The use of contracting out : a case study of decision-making and organisational learning in local government

One objective of government is to provide services at least cost whilst maintaining or improving service quality. While this may be an important objective, questions are being asked whether services can be provided more efficiently and effectively by the private rather than by the government sector. The shift of service provision from the public to the private sector is known as outsourcing or contracting out. The objective in this study is to critically examine whether the contracting out of services by local government to the private sector is an efficient management practice.

The contracting out of Parks and Grounds Maintenance services for the City of Kingston in the State of Victoria, Australia, is used as an exploratory case study to identify the variables associated with management decision-making in the contracting out process. Factors relevant to the contracting out decision such as the criteria used in selecting a contractor; the evaluation of a contractor’s performance; and any subsequent changes to management practice relating to the contracting out of the services are identified and discussed.

Political forces were found to be an important consideration in the initial contracting out decision, and the selection of a contractor was influenced by the potential to avoid costs. It was also found that under-bidding and associated cost /profit constraints lead to contractors engaging in non-sustainable environmental practices which resulted in the degradation of the local government’s Parks and Gardens assets. A sustainable asset management philosophy as opposed to an avoidable costs approach now underpins the contracting out process to ensure the preservation of such assets. Further, administrative processes have been revised to make tender specifications more prescriptive, critical components of services have been brought back in-house, and management practices have been amended so that a greater degree of control is exercised over contractors’ activities.

The Victorian local government youth charter : opportunities and dilemmas

Since 2004, a process has been under way to support and enhance the role of Victorian local government in youth engagement – the centrepiece of which is a youth charter guide. This paper, written by one of the project designers, explores the context of local government and the intentions of the development project. It is argued that this not only involves organisational change, but re-thinking foundational assumptions about participation, democracy and young people. The project has provided opportunities to support and enhance youth–local government engagement. It also illuminates many dilemmas that relate to change in these contested social systems.

Intellectual capital reporting : an examination of local government in Victoria

The objective of this research is to examine how Victorian local government annual reports disclose information on intellectual capital. The idea of intellectual capital has become part of the working organisational vocabulary, and is widely held in management literature to be the pre-eminent economic resource and a key driver of efficiency, effectiveness and continual improvement in the private and public sectors. Under the recent Best Value Victoria policy, local governments are under increasing pressure to acquire and apply intellectual capital to improve responsiveness to community needs and meet cost and quality criteria. Annual reports exist as vehicles for communication, accountability and decision making. This study examines how the internal, external and human categories of intellectual capital are represented in the annual reports for the 2000 year for 77 of the 78 Victorian local
governments.

Using a matrix approach derived from Petty and Guthrie's (2000) framework, content analysis is employed to examine the incidence and intensity with which specific elements of intellectual capital are reported. This research indicates that generally the content of annual reports have not provided clear and coherent representations of how local government in Victoria are developing, applying and measuring intellectual capital. The nature and extent of intellectual capital reporting varies considerably between councils, and the disclosure of the human elements of intellectual capital is particularly underdeveloped. The findings suggest that more research in this area is needed to determine the extent to which intellectual capital should be disclosed and whether the current paucity of disclosure stems from disinterest or technical problems. There is also the need for further research into the need to identify and describe elements of intellectual capital, and into effective
reporting strategies and techniques. This may lead to the development of a 'best practice' reporting model for intellectual capital. Furthermore, the preliminary investigations indicate a perceived need to raise the consciousness of public sector
managers as to the existence of intellectual capital within their organisations, and ultimately lead to more informed and effective management of this asset.

Organisational development in local government

To a significant extent, Australian local government CEOs have opportunity to enhance their current understandings of and attitudes towards human resource imperatives such as organisational culture, employee empowerment and non-linear management practices. Improvements in these areas could better achieve organisational results as HR strategy intentions would be aided by congruent applications.

Local government amalgamation

A study of political processes relating to amalgamating local government councils within a Victorian region during a six month period in 1993. A framework for the analysis is developed.

