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Presentation of Commissioner Valerie A. Lemmie Public Utilities Commission of Ohio at the Fourth Provincial Senior Management Service Conference: All Hands on Deck to Speed Up Service Delivery

Bloemfontein, Free State, South Africa

August 28-29, 2008

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Managing Organizational Change

“The time is out of joint, O cursed spite that ever I was born to

set it right!” Hamlet (I.v.) William Shakespeare

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Building a Responsive and Effective Local Government Organization: The American Experience

“The American experiment is still in the laboratory. And there could be no nobler task for our generation than to move that great effort along.” John W. Gardner

Presentation will cover:Ideas that inspire and guide American democracy and our democratic institutions.Politics of governance.Local government organizational form.Dynamics of change: How Global Economy, Devolution and Wicked Problems are changing role and responsibilities of local government managers.Role of public managers in leading andmanaging high performance organizations.

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The Fundamentals of American Democracy“In sum, democracy is invariably popular self government and variably

something else – something culturally specific that has adhered to it. In the United States, that something else has been individual self-determination.” Richard Wise

Lockean Empiricism and Romanticism inspired founding fathers to adopt popular self-government or democracy as governance structure.

American Democracy founded on principles of sovereignty of the people, legitimacy of government from consent of governed, power of government limited to public good.

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The Fundamentals of American Democracy While these principles remain the ideals

that inspire and guide American Democracy, it is our governance structures and our civic character than moves democracy from an abstract philosophy to real life – something that is palpable and tangible – our enactment of democracy.

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Politics of Governance“We must look beyond mere mechanical refinements of the legislative process or of the

executive operation. What we need to understand more clearly is the relationship of people in a representative democracy to its government. The “citizenship gap” – that

dead-air space, so to speak, that vacuum – between the people and their government…is a greater threat to our government and our social structure than any

external threat by far.” Hubert H. Humphrey

Constitutional Framework: The constitution Laws Rules Procedures

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Politics of Governance

Electoral Framework: Citizen beliefs, attitudes and values. The level of public participation in the governance

process. The knowledge and commitment of citizens to

public work.

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Politics of Governance

If we think of political structure and civic character as inputs into our democracy, then its outputs – the expectations citizens have about what they expect from government, include: Promulgation of individual liberties Freedom Justice and Equity Efficiency, effectiveness and economy Fix problems individuals can’t

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Politics of Governance

There are four distinct periods in our history where our democratic practices reflected changes in political structures and civic character. Michael Schudson describes them as periods of: Political assent – rule by gentlemen elites elected by

consensus in open elections. Political parties – rule by non-elites who educated and

mobilized voters and developed political leaders. Politics of Information – Progressive Era reform ushered in

professional public management and removed emotions associated with political party affiliations.

Rights Era - Political participation takes place beyond the voting booth and reflects legal claims upon government.

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Local Government Organizational Form: Politics Versus Scientific Management“The role of the public executive is to be the get-it-all-together person…it’s best

practitioners are those who are able to mold specialists into groups, organizations, and networks to get something done in the public interest.”

Harlan Cleveland

Latter part of the 19th century saw exponential growth in population of cities and towns as factories increased production to sell goods nationally rather than just locally. Farmers and immigrants flooded into cities to fill these new jobs.

The dramatic changes in the urban landscape brought fourth two competing visions of governance. One was the “boss” system, which saw personal power, connections and

patronage as the way to “get things done.” The other was the progressive reform movement which saw experts, efficiency

and “public service” as the way to build and run a city.

“The cities were where most government was, where most action was, where most problems were [and] where the services of public administrators could most dramatically be more effective, more

honest, and less costly.” Frederick C. Mosher

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Local Government Organizational Form: Politics Versus Scientific Management“What was at stake was who would control the future of

the metropolis – political bosses who engaged the masses but served their own ends, or the middle-and upper-class elite reformers who, through the use of experts, would bring efficiency and economy to the

administration of government.”

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*Assent of Political Parties Progressive Era ReformsIncreased number of executive offices subject to popular election.

Reduced the number of executive offices subject to popular election through the Australian or secret ballot, and promoted the chief executive officer position in municipal government, including the city manager plan of government where chief executive position is removed from popular election.

Appointments to government positions based on party affiliation. Workers were expected to “kick-back” a portion of their salary to the party. Loyalty would be to party, not organization.

