Municipal Monitor Q2 2016 by AMCTO

Q2 2016

The Official Publication of AMCTO – The Municipal Experts

Municipal Management & Leadership

MUNICIPALITIES &

MOVING FROM REACTIVE TO PROACTIVE

ALSO • Applying Emotional Intelligence Skills to Workplace Conflict • Open Government: It’s More than Open Data • Going Lean in Municipal Government: Focus on Your Customers, Reap the Financial Rewards

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Published four times a year for the Association of Municipal Managers, Clerks and Treasurers of Ontario (AMCTO)

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Q2 2016

Contents

FEATURES from 8 Moving Reactive to Proactive Governments find benefits by embracing the sharing economy

it Out 12 Feeling Applying emotional

intelligence skills to workplace conflict

DEPARTMENTS Message 3 President’s Collaboration is Strength By Chris Wray, AMCT

5 Viewpoint Ethics and Accountability

– An International Perspective By Andy Koopmans, CPA, CMA, CMO

case for municipal 15 The government transparency

Wide Open

rests on more than just the provision of open data

Nikki Manalo

Disclaimer: The opinions expressed by the authors and/or editorial sources contained in Municipal Monitor are those of the respective parties and do not necessarily represent the opinion of the publisher. Publication Mail Agreement #40606022. Return undeliverable Canadian addresses to: 701 Henry Ave. Winnipeg, MB R3E 1T9 Printed in Canada. Please recycle where facilities exist.

Lean in 18 Going Municipal Government Focus on your customers, reap the financial rewards

Q2 2016

The Official Publication of AMCTO – The Municipal Experts

Municipal Management & Leadership

MUNICIPALITIES &

MOVING FROM REACTIVE TO PROACTIVE

Municipal Monitor

Cover photo: Bakhtiar Zein/Shutterstock.com ABOVE Photo: Javen /Shutterstock.com

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President ’s Message

Board of Directors Christopher Wray, AMCT President Municipality of Wawa Michelle Smibert, CMO Immediate Past President Municipality of Middlesex Centre Stephane Palmateer, AMCT Vice President/Zone 8 Board Director City of Timmins John Hannam, CMO Director at Large City of Thunder Bay Lois O’Neill-Jackson, CMO Director at Large Municipality of Trent Lakes Yvonne Robert, CMO, AMCT Director at Large Township of Elizabethtown-Kitley Robert H.A. Tremblay, CMO, Dipl.M.A. Director at Large Municipality of Meaford Michelle Casavecchia-Somers, CMO Zone 1 Board Director Township of Malahide Pamela Fettes, CMO, DipI.M.A. Zone 2 Board Director Township of Clearwater Angela Morgan, CMO Zone 3 Board Director City of Burlington Stephen Huycke Zone 4 Board Director Town of Aurora Candace Thwaites, CMO, AMCT Zone 5 Board Director Town of Gravenhurst Dean Sauriol, CMO, Dip.M.M Zone 6 Board Director Township of Laurentian Valley Carol Trainor, AMCT Zone 7 Board Director Township of St. Joseph Marcella Vallelunga Zone 9 Board Director City of Thunder Bay

Collaboration is Strength

By Chris Wray, AMCT President, AMCTO

“Unity is strength…when there is teamwork and collaboration, wonderful things can be achieved.” – Mattie J.T. Stepanek

here is an old English proverb that states, “Necessity is the mother of invention.” Essentially, it means when the need for something becomes imperative, you are forced to find ways of getting or achieving it. Keeping this definition in mind, it would appear to me that the municipal sector has, and may always, find itself in this situation as it looks for various ways to deliver excellent services to its ratepayers in the face of the constantly shifting municipal paradigm. Just in recent memory (and mine is short), we have had to deal with the problems created by “who does what?” as well as provincial downloading and revenue neutrality (a misnomer), Smart Growth, a divesture of the sector by the provincial and federal governments, forced municipal amalgamations, greatly increased responsibilities, everchanging legislation and regulations, a severe economic downturn, skyrocketing energy prices, provincial growth plans, fiscal unsustainability, an infrastructure deficit; the list goes on. Yet somewhere within all of this, the municipal sector has made time to collaborate, perhaps through necessity, perhaps not. Senior staff have made time to get together to share information and discuss service sharing,

councils have signed inter-municipal agreements to share services, staff associations have collaborated on programming and the sharing of information, political associations have banded together to deliver common messages to the provincial and federal government. The legislated Memorandum of Understanding (MOU) between the Province of Ontario and the Association of Municipalities of Ontario (AMO), of course, best exemplifies the latter. There is however, still much work to do. Staffing associations such as AMCTO, OMAA, MFOA, OMTRA, OMHRA and others are providing great service to their members through educational opportunities, networking, seminars, newsletters, annual conferences and the dissemination of other related materials. These associations provide services that are pertinent to their mandate and membership, with no two being identical. They will go on well into the future doing the excellent work that they do for their members while maintaining their autonomy. On the other hand, the major political associations have moved the proverbial yardsticks a bit further. Organizations such as NOMA, FONOM, ROMA, OSUM, LUMCO and more all participate in their own right, taking in Municipal Monitor

