Creative Budget Responses to the Economic Meltdown Leadership Academy May 21, 2015

Sample Outline for Team Report  Principles  Start with end in mind  What does audience want to know?  Less is more  Outline  Challenge & assignment  Summary of recommendations  Methodology  Conclusions  Recommendations  Call to action

Team Project Run Through  Presentation incl. recommendations (15-20 minutes)  Questions by Board/Executive Sponsors & responses (10 minutes)  Suggestions to enhance the presentation to CM Association (10 minutes)  Class  Executive Sponsor(s)

Fran David  Career Journey  Presentation: “Finance for Non-Finance Staff”  What make finance people tick?  What are financial “red flags”?  How can you increase your financial IQ?  Q & A

Daniel Pink

Themes from Articles  “Managing Through Meltdown”  “Creating a New Future for a Downsizing Organization”

Overview 1. Structural vs cyclical budget deficits 2. Themes from budget messages 3. Responding to the economic meltdown 4. Debrief development conversations 5. Run through—Team Project #2 6. Exercise--redesigning services 7. Resources, reactions 8. Team meetings

Nature of Structural Deficits  Business-related deficits  Structural deficits

Budget Messages  What are drivers of deficits?  What are strategies proposed?  What is journey going forward?

Responding to Economic Meltdown Premises  An organization needs to get out in front of severe cutbacks and take action NOW  Typical cutback measures have negative and sometimes unanticipated consequences  Cutbacks at margins will not solve fiscal challenge

Responding to Economic Meltdown Premises (con’t)  Redesigning service delivery requires engaging employees, other departments, and outside partners  Leaders typically need to cross boundaries to redesign services  As it reduces resources, an organization needs to target investments  Service redesign is a journey

Typical Cutback Measures  Across the board percentage cuts  Reductions in travel, training and equipment  Deferred maintenance and capital projects  Hiring freeze  Layoffs  Increased fees  Reductions in contract services  Borrowing from reserves  Cutbacks in support staff  Protection of “sacred cows”

Organizational Impacts In terms of organizational climate and employee attitudes, what are some impacts on the organization?

The Productivity Paradox

Debrief Development Conversations  What did you like about the development conversation?  What were the positive outcomes for you?  What felt stilted or uncomfortable?

Team Project Run Through  Presentation incl. recommendations (15-20 minutes)  Questions by Board/Executive Sponsors & responses (10 minutes)  Suggestions to enhance the presentation to CM Association (10 minutes)  Class  Executive Sponsor(s)

Redesigning County Probation Dept Assumption: Probation Dept of future does not use probation officers who supervise individual offenders

Redesigning County Probation Dept Instructions:  Go to worksheet  Individually respond to questions  Discuss in small groups  Identify top ideas, including one “wacky” idea

Guidelines for Service Redesign  Focus on mission  Identify your customer  Manage service demand  Identify your core business & shed or off-load non-core responsibilities  Re-think service delivery and options  Seek strategic partners; provide resources and other incentives  Incorporate several approaches for addressing budget challenge

Resources  Career Compass column “Developing Finance IQ”  “Managing Meltdown”  “Creating a New Future for a Downsizing Organization”

Peer Coaching  Who has a challenging or problematic situation or project at work for which they would like peer feedback & suggestions?

Reaction Panel  What resonated with me?  What did not resonate with me?  What do I have to add?

Assignments  Conduct third coaching session before March 12  Do readings  Prepare for Team Project run-throughs

Team Projects  Questions from teams?  Assistance needed?  Team meetings Thank you!