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New technology and organizational change in local authorities
Con~pur. Enriron. Urban Sysrems Vol. 10. No. I. pp. 9-18, Printed in Great Britain
019%9715/85 $3.00 + 0.00 Pergamon Press Ltd
1985
NEW TECHNOLOGY AND ORGANIZATIONAL CHANGE IN LOCAL AUTHORITIES (Introductory Paper) ERIC W. HOWARD Local Authorities Information Systems, St. Kilda, Australia
INTRODUCTION LOCAL government
computing is a rapidly changing activity in Australia at present. The spread of microcomputing and development of attractive software and peripherals is placing pressures upon users, EDP specialists and most of all upon senior management to devise appropriate management strategies for computing and computing resources within local authorities. Management is being compelled to coordinate computing activities, which require adoption of a corporate approach to information processing priorities and applications development. This paper discusses these issues and describes the Australian local government environment which has produced a distinctive user/specialist relationship, and has resulted in current information resources management practices. Local government is vulnerable to failure of the new technology and will become increasingly exposed unless senior management develop positive procedural and training activities and staff are actively encouraged to maintain their professional expertise. Use of microcomputing is extending very quickly throughout Australian local government as improved capabilities and falling hardware costs compel potential users to tackle the technology. The paper considers issues of vulnerability together with potential benefits and difficulties associated with the new technology, and the pressures upon organizational structures arising from these new developments.
OVERVIEW OF INFORMATION IN AUSTRALIAN LOCAL
AND PROCESSING GOVERNMENT
The use to date of computer-based systems within local government been that directed by the available technology and, in particular, organizational environment.
throughout Australia has by the local authority
ENVIRONMENT Local government in Australia comprises 837 separate authorities serving the Australian population of 15.2 million people, in seven states or territories which are part of the three-level federal system of government, similar in many ways to the Canadian system. Three characteristics of relevance to the consideration of computer systems use in local authorities in Australia are:
(4
(b)
Municipalities are controlled by state government legislation in each state. Functions of local authorities vary only in minor ways from state to state, but until recent years, interaction between local authorities in different states was absolutely minimal. Australian local government as a model, lies somewhere between the widely dispersed and strongly autonomous U.S.A. system and the more centralized U.K./Scandinavian/Japanese systems. The populations of municipalities range from greater than 500,000 in some of the state capital cities to less than 2000 in some rural areas, with a median population of some 18,000 and average outlays of $4 million. Most authorities essentially, therefore, serve small populations and have low levels of resources. 9
ERIC W. HOWARD
10
(c)
Functions of Australian municipalities do not include education, police, transportation, hospitals or emergency services (some financial contributions are levied) which are all state government responsibilities. This reduced scale of responsibilities has significant consequences for introduction and use of new technology.
The role of central government, particularly state governments, is therefore of significant importance to Australian local government, and communication between both levels of government is correspondingly a fundamental factor in achieving effective local government. A well-established and defined series of administrative linkages has developed in each state, between municipalities and relevant state government departments through whom federal finance is channelled to local government, augmented with state government funds. On the other hand, linkages between local government and the Australian government have been indirect and variable. However, the federal government elected in March 1983 has formed a Department of Local Government and Territories which is the first national local government ministry and the ministry has developed a series of policies which include the following emphases:
constitutional recognition of Local Government -inquiry into the desirable range of functions and methods of financing -funding on both a per capita and on a needs basis -special purpose grants and loans to areas of need -regular reporting on the impact on local government of commonwealth -staff exchange and training assistance -development of local level current information services and management
support
The inclusion of a policy for development of local level information services is highly significant. Local government will clearly receive federal government encouragement to improve current information services and systems. TECHNOLOGY IN THE ENVIRONMENT
ABOVE
Data processing was adopted by some larger local authorities in the late 1960s and early 1970s. During the 1970s the development of lower cost minicomputers enabled computer systems to become feasible alternatives for medium size local authorities. Most authorities, however, did not adopt computer systems until the late 1970s and early 1980s. On-line processing for data entry and enquiry utilizing minicomputers began to be adopted from 1978 onwards. Significant difficulties were encountered by most first-time users in successfully introducing computerized systems. The past five years have witnessed an expensive and often harrowing learning process in action. Local government attitudes to computing today are more mature and expectations are more realistic. While in 1984, small authorities no longer face an entry cost barrier to computing, there are two significant factors which continue to retard its introduction: (a) (b)
Resources are often not available in small authorities to investigate benefits, to evaluate technology and available applications and to install and operate systems. Until recently software to handle the diverse and small data volume needs of small authorities was too expensive; insufficiently flexible and not readily useable by noncomputing professionals, to be attractive to small local governments, and thereby encourage their use of computer systems.
However, with current microcomputer systems and steady growth in appropriate software, very few authorities will be prevented from adopting computer systems for at least some applications in the near future.
New technology
and organizational
change
in local authorities
II
For the authorities who introduced EDP prior to 1980, the emphasis was on automation of previously manual or electromechanical systems in two major fields-the financial and property file/tax billing areas. In most instances computer systems oriented towards these two applications were installed with little consideration for future information-related applications. Indeed software and affordable hardware was not available for these further needs. Although this is no longer the position Australian local government has been slow to adopt these new applications. Therefore, in contrast to the well-defined property file/financial applications, which were well understood by user staff and senior management, recent developments in information technology and the opportunities they provide for information processing are not, as yet, widely appreciated by local government. The new technologies present initial difficulties for users, management and DP staff in understanding what can be achieved and fundamental problems for senior management determining resource allocations and priorities. King [I], in a paper on future trends in local government computing sums up these problems as follows: “Use of computing raises traditional political issues about who controls the technology and whose interests are served by its introduction and use. Yet these issues, which have profound impacts on the spread of the technology, are usually ignored by the technology forecasts. Politically determined rules about organization of the technology. priorities for system development and use, and other issues can stimulate or retard the technology’s expansion within local governments.”
