The Berri Barmera Council

APPROACHES TO STRATEGIC MANAGEMENT PLANNING IN LOCAL GOVERNMENT THE BERRI BARMERA COUNCIL CASE STUDY

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The Berri Barmera Council

This Case Study has been prepared by the Council in collaboration with the Consultant. Project Description: Development of a new Strategic Plan and a Framework for

Business and Operational Plans Aims for the Project: The Berri Barmera Council project aims to:

• Explore and discuss the environment in which the Council operates

• Ascertain Elected Member and senior officers' thoughts about

the critical issues that the Council needs to address, its vision, and potential strategies to achieve that vision.

• Survey the community to ensure the validity of assumptions that

Council has made about the above. This involved two processes.

• Integrate the above into an agreed Strategic Plan.

• Develop an approach to developing Business and Operational

Plans, for endorsement of Council, designed to achieve the above Strategic Plan.

• Developed the strategic management skills of senior officers.

Contact Person: Mike Hurley and David Fensom Phone 8582 1922 Email [email protected] Website: www.riverland.net.au/~bbc/

Consultant assisting: George Siokos and Peter Graves, Australian Business Enterprise Development


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Governance: 13 Elected Members

Background: The need to undertake a strategic planning process was recognised by Council following its amalgamation process. The Council was keen to consult with its “new” community to identify the priority issues for them and their expectations of Council in responding to these issues. The Council would then formulate its Strategic Plan in consultation with the community and put in place business and operational plans to implement the strategies identified. Council Profile: The Berri Barmera Council was formed following the merger of the District Council of Berri and the District Council of Barmera in October 1996. It was officially gazetted as “The Berri Barmera Council” a few months later. The Berri Barmera Council is approximately 220 km east of Adelaide, approximately 40 km from the Victorian border and is located in South Australia’s Riverland. It has a population of over 11,500 people, a total road length of 389 kms and is bordered by the District Council of Renmark Paringa to the east, the District Council of Loxton Waikerie to the south west, and unincorporated areas to the north. The Council is presently divided into five Wards and consists of twelve Elected Members and a Mayor. Total revenue is approximately $10 million with rates representing 34% of income. Council employs 64 staff which includes 37 outside employees. The principal office of the Council is located at Berri and a branch office is located at Barmera. Townships located within the district include Berri, Barmera, Cobdogla, Loveday, Monash, Glossop, Winkie and Overland Corner. The Berri Township is situated adjacent to the River Murray, whilst Barmera Township is nestled on the foreshore of Lake Bonney. When the area was first surveyed in the early 1900's all townships in the region were irrigation settlements, many blocks being allocated to soldier settlers. During the 1920's roads were constructed, the Townships grew and the area witnessed a rapid and vigorous growth which has steadily continued over the years to the extent that Berri is now recognised as the regional centre for the Riverland. With the current boom in wine sales, the entire district is experiencing a healthy growth in vineyard production, whilst also enjoying growth in tourism. The River Murray and its houseboat trade and tranquil beauty, Lake Bonney and its many and varied aquatic sports, together with local wineries, industries, caravan parks, National Parks and historical centres offer much to the visitor to the area. It is estimated that the Monash Adventure Park alone attracts in excess of 50,000 visitors to the area annually. The Berri Barmera area is serviced by a wide range of shopping, sporting, recreation, educational and medical facilities, Service Clubs, Choral Groups and even a Nudist Club at Lake Bonney!


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Berri Barmera Council

Strategic Planning Methodology

Phase 7

Finalise Strategic &

Business Plans**

Phase 8

Operational Plans**

Phase 9

Implementation**

Phase 6 Community Consultation

(Stage 2)

Phase 5

Business Plans

Phase 4

Review of Strategic Plan

Phase 3 Community Consultation

(Stage 1)

Phase 2

Strategic Plan

Phase 1

Program Launch

**Stages yet to be completed


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Strategic & Business Planning Methodology

Stage Description Method Who's Involved 1 Program

Launch Provision of an overview of the concepts and principles that underpin Strategic Planning and the links to business and operational planning to seek agreement on the process to be adopted.

Formal presentation, workshop and discussion by those present.

Elected Members, Senior Staff with facilitation by the Consultants.

2 Develop the Draft Strategic Plan

Council undertook an exercise to “scan” the environment in which the Council and its community is operating. The primary objective of the exercise was to identify what the Council ought to address in its Strategic Plan. As a result of the above Council developed a draft of its vision and mission, 7 major strategies and the values that it considered necessary for its success. The 7 major strategies included: • organisation development • infrastructure • health • environment • community participation • tourism • lifestyle • economic development For each strategy specific goals were determined, along with potential timeframes and resource requirements.

A two day workshop

Elected Members, Senior Staff with facilitation by the Consultants.


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Stage Description Method Who's Involved 3 & 6 Community

Consultation (Stages 1 and 2)

Council considered that an important element of the development of the strategic plan was community consultation. Stage 1: The first stage of the community consultation gathered quantitative data to assess: • The extent to which the

community was aware of the range of core services provided by Council, and

• The extent to which core services met community expectations.

In total, 440 responses were received from across the community. Respondents to the survey were also asked whether they would be interested in participating in interviews as the process developed. Approximately 80 persons indicated they were prepared to be interviewed. The major findings included: • High level of awareness across

the community of the services provided by council

• Greatest need for improvement was in the infrastructure area (streets, footpaths and associated infrastructure).

Stage 2: Interviews of approximately 120 households across the community. Households were randomly drawn from the assessment roll and reviewed to confirm that it was representative of key community demographics. Those persons indicating an interest in being surveyed (sought at stage 1) were also part of the random selection made.

Surveys were dispatched by post to all properties. The community consultation process was promoted in the local press. Random selection was made via voter’s role and amongst those offering to be part of an interview process (at stage 1)

Consultants Senior Staff Consultants assisted with the design of the methodology, but surveying is being undertaken by Elected Members. Staff assistance has been offered to Elected Members.


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Stage Description Method Who's Involved

4 Review of Draft Strategic Plan

In light of the data gathered above, Council was able to confirm community expectations and therefore what should be included in its strategic plan. Council also put in place a process that would enable each Elected Member to interview up to 12 persons selected at random from those indicating that they would be prepared to be interviewed and through a random selection taken from the voter’s role.

One-day workshop with subsequent presentation to Elected Members. In addition: Interview processes were established in addition to the above. (At the time of preparing this case study the interview processes were still being completed).

Senior Staff with facilitation by the Consultants.

5 Business Planning Framework

In preparation for implementation of the strategies outlined in the draft Strategic Plan Council staff commenced consideration of its Business Planning framework. For each draft strategy goal further detailed consideration was given to the extent to which resources, timeframes, staff responsibilities etc required allocation. This work has not yet been confirmed/completed as Council awaits the final outcomes of its consultation on the strategic plan. However, it is considered that this parallel activity will have it well placed to confirm its Business Plan/s when the Strategic Plan is formally endorsed.

Workshop and sessions with staff.

Senior Staff facilitated by the Consultants and work undertaken with staff in each departmental area.

7

Finalise Strategic & Business Plans

The draft Strategic and Business Plans will be reviewed in light of the outcomes of the Community Consultation process (stages 2&4). Should the survey process determine that there is a degree of alignment between the key strategies and what is of concern to the community, then Council can proceed to implement and achieve the strategies. Should the findings from the community survey process be inconsistent with the strategies, then Council may need to rethink specific strategies to ensure consistency.

It is proposed to conduct a workshop with senior staff. Presentation to Council for consideration.

Senior Staff facilitated by the Consultants.


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Stage Description Method Who's Involved

8 Development of Operational Plans

It is proposed that once the Strategic and Business Plans are signed off, operational plans will be developed for each of the Departments. This will provide the Council with the ability to guide the day to day operational activity in order to achieve the strategic goals and objectives.

Workshops Initial workshop facilitated by the consultants, involving senior staff. Subsequently workshops facilitated by managers with staff.

9 Implementation The issue of how to launch the Strategic Plan has not yet been determined. In addition the Business Plan will be a key management tool and it too will need to be formally launched to staff of Council to enshrine their commitment to the process. It is proposed that the operational plan be linked to the organisation’s performance management system. This would involve reporting mechanisms and review processes to assess organisational performance at strategic and operational levels.

Management to facilitate implementation of operational plan with employees in each department. Linked to reporting and performance measurement mechanisms.

Consultants assisted with the design of the methodology, but surveying was to be undertaken by Elected Members and staff.


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Conclusions/Hints

Consultation and Consideration of Regional, State and National Policy/Strategies The new Local Government Act 1999, will require Council to indicate the extent to which it has participated with and given consideration to regional, State and National objectives and strategies when developing strategic management plans. Whilst this is a new provision to be completed by 2002, the Berri Barmera District Council did give consideration to this issue. The Berri Barmera Council did consider regional, State and National policies and strategies, but only to the extent that they matched Council’s vision for the district. It was considered difficult to access policies and strategies of external agencies and governments. Council concluded that their objectives were generally similar to these external agencies and governments due to a common goal to see the development and diversification of the local horticultural industry. Community Consultation Council was very keen to have an active and participative consultation process with its community. The decision to take this path was largely due to the amalgamation process and the desire to project a “one Council” approach and to demonstrate the strength of the new Council. This approach has been time consuming but Council is of the view that the benefits to be derived outweigh the constraints of time. The decision to have Elected Members conduct interviews with community persons representative of the demographic profile of the Council area has been very well received by the community. The Council has certainly projected a strong image that it is keen to listen and respond to community issues. Undertaking the Strategic and Business Planning Process almost Concurrently This approach enabled the staff at all levels to critically review the impact of the strategic plan on their departments, jobs and operations. Whilst the framework and potential content will require confirmation once the Strategic Plan is finalised and endorsed by Council it was an excellent way to bring the Strategic Plan to “life” for the staff.

APPROACHES TO STRATEGIC MANAGEMENT PLANNING IN LOCAL GOVERNMENT THE DISTRICT COUNCIL OF CEDUNA CASE STUDY

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The District Council of Ceduna This Case Study has been prepared by the Council in collaboration with the Consultant. Project Description: Development of new Strategic Plan with Action Plans. Aims for the Project: To develop a best practice strategic plan with linkages

to financial and budget processes and with strong accountability for implementation.

Contact Person: Tony Irvine Phone 8625 3407 Email [email protected] Consultant assisting: Joe Collins Collins Anderson Management Governance: 8 Elected Members Council Profile: The District Council of Ceduna is the most western Local Government area of South Australia, being one of the most isolated and remote Councils of the State. The town of Ceduna is located on the Far West Coast of South Australia, on the scenic shores of Murat Bay on the Great Australian Bight, approximately 800kms from Adelaide and 1900 road kms to Perth. The word Ceduna is believed to have come from the Aboriginal word Cheedoona that is “a place to rest”. The District Council of Ceduna shares its boundaries with the District Council of Streaky Bay (to the south and east) and the Outback Areas Community Development trust area (Out of Districts) to the west and north. The District Council of Ceduna has a total revenue of approximately $6.7 million and employs 27 staff of which 15 are based at the depot.


