County of Los AngelesCHIEF EXECUTIVE OFFICE

Kenneth Hahn Hall of Administration500 West Temple Street, Room 713, Los Angeles, California 90012

(213) 974-1101http://ceo.lacounty.gov

SACHI A. HAMAI Board of SupervisorsChief Executive Officer HILDA L. SOLIS

First District

MARK RIDLEY-THOMASSecond District

I ‘DO r~-i~ SHEILAKUEHL~..~anuary~~o, UIU ThirdDistrict

DON KNABEFourth District

MICHAEL D. ANTONOVICHFifth DistrictTo: Supervisor Hilda L. Solis, Chair

Supervisor Mark Ridley-ThomasSupervisor Sheila KuehlSupervisor Don KnabeSupervisor Michael D. Antonovich

From: Sachi A. H f~iChief Exec~ifi~1icer

CEO ORGANIZATION REPORT

On July 7, 2015, the Board of Supervisors (Board) took action to amend the CountyGovernance Structure. As part of this action, the Board directed the Chief ExecutiveOfficer (CEO) to “assess whether its various functions and responsibilities shouldcontinue to be assigned to the CEO, or would it be more appropriately assignedelsewhere in the County structure.”

The CEO’s organizational review is summarized in the attached report, which:

• Identifies CEO functions and units that are primarily strategic, versus those thatare primarily transactional and operational. To focus energy on the Board’spriorities, the report recommends transferring the CEO’s transactional functions(with 76 budgeted positions) to other County departments.

• Recommends the transfer of most Chief Information Office functions to the CEOto better align information technology resources with the Board’s strategicinitiatives.

• Describes significant enhancements to the CEO’s asset management functions,including master planning, sustainability, asset lifecycle management, andeconomic development.

“To Enrich Lives Through Effective And Caring Service”

Please Conserve Paper— This Document and Copies are Two-SidedIntra-County Correspondence Sent Electronically Only

Each SupervisorJanuary28, 2016Page 2

The recommendations are cost neutral. Pending your review and concurrence, theCEO will return to your Board within 60 days with recommendations to formally adoptthese changes, including position and budgetary transfers.

We thank those who participated in this analysis, including your Board offices, CEOemployees, and the impacted departments.

If you have any questions regarding this matter, please contact me at (213) 974-1101.

SH:JJ

Enclosure

c: All Department Heads

Los Angeles County

CHIEF EXECUTIVE OFFICE

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PUBLICLIBRARY

CHIEF EXECUTIVE OFFICERORGANIZATION REPORTJANUARY 2016

EXECUTIVE SUMMARY

In July 2015, the Board of Supervisors directedthe CEO to review its various functions andresponsibilities to determine if any would be betterreassigned elsewhere in the County~

The resulting organizational assessment identified theCEO functions and units that are primarily strategic,versus those that are primarily transactional!operational. Given the CEO’S need to focus onBoard strategic priorities, this report recommendsthe reassignment of the CEO’S transactional!operational functions and resources to other Countydepartments. These actions will involve 76 budgetedpositions.

This proposed organization also aligns CEOfunctions with two Board strategic objectives:

Placing greater focus on the strategic use ofinformation technology

The report recommends transferringstrategic information technology functionspositions from the Chief Information Office(ClO) to the CEO. Operational componentsof the CIO will be transferred to the InternalServices Department (ISD) while theinformation security officer functions will beevaluated for placement in the appropriatedepartment.

Establishing greater accountability forstrategic asset management.

This change will include a greater emphasison sustainability, master planning, assetlifecycle and maintenance programs andcoordination of economic development andaffordable housing initiatives. A separatereport on asset management is forthcoming.

Proposed actions will be accomplished withinexisting resources and budgeted positions. Ifapproved by your Board, the CEO will work withimpacted departments to implement the changesimmediately, with formal Board approval of relatedbudgetary!administrative actions to follow.

The recommendations presented here will establisha Chief Executive Office that is more responsive toemergent requirements and Board priorities. Also,the CEO’S enhanced planning and asset managementfocus will provide the Board with more effectivedecision making tools, improve sustainabilityand asset life cycle management, and ensure thatCounty-owned assets provide efficient and effectivesupport of constituent services.

ef Executive Officer Organization Report I January 2016

BACKGROUND

On July 7, 2015, the Board of Supervisors amendedthe County governance structure to:

• Restore the Board’s direct authority overall non-elected department heads, therebyincreasing interactions and discussions withdepartment executives on important policyquestions.

