46 – Labor’s rate cap to hurt services and infrastructure, ratings agency warns’. The Age, 27 February 2015.

Posted by Colin Weatherby                                                         900 words

 slices of cake
Image from http://www.that-is-good-crap.com

This article follows an earlier piece in The Age,  ‘Plan to cap council rates at inflation could lead to service cuts and job losses in Victoria’ on 23 February 2015. Both articles are about the planned legislation in Victoria to restrict councils to rate increases at or below the Consumer Price Index from 2016 unless they seek an exemption from the Essential Service Commission. Some councils have already started to cut jobs to reduce expenditure ahead of rate capping. Others are forecasting cuts to their services and reduced maintenance or renewal of community infrastructure.

This is occurring at the same time that the State government is shifting more costs onto councils and national grants to councils are being frozen. I have previously posted on rate capping (see here , here and here). As you can imagine, rate capping is dominating talk within local government circles. Continue reading →

45 – Does your Executive suffer from altitude sickness?

Posted by Whistler                                                                400 words

jet pack

A colleague has recently started reporting to a Group Manager who is new to local government. Her observations about the workings of local government provide an insight into our behaviour that we either no longer notice or just accept. This post discusses the observations made of Executive budget deliberations.

Over several days her Executive considered the budget prepared by the organisation and they deliberated over the ‘business as usual’ budget and new initiative bids. In this time the discussion alternated between the high level and the detail. The way she described it, the Executive would say that they needed to be strategic and take a ‘helicopter view’, but each time they attempted to do so they felt discomfort at the ‘altitude’reached and choked. They would then dive straight back down into the details of the matter where they would then spend 10 or 15 minutes going over the minutiae before reminding themselves of the need to deal with matters strategically. They then headed back to higher altitude but once there the altitude sickness resumed and they would dive back to the detail. As I heard the story I imagined them each strapped to a Jetpack.

Over successive issues, the available time frittered away and a series of small decisions were made about the numerous budget bids, resulting in a draft budget that lacked any overall cohesion or strategy linking it to the big picture or the long term. Why did this happen?

After talking to others who have worked in local government for a long time, the process described so colourfully is the same process witnessed annually. Every manager has seen it. Despite their best efforts, the Executive frequently fail to take the high level, big picture, long-term view required. I think this is because they are not confident about what the big issues really are or how they should be addressed. In addition, they lack trust in managers to understand the issues.  Managers and the Executive don’t share the same experiences of working in the organisation. This is evident in culture survey results. The Executive also overestimate the currency and accuracy of their knowledge of operations. This leads them to think they are capable of dealing effectively with the detail.

Low altitude can also be a safe place for some members of Executives.

 

44 – The Executive. What exactly is its role?

Posted by Colin Weatherby                                                                                         700 words

This seems to be a common question. You frequently hear people saying, ‘that decision will need to go to the Executive’, or ‘don’t do that until you have been to Exec’. If asked, the people saying this often can’t say why they have offered this advice and reviewing the terms of reference for the Executive will usually reveal that it is not a decision making body. It is individual members who have the authority to make decisions. So, what is its role? Continue reading →

43 – Developing a dashboard for performance measurement. A case study.

Posted by Colin Weatherby                                                                         1000 words

mini dashboard

I was recently asked to create a dashboard for my unit with the intention that it function like the dashboard on my car (no this is not my car). This is to be done in the absence of an organisational dashboard or scorecard or performance reporting system. There have been a few posts on this topic by Lancing Farrell (here and here) and this post discusses the application of some of the theory.

I started by listing all of the current measures that are in place from external and internal sources of accountability. This included legislation, sector-wide improvement programs, customer satisfaction surveys, occupational health and safety accreditation audits, internal audit programs, culture surveys, organisational policies, and financial reporting. Some of these measures are applied continuously, some are annual and others occur periodically. All of them have some organisational or public reporting of performance. This list was very much a list of things that other people think it is important to measure about the performance of the department. For whatever reason.