P resident ’ s M essage

anfisa focusova/Shutterstock.com

“Is it not time for the various staff associations in Ontario to take the lead, band together on matters of common importance and create a new municipal sector landscape in the province?”

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Q2 2016 www.amcto.com

information and input from their members and local municipal associations that is discussed and used as a genesis for discussion on myriad issues within the AMO context. This does not mean for a moment that they have given up their autonomy – far from it. However, they are given the opportunity to move their issues thoughts the AMO process to the MOU table. Therefore, is it not time for the various staff associations in Ontario to take the lead, band together on matters of common importance and create a new municipal sector landscape in the province? One only needs to think of the time and energy that went into the recent submissions for changes to such legislation as the Municipal Elections Act, The Municipal Conflict of Interest Act and to other provincial initiatives that affect the sector, such as the provincial and federal budget. Isn’t a lot of this common ground? We have it within our power to come together as a sector and discuss how the above could be possible. Imagine the collective knowledge of the various staffing associations in Ontario working towards a better sector. Of course, such an arrangement could not be executed without conditions, such as a joint MOU and a complete respect of the autonomy of each organization. If this could be achieved, there is no reason, once completed, that we could not jointly approach AMO, jointly offer our expertise through an MOU and thereby strengthen our sector immeasurably. What a force we would all be together! The Province of Ontario would most certainly take notice.

VIEW P OI N T

AMCTO Staff Andy Koopmans, CPA, CMA, CMO Executive Director Craig Wellington Director, Programs & Services Rick Johal Director, Member & Sector Relations Roger Ramkissoon, CPA, CGA Manager, Finance & Administration Anubha Meta, Ph.D. Manager, Education & PD Program Development Brenda Armstrong Johnston Specialist, Membership Services Michelle Sampson Executive Assistant Kathleen Barrett Coordinator, Communications & Marketing Jeanne Moon Coordinator, Programs & Services Rosita Bourke Coordinator, Programs & Services

Ethics and Accountability – An International Perspective

hrough an opportunity provided by the Federation of Canadian Municipalities – International, I recently had the chance to take part in a technical exchange mission in Lima, Peru. Working with a colleague from the Local Government Management Association – British Columbia, we were tasked with partnering with a local government association in Peru to facilitate their efforts to become more financially sustainable so that they can continue to provide assistance to

By Andy Koopmans, CPA, CMA, CMO Executive Director, AMCTO

their municipal members throughout the country. It was an educational and eye-opening experience that revealed that ethics and accountability concerns are prevalent all over the world. Throughout our week abroad, we were continually impressed with the skills and enthusiasm demonstrated by our Peruvian counterparts. It was apparent that they had spent a substantial amount of time thinking about the opportunities to expand their revenue-generating activities. However, while there was no shortage

Manjit Badh Coordinator, Programs & Services Eric Muller Policy Advisor Tawanda Chirenda Coordinator, Accreditation

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Jane Chevannes Administrative Assistant, Programs & Services

Municipal Monitor

“It was an educational and eye-opening experience that revealed that ethics and accountability concerns are prevalent all over the world.” of opportunities, there were a couple of significant barriers preventing them from moving forward with their financial sustainability goals and their stated commitment to improving the professionalism and ethical standards of municipal officials (both elected and appointed). Audit • Tax • Advisory

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Q2 2016 www.amcto.com

Similar to the case in many parts of Canada, local government elections in Peru are held every four years. However, the country operates with a distinct strong-mayor system, which places almost all of the decisionmaking authority in the hands of the elected mayor with a much more diminished role for the rest of the local government elected officials and appointed staff. With party politics playing a pivotal role at the local level, it is also not uncommon for the appointed staff to be politically aligned with the mayor. While, as you would expect, this could lead to a certain amount of staff turnover following each local election, the situation is compounded in Peru by a legislative requirement that limits the mayor to serving only one four-year term. From stories we were told, it is fair to say that the situation in some municipalities following a municipal election can be described as chaotic, at best, as existing staff are vacating their positions and new staff are being brought on board. As a result, the continuity of skilled and trained staff and the retention of municipal knowledge are serious challenges. While certainly not a unique situation, corruption at the local government level has also been a longstanding issue in Peru. Even though the national government has put strong anti-corruption legislation

