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HomeMy WebLinkAbout06.08.09 Work Session Packet City of Farmington 430 Third Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation. the City of Farmington provides quality services that preserve our proud past and foster a promisingfuture. AGENDA CITY COUNCIL WORKSHOP JUNE 8, 2009 6:30 P.M. CITY COUNCIL CHAMBERS 1. CALL TO ORDER 2. APPROVE AGENDA 3. 2010 BUDGET DISCUSSION 4. STRATEGIC PLANNING SESSION - June 26, 27, or 29 5. ADJOURN PUBLIC INFORMATION STATEMENT Council workshops are conducted as an informal work session, all discussions shall be consideredfact-finding, hypothetical and unofficial critical thinking exercises, which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of aformal City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as aformal expression of the City's position on any given matter. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. City Administrator SUBJECT: 2010 Budget Workshop Meeting DATE: June 8, 2009 INTRODUCTION The main purpose for the workshop scheduled for Monday, June 8,2009, is to establish some guidelines as we proceed with the budget preparation. I have attached for your review the following items: 1. Budget Worksheet with Options This is the budget worksheet presented early in 2009 when the budget was amended due to the reduction in Market Value Homestead Credit (MVHC). The reason for providing this document is to review some of the objectives and solutions that were presented in this effort. 2. Resolution Approving Budget Amendments for 2009. This document is provided as a quick reminder of what adjustments were made in 2009 following staff recommendations. 3. 2010 Budget Preparation Worksheet Part 1 This information is provided to outline the items which staff feels were pre-approved by City Council noting state mandates we will be dealing with over the next three years and some objectives that we would like to propose to the Council. What we are also trying to note, is that we are looking at providing guidelines not just for 2010, but laying out a spreadsheet that will show the budget for the next three years. This is our attempt to try to address the concerns in a positive way and not have to agonize over them each of the budget years. 4. 2010 Budget Preparation Worksheet Part 2 In this part of the worksheet, we would like to note that a lot of the items in reference to employee benefits would be best served to be handled very carefully and to limit discussion. We will be working on this through our labor relations efforts, but for serious consideration this would require a closed session to go over those strategies. The two Cmuller/Herlofsky/Council Memos/2DID Budget Workshop items on this worksheet that are most important are that the budgets have been reviewed by departments for 2009, and we have determined that all of the non-labor budget parts of the expenditures can be held constant over the next three years. This leaves us with considerable discussion what to do in the labor portion during this same time. That is where further work will take place. The next item on this sheet relates to two revenue enhancements that were brought to the Council previously - the streetlight utility and the franchise fee for gas and electric. Staff is still recommending that a street light utility fee be instituted as part of our utility billing and we feel this will generate $200,000 per year. Regarding the franchise fee for gas and electric, with all the other issues going on, we would like to recommend that this be used as a seal coat revenue source. We would like to change the whole process of seal coating where it would still be done on a seven-year basis, but that the revenues associated with it would come from a franchise fee, which are the same agencies that use our right-of-way. The money from this franchise fee would be used to cover seal coating costs. Anyone having a seal coat in 2009 would have to pay the assessment. 5. Spreadsheet Showing 2010,2011,2012 This is a summary sheet showing the objectives and how to accomplish it from a monetary standpoint for the next three years. Weare looking for Council discussion and assistance in recognizing our assumptions and allowing us to proceed in this manner. Rr.,.P. eetfu 1l.~,SUbmitte. i:' , , 7 _ / J ~"/ . ~::J fVL-l> Peter J. 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Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Roland, Finance Director SUBJECT: 2009 Budget Amendment - Finance DATE: April 6, 2009 INTRODUCTION The 2009 budgeted revenues and expenditures require revision as discussed with Council at the March 2,2009 meeting and March 9,2009 workshop. . DISCUSSION & BUDGET IMPACT As discussed, the Council has already approved by motion the following expenditure reductions which total $212,600: . reducing the ALF contribution by $12,400 . eliminating the contribution to the fIre relief association by $70,200 . reducing seasonal staff by $30,000 . reducing employee salaries, PERA and FICA by $100,000 From the workshop on March 9th, the following adjustments were recommended by Council: . increasing MSA maintenance revenue by $20,000 (to actual amount received) . reducing police overtime by $22,400 . charging engineering staffmg costs to City projects (reduction of $20,000) Two additional adjustments are proposed: . increasing Township Fire Contract revenue by $50,000 to more closely reflect the activity level and the actual amount received . decreasing training budgets by $25,000 to reflect elimination of out of state training expenses for 2009 The net effect of all these adjustments offsets the potential loss of $350,000 in Market Value Homestead Credit (MVHC) which is proposed in the Governor's budget. 