• Approve the CEO’S establishment of AdHoc Initiatives to address Board priorities,and Agenda and Policy Committees to“recommend to the Board policies andpractices that result in more effective andinnovative services to constituents:’

• Reaffirm the Board’s role in Setting policiesand providing strategic leadership for theCounty government.

• Reaffirm the CEO’S role in overseeing day-to-day County operations, offering analysisand recommendations on issues before theBoard, and monitoring the implementationof Board decisions.

As part of the motion approving these changes, theBoard directed the CEO to “assess whether its variousfunctions and responsibilities should continue to beassigned to the CEO, or would be more appropriatelyassigned elsewhere in the County structure:’

During the past year, the Board has demonstrated itswillingness to address many of the most challengingsocial issues confronting this region.1 To addressthese demanding initiatives and the steady Streamof other important County issues, the Board hasdeclared that success would be dependent onstreamlining the traditional County bureaucracy andencouraging innovation at all organizational levels.The Board has envisioned a new County culturecharacterized by cross-boundary collaborations,increased dialogue and communication, quick and

effective responses to emergent demands, and awillingness to rethink how work is organized, whiledelivering high quality performance. The Board’senvisioned culture incorporates five core principlesthat the proposed CEO organizational structure mustsupport:

)~ A policy agenda that is issue-oriented.This demands thorough strategic analysis of thesubstantial underlying causes and comprehensivediscussion (and search for consensus) beforereaching a decision.

) Analysis that is multi viewpoint-oriented.This demands upfront input from internaland external stakeholders to ensure that allperspectives are considered when deliberatingupon an issue.

> Accountability that is outcome-oriented.This demands clearly articulated outcomemetrics, along with action plans that specifytimelines, milestones, and responsibilities.

> Decision making that is transparency-oriented.This demands openness in discussions, positiveefforts to inform the public about issues, and easyaccess to documents, reports, and other availableinformation.

~ Implementation that is integrated andnetwork-oriented.This demands (particularly on complex issues)considerable collaboration across domains andsectors to leverage resources, thereby increasingthe probability of success.

To maintain its focus on these core principles, theCEO must prioritize its strategic role and functions,and reassign transactional operations whereverfeasible.

1 For example, the delivery of quality health care services to the neediest residents, creation of the Office of Child Protection to coordinate andstrengthen programs and services to children and their families, suppression of sex trafficking to eliminate this form exploitation, the diversionof mentally ill individuals from the general jail population to guarantee appropriate treatment, and reducing homelessness while improving lifeopportunities for individuals and families.

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Chief Executive Officer Organization Report I January 2016

THE CEO PERSPECTIVE

Establishing a satisfactory organizationalarrangement of jobs, roles, and relationships is anongoing challenge, exacerbated by organizationalsize, the diversity of operations and services, andenvironmental complexity. There is no clear-cutsolution for Los Angeles County overall, or theCEO specifically.2 Within this framework andunderstanding, the CEO has committed to thedesign of a flexible department structure3 capableof providing quality information, detailed analysis,and, as appropriate, recommendations to the Boardand analytical support for the Agenda and PolicyCommittees, and Ad Hoc Committees described inthe approved July 7, 2015 motion.

The CEO organizational structure, regardless ofthe issue, must demonstrate its (a) strategic focus,(b) countywide perspective, and (c) objectivity.Therefore, the compelling rule of thumb for assessingthe appropriateness of CEO units is whether theunit is predominately strategic or transactional. Ifthe latter, it should be transferred from the CEO toanother department where it shares a community ofinterest.

Figure 1 represents the current organizationalstructure for the CEO, with the areas in red signifyingdivision/units that are primarily transactional4 andtherebydesignated for reassignment.5 Table 1 indicatesthe divisions/units, the number of employees, andthe receiving department (based on the communityof interest principle). Seventy-six (76) budgetedpositions (14 percent of the current CEO total) willbe reassigned to other departments, including theBoard of Supervisors Executive Office, Department ofHuman Resources, Auditor Controller, and ISD.