The new structures.
technology
will impact
significantly
CHANGING USERS
upon
local
government
internal
organizational
RELATIONSHIPS BETWEEN AND DP SPECIALISTS
The roles of the user and the data processing specialist are certainly changing rapidly in local government. There are particular characteristics of Australian local government computing that have the potential to restrict a desirable user/specialist interaction, and these factors are discussed below. However, it is senior management who are finding it most difficult to come to terms with the change going on around them. They have to face questions such as: What are the appropriate mechanisms for user/specialist cooperation? How can the outputs of that interaction be effectively managed? What approach should then be taken towards subsequent emerging needs for organizational change in overall structure and for individual personnel? Senior management have to take the key decisions on the specific computerized procedures to be introduced to their organization and the way in which these information processing systems are to operate. They need to understand that the technology has certainly reached the point where, with careful planning and selection of applications, it can be introduced in a way which reflects the desired functional structure of the organization. The challenge that is facing senior management more than ever before is to learn and to utilize the necessary skills for the management and development of computing resources within their organization and to implement a planned introduction of the technology over time. An essential prerequisite to the acquisition of these resource management skills is a basic knowledge of feasible computer applications. A considerable educational activity is needed to equip senior management with that knowledge. The technology itself through, for example, the availability of useful and readily usable small packages on micros is assisting users and management to increase their understanding of available options and to develop their perceptions of computerbased solutions in the information handling and processing area. BUCthe initiative must come from individual managers. Appropriate “encouragement” activities to aid management to seek some training is essential and this requires involved agencies in each state to provide and facilitate this training. What characteristics of computing in Australian local government impact upon the user/specialist interaction? Firstly, many local authorities in Australia do not employ in-house DP specialists, due principally to the restricted scope of computer applications used to date and the small size of
12
ERIC
W.
HOWARD
municipalities. These local authorities utilize contract software houses to supply, install and support applications software. Secondly, the concentration of computing resources in one area, usually the finance department, resulting from initial restricted introduction of applications (usually accounting and property systems), has tended to isolate the balance of the organization from access to computing resources and from any active involvement in, or agitation for, organizational strategic planning for future computing needs. Thirdly, in the above circumstances with contract software support, a staff member has to assume the role of DP specialist, often in a situation of limited knowledge of computing and a restricted perception of the organization’s overall needs and priorities. In these instances, management needs to recognize that training and reallocation of duties will be necessary to develop a key staff member into the organization’s information processing specialist or, alternatively, to engage contract consulting services more extensively for this purpose. A significant number of Australian local authorities are currently moving to appoint a DP systems analyst/programmer for the first time, prompted by the often poor performance of contract software houses and the desire to improve communication between users and systems people. Medium size authorities without computer systems staff, who continue to utilize contract software support, have in the past retained consultants for initial systems evaluation and installation. However, for later system enhancement requirements the lack of an in-house computing specialist is emerging as a major constraint in areas such as: provision of advice to users; the selection of “acceptance criteria” for new applications software; the testing procedures to ensure those criteria are complied with, and the development and updating for senior management of an ongoing computing resources plan. Whether consulting services are utilized or existing in-house staff are trained and reassigned, both options are requiring municipalities to allocate resources. However, this commitment is essential to ensure effective organizational use of the new technology. The existing specialists have to confront the changing circumstances of computing. In a review of DP procedures within the Australian Public Service [2], it was concluded that DP specialists “should have a management perspective and not simply a focus on technology” and that training should be provided to DP managers “to expand their skills in administrative management and their understanding of the (organization’s) operational objectives”. These viewpoints are certainly currently applicable to the local government computing specialist. Knowing the direction in which the organization is moving is vital, if appropriate assessment of user requests and optimum guidance to users is to be achieved. Computer systems specialists with many local authorities are moving towards adopting a more senior management role in assessing priorities and providing advice to users. This contrasts with the task-specific duties of past DP managers. While there is no doubt that users are now taking the initiative in seeking implementation of further applications in the information processing field, it is clear that they need advice and assistance more than ever before.
6050 40 3020lo0
__--+-1960
/’ 1970
// 1 19R0
_
% of appkations by DrofessIonal
___~
%
by
Fig. I. From
, 1990 anaIysed edp experts
of oppl~c(li~ons managers and
chauffeur
driving
onoiysed end-users
1 EOOC and
programmed
and programmed
to self-driving
(Nijssen)
New technology
and organizational
change
in local authorities
13
In a paper on information systems and the community, Nijssen [3] presented his view of the contrasting and changing percentages of information systems which have been and will be produced by computer experts in comparison with non-specialist management and user staff. In accepting this trend and in seeking to harness this enthusiasm it is important that users are assisted to understand what is possible with the technology and how the outcomes of their proposals will impact upon and improve their working situation. They need to develop these proposals in conjunction with in-house DP staff or software support contractors as appropriate. In the Group Discussion Report on information resource management, at the Mont Sainte Marie Workshop in 1982 [4], an important role of the DP department in an organization was considered to be making “data and information available to users rather than just managing data”. Over the past two years this trend has accelerated considerably. Meeting the growing demand for user education and information is the greatest challenge to DP staff. In order to respond effectively to user requests for information, the DP specialist needs to develop an understanding of the problems and to provide advice and guidance to users in for which the users are seeking solutions, development of those solutions in accordance with an information processing policy approved by the local authority. A positive and healthy DP/user interface has been demonstrated to be crucial to development of further applications. Increased co-operation between users and specialists is occurring, slowly but positively, in many Australian local authorities. Difficulties in successful communication and achievement in these matters are often compounded when DP services are provided by contract. Particular effort is called for in this situation to achieve satisfactory interaction. As computing expands within local authorities, more expertise will be developed in-house and less reliance placed upon ongoing contract support. INFORMATION
RESOURCE
MANAGEMENT
Information is a fundamental resource of government, particularly local government. Public demands for improved quality and ease of access to information is growing continually, certainly in Australia. Reflecting this social pressure, freedom of information legislation has recently (1983) been enacted by the Australian government and most state governments. In the near future similar legislation will require local government to respond in the same way. As the technology now enables many elements of an information resource item to be aggregated rather than stored manually as components in separate departments, there is certain to be a significant impact upon all local government organizations which will formalize and change past methods of data collection, entry, storage and retrieval. Rsmer [5], at the Mont Sainte Marie Workshop, pointed out that to introduce these information systems within an organization usually implies cross-organizational and integrated decision making by departments (or individuals in smaller councils). This group decision making requirement will significantly expedite the development of corporate planning and management within local authorities. In differentiating between corporate information (held on the central system) and departmental information (which could be held on the central system or on a localized system), local authorities in Australia are struggling to develop strategies to cope with the microcomputer explosion. Parker [6] contends that “the current debate regarding the restructuring of the centralized computer centre to accommodate the dispersed capabilities of microcomputers focuses on organizational objectives and structural adjustments. However, microcomputers are not confined to the central processing role established by mainframe computers. The new role for micros is not as a hidden number-cruncher of ever growing proportions, but rather a result of the compatibility of its computational powers with the usual amount of information available for individuals to make decisions. The microcomputer can thus become an integral tool in the decision making process of a person who was not computer trained”. The existing alternative models for local government computer installations in Australia which encompass most information systems facilities are set out below. There will be many microcomputers installed without the provision of communications with the central system. Due to the ease with which separate departments may now obtain micros, coordination of equipment purchase throughout a local authority has not been achieved so far in
ERIC W. HOWAKD
0
OR
Fig. 2. Two
types
of systems.
