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FINANCE
We also see a number of other factors that individual councils must address :
• Ageing Technology and under-investment
Across their organisations , many councils currently support a large number of outdated IT systems , set within a complex and inefficient infrastructure that are not keeping pace with current practices and limiting their ability to grow . In addition , the capability and operating models within internal IT departments have not evolved and can no longer meet local government demands .
Councils which have recognised their under-investment in IT , and are prepared to evolve the maturity of their IT function as well as upgrading their systems by adopting cloud-based technology , will create a significant advantage and be more flexible and agile .
• Historical planning methods
The approach to planning has not adapted to the changing environment . Planning has not caught up with ongoing development and is largely still run on a functional / organisational level , rather than being service-led . But it is service-led planning that will enable strategic direction setting , realistic cost assessments , individual staff KPIs , and appropriate funding for technology or outsourcing . Hard questions need to be addressed : which services shall be retained , shared , externally managed or discarded ? These decisions will form the blueprint for Councils as they approach 2020 and beyond .
To deal with this new landscape , we suggest considering the following key actions :
( a ) Place the customer at the center
As the most granular tier of government , councils have the greatest capacity to identify and respond to emerging community needs . This is a strength that must continue to be reflected in how local government determines shifting customer demands and ensure that its governance and resource allocation models are flexible and dynamic . Across the country , local governments are striving to move towards customercentric models of service delivery that anticipate and respond to community needs in a sustainable and agile manner . Having clear views on the cost to serve and the outcomes delivered is pivotal in this environment .
( b ) Re-think business as usual
Changing community expectations requires a continual process of self-reflection and evaluation by councils on the way they do business . As highlighted by the Australian Centre for Excellence in Local Government , “… service delivery reviews are vital processes to ensure local government services are appropriate , effective and efficient .” 3
Critically , they should not be a point in time exercise , but an iterative program of review that drives a culture of continuous improvement and smarter investment in service delivery . This requires fresh thinking , of challenging the way ‘ things have always been done ’. It involves redesigning operating models and organisational structures , adopting best practice processes , driving cultural change , adopting different and innovative methods for engaging key stakeholders , considering alternative approaches and models for service delivery and overall critically examining every component of the organisation .
( c ) Revisit and reshape IT
Councils need to invest in the creation of a future-proof IT architecture , incorporating modern technology principles and practices such as cloud , ‘ As a Service ’, Business and Process led specification and Agile methods . With today ’ s shift towards cloud-based software as a service solution , systems that were previously out of reach are now affordable to local government . Coupled with renewed interest in the
GOVLINK » ISSUE 2 2017