in place, many municipalities still wrestle with the issue of funding not getting to where it’s needed, with contracts being awarded (usually by the mayor) to companies that may be inclined to offer incentives for favourable consideration. This situation, and the related legislation, poses a particular challenge for the local government association, with whom we were working as well. Since their board of directors is comprised of municipal mayors, the legislation effectively prohibits the municipalities represented by these mayors from participating in any of the programs that the association offers. Further, because the association competes with the private sector for many of the program offerings, it is often difficult for them to win bids and contracts against firms that may be inclined to provide incentives to the elected officials. At the end of our week in Peru, my colleague and I were able to provide some suggestions that we hope will assist our Peruvian colleagues. Their biggest barriers, however, were well outside the scope of anything we could address. We came away with a deep admiration for the association’s commitment to ethical local government and an even deeper appreciation for the relatively minor ethics and accountability challenges faced by our respective members.

Jiri Flogel/Shutterstock.com

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Moving from Reactive to Proactive

Governments find benefits by embracing the sharing economy By Sarah B. Hood Q2â&#x20AC;&#x201A;2016â&#x20AC;&#x192; www.amcto.com

COVER STORY

nce upon a time, a modest underground economy flourished through hand-written notices on lamp posts, in the classifieds section of neighbourhood newspapers and on bulletin boards in university corridors and grocery stores, with neighbours offering neighbours every type of service from pet care to house-sitting, ride-sharing, grass-mowing, snow-shovelling and moving. In the new world of the sharing economy, suddenly anyone can reach a world market instantly through web-based businesses. The time has long passed when municipalities might try to manage the movement case by case. Now, local governments must step back and address the bigger picture to see how they can best help individuals and businesses within their jurisdiction to thrive in the sharing economy. The good news is that there are numerous potential advantages for municipalities that take this approach. “Some of the benefits for municipalities could be economic opportunities for citizens and more efficient use of assets. Municipalities can reduce waste by reusing goods and sharing assets among people through platforms like Kijiji and Car2Go,” says Sunil Johal, Policy Director for the Mowat Centre at the University of Toronto. The sharing economy may open a door for “better social connections or trust amongst citizens if people are connecting with each other or engaging in transactions. There could also be potential benefits for cities hosting large sports events or conferences [because] they could take advantage of extra rooms or cars,” he says. “There are also potentially revenue opportunities for municipal governments if these things are thought through carefully. If cities are creative, they could look to innovative revenue tools that could go into centralized funds for things like accessibility or transit; that could be the tradeoff for policymakers.”

Municipal Monitor

COV E R STO RY

“If cities are creative, they could look to innovative revenue tools that could go into centralized funds for things like accessibility or transit; that could be the tradeoff for policymakers.” – Sunil Johal, Policy Director, Mowat Centre

Edmonton and Uber Edmonton has just pioneered a new vehicle-for-hire bylaw that provides the opportunity for Uber and other ridebooking services to operate legally without dismantling the already existing taxi industry. “Uber began to operate in Edmonton in December of 2014, sparking a year of intensive discussions,” says Garry Dziwenka, Director of Licensing and Vehicle for Hire with the City of Edmonton. “By Jan. 20, 2015, council had already passed a motion asking us to come to Executive Committee with a report on the use of third-party apps by the public and taxi industry.” Between January and September 2015, a bylaw was drafted. City staff consulted extensively on the direction Edmonton should take in regulating ride-booking services, known as Private Transportation Providers (PTPs) in the draft bylaw. In September, a non-statutory public hearing was held and the draft bylaw was presented to council. Directed to carry out further research and modify the draft, Dziwenka says, “between Sept. 22 and Nov. 17, we had meetings with the industry: the taxi brokers, plate licensees, taxi renters, Uber and an industry advisory committee.” The bylaw received first reading in November and went through another round of consultation with industry representatives about fares and fees. “We had a facilitator there, rather than me chairing,” he says. “The main question asked at those meetings was ‘If the bylaw was changed, what does your group want?’ In addition, we did extensive public surveys on fares.” In January, “we took council through the debates they’d previously had, what they’d decided upon and what was still outstanding. I think it was integral to getting this bylaw passed that we positioned it by saying ‘This is not a perfect bylaw; we’ll always be monitoring it, but it’s a great start. It allows the PTPs to be legal and it allows the taxi companies to survive.’” The bylaw passed on Jan. 27, with an implementation date of March 1. Under the new bylaw, regular licensed taxis can use telephone dispatch, a mobile app or street pickups. PTPs are restricted to prearranged trips by phone or app. Street pickups must be charged according to a set tariff, but both taxis and PTPs are permitted to charge flex fares (with a minimum charge of $3.25) for rides pre-arranged through an app. 10

