Where Does LG Want to Be in 2013/14?

Option 1 Option 2 Option 3 Every Council ‘doing its own thing’ but the LG sector has little control over its own destiny:

recipient of change

Councils supporting an agreed sector-wide ’game plan’

leading change

Other

• • • • • •

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…………..

Asset System

Road Asyst (Road Maintenance) Capital Editor Sesame (Valuations)

External App.

Example Application Map 2008 Vision Super

External Org.

Bank

External Org.

BIS (Mgt. Reporting & Budgeting) Credit Cards Harmony (KL Early Learning Centre)

Internet

Australian Child Immunisation Register Events Booking Calendar Secure Pay

External Org.

State (Map Data)

External Org.

Footpaths Manual Layer Update Nightly MapInfo / Easimaps (GIS) GIS Manual Export from Payroll Manual File Upload to Property & Rating Manual Export from Payroll § Planning § Building Control § Animal Control § Health § Rates & Property § Asset Register § Names & Addresses § CRM Monthly Manual Upload Manual File Transfer Trust Register

Corporate System

Statutory Planning Accounts Payable Financials Estimates Property Management System Records Register Accounts Receivable Manual File Transfer Committees of Management Rating Building Control Payroll Manual File Transfer Sharikat Khoo (Home & Community Care) Business Directory Internet (WebComm Hosted Externally) WebFleet (Fleet Management) Community Directory Intranet (WebComm Hosted Internally) AutoCAD (CAD) Crystal Reports Harmony (Family Day Care) MYOB Image Library (Mapped Drive) Septic Tanks Playgrounds Bridges Toilets Trees Amendments Data Inventory Control Certificates Health Admin.

Animal Control Employee Kiosk & Online Leave Asset Register I-Services (CRM) Contract Register Plant Hazard & Injury Register Receipting Bank Reconciliation Manual Export / Import Usage Manual Export / Import Usage BRSS Telstra Electronic Billing

External App.

Infromax (Building Maintenance) Titan Security (Building Access) IRIS (Maternity & Child Healthcare) Valuation Database Maintenance Debtors Wages Budgeting Building Maintenance Risk Register Waste Management Back Pay Calculations Renewals & Upgrades Fire Infringement Notices Fuel Usage Emergency Response Register Roadside Mapping & Species Food Stall Permits Sextants Register (Yea Cemetery) Who’s In Works Permits Inspection System Car Parking Disability Parking Extra Works Register Kerb Renewal Programs Gravel Re-Sheeting Program Key Register Inspections Greenhouse Gas Calculations Lease Register Loan Register Accounts Loan Repayments Management Works Register Payroll Spreadsheets Inspections Extension Listing Certificate Register Rubbish Bins Superannuation Work Cover Septic Tank Register Terminations Permits & Compliance Road Register Staff Training Trust Register Schedules Appraisals Key Register Stems Septic Tank Database Contractor Register Coach Tours Financial Statements Benefits Home Maintenance Maternity Leave Calculations Renewal Program Conditions Monitoring Roads to Recovery

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

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 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)

Qld 2008

LG Reform Activity

Imposed amalgamation NT 2008 Perth Councils 2012 Tasmania 2011 NSW 2012 Supported amalgamation but rushed implementation Amalgamation review in process by WA Govt Southern Tasmania Councils report tabled. Sewerage & water body amalgamations 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 LG Independent 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 Fewer dollars: State/Federal deficits Cost shifting/rising community expectations Citizens wanting more control/influence: social media Skills loss/shortages: knowledge loss Gen Y (‘digital youth’): no social networking = can’t work Over the next decade Victorian Councils are looking at: – $2.75 billion unfunded community infrastructure gap that will have significant impact on the level of services delivered – 60% of Councils have an underlying operating deficit: not easily turned around during the 10 year long term financial planning period. • • In 10 years time, the whole Council budget will probably be needed for adult social care Vendors still dictate LG system standards >A perfect storm!

Imperative for LG

 improve 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. NBN

requires LG collaboration (re-invent LG)

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 and sustaining current jobs as it is about Council efficiency – – Transaction processing centres Call centres – Etc

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 NBN: collaboration required 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

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)

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 Outcomes

2. 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 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

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

Can local government do more to be in control of its own destiny?

1. Yes 77% 2. No 5% 3. Partly 14% 4. Unsure 4%

Is local government doing all it can to demonstrate it is efficient and effective?

1. Yes 7% 2. No 82% 3. Unsure 11%

Does Local government require transformational change in the next 5 to 10 years?

1. Yes 67% 2. No 4% 3. Partly 25% 4. Unsure 4%

The sector can best drive change by working together?

1. Agree 89% 2. Disagree 2% 3. Unsure 9%

Do we need a sector-wide game plan for local government?

1. Yes 89% 2. No 11%

Would increased regional collaboration improve local government performance?

1. Yes 79% 2. No 5% 3. Unsure 16%

WBC STRATEGIC ALLLIANCE

WBC Accumulated Savings

4 500 000 4 000 000 3 500 000 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 0 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

What we have achieved?

• • • • • • 8 years as an Alliance with continuing strength and commitment Over $4 million in savings and efficiencies 55 collaborative projects completed Successful joint funding applications 2 new shared positions Joint tenders - the IT project -$400 000 savings

Regional collaboration: where to from here for SLM?

Option 1 Option 2 Identify opportunities and prioritise/scope/decide (2 meetings) Assess potential for ‘Future SLM’ Innovation and Sharing Program:

•

> decide LG collaboration is a regional priority work out a game plan (3-4 months)

•

co-design services: staff engagement

• •

Business case/project plan Share good practice/knowledge

• • •

MAV funding support available RDV funding potential Governance structure > SLM leading the way: will attract support Option 3 BAU