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

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210 – Is innovation over-rated in local government?

Posted by Colin Weatherby                                                         1100 words

patched road

I was recently reading an article in Aeon magazine entitled ‘Hail the maintainers’. The central idea is that ‘capitalism excels at innovation but is failing at maintenance, and for most lives it is maintenance that matters more’. I think you could replace ‘capitalism’ with ‘local government’, although I am not sure that we are excelling. We are certainly preoccupied with trying to be innovative (or at least being seen to be innovative).

The authors, Lee Vinsell and Andrew Russell, believe that innovation is the dominant ideology of our era. Pursuing innovation has inspired both technologists and capitalists. It has also attracted critics.

“What happens after innovation, they argue, is more important. Maintenance and repair, the building of infrastructures, the mundane labour that goes into sustaining functioning and efficient infrastructures, simply has more impact on people’s daily lives that the vast majority of technological innovations. “

The idea that local government must be more innovative reflects the willing (and often mindless) adoption of populist ideas from the private sector by local government.   After all, being innovative is sexier than doing what we have always done but making sure we do it well. 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