1. 2012 Winning Communities Inc Leading Change and Building Strategic Capability in Local Government Cr Chris Meddows-Taylor Future of Local Government Summit Melbourne, June 2012

2. 2012 Winning Communities Inc Increasingly governments are facing complex policy issues whose resolution requires voluntary behaviour change.” “The unmistakable tendencies of cities to increase rapidly in population and expansiveness should forcibly impress on all legislators and administrators the desirability of taking steps in due time to prepare for the necessities of the future.” “ Governments generally cannot do everything on their own; they need to work collaboratively with other stakeholders. This is especially so for local governments” (Metropolitan Local Government Review Panel Issues Paper –Western Australia 2011) “Increasingly governments are facing complex policy issues whose resolution requires voluntary behaviour change.” (Peter McKinlay- McKinlay Douglas Ltd 2011) “The unmistakable tendencies of cities to increase rapidly in population and expansiveness should forcibly impress on all legislators and administrators the desirability of taking steps in due time to prepare for the necessities of the future.” (Melbourne Metropolitan Town Planning Commission 1929) There is a call to lead change

3. 2012 Winning Communities Inc We need to respond to the need to lead change  It is recognised that the LG sector currently needs to develop a clear strategic direction (‘game plan’) for the future and lead change itself rather than react to the frustrations of other stakeholders, and levels of government.  If LG is going to be relevant in an increasingly boundaryless world, this will requite LG to develop the strategic capability to drive and champion strategic change.* * MAV Future of Local Government Strategic Change Group 2011

4. 2012 Winning Communities Inc How can we develop the depth of capability we need in key areas? How well are we responding to new challenges and issues? How do we create a prosperous and sustainable future for our community? How do we lead change and engage with other stakeholders to create value? How can we provide the effective leadership to build change readiness How do we free up time to develop new solutions creatively? How well are we listening to our communities and engaging around their changing needs? What should keep us awake at night? Is our community and organisation culture aligned to achieve the goals we seek?

5. 2012 Winning Communities Inc StrategicIntentStrategicIntent ManageChangeManageChange ResultsResults Managing change is critical to gaining the results we need

6. 2012 Winning Communities Inc Community Engagement Gap Planning Advocacy Change Strategies Capability Culture Creativity Learning Conversations Leadership Achieving Communities It’s helpful to have a change framework

7. 2012 Winning Communities Inc Community Development Gap Planning Advocacy Change Strategies Capability Culture Creativity Learning Conversations Leadership Achieving Communities A focus on community advancement

8. 2012 Winning Communities Inc Traditional views of community development have been linear COMMUNIT Y VISION Focus of Change Program Current Reality Council Plan Community Action Plan

9. 2012 Winning Communities Inc Community members Key gaps which then provides the basis of identifying Community Development- Building Ongoing Capability and Change Readiness which collectively shape a Community vision Community vision CriticalprioritiesCriticalpriorities and leads to the setting of Aspirations have and enables this to compare with Current reality Current reality Action plan which are integrated into an Effective leadership and implementation Effective leadership and implementation and through Success, confidence, capability and commitment Success, confidence, capability and commitment provide which reinforces and builds new But added community capacity creates new aspirations and continuing change

10. 2012 Winning Communities Inc Council Vision Outcome Where we want to be Strategy Challenge Current Reality Gap planning -where we are now, where we need to be, how to get there CultureProcessesCapability AdaptabilityAlignment Where we are now

11. 2012 Winning Communities Inc  Councillors to take responsibility for selling the need to close the gap and how that will be achieved –the importance of “walking the talk”.  Identify existing and potential community leaders and plan how they might be engaged to come on board and take some ownership of this process.  Ensure communications strategically reinforce key change messages -including showcasing progress.  Remember gap planning is of key interest to other level of governments and investors. Closing the Gap should drive advocacy

12. 2012 Winning Communities Inc Community Development Gap Planning Advocacy Change Strategies Culture Capability Creativity Learning Conversations Leadership A focus on change Achieving Communities

13. 2012 Winning Communities Inc  The concept of strategic interdependence derives from games theory where it was realised that winning a battle and the war are two very different things.  Strategies developed in isolation and traditional functional work teams slow the process of change  If we have a range of processes in place to transfer learnings, capabilities and insights we accelerate strategic development and change readiness  Cross-boundary high performance teams are one effective response to address this need. Strategy development needs to leverage

