Where Does LG Want to Be in 2013/14?

1. Where Does LG Want to Be in 2013/14?

2. 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…………..

4. 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)

6. 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 complexservice 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 lacksstrategic change capability: is focussed on regulation/control • They keep on doing it ‘to’ us

7. 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

8. 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

9. 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

10. 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?

11. 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…………

12. Opportunity Knocks for LG ………………….. but we need a game plan

13. 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

14. 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

15. 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)

16. FOLG to Date • Vision for LG: stronger communities (and more capable local government)

17. Number of Councils in Australia • 1910: 1067 • 2011: 565 • (Business lobby: 200)

18. LG Reform Activity

23. 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

24. Change • LG is most likely going to change more in the next 5-10 years than in the past 50years. • 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

25. 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?

26. The ‘UK’ Future Is Coming to a Council Near You… butmore 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!

27. Imperative for LG • improve collaboration • Local Government only has strength when it acts as a sector • Before we act we need a game plan

28. 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)

29. 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

30. 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

31. 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….

32. 10 Things About LG • If LG can demonstrate it is effective and efficient, external pressure is reduced (eg. NSW case study)

33. 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

34. Good Practice in LG in 2015 Knowledge is a Council’s most importantasset (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)

35. FOLG Outcomes • 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

36. FOLG Outcomes 2. Improved service delivery • Transition to common back of house (%) • Common standards/specs • Regional collaboration strategies • Continuous improvement and innovation • Performance measurement

37. FOLG Outcomes 3. LG creates value for communities • Community access to information • Economic development opportunities • Strategic alliances

38. FOLG Outcomes • LG ring-fences scope of activity • Finds a way to implement the IGA and make it work (core and non-core?)

39. 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

40. 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

41. 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

42. 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

43. 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

50. WBC STRATEGIC ALLLIANCE