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In
this article, Peter Nichols reviews some of the challenges to
implementing municipal change and discusses a number of aids to
informed decision-making.
Let's face
it. It's not easy these days for councils and managers to make
decisions that involve significant changes from the status quo.
Decision-makers must wrestle with:
- the complexity
of issues. Nothing seems easy: issues are complex and often
inter-related. A decision made in isolation can have unanticipated
effects in other areas. Various stakeholder groups can be affected,
in different ways. Political considerations intervene. Some
impacts can be measured and quantified; others must remain in
the "qualitative" realm. All of these different factors
and impacts must somehow be synthesized and weighted.
- trade-offs.
Unfortunately, most decisions are not "win-win" but
instead involve trade-offs: some pluses and some minuses; some
winners and some losers; and even opposing short-term and longer-term
impacts (for example, expenditures today for benefits tomorrow).
Improved service levels often (although not necessarily) imply
higher costs. Improved efficiency through downsizing has negative
effects on the affected staff. Municipal grants and related
benefits provided to a particular community group may imply
higher taxes for all ratepayers. And so on.
- uncertainties
and risks. Decisions often must be made in an environment of
uncertainty and unknowns and the probabilities and potential
significance of different eventualities must be considered.
However, things can unfold far differently than expected and
can invalidate the decisions that have been made, necessitating
reversals and modifications as new information and events unfold.
Such risks are associated with many decisions but do not negate
the need to make them: even greater risks can arise from a conservative
"do-nothing" approach.
- decision-support
information that is unclear, incomplete, overly detailed, or
unduly technical. The difficulties faced by Councils and senior
management in making informed decisions are often compounded
by deficiencies in the form and content of the information made
available to them. It is a rare skill to be able to convey the
appropriate level and range of decision-support material to
the executive team in a clear and concise manner.
These are
some of the challenges facing decision-makers. Fortunately, although
the complexities of issues grow, there are new tools and techniques
and information sources available to senior executives and managers
to help them sort through the various issues and uncertainties
to make more informed decisions.
Some of the
aids to decision-making include the following:
- the use
of cost-benefit analysis, to measure the expected costs and
benefits of various alternatives in a consistently comparable
manner.
- the use
of statistically valid public and stakeholder surveys, to provide
a gauge of views, preferences, and expected impacts.
- new information
sources, such as the internet, which can provide ready access
to lessons learned in other communities.
- impact
assessment, which examines the expected effects of alternative
courses of action and identifies opportunities for enhancing
positive effects and mitigating or reducing negative spin-offs.
- formal
program and operational evaluations, which can provide the analyses
that examine and support necessary changes.
- planning,
forecasting, and simulation models, that allow municipalities
to examine the implications of different scenarios. Our consulting
firm, for example, makes extensive use of computer-assisted
financial planning models to test the financial impacts of alternative
growth, investment, program, and policy decisions, and has applied
evaluation models to test the implications of alternative emergency
response solutions on response times and delivery costs. New
computer and software technology has considerably improved the
ability to evaluate many decision alternatives facing municipalities.
These and
other decision-making aids will not eliminate the difficulty of
making informed decisions or the risk of making the wrong choices,
but they will improve decision-making performance. That is, if
you have time to prepare adequately for a decision. No matter
how powerful the techniques are that can assist in decision-making,
they will require some time to execute and they imply that the
decision process has been anticipated. It follows that crisis
management makes good decision-making harder. It also follows
that decision-making is best conducted in the context of an orderly
business planning process. |
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