succession planning for local government finance” – webinar
TRANSCRIPT
““Succession Planning for Local Government Finance” – webinar
10:00 – 11:30 a.m. Pacific Time, Thursday, February 11, 2016
Sponsored by CSMFO Coaching Program
Finance positions have become some of the toughest jobs to fill in local government. Learn what you can do to help yourself and your organization thrive into the future. Invite your agency's human resource professionals to join you for fresh ideas you can use. Advance registration required for this no-charge webinar: https://attendee.gotowebinar.com/register/8804233078687148801 Webinar topics: 1. What are the challenges to find and retain qualified finance professionals? 2. How can Finance Departments plan and adapt for a productive future? 3. What are examples of best practices you can consider? 4. What tools and resources can help your agency thrive? Presenters: * Suzanne Mason, Assistant City Manager, Palo Alto, CA * Derek Johnson, Assistant City Manager and Finance Director, San Luis Obispo, CA Audience: all local government finance professionals Get connected with these steps. 1. Register in advance for the webinar: There is no charge for participating in the webinars, but each requires advance registration. *** Advance registration required for this no-charge webinar: https://attendee.gotowebinar.com/register/8804233078687148801 Be sure to "white list" or "allow" emails from [email protected] to receive notices for this webinar. 2. Connect with the webinar and audio: Use your logon information from the email confirmation you receive via email from GoToWebinar. We recommend the telephone option dial-in number provided by GoToWebinar for sound quality. Depending upon your internet connection, VOIP option for audio (computer speakers) can have delays or sound quality issues. 3. Ask questions:
You may submit questions anonymously via email to [email protected] in advance or via the webinar during the panel discussion. As moderator for the session, Don Maruska will pose the questions. 4. Presenters’ presentation materials: We post these with the agenda at “Agendas & Archives” tab of www.csmfo.org/training/webinars. The PPT will be available 24 hours before the webinar. After a webinar occurs, a digital recording along with the PowerPoint materials and results of the polling questions will be available after 24 hours at the "Agendas & Archives" tab of www.csmfo.org/training/webinars. CPE Credits: If you are a member of CSMFO and wish to obtain CPE credit, you need to register and attend in your name, respond to at least 75% of the live polling questions, and pay $25 to CSMFO after notice from CSMFO following the webinar. After payment, CSMFO emails the CPE certificate as a PDF. Post-Webinar Group Discussions Many agencies are organizing groups to participate in the webinars (live or recorded) and discuss the topics among themselves after the webinars. Some are summarizing their discussions and distributing them to managers throughout their organizations. Use the CSMFO Coaching Program as an effective way to enhance professional development in your agency. Here are some discussion starters for this session: a. Where does our Finance team have particular needs now and in the future? b. What strategies appear desirable to help us ensure that we have qualified people to fill them? c. What tools and resources can help us move forward? MORE RESOURCES--See the "Coaching Corner" at www.csmfo.org/coaching for valuable resources to boost your career. These include a Financial Management Skills Inventory, Resource Matrix, Coaches Gallery of 24 volunteer CSMFO Coaches willing to help you on a one-to-one basis, and an archive of digital recordings and materials from past webinars at www.csmfo.org/training/webinars. Enjoy the resources to help you succeed in local government finance. Don Maruska, MBA, JD, Master Certified Coach Director, CSMFO Coaching Program; [email protected] Author “How Great Decisions Get Made” and “Take Charge of Your Talent” www.TakeChargeofYourTalent.com
Suzanne Mason, Assistant City Manager, Palo Alto, CA Suzanne Mason has a deep background and operational experience in city and county government. For over 30 years Mason has worked in all operations of local government and currently serves as Assistant City Manager for the City of Palo Alto, focusing on internal service support functions including human resources, administrative services, finance and budget, and technology services. From 1984 to 2009, Mason held increasingly responsible positions with the City of Long Beach. From 2007 to 2009, Mason served as the city’s Director of Human Resources where she directed operations for the city’s 6000 employees with responsibilities including labor relations, personnel operations and was lead negotiator with nine employee unions. From 2002 to 2007, Mason served as Long Beach’s Deputy City Manager where she directed internal city services including the departments of Finance, Human Resources, Technology and Library Services, and was responsible for the development and oversight of a $2.7 billion budget. She was also Manager of Business Operations for both the Energy and Parks and Recreation Departments. From 2009 to 2015, Mason served as the Director of Human Resources for Napa County’s 1,400 employees including labor relations, personnel, recruitment and hiring, benefits management, as well as leading negotiations for eight successful labor agreements with employee unions. Mason holds a bachelor’s degree in history from the University of California, Santa Barbara, a master’s degree in public administration from the University of Southern California, and is a graduate of the Senior Executives in State and Local Government program at Harvard’s Kennedy School of Government.
