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What Constitutes Quality of Life?

Posted on October 28, 2009 by Dr. John Luthy

A city manager once told me that the only goal established for his community is ‘To Achieve Quality of Life for all Citizens.’ While a commendable vision, in my view it is hardly a strategic goal that belongs in a strategic plan. I didn’t win many points when I asked him to list the criteria the city had established to measure quality of life or to mark when the desired level was achieved. In essence, the answer was something like, ‘We’ll know it when we see it.’

Megan McArdle has written a great article in the November 2009 issue of The Atlantic that addresses one element of the quality of life question. Titled Misleading Indicator, the article addresses the national fixation on Gross Domestic Product (GDP) as the fundamental measure of America’s progress and well being. While GDP is the accepted measure of the Nation’s total annual production (goods and services produced annually), it has virtually nothing to do with the more basic question, ‘How are we doing?’ As McArdle notes, “It counts the dollar value of our output, but not the actual improvement in our lives, or even our economic condition.”

In communities across America, questions abound about how people are faring during this transformational era. With a re-centering economy that is grappling with rising energy, food, healthcare, and infrastructure costs, is it still possible to have a great life? In middle urban and suburban America can families and individuals achieve happiness, fulfillment, joy, harmony, and security? Do these ingredients comprise a quality life?

If one poses the question: ‘Are you better off than you were five years ago?’ there is the ever present slippery slope associated with the common response, “Based on what?’

Local government leaders must attend to much more than local productivity, job creation, economic development, and preservation of tax revenues. Is it possible for a local community to experience a reduced population, an out-migration or decline of business, revenue shortfalls, and more restricted service levels and STILL be a great place to live? Can quality of life be achieved and sustained without consistent growth, renewal, and development?

Certainly, it is a matter of balance but the primary question relies more on philosophical than analytical perspectives. During difficult times, do we pursue the illusion that the community will return to its glory days and that good times are just around the corner? Or that growth is the great panacea? Is it more essential that we maintain public transportation, decent parks, serviceable water and wastewater systems, adequate public safety and good schools while promoting broad-based collaboration, shared resources, private-public partnering, and a sense of community?

 Quality of life questions are best defined by individual communities. As McArdle noted in her article, much of the progress in important, high-value areas of life are invisible to most people. What is essential to some is irrelevant to others. People want stability and predictability. Stable, communicative, honest government at all levels is precious and will become more critical in future years.

Though I have raised the question in prior Blogs, I would again ask, What are the elements of a community that are essential for stability, harmony, and a collaborative spirit? I have seen these characteristics in seemingly poor communities with minimal services, marginal infrastructure, and struggling businesses. In such places, cohesiveness and collegiality are common attributes. Does stability, harmony, and collegiality equate to quality of life? Perhaps. At the very least, they matter as much as GDP, productivity, cost of living, and new housing starts.

With over three decades working in and with federal, state and local government, John Luthy understands public agencies.  Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.

Filed under: Thinking & Planning | 1 Comment »

League of Wisconsin Municipalities Program

Posted on October 19, 2009 by Dr. John Luthy

On October 14 I had the great pleasure of addressing the opening session of the Wisconsin League of Municipalities annual conference on the subject of Leaving a Legacy. The program’s full title – Leaving a Legacy – A New Age of Change, Challenge, and Strategic Leadership, has become my ‘flagship’ program since 2000, when I first began developing the Leaving a Legacy series for cities and counties.

It must first be said that Wisconsin is a remarkable state. I noted during the program (with apologies for mild pandering) that no matter where one turns in Wisconsin, every scene is suitable for a picture postcard.  I first visited as a 14 year old, and it is as beautiful as ever.

