implementing the australian business excellence framework ... · summary of survey responses from...

Implementingthe

AustralianBusinessExcellenceframeworkin

AustralianLocalGovernment

SummaryofSurveyResponsesfromEighteenCouncilsinthe

LocalGovernment

BusinessExcellenceNetwork

Preparedbythe

UTSCentreforLocalGovernment

onbehalfofthe

AustralianCentreofExcellenceforLocalGovernment

SarahArtist

ProgramManagerUTS:CLG

February2010

ACELG–ANINTRODUCTION .................................................................................. 3

ABOUTTHEBUSINESSEXCELLENCENETWORKSURVEY .......................................... 3

PROFILINGABEFIMPLEMENTATION....................................................................... 5WHYCOUNCILSADOPTEDTHEABEF ............................................................................................ 5LENGTHOFTIME ....................................................................................................................... 5RESOURCESREQUIREDFORIMPLEMENTATION................................................................................ 6TAILORINGCONTENTFORIN‐HOUSENEEDS ................................................................................... 6INVOLVINGMANAGERS .............................................................................................................. 7INVOLVINGCOUNCILLORS ...........................................................................................................7INVOLVINGOUTDOOR/FIELDSTAFF .............................................................................................. 8

BENEFITSANDLIMITATIONSOFIMPLEMENTINGTHEABEF.................................... 9BENEFITSOFTHEABEF .............................................................................................................. 9BUSINESSIMPROVEMENTSANDEFFICIENCIES ................................................................................. 9CUSTOMERBENEFITANDCOMMUNITYVALUE..............................................................................11GAPSANDDISADVANTAGES ......................................................................................................11

SUPPORT–AVAILABLERESOURCESANDFUTURENEEDS ..................................... 13SUPPORTFROMSAIGLOBAL .....................................................................................................13SUPPORTFROMTHELOCALGOVERNMENTBUSINESSEXCELLENCENETWORK ....................................14FURTHERSUPPORTNEEDED ......................................................................................................14

SUMMARYOFSURVEYRESPONSES ...................................................................... 17PROFILINGIMPLEMENTATION ....................................................................................................17ABEF:BENEFITSANDDISADVANTAGES ....................................................................................... 17AVAILABLESUPPORTANDFUTURENEEDS.................................................................................... 18

FURTHERACELGRESEARCH.................................................................................. 19

APPENDIX–SURVEYQUESTIONS ......................................................................... 20

ACELG–AnIntroductionTheAustralianGovernmentiscontributing$8millioninfundingforaCentreforExcellenceinLocalGovernmenttoenhanceprofessionalismandskills,showcaseinnovationandbestpractice,andfacilitateabetterinformedpolicydebate.ThenewcentrewasannouncedbythePrimeMinisterattheinauguralAustralianCouncilofLocalGovernmentmeetingon18November2008.

AconsortiumledbytheUniversityofTechnology,Sydney(UTS)hasbeenselectedtoestablishthecentrefollowingacompetitiveprocess.TheconsortiumpartnersaretheUniversityofCanberra,AustraliaandNewZealandSchoolofGovernment,LocalGovernmentManagersAustralia,andtheInstituteofPublicWorksEngineeringAustraliaLimited.OtherprogrampartnerswillincludetheAustralianNationalUniversity,CharlesDarwinUniversityandEdithCowanUniversity.

TheCentrewill:

• buildonexistinglocalgovernmentprogramsandnetworks;• encourageinnovationandbestpracticeacrosslocalgovernment;• fostergoodgovernanceandstrategicleadership• supportactiontoimprovelocalgovernmentworkforcecapabilitytoaddress

skillshortagesandattractandretainskilledstaff;• promotenewandimprovedtraininganddevelopmentprograms;and• stimulateandinformdebateonkeyissuesforlocalgovernmentincoming

decades.

Activitieswillbegroupedinsixprogramareas:

• Researchandpolicyforesight• Innovationandbestpractice• Governanceandstrategicleadership• Organisationcapacitybuilding• Rural,remoteandIndigenousAustralia• Workforcedevelopment.

AbouttheBusinessExcellenceNetworkSurveyInrecognitionofamutualcommitmenttoexcellenceinlocalgovernment,thenewlyformedAustralianCentreofExcellenceforLocalGovernment(ACELG)hasrespondedtoarequesttoexplorefuturecollaborationopportunitieswiththeLocalGovernmentBusinessExcellenceNetwork(LGBEN).ACELGhascommissionedtheUTSCentreforLocalGovernmenttoundertakeareviewoftheimplementationofexcellenceframeworksinlocalgovernment,includingtheAustralianBusinessExcellenceFramework(ABEF).

LGBENcouncilswereinvitedtoparticipateinsomepreliminaryexplorationofissuesandoptionsinimplementingtheABEFinlocalgovernmentinAustralia.Theaimsofthispreliminaryresearchwereto:

1. CanvassthebenefitsandissuesofimplementingtheABEFinlocalgovernment;2. Reportthisinformationbacktothebroaderlocalgovernmentcommunityto

furtherpromotetheadoptionofexcellenceframeworks;and3. FeedthisinformationbacktoLGBEN,ACELGandSAIGlobaltoassistthemin

designingfuturesupportforpromotingexcellenceinlocalgovernment.

GeneralManagerswithintheLGBENCouncilsweresentthesurveybyemailinearlyDecember2009,withreturnsdueinlateJanuary2010.Eighteenofthesurveyswerereturned,andafulllistofthesurveyquestionsisincludedinAppendixOne.

InrecognitionofthecollaborativenatureoftheimplementationoftheABEFwithinCouncils,itwassuggestedthatthissurveybecompletedinconsultationwitheachoftheLGBENparticipantswithintheircouncils.

