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

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180 – Long Read: Managers as designers in local government.

Posted by Lancing Farrell                                                                              300 words

design thinking wordle

This is a long read compilation of the series of posts on the manager as designer in local government. For those who prefer to get the whole story in one go, here it is.

Some years ago I read a book called ‘Managers as Designers in the Public Services’ by David Wastell (Professor of Information Systems at Nottingham University Business School). It made a lasting impression on me. It is a book worth reading for its treatment of systems thinking in public service management.

More recently, I read two articles from the September 2015 issue of Harvard Business Review; ‘Design Thinking Comes of Age’ by Jon Kolko and ‘Design for Action’ by Tim Brown and Roger Martin. Each article extends the idea of the manager as designer with specific application to improve corporate processes and culture.

Jon Kolko discusses the application of design to the way people work. He says that people need help to make sense out of the complexity that exists in their interactions with technologies and complex systems, and that design-thinking can make this ‘simple, intuitive and pleasurable’.

“ … design thinking principles have the potential to be … powerful when applied to managing the intangible challenges involved in getting people to engage with and adapt innovative new ideas and experiences.”

The principles he is referring to are empathy with users, the discipline of prototyping and tolerance of failure.

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. The focus of their article is the ‘intervention’ required for stakeholders to accept a new design artefact – whether ‘product, user experience, strategy or complex system’.

They argue that the design of the ‘intervention’ (i.e. the way a new product or service is introduced to users and its integration into the status quo) is even more critical to success than the design of the product or service itself.

In effect, there are two parallel design processes; the artefact (i.e. a new service) and the intervention for its implementation (i.e. the change management).

So, how is this all relevant to local government? Read on …

168 – A series: Managers as designers in local government. Part 1.

Posted by Lancing Farrell                                                                              800 words

empathy hand holding

This is the first in a series of four posts on managers as designers in local government. It might seem like an esoteric topic and hardly relevant, however, every day managers make design decisions, often in ignorance. There is now a body of work on how managers can use design-thinking to improve the customer experience and organisational decision making. I challenge you to say it is irrelevant to your council.

Some years ago I read a book called ‘Managers as Designers in the Public Services’ by David Wastell (Professor of Information Systems at Nottingham University Business School). It made a lasting impression on me. Continue reading

126 – ‘A new theory of value creation for local government’. Do we need one? Part 1 – Strategy.

Posted by Lancing Farrell                                                                              850 words

value diagram shaded

This is the first post in a series  exploring the relationship between business strategy, the business model and operations strategy. It is an attempt to pick up on the ideas in Colin Weatherby’s previous post discussing Henry Mintzberg’s ideas about different models for government organisations. Hopefully the series of posts will make my case for a local government theory of value creation.

I will begin with business strategy. To set the scene, I have chosen the following quotations from management consultant and academic David Maister  to highlight the strategy problem for local government.

“A strategy is not just choosing a target market, but is about actually designing an operation that will consistently deliver the superior client benefits you claim to provide.

However, each decision you make to be more effective at delivering the preferences of those you target will (inevitable, inescapably, unavoidably) make you less attractive to clients or market segments that look for different benefits.

You could try to design your operations to meet a wide variety of preferences and needs, serving each client or customer group differently, according to their individual wishes.

Your market appeal will then come down to ‘tell us what you want us to do for you and we’ll do that. We’ll do something different for other people tomorrow!’

The very essence of having a strategy is being selective about choosing the criteria on which a firm wishes to compete, and then being creative and disciplined in designing an operation that is finely tuned to deliver those particular virtues.

An operation designed to provide the highest quality is unlikely to be the one that achieves the lowest cost, and one that can respond to a wide variety of customized requests will be unlikely to provide fast response and turnaround. Any business that tried to deliver all four virtues of quality, cost, variety and speed would be doomed to failure.”

Maister may not have had local government in mind when he wrote this piece, but he provides an insight into the challenges in determining what provides value to people receiving services. He calls it ‘superior client benefits’. In the public service context, academic Mark H. Moore has called it public value. It is the same idea 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

61 – Public value gap analysis. Some actions.

Posted by Colin Weatherby                                                                         280 words

gaps

I posted on a tool that can help to identify gaps in public value creation. This post briefly suggests some actions for each gap.

The first gap between actual performance and operating capacity, or potential performance, is best addressed though organisational processes to improve productivity. Recognising the gap is important and then it is in the hands of the organisation to justify its performance or improve it. Utilising all available operating capacity efficiently is the responsibility of organisational management.

Gap 2 requires something new to happen. It isn’t simply a matter of being more efficient and productive. Continue reading