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Strategic collaboration in local governmentA review of international examples of strategic collaboration in local government

Orla O’Donnell

Local GovernmentResearch SeriesReport No.2 January 2012

The case studies assess a variety of collaborative forms, from informal approaches to more complex formal approaches.

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contents

1. IntRoDUctIon 2

2. RAtIonALeFoRstRAteGIccoLLABoRAtIon 4

3. sHoRtPRoFILesoFstRAteGIccoLLABoRAtIons 14

4. concLUsIon 30

ReFeRences 32

APPenDIx1 34

APPenDIx2 38

Strategic collaboration in local governmentA review of international examples of strategic collaboration in local government

Report No.2 January 2012

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Strategic collaboration in local government

Forthepurposeofthispaper,thefocusisonstrategiccollaboration,whichnorris-tirrellandclay(2010:2)defineas‘anintentional,collectiveapproachtoaddresspublicproblemsorissuesthroughbuildingsharedknowledge,designinginnovativesolutions,andforgingconsequentialchange.Whenusedstrategically,collaborationproducespositiveimpacts,stakeholderscommittedtopolicyorprogramchange,andstrengthenedcapacityofindividualsandorganisationstoeffectivelyworktogether.’Whileit isnotedthatresourcesharingisnotanewconceptaslocalgovernmentorganisationshavebeenworkingtogetherandsharingresourcesformanyyears,atatimeoffiscalchallengesuchasthepresentitisusefultothinkmorestrategicallyaboutcollaboration.

Itshouldalsobenotedthatthereisaspectrumofpossiblestrategiccollaborationsinexistence.thecasestudiespresentedinthispaperprovideanumberofexamplesalongthiscontinuumofcollaborationthathaveprovedsuccessfulinothercountriesfromeasieroptions(suchasinformalco-operationandcontracting)toharderoptions(suchastransferoffunctionsandmergers/consolidations).thecasestudiesassessavarietyofcollaborativeforms,frominformalapproachestomorecomplexformalapproaches.

sectiontwoofthispaperexaminestherationaleforstrategiccollaboration.sectionthreesetsoutinternationalexamplesofcollaboration.Followingthis,acollaborativeframeworkandmodelisoutlined.theinternationalexamplesinparticularprovideusefulinsightsforIrishorganisationsconsideringstrategiccollaborationwithlocalornationalorganisations.thepaperhighlightsanarrayofoptionsforencouraginggreatercooperationandcollaborationacrossorganisationsandjurisdictionallines.

1.IntRoDUctIon

When used strategically, collaboration produces positive impacts

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Strategic collaboration in local government Introduction

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Giventhecurrenteconomicclimateoflimitedresources,increasingdemandsonservicesandcomplexcommunityexpectations,itisimportantthatcouncilslookatstrategiccollaborationsandpartnershipsaswaystorespondtothesechallenges.norris-tirrellandclay(2010:2)emphasisethatalmostanyproblemtodayistoocomplextobeaddressedindividuallyorbyorganisationsworkingaloneintheirsilos:‘Whatinthepastwouldhaveappearedasastraightforwardadministrativeproblemnowmorethannotrequiresworkingwithotherprograms,agencies,citizens,andmultiplestakeholdersacrosspolicyarenas.’theyfurthernotethatpublicandnon-profitadministratorsoftenstumbleintocollaborationwithoutastrategicorientation:

Forexample,agovernorormayorformsaninteragencycollaborationoninfantmortality,sustainability,workforcedevelopment,orthe“currenttopicoftheday”tomakeinnovativerecommendations;however,convenersfailtoproactivelyestablishastrategicagendaaroundthecollaboration.thusthegroupremainsintheircomfortabledisciplineoragencysilosandproduceslimitedresults…Unquestionably,collaborationisausefultool,but,onethatweargueneedstobeusedwithmoreintentionality,aspublicandnonprofitadministratorswrestlewithskilfullyengaginginandfacilitatingcollaborativestructures,processes,andoutcomes.(norris-tirrellandclay(2010:xi)

Bryson,crosbyandMiddletonstone(2006:44)notethatcross-sectorcollaborationoccursformanyreasons.‘thefirstissimplythatweliveinashared-powerworldinwhichmanygroupsandorganisationsareinvolvedin,affectedby,orhavesomepartialresponsibilitytoactonpublicchallenges.Beyondthat,intheUnitedstates,advocatesofpowersharingacrosssectorsareoftenrespondingtoalong-standingcritiqueoftheeffectivenessofgovernmentwhenitactsonitsown.’

2.1 What is strategic collaboration?

thensWDLGguidancepaperonCollaboration and Partnerships between Councils (2007:6)suggeststhat‘strategiccollaborationiswherecouncilsenterintoarrangementswitheachotherformutualbenefit’.theguidancepaperalsoemphasisesthatstrategiccollaborationisanumbrellatermforhowcouncilsworktogetherandthatitcantakemanyformsincludingalliances,partnerships,businessclusters,andsoon.thepaperpointsoutthatthepurposeofstrategiccollaborationistoreduceduplicationofservices,provide

2.RAtIonALeFoRstRAteGIccoLLABoRAtIon

This study assesses the spectrum of strategic collaborations in existence and provides a guide as to what are the core elements of best practice in terms of establishing successful mutual collaborations

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2.costsavings,accessinnovation,enhanceskillsdevelopmentandopenthewayforlocalcommunitiestoshareideasandconnectwithothers.strategiccollaborationoffersparticipatingcouncilsawaytoachievetheirgoalsandobjectivesincosteffectiveandinnovativeways.

Bryson,crosbyandMiddletonstone(2006:45)emphasisethattheperceivedneedtocollaborateacrosssectorshasprovokedtwogeneralresponses.

ontheonehand,ourownviewisthatorganisationalparticipantsineffectivecross-sectorcollaborationstypicallyhavetofailintotheirroleinthecollaboration.Inotherwords,organisationswillonlycollaboratewhentheycannotgetwhattheywantwithoutcollaborating(Hudsonetal.1999;Roberts,2001).thesecondresponseistoassumethatcollaborationistheHolyGrailofsolutionsandalwaysbest.often,governmentsandfoundationsinsistthatfundingrecipientscollaborate,eveniftheyhavelittleevidencethatitwillwork(BarringerandHarrison,2000;ostrower,2005).

similarly,norris-tirrellandclay(2010:73)outlinethatmovingfromsilostocollaborationrequirespublicandnon-profitmanagerstothinkdifferentlyaboutworkingbeyonddiscipline,organisation,andsectorboundaries.

collaborativeactivity,aspreviouslynoted,fallsonacontinuum:

onthefarleftofthecontinuumarepuresilo-basedactivities,whereissuesareseenassolelyandappropriatelyplacedwiththeagency.Asboundary-spanningfunctionsincreaseinmagnitude,theactivitiesmovetotherightalongthecollaborativecontinuum,fromsimplecollaborativeactivitiestofull-blownstrategiccollaboration.theissuesathandmayrequireonlyminimallevelofcollaborationthatismoreshort-terminnatureandsimplerinitspurpose.Incontrast,thornyproblemsthatareinterconnectedwithotherpolicyarenasandhavehighinvestmentonthepartofotheragencies,sectors,andinterestsmayrequireastrategicapproachtoformingandbuildingcollaboration.Alltoooften,decisionsaboutbuildingorjoiningacollaborationarenotstrategicinnatureandleadtowhatcanbelabelledadhoccollaboration…thiscommonapproachmirrorsthenotionof“muddlingthrough”and“hopingforthebest.”…Unfortunately,collaborativeinertia,fatigue,andfrustrationarethemorelikelyoutcomesfromthisnon-strategicapproach…toadvancepublicservicepracticeandreachlongtermsolutions,collaborativeactivityneedstobeappreciablymorestrategicinitsapproachtoassureintentional,systematic,andinclusionarycollaboration,aspublicandnon-profitmanagerswrestlewithtryingtomanageupward,downward,andoutwardwithintheirparticularcontext.(norris-tirrellandclay,2010:4).

chapter2:Rationaleforstrategiccollaboration

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Figure 1collaborationcontinuum

thisstudyassessesthespectrumofstrategiccollaborationsinexistence(seeFigure1)andprovidesaguideastowhatarethecoreelementsofbestpracticeintermsofestablishingsuccessfulmutualcollaborations.thecasestudiespresentedinsectionthreeinvolveanumberofexamplesalongthecontinuumofcollaborationthathaveprovedsuccessfulinothercountries.

2.2 Why the need for strategic collaboration and partnerships?

thensWDLG(2007)guidancepaperadvisesthattheaimofstrategiccollaborationisthatcommunitiesbenefitfromtheproductiveuseofcumulativeresourcesavailabletocouncilsbut,ifthereisnobenefittothecommunityeitherdirectlyorindirectly,acollaborativeapproachshouldnotproceed.thepaperalsonotesthatstrategiccollaborationisnotjustaboutsavingsandsharingresourcesbut,itisalsoaboutmaximisingcapacityinaddressingcommunityexpectationsandenhancingstaffskillsandexperience.Itunderlinesthatcollaborationisnotsimplyorsolelyaboutreducingstaffnumbersorcouncilautonomy.theprimaryaimsandpotentialbenefitsofstrategiccollaborationsaresummarisedinBox2.1.

Box 2.1 Aims and benefits of strategic collaboration

theaimsofstrategiccollaborationsareto:

• captureandshareknowledgeandinnovation

• connectcouncilsinmaximisingservicedeliveryopportunitiestomeetcommoncommunityneeds

• Reducecoststhrougheliminationofduplication

• Accesseconomiesofscale

• Developaneffectivelocalplatformtoworkwithotherlevelsofgovernmenttoachievebetterwholeofgovernmentoutcomesforthecommunity

thebenefitsofstrategiccollaborationinclude:

• theprovisionofmorecomprehensiveservicesatthelocalandregionallevel

• Promotionofjointculturalandeconomicdevelopment

Simple Complex

Networking,Informalcooperation

Formal cooperationknowledge sharing,contracting

Transfer of functions,integrationconsolidation

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• strengthenedrelationshipsbetweencouncilsandothergovernmententities

• Improvedlocalgovernancethroughmodelling,informationexchangeandjointproblemsolving

• opportunitiesforintegratedplanningacrosslocalgovernment

• Increasedaccesstoawiderrangeofskills,knowledgeandspecialistservices

• Betteruseofandaccesstoavailabletechnology

• Betterutilisationofcapitalandotherassets,includingimprovedinvestmentstrategyoptions

• Improvedeconomiesofscaleresultinginbetterproductsatacheaperprice,freeingupresourcesforotheruses

(NSW Department of Local Government, 2007: 6)

Inrecenttimes,asgovernmentstrytocutpublicdeficits,therehasbeenareductioninbudgetaryallocationstolocalauthoritiesinmanycountries.thereisagreaterfocusoncollaborations,partnershipsandoutsourcingasameanstocutcosts,improveefficiencyandproductivity.Forexample,Jepp(2011)highlightsthatintheUK,swanseacountycouncilplanstooutsourcealmostallofitsservicesinordertocutits£1.1billionbudgetby30percent.KentandReigateplantosave£4millionthroughcollaboratingorlinkinguponfourservices(personnel,finance,benefits&revenuesandIt).suffolkcountycouncilisoutsourcingadultsocialservicesina£20millionperannumplan.Jepp(2011)alsoemphasisesthatintheUK‘asthecoalitiongovernmentcontinuestomakechangestocutthepublicdeficit,itislikelythatthenumberoflocalauthoritiesembarkingonnewanddifferentrelationshipswillrise–alongwiththebreadthofriskstheyface.Ifthesepartnershipsareundertakenwithoutpropercommissioningandriskmanagementskills,thereiseverylikelihoodthatcostswillriseandservicequalitywilldecrease’.Jeppalsonotesthatrecentresearchconductedhighlightsthatonly29percentofpublicsectorleadersfelttheywereabletodealwiththekindsofrisksassociatedwithworkingwithotherorganisations(Zurich&IPsosMori,2010).