14. 2012 Winning Communities Inc Location Heritage Buildings and assets Government services Parks and gardens Employment opportunities Funding and so on Location Heritage Buildings and assets Government services Parks and gardens Employment opportunities Funding and so on What you have Traditional Focus Future Focus Engaging the community on an achievable vision Implementing key priorities- making things happen Developing key relationships Building teams and committed volunteers Enhancing leadership and identifying new energy and talent Leveraging success Creating future confidence and optimism Engaging the community on an achievable vision Implementing key priorities- making things happen Developing key relationships Building teams and committed volunteers Enhancing leadership and identifying new energy and talent Leveraging success Creating future confidence and optimism How you make it happen Very different emphasis The nature of capability for local government is changing---

15. 2012 Winning Communities Inc Typical high value capabilities include  Strategic alignment and focus  Understanding of organisational and strategic interdependencies  Collaboration across communities, regions and levels of government  Understanding of roles and responsibilities of diverse stakeholders and partners  Creativity to propose new solutions to community issues and challenges  Capacity to develop and implement win-win solutions.  Capacity to manage change effectively.

16. 2012 Winning Communities Inc Capability Matrix –one Council Deficient Behind Competitors CompetitiveOptimal Ahead of CompetitorsIn line with Competitors Critical Significant Low Status of Capability Relative Value to Community Listening to community Fun Can do Org. Pride Internal communication Understanding Community Aspirations Working collaboratively Job swap Diversity

17. 2012 Winning Communities Inc Relationship Matrix –one management team Deficient Not meeting needs WorkableBeneficial Exceeding requirementsMeeting requirements Critical Significant Low Status of Relationship Relative Value to Community Staff – Council Community Planning Groups Section 86 Advisory committees State Government Business Comm.

18. 2012 Winning Communities Inc  Culture is formed by the combination of all ‘signals’ that an organisation gives it members as to appropriate ways to think and act.  Effects of the ‘signals’ are enhanced to the extent people systems are aligned and mutually reinforcing the strategic direction.  Culture should actively be aligned to support change and the achievement of strategic goals.  The role of councils is to align their community cultures with Council’s gap planning.  CEOs have responsibility to align office culture. We need to align community and organisation (office) culture

19. 2012 Winning Communities Inc  Aspiration -achieving “reach for the stars”  Learning – valuing learning and knowledge  Adaptability – change readiness  Resilience – support in challenging times Some target community culture attributes might include-- Some attributes can be valued in themselves but work against others –e.g. resilient community cultures tend not to be aspirational or adaptive tending to emphasise a “don’t fix it unless broke” mindset.

20. 2012 Winning Communities Inc Community culture change- one council Shift in emphasis Adaptable Exploring Take a step forward Opportunity driven Discuss new possibilities Welcome new inputs Work across boundaries Improve whenever possible Capture opportunities Individual employability Only the best will do Go for gold Adaptable Exploring Take a step forward Opportunity driven Discuss new possibilities Welcome new inputs Work across boundaries Improve whenever possible Capture opportunities Individual employability Only the best will do Go for gold Resilient Conforming Take a fixed position Relationship driven Hands on and can do Earn your stripes Work within boundaries Maintain status quo Respond as necessary Employer “owns” training Accept what’s on offer Down-to-earth Current Future

21. 2012 Winning Communities Inc Shift in emphasis Organisational “silos” We know best Doing it all ourselves Organisational solutions Organisational outcomes Managing community Current Future Working across boundaries Better solutions together Valuing other contributions Place based solutions Community outcomes Engaging community Organisational culture change –one council

22. 2012 Winning Communities Inc Community Development Gap Planning Advocacy Change Strategies Culture Capability Creativity Learning Conversations Leadership A focus on creativity Achieving Communities

23. 2012 Winning Communities Inc Learning is key to change  Learn from those who have gone before –what worked well – and what didn’t. Harness and draw from that learning.  Monitor and observe developments in other places – read broadly and develop a “broad scanning” approach – use the power of the internet to full advantage.  Adopt an “action learning” approach to initiatives and projects.  Avoid punishing cultures “ there is no such thing as a mistake only an unexpected consequence.”