most councils. Senior management has to face the need to manage, in a coordinated manner, the selection of systems and equipment, in accordance with a corporate policy. The “information centre” concept has been adopted by some local government authorities in North America to assist users to select equipment and software, to plan applications, and to receive training and support, with the assistance of centre staff and DP staff, thereby ensuring that the organizations’ information policy is being followed. Bomberger, in “Local Governments’ Use of Computer Graphics” [7], a paper delivered to URPIS 11 in Brisbane in November 1983, indicates that (in the U.S.A.) “many local governments have adopted the concept. Ironically, the information centre has become so successful in educating end users that the demands on the DP department are increasing rather than declining”. Some local authorities in Australia have informally achieved this result, but no calculated “information centre” approach has been used. The remarkable advances in microcomputing in the last three years have occurred in parallel with numerous communications developments and those changes which have implications for Australian local government include: @Local area networks for personal computers. @Micro to mainframe communications in limited but significant developments. @Development of packet switched data networks with transmission costs not dependent upon distance of transmission-of particular relevance for small data volume traffic from remote areas-a key element in the Australian context. @Development of videotex services-Australia has been slow to adopt this technology. Private services are now operational in Australia and the public videotex service, to be known as Viatel, is to commence operation (by Australian Telecom) in early 1985. A pilot local government videotex service is planned to commence in late 1984. @Cost-effective telephone system access to expanded information data bases provided by private companies. Exploitation of these possibilities has been minimal to date in Australian Local Government. However all of these communications developments provide expanding challenges and oppor-
New technology
and organizational
change
in local authorities
15
tunities for information resource management particularly for in-house information to which external public access is to be provided. In an interesting paper, “Information, Information Systems and the Community”, Philbrick [8], in describing the Brisbane City Council information provision experience, discusses future methods of communication between local government and the community and the implications of these future methods for local government/community relationships. He considers that there are three main types of information flows: (1) Community sought information-The community seeking information on various issues and services. (2) Local government provided info~ation---Dissemination of information by local authorities on specific issues. (3) Local government sought information---Continuing and varied contact with individuals and organizations by elected members and council staff. In addressing these information flows, which are external to the local authority organization, there are extended challenges for all local governments in the management of info~ation beyond in-house information systems operation, and these external information requirements will expand quickly. The involvement of local government in information provision depends upon its functions as much as availability of resources. The widely dispersed and relatively small size of Australian local authorities contrasts with the broader responsibilities and far larger central state governments. For many major applications, the development of databases of information (for example, digital mapping of properties and services locations) will only be possible if state governments resolve to take appropriate action and prepare these databases. The various state governments in Australia have now embarked upon preparation of computerized spatial land information systems, including property valuation and tax data. In this environment local government needs to cooperate closely with central government to achieve the most appropriate results. Barriers to this cooperation in the Australian context include fear of central government by local authorities, the significant differences in scale-many orders of magnitude---between state and local governments often resulting in communications difficulties, and reluctance by central government to recognize the varying requirements of individual local authorities. For example, information should be available from central government in a form that enables local authorities to manipulate the data and provide an output format for final data presentation which meets local requirements. As information exchange grows, as it certainly will, effective communication and agreement on computing links between levels of government will become even more critical. Effective co-ordination of local authority policy in this area by local government associations in each state is necessary to ensure that a cohesive local government viewpoint can be conveyed to central government on these “information’‘-related matters which are an essential element of the communications between both levels of government.
LOCAL GOVERNMENT DEPENDENCE UPON INFORMATION TECHNOLOGY AND RESULTING OPERATIONAL VULNERABILITY For a variety of reasons, most local authorities in Australia have experienced fears associated with a perceived increase in vulnerability due to the introduction of EDP systems. The reliance upon contract software houses for supply, and particularly ongoing support in the absence of any in-house EDP staff; the remote location of many country authorities (by European standards) from major city software~hardware suppliers, especially for software support; the marginal viability of software houses due to the small and fragmented nature of the local government software market, with different legislative conditions between states and highly varied authority size within states, are some of the factors contributing to this risk perception. Unfortunately, in recent years in a significant number of installations, these fears have been realized.
16
ERIC W. HOWAKD
There is little doubt that inadequate awareness of the technology by senior management in local authorities has been another key factor in perceived and actual vulnerability. There has been and there is a widespread need for information and education for senior local government management in all relevant areas of the new technology. This is a personal and individual responsibility, but the various professional associations, local government computing services, central government agencies for local government, and the educational institutions all have a vital role to play in further education, certainly in Australia and I suspect in most other countries. Increased distribution of the technology throughout the office resulting from on-line minicomputer systems and microcomputers linked to the central system, requires increased management control and clearly defined policies for data entry procedures, data reliability responsibilities and avoidance of dual data storage. As the technology encourages more authorities to provide external access by the general public to specific information stored on their computer systems through, for example, view data systems, the importance of data reliability and data currency will increase requiring even more stringent management control over data stored. The support of the organization’s information requirements when the corporate computing system is “down” is of course a critical issue for all local authorities. Reliance on computer systems can lead to chaos if breakdowns occur and a return to manual methods results in long delays-delays we now accept and manage to cope with but in future will not be geared to accommodate. A Group Discussion paper from the Mont Sainte Marie Workshop [9] discussed the importance of a clearly understood disaster plan in the organization if the information system malfunctioned severely. While distributed processing (particularly with the advent of micros) improved hardware and software, and effective training of operator and user staff should result in reduced downtime risks in future, it is clear that any organization should have contingency plans in place. Professionally competent and experienced user staff who understand the various applications which may be affected are the best possible insurance against information paralysis. Local authorities need to ensure that professional staff do not develop “unthinking” reliance on computer systems and can reconstruct problems and develop solutions manually if necessary. Their knowledge and skill in re-creating current situations by updating specific information from regular hard-copy back-up listings, combined with DP staff who have introduced operator training and adequate programme and systems documentation, are the two key risk minimization elements any local authority could rely upon. As a counterargument to the vulnerability issue, many Australian local authorities have indicated the benefits to the total organization when information is gathered and stored in a formal manner and is available to the total organization. This usually only occurs when computerized information systems are introduced. It is a common experience that most organizations tend to rely to a greater or lesser extent on the knowledge of individuals regarding many information elements, which are not recorded in any physical form. Recent local government enthusiasm evident at demonstrations of automated property and utilities information mapping systems has highlighted the potential benefits of comprehensive information systems.