2 The recent decision to form a health agency, for example, represents an enduring type of structural dilemma.

The most often cited descriptions of flexible, nimble organizations highlight (a) the need for an organic rather than a mechanistic structure, (b) anorganization that “thinks~ laterally (across boundaries) first and hierarchical second, and (c) an adaptive workforce capable of adjusting quickly tochanging circumstances.

Among the characteristics used to define a strategic unit are (a) a current focus by the Board and/or chief executive beyond the currentoperational immediacies, (b) a shift in unit mission and/or controversy over future direction, (c) broad organizational impact over several years, (d)major financial risk or opportunity, and (e) choices must be decided by executive management.

An exception may be made to retain a transactional unit within the CEO due to its immediate importance to the Board.

Chief Executive Officer Organization eport I January 2016

Figure 1— CEO Current Organizational Structure

Chief Executive Officer 2.0Chief Operating Officer 50

Special Budget & Central Compensation Legislative Affairs Countywide AdministrativeProjects Operations Services & Risk & Communications Services

Management Management IntergovernmentalRelations

550 620 1150 148.0 27.0 36.0 89.0

‘Sheriff Initiatives Management & Support Management& Support Employee Relations Management & Support Public Affairs Management & Support

Employee RelationsClassification

Family& Social Capitol Projects Work Place Programs Le~siative Policy Cable & Multimedia Budget Fiscal ServicesHomeless Initiative Services

Debt Mgmt ~iality& Productivity Federal Legis Board Services Fiscal-Workers CompCommits

Property Day State Legis

Budget Dee & Space Planning Rev/Tax‘Office of Child Finance Admln Redevelopment InformationProtection Comp Policy Technology Services

Dis Civil RightsCompeHR Operations

Sacramento OperationsCommunity Services OEM-Operations

Service Integration Reol Estate Budget SystemsOffice of Child Care Risk Management Plan/SecurityL.AUen~abOol Property Mgmt WC Claims Washington DCAB212 Grant Budget 0ev Lease Acquisition we Leave Mgmt Operations Special Projects

lnte~ated Services Rent Budget OperationsInfrastructure Space Mgmt Liability Claims

Health & Mantel Health Small Claims Protocol Human ResourcesResearch Fee SpaceDesign Envir Loss Facilities Mgmt SvcsHousing/Homeless Occupational

HealttiGang Strategies Finance

Unincorporated Employee AastArea Services Progem Contracts

‘Temporary aonignments

OperationsOffice of Emergency Countywide DisasterManagement Admin Service

Emergency GrantsPosition Control Admin & Monitoring

Public Assistance

Public Safety

Redevelopment

ef Executive Officer Organization Report I January 2016

Table 1— Reassignment of Units/Functions

Reassign from CEO To Receiving Department

CEO DIVISION UNIT/FUNCTION FTEs

Employee Relations Worl~ Place Progr~ms 9 Department of Human Resources

Employee Relations Quality & Productivity Commission 3 Executive Office of the BOS

Risk Management Employee Assistance Progrérn 9 Department of Human Resources

Risk Management Occupational Health Programs 15 Department of Human Resources

Risk Management Leave Manag~ment 11 Department of Human Resources

Real Estate Facility Space Design 6 Internal Services Department

Real Estate Rent Budget (Invoicing) 7 Auditor-Controller

Communication Board Services (Photo & Graphics) 16 Executive Office of the BOS

Total 76 14%

Total FTEs 539

Net FTEs 463

ef Executive Officer Organization Report I January 2016

Figure 2 — Proposed Organizational Chart

Chief Executive OfficerChief Operating Officer

7.0Position Count = 463.0

Budget & Asset Strategic Legislative Affairs & Countywide Risk Management AdministrativeOperations Management Integration Intergovernmental Communications Services

Relations110.0 83,0 55.0* 20.0 55.0 106.0

27.0

Budget&Finance Chief Technology Public Officeof EmergencyCapital Programs Officer Washington, DC Claims ManagementAffairs Msnsgeniant