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Ceduna is the major regional business centre of the Far West Coast of Eyre Peninsula. It is the established focal point of a wide range of services to a diverse regional economy. The Eyre Highway or National Highway Number One passes directly through Ceduna with approximately 400,000 tourists passing through the town annually (Nicholas Clarke & Associates, May 1996). Ceduna has a population of 3,559 people as at the 1996 Census. A high proportion of this number of people live in Ceduna/ Thevenard with the towns of Koonibba, Smoky Bay, Denial Bay and having smaller populations within the Council’s boundary. Ceduna has the highest percentage of Aboriginal people of all Local Government areas in South Australia with the population currently standing at 22.4% (799) of the population. In addition there are Aboriginal communities in adjacent unincorporated areas that should be considered a part of the Ceduna community. This is one of the highest percentages in Australia and perhaps for a locality that includes a medium sized town. Ceduna has been described as having one of the most complex multi-cultural communities in the country (Nicholas Clarke & Associates May 1996) with many other Nationalities also prominent in the population. Ceduna is the base for a large contingent of Government organisations, in particular Aboriginal organisations. The town is the headquarters for Wangka Wilurrara Regional Council and Maralinga Tjarutjta Inc. for example. Agriculture is one of the main economic drivers of the region with the main focus being sheep, high protein hard wheat, barley and other cereals. Production is carried out in arid and semi arid conditions with dry land farming techniques being successfully applied. The product output varies from year to year, as it is totally seasonally dependent. The aquaculture industry on Eyre Peninsula in recent years has grown dramatically in the farming of a range of species, Ceduna and region has been no exception. The oyster industry has been established for 10 years in Denial Bay and Smoky Bay with industry not being able to keep up with the domestic market demand. Ceduna is the second and Smoky Bay the third largest producing areas of oysters in the State. There is significant potential for further expansion of the aquaculture industry in the area. The two largest mining commodities being exported through the Port of Thevenard is salt and gypsum. The region has the largest deposit of gypsum in the Southern Hemisphere with 1.2 million tones being exported per annum. An average yield of 100,000 tones of salt per year is exported through the Port of Thevenard to the Eastern States of Australia and overseas. Over the past few years there has been increased interest in the nearby Gawler Craton for mining potential. An airborne geophysical survey discovered an extraordinary magnetic anomaly, which was found in the Yumbarra Conservation Park (approximately 30 kms to the north of Ceduna). This has been recognised generally as one of the most significant anomalies ever found in the State. Limited exploration in the area is currently being undertaken by companies to determine the mining potential of the region.


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As stated earlier approximately 400,000 tourists pass through the town each year. Most tourists only make a brief stop in Ceduna. There is significant potential to expand this industry through the increase in tourism ventures and attractions in the region. There are numerous attractions surrounding Ceduna: Davenport Creek, the offshore islands - St Peters Island, St Francis Island and the Nuyts Archipelago, Smoky Bay, Denial Bay - oyster farming and the rich fishing grounds. In recent years the development at the Head of the Bight by the Yalata community for whale watching (Southern Right Whales) provides one of the best viewing platforms in the world. Many tourists use Ceduna as the major base for visiting the whales and this is continuing to develop especially with bus tours and flights. The sealing of the runway 11-29 at the Ceduna Airport will allow for better access to the town by bigger planes. Ceduna is dependent on the sustainability, further diversification and growth of these existing industries. Encouraging the development and investment of new industries and business to the town and region will provide a range of opportunities for the community and this in turn can only assist in the prevention of the population drift away from the town and region. A brief demographic profile of the Council area is: - Population: 3559 Out Of Districts: 738 Under Age 15: 25.2% Out Of Districts: 23.6% Over Age 65: 9.3% Out Of Districts: 6.5% Aboriginal Descent: 22.4% Out Of Districts: 34.4% Size (Area): 5431sq Kms Roads: 1712kms


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Ceduna Strategic Planning Methodology

Stage Description Method Who’s Involved 1

Project Initiation

The Elected Members and staff were given a detailed presentation by the Consultant and afforded the opportunity to comment. The presentation included a description of the conceptual model that was utilised in the preparation of the plan and overviewed in detail the process that would be utilised to develop it. Roles, responsibilities of Elected Members, staff and the community were outlined in detail. The development of the plan was discussed in the light of the current Federal, State and Regional agendas affecting the rural sector. The presentation and discussion format enabled a clear picture to be presented to Councils and expectations arising from the strategic planning process to be clarified. The importance of community and other key stakeholders input was highlighted during this session.

• presentation to

Elected Members • information session

to senior staff • open letter to all

staff

• consultant • consultant • consultant/CEO

2

Initial Consultation

Ceduna decided not to undertake formal public meetings due to the large amount of consultation being undertaken on boundary and other issues. The response to a community questionnaire was significant and the quality of the information good. All data obtained through consultation was entered into a database and then summarised for input into the process.

• residents

questionnaires • letters and surveys

to key business and community groups

• staff workshop involving cross section of employees

• Corporate

Services Manager • CEO/Mayor • Consultant

3

Intensive Workshop

The Ceduna workshop held at Streaky Bay over two days was a very positive event and provided a good opportunity to talk through a diverse range of strategic and operational issues. The workshop Involved all Elected Members and senior staff and provided the framework for the development of the plan. Community consultation information was utilised during the workshop sessions. The utilisation of professional facilitation was a significant benefit during this process.

• Analysis of today’s

environment • Vision and Mission • Core Values • Analysis of the

internal and external environment

• Establishment of core objectives

• Formulation of strategies

• Plenary Session

• Elected Members

and staff (facilitated by consultant)


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4

Strategy and Action Plan Development

The development of strategies continued the process started in stage three. Sessions were held over a two-day period because of the distance involved in travelling by the Consultant. Individual managers were given responsibility for specific objectives and assisted in formulating draft actions. These draft action plans were discussed as a management team and alterations made. Allocation of resources, responsibilities, priorities and timeframes were then made to action plans.

• refine workshop

strategies • undertake research

as required • undertake strategy

development with consultant

• formulate action planning templates

• develop actions • allocate priorities • estimate costs • allocate

responsibility • allocate time frames

• Management

Team/consultant

5

Draft Plan Format

Extensive discussion on the presentation format of the plan was undertaken. The Council strongly believed that the strategic plan should be a professionally presented document and also facilitate easy updates as the strategic plan is implemented. The strategic plan enables regular updates to be inserted and easily adapted to the management process.

• discuss

presentation options • undertake costing • prepare final draft • distribute to key

stakeholders • make amendments

Management team/consultant

6

Final

Community

Consultation

The draft report was circulated to key stakeholders and agencies for comment. Public display of the plan was undertaken. Alterations to the plan occurred after assessing all comments received from the final consultation process.

• Prepare covering

letter • Distribute plan • Document

comments • Alter strategic plan

Management team

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Marketing

The Council strategically linked the plan to an integrated marketing plan for the area. The development of associated marketing material using internal resources included a video and area capability Statement linked to promote the council area. The graphic design and production of the strategic plan was of professional standard. The launch of the plan was comprehensively undertaken and well supported by local media. A specially designed “launch” flier was a major feature.

• Prepare marketing

plan • Develop marketing

tools • Coordinate launch

Management team


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Conclusions/Hints

Consultation and Consideration of Regional, State and National Policy/Strategies The new Local Government Act 1999, will require Council to indicate the extent to which it has participated with and given consideration to regional, State and National objectives and strategies when developing strategic management plans. Whilst this is a new provision to be completed by 2002, the District Council of Ceduna did give consideration to this issue. Marketing the plan to all key stakeholders is important if acceptance of the strategic plan is to be achieved. Effective marketing of Council’s plan achieved a number of positive outcomes:

• Increased profile of council to key stakeholders and decision makers • assisted in positioning council for increased grants • marketed the area for new and expanding business • increased pride and morale of staff • increased confidence of community in the council

Resources should be allocated to producing a professional document that can be marketed through a range of mechanisms including an official launch, media and local community groups. A well-marketed strategic plan is an effective management tool to influence key decision-makers.

The marketing of Ceduna’s strategic plan is a feature of this case study.

APPROACHES TO STRATEGIC MANAGEMENT PLANNING IN LOCAL GOVERNMENT THE DISTRICT COUNCIL OF KAPUNDA AND LIGHT CASE STUDY

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THE DISTRICT COUNCIL OF KAPUNDA AND LIGHT

The District Council of Kapunda and Light This Case Study has been prepared by the Council in collaboration with the Consultant. Project Description: Development of new Strategic Plan with Action Plans Aims for the Project: To develop a best practice strategic plan with linkages

to financial and budget processes and with strong accountability for implementation.

Contact Person: Geoff Sheridan Phone 8566 2101 Consultant assisting: Joe Collins Collins Anderson Management Governance: 11 Elected Members Council Profile: The District Council of Kapunda and Light was formed from the merger of the District Council of Kapunda and the District Council of Light in 1996. The Council’s southern boundary is 45 kilometres north of Adelaide with the district boundaries bordered by the Barossa, Mallala, Gawler, Mid Murray and Clare and Gilbert Valleys Councils. The total area is 1,274 square kilometres. The major townships located within the district are Kapunda, Freeling, Greenock, Roseworthy, Wasleys and Hewett. The Council is represented by a Mayor and ten Councillors and has a population of approximately 9,900. Annual revenue is approximately $7 million. The principal office of the Council is located in Kapunda with a branch office in Freeling. The Freeling office accommodates the Environmental Services and Works and Technical Services. The Council is faced with some enormous challenges due to booming economic growth, primarily in viticulture, along with significant growth in tourism, light industry and an expanding agricultural base.


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The developmental pressures include new winery applications, vegetable processing plants, an export abattoir, SACBH doubling the size of silos and Roseworthy, the new $28 million All Seasons Barossa Valley Resort and a significant increase in new dwelling applications. The accessibility to metropolitan Adelaide and relatively cheap residential land has resulted in the Council area having a growth in population. This new development is creating huge demands on an already poor physical infrastructure. The development of the Strategic Plan has provided an opportunity for Council to prioritise its actions to meet these demands, whilst maintaining the rural lifestyle and heritage of the area. Following amalgamation, the initial draft Strategic Plan provided the foundation for developing the Organisational Structure of Council. The senior management positions were called for and filled to meet the directions identified in the Strategic Plan. The draft plan has been reviewed and adopted and now provides for the enhanced provision of services by increasing human physical and financial resources and will provide an increased capacity and opportunity for the improvement of productivity and innovation. The District Council of Kapunda and Light is currently developing a more formal five year strategic financial plan that will comprehensively detail goals, strategies and actions which will be fully costed and included in Council’s Five Year Financial Plan.


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Kapunda and Light Strategic Planning Methodology


Project Initiation

An overview of the process was presented in written format to the Council and verbally to the CEO by the Consultant. The CEO briefed the full Council and Management team on the requirements of an effective strategic planing process. It was considered important to ensure that Elected Members and staff understood the theory behind strategic planning and how the Council was going to develop the plan.

• Written overview to

CEO • Executive briefing • agenda item to full

Council • information session to

staff

• Consultant • CEO

2


The DC of Kapunda & Light’s strategic planning process was commenced in November 1997. This followed extensive consultation arising from the amalgamation debate in the region. It was felt that information obtained through this consultation process would be suitable for use in the preparation of the strategic plan. As a result of the strategic plan development the Council has implemented a comprehensive policy re consultation on key community issues. Letters and surveys were sent to key business and community groups seeking additional comment.

• Analyse existing

community consultation information

• Send letters and surveys to key business and community groups

• Summarise community information from surveys and letters

• CEO

3

Intensive Workshop

A one-day workshop was undertaken. The workshop provided a valuable opportunity for the senior management team and Elected Members to work together on the plan. Whilst the workshop sessions were streamlined due to time constraints the benefits derived from the sessions were significant to the success of the plan.


environment • Vision and Mission • Core Values • Analysis of the internal

and external environment



• Plenary Session

• Elected Members

and staff (facilitated by consultant)

4

Strategy Development

The development of strategies continued the process started in stage 3. Research on key strategies was undertaken by the CEO and management team, these strategies were then integrated into the final draft of the strategic plan.

• refine workshop

strategies • undertake research as

required • undertake strategy


• Consultant • CEO/Management

Team • CEO/Consultant


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Action Planning

The CEO, Management Team and Consultant developed action plans. The action plans described how the strategic plan is to be implemented. Action plans included resources, responsibilities, priorities and timeframes.

