1. A Presentation to the MAV Future Of Local Government Commission of Enquiry May 2014 Michael McAllum, michael.mcallum@globalforesight.net © 2014 GLOBAL FORESIGHT NETWORK PTY LTD FROM STRATEGY TO TOTAL REDESIGN

2. LIMITS + SYSTEMIC COMPLEXITY + ADVERSITY = A BLACK HOLE of HIGH TRANSACTION COSTS Local Government is a complex mix of different systems each with completely different narratives. Blue : Rules for predetermined outcomes Planning / Engineering / Finance Red : Heroes, Competition, Winning. Politics / Markets / Policy Battles Green: Inclusiveness, Community, Sustainability Spaces / Places/ Environment / Arts

3. 2 WHAT PATH WILL LOCAL GOVERNMENT TAKE?

4. ESCAPE FROM THE MACHINE 1.Creation of a different narrative 2.Plan and design through a different lens 3.Engage with the Community in new ways 4.Recognise that form and shape is changing AND 5.Do so on the basis that all the technologies and case studies to vastly lower transaction costs are already here.

5. A REVOLUTION IN THE MAKING 1 st Industrial Rev. Circa 1800 Factory cities Steam Printing 2 nd Industrial Rev. Circa 1900 Suburban cities Oil & electricity Telephony & Film Networked Rev 2005…….. Interconnected village ecologies Renewables Social networking technologies

6. BEYOND TECHNOLOGY: THE NETWORKED WORLD IS A WAY OF THINKING Shift from centralised efficiency based systems to distributed networks Organisation form changes Rapid move from supply side to demand driven thinking and consumption Advantage moves from head to head competition to collaboration Rapid growth in new business models that use far fewer resources to create value.

7. A FUTURE WHERE ORGANISATIONS LOOK MORE LOOK ECOLOGIES THAN MACHINES MODERN Centralised Mechanistic Efficiency & performance focus POST MODERN (CIRCA 85 -2005) Decentralised Digital Specialisation/ Outsource focus NETWORK CENTRIC Distributed Networked Ecological/connectivity focus

8. BEYOND TECHNOLOGY: THE NETWORKED WORLD IS A WAY OF THINKING Shift from centralised efficiency based systems to distributed networks Organisation form changes Rapid move from supply side to demand driven thinking and consumption Advantage moves from head to head competition to collaboration Rapid growth in new business models that use far fewer resources to create value.

9. RETHINKING BLUE IN THE INTERNET OF THINGS Network and spatial technologies will drive: 1.Joined up ecologies of services 2.A rapid shift to cloud based systems 3.Place based treasury 4.A demand for 21 st century infrastructures ( renewables at point of demand, local energy storage, mesh technologies, intelligent roads) 5.A focus on economies of scope not scale (because transaction costs are near zero) “The internet of things is the first smart infrastructure in history that will connect every machine, business, resident and vehicle in an intelligent communications, energy and logistics network.” Planning Infrastructure Finance Services

10. RETHINKING RED ON THE COLLABORATIVE COMMONS Interconnectivity and mobility reframes everything. 1.Collaboration in the new form of competition 2.The idea of work will require the development of many local markets (3D printing / remote work /the Hub) 3.Access will be valued more than ownership 4.Everything will need to be redesigned from a demand driven NOT a supply push perspective 5.Crowd sourcing and crowd funding will be the norm “The machine age was dominated by contractual thinking and relationships. The Distributed Age will be dominated by interpersonal relationships.” Collaboration Engagement Markets Crowd

11. RETHINKING GREEN IN A DISTRIBUTED WORLD Machine thinking (efficiency) gives way to ecological systems (optimisation) 1.Built form will reflect a rapid evolution into multi use ecologies 2.People will prefer EXPERIENCES not TRANSACTIONS 3.A DIVERSITY of informal real and virtual 3 rd spaces will be frame the sense of community 4.Institutions will be rethought 5.Distributed and networked allows the use of far fewer resources to create more “In a future where the over use of resources in not an option, we will discover that the arts, the celebration of culture, festivals and togetherness are what will define meaning and success not money.” Built form Belonging More with less Expression

12. BEYOND THE BLACK HOLE: THE AUTHENTIC LEADERSHIP CHALLENGE 1. NETWORKED INTELLIGENCE 2. A FUTURE STORY 3. DEEP DESIGN 5. IDENTITY RESONANCE 4. NAVIGATION & VALUE CURATION

13. 13 We need to move beyond the noise and the blame, We must find new frameworks for conversation, In order to create new narratives that are inclusive and allow all to contribute So that we can transcend where we are now. For to do otherwise is to contemplate scenarios that are nightmarish if they were to come to pass. DESIGNING BETTER FUTURES