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