 Of greater importance was the response to several recommendations and gentle admonitions. During the programs I noted that in local communities…

-  Retirements are claiming much of the institutional memory that has taken years to accrue

-   Recruitment to and retention in local government is difficult when top talent tends to gravitate to business (although more people seem to now be seeking the stability of government as the economy struggles)

-  The work of local government is becoming more complex, with greater demand and more public scrutiny that ever before

-  Workloads are growing, budgets are shrinking, staff is being reduced, and pay for those remaining is often substandard

-   Morale issues abound as more people embrace a ‘bunker mentality’

-   Training and professional development is often the first to be cut yet is perhaps the best investment to gain new efficiencies and high productivity while ensuring quality services

 Local government is under siege and is struggling to provide basic services while budgets grow less capable of supporting the historic levels required to maintain health, safety, transportation, economic development, and a social network. It is apparent that Wisconsin mayors, city councils and city administrators are grappling with emerging challenges and are aggressively pursuing innovative and collaborative solutions. Among those I talked with, there is a deep commitment to cooperation and mutual problem solving that would be envied in many other states.

 I emphasized that there exists an “Action-Foresight Dichotomy” among many decision makers. By this, I mean that there is insufficient attention being paid to the future. Attention is typically paid to current operations – trying to get through each day, week or budget cycle with little activity being planned to build the kind of future desired by the community. The central question was, “Are you prepared for the kind of future you see for your community?” I also asked, “What makes a community, department or program relevant and consequential – now and in the future?” Measured relevance stems from impact; every department and program must be able to prove it has positive impact.

 For all local communities, the key question is, “What changes are you willing to make to ensure relevance in the future?” Change will occur no matter what we do, so we might as well plan for a desired future.

 The elected leaders I met in Wisconsin are a dedicated, resilient band of professionals. It is a state that has the tools and traditions to successfully address most critical challenges. For those who have not visited, it is a great place. I was honored to have the opportunity to share thoughts and hope to return soon.

 

With over three decades working in and with federal, state and local government, John Luthy understands public agencies. Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic conference presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.

Filed under: Preparing for the Future | Leave a Comment »

Fortitude and Public Leadership

Posted on September 28, 2009 by Dr. John Luthy

Last week Tom Friedman wrote a piece for the New York Times (Real Men Tax Gas) that got my attention, especially after my recent Blog on public Leadership (Leaders Stand Up, September 8).  Mr. Friedman’s premise, which threads through much of his recent commentary, is that, if we make the tough calls now, we will reap major positive transformational changes that will ripple throughout American society. However, for some reason, decision makers are more comfortable with traditional policies that prolong war in Afghanistan, grid lock the health care debate, and facilitate dependency on foreign oil. He somewhat strongly states that Americans are ‘wimps’ for failing to deal with the really tough issues – those that impact our pocketbooks…such as taxes that could solve many of the current conundrums.

Because if its foresight, France (yes, France!) now generates almost 80 percent of its electricity from nuclear power. It manages nuclear waste, security, and location issues without rancor and has developed a society that embraces nuclear energy as a fundamental utility platform. The U.S. has not built a new nuclear power plant since the 1979 Three Mile Island mishap where no one was killed or injured. Scientists have testified that the storage facility at Yucca Mountain in Nevada is safe, yet thirty years (!) have passed without progress toward what many scientists believe is a key component of an electric grid that can power the predicted super trains, light rail, and growing need for commercial and residential electricity. Will the cost be enormous? Yes, but what about the ultimate value of the investment? Return on Investment (ROI) is a factor in this discussion, especially with the predicted cost of oil within five to ten years. Don’t get me started on the predicted cost of asphalt…a key ingredient of infrastructure maintenance. It alone could bankrupt many public works departments and state DOTs or drastically alter their balance of services.

Friedman also cites Denmark, which had the foresight and fortitude to impose a very high tax on gasoline (close to $5 per gallon) and used the generated revenue to invest in North Sea oil exploration, new energy conservation initiatives, and a variety of innovative energy production options. Decision makers there had no more or better data than we have in the U.S., but were prescient, prudent and tough enough to make the hard call. Pay now before we have to pay A LOT later, seemed to be the rationale. The decision seems to have also been driven by the assertion that ‘WE know what’s best for us and we will make decisions that are in the long-term best interest of the Country.’

