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Serving Local Communities - The US Experience
SERVING LOCAL COMMUNITIES - THE U.S. EXPERIENCE
At the 1995 Annual Conference of the Queensland Division held in Yeppoon recently guest speaker Bill Hansel], Executive Director of the International City Management
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Association delivered a spirited paper which began with the premise embodied in the American Declaration of Independence that governments, including local
governments, exist to secure the rights of life, liberty and the pursuit of happiness for all people in the
community. To this end, says Bill, local government managers are the guardians of community - dedicating their professional lives to the enhancement of the infrastructure which makes up the community. This infrastructure has physical,
demographic, civic, cultural, social, economic, and educational
components - each requiring varying degrees of attention from that local government. FOUR ESSENTIAL FEATURES In order to address these responsibilities democratic local
governments require four features - First, they must have sufficient power to define the unique and special features of their own community - to act as independently as possible. Second, they must be financially self- reliant, having sufficient independence to generate required revenues from as broad a range of sources as possible with the freedom to expend their resources for the public purposes they choose. Third, they must be held accountable for their performance - primarily to the citizens (customers) they serve but also to the central government(s). A culture of measuring performance and establishing benchmarks for continuous improvement must be present.
Finally, these governments must have flexibility to design and deliver the services needed to secure those
fundamental rights for all citizens. EXCELLENCE AND REINVENTION Bill illustrated the importance of these elements by reference to events of the past 10-12 years. In Search of Excellence, the best selling treatise on organisational effectiveness published in 1982, highlights three characteristics that exemplify excellence: 1) the desire and drive to serve customers, 2) a commitment to the people of the organisation who make productivity occur, and 3) a continuing emphasis on innovation. ' This emphasis on innovation has led legions of local governments around the world to evaluate and often revamp their operations. Terms such as "reinvention" and "reengineering," used liberally throughout the industry press, suggest a renaissance in local government operations that rivals the industrial revolution in Great Britain and the U.S. With public confidence in industrial - era bureaucracies currently at an all- time low, local government issues have become much more complex. In the United States, for example, diminishing central government aid and shrinking yields from various taxes have severely cut city and country revenues. At the same time, pressing social concerns - such as crime and violence, homelessness, children at risk, inequities in education, the AIDS epidemic, environmental problems and population diversity issues - have created new time and resource
demands. The revelation that citizens are customers and not captive to community inefficiency and waste also has brought about a major shift in the way local government managers conduct their business. Doing more with less has become a way of life. Nearly a decade later another major work would build on these principles and have an important impact on public sector organisations. Reinventing Government was
published in 1992 and has become the major treatise of the U.S. government reinvention movement. Gaebler and Osborne's work was based not on theory but on observations of practical changes and successes in specific operations of government. They suggested 10 desirable traits in the operations of government: 1 CATALYTIC GOVERNMENT - moving from rowing (doing) to steering (guiding or directing) 2 COMMUNITY ORIENTED GOVERNMENT - changing from serving to empowering citizens 3 COMPETITIVE GOVERNMENT - insisting upon competition in all elements of service delivery 4 MISSION DRIVEN NOT RULE DRIVEN GOVERNMENT 5 RESULTS ORIENTED GOVERNMENT - measuring outcomes, not inputs 6 CUSTOMER DRIVEN GOVERNMENT - insisting upon quality service 7 EMPOWERING GOVERNMENT - earning a return on community assets, not spending money 8 ANTICIPATORY GOVERNMENT - focusing on prevention, not cure of social problems 9 DECENTRALIZED GOVERNMENT - moving from hierarchy to participation 10 MARKET ORIENTED GOVERNMENT - changing in response to market forces These movements have led in the U.S. and in Australia to a greater
empowerment of local government in a range of areas and to a trend toward financial self reliance through that empowerment.
