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2012 Future of LG Summit
2012 FOLG Will Be Different
• 2005-11: exploring/defining first principles– ‘We can be heroes just for one day’
• 2012: the ‘DO’ Success train is leaving the station - all aboard for the journey of a lifetime
We Need to Make Time to Think
The ProblemCouncils LG Sector
Vision/game plan
✓ x
Structure ✓ x
Strategy ✓ x
Why Are We Here?• The Future of LG is important to us• We all work in LG but who is working on LG?• What is our vision for the future of LG? What
are we trying to achieve?• The world is in a period of rapid, fundamental
change: is both an opportunity and a threat for LG: silos and monopolies are collapsing
• Others lack confidence in the ability of local government to manage itself, to think strategically
• Mrs Jones husband died…………..
Example Application Map 2008 Internet
Harmony(Family Day
Care)
Valuation Database
AutoCAD(CAD)
MYOB
Titan Security(BuildingAccess)
Loan Register
Phone Extension
Listing
Fire Infringement
Notices
Disability Parking
Coach Tours
Car Parking Appraisals
Key Register
Food Stall Permits
Emergency Response Register
Building Maintenance
Risk Register
Who’s In
Waste Management
WorksPermits
Sextants Register
(Yea Cemetery)
Stems Septic Tank Database
Roadside Mapping &
Species
Moloney Asset Management
Planning Permits &
Compliance
Planning Permit Conditions Monitoring
Routine Maintenance
Rubbish Bins
GravelRe-Sheeting
ProgramKey Register
Roads to Recovery
Road Register
Bridge Inspection
System
Extra Works Major Bridge
Works
Linemarking Pavement
Renewal Program
Drainage Renewals & Upgrades
Footpath & Kerb Renewal
Programs
Sundry Debtors
Fuel Usage
Footpath Inspections
Playground Inspections
Staff Training
Approved Sub Contractor Register
Works Schedules
Open Space Register
Financial Statements
Loan Repayments
Home Maintenance
Model Accounts
Lease Register
FringeBenefits
Investments Register
Wages Budgeting
Greenhouse Gas
Calculations
Terminations
Trust Register
Maternity Leave
Calculations
Back Pay Calculations
Payroll Spreadsheets
Work CoverSuperannuation
Rate Certificate Register
Septic Tank Register
Infromax(Building
Maintenance)
Septic Tanks
IRIS(Maternity & Child
Healthcare)
Crystal Reports
Image Library(Mapped
Drive)
Vision Super(Superannuation)
External Org.
ATO
External Org.
Manual Exportfrom Payroll
Corporate System
Accounts Receivable
Records Register
Building Control
Payroll
Property Management
System
Rating
Accounts Payable
Statutory Planning
Financials
Harmony(KL Early
Learning Centre)
Sharikat Khoo(Home &
Community Care)
BIS(Mgt. Reporting & Budgeting)
Animal Control
I-Services(CRM)
Health Admin.
§ Planning§ Building Control§ Animal Control§ Health§ Rates & Property§ Asset Register§ Names & Addresses§ CRM
Employee Kiosk &
Online Leave
Contract Register
Manual File Upload toProperty & Rating
Sesame(Valuations)External App.
Mobile Phone Usage
Land Line Usage
ManualExport / Import
ManualExport / Import
Manual File Transfer
BRSS Telstra Electronic Billing
External App.
Manual Exportfrom Payroll
Asset Register
Trust Register
Bank Reconciliation
Receipting
Estimates
Inventory Control
Hazard & Injury Register
Committees of Management
Certificates
Plant
Bank(Bank Online)
External Org.
Playgrounds
Trees
Bridges
Toilets
Manual LayerUpdate Nightly
Storm Water Data
MapInfo / Easimaps
(GIS)
State Government(Map Data)External Org.
