2015 FOLG Summit The journey to date LG is facing unprecedented challenges Can LG innovate its way out of funding cuts? Transition to people-powered public services LG heroes
‘Life in 2030’ Ericsson https://www.youtube.com/watch?v=I9L79_xEQ-U
Monumental change. • The four global forces breaking all the trends: McKinsey Global Institute 2015 • In the Industrial Revolution of the late 18th and early 19th centuries, one new force changed everything. Today our world is undergoing an even more dramatic transition due to the confluence of four fundamental disruptive forces—any of which would rank among the greatest changes the global economy has ever seen. Compared with the Industrial Revolution, we estimate that this change is happening ten times faster and at 300 times the scale, or roughly 3,000 times the impact. Together, these four fundamental disruptive trends are producing monumental change.
Global forces • Urbanisation • Global connectivity • Accelerated technology • Ageing population (McKinsey 2015) .
3. Accelerated technology • Digital life and mobile electronic commerce (meCommerce) is here • The “Internet of Things” and big data usage now drives supply chain thinking • New technologies, logistics assets, processes and people are required • Entry level requirements in supply chain and logistics > digital literacy is fundamental
The Internet of Things (IoT) “A pervasive and ubiquitous network which enables monitoring and control of the physical environment by collecting, processing, and analysing the data generated by sensors or smart objects**”
IoT Growth Perspective 50 Billion SmartObjects “Things” per person Rapid adoption rate of digital infrastructure 5 x fasterthan electricity & telephony Billions of Devices Inflection Point World Population Cisco IBSG projections, UN Economic & Social Affairs http://www.un.org/esa/population/publications/longrange2/WorldPop2300final.pdf
Daimler’s driverless trucks Volvo’s truck driverless convoy in Europe – think Hume Freeway? https://www.youtube.com/watch?t=80&v=zAiTySwWTiQ Rio Tinto’s driverless mining trucks
How to implement strategic change? • The new imperative in local government • Includes collaboration and innovation • Needed at state-wide, regional and Council level • A few Councils are doing it well • Requires organisational leadership, commitment and change champions • Characterised by organisation-wide small group activity challenging the status quo
FOLG 2005-2015 Why FOLG? No game plan for the sector • LG is the most complex service business on earth • Councils have plans (spaghetti) but where does LG want to go in the future? • Too busy on myriad of day to day issues, not LT strategic directions • LG often seen as blocker or regulator • There is often lack of confidence in LG (but also a lack of knowledge of what LG does) • Other levels of government make all key decisions about LG • Rapidly escalating community expectations • Fundamental change now occurring: world is going ‘local’: networked society: transformative shift to digital government • Embrace change and reform rather than have it imposed • Opportunity of a lifetime for LG: but will not be ‘business as usual’ • FOLG: Smart Councils, Strong communities
So many problems • Ageing workforce/skills shortages • LG costs rising rapidly • Ad hoc collaboration • Funding cuts for LG • Networked society – digital government: G2C • Most Councils can’t scale the Digital Divide: don’t have the resources
FOLG 2005-15: Steps in the journey • Role of LG: • Facilitating the building of stronger and more successful communities • improving community well-being • Place making • Opportunity for leadership in a re-localised future • Primary role of local government is community governance rather than service delivery (RRR) • facilitate strategic alliances to deliver defined community outcomes
FOLG 2005-15: Steps in the journey • Shared services or amalgamation? Does LG have a position? • Time of fundamental change: LG can’t keep doing things 79 different ways: not compatible with the networked Digital Age • Can LG collaborate and innovate its way out of funding cuts? Issues of change management and organisational culture
The challenge is to respond ahead of the curve If local government don’t respond, other levels of government will –and hasn’t that always been the issue?