Q2 2016 www.amcto.com

PTPs must comply with the same safety and regulatory requirements as taxis: drivers must provide proof of the proper insurance and class of driver’s license (1, 2 or 4) as outlined under Alberta’s provincial law and undergo a Police Information Check. The vehicle must also pass an annual inspection by a licensed mechanic and the certification must be kept in the vehicle. Licensing fees are collected from PTPs and taxis to cover costs of regulation and enforcement. The license fee structure in Edmonton’s new bylaw establishes two PTP dispatcher categories: regional PTPs operating less than 200 vehicles and commercial PTPs operating more than 200 vehicles. Regional PTPs and taxis pay an annual dispatcher vehicle and driver fee, while commercial PTPs pay an annual dispatch fee and remit $0.06 per trip. PTPs are also required to pay an annual accessibility surcharge to cover the costs of providing accessible transportation. “The city gets a new way of providing vehicle-for-hire services and more competition in the market; the citizens get more choice,” says Dziwenka. “And in our research, we found out that was very important to the city.” For now, Uber has left the Edmonton market while working with a private insurer on an insurance solution that’s more affordable than current commercial policies, but which meets with provincial approval. However, a local company called TappCar, largely staffed by taxi drivers who were renting their vehicles, is now in operation. “That’s another win for the city: we’ve opened up the market and allowed a company that otherwise wouldn’t operate to provide service,” he says. “It really wasn’t about Uber; it was about providing what the residents told us they wanted. They wanted choice and Uber put a mirror up to the taxi industry that allowed us to see what choice might look like.”

Ontario and Airbnb The current Ontario budget takes the position that “[t]he sharing economy has significant potential to drive economic growth, productivity and innovation,” but cautions that “[a]dapting Ontario’s economy to accommodate new business models requires careful consideration and consultations with key stakeholders, including municipalities, the public, industry and other interested parties, to ensure rules and

COVER STORY

“It really wasn’t about Uber; it was about providing what the residents told us they wanted. They wanted choice and Uber put a mirror up to the taxi industry that allowed us to see what choice might look like.” – Garry Dziwenka, Director, Licensing and Vehicle for Hire, City of Edmonton regulations reflect an appropriate balance between the four principles guiding the province’s strategy.” In October 2015, the province established a Sharing Economy Advisory Committee and this February, the Ministry of Finance launched a pilot project with Airbnb to raise awareness about homeowners’ and consumers’ rights and responsibilities when offering or booking online accommodations, making Ontario the first province to take such a step. The ministry estimates that more than 11,000 Ontarians currently list their properties on Airbnb, typically earning about $280 a month. During tax season, Airbnb will email its host-users about subjects like declaring taxable income, consumer rights, accessibility and safety obligations. The province is also collaborating with Airbnb on a one-stop website that amalgamates regulatory information with links to other pertinent sites. Meanwhile, further change is coming.

“Companies that allow people to transact services are really going to be the next big wave, whether it’s cleaning, handyman services or tutoring. The U.S. is further ahead in terms of those service-provision platforms; I think that will be a huge growth area,” says Johal. Municipal governments can learn a lot from the sharing economy about making the most of existing resources, he says. “Making sure government buildings are being used at all times of the day, government cars are being shared and rules and regulations are being adapted for more companies to thrive in the space,” Johal notes. He advocates “small-scale pilots with zoning approvals,” and says “the use of waivers, exemptions and trial periods is something we should start seeing more of in Canada if we want to see policymakers try to keep up with how fast the sharing economy is moving.”

Municipal Monitor

Feeling it Out Applying emotional intelligence skills to workplace conflict By Garth Johns

