As organisations prepare for significant structural change, there is value in looking to places that have already been through it.
Australia and New Zealand have both experienced major local government reorganisation. Queensland reduced the number of councils from 157 to 73 in 2007, while Victoria reduced theirs from 210 to 78 in less than two years. New Zealand has taken a different approach, with a more consolidated local government structure and a strong focus on regional alignment and local representation.
The UK should not simply copy either model. The circumstances are different; however, their experiences do raise some practical questions that councils should be asking now.
Firstly, reorganisation is only the beginning. Creating a new council on paper does not mean creating a new organisation overnight. Councils can spend years dealing with inherited systems, processes and data if these things are not tackled early.
There will inevitably be an awkward middle. Legacy systems may need to operate alongside new ones, data needs to be migrated, employment arrangements brought together and different ways of working aligned. The financial case for reform needs to recognise these transition costs and be realistic about when benefits can actually be delivered.
Secondly, scale only delivers value if it builds capability. Larger councils can create greater capacity in areas such as finance, digital, procurement and major projects. But those benefits need to be designed into the new organisation rather than assumed to come automatically with consolidation.
This is where technology can make a real difference. At TechnologyOne, we have seen through our work with councils across Australia and New Zealand how a common technology platform can help turn structural change into a more joined-up way of working.
Our OneCouncil approach brings core functions including finance, workforce and assets together on a single enterprise platform. Instead of simply connecting multiple legacy environments, it gives councils shared data, common processes and a clearer view of the organisation as a whole.
Thirdly, don't wait until vesting day. New Zealand's experience shows the value of engaging early and thinking carefully about how reform will work in practice. For UK councils, that means starting now to think about the organisation they want to become. What should be standardised? Where should decisions sit? How will information be shared? And where do genuinely local differences need to be maintained?
Perhaps the biggest lesson is simple: don't merge the problems. Reorganisation is an opportunity to build stronger councils, not simply bigger ones. If councils get the operating model, data and technology right from the outset, structural change can create greater capacity and give them a stronger foundation for delivering for their communities over the long term.
Emma Foy is local government lead, TechnologyOne UK
Read more about TechnologyOne OneCouncil at www.technology1.co.uk/industries/local-government.
