An approach to organisational change and development that is focused on people, their wellbeing and resilience.
The funding challenges already discussed, together with wide-ranging public sector reform, have prompted councils to undertake transformation programmes and in some cases, radically shift how they approach delivering services. Councils' understanding of their role has evolved; they are now collaborators and place leaders, rather than simply providing services to residents in a two-way transaction. Different models now being used include commissioning councils, commercial councils and cooperative councils. As with any organisation the workforce is at the heart of these changes.
Organisational development (OD) is a critical tool to help councils identify how they can respond to forthcoming challenges and then guide them through the process of transformation. However in conversations with councils, the LGA regularly hears that OD capacity is lacking in their organisation. Councils need to think about improving this capacity so they can take advantage of best practice.
As individual councils look to predict the workforce roles or job types and structures they will need in the future, depending on the structure and form that those individual councils decide to develop, increasingly we are seeing and will continue to see changes in how they employ, organise and manage their staff.
OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results, for example through the development of self-managed teams.
Good quality OD helps to improve employee wellbeing. Local government has key responsibilities for the mental health of their local populations, and this extends to councils as employers. Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way.
OD will be a key driver for culture change, capacity building and performance improvement in councils to build adaptable, leaner 21st century organisations that deliver good value services.
Incorporating OD into transformation and change programmes can deliver:
- a systematic approach for creating an organisation that is fit for purpose and prepared for the future
- effective transformation programmes that deliver real and lasting change
- organisational capacity and adaptability
- cost effective, joined-up systems and improved customer satisfaction
- empowered leaders
- a good place for people to work.
Actions for LGA and partners
- support councils to explore new ways of working that continue to modernise the working culture of local government
- help councils engage better with residents and partners, as well as learn from other organisations, thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish
- help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance, learning cultures, in their organisations
- work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges
- provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills, attitudes and contributions of their workforce
- work with government departments and unions to promote ways of maintaining the quality of local government’s workforce in terms of skills, qualifications, engagement and motivation and staff turnover.