• formulate action

planning templates • develop actions • allocate priorities • estimate costs • allocate responsibility • allocate time frames

• CEO/ Management team/ consultant

6

Staff Presentation

A presentation of the draft plan was made to all staff and comments received.

• present plan • gain input • make changes

• Consultant/CEO

7

Draft Plan Format

The format of the draft plan, whilst a superficial requirement was considered an important element because how people react to the plan will depend on the presentation and marketing of the document.

• discuss presentation

options • undertake costing • prepare final draft • distribute to key


• CEO/Consultant

8

Marketing

A newsletter was professionally produced for the community and key stakeholders.

• prepare articles • design newsletter • distribute newsletter

• Corporate Services

Manager & Librarian


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Conclusion/Hints

Consultation and Consideration of Regional, State and National Policy/ Strategies The new Local Government Act 1999, will require Council to indicate the extent to which it has participated with and given consideration to regional, State and National objectives and strategies when developing strategic management plans. Whilst this is a new provision to be completed by 2002, the District Council of Kapunda and Light did give consideration to this issue. The Strategic Plan must be part of an “holistic” planning process. Planning in its broadest context was considered a critical element for success. The Strategic Plan was considered to be the pivotal document from which business and operational planning falls out. A strategic planning process should not be commenced unless there is clear documentation of the total planning process and clarification of the linkages between all the elements. Unless it is clearly identified how outcomes from the Strategic Planning process can flow into the operation of the Council there will be little impact on the organisation. The strategic plan should link into the business and operational planning process. The Kapunda & Light Strategic Plan has been integrated into the financial management processes of Council. Monthly financial updates are being presented to Council and the outcomes of the plan are closely linked to the annual budget and 5 year financial planning process. Accountability for implementation and measuring of performance will ensure the maximum gain from the plan. Perhaps the most important element in the strategic planning process is the facilitation of its implementation. The allocation of responsibilities to key staff is essential. Implementation of the strategic plan should be linked directly to performance appraisal and management systems. Ongoing reviews and alteration of the plan is required to ensure its ongoing relevance. The update of the plan should be an integral component of the Council’s management process. Once produced and responsibilities assigned, key staff members should be required not only to implement but to continuously review and alter the plan. Elected Members input should occur at least every 6 months. Individual managers should be responsible for the coordination of specific goals across the organisation.


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District Council of Mount Remarkable This Case Study has been prepared by the Council in collaboration with the

Consultant

Project Description: Development of a new Strategic Plan with Action Plans Aims for the Project: To state the vision of Council, its community and its future

direction and the strategies to achieve this over the next 5 years.

Contact Person: Phyllis Robinson Phone 8666 2014 Email [email protected] Consultant assisting: Joe Collins Collins Anderson Management Governance: 9 Elected Members Council Profile: The area of the District Council of Mount Remarkable is located in the Southern Flinders Ranges of South Australia. Some of the most spectacular scenery, views, lookouts, gullies, gorges and sheer rockfaces within the Ranges are located in the Council area. Complimenting this locality, the Council borders the upper reaches of the Spencer Gulf and encompasses the broad Willochra plain with the Flinders Ranges as the natural backdrop/spine of the Council area. The large River Red Gums which line the many creeks and the vast array of other types of eucalypts and native vegetation are a feature of district. National Parks located in the area are principal tourist attractions. The Mount Remarkable National Park, which includes Alligator Gorge and Mambray Creek together with the Mount Brown National Park and the Telowie Gorge Conservation Park, are of particular interest. Both the Heysen and Mawson Trails pass through the area. The Main North Road and National Highway One traverse the Council area from


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North to South and the main traffic link between the Eastern States of Australia with the West linking Broken Hill/Perth also passes through the district. The scenic Horrocks Pass and Port Germein Gorge provide the principal traffic routes through the spine of the Ranges to Port Augusta and Port Pirie. The township of Melrose at the foot of Mount Remarkable is the oldest town in the Flinders Ranges and is the location of the Council Office. History abounds in this town wherever you turn and the local National Trust Museum, located in the former Police Station and Court House, helps the visitor understand the story of the development of the district. Other towns located within the Council area include:

• Wilmington - once called Beautiful Valley, is the home of the first Night Rodeo ever held in South Australia.

• Wirrabara - the picturesque area surrounding the town includes a pine forest and fruit orchards and abundant bird life.

• Booleroo Centre - is the hub of a rich agricultural area but by far the greatest attraction is the State’s largest display of Stationary Engines. 150 perfectly preserved machines can be seen at the Booleroo Steam and Traction Preservation Society Museum.

• Port Germein - located on Spencer Gulf, features the longest wooden jetty in the southern hemisphere and was once 1.7 kilometres in length. The jetty has recently been repaired but not to its entire original length.

Additional smaller towns and settlements throughout the area include Appila, Mambray Creek, Murray Town, Willowie, Hammond and Bruce. With a Mediterranean climate and a large variance in rainfall - 650mm within the Wirrabara forest to 320mm in the north - the agricultural enterprises are diverse. Cereal crops of wheat, barley, oats, peas, beans, lupins and canola are grown along with sheep for meat and wool and cattle grazing. Small pockets of apiarists, fruit orchards and intensive forestry are located in the southern portion of the Council area. Intensive animal keeping in the form of piggeries and poultry batteries together with sheep and cattle feedlots are located throughout the area. New horticultural industries including vineyards and olive orchards are developing. There is significant potential to expand the tourism industry and the enhancement of visitor attractions is one of the districts principal challenges for the future. The district is uniquely placed in that it offers peace, tranquillity and scenic beauty and is in close proximity to the provincial cities of Port Augusta and Port Pirie. These centres provide employment, shopping and entertainment creating a ‘best of both worlds’ lifestyle for our residents. The Council covers an extensive area of 3,422 sq kilometres, has a population of over 3,000 people and maintains over 2,000 kilometres of unsealed roads. Total revenue is approximately $2,000,000 with rates representing 40% of the income. Council employs a total of 17 staff which includes 11 outside workers. The District Council of Mount Remarkable was formed in July 1980 with the amalgamation of the District Councils of Wilmington and Port Germein. The Council area is divided into four wards that represent communities of interest formed because of topographical features and road networks. It has taken many years to develop a cohesive and united community that has a sense of ownership of the Council district.


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However, through the consultative processes that have been developed by the Council, the community now has a strong commitment to ensuring the continuation of the Council as it stands today.


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Mount Remarkable Strategic Planning Methodology

Stage Description Method Who’s Involved

1

Project Initiation

The Elected Members and staff were given a detailed presentation by the Consultant and afforded the opportunity to comment. The presentation included a description of the conceptual model that was utilised in the preparation of the plan and overviewed in detail the process that would be utilised to develop it. Roles, responsibilities of Elected Members, staff and the community were outlined in detail. The development of the plan was discussed in the light of the current Federal, State and Regional agendas affecting the rural sector. The presentation and discussion format enabled a clear picture to be presented to Council and expectations arising from the strategic planning process to be clarified. The importance of community and other key stakeholder input was highlighted during this session. It was considered important to the process for Elected Members and staff to be aware of their roles in the development of the strategic plan.

• presentation to

Elected Members • information session to

senior staff • open letter to all staff

• Consultant • Consultant • CEO

2


Mount Remarkable undertook a comprehensive process that not only obtained important data for the planning process but achieved considerable goodwill through the small community. Public meetings were of a workshop nature designed to integrate into the planning process. The public “workshops” were also integrated into the review of the development plan (PAR) and reduced considerable duplication. All data obtained through consultation was entered into a database and then summarised for utilisation in developing the plan and distributed to Elected Members.

• Public

meetings/workshops • Resident/Ratepayer

questionnaires • Letters and surveys

to key business and community groups

• staff workshop involving cross section of employees

• Chairman,

CEO, and Consultant

• CEO and Admin Officer

• Consultant

3

Intensive Workshop

The two-day workshop involved all Elected Members and senior staff. Held off site on a Saturday and Sunday it provided the framework for the development of the plan. Consideration was given to regional, state and national objectives and strategies, where relevant to Council’s strategic plan. Data received through the community consultation was fed into various sessions over the two days. The workshop was specifically designed to develop teamwork, leadership and ownership of the plan.


environment • Vision and Mission • Core Values • Analysis of the

internal and external environment



• Plenary Session

• Elected

Members and staff (facilitated by consultant)


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Stage Description Method Who’s

Involved 4

Strategy Development

The development of strategies continued the process started in stage three. Further research on key strategies was undertaken by the CEO and Admin Officer and new strategies identified. The consultant and CEO worked together to finalise the strategies.

• refine workshop

strategies • undertake research

as required • undertake strategy


• Consultant • CEO and

Admin Officer

• CEO and

Consultant

5

Performance Indicators

Performance indicators were developed linked to key outcomes of the plan. Approximately 40 quantitative and qualitative indicators were identified by the CEO and consultant.

• Highlight high priority

outcomes • develop indicators

that if achieved will result in successful implementation of the plan

• CEO and Consultant • CEO and Consultant

6

Action Planning

Action plans were developed incorporating timeframes, responsibilities and resources which clearly identified an implementation process involving all levels of staff.

• Formulate action

planning templates • develop actions • allocate priorities • estimate costs • allocate responsibility • allocate time frames

• CEO,

Admin Officer and Consultant

7

Draft Plan Format

The consultant prepared a draft format for consideration by senior management. The format of the draft plan, whilst a superficial requirement was seen as an important element. Council considered it was important to see how people would react to the plan as this would influence how it was presented and marketed .

• discuss presentation

options • undertake costing • prepare final draft • distribute to key


• CEO,


8

Final Community Consultation

An extensive final community consultation stage was undertaken. There was however, little request for alteration to the plan.

• direct mail to

community • media release to

local press • display at Council

office and library • agenda item to

Council

• CEO,


9

Marketing

The resources available influenced the extent of marketing undertaken, however, the Council utilised a number of mechanisms to market their achievement including local press and radio, community groups and Council’s community newsletter. A launch involving all Council staff, Elected Members and key stakeholders was undertaken and associated with a social activity.

• designed marketing

plan • develop timetable • implement marketing

plan

• CEO and

Admin Officer


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Conclusions/ Hints Consultation and Consideration of Regional, State and National Policy/Strategies The new Local Government Act 1999, will require Council to indicate the extent to which it has participated with and given consideration to regional, State and National objectives and strategies when developing strategic management plans. Whilst this is a new provision to be completed by 2002, the District Council of Mount Remarkable did give consideration to this issue. During the preparation of the strategic plan the District Council of Mt Remarkable consulted in writing with PIRSA, PIRSA Forestry, National Parks, Port Pirie Regional Economic Development Board and the Coast Protection Board. Discussions were also held with adjoining Councils on the planning process. Generally these external parties provided an issues based response when sought, but there was no obvious coherent set of policies and strategies. Council ensured they did not conflict with the State Development Plan and Mount Remarkable National Park Management Plan and researched federal grant programs and policies prior to determining their strategic plan. The Council intends to coordinate service delivery with external agencies in so far as their objectives agree. The consultation process did unearth some issues where Councils preferred method of service delivery will conflict with state agencies (ie burning rubbish dumps). You can never “over” consult the community Not only is the consultation process an excellent opportunity to interface with the community it results in reinforcing the important elements of the plan. It is unwise to presume that “we know what the community wants”. Council felt it should not just rely on one or two communication mechanisms to achieve community input. Consideration of at least three of the following provided a much broader base for consultation:

• market research eg. telephone surveys • informal focus groups (having a good cross section of the community is

important) • individual meetings with a range of key stakeholders eg. MPs, private industry,

business groups, government agencies, service providers • written letter to key stakeholders • public meetings across the Council area • community newsletter • local paper, radio and television • personalised letter to residents • questionnaires widely distributed - ratepayers/electors/residents


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Naturally the more extensive the consultation the more time and resources are to be committed by Council to the preparation of the strategic plan, nevertheless if the process is done correctly it can achieve a number of positive outcomes:

• reinforce and shape the vision of Council • clearly support high level goals and objectives • highlight lower level outcomes to be incorporated into the planning process • market the Council as progressive and forward looking

A team approach to development involving Elected Members and management will result in the best product Elected Members play an important role not only for the formation of policy but for establishing the strategic framework from which policy is based. The Strategic Plan must have initial and ongoing input. It should not be seen as another management document. Political ownership is essential. The Mount Remarkable case study clearly showed that even those Elected Members sceptical of strategic planning appreciated the chance to participate and give input. It is important to clearly plan for Elected Members’ input at various stages of the planning process. In particular involvement in workshops, public meetings and focus groups. The establishment of a strategic planning steering committee including Elected Member representation ensured ongoing political ownership. A well planned weekend workshop was held off site at Port Augusta which was very successful in achieving teamwork between management and Elected Members and ensured ownership and commitment to the outcomes. They jointly developed the vision, mission, core values, major objectives and key strategies. A successful strategic planning process should incorporate quality time for Elected Members and management to have open and frank discussion concerning the future of their community. It won’t work without the Council leaders driving the process The Chairman, CEO and the Administration Officer were key drivers of the process and, whilst taking advice and guidance from the consultant, owned the process. Their strong involvement ensured a successful outcome. Strategic Planning is a good instrument to initiate change directly or indirectly. Elected Members and senior staff looked to the Chairman and CEO for leadership and corporate direction. If the CEO is not inspired to drive and have input the strategic planning process quickly looses its effectiveness through the organisational structure, then middle management might see it as another task they have to do rather than the blue print for change.


