Relationship Building Strategies with Locally

Elected Officials.

Joe CaseyJune 2011

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Frontline Middle Mgr Senior Mgmt

Operating System Improving System Creating Future

First Goal – Create Time, Future!

Elected Officials(“EOs”) Capacity

DelegateDown

Better Engagement and Relationship Tools

Tips and TricksPerspectives

Tell Them the Time, not How to Make a Watch

Often our macro data makes it hard for the average person to understand context of our discussions◦ $400 million budget

Micro perspectives enables the average customer to understand◦ $900 taxes per person

However, Know When Micro is Better than Macro

Their education, professional background and personality all contribute to their capacity to understand◦ Capacity to “want to” understand◦ Remember this is part-time for them

while you deal with the issue full-time Mirror your first layer of information

to lowest capacity to understand and use that as base

Escalate information both in volume and sophistication in correlation to capacity; as applicable◦ 1 to 1, 2x2, Committee, Board◦ Public information, Town Halls

Know EO Capacity to Comprehend

Escalate Info from Visual to Detailed

Detailed Schedules and Notes

Short Stories, Longer

Visual w/ Talking Points

Visual

Visuals Trump Detailed Schedules

Series1$0

$4,000

$8,000

$12,000

Visuals w/ Talking Points Enable EO to Convey Message to OthersExample - Tax Burden Per Person Talking Points

• Based on average profile of County taxpayer household•Local and state low compared to peers•If Federal reflects 50% who don’t pay taxes, then >$15,000•Local taxes focused on schools and safety•Service levels and results not shown, but also outperform peers

Federal>

$7500

State < $2100

Local < $980

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Make it Self-ExplanatoryExample: Debt Per Person

Federal

$43,925Federal

> $45,000

Talking Points• Local/State debt for assets, low compared to peers and mostly referendum approved•Federal not asset; deficit funding•Local decreasing $1/day in last year, federal increasing $10/day in last year•Local debt >80% for schools•If local debt burden = federal, enough $ to build >100 new schools (logical???)

Local < $1800State < $2100

Finance has unique position to accumulate facts/data and EO’s will go to the info source for follow-up

Maintained by Public Information Officer Source via website for elected officials, citizens and

even challengers – brings focus and fact to debate Have data fresh, to the point and easily understandable Examples

◦ “95% rated the overall quality of life in Hanover County as “excellent” or “good”; this was the highest percentage of any locality in the South Region that participated in the survey”

◦ “The average elementary student-to-classroom teacher ratio is 20.7:1”

Good EOs like to tell stories (give speeches) and we want them to espouse facts; so make it easy for them

Become Source for Storytelling - “Positive Points” and “Quick Facts”

Use Web for Fact Source

Make a personal commitment to work with elected officials◦ They shouldn’t be on defensive alone◦ Don’t play the blame game◦ Engage them in the solution, not “part of the problem”◦ Help them deliver key messages

Create roles for elected officials◦ Keeping them busy and out of your “hair”

No surprises Recognize that some interactions may be painful

Working with Elected Officials

EO’s “Trust Capital” of finance officials can often be the highest in the organization - rightfully so

Keep high Trust Capital◦ Know your comparative peers on issue being addressed

The EOs keep in touch w/ their peers, so should you◦ Review work within office first, then with CAO office

second to perfect and achieve consensus on focus◦ CC Chief Administrator and DCA on any e-mail to EO

Remember they also need to “look good” and understand what’s going on as they may get direct follow-up question

Information to EO Should be Right - EVERYTIME

EO’s and staff should welcome meetings and not hide from them

Having a strong finance official’s perspective with them at the meetings can bring calm to chaos and focus

Don’t just attend meetings during budget time or referendum◦ Strategy of what types of meetings

take place and when w/ staggered attendance goal

◦ Offensive – bring nice stories and illustrations

◦ Defensive - just answering questions Meet with citizen contact for

meeting beforehand, develop good working relationship

Set the Tone for Community Meetings

Generally successful in opportunity to better engage and educate community

Challenge in discussing issues to unknown audience on their “home field”

Staff role varies (presentation, answer questions)◦ Board member takes lead in introducing and facilitating◦ Other supporting staff members may also be invited

Citizens comments should be heard and respected◦ No one citizen should consume meeting with questions nor

overly focus on one topic If you put on a good show and citizens like you, then

you’re more likely to be invited back w/ EO Follow meeting w/ e-mail or call to citizen contact

Overcoming Meeting Challenges for Repeat Visit with EO

Elected officials read newspapers and watch TV stories religiously when local issues◦ EOs will then follow-up w/ people creating news

