local government by identifying and eliminating process constraints that have developed over time.
  8. Focus on productivity by ‘unlocking’ the capacity of people and resources to ensure that the required services are being provided as efficiently as possible.

I have been told (by a CEO) that a world where ratepayers and residents enjoy the value they get for the taxes is unrealistic and unachievable.  If that is what our leaders think, what hope is there?

I have used an image of a boat builder for a reason. I have a relative who owns and builds wooden sailing boats. After talking to him, I think that leading an organisation is a lot like building a boat. You need to design the boat to optimise the performance required – does it have to be safe in all conditions, will it have to make fast passages, or will it carry burdensome loads? One boat can’t do them all.

Then materials must be selected and the builder needs to understand the properties of those materials – how they are worked to make the boat, how they will perform under load, how they will fail, and how they can be repaired.

A boat must be made with care. There is a right and a wrong way to do it, and doing it the wrong way could lead to failure and loss of life. Finally, the boat needs to be beautiful.

This is an important point for local government.  In the same way that there is no joy in building or owning an ugly boat, success in local government must also include a sense of pride and achievement in having contributed to something worthwhile.

Chatterjee, Sayan 2013. Simple Rules for Designing Business Models, California Management Review, Winter.

140 – Developing a dashboard for performance measurement. A case study – Part 2.

Posted by Colin Weatherby                                                                         810 words

aircraft cockpit

Some time ago I posted on my approach to developing a dashboard for my unit. I set out the ‘performance questions’ that I could need to answer at any point in time as I ‘drive’ my unit. In this post I apply the ideas of Geary Rummler, Alan Brache, Mark Moore and Christopher Stone to determine measures and lead indicators.

The performance questions identified in my first post are intended to get to the heart of the ‘performance logic’ underpinning performance management of the unit. Understanding the performance logic is an idea from Rummler and Brache. Seeing the performance logic as a series of ‘performance questions’ comes from a handy paper by Bernard Marr on the Advanced Performance Institute website, ‘What are key performance questions’  and how they can be used to engage people in dialogue about performance and guide the design of meaningful performance indicators. Continue reading

134 – ‘A new theory of value creation for local government’. Do we need one? Part 4 – Integrating the thinking.

Posted by Lancing Farrell                                                                              1600 words

cutting diamond

This last post in this series (see here, here and here for previous posts) is an attempt to synthesise a new theory of value creation for local government using the ideas discussed in the previous posts.

First, a quick recap on strategy, business models and operations stratgey.

  • The strategy is the position that an organisation takes in relation its market, the value it decides to create, and how it decides to create that value and operate at a surplus.
  • Every organisation explicitly or implicitly employs a business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it will use.
  • The operating strategy then guides decisions about vertical integration, capacity planning, facilities planning, services technologies, and process technologies.

A new theory of value creation for local government will need to integrate these concepts into a cohesive and repeatable approach. Continue reading

114 – Classic paper: ‘Forget your people – real leaders act on the system’. John Seddon.

Posted by Colin Weatherby                                                                         2200 words

john seddon

John Seddon won the first Harvard Business Review/ McKinsey Management Innovation Prize for ‘Reinventing Leadership’ in 2010 for this paper. The prize was awarded for:

“ … the best story (a real-world case study of management innovation) or hack (a bold idea for tackling a critical management challenge) around … redefining the work of leadership, increasing trust (reducing fear), and taking the work out of work.”

As the title suggests it is a provocative paper. In his usual way, Seddon provides challenging ideas supported by practical evidence.

The context for the story is Owen Buckwell, the head of housing at Portsmouth City Council in England. Over 40,000 people rely on him for warm, safe and comfortable homes. Each year he is responsible for dealing with 17,000 blocked toilets and 100,000 dripping taps in the 17,000 council houses.

Owen has been managing housing for 6 years. Seddon describes him as a curious man who likes to get to the bottom of things.

What does Owen do?

111 – High performance: ‘The Best and the Rest’. Claudio Fernández-Aráoz.

Posted by Colin Weatherby                                                                         560 words

star

This is the title of a chapter in Fernández-Aroáz’s book ‘It’s not the How or the What but the Who’. It discusses the difference between a typical worker and a highly productive worker. I was surprised at the differences in performance between the best and the rest.

Fernández-Aráoz says that a ‘star’ worker in simple jobs, for example an assembly line, and a ‘typical’ worker is about 40%. The distribution of performance follows a normal distribution, or bell curve. The distance between the best and the rest grows quickly with increasing complexity of work. He cites a top life insurance salesperson as being 240% more productive than an average salesperson, and star software developers outperforming others by 1,200%. Continue reading

108 – Melbourne City Council: Organisational Capability Review, May 2015.

Posted by Colin Weatherby                                                                         1300 words

Melbourne capability review model

The public release of this critical report has been something of a surprise. Commissioned in March 2015 and released in May, the report prepared by Jude Munro, Dr Bronte Adams and Steve Parker has looked at three key capabilities; leadership, strategy and delivery. Each has been rated on a four point scale for several elements. Out of the ten attributes rated, six were seen as a ’development area’ and one as a ‘serious concern’. The remaining three were seen as ‘well placed’ and none were seen as ‘strong’ (p.14). So what does this mean?

melbourne assessment criteria ratingsThe report states that this is the first time that this review model has been applied to local government in Australia. Its intention is to provide a forward looking, whole of organisation review that assesses an organisation’s ability to meet future objectives and challenges.

 

“This review provides the opportunity and impetus to take a very good organisation and make it even better.” Ben Rimmer, CEO

Continue reading