Promoted civil service reform where government appointments were based upon qualifications and work experience. Salary kickbacks were illegal. Loyalty would be to organization, not party.

Extended the franchise. Contracted the franchise through registration, literacy and citizenship requirements.

Established party conventions to nominate candidates for elective office.

Ushered in primary elections.

Created a hierarchical structure of party committees to manage the electorate.

Promoted nonpartisan municipal government and the separation of local, state and national elections. Instituted ballot initiatives, referenda and recall votes bring a novel form of direct democracy.

Established a party press and accorded influence to the political editor.

*Also known as the Jacksonian Era

Supported media independent from political parties and muckraking journalists.Attacked “passions” raised by political parties in favor of science and efficiency or popular (rather than representative) democracy.

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Local Government FormManagement by Strong Chief Executive Prior to municipal reform movement operations

of city government performed through boards and commissions, each elected on long ballots, making it difficult for citizens to know much about individual candidates and more susceptible to party influence.

The theory was democracy strengthened by citizens voting for as many candidates as possible.

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Local Government FormManagement by Strong Chief Executive: Council-Management

Government

Reformers saw Council-Manager form as the best way to ensure local government was resistant to the evils of political party machines as it shifted power away from party bosses to professionally trained experts: Small number of nonpartisan elected officials. Appointment of a professional administrator to manage day-to-day

operations under the policy guidance of the council. Authority of the manager to appoint key executive officials. Council acts as legislative and executive authorities, city manager

responsible for government operations. Incorporation of “Scientific Management” theory into the practice of

local government administration.

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Local Government FormManagement by Strong Chief Executive Most American cities have either a Strong-Mayor, Council-

Manager form of government, or a hybrid of the two. Common feature, strong chief executive, whether elected or

appointed, responsible for the executive functions of municipal management.

Today, Strong mayors appoint chief administrative officers to handle day-to-day management responsibilities, and city managers, share more administrative authority with the mayor. Both promote professional public administration.

Mayors are “masters of the art of politics,” and rely on professional staff to manage governmental operations.

City managers non-partisan “masters of management” as accountable for government operations.

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Local Government Form

Management by Strong Chief Executive City manager requires council approval of

actions. Mayor can undertake executive actions without council approval.

Mayor has a political machine behind her, city manager stands alone.

Success of both depends on an effective and responsive governmental organization.

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The Dynamics of Change: Why What We Use To Do Is No Longer Good Enough If you drop a frog into a pot of boiling water it will jump

out. But if you put that frog into a pot of water and gradually raise the temperature, it will not notice the temperature change until its too late.

The same is true of local government managers who labor in bureaucratic organizations lulled into a false sense of security. Organizations will go the way of the dinosaur if they cannot respond effectively to changing demands and conditions.

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The Dynamics of Change: Why What We Use To Do Is No Longer Good Enough Rigid, slow moving bureaucratic approach

won’t work in the 21st century: Local government structures rooted in command-

control management model advocated by Frederick Taylor.

Taylor believed management was the head, should do the thinking work; workers were the hands, should do technical work.

“Thinking” was management responsibility and “doing” was left to the workers.

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The Dynamics of Change: Why What We Use To Do Is No Longer Good Enough Model worked in the industrial age, when

most workers were not highly educated and the nature of business was production.

As America moves to service and information technology based economy (every year more manufacturing is shipped overseas), model no longer works. Today, everyone in the organization must think and do, lead and manage.

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The Dynamics of Change: Why What We Use To Do Is No Longer Good Enough The fabric of society is changing. More

economic, racial and ethnic diversity. The U.S. baby boom generation shifting

balance of wage earners and retirees, creating conflicting expectations for public sector.

Fiscal constraints and institutional limitations at all levels of government require new thinking about role of government and civil society.

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The Dynamics of Change: Why What We Use To Do Is No Longer Good Enough Growing crisis of expectations – Americans use

to high quality on demand services from local governments, who can’t keep pace with higher demands and fewer dollars.

Technological advances are constantly changing how we work, play and interact with others.

Poverty – Institutionalized, turning the American dream on its head.

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The Dynamics of Change: Why What We Use To Do Is No Longer Good Enough What is working

American public managers and leaders are developing innovative and creative solutions to the changes brought by global economic markets, urban sprawl and increased concentrations of poverty in core cities.