MICROCOMPUTERS AND LOCAL GOVERNMENT
THEIR IMPACT OPERATIONS
ON
Micros are having a most dramatic impact upon local government throughout Australia in common with other countries. The micro explosion is just beginning to occur in Australian local government. For the small local authority micros have enabled a corporate computing resource on a stand-alone or networked basis to be introduced at feasible cost levels. For the medium sized authorities, they are providing departmental computing facilities with links to the central corporate minicomputer system. Introduction of micros is currently occurring most rapidly in the technical computing areas, but financial modelling for finance departments and records management/word processing in all departments are also highly popular applications.
New technology
and organizational
change
17
in local authorities
In the large authorities, the micro is replacing the standard terminal to provide local computing resources plus central system access. The major impact of the micro in Australian local government, however, has been the appreciation and understanding of computer systems benefits by senior and middle management staff, who for the first time in many instances have an accessible tool which provides powerful assistance to their personal or departmental work-loads. Computers are now being regarded as solutions and not as problems. This is a perspective that all sectors of the information industry in local government, from DP managers to end users, should welcome. Applications such as cash flow and budget forecasting, automated depreciation schedules for assets registers; road design contour plotting and drainage design; automated drafting using interactive screen graphics; word processing; traffic analysis and modelling; demographic analysis; data storage, sorting and retrieval for a variety of purposes; structural analysis and graphic outputs of information are typical of the rapidly expanding uses for microcomputing and local government senior management (usually prompted by potential user staff,) are catching on very quickly. The steady growth of available software and the remarkable developments in the hardware field-high resolution colour graphics, screens, low cost drafting plotters, increased central memory and hard disc capacity are all accelerating the use of micros. What are the problems the growth of micros will lead to? Very clear concise guidelines from local authority senior management are needed to ensure that a definite policy will be followed. This corporate information policy must be in place and should define which information is corporate data and which may be considered as departmental or personal. Other measures to deal with potential hazards include the need for: standards for documentation of applications; housekeeping procedures for the operation and back-up of systems; and monitoring mechanisms for the total distributed computing resource across the organization through, for example, a users committee, including DP staff, and chaired by senior management. The limitations of micros in handling larger databases needs to be acknowledged before data entry proceeds to the stage of capacity difficulties requiring abandonment or modification of the proposed application. Three further potential problem areas in the use of micros can be categorized as follows: (1) Auditability-Adequate audit trials for computing procedures have not yet been developed for micros, and this is a major deficiency in comparison with larger computers. (2) Compatibility-Adequate planning is required to provide compatible computing facilities to enable networking for communication throughout the organization. (3) Security-Protection of data held on micros, through access restrictions, is much more difficult than for larger computers. Management need to be sensitive to this issue. These constraints particular tasks.
need to be kept in mind
in an assessment
of the suitability
of micros
for
CONCLUSION The new technology continues to challenge us and offers an ever broadening range of aids to the local government industry. Australian authorities will continue to adopt the new technology, and current levels of information exchange between authorities will expand and benefit local government. Computing will become increasingly embedded in local government activities, and this added complexity will bring problems and difficulties leading to pressure to alteration in existing computer resources management. The formalization of existing data stored in a variety of non-automated systems, the need for centralized control over information to establish proprietorship, reliability consistency and integration compel local authority senior management to consider computing as a corporate resource, relying upon effective involvement of users right across the organization. This is significantly different from most existing local authority information systems and their operating structures. Improved communication and decision-making techniques will be needed and a senior management staff will be required to adopt a total corporate viewpoint to establish priorities.
18
Senior management computing resources. tertiary institutions.
Emc
W.
HOWARD
are now required to become proficient in handling the management They will require training and specialized courses are required from
of the
REFERENCES 1. King J. L. Local Gorernmmt Use of Infiwmation Technology, The Next Decude, Public Policy Research Organisation, University of California, Irvine. Technology in the Australian Public Service, Paper in Technological Change-Impact of 2. Cole W. Information Information Technology, Department of Science and Technology, Australia (1983). Proceedings, Brisbane, 3. Nijssen G. M. Intelligent Information Sysfems and the Communirq, URPIS II Conference Australia (1983). 4. Group Discussion Report. Proceedings of 1982 International Workshop on Local Government and Information Technology, Comput. Environ. Urban Systems 8, 25-29 (1983). 5. Romer M. D. Policy Issues Facing Local Government Computing and Some Available Strategies, Proceedings of I982 International Workshop on Local Government and Information Technology, Comput. Environ. Urban Systems 8, l-10 (1983). 6. Parker P. Technological Change Reaches a Personal Threshold: Choice. Change and Constraints M’ith a Personal Computer, Paper at Section 21 of 53rd ANZAAS Conference. 7. Bomberger D. L. Local Gowrnments U.ve qf Computer Graphics. URPIS 11 Conference Proceedings, Brisbane, Australia (1983). 8. Philbrick A. T. Information, Irzformution Systems and the CommunitJ~: The Brisbane City Council Example, URPIS 11 Conference Proceedings. Brisbane, Australia (AURISA, Australia) (I 983). 9. Group Discussion Paper. Local Government Dependence on Ittformation Technology, Proceedings of 1982 International Workshop on Local Government and Information Technology, Comput. Environ. Urban Systems 8, 4549 (1983). E. W. Computer Technology in Local Government, Foundation for Technical Advancement of Local 10. Howard Government in Victoria, Research Report (1983).