ACCOUNTABILITY AND PERFORMANCE In pursuing this theme, Bill went on to say that local governments which have been broadly empowered and granted significant financial self- reliance must be willing, and even eager, to measure their performance and to establish benchmarks for continuous improvement. ICMA has been involved with performance measurement for a long time. ICMA's first book in the field, Measuring Municipal Activities was published in 1943. Its authors, Clarence Ridley (former Executive Director of ICMA) and Herbert Simon (a Nobel Prize winner), were great visionaries. Over time, measuring effectiveness became generally accepted as a good management practice, but local government managers needed practical techniques for collecting and analysing data on performance. In a collaborative effort in the early 1970s, ICMA joined the Urban Institute and several local governments to develop and apply effectiveness measures. Two
important reports came from that work. The first was entitled: Measuring the effectiveness of Basic Municipal Services: Initial Report. The second, revised and reprinted in 1992, is How Effective Are Your Community Services? Procedures for Measuring Their Quality. This later work provides specifics on measures, tools, and techniques. Harry Hatry of the Urban Institute and one of the foremost experts on performance measurement in the United States provided the research that went into these and other publications. ICMA also worked with the National Science Foundation and several other organisations, including the national Fire Protection Association (NFPA), in the late 1970s to develop national comparative performance
measurement for a variety of local government service delivery areas. ICMA is also developing a CD-ROM on performance measurement. It will provide training and a hands- on primer on performance measurement, including how to choose and use performance
indicators. It will allow a community to design its own indicators and provide those standard measures identified by the governments in the Consortium. It is envisioned that a second series of software will provide shells, or templates, that will allow any local government to collect its own data and then make comparisons in specific service delivery areas via a national data base. Finally, ICMA will establish a Centre for Performance Measurement which, working with the Urban Institute, will analyse data and identify and describe best practices. ICMA's goal in all of this work is to help local governments be more accountable for their performance; to routinely measure that performance; and to allow them to set community benchmarks for continuous improvement. ALTERNATIVE SERVICE DELIVERY MECHANISMS Traditional service delivery by local governments in the U.S. is being closely scrutinised and in some cases radically overhauled. Alternative methods commonly being used
include - * Contracting out - where private and non profit organisations are paid by the local government to do the work. * Franchising and Concessions - where private or non profit
organisations do the work and are paid directly by the citizens they serve. * Subsidisation/Support - where
private or non profit groups are given financial or in kind assistance to deliver the service at a reduced cost to the community. * Volunteers - where a volunteer
workforce is provisioned to deliver the service throughout the world that aspire to succeed must understand this basic principle. Gone is the option of simply accepting the status quo and continuing to incur expenditures on a local government's behalf. Gone, too, from many local government operations, are the layers of unnecessary, bureaucratic controls that for years choked the process of innovation. Instead, communities experiencing the greatest success have adopted the battle cry of excellence and reinvention. Unlike the
governmental units of yesterday that often stifled even the suggestion of change, today's local government officials must encourage their
employees to be creative, to deviate from the norm, and to look for new solutions to old and new challenges. Adequately empowered, financially self-reliant, routinely measuring performance, and seeking competitive service delivery
alternatives, local governments will enter the next millennium fully
capable of "securing those rights" - the task for which they were created.
Peter, Thomas J and Waterman, Robert H., Jr. 1982. In Search of Excellence: Lessons from America's Best -Run Companies. New York: Harper & Row.
* Public Enterprise Systems - where private sector principles are applied to establish public enterprises using public assets and value systems to create profits and generate non traditional income streams. SUMMARY Bill summed up his messages as follows: - innovation, by its very nature, requires deviation, and local governments Municipal Manager, DECEMBER 1995 - Page 15
VALE ALAN GEORGE MILTON F.I.M.M.(Merit)(Life)
Alan George Milton whose local government career spanned a period of some 30 odd years passed away in the Toowoomba General Hospital on 25 September. Alan's career in local government commenced with the Sarina Shire Council as senior clerk following a period of time with the former Main Roads Department both in Mackay and Townsville. Alan's first appointment as Shire Clerk was with the Mirani Shire. In 1956 Alan accepted the position of Shire Clerk with the Aramac Shire and in 1970 he was appointed to the position of Deputy Town Clerk with the Toowoomba City Council. During his period in Toowoomba, Alan joined Rotary and was co- founder of the Western Districts Junior Cricket Club. Alan was awarded a life membership of the Club in 1989 upon his return to Toowoomba. Alan Accepted the challenge of City Administrator with the Ipswich City Council in 1970 and resigned from that position due to ill health in July 1984. At the Ipswich City Council's ordinary meeting in September Councillors paid tribute to Alan's service, dedication and leadership during his period as City Administrator. During his service with the Ipswich City Council Alan served as President of the
Queensland Division of the Institute from 1982-1984. Alan's service to local government was recognised in 1992 when he was awarded the Order of Australia Medal, an award so richly deserved. Alan will be remembered by his many friends and colleagues for his great sense of humour, quick
repartee and friendly disposition. The Institute extends to Nell and her family our most heartfelt sympathies.
