Success andSustainability

Presentation

Business Excellence Global Conference 2009 - Singapore

Nick Heath

General Manager

Hobart City Council

Australia

The Hobart City Council

• Incorporated in 1846 – 2nd oldest city

• Only city with both coastal and alpine regions

• 61% of area is bushland (public and private)

• 451 full time employees (720 incl. casual/part time)

• 2009/10 budget expenditure $90M

The Hobart City Council

• Residential & business properties – 20,000• Population of 48,000• 78 sq. kilometres• Provides over 300 services (mostly in- house)• Large facilities e.g. The Hobart Aquatic Centre • Major events e.g. Salamanca Market, Taste of Tasmania

“The quest for continual improvement will lead to

self-determination”

N. Heath2009

What does business excellence mean to us?

• Continuous improvement• Systemic change• Personal development• Pride and confidence

• Momentum• Adding value to our community• Future relevance• Sustainability

Development and Growth

Maturity

1999 Guided Self Assessment

2000 External Evaluation - Foundation Award

Our approach to BE

Phase 1 Initiation and Learning

Our results - 2000Leadership and

InnovationStrategy

and PlanningData, Info' and

KnowledgePeople Customer and

Market FocusProcesses,

Products and Services

Business Results

1.1   - Strategic direction

2.1 - Understanding the

business environment

3.1 - Collection and interpretation of data

and information

4.1 - Involvement and

commitment

5.1 - Knowledge of customers and

markets

6.1 - Innovation process

7.1 - Indicators of success

1.2   - Organisational culture

2.2 - The planning process

3.2 - Integration and use of information for

decision-making

4.2 - Effectiveness and

development

5.2 - Customer relationship

management

6.2 - Supplier and partner

relationships

7.2 - Indicators of sustainability

1.3   - Leadership throughout

the organisation

2.3 - Development and

application of resources

3.3 - Creation andmanagement of

knowledge

4.3 - Health, safety and well-being

5.3 - Customer perception of value

6.3 - Management and

improvement of processes

1.4 - Environmental and

community contribution

6.4 - Quality of products and

services

Promising 40-59% Excellent 80-100%

Immature 0-39% Good 60-79%

2002 Internal Self Assessment

2004 Internal Self Assessment

2005 External Evaluation - Silver Award

Our approach to BE (contd.)

Phase 2 Proactive and Innovative

Our results - 2005Leadership Strategy

and PlanningKnowledge

and Information

People Customer and Market Focus

Innovation, Quality

and Improvement

Success and Sustainability

1.1 - Strategic direction

2.1 - Understanding the

business environment

3.1 - Collection &

interpretation of data

and information

4.1 - Involvement &

commitment

5.1 - Knowledge of customers &

markets

6.1- Innovation process

7.1 - Indicators of success

1.2 - Organisational

culture

2.2 - The planning process

3.2 - Integration &

use of information for

decision-making

4.2 - Effectiveness &

development

5.2 - Customer relationship

management

6.2 - Supplier & partner

relationships

7.2 - Indicators of sustainability

1.3 - Leadership throughout

the organisation

2.3 - Development &

application of resources

3.3 - Creation &management of

knowledge

4.3 - Health, safety

& well-being

5.3 - Customer perception of value

6.3 - Management &

improvement of processes

1.4 - Environmental &

community contribution

6.4 - Quality of products &

services

Promising 40-59% Excellent 80 -100%

Immature 0-39% Good 60-79%

2007 Internal Self Assessment

2008 External Evaluation - Gold Award & Excellence Medal

Our approach to BE (Contd.)

Phase 3 Sustainability and Belief

Our results - 2008

Leadership Strategy and Planning

Knowledge and Information

People Customer and Market Focus

Innovation, Quality

and Improvement

Success and Sustainability

1.1   - Leadership throughout the organisation

2.1 - Strategic direction

3.1 - Generating, collection and

analysing the right data to inform

4.1 - A great place to work

5.1 - Gaining knowledge of

customers and markets

6.1 - Identification and management

of processes

7.1 - Measuring and communicating organisational performance

1.2   - Leading the organisational

culture

2.2 - The planning process

3.2 - Creating value through applying

knowledge

4.2 - Building an organisation

capability through its people

5.2 - Effective management of

customer relationships

6.2 - Process improvement and

innovation

7.2 - Decision-making based on key stakeholders'

perception of planned outcomes

1.3   - Society, community & environmental

contribution

5.3 - Customer perception of value

6.3 - Process outputs

Promising 40-59% Excellent 80 -100%

Immature 0-39% Good 60-79%

Our approach to QA

1997 - ISO 9001 QMS certification for our project development unit.

1997 - ISO 9002 QMS certification for our outdoor workforce

2004 - ISO 14001 EMS certification for our waste engineering and refuse disposal site operations.