Oksana Telesheva/Shutterstock.com

an Hill, a friend and colleague of mine, says that you don’t have to get sick to get better. Many managers are incredibly well educated, technically knowledgeable about their field with very high IQs but they can become better leaders by practising good emotional intelligence (EI). According to Steven Stein and Howard Book, “emotional intelligence is what we commonly refer to as ‘street smarts’ or that uncommon ability we label ‘common sense.’ It has to do with the ability to read the political and social environment, and landscape them; to intuitively grasp what others want and need, what their strengths and weaknesses are; to remain unruffled by stress; and to be engaging, the kind of person that others want to be around.”1 Are you that kind of manager? As a manager, you are paid to perform certain functions. You plan, organize, implement, delegate, control and measure. You are also expected to be a leader for your staff and, as a leader, you need to inspire your staff, politicians, other staff/managers and perhaps even members of the public. A tall order at the best of times but one that is made even more challenging by the unrelenting presence of our age-old nemesis, conflict. Conflict comes in many shapes and sizes. Unions, by their very nature, fetter your absolute right to manage. Political agendas will often bring clerks and managers into occasional conflict with their elected representatives. Each of us carries our own perceptions of reality, our own values, goals, aspirations, behaviours, beliefs, loves and competencies. In our lives outside of the workplace, each of us face unique and very personal trials, tribulations, challenges and problems. With this in mind, especially as it relates to your staff, you need to remember that they are not human resources but rather individuals with unique lives and experiences. As a result, the first step to applying EI skills to workplace conflict is to recognize and acknowledge the uniqueness of every individual. Take time to connect with each one on a personal level and it will be time well spent. For anyone who believes there is one silver bullet that can be used to eliminate conflict, stop reading now. Nothing like that exists in life, let alone in the workplace. We will never eliminate conflict and, in fact, we need to begin to see conflict as having potential to be constructive. It may simply represent 12

Q2 2016 www.amcto.com

EMOTIONAL INTELLI G E N CE

â&#x20AC;&#x153;We will never eliminate conflict and, in fact, we need to begin to see conflict as having potential to be constructive. It may simply represent a difference of opinion or it may be evidence of differing sets of values but it does not necessarily mean that those positions or values are incompatible with one another.â&#x20AC;?

Municipal Monitor

E M OT I O N A L IN TE L L IGE N C E

“Technical skills can always be taught but a positive attitude and solid team spirit are not so easily developed. Bringing members to the team who enthusiastically share team values will, in all likelihood, contribute positively to the reduction of a certain amount of conflict in the workplace.” a difference of opinion or it may be evidence of differing sets of values but it does not necessarily mean that those positions or values are incompatible with one another. Therefore, let us first alter our perception of the root cause or the very essence of the conflicts that happen at work. I appreciate that some people seem to have been placed on this earth to give us grief on a daily basis. We are convinced that their sole purpose in life is to drive us nuts. If that is our perception of the majority of conflict situations, then those individuals will serve to test our mettle and our capacity to become outstanding leaders. However, the reality is that most of us don’t get up in the morning determined to cause anybody else grief. The majority of us would rather enjoy each and every day. And so, our attitude needs to be one more closely aligned with a perception that accepts that opinions and values will differ but rather than avoid them, they should be respected and appreciated. As a result, seeing conflict as evidence of the wondrous variety that can be found within our staff and others we deal with every day should serve to ameliorate some of our frustration. Second, as Jim Collins notes in Good To Great, we need to get the right people on the bus, the right people in the right seats on the bus and the wrong people off the bus.2 Take the time and the energy necessary to make good recruitment decisions. I would always hire a person with good attitude and someone who is more likely to be a good fit with the rest of the team than I would someone with outstanding technical skills. Technical skills can always be taught but a positive attitude and solid team spirit are not so easily developed. Bringing

Civil / Municipal Land Development Environmental Solid Waste Management OTTAWA KINGSTON SUDBURY TIMMINS NORTH BAY HAWKESBURY GUELPH

Urban & Regional Planning Geographic Information Systems Mechanical Electrical Structural Architecture

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members to the team who enthusiastically share team values will, in all likelihood, contribute positively to the reduction of a certain amount of conflict in the workplace. Third, we need to practice good EI skills. The essence of EI is based upon four pillars – knowing yourself; managing your behaviours and attitudes; understanding why others behave as they do; and managing relationships effectively. In cases of conflict, there are generally a number of contributing drivers. Relationships will not always be perfect. No matter how compatible two people are, there is always the possibility that they may not agree 100 per cent of the time. Values can drive conflict whether disputes occur over differences between what is perceived to be right and wrong, good and evil or even more commonplace issues such as religion, ethics, abortion etc. Outside influences may contribute to conflict. I always implore my audiences to be kinder than necessary because everyone you meet is facing some kind of battle. Conditions unrelated to the workplace may lead to conflict at work. Or it may be something as simple as, “I know something you don’t know.” Regardless, understanding and appreciating what is at the root of conflict and treating that underlying cause with respect and sensitivity will always hold you in good stead. Remember, none of this can be perceived to be the proverbial silver bullet. Be kind, be respectful, be sensitive and use good common sense in all your dealings at work. It will never do you any harm. However, also remember that you are paid to make decisions and when all else fails, tough and difficult decisions need to be made. Garth Johns is an effective and highly respected senior leader, manager, consultant and author. He is also a much sought-after presenter and speaker on topics relating to leadership, management and human resources. Johns has a passion for common sense leadership with a particular interest in educating, mentoring and developing others. His reputation is built around solid leadership skills, the promotion of positive employee/labour relations, a quality work life for all staff and the improvement of our collective work/life balance. 1. 2.