Thefollowingsummaryofresponsesmaintainstheanonymityofindividualcouncils,withanoccasionalexceptionwherecouncilshaveprovidedusefulfactualinformationabouttheimplementationoftheABEFintheirowncouncil.Anonymousdirectquotesarepresentedanditalicisedinthesummaryasthemostfaithfulrecordofthecouncils’thoughts,experiences,opinionsandintentions.

ProfilingABEFImplementation

WhyCouncilsadoptedtheABEF

MostofthesurveyedcouncilsusetheABEFasastructuredmeansforachievingcontinuousimprovementacrosstheirorganisations.TheABEFisseenas:

Anumbrellaunderwhichanumberofinitiativescouldbeintegratedtoformonecoherentorganizationimprovementstrategy;and

AprovenframeworkforcontinuousimprovementofCouncilprocessesandorganisationalculturewhichcouldelicit,motivateandcapturetheparticipationofallCouncilstaff.

TransformationswhichthecouncilshopedthatABEFmightdeliveronceadoptedincluded

Influencingtheorganisation’sculturetobeastrongexecutionculture;

Efficienciesinprocesses,relationshipbuildingandstaffempowerment;

A‘teambased’approachthatwoulddeliverprocessimprovement,teambuilding,andcommunicationefficiencies;and

Wewantedtoberecognisedbyourcommunityasaleadinglocalgovernmentauthorityandanemployerofchoice.

ThedegreetowhichABEFwasusedbyotherorganisations,includingothercouncilsandwithintheprivatesectorwasalsoanimportantfactor.TheABEFwasseenas

AtoolwithexistingparticipationfromotherAustralianlocalgovernments;

Enablingsystemsandprocessestobecomparedacrossallsectors;and

Leadingtobenchmarking,supportandshareddevelopmentwithinourindustry.

LengthofTime

AroundhalfofthesurveyedLGBENcouncilshavehadtheABEFinplaceforlessthantwoyears:

Lessthanoneyear

Onetwoyears 35years 510years

Newcastle AraratBrimbankBrokenHillCampbelltownPortMacquarieHastings

WarringahYarraRanges

Barossa‐3SurfCoast‐3

BawBaw‐5Hobart‐10Holroyd‐9Marion‐5Mildura‐6PortStephens‐8Rockdale‐10WaggaWagga‐6

ResourcesRequiredforImplementation

ImplementationoftheABEFhasrequiredsignificantresourceswithinthesurveyedLGBENcouncils,includingconsultancyservicesandallocationofspecialiststaff.Thesecostsvaryfromcounciltocouncil–oneofthecouncilsestimatedthetotalexpenseofimplementingtheABEFoversixyearsataround$400,000includingtraining,consultingfees,travelanddisbursements.

ConsultingservicesfromSAIGlobalaremorecommonlyusedatthebeginningoftheimplementationprocess,within‐housefacilitatorsandtrainerseventuallytakingoverthisroleinmostcouncils,howeveracoupleofcouncilscontinuetouseexternalfacilitators.Costsvaryfromcounciltocouncil,rangingfrom$10,000to$100,000spentonconsultantsinthefirstyear.Oneofthecouncilsspent$50,000onconsultingservicesforthefirstyear,$40,000forthesecondyear,$30,000forthethirdyearand$25,000foreachsubsequentyear.

Manycouncilsrecruitorre‐allocateinternalstafftoco‐ordinatetheimplementationofbusinessexcellence.Thispositionmayeitherbeparttimeorfulltime,andiscommonlylocatedwithinthehumanresourcesororganizationdevelopmentunit:

WehavelocatedourBusinessExcellencespecialistintheOrganisationalDevelopmentunit,duetothestronglinkageswithCulture,andourfocusonServiceQuality,whichhasbeenintegral.

OthercostsmentionedinthesurveyassociatedwithimplementingtheABEFincluderesourcematerials,software,SAIpublications,venuehireandtraveltoLGBENmeetings.Councilstaff,managersandCouncillorsalsospendtimetoparticipateinthetrainingandimprovementinitiatives.

TailoringContentforIn‐houseNeeds

OnlythreeoftheeighteensurveysreturnedstatedthattheyhadnotsubstantiallytailoredtheABEFmaterialstosuittheirowncouncils.Morecommonlythematerialsareprogressivelytailoredthroughtheimplementationprocess:

Muchofourmaterialhasbeenrewrittentoreflectlocalgovernmentlanguageandculture.WehavealsoredesignedtheselfassessmentandPDSAprocesstoalignwithourbusinessplanningprocess.

ThefollowingcasestudiesfromcontributingcouncilsdemonstratethebreadthofinnovationwithinthecouncilsintailoringandadaptingtheABEFtosuittheirownorganisations.

AraratCouncilusestheABEFasthebasisfortheirtoolsandimplementation,buthavemodifiedthesetosuittheirownneeds.Thecouncilhasinplace:

• In‐housedevelopmentofvarioustemplatestoassiststafftounderstand,utiliseandimplementtheABEFegSystemsviewstemplates,selfassessmenttemplates;

• InclusionofaBusinessExcellencestatementinallpositiondescriptionsandvariousotherdocuments;

• InclusionofaCouncillors’GovernanceSystemsViewintheCouncilPlan;

• FortnightlyBusinessExcellencesupportworkshops,opentoallstaffonavoluntaryattendancebasis;and

• BusinessExcellenceinductionworkshopsfornewemployees.

PortStephensCouncilhasadoptedafiveelementDrivingOrganisationalExcellenceModel:

• Understandandlivetheprinciplesofbusinessexcellence;

• Developasystemsviewoftheorganization;

• Selfassessthecurrentstate;

• ImproveusingPDSAimprovementtools;and

• Capturethememory.

ThecouncilhasinplaceanOrganisationalExcellenceManualwhichprovidesthephilosophy,processesandtemplates,andhavealsodevelopedacomprehensivesetoftrainingmodulesforstaffcoveringvariousaspectsofbusinessexcellence.Anintranetsiteonbusinessexcellencealsoprovidesstaffwitheasyaccesstoinformation.