019%9715/85 $3.00 + 0.00 Pergamon Press Ltd
1985
NEW TECHNOLOGY AND ORGANIZATIONAL CHANGE IN LOCAL AUTHORITIES (Introductory Paper) ERIC W. HOWARD Local Authorities Information Systems, St. Kilda, Australia
INTRODUCTION LOCAL government
computing is a rapidly changing activity in Australia at present. The spread of microcomputing and development of attractive software and peripherals is placing pressures upon users, EDP specialists and most of all upon senior management to devise appropriate management strategies for computing and computing resources within local authorities. Management is being compelled to coordinate computing activities, which require adoption of a corporate approach to information processing priorities and applications development. This paper discusses these issues and describes the Australian local government environment which has produced a distinctive user/specialist relationship, and has resulted in current information resources management practices. Local government is vulnerable to failure of the new technology and will become increasingly exposed unless senior management develop positive procedural and training activities and staff are actively encouraged to maintain their professional expertise. Use of microcomputing is extending very quickly throughout Australian local government as improved capabilities and falling hardware costs compel potential users to tackle the technology. The paper considers issues of vulnerability together with potential benefits and difficulties associated with the new technology, and the pressures upon organizational structures arising from these new developments.
OVERVIEW OF INFORMATION IN AUSTRALIAN LOCAL
AND PROCESSING GOVERNMENT
The use to date of computer-based systems within local government been that directed by the available technology and, in particular, organizational environment.
throughout Australia has by the local authority
ENVIRONMENT Local government in Australia comprises 837 separate authorities serving the Australian population of 15.2 million people, in seven states or territories which are part of the three-level federal system of government, similar in many ways to the Canadian system. Three characteristics of relevance to the consideration of computer systems use in local authorities in Australia are:
(4
(b)
Municipalities are controlled by state government legislation in each state. Functions of local authorities vary only in minor ways from state to state, but until recent years, interaction between local authorities in different states was absolutely minimal. Australian local government as a model, lies somewhere between the widely dispersed and strongly autonomous U.S.A. system and the more centralized U.K./Scandinavian/Japanese systems. The populations of municipalities range from greater than 500,000 in some of the state capital cities to less than 2000 in some rural areas, with a median population of some 18,000 and average outlays of $4 million. Most authorities essentially, therefore, serve small populations and have low levels of resources. 9
ERIC W. HOWARD
10
(c)
Functions of Australian municipalities do not include education, police, transportation, hospitals or emergency services (some financial contributions are levied) which are all state government responsibilities. This reduced scale of responsibilities has significant consequences for introduction and use of new technology.
The role of central government, particularly state governments, is therefore of significant importance to Australian local government, and communication between both levels of government is correspondingly a fundamental factor in achieving effective local government. A well-established and defined series of administrative linkages has developed in each state, between municipalities and relevant state government departments through whom federal finance is channelled to local government, augmented with state government funds. On the other hand, linkages between local government and the Australian government have been indirect and variable. However, the federal government elected in March 1983 has formed a Department of Local Government and Territories which is the first national local government ministry and the ministry has developed a series of policies which include the following emphases:
constitutional recognition of Local Government -inquiry into the desirable range of functions and methods of financing -funding on both a per capita and on a needs basis -special purpose grants and loans to areas of need -regular reporting on the impact on local government of commonwealth -staff exchange and training assistance -development of local level current information services and management
support
The inclusion of a policy for development of local level information services is highly significant. Local government will clearly receive federal government encouragement to improve current information services and systems. TECHNOLOGY IN THE ENVIRONMENT
ABOVE
Data processing was adopted by some larger local authorities in the late 1960s and early 1970s. During the 1970s the development of lower cost minicomputers enabled computer systems to become feasible alternatives for medium size local authorities. Most authorities, however, did not adopt computer systems until the late 1970s and early 1980s. On-line processing for data entry and enquiry utilizing minicomputers began to be adopted from 1978 onwards. Significant difficulties were encountered by most first-time users in successfully introducing computerized systems. The past five years have witnessed an expensive and often harrowing learning process in action. Local government attitudes to computing today are more mature and expectations are more realistic. While in 1984, small authorities no longer face an entry cost barrier to computing, there are two significant factors which continue to retard its introduction: (a) (b)
Resources are often not available in small authorities to investigate benefits, to evaluate technology and available applications and to install and operate systems. Until recently software to handle the diverse and small data volume needs of small authorities was too expensive; insufficiently flexible and not readily useable by noncomputing professionals, to be attractive to small local governments, and thereby encourage their use of computer systems.
However, with current microcomputer systems and steady growth in appropriate software, very few authorities will be prevented from adopting computer systems for at least some applications in the near future.
New technology
and organizational
change
in local authorities
II
For the authorities who introduced EDP prior to 1980, the emphasis was on automation of previously manual or electromechanical systems in two major fields-the financial and property file/tax billing areas. In most instances computer systems oriented towards these two applications were installed with little consideration for future information-related applications. Indeed software and affordable hardware was not available for these further needs. Although this is no longer the position Australian local government has been slow to adopt these new applications. Therefore, in contrast to the well-defined property file/financial applications, which were well understood by user staff and senior management, recent developments in information technology and the opportunities they provide for information processing are not, as yet, widely appreciated by local government. The new technologies present initial difficulties for users, management and DP staff in understanding what can be achieved and fundamental problems for senior management determining resource allocations and priorities. King [I], in a paper on future trends in local government computing sums up these problems as follows: “Use of computing raises traditional political issues about who controls the technology and whose interests are served by its introduction and use. Yet these issues, which have profound impacts on the spread of the technology, are usually ignored by the technology forecasts. Politically determined rules about organization of the technology. priorities for system development and use, and other issues can stimulate or retard the technology’s expansion within local governments.”