Inmanyinstances,intergovernmentalcollaborationallowslocalitiestoachievebetterresultsthantheycouldbyworkingalone.A1994studyofmorethan50instancesofcommunitycollaborationfoundthatsuccessfulcollaborationshavefourmajoroutcomes:theyachievetangibleresults,generatenewprocessesthatleadtosolutionswheretraditionalapproacheshavefailed,empowerresidentsandgroups,andfundamentallychangethewaycommunitiesdealwithcomplexissues.(nLc,2006:5-6).


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2.3 Challenges to strategic collaboration

thereare,ofcourse,significantchallengesassociatedwithstrategiccollaborations(seeBox2.2).norris-tirrellandclay(2010)outlinealistofobstaclestoeffectivecollaboration,including:

• toomuchemphasisonthestatusquoandprotectingturfbyparticipants

• Processesthatbringeveryonetothetablebutthenreinforcethesilosthatfurthersolidifytheirresistancetonewideas

• Recruitingthesameparticipantsforeverycollaborativeeffortwhenprofessionalsandvolunteerscanonlyactivelyandeffectivelyengageinalimitednumber

• Processesthatstartoveragaincollectingthesamedata,settingthesamegoals,andtakingusbackwherewestarted,whileexpendingcountlesshours‘collaborating’

• Decisionmakingdrivenbythequestforfunding,displacingthecollaboration’sfocusandagreeduponexpectations

• confusedsenseofauthority,delegation,andconsensusthatalltoooftenresultsinquestionsofownership,frustration,andparalysis.(norris-tirrellandclay(2010):xii,Preface)

Box 2.2 Common barriers to collaboration

threecommonbarriersthatmightimpedecollaborativeeffortsofagenciesaretime,turfandtrust.

Time: collaborativeeffortstaketimetodevelop.short-term,collaborationwilltakemoretimeandeffortthanprovidingservicesindependently;however,long-termitcansavetime

Turf: turfissuessurfacewhenanimbalance,perceivedorreal,ofbenefitstothecollaborationpartnersoccurs.Forexample,oneagencymightseethatanotheragencyreapsmorebenefitsfromthecollaborativeeffort;or,oneagencytakesonlessresponsibility,orhasmoredecisionmakingpower.Partnersdonotseeeachotherasequallyinvolvedinbenefitingofthecollaboration.

Trust:Lackoftrustbecomesabarrierincollaborativeefforts.trustcanbeinfluencedbypriororcurrenttroubledworkingrelationships,orbylackofunderstandingonhowagenciesordisciplinesoperate,orbypersonalfactorssuchaspersonalityortemperamentofanagencyrepresentative.

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otherbarrierstoeffectivecollaborationidentifiedintherelevantliteratureinclude:

• servicevacuums’mightbecreatediffinancialpressuresfacedbypublicsectororganisationsleadtoservicesfailingtobeprovidedbyeitherpartnerandlocalauthoritiescuttingservicesirrespectiveofwhatpartnershavedecided

• theimpactofbothoutsourcingandpartnershipsonstaffmoraleinalocalauthority.theintegrationrequired,includingredundanciesassociatedwithserviceconsolidation,raisesquestionsforstaffintermsofpotentialjoblosses,tochangesinroles,structuresandworkplaceculture

• Disparitybetweenthestandardsandpracticesofpublicorprivateorganisationslinking-up

• theinvolvementofpartiesnotusedtoprocurementandoutsourcing

Jepp(2011)suggestsanumberofsolutionstocombatmanyoftheserisks:

• tosafeguardagainst‘servicevacuums,’itisimportanttodraw-uppreciseservicelevelagreementswithclearstrategicgoals.Beforemakinganyagreements,itisimportantthatbothpartiesclearlyoutlineexpectedstandardsandensuretheyunderstandthoseoftheotherparties

• onceinplace,agreementswillneedconstantoversight.creationofservicecommitteesisbeneficialinencompassinglocalpublicservicesandbringingtogetherboard-levelmembersfromacrosspartners

• Intermsofallayingstafffears,itisimportanthowmanagershandletheanswerstostaffqueriesbyhavinganopenandcreativeapproachtoaddresspotentialissues,gettingbuy-infromalllevelsofstaffandclearlycommunicatingproposalstomitigatenegativeimpactofnewwaysofworking

• Manyofthesenewagreementswillinvolvepartiesthatarenotusedtoprocurementoroutsourcing.Itwillbeimportantnottorelyonanarm’slengthprocurementapproach,treatingthemastraditionalclient/contractorrelationships.Instead,itisvitaltoengageeveryoneinservicedesignfromtheoutsettoensuresustainableandresilientservices

similarly,Austin(2010)recommendsdevelopingaPurposeandFitstatementwhenembarkingonanypartnership.APurposeandFitstatementisaworkingdocumenttoformaliseideasexchangedthroughouttheidentificationphase,akintoamemorandumofunderstanding.AustinsuggestsdevelopinganswerstothefollowingquestionswhenpreparingaPurposeandFitstatement:


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1. Whatareyoutryingtoaccomplishthroughcollaboration?

2. Wheredoesyourmissionoverlapwiththepotentialpartner’smission?

3. Doyouandyourpotentialpartnershareaninterestinacommongroupofpeople(orgeographicregion)?

4. Doyourneedsordeficienciesmatchupwithyourpartner’scompetenciesandviceversa?

5. Wouldthecollaborationcontributesignificantlytoyouroverallstrategy?

6. Areyourvaluescompatiblewithyourprospectivepartner’s?

Austinrecommendsthateachpartneranswerthissetofquestionsseparatelyandthencometogetheranddraftsajointstatement.Fromtheoutsetthisenablesahigherlevelofhonestyandtransparency.eachpartnermustbeasexplicitaspossibleinansweringthequestions.topicsthatmaybeuncomfortablewillalsobeaddressed,forexample:

• Whowillbearthecostsofwhatinthepartnership?

• Whowillprovidethestaffhourstocarryouttheproject?

• Whatkindofexposuredoesyourorganisationwant?

• Wherewillthispartnershipfallonthecollaborationcontinuum(philanthropic,transactional,integrative)?

Itisimportanttoaddresswhetherornotorganisationshavethecapabilities(time,staff,finances,structure)tofulfiltheirendoftheagreement.Jepp(2011)notesthat‘itremainstobeseenwhetheroutsourcingandpartnershipworkingwillbringthebenefitslocalauthoritieshope,andmanyofthedetailsandlegalitieshavestilltobedetermined.However,riskmanagementshouldremainatopfocusforlocalauthorities.’

Itisalsoimportanttoexaminethecapabilitiesofstaffdealingwithcollaboration.norris-tirrellandclay(2010:314)emphasisethattheappliedliteratureunderlinesthatcollaborationhasbecomeanessentialcomponentofgovernance.theynotethatmanagementandleadershipcompetenceincollaborativesettingshasconsequentlybecomeajobrequirementofpublicandnon-profitmanagers.collaborationgovernancerequiresthatpublicandnon-profitmanagersmustbeskilledatmanagingvertically,horizontally,andinclusively,withintheirparticularcollaborativecontext,interactingandnegotiatingwithenvironmentalpressures.Inparticular,McGuire(2006:37)categorisesthedistinctivecollaborativeskillsneededasthoserelatedtoactivation(identificationandintegrationoftheappropriateparticipantsandnecessaryresources),framing(facilitatingrolesandresponsibilitiesaswellasproceduresandstructures),mobilising(elicitingcommitments),andsynthesising(facilitatingproductiveandintentionalinteractionstobuildrelationshipsandinformationsharing).

norris-tirrellandclay(2010:10)outlinethreebroadknowledgeareasimportanttoeffectivecollaborationbuiltfromorganisationalexpertise,whicharefamiliar

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topublicandnon-profitmanagers.theyoutlinethat‘collectively,thethreebroadareas–gettingthingsdonewithandthroughpeople,usinganalyticmethods,andmanagingboundary-spanningactivities–serveasafoundationforcollaborationpracticebutneedtobetransformedtoresult ineffectivestrategiccollaborationpractice’(norris-tirrellandclay(2010:10)).theyalsoidentifyawiderangeofcommonanalyticskills(summarisedinBox2.3)linkedtothesethreeknowledgeareasthatproveusefulforcollaboration.

Box 2.3 Skills essential for collaboration

Peopleskillsessentialforcollaboration

• Buildandsustainrelationshipswithpeopleatallorganisationallevels

• Facilitategroupprocessesasaleaderorteammembertoaccomplishtasks

• cultivatesupportforvisionanddesiredoutcomes

• Listentounderstandandvaluediverseperspectives

• communicateeffectivelyinwritingandinperson

• createagendastoorganiseprojects,managemeetings,coordinateassignments,andnavigatechange

• Usetransparencyandaccountabilitytomediateandnegotiateconflict

Analyticskillsessentialforcollaboration

• Facilitategroupstodevelopsharedknowledgeandgoals

• Performenvironmentalorneedsassessmentanalysis

• Identifyandcollectrelevantdata

• conductkeystakeholderanalysis

• Developandimplementperformancemeasurementandprogramevaluationprocesses

• Useavarietyofmethodologies

Boundary-spanningskillsessentialforcollaboration

• scanenvironmentforrelevantpolitical,social,andeconomicforces

• Developandcoordinatecross-agencyactionplans,assignmentsandtimetables,andbudgetsresources

• solicitfeedbacktoreviseorrefineplansandimplementationprocesses

• ensureaccountability

• Performregularrealitycheckforalignmentofexpectationsandpriorities

• considerrolesforcitizen,client,andconsumerparticipation

• communicatewithexternalstakeholders

Source: Norris-Tirrell and Clay (2010:12,13,14)


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similarly,Bryson,crosbyandMiddletonstone(2006:52)emphasisethatsuccessincross-sectorcollaborationsdependsonleadershipofmanydifferentkinds–theyhighlightleadershiprolessuchassponsors,champions,boundaryspanners,andfacilitators.But,HuxhamandVangen(2005:202-212)arguethat‘leadership–inthesenseofwhat‘makesthingshappen’–alsooccursthroughstructuresandprocesses.therefore,theleadershipchallengeincross-sectorcollaborationmaybeviewedasachallengeofaligninginitialconditions,processes,structures,governance,contingenciesandconstraints,outcomes,andaccountabilitiessuchthatgoodthingshappeninasustainedwayovertime-indeed,sothatpublicvaluecanbecreated.’

norris-tirrellandclay(2010:319)furtheroutlinesixprinciplesofstrategiccollaborationtoprovidepracticalguidanceforpublicandnon-profitmanagerstobemoreeffectiveintheirdecisionsregardingcollaboration.theseprinciplesaresetoutinBox2.4.theprinciplescanactasimportantguidesforthoseembarkedoncollaborativeactivities.