L BudgetDevelopinent & ConstructionL Planning & Publ~ Sanace lotegratron Sacramento Cable and Multimedia Risk Mitigation Budget and ffscal

Asst Brencl~5pecialFinance

ProjectsI— Health & Mental~ Health Construction

Budget & FinanceState Bill Analysis Digital Presence IT Operations

Community Home ass InitiativeServices Content Management

Master Planning & Social MediaPosition Control Sustainability

Protocol ContractsOversight and

MonitoringBudget L Asset Mgmt

Planning Health Agency

~ Family&Sociel Development Officeof ChildSheriff Initiative

Economic HR and Facilities

Services ProtectionAffordable

Public SafetyHousing

Countywide StrategicL Sustainebility& PlanI Life Cycle MgmtOperations I

L UnincorporatedArea Services

Employee Relationsand Classification

and LeasingEmployee Real EstateRelations b S~ce&Propa~y

MgmtClassification

[LeaseStrategies

Compensation

~ Comp Policy

Comp-eHR Policy

Agenda end PolicyCommittees

*Total does not include the position transfers for the Chief Technology Office.

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Chief Executive Officer Organization Report I January 2016PROPOSEDCEO STRUCTURE

RECOMMENDATION

The Board of Supervisors approve the redesign of the CEO departmental structure

Given the stated intentions of the Board regarding the overall County direction, strategic priorities, and performancequality expectations, the proposed CEO restructuring better aligns the department to meet the Board’s current andfuture requirements simultaneously. This included modifying the responsibilities of some existing functions andestablishing new functions to increase flexibility and responsiveness.

CEO RedesignFollowing an inclusive process of interviews anddiscussions with CEO managers and consistentwith your Board’s direction, the CEO proposes areorganized structure that results in a reassignmentof 76 existing CEO budgeted positions to otherdepartments. At the same time, it is recommendedthat strategic IT functions now located within theCIO be reassigned to the CEO.

Figure 2 depicts the proposed CEO structure whichconsists of seven organizations reporting to theCEO/COO:

• Budget and Operations Management(BOM) will remain the same under thereorganization, with the exception that boththe Compensation and Employee Relations!Classification organizational units are nowrealigned to the BOM branch manager.

• Asset Management will reflect substantialchanges in roles, function, and organizationalfocus, as discussed below.

• Strategic Integration replaces the SpecialProjects Branch and has added an office ofChief Technology Officer.

• Legislative Affairs, CountywideCommunications, Public Affairs andAdministrative Services remain largelyunchanged.

• Risk Management will continue to reportdirectly to the CEO/COO.

Under the proposed redesign, units and functionshave been assigned to other County departments,or in some cases, realigned within the CEO. Thesereassignments and realignments are detailed below.

Also, it is proposed to reassign the functions of theChief Information Office, also detailed below, to theCEO and other departments as appropriate. Finally,the Asset Management branch will undergo a changein strategic focus, also discussed below.

Reassignments and realignments toother County departmentsThe proposed redesign will reassign some units andfunctions currently assigned to the CEO to otherCounty departments, and make minor realignmentswithin the CEO, consistent with your Board’sdirection. For each reassignment, the CEO hasdetermined that the function or service provided isnot a core mission of the CEO. It is anticipated thatthe proposed action will result in a more appropriateassociation of the function within the receivingdepartment.

The new organization chart reflects the followingproposed changes:

• The Board Services unit (Photo andGraphics; 16 positions) and the Qualityand Productivity Commission (3 positions)will be reassigned to the Executive Office ofthe Board, which oversees many functionsrelated to daily Board operations.

• The Work Place Programs (9 positions), theEmployee Assistance Program (9 positions),Occupational Health (15 budgeted positions)and Leave Management (11 positions)units will be reassigned to the Departmentof Human Resources, where they share acommon purpose with other countywidehealth and weliness functions.

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ef Executive Officer Organization Report I January 2016PROPOSEDCEO STRUCTURE

• Real Estate’s design services unit (6 budgetedpositions) will be reassigned to ISD, whichalready provides many departmental designfunctions. The Real Estate invoice function(7 positions) will move to the Auditor-Controller.

The CEO will also realign several functions withinits operations to better coordinate the functions orservices provided. These realignments are reflectedon the proposed organization chart (Figure 2).

