2012 Future of LG Summit

2012 FOLG Will Be Different : exploring/defining first principles –‘We can be heroes just for one day’ 2012: the ‘DO’ Success train is leaving the station - all aboard for the journey of a lifetime

We Need to Make Time to Think

The Problem CouncilsLG Sector Vision/game plan ✓ x Structure ✓ x Strategy ✓ x

Why Are We Here? The Future of LG is important to us We all work in LG but who is working on LG? What is our vision for the future of LG? What are we trying to achieve? The world is in a period of rapid, fundamental change: is both an opportunity and a threat for LG: silos and monopolies are collapsing Others lack confidence in the ability of local government to manage itself, to think strategically Mrs Jones husband died…………..

Where Does LG Want to Be in 2013/14? Option 1Every Council ‘doing its own thing’ but the LG sector has little control over its own destiny: recipient of change Option 2Councils supporting an agreed sector-wide ’game plan’ leading change Option 3Other

Why Is It So? LG has too much to do and too little to do it with. Why? The scope of LG activities continues to expand –Rising community expectations/challenges/issues –Federal and State Govts keep pushing things ‘south’ –LG continues to accept more responsibilities (often unfunded): why? –LG is caught between a rock and a hard place Hawker report > cost shifting > IGA > more cost shifting > 30-40% councils unsustainable (PWC)

We Are All Too Busy (Rats on the Wheel) All major decisions about LG are taken by other levels of government. Why? LG is the most complex service business in the world: it is too busy with hundreds of daily issues. The urgent crowds out the important LG is very good at reacting to daily issues Perception: LG sector lacks strategic change capability: is focussed on regulation/control They keep on doing it ‘to’ us

Massive Change Is Upon Us Period of escalating change, chaos, unpredictability World is becoming smaller, faster and overwhelmingly more complex Before: economies, sectors and issues were simpler and more self-contained Today: complexity and interdependence of issues World in being transformed by growth, globalisation and technology Digital government is coming: citizen-centric New public policy environment

New Public Policy Environment Globalisation: pervasive global problems: poverty, obesity, climate change, global finances, peak oil All characterised by growing complexity and inter- dependence –Healthcare (from treatment to well-being) –Education (from school to LLL) –Environment (now sustainability) Government can’t solve these problems by itself Government does not work very well now: hierarchy and silos rather than collaboration and networking –In the Information Age, the public sector is fractured

Government Can’t Solve it Poverty reduction: housing, food security, health care, economic inclusion, family support, self-esteem, employment Governments, community organisations, private sector, families, individuals all have a role Poverty strategy requires alignment or co- ordination. But government policy is still made and delivered in silos

Collaboration Is Now Key Collaboration is now essential for good governance: fast, open government Needs to be top down and bottom up Alignment is essential for effectiveness and efficiency Solutions: open government, public engagement, community partnerships LG can play a key role in empowering communities: provide access to information, broker strategic alliances

Reform of Public Services Co-design: ‘Active engagement of users in the design of products and services that affect them’ Can transform service delivery strategies DHS-MAV co-design pilot (2011/12): 9 locations, 5 one day workshops over 4 months Human services: issues-solutions-action plans At the table (25 people): 3 levels of government, providers, community groups, the community Which group was the most influential in driving changed outcomes? Which group was the ‘glue’? Which group had the most surprises?

Citizen Control (Democracy) Is Coming Towards You Top down: decisions made behind closed doors Bottom up: the voice of the community has influence The internet changes everything New Digital Government: networking replaces hierarchy. Knowledge access and transfer are key Most public sector information originates in local government, but…………

Opportunity Knocks for LG ………………….. but we need a game plan

How Important Is LG in Australia? It’s big business Annual expenditure: $29 billion Employment: 190,000 Assets $300 billion Mining industry employment: 190,000 Steel industry employment: 91,000 Automotive manufacturing employment: 45,000 Steel industry turnover: $29 billion

Productivity? LG spending as % of total public sector spending 1995/6: 12% 2010/11: 6% Scope of LG activities: +20% (Hawker) Scope of Federal & State Govt activities: Reduced

The Future of LG to Date Lot of talking > agreed that: LG is about (vision): – facilitating the building of strong and successful communities (not just RRR) –improving community well-being and social capital –place making –making sure citizens feel engaged and valued

The Future of LG to Date The role of LG is to promote community governance and advocacy (LG brokers agreed outcomes via strategic alliances but should not be trying to do everything) –LG provides or facilitates or supports whatever brings about the best outcome for the community: the Councillors role is to govern If LG wants to gain some control over its own destiny it needs to embrace/drive change and reform (until now all major decisions about LG taken by others)

FOLG to Date Vision for LG: stronger communities (and more capable local government)

Number of Councils in Australia 1910: : 565 (Business lobby: 200)

LG Reform Activity Qld 2008Imposed amalgamation NT 2008Supported amalgamation but rushed implementation Perth Councils 2012 Amalgamation review in process by WA Govt Tasmania 2011 Southern Tasmania Councils report tabled. Sewerage & water body amalgamations NSW 2012Destination 2036

NSW: Destination 2036 Aim: how LG would modernise, reform and improve: to eliminate ‘haves’ and ‘have nots’ in community services Action plan (June 2012): strategic directions –Efficient and effective service delivery –Quality governance and leadership in LG –Financial sustainability in LG –Appropriate, flexible structural models: greater cooperation between Councils: share skills, technology, ideas and resources –Strong relationships within LG Independent Panel re boundary change: report by July 2013

Change LG is most likely going to change more in the next 5-10 years than in the past 50 years. The only question is who will be in the driver’s seat. In 4 years time Victoria will have Councillors in place for The majority of these Councillors will be in place in LG benchmarked against banks: same back end

Gospel: ‘Do More With Less’ Amalgamation is the easy ‘reform’: what is the position of LG? Have we done the hard yards? What is our game plan? What are the benefits of Total Place? What are the benefits of co-design? Who will take the lead in this discussion? Who will have evidence to put on the table?