AtRockdaleCityCounciltheABEFhasbeencustomisedaroundotherintegratedqualitymanagementsystems(ISO:9001,ISO:14001andAS:4801).Ithasbeenimplementedinateambasedapproach,whichtheycalltheTeamBasedAppraisalprocesswhichreplacedanindividualemployeebasedstaffappraisalprocess.

AstheyhavemappedallprocessesviatheQualityManagementSystemapproach,theyhaveusedtheABEFasachangemanagementtoolusingtherigorandfocusofitssevenguidingcategoriesandprinciplesastheframeworkthatdrivesthecorporatedirectionsorfocusfortheyear.Theyhavedevelopedpolicies,framework,trainingandassessmentmethodologymaterialsin‐housetosupporttheTeamBasedAppraisalprocessthattheABEFunderpins.

InvolvingManagers

Amongallofthelocalgovernmentstakeholdergroups,theimplementationoftheABEFmostcloselyinvolvedmanagerswithinthesurveyedcouncils:

ManagersinourorganisationdriveBEandareresponsibleforcompletingannualselfassessmentswiththeirteamsandsupportingPDSAs;and

ThepredominantgroupofemployeesinvolvedintheinitialimplementationprocesswasCouncil’sLeadershipGroup(ManagersandDirectors).

InvolvingCouncillors

Theinvolvementofcouncillorsinsurveyedcouncilsvariedfromnoneatalltoalittle,anditseemsthatthisgroupisnotsystematicallyengagedbytheABEF.Onlyfouroftheeighteencouncilshaveactivelyengagedtheircouncillors:

CouncillorshaveaSystemsViewandhaveundertakenaselfassessmentagainstthecategories.

Halfofthesurveyedcouncilshavenotengagedtheircouncillorsatall:

Itisourintenttoinvolveallareasofthecouncilovertimeincludingcouncillors.Wehaveoptedfora‘buildingblocks’approachtoimplementationwhichatthisreasonablyearlystage,hasengagedanumberofstaffacrosstheorganisation

Threeofthesurveyedcouncilshaveattemptedtoengagecouncillorswithlimitedsuccess:

Councillors(allnine)wereinvitedtoanumberofbriefingsessionstoreceiveinformationaboutABEF,howeveronlyapproximatelyhalfattended.Sincethelastgeneralelection(November2008)noCouncillortrainingorinformationsessionshavebeenprovided.

InvolvingOutdoor/FieldStaff

Someofthesurveyedcouncilsorganizedprocessesforinvolvingallstaffmembers,andothersdesignedwaysofinvolvingoutdoorstaffspecifically.ThefollowingisadescriptionfromHolroydCounciloftheirDrivingOrganisationalExcellence(DOE)Program:

Todateupto60%ofstaffhavebeendirectlyinvolvedintheDrivingOrganisationalExcellenceprogram,includingbothofficeandfieldstaff.Theprogramtakesagroupoftwentystaff,consistingoffourcrossfunctionalteamsoffivestaff,throughaformalworkshopprogramlinkedtoaprojectdedicatedtoeachteam.

Theteam’sresponsibilityistoutilisetheprogramskillsthroughapracticalsituationofresolvingtheirdefinedproject.TheteamsaresupportedbyaDirectorastheirteam‘sponsor’andbuildontheirleadershipskillsbyprovidingmonthlyupdatestotheSeniorManagementTeam.

AttheendofeachDOEprogramaformalreportisprovidedaswellasapresentationatabreakfastbriefingtotheirworkcolleagues,generallyattendedbyupto100staff.Inassessingthestrengthsandareasofimprovementoftheprogramadebriefofstaffisundertakenandadjustmentsmadeasrequired.

ThedepotversionofDOEisanabbreviatedformoffourworkshopsoveratwomonthperiodandprojectsthataredepotstaffbased.

BenefitsandLimitationsofImplementingtheABEF

BenefitsoftheABEF

AllofthesurveyedcouncilsderivedbenefitsfromadoptingtheABEF,assummarizedbyonecouncil:

Otherthanbeinginstrumentalinintroducingacontinuousimprovementculture,thetangiblebenefitshavebeensubstantialandlongstandingfrombothstrategicandoperationalviewpoints.Asharedunderstandingoffuturedirection,understandingcommunityexpectations,employeeempowermentandunderstandingandimprovingprocessesgivesaconfidenceintheorganisation’sabilitytoadapttochangingcircumstances.

InadditiontheydescribedtheABEFasprovidingastructuredprocessforcontinuousimprovement,afacilitatorofbettercommunication,atoolforteambuildingandaligningtheorganizationtocorporatepriorities,acatalystforfindingfinancialsavings,andavehicleforprovidingaccesstobestpractice.

Structuredprocessforcontinuousimprovement:

StaffhavebeendevelopedandenabledtousetheBEFasalenstoholdupagainsttheorganisation,enablingmorecriticalandobjectiveanalysistotakeplace.Assessmentprocesses(internalandexternal)havebeenverybeneficial,complementinternalassessmentandauditingactivities,andhaveassistedinsettingprioritiesforimprovementandfunding.

Bettercommunicationandsharedcommitmenttoimprovements:

UseoftheBEFhasfacilitatedawarenessanddiscussionbetweenstaffandexecutiveinaconstructivemanner.TheBEFhaspromptedsomeresearchinto,andanalysisofstafffeedbackonissuesandworkpracticesthathavenotpreviouslybeenthefocusofexecutiveattention.

Teambuildingandalignmenttocorporatepriorities:

Teamsareworkingtogethertocompletesystemsviewswhichprovidethemwithaclearerunderstandingoftheirbusinessunitandwheretheyfitinthebiggerpicture.

Financialsavings:

Financialbenefitsdemonstratedthroughthemovementawayfromconsistent10%operatingdeficitsto4consecutiveoperatingsurpluses.SavingshaveresultedinmoneybeingallocatedtoourFundingCommunityPrioritiesprogram($4.7m).