Leveraging our resources – visionary leadership, sound fiscal and organizational management practices, and institutionalized public participation to create high performance organizations.

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The Dynamics of Change: Why What We Use To Do Is No Longer Good Enough High performance organizations give public

managers the means to improve organizational efficiency, economy and effectiveness, allow us to address issues of social equity and justice, and meet the challenges of “wicked community problems” within framework of existing resources and organizational structures.

To achieve this, we must manage our organizations in a new way.

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The Dynamics of Change: Why What We Use To Do Is No Longer Good Enough Wicked problems are defined by Rittel and

Webber as those complex problems that don’t lend themselves to quick fixes or easy solutions and that require multiple levels of government cooperation across political jurisdictions to resolve. They include problems like street corner drug

sales, poor schools and neighborhood blight.

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What Does A High Performance Organization Look Like? What are the words you would use to describe today’s most

successful organizations? I’m sure your lists includes the following:

Public Engagement Ethical Cutting-Edge Best Management

Practices Role-Model Inclusive of Different

Ideas Diversity encouraged and

celebrated

Efficient Effective Cost Competitive Customer Value

Service Responsiveness Satisfaction

Stellar Reputation Equitable

“The pursuit of human dignity is the essential active ideal that we serve. It is therefore the measure for the worth of all acts pursued in the service of democracy.” Robert Matson

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What Does A High Performance Organization Look Like? How would you stack your organization

against your ideal? What do you need to do to have your

organization recognized as best in class? How do you go about getting started? Is it worth a try? Why or Why not?

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What Does A High Performance Organization Look Like?

Once upon a time there was a work unit with four members named everybody, somebody, anybody and nobody.

There was an important job to be done, and everybody was sure that somebody would do it.

Anybody could have done it, but nobody did.

Somebody got angry about that because it was everybody’s job.

Everybody thought anybody could do it, but nobody realized that everybody wouldn’t do it.

It ended up that everybody blamed somebody when nobody did what anybody could have done.

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The Role of Public Managers in Leading and Managing High Performance Local Government Organizations“It is insanity to expect to receive the data of wisdom by looking on. We

arrive at moral knowledge only by tentative observant practice. We learn how to apply the new insights by having attempted to apply

the old and having found it to fail.” Jane Adams

You must lead the change to: Increased organizational capacity. Higher organizational performance. The engagement of citizens in fixing wicked

problems.

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The Role of Public Managers in Leading and Managing High Performance Local Government Organizations You must manage the organization at two

levels: Conduct core business of service delivery without

missing a beat. Change systems, structures, strategies and work

culture to create a high performance organization that maximizes organizational efficiency, effectiveness, economy, equity and engagement.

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The Role of Public Managers in Leading and Managing High Performance Local Government Organizations

This requires a new set of policies, procedures and practices:

Functional Side of Business

Process re-engineeringOutcome based performance

measurementsAdoption of best management

practicesContinuous learning and

improvement

“I believe the most important contribution we can make to the pubic bureaucracies we lead and manage is to create strong, competent organizations that promote democracy, add customer value, are flexible enough to meet the diverse needs of citizens, engages citizens in addressing “wicked problems” and effectively uses the skills, talents and abilities of all employees.”

Organizational Culture

VisionValues Principles of Management

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The Work of Leadership: Leading the Change Leadership is needed when you:

Want people to “go somewhere” they are not currently headed. When you want them to change what they are doing or how they

are doing it. When you want different behavior, processes or results.

Actions

Results

.

Learning

Ideas

Organizational Impact

The Power Cycle

How can I be more accountable for:The De-Powering Cycle

“Flight,” Avoid/Disengage, “Poor Me/Victim,” Complain

Breakdowns, Unfulfilled Expectations, Broken Agreements

Disappointment, upset, hurt, anger, fear

Incomplete communication, little/no dialogue & problem solving or Renegotiation

Assign Blame,

Attack

“Fight”

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Improve Performance:

Examine, streamline work processes Begin strategic thinking and planning (what we will

do). Obtain and analyze public input on our “preferred

future.” Eliminate any unneeded activity

Evaluate service/product profiles for effectiveness (doing the right thing), efficiency (produced and delivered in the right way), economy (cost competitive), and equity (serving the right people).

