HR Green ASD for Local Governments Handbook - Executive Summary - Manual (Page 14)

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Political data accrue from engaging employees and citizens with strategic planning and
process reengineering.
Organizational Readiness for ASD Options
The results of our analyses across these five types of ASD options suggests that municipalities need to consider
both the strategic nature of their service delivery options, and whether their organizational culture is ready to embrace, develop, and
implement an ASD strategy.
Figure 7.1 arrays the constellation of ASD options in two dimensions. The vertical axis represents the time
frame that is required for developing and implementing an ASD option. The horizontal axis represents the
degree to which the ASD option involves tactical versus strategic development and commitment. The degree
of required change in organizational culture (from a stable and incremental to a flexible and strategic
orientation) increases from the lower left to the upper right quadrant. Concomitantly, the degree of
complexity in developing and managing an ASD option also increases from the lower left to the upper right
on the diagonal.
Also presented on the diagonal is a shift in the consequence of management error, and the dynamics of risks
and rewards. A short term tactical decision to purchase services of a GIS specialist from a private firm or
another local government could prove inadequate to your organization’s needs, or the specialist may not
provide the level or quality of desired service. No problem, you simply change vendor and find someone else.
The consequence of erring in your decision is short term and can be remedied rather easily.
Figure 7.1.
Long
Short
Now take the example of solid waste collection service. If you contract for the service to a private firm, do
you give up your trucks? How do get them back if the private firm fails to deliver satisfactory performance
(whatever the benchmark)? If you use a managed competition approach, you could have ½ internal and ½
external provisions, and you can retain ability to plow snow, pick up garbage, etc.
 The process to get there requires a strategic decision to dramatically change the service modality,
substantial employee training and radical organizational culture change.
 If one errs in a long term managed competition framework, there are remedies, but the investment is
deeper in terms of organizational change and the time frame longer (3-4 years) in order to get viable
vendors to bid.
 Consequently, fixing any problems in this framework requires skilled municipal employees who can
manage the vendor relationship flexibly within the contractual framework, and the contract itself
must have options to deal with problems that arise. The consequences of a management error are
thus significantly higher than a simple purchase of services contract.
Interlocal Agreements
Service
Consolidation
Public Private
Partnership
Managed
Competition
Contracting/ Outsourcing
T
ime