Referencing energy economist Phil Verleger, Friedman notes that a $1 tax on gasoline and diesel fuel in the U.S. would raise close to $140 billion a year. And, if he had that additional revenue, he would allocate 45 cents of each dollar to pay down the deficit, 45 cents to pay for new health care and 10 cents to cushion the burden of such a tax on the poor and long commuters. By biting this very big bullet, Friedman suggests that such a tax would improve oil-related national security, reduce the health insurance burden on American business, expand health care coverage options, and add new dimensions to several strategic positions held by the U.S.

The point is that conflict arises when decisions have immediate and recognizable costs associated with actions. From what has been reported, any discussion about new taxes is ‘off the table’ in Washington, yet Congress continues to spend enormous sums on traditional government actions, such as war in Afghanistan, foreign aid for dozens of countries, special earmark projects, and entitlements. There does not seem to be much stomach for getting ahead of several predicted curves and spending now to prevent catastrophic social and economic costs later,

The questions for communities remain:  What is most important for the long-term preservation and continued development of every community? What expenditures produce the greatest long-term benefit for the most people? What are the essential foundational platforms that must be in place to preserve our society and leave a Legacy for those who come after us? And, do we have the fortitude to do what is critical now in order to reap the benefits later? Time will tell.

With over three decades working in and with federal, state and local government, John Luthy understands public agencies.  Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.  www.futurescorp.com  (public futures)

Filed under: Leading The Future | Leave a Comment »

The Future and Public Leadership

Posted on September 17, 2009 by Dr. John Luthy

A few years ago I was presenting at the American Public Works Association International Congress and had an opportunity to work with David Zach, a talented and entertaining futurist speaker. My program later that afternoon was on the future of public works and addressed challenges leaders would face. One area where David and I differ relates to the concept of predictability.

Even as a trained futurist, David’s stated view was that the future is not foreseeable and it is folly to attempt prediction. I disagree. While there are certainly many variables that will have impacts that are impossible to predict, there are many that have measureable and predictable outcomes. Public leaders need to understand those trends and be committed to planning for predictable community impact. Remember, much of history is cyclic – it repeats itself…you just have to understand history, be aware of the trends and have the foresight to implement ahead of the curve. What goes around DOES come around.

A New Era

My best guess is that we are indeed entering a new era…it is a time of transition and transformation. Predictions range from the end of the world in 2012 (according to the Mayan calendar) to devolution into a global agrarian society within a hundred years. We read predictions of the United States being divided into four autonomous mega regions, China eclipsing the U.S. as the global economic power, and about worldwide class or religious warfare. Those things are hard to predict…but there are a LOT of sharp people dedicated to positive outcomes related to climate, economics, peace, and global collaboration. For every negative possible future, there is a positive future. For virtually every negative variable, there is a counter-trend. However, change is in the air. Tipping points have been reached in several areas and be assured – the pace of change will accelerate. The outcomes could be profound. Is your state or local government ready? Are you sure? How do you know?

Scenario Planning For Public Leaders

Converging variables related to water, peak oil, global economics, environmental degradation, and global climate change are real and most exhibit data that contributes to predictability. Similar data exists for economic development, infrastructure, and natural resource utilization.  Public leaders must be adept in the art of Assessing the Possible. It is essential to know state and local trends, understand potential impacts, and have clarity about short- and long-term community impact. Very few elected officials or public managers have been trained in scenario planning as it relates to government or public agencies. Fewer have developed expertise in this form of long-view strategic thought or have implemented local collaborative programs. Now is the time.