The ‘UK’ Future Is Coming to a Council Near You… but more slowly Less dollars, lower taxes Cost shifting/rising community expectations Citizens wanting more control/influence Skills loss/shortages: knowledge loss Growing unfunded infrastructure renewal gap ($1.2 billion pa on local roads alone) In 10 years time, the whole Council budget will be needed for adult social care >A perfect storm!

Imperative for LG  improve collaboration  Local Government only has strength when it acts as a sector  Before we act we need a game plan

Let’s Embed Collaboration Collaboration improves ability of Councils to transform service delivery: no sense having 560 separate solutions/systems to address common issues. The collective capability of Councils far outweighs what any single Council can achieve alone. Collaboration is the key to joined-up service and a seamless experience for citizens

Collaboration Councils are leaders in regional Australia: they need to drive innovation and the knowledge base of their regions: otherwise there will be more ‘have nots’. Council collaboration is as much about the economic development of regions as it is about Council efficiency.

10 Things About LG LG does great things but hides its light under a bushel LG is judged as a sector, not on the performance of individual Councils LG greatest strength is its connection to the community. Knowing what is important to communities is ‘gold’ (holy grail) The need for LG to speak for ‘local’ has never been greater, as State and Federal Governments focus on regional Other levels of government want to fund communities, not local government

10 Things About LG LG only has strength as a sector LG can have its cake and eat it too: preserve its democratic base and change the way it does business (collaborate across boundaries) Inconsistency of standards across Councils will result in a slow death. LG often frustrates business, who mark the performance of LG, and lobby….

10 Things About LG If LG can demonstrate it is effective and efficient, external pressure is reduced (eg. NSW case study)

Drivers for change Be local leaders or be left behind Technology empowering citizens LG is the ‘glue’ for joined up government LG needs to demonstrate it can do more with less Large % of LG workforce will retire in the next 10 years: knowledge will go with them

Key Questions LG is a monopoly provider. What is the driver for change and reform? How does LG measure its performance? Can LG lead change?

Good Practice in LG in 2015 >Alignment: Community priorities are documented & influence Council planning/outcomes and regional planning >Alignment: Councils in regional groups identify key regional priorities and influence regional planning partners (State Govt etc)

Good Practice in LG in 2015 Knowledge is a Council’s most important asset (people come and go): needs managed on a Council-wide basis, and be accessible by citizens (Obama edict) Efficiency/collaboration: Councils are able to demonstrate they are doing more with less (metrics)

Improved G-C Alignment: LG Key Federal Govt State & Territory Govts Local Government Community priorities R Policy/resources Critical relationship: determines the FOLG: listen to lead Influence

Possible From: –State & Federal Governments tell LG To: –Community tells LG and State & Federal Governments want to partner with LG to deliver outcomes

Positioning of LG ‘Go to’ group for anything community Facilitates/brokers/advocates outcomes on community priorities Strengthens communities (learning through doing) Adds public value: –LG collaborates across boundaries: If LG had interoperable systems and common data standards:....emergency management, building and planning, maternal and child health, asset management etc –Community access to LG information Improved community-public sector alignment Employer of choice: it’s about the values, not $

FOLG Outcomes 1.LG facilitates the building of stronger and more successful local communities (citizen-centric LG) >confirm role of LG (what are the governance needs of this community?) > Strengthen the voice of the community in Council > community-documented priorities (attract $) > Council supports the community in planning for different futures (eg. Transition EDAPs) > Engagement of community in co-design/production

FOLG Outcomes 2. Improved service delivery  Transition to common back of house (%)  Common standards/specs  Regional collaboration strategies  Continuous improvement and innovation  Performance measurement

FOLG Outcomes 3. LG creates value for communities Community access to information Economic development opportunities Strategic alliances

FOLG Outcomes 4.LG ring-fences scope of activity  Finds a way to implement the IGA and make it work (core and non-core?)

Outcome of FOLG Outcomes LG in leadership position Less incentive to amalgamate Respect for LG (‘they’ve got their act together’) One of the most powerful lobby groups in the country ‘Go to’ group for anything community LG employer of choice for Gen Y Sustainable local communities

FOLG Summit Process Day 1: time to think Day 2: what to do, how to do it

FOLG post-Summit Process Enough talking: time for the train to leave the station Involve all Councils in the FOLG process > assemble the game plan External Stakeholder Reference Group FOLG Support Resources Panel FOLG Facilitation: CT Management Group

Post-Summit Process FOLG Leadership Group –Create space for strategic conversations –incubate and spread ideas for a better future Future Council Groups Knowledge and Information Management Community Planning/engagement/co-design Infrastructure Management Collaboration between Councils (regional) –Workshop process to identify key opportunities

Post-summit Process Build strategic change capability: Future Solutions workshops (change readiness) Council Plan Process Review: how can it be improved? > No cost to Councils

Outcomes 2012: Councils sign up for the Success train –Council Plan workshops 2012/13: The train has left the station –FOLG Leadership Group initial output –Future Council Groups have produced ‘The Way Forward’ strategies (eg. Knowledge etc) –Regional Collaboration Plans in place and being implemented –Strategic Change Capability commenced at Councils 2013/14: Agreed game plan for the sector signed off (Roadmap): > convergence process

Where Does LG Want to Be in 2013/14? Option 1Every Council ‘doing its own thing’ but the LG sector has little control over its own destiny: recipient of change Option 2Councils supporting an agreed sector-wide ’game plan’ leading change Option 3Other