19-2 The following chart reflects the changes outlined in this memo. REVENUES General Property Taxes Licenses & permits Fines & Forfeitures Interest Intergovem mental Charges for services Miscellaneous Total Operating Revenue Transfers in: Total Transfers In Total Revenue EXPENDITURES Administration Human Resources/Information Tech Finance Community Development Police Fire Engineering Municipal Services Parks & recreation Total Expenditures Transfers out: Recreation operating Total transfers out Total Expenditures Increase (decrease) in fund balance Fund Balance beginning of year Fund Balance end of year ACTION REOUESTED change 2008 2009 approved changes 2009 Actual Adopted 3/212009 4/6/2009 As Revised $ 6,630,695 7,122,799 (350,000) 6,772,799 360,068 306,450 306,450 75,522 109,000 109,000 218,602 293,000 293,000 596,056 397,100 20,000 417,100 565,065 550,200 50,000 600,200 77,256 30,208 30,208 8,523,264 8,808,757 (350,000) 70,000 8,528,757 353,007 320,000 320,000 8,876,271 9,128,757 (350,000) 70,000 8,848,757 764,376 947,896 (23,617) (4,350) 919,929 243,522 259,590 (4,470) (3,000) 252,120 501,009 514,300 (8,528) (1,400) 504,372 369,675 414,567 (7,676) 406,891 3,437,186 3,569,229 (8,126) (37,400) 3,523,703 734,639 702,819 (79,891) 622,928 676,943 679,168 (13,053) (20,000) 646,115 945,223 952,647 (33,633) 919,014 1,203,256 963,541 (33,606) (1,250) 928,685 8,875,829 9,003,757 (212.600) (67,400) 8,723,757 100,000 125,000 125,000 100,000 125,000 125,000 8,975,829 9,128,757 (212,600) (67,400) 8,848,757 (99,558) (137,400) 137,400 2,139,686 2,040,128 2,040,128 2,040,128 2,040,128 2,040,128 Adopt the attached budget amendment resolution. Respectfully submitted, e1ffP Finance Director 19-3 RESOLUTION NO. R16-09 RESOLUTION AMENDING GENERAL FUND BUDGET FOR YEAR ENDED DECEMBER 31, 2009 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota was held in the Council Chambers of said City on the 6th day of April 2009 at 7:00 p.m. Members present: Members absent: Larson, Donnelly, Fogarty, May, Wilson None Member Donnelly introduced and Member Larson seconded the following resolution: WHEREAS, the City Code provides for the increase of the amounts in the budget only if, and to the extent that actual receipts exceed the estimated revenues, and; WHEREAS, the City Council may at any time reduce the sums appropriated for any purpose in the original budget resolution, and; WHEREAS, the City Council adopted the 2009 budget on Resolution R80-08 on December IS, 2008. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Farmington, Minnesota that the following revisions to the general fund budget for the year ended December 31, 2009 are authorized: Adopted per R80-08 Revised per this resolution General Fund Revenues: Taxes Licenses & Permits Intergovernmental Charges for Services Fines & Forfeitures Other Revenues Transfers In Total $7,122,799 306,450 397,100 550,200 109,000 323,208 320.000 9.128.757 $6,772,799 306,450 417,100 600,000 109,000 323,208 320.000 8.848.757 Expenditures: Administration Human Resources/Information Tech Finance Community Development Police Fire Engineering Municipal Services Parks & Recreation Transfers Out Total 947,896 259,590 514,300 414,567 3,569,229 702,819 679,168 952,647 963,541 125.000 9.128.757 919,929 252,120 504,372 406,891 3,523,703 622,928 646,115 919,014 928,685 125.000 8.848.757 This resolution adopted by recorded vote of the Farmington City Council in open session on the 6th day of April 2009. a-1 Jl Attested to the 0 day of April, 2009. 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(J) :J (J) - 0 >..- 0 Cl UJ u .s:; COO E (J) - .s:;N - iii (J) (J) 00 - (J) ~ CO u- '- CO "00 .0 - ~ Q. :J C CO"- 00 o .- (J)O "0 00 :;:; 00 .~ "S (J) .s:;N C :J (J) (J)- - (J) 0 0 - U. :J (J) C 00 ~ :;:; (J) CO CO .s:; (J) c"O E Cl (J)- E ~ Q) :.:i .!!1 > :J t:: u (J) '- .s:; (J) 0 CO .~ :!: '- - u '- ~ 0 (J) C N g.O .!!1 .0 ~ ~ .!!1 .!!1 ~ .s:; CO - .s:; .s:; IV OZ ~ ...J en u.. ~~ ll. - Q) Q) Ui .::: - ~ c (J) ~ E 0 ~ (J) Ui u - c C 00 CO 0 0 .s:; ;; () Ui c ~ '- - UJ 0 00 IV .0 0 (J) CO () :J Q) ...J '- C ~ 0 (J) ll. c .0 > 0 CO (J) Z ...J 0::: 2009 Adopted Tax Levy $ 9,313,415 Less: MVHC unallotment (350,000) 8,963,415 Add: Senior Ctr Debt 20,000 Senior Ctr Operations 50,000 School Resource Officer 30,000 Police Officer (backfill) 65,000 PERA rate increase 30,000 Elections (2010) 25,000 9,183,415 Add: MVHC recovery 350,000 Minimum proposed 2010 levy $ 9,533,415 Revised Estimated Estimated Estimated General Fund Expenditures (non-personnel) 2009 2010 2011 2012 Supplies 552,140 576,000 573,000 568,000 Charges & Services 2,068,581 2,168,000 2,146,000 2,166,000 Capital Outlay 54,000 55,000 55,000 55,000 subtotal 2,674,721 2,799,000 2,774,000 2,789,000 Transfer for Senior Ctr 125,000 195,000 195,000 195,000 total 2,799,721 2,994,000 2,969,000 2,984,000 Estimated effect of proposed levy on City taxes paid Property A Property B Property C Property D Property E 2009 value 2009 city tax 2010 value 2010 city tax $ 168,000 $ 742 $ 141,500 $ 695 