Preparing for Alternative Service Delivery
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Transcript of Preparing for Alternative Service Delivery
Alternative Service
Delivery
Jon WalkerVice President Client Programs & Services SAFEbuilt
Making Decisions for change in a highly
complex and volatile world in which citizens demand engagement
and transparency while also wanting quick,
effective results
• Motivations for Change
• What the Public Wants
• Factors to Consider
Today’s Goal:Preparing for Public Discussion
“…citizens deserve the best possible quality of government services. Government must ensure that those services are produced in an effective, fair and affordable manner.”
Stephen Goldsmithwww.governing.comProfessor of government at the Harvard Kennedy School, former Mayor of Indianapolis and Deputy Mayor for Operations for New York City.
“events, threats and opportunities aren’t just coming at us faster or with less predictability; they are converging and influencing each other to create entirely unique situations.”
2010 Global IBM CEO Study
Public Service Management was much different in my grandfather’s world.
Heck, it is a lot different from the world this guy operated in.
“…whether any given service should actually be accomplished by a government employee, a contractor or a combination of both depends on the service itself and the relative capabilities of the private and public sectors in that realm.”
Stephen Goldsmithwww.governing.com
Think of 2 services your organization offers: • one with which you are proud of or you
have recently made improvements, and• one about which you have recently heard
someone express questions or concerns.
Write the name of the service.
Write down the desired community result/ public good that the service should achieve.
Service Delivery Activity
11
Motivation
12
MOTIVATION TO CHANGESERVICE DELIVERY
Politics
Kremic, T., Tukel, O. and Rom, W. (2006).
Strategy Cost
Kremic, T., Tukel, O. and Rom, W. (2006).
• Actions of other organizations• Get rid of problem functions• Reduce political scrutiny• Better accountability/management
POLITICALMOTIVATION
COSTMOTIVATION
1) Third-party management, 2) establishing an authority, 3) operation by the department itself.
Columbus Ledger-Enquirer (2/13/13)
OPERATING COST SAVINGS: COLUMBUS GAThe Council selected a private pool management company to operate the city's new natatorium. Their three options were:
Both the authority and city options presented projected deficits of over $900,000 while the third-party option annual deficit was $187,710.
OPERATING COST SAVINGS: COLUMBUS GA
Columbus Ledger-Enquirer (2/13/13)
STRATEGYMOTIVATION
Kremic, T., Tukel, O. and Rom, W. (2006).
STRATEGYMOTIVATION• Quality Improvement• Greater flexibility, speed,
technology• Human Resources: Skills
&Workload• Increase focus on core competence• Increase control on critical function
Chris Lagerbloom, City Manager
• Automatic Aid & co-located equipment
• SWAT teams• E911 System• Sworn Officers
STRATEGYMILTON & ALPHARETTA
Start by discussing motivations
How do we talk about change?
When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.
Dale Carnegie
How can I clearly communicate the issues that are motivating my
decisions?
WHAT DOES THE PUBLICWANT?
If you wish to persuade me,
you must think my thoughts,
feel my feelings,
and speak my words.
Cicero
A positive sense of accountability, focusing more on outcomes: ensuring people’s priorities are reflected and they get what they need.
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
ACCOUNTABILITY
When discussing public services with members of the public, perhaps the strongest theme that emerges is a near-universal concern that they should be ‘fair’
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
FAIRNESS
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
Underlying concerns about fairness in service provision:Self-interest (services should be fair to me/my family), and Altruism (services should act as a safety net to prevent certain groups from falling behind the rest of society).
FAIRNESS
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
Alongside the key concern that services should be fair, the public also emphasizes the importance of services being high quality and delivered effectively.