Council-centric decisions Fragmented resourcing Leading for future success Where we need to be – Councils of the Future Co-design planning Technology enabled opportunities Place based delivery Strategic regional collaborations Community driven participation Adaptive Community cultures Broker of key services LG at the crossroads Councils Leading Change A question of leadership Colugo at the cross-roads Increasing community expectations Performance and financial challenges Ad-hoc collaboration Two speed LG Service costs are rising Poor spatial awareness Where we are now – business as usual LG at the crossroads
2014 FOLG Summit: propositions Commission of Inquiry into Rewiring Public Services to Improve Community Outcomes: Propositions from the Commission • Local Government will take control of its own destiny and stop playing the victim and stop cap in hand whingeing behaviours • In future, budgets (negotiable elements) should be set by using crowd- sourcing methodology to determine priorities and services for the year. • In future councils will work collaboratively for delivery of back office services via shared services arrangements. • In future councils will exercise leadership with other tiers of government in a whole system approach. • The sector makes a commitment that every council in Victoria will be financially successful within 4 years and will make a collective commitment to achieve this • Councils will commit to moving to IT that is designed to enable genuinely transformative change. • Local government will play a leadership role in identifying new business models to transform the delivery of public services in a way that uses far less resources
WOW! moments • In 2004: the UK LGA vision for LG in 2014 was: ‘independent, self-governing communities’
WOW! moments • In 2004: the UK LGA vision for LG in 2014 was: ‘independent, self-governing communities’ • Graham Richardson & Paul Lyneham: LG should be the most powerful lobby group in Australia
WOW! moments • In 2004: the UK LGA vision for LG in 2014 was: ‘independent, self-governing communities’ • Graham Richardson & Paul Lyneham: LG should be the most powerful lobby group in Australia • Golden Plains community planning: 23 community plans, 96% of community priorities successfully implemented: led to a health services revolution: hand on the steering wheel
WOW! moments • In 2004: the UK LGA vision for LG in 2014 was: ‘independent, self-governing communities’ • Graham Richardson & Paul Lyneham: LG should be the most powerful lobby group in Australia • Golden Plains community planning: 23 community plans, 96% of community priorities successfully implemented: led to a health services revolution • FutureGov (UK): using technology to deliver a brave new world for local communities
WOW! moments • In 2004: the UK LGA vision for LG in 2014 was: ‘independent, self-governing communities’ • Graham Richardson & Paul Lyneham: LG should be the most powerful lobby group in Australia • Golden Plains community planning: 23 community plans, 96% of community priorities successfully implemented: led to a health services revolution • FutureGov (UK): using technology to deliver a brave new world for local communities • UK: massive $ cuts but higher satisfaction with LG
WOW! moments • In 2004: the UK LGA vision for LG in 2014 was: ‘independent, self-governing communities’ • Graham Richardson & Paul Lyneham: LG should be the most powerful lobby group in Australia • Golden Plains community planning: 23 community plans, 96% of community priorities successfully implemented: led to a health services revolution • FutureGov (UK): using technology to deliver a brave new world for local communities • UK: massive $ cuts but higher satisfaction with LG • Forecast: No computer servers after 2020 • The Virtual Council (2015)
Imperatives for LG • Role of LG: to partner with the community to deliver on its aspirations (community governance) • Real community-driven engagement (co-design) = stronger local government • Regional collaboration: identify opportunities and assess potential • Innovation within Councils: small groups > ideas generation
Vision for LG • A collaborative and more productive local government delivering priority outcomes to a more engaged community • Characteristics: digital, agile, responsive, co-design • Identify where services are best managed: • State • Regional • Local
Fundamental challenge • LG has fewer dollars • Rapidly rising community expectations: • Options:
The new environment • Almost every organisation is re-thinking their business model and transforming service delivery strategies • New relationship between G2C: community-based leadership emerging • Does LG have a game plan? Is this a threat or an opportunity? • Rate capping = need for LG to engage more closely with communities
It’s easy! A problem shared….. Turn the problem upside down • LG has fewer dollars (boo hoo!) but here’s the thing:
It’s easy! A problem shared….. Turn the problem upside down • LG has fewer dollars (boo hoo!) but here’s the thing: • Smart Councils are letting the community decide how to spend the dollars (co-design/participatory budgeting)
It’s easy! A problem shared….. Turn the problem upside down • LG has fewer dollars (boo hoo!) but here’s the thing: • Smart Councils are letting the community decide how to spend the dollars (co-design/participatory budgeting) while • Councils furiously collaborate and innovate (DMWL) and partner more with communities • And State & Federal Governments struggle to be relevant > Happy days are here again.