The new structures.
technology
will impact
significantly
CHANGING USERS
upon
local
government
internal
organizational
RELATIONSHIPS BETWEEN AND DP SPECIALISTS
The roles of the user and the data processing specialist are certainly changing rapidly in local government. There are particular characteristics of Australian local government computing that have the potential to restrict a desirable user/specialist interaction, and these factors are discussed below. However, it is senior management who are finding it most difficult to come to terms with the change going on around them. They have to face questions such as: What are the appropriate mechanisms for user/specialist cooperation? How can the outputs of that interaction be effectively managed? What approach should then be taken towards subsequent emerging needs for organizational change in overall structure and for individual personnel? Senior management have to take the key decisions on the specific computerized procedures to be introduced to their organization and the way in which these information processing systems are to operate. They need to understand that the technology has certainly reached the point where, with careful planning and selection of applications, it can be introduced in a way which reflects the desired functional structure of the organization. The challenge that is facing senior management more than ever before is to learn and to utilize the necessary skills for the management and development of computing resources within their organization and to implement a planned introduction of the technology over time. An essential prerequisite to the acquisition of these resource management skills is a basic knowledge of feasible computer applications. A considerable educational activity is needed to equip senior management with that knowledge. The technology itself through, for example, the availability of useful and readily usable small packages on micros is assisting users and management to increase their understanding of available options and to develop their perceptions of computerbased solutions in the information handling and processing area. BUCthe initiative must come from individual managers. Appropriate “encouragement” activities to aid management to seek some training is essential and this requires involved agencies in each state to provide and facilitate this training. What characteristics of computing in Australian local government impact upon the user/specialist interaction? Firstly, many local authorities in Australia do not employ in-house DP specialists, due principally to the restricted scope of computer applications used to date and the small size of
12
ERIC
W.
HOWARD
municipalities. These local authorities utilize contract software houses to supply, install and support applications software. Secondly, the concentration of computing resources in one area, usually the finance department, resulting from initial restricted introduction of applications (usually accounting and property systems), has tended to isolate the balance of the organization from access to computing resources and from any active involvement in, or agitation for, organizational strategic planning for future computing needs. Thirdly, in the above circumstances with contract software support, a staff member has to assume the role of DP specialist, often in a situation of limited knowledge of computing and a restricted perception of the organization’s overall needs and priorities. In these instances, management needs to recognize that training and reallocation of duties will be necessary to develop a key staff member into the organization’s information processing specialist or, alternatively, to engage contract consulting services more extensively for this purpose. A significant number of Australian local authorities are currently moving to appoint a DP systems analyst/programmer for the first time, prompted by the often poor performance of contract software houses and the desire to improve communication between users and systems people. Medium size authorities without computer systems staff, who continue to utilize contract software support, have in the past retained consultants for initial systems evaluation and installation. However, for later system enhancement requirements the lack of an in-house computing specialist is emerging as a major constraint in areas such as: provision of advice to users; the selection of “acceptance criteria” for new applications software; the testing procedures to ensure those criteria are complied with, and the development and updating for senior management of an ongoing computing resources plan. Whether consulting services are utilized or existing in-house staff are trained and reassigned, both options are requiring municipalities to allocate resources. However, this commitment is essential to ensure effective organizational use of the new technology. The existing specialists have to confront the changing circumstances of computing. In a review of DP procedures within the Australian Public Service [2], it was concluded that DP specialists “should have a management perspective and not simply a focus on technology” and that training should be provided to DP managers “to expand their skills in administrative management and their understanding of the (organization’s) operational objectives”. These viewpoints are certainly currently applicable to the local government computing specialist. Knowing the direction in which the organization is moving is vital, if appropriate assessment of user requests and optimum guidance to users is to be achieved. Computer systems specialists with many local authorities are moving towards adopting a more senior management role in assessing priorities and providing advice to users. This contrasts with the task-specific duties of past DP managers. While there is no doubt that users are now taking the initiative in seeking implementation of further applications in the information processing field, it is clear that they need advice and assistance more than ever before.
6050 40 3020lo0
__--+-1960
/’ 1970
// 1 19R0
_
% of appkations by DrofessIonal
___~
%
by
Fig. I. From
, 1990 anaIysed edp experts
of oppl~c(li~ons managers and
chauffeur
driving
onoiysed end-users
1 EOOC and
programmed
and programmed
to self-driving
(Nijssen)
New technology
and organizational
change
in local authorities
13
In a paper on information systems and the community, Nijssen [3] presented his view of the contrasting and changing percentages of information systems which have been and will be produced by computer experts in comparison with non-specialist management and user staff. In accepting this trend and in seeking to harness this enthusiasm it is important that users are assisted to understand what is possible with the technology and how the outcomes of their proposals will impact upon and improve their working situation. They need to develop these proposals in conjunction with in-house DP staff or software support contractors as appropriate. In the Group Discussion Report on information resource management, at the Mont Sainte Marie Workshop in 1982 [4], an important role of the DP department in an organization was considered to be making “data and information available to users rather than just managing data”. Over the past two years this trend has accelerated considerably. Meeting the growing demand for user education and information is the greatest challenge to DP staff. In order to respond effectively to user requests for information, the DP specialist needs to develop an understanding of the problems and to provide advice and guidance to users in for which the users are seeking solutions, development of those solutions in accordance with an information processing policy approved by the local authority. A positive and healthy DP/user interface has been demonstrated to be crucial to development of further applications. Increased co-operation between users and specialists is occurring, slowly but positively, in many Australian local authorities. Difficulties in successful communication and achievement in these matters are often compounded when DP services are provided by contract. Particular effort is called for in this situation to achieve satisfactory interaction. As computing expands within local authorities, more expertise will be developed in-house and less reliance placed upon ongoing contract support. INFORMATION
RESOURCE
MANAGEMENT
Information is a fundamental resource of government, particularly local government. Public demands for improved quality and ease of access to information is growing continually, certainly in Australia. Reflecting this social pressure, freedom of information legislation has recently (1983) been enacted by the Australian government and most state governments. In the near future similar legislation will require local government to respond in the same way. As the technology now enables many elements of an information resource item to be aggregated rather than stored manually as components in separate departments, there is certain to be a significant impact upon all local government organizations which will formalize and change past methods of data collection, entry, storage and retrieval. Rsmer [5], at the Mont Sainte Marie Workshop, pointed out that to introduce these information systems within an organization usually implies cross-organizational and integrated decision making by departments (or individuals in smaller councils). This group decision making requirement will significantly expedite the development of corporate planning and management within local authorities. In differentiating between corporate information (held on the central system) and departmental information (which could be held on the central system or on a localized system), local authorities in Australia are struggling to develop strategies to cope with the microcomputer explosion. Parker [6] contends that “the current debate regarding the restructuring of the centralized computer centre to accommodate the dispersed capabilities of microcomputers focuses on organizational objectives and structural adjustments. However, microcomputers are not confined to the central processing role established by mainframe computers. The new role for micros is not as a hidden number-cruncher of ever growing proportions, but rather a result of the compatibility of its computational powers with the usual amount of information available for individuals to make decisions. The microcomputer can thus become an integral tool in the decision making process of a person who was not computer trained”. The existing alternative models for local government computer installations in Australia which encompass most information systems facilities are set out below. There will be many microcomputers installed without the provision of communications with the central system. Due to the ease with which separate departments may now obtain micros, coordination of equipment purchase throughout a local authority has not been achieved so far in
ERIC W. HOWAKD
0
OR
Fig. 2. Two
types
of systems.