186,600 824 180,000 883 244,900 1,082 221,000 1,085 298,200 1,317 265,900 1,306 378,400 1,671 336,400 1,652 6/4/2009 2010 budget options James J. Lynn, Ed.D. LP Lynn & Associates 5435 Wedgewood Dr. Shorewood, MN 55331 952.474.2193 cell 612.751.6000 Attachments: ./ About Lynn & Associates ./ Working With Clients ./ Products and Services ./ A Partial Client List ./ Pre- Work For the Strategy Session ./ City of Farmington Strategy Session June - 2009 ABOUT LYNN & ASSOCIATES Lynn & Associates was founded in 1981 by Dr. James J. Lynn for the purpose of providing comprehensive consulting services that help create organizations to which people want to belong. Collectively, the Lynn & Associates' team has extensive experience in the areas of: Strategic Thinking and Management Action Planning to link strategy to operations. In addition the team focuses on Leadership Development and Organizational Development, Quality and Customer Satisfaction; Training and Development; and Employee Involvement. Performance Improvement and high performing cultures are the general outcomes of this work. James J. Lynn, Ed.D. LP As president of Lynn & Associates, Dr. Lynn consults with senior executives to assess organizational needs, develop strategic plans and install quality systems that improve performance. Dr. Lynn developed a broad based understanding of business functions from twenty five years of increasingly responsible experience in both public and private organizations. Dr. Lynn has been an examiner for the Minnesota Council for Quality, which administers a state version of the national Malcolm Baldrige Quality Award, and he has been certified as an ISO 9000 Examiner. Dr. Lynn focuses on Leadership Development and helping to produce high performing cultures in organizations. Dr. Lynn was a senior consultant for Hay & Associates and Tarkenton & Company before establishing his own consulting firm. He has also authored numerous training programs and workbooks, including The SMART Manager, Making Decisions Work and_People, Pay and Performance, The Quality Hour Series, Consultative Selling Skills, and The Leadership Development Program. Dr. Lynn earned his doctorate in Educational and Counseling Psychology from the University of the Pacific, a master's degree in Cybernetic Systems from San Jose State University, and a bachelor's degree in Psychology from Columbia University in the City of New York. Dr. Lynn is a Licensed Psychologist and Neuro-Linguistic Programming (NLP) Trainer and Developer. Lisa Lynn, MA, LP Lisa M. Lynn, MA, LP, is a consultant with Lynn & Associates, a management development and consulting company. For over 15 years, she has performed consulting in the areas of perception and communication, personal and professional style, hiring, focusing on success, customer service, team building, career development, supervisory training, stress management, performance feedback systems, coaching, sexual harassment, strategic planning, and customized employee surveys. In addition, she has co-authored training articles with Dr. Lynn published in The Inside Line Newspaper. More recent assignments have focused on such issues as team development, process management and improvement, performance feedback systems, and 3600 feedback initiatives. The principal focus of these consulting activities center on performance improvement through the introduction of systematic behavior management principles. Ms. Lynn earned a Bachelor of Arts Degree in Elementary Education from St. Catherine's College in St. Paul, MN, and a Master of Arts Degree in Counseling Psychology from St. Mary's University in Minneapolis, MN. She is a Licensed Psychologist in the State of Minnesota. 5435 Wedgewood Dr. / Shorewood, Minnesota 55331 / (952) 474-2193 WORKING WITH CLIENTS Our goal is to significantly improve the performance of the organizations we consult with. We do this by building productive partnership relationships with all of our clients. We promise to deliver results. To achieve this goal, we use the following four step process. I. Assessment Our first step is to listen to our clients. We clearly identify and evaluate current issues, challenges, problems and concerns which affect business growth, quality and customer satisfaction. Assessment methods include: focus groups, sensing interviews, situational analysis, climate surveys, and customer surveys. Specific performance issues are identified in the assessment phase. II. Set Specific Performance Goals The second step is to collaboratively define goals and objectives; clarify expectations and set priorities for what needs to be accomplished. Specific elements considered include: employees, systems, processes and work group managers. During this planning stage, roles and responsibilities are set for Lynn & Associates and the client. Results include: strategic goals, specific business needs goals, and tactical action plans. III. Implementation The third step is to implement the strategies and action plans through installing the appropriate management systems including: strategic direction, quality / customer satisfaction; training and development; leadership development; performance appraisals; employee involvement and productivity improvement. Meeting the pre-established performance goals is the aim of this third step. IV. Follow-Up The fourth step is to periodically consult with management to measure and evaluate results and to recommend appropriate follow-up actions or revisions to strategic and tactical plans. The bottom line, making performance matter by helping our clients achieve their desired business results. 