HomeMy WebLinkAbout08/15/1995, 6 - PUBLIC WORKS DEPARTMENT ORGANIZATIONAL ANALYSIS AND IMPROVEMENT PROGRAM 11111111111 nNu�► city o f San WIS OBISPO % 795 ATE:
�j III ITEM NUMBER:
WhGe COUNCIL AGENDA REPORT G
FROM: Michael D. McCluskey, Public Works Director
SUBJECT: Public Works Department Organizational Analysis and Improvement
Program
CAO RECOMMENDATIONS:
By motion,
1) review the 'Public Works Department Organizational Analysis and Improvement Program"
2) direct staff to implement report recommendations specified for the first 200 days
DISCUSSION:
As a result of reorganizations and budget cutbacks over the last three years, Public Works
staffing dropped from 102 employees (74.5 regular and 27.5 temporary) to 77 employees (65
regular and 12 temporary) -- a 25 percent reduction. Although Public Works has been able to
maintain most previous service levels with little sacrifice in quality, employees have felt generally
that there has not been enough staff to do the work and that the department has been running at
"110 percent" of capacity just to keep up. This situation has left little time for important internal
management tasks like planning for future needs, monitoring progress, correcting minor
difficulties before they grow into major problems, assisting and training employees, and
improving communication.
After one Supervising Civil Engineer position was eliminated in 1993, the Engineering Design
Section tried various organizational arrangements and eventually settled on a self-directed team
to manage the CIP project workload without the traditional direct supervision and review. Then
after the Streets and Parks Manager retired in December 1994, Public Works left the resulting
vacancy unfilled and created a similar self-directed team among the maintenance supervisors who
had previously reported to the Streets and Parks Manager.. Both of these teams began to
manage their work independently and overcome problems created by the extensive staff
reductions, but they needed some help to realize their full potential.
To further department goals and review past decisions, in April 1995 Public Works hired George
Sipel Associates for guidance in three areas:
how to best use the vacancy created by the Streets and Parks Manager's retirement
how to streamline processes to deliver better customer service with fewer resources
to evaluate the potential continued use of self-directed teams
After interviewing employees, administering a survey, auditing time records for managers,
evaluating key processes, and discussing findings and recommendations with employees, Mr. Sipel
submitted a report titled "Public Works Department Organizational Analysis and Improvement
city or SanS OBISPO T
COUNC L AGENDA REPORT
Sipel
Page Two
Program". On pages 11-14 of this report, Sipel presents eight recommendations which will alter
various duties and responsibilities through structural changes during the first 100 days. This
initial period will allow for a gradual phase-in with several easy accomplishments. Then on pages
15-17, Sipel describes six more recommendations which will improve leadership and management
during the second 100 days. This two-stage approach will allow more rapid progress in the
second period, built on the early successes of the first period.
Underlying these recommendations are two critical concepts, commonly accepted in the private
sector over the last 10 to 15 years, and now entering the public sector as well:
1) Peer team development is the best strategy for effectively managing and accomplishing an
organization's work.
2) Process redesign by teams can dramatically improve efficiency and quality.
These concepts build on each other to make an organization more effective and efficient. Once
a team forms and begins to work well, it can examine one of its work processes and eliminate
steps that add no value to the delivered service. This frees up time to examine another work
process, and the cycle continues. Improvements result not from a one-time fix imposed from
above, but from continual long-term evaluation by the employees performing the work.
Continuing and expanding the use of teams will require a substantial commitment of time from
the Public Works Director to perform some of the basic management tasks mentioned in the first
paragraph of this report, particularly including coordination of outside training. To free up the
time needed, Sipel recommends eliminating the Streets and Parks Manager position and creating
a new generalist manager position in the same pay range to assume some of the Public Works
Director's routine tasks. Two-thirds of this manager's time will be devoted to report preparation,
citizen service requests, and new special projects requiring a considerable amount of time, rather
than technical expertise. The remaining one-third of the manager's time will be spent
coordinating and assisting the transportation section.
Overall, Sipel found the Public Works Department to be above average compared to similar
organizations, with several major strengths. His report recommends building on those strengths
and introducing structural and cultural changes which will free up time for the Public Works.