most councils. Senior management has to face the need to manage, in a coordinated manner, the selection of systems and equipment, in accordance with a corporate policy. The “information centre” concept has been adopted by some local government authorities in North America to assist users to select equipment and software, to plan applications, and to receive training and support, with the assistance of centre staff and DP staff, thereby ensuring that the organizations’ information policy is being followed. Bomberger, in “Local Governments’ Use of Computer Graphics” [7], a paper delivered to URPIS 11 in Brisbane in November 1983, indicates that (in the U.S.A.) “many local governments have adopted the concept. Ironically, the information centre has become so successful in educating end users that the demands on the DP department are increasing rather than declining”. Some local authorities in Australia have informally achieved this result, but no calculated “information centre” approach has been used. The remarkable advances in microcomputing in the last three years have occurred in parallel with numerous communications developments and those changes which have implications for Australian local government include: @Local area networks for personal computers. @Micro to mainframe communications in limited but significant developments. @Development of packet switched data networks with transmission costs not dependent upon distance of transmission-of particular relevance for small data volume traffic from remote areas-a key element in the Australian context. @Development of videotex services-Australia has been slow to adopt this technology. Private services are now operational in Australia and the public videotex service, to be known as Viatel, is to commence operation (by Australian Telecom) in early 1985. A pilot local government videotex service is planned to commence in late 1984. @Cost-effective telephone system access to expanded information data bases provided by private companies. Exploitation of these possibilities has been minimal to date in Australian Local Government. However all of these communications developments provide expanding challenges and oppor-
New technology
and organizational
change
in local authorities
15
tunities for information resource management particularly for in-house information to which external public access is to be provided. In an interesting paper, “Information, Information Systems and the Community”, Philbrick [8], in describing the Brisbane City Council information provision experience, discusses future methods of communication between local government and the community and the implications of these future methods for local government/community relationships. He considers that there are three main types of information flows: (1) Community sought information-The community seeking information on various issues and services. (2) Local government provided info~ation---Dissemination of information by local authorities on specific issues. (3) Local government sought information---Continuing and varied contact with individuals and organizations by elected members and council staff. In addressing these information flows, which are external to the local authority organization, there are extended challenges for all local governments in the management of info~ation beyond in-house information systems operation, and these external information requirements will expand quickly. The involvement of local government in information provision depends upon its functions as much as availability of resources. The widely dispersed and relatively small size of Australian local authorities contrasts with the broader responsibilities and far larger central state governments. For many major applications, the development of databases of information (for example, digital mapping of properties and services locations) will only be possible if state governments resolve to take appropriate action and prepare these databases. The various state governments in Australia have now embarked upon preparation of computerized spatial land information systems, including property valuation and tax data. In this environment local government needs to cooperate closely with central government to achieve the most appropriate results. Barriers to this cooperation in the Australian context include fear of central government by local authorities, the significant differences in scale-many orders of magnitude---between state and local governments often resulting in communications difficulties, and reluctance by central government to recognize the varying requirements of individual local authorities. For example, information should be available from central government in a form that enables local authorities to manipulate the data and provide an output format for final data presentation which meets local requirements. As information exchange grows, as it certainly will, effective communication and agreement on computing links between levels of government will become even more critical. Effective co-ordination of local authority policy in this area by local government associations in each state is necessary to ensure that a cohesive local government viewpoint can be conveyed to central government on these “information’‘-related matters which are an essential element of the communications between both levels of government.
LOCAL GOVERNMENT DEPENDENCE UPON INFORMATION TECHNOLOGY AND RESULTING OPERATIONAL VULNERABILITY For a variety of reasons, most local authorities in Australia have experienced fears associated with a perceived increase in vulnerability due to the introduction of EDP systems. The reliance upon contract software houses for supply, and particularly ongoing support in the absence of any in-house EDP staff; the remote location of many country authorities (by European standards) from major city software~hardware suppliers, especially for software support; the marginal viability of software houses due to the small and fragmented nature of the local government software market, with different legislative conditions between states and highly varied authority size within states, are some of the factors contributing to this risk perception. Unfortunately, in recent years in a significant number of installations, these fears have been realized.
16
ERIC W. HOWAKD
There is little doubt that inadequate awareness of the technology by senior management in local authorities has been another key factor in perceived and actual vulnerability. There has been and there is a widespread need for information and education for senior local government management in all relevant areas of the new technology. This is a personal and individual responsibility, but the various professional associations, local government computing services, central government agencies for local government, and the educational institutions all have a vital role to play in further education, certainly in Australia and I suspect in most other countries. Increased distribution of the technology throughout the office resulting from on-line minicomputer systems and microcomputers linked to the central system, requires increased management control and clearly defined policies for data entry procedures, data reliability responsibilities and avoidance of dual data storage. As the technology encourages more authorities to provide external access by the general public to specific information stored on their computer systems through, for example, view data systems, the importance of data reliability and data currency will increase requiring even more stringent management control over data stored. The support of the organization’s information requirements when the corporate computing system is “down” is of course a critical issue for all local authorities. Reliance on computer systems can lead to chaos if breakdowns occur and a return to manual methods results in long delays-delays we now accept and manage to cope with but in future will not be geared to accommodate. A Group Discussion paper from the Mont Sainte Marie Workshop [9] discussed the importance of a clearly understood disaster plan in the organization if the information system malfunctioned severely. While distributed processing (particularly with the advent of micros) improved hardware and software, and effective training of operator and user staff should result in reduced downtime risks in future, it is clear that any organization should have contingency plans in place. Professionally competent and experienced user staff who understand the various applications which may be affected are the best possible insurance against information paralysis. Local authorities need to ensure that professional staff do not develop “unthinking” reliance on computer systems and can reconstruct problems and develop solutions manually if necessary. Their knowledge and skill in re-creating current situations by updating specific information from regular hard-copy back-up listings, combined with DP staff who have introduced operator training and adequate programme and systems documentation, are the two key risk minimization elements any local authority could rely upon. As a counterargument to the vulnerability issue, many Australian local authorities have indicated the benefits to the total organization when information is gathered and stored in a formal manner and is available to the total organization. This usually only occurs when computerized information systems are introduced. It is a common experience that most organizations tend to rely to a greater or lesser extent on the knowledge of individuals regarding many information elements, which are not recorded in any physical form. Recent local government enthusiasm evident at demonstrations of automated property and utilities information mapping systems has highlighted the potential benefits of comprehensive information systems.