Accesstobestpractice:

BEFhashelpedusaccessBestPracticeinbothPrivateandPublicorganisations,withtheLGBENprovidingahugesupportatSystems,ProcessandRelationshiplevels.

BusinessImprovementsandEfficiencies

ThesurveyaskedthecouncilsiftheyhadquantifiedanybusinessimprovementsimplementedfromtheABEF,andmostofthecouncilshadnotquantifiedthese:

Muchofthechangehasoccurredculturallywithinourorganisationandisdifficulttoquantify….

InrealityitisdifficulttomonitorandabsolutelyattributebusinessimprovementsandefficiencygainstotheBEFandthisisprobablysomethingwecandobetter.

Themeasurementorquantificationoftheimprovementshasnotyetoccurred,howeverasecondorganisationalselfassessmentplannedfor2010shouldprovidesomemeasureofimprovementoncetheresultsareknown.

ManyofthecouncilswereabletodescribeandquantifytheactivitieswhichhadoccurredasaresultofimplementationoftheABEF,andtheseincluded:

• Identificationofcouncilservicesandprocesses;• Businessexcellenceevaluations;• Recommendationsandactionplansforprocessimprovements;and• Processimprovementslinkedtopersonaldevelopmentplans.

Someofthesurveyedcouncilsofferedsomequantifiedbusinessimprovements,forexampleatHobartCityCouncil:

The3externalbusinessexcellenceevaluations(2000,2005,2008)sofarcompletedprovidetheoverallcoreindicatoroftheorganisation’scontinuousimprovementmaturity.ScoringagainsttheABEFhasprogressedfromascoreof321/1000(2000)to856/1000(2008).

andWarringah:

Theestablishmentofa‘valuesbasedorganisation’leadingtoareductioninunplannedleave,staffturnoverandinsomeareasincreasedproductivityandteamwork;improvementsinsomereportingprocessesintermsofthecaptureandtranslationofdata;improvedlinkagesbetweentheStrategicCommunityPlan,QuarterlyandAnnualReports;improvementsininternalreferralprocesses;andthedevelopmentofanInductionDVDforcasualstaff.

andCityofMarion:

• Operatingdeficitsof10%pre2000($3.6millionin19981999)tomoderateoperatingsurplusessince20052006(4yearsinarow);

• Expenditureonassetmaintenanceandreplacementhasbeensignificantlyincreasedfromanactualspendof$9,398,000in02/03toabudgetof$16,330,000in09/10;

• ImprovementsusingtheBEFapproachhaveresultedin$4.7mofsavingshelpingtomeettargetsdevelopedtoresourceour“FundingCommunityPriorities”initiative;

• DevelopmentAssessmentapplicationswentfromcompletionratesof8094%withinstatutorytimeandfluctuatedconsiderably,butnowareveryconsistentaround9798%.Completionwithinonethirdofstatutorytimehasgonefrom40%to80%;

• Employeeretentionhassignificantlyimprovedfallingfromover16%toremainaroundthe10%marksincecommencingthisapproach.Thereductioninturnoverfrom16%–10%isanannualsavingofbetween$551,100and$1.65millioneveryyear(actualcumulativesavingsince2002ofbetween$3.8millionand$11.5million).

CustomerBenefitandCommunityValue

Aswithidentifiedbusinessimprovementsdiscussedintheprecedingsection,surveyedcouncilswereconvincedofthebenefitstocustomersandcommunityofthevalueoftheirimprovementprogram,howeverthequantificationofthesewasproblematic:

Abetterorganisationalculture,webelieve,translatesintobetterdeliveryofservices.However,quantifyingandmeasuringtheseimprovementscanbeelusive.

Somecouncilsdidhaveclearimprovementstolist,andquantifiedbenefitstocustomersandthecommunitywerecitedeitherasimprovementstocustomerserviceprocesses,ormeasuredincreaseincommunitysatisfaction:

Ourcustomersatisfactionscoreshaveincreasedsince2005andmuchofthefeedbackwehavereceivedhasindicatedtheimprovementsimplementedhavemadeadifference;

Severaloftheprocessesselectedforimprovementhavebeendirectlyrelatedtoservicetothecustomerorcommunitywithbenefitsofconsistentlymoretimelyandaccurateinformationflowsinresponsetoenquiries,requestsandcomplaints;Thephoneresponsetargetof95%directdialcallsansweredwithin5ringswasfirstachievedinFebruary2004,andsincethattimehasbeensubstantiallymaintained.Similarly,customerservicerequestshavebeenmanagedmoreeffectively,withatargetof90%completedwithintimeandrescheduledtime.Followingprocessimprovementandsignificantresponsefromstaff,thistargethasnowbeenachievedsinceJuly2008;Regularcustomersurveysareundertakentoaligncustomerexpectationswithservicedeliverywherepossible.Eachteamhasundertakencustomersurveystogaugetheperformanceoftheirteamsandalsothealignmentoftheirservicestocorporatedirectionsandcustomerexpectationsandneeds;and

Therehasbeenvalueintermsofanimprovedqualityofservicetocustomersandthecommunityingeneralasaresultofbetterrecruitmentprocesses,animprovedinductionprocessasstatedabovealongwithsomeofthetoolssuchasePlanningthathavebeenmadeaccessible.

GapsandDisadvantages

GivenanopportunityinthesurveytoidentifygapsanddisadvantageswiththeABEF,tenoftheeighteenLGBENcouncilsspokeonlyoftheeffortrequiredratherthananydeficiencieswiththeframework:

Therearenodisadvantagesbutsomeofthebarriersincludethedifficultyofmanystaffinunderstandingthattoimprovethesystemyouneedbeabletostepoutsideofwhatyouhavealwaysdoneandlookatthesystemfromoutside.Thismeanstimeawayfromdoingthetaskstoreviewinghowthetasksarecompleted.