QUALITY
Delivery (30%)• The final outcome• The way the service
kept its promises
• The way the service handled any problems
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
Drivers of ServiceSATISFACTION
Timeliness (24%)• Initial wait• How long it takes overall
• Number of times had to contact the service
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
Drivers of ServiceSATISFACTION
Information (18%)• Accuracy• Comprehensiveness
• Being kept informed about progress
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
Drivers of ServiceSATISFACTION
Professionalism (16%)• Competent staff• Being treated fairly
• Reliability
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
Drivers of ServiceSATISFACTION
Staff Attitude (12%)• Polite and friendly staff• How sympathetic staff
were to the clients needs
What do people want, need and expect from public services?2020 Public Services Trust at the RSA
Drivers of ServiceSATISFACTION
How do the services you
listed compare?
•Understand Desired Community Results (Accountability)
•Clearly defined Service (Fairness)
•Agreement on Indicators to Measure Results (Quality)
How do we talk about change?
Government measure: number of work requests; miles resurfaced; potholes filled
Public measure: smoothness score; number of major jolts encountered per mile; quality of repair; need to repair again after a short time
Involving the Public in Measuring and Reporting Local Government Performance, Barbara Berman, National Civic Review, Sp. 2008
Real Indicators
• This is what you asked for. (How do we know)
• This is what we delivered. (How do they know)• This is how well we delivered it. (How do we agree)
WE HAVE TO BE ABLE TO TELL THE PUBLIC:
Making the
Change
VISION WITHOUT ACTION IS A DAYDREAM.
ACTION WITHOUTVISION IS A NIGHTMARE.
JAPANESE PROVERB
Environment
Strategy
Service Complexity
Cost
Factors to
Consider
Factor to Consider
Environment
What are the current external forces creating stress and
instability for services in local government?
Environmental Scan
ECONOMICCHANGES
Americans are more concerned about the
economy than they are about anything else.
Gallup Poll – July 2013
Percent Job Losses in Post World War II Recessions
http://www.calculatedriskblog.com
Civilian Employment/Population
Source: http://research.stlouisfed.org/fred2/graph/?id=EMRATIO Retrieved 08/18/2013
47
Jan-
03Ap
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Jul-0
3O
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Oct
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Oct
-06
Jan-
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Jul-0
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7Ja
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Apr-0
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-08
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-10
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-12
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Jul-1
310%
15%
20%
25%
30%
35%
40%
45%
50%
% of Unemployed by Length of Time
15 - 26 Weeks 27+ Weeks
Source: U.S. Bureau of Labor Statistics | Division of Labor Force Statistics, www.bls.gov Retrieved 8/17/2013
Pew Research Center – April 2013
Families with a net worth
below $500,000 on average
lost 10% of the value of
nonfinancial assets from
2009 to 2011.(Homes, Cars, Business, Properties)
• Declining tax base
• Infrastructure costs
• Employee-related costs
• Cuts in state & federal aid
City Fiscal Conditions in 2012
National League of CitiesSeptember 2012
Source: http://research.stlouisfed.org Retrieved 08/03/2013
All Employees – Local Government
Includes persons 16 years of age and older residing in the 50 states and the District of Columbia, who are not inmates of institutions (e.g., penal and mental facilities, homes for the aged), and who are not on active duty in the Armed Forces.
DemographicCHANGES
55
56
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1960 1970 1980 1990 2000 2010
Under 20
20 - 29
30 - 39
40 - 49
50 - 59
60 - 64
65 - 74
75+
Population by age range 1960 - 2010
57
58
59
Social Media
The heightened role of the media and social activism have combined to create
greater demand for accountability and
transparency.
Public Sector Research Centre – PriceWaterhouseCooper
The road ahead for public service delivery
“It’s so effective we’re putting together teams of people just to focus on Facebook and Twitter.It helps spread the message like wildfire.”
John Staver, chairman of the Transportation Leadership Coalition and a former Tea Party activist.
Atlanta Journal Constitution (6/5/13) – “Activists enjoy public’s embrace of social media”
• Legal Factors / Compliance• Internal Management & Stakeholders• Stability/Uncertainty• Political Pressure – Citizen Demands
Kremic, T., Tukel, O. and Rom, W. (2006).
Environmental Issues specific to your organization
How have the changes mentioned impacted services?
How has the service changed since 2000? 2008?
How has the community responded?