Government Failures

Most Americans are in denial. They believe that, with a little luck and a few stimulus dollars, things will soon return to the good old days. Others predict a longer return to ‘normal’ citing an inherent inclination toward innovation and the creative American spirit as forces that will right the ship.  Not going to happen – at least not the ‘return to the good old days’ part. It’s a new day…a new era. And government at all levels MUST provide leadership. Several things must be done:

  • Government leaders and managers must become more enlightened about converging trends that will bring enormous community change.
  • These same leaders and managers must understand the difference between issue and impact; change doesn’t matter much unless it has impact. What are the potential IMPACTS of known trends and predicted changes?
  • Government must become more collaborative and share a longer view; impact and opportunity will encompass regions – not just communities. How can we engender a new commitment to regional cooperation?
  • At all levels, government must become more aware of escalating issues and challenges; it must be more adaptable and nimble when addressing known or predicted events. This takes leadership – not politics.
  • Inertia is eroding the democratic process…there is gridlock everywhere. Some pretty stark changes will take place when gasoline is $6 then $9 per gallon…perhaps then we’ll see collaborative efforts to address mass transit. With peak oil now an openly discussed, data-driven fact, how long will it take to address the ‘what’ ifs’ related to reduced oil supplies and $9 gas? Same with climate change and potential for drought in key agricultural areas, reduced mineral supplies, and eroding infrastructure. I won’t even get into Social Security and Medicare costs or the health care debate.
  • We must deal with fundamental issues – many related to finance and business- but others related to ‘first things first.’ What are the basic human and community needs that provide the foundation for quality of life, prosperity, and economic vitality? Never mind that there may be a notable contraction in the size of local economies; people can still prosper and have a great life with much less. Does anyone doubt that?

Unite to Confront a Common Foe

Everywhere I go I encourage government leaders to ‘Confront Reality!’ The common foe is not change; it is the unwillingness to confront issues and pose tough remedies. Oceans will rise, the planet will continue to warm, the global population will grow, oil and other natural resources will be depleted, and cultures will compete. It is the historic cycle. The most critical questions pertain to our response and willingness to make a commitment to a future legacy. Government is being overwhelmed; converging challenges are just too big. Regardless, a new transformative era is underway and gaining momentum. The real work begins with every state and local community and, as strategic thinkers, there is much we can analyze, predict and address. It’s time for every community to confront the evolving world and pursue thoughtful strategies that forge new alliances and totally new paths to desired alternative futures. There are options and opportunities.  But, do we have the vision, competitive spirit and will to collaboratively work through each complex issue? And will we do so before it is too late?

 

 

With over three decades working in and with federal, state and local government, John Luthy understands public agencies.  Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.  www.futurescorp.com  (public futures)

Filed under: Leading The Future | 1 Comment »

Leaders Stand Up

Posted on September 8, 2009 by Dr. John Luthy

I am always intrigued by the annual lists of ‘Best Leaders’ appearing in some of this Country’s most prominent magazines. One would assume that, with all the nifty people identified, the U.S. must be awash in the type of leadership that can guide us to whatever promise land we envision. However, without diminishing any of the fine people who appeared in various publications over the past year, what seems strange is the dearth of local leaders identified for their enormous contribution to communities throughout this nation.

Last year Robert Samuelson wrote a nice piece citing trust as the central factor in instilling confidence in times of turmoil. Whether the financial, industrial or public sector, progress depends on the willingness of people to accept challenge and move forward. In The Great Confidence Game (Newsweek, September 29, 2008) Samuelson references the financial system, but confidence is just as important for every other facet of American life. We are a nation of believers…just give us something to believe in and we’re on board. But lately, with a year of acute challenge behind us, it seems that people desire a finite local presence – a touchstone that warrants trust and builds confidence. As the recovery struggles onward, the ability to generate confidence will become our most precious asset.

As I noted some time ago in another post, communities seek four things during difficult times – Clarity, Direction, Truth, and a Dignified, Harmonious Leadership Style. They also require forums for exchange and opportunities to seek understanding. Above all, people need a practical vision of the future that is believable and achievable; the days of ethereal vision statements are over.

In one periodical listing America’s Best Leaders, I recently noted that, while there are a few deserving educators, most selections are apportioned among the fields of science, health care, economics, business, the arts, and activism/ advocacy. Only one local government leader, Miami’s exceptional Mayor, Manny Diaz, is cited as one of America’s outstanding leaders. As president of the U.S. Conference of Mayors, Mayor Diaz is a great choice and epitomizes the best of local government leadership. If you are unaware of his contributions, you should review further – he’s pretty amazing.