5435 Wedgewood Dr. / Shorewood, Minnesota 55331/ (952) 474-2193 PRODUCTS AND SERVICES Strategy and Customer Satisfaction · Strategic Quality Planning · Clarifying Roles and Responsibilities · Climate Surveys/Customer Surveys · Employee Involvement Programs · Quality Training Initiatives · Measuring Customer Satisfaction · Process Identification and Improvement · Management Action Planning · High Performance Work Teams Training · Management/Supervisory Skills · Custom Sales Training/Sales Skills · Custom Product Training · Process Improvement · Quality Journals · Needs Assessments · Communication Skills · Train- The-Trainer Programs · Instructional Design · Multi-Media Programs · Programmed Instruction Recruiting/Staffing · Creating Success Profiles · Recruiting Key Personnel · Interviewing Candidates · Conducting Reference Checks · Conducting Psychological Evaluations · Assisting In The Selection Process · Strategic Human Resource Staffing · Developing Orientation Packages Performance Management · Why People Do What They Do · Developing Objectives · SMART Training · Conducting Appraisals · Coaching Strategies · Performance Management Style Training · Pay Performance Linkage · Productivity Improvement Programs · Focusing On Success Performance Feedback System Leadership Development · Position Descriptions · Leadership Orientation · 3600 Assessment · Individual Development Planning · Compensation Administration · Leadership Coaching · Management Succession Planning · Career Development · Leadership Development General Human Resource · Creating Strategic Profiles · Creating High Performance Teams · Annual Employee Surveys · Psychological Assessments · "At Risk" Employee Intervention 5435 Wedgewood Dr. / Shorewood, Minnesota 55331/ (952) 474-2193 A PARTIAL CLIENT LIST . Century College . United Properties . SmithKline Beecham Inc. . Daktronics . Blackburn . Hypro . Landscape Structures, Inc. . Z&S . Midwest Importers . Minnesota Vikings Food Service . In Home Health, Inc. . MGI Pharma . Cytrol . United Penn Bank . Wells Fargo Bank . Green Masters . Deluxe Check Printers . City of Richfield . AIR-vend . Center for Diagnostic Imaging . Gelco Corporation . Dunhill Healthcare . Fairview Community Hospitals . US West Cellular . ADC Telecommunications . The May Corporation . Lifetouch Portrait Studios . NSP . Clinicom . Honeywell - Aerospace & Defense . Benson Optical Company . Total Renal Research, Inc . Sirny Companies . City of Plymouth . City of Minneapolis . United MicroLabs . The Shelard Group . Enhanced Telemanagement, Inc. . Pako, Inc. . City of Minnetonka . The Stuart Companies . Minneapolis Community College . One Call Telecom . Manor Health Care . City of New Brighton . Seniors Residential . Koll Management . Laser Devices . Belmont Village . Century Bank . Artic Cat . Recyclights . Compass, International . Kennedy & Graven . City of Coon Rapids . United Properties . Association of Metropolitan Municipalities . City of Blaine . City of Falcon Heights . League of Minnesota Cities . City of Victoria . ProGressive Growth Corporation . City of Saint Anthony . Admiral Merchants . Integra Telecom . Dakota County . American Academy of Neurology . Grubb & Ellis 5435 Wedgewood Dr. / Shorewood, Minnesota 55331/ (952) 474-2193 PRE-WORK FOR THE STRATEGY SESSION - CITY OF FARMINGTON Directions: Read over the SWOT prompts found on pages 2 and 3. If you think any additional prompts should be added, please do so. Then, make notes about how the prompts are strengths, weaknesses, opportunities and/or threats for the City of Farmington. Bring your notes to the Goal Setting Session in April. Purpose: To help establish and prioritize goals for the city. The basic SWOT steps include. 1. Internal identification of our key Strengths and Weaknesses. 2. External identification of our key Opportunities and Threats. 3. Identify strengths that link with opportunities as Offensive Goals that help make good things happen. 4. Identify weaknesses that link with threats as Defensive Goals to help keep something bad from happening. 5. Check these offensive and defensive goals against a "Balanced Scorecard." That is, do we have: A Financial Goal? A Customer/Citizen Goal? An Operations (Process) Goal about our programs/services? An Employee (Innovation/learning) Goal? 6. Use our SWOT Analysis to come up with three to five Goals or Strategic Initiatives. Goals to help close the gap between current and desired states and frequently have a 12 to 18 month time frame. @ 2009, ICMA Consulting Services for the City of Farmington 1 SWOT ANALYSIS: Internal Strengths and Weaknesses COMPONENT/FACTOR STRENGTH WEAKNESS 1. Market Strategy Our setting in Twin Cities Residential Development Commercial/residential development Redevelopment Rate of development Culture/feel of the city Communicating with citizens Condition of homes/ businesses Lifecycle housing stock Political climate Other sources of development 2. Production Strategy/ Technology Quality of programs/services Infrastructure Work Processes i.e. Permit process/sewer systems/public works Technology - Web site - communication with citizens Internal Systems - phone systems How