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What Next?Transforming Your Agency for the Future

Michigan Director’s Summit

Michael T. Shellito

Shellito Training and Consulting

Strategic Partner, Pros Consulting

1700 Eureka Rd., Suite 110

Roseville, CA 95661

P: 916-773-7328

C: 916-768-9172

F: 916-773-7326

Email: mshellito@gmail.com

Turbulent Times

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Unpredictable Environment

Problems with Scarcity

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New Normal

Have a Game Plan

and Play Offense

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Read the Handwriting on the Wall

What’s About to Happen?

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Cost of Public Service is Too High

and Unsustainable• Revenues declining

– Taxes

– Development Fees

– User Fees

• Limited resources

– Budget

– People

• Retirement Costs

Unsustainable

• Public is Angry with

Government

Can’t Be in a Reactive Mode

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Riding the Waves of Change

• What change is

happening right now

that is challenging

you and your agency?

• What’s about to

happen that will

dramatically alter

your future?

Transform or Die

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Redesigning for the Future

Most people don’t change

because they see the light, but

because they feel the heat!

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Staff Reductions*

DepartmentFTEs Decrease

FY2007 FY2011 Amount Percent

General government

181.2 141.6 39.7 21.9%

Police 209.3 181.8 27.5 13.1%

Fire 128.0 112.0 16.0 12.5%

Parks, Rec & Libraries

127.8 88.0 39.8 31.1%

Public Works 133.8 96.7 37.0 27.7%

CDD/Planning 39.0 20.3 18.7 48.0%

Total 819.0 640.3 178.6 21.8%

Fixing the Problem Redesign a Smaller Organization

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Redesign Goal

Redesign a smaller, leaner and sustainable organization

focused on a more streamlined mission and the delivery of core services

that matches operational expenses with ongoing revenues and resources.

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Organizational Assessment

Assessment Self Rating Exercise

• Our organization is very

stable relative to our

leadership, personnel,

revenues, operational

budget, community

development and local

politics

• We neither need nor

anticipate any major

changes in the year to come

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Assessment Self Rating Exercise

• We measure success by achieving measurable outcomes versus outputs and effort

• We are flexible and cooperative in sharing people and equipment across departments and within our department

Assessment Self Rating Exercise

• We avoid costly duplication of work

between Departments and within your

Department

• We have a strong understanding and

control over the cost of services

• Staff uses data and information well to

make good decisions on cost control,

revenue management and pricing

• We use flexible staffing strategies to

control costs for periodic and

seasonal fluctuations in work load

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City Assessment Findings

• Our team thinks and acts with a

City first, my department second

and me third mindset

• We have strong clarity as to

what is a core service, versus

important or value added.

• We have consistent written

performance standards

• Our Department’s infrastructure is

well funded for the future

Discuss Your Top 3 Challenges

and Opportunities to Work On

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Fixing the Problem versus Stopping the

Bleeding

Redesign Principles

• Protect core services

• Plan and deliver

“important” and “value

added” services in ways

that are less dependent

on the City’s General

Fund

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Redesign Principles

• Establish and/or refine service levels and standards that are good, appropriate & affordable

• Achieve a consistent level of high service between all City departments

Redesign Principles

• Achieve highest and best use of

permanent employees

• Staff for the everyday work load

• Develop flexible staffing strategies

for periodic changes in workload

• Consolidate functions to minimize

duplication to increase efficiency

and cost effectiveness

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Outcomes vs. Functions

Navigation Strategies

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Development & Acquisition

Standards

Maintenance Standards

Operational Standards

Value to

Community

Experience

Vision

Charting the Course

1. Vision & Value through Clear Outcomes

2. Create targets to define the experience

3. Outputs – Operational , Maintenance, and Development Standards

4. Acquire Inputs

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#1 Create Compelling OutcomesWe make lives and the community better now and in the

future by providing valued places and programs

#2 Paint Targets in Vivid Color“Parks are Safe, Clean & Green & Enjoyable”

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#3 Deliver Outputs per Standards

Mow, irrigate, aerate & fertilize to

achieve green, lush turf”

#4 Calculate & Acquire Inputs

Necessary to Produce Outputs

• People

• Money

• Time

• Equipment

• Supplies

• Facilities

• Partners

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New Models

Outscourcing

Steering vs. Rowing

• Park, Facility and

Landscape Maintenance

• Public – Public Contracts

• Public – Private Facility

Operations

• Public – Non Profit/CBO’s

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Mergers, Consolidation & Staffing

• P&R & Libraries

• Public Works & P&R

• Community Services & Police

• Marketing & Public Information

• Broader Job Classifications

• Employment Options

– 9 month schedules

– Increased 1500 hour employees

– PPT with limited benefits

Strategic Partnerships

• Schools

• Police

• Non Profits

• Chamber/Business

• Neighborhoods

• Regionalism

• Other?

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Smaller Operations

• Facility Closures

• Reductions in Hours of

Operation

• Reduced Recreation

Programming

• Strategic Level of Service

• Permanent Staffing

Group Discussion

• What new operational models are you

investigating and why?

• Where might you contract or outsource?

• What internal changes are you considering?

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Get Comfortable Being Uncomfortable

Stay Focused, Stay Present

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“Take Risks with Anything

Above the Waterline”

Try it, Fix it

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Expect Casualties

True Leadership Is Sometimes Painful

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FOR GOODNESS SAKE…

Questions & Comments