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Mount Remarkable’s committed approach highlighted the importance of strong leadership in the process. Allocate time and resources in achieving the high priority strategies A common concern in the strategic planning process was the time and resources required for implementation. The prioritising of strategies and actions was important in ensuring the “big ticket “ items were achieved. Implementation and Linkages Regular updates on the Strategic Plan are being presented to Council and the meeting agendas and minute books now refer to the appropriate strategy and action plan numbers. Council’s budget has also been linked and cross-referenced to the Strategic Plan ensuring integration in the day to day management of Council.

APPROACHES TO STRATEGIC MANAGEMENT PLANNING IN LOCAL GOVERNMENT CITY OF ONKAPARINGA CASE STUDY

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City of Onkaparinga This Case Study has been prepared by the City of Onkaparinga. Project Description: Framework to Link Service Delivery to Business and Strategic

Planning.

Aims for the Project: The City of Onkaparinga sought to identify and/or create a strategic framework that would link service delivery to business and strategic planning. A conceptual framework was developed and revised in-house. It identified and addressed the relevant components and their linkages.

The linkages between the component parts, as envisaged by the strategic framework, needed to be created. To this end, the funds from the LGA Strategic Planning Project examined the application of the Outcome-Output model widely utilised in New Zealand and State and Federal Government agencies. This model purported to link policy or strategic outcomes to business planning outputs.

Development of the City of Onkaparinga’s first strategic directions and the evolution of its business planning processes (namely business plans, the budget process, long term financial directions and a corporate directions document) were follow-on initiatives. As all these matters are heavily interrelated, the bounds of the LGA Strategic Planning Project quickly fused with the other strategic initiatives occurring within the organisation.

Contact Person: Debra Just

Phone 8384 0666 Email [email protected]

Consultant assisting This project was managed and undertaken in-house

Governance: 20 Councillors plus Mayor


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Council Profile

The City of Onkaparinga was incorporated on 1 July 1997 following the amalgamation of the whole of the former Cities of Happy Valley and Noarlunga and part of the District Council of Willunga. It is South Australia’s largest Local Government entity with a population of approximately 147,000 persons and also encompassing an area of 518 square kilometres. The City of Onkaparinga straddles the rural/urban fringe located to the south of Adelaide CBD. (Figure 1). Its terrain, land uses and socio-demographic profile are very diverse. The amalgamation of the three Councils brought together, for example, areas that had consistently recorded the lowest level of unemployment with those which recorded high levels. It blended rural, industrial and residential land uses, a large regional centre and a number of rural townships. It encompassed the young family profile of new and developing suburbs, older families and couples from mature suburbs and aged persons clustered in some long-established suburbs, rural and coastal settlements. The western boundary of the City of Onkaparinga is marked by 35 kilometres of unique and varied coastline with open beaches, reefs, dunes and cliff formations. The coastline stretches from O’Sullivan Beach in the north to Sellicks in the south. Extending inland from the coast are undulating plains which rise up to the foothills of the southern Mount Lofty Ranges, the latter forming the Council’s eastern boundary. The Onkaparinga River bisects the area as it meanders through the central plains to meet the coast at Port Noarlunga. Other rivers, namely the Sturt and Field Rivers, define the northern extent of the City. (Figure 1). Council and Administration Profile: The Council has an annual budget of around $70M with 59% derived from rate revenue. Significant expenditure occurs in the areas of economic development, job creation and tourism; environmental projects (recycling, wetlands, effluent disposal); area beautification (main streets, townships, industrial precincts); heritage conservation (an incentive scheme, advisory service, aboriginal cultural heritage survey); road works; technological upgrades and service delivery. The Elected Council consists of a Mayor and 20 Councillors. The Mayor is elected at large and the Councillors are elected from nine wards. In May 2000, following the second Council election to be held for the City of Onkaparinga, an electoral review will be conducted. As part of the efficiencies proposed in the amalgamation plan, it was envisaged that staff numbers would be reduced from approximately 550 to 500 FTE’s within a period of three years. That process is on track. The initial structure for the organisation was revisited within two years of the amalgamation and resulted in a “flatter” structure. In essence, the structure reflects a grouping of like functions without utilising a hard purchaser provider model. The three functional groupings (of the six departments) are: • Corporate Support, including human resource management, contracts and

specifications, organisational development (including business planning and continuous improvement), media relations and publications, governance, information technology, records and finance.


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• Strategy and Development, incorporating areas such as strategic planning, policy formulation, area planning, economic development, infrastructure design, asset and major project management.

• Service Delivery, encompassing the functions of customer and community services, libraries, development services, health and regulatory services, environmental projects, waste and recycling, infrastructure construction and maintenance.

An important feature of the restructure is the creation of cross functional groups with a strategic (rather than project) role. The Chairs of these groups will combine with the Senior Management Team to form the Strategic Advisory Group. Because of the sizeable emphasis that existed within the structure, and consequently the associated in-house skills, the City of Onkaparinga has developed much of its strategic planning processes internally. It continued to do so in relation to the LGA Strategic Planning Project, rather than to take up the option of utilising the resources of external consultants. Forces for Change As a newly amalgamated entity, with increased geographic area and the accompanying diversity of issues and aspirations, the task for the Council was to create strategic directions for the region’s future that could be shared by the newly combined communities. There was a sense of urgency that this should be done as soon as possible following amalgamation. In addition, the business planning processes of the administration needed to respond to these new strategic priorities and to reflect this in resource allocations and business plans. The challenge was to tie the day-to-day business to a desired future. The approach has been one of “learning by doing”; exploring existing models and formats but eventually resulted in the development of a “home-grown” product tailored to the City’s needs rather than using an “off the shelf” solution. Knowledge has grown in an incremental fashion and the process has been iterative. Project Methodology Strategic Framework The Strategic Framework indicates that the strategic processes are the starting point in the chain which flows through to business planning and service delivery (Figure 2). To make the Framework more legible, simple headings were used to group components with similar functional outcomes; namely: The component groupings articulated the role each element played as well as the desired sequence. For example, business plans should translate the strategic directions into actions through projects and programs and be prepared in advance of the budget process. In this way, the budget begins to reflect the strategic directions. The sequencing of the relevant components can also then be presented as a Gantt Chart. (Figure 6).

Do it Set the direction Decide what to do Plan how to do it


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By way of an example, the service of road maintenance within the City of Onkaparinga, can respond to the strategic direction of “enhancing economic development” by redirecting resources within the relevant budget line to the wine districts and the other prime tourist destinations such as the coast. The long-term financial directions provide a tool for ensuring not just the long term viability of the Council, but also the increasing re-direction of resources to achieve longer term strategic objectives and directions. Strategic Directions The City’s first strategic directions document was launched in October 1998, some 15 months after the amalgamation and less than one year after the appointment of the relevant staff. The parameters for developing the City’s strategic directions included:

• the desire to actively create a more desirable future

• recognition of the context within which Local Government was operating while not being constrained by it

• knowledge of existing circumstances and future trends

• the premise that the plan would set broad directions for a preferred future with some example strategies, but that the strategies would be more fully articulated in the annual business plans

• a consultation mechanism which recognised the extensive level of consultation previously undertaken within the existing communities; and

• a format that engaged public interest and was widely distributed.

The steps in the preparation of the Strategic Directions document are outlined in Figure 3 and were:

• establishing the context through a trend and SWOT analysis. It identified influences upon Council and the community at global, national, state and local levels together with emerging trends and paradigms shifts in the way Councils operated. This was a critical process to undertake as such information may not emerge from dialogue with the community. It is the element that specialists are required to develop to blend with broader community input.

• utilising existing knowledge through the review of former Councils’ studies which had been subjected to consultation (some 50 in number); statistics regarding the area and contained within the City’s Statistical Bulletin and Social Atlas; community views expressed at Forums, in requests and complaints and from Elected Members’ local knowledge. Local Members of Parliament also contributed their knowledge through the Southern Partnership forum. The Southern Partnership is a bipartisan action group of state and federal Members of Parliament and highly regarded members of the community committed to progressing the south.


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• workshops for Elected Members. The use of Special Meetings of Council, during which

the standing orders were suspended to facilitate workshops on specific issues, was a process adopted early in the life of the City of Onkaparinga and has continued throughout its short history with between one and three such workshops being held most months. The workshops have proved to be immensely valuable for developing a sound understanding of complex matters and for articulating the views of all Elected Members. They promote a cooperative, rather than adversarial, style of decision making.

At one workshop, the Elected Members utilised a visioning exercise to assist them to articulate a preferred future for the City. As it is impossible to know what events, technologies and values will influence successive generations, it is extremely difficult to articulate a single preferred future or vision. Instead, the workshop established commonly desired characteristics, namely prosperity, vitality and pride; especially pride in the area’s diversity. These characteristics, while broad, were able to be translated into actioning strategies such as those outlined in Creating our Future. The visioning exercise also provided insight into undesirable legacies for future generations that the subsequent strategies sought to eliminate or redress. Recurrent themes included avoidance of economic depression, environmental degradation and social inequities. The process utilised avoided the production of a slogan that would be difficult to act upon.

• consultation, including pre-publication consultation on the content and format with staff and Elected Members and post-publication community consultation, primarily through the questionnaire.

This approach of seeking consultation on a draft document contrasted with the approach taken to many other planning initiatives in the City where community consultation forms a basis of the information gathering phase prior to the preparation of a plan. The latter approach works well in area planning, theme or issue based situations.

The reasons for the post-publication public consultation process related to the extensive nature of prior community consultation and the need to prepare a plan as a matter of priority to guide the new Council and the City of Onkaparinga.

• preparation of the strategic directions document, Creating our Future in a format that engaged public interest and was widely distributed. This led to a brief, four-page broadsheet format which utilised full colour, photographs and an annotated map. The broadsheet formed the centrespread of Council’s community newspaper that is distributed to every household. Additional copies were delivered to businesses and placed in Council offices and other community facilities. A questionnaire was enclosed for responses and resulted in an unusually high rate of return for a strategic document and overwhelmingly positive responses for the strategic directions articulated. This format has subsequently been replicated by at least one other Council.