An audit of local government planning tools for their potential use in addressing community food and nutrition issues

Issues addressed: This project aimed to identify how local government planning tools could be used to influence physical and policy environments to support healthy eating behaviours in communities.
Methods: An audit of Queensland's legislative and non-legislative local government planning tools was conducted by a public health nutritionist to assess their potential use in addressing strategies to achieve positive nutrition outcomes. Ten strategies were identified and covered the following themes: improving access to healthy foods and drinks; increasing access to breastfeeding facilities; decreasing fast food outlet density; and unhealthy food advertising. 
Results: The audit found that all of the 10 strategies to achieve positive nutrition outcomes could be considered through three or more of the planning tools.
Conclusion: Based on the findings of this audit, local government planning tools provide opportunities to address food and nutrition issues and contribute toward creating physical and policy environments that support healthy eating behaviours.

Policy change to create supportive environments for physical activity and healthy eating : which options are the most realistic for local government?

The objective is to identify and test regulatory options for creating supportive environments for physical activity and healthy eating among local governments in Victoria, Australia. A literature review identified nine potential areas for policy intervention at local government level, including the walking environment and food policy. Discussion documents were drafted which summarized the public health evidence and legal framework for change in each area. Levels of support for particular interventions were identified through semi-structured interviews conducted with key informants from local government. We conducted 11 key informant interviews and found support for policy intervention to create environments supportive of physical activity but little support for policy changes to promote healthy eating. Participants reported lack of relevance and competing priorities as reasons for not supporting particular interventions. Promoting healthy eating environments was not considered a priority for local government above food safety. There is a real opportunity for action to prevent obesity at local government level (e.g. mandate the promotion of healthy eating environments). For local government to have a role in the promotion of healthy food environments, regulatory change and suitable funding are required.

Geographical Information Systems (GIS) and their role in sustainable planning : a case study from a Local Government Area (LGA) in Australia

A case study is used to demonstrate the application of Geographical Information Systems (GIS) to inform sustainable development. The suitability of the landscape to support tourism accommodation in a Local Government Area (LGA) is modelled by integrating existing datasets, including conservation areas, residential zones, major roads and known locations of tourism operators into a logistic regression framework. By using a data-driven approach an indication of the relative importance of each explanatory variable can be accounted for, therefore informing planners of the importance of different assets. In a region where tourism is reliant upon natural features, this use of information systems in conjunction with quantitative statistical modelling can value-add to existing datasets. The provision of this kind of knowledge is important as it would otherwise not factor into the decision-making process had the datasets been considered independently of each other – a concept that applies to both the public and private sectors.

How can the impact of cultural development work in local government be measured? Towards more effective planning and evaluation strategies

The field of cultural development in local government is relatively new, with most councils only having dedicated staff or teams within the last ten to fifteen years. Challenges are associated with that newness in the areas of planning, goal setting and formal evaluation of achievements in relation to goals. How can the best decisions be made about what is needed? How can the outcomes of that work be evaluated? What should be measured and how? This paper explores these challenges and presents some solutions. Program Logic is introduced as a methodology for effective planning and evaluation of cultural development work in local government. The need for both performance and outcome evaluation of cultural development work is discussed, as are the levels of evaluation required; considering the contribution of individual workers, departments, whole of council and the overall community outcomes. Factors beyond the influence of local government, which impact the outcomes of arts initiatives, are also considered in arguing that more sophisticated evaluation processes are required.

Internal organizational factors influencing sustainable implementation of information systems : experiences from a local government in Indonesia

Many information systems (IS) studies have found that information systems implementation sustainability is determined by internal organizational factors. In general these studies have been conducted in private organizations and these factors may not be applicable to IS implementations sustainability within public organizations. This study examines what internal organizational factors play a role in the sustainable implementation of e-government initiatives using a case study of local e-government in Indonesia. It also considers how these factors contribute to sustainable systems by strengthening stakeholders’ commitment through invoking feelings of involvement as responsibilities are assigned to them. The study concludes that the internal factors contribute to collective action that influences sustainable implementation of information systems. Limitations and future research are briefly discussed.