Box 2.4 Six principles of strategic collaboration practice

Principle 1:choosestrategiccollaborationwisely.

Principle 2:Understandthestrategiccollaborationlifecycle.

Principle 3:strengthenleadershipcapacity.

Principle 4:Balanceriskandrewardtransparently.

Principle 5:cultivateinnovationformeaningfulchange.

Principle 6:emphasiseoutcomesandimpacts.

Norris-Tirrell and Clay (2010:319)

Furthermore,Bryson,crosbyandMiddletonstone(2006:52)haveidentified,22propositions(seeAppendix1)relatedtocollaborationoutcomesandsuccess.theyattempttodemonstrateintheirarticlethatresearchmustpayattentiontotheexternalenvironmentinwhichcross-sectorcollaborationsareembedded:‘thevariablesreferencedinthesepropositionsmayleaddirectlytosuccess,buttheyaremorelikelytobeinterrelatedwith,moderatedby,ormediatedbyothervariables;embeddedinfairlycomplicatedfeedbackloops;andchangeovertime.’theirresearcharguesthat‘forexample,itislikelythatstructuralvariablessuchasthedegreeofnetworkcentralizationrelatetonetworkeffectiveness.However,structuralvariablesappeartobemoderatedormediatedbyenvironmentalfactorsandmayormaynotbeinfluencedby(orinfluence)criticalprocessvariables,whichhavealsobeenshowntoinfluenceeffectiveness.’Furthermore,Bryson,crosbyandMiddletonstone(2006:52)note

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thataquickscanoftheirpropositionsshowsamixofenvironmentalfactorsthatmanagershavelittlecontroloverandstrategicchoicesthatmanagersmayhavesomecontrolover.‘supportfromtheinstitutionalenvironmentiscriticalforlegitimizingcross-sectorcollaborationbutisnoteasilycontrolledbylocalmanagers.ontheotherhand,thechoiceofgoverningmechanism,stakeholderparticipants,planningprocesses,andconflictmanagementtechniques,forexample,arelikelywithinthepurviewofmanagerialchoice.’(Bryson,crosbyandMiddletonstone(2006:52))


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thissectionoutlinesanumberofinternationalexamplesofstrategiccollaboration.examplesaretakenfromnewsouthWales(nsW),Australia,theUnitedstates(UsA),andtheUnitedKingdom.

3.1 Lessons from New South Wales1

AreportproducedbythensWDepartmentofLocalGovernment(2007)highlightsthreekeyapproachestocollaboration:integratedmultiservice/businesssharingapproaches;singleservice/businessapproaches;andknowledgesharingandorganisationaldevelopmentapproaches.Alloftheseapproachesmaintaintheroleoflocalcouncilsasthekeygovernancestructure.

3.1.1 Integrated multi service/business sharing approaches

Inthisapproach,anumberofcouncilsenterintoacollaborativearrangementontheunderstandingthattheywillhaveasubstantial,long-termstrategicrelationshipandwillshareacommonfuturethatismutuallybeneficial.thesearrangementsareusuallygeographicallybased(butnotnecessarilyso).councilswithasmallpopulationandconsequentlyasmallrevenuebaseareadoptingthisapproach.thissmallbasereducesthecapacityofthesecouncilstoattractandmaintainhighlyskilledandexperiencedstaff,butthedemandfromthecommunityforservicesandinfrastructureismuchthesameasitisonlargercouncils.theformingofacollaborativearrangementallowscouncilstopoolresources,reduceduplicationandformacommonplatformtodevelopinitiatives.theytypicallyinvolvesomecommonpolicyandgovernancearrangements,aswellasagreementsforcommonbusinessandoperationalactivities.thereistheabilityforconstituentcouncilstooptinoroutofindividualprojects.

Inallcases,acommonplanningentityisestablishedtodevelopasharedapproach.electedrepresentativesandseniorstafffromtheconstituentcouncilsareinvolvedinthenewentity’sdecision-makingprocesses.theconstituentcouncilsmakethefinaldecisionsbutmaydecidetodelegatecertainfunctions.thesemodelsarenowcommonlyidentifiedasstrategicAlliances.AnumberofRegionalorganisationsofcouncils(Rocs)arealsomovinginthisdirection.

thebenefitofthismodelisthatitachievesthebusinessadvantagesofamalgamation,whilestillmaintainingtheconstituentcouncils’autonomy,andpreservingrepresentativelocaldemocracy.Benefitsincludeeconomiesof

3.sHoRtPRoFILesoFstRAteGIccoLLABoRAtIons

The forming of a collaborative arrangement allows councils to pool resources, reduce duplication and form a common platform to develop initiatives

1 This section is largely and selectively drawn from the NSW Department of Local Government Report (2007)

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scale,streamlinedbusinessprocessesandimprovedservicedelivery.thesepartnershipsneedastrongstrategicplanningfocusandrobustgovernancearrangements.theirsuccessdependsonhighlevelsofcommitmentandrelationshipmanagement.theygenerallyuseacombinationofbusinessmechanismstoachievetheirobjectives,includingsharedadministrationandreciprocalresourcesharing.

thefollowingtwocasestudiesdemonstratedifferentapproachestostructuringcollaborativeagreementsbetweencouncils.thefirstapproach,asdemonstratedbythecentraltablelandsstrategicAlliance,isavoluntarycooperativemodelbasedonamemorandumofunderstanding.thesecondapproachestablishesacorporateentitytodevelopintegratedserviceapproachesonbehalfofmembercouncils.thesehavecommonlybeendevelopedonthefoundationofRocs.sucharrangementsareusuallybasedonmembercontributionsandallowtheRoctoemploystafftodriveregionalpartnershipinitiatives.AnumberofotherRocsoperateunderacommonconstitutionbuttheemploymentofstaffrestswithindividualcouncils.thisrequiresclearagreementbetweencouncilsastohowassociatedcostsaremet.thekeyfeatureofthisapproachisthatcouncilshaveidentifiedinterrelatedareasinwhichtheycanbenefitfromacommonapproach.

Case study – Central Tablelands Alliance

Lithgowcitycouncil,oberoncouncilandMidWesternRegionalcouncilformedthisallianceinseptember2006.thecentraltablelandsAllianceisdesignedtoassistthethreecouncilsstreamlinebusinessprocesses,managecosts,identifyresource-sharingoptionsandcarryoutplanningonalargerregionalbasis.AswellasthejointpurchasingofplantandItsystems,theallianceisseekingtopromoteandgrowinternalskillsandcreatetechnicalexperts.theoverallaimistomaximisetheeffectiveuseoftheresourcesavailable.

theconstituentcouncilsareallsignatoriestoamemorandumofunderstandingthathasthefollowingfeatures:

• theabilityofindividualcouncilstooptinoroutofprogramsdevelopedbythealliance

• theabilityforindividualcouncils,ortheallianceasawhole,toworkwithotherexternalentities

• Identifiescommonareasforallianceprojects

• Requiresthethreecouncilstoconsenttotheparticipationofotherpartiesinprogramsdevelopedbythealliance

• Identifiesreportingarrangements

• outlinesstrategicplanningapproach

• Providesaprocesstorevieweffectiveness

• containsmechanismstoresolvedisputes

chapter3:shortProfilesofstrategiccollaborations

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theallianceisadministeredbyamonthlymeetingofthethreegeneralmanagers.thethreemayorsmeetwiththegeneralmanagersonaquarterlybasistooverviewthealliance’sactivitiesandsubsequentlyreporttotheirrespectivecouncils.

Strategic planning approach

thefirststagewastoidentifythecommonareasforjointwork.thisinvolvedstafffromallcouncilsworkingtogethertocompleteacomprehensiveoperationalreviewofareassuchas:humanresourcespoliciesandfunctions;salarysystems;payrollsystems;informationtechnology;plantandequipment;economicdevelopment;tourisminitiatives;andlanduseplanning.thesecondstageinvolvedthedevelopmentofamanagementplantoprogresstheopportunitiesidentified.theplanidentifiedthefollowing:descriptionofkeyprojects;detailedactivitiesforeachproject;definitionsofoutcomesandkeydatesandresponsibilities.

Case study – Hunter Councils Inc

HuntercouncilsIncrepresentsthetwelvelocalgovernmentareasoftheHunterValley.Buildingonthestrengthofrelationshipsdevelopedover50years,thecouncilshavedevelopedtheabilitytosharearangeofresourcesincludingprofessionalstaffandplantbetweencouncils,andundertakearangeofprojectsincludingrunningaregionalairportandawasterecyclingfacility,amongstmanyothers.theRegionalorganisationofcouncilshascapitalisedonthatrelationshipbybuildingasignificantsharedserviceentity,HuntercouncilsIncanditstradingarm,HuntercouncilsLtd.Programmesincludearangeofenvironmentalmanagementprogrammeswhichover2005-06hadavalueof$3,435,000whichprovidedavaluetoeachcouncilof$893,000.LearningandDevelopment(aregisteredtrainingorganisation)delivered322localgovernmentbasedprogrammesto3,300participantsduring2005-06withcostssavingstothevalueofover$1million.Regionalprocurementfacilitatedover$10.8millionpurchaseswithanaveragesavingof10percent.

HunterRecordsstorage–astateRecordsActcompliantrecordsstoragefacilitywhichoffersitsservicestomembersandotheragenciesandcompaniesoperatesonacommercialbasisandprovidesnotonlyaregionalservicebutalsoarevenuestreamtoprovideself-sustainability.Aboardmadeupofelectedrepresentativesofmembercouncilssetsthestrategicdirectionfortheorganisation.Acommitteecomprisedofgeneralmanagersprovidesthedirectionandgovernancerequiredfortheprojects.Alargerangeofprofessionalteamscomprisedofspecialistsfromeachcouncilmeetsregularlytoshareexpertiseandidentifyopportunitiesforresourcesharingprojects.Furtherdetailscanbeobtainedfrom:www.huntercouncils.com.au.

http://www.huntercouncils.com.au.

