Shelved, lopsided black binders

Managing Customer Data the Right Way: 10 Basic Principles

By Chally Kacelnik

Let’s consider how to manage customer data the right way: ethically, usefully, and achievably. With scandal after scandal about the misuse of customer data making headlines, it’s no longer possible to think of data as something neutral or passive that gets collected and sits out of sight and mind.

We’re seeing rapid changes to how we think about the collection and use of data. One major theme of the day is technological innovation. Traditional boundaries are being tested, with even governments feeling out how public and distributed innovations like blockchain could work for them. Another theme is dread. There’s a distinctly dystopian resurgence of anxiety about surveillance and poor or actively harmful data management, and unfortunately we’re seeing that suspicion justified. It’s vital for organisations – particularly government ones – to understand that data is fraught and to take a thoughtful approach to the ethics, reach, volume, and scale of the data they collect and use.

Within organisations, there tend to be two opposed approaches. There are those who trust in tech to solve data problems, the more innovation and more data collected the better, even if it’s not fully understood. Then there are those who trust their own workarounds more: the people who have their paper folder or their spreadsheet sitting on the side, whether because the system isn’t set up usefully, there isn’t an established way of working that encourages the right kind and quality of data isn’t being entered, or because of habit and comfort.

Increasingly, the uses and abuses of data are so top of mind and so poorly understood by most of us that organisations are tending to throw everything at the wall. It’s all too common for organisations to take the approach of investing big in new systems without understanding how to drive them effectively, ending up with messy data that causes lots of headaches, rework, haphazard ways of working across the organisation, and reinforcement of those two opposed approaches (including workarounds on top of workarounds!).

In short, if you throw everything at the wall, you’re going to find cracks. Technology isn’t a wilful force in and of itself (at least not yet!) and should be a facilitator rather than a driver. Positive, active human behaviour should drive how we interact with data and how we use technology to facilitate that interaction. Let’s get back to the very basics of what organisations need to do with data: serve their customers.

Here are seven principles for achieving that aim by managing customer data well at the ground level:

Trees line a straight road leading off into the distance

Future Proofing Councils: organisational change in Australian local government

By Susan Law

There is always that dichotomous cliché: change is the only constant in the world.  As local authorities, Councils are not only part of the world, but, in the key role in providing civic leadership to our communities, Councils find themselves having to flex and adapt themselves to meet the expectations of their communities and to help them make sense of the changing world.

The drivers to change are many. Some are extrinsic to the Council; others are initiated by the organisation itself.

External Drivers

Demographics

Graph showing a declining predicted budget, eclipsed by increasing adult social care and children services expenditureThe Graph of Doom – a graph prepared by the Council the London Borough of Barnet. The chilling lesson from this graph is that by 2021/22, the Council will need to spend all of its funding and revenue on just providing services for its vulnerable adults and children. Without changes to the manner in which services would be delivered and policy settings, there would be no funding for other services such as waste, community development etc.

While Councils in Australia are not charged with the provision of social services for adults and children, the demographic trends for Australia are similar if not sharper.  This impacts upon state governments and reinforces the drive in NSW, South Australia, and Tasmania for local government sector reform. The ability of state governments to significantly contribute to the funding of local government for services is becoming increasingly constrained. In fact, local government is experiencing the reverse: services being devolved from state to local government without the corresponding level of funding to deliver them.

Similarly, Councils’ rate bases and their ability to raise revenue from ratepayers is coming under increasing pressure. In NSW, rate capping by the State Government is in place and is being debated in South Australia and Tasmania.

Customer and community expectations

At the other end of the demographic spectrum are the expectations of our communities and customers. Most services and the way they are delivered were designed for the post WWII and baby boomer generation – now we have Generation X, Y, and Z, whose expectations are quite different from those of their parents and grandparents. Traditional sectors such as the taxi and hotel industries are having to cope with surviving with disruptive technologies and organisations such as Uber and Airbnb. Nevertheless, these disrupters are setting the expectations for access, service, and response. The disruption in many service sectors is causing major re-thinking of service delivery models, even traditionally conservative ones such as banks. Local government cannot step aside from the change. 

State Government and internal programs of reform

In addition to the UK, in NSW and South Australia, pressure has been placed upon local authorities to not just consider change on an individual basis, but also to participate in a broader program of sector reform.

A laptop, screen, keyboard, mouse, paper, and office accessories sit on a desk in a close up image.

