216 – Some further thoughts on systems thinking.

Posted by Lancing Farrell                                                                              1600 words

Rodin's The Thinker

There have been a number of posts on systems thinking examining both its theoretical underpinnings and practical application. I recently had reason to consider how systems thinking, or lack thereof, affects organisations from day to day, and the ways that systems thinking can shape or influence organisational culture.

This was prompted by an article by Brian Martens on ‘the impact of leadership in applying systems thinking to organisations’. It is a thoughtful explanation of his research and thinking.

“Systems thinking is a natural way to look at the world and all the relationships and interconnections that are involved in its functioning.”

I think it is the only way to think about leadership or management in councils because connections matter so much in delivering services that meet the expectations of recipients and because resources are scarce and must be shared whenever possible. Continue reading

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211 – Unpredictability, interdependence, complexity and chaos – why councils need to adopt the Third Principle: optimisation.

Posted by Lancing Farrell                                                                                              1200 words

the third principle

I recently rediscovered a book that I bought 17 years ago when it was first published. It is one of those useful management books that is an absorbing read when you buy it, and then it quietly sits on your shelf waiting for the day you really need it. It is now a book for the times with rate capping coming into Victorian local government.

Neville Lake’s central idea is that management practice has three fundamental organising principles – effectiveness, efficiency and optimisation. He believes that an organisation can be both effective and efficient but be sub-optimised. This leads to only 80% of its potential being realised.

The other 20% is trapped in processes that don’t work, management models that don’t deliver, and interactions with customers that fail to deliver expected value.

Having worked in local government for 30 years, I have to agree that we are sub-optimised organisations. Continue reading

204 – Rate capping: an update.

Posted by Whistler                                                                         900 words

service brainstorming 2

It has been some time since discussions commenced regarding the imposition of a rate cap on local government in Victoria. There have been a few earlier posts on the topic (see here, here, here, here and here). The rate cap has now been set and the process for any council seeking an exemption from the rate cap has been communicated. The Essential Services Commission has been effectively positioned as a regulator for local government. So what have councils been doing?

I would say not much. The requirement that the community support must be demonstrated if seeking an exemption, coupled with 2016 being an election year, has stifled activity across the sector. According to The Age newspaper 21 councils have indicated they may apply for an exemption. Some councils, including Melbourne City Council, have attempted to demonstrate community support for their rating strategy, which could support an application for an exemption from the cap.

The results from the few people’s panels held have been interesting but not unexpected. The community expects the council to use current resources well before asking for more. They want to see value for money before they will support asking people to pay more tax. Fair enough. Continue reading

200 – Using a local government service catalogue.

Posted by Colin Weatherby                                                                                                                         700 words

menu

Some time ago I discussed how to create a local government service catalogue. The process was simple and effective in describing services in customers’ terms and linking services to cost centres in the budget and those responsible for the cost centres. You might ask, what else needs to be done? Well, for the service catalogue to be really useful it needs to be linked to the organisational planning processes. Here’s how that can be done.

To begin, it is a good idea to test the service catalogue with the community. I have heard of a council using it to lead discussion with ‘peoples’ panels’ about the services delivered, how rates can best be spent, and whether or not the council should seek an exemption from the municipal rate cap being imposed in Victoria. If the community can relate to the services described in the catalogue and understand what they involve, it is likely that you have got the catalogue right. It doesn’t mean that it can’t be further improved, but it is a good start.

The next step is to link the service catalogue to the traditional ‘business unit by business unit’ planning that occurs in local government. Continue reading

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

175 – In-vehicle GPS – Part 1: Why every council should have it.

Posted by Lancing Farrell                                                                                              1100 words

in vehicle gps

I remember looking at in-vehicle monitoring devices in the 1990’s. The technology was basic and there was no 4G network. Since then councils have flirted with in-vehicle GPS. As far as I know, no council in Victoria has installed it throughout their vehicle fleet. This is partially explained by the industrial relations implications (see the next post) but I think it is really explained by the lack of focus on customer service and productivity that pervades the sector. Rate capping will change that.  Most councils wouldn’t even be aware of the potential benefits from the technology. Hence this post.

So, what are the features and benefits of in-vehicle GPS that councils should be thinking about? Continue reading

152 – Rate capping – an inconvenient fact.

Posted by Whistler                                                                          220 words

ESC table 2.3 forecast rate cap

Image source

Lancing Farrell has made some good points in her post about rate capping. I think the ESC has been optimistic. The impact of application of the CPI and WPI and the Efficiency Factor is likely to be more significant for many councils, particularly large urban councils.

The main reason I say this is that the average of 40 % of expenditure on labour costs doesn’t reflect the reality of many councils. For many it is 55 to 60%. This means that a significant part of their labour costs will be adjusted for CPI, not the higher WPI. I have reproduced the table from Lancing Farrell’s post above.

I have produced my own table comparing a council that has 60% labour costs. Continue reading