SomeofthesurveyedcouncilsofferedcriticalcommentsabouttheABEF,mentioningthelevelofresourcesrequiredovertime,thelackofapplicabilityoftheframeworklanguagetothelocalgovernmentcontext,aninsufficientcoverageofcommunitygovernanceandpoliticalfactors,andcommercialcopyrightrestrictionspreventingbetterexchangeofinformation.

Resourcesandcommitmentrequiredovertime:

ImplementingtheABEFnotonlyrequiressignificantorganisationalresources–itrequiressignificantandenduringexecutivesupportfirst,followedbythestrongsupportofatleastamajorityoflinemanagers.Withoutthis,staffinvolvementandperceptionoftheprogramwillwaneorfalter.Next,astaffmembercapableofdrivingtheprogramandthenecessaryresourcestomaintainanddeveloptheprogramisvital–overrelianceonoutsideconsultantsresultsintheprogrambeingdrivenexternallyandintermittently.

Languageinappropriatetolocalgovernment:

“TheLeveragedDynamicEmpowermentImmersionFrameworkParadigm.”Staffhavearighttobedubiousofbuzzwordsandphrases,andtolinkthemwiththeABEF.OneofthemostimportantpsychologicalissueswhichshouldbesolvedisthetranslationofABEFterminologyintoplainEnglishtermsknownandusedwithinyourorganisation.Ifthisdoesnotoccur,staffbegintolosetrust/interest/sincerityintheABEFwithintheorganisation.

Over‐emphasisonassessmentandquantifyingimprovements:

“Howdidwedo?”Assessment–selfdoneorexternallycontracted–isthemajorfocusoftheABEF,asitiswithBusinessExcellenceprogramsinEuropeandtheUS.Whileextremelyvaluable,overlyfocusingonassessmentcausesanimbalance,andtheABEFisnotashelpfulinprovidingfrontendfocus.Someoftheotherframeworksinternationallyhaverecognisedthis,andincorporatedstrongerprojectmanagementandstrategicplanningcomponentscurrentlylackingintheABEF.

Aprivatesectorfocuswhichexcludestheroleofcommunityandcouncillors:

Themainareaforimprovement(gap)seemstobetherecognitionoftheimportancethatcommunityandCouncillorsplayinthestrategicandoperationaldirectionsettingforCouncils.Ratherthanfocussingon‘competitiveadvantage’,‘marketshare’or‘profit’,theBEFcoulddemonstrateagreateremphasisoncreatingpublicvalue,akeydriverforlocalgovernment.

Turnoverinleadershipresultinginlackoforganizationalcommitment:

Ourjourneyhasbeensomewhatfraughtwithsackings,investigationsbytheDLG,apatheticGM'setcetcsoweareyettoseeanyrealbenefitsoftheABEFdespitetheheavyinvestment.

Lackofinformationapplicabletolocalgovernment:

Themajorissueisthattheframeworkistheintellectualpropertyofacommercialenterpriseratherthanbeingalignedwithnationalgovernmentstandardsasperfore.g.competencystandards.ThismadeitinitiallyquitedifficulttoresearchmuchaboutABEFinameaningfulwayotherthangettingacopyoftheFrameworkitself.

Support–AvailableResourcesandFutureNeeds

SupportfromSAIGlobal

SAIGlobalprovideanumberofservices,andthecouncilsinthesurveymentionedusingthefollowing:

• Purchaseofdocumentation;

• Mentoring,supportandadvice;

• In‐housetrainingfromSAIconsultants;

• PubliccoursesleadingtoqualificationsegGraduateCertificate;and

• ExternalassessmentfortheExcellenceAwards.

TherewereseveralpositivecommentsaboutservicesfromSAIGlobal,inparticularabouttheirmentoringrole,networkcontactsandteachingmethods:

Throughouttheentirebusinessexcellencejourney,SAIGlobalhasprovidedaninvaluablementorrole,whichiscomplementedbyprovisionoftheoccasionaltrainingprogram(suchasGraduateCertificateinBusinessExcellence);

SAIGlobalhavebeensupportiveinprovidingapointofreferenceandnetworkcontacts;and

AlloftheexternaltrainingreceivedbyCouncilhasbeenprovidedbySAIGlobal.Theirapproachandteachingmethodsmaynotimmediatelyappealtoall,butoveralltheexperienceCouncilhashadwithSAIGlobalhasbeenpositive.

Therewerealsoseveralnegativecomments:

Unfortunately,itdoesnotappearthatABEFisahighprioritywithinSAIGlobalandweinitiallyfounditdifficulttoaccessinformationaboutABEFfromthem(e.g.theirphoneoperatorhadnoideawhotoreferusto).ThereisageneralviewthatSAIGlobaldonotaddmuchvalueandtheircoststructureisprohibitiveformanycouncils.

WehavestruggledtofindengagingfacilitatorsforBEwhocantranslatetheirlearningsintolanguagethatistransferableintolocalgovernment&ouraudiences.

TheexternalproviderstendtopackagetheABEFwithotherprograms(e.g.FISH!)ormaterials(e.g.ToolTime)totheextentthattheyappeartobepartoftheABEF–thisobfuscatestheABEF,andinourorganisationithasbeenaverydifficultissuetorectify.Ifnotrectified,thenimplementationoftheABEFbecomesmorecostly.ItwouldbebetteriftheABEF(oranyfollowonframework)stoodonitsown,withsupporttoolsbeingidentifiedassuch.

TheservicesfromSAIGlobalhavebeenproblematicforsomecouncils,inparticulartheirlackofavailability,lackoffocusonthelocalgovernmentsectorandcost.Thereisalsoaperceptionthattheproductsdonottransfertolocalgovernmentaudiences,andonecomplainedthatotherproductsarepromotedtothecouncilthroughABEFtraining,therebyincreasingthecost.