It should be noted that the CEO also evaluated thechild care and early education outreach functionswithin the Service Integration Branch (11 budgetedpositions). We deferred making changes at thistime, as the child care rating systems are currentlybeing re-evaluated and restructured, and the CEOis recruiting new leadership for the Office of ChildCare (0CC). In the coming months, the CEO willcontinue to evaluate how the Office of Child Carecan serve as a stronger resource to support Boardstrategic priorities in this area.

Reassignment of ClO FunctionsThe Chief Information Office currently consists of 28budgeted positions. It is proposed that the existingpositions be reassigned as follows:

• The CIO position and core strategicfunctions, which include informationtechnology policy development, informationtechnology board letter analysis, andinformation management/chief data officerfunctions such as Open Data, CWMDM, etc.,will be assigned to the CEO’S new StrategicIntegration Branch and be called the ChiefTechnology Officer.

• The current CIO operational functions(e.g., associated with managing masteragreements, enterprise agreements, theCounty GIS program, Web Portal, etc.)will be assigned to the Internal ServicesDepartment.

• The functions of the Chief InformationSecurity Officer will be evaluated forpotential placement in the appropriatedepartment.

Asset Management BranchSubstantial changes in roles, functions andorganizational focus are proposed in theestablishment of the Asset Management Branch.This extensive reorganization effort is the subjectof a detailed review and forthcoming report to theBoard. Provided in this report is an outline of theproposed changes and a new approach to managingthe County’s assets.

The proposed Countywide Asset ManagementBranch (AMB) will replace the current CentralServices Branch, and will consist of the following:

Capital Programs Division

Real Estate and Leasing Division

• Master Planning and Sustainability Division

The establishment and redesign of this branch isbased on the following fundamental concepts:

• Integrated master planning that reflectsthe Board’s priority of cross departmentalcollaboration and strategic priorities such asfamily and child welfare, homelessness andhealth care.

• Transparency consistent with Board policyon open data and easy access to information.

• Sustainability through adoption of bestpractices for maintenance and life-cyclemanagement of real property and appropriateinvestments in energy efficiency andenvironmental initiatives.

• Highest and best use and reuse of Countyassets (real property and others) in supportof County missions and to generate revenue,support County economic developmentpolicy and Board goals and directives.

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PROPOSEDCEO STRUCTURE

Program level management at the CEOwhich reflects a shift in the CEO’S role. TheCEO will not directly manage the deliveryof construction projects. Rather, DPW, ISDand other project implementers will haveincreased authority and flexibility.

The redesign will result in the following substantialchanges to the way the County manages its assets byestablishing the following:

• CEO unit dedicated to master planningand economic developmentThe mission of this unit will be to evaluateand recommend to the Board the useand reuse of County assets and developstrategies to buy, build or lease properties insupport of County operations and economicdevelopment policy. It will develop longrange planning strategies with the specificgoal of monetizing County assets to augmentthe general fund and support regionaleconomic development and affordablehousing goals.

• 5-Year Capital Construction ProgramA multi year planning and prioritizationprogram aligned with the County’s budgetplanning calendar.

• 5-Year Deferred Maintenance ProgramSimilar to the capital projects program andaligned with the County’s budget calendar,a multi-year planning process will enablethe County to more effectively manage thebacklog of facilities maintenance and repairrequirements.

ef Executive Officer Organization Report I January 2016

Project Review CommitteeA committee of department heads willreview capital construction and deferredmaintenance program recommendations,already vetted by impacted departmentsand CEO Asset Management staff, andrecommend a final program for presentationto the Board for approval.

• CEO unit dedicated to Integrated CapitalProject Planning ProcessThis will establish stronger connections andincreased cooperation and collaborationamong County work teams. This will requireincreased involvement and accountabilityfrom the DPW, the ISD, and clientdepartments working with CEO staff andBoard offices.

• CEO unit dedicated to sustainabilit~facilities life-cycle and maintenancemanagementThis unit will establish and implementCounty maintenance standards and monitorthe condition of County owned and leasedfacilities to insure that standards are met.Life cycle cost analysis will be used to guidemaintenance, repair and sustainabilityinvestment decisions.