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3.1.2 Single sharing approaches

Intheseapproaches,anumberofcouncilsjointogethertoachievecommonoutcomesinanidentifiedbusinessfunctionorserviceprovision.thismaybetwoorthreeneighbouringcouncils,oramuchlargernetworkacrossthestate.eachcouncil’spolicyandgovernancefunctionsremainessentiallyseparate,withthesolefocusofthearrangementbeingonoperationaloutcomes.Generally,theaimistomaximisetheuseofassets,resourcesandexpertisetoimproveaccessandefficiencyandachieveabetterproductatacheaperper-capitacost.suchpartnershipsmaybesimpleorcomplex.thepartnershipmightinvolvethesharingofoneparticularservice,suchaswastemanagementorroadsafetyprograms,oritmayinvolvemultipleadministrativeservices.Itmayalsoincludejointmanagementofaregionalfacility,suchasanairport,oraquaticcentre.typically,suchcollaborationsaimtoachieveoutcomesthatnoonecouncil(irrespectiveofitsresourcebase)canachieveonitsown.theyallowtechnicalandstrategicresourcestoberealisticallyaccessed.tobeeffectivethesearrangementsneedastrongbusinesscase,andeffectivemonitoringandreviewmechanismstomeasurethebenefitsachieved.themoresimplecostsharingarrangementsareusuallyestablishedthroughcontractualagreements.themorecomplexbusinessmodelsmayrequiretheestablishmentofaseparateentity.suchapproachesrelyonasinglebusinessmechanismtoachievetheirobjective,suchasacooperativeoracorporation.Acouncilmaybeaparticipantinanumberofthesearrangements.

thefollowingthreecasestudiesdemonstratehowcouncilscanworkwitheachothertoachievespecificproject-relatedbenefitsformembercouncilsandtheircommunities.Itisimportanttonotethatthesetypesofcollaborativearrangementscanoperateeffectivelyinconjunctionwithotherformsofintegratedservicesprovisionasoutlinedintheprevioussection.

Case study – The Redtape Blueprints Project: Smartforms

Aconsortiumof40nsWlocalcouncilswasawardedagrantforitsRedtapeBlueprintsprojectthatinvolvedthedevelopmentofacentralonlineentrypointandenhancementofelectronicplanningcapabilities.thegrantwasawardedfromtheAustraliangovernment’sregulationreductionincentivefundthataimstoprovidelocalgovernmentauthoritieswithincentivestoreducetheimpactofregulationandassociatedcompliancecostsforsmallbusinesses.Atthecoreoftheprojectisthedevelopmentofintelligentformsthataredynamic,interactive,customerfocusedandtailoredtoindividualcouncils’requirements.smartformsalsohelptostreamline,automateandmanagebusinessprocessesresultinginincreasedefficiencyandimprovedcustomerservice.thesystemsalsohavethecapacitytointegratewithothergovernmentinformationandplanningrequirements.


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Case study – Westpool and Metro Pool WestpoolandMetroPool(‘thePools’)arebothexamplesoflocalgovernmentstrategicalliancesestablishedtoaddressriskmanagementandinsuranceissuesfortheirmembercouncils.theyarenotinsurancecompaniesoragencies,rathertheyareself-insuranceco-operativesoperatedentirelybyparticipatingmembers.thePoolsfunctionsolelyforthebenefitofmembersandprovidearangeofinsuranceprogrammesandservices.eachofthePoolshasitsowndeedofagreementandbylaws,whichcovertheadministrativestructureandoperationofthePools.BothofthePoolsusetheservicesprovidedbytheUnitedIndependentPoolsorganisation.eachofthePoolshasaboardofdirectorsandassociatedstructuresdesignedtoprovideforongoingandeffectivedecision-making.thePoolshaveajointexecutiveofficerandadministrativesupportservices.thePoolsexercisetheoptioneachyearofself-insuringfortheir‘primary’layer,orbuyinginsurance,dependingontheconditionofthemarket.

someoftheachievementsofthePoolsinrecentyearsinclude:provisionofpublicliability/professionalindemnityinsuranceuptoa$100millionlimit;bulkpurchasedmotorvehicleinsurance;poolfundedgeneralinsurancepolicies;trainingandprofessionaldevelopmentprogramme;andcomprehensivepropertyinsuranceandassetvaluationservice.someofthebenefitsthemembersreportthroughtheircommitmenttothePoolsinclude:agreaterunderstandingoftheinsurancemarket;protectionfromthecyclicalnatureofthemarket;growingequityinthePools’funds;developmentofjointriskmanagementstrategiesandpolicies;reducedinsurancecosts,andgreateremphasisonproactiveclaimsmanagementandcorrectiveaction.

Case study – SSROC Waste Programme

ssRochasaregionalprogrammeofwasteactivitiestorespondtopriorityareasidentifiedbymembercouncilstodeliverbenefitstocouncilsandtheircommunities.theprogrammehasbenefitstomembercouncils, includingsavingsfromjointtendering,theprovisionofspecialistassistanceandaddressingcross-boundaryissues.Activitiesinclude:

• contractforreceiptofrecyclablematerials–threecouncilsparticipating;gatefeeandoperationalsavingsinexcessof$2.5millionp.a.

• contractforreceiptofputresciblewaste–ninecouncilsparticipating,securityandcertaintyinservicecosts,savingsexceeding$7millionover5years

• Dry(orhard)wastecontract–eightcouncilsparticipatingintwoseparateagreements

• Reviewofcouncilwastecollectionanddisposalservices

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3.1.3 Knowledge sharing and organisational development approaches

thesearrangementsarecommonandcanbeformalorinformalinnature.Professionalmentoringschemesareincreasinglyusedtoassistindevelopingmanagementskillsandtechnicalexpertise.theseschemesmaybeofferedbyprofessionalassociations,ortheymaybemoreofaninformalarrangementbetweencouncils,forexamplewhereanexperiencedgeneralmanageractsasamentorforanewgeneralmanager,orcouncilsgettogethertodiscussmethodologiesinassetmanagementorstrategicplanning.specialinterestgroupsandon-lineforumsarealsowidelyused.theseareusuallybasedontechnicalaspectsofcounciloperations,suchaswastemanagementorwatersupply.theymaybeestablishedthroughjointarrangementwithcouncils,orhostedbyprofessionalassociations.Rocsareanexampleofaregionalapproach.theyprovideaforumtoexchangeviewsanddevelopsolutionsinareasofcommoninterest.Professionalsubgroupsprovidetheopportunityforexpertisetobesharedandcommonapproachesdeveloped.sistercitypartnershipslinkingmetropolitanandruralcouncilswithinnsW,orcouncilsinterstatearealsocommon.thesearrangementsallowexchangeofinformation,developskills,supportculturaldevelopmentandconnectdiversecommunities.thesetypesofarrangementshavethepotentialtodevelopintomoreextensivetypesofstrategicresourcesharing.theycanbeverybeneficialbutthecostsinvolvedcanbeunderestimatedandthebenefitscanbehardtomeasure,giventhattheyareoftenintangible.

thefollowingtwocasestudiesdemonstratethepotentialforlessformalarrangementstobedevelopedintomorestructuredsharedbusinessarrangements.

Case study – Liverpool Plains Shire Council/Blacktown City

thissistercityrelationshipwasfirstformedin2004.Initiallyitwasaimedatexchangesineducation,sport,culturalandeconomicdevelopmentandstaffexchanges.therelationshiphasdevelopedintoamemorandumofunderstandingcoveringtheprovisionofservicesinareassuchasinternalaudit,tourism,noxiousweedscontrol,informationtechnology,townplanning,recordsmanagementandrangerservices.thecouncilsbenefitfromthetwo-wayexchangeofskills,eachbringingtheirownuniqueperspective.Bothcouncilshavebeensuccessfulinobtaininga$2milliongrantunderthensWgovernmenturbansustainabilityprogrammeforacarbontradinginitiative.theprojectallowsbothcouncilstotradecarboncertificatesaddingtotheincomestreamforbothcouncils.thesistercityrelationshipbetweenBlacktown,withitsrapidlygrowingurbandevelopments,andLiverpoolPlainsshirecouncil intheruralnewenglandarea,isaimedatencouragingsocialcohesionacrosstheurban/ruraldivideandallowingforlargetractsofpublicandprivatelyownedlandtobeutilisedforbiodiversityplantingsandcarbonsequestration.


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Case study – REROC: Sharing knowledge through professional development

ReRoccompromises13generalpurposecouncilsand2countycouncils,includingthelargestinlandcityinnsW,WaggaWagga,andthesmallestshireinthestate,Urana.ReRocmembersworkco-operativelytobuildeconomiesofscaleandscopethatimprovecouncils’efficiencyandeffectiveness.thepartnershipalsoprovidesaplatformtobetterengagewithlocalcommunities,otherspheresofgovernmentandotherexternalstakeholders.Inthiswayindividualcouncilsareabletobuildorganisationalcapacitythroughknowledgedevelopmentinawaythatnoindividualcouncilcouldotherwisedo.ReRoc(asdootherRocs)hasanumberofsub-committeesthatmeettoshareinformation,skillsandundertakejointproblemsolving.theseinclude:

• Wasteforum,whichsharesandplansinitiativesinregionalwastemanagementaimedatbettermanagementofwasteandreducinglandfill.theforumalsoprovidesregionaladvicetostateagenciesinthedevelopmentofnewinitiativessuchascontainerdepositlegislation,andthedisposalofhazardouswaste

• Riverinaspatialinformationgroup,whichincludescouncils,stategovernmentdepartmentsandprivateenterpriseandaimstoshareandbetterunderstandinformationaboutthelatestinnovationsinspatialtechnologies

• engineersgroup,whichsharesinformationinareassuchasoccupationalhealthandsafety,singleinvitationroadmaintenancecontractsandskillsshortages

3.2 Lessons from the USA2

theAllianceforRegionalstewardshipandthenationalLeagueofcitiesdevelopedaguidetosuccessfullocalgovernmentcollaborationinAmerica’sregions.(nLc2006).theguideemphasisesthatinordertohelpmakeregionalcollaborationsmoresuccessfulandsustainable,localelectedofficialsandcommunityleadersmustinvolveallstakeholders.theguidealsooutlineskeystepsforengagingstakeholders,alongwithlessonslearnedfromcommunitiesthathaveattemptedvariousformsoflocalgovernmentcollaboration.selectedcollaborationoptionsforlocalgovernmentsfromtheguidearepresentedhere.eachoptionincludesadescription,anexampleoflocalitiesthathaveimplementedtheoption,andadvantagesandchallengesassociatedwitheachapproach.theoptionsareorganisedalongacontinuum,rangingfromthosethatrequiretheleaststructuralchangetothosethatrequiremorestructuralchangeandmaybemoredifficulttoimplement.