Business and Annual Budget Planning The City of Onkaparinga has produced three business plans and annual budgets since amalgamation (Figure 4). The first business plan was prepared for the 6 month period immediately post staff placements in December 1997 to cover the remainder of that financial year. It was necessary to ensure that services continued to flow while the organisation grappled with the immediate post-amalgamation combinations of different systems, policies, procedures and organisational cultures. Two business planning processes have occurred since with the formats of the associated templates and guidelines documents changing in response to the organisation’s increasing knowledge of the relationships between strategic


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and budgetary processes. The plans have been developed at the service unit level and have become simpler and less expansive through the revision process. The 1997 decision to utilise a system of templates and instructional guidelines reflected a desire to devolve the responsibility for compiling business plans to the appropriate service area while retaining a uniform format which aligned strategic, budgetary and business goals.

The first budget (1997/1998) was produced as an amalgam of individual budgets set for each of the three former Councils. As such, the 1998/1999 budget was the first produced for the City of Onkaparinga as a new entity per se.

In the absence of a strategic plan, the 1998/1999 budget was guided by a Major Trend and Influences analysis which concluded with a translation of those factors into budget priorities (Figure 7). For the 1999/2000 budget, the strategic directions were encapsulated in Creating our Future and budget bids were assessed for compliance with those directions through a criteria checklist and budget commentaries .

Workshops were used to align the annual budget and long term financial plan to the strategic directions. The programs, projects and services that related to each of the strategic directions were grouped together under broad headings. (Refer to example of working tear sheet hereafter). Working in small groups, Elected Members identified what they believed should happen to the funding levels over the next three years for each of these strategic groups. This was done in a simple qualitative manner through the use of arrows indicating an increase in resources, a decrease or a static situation. In addition, those programs that should be reviewed for funding in a manner other than Council rates eg co-funding, grants, private investment etc, were identified.

In the process of developing the draft 1999/2000 budget and attaching figures to the programs, a comparison of the dollars value of those proposals was made with the previous budget (1998/99) and checked against the direction arrows from the aforementioned exercise. The time horizon was subsequently extended to 5 years.

Strategic Directions Groupings Direction Dollars Potential Budget Priorities 1999/00 2000/01 2001/02 1989/99 1999/00 Funding 1 Local employment opportunities

(eg employment programs, traineeships, apprenticeships etc)

$901,296 $720,600

2 Local business support (eg BEC, Exporters Club, Business Association Support

$328,500 $330,500

4 Tourism/events/festivals (eg Visitors Centre, Fleurieu Marketing Board, tourism promotion, special events, Year 2000, caravan parks, car parks, public toilets etc)

$432,000 $815,200

5 Main Street Programs (eg Beach Road, McLaren Vale)

$683,937 $975,500

6 Road construction – wine areas (recommendation from wine industry needs audit)

$0 $300,000

7 Road construction – general

Road construction - coastal $3,739,448

$0 $1,766,500

$956,000

etc

= external funding


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A separate exercise was also conducted employing different coloured dots to hone in on the top 5 groupings which Elected Members believed should be funded as a matter of priority together with the lowest five. This exercise sought to establish where funding could be redirected from in order to resource the top priorities. In preparation at present are Corporate Directions, and 5-year Financial Directions. The former will identify the major corporate (administrative) challenges, the desired future directions and strategies to achieve them. These initiatives will place annual business and budget planning processes within a longer-term context.

Creating the Linkages between Strategic and Business Planning

To create the linkages between strategic directions and the business plans, the Outcome-Output model was reviewed. The process involved research by Strategy and Policy staff, including interviews with practitioners, with the findings being the subject of Senior Management Team briefings and workshops. In summary, the model links the desired results (outcomes) articulated by those with responsibility for policy setting (Council, cabinet) with the goods and services (outputs) purchased to meet the desired outcomes. The key terms are defined in a public sector setting as follows: • Outcomes – the results government seeks to achieve in order to meet community needs

and government priorities. These desired community impacts are articulated by those with responsibility for setting policy directions (eg Council, cabinet, etc). An example of an outcome might be a lowered rate of vandalism.

• Outputs – Goods or services which are “purchased” by government in order to help achieve the desired outcome. These are defined by the corporation/administration and usually have the performance dimensions of quantity, quality, time and cost. For example, services utilised to contribute to a lowered rate of vandalism might include policy advice, enforcement of regulations and surveillance services.

• Inputs – the resources used to produce goods and services. These can be measured in terms of capital, human resources, equipment, information and time.

Investigations into how the outcome-output model had been applied revealed that is was rarely utilised to define strategic or policy outcomes with the same rigour applied to defining corporate outputs. The desired outcomes for the community tended to be narrowly expressed in terms of the corporation’s area of responsibility rather than a broader measure of impact on the community.

Inputs Outputs Outcomes resources used to produce outputs

goods or services purchased to meet outcomes

desired community impacts and govt. priorities


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The full potential of the model was largely unrealised and had been narrowly focussed on the organisation’s business planning process, with emphasis upon the outputs and inputs. This usually occurred in a corporate environment of a purchaser provider split, where service level agreements, specifications and contracts defined goods and services together with accurate service costing and accrual accounting. The organisational climate described above, does not match that of the City of Onkaparinga. It does not have a hard purchaser provider split but is moving to strengthen its costing processes and to enter into service level agreements which more rigorously define the goods and service transaction. The Outcome-Output model, as currently applied, did not meet the desire to link strategic (outcome) and business planning (output, input) processes within the City of Onkaparinga. However, the model will continue to be scrutinised in terms of its full potential as the business planning processes of the City further mature and understanding of how to measure strategic directions (outcomes) develops. In terms of the latter, the Sustainability Indicators project, funded by the Local Government Research and Development Scheme, seeks to establish a range of indicators that are suited to measuring strategic directions (or outcomes) and which are applicable to Local Government. The project will be managed by the City of Onkaparinga.

Management by Objectives An alternative to the Outcome-Output model was identified in the form of an “objective tree” and was developed and adapted for the City of Onkaparinga’s needs. Using a hierarchical format, the “objective tree” allows the development of a visual cascade. Starting from the desired outcomes (strategic directions), further refined at the next level by objectives which define how Council will respond to achieve the outcomes, then filtering to the relevant programs, projects and services down to a level of individual activities (Figure 5). To add additional value to the objective tree, or a “managing by objectives” approach, the format was altered to begin alignment with the long-term financial planning process and coded to enable cross-correlation with service area business plans (Figure 7). Performance measures for each of the levels are required. These most commonly involve: Activities, programs, projects and services:

: measured by quantity, quality, timelines, cost; projects assessed against objectives and effectiveness against targets or standards, including those established by customer and community surveys.

Objectives : measured as above but may be composite or higher level indicators.

Desired outcome : Measurement at the level of sustainability or quality of life or strategic indicators. (Sustainability Indicators project.)

Next steps

Having focussed upon the strategic planning processes in the early stages of the Council’s life, it is now timely to further focus upon business planning processes, secure in the knowledge of Council’s external context. This approach could be described as “outside in”.


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The City’s Corporate Directions and five-year financial plan will be completed in the near future.

Within the City of Onkaparinga, integration of performance measurement and customer/community surveys is being pursued. Systems relating to financial information and service specification are being further developed. Work has also commenced on the Sustainability Indicators project. Conclusions/Hints Consultation and Consideration of Regional, State and National Policy/Strategies The new Local Government Act 1999 will require Council to indicate the extent to which it has participated with and given consideration to regional, state and national objectives and strategies when developing strategic management plans. Whilst this is a new provision to be completed by 2002, the City of Onkaparinga did give consideration to this issue. The LGA funded component of the project related to exploring the outcome-output model for its value in linking strategic and business planning. In that context, consultation and consideration of policies developed by others was largely under taken during the preparation of the strategic, business and financial plans. However, users of the model were consulted, including a number of State Government agencies. The development of three key documents, namely Strategic Directions (Creating Our Future, Corporate Directions and Financial Directions) involved consultation processes that have been identified in the case study. The analysis of trends and influences undertaken as a prelude to the preparation of Creating our Future included a review of relevant policies or strategies operating at the global, national, state and local levels. This analysis was then presented to state and federal members of parliament, with an interest in progressing the south, to review and expand. The group is titled the Southern Partnership. In addition to the Southern Partnership, a number of other consultation and partnership arrangements exist. These include community forums, local area planning consultation and communication strategies etc. There are also strong alliances with social planning and service delivery (Southern Social Planning Alliance- DHS, DETE and Council; Home and Community Care collaboration project), with business (Business Enterprise Centre, Economic Development Forum, Exporters Club, McLaren Vale Visitors Centre) and with environmental representatives through the Environmental Advisory Committee. It became apparent early in the process that the strong linkages between the component elements would result in an iterative approach in order to ensure tighter alignment with each successive annual planning cycle. Feedback processes were also important. Clearly, business plans prepared in advance of the budget would need to be revised in light of the final budget outcomes then translated into team or individuals’ work programs.


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Lessons Learnt The lessons learnt to date in the first two years of the formation of the City of Onkaparinga in pursuit of integrated strategic planning, could be articulated as: 1. The creation within the organisational structure of a specific department with the carriage

of strategy and policy has ensured the in-house skills to undertake the analysis and developmental work. These efforts have supported the City Managers and Council’s express wish to integrate strategic or desired future directions, into day to day activities.

2. Good planning occurs within a context that attempts to identify future impacts and is part of the leadership Council plays on behalf of its community (ie focuses from the outside in). Trends, influences (including those operating beyond the bounds of the local area) and changing paradigms form part of the analysis that needs to be blended with the community’s needs and wants.

3. Developing a strategic framework that identifies planning components and their linkages is the first step to integrating strategic and business planning processes.

4. Vision exercises are as equally instructive about the desired characteristics of the area’s future as they are about undesirable legacies for future generations. The latter can be readily addressed by strategies that also seek to preserve a range of desirable future options. As it is impossible to know what events, technologies and values will influence successive generations, it is extremely difficult to articulate a single preferred future or “vision”.

5. The Strategic Directions document Creating our Future, provided the essential starting point from which all business and financial planning processes are sourced.

6. The process was iterative with formats and processes changing and developing as the Council and administrations’ knowledge and understanding grew. Some false starts and rework can be expected as part of the learning process. The end product was “home-grown” and tailored to the City’s needs.

7. The end goals of simplicity, a lack of duplication and firm linkage are worthy of pursuit. The initial approach might begin as one that is comprehensive but pragmatism requires efficient and simple processes.

8. To be strategic, that is to chart a course for a desired future, a small number of key directions is preferable to a comprehensive plan. This approach facilitates a visible re-allocation of resources to achieve significant but attainable ends.

9. Some models require strict pre-conditions before they can be applied while others are more tolerant and flexible in their application. The Outcome-Output model is an example of the former while managing by objectives (Objective Tree – figure 5) has broad applicability regardless of the structure and the business planning processes of an organisation.

10. The level of prior consultation undertaken in the community is a variable that needs to be considered in framing planning consultation processes. It may be appropriate in areas that have been subjected to high levels of consultation, to reflect the previous findings back to the community for testing rather than to start a new consultation process afresh. The converse may also apply.


