280 – Reframing the challenge to councils

2000 words (20 minutes reading time) by Lancing Farrell

Introduction

Is the challenge that councils face insufficient revenue to cover costs? Or is it that they are providing services outside their remit? Or is it waste and inefficiency in their operations? Is it all of the above? And, if it is, where do you start to address it?

When you look at the different things councils are doing to respond to the rate cap – arguing for its removal or modification to enable higher rate increases, cutting services and service levels, shaving 10% off every budget to force savings, or implementing an ‘efficiency dividend’ through successive budgets – you could be forgiven for wondering if councils are trying to solve the same problem.

Having a common view of the problem to be solved is a start to genuine and effective action across the sector.

I have been thinking about a simple re-framing of the problem councils need to solve in a rate capped environment.

So, what is the problem?

Continue reading

279 – ‘Guerilla volunteering’ – a response to risk aversion and red tape?

1200 words (12 minutes reading) by Colin Weatherby

A recent article in the Melbourne Age by Alan Attwood, entitled ‘Red tape’s strangling volunteering – creating more casualties than you’d think’, is timely in drawing attention to a growing problem in Victorian local government. Risk aversion and red tape are making it difficult for people to volunteer in their own community or even get a job at their council. This focus on playing safe seems to be counterproductive.

As Sidney Dekker and Georgina Poole point out succinctly in ‘Random Noise – Measuring Your Company’s Safety Performance‘, most organisations don’t exist simply to be safe; they exist to provide a product or service. It is unfortunate that many councils seem to be starting to think otherwise. Dekker uses the term ‘safety theatre’ to describe the superficial and often misleading efforts that organisations put into safety. I can’t help thinking that some of the risk management red tape making volunteering more difficult fits that description.

Continue reading

278 Some new thinking on value

400 words (4 minutes reading) by Carole Parkinson

I am always on the lookout for new and useful thinking. Sometimes the new thinking is not that new – it is old thinking in a new context. This is why a post on a new Substack caught my attention. It is a novel application of some proven thinking about value .

Continue reading

277 – Mediocrity at work.

1000 words (11 minutes reading time) by Gordon Brittas

I seldom put pen to paper, however, reading the viewpoints of former colleagues has stimulated my thinking. Tim Whistler and Carole Parkinson’s posts on model collapse have started me thinking they are onto something. Is model collapse just mediocrity at work? Perhaps mediocrity is a product of model collapse? Or could it be a cause? So many questions.

As an expert in mediocrity, I must say that I know it when I see it.

Mediocrity

A recent paper by Tobias Jones entitled ‘Italy’s strangely seductive culture of mediocrity’, struck a chord with me. Jones cites a paper by the Oxford criminologist Diego Gambetta and Paris-based philosopher Gloria Origgi, ‘The LL game: The curious preference for low quality and its norms’, which discusses why so many academic conferences in Italy go seriously awry in a ‘cocktail of confusion, sloppiness, and broken promises’. It suggests that most Italians in academia prefer sloppiness to perfectionism.

Continue reading

276 – Synchronicity, systems, facts and accidents…

1300 words (14 minutes reading time) by Lancing Farrell

I have been doing some diverse reading recently, some of it inspired by world events. Serendipitously, it has led me to an insight that I thought I would share.

Why we’re Polarized

The first book is Ezra Klein’s international bestseller ‘Why we’re Polarized’. He says the book is an examination of the American political system and that it is unlike most books on American politics, which he says tend to focus on the individuals.

“Let me be clear from the beginning: This is not a book about people. This is a book about systems.”

Ezra Klein, ‘Why we’re Polarized’

Klein is an American and says two decades of reporting on American politics has shown that it has predictable cycles and patterns that repeat. He sets out to explain the failure of the political system, which he says occurs despite it being ‘full of rational actors making rational decisions given the incentives they face’. He describes it as a collection of functional parts that combine into a dysfunctional whole.

Continue reading

275 – My council’s value for money statement

680 words (7 minutes reading time) by Tim Whistler

Some of the posts on this site really test your patience. There can be just too much idealistic thinking.