SupportfromtheLocalGovernmentBusinessExcellenceNetwork

LGBENisanetworkoftwenty‐sevencouncilswhoareactiveinimplementingtheABEFwithintheirowncouncils.Thegroupmeetsregularlythroughouttheyear,involvingbothCEOsandpractitioners.Thegroupmaintainsamembersonlywebsitewhichenablesthesharingofdocumentationandinformation.Somecouncilsbuildworkingrelationshipsthroughthenetwork,visitingandcontactingeachotherbetweenmeetingstoresolveissuesrelatingtoABEFimplementation.

SurveyresponseswereoverwhelminglypositiveabouttheroleoftheLGBEN:

Thenetworkprovidesaveryusefulresourceandvehicleforsharing“learnings”withotherCouncilsandtoassistthemwithimplementingtheABEF;

TheLGBENhavebeenawealthofinformationinestablishinganimplementationplan.Supportandadviceisalwaysavailablethroughphonecallsandemailstonetworkmembers.DocumentationontheLGBENwebsitehasbeenveryusefulandattendanceatmeetingsprovidevaluableinformation,ideasandencouragementtomoveforwardwithourimplementation;

Thesupporthasbeenoneofsharingeachothersjourneyandapproach,someeducationinrelationtobenchmarkingandleadershipbutgenerallysupportoflikemindedorganisationsandindividualswithafocusonqualityandimprovingourindustry;and

TheLGBENhasbeenvaluablethroughthenetworkingopportunitieswithotherCouncil’sinasimilar,ormoreadvancedstageofBEFimplementation,andthroughthecasestudiesandotherexamplesofBEFimplementationsharedbytheotherattendees.WithoutanetworkingbodyliketheLGBENitwouldbeextremelydifficultforasingleCounciltogainanawarenessofthedepthandbreadthofBEFimplementationinotherLGA’s,andextremelydifficulttoengagewithotherpractitionerswhoarewelladvancedintheirBEFjourneys.

Onecouncilmentionedthatthecostoftraveltointerstatemeetingswasdifficult:

Translatingregularinterstatetravelintomeasurablevaluewithinourownorganisationismoredifficult.

Acoupleofcouncilsalsomentionedthattheadministrativematterswithinmeetingsweredisruptive:

Sometimesthenetworkcangetcaughtupinthelittlethingswhichmeansthatthenetworkpartofthemeetingsisreducedwhilewediscusswhotypesminutesorotherminimalstuff–thisshouldjusthappen.

Onecouncilsuggestedthatmembershipfeestoemployadministrativestaffwouldresolvethisproblem:

Thenetworkisvaluable,andtherehasbeensomediscussionofhowtoimproveitsvaluetoparticipantsthroughemployingadministrativestaff,andalthoughthiswouldraisethecostsofparticipation,itreallyappearsasifitisnecessary.

FurtherSupportNeeded

ThefinalquestioninthesurveyaskedrespondentsabouttheadditionalsupportwhichwouldfacilitatebetterimplementationoftheABEF.Severalorganisationswerereferred

tointhesurvey,andsuggestionswereaimedateachofthese–thecouncilsthemselves,SAIGlobal,theLGBEN,andalsoACELG.

Commentsseekingadditionalsupportfromtheirowncouncilsfocusedontheneedforelectedmembers,executivesupportandstaffresourcesfortheimplementationoftheABEF:

ThefullsupportofCouncillors,managementandstaff,andanongoingcommitmenttocontinuousimprovement.

Afulltimepersondedicating100%oftheirtimetoBEF.TimespentatotherCouncilswhohaveitwellbedded.

OnecouncilwhowerequitesatisfiedwithservicesfromSAIGlobalwantedtocontinuethecurrentmethods:

ContinuewiththesameapproachofhavinganSAIGlobalmentorandoccasionaltrainingproviderandtoassistwiththeestablishmentoflongtermbenchmarkingpartnerships.

AnothercouncilwhowaslesssatisfiedwithSAIGlobalwantedmorecosteffectiveproducts:

SupportfromSAIGlobalinprovidingtrainingresourcesandmorecosteffectiveproducts.

SimilarlytherewasonecouncilquitesatisfiedwiththeservicesofLGBEN:

Supporthasbeenavailableforanyissuesthathavearisentodate.TheLGBENnetworkisparticularlyhelpfulinprovidingadviceonstrategiesfordealingwithroadblocksthatmayoccurfromtimetotime.

SomecouncilsexpressedthedesirethattheABEFwouldbeadoptedmorewidely:

IftheBEFbecameapreferredmodelforLocalGovernmentitwouldgoalongwaytoinfluencingstaffacrosstheorganisationthatitisnotjustsomethingafewCouncilsthinkisagoodidea.

GreaterfocusontheABEFthroughouttheindustry,educationprograms,benchmarkingopportunitiesandpartners.

Elevationoftheframeworkacrossbothpublicandprivatesectors,andreversethetrendofthedecliningprofileanduseoftheBEFintheprivatesector.(Wewould)liketoseeBEFhaveasimilarprofilethatBaldridgeandEQFM(have)overseas.

SeveralcouncilssawsomeopportunitiesflowingfromthenewlyformedACELG,requestingfederalgovernmentfundingforcontinuousimprovement,thedevelopmentofanewnationalframeworkandvariousformsofsupportandtraining:

SupportfromanotforprofitgovernmentagencywhoseroleistodisseminateinformationaboutwhatABEFis,andprovidecasestudiesofhoworganisationshaveimplementedit(andwhatadifferenceit’smade)wouldbefantastic.

Acentreofexcellenceasapointofreferenceforleadershipdevelopmentandmentoringprograms/networks;communitiesofpractice;fundingforstartups,developmentandenhancements;facilitatorstoassistwithimplementationandto

providecoaching/mentoring;andalibraryofstrategies,educationalinformation,examplestoolsandtemplates.