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F

City of Onkaparinga


73

SSttrraatteeggiicc FFrraammeewwoorrkk

FUTURE NOW

Services

Programs

Projects

Service Area Business Plan

• Works Programs

Budget

Individual/Team Work Plan

Procedures

Service Definition

Service Specification and

Review

Service Agreements and Contracts

Strategic Directions

- Creating our Future

Financial Directions

Corporate Directions

Policy

• Reviews • Studies • Plans

DIRECTIONS

SERVICE SPECIFICATIO

N

OPERATIONAL

PLANNING

OUTCOMES


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• Trend analysis

• SWOT analysis

• Paradigm shifts

Context

• Previous studies (subjected to consultation)

• Social Atlas

• Statistical Bulletin

• Community views (surveys, letters, community forums – etc)

• Workshops with Council

• Local Members of Parliament (Southern Partnership)

Knowledge

• Desired future for the City (Elected Members’ Workshop)

Preferred Future

• Community newspaper broadsheet

• Key directions - objectives - strategies

Strategic Directions

• Internal staff and Elected Member consultation prior to public release

• Questionnaire included with document delivered to every household

Consultatio

+ + + ⇒=

feedback


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Figure 4

TimeStrategic Directions

Business Plan

Budget

Year 1

Year 3

Year 2 Trends &

Influences Broad Budget

priorities

Creating our Future

(October 1998)

strategic directions

Template

Guidelines

Revised Template

Revised

Guidelines

• prepared post-budget for 6 months (Dec ‘97- June ’98)

• prepared pre-budget

• revised post-budget

Budget

City of Onka-

paringa

City of Happy Valley Budget

City of Noarlunga

Budget

District Council of Willunga Budget

Budget

City of Onka-

paringa

BudgetCriteria & Priorities Workshops Budget

Comment-arycompliance

with Creating our Future

Budget

City of Onka-

paringa ‘99/00

-

in

preparation

Revised Template

Revised

Guidelines

• prepared pre-budget

• revised post-budget

Financial Directions

CorporateDirections


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Figure 5

Preferred future/

Desired Outcomes

Objectives

Program/

Project

Activity

enhance

biological

stabilise

dunes

control

public

improve

water

environmental enhancement,

especially the coast

effluent

management

wetlands

gross

pollutant

pump

maintenance

consumer

billing

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INTEGRATED PLANNING TIMETABLE Figure 6

ACTION FEBRUARY MARCH APRIL MAY

1. Budget Awareness Sessions 12th 15th

2. Business Plans & Guidelines Released 22nd

3. Elected Member Budget Workshop 23rd

4. Performance Development Plans Released 1st

5. Performance Development Plans Awareness Sessions 9th

6. Budget Request Forms returned to Finance 12th

7. First Draft Business Plans Developed 15th

8. ‘Rough Cut’ Budget to SMT/Managers for proofing/correction of data input 25th

9. Budget Returned to Finance 31st

10. First Draft Budget 6th

11. Final Draft Business Plans Developed (awaiting final budget process) 15th

12. Elected Member Budget Consultation 31st

13. Draft Performance Development Plans Developed 31st

KEY:

Budget Process

Business Plans

Performance Development Plans

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O U T P U T

O B J E C T I V E

S E R V I C E A R E A :P R O G R A M / P R O J E C T

A C T I V I T Y R E S O U R C I N G

D E C I S I O N S

1999/2000 2000/01 2001/02

Objective 1: Service 1: Area Planning (Heritage Conservation) - Service AreaHeritage conservation inurban areas

• Project 1 Heritage PAR (formerWillunga/Noarlunga areas)

Y1Y1Y2

• Inventory of Heritage• Draft PAR• Amend Development Plan

= C

• Program 2 Heritage Advisory Service

Y1-Y3Y1-Y3

• Contract specification• Funding negotiation = = =

• Program 3 Local Heritage Advisory Committee Y1-Y3

• Agenda and Minute preparation = = =

• Program 4 Heritage Conservation Plans

Y1-Y3Y1-Y3

• Plan preparation• Plan implementation = = =

• Program 5 Signage and promotional materials forheritage items/events

Y1-Y3Y1-Y3Y1-Y3

• Development of signage and promotional material• Sign erection• Production of promotional materials

= = =

Objective 2: Service 1: Area PlanningIntegrated local area planning • Project 1

Three centres: Port Noarlunga andNoarlunga Centres and Beach Road(Christies Beach)

Y1Y1

Y1Y2

• Noarlunga Centre Masterplan (AMP)• Relationships between the 3 centres - Position paper,

principles and objectives• Draft PAR for Beach Road• Amend Development Plan

=

==

C

C=

C

CC

Service 2: Port Noarlunga Cross Functional Team• Project 1 Port Noarlunga Township Refurbishment

Y1Y1

• Port Noarlunga Concept Plan refinement• Underground powerlines in Port Noarlunga

==

CC

CC

Y1Y1Y2-Y3

• Streetscaping for Gawler Street• Traffic management for Port Noarlunga• Continued implementation of concept plan (wetlands,

recreation areas)?

?=?

CC?

Objective 3: Service 1: Urban Design Cross Functional TeamImproved urban form anddesign

• Project 1 Local design themes for the City

Y1

Y1-Y3Y1-Y3

• Development of design themes for areas within theCity (consultant) including landscape elements,gateways, entrances and street furniture

• Partnership and funding identification• Implementation

=

=

C

=

C

==

Private Development)

Objective Tree Extrapolation Figure 7 Y1 = 1999/2000; Y2 = 2000/01; Y3 = 2001/02; = Static funding; or increase or decrease funding; c = completed; ? = unknown

APPROACHES TO STRATEGIC MANAGEMENT PLANNING IN LOCAL GOVERNMENT CITY OF PLAYFORD CASE STUDY

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City of Playford This Case Study has been prepared by the Council in collaboration with the Consultant. Project Description: Development and pilot testing a Business Planning Template Aims for the Project: The City of Playford sought to establish a meaningful and easy to

use Business Planning Template that would link with Councils overarching Strategic and Corporate Plans.

From an operational perspective, the Business Planning process

had to result in clearly defined action plans that describe the works that will be undertaken at a departmental function level. The plans needed to detail the what, when, who and which resources will be devoted to specific tasks.

The Business Planning process was to result in the City of Playford being able to clearly articulate WHY business Planning is required, HOW Business Planning can be effectively undertaken within an organisation, and WHAT the process of Business planning involves. Through the Business Planning process, the Council’s Strategic and Corporate directions are supported and translated to “on ground” works.

Prepared by: Leanne Muffet (former Corporate Planner) Contact Person: Kiki Magro (Manager Work Place Relations)

Phone 8254 0222 Email [email protected]

Consultant assisting: George Siokos and Damian Papps, Australian Business Enterprise Development



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Background: In 1998 the City of Playford developed a Strategic Plan to identify the organisation’s vision, mission, key result areas and goals. The process involved extensive community consultation and resulted in the development of a Vision statement for the community, and seven (7) Strategic Goals for the Council. The goals are: Goal 1: Economic Development and Employment Goal 2: Urban and Rural Form Goal 3: Environmental Sustainability Goal 4: Human Services and Community Facilities Goal 5: Community and Cultural Development Goal 6: Governance Goal 7: Image and Promotion Following this, the City of Playford developed a Corporate Plan to address the practicalities associated with implementing our seven goals. Developed at a broad level, the Corporate Plan identified the organisational outputs, including a range of projects to be undertaken across the Council, designated timeframes for these projects, and a nominated responsible manager for each task. A mechanism was then required to translate the broad Council goals, objective and vision statement into a series of more comprehensive plans, such as Business Plans. The Business Planning process enables Business Units / Teams to successfully plan for their future needs by aligning personnel and equipment requirements with tasks and budgetary objectives. The process was to effectively link to the on ground day-to-day operations of the Council with Corporate objectives, and as such, play a crucial role in making organisational objectives relevant for Business Units.

Working together with the consultant, an initial Business Planning template was developed in February 1999. The template was trialed in-house (at the City of Playford) with two pilot project teams during February and March 1999. From this exercise, the template was refined and redistributed for comment from the participants. The Business Planning template will be utilised across the organisation by every Business Unit, enabling them to align their outputs with the strategic direction of the Council, and its performance measures. Council Profile: The City of Playford forms the most northern Local Government area of Metropolitan Adelaide. Its boundaries are shared by seven other Councils, namely: Adelaide Hills, Barossa, Gawler, Kapunda and Light, Mallala, Salisbury and Tea Tree Gully. Covering 345 square kilometres, the City of Playford includes a diverse array of rural and urban land uses and is home to over 63,300 people (ABS 1996). The population in the City of Playford is particularly diverse and represents over 30 nationalities, many of whom have needs and requirements specific to them. The 1996 census also demonstrates that a higher than average unemployment rate, a particularly low ownership of motor vehicles, a greater proportion of elderly persons, and a younger population profile are found in the City of Playford when compared to the Adelaide Statistical Division.


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The Council accommodates a number of Regional Centres and townships, and a large range of land uses and environmental features. The complementary array of urban and rural land uses that are located in the city include retail, commercial, industrial, farming and horticultural activities. A range of recreational and leisure activities are found in the City of Playford, including The Aquadome, Adelaide International Raceway, North Lakes Golf Course, and the YMCA Recreation Centre. Passive and Active recreational opportunities are actively promoted through the provision and maintenance of conservation and open space areas, such as the Para Wirra Recreation Park, Fremont Park, and corridors along the Gawler River. Horticulture and farming activities play a vital role in the area. Located to the north of the Council area, the Virginia district is recognised as the focal point for horticultural development within the Northern Adelaide Plains, and in 1996 contributed approximately $69 million to the economy of the State. The City of Playford also supports a range of industries that offer a employment opportunities for residents of Playford, and contribute significantly to the economic output of the region. In accordance with the Council's mission statement, the Council is committed to:

Enhance the economic, environmental, social and cultural sustainability of our community, through strong leadership, community involvement, commitment to value for money, quality and responsive services.

Administrative Profile: The City of Playford is a relatively young organisation and was proclaimed as a City in February 1997, following the amalgamation of the former City of Elizabeth, and Council area of Munno Para. The Council has two discreet departments, and is operating within the framework of a purchaser-provider split. The total number of full time equivalent staff employed by the Council is 251, making it a moderately sized Local Government organisation. In 1998/99 the Operating budget was $34.3 million, the total expenditure of Council was $38.4 million, and there were approximately 27,300 rateable properties in the Council area. The City of Playford has recently moved towards introducing a greater range of feedback measures and tools. The first phase of this process was implemented through the Corporate Plan, which transferred Council’s vision and mission statements into corporate projects that were allocated to various departments. The progression of these projects is monitored on a quarterly basis through the Corporate Plan Quarterly Report. Council has also endorsed a corporate performance management system to review and monitor activities undertaken by Council. This process is largely based on the “Balance Scorecard” approach of performance assessment, which is generally accepted as best practice, and argues that feedback relating to performance should consist of a combination of financial and non-financial measures. To act in a more responsible manner, financially, the Council is also investigating the introduction of a greater range of user charges, in conjunction with the services that it provides across Council. Should such a position be endorsed, accountability and transparency relating to costs of services and products will be increased over time, ultimately benefiting the community.


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DEVELOPMENT OF THE BUSINESS PLANNING TEMPLATE Guiding Principles From the outset of the Business Planning project, it was decided to work with the “on ground” staff within the City of Playford. As the primary users of the Business Planning template, Council required direct feedback from staff members, to develop a template that would be meaningful, and “owned” by the organisation. As such, a number of guiding principles were developed and adopted at the project initiation. These principles were fundamental to the success of the project, and are described below: 1. That the process be inclusive: The process needed to involve a range of internal

staff members to pilot / “Road test” the template. The staff also played a key role in identifying issues that required reworking in the template;

2. That the process link with the Strategic directions of Council: It was essential that the Business Planning process be linked with a number of key directions and documents of the City of Playford. These processes included the City of Playford's Strategic planning process, and Corporate Planning process.

3. That the product be a dynamic “working” document: It was recognised that the Business Planning template not only had to be well researched, comprehensive and succinct, but that the continually changing environment in which we work, necessitated that the template be regularly reviewed and updated. The Business Plan was to have a life of up to 3 years.

Pilot Project Objectives: From the outset, the pilot project had two key objectives: 1. To ensure that all key internal people had a common and agreed conceptual

understanding of the planning process, how they could be involved in the process and the benefits that they would derive from being involved.

2. To demonstrate the “complete” planning process by working with two pilot project

teams and assist them with the preparation of their Business Planning template, including the development of Action Plans.

