213 – What insight does the capability review of one council and the sacking of another give you into local government culture in Victoria?

Posted by Colin Weatherby                                                                         1500 words

insight light

Two interesting reports have been published in Victoria in the last 12 months – the Organisational Capability Review of Melbourne City Council in May 2015 and the more recent Commission of Inquiry Report into Greater Geelong City Council, released in March 2016. Each report provides an insight into local government culture.

As someone who has worked at three Victorian councils in the last 10 years, and who corresponds regularly with people working at another half a dozen councils, the insight is not surprising.  It reveals a deep malaise in the sector that has root causes in the political system, the ways our leaders are appointed, and general organisational leadership capability.

To begin, what are the discoveries in these two reviews of major Victorian councils? Continue reading

196 – Making local government organisations simpler to manage – why is it necessary?

Posted by Colin Weatherby                                                                         1700 word

complexity knotted rope

I was at a meeting recently where the team charged with conducting an organisational self assessment (OSA) and preparing an organisational improvement plan (OIP) using the Australian Business Excellence Framework were evaluating progress. It was an interesting meeting of a diverse group of people. By the end of the meeting we had reached a common conclusion – a council organisation is complex and systems need to be disentangled and simplified so that it can be managed effectively.

The OIP actions were developed independently from the outcomes of the OSA. It was only after 12 months of effort to implement the actions that the high level of congruence between them became apparent. Very few actions relating to core organisational systems could be implemented without impacting on each other – they overlapped. Attempting to deal with them one by one wasn’t going to work but joining them all together would create a large and very complicated action.

There is an earlier post on complexity which describes some of the sources of complexity in local government. It helps to know what you are dealing with but that doesn’t make it any easier. This was reinforced by reading former Victorian Premier John Brumby’s excellent memoir ‘The Long Haul – Lessons from Public Life’. In reflecting on the last four years in which he has viewed politics as an outsider, Brumby comments on the lack of trust that ‘permeates almost everything we see and hear about politics today’.

He believes that part of restoring trust and credibility in politics is to give the public a better understanding of the complexity of the issues.

“When I first sat in the federal parliament, an older and wiser member told me: ‘For every complex problem there is a simple solution … and it’s always wrong’. We live in a world where the questions are becoming more complex, while the public appetite is for ever simpler answers: the kind that can be summed up in 140 characters or less”

My question is, do you think that people want to be bothered by the complexity involved in getting what they want through political processes? Continue reading

172 – Fear transmission. What happens when managers’ contracts start to not be renewed?

Posted by Colin Weatherby                                                         630 words

reject

I was talking to a colleague who has worked at a couple of councils where managers have not had their contracts renewed. She was describing the impact it had on other managers. I was interested in why it is happening, how it has happened and exactly what impact it has had.  Since that discussion I have heard of many more managers who have not had their contracts renewed.  It is almost as if the revolutionisation process has reached a new layer of the organisation.

The first manager was not re-appointed almost a year out from the expiration of their contract. Continue reading

170 – ‘The Utopia of Rules – On Technology, Stupidity, and the Secret Joys of Bureaucracy’ by David Graber.

Posted by Whistler                                                                          620 words

Utopia of Rules cover

Every so often I come across an interesting book that challenges orthodox thinking. This is one of those books. Published earlier this year to a mixed reception, as a bureaucrat I found it rewarding reading. It was also reassuring – maybe we aren’t the half-wit brethren of private sector management. Perhaps the private sector is a poor emulator of public sector bureaucracy?

There are too many interesting and thought-provoking passages in the various essays making up the book to mention them all. I have reproduced some favourites below.

“The rise of the modern corporation, in the late nineteenth century, was largely seen as a matter of applying modern, bureaucratic techniques to the private sector – and these techniques were assumed to be required, when operating on a large scale, because they were more efficient than the networks of personal or informal connections that had dominated the world of small family firms.” (p.11)

This is an intriguing thought when you consider Peter F. Drucker’s observation that by the 1970’s public sector organisations were unsuccessfully copying private sector business management ideas. Continue reading

161- Decision making: Dealing with indecisiveness.

Posted by Lancing Farrell                                                                                  1100 words

dilbert indecision

This is the fifth post in a series. Some organisations, like some people, just can’t make up their minds. Ram Charan believes that leaders can eradicate indecision by changing the tone and content of the everyday conversations occurring throughout the organisation. This is difficult in local government where CEO’s and top management are often insecure and sensitive to challenge.