plans are developed/revised 3. Research & Development/Finance Financial five year plan Use ofTlF Budgeting process Reserves Other @ 2009, ICMA Consulting Services for the City of Farmington 2 4. Organization & Management Strategy Training & Development Council development Council ethics -guidelines Council/staff/relationships Personnel polices Job Descriptions/Appraisals Wages/compensation and benefits CultureNalues Recruiting/hiring a City Administrator City Charter issues - getting projects thru 5. Overall Summary Statement of key strengths to exploit and weaknesses to address/minimize. SWOT ANALYSIS: External Opportunities and Threats COMPONENT/FACTOR OPPORTUNITIES THREATS 1. Market Developments Natural amenities Housing stock The park that divides the City Met Council Crime - perception of safety Transitional housing Commercial/residential development @ 2009, ICMA Consulting Services for the City of Farmington 3 2. Economic Developments Current economic climate Village completion Fee rrax Pressure TIF Revenue Enhancement 3. Technological Developments Sourcing of services Wireless internet Security systems/alarm monitoring Video monitoring/crime prevention 4. Legislative/ Regulatory Developments Stimulus packages Interest Rates Unfunded mandates State budget/revenue shortfalls Intergovernmental relationships LGA 5. Major Competition Other cities Others... why live, work, do business, and recreate in Farmington? 6. Other @ 2009, ICMA Consulting Services for the City of Farmington 4 I I KEY ISSUES - ACTION STEPS Team Exercise: Based on the recently completed SWOT Analysis, and your knowledge of the current and future challenges that face Farmington, come up with what your team considers to be the three to six Strategic issues that need to be focused on in the future. Notes: List key issues/action items @ 2009, ICMA Consulting Services for the City of Farmington 5 I STRATEGIC OBJECTIVES I Develop strategic objectives based on the key offensive and defensive goals previously identified from the Summary SWOT Analysis. Later we will work on supporting goals for 2009 addressing the objectives. @ 2009, ICMA Consulting Services for the City of Farmington 6 City of Farmington Strategy Session June - 2009 @ 2009, ICMA Consulting Services for the City of Farmington 1 City of Farmington STRATEGIC PLANNING - AGENDA Time and place to be determined Developing Goals for the City 8:15 - 8:30 Convene - Review Agenda and Clarify Expectations How we Communicate - Our Style 8:30 - 10:00 10:00 - 10:15 Break 10: 15 - 11 :00 Understanding Culture and Value Proposition Are you a Control Culture, Collaborative Culture, Competence Culture or Cultivation Culture? How do you relate to your customers? Are you more like: Wal- Mart (low-cost), Apple I-Store (product leader), or Nordstrom (customer intimate)? Aligning your culture and value proposition as the basis for developing your goals for 2009 11 :00 1:30 Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis to generate Goals for 2009 1 :30 2:00 Summary - A Draft Set of Goals that are aligned with the organization's culture and value proposition @ 2009, ICMA Consulting Services for the City of Farmington 2 The Council as a Team The Council sets overall policy for the City and as such does need to function and work together as a leadership group. Before we start working on strategy and goals for the year it is always a good idea to spend a few minutes just talking about how you are doing as a team, how effectively are you communicating and getting work done? Some key observations beliefs about Council's: . Effective Council's not only get the job done, the tasks accomplished, but they do it in a respectful and courtesy manner as they interact with each other and residents . The map is not the territory. Your perception of things is not reality, only your perception. Problems can arise when you think your map is the territory! . If you have a point to make, make it. Repeating it louder and faster does not make it any more compelling. "Swinging after the bell" does not improve the odds that others will come around to your point of view. . Just as we don't need one or two people dominating the conversation, we also don't want anyone to "hide" and not say anything. Everyone needs to participate in an open and engaged manner. As consultants we will help facilitate the meeting to keep everyone engaged and actively participating. Discussion questions: 1. Are we ready to have a good discussion of strategy, the key issues facing the City, and come up with a vision, values, mission, and some strategic objectives for the City? 2. Are there any reservations or concerns that we need to surface right now before we begin? @ 2009, ICMA Consulting Services for the City of Farmington 3 I I CITY CUL lURE The Four Core Cultures The core cultures are a mixture of two dimensions. One dimension deals with organization content and ideas. Some organizations deal with specific, concrete facts and prefer to deal with details in the present (here and now). Other organizations prefer to focus on the big picture, on possibilities and the future. Some organizations are logical and fair, others are based on core values and doing the right things. These two dimension parallels Jung's concepts of how we perceive the world (sensing and intuiting) and the judgments we make about our perceptions (feeling and