Factor to Consider
Service Complexity
• Complexity
• Integration
• Asset/Skill Specialization
• Structure/Predictability
• Organizational Impact
Kremic, T., Tukel, O. and Rom, W. (2006).
FUNCTIONALCHARACTERISTICS
Factor to Consider
Cost
Capital Cost Elimination
Operating Cost Savings
Cash Flow Management
Kremic, T., Tukel, O. and Rom, W. (2006).
Purchasing Power
Internal Systems (i.e. HR)
InnovationCompetitionOwnership
OPERATING COST SAVINGS: where does it come from?
CASHMANAGEMENT
Under Resourced
Under Resourced
Over Staffed
In 2010 Troy Michigan’s Comprehensive Annual Financial Report reported a cumulative shortfall of $6.6 million in the building services department.
CASH MANAGEMENT:TROY, MI
Troy’s officials made the decision to privatize its building inspections department with SAFEbuilt.
CASH MANAGEMENT:TROY, MI
TROY MICHIGAN’SRESULTS$1 Million savings in first year
Documented performance improvement
Increased community engagement
Factor to Consider
Strategy
Rightsourcing
RegionalShared
Services
Outsourced Contracts
Public Staff
Selecting the service delivery method which provides the best value, quality and accountability to meet the needs of your community.
Unclear Expectations
Workload Flexibility
Desire In-house Expertise
Critical Information
Core Competency
Public Staff Benefits
Shared servicesLEVERAGING REGIONAL RELATIONSHIPS
• Mutual needs and priorities
• Reduces liabilities
• Creates economies of scale
• Improves communication and coordination
Shared Services Benefits
Contract
OtherAgencies
PrivateCompany
SHARED SERVICES SUCCESS FACTORS
• 1976 – Regional leaders seek water
study and shared approach
• 1987 – Regional Water Study
completed
• 1994 – Authority created by Georgia
General Assembly
UPPER OCONEE BASINWATER AUTHORITY
• 1998 – Corps of Engineers Issue
Permit
• 2002 – Reservoir Completed
• 2008 – Jackson County sues
Authority for yield calculation
UPPER OCONEE BASINWATER AUTHORITY
What I learned:• You’re in a long-term relationship
with mutual assets• Stress in one area can create
stress in other services• Political change has an impact
UPPER OCONEE BASINWATER AUTHORITY
•Access to a Specialized Workforce
•Clear Expectations•Asset Specificity•Flexibility
Outsourcing Benefits
COMMUNITYENGAGEMENT
Before Vendor Engagement
comesCitizen Engagement
What do people want, need and expect from public services
2020 Public Services Trust at the RSA
• decisions shaping public services
• deciding spending priorities. • service design and delivery.
58% of the Public wants to be more actively involved in:
48%of American adults directly took part in a civic group
or activity in 2012
Pew Research Center – Civic Engagement in the Digital Age, April 2013
39%spoke out or contacted a
government official offline
Pew Research Center – Civic Engagement in the Digital Age, April 2013
34%did that online
“Trust-based relationships are the only scaffolding that can effectively manage the increased complexity ahead.”
2010 Global IBM CEO Study
Confidence in Congress Falls to Record Low
http://www.gallup.com/poll/163052/americans-confidence-congress-falls-lowest-record.aspx
June 13, 2013
Retrieved 7/28/2013
POLLS SHOW LEADERSHAVE WORK CUT OUTFOR TRUST ISSUES
Atlanta Journal Constitution (10/10/12)
“We don’t trust you, and we won’t pay to fix some of our region’s biggest problems until we do.”
• government wastes “a lot” of money;
• “not many” or “hardly any” of the people running the government are honest;
• public officials don’t care much what people like them think.
60% OF RESPONDENTS BELIEVED
Atlanta Journal Constitution (10/10/12)
Gallup
Public Trust & ConfidenceIN LOCAL GOVERNMENT
74%great deal or fair amount
“WITH PUBLIC SENTIMENT
BEHIND YOU ANYTHING IS POSSIBLE.
WITHOUT IT, NOTHING IS POSSIBLE.”