Federalgovernmentfundingforcontinuousimprovementprogramswouldbewonderful!Apropernationalframeworkwouldalsobeamajorimprovement,andwouldinjectmoreacademicrigourintocontinuousimprovementprograms.Theframeworkshouldbestandaloneand“opensource”,notrequiringthepurchaseofancillaryproprietaryproductsorservices.Thefocus,useoflanguage,andmaterialsprovidedshouldbebasedaroundthelocalgovernmentindustry.Thistiedwithcertificationprogramsforpractitionerswouldalsoweedoutsomeofthecowboysoftheindustry;

Finally,somecouncilsmaderequestsforsupportwhichwerenotclearlytargetinganyparticularorganisation:

WewouldreallybenefitfromfurthersupportinpromotingBEanddeveloping&presentingmaterialsthatwouldintegrateseamlesslyintotheorganisation;

FurthersupportforCEO’s/GM’s/CouncillorsontrulyunderstandingwhattheABEFissotheycaneffectivelyleaditandnotpushitintothestaffdomaintolead.TheyneedtoknowtherightquestionstoasktheirExecutivesotheyaretrulyleadingthechangeandthequestforexcellence.GM’sneedtoconcentrateontheimportantthings–buildingrelationshipswithstaffandthecommunityandfocuslessonnonimportantthings;and

AprogramformanagersandexecutivesthatgaveawarenessandinsightintotheBEFwithbenefitsofitsimplementationanduseinalocalgovernmentcontext.

SummaryofSurveyResponsesInrecognitionofamutualcommitmenttoexcellenceinlocalgovernment,thenewlyformedAustralianCentreofExcellenceforLocalGovernment(ACELG)hasrespondedtoarequesttoexplorefuturecollaborationopportunitieswiththeLocalGovernmentBusinessExcellenceNetwork(LGBEN).LGBENcouncilswereinvitedtoparticipateinsomepreliminaryexplorationofissuesandoptionsinimplementingtheABEFinlocalgovernmentinAustralia,andasurveywasemailedtoLGBENnetworkcouncilswitheighteenreturns.Oftheeighteensurveyedcouncils,halfofthesehadbeenusingtheABEFfortwoyearsorless,andeightcouncilshadbeenusingtheABEFforoverfiveyears.

ProfilingImplementation

MostofthesurveyedcouncilsusetheABEFprimarilyasastructuredmeansofinvolvingalloftheirorganisationinacontinuousimprovementprogram.Theyseektotransformtheirorganisation’scultureandprocessestodeliverprocessimprovements,teambuildingandefficiencies.ABEFisalsoseenasaframeworkwhichenablescouncilstocomparetheirperformanceagainsteachother,andalsoagainstotherindustries,sectorsandorganisations.

ImplementationoftheABEFhasrequiredsignificantresourceswithinthesurveyedcouncils,particularlyonconsultancyservices,appointmentofin‐housestaffandtimetakenforstaffandmanagerstoundertakeimprovementactivities.Othercostsincurredincluderesourcematerials,software,SAIpublications,venuehireandtraveltoLGBENmeetings.Thesecostsvarysignificantlybetweencouncils,withestimatesofcostsforconsultantsrangingfrom$10,000to$100,000inthefirstyear.

TheimplementationoftheABEFrequirestailoringthematerialstosuittheneedsofeachcouncillanguage,cultureandinternalprocesses.Therewasawiderangeoftailoringamongstsurveyedcouncils,withonlythreeoutofeighteennotsubstantiallytailoredmaterialsfortheirownpurposes.Someexampleswerethepreparationofin‐housetemplates;designofaCouncillor’sSystemsView;inductionworkshopsfornewemployees;anorganizationexcellencemanualcontainingphilosophy,processesandtemplates;trainingmodulesforstaff;anintranetsiteforaccesstoinformation;andateam‐basedappraisalprocess.

Implementationseemstoinvolvefirstlymanagersandselectedstaff,withprocessesinplaceovertimetoinvolveotherstaffincludingoutdoorstaff.Councillorswereadifficultgrouptoinvolve,withhalfofsurveyedcouncilsnothavinganycouncillorparticipationatall.

ABEF:BenefitsandDisadvantages

OnecouncildescribedthebenefitsthattheABEFcouldprovideas:

Asharedunderstandingoffuturedirection,understandingcommunityexpectations,employeeempowermentandunderstandingandimprovingprocessesgivesaconfidenceintheorganisation’sabilitytoadapttochangingcircumstances.

TheABEFwasdescribedasprovidingastructuredprocessforcontinuousimprovement,afacilitatorofbettercommunication,atoolforteambuildingandaligningtheorganizationtocorporatepriorities,acatalystforfindingfinancialsavings,andavehicleforprovidingaccesstobestpractice.Theactivitieswhichdeliveredthesebenefitswereundertakenbytheorganization,andincluded:

• Identificationofcouncilservicesandprocesses;• Businessexcellenceevaluations;• Recommendationsandactionplansforprocessimprovements;and• Processimprovementslinkedtopersonaldevelopmentplans.

WhenaskedaboutthegapsanddisadvantagesinimplementingtheABEF,halfofthesurveyedcouncilsmentionedtheeffortandleadershiprequiredacrosstheorganisation.OthercriticalcommentsabouttheABEFmentionedthelackofapplicabilityoftheframeworklanguagetothelocalgovernmentcontext,aninsufficientcoverageofcommunitygovernanceandpoliticalfactors,andcommercialcopyrightrestrictionspreventingbetterexchangeofinformation.

AvailableSupportandFutureNeeds

SAIGlobalprovideanumberofservices,andthecouncilsinthesurveymentionedusingthefollowing:

• Purchaseofdocumentation;• Mentoring,supportandadvice;• In‐housetrainingfromSAIconsultants;• PubliccoursesleadingtoqualificationsegGraduateCertificate;and• ExternalassessmentfortheExcellenceAwards.