The announcement of the 1995 Municipal Manager of the Year at the Institute Dinner held in association with the Divisional Conference in Yeppoon, invested Eddie McEachan, CEO of Johnstone shire, with the title. Queensland President John Cuddihy indicated that Eddie's sound, effective and innovative management of the Johnstone Shire Council had been a major factor influencing the selection committee's choice. The committee was most impressed by Eddie's highly innovative approach to environmental management, his enthusiasm in pursuing the local government reform agenda and his initiatives in establishing local, national and international co-operation in improving local government service delivery. Specific examples include Johnstone's participation in "Local Agenda 21" Model Communities Program, conducted by the International Council for Local Environmental Initiatives (the only Australian representative Council), the Shire's success in winning the Australian Local Government Innovation Award in the Environmental Initiative category in 1993, and also receiving the award for Best Rural Council. Eddie has attended various international forums on local government's role in environmental management, including Japan and the United Kingdom. This year, both Eddie and his Shire Council received recognition, as he was also presented with a Local Government Excellence Award on behalf of the Johnstone Shire Council.
Last year's Municipal Manager of the Year JOHN CUDDIHY (right) presents EDDIE with the symbol of the Award for 1995.
by Bill Jaboor, Chief Executive Officer, Greater Shepparton City Council
In my view, the four key elements of the community economic development process are:
* COMMUNITY CONFIDENCE
* COMMUNITY LEADERSHIP
* COMMUNITY TEAMWORK
* COMMUNITY PLANNING
It is interesting to note that these four issues do not necessarily require huge financial allocations, rather, they require time, commitment, motivation, perseverance and enthusiasm.
Before going into detail, I want to explain that economic development is not merely increasing wealth or creating jobs or attracting industry. Rather it is a form of community growth and change which is a combination of many factors and variables leading to a diversity of outcomes. Peter Kenyon is a Director of IDEAS (Initiatives for the Development of Enterprising Actions and Strategies) based in Western Australia, and I like Peter's
description, which states that -
"Community economic development is a process of identifying and harnessing local community resources and opportunities to
stimulate sustainable economic and employment activity.
It is about communities utilising their human, physical and financial resources to maintain or enhance local development opportunities and their quality of life. It is based upon the simple premise that each
community has within itself or within its grasp, considerable capacity and opportunities to influence its
economic future." appreciation awards and events.
COMMUNITY CONFIDENCE
In this context, I mean belief and expectation, faith, desire, conviction - in essence a "CAN DO MENTALITY". During 1989, I visited the U.S.A. on an IMM Scholarship to study economic development in provincial cities.
I did not discover precise plans which could be put in place to ensure development. Instead of clear cut solutions, I found a need for us to change our attitudes, to be more confidence, and instil this belief and faith in our local communities.
Remember the golden rule - "There are three types of communities: Those who make things happen! Those who watch things happen! Those who wonder what happened! Given that at least 85%-90% of economic growth is from within the community, local confidence and enthusiasm cannot be understated.