2 This section is largely and selectively drawn from the guide produced by the Alliance for Regional Stewardship and the National League of Cities (NLC 2006)

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3.2.1 Informal cooperation

thisapproachusuallyinvolvestwolocal,normallyneighbouring,governmentjurisdictionsthatofferreciprocalactionstoeachother.Addingprivateornon-profitpartnerstothemixcanincreasetheacceptanceandimpactofinformalcooperationwithinaregion.

Case study

theRegionalJobsInitiativewasstartedin2003bythetownsofFresnoandclovis,cA,andnowincludeshundredsofprivateandcivicorganisations.Allarededicatedtotheultimateobjectiveofgeneratinglong-term,sustainableeconomicdevelopmentintheFresnoRegionbydiversifyingtheindustrialandeconomicbasetocombatchronicunemployment.theJobsInitiativeisbasedontheideathatregionaleconomiesarecomposedofrelatedindustries,orclusters,thatbenefitoneanother.taskforcesidentifyexistingandemergingindustryclusterswheretheregionhasacompetitiveadvantage,andthendevisestrategiesthatimprovetheregion’sclimateineachclusterforinnovation,businesscreation,expansion,andretention.Afive-yearstrategicplanisguidedbycommunityvaluesknownastheguidingprinciplesoftheFresnoregion,developedcollaborativelybybusiness,education,civic,andgrassrootsleaders.Forfurtherdetailssee:www.fresnorji.org

Advantages and challenges – informal cooperation

Advantages

• Pragmaticsolutiontospecificneeds;oftenaccomplishesalocaljurisdiction’sgoalswithoutcomplexfiscalandjurisdictionalcomponents

• themostwidelypracticedapproachtocollaborativepublicservicedelivery,accordingtoanecdotalevidence

Challenges

• Hardtosustainovertime,giventhelackofformalstructures

• Verysusceptibletoshiftsandchangesinpolitics,personnel,andresources

3.2.2 Inter-local service contracts

Inter-localservicecontractsareanothervoluntarycollaborationoption.Incontrasttoinformalapproaches,theyinvolveamoreformalagreementbetweentwoormorelocaljurisdictions.Inter-localservicecontractsarewidelyusedtohandleservicingresponsibilities,particularlybetweenandamongmetropolitancommunities,andtheyoftencanincludenon-profitandcivicorganisations.theagreementsmaytakeavarietyofforms:


http://www.fresnorji.org

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• Acontractforservicesbetweentwojurisdictionsunderwhichonejurisdictionagreestoprovideaservicetoanotherforanagreedprice.thisisthemostcommonformofinter-localservicecontractandcancoversuchservicesaslawenforcement,fireprotection,corrections,courts,emergencydispatch,buildinginspections,andcodeenforcement

• Jointserviceagreementswheretwoormorelocaljurisdictionsjoinforcestoplan,finance,anddeliveraservicewithintheboundariesofallparticipatingjurisdictions

• Mutualaidagreementsforemergencyservice,whichdetailhowlocaljurisdictionswillprovideservicesacrossjurisdictionalboundariesintheeventofanemergency,oftenwithoutpayment

Case study

thetriangleregionhouseholdhazardouswastecollectionprogrammewascreatedin1995tocoordinateandimproveregionalandlocalapproachestothedisposalofhouseholdhazardouswastesinthetriangleregionofnorthcarolina.thecoalitionsetsgoalsandprioritiesandoverseesprogrammeactivities.Itincludesanumberoflocalcountiesandtowns.Amajorobjectiveistoreducehouseholdhazardouswastesintheregion’slandfillsandtheenvironment.Initiativesinclude:

• Acomprehensiveeducationprogrammetoinformthepublicaboutreducing,reusing,recycling,andproperlydisposingofwastes

• outreachprogrammes,publicserviceannouncements,mediadisplays,andpromotionalmaterialsaseducationvehicles

• collectionpointsthroughouttheregionthatcanbeusedbyresidentsofanyjurisdiction

• Apublicinformationcampaignwitha24-hourinformationline

• Ajointcontractwithawastedisposalcompanythatprovidesa10percentdiscounttothecoalition

Amongthemajorbenefitsforlocalgovernmentsparticipatingintheprogrammearecostsavingsandgreaterefficiency–forexample,throughcooperativepurchasingofequipmentandjointdevelopmentofspecificationsforcollectionfacilities.Forfurtherdetailssee:http://www.tjcog.dst.nc.us/regplan/hhw.shtml

Advantages and challenges – inter-local service contracts

Advantages

• Providesaformalagreementbetweenandamonglocalgovernmentstocooperativelycarryoutpublicfunctionswithinexistinggovernmentstructures

• canprovidecost-effectivesolutionstosharedproblems

http://www.tjcog.dst.nc.us/regplan/hhw.shtml

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Challenges

• Distributingcostsandservicesequitablyamongparticipatingagenciescanbeachallenge

• Agreementsthatlackspecificityregardingexpectedservicesandresponsibilitiescancausefriction

• eachpartytothecontractmustperceiveabenefitfromtheagreementforthenegotiationtobesuccessful;itcannotbeassumedthatajurisdictionwillenterintoacontractsolelyforthegoodoftheregionasawhole.Forexample,thetriangleregionprogrammedidn’tchoosetopromoteoneregionalwastedisposalfacility,butoptedinsteadtocoordinatemultiplewastecollectionsites

• sunsetprovisionsoftenusedininter-localservicecontractstendtomakethemissue-orientedratherthancomprehensive.Inotherwords,theydisappearwhentheissueorproblemgoesaway

3.2.3 Contracting

Localgovernmentsstrugglingtoprovideserviceswithlessrevenueincreasinglyareturningtocontractingwithothergovernmentsand/orwiththeprivateandnon-profitsectors.suburbangovernmentsmaycontractwithlargermunicipalitiesintheirregionsforsupplementalservicesinexpense-heavyareassuchaspoliceandfire–providingalevelofcoveragebeyondthatofacountygovernment.Localgovernmentsalsohavealonghistoryofcontractingforwater,electricity,gas,andsewerserviceswithbothpubliclyandprivatelyownedentities.

Case study

Contract Cityisanaptdescriptionofcamarillo,cA,becausethecitypurchasesmajorpublicservicesthroughcontractswithotheragenciesandprivatecompanies.camarillocontractswiththeVenturacountysheriff’sDepartmenttoprovideits46memberpoliceforce.camarillo’spolicestationhousesanadditional22sheriff’spersonnelwhoserveotherpartsofthecounty.Buildingandsafetyservicesareprovidedbyaprivatecontractor,whosefiveemployeesworkatcamarillocityHallhandlinginspectionservicesforthecityandcheckingbuildingplans.otherregularlycontractedservicesincamarilloincluderefusecollectionandrecycling,streetsweeping,landscaping,andtransportation-relatedservicessuchaspublictransit,trafficsignalmaintenance,assistancewithasphaltpaving,andinstallationofhandicapramps.Allcontractedservicesarereviewedannuallyandrenewedonaperformance/costbasis.otherservicesincamarilloareprovidedbyspecialdistrictsfundedthroughtaxassessmentsonpropertyownerstailoredtotheservicesreceived.Fireprotection,forexample,comesfromtheVenturacountyFireProtectionDistrict;communityparksaremanagedbythePleasantValleyRecreationandParkDistrict;andlibraryservicesareprovidedbytheVenturacountyLibraryDistrict.cityofcamarillo,Forfurtherdetailssee:www.ci.camarillo.ca.us


http://www.ci.camarillo.ca.us

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Advantages and challenges – contracting

Advantages

• contractingcanprovideefficienciesbyenlistingprofessionalspecialiststoperformservicesratherthangovernmentemployees

Challenges

• contractingforcertainpublicservicescanraiseissuesconcerningtheconfidentialityofinformation,aswellasgovernment’sobligationtoserveitsresidents

• contractingwithoutatransparentbiddingprocessandstrongconflictofinterestrulescanleadtofavouritism

• Forthesereasons,jointpowersagreementsandinter-localservicecontractsaregoodalternativestoprivatecontracting

3.2.4 Regional Purchasing Agreements

Regionalpurchasingagreementsareanapproachthathelpslocalgovernmentsachievecostsavingswhilefosteringmorecross-jurisdictioncollaboration.theseagreementscanbestraightforwardbulkpurchasinggroups,ortheycantakeonmorecomplexchallengessuchascoordinatingbiddingandcontractingfortheirmembers.

Case study

thestrategicallianceforvolumeexpenditures(sAVe)wasformedby22localjurisdictionsintheMesa,AZareatocoordinatetheirpurchasingandcontracting.Basedonastatecooperativepurchasingprogram,sAVecoordinatesbiddingandcontractingforcommonlyuseditemssuchaswatertreatmentchemicals,recyclingcontainers,buses,busshelters,andtrafficsignalequipment.onesAVememberagencyservesastheleadtodevelopspecifications,solicitbids,andevaluatepotentialvendors.then,othermembershelpselectthevendor,andtheleadagencyawardsthecontractthroughitsgovernmentalapprovalprocess.AnysAVemembercanpurchasefromthechosenvendor,accordingtothesAVebylawsandintergovernmentalagreement.thegrouphasawebsitetoidentifycontractsandfacilitatetheprocess.Forfurtherdetailssee:www.maricopa.gov/materials/sAVe/member_info.asp

Advantages and challenges – regional purchasing agreements

Advantages

• collaborativebuyinggroupscanachievevolumediscountswiththeircollectivebuyingpower,andcanrealisesavingsfromsharedconsultingoroutsourcingservices

http://www.maricopa.gov/materials/SAVE/member_info.asp

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• thiskindofcooperationavoidstheneedtodrawnewboundaries

• successatregionalpurchasingcanleadtocollaborationonmorechallenginggovernanceissues

Challenges

• therearemanyregionalpurchasingprogrammesinoperation.However,manypickoffafew‘low-hangingfruits’byfocusingonlyoncostsavingsatthelocallevel.theycanmisstheopportunityofbringingleaderstogethertoaddressregionalissuesinamorecomprehensiveandcooperativeway

3.2.5 Merger/Consolidation

thisoptioninvolvesavarietyofapproachesthatresultinthecreationofanewregion-widegovernment,reallocationofgovernmentpowersandfunctions,andchangesinthepoliticalandinstitutionalstatusquo.Miller(2002)concludesthatmorecentralisedgovernmentsystemsarebetterthandecentralisedonesindealingwithregionalgovernanceissuessuchasfiscaldisparitiesbetweencommunities,socialequity,andeconomicdevelopment.Merger/consolidationcanhappeninanumberofways,asdescribedbelow.optionsrangefromincrementalapproachestocitycountymergerstoconsolidationsinvolvingmultiplecounties.Anexampleisthe2000mergerofLouisvilleandJeffersoncounty,KY,thefirstlargemetropolitanconsolidationinthreedecades.

