188 – The council value proposition – what could it be?

Posted by Colin Weatherby                                                                                         1100 words

Kano model and brand

There have been a number of posts on value. In the context of imminent rate capping in Victoria it is timely to revisit some concepts of value relevant to local government. It is easy to overlook the fact that public service expenditure is about creating public value.  Especially when revenues are being constrained and thinking is turning towards making savings and cutting costs.

In the diagram above I have used the Kano model from Wikipedia and positioned three key council services that many regard as ‘core’ services – the provision of public parks, waste collection from residential properties, and provision of roads. Each has been placed in a different place on the diagram and I will explain why. Continue reading

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180 – Long Read: Managers as designers in local government.

Posted by Lancing Farrell                                                                              300 words

design thinking wordle

This is a long read compilation of the series of posts on the manager as designer in local government. For those who prefer to get the whole story in one go, here it is.

Some years ago I read a book called ‘Managers as Designers in the Public Services’ by David Wastell (Professor of Information Systems at Nottingham University Business School). It made a lasting impression on me. It is a book worth reading for its treatment of systems thinking in public service management.

More recently, I read two articles from the September 2015 issue of Harvard Business Review; ‘Design Thinking Comes of Age’ by Jon Kolko and ‘Design for Action’ by Tim Brown and Roger Martin. Each article extends the idea of the manager as designer with specific application to improve corporate processes and culture.

Jon Kolko discusses the application of design to the way people work. He says that people need help to make sense out of the complexity that exists in their interactions with technologies and complex systems, and that design-thinking can make this ‘simple, intuitive and pleasurable’.

“ … design thinking principles have the potential to be … powerful when applied to managing the intangible challenges involved in getting people to engage with and adapt innovative new ideas and experiences.”

The principles he is referring to are empathy with users, the discipline of prototyping and tolerance of failure.

Roger Martin and Tim Brown provide a related but different view of design in organisations. They see it as helping stakeholders and organisations work better together as a system. The focus of their article is the ‘intervention’ required for stakeholders to accept a new design artefact – whether ‘product, user experience, strategy or complex system’.

They argue that the design of the ‘intervention’ (i.e. the way a new product or service is introduced to users and its integration into the status quo) is even more critical to success than the design of the product or service itself.

In effect, there are two parallel design processes; the artefact (i.e. a new service) and the intervention for its implementation (i.e. the change management).

So, how is this all relevant to local government? Read on …

173 – A series: Managers as designers in local government. Part 4.

Posted by Lancing Farrell                                                                                              1000 words

Kano model Wikipedia

Kano’s model

This is the last post in this series. It looks at how design can be used for new services and their implementation in local government.

Roger Martin and Tim Brown provide a related but different view of design in organisations. They see it as helping stakeholders and organisations work better together as a system. This is a systems-thinking approach as much as it involves design-thinking.

They describe the evolution of use of design in organisations as the ‘classic path of intellectual process’ as each design process is more sophisticated than the one before it because it was enabled by learning from that preceding stage. As designers have become more skilled in applying design to shape user experiences of products, they have turned to ‘user interfaces’ and other experiences. Continue reading

160 – Making a local government service catalogue. Part 2: What to do with it?

Posted by Colin Weatherby                                                                                      630 words

service category

In the first post I described a service catalogue and looked at where (and how) to start making one. This post discusses what to do next to refine the service catalogue and use it to improve organisational performance. I have no doubt that a service catalogue is essential to starting a discussion with the community about services required in a rate capped operating environment, however it should also drive continuous improvement by providing a focus for service reviews.

The ‘first cut’ service catalogue that defines services from the customer viewpoint and links that view to organisational structure, is really just the start.

Further analysis is required to determine the link between the service catalogue and organisational strategic plans (especially the council plan). This can be achieved by coding the spreadsheet of cost centres with the themes or key objectives or themes in the plans. This will allow further analysis by pivoting on different criteria. What is the link between council plan objectives, customer defined services and cost centres? 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

132 – ‘A new theory of value creation for local government’. Do we need one? Part 3 – operations strategy.

Posted by Lancing Farrell

Slack operations strategy

Image from Operations Management, 6th Edition, Slack, Chambers and Johnston.

In this third post in this series, I look at the concept of the operations strategy. Every organisation has one. Your organisation does, but do you know why or what it is? And how does it relate to the business model?

This series of posts is intended to make the case that local government needs a theory of value creation – a clear explanation of what local government does to create public value. That theory will require a reappraisal of the operations strategy and the role that operational capability can play in supporting the business model and strategy execution.

Hayes and Wheelwright describe operations strategy as guiding decisions about vertical integration (i.e. the extent to which the council owns the value chain), capacity planning (i.e. how variation in demands will be met), facilities planning (i.e. the facilities needed to deliver services), services technologies (e.g. information systems) and process technologies (e.g. batch or make-to-order).

The academics Nigel Slack, Stuart Chambers and Robert Johnston in their text Operations Management talk about strategy and the connection to operations Continue reading

127 – ‘A new theory of value creation for local government’. Do we need one? Part 2 – Business Model.

Posted by Lancing Farrell                                                                              750 words

walt disney theory of value creation

Image: ‘The greatest theory ever told’ – Walt Disney’s 1957 value creation map.

This is the second post in the series intended to make the case for a new theory of value creation for local government. The first post discussed business strategy. This post looks at the link between strategy and the business model.

Once the strategy has been determined, it leads directly to the selection of a business model that can deliver that strategy. I have chosen the following description of a business model from organisational theorist and academic David Teece to set the scene.

“Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs.

The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit.

It thus reflects management’s hypothesis about what customers want, how they want it, and how the enterprise can organize to best meet those needs, get paid for doing so, and make a profit.”

As with strategy decisions, the difficulties for local government are again apparent. Continue reading