153 – Decision making: Some challenges for local government.

Posted by Lancing Farrell                                                                              580 words

face butt towel

This is the third post in a series.  Sometimes making decisions is difficult and a guide is helpful. Local government has some particular types of decision making that frequently present challenge. These decisions need to involve the right people at the right level in the organisation. Often they cut across functional areas.

Two of the key challenges for local government in becoming a decision-driven organisation are whether or not to centralise decision making and how to ensure cross-functional cooperation in decision making. I will start with centralisation. Continue reading

149 – Decision making: Making good decisions quickly in local government.

Posted by Lancing Farrell                                                                              650 words

RAPID decision image

This is the second post in a series. Have you ever felt that there were too many opinions being aired and not enough decisions being made?  Making good decisions quickly is the hallmark of a high performing organisation. This includes major strategic decisions and operating decisions. It is important to know which decisions are really matter and then ensure that they don’t stall because decision making roles and responsibilities are not clear. This is the first challenge for local government.

Good decision makers think through who should recommend a particular direction, who needs to agree, who should have input, who has ultimate responsibility for making the decision, and who is accountable for follow through, and then they set a process up to make decisions.

Good decision processes then become routine and are known to everyone, which provides better coordination and faster response times. Continue reading

95 – Making high performance happen through value-led management.

Posted by Lancing Farrell                                                                              850 words

tug of war

Some time ago I posted on Frank Ostroff and the barriers that he believes prevent change in government . Ostroff makes a lot of sense – formulate a vision, be mindful of your present situation, seek the support of stakeholders, set a clear path, understand the complexity in what you are doing, and hold people accountable. However, I have found that sometimes you need a simple tool to take those ideas into practice. I was once asked by a CEO.

‘How do you get people to fundamentally re-think what they are doing instead of making incremental improvements to optimise what they are currently doing?

Maybe this is the answer. Continue reading

77 – Operational excellence in local government. Does it matter?

Posted by Lancing Farrell                                                                        600 words

operational capability

In a recent discussion with a colleague she mentioned that in her previous employment outside local government they had set organisational performance goals for leadership, finances, relationships, safety and operational excellence.   Each area of performance was rated equally. It started me thinking about how little you hear about operational excellence in local government. Is that because it doesn’t matter?

I am sure that operational performance matters. Whether councils want to be excellent or not, I am less sure. I think that the reason it is seldom discussed is that few people have a real understanding of operations management or what excellence would look like or how to achieve it. Continue reading

58 – Performance appraisal in local government 4/4. What else could we do?

Posted by Lancing Farrell                                                                              650 words

optimus prime transformer

This is the last post in this series. It is also where things start to get interesting. There are alternatives to performance appraisal the way we have always done it. The difficulty is that most are quite different to the current approach and pursuing them will involve the risks that always accompany change. Are we up for it?

We could just stop using performance appraisals. As Peter R. Scholtes writes in The Leaders Handbook, this would require us to start thinking differently. In essence, this would involve adopting a ‘systems thinking’ approach to managing the organisation. This is likely to require systems to support employee development and promotion, providing feedback for improvement, determining training needs, and performance managing the poor performers.

Scholtes proposes what he calls ‘debundling’ of performance appraisal to focus on each benefit that the performance appraisal system supposedly provides. Continue reading

56 – Local government performance appraisal 3/4. What can you do in response to the issues?

Posted by Lancing Farrell                                                                                              530 words

apple and orange

Choices are necessary regarding the role of performance appraisal and how it will be done. I don’t think anyone thinks that performance should not be measured. It is a matter of how you do it.

Peter R. Scholtes points out the fundamental choice facing every organisation very clearly in The Leaders Handbook. What is most important to your organisation – controlling the behaviour of people to the satisfaction of management, or understanding, controlling and improving processes to benefit customers? Continue reading

52 – Local government performance appraisal 1/4. What are the issues? (or 5 reasons it doesn’t work)

Posted by Lancing Farrell                                                                             700 words

performance - rowing

This is the first in a series of four posts on performance appraisal. The central idea is that current performance appraisal systems are not effective.

To begin with, the annual performance appraisal process (sometimes called the performance development plan (PDP) or staff development scheme (SDS)) is often not carried out in local government. When it is, people have usually been compelled to do so or they are simply ‘ticking the boxes’ and being compliant. I have often thought that this is important evidence that the process is not helpful. People ‘vote with their feet’ – if they thought that performance appraisal was useful and that it added value, they would be doing it.

Continue reading

51 – An ABEF OSA. What is it and do you need one?

Posted by Colin Weatherby                                                               900 words

puzzled

The Australian Business Excellence Framework (ABEF) provides a systematic way to think about your organisation and its improvement. It identifies seven categories of organisational activity that are systematically analysed when you conduct an organisational self assessment (OSA) to determine the approach, deployment, results and improvement. This examination of approach, deployment, results and improvement is called the ADRI cycle and it is similar to PDCA and other improvement cycles except that it focuses on outcomes not actions. So, that is what it is.

Do you need one? (And, more importantly, what will you get if you have one).

Continue reading

33 – Developing an organisational performance measurement system. Some ideas.

Posted by Lancing Farrell                                                                                     820 words

I have been thumbing through ‘Improving Performance – How to Manage the White Space on the Organisation Chart’ by Geary A. Rummler and Alan P. Brache, in particular the chapter about performance measurement. In it they describe measurement is the single greatest determinant of an organisation’s effectiveness as a system, and as the primary tool for ‘communicating direction, establishing accountability, defining roles, allocating resources, monitoring/evaluating performance, and taking improvement action’.