Director to fulfill his mission and the department to deliver even better services.
FISCAL IMPACT:
Implementing report recommendations will require, in coordination with the Personnel
Department, training in three areas over the next 10 months:
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COUNCIL AGENDA REPORT
Sipel
Page Three
teambuilding and management training for the public works management team and the
maintenance supervisors team
teambuilding and work process improvement training for the engineering design team
training for one problem-solving task force
Training costs are normally included in the various division's budgets of the department.
Training funds will be supplemented via a CAO authorized transfer to training accounts from the
salary savings available from the vacant Streets and Parks Manager position. (A heavy
recruitment workload in Personnel will prevent filling the generalist manager position until
November 1, 1995 at the earliest). There will be no impact to General Fund Reserves.
ATTACHMENT: A copy of the Public Works Department: "Organizational Analysis and
Improvement Program" is available in the Council Reading File.
sipel.agn/mm4
RECOMMENDATIONS
Based on the above organizational assessment, two types of recommendations are in order. First,
several structural changes which alter duties, responsibilities, and roles of several managers are
recommended. Most of these recommendations move the Department to a flatter organization
structure by reducing approvalfreview levels, creating teams, and establishing responsibility for
processes. One particular structural change,adding one management position to assist the Director
and eliminating the Parks and Streets Manager position, is also recommended. This is the one
recommendation that leads away from a flatter organization, but is necessary to meet immediate
needs and to enable the Department to implement what is proposed. Taken together, the
implementation of these structural recommendations will position the Department to serve the
public effectively and efficiently in the future and will enable the second group of recommendations
to be achieved.
Additional recommendations will guide the Department through the change process necessary to
achieve excellent customer service through improved resource use. They include improvements in
leadership,management,communication, problem solving, and analysis to enhance organizational
effectiveness.
1. Add a management position titled Public Works Manager to the Department to assist the
Director with daily routine matters and special projects.
Since coming to the job the Public Works Director has tried to cover many bases: working
with the City Administrative Officer, City Council, citizens, and special interest groups;
managing high profile projects; leading department change; and doing daily routine work.
The addition of a management position(two-thirds time) will enable the Director to assume
the leadership and management roles articulated later in this report.
This position would assist the Director in two major areas: (1)routine Department matters
such as report preparation and citizen service requests; and (2) special projects such as
revision of the storm management plan, implementation of the ongoing sidewalk repair and
replacement and storm drain catch basin replacement projects, and revision of the pavement
management plan.
This position would replace the Parks and Streets Manager position in the table of
organization. It is recommended that the salary range for this position be at the same level
as the Parks and Streets Manager.
2. Provide management coordination and assistance to the Traffic and Transportation Division
through the newly-created Public Works Manager position one third time Z
The Hughes-Heiss study pointed out the need for a full-time manager of the Traffic and
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Transportation Division and that need still exists. Financial constraints precluded filling the
position two years ago. In the interim the City Engineer has provided administrative
oversight. To achieve the potential foreseen when the Traffic and Transportation units were
brought together, leadership and coordination on a consistent basis is necessary. A one-third
time administrator can fulfill this role. This recommendation is different from the Hughes-
Heiss report in two ways. First, the position is intended to have a generalist emphasis
whereas the Hughes-Heiss report recommended a person with technical expertise in
transportation and/or traffic engineering. It follows that the focus of this person will be
general administration, not technical research and problem solving. Second, Hughes-Heiss
recommended a full-time position. This report recommends a one-third time position.
Key duties would include the following:
o. coordination of common functions
o. assistance to Division members in meeting work standards when necessary
o. facilitation of discussions on common issues and problems
o. identification and pursuance of new ventures that use the talents representing the
four disciplines
o. assistance in dealing with problems, especially those initiated by elected officials
and the public
A job description for this position is included as Appendix C. The Traffic Engineer would
continue to consult with the City Engineer on technical matters and in some cases could
work with other Engineering teams.
3. Continue the Maintenance Sul2ervisors'work team with enhancements.
This pilot project has worked well for six months with limited training for participants.