Local Government ICT Systems and Amalgamations: Doing it Once and Doing it Right

By Chally Kacelnik and Ludwig Kraayenbrink

ICT: everyone in a contemporary organisation relies on it, everyone wants it to solve their problems, and not a whole lot of people understand it in technical detail. ICT business units are traditionally overburdened and often struggle to focus on strategic issues in the midst of reactive work. How on earth are local government ICT staff meant to be responsible for the huge burden of integrating distinct business systems for an amalgamation or shared services arrangement? Here are our principles for doing it once and doing it right.

A diligent, structured, and strategic approach to ICT will be crucial to the success of newly amalgamated Councils as it is integral to everything from customer relationship management to information management.

The local government ICT environment is growing ever more complicated, with increasing technical complexity, commodification of ICT infrastructure, and communications and information centricity. The ICT needs for a successful amalgamation are also substantial, including everything from the big picture (eg integrating different infrastructure) to the fine detail (eg cleansing, formatting, and transferring data). The amalgamation, then, is both a huge challenge and an opportunity to start off right. Investment in previous systems should not be considered a waste: rather, this is an opportunity to harvest the ICT best practice for the future.

Here are six main ICT areas to consider while amalgamating:

A collection of old fashioned globes in neutral colours

Whizzing to Oz: Global Collaboration on Local Government Reform

LKS Quaero UK Director Aidan Rave recently visited Australia and met with our Australian team. Here are his reflections on the differences and similarities between the UK and Australian local government contexts – and on the value of a global team when it comes to public service reform.

A seven day round trip from the UK to Australia can have a strange effect on the mind. The combination of jet lag, shifting from summer to winter and around 48 hours stuck in a metal tube has an effect on the most seasoned traveller. Making the trip in late June of this year, in the midst of the political upheaval and chaotic post-Brexit vote atmosphere, added a further dimension to the sense of surrealism.

Of course, attending the annual LKS Quaero hui (a Maori term meaning gathering or assembly) was exciting – an opportunity to meet in person colleagues who had previously existed on the end of a phone or as a slightly fuzzy image on Skype. Okay, the opportunity to sample some of McLaren Vale’s finest was probably a factor, too, but a professional should always be prepared to suffer for the cause!

In many ways, the conversation and debate at the hui confirmed a long-held belief that while the structure and culture of local government in the UK and Australia might differ, there are many challenges and opportunities in common and there is much each can learn from the other’s approach. The political spice on the Australian side was enhanced by the fact that day one of the hui coincided with the general election and all the intrigue, upsets, and twists that inevitably ensue (and there were several). Similarly, giving an update from the UK was inevitably going to be dominated by the fall-out from Brexit, the subsequent resignation of the Prime Minister, and impending implosion of the opposition Labour Party. In truth, it all felt just a little bit embarrassing!

While the “big politics” were certainly never far from the group’s collective thoughts, the focus of discussions remained on issues core to the business on both sides of the equator; namely public service reform, restructuring, amalgamation, culture, and leadership.

The impact of the GFC had a more immediate effect on the UK economy and subsequent public spending plans than was the case in Australia. Consequently, shifts towards structural and political reform of councils in the UK, driven in large part by a seismic reduction of around 35% in real terms spending power over the last five years, has meant that the rate of change in the UK has been determined.

Interestingly, as NSW councils embark on their journey of reform, there is some useful UK insight (not to mention a number of mistakes made and hard lessons learned), within the global LKS Quaero knowledge pool that should prove valuable.  In a similar vein, there is a considerable amount of Australian work on systems thinking and leadership, which will be critically important to UK councils as they attempt the next stage of implementation.

Image of Susan Law

Norfolk Island Transition Team win at the 2016 Department of Infrastructure and Regional Development Secretary’s Awards

The team responsible for the Norfolk Island Administration’s transition to Norfolk Island Regional Council have won a 2016 Secretary’s Award from the Australian Government’s Department of Infrastructure and Regional Development. LKS Quaero’s Managing Director, Susan Law, was Transition Manager for the reform program.

The team was nominated:

For outstanding leadership in the reform of the Norfolk Island Administration to a Norfolk Island Regional Council that supports the implementation of the Australian Government’s Norfolk Island Reform Agenda.

The Secretary’s Awards honour individual officers and teams who have contributed to the department through leadership, excellence, personal commitment and professionalism.

Congratulations, Susan!