Methodology: Two "small and tight" working groups were selected (one from outdoor staff and one with inside / administrative staff) to ensure that budgetary constraints were adhered to and that the template was meaningful to a cross section of staff. It was estimated that approximately 5 days would be required for staff to undertake the Business Planning training and feedback session; 3 for workshops, and 2 for research. In reality, however, the task took much longer as Units dedicated time to research information, and formulated appropriate outcomes such as vision statements, the Units’ objectives and financial analysis. The key features of the process used to develop the template are outlined below: • The initial development of the Business Planning template. This was based on Best

Practice in Business Planning and was undertaken by a three person in-house “working party” from the City of Playford, in conjunction with the consultant. The development of the template took a number of months, and was tailored to meet the specific needs of the City of Playford.


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• A two day “Training” workshop was conducted with the two pilot project teams / units, run by the consultant, at the City of Playford. The purpose of the training sessions was two fold: to inform the participants of the objectives of Business Planning, and to “walk the participants through the template”, highlighting linkages, the purpose of various sections, and where unit members would need to undertake some research. The Units were asked to complete the template within the following three weeks and report back on the exercise.

• Following the collation of material by the project groups, a one-day workshop was held

to share experiences and to learn from the planning exercises. The “Reporting Back” session was held three weeks after the training days. During this session, the two pilot projects teams systematically reported back on the successes and difficulties associated with the template. The whole group also engaged in a “Where to from Here” exercise, lead by the consultant.

• The template was then refined in line with comments received from the pilot project

unit members at the Reporting Back session. Over a series of meetings these changes were made by the City of Playford and the consultant.

• The template was distributed to the pilot project participants for any additional

comments. The pilot project team members were given a three-week timeframe in which to make comment, either verbally or in writing.

• A number of alterations were made to the template in-house by the working party

members of the City of Playford, and distributed to the management for comment.

Working closely with the pilot project teams ensured that a meaningful and relevant Business Planning template could be produced. The one-day reporting back session created a forum for frank and honest comment about the content of the Business Planning template and the applicability of the document. During the reporting back session, a number of common themes were raised which included: ♦ the need to keep the template focused and simple; ♦ the need to avoid repetition in the template; and ♦ the need to engage participants in the process in meaningful and relevant ways. This feedback proved invaluable for the refinement of the Business Planning template. The CEO and Senior Management did not play an active role in the Business Planning process, but acted in a review capacity - in which they were invited to make comment on the template. This approach was deliberately taken to ensure that the Business Planning template was meaningful for staff operating at a Business Unit level, and was developed to have a strong "hands on" or "grass roots" focus.


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City of Playford Business Planning Methodology

Phases

Phase 2 Overview of

Planning & Pilot Process

Phase 5 Evaluation of

Planning Process & Template

Phase 4 Completion of Business Plan

Template

Phase 3 Development

of Business Plan

T l t

Phase 6

Recommendations

Phase 7 Implementation**

Phase 1 Selection of Pilot Groups

**Stage yet to be completed


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Business Planning Methodology

Stage Description Method Who's Involved 1

Selection of Pilot Groups

Selection of two business units for participation in the pilot, one from the administrative area of Council and one from infrastructure. The business units were selected on the basis of their disparate activities and needs which would need to be reflected in the City's business plan template.

Expressions of interest sought from all Business Units. Pilot groups selected by project managers after consultation with respective business unit managers.

Business unit managers and project managers.

2

Overview of Planning & Pilot Process

Participants from pilot groups were provided with an overview of: • this project and its relationship to the City's

strategic and corporate plans. • business planning frameworks, processes

and benefits. • the expected outcomes of the project - to

develop a business plan template and process for the consideration of senior management and subsequent implementation across the Council's Business Units.

This overview was provided to ensure that participants had an understanding of how the overall strategic directions of the Council linked with the business planing process and to provide them with an understanding of what was expected of them.

Workshop facilitated by Consultants.

Manager and employees from Business Units participating in the pilot, with involvement of a number of senior managers across the organisation.

3

Develop Business Plan Template

The pilot groups were taken through each of the elements of a typical business plan. Discussion then took place within the pilot groups as to which elements would need to be included within the City's Business Plan template. Elements were selected for inclusion in the template on the basis of the role and activities performed by each of the respective Business Units.

Workshop facilitated by Consultants.

Manager and employees from Business Units participating in the pilot.


86

Stage Description Method Who's Involved 4

Preparation of Business Plan Using Draft Template

The pilot groups were initially assisted by the consultants in the application of the draft template in order to develop a Business Plan for their Business Unit. The groups were then asked to discuss and agree on: • Further information that was required to

complete the business plan • Where and how the information would be

obtained • Roles and responsibilities in the process Support that may be required from specialist officers with the necessary expertise to complete aspects of their Plan.

The pilot groups started the preparation of the template within a workshop facilitated by the consultants. The workshop was followed by further work undertaken by the Business Unit manager in conjunction with employees back within the Unit.

Manager and employees from Business Units participating in the pilot. The consultants and various specialist officers (eg financial, human resources, etc.) across the Council were made available to assist the pilot groups in the completion of their Business Plan applying the draft template.

5

Evaluation of Planning Process & Template

Each of the pilot groups presented an evaluation of the planning process and their plan, including: • A description of their plan • Their approach to developing the plan • Positives and negatives of the process • What was learnt • Recommendations in relation to the

development and implementation of the business planning process and template.

Issues that emerged included: • The need to keep the template focused and

simple • The need to avoid repetition • The need to engage the participants in

meaningful and relevant ways.

Workshop facilitated by the Consultants. A number of changes were made to the template including layout, presentation and content.

Manager and employees from Business Units participating in the pilot, with involvement of a number of senior managers across the organisation. The Consultants facilitated the one day workshop. A working party of three Playford staff members worked with the consultant to make the necessary alterations to the final template.

6

Recommendations

Based on the contributions of both pilot groups a series of recommendations were agreed for the further development of the business planning process and template and how to market the process to the rest of the organisation. These recommendations were presented to the senior manager team for consideration.

ocess undertaken internally by Working Party members.

Manager and employees from Business Units participating in the pilot.

7

Implementation

Post project

Training of Team Leaders on how to undertake the Business Planning process is commencing in September 1999.


87

BUSINESS PLANNING TEMPLATE

DRAFT

SEPTEMBER 1999

Any replication, use, or part use of this Template should be cited as the property of

The City of Playford.


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Overview of the City of Playford Business Planning Template (The complete template can be provided through contact with the City of Playford) The City of Playford’s Business planning template easily breaks into five discreet and interconnecting components. It is suggested that the five components are treated as individual exercises that will be combined to produce the final business planning document for individual units.

1. The Executive Summary 2. A Visioning Exercise 3. Organisational / Strategic Contribution 4. Critical Issues Analysis 5. Goals Analysis and the setting of Action Plans

Section 1: Section 1 “The Executive Summary” gives a concise description of individual Business Unit’s key roles / functions and highlights the works that make individual units unique. The Executive Summary contains a description of the services provided by the unit and how the unit contributes to the overall organisational structure. A broad overview of staff numbers, equipment requirements and future directions also need to be summarised in the Executive Summary. Section 2: Section 2 of the Business Planning process involves undertaking a Visioning exercise to determine where the Business Unit wants to be in three years time. A series of “purpose” statements need to be completed for this exercise. By defining key responsibilities, outlining links with other agencies, and identifying areas where efficiency and achievements can occur, individual units can “focus” on what their main role within the organisation is. Section 3: Section 3 of the template asks all units to consider HOW their key projects and tasks link with the Goals in the City Plan and Strategic Plan documents. In order to undertake this exercise, all units need to understand the seven goals in the City (Corporate) Plan, and be familiar with the range of projects / tasks being undertaken within their area. Section 4: Section 4 of the Business Planning Template involves the assessment of a range of critical issues - to ensure that individual units are familiar with the framework that they are currently working within. Issues are explored to enable Business Units to comprehensively understand WHAT their key requirements are. This is the largest section in the template. Section 5: As a result of undertaking Section 4 “Critical Issues Analysis”, Section 5 can be comprehensively undertaken. With the critical issues information in the forefront of their minds, Business Units are asked to determine a range of forward looking goals for the coming 6 months to 3 years timeframe. A three pronged approach to the development of goals for the Business Units is used, involving the following tasks:

5.1 the identification of goals for the unit; 5.2 undertaking a helping / hindering forces exercise to identify any forces that will impact

on achieving the goals; and 5.3 developing a range of strategies and actions to assist in achieving the specified goals.


89

Conclusion/Hints Consultation and Consideration of Regional, State and National Policy/Strategies The new Local Government Act 1999 will require Council to indicate the extent to which it has participated with and given consideration to regional, state and national objectives and strategies when developing strategic management plans. Whilst this is a new provision to be completed by 2002 the City of Playford did give consideration to this issue. The LGA funded a component of the project related to developing a Business Planning Template and is about a "process" to support existing Strategic and Corporate plans. In that context consultation and consideration of policies developed by others was undertaken during the preparation of the Strategic and Corporate Plans.

When preparing the Strategic Plan, the City of Playford undertook an extensive consultation exercise. A number of Reference Groups were established during this time to discuss a range of issues, that centred around three major themes: • Economic Development & Integrated Planning, • Environmental Sustainability, and • Social and Community Development. Representatives from Federal, State, regional and local organisations participated in the Strategic Plan consultation process. From the outset of the project, the City of Playford recognised the need to forge strong alliances between the Council and Federal, State, Regional and Local groups / bodies. As such, a broad range of organisations and groups were invited to participate in the Strategic Planning consultation process, to provide advise on local issues and future planning directions. A list of some of the organisations that were involved in the process are listed below: • Anglicare • Conservation Council of South Australia • Elizabeth Police • KESAB • Landcare • Migrant Resource Centre • Mount Lofty Ranges Catchment Programme • Northern Adelaide Development Board • Northern Adelaide Region of Councils • Northern Hills Soil Conservation Board • Northern Youth Services • Para Institute of TAFE • Playford Greening and Landcare Group • Primary Industries of South Australia • South Australian Housing Trust • Virginia Horticultural Centre. The City of Playford has ongoing working relationships with many of these groups.


90

The City of Playford’s Strategic Plan was written within the framework of the State Planning Strategies: • The Planning Strategy for metropolitan Adelaide, and • The Planning Strategy for SA Country, as both documents provided a framework for broad

strategies in the Council area, and areas surrounding the City of Playford. The Strategic Plan was also shaped by two Regional documents; The Northern Adelaide Plan, and the Mount Lofty Ranges Regional Strategy Plan, which establish strategies for specific issues in the area. Lessons Learnt A number of lessons were learnt from the Business Planning undertaken at the City of Playford. While many of the lessons may appear to be common sense, they are still easy to overlook in the process. Provide a Contextual overview It is imperative to provide a strategic overview or context, within which the Business Planning process occurs. Such an approach assists participants in understanding the importance of Business Planning and how it "fits" with the bigger planning picture of an organisation. Undertaking the right training

Undertaking training relating to the process, that outlines WHY the process is occurring, and some of the long term objectives of the project is important to assist people with understanding the process. Working in collaboration

Working alongside staff to develop a template that is easy to understand, and meaningful for them is essential for the long term success of the project. Ensuring a two way flow of communication

Keeping the flow of communication working two ways will also assist with the success of Business Planning, as ownership of the process is fostered. Allocating the required resources

The appropriate resources need to be allocated to the task, and if necessary “freed up” from another part of the organisation for a period of time. Time and resources must be allocated to produce the desired outcomes, which include integrating the Business Planning process with the rest of the organisation’s processes and systems.