Team building training needs to be provided to all participants. This training should include
the following elements: formulating a mission, goals, and objectives; setting priorities;
establishing groundrules for operation; clarifying roles and responsibilities; facilitating
meetings; and resolving conflicts. In addition, the Public Works Director should become
more involved with the team on substantive matters. With the addition of the Public Works
Manager the Public Works Director should devote ten hours per week to the Maintenance
Supervisors' team and establish an office at the Corporation Yard. This is particularly
appropriate since the Maintenance budget represents a large percentage of the total Public
Works budget. Second,it is recommended that the team have a coordinator(rotated among
participants) for six months periods to represent the team and to fulfill the need for
"someone who is in charge". Finally, it is recommended that the Building Maintenance
Supervisor be added to the team as an additional resource. For the time being the Building
Maintenance Supervisor's reporting relationships should remain the same. Some of the
issues the team needs to take on are uneven workload distribution, micromanagement,
perceptions of preferential treatment, employee recognition,training and development, and
working relationships with employees.
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4. Have the Su ep wising Civil Engineer focus on the development review process exclusively
and relieve him of supervisory resp2nsibilities for ins ce tors.
Experience has shown that the assignment of inspectors to the Supervising Civil Engineer
has not worked well. Reassignment to the City Engineer will reduce the workload for the
Supervising Civil Engineer and will enable him to spend more time on the development
review process. This is particularly important since one of the Engineering Assistants was
recently assigned to inspection. The Supervising Civil Engineer should report to the Public
Works Director.
5. Have the City Engineer devote the bulk of his time to managing the Capital Improvement
Proaram.
Two years ago the City Engineer was assigned responsibility for the Traffic and
Transportation group. This has resulted in overload for him. With creation of the Public
Works Manager position and the recommendations discussed in recommendation 4 above
the City Engineer will be relieved of those responsibilities and will be available to take on
responsibility for construction management and complex project management.
6. The newly assigned geographical information section should report to the Director.
The full extent of this function is not yet known. Currently, its focus is internal. Over time
it may extend to external customers and ultimately to the citizens of San Luis Obispo. To
provide direction in this formative stage the function should report to the Public Works
Director. On a daily basis the unit will have involvement with the Engineering Division and
other support service functions.
7. Provide team building assistance to the Engineering Design work team
Similar to the Maintenance Supervisors' work team, this team has made excellent progress
with little training. Team building training can only expand the success that has already
been achieved. Some of this training could be done in conjunction with the Maintenance
Supervisors.
8. Identify opportunities for other organizational groups to develop into work teams.
In the past year the Department has fostered the concept of teamwork. As the Maintenance
Supervisors' and Engineering Design teams become proficient, attention should be given
to starting other teams. Opportunities appear to exist with inspectors,maintenance crews
and the Traffic and Transportation program managers. Ad hoc teams might also be formed
to solve specific problems. Employees could find themselves working with others
regardless of organizational level or salary.
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With the changes proposed above the Public Works organization will look as follows:
Public Works Director
City Engineer Supervising Civil Engineer Maintenance Team
Capital Project Design Development Review Park&Landscape Maint.
Construction Management Tree Maint.
Project Management Pavement Maint.
General Street Maint.
Fleet Maint.
Public Works Manager Support Team
Transportation Planning Clerical
Transit Budget
Traffic Engineering Building Maintenance
Parking GIS
Special Projects Administration
The recommendations identified above lay the groundwork for organizational improvement and will
provide the structure to create a high performing, flexible organization oriented the community,
environment, and customer. The next group of recommendations focuses on the need for improved
leadership and management.
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9. Have the Public Works Director and the managers reportin t�Inovide leadershipto the
Department.
Active leadership begins with articulating a vision for the Department. The vision is
important for several reasons. It provides a vehicle to make the cultural transition with
which the Department now struggles; it provides direction to employees; it is a motivator
for employees;and it is the basis for strategic planning and objective setting. The vision can
be developed by the Director,the Department's management team, or a broad cross section
of the Department. This vision should be compatible with direction provided by the City
Council and City Administration. It then must be aggressively communicated and ultimately
must be embraced by the whole department. Communication of the vision then, is the
second part of the leadership task.
Third, leadership entails the development of a strategic plan to achieve the vision; in effect
answering the question: What are the important steps to get us where we want to go? Once
developed,the plan must be enacted Leaders act themselves and stimulate action by others.