Scheme Amendments
Asset System
Road Asyst(Road
Maintenance)Capital Editor
Footpaths GIS
Manual File Transfer
Manual File Transfer
Credit Cards
Monthly ManualUpload
WebFleet(Fleet
Management)
Australian Child Immunisation
Register
Internet(WebComm
Hosted Externally)
Business Directory
Community Directory
Secure Pay
Intranet(WebComm
Hosted Internally)
EventsBooking Calendar
Where Does LG Want to Be in 2013/14?
Option 1 Every Council ‘doing its own thing’ but the LG sector has little control over its own destiny: recipient of change
Option 2 Councils supporting an agreed sector-wide ’game plan’ leading change
Option 3 Other
Why Is It So?LG has too much to do and too little to do it with.
Why?• The scope of LG activities continues to expand
– Rising community expectations/challenges/issues– Federal and State Govts keep pushing things ‘south’– LG continues to accept more responsibilities (often
unfunded): why?– LG is caught between a rock and a hard place
• Hawker report > cost shifting > IGA > more cost shifting > 30-40% councils unsustainable (PWC)
We Are All Too Busy (Rats on the
Wheel)
• All major decisions about LG are taken by other levels of government. Why?
• LG is the most complex service business in the world: it is too busy with hundreds of daily issues. The urgent crowds out the important
• LG is very good at reacting to daily issues • Perception: LG sector lacks strategic change
capability: is focussed on regulation/control• They keep on doing it ‘to’ us
Massive Change Is Upon Us
• Period of escalating change, chaos, unpredictability
• World is becoming smaller, faster and overwhelmingly more complex
• Before: economies, sectors and issues were simpler and more self-contained
• Today: complexity and interdependence of issues • World in being transformed by growth,
globalisation and technology• Digital government is coming: citizen-centric• New public policy environment
New Public Policy Environment
• Globalisation: pervasive global problems: poverty, obesity, climate change, global finances, peak oil
• All characterised by growing complexity and inter-dependence – Healthcare (from treatment to well-being)– Education (from school to LLL)– Environment (now sustainability)
• Government can’t solve these problems by itself• Government does not work very well now:
hierarchy and silos rather than collaboration and networking– In the Information Age, the public sector is fractured
BUT not addressing local community priorities
Government Can’t Solve it
• Poverty reduction: housing, food security, health care, economic inclusion, family support, self-esteem, employment
• Governments, community organisations, private sector, families, individuals all have a role
• Poverty strategy requires alignment or co-ordination. But government policy is still made and delivered in silos
Collaboration Is Now Key • Collaboration is now essential for
good governance: fast, open government
• Needs to be top down and bottom up• Alignment is essential for
effectiveness and efficiency• Solutions: open government, public
engagement, community partnerships• LG can play a key role in empowering
communities: provide access to information, broker strategic alliances
Reform of Public Services • Co-design: ‘Active engagement of users in the
design of products and services that affect them’• Can transform service delivery strategies• DHS-MAV co-design pilot (2011/12): 9 locations, 5
one day workshops over 4 months • Human services: issues-solutions-action plans• At the table (25 people): 3 levels of government,
providers, community groups, the community• Which group was the most influential in driving
changed outcomes? Which group was the ‘glue’? Which group had the most surprises?
Citizen Control (Democracy)
Is Coming Towards You• Top down: decisions made behind closed doors• Bottom up: the voice of the community has
influence• The internet changes everything• New Digital Government: networking replaces
hierarchy. Knowledge access and transfer are key
• Most public sector information originates in local government, but…………
Opportunity Knocks for LG
………………….. but we need a game plan
How Important Is LG in Australia?