Case study – incremental approach focused on service delivery

thecharlotte-Mecklenburg,nc,experiencehasbeendescribedas‘functionalconsolidation’ofcity-countyservices,ascontrastedwith‘political’consolidation.Inessence,forthepast60years,increasingamountsofthemajorservicesofthecityandcountyhavebeenprovidedacrossthecountyeitherbycharlotteorbyMecklenburgcounty.Inanincrementalprocess,charlotte-Mecklenburghasinstitutedasetofinter-localserviceagreementsinserviceareasthatspanparksandrecreationtopublictransit.Inall,morethan20majorpublicserviceshavebeenconsolidated.thisincrementalprocessofserviceconsolidationfollowedseveralfailedattemptsatpoliticalconsolidation.Forfurtherdetailssee:www.charmeck.org


http://www.charmeck.org

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Case study – one-tier consolidation

thisapproachtomerger/consolidationresultsinasinglenewgovernmentresponsibleforallservicedeliveryinthearea.IthasbeenusedintheUnitedstatessince1984,butisrare.VotersinAthensandclarkecountyapprovedaunifiedgovernmentin1990afterthreefailedreferenda.thenewgovernmentprovidesservicestomorethan100,000peopleover125squaremiles,withadirectlyelectedmayorand10electedcommissioners.

Advantages and challenges – Merger/Consolidation

Advantages

• clearly,thereispotentialforgreatefficiencyandeffectivenessinhavingfewergovernments(orjustone)deliveringandaccountableforservices.consolidatedgovernmentsciteanarrayofbenefitsstemmingfromunifiedleadershipandamorefocusedcommunityagenda.thesebenefitsincludeimprovedsuccessineconomicdevelopmentandincreasedcollaborationandpartnershipsthroughouttheregion

• consolidationisattractivebecauseitkeepssomeserviceslocalised,asneeded,andprovidesregionalservicedeliveryforservicesthataffecttheentireregion

• Itisdifficulttocalculateactualsavingsandimprovementsinservicesunderconsolidationsbecausetherearesomanyvariables.However,independentanalysisofAthens-clarkecounty,GA,documentsavingsandimprovements.Athenssawitsgeneralgovernmentexpendituresdeclineby10percentinthefiveyearsaftermerger

Challenges

• thechallengesofmerger/consolidationareprimarilypolitical.Gettingthenecessaryauthorisationfromthestate,overcomingresistancefromlocalelectedofficialsandaddressingconcernsaboutequalrepresentationinthenewgovernmentallcanposeproblems

• Asaresultofthesedifficulties,manymergerreferendahavefailedatthepolls–includingincommunitiesthateventuallyapprovedconsolidation–andmanymoreinitiativeshaveneverevenmadeittotheballot

• somecommunitieshaveconcludedthatthetimeandenergyspentdealingwiththepoliticalchallengesofmerger/consolidationcouldbetterbeusedimplementinglessintensiveandmoreeasilyachievableformsoflocalgovernmentcooperationandcollaboration

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3.3 Lessons from the United Kingdom3

onthe20thoctober2010,theUKchancellor,Georgeosborne,presentedtheUKGovernment’sspendingReviewwhichfixesspendingbudgetsforeachGovernmentdepartmentupto2014-15.thespendingReviewannouncedthefirstphaseofcommunityBudgets,inwhich16placesidentifiedthenationalandlocalfundingtheyneedtodeliversolutionsforfamilieswithmultipleproblems.theintentionistobuildonthesuccessandknowledgegainedfromthe Total PlaceInitiative,whichpilotedplace-basedbudgetingasopposedtoorganisationalbasedbudgeting(seeHMtreasury2010foranevaluationoftheinitiative).

theGovernment’sintentionwiththecommunityBudgetsinitiativeisthatallplaceswilloperatecommunityBudgetsfrom2013/14togivelocalpeopleandcommunitiesfurthercontroloverresourcesandgivethempowertodeveloplocalsolutionsthatreallymeetpeople’sneeds.FromApril2011thisfirstphaseof16areascovering28councilsandtheirpartnershavebeenputinchargeofcommunityBudgetsthatpoolvariousstrandsofWhitehallfundingintoasingle‘localbankaccount’fortacklingsocialproblemsaroundfamilieswithcomplexneeds.Around40-50,000familiesexperiencemultiplesocial,economicandhealthaswellasseriouschildproblemswhilstalargergroupareatamuchgreaterriskofdevelopingtheseproblems.Around£8billionayearisspentonaround120,000familiesthathavemultipleproblems,withfundingonlygettingtolocalareasviahundredsofseparateschemesandagencies.Despitethisinvestment,thesefamilies’problemshavecontinued.thecommunityBudgetsinitiativeisintendedtodevelopamorecoordinatedandcooperativeapproachtoservicesatthelocallevelforthoseinneed:

• Asalfordfamilyrequired250interventionsinoneyearincluding58policecall-outsandfivearrests;five999visitstoAccidentandemergency;twoinjunctions;andacounciltaxarrearssummons.theircommunityBudgetledtothe£200,000costbeingcutbytwothirds.

• InIslingtonthecouncil,thenHs,JobcentrePlus,Probation,Police,housingandthevoluntarysectorispoolingstaffandover£6mofresourcesfortheircommunityBudgetplan.thiswillallowthemtogiveintensivesupporttofamiliesfacingparticularproblemsinthearea.

• theDepartmentforWork&PensionshasalsoannouncedanewprogrammeforthedisbursementofeuropeansocialFundmoneyoverthenextthreeyearstohelpfamilieswithmultipleproblemsovercomebarrierstoemployment.thenewprogrammewillbedeliveredbyprivateandvoluntarysectororganisationsworkingwithlocalauthorities.theprogrammewilloperateonapaymentbyresultsbasis,withprovidersrewardedforhelpingmovemembersofthefamiliestheyareworkingwithclosertoapointwheretheyarereadytoapplyforworkandgetajob.theaimwillthenbetohelpindividualsinthosefamiliesgetintoworkdirectly,orthroughmainstreamsupports.


3 This section is largely and selectively drawn from HM Government, 2010, UK Government’s Spending Review and the UK Government terms of reference for the second phase of the Local Government Resource Review in June 2011

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communityBudgets,whichtheGovernmentintendstorolloutnationallyby2013-14,aimtopoollocalauthorityandotherprovidersfundsfortacklingfamilies’needsintoonebudgetsocommunitiescandeveloplocalsolutionstolocalproblems.Byhavingonebudget,theintentionisthatcouncilsandpartnerswillbeabletoredesignandintegratefrontlineservicesacrossorganisationsandsharemanagementfunctionstoreducerunningcostsforthebestlocaloutcomes(www.communities.gov.uk/news/newsroom/1875618).

theUKGovernmentsetoutthetermsofreferenceforthesecondphaseoftheLocalGovernmentResourceReviewinJune2011.thispartofthereviewwillinvolvetwoareas,comprisinglocalauthoritiesandtheirpartners,workingwithWhitehalltoco-designhowacommunityBudgetcomprisingallspendingonpublicservicesinanareamightbeimplemented.thejointteamwilldevelopanoperationalPlanforeachareathatsetsoutwhatasinglebudget,oroptionsforpoolingandaligningresources,fortheplacewouldlooklike,theoutcomesitwoulddeliver,governancearrangements,theredesignofservicesrequiredtoachievetheoutcomesandhownewfinancialapproacheswouldwork.thesecondphaseoftheLocalGovernmentResourceReviewwillbecompletedbyApril2013(www.communities.gov.uk/documents/localgovernment/pdf/1933423.pdf).

ItistooearlytoassesstheimpactofcommunityBudgets.theinitiativehasbeenwidelywelcomedacrossthespectrumofserviceproviders,butconcernshavebeenraisedabouttheimpactofglobalexpenditurecutbacksonthecapacitytoeffectthedesiredchanges(Roxburgh,2010).ItshouldalsobenotedthatZurich’srecentbriefingpaperonNew World of Risk,outlinesthatintermsoforganisationaltransformation,‘theUKpublicsectorisfacingaperiodofdeepausterity.theautomaticreactiontoaneedforefficiencyisorganisationalrationalisation,ordownsizing,andimplementingsharedserviceoperations;yetneitherarewithouttheirowninherentrisks.’(www.newWorldofRisk.com)

http://www.communities.gov.uk/news/newsroom/1875618

http://www.communities.gov.uk/documents/localgovernment/pdf/1933423.pdf

http://www.NewWorldofRisk.com

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Strategic collaboration in local government chapter3:shortProfilesofstrategiccollaborations

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norris-tirrellandclay(2010:314)suggestthatthereframingofcollaborationtostrategiccollaborationoffersanincreasedlikelihoodofsuccessandpositiveoutcomesfromthecollaborativeventureaspublicandnon-profitmanagersbecomemorepurposefulaboutcollaborationdesignandimplementationprocesses,enablecollaborationinclusivenessandeffectiveness,decreasecollaborationfatigueandfrustrations,andproactivelysteertowardpositiveoutcomes.Page(2004:591-606)arguesthatcollaborationrequiresconsiderationoffourplatformsofaccountability,externalauthorisation,internalinclusion,resultsmeasurement,andmanagingforresults.(Page,2004).

Asnotedearlier,Austin(2010)recommendsdevelopingaPurposeandFitstatementwhenembarkingonanypartnership.APurposeandFitstatementisaworkingdocumenttoformaliseideasexchangedthroughouttheidentificationphase,akintoamemorandumofunderstanding(seesection2).norris-tirrellandclay(2010:319)furtheroutlinesixprinciplesofstrategiccollaborationtoprovidepracticalguidanceforpublicandnon-profitmanagerstobemoreeffectiveintheirdecisionsregardingcollaboration.theseprinciplesaresetoutinsection2.theprinciplescanactasimportantguidesforthoseembarkedoncollaborativeactivities.Furthermore,Bryson,crosbyandMiddletonstone(2006:52)haveidentified,22propositions(seeAppendix1)relatedtocollaborationoutcomesandsuccess.similarly,thenationalLeagueofcities(nLc)Guide to Successful Local Government Collaboration in America’s Regions(2006)reportprovideaseriesofstepsandtoolstoassistcouncilsdevelopeffectivecollaborativearrangements.thenLc(2006)reportemphasisesthatthesestepsandtoolsshouldassistcouncilsintheidentificationofcollaborativeoptions,planning,implementationandevaluation(seeAppendix2forspecificdetails)

thispaperhasofferedmanyexamplesofdifferentapproachestostrategiccollaboration.somehavebeenaroundforalongtime,suchasco-operativeendeavours;othersarenewer,includingpartnershipsandmergers.thispaperhashighlightedthearrayofoptionsforencouraginggreatercooperationandcollaborationacrossorganisationsandregions.Ultimately,itisaboutmakingstrategiccollaborationthenorm.collaboratingacrossjurisdictionallinesbecomestheexpectedapproachindealingwithcomplexissues,notjustaone-timeeventandbecomesanaturalingredientinanymanager’ssetofcapabilities.collaborationsarebasedonanunderstandingamongleadersandresidentsalikethatchallengesfacingcommunitiesandregionsrequireacrossingofmultipleboundaries(political,geographic,economic,racial,andethnic).