APPROACHES TO STRATEGIC MANAGEMENT PLANNING IN LOCAL GOVERNMENT WATTLE RANGE COUNCIL CASE STUDY

97

Wattle Range Council

This Case Study has been prepared by the Council in collaboration with the Consultant. Project Description: Linking the Strategic Plan to Service Delivery Aims for the Project: Define and expand the linkages between the existing strategic plan

and performance measurement, benchmarking and market testing of Councils service delivery in order to apply contestability.

Contact Person: Frank Brennan and Tony Bawden Phone 8733 2177

Email [email protected] Consultant assisting: Mr Joe Collins

Collins Anderson Management


Project Aim: The overall aim of the project was to establish a meaningful Contestability Model which provides the necessary framework, guidelines and support measures for the purposes of implementing a contestability approach which features performance measurement and market testing of Council’s service delivery.


97

Collins Anderson Management undertook the development of the Pilot Contestability Model after the following research:

• consultation with Senior Management from Wattle Range Council on the optimum ways of addressing the issues outlined in the Project Brief

• reference to Council’s Corporate Plan and Enterprise Bargaining Agreements • reference to the Local Government Association, “Service Provision in Local

Government Manual” • reference to the manual, “Benchmarking for Local Government – A Practical Guide”

Having undertaken this research Collins Anderson Management established a nine step Contestability Model to explore with the Council which incorporated the following steps:

1. Establishing Council’s Service Provision Policy Framework 2. Exploring the Council’s Culture and Operational Environment 3. Selecting potential services for Contestability 4. Setting Management Approaches & Structure for Contestability 5. Developing Service Profiles 6. Process Review & Performance Measurement 7. Internal Process Redesign 8. Comparative Performance Measurement & Benchmarking 9. Process Design and Evaluation

There were a number of work sheets developed for each step, which assisted Council staff to implement the project with assistance from Collins Anderson Management. These work sheets were based on the Local Government Association’s “Service Provision in Local Government” Manual and the “Benchmarking for Local Government - A Practical Guide”. Each of these works sheets were adapted to meet the specific requirements of the Council. Council Profile: Wattle Range Council is a large rural Council covering some 388,000 hectares of diverse and highly productive land. The Council area extends from the Victorian - South Australian Border in the east, to the South Australian coast at Beachport, Southend and Lake Bonney in the west and has a population of over 12,700 people. Council’s headquarters are located at Millicent with customer services offices located at Penola and Beachport. Major industries include, forestry, agriculture, tourism, wine making, fishing, food processing, timber processing and beef, sheep and wool production.

The Council employs 120 staff.


97

Wattle Range Contestability Methodology


Establish Council’s Service Provision Policy Framework

The range of services Council provides the manner of their delivery and their quality was considered central to the operations of the Council. Stage 1 involved Council in determining its overall approach to service provision. In developing its approach to service provision Council considered the following questions:

• What kind of Council it is • The mix of service provision

choices Council is currently adopting (ie in house, contract out, competitive tender, resource share etc.)

• The reasons behind these choices

• Whether services are being provided in an effective and efficient manner

• Whether Council wants to continue with the current mix of service provision choices, or explore other choices

• This involved a combination of

management workshops and completion of proformas.

• From this a draft policy statement was produced by the management team and discussed by full Council prior to adoption.

• Management

Team • Consultant • Management

team • Elected

Members • Consultant

2

Exploring the Council’s culture and operational environment.

During Stage 1 Council clarified its overall approaches to service provision, and gained some insight into its potential future choices for service provision. Stage 2 assisted Council to examine its service provision choices and options in the context of:

• Its Corporate Plan • Its Organisation Structure • Employee Relations matters • Enterprise Bargaining

Agreements

• This stage involved the

management team collectively discussing the strategic position of Council. Specific proformas were utilised to highlight the strategic issues

• CEO/

management team

• Consultant


97

3 3

Selecting Potential Services for Contestability and the “pilot service” Stage Selecting Potential Services for Contestability and the “pilot service” (Continued)

Council considered the factors it would take into consideration when selecting potential services for which to apply contestability. Factors taken into consideration were: • Council’s Service Provision

Policy (Stage 1) • Council’s Policy and Planning

Documents (Stage 2) • The size of the budget for the

service in comparison to other services

• The size of the staff numbers for the service in comparison to other services

Description It also selected a service to “pilot” its contestablity approach. The service selected was “property search services”. This service was considered small enough but had a range of cross department inter-relationships i.e. Environmental and Administration Departments/functions.

• This was discussed by the

management team after completing specific proformas

Method

• CEO • Management

Team • Consultant Who’s involved

4

Setting Management Approaches & Structure for Contestability

This stage of the Contestability Model marked the end of the research, analysis and service choice stages, and provided a platform from which to implement the management tools of Contestability. In this stage ,Council confirmed:

• the management approach for Contestability

• the management structure for Contestability

• the service/s to which the Contestability process might apply

In order to prepare the workforce for Contestability and manage the process efficiently the Council implemented the following actions in a joint consultation session involving management, employees and union representatives: • Managers were briefed on their

role within the Contestability process

• Employees and union representatives were advised and given the opportunity to provide feedback.

• Consultant • CEO • Management

Team • Workplace

Representatives

5

Develop Service Profiles

The Council explored what it considered necessary for the profile of each of its services. The various elements of a service profile were determined to be:

• Service Definition • Service Goals • Customers • Service Inputs & Outputs • Suppliers • Resources • Service Standards

The service profile was considered to be a core document in making choices about service provision. CounciI considered that to build up service profiles it would need to:

• Obtain accurate information

• An intensive 2-day workshop

was undertaken involving a workforce task team and the Consultants

• The workshop was designed to be interactive and involved the workforce in developing a service profile utilising standard proformas

• Consultants • Task Team


97

about its service provision • Identify the gaps in the Council’s

information bank about its services

The Council applied its service profile framework to its pilot service of “property search services”.


Process Review & Performance Measurement – Pilot Service Area

Stage 6 required the Service Area Work Group for Property Search Services to undertake the following activities to review the service, and prepare it, if deemed necessary, for internal process redesign. • Map the service process • Develop Performance

Measurements and a Balanced Score Care

• Collect Performance Measurement Data

• Cost the service process Developing Performance Measurements and a Balanced Scorecard This process involves three stages: • Identifying the Corporate Goals

which relate to the service • Developing Key Success Factors for

each service • Developing Key Performance

Indicators Collecting Performance Measurement Data Having defined the Key Performance Indicators the team collected the necessary supporting data and ensured that it was accurate. A key element of this process was the consultation undertaken with the clients of Council that use the property search services. Costing the Service This stage required team members to

This step required team members to define the boundaries of the service process, identify process steps, and then draw the process map relevant to the pilot service area. In doing this, team members were required to go through each step of the service process in a brainstorming session to generate sufficient input and feedback on how the service is currently performed. Team Members were required to develop these indicators by completing a worksheet on Key Performance Indicators. Team members were given a cost worksheet to assist them in the

• Work Teams • Consultants


97

estimate the unit cost of the service. This was necessary for the following reasons:

• To enable a comparison between the cost of the service as it functions currently and the cost of the redesigned service process

• To enable a comparison between the cost of the service against that of another Council’s in the comparative Performance Measurement and Benchmarking stage

• To relate the cost of the service process to differing service levels or service output quantity

development of an estimated unit cost for the service process. The worksheet includes all direct labour and associated overhead and direct operating costs.


Internal Process Redesign

In Stage 7 team members were required to begin the internal process redesign stage. This step incorporated the following elements:

• Evaluation of current data • Elimination of waste • Redesign of the process • Establishment of revised

performance indicators The internal redesign process was considered a key aspect of the model. By undertaking detailed performance measurement in this stage, Council can save considerable time and resources in later stages of the Contestability process. The internal redesign of the service process involved the restructure the original process map. In this way team members were able to see the strengths and weaknesses of the current process, the steps that are unnecessary, any examples of rework, and provide suggestions for improving the service process. Having redesigned the process, team members revised performance indicator data so that it was relevant to the new process.

Work teams under the guidance of the consultants closely analysed the process map to eliminate waste, improve standards & reassign staff functions to appropriate levels. Measurement of the redesigned process quantifies productivity gains and so justifies the model in the realisation of corporate goals and Enterprise Bargaining objectives.

• Consultant • Work Team

8

Comparative Performance Measurement & Benchmarking

Stage 8 outlines the processes that Council would undertake should it find a suitable partner to benchmark its service/s with. This step is considered to be only possible if the benchmarking partner has adopted the same Contestability model. Should this situation occur a series of tasks should be undertaken by the Service Area Work Group in preparation

• Stage 8 and 9 were not

incorporated into the brief. However as part of the exercise a suggested approach was developed.

• Consultant


97

8.

Stage Comparative Performance Measurement & Benchmarking (Continued)

for the sharing of performance information in a meeting with the benchmarking partner. The tasks proposed are:

• plan the data required for the meeting with the benchmarking partner

• prepare a summary of what Council has done so far concentrating on the analysis completed through the process review and performance measurement stages

• develop a series of questions which probe the key points Council would like to discuss in the information sharing stage

Description • provide a copy of this

questionnaire to the benchmarking partner prior to the visit

After the meeting the following tasks would be completed:

• Collate the comparative data into summary tables

• Add a short description of best practice features observed in the benchmarking partner’s processes

• Review the data to assess the performance gaps

Method

Who’s involved

9

Process Design and Evaluation

Stage 9 involves the development of a detailed best practice model incorporating Human Resources, Information Technology and Organisational Structure examples. This would be based on: • the comparative performance

measurement and benchmarking analysis completed in the previous step

• the internal service process analysis and performance measurement completed in Stages 5 to 7

• Stage 8 and 9 were not

incorporated into the brief. However as part of the exercise a suggested approach was developed.

• Consultant


97

Conclusion/Hints Consultation and Consideration of Regional, State and National Policy/Strategies The new Local Government Act 1999, will require Council to indicate the extent to which it has participated with and given consideration to regional, State and National objectives and strategies when developing strategic management plans. Whilst this is a new provision to be completed by 2002, the Wattle Range Council did give consideration to this issue. The Wattle Range Council undertook limited consultation with other Councils, regions and State and Federal Governments during the preparation of the business plan. Council was, however, mindful of the wider issues and legislative impact of governments, ie National Competition Policy, industrial laws, water resources and development plans and the need for ongoing coordination of service delivery Importance of Exploring a Framework First The Council was keen to explore a framework for the application of contestability in consultation with the Elected Members, Senior Managers, Staff and Unions prior to introducing or committing to a particular path. The framework also resulted in an appropriate structure to explore the contestability approach that Council was keen to pursue. The structure adopted incorporated the formation of a Contestability Committee and Service Area Work Groups. In effect all key players were involved and consulted and the expertise and skills of all players was recognised and used in the process. The structure helped create the ownership of the outcomes achieved. The “downside” of having the path feel right to employees is that given the pilot in the property services area resulted in improvements of 33% savings in staff hours, 55% improvement in responsiveness for property searches and a cost saving of 40%, staff were keen to implement the changes. However Council were not able to do so immediately because the “model” had yet to be formally adopted by Council and it’s employees. The process also revealed that there is scope for change without job losses resulting. The framework has now been endorsed by Council and staff are keen to move down the path with further service areas already being identified. Consultation and Involvement of Unions and Employees It was considered important that Council consult effectively with the Unions and employees. The enterprise bargaining agreement guided the consultation framework and the level of enthusiasm through participation in consultation was very evident. The pilot process reinforced the need to involve the people doing the job when considering how changes could improve performance – these people have the knowledge that this process requires. Benchmarking Developing service profiles and collecting data was integral to having an accurate picture of the service that Council is keen to compare with other providers. However, not having benchmarking partners identified when Council commenced the process might prove to hold up or make it difficult to find appropriate partners. Council strongly believe that to compare performance all partners need to define and compare the same thing or at least understand and be able to factor in different approaches. Council is also of the view that before you can participate in a benchmarking or comparative exercise you need to have accurate information about Council’s own services.