American experience has clearly shown the importance of community confidence and that more jobs are created through business expansion than through new business startups. There are a number of initiatives which focus on business retention and expansion and these include:-
* Campaigns to examine the
development of value-added products and product diversification (turning existing local products into consumer ready goods). * Creation and strengthening of business support networks such as business sector associations,
"Business After Five Clubs" (where business people visit different
enterprises and resource agencies to learn new ideas, resources, and
processes), "Entrepreneurs Breakfast Club", mutual support networks for sharing resources and expertise, etc. (Source: The IDEAS File 1990, Cottesloe, W.A.) For the attraction of new industry, community confidence is also
imperative. It is therefore important that all citizens become ambassadors for the community, and this is
achieved by talking up the success, no matter what the size of the enterprise. Even if your community is not the final selection, just putting in a bid or reaching the short-list sends a very positive message. In the attraction of new industry, it is worthwhile to note that a study conducted by the US Chamber of Commerce in 1984 found that 100 new manufacturing jobs bring into the community:-
* 102 more families
* 61 more school children
* 202 more people, plus 64 employed in non -manufacturing or service industries
* $1,948,353 more personal income per year * an increase in retail sales of
$1,477,453
* Training programmes to strengthen management and marketing
* seven new retail establishments
capacities of local businesses. * Sponsorship of local business
(Source: Alabama Co-operative Extension Service) Municipal Manager DECEMBER 1995 - Page 17
Shepparton City Council, substantial economic growth has occurred in the small township of Tatura. Existing food processing industries have expanded through investment, of approximately $75 million. The consensus style of leading
organisations and governments has failed to achieve the economic and financial demands of global
economic competition.
Local confidence is booming as these home -town enterprises flourish
within a relatively small community of 3,000 people. Tatura's industries are expanding so rapidly, it is difficult for the local infrastructure to keep pace.
The following extract from Jack
McCall's book 'Small Town Survival Manual" sums up the importance of community confidence.
"You can change the future of your community or you can sit back and allow whatever happens to happen. You can create your own destiny. However, the cost is high. It means organising a group of people who are willing to give of their time and energy to make things happen. It means believing in yourself and your organisation. It means putting aside individual differences to work together for the good of the community.
It means working together to decide what you want for the future and then working together to make it happen. YOU CAN DO IT. PEOPLE ARE DOING IT"
COMMUNITY LEADERSHIP
By this I am referring to strong,
aggressive local leadership. Someone who will influence others, who will guide and direct the community. The value of strong leadership has received considerable discussion lately. I recently attended a lecture by Elizabeth Proust, Federal President of the Royal institute of Public Administration Australia and former Chief Executive officer of the City of Melbourne, who highlighted the need for strong leadership by stating the facts as: -
complete levels of middle to upper managers have disappeared from western democratic organisations in Large ideologically driven
organisations, such as trade unions and the rank and file membership of major political organisations, have experienced dramatic decline in numbers...
... And, perhaps of most relevance to the future, the technological, economic and cultural changes of the world we live in have created a level of uncertainty and anxiety about the workplace of the future to the degree that people are actively seeking strong leadership to help deal with this change in organisations."
In summary, Ms Proust said that the Australian public sector has been OVER -MANAGED AND UNDER -LED
The Manager/Leader dilemma is
particularly highlighted by Stephen Covey in his text "The 7 Habits of Highly Effective People": - "Management is doing things right; Leadership is doing right things. Management is efficiency in
climbing the ladder of success; Leadership determines whether the ladder is leaning against the right wall."
Community economic development needs leaders in preference to managers. It needs to be promoted and emphasised so that the key
players, the larger industries in town, want to be involved. In the States, it is seen as very prestigious for an enterprise to have its senior
executives leading the Development Board or Chamber of Commerce. We need the right high profile people involved in economic Development, people who will associate themselves with a bid or development, people who will play leadership role and will run strongly with a project and take the risk of failing - but at least it is seen that they have given their best With the formation of larger, more regionally based local government units, it is easier for the Council to provide an economic development leadership role.
One person is able to represent the wider community and region by providing the direction and stimulus for growth.
COMMUNITY TEAMWORK
This aspect is imperative; the Council must collaborate with the community. The Council must unite all the players with the common objective of economic growth. We don't have to agree on every issue, but the desired objective must be agreed upon. If this partnership does not occur, it
becomes difficult, if not impossible, to achieve results.
Benalla's successful bid for the $150 million Australian Defence Industries plant involved three local
government agencies, the community in general, community groups such as the Chamber of Commerce, Land Care groups etc. The bid also had the support of regional organisations and the state government (including both sides of politics). Although all these diverse groups and organisations were very difficult to manage, I am sure this team approach contributed to success.