But what of those who toil daily to keep the wheels from falling off in cities, counties and state agencies across America? The ICMA annually recognizes exceptional leaders among a wide variety of local governments and always celebrates their many contributions to their local communities. But is this enough? When I first began the Leaving a Legacy and Public Futures programs, the premise was (and remains) that some of the best leaders, innovators, and managers in America are found in state and local government. This is where the rubber truly hits the road and where things must get done. Potholes on Main Street are there for all to see – as are public parks, sports facilities, emergency response by police and fire, snow removal, water, wastewater, public health and zoning issues. Local leadership is magnified and scrutinized; it is challenged with insufficient funds, growing demand, and people in need. Above all, local leaders are accessible – they are on the front lines every day.

I am unsure of the mechanism but I would like to spread the news to the media and the public: Many of the truly great leaders in America are local officials, managers, and hard working employees. If things get really tough in this Country – and the signs point to more challenges ahead – it will be local government that responds and performs. Maybe then local leaders will be recognized.

As with virtually all of the ‘Best Leader’ selections, few, if any of the best local leaders will ever seek recognition. Perhaps it is enough to know they are there. And just maybe that will be enough to elevate confidence and trust to new levels. Something has to change.

With over three decades working in and with federal, state and local government, John Luthy understands public agencies.  Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.  www.futurescorp.com  (public futures)

Filed under: Leading The Future | 1 Comment »

A Certain Legacy

Posted on August 28, 2009 by Dr. John Luthy

This morning NPR is dedicating much of its program space to remembering Ted Kennedy, who passed away this week. Comments and tributes aired from those showing their respects were terribly emotional and all had a similar message – this man spent his life helping people. Regardless of the personal and family tragedy that followed the Kennedys, the Senator never lost focus on what mattered most – communities, people, and progress.

Democrats, Republicans and Independents share a common perspective about Senator Kennedy. While known for his vigorous support of legislation dealing with human and social rights, health care, immigration, and education, he also believed in the legacy of free enterprise. He was far more than a ‘liberal’ who won accolades for championing the rights of the poor and middle class. He collaborated on a great deal of legislation authored by Republican Senate colleagues better known for their support of business. Kennedy rarely shared that spotlight. He understood the value of public policy and its relation to commerce. He was all about jobs, small business, and economic development; he merely chose to speak out most often about what was his most enduring value – helping those who cannot help themselves. Whether school children, immigrants, or the homeless, Ted Kennedy cared and it showed.

I would imagine that, for many readers a great deal of their lives is devoted to the concept of Legacy and preparing for an uncertain and challenging future. I believe the Senator embraced the highest ideals of the Common Interest – creating a nation and society that cares, shares, and reaches out. This cannot be done without sacrifice and without an understanding that every community must take care of its own. More than ever, our focus must be balanced between social fabric and economic development. Senator Kennedy had an innate sense of this and was a master – probably the greatest– at seeking balance.

 I feel a great loss. One’s political affiliations matter little at times like this. We all lost a champion and a voice for reason. I am unsure how much balance will be lost in the Senate. But I do believe that Kennedy’s spirit and commitment to themes central to social progress and well being will endure. Whatever your viewpoint, I encourage some introspection about what he stood for, and some reflection about how we can all make our communities stronger, more cohesive, and better prepared for what lies ahead.

 

 

With over three decades working in and with federal, state and local government, John Luthy understands public agencies.  Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.  www.futurescorp.com  (public futures)

Filed under: Leading The Future | Leave a Comment »

Parables and Realities

Posted on August 20, 2009 by Dr. John Luthy

The current rush to reduce government reminds me of the old parable that goes something like this: Back in the Day, a gaggle of old farmers were lamenting the cost of raising crops and the high cost of maintaining plow horses. As one of the younger farmers recounted his financial problems, a senior member of the group suggested that, if he replaced just 10 percent of his horses’ oats with sawdust, he could save quite a bit on his feed bill, especially if he had several horses. And, the best part was, the horses wouldn’t even notice! Upon trying this simple solution, the young farmer was able to continue production and began saving money. This appeared to be an ideal solution, and, since the horses didn’t seem to mind, over the months he continued increasing the amount of sawdust in the feed until it approached 80 percent. By then, the farmer was saving so much money on feed he was able to overlook (i.e. rationalize) the fact that his horses’ performance had grown less robust and production had suffered. Entranced with thoughts of how he could spend all the money he was saving, he did not consider the future.  Then, one day, his horses died.