Breaking a culture of indecision will require leaders to challenge assumptions, share information, and bring disagreement to the surface. Charan offers the following example to highlight the signs of indecision:

A presentation is made to a meeting about a proposed project. There is silence until the CEO speaks and asks questions that show they have taken a position on the matter and made up their mind. Then others speak up to agree with the CEO, keeping their comments positive.

It appears that everyone supports the project. But, some are concerned and keeping their reservations to themselves. Over the next few months the project is slowly strangled to death.

It is not clear who killed it but it is clear that the true sentiment in the room after the presentation was the opposite of the apparent consensus.

The key issue is that the true sentiment is the opposite of the apparent consensus. Charan says that ‘silent lies and lack of closure’ can lead to a false decision that is undone by unspoken factors and inaction.

How often does this happen in local government? Continue reading

151 – If local government was a car, what sort of car would it be? Part 5– the Tesla Model S.

Posted by Whistler                                                                                          700words

tesla

This is the final post in a series of five. The first review was for the Hyundai Excel Sprint council, the second was the Leyland P76 council, the third was the Volvo 240 series council, and the fourth was the Alfa Romeo 1750 GT council.

The last choice is the Tesla Model S. Futuristic, sustainable and unattainable.   This is really the only electric car that anyone talks about as if they would like to own one. With accelerations times equal to a Holden muscle car, or any other sporty fuel guzzler, they are attractive to the environmentalist car enthusiast. Put on your hessian pants, get in and floor it! Continue reading

150 – ‘Muzzle on council rates’. The Age, 31 July 2015.

Posted by Colin Weatherby                                                                         800 words

muzzle

The pressure is on. The Essential Services Commission has released its draft report on the proposed rate capping for councils in Victoria. It has a number of interesting elements and some significant implications for local government. The report sets out which revenues are proposed to be capped, how the rate cap could be calculated, the current forecast for rate increases to 2018/19 under the proposed system (see below), and the impact of the application of an ‘efficiency factor’ to provide an incentive to pursue efficiencies.

The article in The Age describes the major impacts.

“Victoria’s 79 councils had an average rate increase of 3.8 per cent this year. Several councils increased their rates by more than 6 per cent.

The draft report includes indicative forecasts for an annual rate cap of 3.05 per cent in 2016-17, dropping to 2.85 per cent in 2017-18 and 2.8 per cent in 2018-19.

In addition to the cap, the review calls for a new “efficiency” deduction to be introduced from 2017-18 where councils would need to reduce their rates bill by 0.05 per cent because of efficiencies (increasing by 0.05 percentage points each year). Jason Dowling, The Age, 31 July 2015.

So, what are the likely implications for councils?

There have been some previous posts on this topic (see  Council rates capped from mid-2016’, The Age, 21 January 2015 and Labor’s rate cap to hurt services and infrastructure, ratings agency warns’, The Age, 27 February 2015.). That thinking still stands. Councils will have to say ‘no’ louder and more often. Difficult choices will need to be made about what services to offer or not offer, and what the levels of service will be. Some people will no longer be eligible for services as councils start to distinguish more strongly between those who are or are not customers. Expect much more customer segmentation for services delivery. All of this will be difficult for our politicians who succeed by pleasing their constituents.

In many ways this is the easy bit Continue reading

146 – If local government was a car, what sort of car would it be? Part 4 – the Alfa Romeo 1750 GT.

Posted by Whistler                                                                                          600 words

alfa romeo

This is the fourth post in a series of five. The first review was for the Hyundai Excel Sprint council, the second was the Leyland P76, the third was the Volvo 240 series.

The fourth possibility is the Alfa Romeo 1750 GT. Stylish and fancy (and often seen with the bonnet up).   Plenty of glamour here for the ‘Alfisti’. The choice of Romeos worldwide, it was a real eye catcher that brought lots of attention. They came in bright and classical Italian automotive colours and have a great exhaust note. You wouldn’t own one to cart around your family or as your main transport to work (you needed a Hyundai or Volvo for that) but there were many weekend warriors with a 1750 in the garage. Continue reading

100 – ‘We’ll get the managers to sign off’. The second most common local government phrase.

Posted by Whistler                                                                                          500 words

sign here

I guess this is the second most common phrase and it links to Colin Weatherby’s post about managers spending their time scraping burnt toast. One of the dysfunctions common in local government is the assignment of responsibility to managers for authorising everything by everyone changing a system or process, usually to eliminate their own risk.

I suppose some examples are in order. Advertising for a vacant job. An authorisation will already have been obtained to fill the position but the manager must sign to authorise the placement of the advertisement. Why? I guess that one day someone must have put in an advertisement for a position that wasn’t approved. But is this an effective or necessary control? Has the exception made the rule?