thinking). The Four Core Organizational Cultures S (Sensing) Collaborative Control F (Feeling) T (Thinking) Cultivation Competence N (intuition) Figure 1 - The Four Basic Core Cultures* Adapted from, W.E. Schneider, "The Reengineering Alternative", Irwin, 1994 @ 2009, ICMA Consulting Services for the City of Farmington 4 I I THE CONTROL CULTURE Most organizations probably fall into this military based command and control model - control cultures. Power is important in this culture and it comes with your job title. The Senior Vice President has more authority and more square feet in his office than the Vice President. This is the old-school culture - custodial in nature. STRENGTHS WEAKNESSES ~ Great at planning... well oiled machine ~ Overemphasizes control and when it works. domination. ~ When successful, provides good short- ~ Prone to foster compliance and reject and long-term security. creative innovation. ~ Emphasizes 'strength'. ~ Difficult to show disagreement with authoritarian leaders. ~ Systematic and predictable. ~ Is inflexible and rigid. ~ Emphasizes what works vs. what doesn't work. ~ Information flow can be restricted. ~ Conservative, complete decision ~ Employees and external customers making processes. may feel manipulated and ignored. ~ Clear expectations of others are stated. ~ Impersonal - little amounts of 'team feeling' . ~ Follow through comes naturally. ~ Innovation and change is difficult. ~ Duty, doing the right things. ~ Penny-pinchers - find it difficult to ~ People are comfortable, no surprises. compete - think commodity. ~ Checklists are a good thing. ~ Citizens have to adjust to their way of doing business (lip service to customer ~ Things run like the British Royal Navy service). ~ May make decisions arbitrarily, making certain customer groups feel left out. Cities I Departments that are control cultures: @ 2009, ICMA Consulting Services for the City of Farmington 5 I I THE COLLABORATION CULTURE This is the family culture. Teamwork is the key in the collaboration culture. Even customers and suppliers get drawn into long term partnerships with these kinds of organizations. Teams are the thing, "the nail that sticks up gets hammered down." This culture is like a beehive, very fast and entrepreneurial in nature. STRENGTHS WEAKNESSES ~ Naturally effective in building in and ~ May de-emphasize planning, especially managing diversity and conflict. long-term. ~ Building, developing and utilizing ~ Can be drawn towards group think. teams are important. ~ Can take a long time to make ~ People treat each other with respect. decisions. ~ Tasks and functions are well ~ Without a central focus, can become integrated. over-committed and try to concentrate on too many directions at once. ~ Fosters individual talents... but talents are used to support the team. ~ Focuses on the short-term, quick results. ~ Conflict and differences are fostered and well managed. ~ Highly talented individuals may withdraw due to group think ~ Versatile and adaptive to most atmosphere. situations. ~ Seen as a "private club" to outsiders. ~ Good at forming alliances with other organizations. ~ Over-compromising towards everyone's needs. ~ Innovation - coming up with new services to meet citizen's needs. ~ Imposed order - they will quit (or lie) if pressed to conform ~ Employees feel empowered to act. ~ May take a long time to make a ~ Decision making and entrepreneurship decision because of all the flourishes involvementld iscussion. Cities / Departments that are collaboration cultures: @ 2009, ICMA Consulting Services for the City of Farmington 6 I I THE COMPETENCE CULTURE This university based culture prizes skills and knowledge. The smart person who gets results gets ahead in this culture. This is Tom Peter's company in "Search of Excellence." Competence cultures demand a lot from their employees. GE used to cut the bottom ten per cent of their workforce each year - get rid of the slackers. Fast pace of work - quick responses. This is the "best and the brightest" culture. STRENGTHS WEAKNESSES ~ Sets and reaches high performance ~ Advises against collaboration and team standards. approach. ~ Goal and results oriented. ~ Can lose sight of the human element, especially when those individual are ~ Time is used efficiently. performing at a "good" level and have less education than others. ~ Training and education are deemed important tools for growth. ~ Values are typically ignored. ~ Good at adaptation and change. ~ Over planning and over analyzing may occur. ~ Reward/incentive oriented. ~ Employees seen as under-performing ~ Talented individuals flourish. most of the time. ~ Decision making is systematic and ~ Management is 'tough'. thorough. ~ Employees may feel pressures, over ~ Great programs and services get worked and under valued. developed. ~ Less effective communicators are ~ Institutional wisdom and knowledge ignored. management is important ~ Administrative delays - detours. ~ Likes to use high performance models to continuously improve. ~ May make the best "technical" decision but alienate other groups in the process. Cities / Departments that are competence cultures: @ 2009, ICMA Consulting Services for the City of Farmington 7 I I lHE CUL llV A liON CUL lURE This culture is like a church. People in cultivation cultures are on a mission. Organizations that want to transform society (or the world) are