2015 FOLG Summit The journey to date LG is facing unprecedented challenges Can LG innovate its way...

2015 FOLG Summit

The journey to dateLG 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 forces1. Urbanisation2. Global

connectivity3. Accelerated

technology4. Ageing

population(McKinsey 2015)

. 4

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

5

The Internet of Things (IoT)

6

“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

Cisco IBSG projections, UN Economic & Social Affairs http://www.un.org/esa/population/publications/longrange2/WorldPop2300final.pdf

2003 2008 2010 2015 20200

10

20

30

40

50

6.307

6.721 6.894 7.347 7.83

Billi

ons

of D

evic

es

World Population

50Billion

SmartObjectsRapid adoption rate of digital infrastructure

5 x faster than electricity & telephony

“Things” per person

Inflection Point

8

Volvo’s truck driverless convoy in Europe – think Hume Freeway?https://www.youtube.com/watch?t=80&v=zAiTySwWTiQ

Daimler’s driverless trucks

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 2005-2015Why 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

67%

4%

25%

4%

1. Yes

2. No

3. Partly

4. Unsure

change in the next 5 to 10 years?Does Local government require transformational

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?

Co-designplanning

Technology enabled

opportunities

Place based delivery

Councils Leading Change

Council-centric decisions

Fragmented resourcing

Service costs are rising

LG at the crossroads

Leading for future success

Colugo at the cross-roads

Where we need to be – Councils of the Future

Where we are now– business as usual

Performance and financial

challenges

Ad-hoc collaboration

Two speed LG

Increasingcommunity

expectations

Poor spatial awareness

Strategic regional

collaborations

Community driven

participation

Broker of key services

Adaptive Community

cultures

LG at thecrossroad

s

A question of leadership

2014 FOLG Summit: propositions Commission of Inquiry into Rewiring Public Services to Improve Community Outcomes: Propositions from the Commission

1. Local Government will take control of its own destiny and stop playing the victim and stop cap in hand whingeing behaviours

2. In future, budgets (negotiable elements) should be set by using crowd- sourcing methodology to determine priorities and services for the year.

3. In future councils will work collaboratively for delivery of back office services via shared services arrangements.

4. In future councils will exercise leadership with other tiers of government in a whole system approach.

5. 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

6. Councils will commit to moving to IT that is designed to enable genuinely transformative change.

7. 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:

1. Business as Usual

Intervention

2. Back to Basics Community dissatisfaction

3. Transform via collaboration & innovation

LG wins a seat at the table to ‘rewire’ public services (WoG)

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.

UKLocal 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 talkLeaders 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)

Today in street lighting

Vic Qld NSW Tas SA WA NT ACT0

50,000

100,000

150,000

200,000

250,000

300,000

Australian energy efficient roll outs

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

Port StephensNewcast

le

Lake Macquarie

Maitland

DungogGloucester

Cessnock

Singleton

Muswellbrook

Uppoer HunterMajor 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

• Eastern• Casey Cardinia• Greater Dandenong• Melton• West Gippsland• Goulburn Valley• Mildura• High Country• Wimmera

Initial Libraries

• Latrobe• Yarra• Gannawarra• Campaspe• Central Highlands• Swan Hill• Mitchell• GOTAFE• Wodonga• Indigo• Towong

Other Victorian Libraries

• Ashfield• Burwood• Botany Bay• Marrickville• Kogarah• Strathfield

NSW Libraries

Swift library consortium• 44 Councils in Victoria and NSW• One system in the cloud • Members can access any book on the system• 3.5 million books• 795,000 members• 100,000 transactions per day• A saving of 30% in annual operating expenses

• No downtime

• No longer the need to perform system monitoring or system backups. Automatically receive new updates of operating system at no cost.

• Improved user experience

Innovation in local government

Rowena MorrowInnovation LeaderBoroondara Council

Internal capacity building

Innovation Forum Innovation Academy

Innovation process

Hawke’s Bay Regional Councils (NZ)

‘The Board is continually looking for other opportunities for shared service initiatives to be explored. A number will flow from the strategic workshop …………’

•Roger Matthews, Transformation Manager

Victorian Local Government Enablement Platform

• LG Cloud platform to enable collaboration between Councils and with other levels of government and vendors

• Proof of Concept– 6 Councils– Internet services – Mail Gateway– Collaborative storage– Shared applications – Security

A Sector Approach to Cloud

Sector-wideLocal Government Cloudas a Platform for Collaboration

Retain relationship with preferred vendor cloud

Councils remove the need to maintain multiple relationships into many different clouds.Access all your clouds through one secure relationship into one secure cloud.

Achieve the right scale Improved productivity by doing things at the scale that gives the greatest productivity, which could be local, regional or state-wide collaboration.Makes dealing with State and Federal Government more efficient

Foster greater collaboration

etc…LGCloud

Page 59

Now

2016

2018

Colla

bora

tive

Inno

vatio

n

LG Cloud Platform – shared space for collaboration

Not all the councils will want to or be able to collaborate via the LG Cloud

Some collaborative projects will embrace the LG Cloud and run with it.

Some projects chose to run independent of the LG Cloud.

Right now the LG Cloud appears too esoteric for some projects to embrace

The early adopters will be key to seeding the concept and demonstrating its merits.

Council

Cardinia Shire Council

Thursday 13 November

Technical Transition to Activity Based Working

Based on the mapping the following services were proposed as candidates for consideration

1. State wide Employee Competency Development, education and training

2. Employee Satisfaction Measurement3. IT Enablement services, web, email,

DR, etc4. Spatial Data Management and

Visualisation5. Regional Accounting Services6. Regional Data analytics and Business

Intelligence7. State wide Procurement Strategy 8. Regional Procurement

Strategy(procure to pay)9. Regional IT Core Systems – Systems of

Record10. State wide Customer facing Systems -

IT Systems of Engagement11. Records Management

1. Legal and Contract Management2. Roads Management and Road

Management Planning3. Long Term Financial Planning tools and

links to Service and Asset Management Strategies and Plans

4. Libraries5. Property Rates Assessment and

Collection

Other services have also been proposed

The Future of Local Government Services YouTube Anthony Kemp http://www.youtube.com/watch?v=BbbdHJS2t8I

Be involved

• LG doing great things (FacebooK public)

https://www.facebook.com/groups/366895236832623/

• FOLG Youtube homepage: http://futureoflocalgovernment.org.au

Questions for you (by Friday) 1. It is 2025: what are the 2-3 major changes LG

has seen in the last decade?

2. What are the critical success factors that will enable LG to move forward from 2015?

FOLG future-readiness assessment

• Respond by June 19