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Improve Performance:

Eliminate organizational silos and share business information throughout the organization—up, down and sideways Produce strategic plan—goals, objectives, activities and

accountabilities—at the enterprise (city) and unit levels. Identify and communicate a limited number of critical

success measures at the enterprise and unit levels. Calculate the cost of each service and program

Align budget, financial systems and technological enhancements with strategic plans and community profiles.

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Improve Performance:

Incorporate from internal and external sources best management practices. Evaluate best practices and determine measures and

benchmarks. Use appropriate technology to improve operations. Articulate and measure performance at all levels of

the organization. Determine and communicate “nested” strategic visions at

enterprise and unit levels. Determine and communicate working mission statement at

enterprise and unit levels.

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Improve Performance:

Acknowledge and reward positive performance outcomes. Develop performance expectations for the

enterprise, unit and individuals. Assess performance at all levels against the work

program and performance expectations. Identify and develop micro businesses

internal to the organization. Instill and support continuous improvement

ethos.

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Create New Organizational Culture Seek input from all levels.

Establish leadership teams at enterprise and unit level. Create, maintain and repair adult to adult relationships. Articulate values and expectations throughout organization.

Define and determine new work culture (how we will act). Discuss beliefs about individual and collective leadership

abilities, knowledge, creativity, motivations. Create and communicate a shared vision throughout the organization.

Determine and communicate consistent leadership philosophies.

Define and communicate acceptable behaviors consistent with core values and leadership philosophy.

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Create New Organizational Culture Increase communications up and down and across

the organization. Develop a consultative decision-making process

organization wide. Reinforce a customer-service friendly attitude and a

citizen-centered approach to governance. Identify where culture is lagging and provide feedback,

resources, development and/or corrective action to units and individuals.

Identify and reward internal best practices in work culture.

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Create New Organizational Culture Promote success and acknowledge high performance.

Build values-based skills through city university, individual development plans, mentoring and challenging assignments.

Orient new employees to desired work culture and expected behavior.

Reward positive behavior; confront to correct negative behavior.

Promote the alignment of hiring, development, appraisal, reward, promotional and discipline systems with philosophy, values and behavioral expectations.

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Create New Organizational Culture Seek and listen to input from customers, co-

workers, suppliers and the public. Engage in public deliberations on key

community issues and problems. Institutionalize mechanisms for

engagement. Ex. Neighborhood councils.

Encourage and reward “innovative ideas” that save money, time or add value.

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Create New Organizational Culture Make decisions at the most appropriate level

of the organization. All staff should be doing work of leadership and

management. Executive level staff should have highest percentage of leadership responsibilities; mid-level highest percentage of management responsibilities.

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Sidebar: Likert’s Four Management StylesSystem 1

(Exploitive Autocratic)System 2

(Benevolent Autocratic)System 3

(Consultative)System 4

(Participative)

•Power and control are concentrated at the top of the organization•Management is seen as having no confidence or trust in subordinates•Decision making and goal setting are at the top with orders issued down the chain of command•Subordinates are forced to work with fear, threats, punishments, and occasional rewards at the physiological/safety level•What little interaction that does take place between subordinates and superiors is characterized by fear and mistrust•There is often an informal organization of workers which resists the top’s directions

•Power and control are still concentrated primarily at the top of the organization•Management is seen as having only condescending confidence and trust in subordinates, such as a master has toward a servant•The bulk of decision making and goal setting are at the top, but decisions within a prescribed framework are made lower•Communication is still primarily top down in the form of directives•Rewards and actual or potential punishment are used to motivate•Limited superior-subordinate interaction takes place with condescension by superiors and fear and caution by subordinates•An informal organization of workers may exist but may not resist the top’s directions

•A fair amount of power and control are delegated to lower levels•Management is seen as having substantial but not complete confidence and trust in subordinates•Broad policy and general decisions are kept at the top, but subordinates are permitted to make more specific decisions at lower levels•Communication flows both up and down the hierarchy•Rewards, occasional punishment, and some involvement in decision making are used to motivate•Moderate amount of communication up and down with a fair amount of confidence and trust between levels•An informal organization may exist, but all levels feel a degree of responsibility for organization goals

•There is full sharing of power and control; all levels feel responsible for the organization’s success•Management is seen as having complete confidence and trust in subordinates•Decision making is widely dispersed throughout the organization, although it is also well integrated•Workers are motivated by participation and involvement in developing economic rewards, setting goals, improving methods, and appraising progress toward goals•Extensive, friendly interaction between and among all levels•The informal and formal organizations are often the same; all social forces support efforts to achieve the organization’s goals

Adapted from: Paul Hersey and Kenneth H. Blanchard, Management of Organizational Behavior: Utilizing Human Resources. 3rd ed. (Englewood Cliffs,

NJ: Prentice-Hall, 1977) pp. 72-73.