The reality of austerity The UK LGA Funding Outlook 2013 www.local.gov.uk
UK funding cuts: $A25 billion by 2020 (37% 2010-15) • What to do? • Large program cuts • Integrating back office functions • Networked technology (from call centres to 24x7 self-service) • Charging more for services • Transforming health and social care (strategic alliances) • Passing responsibility to the public (eg. parks management, library volunteers, culture, meals on wheels, volunteering) • Whole of place community budgets: redesigned around people and places rather than organisations (co-design) • Political leadership: public debate • What are you prepared to give up? • What are you willing to pay more for? • What are you prepared to do more of yourselves?
New relationship between citizen and state • Identify local priorities: demand pull • Innovation • What can councils do? • Councils are furiously innovating: they have radically re-thought how they ought to serve the people who elect them • Councils are outsourcing and redefining services at a terrific clip
Innovating out of Austerity in LG (LSE) • In austerity conditions pooling resources and combining efforts will be even more vital • In every hierarchical organisation, front line staff know the most about services and their delivery, yet their views are not often sought. Actively looking for ideas for change and sustaining staff commitment will become even more important in the future.
UK Local government is • trusted • competent • innovating and WOW! Satisfaction with LG is rising, despite the massive funding cuts.
Where are Australian Councils going? • LG will transform in the next 10 years: what role will Councils have in that transformation? • The 4 year Council Plan (2017-21) should tell us • How Council will meet the challenge of change • How co-design with the community will happen • How Council will scale the digital divide • How to do more with less: incl. community budgeting • How innovation will transform council services • How to manage change (the new imperative)
LG: Collaborate and innovate or die • But how to deliver? • How to establish a culture of innovation and collaboration? • Does LG have the transformative leadership? • Who are the champions of change in LG? • Who drives change in LG? • How can councils collaborate more effectively? • How can Councils deliver better performance at lower cost?
How can Councils deliver better performance at lower cost? • Requires a commitment to a fundamental change in the way services are planned, organised and delivered. • Need to engage citizens in service design and delivery (co-design) • Need to put innovation and collaboration high on the Council agenda and regional agendas/plans • Requires leadership • Requires small ‘change/activation/ideas’ planning groups across the Council
LG heroes: walking the talk Leaders in the clubhouse: • LED street lighting (Vic) • Creative Councils UK • Hunter Councils Inc. (NSW) • Swift Library consortium • Boroondara Council: Council-wide innovation program • Hawke’s Bay Councils (NZ): Roger Matthews, Transformation Manager • Victorian LG Enablement Platform pilot Councils • UK Local Government Assoc: Rewiring Public Services • FutureGov: transformative projects: Patchwork, Casserole • Cardinia Council: activity-based working • Martin Gaffer, CEO, City Town Council (UK)
Outcomes so far • $450m saved • 1.6 m tonnes of greenhouse emissions • 250,000 lights • 5-7 year paybacks
Creative Councils UK • LG is in a trap: it needs to do more with less • CC is a program run by NESTA and the LGA in developing and implementing radical, transformative ideas. They exemplify the role innovation can play in solving long term challenges. • If LG is to overcome these challenges it needs to rethink how it functions from the inside out. It needs to think differently about how it delivers services.
Creative Councils UK • ‘We need to make LG as good at creative problem-solving as the most successful business’, NESTA CEO • Assumptions: • LG challenges demand more than incremental change • LG would be part of the solution • Great ideas should be spread across LG • Councils can be supported to be better innovators • Over one third of all UK Councils applied for support from Creative Councils
Creative Councils • Example: in Wigan, they are helping the council to devolve its adult social care budget to local people so they have the opportunity to control the way in which their needs are met.
LEADERS IN LOCAL GOVERNMENT RESOURCE SHARING ROGER STEPHAN, CEO
Major Events Strategy Cruise Ships Business Tourism and MICE Access – aviation, roads, rail Industry development – research, products International Marketing Information Provision Digital distribution and marketing Infrastructure – conference and exhibition, cycle ways, place making, marine facilities Sports Tourism Arts and Cultural Tourism Benchmarking Education and training
The Swift Journey ……………how collaboration benefits participants
Swift Members NSW Libraries Other Victorian Libraries Initial Libraries • Ashfield • Burwood • Botany Bay • Marrickville • Kogarah • Strathfield • Eastern • Casey Cardinia • Greater Dandenong • Melton • West Gippsland • Goulburn Valley • Mildura • High Country • Wimmera • Latrobe • Yarra • Gannawarra • Campaspe • Central Highlands • Swan Hill • Mitchell • GOTAFE • Wodonga • Indigo • Towong