cultivation cultures. Charismatic leaders that encourage continuous growth and development typify this least frequently observed culture. Feels like a family/clan and often have this flavor to them and then may change as they get bigger and need more speed and control. STRENGTHS WEAKNESSES ~ Employees are allowed to make ~ Lacks focus and direction. mistakes. ~ Procrastination arises as there is a ~ Adaptation and change come feeling of "there is always tomorrow to smoothly. finish." ~ Values creativity. ~ Seen as overly judgmental and moralistic. ~ Naturally inclined to be socially responsible. ~ Job burnout is not uncommon. ~ Fosters diversity and differences in ~ Both internal and external employees thoughts, beliefs and feelings. may view problems as 'swept under the rug' and not dealt with, especially ~ Training and education are deemed problems or issues between people. important. ~ Oriented against control, even when ~ Offers opportunities for growth and control is needed. development. ~ Focus may go in many directions at ~ Encourages self-expression, even one time, expending its' energies. when diverse or eccentric. ~ Details, especially everyday ones are ~ Slow - consensus building. overlooked. ~ May run like the Pirates of the ~ May make the decision that goes along Caribbean with their particular beliefs and values. Cities / Departments that are cultivation cultures: @ 2009, ICMA Consulting Services for the City of Farmington 8 I CULTURE STRENGTHS & WEAKNESSES All four cultures have both strengths and weaknesses. Let the key strengths and weaknesses of the cultures below. Collaborative Command & Control Stren ths Weaknesses Stren ths Weaknesses Cultivation Competence Stren ths Weaknesses Stren ths Weaknesses What do you think the City's culture is? What do you think our culture should be? @ 2009, ICMA Consulting Services for the City of Farmington 9 I I CORE VALUE PROPOSITION Why so many organizations fail without even trying. The new world of competition... and economic downturn ~ can't just raise prices ~ can't assume good government service is good enough The road to failure... ~ our competitors are stupid ~ the current rules have worked so far ~ we don't make products, we don't have customers, and we don't have profits Rule #1 : Provide the best offering in the marketplace by excelling in a specific dimension of value. Rule #2: Maintain threshold standards on the other dimension of values. Producing unsurpassed, ever-improving value requires a superior dedicated operating model. There are basically three core value propositions or ways you relate to your citizens: you offer the lowest cost services, you offer the best products and services, or you provide the best customer service. All organizations do all three, the question is, which one is your driver... your focus? @ 2009, ICMA Consulting Services for the City of Farmington 10 SUMMARY - CORE VALUE PROPOSITIONS VALUE PROPOSITION OPERATIONAL MODEL KEY PROCESSES TOUGH CHALLENGES EMPLOYEES CORE CUL TURE APPROACH TO CUSTOMERS SOME EXAMPLES OPERATIONAL EXCELLENCE PRODUCT LEADERSHIP CUSTOMER INTIMACY Deliver quality, price The best The best total solution! and ease of purchase product/service... (acts as a partner with that no one else can period! you) match! Reduce variability. Loosely knit. Relationship driven. Lower costs. Adhoc. Deliver a broad range Rules - only one right Ever changing - results of services. way. driven. Integrating core Prod uct/service Results management. processes - highly development and Customer selection - disciplined. promotion - speed. Customer retention. Assets turn to Not seeing the next Staying smart - liabilities. technology knowledge turns to (the market chanaes). ianorance. Fit in the box type Bright/creative people - People who can live in people who fit into the project teams - the customer's shoes. pre-imposed system entrepreneurs. Empowered to deliver (not free spirit types). solutions. Command and Control Competence Collaborative They adjust to us. They 'ooh' and 'ah' We get to know them over our products and and we satisfy their services. needs. Wal-Mart Apple I Store Nordstrom Fed-Ex Walt Disney Ritz-Carlton Southwest Airlines Motorola Home Depot Hertz Intel IBM (1960'sI70's) Taco Bell 3M Airborn Express Dell Computer Harley-Davidson A. G. Edwards @ 2009, ICMA Consulting Services for the City of Farmington 11 LINKING CULTURE AND VALUE PROPOSITION FACTS FEELING IDEAS Three Core Value Propositions · Operational Excellence - Low Cost · Product Leadership · Customer Intimacy The Linkage · Operational Excellence and · Product Leadership and · Customer Intimacy and City of Farmington - Current: City of Farmington - Desired @ 2009, ICMA Consulting Services for the City of Farmington THINKING 12 I I DISCUSSION 1. What is our level of agreement about our current and desired Culture and Core Value Proposition? 2. What do you think our customers implicit understanding of our Core Value Proposition is? a. Low Cost/Best Value b. Product/Service Leader c. Great Service/Total Solution d. Nordstrom Service at Wal-Mart prices e. Wal-Mart Service at Nordstrom Prices f. Muddled and confused 3. What's the relationship between our core value proposition and: a. our approach in dealing with the budget shortfalls? b. our strategic goals? c. our staffs response to special or custom requests from customers? d. are all departments on the same page? e. our staffs response to custom requests from citizens? 