223 – Risk management in local government

By Lancing Farrell                                                                                                  730 words

risk taking

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Is there a delegation for taking risks at your council? Does your council have a risk appetite? Are the strategic risks that have been identified appropriate? Are the operational risks relevant? Does the audit program decrease or increase risk?

These are questions that a colleague raised with me recently when trying to understand the way risks were managed at their council. I suggested they look at their risk management framework – how is risk assessed in terms of likelihood and consequence. This should explain the inherent risk, current risk rating, the target risk and rate the effectiveness of controls. It can make interesting reading.

Next, I suggested they look for their organisations lists of key risks – strategic and operational. These are usually in the risk register. This isn’t always easy to find. Someone in the risk department will have it. Most councils will have up to 8-12 strategic risks. There will be many more operational risks.

Councils are very risk aware. Some people describe it as risk aversion. I think this is driven by the multiple accountabilities that councils live with – the Minister for Local Government, the Ombudsman, the courts, the media and the community. Sometimes it is hard to know who is going to take issue with what you have done. Continue reading

218 – Requisite leadership, stratified systems theory and local government management.

By Colin Weatherby                                                                                              680 words

Jacques levels of work authority

Lancing Farrell posted an interesting piece using Elliott Jaques’ requisite organisation theory to explain the best use of Executive time. It prompted some related thinking on my part. Jaques has provided a significant body of knowledge that can be very useful for managers in bureaucracies and hierarchical organisations.

The idea that people naturally organise themselves into hierarchical, or stratified, managerial systems in organisations reflects the reality of local government.  This is reinforced by legislation that focuses accountability on top management.  They are held responsible for the work outputs of people in the organisation and this responsibility cascades downwards through the management hierarchy. Continue reading

217 – What should our Executives spend their time doing, and why don’t they?

By Lancing Farrell                                                                            1800 words

time

Image: http://content.wisestep.com/why-your-resume-should-be-one-page-good-reasons

This is the question that crossed my mind recently when discussing time management with a colleague who is part of an Executive team that is reviewing use of their time. They have engaged a consultant to work with them individually to understand how to best use their time. Like every Executive team, they always have more work to do than the time available to do it.

After keeping a time diary in 15 minute intervals for two days and coding up each activity according to musts, wants, work that should be delegated, and work that shouldn’t be getting done at all, it became apparent to my colleague that more efficient use could be made of available time but this wouldn’t solve the problem. Optimising use of time wouldn’t provide enough to do all the work. The nature of the workload needed to be examined.

In part this examination was prompted by the time management consultant suggesting that the time spent by my Executive colleague in meetings with direct reports could be reduced or the meetings held less often. In considering this idea, she realised that this was some of the most valuable time they spent each week. She also realised that (at the moment) she didn’t have a better use for that time. What could she do with the time that would be more valuable than influencing and helping her direct reports? This realisation started her thinking more broadly about the work she was doing.

This led her to re-examine Elliott Jaques’ work on requisite leadership. In particular, Jaques’ concept of time defining the degree of complexity in managerial leadership roles. The idea that every task has a target completion time and that the longer the time-span of discretion for tasks, the more complex the role, struck her as relevant in working out where she needed to spend her time and effort.

Jaques’ describes seven levels of organisational hierarchy, each with a different time-span of discretion ranging from 3 months to 50 years. He calls them requisite levels. Based on this, my colleague sketched out the relationship between Jaques’ theory and her work and time allocation challenge in the following table. Continue reading

164 – Who should push back with the councillors? The CEO, Directors or Managers?

Posted by Whistler                                                                                          600 words

chess

I think this is a good question and it is one that every manager will ask themselves at some point. It may take a bit of experience to ask it. Individual councillors regularly ask for the organisation to do things that are outside policy or they become conflicted. So who should be saying no?

In many councils there has been an organisational correction about the type of contact councillors can make with staff. Usually this happens after a councillor has attempted to influence a junior staff member to do something outside policy. When councillors complain about the staff member because they won’t do what they asked (or if the officer complains) the organisation reinforces the rule that councillors can only talk to senior officers – i.e. the CEO, Directors or Managers.

This partially solves the problem and often introduces new problems. Continue reading

145 – The deep web and local government recruitment.

Posted by Colin Weatherby                                                                                         1100 words

deep web

Local government executive recruitment is a game. Often recruitment is not genuinely based on competence and ability. In many cases, relationships are far more important. I have heard it described as the ‘deep web’ – what you see isn’t all there is. So, how does it work?

Councils recruiting a new CEO tend to go for ‘tried and true’ or ‘shiny and new’.  I think analysis will show an alternating pattern from one to another. It is almost as though councilors become bored with their CEO, or, more likely, the CEO refuses to do what they tell them to do. Once a CEO stands up and says ‘no’, they are likely to be on the way out.

Councilors know that they can demand that a CEO does what they want – whether or not it is in their or the community’s best interests. I think that once a council has dismissed a CEO and they have a ‘taste of blood’ they are more likely to do it again and a cycle of CEO non-reappointments and appointments begins (with all the disruption this brings).

When councils are recruiting a CEO, they rely on assistance from the recruiters – companies that specialise in helping councils to recruit executives. These companies can be highly influential. Continue reading