Derek Johnson, Assistant City Manager, San Luis Obispo, CA Derek Johnson is the Assistant City Manager with for the City San Luis Obispo and Interim Finance and Information Technology Director. Prior to stepping into his current roles, he served as the Community Development Director for the City of San Luis Obispo.
Before coming to San Luis Obispo, he served as the Director of Community Development in the City of Capitola and as Santa Barbara County's Director of Long-Range Planning. His expertise is in infrastructure financing, redevelopment and organizational development and change management. Prior to joining local government, he provided strategic planning and fundraising support to nonprofit agencies. He earned a bachelor's degree in environmental studies at UC Santa Barbara.
Succession Planning for Local Government Finance
Coaching Program February 11, 2016
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Coaching Program: 18th year as member benefit
Career Development Committee
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Overview of Session Topics: 1. What are the challenges to find and retain qualified finance professionals? 2. How can Finance Departments plan and adapt for a productive future? 3. What are examples of best practices you can consider? 4. What tools and resources can help your agency thrive? Presenters: * Suzanne Mason, Assistant City Manager, Palo Alto, CA * Derek Johnson, Assistant City Manager and Interim Finance Director, San Luis Obispo, CA Moderator: * Don Maruska, Director, CSMFO Coaching Program
Polling Question #1
How many persons are participating at your location?
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Succession Planning CSMFO
February 11, 2016
Suzanne Mason Assistant City Manager
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The Challenges We Face § Highly Competitive Labor Market
§ Seasoned Department Heads/Managers Are Retiring
§ Qualified Applicant Pool is Shrinking
§ Internal Candidates Not Prepared
§ Government Not Attractive to a Younger Generation (Lengthy Hiring Process and Bureaucracy)
§ PEPRA Benefits Limit Mid Level Managers
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80 million Baby Boomers (1946-1964) Leaving the Economy
50 million Gen Xers (1965-1980) Replacing Them
88 million Millennials (1981-2000) Entering the Workforce
The World Is Changing
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How Are Local Governments Responding § Looking Outside Organization for Talent
– Other Jurisdictions – Private Sector & Out of State
§ Paying Top $ to Attract Senior Managers Before Retirement
§ Retirees Hired To Mentor & Get Existing Managers Ready
§ Reorganization to Provide Leadership
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Succession Planning § Identify Key Leadership Positions § Identify Core Competencies & Success Factors § Assess Current Workforce & Identify Potential and
Gaps § Design and Implement Training and Development For
Key Talent § Monitor Success and Modify Programs
Polling Question #2
Which of these elements of succession planning has your organization undertaken?
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Succession Planning Won’t Work if You Do Not Have the Talent to
Develop
We Need to Grow Our Own Talent By
Beginning With the End in Mind…
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Challenges To Growing Our Own Talent § Not Hiring the Right People – Focus on Technical Skills
vs Core Competencies § Not Investing In Training Due to Competing Demands
for Resources & Time § Technical Training vs Leadership Training (soft skills
not emphasized) § Silo Employees: No One Wants to Give-up a Good
Employee § Flattened Organizations Eliminating Assistant &
Deputy Positions § Millennial Generation Not Attracted to Traditional
Government Organization
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§ Creating a Culture That Values Growth and Development of Employees Starts at the Top
§ Attracting and Hiring the Right Employees Critical § Flexible Personnel Rules and Classification Structure
Key to Attracting the Future Workforce § Investment in Training and Leadership Development
at All Levels (not only for senior staff) § Development Programs and Culture That Provides
Employees Varied Experience Early In Career § Create an Environment With Millennial Interests In
Mind (Include Them In the Process)
Succession Planning Needs to be Part of the Organizational Culture
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Creating a Culture that Values Growth and Development of Employees
§ What’s Important to the City Manager and
Department Head Gets Done § Value Employees Contributions § Support Training and Development Programs (Internal
and External) § Encourage Varied Experience in the Organization § Support Job Growth and Movement Within the
Organization § Expand Remote Work Opportunities Sabbaticals &
Leave Programs, Project Work Teams
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Attracting and Hiring the Right Employees From the Start
§ Create Internship Programs that Attract Top College and Graduate Students – Plan the Program and Dedicate Key Management
to Work with Interns – Provide Meaningful Work and Team Interaction – Provide Interaction With Organizational
Leadership – Pay Competitive Hourly Rate to Attract Top Talent – Develop Transition from Summer Internship to Full
Time Work at Graduation
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Attracting and Hiring the Right Employees From the Start
§ Hiring Process Needs to Attract New Generation – Revise Merit Rules (Merit Does Not Mean Bureaucratic) – On line tools – Relevant exercises & questions – Open and Competitive vs Static Eligibility List etc.
