Leadership Strategies in Times of Economic Meltdown

1. Leadership Strategies in Times of Economic Meltdown League of California Cities San Francisco, CA Sept 23, 2011

2. Panel • Alice Fredericks, ModeratorCouncil Member, Town of Tiburon • Dr. Frank Benest Former City Manager, Palo Alto, Senior Advisor, ICMA • Greg Larson Town Manager, Town of Los GatosLCC City Managers Dep’t Executive Board

3. Overview • Exercise: “In times of meltdown, what are the constraints under which city leaders must operate?” • The 10 new rules for elected officials • Resources • Q & A

4. Constraints • “In times of economic meltdown, what are the constraints under which city leaders operate?”

5. 10 New Rules for City Leaders

6. Rule #1 • Identify the “core” • What defines you? • What can only you do? • Any “loss” leaders? • Possibilities: • Land Use & Planning • Safety, broadly defined • Downtown, Environment, Parks, Library, etc.

7. Rule #2 • Focus on a few priorities • Not too broad • Not too many • Projects and Programs • Community Engagement • Forced Choices

8. One Example

9. Rule #3 • Subtract, subtract, subtract • Reduce Time • “Default is action” • Delegation at all levels • Systems analysis, with metrics! • Reduce Personnel • Offset explosive growth in expenses • “Irony of outsourcing”

10. Rule #4 • Limit requests for new analysis & reports • Traditional way to respond to constituent requests • Diverts staff resources • Undercuts ability to perform

11. Rule #5 • Have the courage to say “no” • Refer to priorities • Stay the course

12. Rule #6 • Avoid zero-risk environment • No innovation without risk • Learning from mistakes is key to innovation process • City govts operate in hyper- critical organization • Councils must protect creative & risk-taking employees

13. Promoting Tolerance of Risk • Pilot-test everything • Broaden involvement of partners • De-brief & share lessons • Celebrate “fabulous flops” and risk-takers • Create professional “safety net”

14. Rule #7 • Pursue non-governmental solutions • “Steer, Don’t Row” – Reinventing Government • Privatization • Routinization • Leveraging • Partnerships • Shared Services • Volunteers, Non-profits, and more

15. Two Examples from Los Gatos • Responsive Customer Service as a Priority • Routine maintenance and work outsourced • Reduced staffing does call response • Recreation “Department” • An educational JPA and non-profit • Core services provide foundation • Extrordinary services at direct cost • Expanded to Senior Services and Neighborhood Center • Result – Increased services and significant budget savings

16. Rule #8 • Free up funds for targeted investments • Victories needed • Opportunities: • Technology/Efficiency • Engagement • Capital Projects • Grants (e.g., ARRA) • Year-end surpluses or Reserves

17. Rule #9 • Provide meaning & emotional support for staff • Premise: Your great policy ideas are impotent without talented employees to execute them • “Suck it up” does not work • Reach out, listen & engage • Demonstrate appreciation • “Meaning is the new money”

18. Rule #10 • Develop talent & rebuild organizational capacity • “Free exiter” problem • New social contract • Talent development is cheap

19. Cost-Effective Approaches • Encourage employees to create annual learning plan • Provide interim or special assignments • Rotate emerging leaders thru several positions • Assign special projects • Make team leadership assignments • Provide job shadow or cross-training opportunities • Structure assignments to include interaction with boards or community groups • Establish Leadership Academy with other cities

20. Courageous Conversations

21. Resources • Dr. Frank Benest, “Ten New Rules for Elected Officials in Times of Economic Meltdown,” Western City, Jan 2011 • Institute for Local Government, A Local Official’s Guide to Public Engagement in Budgeting and Planning Public Forums • Go to www.ca-ilg.org

23. Contact Information • Alice Fredericks • AskAliceNow@usa.net • Frank Benest • Frank@FrankBenest.com • Greg Larson • GLarson@LosGatosCA.gov