Determine the monthly or staggered schedule for release of “good stuff” from your office◦ Budgets, State reports (COLG), economic data (VEC), audits, bond

ratings, debt issuances, awards, CPAs, etc. News media don’t often seek out good financial stories,

therefore you need to help them When slow news days, then opportunity for finance story

Be Source for Press Releases

Always Refocus them Towards Macro (“5,000 feet”)

Transform EOs to “New School” Budgeting

Old School Approach New School Approach Reactive One-year, start

from scratch Across the

board cuts Balance on

employee backs

Elected officials focus on the “silly stuff”

Pro-active Five-year,

evolve from plan Strategic

reduction areas Employee is the

best asset Elected official

focus on defined service levels and goals

Weeds < Interaction < Ivory Tower

Somewhere in Between -

Strategic Approach

Chief Administrator Roles to Better

Engage Finance Officials

Create Capacity Via Delegating and Initiating Ideas to Good Employees

Leaders want a person around them who: Pulls from above, but passes to below to leverage time and

talents of others while creating capacity Thinks of new things to do, how to do existing things better Is Devil’s Advocate and Brainstormer (master these

techniques) Difference between being assigned work and assigning good

work

“Right Place and Right Time” Aligning yourself in

organization poised for upper management turnover

Organization w/ history of growing employees to be promoted

Ride the coattails: Having supervisors w/ ambition

Precedence – is finance division from where upper management came from

Leadership – Sustainability

Bottom-line – “is it

sustainable”

Sustainable success –

“inspire and empower”

“Going out of business”

Good for morale, but

can you keep it going

Performance-Business Strategy

Focus “Driving results”

Purposeful Culture Focus “Inspiring commitment and reinforcing what we stand for”

Forms, Process

Complete Info

Timely Updates

Environment

StrategyMacro

Questions

Pathways from Sausage-making to Productive Meetings

Finance Chief Adm

KeyMeeting

s

Finance Director

Chair:Elec Off

Elec Off Elec OffElec Off

(Alt)

Chief Admin

Deputy Admin

Finance Committee: Empower Finance Director to Lead

The broader the name, the broader the scope◦ Many places limit scope too much w/ Audit Committee

Consider even a broader and more strategic name◦ Stewardship and Sustainability Committee◦ If too “high” maybe Finance and Management Services

Finance Director should be lead staff person◦ Set agenda, invite guests, communicate with elected

officials Committee scope should be documented Required meetings set by policy Closed sessions w/ auditors, others to discuss staff

Further Empower Finance Committee (and Finance Director)

A Great Leader’s Courage to fulfill one’s Vision comes from Passion

and not Position

Master the Organizational Triangle to Earn Seat at the Table

Value Statements

COUNTY OF HANOVER, VIRGINIAThrough this Mission to Vision illustration and accompanying tagline, the County clearly reflects focus areas, shared

goals and values that a engaged workforce and community can transform together the Mission into Vision

MISSIONProvide superior quality of life that is defined, encouraged and supported by the community itself; where

government focuses efficiently and effectively on the education, safety and human service needs of the people; where quality service delivery is based on sound stewardship practices; and where a sustainable future is pursued in

innovative ways

COMMUNITYEncourage business and

manage growth while preserving natural resources

EDUCATION Enhance educational

opportunities

SAFETY Protect and provide a safe

community

HUMAN SERVICES Promote self-sufficiency and

quality of life

ENGAGEMENTFully

engage the community

and its volunteers

WORKFORCELeverage the workforce and leaders to their best

potential

SERVICEMaximize quality, customer convenience and satisfaction

STEWARDSHIPSound

financial manageme

nt and infrastruct

ure practices

VISIONWhere a family of communities, inspired by its people, traditions, spirit and

history, is the foundation for its future

Values – Commitment, Integrity, Accountability and Responsibility

Focus Areas

Goals

Tagline: People, Tradition, Spirit, History

Hanover’s Gratuitous Plug for SPQA

Virginia’s “2x2” rule enables discussions in private with two elected officials at one time◦ All other discussions with three or established committees

requires public notice, access and minutes Purpose of 2x2

◦ Insight and frank discussions to determine pathways towards consensus

◦ Strategically selecting order and teams may enable proper recommendations to be formulated for public meeting

Know which of your peers are in the room and prompt Chief Admin

Chief Admin may want small audience who know EO so discussions are frank◦ Therefore, don’t just be audience member and know EO