§ Hire and Evaluate Employees Based Upon Core Competencies – Hiring exercises focused on competencies not
technical skills – Be open to teaching the skills
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§ Insert Solano County Leadership Slide
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Value Employee Contributions & Create A Learning Environment
§ Dedicate Resources to Training & Development § Create Programs That Encourage Development and
Interaction (Brown Bag Lunches with Senior Management & Mentorship Programs)
§ Provide Time for Employees to Participate & Reward It
§ Train at All Levels, Not Just the Top § Participate In & Lead Regional Leadership Programs
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Value Employee Contributions & Create A Learning Environment
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Encourage Varied Experience in the Organization
§ Develop Cross Functional Project Teams on Core Projects
§ Include Employees At All Levels In Key Projects and Discussions
§ Develop Rotational Opportunities § Encourage Employees to Move to New Assignments
In The Organization (Reward Movement Not Loyalty)
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Leadership Training § Partner with Cities and Counties in the Region to
Create Leadership Training Opportunities – Develops Leadership Skills – Creates Relationships With Other Agencies – Creates Safe Learning Environment
§ Next Gen Silicon Valley – http://www.nextgensiliconvalley.org/
§ Centre for Organization Effectiveness http://tcfoe.com/index.phpss –
§ UC Davis Leadership Development Program https://extension.ucdavis.edu/areas-study/business-and-management/executive-leadership-program
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Best Practices § Change Recruitment and Hiring Process for the
Millennial Generation § Create An Environment That Values Employee
Contributions And Training At the Top § Investment In Employees & Flexibility to Attract and
Retain Talent Needs to Be Part of the Way We Do Business, Not a Special Effort
§ Invest In Training & Development At All Levels (Last Thing We Cut from the Budget)
§ Provide Opportunities for Varied Experience and Growth
§ Include the Newer Employees In Designing Hiring Process and Work Environment
Polling Question #3
Which of these best practices has your agency implemented?
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Succession Planning for Local Government Finance
Derek Johnson Assistant City Manager Interim Finance and Information Technology Director
National Trends
San Luis Obispo Story
¡ Strong Financial Management ¡ Investment Oversight Committee ¡ Revenue Enhancement Oversight Committee
¡ High Level of Community Engagement and Expectations
¡ 25-50% of Employees Turning Over Next Five Years ¡ Current Rate is 8-10% per year.
¡ San Luis Obispo ¡ Geographically Isolated ¡ High Cost of Living
Employee Turnover Rates (City-wide)
6%
8%
10% 10% 10%
357 353 355
362
389
330
340
350
360
370
380
390
400
0%
2%
4%
6%
8%
10%
12%
2011 2012 2013 2014 2015
Attrition Rate & Total Employees 2011 to current
Attrition Rate Total Employees
The Challenge
¡ Baby Boomer Turnover ¡ 30% are eligible to retire in next five years.
¡ Technology ¡ Outdated financial systems
¡ Competitive Job Market ¡ Fundamental Shortage of Qualified Professionals
¡ PEPRA
¡ Compensation and Geographic Remoteness
2005 Nokia IPhone 6
Planning for Today & Tomorrow
¡ How can Finance Departments plan and adapt for a productive future? ¡ Employee Engagement Survey ¡ Organizational Assessment ¡ Strategic Plan ¡ Deliberate Onboarding ¡ Build a Team ¡ Employee Development (soft skills, mentoring, structures
that provide experience, etc.)
Polling Question #4
Which of these planning and adaptation steps has your agency taken?