Then I made a list of all of the things that I think it is important to measure to know work is being done properly. Continue reading →

41 – ‘Where does the customer fit into a service operation?’ A brief discussion of the work of Richard B. Chase.

Posted by Lancing Farrell                                                                                                     1200 words

In 1978 Richard B. Chase published his paper Where does the customer fit into a service operation? John Seddon says this article began the separation of front and back office operations; something that he believes has created many problems in public sector service delivery today. Maybe he is right. But when you read the article, what Chase is advocating makes sense and I can’t help thinking that it isn’t necessarily a bad idea, rather it is an idea that has been used badly.

Chase is an operations manager. By 1978 he had already co-authored a popular operations management text. He starts his paper stating that a manager needs to understand the ‘operating characteristics that set one service system apart from another’ in order to make improvements. Continue reading →

40 – Unskilled, unaware, or both? The Dunning–Kruger effect at work.

Posted by Colin Weatherby                                                                                         800 words

One of my favourite sayings is that ‘anything is possible when you don’t know what you are talking about’. I have often wondered why I feel the need to use it so often at work. After a colleague sent me link on the Dunning-Kruger effect I am starting to understand why.

The Dunning–Kruger effect is named after David Dunning and Justin Kruger of Cornell University. They published ‘Unskilled and Unaware of It: How difficulties in Recognising One’s Own Incompetence Lead to Inflated Self-Assessments’ in 1999. The title gives you a good idea about the contents. The focus of the paper is;

We argue that when people are incompetent in the strategies they adopt to achieve success and satisfaction, they suffer a dual burden: Not only do they reach erroneous conclusions and make unfortunate choices, but their incompetence robs them of the ability to realise it.

Continue reading →

38 – Applying the public value scorecard in local government services. Part 1.

Posted by Lancing Farrell                                                                                              700 words

There have been a number of posts on public value (use the theme ‘public value’ to find them).  The idea that is is important and how it relates to private value has been discussed.  This post looks at how public value can be measured using the Public Value Scorecard. 

According to Mark H. Moore, public managers can improve the performance of public organisations by committing to the discipline of a public value ‘bottom line’. In the private sector, the ‘bottom line’ is a compelling and effective business concept. This post discusses the practical application of Moore’s public value scorecard in local government. Continue reading →

35 – Accountability in local government. Who are we really accountable to and why does it matter?

Posted by Lancing Farrell                                                                                              650 words

The demands for accountability in local government are continuous. The challenge is that they come from many different places and focus on different aspects of performance.   Sometimes they create conflicts. For example, strict adherence to procurement policies can remove the flexibility required to respond quickly and meet complex community needs. But it keeps the Audit Committee happy. A community interest group gains political support for a project that hasn’t been included in the budget. But the councillor and their constituents are happy. I am sure you can think of other examples. 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.

23 – Is local government a country song?

I have heard people say that if local government was a song it would be a country song. I guess they mean it would be a tale of woe, the classic country song about losing your land, your partner, your friends and then your dog. It is tragic and suggests that local government is a victim of its circumstances.

It is an interesting observation. At a recent ‘future of the local government’ conference, discussion was dominated by the limited ability for councils to increase rates, cost-shifting from higher levels of government, and ever increasing community demands. It is a grim tale. Despite these realities, I think it is too easy to blame our circumstances, limit our expectations and play the victim.

I would prefer to work in a different musical genre altogether. Take opera for instance. Despite story lines that are similarly tragic, there is a worldliness, grandeur and determination in the lives of the characters. They have a sense of hope for the future. Opera has a majesty that suits my career ambitions.

If there is a link to a country song, as someone with a passing interest in country music (yes, both types), I figure that Melinda Schneider captures the essence of local government with her lyric ‘we’re going in the same direction in a million different ways’ (Big World, Small World). I think these words describe the work of many people in local government, trying hard and having to make it up as they go along in the absence of an organisational ability to determine a set of priorities and coordinate action to achieve them. It is not a tragedy. But it needs to change.

Posted by Whistler

http://www.countrymusicchannel.com.au/lyrics/melinda-schneider/big-world-small-world-lyrics-15773648.aspx