4.concLUsIon

Ultimately, it is about making strategic collaboration the norm. Collaborating across jurisdictional lines becomes the expected approach in dealing with complex issues

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chapter4:conclusion

4.

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Agranoff,R.,andM.McGuire(1998)Multi-networkManagement:collaborationandtheHollowstateinLocaleconomicDevelopment.Journal of Public Administration Research and Theory8(1):67–91.

Agranoff,R.,andM.McGuire(2003),Collaborative Public Management: New Strategies for Local Governments.Washington,Dc:GeorgetownUniversityPress

Apostolakis,c.(2007),Strategy for Collaboration: An Operational Framework for Local Strategic Partnerships,conferencepapersubmittedtotheInter-organisationalRelationstrack,BAMconferenceseptember,2007,UniversityofWarwick.http://eprints.bournemouth.ac.uk/17298/1/c_Apostolakis_-_Paper_on_collaborative_strategy.pdf

Austin,J.(2010)The Collaboration Challenge,2010,UsA:HarvardUniversity.

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http://www.hhh.umn.edu/people/jmbryson/pdf/cross_sector_collaborations.pdf


http://www.waitakere.govt.nz/havsay/pdf/royalcommission/effective-relationships.pdf

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Huxham,c.,ands.Vangen(2005),Managing to Collaborate: The Theory and Practice of Collaborative Advantage.newYork:Routledge.

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Miller,D.(2002)The Regional Governing of Metropolitan America,co:WestviewPress,pp.99-124

nationalLeagueofcities(nLc),2006,Guide to Successful Local Government Collaboration in America’s Regions,AReportfromnLc’scityFuturesProgram,Washington,D.c.http://www.lincolninst.edu/subcenters/regional-collaboration/pubs/Rc_for_Local_Govts_2006.pdf

norris-tirrell,D.andJ.A.clay(2010)Strategic collaboration in public and non-profit administration,AmericansocietyforPublicAdministration,newYork:cRcPress,taylor&FrancisGroup.

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Roxburgh,I.(2010),Mainstreaming Total Place,ResearchReport,WarwickUniversity:WarwickBusinessschool,http://www2.warwick.ac.uk/fac/soc/wbs/research/lgc/networks/consortium/totalplace/mainstreaming_total_place_final_report.pdf

Zurich&IPsosMori(2010)toUGHcHoIces:Different perspectives on long term risks facing the public sector and wider civil society,’http://www.zurich.co.uk/newworldofrisk/toughchoice/toughchoice.htm

Zurich(2011)Anewworldofrisk:risingareasofchallengeinachanginglocalgovernmentlandscape,executivesummary,briefingpaper,http://www.zurich.co.uk/internet/newworldofrisk/sitecollectiondocuments/newworldofrisk/newworldofriskexecutivesummary.pdf; full report: www.newWorldofRisk.com

UKGovernment’sspendingReview2010(http://www.hm-treasury.gov.uk/spend_index.htm);communityBudgetswereannouncedaspartofthespendingReview2010(www.communities.gov.uk/news/newsroom/1748116)

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http://www.dlg.nsw.gov.au/dlg/dlghome/documents/Information/Collaboration%20and%20Partnerships%20between%20Councils%20-%20A%20Guidance%20Paper.pdf



http://www.ssireview.org

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http://www2.warwick.ac.uk/fac/soc/wbs/research/lgc/networks/consortium/totalplace/mainstreaming_total_place_final_report.pdf

http://www.zurich.co.uk/newworldofrisk/toughchoice/toughchoice.htm

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http://www.communities.gov.uk/news/newsroom/1748116

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theDesignandImplementationofcross-sectorcollaborations:PropositionsfromtheLiteratureA Framework for Understanding Cross-Sector Collaboration and 22 Propositions

Bryson,crosbyandMiddletonstone(2006:45),notethatforunderstandingcross-sectorcollaborations,theydiscussthesalientdimensions,concepts,andresearchfindingsandsummarisethismaterial into22researchablepropositions.FigureAbelowillustratestheoverallframeworkforunderstandingcross-sectoralcollaborations.Bryson,crosbyandMiddletonstone(2006:45),outlinethat‘theframeworkemphasizessimplicityanddoesnotattempttocapturetheextentofinteractionamongorwithincategoriesorthenonlinearqualityofmanycollaborativerelationshipsandendeavours.’theinitialconditionscategoryoftheframework,‘focusesonbroadthemesrelatedtothegeneralenvironmentinwhichcollaborationsareembedded,thenotionofsectorfailureasanoverlookedpreconditionforcollaboration,andotherspecificandimmediatepreconditionsaffectingtheformationofcollaborations.’ForfurtherdetailsoneachofthecomponentsoftheframeworkrefertoBryson,crosbyandMiddletonstone(2006:45-52),http://www.hhh.umn.edu/people/jmbryson/pdf/cross_sector_collaborations.pdf

APPenDIx1

www.communities.gov.uk/news/newsroom/1748116

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Strategic collaboration in local government Appendix1

INITIAL CONDITIONS

General Environmentturbulence

competitiveandinstitutionalelements

Sector Failure

Direct Antecedentsconveners

Generalagreementontheproblemexistingrelationshipsornetworks

CONTINGENCIESAND CONSTRAINTS

typeofcollaborationPowerimbalances

competinginstitutionalLogics

OUTCOMES AND ACCOUNTABILITIESOutcomes

PublicvalueFirst-,second-,andthird-ordereffects

Resilienceandreassessment

AccountabilitiesInputs,processes,andoutputsResultsmanagementsystem

Relationshipswithpoliticalandprofessionalconstituencies

PROCESS

Formal and InformalForgingagreementsBuildingleadershipBuildinglegitimacy

BuildingtrustManagingconflict

Planning

STRUCTURE ANDGOVERNANCE

Formal and InformalMembership

structuralconfigurationGovernancestructure

Figure A:AFrameworkforUnderstandingcross-sectorcollaboration

Source: Bryson,J.M.,crosby,B.c.,andM.Middletonstone(2006:45)

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Proposition 1:Likeallinter-organizationalrelationships,cross-sectorcollaborationsaremorelikelytoforminturbulentenvironments.Inparticular,theformationandsustainabilityofcross-sectorcollaborationsareaffectedbydrivingandconstrainingforcesinthecompetitiveandinstitutionalenvironments.

Proposition 2:Publicpolicymakersaremostlikelytotrycross-sectorcollaborationwhentheybelievetheseparateeffortsofdifferentsectorstoaddressapublicproblemhavefailedorarelikelytofail,andtheactualorpotentialfailurescannotbefixedbythesectorsactingalone.

Proposition 3:cross-sectorcollaborationsaremorelikelytosucceedwhenoneormorelinkingmechanisms,suchaspowerfulsponsors,generalagreementontheproblem,orexistingnetworks,areinplaceatthetimeoftheirinitialformation.

Proposition 4:theformandcontentofacollaboration’sinitialagreements,aswellastheprocessesusedtoformulatethem,affecttheoutcomesofthecollaboration’swork.

Proposition 5:cross-sectorcollaborationsaremorelikelytosucceedwhentheyhavecommittedsponsorsandeffectivechampionsatmanylevelswhoprovideformalandinformalleadership.

Proposition 6:cross-sectorcollaborationsaremorelikelytosucceedwhentheyestablish–withbothinternalandexternalstakeholders–thelegitimacyofcollaborationasaformoforganizing,asaseparateentity,andasasourceoftrustedinteractionamongmembers.

Proposition 7:cross-sectorcollaborationsaremorelikelytosucceedwhentrust-buildingactivities(suchasnurturingcross-sectoralandcross-culturalunderstanding)arecontinuous.

Proposition 8:Becauseconflict iscommoninpartnerships,cross-sectorcollaborationsaremorelikelytosucceedwhenpartnersuseresourcesandtacticstoequalizepowerandmanageconflicteffectively.

Proposition 9:cross-sectorcollaborationsaremorelikelytosucceedwhentheycombinedeliberateandemergentplanning;deliberateplanningisemphasizedmoreinmandatedcollaborationsandemergentplanningisemphasizedmoreinnon-mandatedcollaborations.

Proposition 10:cross-sectorcollaborationsaremorelikelytosucceedwhentheirplanningmakesuseofstakeholderanalyses,emphasizesresponsivenesstokeystakeholders,usestheprocesstobuildtrustandthecapacitytomanageconflict,andbuildsondistinctivecompetenciesofthecollaborators.

Proposition 11:collaborativestructureisinfluencedbyenvironmentalfactorssuchassystemstabilityandthecollaboration’sstrategicpurpose.

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Strategic collaboration in local government Appendix1

Proposition 12:collaborativestructureislikelytochangeovertimebecauseofambiguityofmembershipandcomplexityinlocalenvironments.

Proposition 13:collaborationstructureandthenatureofthetasksperformedattheclientlevelarelikelytoinfluenceacollaboration’soveralleffectiveness.

Proposition 14:Formalandinformalgoverningmechanismsarelikelytoinfluencecollaborationeffectiveness.

Proposition 15:collaborationsinvolvingsystemlevelplanningactivitiesarelikelytoinvolvethemostnegotiation,followedbycollaborationsfocusedonadministrative-levelpartnershipsandservicedeliverypartnerships.

Proposition 16:cross-sectorcollaborationsaremorelikelytosucceedwhentheybuildinresourcesandtacticsfordealingwithpowerimbalancesandshocks.

Proposition 17:competinginstitutionallogicsarelikelywithincross-sectorcollaborationsandmaysignificantlyinfluencetheextenttowhichcollaborationscanagreeonessentialelementsofprocess,structure,governance,anddesiredoutcomes.

Proposition 18:cross-sectorcollaborationsaremostlikelytocreatepublicvaluewhentheybuildonindividuals’andorganizations’self-interestsandeachsector’scharacteristicstrengthswhilefindingwaystominimize,overcome,orcompensateforeachsector’scharacteristicweaknesses.

Proposition 19: cross-sectorcollaborationsaremostlikelytocreatepublicvaluewhentheyproducepositivefirst-,second-,andthird-ordereffects.

Proposition 20:cross-sectorcollaborationsaremostlikelytocreatepublicvaluewhentheyareresilientandengageinregularreassessments.

Proposition 21:cross-sectorcollaborationsaremorelikelytobesuccessfulwhentheyhaveanaccountabilitysystemthattracksinputs,processes,andoutcomes;useavarietyofmethodsforgathering,interpreting,andusingdata;andusearesultsmanagementsystemthatisbuiltonstrongrelationshipswithkeypoliticalandprofessionalconstituencies.

