Innovation as Leadership in LG

Context Innovation: better solutions that meet new requirements………….new ideas Improvement: doing the same thing better (business as usual/best practice) Revolution: Typing, taking photos ……times 1000

Innovation in Government Federal State Local …………is generally slow at some levels

FOLG background LG is the most complex service business on earth: 150 but the same LG is too busy reacting and regulating to be strategic, so other levels of Govt. make all the big decisions (BAU)

Context Councils are currently facing a number of major challenges including: A new regulatory regime demanding a minimum standard of performance Publicly available comparative performance information Rapidly escalating community expectations and increased media scrutiny A freeze on Grants Commission allocations and reduction in other Federal $ The prospect of rate capping Road funding changes under development Criticism about the lack of integration of Council plans Challenging political environments Skills shortages and ageing workforce The shift to digital government Implementing the recommendations of recent VAGO investigations > all resulting in ongoing threats to Council services and sustainability. Across the sector Councils will need to adapt and innovate to remain viable and relevant to their communities. 

Old and new Councils continue to do things 79 times: duplication/waste Commonwealth funding for LG is reducing Most Councils can’t scale the ‘Digital Divide’ Individual Councils don’t have the resources to leverage t Old: each Council does its own thing LG costs rising rapidly Community expectations not met Many councils not sustainable Growing scops of LG activities Ad hoc collaboration Outcome: intervention/amalgamation New: collaborate and innovate or die All Councils are essentially in the same business But how to deliver? Issues of change management and organisational culture

FOLG We need to articulate what the future of LG looks like or others will do it for us The world is transforming into a networked collaborative society LG needs to align itself with the global push for reform and productivity We need to do more with less LG needs to lead change or have it imposed: we need to decide on our future game plan Community Budgeting “There’s no city in the world where it is business as usual anymore” Kathy Alexander, CEO of the City of Melbourne is putting the word out on Council's first people's panel that will decide how the City will allocate its budget for the next ten years.

FOLG Summit: propositions Commission of Inquiry into Rewiring Public Services to Improve Community Outcomes: Propositions from the Commission   Local Government will take control of its own destiny and stop playing the victim and stop cap in hand whingeing behaviours  In future, budgets (negotiable elements) should be set by using crowd- sourcing methodology to determine priorities and services for the year. In future councils will work collaboratively for delivery of back office services via shared services arrangements. In future councils will exercise leadership with other tiers of government in a whole system approach. The sector makes a commitment that every council in Victoria will be financially successful within 4 years and will make a collective commitment to achieve this Councils will commit to moving to IT that is designed to enable genuinely transformative change. Local government will play a leadership role in identifying new business models to transform the delivery of public services in a way that uses far less resources  

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?

Here’s the thing State and Federal Governments are planning for Digital Government (Victoria: 1 ‘pipe’ for LG) When LG does nothing, others will decide. LG will then complain react report shave costs, fine tune BUT, when LG leads, others follow

Leading for future success Where we need to be – Councils of the Future Strategic regional collaborations Community driven participation Broker of key services Co-design planning Technology enabled opportunities Place based delivery Adaptive Community cultures LG at the crossroads Councils Leading Change A question of leadership Colugo at the cross-roads Performance and financial challenges Increasing community expectations Council-centric decisions Fragmented resourcing Two speed LG Service costs are rising Ad-hoc collaboration Poor spatial awareness Where we are now – business as usual LG at the crossroads

The reality of austerity The UK LGA Funding Outlook 2013 www.local.gov.uk

UK Local government is trusted competent has the solutions Satisfaction with LG is rising, despite the funding cuts.

Where are Victorian Councils going? LG will transform in the next 10 years: what role will Councils have in that transformation? Driven by technology/internet rapidly changing community expectations fewer dollars/resources The 4 year Council Plan should tell us How Council will meet the challenge of change How Council will scale the digital divide How to do more with less How innovation will transform council services

LG: Collaborate and innovate or die But how to deliver? How to establish a culture of innovation and collaboration? How important is transformative leadership? Who are the champions of change in LG? Who drives change in LG? How can Councils deliver better performance at lower cost? How can councils collaborate more effectively?

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 Need to put innovation and collaboration high on Council and regional agendas/plans Requires leadership

Innovation in LG Innovation is how large organisations remain sustainable and retain public support LG has drivers organisational skills and attitudes also needs greater focus on collaborative innovation in regional/state-wide groups greater knowledge-sharing between Councils/regions

LG Innovation action plan: ACELG Ensuring that proposed or envisaged amalgamations are driven by an innovation outcome rather than a narrow search for efficiency. Developing innovation skills, capacities and capabilities, particularly in areas that involve transformational innovations. Creating a culture and working environment that encourages and facilitates partnerships and collaborations with other government entities, businesses, universities, nongovernment organisations (NGOs) and the broader community. Using outsourcing and commissioning as an opportunity for securing innovation outcomes. Examining opportunities for open innovation and support for innovation tournaments or contests that reward the development and implementation of new ideas. Strengthening knowledge exchange networks to build innovation capability

The Swift Journey ……………how collaboration benefits participants

Benefits to Members A saving of on average 30% to annual operating expenses. No longer the need to perform system monitoring or system backups. Functionality that would be difficult to justify on a stand-alone basis. Automatically receive new updates of operating system at no cost. A reliable, stable operating environment. Savings through Consortium purchases. The use of a modern system that has led to improved Patron services. The Consortium has introduced new standards and work practices, that has improved productivity within the Participating Libraries.

Collaborative Innovation Some projects chose to run independent of the LG Cloud. Right now the LG Cloud appears too esoteric for some projects to embrace Not all the councils will want to or be able to collaborate via the LG Cloud Collaborative Innovation LG Cloud Platform – shared space for collaboration Now The early adopters will be key to seeding the concept and demonstrating its merits. 2016 2018 Some collaborative projects will embrace the LG Cloud and run with it. Council

The Future of Local Government Services  YouTube  Anthony Kemp (3 mins) http://www.youtube.com/watch?v=BbbdHJS2t8I