Other ways of stimulating community teamwork can be illustrated by:-
* a strong sense of identity as a community or a distinct territorial area;
* co-operation between the public, private and community sectors; * mechanisms to maintain local interest and involvement beyond the first rush of enthusiasm;
* an ability to positively harness and manage community conflict;
* the integration of economic, social, cultural and environmental
objectives.
(Source: Peter Kenyon, Clues for Small Town Survival).
Other ways of encouraging teamwork is for the Council to become a financial and active member of community based promotional
groups, like Chambers of Commerce, Traders Associations, etc.
Joint projects involving these groups and other local institutions also demonstrates a team commitment. In Benalla, a small business growth centre was established with a
Management Committee consisting of Council, TAFE and Chamber of Commerce representatives. This initiative demonstrated the importance and benefits of
meaningful partnerships.
The community teamwork concept can also be significantly enhanced by the formation of specific project groups to target identified industries. These groups would comprise both public and private sector personnel to market and sell the area.
A distinct advantage of the project team concept is the credibility derived from having technical people involved in presentations and promotions.
An adjunct to this concept is the initiative of having existing industry managers meet with prospective developers to explain the advantages of establishing within the area.
An important illustration of
community teamwork for achieving economic growth is the tourism sector. In this situation it is
imperative that the Council and local tourist operators work together in promoting and marketing the
community as a tourist destination. There are many success stories where community teamwork has assisted local tourism in economic developments. The Western Australia Tourism Commission has
stated that:
visitors overnight, each night, to have the same economic impact as a factory with an annual payroll of $1.5 million.
The same 20 carloads of visitors
arriving each night creates 21 jobs in the local economy each year". A specific example of tourism teamwork in achieving economic growth is the success of the Beechworth Bakery in North East Victoria. In this small town of 3,000 people, the Council and community have promoted a "heritage" theme. A baker, named Tom O'Toole saw the potential of exploiting this theme and centred the decor and promotion of his business around "good old-
fashioned food and hospitality".
The business commenced eleven years ago in run down premises
employing 2 part time staff. Today, Tom O'Toole's bakery draws customers from throughout the region and state. The business now employs 62 people and seats 160, with plans for expansion. Its annual turnover is between $2.2 and $2.4 million. Remember, most of the lines in Tom's bakery cost less than $2.
We all know about SWOT analysis, strategic plans and the like, and they are vital to successful economic growth. Planning identifies your target and develops the strategy to achieve the desired outcome.
Neil Noelker, a former CEO at Swan Hill and now working with Paladan Strategies, has just returned from studying Post Graduate Economic and Regional Development at the University of North Carolina. He claims that economic development forms the basis of all US domestic policy. Neil's studies emphasised economic development as a rationally planned approach with the focus more and more based on hard economic planning and analysis.
Neil states that -
`this economic analysis uses data and other empirical information to gain a better understanding of a local economy, its important components, how it has changed and is changing over time, and its strengths and weaknesses as a location for economic activity'. analysis model. My belief is that it is very important to commence the planning and economic analysis process, but the degree of sophistication is dependent on local requirements.
I know of an instance where a group of local industries were brought together in a strategic planning exercise. The group collectively identified a perceived need for a box labelling plant in town to satisfy local requirements. The Economic
Development Board targeted a small enterprise to fulfil this local function.
Today, that small enterprise is a nationally recognised labelling
company still based in the small town of its origin, but employing over fifty people.
it is also imperative that the Council plan to fast track all development applications. By actively demonstrating support and assistance to business as they are guided through the statutory planning process, the Council is sending out a clear message of being pro -active towards economic growth.
In summary, let me emphasis that these same four principles of community economic development - * COMMUNITY CONFIDENCE
* COMMUNITY LEADERSHIP
* COMMUNITY TEAMWORK
* COMMUNITY PLANNING
apply equally to either large scale corporations or small emerging enterprises employing only one or two people.
If you can get it right for the small enterprises and facilitate their
confidence, support and growth, then the climate will be set for the large scale opportunity which may be just around the corner.
