1500 words (14 minutes reading time) By Lancing Farrell
I was reading an article about la cucina povera, the cuisine created in Italy over centuries based on the food prepared by poor and sometimes starving people. Throughout history, people have experienced food insecurity and famine and they have adapted, but none have done it as well as the Italians. In Italy, love, ingenuity and scarcity combined to give birth to a new and delicious cuisine that has become mainstream.
I wondered, can a similar thing happen to local government as it is starved of funds and impoverished by the Victorian government’s rate cap?
1000 words (9 minutes reading time) by Lancing Farrell
I was talking to a colleague recently, and I was asked about the management thinkers that have influenced me. It started me thinking back to my early days as a manager in my mid-20s and later when I completed a MBA in my mid-30s. And the lessons I had from starting and then managing my own business for a decade. Many management thinkers influenced me, and, equally, so did my opportunities to practice different ways of managing. This is quite a long essay, so I have split it into three parts.
I recall that before I was a manager, I had an interest in management. I wasn’t too sure what it was but I had read The Peter Principleas a student, and I knew that management was important in organisations if they were to be effective. For some reason I also remember that someone at the council where I started working was talking about Value Management. Now I know that they had obviously been to a course. Then I got a job as a manager. Continue reading →
1400 words (reading time 11 minutes) by Lancing Farrell
The focus of local governments has been on employee protection, service continuity, managing disruptions to cash flow and supply chains, and trying to understand the new risks emerging with Coronavirus. It is a whole new operating environment. This post explores some of the financial and operational impacts of the Coronavirus.
Physical distancing has reduced the capacity of facilities by half or more, making appointments and providing concierges has increased staffing requirements at facilities, and there is demand to retain new services like ‘click and collect’ and tele-services introduced in response to the Coronavirus, at the same time as regular services resume.
This is all happening as revenue is impacted by loss of fees and charges, additional expenses in relief packages offered to businesses, and citizens seeking deferral of rates because of financial hardship. Some councils are planning not to index their rates, which is a revenue reduction next financial year and every year thereafter.
At the same time, councils in Victoria are expected to maintain the employment of all staff without financial support from the Federal or State government. Councils adding to unemployment will not help and they need to work out how to live within their means.
Having said that, some people like change. Others could be frustrated by the current situation. These people could be innovators or early adopters who will readily accept the need to change. The Rogers Innovation Diffusion Curve shows the rate at which a new idea spreads through a group. In any group contemplating change you are likely to have people from each of the groups identified on the curve. Some are going to accept the change more easily than others.
A colleague recently taught me a useful way to help all groups, including the laggards, to engage with new ideas. It was demonstrated by Gregory Bayne of Total Leader and Coach Solutions, Australia. It is designed to overcome resistance to change and is based on motivational interviewing techniques. Continue reading →
I read this article and though it was fortunate that the writer, author and polymath Satyajit Das, hadn’t been dealing with his council. No doubt a greater attempt would have been made to feign ‘one stop’ service but if it was anything but a simple matter, he would have come across the same dysfunction. His acuity is evident in his analysis.
Das’s dealings with his bank highlighted how the quest for efficiency and lower costs has achieved the opposite result. This is a recurring theme in the writings of John Seddon about the public sector. Das lists six sources of ‘unproductive and inefficient’ failures that he believes are now common in many organisations.
Tasks have been fragmented across different locations and the simplest activity is now complicated.
There is no continuity. ‘One person is not accountable for the complete activity. Workers lack any idea of how what they are doing, or not doing, affects the whole process overall’.
Staff lack the skills and knowledge required.
Performance measurement has lowered, rather than improved, performance. Staff actions detract from results instead of helping achieve them.
Leadership is lacking in ‘domain knowledge’ (i.e. valid knowledge in a particular area).
There is a tendency to see history as old and irrelevant. The latest technological wizardry is the best solution to any problem. Valuable lessons from the past are routinely ignored.
Value is often mentioned in local government when talking about services, particularly ‘best value’. However, there is often inadequate understanding about the different types of value, the difference between private and public value, and how value is actually created and managed by an organisation. Sometimes there is the assumption that because we have been busy, that we must have created something worthwhile.
This essay brings together ideas from several earlier posts and is constructed around four hypotheses:
That there are different types of value created by organisations and for local government public value is the most important.
Public value is the primary value that must be understood and delivered if councils are to deliver what is expected by the community.
Value-led management is a way of managing that could transform local government and make it more responsive and effective in serving the community.
There are simple and effective tools that can be used to improve value creation in local government.
Hypothesis 1: There are different types of value and public value is the most important for local government.
In a metaphorical sense the value that you add is what you ‘bring to the party’. This is determined by what other people think you have contributed and by thinking about what the party would have been like if you hadn’t arrived.
There are different types of value and it is worth briefly considering the difference between private value and public value. Public value is the collective view of the public or community about what they regard as valuable, especially with regard to the use of public money and authority. Moore describes this as occurring along a spectrum from value that is obtained from public services that is essentially private value, similar to the concept of customer value, to public value that reflects the aggregate value expectations of citizens.
At the private value end of the spectrum, the focus is on the individual service recipient and delivering value that satisfies their expectations. At the public value end of the continuum, the focus is on achieving the social outcomes sought by the community or public. Continue reading →
Some time ago I discussed how to create a local government service catalogue. The process was simple and effective in describing services in customers’ terms and linking services to cost centres in the budget and those responsible for the cost centres. You might ask, what else needs to be done? Well, for the service catalogue to be really useful it needs to be linked to the organisational planning processes. Here’s how that can be done.
To begin, it is a good idea to test the service catalogue with the community. I have heard of a council using it to lead discussion with ‘peoples’ panels’ about the services delivered, how rates can best be spent, and whether or not the council should seek an exemption from the municipal rate cap being imposed in Victoria. If the community can relate to the services described in the catalogue and understand what they involve, it is likely that you have got the catalogue right. It doesn’t mean that it can’t be further improved, but it is a good start.
Customer service is, and should be, a major concern for local government. After all, councils are service organisations. Sometimes there is confusion about exactly what customer service means, how it relates to public service delivery, and what aspects of service are most important to get right in local government.
This essay focuses on three hypotheses:
That ‘customers’ in local government are different to the customers described in most customer service literature and encountered by most service organisations.
There are six main opportunities for local government to improve service to customers.
There are simple tools available that can assist councils in getting service delivery and customer service right.
People in local government regularly discuss effectiveness and efficiency. Often this happens in relation to pressure on revenues, such as rate capping. Most of the discussion centres on efficiency rather than effectiveness, and opportunities to stop delivering those services that are seen as ‘cost shifting’ from other government. The efficiency discussion is often not well informed. Frequently it focuses on inputs while ignoring outcomes and public value. Any savings are usually equated with cost cutting, not creating the same value at lower cost.
This is the third post in a series of four. It addresses some of the challenges to design-thinking. Jon Kolko has identified several.
His first challenge is accepting that you will be dealing with more ambiguity.
“It is difficult if not impossible to understand how much value will be delivered through a better experience or to calculate the return on investment in creativity.”
He says that ambiguity doesn’t fit well with organisations that value ‘repeatable, predictable operational efficiency’. This will be an issue for councils seeking to use design-thinking. For councils, there is an expectation that value will be created through efficient use of resources without any waste. The strong risk aversion of local government reinforces elimination of uncertainty, or at least pretending it has been eliminated. Embracing a culture or experimentation, customer value creation and risk taking will be very challenging. Continue reading →