Change Models:Managing the Evolving Role of the Budget Office

Presenter:William A. FlexnerFlexner & Associates, Chapel Hill, NC

NC Local Government Budget Association Summer Conference July 18, 2007

Creating RealityFirst we shape our structures, then they shape us Winston ChurchillThe best way to predict the future is to invent it Alan KayThe best thing about reality is you get to make it up Kimbal WheatleyIf you dont know where youre going, youre going to get there anyway AnonymousIf you dont change directions, youre going to get where you are going -- Anonymous

Have you ever used an anonymous opinion gathering device such as this?NoYes

Have you ever driven more than 30 MPH over the speed limit?NoYes

Did you ever lie to Mom?NoWell, it wasnt exactly a lieYes

What is the role of the Budget Office?The non-budget person might say

The budget office translates an organizations plans and policies into financial terms

Starting with this definition

How has the role of the Budget Office evolved over the past 10 years?

What Do We Mean: Change Models?Change: the transition that occurs when going from one state to another. Models: simplified representations used to explain the workings of real world systems, processes or events. Applied to: Budget Office, entire organization, community and other organizations

Change Model # 1Pull Change

In order to solve the Social Security System crisis, President Bush proposed the shifting up to 25% of retirement funds into Personal Savings Accounts.Can you support this solution?NoYes

In order to absorb 8,000 to 10,000 new students a year, the Wake County School Board is proposing to move a significant number of its schools to 12 month calendars. Can you support this solution?NoYes

Scholars at the Phoenix Institute for Public Management have proposed that Local Government Budget Offices stick with the knitting and focus only on budget preparation and not on any expanded roles. Can you support this solution?NoYes

Pull ChangeCommunicatedAccepted

Change Model # 2Starting Change

Have you ever had a really messy office, garage or closet?NoIt wasnt really messyYes

D x V x F > RcStarting ChangeDissatisfactionWith PresentenVision aBetterFutureFirstStepsResistanceTo Change

Change Model # 3Adoption of Innovation

Which of the following best describes you and an Apple IPod?One of the first to buy itBought one early on, but only after talking with someone who already had one Bought one, but waited until the technology and access to songs were proven Am still investigating buying one, but not ready yetReally have no interest

Budget AI is a new software product combining artificial intelligence software with a national local govt budgeting database to reduce the time to produce a first draft of a city or county budget by 50%.

Which of the following best describes your reaction?Sign me up for the Beta version. I want it nowIt sounds great but let me talk with someone who has it up and running Show me that it really works in the real world and Ill consider it Not interested now, but send me updated information periodicallyReally have no interest

Adoption of InnovationSources: Everett M. Rogers, Diffusion of Innovation, 1962 Geoffrey Moore, Crossing the Chasm, 1991Chasm

Change Model # 4Grow or Die

Time1. Startup2. EarlyGrowth3. LateGrowthSource: George Land, Grow or Die, 19734. Limits5. Decline6. New Startup7. New EarlyGrowthGrowth Curve

Where is the China on this growth curve?

StartupEarly growthLate growthLimitsDeclineNew startupNew early growth1234567

Where is the U.S. on this growth curve?

StartupEarly growthLate growthLimitsDeclineNew startupNew early growth1234567

Where is YOUR Budget Office on this growth curve?

StartupEarly growthLate growthLimitsDeclineNew startupNew early growth1234567

Change Model # 5Linking Strategy to Action

Change: Linking Strategy to ActionWW

Where nowWHWhatHowWWWho/When/Where future

Change Model #6

Setting Priorities

Focus on the WhatsLets say you have developed a list of Critical Success Factors (CSFs)the Whatsthat will help you get to Where you are goingAaaaa aa aaaaa aaB. Bbbbbbb bbb bbbbbbC. Ccc ccc ccc cccD. Ddddd ddddd ddddddddd dE. E eeee eeeeeee eeee F. Fffff ffff ffffff ff ffff fff G. Ggggg gggggg ggg ggggggggH. Hhh hhhhhh h hhhI. Iiiiiiii iii iiiiiiiii iiiiiiiJ. Jjjjjjjjjjjj jjjjjjj jjjjjjjjjjjjjjHow do you assess which ones are more important; how do you determine what to focus on?

IMPORTANCECURRENT PERFORMANCEHighLowHighFocus on the WhatsFrom Option Technologies Interactive, 1980s to present

IMPORTANCECURRENT PERFORMANCEHighLowHighCDBEGAFHIAssessing the WhatsJFrom Option Technologies Interactive, 1980s to presentStrengthsOverkillsGripesOpportunitiesMaintainersEmergents

Change Model #7

Action Planning

Focus on the HowsHows (actions)Whats (CSFs)ImpactsCFAGJHBInstall cost softwareUse cost informationTrain collections staffInstall new equipmentEngage in P.R.Target key marketsReduce turnaround timeDevelop incentive planGenerate new ideasDetermine what works2134311112From Hardaker & Ward, Getting Things Done, Harvard Business Review, 1987

Change Model # 8Creating anAdaptive Organization

Which of the following would you prefer? Have someoneTell you what to doAsk your opinion about what should be done

Organizational ChangeTraditional

Participative

AUTHORITYMANDATE(Telling)COMPLIANCE(Have To)TIMEPRODUCE(Minimum Standards)LEADERSHIPINFLUENCE(Asking)COMMITMENT(Want To)TIME & ENERGYPERFORM(Meet Expectations)

TimeUniversal

Discontinuous break means you only have 2 possible approaches: (1) find dramatic new ways of doing things or (2) find dramatic new things to do.