To do this leaders must give time and attention to the process of leading,be willing to take
some risks, and persist in the task.
Leaders have a highly developed concern for people -- citizens, employees, and other
managers. They care about including employees in decision making, they listen to what
employees have to say,they develop employees,and they recognize employee achievements.
All of these "people" elements need attention in the Department.
Leadership by an individual and/or team does not happen overnight. It will take time,
training,and practice. Outside resources will be necessary to provide training and support.
10. Have managers spend more time managing and less time doing
There is a range of management activities that Department managers should practice. They
include the more traditional activities such as:
o Planning o Coordinating
o Organizing o Budgeting
o Controlling o Decision making
o Directing
The list must be supplemented by several contemporary activities:
o Developing teams o Strategic planning
o Coaching o Empowering employees
o Communicating o Managing change
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As managers gain more time through the proposed reorganization, they must devote their
efforts to these management activities. An effective way to do this in a group setting is to
initiate a series of management team meetings. These sessions,attended by the Director and
those managers reporting to him, could serve as a training ground to learn and practice
management skills as well as to develop a priority listing of those activities and skills that
are in the most need of improvement. As a start training should be provided in the following
areas: managing change,planning,goal setting, facilitating meetings, coaching, delegating,
empowering employees and communicating. One on one coaching as well as group training
should be employed.
A similar recommendation is made for the Maintenance Supervisors' work group. In
addition to improving their"team"skills,they need to work on individual supervisory skills.
The team could act as a vehicle for defining skills needs and identifying ways they might be
met. An outgrowth of both team efforts should be management training plans with
timetables.
11. Make communication in all directions a highpriority in the Department
Both the personal interviews and the employee survey indicate the need for increased
communication. There needs to be a free flow of information between managers and
employees and between organizational work groups. Among the techniques that might be
tried are:
o regular staff meetings
o quarterly Department meetings
o informal performance review sessions
o City Council meeting briefings
o Department newsletter
o intergroup meetings
o newsletter to chronicle the change effort and implementation of this report
The management team should initiate one or more of the above activities immediately. A
starter might be a department-wide meeting to kick off the"new"Public Works Department.
As these communication activities are undertaken, they should be evaluated to determine
effectiveness. It may also be helpful to create a Communication Task Force to identify
specific needs and suggest additional ways to improve. Training in effective meeting
techniques should also be provided.
12. Establish participative.problem-solving task forces to deal with concerns expressed in the
survey.
A number of issues lend themselves to this type of problem-solving mechanism. They
include training and development, employee recognition, and organizational
communication.
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A task force of 5-6 people should be appointed from a list of interested employees to study
and make recommendations to management on each problem. Facilitation support should
be provided. This approach gets employees involved and it deals with important issues
perceived by employees.
13. Redesip-n selected work processes to make better use of existing personnel resources and to
reduce employee frustration about work
Most employees perceive that they are overworked and when asked will say that more staff
is needed Based on the existing way work is done they are undoubtedly correct. Other city
organizations have used work process redesign and total quality management techniques to
streamline work. Productivity gains in excess of 50 percent are commonplace. Areas that
would yield substantial benefits include the invoice payment process, development review
process, consultant selection process, and other processes associated with the Capital
Improvement Program. Processes needing immediate attention should be identified by work
groups,teams should be formed,and training and facilitation in work process improvement
techniques should be provided.
14. Intensify efforts to work efficiently and effectively across work oups divisions and
departments.
While the survey identifies a perception that employees cooperate and interviews yielded
concrete examples, there are abundant opportunities for collaboration. They include the
following external collaborations:
o Utilities Department/Capital Project Design Group/Development Review
Group/Infrastructure Maintenance Group
o PG&E/Capital Project Design Group/Development Review Group/Infrastructure
Maintenance Group
o Police Department/Parking Group
And they include the following internal collaborations:
o Infrastructure Maintenance Group/Construction Management Group
o Capital Project Design Group/Infrastructure Maintenance Group
o Infrastructure Maintenance Group/Building Maintenance Group
o GIS Group/Capital Project Design Group
The management team should establish a program to review and enhance cooperation in
these and other areas.
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