Steven J. Stein and Howard E. Book, The EQ Edge (Mississauga: Joh Wiley and Sons, 2006), 14. Jim Collins, Good to Great (New York, Harper Collins Publishers Inc., 2001).

GOVERNMENT TRANSPA RE N CY

Wide Open

The case for municipal government transparency rests on more than just the provision of open data

e’ve come a long way from the days when the public’s only significant interaction with government at any level was through the ballot box. Today, public engagement in government affairs is on the rise with connected citizens demanding more information, more quickly and with greater transparency. With the move towards open government already taking place on a global and national scale, it’s no surprise that Canadian provinces and municipalities have signed on, too. Ontario launched its own Open Government Initiative in 2013,

committing the province to more transparent information-sharing practices. And, at the local government level, more than 50 Canadian municipalities have open data sites, including more than 20 in Ontario. “The number of municipalities providing open data is growing all the time,” confirms Roy Wiseman, Executive Director with the Municipal Information Systems Association (MISA) and former Chief Information Officer with the Region of Peel.

Three pillars of open government The open government model comprises three distinct pillars, or

streams: open data, open information and open dialogue. Wiseman explains that the first pillar, open data, is essentially about making raw, machine-readable government data sets accessible to the general public. “Governments maintain a wide variety of data that could fairly easily be made available, and which might be useful to individuals and application developers,” he says. Examples of applications developed by companies using raw government data include municipal facility and service finders, bus stop locations and schedules, cemetery plot locators, municipal events calendars and more. Municipal Monitor

Peshkova/Shutterstock.com

By Lisa Gordon

G OV E R N ME N T TR AN S PAR E N C Y

“…By proactively publishing open data, municipalities can skip the work associated with many information requests. Simply publishing it eliminates the need for a request – people can just go and get it.” – Roy Wiseman, Executive Director, Municipal Information Systems Association

yuki33/Shutterstock.com

The second pillar, open information, involves the proactive release of unstructured government information – such as research reports – on an ongoing basis. “This includes information that is often about the actual operation of government, including budget data, expenditures, procurement and contract awards,” explains Wiseman. “This allows people to provide a kind of oversight in terms of how government is spending their money.” Finally, the third element of the open government strategy is open dialogue.

Q2 2016 www.amcto.com

“This allows citizens to participate more fully in their government,” Wiseman notes. “It includes things like providing draft policy proposals for comment, open participation in budget processes, asking people for input about public priorities, etc.”

Why open government? Open government practices deliver important advantages for municipalities. “Open data has a couple of benefits to a municipal government,” says Wiseman. “It’s often seen as a tool for economic development. It allows developers to come up with their own apps, making use of government data. For example, access to weather data has created whole industries, like the Weather Network.” Governments don’t have the time or resources to capitalize on the data they own, so it makes sense to release it to the public.

“By enabling others to create apps, we don’t have to create them ourselves,” Wiseman continues. “Also, by proactively publishing open data, municipalities can skip the work associated with many information requests. Simply publishing it eliminates the need for a request – people can just go and get it.” The motivation behind open information is similar, in that offering up the data enables others to retrieve it themselves. In addition, it allows members of the public to comment, challenge or provide additional insight about government initiatives. “It’s responding to a public desire for greater transparency in government,” says Wiseman. “Transparency is not just about bureaucracy, but also the elected officials and holding them accountable for spending.” As for open dialogue, engaging citizens in the inner workings of municipal government has several benefits. Most notably, it gives the citizenry a voice that was previously only heard during municipal election season. Wiseman says that “a high percentage of the largest Ontario municipalities” are generally doing quite well with open data.

GOVERNMENT TRANSPA RE N CY

He thinks progress has been slower when it comes to both open information and open dialogue. These areas require a broader organizational and political commitment. However, there are specific examples where great strides have been made, notably in Guelph and Kitchener. “I don’t think our elected officials have really bought into open information yet,” Wiseman says. “Getting there requires political leadership, in turn derived from public demand. I don’t think we’ve had that public pressure in Canada compared to the U.S.”