TherewereseveralpositivecommentsaboutservicesfromSAIGlobal,inparticularabouttheirmentoringrole,networkcontactsandteachingmethods,howevertheyhavebeenproblematicforsomecouncils,inparticulartheirlackofavailability,lackoffocusonthelocalgovernmentsectorandcost.

SurveyswereoverwhelminglysupportiveoftheroleoftheLGBEN:

TheLGBENhavebeenawealthofinformationinestablishinganimplementationplan.Supportandadviceisalwaysavailablethroughphonecallsandemailstonetworkmembers.DocumentationontheLGBENwebsitehasbeenveryusefulandattendanceatmeetingsprovidevaluableinformation,ideasandencouragementtomoveforwardwithourimplementation.

Thefinalquestioninthesurveyaskedrespondentsabouttheiradditionalsupportneeds,andsuggestionswereaimedateachofthese–thecouncilsthemselves,SAIGlobal,theLGBEN,andalsoACELG.Someideasfromrespondentsincluded:

ThefullsupportofCouncillors,managementandstaff,andanongoingcommitmenttocontinuousimprovement;

SupportfromSAIGlobalinprovidingtrainingresourcesandmorecosteffectiveproducts;

GreaterfocusontheABEFthroughouttheindustry,educationprograms,benchmarkingopportunitiesandpartners;

SupportfromanotforprofitgovernmentagencywhoseroleistodisseminateinformationaboutwhatABEFis,andprovidecasestudiesofhoworganisationshaveimplementedit;

Apropernationalframeworkwouldalsobeamajorimprovement,andwouldinjectmoreacademicrigourintocontinuousimprovementprograms.Theframeworkshouldbestandaloneand“opensource”,notrequiringthepurchaseof

ancillaryproprietaryproductsorservices.Thefocus,useoflanguage,andmaterialsprovidedshouldbebasedaroundthelocalgovernmentindustry;and

AprogramformanagersandexecutivesthatgaveawarenessandinsightintotheBEFwithbenefitsofitsimplementationanduseinalocalgovernmentcontext.

FurtherACELGResearchAccordingtoSAIGlobaltherearearound70councilsinAustraliaarecurrentlyusingtheABEFframework,andACELGisinterestedinfindingoutwhethertheframeworkhaswiderpotential.ACELGhascommittedfundsthroughitsGovernanceandStrategicLeadershipProgramwhichhasasitsobjective:

Toincreaseunderstandingofeffectivestrategicleadership,andtobuildthecapacityoflocalgovernmenttoachieveconsistentlyhighstandardsinleadershipandgovernance.

Adoptedmilestoneswithinthisprograminclude:

2010‐Reviewexistingframeworksforbusinessexcellenceinlocalgovernmentanddeterminefutureneeds;and

2011‐Upgrade/promoteframeworksforlocalgovernmentexcellence

Othermodelsinuseelsewherewillalsobereviewedaspartofthisresearch,inordertoframeanycontentorprocessmodificationstotheABEFwhichmaybeconsidered.FutureoptionswillbeexploredcollaborativelyinrelationtopossiblealliancesorinitiativesbetweenACELG,theLGBENandSAIGlobal.

OutputsandoutcomesofthisprojectwillbeinaccordancewiththeACELGguidingprinciples,whichare:

• Tobeeffective,theCentremustbegroundedinandservethelocalgovernmentsystem:itmustnotbeseenasan‘outsider’organisationoronepursuingesotericacademicinterests

• TheCentreshouldbepractice‐oriented:whilstresearchisessentialtopromoteinnovationandinformpolicy,itshouldbedesignedtoleadtopracticaloutcomes

• TheCentreshouldfocusonaddingvalue,fillinggapsandseedingnewinitiatives:asageneralruleitshouldnotduplicateorcompetewithexistingprograms

• TheCentreshouldbeinclusive:itshouldseektheactiveinvolvementofallthosewithexpertiseandideastocontribute

• Givenlimitedresources,theCentremustfocusonalimitednumberofstrategicinterventions.

Appendix–SurveyQuestions

ProfilingABEFImplementationinyourCouncil

1. WhatwasyourCouncilseekingwhenitdecidedtoadopttheAustralianBusinessExcellenceFramework(ABEF)?

2. HowlonghasyourCouncilbeenworkingwiththeABEF?

3. WhatresourceshasittakentoimplementtheABEF?($,specialiststaff,consultingservicesetc)

4. HowmuchhaveyoutailoredtheABEFforimplementationinyourCouncil?Whatkindsofmaterialsandprocesseshaveyoudevelopedin‐house?

5. Doyouinvolve(andifsohow)yourCouncillors?youroutdoorstaff?yourprofessionalstaff?yourmanagers?

BenefitsandLimitationsofImplementingtheABEF

6. WhathavebeenthemainbenefitstoyourCouncilinadoptingtheABEF?

7. Haveyouidentifiedand/orquantifiedbusinessimprovementsandefficienciesresultingfromimplementingtheABEF?Ifso,whatarethey?

8. Haveyoubeenabletoidentifyand/orquantifyanycustomerbenefitorcommunityvaluefromimplementingtheABEF?Ifso,whatarethey?

9. HaveyouidentifiedanygapsordisadvantagestoimplementingtheABEF?Ifso,whatarethey?

Support–AvailableResourcesandFutureNeeds

10. WhatsupporthaveyoureceivedfromSAIGlobalinimplementingtheABEF?Anycomments?

11. WhatsupporthaveyoureceivedfromtheLocalGovernmentBusinessExcellenceNetwork(LGBEN)inimplementingtheABEF?Anycomments?

12. WhatfurthersupportwouldassistyouinimplementingtheABEFinyourCouncil?

Thankyouforcompletingthissurvey.YourconfidentialandanonymousresponseswillassistACELGinworkingwithLGBEN

forthepromotionofexcellenceinlocalgovernment.

implementing the australian business excellence framework ... · summary of survey responses from...

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