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Improved services through greater efficiencies

According to Chief Executive, Bob Seiffert, recent Local Government reforms, and particularly Compulsory Competitive Tendering (CCT), have improved the way services are delivered by Council. This has resulted in many benefits for Manningham residents and staff.

"What we achieve in output and what we deliver to the community in quality and price is the key to the process," Bob Seiffert explained. "To date, our customer satisfaction surveys indicate that the community is pleased with the service they now receive."

Located in Melbourne's eastern suburbs, Manningham City Council administers an area covering 114 square kilometres and serves a population of 111,000 people.

The legislative requirement to provide a clear distinction between client and provider units has resulted in a flatter management structure. Council now has just three levels - a CEO, four Directorates and 19 Service Units.

Tendering for services under CCT gave Council's Service Units the opportunity to demonstrate that they could deliver quality services at a competitive price. To date, all tenders have been won by in house bids.

A vital part of the process has been the provision of training and resources to enable staff to effectively compete. As well as broadening their skills base, the CCT process has enhanced staffs' understanding of the management and structure of their work.

Service Units are encouraged to aim for a profit, of which 40 percent is retained by Council and 60 percent distributed via bonuses to the Unit. This provides incentives for adaptable and more flexible work practices. To maximise benefits for ratepayers, Manningham's CCT guidelines cover the following aspects.

• Council's Service Units do not start with an unfair advantage owing to their in house position.
• Specifications for Quality Assurance, under the ISO9000 series are standard, as are processes for measuring customer satisfaction.
• Ongoing training for Directors and Service Unit staff to achieve maximum competitiveness.

The process has created some redundancies, and although staff numbers have been reduced in some areas, services have in fact increased through greater efficiency.

In January, Manningham released its Customer Service Undertaking which clearly states key performance indicators. This is a mechanism for ensuring services are delivered as promised in tenders.

As the first Local Government Authority in Australia to receive Quality Certification under ISO9001 for the entire organisation, Manningham has certainly demonstrated its ability to deliver on outcomes. By April 1997, Council hopes to see 90 percent of its services market tested under CCT bringing further benefits for the organisation and residents of Manningham.

"With clear principles, keeping staff fully informed from the outset, and vision, good communication and teamwork, the implementation of CCT has been relatively smooth at Manningham," Bob Seiffert concluded.

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