257 – Austerity and Victorian local government

800 Words (9 minutes reading time) by Colin Weatherby

I was reading the latest Local Government Information Unit (LGIU) newsletter from the UK and the news item in the image above caught my attention. Although the cause of the problem is central government cutting funding to councils, not imposition of a rate cap, it has the same effect on council finances and reinforces the view I expressed in my posts about the effects of the rate cap (‘Il comune povero- ‘The poor municipality’ and ‘Rate Capping – the final words (from our future))’. Councils in Victorian can respond by trying to improve current services and increase revenue, find efficiencies and reduce waste in operations, and they will still be unable to meet community needs and expectations within their available resources.

In Victoria, councils cannot issue a section 114, which in the UK means that all spending, apart from on protecting vulnerable people and providing statutory services, will be suspended. Instead, the Victorian government sends in Monitors to oversee council decisions, and then, if the council doesn’t respond as the State requires, they can dismiss the council and appoint Administrators to run the council. In the past, this has resulted in decisions being made by the unelected Administrators to sell community assets, cut services and make whatever changes they think are necessary to get the council back in the black. This tends not to meet community needs and expectations either.

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255 – Navigating Efficiency and Effectiveness in Local Government

520 words (6 minutes reading time) by Tim Whistler

Recently, I have been thinking about the dichotomy between effectiveness and efficiency. It is becoming a focal point in assessing how councils perceive and measure their performance.

Peter Drucker’s insights, encapsulated in “The Effective Executive,” draw a clear distinction between effectiveness and efficiency. Effectiveness, he says, is about selecting the right goals and attaining them, with the emphasis on doing the right things. On the other hand, efficiency revolves around optimising available resources to achieve those goals, with the emphasis on doing things right.

Effectiveness is doing the right things. Efficiency is doing things right.

Peter Drucker
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253 – Minds Change: My Journey to Transform Local Government Performance

600 words (7 minutes reading time) by Lancing Farrell

Have you ever had that eureka moment where something you were trying to understand is suddenly made crystal clear to you? That’s exactly what happened to me after reading David McRaney’s thought-provoking book, ‘How Minds Change – The New Science of Belief, Opinion, and Persuasion.’ This enlightening read gave me reason to revisit some past posts on improving local government performance. In reading the book (and this is deliberate by the author) I was led through Piaget’s stages of assimilation and accommodation, before eventually reaching a Kuhnian paradigm shift. My epiphany was realising why organisational change is so hard.

When I looked back at my earlier posts, I realised that my growth as a leader accelerated when I first saw work as a system. At the same time, I genuinely believed that I needed to become the architect of better approaches. I had an academic background, experience of travelling overseas to broaden my outlook, and a relentless passion for my work. I thought that if anyone could revolutionise services, it would be me.

However, this view eventually transformed into a more holistic and community-oriented perspective as I started to see the work as a ‘frog’ system, not a ‘bike’ system. You’ll need to read my previous posts to grasp the analogy, but in essence, I transitioned from a thinking I needed to be a one-man show and lead others by giving them better ways, to a more participatory approach where everyone is engaged in finding improvements.

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248 – Some recycling.

700 words (8 minutes reading time) by Lancing Farrell with ChatGPT

In the best traditions of blogging, I have started recycling some early posts. To add value I have asked ChatGPT to analyse three posts (Post 103 – Classic paper – ‘Managing Government, Governing Management’ by Henry Mintzberg, Post 229 – Coronavirus and local government – time for a new O/S?, and Post 231 – A New City O/S – Stephen Goldsmith and Neil Kleiman) and re-write them as one post.

Mintzberg challenges traditional perspectives on government organization and management, Goldsmith & Kleiman’s book complements Mintzberg by proposing a comprehensive transformation of local government operations. Both identify the need for flexibility and adaptability in addressing the challenges of governance.

Here is the ChatGPT analysis.

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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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244 – Council BI.

1300 words (12 minutes reading time) by Colin Weatherby

Source: ChatGPT

I am trying a new approach with this post and using ChatGPT to provide a summary with short and long versions to match your reading appetite. It might be a little repetitive if you read them all but it will reinforce the key points! Your feedback will be appreciated.

Summary

Business intelligence (BI) is a set of techniques and tools used to analyse data and make informed decisions. It is widely accepted in the private sector but is still evolving in local government where data collection is mainly driven by performance reporting requirements. However, with the financial challenges faced by councils, many are starting to adopt a ‘BI approach’ to understanding their financial position and improving decision-making. Councils can benefit from a BI approach that is tailored to their specific challenges and priorities to support performance monitoring, decision-making, and service delivery to the community.

Short version

Recently, I was talking with a colleague about the financial information they were using to understand the impact of rate capping on the financial sustainability and resilience of their council. This led us to discuss what kind of business intelligence councils need.

Business intelligence, or BI, is defined in the image above. In the private sector, BI is widely accepted and standardised, and there are consultants who provide these services to companies. Companies know what decisions they need to make and that the data to support those decisions is available, they just need it to be discovered, collated, and analysed. However, in the council sector, access to data and data collection is typically driven by performance reporting requirements, rather than a the need for improved data in decision-making.

Businesses use BI for various purposes, including decision-making, performance monitoring, trend analysis, data-driven planning, competitive advantage, and fraud detection. Councils, on the other hand, may have different priorities and challenges. While competitiveness may not be a high priority, customer satisfaction and loyalty can still have a significant impact on the council. The recent financial crunch due to rate capping and high inflation has prompted some councils to start using BI to understand their financial position over time.

Therefore, it’s beneficial for councils to adopt a BI approach that incorporates their specific challenges and priorities to support decision-making and performance monitoring. This can include data analysis, performance monitoring, requirements gathering, process improvement, and budgeting and financial analysis. The goal of BI in local government is to improve decision-making, increase efficiency and effectiveness, and enhance the delivery of services to the community.

Keep going if you are interested in a more detailed discussion.

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237 Di necessità virtù – ‘Need gives rise to virtue.’

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?

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233 – My experience of management thinking in local government – Part 1: The formative years.

1000 words  (9 minutes reading time)                                      by Lancing Farrell

management experience pt 1

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 Principle as 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

232 – Coronavirus and local government – Financial Impact

1400 words  (reading time 11 minutes)                                                          by Lancing Farrell

Coronavirus financial impact

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.

What have councils been doing and what do they need to consider doing? Continue reading

208 – Improving service operations. Implement with motivational interviewing.

Posted by Colin Weatherby                                                                               500 words

innovation diffusion

Image

Earlier posts have described how to improve service operations by developing a service action plan and redesigning services. This post looks at how to implement a redesigned service. You may have noticed that not everyone is excited by the prospect of change.

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