Growing Workloads

In my travels, I see public agency workloads growing along with expectations and scrutiny. But this is occurring at a time when retiring employees are not being replaced, training is being reduced or cut entirely, hours are being reduced and layoffs abound. We are witnessing divergent courses – a growth in public demand, expectation and oversight and a decline in capability and capacity to perform. Of course, public employees then catch hell because they are not performing. Never mind the fact that their facilities and equipment are aging, training has been cut, FTEs are insufficient to achieve expected results, and overall infrastructure is deteriorating. Most employees are hard working, diligent, thoughtful and darned good at what they do. But after a while, insufficient budgets coupled with growing workloads do not promote high spirits, commitment, and sustainability. No one wants to work in a place where there is growing instability, few positive comments, and little respect for imbedded expertise. If there were more private sector jobs, we would see many top people leaving government. In these times, a little appreciation goes a long way!

More Bubbles

A few weeks ago I commented that there were more bubbles about to burst on the American culture and economy. How will we respond to $6 or $8 per gallon gasoline? When will cars that get 50 miles per gallon be affordable to the average citizen? Who cares about cash for clunkers when weighing that whopping $3500 against a $40,000 Prius or $35,000 Volt? There are more financial issues that need to work their way through the system…it might be three to five years before the economy re-centers. What can school (and all special) districts, cities and counties do in the meantime?

Understanding the Future

It is not about KNOWING the future. Just understanding the drivers that will impact and promote change is a great step. Many government agencies tend to hold on to old ways, archaic systems, and antiquainted policies. Smart leaders are getting ahead of the curve…planning now for anticipated events that are generally predictable. The price of gasoline and asphalt WILL go up. What will that mean to urban/ suburban and comprehensive planning? How must transportation planning change? If we end up with really big trucks and really small cars along with really long trains, what will that mean? Do we have the required plans, revenue, systems, facilities and expertise? Are we actively seeking these essential elements?

This country cannot squeeze down public entities so far that basic services are eliminated. As with all affluent societies, Americans want the level of service to which they have become accustomed. Frankly, that is no longer possible. However one interprets the parable above, the message seems clear. While significant budget cutting is prudent and triage is part of management, care must be taken to view the whole picture. There must be some clarity about how the future is developing and plans prepared accordingly. Most planning I review is short-term and very operations oriented. Let’s get on our tiptoes and look over the horizon. Remember, the future is where we’re going to live. It’s going to arrive no matter what we do, so we might as well be architects of the desired future – at least to the extent we can.    

With over three decades working in and with federal, state and local government, John Luthy understands public agencies. Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic conference presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.

Filed under: Thinking & Planning | Leave a Comment »

Do Chief Executives Matter?

Posted on August 5, 2009 by Dr. John Luthy

It seems obvious that corporate CEOs like Apple Computer co-founder Steve Jobs are more than consequential. In June 2008 Apple’s shares lost close to $5 after the company admitted that his ‘health issues’ were more serious than first reported. This one incident initially cost the company around $4 billion in market value. Jobs’ history is well-known. His creative genius (along with Steve Wozniak) allowed Apple to flourish around the Macintosh desktop computer during the 1980s then rebound through success of the Mac Book, IPod and IPhone during the 1990s and 2000s. His creativity, prescience and relentless drive to innovate have allowed Apple to grow into a corporate icon. Similar stories abound around such corporate giants as Warren Buffett, Bill Gates, Jack Welch, or Larry Bossidy. The question then, is whether these CEOs have something that differentiates them from other managers and does it make them indispensible? More critically, do CEOs, in either public or private organizations really matter?