Information and transparency Far from being opposing concepts, good information management is actually the essential foundation for open government. “In order to provide open data or information, you need to have a wellorganized information management program – know what information you have and classify it by sensitivity,” says Wiseman. “It takes work to define. But once you’re done, access should be one of the goals. Access to information and protection of privacy are actually two complementary objectives.” Paul Broad, a lawyer at the London, Ont. office of Hicks Morley Hamilton Stewart Storie LLP, agrees with Wiseman. He specializes in access requests and privacy matters relating to the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA). “The notions of open government and information management aren’t in opposition,” says Broad. “The public should have access to government information, that’s clear. But at the same time, municipalities need to have a protected space to do what they need to do. In some cases, that means access to information must be limited.” He says one way to facilitate information management is through proactive disclosure. “This is about making information public where it is feasible, while

working within statutes like MFIPPA. In doing that, it allows you to systematically determine what needs to be protected.” As an example, Broad refers to municipal work tenders. “They clearly involve confidential financial information and proposals, but there is also a heightened public interest due to public funding,” he says. “There are ways within MFIPPA to isolate truly confidential information, but make the remainder of the information more transparent. It’s a balancing act.” Broad says there are three main areas where access requests for information may conflict with MFIPPA. Requests for personal information top the list, but such disclosures are extremely limited under privacy legislation. Second are third-party information requests, where a third party has provided confidential information to the municipality. There is a specific process that must be followed to notify the third party of the request. Finally, Broad says that any government organization has the right to protect its own financial and competitive interests in business – “so a range of exemptions can kick in there.” Good information management practices – such as identifying which information can be made public in advance and limiting the collection of data to only what is needed – can lead to a much higher level of open government. Broad says MFIPPA challenges can be cumbersome and expensive, which is why proactive disclosure is the better choice. “If your goal is open government, the more you can build proactive disclosure into your processes, the more it will streamline things,” he says.

The way forward Wiseman says that where open data is concerned, it’s best to start with a small program and gradually increase the scope.

“It requires a commitment,” he notes. “It’s something that is very difficult to pull back from. If you’re going to provide a data set, you need to be assured that you can continue to provide it.” Also, the success of open government initiatives may be hard to gauge. “It can be difficult to document the benefits and translate it into something real you can show management,” says Wiseman. He adds that there are some clear examples of success, including the case where the City of Ottawa made recreational program information publicly available and subsequently noted an increase in registrations. In the end, however, Wiseman notes the public is one of the biggest drivers of open government. “They are expecting to be able to find stuff quickly on their mobile devices,” he says. That in turn fuels the expectation to begin producing that information in a way that allows it to feed into apps. Meanwhile, it’s clear that open government is transitioning from the new frontier into the new normal.

Consulting Services Include: • Municipal/Education Development Charge Policy and Cost Sharing • Water/Sewer Rate Setting/Water Financial Plans • Building Permit/Planning and Development Fees • Long Range Financial Planning for School Boards and Municipalities • Asset Management/PSAB Compliance • Fiscal and Economic Impact, Service Feasibility and Needs Assessment • Growth Management Strategies/Employment Strategies • Land Needs Studies, Demographics and Fiscal/Economic Impact Analysis

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Municipal Monitor

Going Lean

Petr Vaclavek/Shutterstock.com

in Municipal Government

Q2 2016 www.amcto.com

LEAN SIX SI G MA

Focus on your customers, reap the financial rewards By Tammy Carruthers, WSCS Consulting Inc.

overnments often think improving services will cost them more and lead to increased taxes. They are constantly under pressure to do more with less which has always focused on traditional cost cutting measures such as downsizing, delaying infrastructure projects, cutting telephone lines and so on. Ultimately, this results in doing less with less but costs more in the long run. Very rarely have governments examined the actual work being done or why they do it. Service reviews have often focused on becoming more efficient, but usually that has meant eliminating services as opposed to improving or increasing them. Streamlining is thought of as job cuts, as opposed to eliminating non-value added activities in processes, usually imposed by some out-dated bylaw or policy. The bottom line is that municipalities cannot keep doing the same things and expect different results – that is Albert Einstein’s definition of insanity. Governments need a new playbook if they want to improve services while lowering costs. They need to find capacity in their employees to redirect the energy to important services by eliminating things that do not need to be done. The answer is Lean Six Sigma (Lean).

What is Lean? Municipalities can use Lean to do more and create value while reducing costs. First and foremost, it works. But it takes discipline and commitment. Some of you may already be acquainted with Lean as it originated in the manufacturing industry and has been extremely effective in the health care industry. Lean is based on the Toyota Production System for producing high quality, low-cost vehicles. The concept focuses on reducing waste. In this case, that means any activity that does not add value to the customer. It

was originally developed by Motorola, which focuses on the elimination of defects and variation in processes and products that are costly, both in terms of duplication of effort and unsatisfied customers. None of us want to purchase a service or product that has a defect nor do we want to have different services than the next person. By eliminating defects or errors in government services, you eliminate duplication of effort and you have happy customers. As much as we like to serve customers in government, we want to do it once and do it right. If we do, we will improve services and we will reduce costs.