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GFOA Assessment S36
GFOA Recommendations
1. Replace Financial Systems 1. Define business needs 2. Create cross departmental teams 3. Develop system specifications and staff for system
integration and changes
2. Redefine Business Processes
3. Split Finance and IT into Two Departments 1. Clarify roles and responsibilities 2. Provide organizational focus
4. Develop Service Level Agreements 1. Set Quality Standards 2. Process Times 3. Responsibilities/Accountabilities
Polling Question #5
Which of the following areas of GFOA recommendations appear relevant for your organization?
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Smart & Healthy ¡ Strategy
¡ Process
¡ Tools
¡ Technology
¡ Minimal politics
¡ Minimal confusion
¡ High morale
¡ High productivity
¡ Low turnover
Organizational Development – Enhanced Service through Employee Recruitment and Retention
¡ Partnership with Centre for Organizational Effectiveness ¡ “Employee Engagement Survey (measure progress
over time) ¡ Transition, Supervisory and Leadership Programs ¡ 100 participants ¡ Team Projects ¡ Onboarding, Community Academy, Budget Process
¡ Considering further regional collaborations (County and neighboring Cities)
Transitions & Opportunities
Post-Webinar Discussion Questions
a. Where does our Finance team have particular needs now and in the future? b. What strategies appear desirable to help us ensure that we have qualified people to fill them? c. What tools and resources can help us move forward?
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Polling Question #6
How was the webinar of value for you and your agency?
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Contacts for today’s webinar
Presenters: * Suzanne Mason, Assistant City Manager, Palo Alto, CA [email protected] * Derek Johnson, Assistant City Manager and Interim Finance Director, San Luis Obispo, CA [email protected] Moderator: * Don Maruska, Director, CSMFO Coaching Program [email protected]
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Resources and Feedback
A digital audio recording of the session and an Agenda packet with PDF of the PPT with polling results and other materials will become available in ~ 24 hours at the “Agendas & Archives” tab of www.csmfo.org/training/webinars Other coaching resources, including volunteer one-to-one coaches are available at www.csmfo.org/training/coaching Please complete the follow up survey, including suggested topics for 2016 webinars.
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See you at the CSMFO Annual Conference
“Speed Coaching – find the answers you need” 4:00 – 5:15 p.m. Thursday, March 3, 2016
City of Palo Alto Internship Program
As we see the retirement of our colleagues, we’re reminded of the gap they leave behind. This gap paves the way for entry and middle level staff to grow in the organization. However creates another gap at the front lines. This latter opening is an opportunity for younger people to see the benefits of public service. One of the best ways to accomplish this is by providing internship programs to the younger generation that will one day need to fill our shoes.
• Why internships? – If structured properly, they give interns an insider’s view into management level work within local government. This is a proven way of stimulating future interest in public sector careers.
• Who is eligible? – The internships will be for undergraduate, graduate students and recent
graduates seeking employment in local government.
• Which departments should create internship opportunities? – Every department should review its operations and determine if there are specific projects that could use the assistance of an intern. Additionally, the work must be meaningful and help to pique the intern’s interest in local government. The work must not replace existing employees or their work. The best projects will be those that are time limited and produce meaningful outcomes.
• When will the internships occur? – During the summer months (June – August).
• How long should the internship last? – Internships should last six to twelve weeks, depending on
the project. Interns cannot exceed 416 hours.
• How will the internships be funded? – The funding will come from the Department’s, City Manager’s Contingency Fund, and the Public Works and Utilities enterprise funds.
• How much should we pay them? – Compensation can be volunteer, stipend, or an hourly rate.
Given the current state of the budget, we encourage volunteer internships.
Bid Guidelines The selection of internship positions will be based on a bid process. Answers should be provided for the following questions: (see attached memo)
1. What specific projects/work assignments will the intern perform? 2. What are the specific outcomes? 3. Why is the project important to your department? 4. Who will serve as the intern’s immediate supervisor? 5. What can the intern expect to learn from the experience in the department?
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6. Any other comments regarding the department’s ability to provide a meaningful experience for the intern?
7. How long is the proposed internship? (# of weeks & hours per week) 8. What is the suggested compensation (volunteer, stipend, or hourly wage)? Can it funded by the
department? 9. Are you looking for an undergraduate or graduate student?
Polling Results from “Succession Planning in Local Government Finance” – webinar February 11, 2016
87 locations; 154 estimated participants in live audience