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Adopting a formal service review framework

Organisations approach service reviews in various ways. Some are at a very high level while others drill down into much detail. Councils usually tailor their reviews to meet their individual circumstances and objectives. This is understandable as individual councils are unique in their level of resources, political climates, demographic profiles, and organisational cultures.

Achieving best value in the delivery of services is not a static state as circumstances are continually changing. It is therefore appropriate that service reviews not be a ‘one off’ exercise, but rather be part of an ongoing improvement journey. They should be undertaken progressively throughout an organisation in a systematic manner, in accordance with identified priorities. The service reviews should be integrated with other key organisational programs including corporate and strategic planning, asset management, and organisational performance management.

It is also beneficial to take a ‘council-wide’ approach to reviews to maximise any available opportunities. Both internal and external services should be covered, however a greater focus may be placed on discretionary or non-statutory activities.

A selection of ‘cross-functional’ processes may also be included that extend across a number of services. This has the added benefit of preventing departments from simply shifting problems to other areas. Pilot service reviews are also useful for determining the effectiveness of the processes before commencing a full review program.

The scope and rigour of the reviews can vary significantly. Our research has shown that the timeframe for conducting a program of reviews across an organisation typically ranges between 6 months and 2 years. Individual service reviews can last from as little as 6 weeks up to 2 years. The implementation of review recommendations can extend beyond that period.

A sample framework for the systematic review of local government services is illustrated in the diagram below. It identifies seven phases to an effective service review. The order of the phases is indicative only and can be tailored to meet organisations’ specific needs. Some phases continue throughout the service review program while others are repeated for individual service reviews.

Why councils conduct service reviews ‘in-house’

SmartGov’s research identified that many Australian councils have been undertaking their service reviews in-house, utilising council staff and teams. Apart from avoiding the direct cost implications associated with the use of consultants, there are significant cultural advantages in conducting reviews internally.

By undertaking the review process themselves, councils have a greater sense of ownership and control by staff; not only in the process itself, but in the outcomes that are derived. This is seen as critical to the successful implementation of the review outcomes.

Involving staff from all levels in the organisation increases the effectiveness of reviews, and facilitates acceptance of the outcomes. It enables staff to step out of their normal environment and work alongside staff from other departments in work groups, helping them to understand the organisation in a more holistic way. This also opens up opportunities for staff to develop professionally, and gain team building and leadership skills.

Service reviews can be resource intensive in terms of both staff time and budget as the review involves not just consulting and generating ideas but also analysis, making recommendations and preparing reports. Given the extended timeframes of some reviews, resources have to be allocated over both the short and longer term for the review to be effective.

Whilst there are benefits in councils resourcing the reviews in-house, there are also some dis-benefits such as:

  •  Personality differences of some staff may lead to a biased perspective
  • Vested interests may lead to a lack of objectivity and independence
  • Staff may be diverted from their usual duties resulting in not enough attention being given to council’s normal business
  • Lack of expertise in some key areas depending on the skills set of staff or the overburdening of those staff with those skills

Where this is critical, a council may decide to engage an external consultant to provide guidance and support as appropriate. This has the advantage of independence and use of specialist knowledge and experience. Examples of activities that councils have utilised consultants for include:

  • Team facilitation
  • Training in proprietary business improvement tools such as Lean Six Sigma
  • Cross functional mapping
  • Development of service unit costs.


The SmartGov Team

Service reviews: what they mean for local government

This is the first of our articles on service reviews within local government. We hope that they inspire and help councils with their reviews to ensure the services they provide are relevant to their communities and financially sustainable in the long term.

Service reviews mean different things to different organisations. In local government, a common objective is to ensure ‘value for money’ for their ratepayers in terms of both the effectiveness of the services in meeting community needs and the efficient delivery of those services. The reviews help to identify the mix of services and funding arrangements that best meet the community’s needs.

Service reviews do not focus entirely on improving the financial position of councils. Emphasis can also be placed on improving the quality of services. The process is a useful vehicle for developing an organisational culture that supports innovation and continuous improvement. Other possible reasons for undertaking a formal service review include the desire to:

  • Respond to changing community priorities and needs
  • Align the services with the council’s vision
  • Review and optimise service levels
  • Build staff capacity and skills
  • Help in determining the role of local government and its core business
  • Define statutory and non-statutory services, and assess need for the non-statutory services
  • Consider alternative modes of service delivery
  • Consider the potential for divestment of services
  • Identify new business opportunities
  • Partner with other councils or service providers

A service review can take a ‘whole of council’ approach or just cover one department, service or strategic focus area. It can address internal services such as HR, finance and IT or external services such as waste collection, childcare services and asset maintenance.

Key benefits of service reviews include:

  • Alignment of council’s plans with community needs
  • A more engaged community
  • Provision of higher quality services
  • Cost savings and income generation
  • Increased efficiency of limited resources
  • Increased capacity of staff to respond to a changing environment
  • Staff working cooperatively across departments
  • Improved understanding future community needs.


The SmartGov Team