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Vision:What WeWill Be

Values:What WeBelieve In

Mission:What WeWill Do

Goals:What We Will

Focus On

Critical Success Factors:What Must Be Achieved

Action Items:Implementation, Results

Evaluation, Customer Feedback

Continuous Improvements

Charting the Course: HPO

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Building Blocks of Organizational ChangeLow

HangingFruit

AdvanceTeams

Attack Critical Issues

Successfully meet the challenges facing Dayton as we move into the 21st Century.

Re-engineerSystems & Structures

Redesign those tools that we will need to provide services and manage local government in the future.

Establish HPOStrategic Foundations

Define and communicate the principles that will steer the organization, and achieve a commitment to those principles by stakeholders.

Become a TeamCreate a regenerative environment where members become

Both collaborative and interdependent.

--------------------Relentless Patience --------------------

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Cultural Change in an Organization“As is” State “To Be” State

From an Environment That… To a Culture That…

Has many different and often conflicting goals among individuals, divisions, and departments

Has a common vision shared by everyone

Punishes mistakes: hides or rationalizes problems

Openly discusses problems, sees defects as opportunities for improvement

Rewards following established procedures Rewards risk taking and creative thinking

Puts technology first Puts people first

Controls supervisors Supports and is committed to teams

Encourages skills in one job Constantly creates opportunities for learning

Is slow and bound by rules Is fast and flexible

Makes decisions arbitrarily Bases all decisions on objective data

Has a negative or indifferent self-image Feels like a winner, with achievements creating good morale

Tolerates turf battle as inevitable Facilitates and rewards cross-functional cooperation and skills

Is internally driven Is customer service and citizen driven

Discourages directive decision making Encourages consensus decision making

Lets short-term problems drive and dominate work activity

Focuses on long-term, continuous improvement

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Levels of the Policy Change Cycle

Level The Question The ActivityInvolved

The Nature of

The Debate

Who is

Involved

What Determines Success

High: Issue Creation

Is there a public problem that requires government action?What should the purpose of the action be?

Articulation of problems in terms of values, norms, or goals used to judge why it is a problem and to guide efforts to address it.

Centers on philosophies, ideologies, values and fundamental justifications that support public action and government responsibility. Often heated and ideological. Played in the open.

The highest legislative leaders of government, heads of interest groups and the media.Highest ranking appointed executives whose departments are affected.

Skillful formulation and use of symbols and interpretive schemes. Understanding of public opinion, political influence and broad-scale political strategy.

Middle: Proposal Development Policy Review & Adoption

What strategies or policies should be pursued to achieve the agreed-upon purpose?

Identifying the policy mechanism that will be used (taxes, subsidies, vouchers, insurance, regulation or government service).Identifying the parts of government responsible for action.How statutory roles and financial, personnel and other resources should be allocated among implementing organizations.

Assignment of specific actions, responsibilities, roles and resources.Middle-level action or inaction.Debate fueled by organized groups acting out of self-interest.Sharp controversies and disagreement are likely to bread out.Reasoning will have a larger place in the controversies and compromises are easier to reach.

Department administrators and legislators.People who are positionally lower than participants in high level.

Leaders having effective working relationships and relatively constant interaction with key participants.Good understanding of the substantive and political issues connected to legislation, programs and budgets.Skill in the strategy, tactics, and timing of persuasion, negotiation and bargaining to identify and create potential trade-offs and politically attractive compromises.

Operational:

Policy Implementation

What are the details of policies?

What the instruments of actions look like.How the actions will be organized and managed.What procedures, regulations and guidance will be followed.

Specifics of organization management, personnel, finance and accounting, costs, legal sufficiency, purchasing and procurement and contract monitoring associated with implementation.

Lower level appointed officials and technical specialists and professionals associated with executive branch agencies, legislative staff and interest groups.

Understanding of substance.Appreciation of politics.