Be in the Room for Private Consultations

50% of tax rate funds the public schools; therefore this warrants partnership in financial planning with School Board

Joint Board meetings for critical issues◦ Referendums for new schools and renovations◦ Program initiatives – Trades and Technology Center

“2x2” meetings expanded to “4x4” in county board representatives meeting with their school board counterparts

Enables long-term, outcome based approach to achieve agreed-upon community-oriented goals

Utilize same practice with other appointed boards

Develop Relationships w/ Other Appointed/Elected Bodies

Election Year Strategies

Current elected officials should be versed in key financial topics (budget, rates, services, debt, ratings)

Political challengers have access to same financial info◦ Finance officials can avail themselves to any citizen in

helping define and explain information◦ However, no one citizen should place any undue burden of

time upon any staff (same for EOs burden on staff) Financial plans help focus debate on service

adjustments rather than simplistic “cut the rate”◦ Healthiest debates can focus on defining, funding and

achieving goals for the community

Public Financial Products for the Campaign Trail

Staff’s challenge in meeting “promises”◦ Newly elected official’s

natural desire for action sooner than later

◦ Reduced services or higher taxes were usually not mentioned in the campaign

New official’s natural skepticism of staff, policies and practices

Newly Elected Official’s Campaign “Promises”

Change to traditional focus to maintain tax rate ◦ Live within revenues generated from same rate◦ If high assessment growth, target reduced rate◦ Declining assessment values = lower tax bills

Elected officials feedback from the campaign trail◦ “Lower my taxes” – simplistic statement, yet resonating◦ Voter’s tax angst mostly directed to federal/state taxes

Any tax rate increase should be correlated to a service enhancement wanted by the citizens◦ Something tangible and beneficial to virtually all◦ If recession, considered if long-term viability threat is

apparent and understood by average voter

Continuing Challenge – “I’ll Lower your taxes and do more”

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Continuing Challenge - Understanding Lower Resources = Lower Services Short-term: Lower, constrained

budgets = cost efficiencies◦ More efficient not correlated to

effective Service standards impacted

◦ Cause and effect of lower resources and less services should arise in LT

◦ Challenge is that cause and effect not as apparent in short-term Perception: resources high if no impact

◦ Senior management must be aware of long-term ramifications

◦ When does the “effect” occur? Higher crime, lower school test scores

Educating elected officials and citizens on this topic is vital

Concessions made to get favorable vote (6-1 or 7-0)◦ For difficult issues, further study with resolutions during

adoption to address future goal Doesn’t altar program in Year 1 of adopted budget Long-term financial plans may illustrate implementation of

program change, but not official until subsequent year’s vote◦ Targeted small low budget impact concessions

A 4-3 vote (even 5-2) may indicate future challenge Unanimous votes may be sought for certain issues

◦ Referendums in order to garner subsequent district support Properly illustrating “resource-service correlation”

Budget Adoption Strategies in Election Year

For elected officials of magisterial districts (not “at-large”) the need to illustrate to constituents a return on their taxes

New capital investments mostly correlated to growth areas Challenge between districts may arise if growth areas correlated

to certain districts Need to illustrate continued service goal accomplishment

and infrastructure standards met amongst all districts Fire truck – public safety response times priority

Consider rotating fire trucks so that new trucks spread equally Roads – maintain existing roads, road capacity challenges similar Schools – student: teacher ratio, school performance outcomes Libraries – book accessibility

Financial “overhead” consequence in providing “new” capital equally amongst all districts annually

Mitigating District Differentiations in Budgets

Incumbent’s uncompleted plans when leaving office◦ New capital project with Year 2 debt/operating impact◦ Initiative that involved multiple phases for successful

completion and implementation◦ Some of these plans may have been unpopular, but

needed for long-term viability Funding sources and constraints may have been

agreed-to by incumbent to implement next term◦ Internal and informal consensus, not formal and public

Mitigate environment of “lame duck’s” future actions in creating greater challenges during transition

Incumbent Transitional Challenges

Critical and necessary component in ensuring newly elected official understands environment of what can and can’t be done (e.g., local vs. state law)◦ Focus on short-term actions and long-term goals

Involves 40+ hours for all facets of local government◦ Started within a few weeks after election◦ Orientation manual started sooner when incumbent retires

Campaign promises better understood and quantified with implementation constraints formulated◦ Financial (lower service or additional revenues)◦ Legal constraints may need state law change

Important that implementation paths also formulated Returning elected officials may also benefit

◦ Even senior leaders and staff may benefit

Hanover’s Newly Elected Officials Orientation Program

Questions