4. How can I apply these models (culture and value proposition) in day to day behavior? @ 2009, ICMA Consulting Services for the City of Farmington 13 STEPS IN OUR BRIEF SWOT ANALYSIS Review this form and bring in with you to the workshop. We will complete it at the workshop. A situational analysis or strengths, weaknesses, opportunities and threats (SWOT) Analysis is a tool to help identify and create goals for the organization to address. The basic SWOT steps include: 1. Internal identification of our key Strengths and Weaknesses. 2. External identification of our key Opportunities and Threats. 3. Identify strengths that link with opportunities as offensive goals that help make good things happen. 4. Identify weaknesses that link with threats as defensive goals to help keep something bad from happening. 5. Check these offensive and defensive goals against a "Balanced Scorecard." That is, do we have at least one goal from each of the following perspectives: A Financial Goal? A Customer/Citizen Goal? An Operations (Process) Goal? An Employee (Innovation) Goal? 6. Use our SWOT Analysis to come up with six to eight goals or Key Action Areas. Key Action Areas are dimensions of change management, to help create the Strategic Goals to help close the gap between current and desired states. @ 2009, ICMA Consulting Services for the City of Farmington 14 SWOT ANALYSIS: Internal Strengths and Weaknesses COMPONENT/FACTOR STRENGTH WEAKNESS 1. Market Strategy Our setting in Twin Cities Residential Development Commercial/residential development Redevelopment Rate of development Culture/feel of the city Communicating with citizens Condition of homes/ businesses Lifecycle housing stock Political climate Other sources of development 2. Production Strategy/ Technology Quality of programs/services Infrastructure Work Processes i.e. Permit process/sewer systems/public works Technology - Web site - communication with citizens Internal Systems - phone systems How plans are developed/revised 3. Research & Development/Finance Financial five year plan Use of TIF Budgeting process Reserves Other @ 2009, ICMA Consulting Services for the City of Farmington 15 4. Organization & Management Strategy Training & Development Council development Council ethics -guidelines Council/staff/relationships Personnel polices Job Descriptions/Appraisals Wages/compensation and benefits CultureNalues Recruiting/hiring City Charter issues - getting projects thru 5. Overall Summary Statement of key strengths to exploit and weaknesses to address/minimize. SWOT ANALYSIS: External Opportunities and Threats COMPONENT/FACTOR OPPORTUNITIES THREATS 1. Market Developments Natural amenities Housing stock Met Council Crime - perception of safety Transitional housing Commercial/residential development @ 2009, ICMA Consulting Services for the City of Farmington 16 2. Economic Developments Current economic climate Construction completion Fee /Tax Pressure TIF Revenue Enhancement 3. Technological Developments Sourcing of services Wireless internet Security systems/alarm monitoring Video monitoring/crime prevention 4. Legislativel Regulatory Developments Stimulus packages Interest Rates Unfunded mandates State budget/revenue shortfalls Intergovernmental relationships LGA 5. Major Competition Other cities Others... why live, work, do business, and recreate in Farmington? 6. Other @ 2009, ICMA Consulting Services for the City of Farmington 17 I KEY ISSUES Team Exercise: Based on the recently completed SWOT Analysis, and your knowledge of customer outcomes and the current and future challenges that face Farmington, come up with what your team considers to be the three to six goals (key action items) issues that need to be focused on in the future. Think about the four perspectives: finance, citizens, work processes, and employees. Notes: List key issues/action items @ 2009, ICMA Consulting Services for the City of Farmington 18 GOALS Develop a set of goals based on the key action items previously identified from the Summary SWOT Analysis. @ 2009, ICMA Consulting Services for the City of Farmington 19 I I SUMMARY AND NEXT STEPS Implementation of Goals You have now accomplished a lot. Council has a better understanding of culture and value proposition and how they influence the kind of goals you create. You completed an environmental scan, SWOT analysis, and developed a set of goals for the city. The next step is to turn these goals over to staff to begin working on them. Staff will create Supporting Objectives with Action Plans and timelines for accomplishing specific work for each Goal. Some organizations use these work plans for 90 day cycles to get real specific and concrete about short term accomplishments. This way work plans connect to the Goals set by the council. A recommendation is to have staff report on progress toward objective accomplishment at quarterly Council work sessions. In short, this system of working on 90 day work plans that relate to the overall Goals allows staff to stay focused on what is important to the Council, and improves line of sight so that staff understands how their work relates to the overall strategic goals of the city. Council sets the overall direction and staff is responsible for implementation. @ 2009, ICMA Consulting Services for the City of Farmington 20