Image of Chris Stratten

Council Transition Support Expert Interview: Chris Stratten, human resources/organisational development expert

LKS Quaero is offering a complete package of Council Transition Support for amalgamating NSW Councils. This is the last in a series of interviews in which our transition expert team members pass on some key nuggets of advice.

Chris Stratten is an experienced HR and Organisational Development Manager of many years’ standing, with specialist knowledge of industrial relations matters. He is an experienced manager of change in both public and private sector organisations in areas including HR/OD diagnosis and strategy development, industrial/workplace relations, leadership development and coaching, and service delivery analysis. Here is his advice for HR/OD managers of amalgamating Councils.

What are the key human resources/organisational development challenges for amalgamating Councils in NSW?

One of the things that many organisations stumble upon is the engagement process. Most of the time, managers get around the room and decide on a plan of action, but fail to establish a robust engagement process. This should involve both engagement within management and engagement between management and staff. I call it engagement, not communication, because it has to go both ways. The organisation has to get feedback from unions, staff, management, and the community. There has to be good planning for how the organisation engages with these stakeholders and how to get their concerns noted and readily addressed. From an HR viewpoint, HR traditionally has to pick up a lot of mess because this is not done well up front. All messages need to reach employees and other stakeholders in a readily understandable way, not just reach the leaders.

The amalgamation process needs to be managed by a team, and the HR manager needs to be part of that team throughout that process, on both the engagement and leadership sides. They need to have carriage of establishing and monitoring the engagement processes. HR managers should also be there in order to ensure that industrial instruments are adhered to – in an advisory capacity to the leadership team, not as the leader. This is vital for ensuring that decisions are made with understanding and ownership of the line management.

Peter White

Council Transition Support Expert Interview: Peter White, leadership and culture specialist

LKS Quaero is offering a complete package of Council Transition Support for amalgamating NSW Councils. This is part of a series of interviews in which our transition expert team members pass on some key nuggets of advice.

Peter White is an experienced organisational leader with demonstrated leadership ability and a proven track record in developing employees and creating a constructive culture where working productively and continuous improvement form a way of life. Peter has an electrical engineering background, specialising in large and medium heavy industry environments. He is an Associate for LKS Quaero specialising in training, leadership, and culture. Here is his advice for leaders of amalgamating Councils in NSW.

What are the key leadership and culture challenges in the amalgamations in NSW?

The culture itself will be a big challenge. Many Councils are likely to be experiencing a passive defensive culture, meaning many will be dependent on the leadership to tell them what to do or they will be keeping their heads down, not wanting to be noticed and hoping it will all go away so things can get back to how they used to be.

A silo mentality is also common, where people are only interested in their own “patch”. A common issue here is the belief that knowledge is power, leading people to think ‘I will keep the information to myself so I will be protected’. In order to implement sustainable change, these silos will need to be identified and broken down. This can be achieved through a positive experience, provided the team members have clarity around their futures and are kept well informed of what is happening around them.

New Councils will also have to assess the skill, will, and drill of leaders at all levels. If an organisation needs to transition from the current state to a new desired future state, then it is important to determine if the organisation has the right person in the right role doing the right work. Another way to look at this is to determine if the person has the skill to do the work – have they been adequately trained? Do they have the will – do they want to do the work of the role, are they engaged in the organisation, and are they prepared to deal with difficult issues, including performance management? And finally, do they have the drill (or discipline)? They might have the skill and the will, but do they actually do it religiously every time? Are they walking the walk and talking the talk? Do they clearly demonstrate their commitment through their actions and comments?

Beyond the capability of leaders to deliver change, a major challenge is the uncertainty of what the future holds for individuals throughout the organisation. A lack of role clarity will compound this. For those in temporary roles in particular, there will be some reluctance to make key decisions for the future.

Image of Alan Rushbrook

Council Transition Support Expert Interview: Alan Rushbrook, local government finance expert

LKS Quaero is offering a complete package of Council Transition Support for amalgamating NSW Councils. This is part of a series of interviews in which our transition expert team members pass on some key nuggets of advice.

Alan Rushbrook is a local government financial specialist whose experience goes well beyond financial management as he has sandwiched his financial career with managing community service activities. He brings a strong reputation for leading teams and providing robust policy advice. His varied experience in local government, both in senior management roles and as a consultant, in large city Councils and small rural Councils, has provided him with many skills, particularly in the financial management, corporate support, and community services functional areas. Alan is a Fellow of the Australian Society of CPAs, qualified in Myers Briggs administration and Juran quality management. Here is his advice for CFOs and other leaders of amalgamating Councils.