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Developing a Shared Vision and a Set of Organizational Values

Ultimate or “End” Values

Leadership

Philosophy

OrganizationalOperating

Values

IndividualBehaviorValues

SharedVision

Mission

StrategicPlan

(goals & objectives)

These describe the ultimate or “end” values that the organization is seeking to achieve; provide a test of an organization’s worth in society; answer the questions: “Why are we doing what we are, what is the higher moral purpose the organization is trying to serve?”

A statement of philosophy explaining the assumptions upon which management actions are taken and judged; answers the question: “What do we believe about the nature of people and how does this affect the way we choose to manage?”

These define the “human side” of the organization’s culture, provides a standard for edging interpersonal behavior; answer the question: “How are we going to treat each other.”

VISION: an image of what is trying to be accomplished, a direction for the organization; it must inspire members of the organization and galvanize them into coordinated action directed at a common future; answers the questions: “What are we trying to accomplish, for whom, and to what standard?

MISSION and/or STRATEGIC PLAN (with goals and objectives) may follow from the shared vision.

These define the “technical side” of the organization's culture; provides a standard for judging the organization’s strategies, structures, systems, and work processes; answer the question: “What organizational values should guide our operating processes?”

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Application of Ingredients for Organizational Change

ENVIRONMENT

Leadership

Philosophy

Role

Management

Style

Beliefs

Vision

Values

Strategies

Structures

Systems

Performances

Actions

Interactions

Cultural Side

Focus of Application

Functional Side

Management Focus

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Factors Affecting Organizational Performance

Casual Variables (Causes) Intervening Variables (Symptoms)

Outcome Variables (Results)ENVIRONMENT

•Product and Service Quality; Responsiveness; Customer Focus and Satisfaction•Financial Performance (profit, return on investment, cost reduction, budget performance)•Productivity and Competitiveness•Schedules, Deadlines, and Goals Accomplishment•Job Satisfaction (turnover rate, absenteeism, strikes, work stoppages, etc.)

•Degree of Employee Commitment to Organization Mission and Goals•Degree of Creativity, Innovation, and Risk Taking•Level of Employee Morale•Degree of Trust, Mutual Respect, and Support•Quality of Communications•Degree of Coordination and Cooperation•Quality of Problem Solving and Decision Making•Effectiveness of Systems, Controls, and Procedures•Effectiveness of Conflict Management Techniques

•Leadership(philosophy, role, style)

•Organization Vision (choice of a preferred future)•Organization Values (ultimate/end values, management values, behavioral/operating values)

•Strategy•Structure•Systems (work processes – formal and informal)

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AuthorizingEnvironment

InternalCapacity

Values(Personal & Public)

Sidebar: Know Your Authorizing Environment

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An Expansion of the Change “Levers”

“Theory of the Business”

LEADERSHIP: (philosophy, role, style)•Philosophy: A Change in Beliefs about the Nature of People-Nature of People: McGreggor’s Theory X vs. Theory Y-Motivation: Hetzberg’s hygene factors vs. motivators-Distribution of Knowledge and Creativity: at top vs. widely distributed-How Work Gets Done: individuals vs. groups-Block’s Bureaucratic (“critical parent-child) Model vs. Entrepreneurial (“adult-adult”) Model•Role: Changing from Directing and Controlling to Empowering and Leading-Building a shared vision and set of organizational values to replace traditional controls-Empowerment has a management part (e.g., delegation) and a psychological part (e.g., removing conditions causing feelings of helplessness)-Bureaucracy busting-The new leadership role is centered around supporting, teaching, enabling, and building commitment•Style: Leadership by Teams vs. Individuals-Creating a “parallel organization” with new rules outside the hierarchy

•STRATEGY:•Organization-Specific Approaches•Strategic and Tactical•Must Support Other Parts of Model

STRUCTURE:•Flat vs. Hierarchical•Decentralized vs. Centralized•Management Teams vs. Single Headed, Top-Down Approach•Multi-Functional, Autonomous, Self-directing Work Teams vs. Boss-directed, Solo-performers•Structure: Functional “silos” vs. Program/Project/Product Unit, vs. Matrix – or a Recent Hybrid Approach: “Chunking”•Must Support Other Parts of Model

SYSTEMS: (both formal and informal)•Human Resource (recruiting, developing, rewarding, etc.)•Financial/Accounting•Communications•Technology•Information Resources•Planning (Strategic/Tactical)•Decision-Making/Problem Solving•Conflict Management•Integrating Mechanisms•Must Support Other Parts of Model

ORGAINIZATION VISION: (image of a preferred future)•Must answer the questions:What are we trying to accomplish, for whom, and to what standards?•Must inspire and galvanize members into coordinated action.•Does the vision include customer focus, product/service quality, and continuous improvement?