Why it’s different Lean’s focus is not about cost cutting, but that is the byproduct of its implementation. The focus is on the customer. That, in itself, is a revolutionary way to look at government processes. By focusing on the customer, Lean is about eliminating waste or nonvalue added activities in processes. If the activities do not add value to the process, why are you doing them? The customer, not the process, defines value. A value-added activity is defined as follows: 1. The customer is willing to pay for it 2. It must change or transform the service or product; and 3. It must be done right the first time (eliminate defects and errors) Immediately, one can see that this can be challenging in government, as the customer is not always clear and/ or not necessarily the person(s) receiving the service. For example, who is the customer of property standards bylaw enforcement? The person who is directly receiving the service, that is the enforcement of the standard, likely does not even want this service. In fact, they would probably prefer the municipality not perform this service for them at all. The customer, in this case, is the greater Municipal Monitor

LE A N S I X S I G MA good or all of the other taxpayers in the municipality. In terms of the first criteria, it can be argued that the customer is not willing to pay for any service. But, I would propose that most government customers are willing to pay for value. In the case of our property standards example, the customers, being all taxpayers, would need to believe that the service is important enough to pay for, which is articulated to the municipality in many ways. The second criteria are more difficult to determine. There are many steps in government processes that do not change anything. For example, inspections and approvals of other people’s work would not change the service. Or if it does change the service, then the third criteria for value was likely violated. That is, the step was probably not done right the first time and the inspector changed it so that it is right. Here is the key to think about – if you are redoing everything that your employees are doing, they will likely not do it right the first time. They know you will check it, so they are less likely to do their best work. And how does the employee feel about their value? The challenge is to review your processes and identify these non-value added activities and strip them where possible.

Challenges While it sounds simple, it is astounding that few governments have looked to Lean as the solution. Why? Because

many view the methodology as a costcutting exercise as opposed to a service improvement philosophy. With this idea, there is a fear that the methodology is just about cutting jobs. It has also been touted as the next fad and that it doesn’t work for government. This is unfortunate as it couldn’t be farther from the truth. There are challenges in implementing Lean in governments, however. It has to be sustainable and supported from the top, right through the entire organization. Another key challenge can be identifying exactly whom the customer is, as discussed earlier. There are many services that municipal governments perform where it isn’t clear who the customer is and often the process focuses solely on policies that have been in place for many years and never challenged. The other hurdle that Lean presents is that it requires data and information. Many governments do not collect information on their processes or how they perform nor do they collect information about the level of satisfaction with the way in which they perform duties. As Peter Drucker states, “If you can’t measure it, you can’t manage it.” Lean is why you are seeing savings in the millions in the cities of Kawartha Lakes, Ont., Fredericton, N.S., Denver, Colo., and Dallas, Texas, to name a few. You are also seeing changes in state and provincial governments that are improving turnaround time

of applications for permits and tax refunds of up to 90 per cent – all with fewer resources and done right the first time. Simply put, Lean is the best hope for municipal governments to deal with the challenges of crushing demand and limited resources. Since government is different than the private sector, there are other considerations regarding value, such as requirements of law and reduction of financial risk. However, it is important that governments do not freeze their improvement efforts only on this basis. Often governments use this as an excuse not to change, rather than how it can change within these parameters. How is this change possible? Focusing on time-wasting processes and eliminating them will improve services and result in happier employees and customers. This additional capacity can be channelled to provide additional services and the cycle of increased customer satisfaction continues, as the ultimate outcome is significant savings. Lean is not a fad – it has real promise. Simply, we don’t have enough resources to keep up with ever-expanding and more complex municipal workloads. That’s why you need Lean, as it doesn’t simply focus on cost reduction but rather the outcome of increased capacity to take on bold new initiatives and think beyond. Tammy Carruthers is the Principal and CEO of WSCS Consulting Inc.

Things to Consider about Lean: 1. Lean focuses on operations and rethinking the way we provide services and what services we provide while focusing on the customer. There is nothing more wasteful than something that should not be done at all. 2. Lean involves employees. While you need support from the top, only employees working in the process know how it actually performs, not how it should perform. As well, they are best to provide the solutions provided they are given the freedom and opportunity for input. 20

Q2 2016 www.amcto.com

3. Lean has a measurable impact on time, capacity and customer satisfaction. The methodology produces amazing results, often in as little as a week. Typical results for municipalities include: • 50-75 per cent reduction in non-value added activities • 80 per cent faster processes • 50 per cent drop in customer wait times • Doubling of capacity • Reduced costs

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