I haven’t seen a local government that has actively used performance measurement this way. Instead, it tends to be driven by external accountability requirements. We use the performance measurement that we do to convince others that we are doing what we should. Continue reading

26 – The first 25 posts. What have you missed?

Posted by Lancing Farrell                                                                                              1100 words

Writers have posted 25 times since the start of the year. A number of themes and ideas have been discussed. This post provides a brief overview.

The goals are set out in post 1 – track current issues and discuss the issues that are ‘everlasting, widespread and insoluble’ (using the least amount of words). A range of issues have since been covered from the daily media, day to day work life, and the things people often talk about but seldom resolve.

Post 2 and 5 discuss local government services – what we do and how we can define it. The conclusion is that local government needs to provide services that fit within legislated requirements, are responsive to broader community needs and expectations, and meet the individual purpose for each person receiving a service. Each service can be defined as a cross-functional process or value chain.

In post 3 the complexity evident in local government is discussed, including the involvement of customers in service delivery, the variability they introduce, the difficulty measuring service quality or setting service goals and measures, and the impossibility of separating service delivery from politics.

The impact of training on performance is discussed in post 4 in response to media criticism of the Australian government public service for its spending on training. The post suggests that understanding, documenting and improving processes would yield more benefit than providing more training for most councils.

In post 6 the differences between customers, clients, citizens, residents and ratepayers are discussed. Understanding which role someone has chosen to take in an interaction is important in determining the value they expect. This can be useful in differentiating between public and private value expectations.

Post 7 looks at public service job cutting and the link to productivity. Some key messages from the Centre for Policy Development report False Economies: Unpacking public sector efficiencies are discussed. The post identifies the importance of defining public value so that any changes to resource levels can be made in the knowledge of the impact they will have on the value produced.

Post 8 presents an imaginary script for an episode of Gordon Ramsay’s ‘Kitchen Nightmare’ in which he assesses the performance of local government as if it were a restaurant.   Hopefully it is both entertaining and thought provoking. What would Gordon Ramsay say?

In post 9 some emerging characteristics of people and councils are discussed. Obligatory empiricism, oblivious narcissism, and consensual lying are put forward as reasons why councils always seem to learn everything from scratch, leaders set out to meet their own needs first, and why people tell others what they want to hear for the sake of convenience.

Post 10 draws a ‘line in the sand’ with a discussion of the changes that have impacted in Victorian local government since the 1990’s. Part history lesson and part explanation of the present, the post concludes that the most influential change has been to the tenure of the CEO and their increased dependence on the goodwill of their council for survival .

Planning in local government gets a thorough airing in posts 11, 12, 18, 19, and 20. In posts 11 and 12 the current organisational planning processes is critiqued. Posts 18 and 19 suggest ways to better integrate planning. Post 20 discusses the role of the Council Plan.  All posts provide commentary on how to develop plans that are realistic, achievable and focused on delivering the value expected by the community. Constraints identified include the need to work within legislated requirements and the need for leadership to really understand ‘the business’ to be able to implement a ‘top down’ and ‘bottom up’ planning process.

In post 13 the role of policies and strategies is discussed. Are they becoming convenient but ineffective solutions to difficult problems, devices to avoid doing something that needs to be done, or just a way to be seen to be doing something?

Post 14 is an attempt to explain why councils stick with conventional organisational structures and avoid dealing with cross-functional processes; why systems seek to control risk and increase compliance without regard for producing public value; and why council culture encourages people to avoid making decisions. The discussion centres on what an organisational culture survey, an ABEF organisational self-assessment, and the Executive’s risk appetite can reveal.

Four books that should be read by every leader in local government are discussed in posts 15 and 17. The books are Recognising Public Value by Mark H. Moore, The Whitehall Effect by John Seddon, Improving Performance – How to Manage the White Space on the Organisation Chart by Geary A. Rummler and Alan P. Brache, and The Leaders Handbook by Peter R. Scholtes. Each book has a different focus and there is a mixture of public sector and business reading.

Post 16 discusses the rate capping proposed for local government in Victoria. The history of rate capping in Victoria and the long-term effects of it that are apparent in NSW provide a backdrop to a discussion about what councils can do in response. This post covers the potential for shared services and the potential impact on capital and operating budget cuts.

In post 21 the way councillors feel about their role is discussed. Do they feel inundated and manipulated or respected and influential? The difficulties they face as volunteers and in becoming skilled in their role, working together in an adversarial system, and coping with very demanding workloads, are covered. The message is stop complaining and support them more effectively.

What does a high performance local government organisation (HPLOGO) look like? In post 22 a methodology is proposed to define and create a HPLOGO. Based on the work of Andre de Waal, a set of characteristics of a HPLOGO are described (as actions) and prioritised.

Post 23 is a bit tongue in cheek. It is an attempt to pick up on the ‘chip on the shoulder’ prevalent in some parts of local government. Is local government a plaintive country tune or a majestic aria?

In post 24 an article by Frank Ostroff from Harvard Business Review (Change Management in Government) is discussed in relation to making high performance happen. He describes four unique barriers to change in the public service related to leader skills, leader tenure, rules that create inflexibility, and stakeholder resistance to reform.

Finally, post 25 looks at local government budgeting and how it is focussed on the past and has difficulty coping with improvement and innovation.   The need to balance investment in compliance with improving customer service and developing new services is discussed with reference to Christopher Stone’s work on public sector efficiency.