•ORGANIZATION VALUE: (captures meaning and creates a culture)•Must answer the questions:-Why do we do what we do; what is the organization’s higher moral purpose?-What do we believe about the nature of people and how does this affect the way we choose to manage?-How are we going to treat each other?What organizational values should guide our operating processes?Do the values support a work environment which is challenging, rewarding, and fulfilling?

Words in italics above indicate characteristics of High-Performance Organizations

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“Theory of the Business”

What do we need to do (i.e., what strategies and systems do we need) to accomplish our vision?

Are we doing things right? (right process? done right?) Are we being efficient?

STRUCTURE:-Do we have the right “Business” Approach/Casual Model?

-Reductionist Approaches: (e.g., “business center” functional analysis/”chunking”-Integrated Approaches: (e.g., matrix structure, project management, “partnering” with clients/others)

STRATEGY:-Do we have the right “Business Approach/Casual Model? -”Business Process Redesign” (BPR)Reengineering/Reinvention

SYSTEMS:-do we have systems which are aligned and supportive?-Right WORKPROCESSES (TQM/CPI)-Right MANAGEMENT PRACTICES-Right SUPPORT SYSTEMS: Including systems that yield the right people (skills, competencies, attitudes, behaviors); Information; technology; financial/procurement support; facilities; equipment?

H.P. INDICATORS: -”execution” quality-financial performance

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The Road Map

HPO

WorkCulture

High Performance Organization

Work Outcomes

Shared Vision

Shared Values

Goals and Objectives

Strategic Plan

Tactical Plan

Capacity Bldg.Measurement

LeadershipPhilosophy Values Behavior

Discipline

Reward

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Putting It All Together

A High Performance Organization

Structures and

Systems

Desired Outcomes

Work Culture

Shared Vision

Performance Management

$

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Dayton’s Performance Initiative

HPO

HPO

Do the R

ight Work

Do the W

ork R

ight

CITY WID

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CITY DEPARTMENTS

CITY WORK TEAMS

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Do the Right Work Do the Work Right

What is High Performance for us?

How would we know if we were high performance?

Who are or should be our customers?

Why do we need to be High Performance in the first place?

Are we delivering the right stuff to the right people?

Who would miss us if we were gone?

How do we contribute to the City’s overall goals?

What should our key products and/or services be?

Do we deliver quality financial performance, and customer value?

What do we believe about the nature of people, their motivation and creativity?

How are we going to treat each other and our customers?

Do we have the right business strategy?

Are we correctly structured to support our strategy?

Do we have the right support systems, work processes, management and control systems?

Are we using the best practices of our profession?

What are our behavioral values?

What values drive our systems?

Do we use networked talent?

Are we learning, thinking, changing, renewing?

Have we enabled, empowered, and energized all team members?

QualityCustomer

Value

Financial Performance

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The Goals and Objectives of the Dayton Performance Initiative

Connect City Government to Vision 2003 & CitiPlan 20/20 Strategic plan that steers public

investment, economic development and service delivery

Long-range financial plan Regional land-use plan

Create a Culture of Success Vision Values Mission Leadership Philosophy Principles of Management Good Customer Relations

Secure the Right Tools State-Of-The-Art Technology Department Business Plans Facilities Housekeeping Issues Resolved

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t.

