202 – Essay No. 6 – Local government and public value.

Posted by Lancing Farrell                                                                                              6500 words

bureacracy

Value is often mentioned in local government when talking about services, particularly ‘best value’. However, there is often inadequate understanding about the different types of value, the difference between private and public value, and how value is actually created and managed by an organisation. Sometimes there is the assumption that because we have been busy, that we must have created something worthwhile.

This essay brings together ideas from several earlier posts and is constructed around four hypotheses:

  1. That there are different types of value created by organisations and for local government public value is the most important.
  2. Public value is the primary value that must be understood and delivered if councils are to deliver what is expected by the community.
  3. Value-led management is a way of managing that could transform local government and make it more responsive and effective in serving the community.
  4. There are simple and effective tools that can be used to improve value creation in local government.

Hypothesis 1: There are different types of value and public value is the most important for local government.

Private value

In a metaphorical sense the value that you add is what you ‘bring to the party’. This is determined by what other people think you have contributed and by thinking about what the party would have been like if you hadn’t arrived.

There are different types of value and it is worth briefly considering the difference between private value and public value. Public value is the collective view of the public or community about what they regard as valuable, especially with regard to the use of public money and authority. Moore describes this as occurring along a spectrum from value that is obtained from public services that is essentially private value, similar to the concept of customer value, to public value that reflects the aggregate value expectations of citizens.

Moore degrees of publicness

At the private value end of the spectrum, the focus is on the individual service recipient and delivering value that satisfies their expectations.   At the public value end of the continuum, the focus is on achieving the social outcomes sought by the community or public. Continue reading

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194 – Essay No. 4 – Local government and customer service.

Posted by Lancing Farrell                                                                              4500 words

basil fawlty

Customer service is, and should be, a major concern for local government. After all, councils are service organisations. Sometimes there is confusion about exactly what customer service means, how it relates to public service delivery, and what aspects of service are most important to get right in local government.

This essay focuses on three hypotheses:

  1. That ‘customers’ in local government are different to the customers described in most customer service literature and encountered by most service organisations.
  2. There are six main opportunities for local government to improve service to customers.
  3. There are simple tools available that can assist councils in getting service delivery and customer service right.

Continue reading

188 – The council value proposition – what could it be?

Posted by Colin Weatherby                                                                                         1100 words

Kano model and brand

There have been a number of posts on value. In the context of imminent rate capping in Victoria it is timely to revisit some concepts of value relevant to local government. It is easy to overlook the fact that public service expenditure is about creating public value.  Especially when revenues are being constrained and thinking is turning towards making savings and cutting costs.

In the diagram above I have used the Kano model from Wikipedia and positioned three key council services that many regard as ‘core’ services – the provision of public parks, waste collection from residential properties, and provision of roads. Each has been placed in a different place on the diagram and I will explain why. Continue reading

173 – A series: Managers as designers in local government. Part 4.

Posted by Lancing Farrell                                                                                              1000 words

Kano model Wikipedia

Kano’s model

This is the last post in this series. It looks at how design can be used for new services and their implementation in local government.

Roger Martin and Tim Brown provide a related but different view of design in organisations. They see it as helping stakeholders and organisations work better together as a system. This is a systems-thinking approach as much as it involves design-thinking.

They describe the evolution of use of design in organisations as the ‘classic path of intellectual process’ as each design process is more sophisticated than the one before it because it was enabled by learning from that preceding stage. As designers have become more skilled in applying design to shape user experiences of products, they have turned to ‘user interfaces’ and other experiences. Continue reading

73 – ‘Social media changes the rules of engagement’ , The Age, 4 April 2015

Posted by Colin Weatherby                                                                         730 words

multi channel

This article contains a healthy warning for local government about the need to design services with the customer in mind, and to look ‘outwards-in’. There have been a number of previous posts on services (see here, here, here and here). Disgruntled customers of councils are just as likely to use social media to vent their anger and concerns.

“Customers want influence over the contents of what they’re buying; they customise the muesli they order online; stream entertainment that is tailored to their interests, and pitch ideas to software companies as they develop new products.”

In this environment, councils that just continue to offer the same old services, or who alter services in ways that make them less responsive to customers, or more responsive but less reliable, are likely to frustrate people using those services. Continue reading