Proposition 22: thenormalexpectationoughttobethatsuccesswillbeverydifficulttoachieveincross-sectorcollaborations.

source:Bryson,J.M.,crosby,B.c.,andM.Middletonstone(2006:45-52),theDesignandImplementationofcross-sectorcollaborations:PropositionsfromtheLiterature,Public Administration Review,December2006,specialIssue,p44-55,http://www.hhh.umn.edu/people/jmbryson/pdf/cross_sector_collaborations.pdf



38


NLC (2006) Guide to Successful Local Government Collaboration

thenLcGuide to Successful Local Government Collaboration in America’s Regions(2006),reportprovideaseriesofstepsandtoolstoassistcouncilsdevelopeffectivecollaborativearrangements.thenLc(2006)reportemphasisesthatthesestepsandtoolsshouldassistcouncilsintheidentificationofcollaborativeoptions,planning,implementationandevaluation.

theGuide(nLc,2006)outlinesthatadvicefrommembersofthestrategicAlliancenetworkexecutivesuggeststhattobeeffective,collaborativearrangementsbetweencouncilsneedto:

• Havestrongpositiveleadership.thebenefitsofapartnershipmustbeclearlyarticulatedandeasilyunderstood

• establishaneffectivegovernanceregime,includingeffectiveinternalandexternalcommunications

• ensurethatpartnershipdevelopmentisinclusiveandreadilyacceptedbythepartners,staffandthecommunityserved

• Identifyandmanageallcosts,includingthosewithoutacleardollarvaluesuchastimeandinconvenience

• Managepoliticaldifferencestokeepthefocusonimprovingoutcomesforcommunities

• Focusontheoutcomestobeachievedthroughapartnership.theformingofapartnershipisnotanendinitself.thebenefitsmustexceedtherealcostofestablishingapartnership

• Balancecompetingprioritiesandtargets.theremustbeagoodmatchbetweentheobjectivesofthepartnershipandtheotherobjectivesacouncilwillhave

• Managechange.strategieswillneedtobedevelopedtogetoverthe‘we’vealwaysdoneitthisway’barrier.changebringsuncertainty.Beawareoftheimportanceofinformationflowandtheneedtoclarifyandreclarifywhatishappening

• selectanappropriateoperatingmodelthatsupportstheoutcomessought.

(NLC, 2006)

Basedonthethemesoutlinedabove,thefollowingsectionsetsoutthepracticalguidetodevelopingstrategicpartnershipscontainedinthenLcA Guide to

Successful Local Government Collaboration in America’s Regions(2006):

APPenDIx2

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Strategic planning/analysis

thefirststepforacouncilconsideringacollaborativerelationshipistoundertakepreliminaryanalysisthat:

• Identifiesneeds

• considersstrategicfit

• establishespriorities

• Analysesavailableresources

• establisheskeydirections

• setskeyobjectiveswithmeasurableperformancetargets

• Identifiesrisksandbenefits

Partofthisprocessisidentifying:

• Areasofcommonneedonaregionalorsub-regionalbasis

• Areaswherecouncilsdonothavesufficientcapacitytomeetaneedbutcandosoinpartnershipwithothers

• Areaswherepartnershipwithotherscanresultinoverallcostsavings

• opportunityforinnovativeapproachestocommonissues

• opportunitytoextendservicesonaregionalbasis

• skills,expertiseandresourcesthatcanbeofbenefittoothers

councilscanalsoconsider joiningwithothersinundertakingcommonstrategicplanningprocesses.thislevelofplanninginformstheidentificationofpartnershipoptions.

Leadershipisakeyfactorinthesuccessofanyproposedcollaborativerelationship.Leaderscanbecouncillorsandseniorstaffwhocanseethepotentialgainsofcollaboration,areabletoleadchange,engagestakeholders,anticipateissuesandfacilitatesolutiontocomplexproblems.Atallstagesoftheprojectit isessentialthatallrelevantstakeholdersareconsultedandthattheapprovalandsign-offbykeystakeholdersisobtainedbeforeprogressingtothenextstage.

Identifying opportunities and developing proposals

Basedonthestrategicanalysis,councillorsandstaff identifybenefitsandconstraintsandbegintoexplorepotentialareasofsharingwithothercouncils.Partnerswillbecouncilswithaneedandwilltoshareresources.theGuideemphasisesthatfromtheoutsetit isimportantthatparticipatingcouncilsshouldprogressivelyclarifyanddefinewhattheywantfromthearrangement;beclearabouttheleveloffinancial,intellectualandrealresourcestheycancommit,anddevelopcleardecisionmakingandproblemsolvingmechanisms.Generally,councilsagreeingtoparticipateorganiseamanagementgroupand

Appendix2

40


nominateaprojectmanagerfromamongtheirnumber.Keystakeholdersshouldberepresentedonthemanagementgroup.thisisavaluablemechanismforfacilitatingtheconsultationprocess.

Ifthepartnersarealreadypartofaregionalorganisation,anappropriatecommitteeorspecialistgroupmayalreadyexisttomanagethedevelopmentofaproject.theroleofthemanagementgroupistodevelopoptionswiththecapabilitytorealisetheoutcomessoughtfromtherelationship.todothisitmaybeusefultocomplete:

• Arisks/constraintsanalysistoassistinassessingthefactorsthatimpactonthesuccessofthepartnership

• Abenefitsrealisationanalysistoassistinquantifyingthebenefitstobegainedfromthepartnership.onthisbasisthedetailsofthearrangementcanbegintobefleshedout.thiswillincludetheidentificationofbusinessmodelsthatarelikelytosupporttheoutcomesthearrangementisseeking

Developing stakeholder consultation and engagement mechanisms

thesuccessofanycollaborativearrangementisdeterminedtoalargedegreebyhowstakeholdersperceiveits intentandbenefits.Importantinternalstakeholdersincludeelectedrepresentatives,seniorstaff,employeesandtheirindustrialandprofessionalassociations.Importantexternalstakeholdersincludevoters,ratepayers,specialinterest/lobbygroups,localbusiness,otherspheresofgovernment,mediaandmajorbusinessenterprises.externalstakeholdersmaybebasedinoroutsidethelocalgovernmentarea.ofmostrelevanceisthattheyhaveadirectinterestintheproposal.Itisimportantthattheinterest,views,knowledgeandskillsofbothinternalandexternalstakeholdersareunderstoodandcapturedatallstagesofcollaborativedevelopment,projectdesign,implementationandreview.Acomprehensivestakeholderanalysiswillassistcouncilsbetterunderstandhowstakeholderscancontributetoeffectivecollaborationandmanagetherisksposedbydiversestakeholderinterestsandperceptions.

Developing a business plan

Basedonthekeystrategicneedsidentified,opportunitiesandoptionsavailable,risksandbenefitsassessmentsandstakeholderfeedback,thenextstepistoprepareadetailedproposalandimplementationplanorbusinessplan.thisplanneedstodetail:

• thescope,levelandmethodofdeliveryoftheservices

• theproposedbudget,includingstartupcosts

4140


• Fundingoptions,includingabreakdownofcontributionsfromparticipatingcouncils,andfinancialanalysisincludingbestandworstcasescenarios

• establishmentofrequiredmanagementandbusinessmodelandoperatingprocedures

• staffingarrangements.Allcollaborativearrangementsneedtotakeintoaccountissuesforstaffwhowillberequiredtoworkacrosscouncilboundaries.theseissuesneedtobecarefullyconsideredandnegotiatedwithrelevantindustrialorganisations

• Requiredindustrialagreements

• Requiredcontractsforsupplyofservices

• statutoryrequirementsandhowtheywillbeaddressed

• Riskassessment–identify,analyse,prioritiseandmanagerisks

• Assumptionsunderpinningtheplan

• conflictresolutionprocedures

• Advertisingandcommunityinformation

• evaluationcriteriaandprocessincludingprovidinganswerstothefollowingquestions:

− whatistobemeasured?

− whatinformationistobecollectedtoachievethismeasurement?

− wherefrom,howandwhen?

− whowillberesponsibleforcollectingit?

− howwilltheinformationberecorded,analysedandreported?

• Implementationscheduledetailingtimeframes,tasksandresponsibilities

• exitstrategies

thedevelopmentofthisplanneedstobepartofanongoingconsultationandnegotiationprocesswithmembercouncilsandotherkeystakeholders.

Formalising the arrangements between the parties

Business structure

oncethecouncilshavereachedagreementinprincipleregardingthenatureofthebusinessproposedtobeundertakenbyanystrategiccollaboration,itisimportantthattheproposedarrangementsareformalised.thereareanumberofdifferentstructuresthatcouncilshavesuccessfullyusedtoformalisetheagreementbetweenthemtoundertakejointprojectsorresourcesharingactivities.theserangefromenteringintoamemorandumofunderstandingto

Appendix2

42


documenttheintentionsoftheparties,throughtotheformationofaseparatecorporateentity.themostappropriateformofstructuretoadoptwhenformalisingthearrangementsbetweenthecouncilswillalwaysdependontheindividualcircumstancesoftheactivitiesthatthepartiesproposetoundertake.Allpartiestotheproposedarrangementsshouldseektheirownindependentexpertadviceregardingtheappropriatenessofanyproposedarrangement.thiswillensurethattheinterestsofthecouncilandthecommunityitservesareadequatelyrepresentedandprotected.Regardlessofthestructurethecouncilschoosetoadopt,whenevaluatingitssuitabilityatleastthefollowingmattersshouldbeconsidered:

• Membershipofthearrangement

• Rolesandresponsibilitiesoftheparties

• thelifeofthearrangement

• thebusinessscope

• theresourcecontributionbyeachcouncil

• Reportingandotheraccountabilityrequirements

• Howdecisionsaretobemadeandrecorded

• Howconflictsaretoberesolved

• Howotherparties(includingothercouncils)interactwithandaccessthebenefitsarisingfromthepartnership

• expectedoutcomesordeliverables

• Howthesuccessofthearrangementistobereviewedandevaluated

• Howthearrangementcanbeterminated

• Insuranceandindemnities

• Responsibilityforandallocationofcostsandliabilities

• ownershipofanyproperty,includingintellectualpropertyutilisedoracquiredbythealliance

• statutoryandregulatorycompliance

Local Government Act statutory obligations

InallstrategicAlliancescouncilsmustensurethattheyfulfiltheirstatutoryobligations.

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Commence collaborative arrangement/partnership

theprocessofmonitoringinvolvesthecollectionofinformationabouttheoperationoftheresourcesharingarrangementsandtheeffectivenessofthearrangements,asmeasuredagainsttheirobjectives.oncetheinformationhasbeengatheredtheprocessofevaluationcommencestohelpimprovethecollaborativearrangement.evaluationincludesaskingsuchquestionsas:

• Havethenewarrangementsachievedtheirobjectives?

• shouldresourcesharingbecontinuedinitspresentform?

• cantheoperationbeimproved?

• Ifso,whatmodificationsarenecessary?

• shouldtheoperationbeexpanded?

• shouldotheroptionsbeexplored–e.g.,contractingout?

Appendix2

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