24. 2012 Winning Communities Inc Human Capital Know how Competencies Education Wisdom Experience Cognitive capacity Learning orientation Organisation Capital Business Processes Hardware,software Connectivity Data bases Culture and values Strategic Interdependence Community Development Capital Capital Community understanding Quality of relationships with Community and stakeholders Growth potential Value Creation Value Knowledge flow Adapted from: Research - Technology Management, July- August 1997 Integrating learning experiences creates growth opportunity and value creation

25. 2012 Winning Communities Inc  Objective is to develop new insights and solutions to key issues.  Process is structured conversation between councils or work teams of key strategic issues of concern.  Participants nominate “hot spot” topics of concern–a scheduled list in advance is ideal but revised as needed (keep informal).  Schedule times e.g. during an assembly each month –conversation for an agreed time limit.  Individual participant may open the conversation.  CEO or facilitator manages debate and follow up activities.  Same process can be used within cross boundary teams and regional settings. Strategic conversations should be part of our regular business

26. 2012 Winning Communities Inc  There is a clear need to understand strategies which work for community conversations -and which do not.  The work of Peter Kenyon and the Bank of I.D.E.A.S is a great starting point.  Focus groups are an effective way of gaining balanced participation  The objective is to encourage genuine participation. Community conversations need to genuinely engage the community

27. 2012 Winning Communities Inc Focus on compliance - getting thing right Penalties for failing to comply Rewards for good achievements Articulate vision which is inspiring and engaging Stimulate and encourage creativity Delegate and empower teams to deliver Coach and mentor to ensure high performance Development of new competencies Transformational Leadership Transactional Leadership Leadership focus and style impacts change readiness Authoritative styles Influencing styles

28. 2012 Winning Communities Inc  Value creation  Visionary leadership  Change leadership  Cross-boundary effectiveness  Community engagement Typically we see new leadership competencies emerge in importance

29. 2012 Winning Communities Inc Competency Matrix –one council management team Deficient Requires Development CompetitiveSuperior A Competitive Strength or Expert Level of Functioning Meets day-to-day Requirements Current Functioning/Capability Value Added Impact to Council Critical Significant Low Community Focus Innovation Change Leadership Interpersonal Effectiveness Learning Initiative Teamwork Cross Boundary Effectiveness Value Creation Change Leadership Cross Boundary Effectiveness Value Creation become the focus of development for this council management team

30. 2012 Winning Communities Inc So why develop change readiness? Local Government Strong Achieving Empowered Communities State and Federal Governments Fundamental rethink and value creation Adding new Capabilities Traditional Shared Services Time Community Advancement Future Solutions Challenge to Local Government* Building change readiness accelerates gap closure Become modern facilitators of sustainable regional economic development Develop new partnerships and strategic alliances Build learning and knowledge based communities. Move well beyond their traditional roles Results *Source: ALGA- State of the Regions Report 2003

31. 2012 Winning Communities Inc In a nutshell--  We need to develop a strategic model of where our community needs to be and where we are now –and the priority strategies to close the gaps recognising community aspirations constantly evolve.  Through building change readiness we accelerate gap closure and community capacity to advance and prosper.  Community and organisational culture should align to our goals.  We can identify and build key change capabilities for success.  New transformative leadership and styles will be key.  We need to actively focus on creativity, innovation and learning.  Regional collaboration offers significant added opportunity.  Focus and Prioritisation = Value²

32. 2012 Winning Communities Inc How the MAV is planning to help  Future of Local Government to be an ongoing development program.  Initial focus on: Supporting Council Plan development and review to create a platform for strategic leverage and opportunity. Building strategic capability and change readiness in councils, work teams and regions through focussed activities. Capturing recent investment in regional strategic development by accelerating change and opportunity realisation in regions. Developing a sector wide leadership group supported by communication tools and expert resources with the added benefit of structured input from external stakeholders.

33. 2012 Winning Communities Inc Future of Local Government Councils of the Future (focus Councils) Sharing for Success (focus Regions) Future of Local Government Development (focus State/National)  Existing MAV programs  Council Plan development and review (new offering)  Helping Councils Lead Change (new offerings around creativity and strategic development [Future Solutions] and Transformational Leadership).  Shared Services (economies of scale and scope)  Shared Capability (focus on building new strategic capabilities)  Optimisation (using regional strategic planning for added value creation)  FOLG Summit and workshops  FOLG Leadership Group  FOLG Stakeholder Reference Group  FOLG Website development  FOLG Expert Faculty How might the change framework evolve?