What opportunities are there for finance teams during an amalgamation?

Amalgamations are the time when finance staff need to shine. It is when our skill sets can provide enormous value to the new organisation.

Why do I say this? It is a time of change. Often inertia and conventional wisdom dominate Council decision making, making change hard: not just difficult to do, but hard to get started. So when there is a changing environment, your first impediment to change is overcome!

It will be a time of immense work, but be sure to take time to think strategically for your Council, your team, and yourself. It can be too easy to get caught up in the focus of moving systems, people, registers, etc, etc. and not raising your vision beyond your desktop. Take time to think beyond the next meeting.

Be clear about what you want to see change, whether it be the strategic financial direction of Council, the structure of your department, or a particular process. The favourite for me in the past has been to challenge some of those areas of waste or inefficiency that have just been accepted or have been protected. Even if many of the players haven’t changed, sometimes they may not be so passionate or committed about their programs or activities as they once were. When things don’t have the usual balance, it might be a good time to get some things changed.

Also, there will be some untied dollars around. Have a think about what you or your team could use that you haven’t been able to get funding for in the past. Set systems up for the future as best you can.

John Cawley

Council Transition Support Expert Interview: John Cawley, structural design and change management expert

LKS Quaero is offering a complete package of Council Transition Support for amalgamating NSW Councils. This is part of a series of interviews in which our transition expert team members pass on some key nuggets of advice.

John Cawley is a change management and structural design expert, with expertise in organisational and business function system design. A qualified and highly experienced mechanical engineer and manager, John has led a distinguished career as senior executive in vocational education and in private industry. He is a proven project manager across complex projects and an experienced Lean practitioner and facilitator. John is a former General Manager of a major supply organisation to the automotive and appliance industry sectors, with extensive experience in highly technical robotic automation manufacturing facilities. He has international presentation experience in new and emerging technology, green technologies, and logistics. Here is his structural design and change management advice for leaders of amalgamating NSW Councils.

What are the key systems design and change management challenges in an amalgamation?

The key change management challenge is to establish a cultural fit. Some years ago, when a manufacturing conglomerate I worked for acquired a group of companies, it took ten years to wind out the old culture and wind in the acceptance of the new culture. In order to successfully establish a new Council, you have to properly establish a new culture much faster than that. What that means is drilling down into knowing people: what are their values? Establishing the mission and values is really important: the mission establishes the boundaries around what you can and can’t do and the values determine who you are. Strategic planning is really the starting point for determining the strategic and cultural fit.

The key challenge of designing a system is to separate out the system and the process. Once you have your strategic plan, you need to link it in with the operational plan. Underpinning that are your systems and processes. Identify what systems you currently have and determine if you have the right ones to achieve your operational plan, the right processes to enable it, and the right people to drive it through. Those are the three crucial things: systems, processes, and people.

Council Transition Support Expert Interview: Geoff Haberfeld, finance, governance, and risk specialist

LKS Quaero is offering a complete package of Council Transition Support for amalgamating NSW Councils. This is part of a series of interviews in which our transition expert team members pass on some key nuggets of advice.

Geoff Haberfeld consults in finance, governance, and risk. A former senior executive in Commonwealth and State Government business enterprises and policy agencies, he has a good understanding of the “workings of government,” including budget processes, funding arrangements, and regulatory regimes.

Well experienced in organisational reform, Geoff has held senior roles in a variety of organisations during times of significant change. His experience ranges across local, state, and federal government, including water, health, and housing. Geoff is also Deputy Chair of the Cairns Regional Council Audit Committee and Chair of the Douglas Shire Council Audit Committee. Here is his advice for leaders of amalgamating Councils in NSW.

What are the characteristics of a successful amalgamation process?

A successful amalgamation will be characterised by a united and sustainable organisation sharing common goals and aspirations, achieved by a well thought out transition process and strong stakeholder engagement.

Early attention should be given to:

  • Appointing a transition team representing all stakeholders, meeting regularly and supported by a good practice risk based project management framework
  • Commencing a communication program involving all staff regularly, utilising face to face, email, and social media
  • Developing a new organisation structure and communicating it to all staff
  • Developing an ICT Strategy encompassing the IT infrastructure, business and technical applications, and communications applications, including customer interfaces
  • Developing position papers for addressing key factors having an impact upon long term financial sustainability, including a common rating system and common service levels
  • Commencing a financial due diligence review