Personally, the idea of a Value for Money Statement seems to me to be the latest invention of councils trying to find a new way to pretend they are doing something that they are not. The name says it all. If this is not an example of John Gall’s ‘operational fallacy’, I don’t know what is. Along with Financial Sustainability Strategies, it is a distraction from the serious work councils need to do to fundamentally change what they are doing.

Anyway, it started me thinking about my local council and what they could write about their way of providing me with value for money – assuming they were prepared to be honest. Here is my attempt to describe what I can discern about the principles behind how they actually think they provide value for money:

Continue reading

274 – The Wigan Deal and Value for Money

1500 words (17 minutes reading time) by Carole Parkinson

The Wigan Value for Money Statement

Lancing Farrell’s post on Wigan and the Deal 2030 explains how a council has successfully decided to make a radical change in the relationship with its community in response to austerity measures imposed by central government. By all accounts the Deal 2030 has been successful in reducing the resources needed for the council to deliver its services, in large part by reducing demand for those services by helping people to do things for themselves or to access services provided by the VCFSE (voluntary, community, faith and social enterprise) and private sectors.

It is 10 years since the Deal 2030 was launched. As with any big organisational change, it is hard to evaluate its success from the outside. To help us, there have been several reviews of the Deal 2030 since it was implemented, including the King’s Fund (2019), the Centre for Policy Impact (2019), and a Corporate Peer Challenge (2017). All have reported favourably on both the success in implementing actions in the Deal, and the impact of those actions on the Wigan community. Therefore, it was with some interest that I saw Wigan Council has recently released a Value for Money Statement.

Perhaps everything is not what it appears?

Continue reading

273 – Can councils learn from the local football club?

1300 words (14 minutes reading time) by Colin Weatherby

 Great Coach 2.0

Some time ago I wrote a post about council performance measurement being like a dashboard on a car. I used the image of a dashboard like the one on my 1962 Morris Mini to keep it very simple. I noted that the car dashboard had evolved over many years and been refined to be a distillation of information to the minimum required for a driver to be in control of their car. It didn’t tell the driver where they were going or if they were on track to get there. I was hoping it would be an example councils could follow. Lately, I have turned my attention to sport.

Australian rules football and statistics

It is football season in Australia, and I was reading about how footy clubs, professional and amateur, are using data and statistics to measure and improve their performance. It started me thinking. Every council in Australia must have a local footy club. Perhaps they can learn something from them?

Continue reading

271 – Victorian government enquiry into local government

1000 words (11 minutes reading time) by Colin Weatherby

The Victorian state government’s Legislative Council Economy and Infrastructure Committee has started an enquiry in to the funding and service delivery of local government in the state, which will look at:

  • The effects of cost shifting from the state and federal governments to local councils in an examination of vertical and horizontal fiscal imbalances.
  • Whether local councils are adequately delivering on their core service delivery objectives.
  • The overall revenue structure of local government.
  • Whether the existing revenue structure is sustainable and appropriate or if alternative models of funding would be more sustainable and appropriate.
  • Any other related matters.

This is a timely review and comes at the same time that the national government is also holding an enquiry into the financial sustainability of local government. It seems that the other levels of government have become concerned about whether councils are able to meet community needs and expectations now and in the future.

Unsurprisingly, the Local Government Finance Professionals (FinPro) have made a submission to the Victorian enquiry . They make a number of interesting points in their submission.

Continue reading

270 – Local government and Financial Sustainability Strategies

2850 words (30 minutes reading time) by Colin Weatherby

Councils across Australia have recently started developing financial sustainability strategies. This sounds like a good idea, but is it?  Are the goals in these strategies realistic and achievable? Do they seriously address fundamental issues affecting sustainability or are they just another distraction? The latest fad?

To kick this post off, let’s look at 3 councils, Logan Council in Queensland, Central Coast Council in New South Wales, and Yarra City Council in Victoria.

It is a long post but worth the effort!

Financial sustainability and corporate planning

Given the parlous condition of council finances and the existential threat from rate capping in NSW and Victoria, it is interesting to see where the financial sustainability strategy fits into organisational planning for councils.

Continue reading