It’s big business
• Annual expenditure: $29 billion • Employment: 190,000• Assets $300 billion
• Mining industry employment: 190,000• Steel industry employment: 91,000• Automotive manufacturing employment:
45,000• Steel industry turnover: $29 billion
Productivity?• LG spending as % of total public sector spending• 1995/6: 12%• 2010/11: 6%
• Scope of LG activities: +20% (Hawker)• Scope of Federal & State Govt activities:
Reduced
The Future of LG to DateLot of talking > agreed that:
• LG is about (vision):– facilitating the building of strong and successful
communities (not just RRR)– improving community well-being and social
capital– place making – making sure citizens feel engaged and valued
The Future of LG to Date• The role of LG is to promote community
governance and advocacy (LG brokers agreed outcomes via strategic alliances but should not be trying to do everything)– LG provides or facilitates or supports whatever
brings about the best outcome for the community: the Councillors role is to govern
• If LG wants to gain some control over its own destiny it needs to embrace/drive change and reform (until now all major decisions about LG taken by others)
FOLG to Date
• Vision for LG: stronger communities (and more capable local government)
Number of Councils in Australia
• 1910: 1067• 2011: 565• (Business lobby: 200)
LG Reform ActivityQld 2008 Imposed amalgamation
NT 2008 Supported amalgamation but rushed implementation
Perth Councils 2012
Amalgamation review in process by WA Govt
Tasmania 2011
Southern Tasmania Councils report tabled. Sewerage & water body amalgamations
NSW 2012 Destination 2036
NSW: Destination 2036• Aim: how LG would modernise, reform and
improve: to eliminate ‘haves’ and ‘have nots’ in community services
• Action plan (June 2012): strategic directions– Efficient and effective service delivery– Quality governance and leadership in LG– Financial sustainability in LG– Appropriate, flexible structural models: greater
cooperation between Councils: share skills, technology, ideas and resources
– Strong relationships within LGIndependent Panel re boundary change: report by July
2013
Change• LG is most likely going to change more in
the next 5-10 years than in the past 50 years.
• The only question is who will be in the driver’s seat. In 4 years time Victoria will have Councillors in place for 2020. The majority of these Councillors will be in place in 2012.
• LG benchmarked against banks: same back end
Gospel: ‘Do More With Less’
• Amalgamation is the easy ‘reform’: what is the position of LG? Have we done the hard yards?
• What is our game plan?• What are the benefits of Total Place?• What are the benefits of co-design?• Who will take the lead in this discussion?• Who will have evidence to put on the
table?
The ‘UK’ Future Is Coming to a Council Near You… but
more slowly• Less dollars, lower taxes• Cost shifting/rising community expectations• Citizens wanting more control/influence• Skills loss/shortages: knowledge loss• Growing unfunded infrastructure renewal
gap ($1.2 billion pa on local roads alone)• In 10 years time, the whole Council budget
will be needed for adult social care >A perfect storm!
Imperative for LGimprove collaboration
Local Government only has strength when it acts as a sector
Before we act we need a game plan
Let’s Embed Collaboration
Collaboration improves ability of Councils to transform service delivery: no sense having 560 separate solutions/systems to address common issues. The collective capability of Councils far outweighs what any single Council can achieve alone. Collaboration is the key to joined-up service and a seamless experience for citizens
Collaboration
Councils are leaders in regional Australia: they need to drive innovation and the knowledge base of their regions: otherwise there will be more ‘have nots’. Council collaboration is as much about the economic development of regions as it is about Council efficiency.
10 Things About LG• LG does great things but hides its light under a
bushel• LG is judged as a sector, not on the performance of
individual Councils• LG greatest strength is its connection to the
community. Knowing what is important to communities is ‘gold’ (holy grail)
• The need for LG to speak for ‘local’ has never been greater, as State and Federal Governments focus on regional
• Other levels of government want to fund communities, not local government
10 Things About LG• LG only has strength as a sector• LG can have its cake and eat it too:
preserve its democratic base and change the way it does business (collaborate across boundaries)
• Inconsistency of standards across Councils will result in a slow death. LG often frustrates business, who mark the performance of LG, and lobby….