MICROCOMPUTERS AND LOCAL GOVERNMENT
THEIR IMPACT OPERATIONS
ON
Micros are having a most dramatic impact upon local government throughout Australia in common with other countries. The micro explosion is just beginning to occur in Australian local government. For the small local authority micros have enabled a corporate computing resource on a stand-alone or networked basis to be introduced at feasible cost levels. For the medium sized authorities, they are providing departmental computing facilities with links to the central corporate minicomputer system. Introduction of micros is currently occurring most rapidly in the technical computing areas, but financial modelling for finance departments and records management/word processing in all departments are also highly popular applications.
New technology
and organizational
change
17
in local authorities
In the large authorities, the micro is replacing the standard terminal to provide local computing resources plus central system access. The major impact of the micro in Australian local government, however, has been the appreciation and understanding of computer systems benefits by senior and middle management staff, who for the first time in many instances have an accessible tool which provides powerful assistance to their personal or departmental work-loads. Computers are now being regarded as solutions and not as problems. This is a perspective that all sectors of the information industry in local government, from DP managers to end users, should welcome. Applications such as cash flow and budget forecasting, automated depreciation schedules for assets registers; road design contour plotting and drainage design; automated drafting using interactive screen graphics; word processing; traffic analysis and modelling; demographic analysis; data storage, sorting and retrieval for a variety of purposes; structural analysis and graphic outputs of information are typical of the rapidly expanding uses for microcomputing and local government senior management (usually prompted by potential user staff,) are catching on very quickly. The steady growth of available software and the remarkable developments in the hardware field-high resolution colour graphics, screens, low cost drafting plotters, increased central memory and hard disc capacity are all accelerating the use of micros. What are the problems the growth of micros will lead to? Very clear concise guidelines from local authority senior management are needed to ensure that a definite policy will be followed. This corporate information policy must be in place and should define which information is corporate data and which may be considered as departmental or personal. Other measures to deal with potential hazards include the need for: standards for documentation of applications; housekeeping procedures for the operation and back-up of systems; and monitoring mechanisms for the total distributed computing resource across the organization through, for example, a users committee, including DP staff, and chaired by senior management. The limitations of micros in handling larger databases needs to be acknowledged before data entry proceeds to the stage of capacity difficulties requiring abandonment or modification of the proposed application. Three further potential problem areas in the use of micros can be categorized as follows: (1) Auditability-Adequate audit trials for computing procedures have not yet been developed for micros, and this is a major deficiency in comparison with larger computers. (2) Compatibility-Adequate planning is required to provide compatible computing facilities to enable networking for communication throughout the organization. (3) Security-Protection of data held on micros, through access restrictions, is much more difficult than for larger computers. Management need to be sensitive to this issue. These constraints particular tasks.
need to be kept in mind
in an assessment
of the suitability
of micros
for
CONCLUSION The new technology continues to challenge us and offers an ever broadening range of aids to the local government industry. Australian authorities will continue to adopt the new technology, and current levels of information exchange between authorities will expand and benefit local government. Computing will become increasingly embedded in local government activities, and this added complexity will bring problems and difficulties leading to pressure to alteration in existing computer resources management. The formalization of existing data stored in a variety of non-automated systems, the need for centralized control over information to establish proprietorship, reliability consistency and integration compel local authority senior management to consider computing as a corporate resource, relying upon effective involvement of users right across the organization. This is significantly different from most existing local authority information systems and their operating structures. Improved communication and decision-making techniques will be needed and a senior management staff will be required to adopt a total corporate viewpoint to establish priorities.
18
Senior management computing resources. tertiary institutions.
Emc
W.
HOWARD
are now required to become proficient in handling the management They will require training and specialized courses are required from
of the
REFERENCES 1. King J. L. Local Gorernmmt Use of Infiwmation Technology, The Next Decude, Public Policy Research Organisation, University of California, Irvine. Technology in the Australian Public Service, Paper in Technological Change-Impact of 2. Cole W. Information Information Technology, Department of Science and Technology, Australia (1983). Proceedings, Brisbane, 3. Nijssen G. M. Intelligent Information Sysfems and the Communirq, URPIS II Conference Australia (1983). 4. Group Discussion Report. Proceedings of 1982 International Workshop on Local Government and Information Technology, Comput. Environ. Urban Systems 8, 25-29 (1983). 5. Romer M. D. Policy Issues Facing Local Government Computing and Some Available Strategies, Proceedings of I982 International Workshop on Local Government and Information Technology, Comput. Environ. Urban Systems 8, l-10 (1983). 6. Parker P. Technological Change Reaches a Personal Threshold: Choice. Change and Constraints M’ith a Personal Computer, Paper at Section 21 of 53rd ANZAAS Conference. 7. Bomberger D. L. Local Gowrnments U.ve qf Computer Graphics. URPIS 11 Conference Proceedings, Brisbane, Australia (1983). 8. Philbrick A. T. Information, Irzformution Systems and the CommunitJ~: The Brisbane City Council Example, URPIS 11 Conference Proceedings. Brisbane, Australia (AURISA, Australia) (I 983). 9. Group Discussion Paper. Local Government Dependence on Ittformation Technology, Proceedings of 1982 International Workshop on Local Government and Information Technology, Comput. Environ. Urban Systems 8, 4549 (1983). E. W. Computer Technology in Local Government, Foundation for Technical Advancement of Local 10. Howard Government in Victoria, Research Report (1983).