The Public Executive

In his book, Who’s Your City (Basic Books 2008), Richard Florida cites Jane Jacobs’ comment that communities everywhere are filled with creative vigor, but many are ‘managed’ by squelchers who are control freaks who constantly place barriers between innovative employees and community leaders and opportunities for progress. In these cases, narrow-minded, uncreative, uncompromising executives are the antithesis of thoughtful civic development grounded in hard data and a vision of the future. Having worked in government agencies across the Country, I can say that CEOs do indeed matter. Whether mayors, city managers, county commissioners, county administrators, or governors, appointed and elected leaders must have the essential characteristics of openness, vision, awareness, a world view, and the willingness to collaborate. Without these characteristics, their tenure is often viewed as dull, tedious, frustrating, and repressive.

Leadership of the Future

Paul Osterman, a professor at MIT’s Sloan School of Management, has stated that middle managers are the real heroes of successful organizations. While CEOs might come and go, the stability, character, skill, and institutional knowledge of middle managers is generally sufficient to continue an organization’s performance. The enormous pace of change will continue to stress elected and appointed CEOs. More importantly, it will require them to more effectively utilize the mid- to late-career professionals who populate public agencies. This will become more essential as downsizing occurs at every level of government. How CEOs address talent, training, and the sharing of institutional memory will define their ability to lead. Focus must be internal (organization development and performance) as well as external (mission-driven and community centered).

Situational Leadership

The real question is not IF leadership matters, but when it matters. Public leaders – especially elected officials- must respond to situations that are often outside their experience. The ability to seek counsel, review facts, and make decisions that are in the best Common Interest also defines their tenure. The days of figurehead public CEOs is over. Communities need strong, sensible, innovative thinkers who are focused on the future – not the status quo. Transformation will occur. The only question is whether public leaders/ managers will strategically lead or be buffeted about by gale force winds of change.

How would employees and communities rate your various CEOs? What are their characteristics and are the essential elements of leadership, vision, creativity, and progress inherent in their style? IF given the opportunity to strengthen local leadership, is there a willingness to undertake personal and professional growth? Are local leaders prepared for future challenges? CEOs matter…and will matter more every year.

With over three decades working in and with federal, state and local government, John Luthy understands public agencies.  Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.

Filed under: Leading The Future | Leave a Comment »

The Infrastructure Conundrum

Posted on July 27, 2009 by Dr. John Luthy

In a recent program presented to the Northwest Community Development Institute, I noted that the public infrastructure across the U.S. was deteriorating at 8 to 12 percent faster that it can be rebuilt. When considering all the pipe, drainage systems, roads, bridges, ports, airports, canals, etc. across the land, the amount of infrastructure is staggering. Since the 1950’s the country has experienced virtually non-stop building. For most of this 60-year period, times have been good. But can it last? The simple answer is No.

Infrastructure Decline

The National Surface Transportation Policy and Revenue Commission has stated that 25 percent of all bridges in the U.S. are functionally obsolete. According to the American Society of Civil Engineers, it will take at least $1.6 trillion to return all roads, bridges, and tunnels to acceptable standards. And this number doesn’t properly address the remaining elements of the American infrastructure – all those pipes, ports, dikes, drainage systems, etc. that are experiencing decline through the rational world of budget-dictated deferred maintenance. The level of decay is appalling. Public works officials and engineering professionals have been raising the alarm for years. If anything, numbers stated by elected officials understate the scope and depth of the problem. Trillions rather than billions will probably be required to update bridges alone. Similar to roads, once they deteriorate past a certain point, rebuilding is the only alternative. Stop-gap repair will not return structures to required safety standards. It can help for a while, but it only delays the inevitable.

Pay Now or Pay a LOT Later

When federal and state deficits are calculated, few politicians include all infrastructure requirements. Most include very few of the real costs of renovating the broad spectrum of projects now languishing on deferred project lists in state and local transportation and public works departments. And, without a basic and safe infrastructure, what is left? How will the economy suffer? How are communities impacted? What does business need to be successful OR to be attracted to a city or state? Old, declining infrastructure is NOT a viable element of the ‘New Economy.’  It is a massive Catch-22.

