By Al Poole

As referenced in the title of my first article “The City of Red Deer’s Financial mess – KPMG report outlines failure of council to control spending” changes are required to get back to financial health. The City of Red Deer Financial troubles are not the result of one Council term. The pattern of declining performance has continued over several terms. To that end, it is important to remind you that five members of the existing Council, including the Mayor, have served several terms.

It seems more Council experience does not necessarily lead to better performance or results. In fact I suggest extended time on Council is a negative where those individuals are more likely to keep repeating past actions / behaviour. I am supportive of a maximum of two consecutive terms (one term equals 4 years) for Councillors and the Mayor.  Two term limits would see Council with members having some previous experience for continuity of work and new people with new energy, fresh ideas and lots of questions. I am convinced we would see better performance over time.

I recall an old Human Resources adage: past behaviour is the best predictor of future behaviour unless there are some very specific, identifiable, changes in behaviour / actions, I believe it to be a general truth. Read that line again and then think about it as you read the next few paragraphs.

As important as they are to guide decisions, our financial systems were allowed to become outdated and ineffective over several Council terms. How can we believe the same people providing oversight will make it better? Change has to start with the Council. Perhaps a significant change in Council will lead to more helpful guidance for the City Manager during the next Council term.

How did it get so bad?  A very good question without an obvious answer. I have no doubt that the people involved in these roles as Councillors, Mayors, or City Managers were trying their very best to do good work. Sadly, if you are on the wrong course — you are sure to wander into trouble. The City Manager and the General Managers are key players to achieving the results expected by Red Deer citizens.

However, the Mayor and Council are accountable to provide the requisite structure, guidance and leadership, as outlined in the Municipal Government Act (MGA), for City Manager  to deliver the expected results. I believe the recent Mayors and Councils have failed to provide the necessary leadership over a number of terms.

In addition to some new energy and talent on Council there are three structural areas that must change if we are to have any hope for a step change in City performance: they are governance, policies and bylaws, and key performance metrics.

The MGA establishes Council accountability to deliver results through action by City Administration by:

     i) developing, reviewing, and enforcing the policies and bylaws required to achieve the services and programs expected by Red Deer citizens.

     ii) providing guidance to the City Manager by setting clear performance expectations and regular performance reviews.

     iii) assuring overall organizational performance and, if necessary, engaging a 3rd party to assess and evaluate organizational performance.

As pointed out in the earlier reference KPMG report ” Current Analysis Section” Councils  have failed to meet basic obligations as provided in the MGA. Throughout this period of declining performance the City Managers own a portion of this issue as well. In particular the MGA directs that the City Manager pay attention, in particular, to financial systems.

I have spent time with the current City Manager and believe she has a reasonably good handle on organizational challenges within her departments and with Council relationships. It appears she was instrumental in starting a process to improve  financial systems. My only wondering is, does she have the leadership courage to effect change?

In my opinion here are three things that must happen when the next Council term begins:

1) Council with the City Manager must receive Governance training from a 3rd party (not staff).

The provider of the training will prepare a complete set of revised policies for the Council to review and approve.  These policies will be written in a manner to have Council functioning at the proper level with clear understanding for the direction they provide the City Manager.

2) The City Manager should present a set of key performance indicators (KPI) for Council debate, discussion and approval.

Here is a sample of what the KPIs should include:

          i) Safety Performance: incidents, recordables, lost time

          ii) % overtime

         iii) % turnover

         iv) % unplanned work (this is the most expensive work and must be minimized)

If when measured performance against these KPIs is unsatisfactory it points to higher costs as well as employee morale / culture issues.  If they are in a satisfactory performance range, the Council should have confidence in the organization performance.

Other categories requiring metrics include but are not limited to: labour costs as % of expense (for employees and for contactors); complaints – internal and external; Policing; Emergency Services.

3) As recommended in the City Manager Handbook, the City Manager and full Council will engage in a joint planning session and repeat it every year.

The Handbook states that “This type of planning session should provide an opportunity for the council to establish priorities and objectives for the year and for the longer term. It will also serve as a forum through which a common vision/direction can be established not only between the council and the City Manager but also among the council members. Also, it serves as an opportunity for council members and City Manager to share and discuss ideas in a less formal setting and build a team environment.” The pursuit and establishment of shared goals and objectives is a powerful tool.

I recommend the first planning session should involve third party facilitator as this is specializes, important, and, it is hard work. Any initiatives / decisions arising from this planning session have to go to a formal Council meeting for further discussion and adoption.

I must point out that items like Strategic Plans and Red Deer 2050 are not helpful tools. They do nothing to delineate critical work from important or routine work.

I hope this is of some help as you decide on who to vote for on October 20th.

In my next article I will share who I am voting for and why.

Respectfully

Al Poole

Al is interested in effective leadership and governance at City Hall.

Al Poole is retired Site Leader of NOVA Chemicals, Joffre site.

This is the 2nd of three articles regarding the Oct 20 municipal election.