- ABRAHAM LINCOLN -
THANKYOU
• Bureau of Labor Statistics www.bls.gov
• Dept. of Commerce Bureau of Economic Analysis www.bea.gov
• Federal Reserve Economic Data http://research.stlouisfed.org/fred2/
• Gallup Poll www.galllup.com/home.aspx
• Pew Research Center www.pewresearch.org
• Calculated Risk www.calculatedriskblog.com
SOURCES FOR DATA
Kremic, T., Tukel, O. and Rom, W. (2006). Outsourcing Decision Support: A Survey of Benefits, Risks, And Decision Factors. Retrieved 2/11/2013 from http://ankara.lti.cs.cmu.edu/11780/sites/default/files/Outsourcing-Survey.pdf
2020 Public Services Trust (2010) What do people want, need and expect from public services? Retrieved 2/12/2013 from http://www.ipsos-mori.com/researchpublications/publications/publication.aspx?oItemId=1345
Capitalizing on Complexity: Insights from the Global Chief Executive Officer Study (2010) IBM http://public.dhe.ibm.com/common/ssi/ecm/en/gbe03297usen/GBE03297USEN.PDF
RESOURCES
Goldsmith, S. (2009) Outsourcing, Insourcing, Rightsourcing, Retrieved 2/11/2013 from http://www.governing.com/blogs/bfc/Outsourcing-Insourcing-Services.html Kavanagh, S., Johnson, J, and Fabian, C. (2011) Anatomy of a Priority- Driven Budget Process, Retrieved 2/7/2013 from http://www.gfoa.org/downloads/GFOA_AnatomyPriorityDrivenBudgetProcess.pdf
Association of Government Accountants (2010) Content Guidelines for the Citizen-Centric Report’ Retrieved 3/8/2013 from http://www.agacgfm.org/AGA/ToolsResources/CCR/ContentGuidelines.pdf
RESOURCES
Berman, B. (2008) Involving the Public in Measuring and Reporting Local Government Performance, Retrieved 3/3/2013 fromhttp://www.fcny.org/fcny/cgp/ReportsandPublications/national_civic_review/#national_civic_review
Civic Engagement in the Digital Age (April 2013), Retrieved 8/17/2013 from http://pewinternet.org/Reports/2013/Civic-Engagement.aspx
Office of the Auditor General, British Columbia. (2010) Guide for Developing Relevant Key Performance Indicators for Public Sector Reporting, Retrieved 2/21/2013 from http://www.sidit-bc.ca/documents/OAGBC_Trust%20Report_Final.pdf
RESOURCES
National League of Cities: City Fiscal Conditions in 2012, Retrieved 8/17/2013 fromhttp://www.nlc.org/find-city-solutions/city-solutions-and-applied-research/finance/city-fiscal-conditions-in-2012
The road ahead for public service delivery, Public Sector Research Centre – PriceWaterhouseCooper http://www.pwc.com/en_GX/gx/psrc/pdf/the_road_ahead_for_public_service_delivery.pdf
Johnson, R.W., Chingos, M. and Whitehurst G. (2013) ARE PUBLIC PENSIONS KEEPING UP WITH THE TIMES? Retrieved 8/11/2013 from http://www.brookings.edu/research/reports/2013/06/12-public-pensions-johnson-chingos-whitehurst
RESOURCES
Alliance for Innovation: Community Engagement http://transformgov.org/en/Article/102997/How_to_Promote_Citizen_Engagement
Association of Government Accountants: Perspectives on Performance www.agacgfm.org/Research---Publications/Perspectives-on-Performance.aspx
RESOURCES – Citizen Engagement
Political PressureCitizen
Demands
Internal Stakeholders
Stability/ Uncertaint
y
Legal Factors
Functional Characteristics
Complexity Integration
Asset/Skill Specificity
Structure/ Predictabilit
y
Organizational Impact
Core Function/
Competence
FlexibilityQuality
Critical Function/ Control
Human Resources:Skills/Workload
Cost Savings
Strategy
SERVICEGoal/Desired Result Cost
Capital Expense
Cash Flow Managemen
t
Environment