Leadership Strategies in Times of Economic Meltdown League of California Cities San Francisco, CA Sept 23, 2011

Panel  Alice Fredericks, Moderator Council Member, Town of Tiburon  Dr. Frank Benest Former City Manager, Palo Alto, Senior Advisor, ICMA  Greg Larson Town Manager, Town of Los Gatos LCC City Managers Dep’t Executive Board

Overview 1) Exercise: “In times of meltdown, what are the constraints under which city leaders must operate?” 2) The 10 new rules for elected officials 3) Resources 4) Q & A

Constraints  “In times of economic meltdown, what are the constraints under which city leaders operate?”

10 New Rules for City Leaders

Rule #1  Identify the “core”  What defines you?  What can only you do?  Any “loss” leaders?  Possibilities:  Land Use & Planning  Safety, broadly defined  Downtown, Environment, Parks, Library, etc.

Rule #2  Focus on a few priorities  Not too broad  Not too many  Projects and Programs  Community Engagement  Forced Choices

One Example

Rule #3  Subtract, subtract, subtract  Reduce Time  “Default is action”  Delegation at all levels  Systems analysis, with metrics!  Reduce Personnel  Offset explosive growth in expenses  “Irony of outsourcing”

Rule #4  Limit requests for new analysis & reports  Traditional way to respond to constituent requests  Diverts staff resources  Undercuts ability to perform

Rule #5  Have the courage to say “no”  Refer to priorities  Stay the course

Rule #6  Avoid zero-risk environment  No innovation without risk  Learning from mistakes is key to innovation process  City govts operate in hyper- critical organization  Councils must protect creative & risk-taking employees

Promoting Tolerance of Risk 1. Pilot-test everything 2. Broaden involvement of partners 3. De-brief & share lessons 4. Celebrate “fabulous flops” and risk- takers 5. Create professional “safety net”

Rule #7  Pursue non-governmental solutions  “Steer, Don’t Row” – Reinventing Government  Privatization  Routinization  Leveraging  Partnerships  Shared Services  Volunteers, Non-profits, and more

Two Examples from Los Gatos  Responsive Customer Service as a Priority  Routine maintenance and work outsourced  Reduced staffing does call response  Recreation “Department”  An educational JPA and non-profit  Core services provide foundation  Extrordinary services at direct cost  Expanded to Senior Services and Neighborhood Center  Result – Increased services and significant budget savings

Rule #8  Free up funds for targeted investments  Victories needed  Opportunities: Technology/Efficiency Engagement Capital Projects Grants (e.g., ARRA) Year-end surpluses or Reserves

Rule #9  Provide meaning & emotional support for staff  Premise: Your great policy ideas are impotent without talented employees to execute them  “Suck it up” does not work  Reach out, listen & engage  Demonstrate appreciation  “Meaning is the new money”

Rule #10  Develop talent & rebuild organizational capacity  “Free exiter” problem  New social contract  Talent development is cheap

Cost-Effective Approaches  Encourage employees to create annual learning plan  Provide interim or special assignments  Rotate emerging leaders thru several positions  Assign special projects  Make team leadership assignments  Provide job shadow or cross-training opportunities  Structure assignments to include interaction with boards or community groups  Establish Leadership Academy with other cities

Courageous Conversations

Resources  Dr. Frank Benest, “Ten New Rules for Elected Officials in Times of Economic Meltdown,” Western City, Jan 2011  Institute for Local Government, A Local Official’s Guide to Public Engagement in Budgeting and Planning Public Forums  Go to

Contact Information  Alice Fredericks   Frank Benest   Greg Larson 