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The Goals and Objectives of the Dayton Performance Initiative Foster A Learning Environment

Staff training and development Performance appraisal system tied to department business plans Chartwell study of programs and services provided

Require High Performance Commitment to excellence Organizational improvements in systems, strategies and structures Performance based budgeting Citizen satisfaction surveys Best practices analysis Continuous improvements

Monitor What Gets Done Pay for performance Personnel contracts Employee recognition

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Sidebar: Dayton Vision 2003Dayton Priorities Plan Action Matrix

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Sidebar: Dayton Vision 2003Dayton Priorities Plan Action Matrix

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Sidebar: Dayton Vision 2003Dayton Priorities Plan Action Matrix

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The Dayton Performance Initiative: How It All BeganCity AdministrationImplementation of the Dayton Performance Initiative Creation of organizational vision, values and leadership

philosophy Executive leadership team

City manger level Department level

Change agent team Cross-functional teams Self-directed work teams Staff training and development Performance measurement and budgeting Department business plans Executive contracts

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The Dayton Performance Initiative: How It All BeganAnalysis of all City Services and Programs 174 Direct 75 Indirect Benchmarking Cost activity-based accounting Business process re-engineering Integration of new technologies

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The Dayton Performance Initiative: How It All BeganCreating New Organizational Culture New partnerships with unions Moving the management to lower levels of the organization Working with all staff to do the work of leadership Changing recognition and reward systems Providing more opportunities for staff to be engaged in policy

development Implementing employee feedback systems

360 degree evaluations Suggestion box initiatives Question and answer column in employee newsletter Executive attendance at department staff meetings Employee birthday breakfasts with city manager

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City of Dayton

Mission Statement

As stewards of the public trust, our mission is to provide leadership, excellent services, and participatory government to enhance the quality of life and sense of community

for all who live, work, raise families, play or conduct business in Dayton.

VisionDAYTON is a community where people choose to live, work, play and raise families.

We serve as a regional leader and resources in offering cutting-edge services to our many customers.

Leadership PhilosophyWe expect leadership qualities within each individual. We solicit each other’s input

and incorporate it into decision-making processes. To perform at the highest possible level, we procure and utilize appropriate resources, equipment, and training. We treat

each other with dignity and respect and expect each individual to operate by our values.

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City of DaytonCore Values

Respect

We serve our citizens and one another with courtesy and dignity recognizing the impact our actions have on the quality of life now and in the future. We value the diversity throughout our community and organization.

Integrity

We are honest and ethical in all of our dealings with each other and with the public.

Accountability

In the performance of our duties, we are individually and collectively accountable to citizens, customers, and stakeholders. We are competent, responsible, and dedicated to providing effective and efficient services.

Commitment to Excellence

We provide quality services with a continuing focus on customer value and financial performance. These services are provided with clear communication, cooperation, and teamwork.

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DPI Rollout – Department Level

Department Leadership Team

Strategic Plan

DPI Consulting Team

Benchmarks

Vis

ion

Values

Tactical Plan

Work Outcomes

Work Culture

Reward

Discipline

Behaviors

Leadership

Philosophy

ITS

M&B HR

Plann

ing

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Expectations of Team Leaders, Supervisors and ManagersIf you are a supervisor, team leader, or manager, it is the City of Dayton’s

expectation that you will:

1. Cause clear expectations for people in the unit to be set and understood.

2. Cause the mission and vision of your organization to be articulated, understood, and lived.

3. Demonstrate stewardship; avoid “turf.”

4. Cause the technical, financial, and business realities of the City to be understood and used by team members to make good decisions.

5. Communicate professionally with a diverse workforce; be demanding without being demeaning.

6. Actively communicate upwards, downwards, and across the organization.

7. Cause the workloads and opportunities to be distributed fairly and standards applied consistently.

8. Seek input from the work team on how work is done.

9. Acquire needed resources for your unit, including those needed for capacity development.

10. Manage public funds judiciously; cause team members to understand the “financial side” of the business so they can help.

11. Provide ongoing feedback on job performance.

12. Deal with problem behaviors in a timely manner.

13. Cause the performance of people you directly supervise to be evaluated – your feedback is important, but so is the feedback of customers, peers, and others.

14. Personally seek, understand, and utilize feedback from a variety of people.

15. Model the City’s values of respect, integrity, accountability, and a commitment to excellence.

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Our city leaders understand that sending executives & managers to development programs alone does not ensure that the city will

move in the direction of Higher Performance. Positive changes in OUR organization MUST be developed through an atmosphere

of cooperation regardless of title or position held.

Higher Performance

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“If you want to move people, it has to be toward a vision that’s positive for them, that taps important

values, that gets them something they desire, and it has to be presented in a compelling way that they

feel inspired to follow.”Martin Luther King, Jr.

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Conclusion: If you don’t have a destination, any place is

good enough. Find a destination where everyone is willing to go and will help in the rowing to get there.