The work that Neil undertook in the States certainly highlights the need for very detailed planning. However, many communities are not prepared to devote the time and resources to the extent required in neil's economic Municipal Manager - DECEMBER, 1995 - Page 19
DOING IT ON THE DOWNS EDITORIAL
The Darling Downs and South West Branch of the Institute have had a big finish to 1995, with John Cuddihy pulling up stakes from Warwick, Suzette Beresford from Paroo picking up the gong as Division Junior Vice President and Tony Whelow from Chinchilla elected to the post of Divisional Councillor.
The Branch's half yearly conference held in Toowoomba on 24 November included topics on Local Laws, Natural Justice, Training Initiatives and Media Relations. Their Annual Conference is set for Cunnamulla in May 1996.
Arranged by Colin O'Connor, CEO of Wambo Shire, the Branch's Golf Day held at Dalby in November attracted over 220 starters from across the Downs.
Terry Brennan (Left) CEO Stanthorpe and Tony Whelow CEO Chinchilla in the swing at the DDSWQ Branch Golf Day in Dalby.
NEW INITIATIVE IN DIVISION'S MANAGEMENT STRUCTURE
The Divisional Council elected at the recent A.G.M. is to have a new look management structure with Councillors being allocated "portfolios" or areas of interest within the Division's activities on which to concentrate specific attention. Everyone on the Council gets a job with the portfolios being: - The Local Government Reform Agenda Policy and Coordination Branch Liaison and Journal Support Professional Development and Ethics Training and Development Bursaries, Grants and Conference Liaison Member Services Workplace Issues More details will be released as the new office bearers develop their plans. Maurie Tucker's paper on National Competition Policy
illustrates how much there is yet to do in the reform process in Queensland. The major initiatives launched last year - Corporate Plans, Accrual Accounting, and Local Laws have yet to bear fruit and already new issues of EEO Codes of Conduct as well as National Competition Policy are breaking upon us. It is not enough to wait for others to show the way as in many cases there is no "one way". We can however work together to set up models and frameworks to act as guideposts for individual variations on a central theme. There is a great opportunity for the Division as a whole and for the branches with common interests to support one another in researching and
developing suitable proposals that will help smooth the implementation of new
requirements. If positive progress is to be achieved the IMM must begin leading and at the same time supporting its own members in their challenging task. In this time of change those who display high professionalism and perseverence will reap the rewards that have tended to elude some of our colleagues in other parts of the country where the reform process has overwhelmed existing
practitioners. A strong showing by the IMM in facilitating change through an active program
involving its members will assure both a viable local government system and therefore an assured future for local government
management as a career Ed.
I.M.M. Educational Bursaries
Nominations are called for the 1995 Institute of municipal Management Queensland Inc. Education Bursaries.
GUIDELINES
1. ELIGIBILITY:
Eligibility to apply for a bursary shall be restricted to: -
(a) students completing their Grade 12 on full-time or part-time education, (b) students intending to pursue Tertiary studies in a discipline oriented toward Local Government, (c) students who have their enrolment at a Tertiary institute confirmed, and (d) students being children of persons who, at the time of nomination, are employed by a Queensland Local Authority. To be eligible for a bursary the student must satisfy all the above criteria.
2. EVALUATION:
Nominations for a bursary shall be evaluated on the basis of: -
(a) the student's Tertiary Entrance Statement (b) any submission made in 'conjunction with the nomination, relating to particular achievements of the student in a given field of study relevant to Local Government, and (c) submissions made on behalf of the student based on circumstances of financial need coupled with a substantiation of aptitude for continuing education.
3. ADMINISTRATION OF THE BURSARIES:
Two bursaries will be awarded each year as: -
(a) the J C Slaughter Bursary for boys, and (b) the J R Winders Bursary for girls
The awarding of the bursaries shall be made in three annual advances; first year $450, second year $450 and third year $600. The first advance will be made upon the awarding of the bursary. The successful student shall submit to Divisional Council at the conclusion of each year, advice of his or her results. The payment of successive years' advances will be dependent upon successful completion of each year's course of study.
SUBMISSIONS IN ACCORDANCE WITH THE ABOVE GUIDELINES SHOULD BE LODGED WITH: THE EXECUTIVE OFFICER I.M.M. QUEENSLAND INC. P.O. BOX 2173 FORTITUDE VALLEY M.A.C. 4006
ON OR BEFORE JANUARY 31, 1996