2006 - ISO 9001 QMS certification for all Council activities

2007 - AS17025 accreditation to laboratory for analytical testing services

2008 - Introducing an Integrated Management System (QMS, EMS, OH&SMS)

Our approach to QA

BEF & QA rationale

BusinessExcellence

Quality Assurance

Building critical mass Achieving cultural change

Continuous Improvement Inertia

Social responsibility, sustainable business excellence

The BEF in conjunction with QA maintains our focus on:

- Organisational and community requirements (the “soft factors” *)

- Operational system and process development and improvement

(the “hard factors” *)

* see Koo, H & Tan, K (2002) Using the ABEF to achieve sustainable business excellence. Nat. Uni. of Singapore, in Corp. Soc. Resp. Env. Mgt. 9, 196-205

Our organisational growth

Informal Systems

Filling Gaps

Framework Categories

Formalised Systems

Review & Improvement

Living the Principles

Critical mass Cultural change

Learning Proactive Innovative Sustainable

Belief

Self-determination

Principle 1: Leadership…lead by example, provide clear direction…

Pre 1999 2008

• Token Vision, Mission and Values

• VMV developed 2001, updated 2006 to incorporate 2025 Community Vision

• Minimal employee delegation / leadership opportunity

• Broad delegations, leadership/coach training for senior, middle and aspiring managers

• Limited culture of participation and continuous improvement

• Considerable voluntary take up of opportunities to participate in project and improvement teams

Principle 2: Customers…understand what markets and customers

value…use to drive strategy, products, services

Pre 1999 2008

• Limited monitoring of progress or strategy

• 20 year strategic framework & performance measurement framework

• Limited appreciation of customer identification and needs

• Clear understanding of customer base and systems to identify needs

Principle 3: Systems Thinking…continuously improve the system…

Pre 1999 2008

• Variable understanding and ownership of processes to achieve desirable outcomes

• Controlled documentation for all core processes and understanding of inputs, outputs and outcomes

• Defined ownership & responsibility for all core processes

• Encouragement to work on the system

Principle 4: Peopledevelop and value people’s capability...to

change and improve organisation

Pre 1999 2008

• Task based teamwork • Encourage functional, improvement related, strategic, cross divisional teams

• Limited opportunity to voice employee concerns

• Benchmarked Employee Opinion Surveys

Principle 5: Continuous Improvementdevelop agility…based on a culture of continual

improvement, innovation, learning

Pre 1999 2008

• No corporate wide structured approach to continual improvement

• BEF/ADRI, QA to all Council activities

Principle 6: Information & Knowledge…use of data, info’ & knowledge to understand

variability...improve decision making

Pre 1999 2008

• Establishing corporate library • Library evolved from storage to corporate research facility

• Developing electronic systems • Web based access (Council Business Centre) to all corporate documentation

• Minimal performance measurement undertaken

• A developing culture of measurement (quantitative and qualitative) at all planning levels

Principle 7: Corp. & Social Responsibility...ethically, socially and environmentally

responsible…

Pre 1999 2008

• Primarily operated within prescribed statutory and regulatory functions

• Promoting support for diverse community programs

• Promoting support for environmental initiatives

• Building strong stakeholder relationships

Principle 8: Sustainable Results…focus on sustainable results, values &

outcomes…

Pre 1999 2008

• 5 year planning & reporting systems

• 20 Year community vision, strategic plan, planning & performance framework

• Limited strategic & organisational performance management

• Strategic measurement system, measurement & reporting framework

Sustaining our achievements

By an irrevocable commitment to:

• Having a clear direction

• Involving the community – understanding its

needs and expectations

• Empowering the employees

• Understanding and improving the processes –

being innovative

• Keeping “the foot on the pedal” – no wavering

we --------

---- are able to determine our future by having a confidence

in our ability to adapt to changing circumstances.

Our future

“The Hobart City Council is a sustainable organisation,

acknowledged for its capital city role and is internationally recognised as

an organisation of excellence”

N. HeathApril 2009

Corporate strategies

• Regional Land Use Strategy

• 20 Year Financial Strategy

• Climate Change Action Plan

• Inner City Development Plan

• Social Inclusion Plan

Corporate strategies

• Employee Wellbeing Strategy

• Sustainable Transport Strategy

• Capital City Promotion

• Pursuing Excellence Hobart

Category 8 – Social Inclusion

Category 8 explores how a community focused organisation works with its community to develop appropriate programs, services and support to build strength, develop resilience and to acknowledge and value diversity within their communities.

Category 8 –Social Inclusion

Item 8.1 - Building Connected Communities

• well planned community infrastructure can

link communities

• promote interaction and develop a strong sense of neighbourhood

• promote affordable living options, effective transport and economic participation

Item 8.2 - Building Strong & Resilient Communities

• Encourage participation in community life

• Value diversity and create opportunities for shared experiences

• Build inclusive and vibrant communities

• promote healthy lifestyles, facilitate community safety, well being and mutual support

Category 8 –Social Inclusion

Questions

Hobart City Council