What about putting a new supplier onto the council’s system? Continue reading

86 – Ten sayings that define local government culture.

Posted by Whistler                                                                          970 words

grass dreaming

In local government we talk a lot about culture and forces that shape it. Often these forces are evident in the things that people say each day. This post explores ten of the sayings heard daily in local government and attempts to translate them.

  1. ‘We have set a goal on this issue, it is an aspirational goal’.

This type of goal has no basis in reality. It is an idea of what might be good if it happened. At best it is a ‘guesstimate’. No one knows whether or not it is feasible. Mostly, it is just frustrating because someone powerful has effectively avoided making a decision or creating conflict by setting a goal that everyone can agree to because it means nothing. An aspirational goal makes ‘motherhood’ statement seem like a specific and readily measurable output. I think we do it because it gets us out of a difficult situation at the time or it makes us feel as though we are setting meaningful goals under difficult circumstances.

  1. ‘Never mind if you can’t get it done today, there is always tomorrow’.

This statement is often heard when planned work has not been completed. It reflects the low value placed on time in local government. When available capacity doesn’t easily match demand, jobs are just deferred. It takes the pressure off managers to be organised and ensure that operations are well managed. The customer just has to wait. Given they have no other choice of supplier, why not?

  1. ‘Let’s just park that’.

This is what happens when you can’t find the answer to the question the meeting was called to answer in the first place. This regularly happens because meetings are seen as potential circuit breakers for intractable organisational problems. The cross-functional decision that no one has the right to make. The escalated decision that no one seems to have the responsibility to make. Whatever. Parking it is a nice way to say we will just wait and see how long it takes before it either resolves itself or explodes.

  1. ‘This issue needs some ‘blue sky thinking’.

This is how we describe the generation of visionary ideas that don’t always have a practical application. Some people call it dreaming. It usually happens when past approaches have not worked and there is pressure to be ‘innovative’ and come up with a ‘creative’ solution – dangerous territory for all involved. Whilst people in local government like to say they are ‘thinking outside the box’, or thinking ‘laterally’, in reality we really just like to think the way we always have (but be seen to be doing otherwise). Hence, the popularity of ‘blue sky’ thinking – it is all care, no responsibility.

  1. ‘If it is not broken, don’t fix it’

This is a favourite. It is premised on the idea that things break suddenly and without any warning. No one could have anticipated it or prevented it happening.   The idea that it might be ‘breaking’ doesn’t enter into it. We are not looking for signs that something isn’t working and might fail. No. Everything that goes wrong in local government couldn’t have been foreseen and anything that seems to be working should be left alone. Makes sense doesn’t it?

  1. ‘This will have to go upstairs; you’ll need to run that past (write name of senior manager)’.

I quite like this one. It implies that we are getting on with business by sending something to someone more important to make a decision. The fact that you might already have the decision rights, and they really don’t have time to make the decision, is irrelevant. It is going upstairs to more senior people. That has to be better.

  1. ‘Let’s look for the low hanging fruit’.

Usually, this means just choose the simplest option to accomplish a task. Who can argue with that? It has a resemblance to efficiency. If the outcome is not what you expected or need, at least you have acted. It is related to another old local government saying, frequently heard in depots, – ‘just keep moving; you don’t have to do anything, just don’t stop’. Anyway, the cockatoos always get the high fruit.

  1. ‘We need to get a helicopter view of this’.

This implies that a higher altitude view will yield some information not currently available from the ground. There is really no arguing with this idea, but in practice, the altitude sickness that seems to ensue once senior management leaves the ground limits the potential. You often hear about executives seeking a helicopter view but seldom see any benefit from it.

  1. ‘We really need a burning platform if change is going to happen’.

I don’t think people have arson in mind when they voice this view. It is more metaphorical. It really means that they need a crisis to justify making sensible management decisions – someone has to set fire to something before we have a reason to fix it (enter rate capping).   Without an imminent crisis, the Executive can’t work out how to explain to people that they need to change and put customer needs ahead of their own. I get it.

  1. ‘You need to run that past the Admiral’.

This refers to the senior manager nicknamed the ‘Admiral’ because they regularly say that they will have to ‘take it on board’. It could as easily be the ‘Window’ or the ‘Mirror’ – they need to look into it before they can make a decision on what to do. The ‘Grasshopper’ is another nickname – this is the manager who needs to find out about something before deciding (a reference to disciple in the television series Kung Fu). Everyone in local government has worked with an Admiral, a Mirror or a Grasshopper. It really just reflects the difficulty managers have in making a decision quickly. I wonder why?

Have you got others?  Contribute them via a comment.