HomeMy WebLinkAboutCAO-09-039 - Sole Sourcing for Organization Design ReviewREPORT
REPORT TO:
Finance and Corporate Services Committee
DATE OF MEETING:
August 10, 2009
SUBMITTED BY:
Carla Ladd, Chief Administrator
PREPARED BY:
Carla Ladd, Chief Administrator
WARD(S) INVOLVED:
All
DATE OF REPORT: July 23, 2009
REPORT NO.:
CAO-09-039
SUBJECT:
SOLE SOURCING FOR ORGANIZATION DESIGN REVIEW
RECOMMENDATION:
That the consultant selection requirements of the purchasing by-law be waived and
Western Management Consultants be retained to undertake an Organization Design
Review for the City, for a fee not to exceed $45,990 based on a satisfactory contract
being negotiated; and further,
That the Mayor and Clerk be authorized to execute an agreement satisfactory to the City
Solicitor.
BACKGROUND:
An integral part of the Consolidated Maintenance Facility Project (CMF) is the review of work
processes, management systems and organizational structures related to those functions which
will be moving to the new CMF. These functions include Operations, Utilities, Facilities
Management, Purchasing (Stores), Corporate Contact Centre and Fleet. Given the significance
of these functions, encompassing approximately half of the City’s workforce, and their location
in several different departments, such a review could and is likely to impact the entire
organization. As such, a comprehensive review having broad considerations of such factors as
leadership approach, management systems, operational practises and formal structures is
warranted and advisable and should run in parallel with the review of CMF with a view to
enhance our ability to more effectively deliver the corporate strategy and operational goals set
out in the City of Kitchener Strategic Plan.
Western Management Consultants have been engaged over the past 12 months to assist in the
review related to the CMF and therefore they have significant background knowledge of both
the CMF and the organization as a whole which would ensure integration of both reviews.
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REPORT:
Over the past several years, a number of significant changes have occurred in the City which
warrants an overall organizational review. The completion of the City’s first comprehensive
Strategic Plan is perhaps the most significant having clearly defined the community’s vision and
priorities and the organizations mission and strategic directions. The City’s business and
budget planning processes have introduced a strong framework for the work that is done each
day in the organization. These processes support and implement the Strategic Plan. This has
changed the way work is planned and undertaken in the City.
Further, new facilities and services have been added and other services have been changed.
Some examples of these are the completion and opening of the Hanson Twin Pad arena, the
Chandler-Mowat Community Centre and the recently implemented Delta system as well as the
soon to be opened Sportsworld Arena and Williamsburg Community Incubator Centre. These
changes have been accommodated as the need arose resulting in a number of incremental
changes.
We are now in the process of bringing together approximately half of the City’s workforce into
one building which provides an opportunity for service integration as envisioned by City Council
in 2001 when the last organizational review was undertaken.
Together these changes when viewed collectively impact the organization across the board and
now is the time for us to step back and ensure that our organization and practices are such that
they will allow us to maximize our efficiency and effectiveness at implementing the strategic
plan. An organization review would be an overall review of and alignment between and
amongst vision, purpose, strategy, governance, culture, structure, leadership, capability, and
management approaches. An organization design review is a subset of this approach. It
encompasses the formal relationships, the informal connections and ‘integrating mechanisms’
(such as committees, task forces, dotted lines, roles, rules) that are created to overcome the
limitations and/or weaknesses of the formal structure. The outcomes of such a review may be
that the structure and processes continue to be relevant, that minor refinements need to be
undertaken or wholesale changes need to be considered.
The organization design review proposed to be undertaken by Western Management
Consultants will be a collaborative process which will examine both formal and informal
organizational practises, processes, systems and structures to ensure we are successful in
delivering on the City’s Strategic Plan.
FINANCIAL IMPLICATIONS:
The cost of this review totalling a maximum of $45,990 will be funded from existing funds related
to management training which have been intentionally held back to accommodate change
process related to the CMF.
CONCLUSION:
The timing of this review is extremely relevant given the pending consolidation of operational
functions to the CMF and the completion of the City Strategic Plan. In addition, the outcome of
this review will be helpful in both the organization and Council’s consideration of the 2010
budget.
ACKNOWLEDGED BY: Carla Ladd, Chief Administrator
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