10 Things About LG
• If LG can demonstrate it is effective and efficient, external pressure is reduced (eg. NSW case study)
Drivers for change • Be local leaders or be left behind• Technology empowering citizens• LG is the ‘glue’ for joined up
government• LG needs to demonstrate it can do
more with less• Large % of LG workforce will retire in
the next 10 years: knowledge will go with them
Key Questions
• LG is a monopoly provider. What is the driver for change and reform? How does LG measure its performance? Can LG lead change?
Good Practice in LG in 2015
>Alignment: Community priorities are documented & influence Council planning/outcomes and regional planning
>Alignment: Councils in regional groups identify key regional priorities and influence regional planning partners (State Govt etc)
Good Practice in LG in 2015
Knowledge is a Council’s most important asset (people come and go): needs managed on a Council-wide basis, and be accessible by citizens (Obama edict)
Efficiency/collaboration: Councils are able to demonstrate they are doing more with less (metrics)
Improved G-C Alignment: LG Key
Federal Govt
State & Territory Govts
Local Government
Community priorities
R
Policy/resources
Critical relationship: determines the FOLG: listen to lead
Influence
Possible
• From: – State & Federal Governments tell LG
• To:– Community tells LG and State &
Federal Governments want to partner with LG to deliver outcomes
Positioning of LG• ‘Go to’ group for anything community• Facilitates/brokers/advocates outcomes on
community priorities • Strengthens communities (learning through doing)• Adds public value:
– LG collaborates across boundaries: If LG had interoperable systems and common data standards: ....emergency management, building and planning, maternal and child health, asset management etc
– Community access to LG information
• Improved community-public sector alignment• Employer of choice: it’s about the values, not $
FOLG Outcomes 1. LG facilitates the building of stronger and
more successful local communities(citizen-centric LG)>confirm role of LG (what are the governance
needs of this community?) > Strengthen the voice of the community in Council> community-documented priorities (attract $)> Council supports the community in planning for
different futures (eg. Transition EDAPs)> Engagement of community in
co-design/production
FOLG Outcomes2. Improved service delivery
Transition to common back of house (%) Common standards/specs Regional collaboration strategies Continuous improvement and innovation Performance measurement
FOLG Outcomes
3. LG creates value for communities • Community access to information• Economic development
opportunities• Strategic alliances
FOLG Outcomes
4. LG ring-fences scope of activity
Finds a way to implement the IGA and make it work (core and non-core?)
Outcome of FOLG Outcomes
• LG in leadership position• Less incentive to amalgamate• Respect for LG (‘they’ve got their act
together’)• One of the most powerful lobby groups in
the country• ‘Go to’ group for anything community• LG employer of choice for Gen Y• Sustainable local communities
FOLG Summit Process
• Day 1: time to think • Day 2: what to do, how to do it
FOLG post-Summit Process
• Enough talking: time for the train to leave the station
• Involve all Councils in the FOLG process
> assemble the game plan• External Stakeholder Reference Group• FOLG Support Resources Panel• FOLG Facilitation: CT Management
Group
Post-Summit Process• FOLG Leadership Group
– Create space for strategic conversations– incubate and spread ideas for a better future
• Future Council Groups• Knowledge and Information Management • Community Planning/engagement/co-design • Infrastructure Management
• Collaboration between Councils (regional) – Workshop process to identify key opportunities
Post-summit Process
• Build strategic change capability: Future Solutions workshops (change readiness)
• Council Plan Process Review: how can it be improved?
> No cost to Councils
Outcomes • 2012: Councils sign up for the Success train
– Council Plan workshops
• 2012/13: The train has left the station– FOLG Leadership Group initial output– Future Council Groups have produced ‘The Way
Forward’ strategies (eg. Knowledge etc)– Regional Collaboration Plans in place and being
implemented – Strategic Change Capability commenced at
Councils
• 2013/14: Agreed game plan for the sector signed off (Roadmap): > convergence process
Where Does LG Want to Be in 2013/14?
Option 1 Every Council ‘doing its own thing’ but the LG sector has little control over its own destiny: recipient of change
Option 2 Councils supporting an agreed sector-wide ’game plan’ leading change
Option 3 Other