If, as Christopher Steiner notes in his great new book, the federal gasoline tax of 18.4 cents per gallon cannot possibly generate enough revenue to rebuild the road and bridge infrastructure, much less the remaining and very expensive portions not covered by the gas tax. ($20 Per Gallon Gasoline – How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better, Grand Central Publishing 2009). As the cost of gasoline rises people will drive less (with gas prices reaching around $4 per gallon, Americans drove 100 billion miles less in 2008 than they did in 2007), which reduces gas usage, tax revenue per gallon, and ultimately, funds dedicated to the national road system.  According to Richard Wallace, a senior project manager at the Center for Automotive Research, as gasoline prices grow to $6 per gallon decreased driving will reduce state road funds by 25% to 30%, accelerating the decline of the entire system. 

Confronting Reality

As I noted in my Institute program, these are realities that must be faced and addressed through funded programs. It will take enormous political will to seek hard data, share it with every community and begin preparing sensible action plans. Many public works and transportation professionals and their various associations have been relegated to a sideline position due to their insistence that infrastructure issues are in fact a huge portion of the national agenda. Infrastructure provides the basic internal framework of the American culture; it is elemental to economic growth, public health, quality of life, security, and National emergency response capability. Gasoline prices will increase as oil supplies decline – and this is well-documented. Even if, as some predict, new automobile technology soon achieves 100 miles to a gallon, vehicles still need decent roads. Smaller vehicles tend to be lighter and will wear out faster. With smaller, lighter cars and trucks, good roads become even more essential.

It is time we directly faced the facts at the local, state and federal level. Whether we move to toll roads, a higher gas tax, use taxes, or some other mechanism, funds must be dedicated to infrastructure. Unfortunately, merely dealing with roads and bridges will not get us very far. Infrastructure issues are MUCH larger. Can we face reality? Can we deal with the facts? And, can we make a plan that can achieve long-term success?  Time will tell. Again, is your organization Prepared For Challenge??

With over three decades working in and with federal, state and local government, John Luthy understands public agencies.  Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.

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Defining the (Stable) New City

Posted on July 20, 2009 by Dr. John Luthy

I had the great pleasure of having lunch with futurist Glen Hiemstra (www.futurist.com) yesterday. The evening before, we were joined at dinner by Phil Kushlan, former city manager and well known urban planner. Both have experience with and an innate feel for cities of the future and the conversation was, to say the least, extraordinary.  At one point during lunch, I shared my prediction with Glen that the most ‘magnetic’ cities, regions, and organizations would be those providing some level of stability. I explained that, while most pundits believe that future societies will be highly mobile and individuals will have many jobs and even careers during a lifetime, I believe that challenges of the future will bring about a new appreciation for stability. But, in my view, stability not only pertains to the number of jobs and careers, it includes factors associated with the environment, water, weather, taxes, transportation, housing, education, and the availability of financing.

Richard Florida (www.creativeclass.com) implies some of these elements in his book, Who’s Your City (Basic Books, 2008). While his earlier book The Rise of the Creative Class focused on his belief that cities offering the best environments for creativity, latitude and opportunity would be the most successful, Who’s Your City dives deeper into the creative economy and how it will attract the type of commerce needed to fuel new age sustainable economic development.  Too much to review here, but I encourage you to read the book.

Maslow Reference

Of particular note is the Chapter 10 reference to Abraham Maslow, the eminent psychologist who originated the theory of self-actualization. In this chapter, Florida reviews the survey conducted by his Creative Class Group, through which five major categories of community attributes were identified – Physical and economic security (crime rates, safety, direction of the economy), basic services (schools, healthcare, affordable housing, roads, public transportation), leadership (quality and collaboration among civic and business leaders), openness (tolerance/ acceptance), and aesthetics (cultural offerings and beauty). As I read this chapter, one conclusion was apparent to me. A primary outcome of all of these desirable community attributes distills down to broad-based stability. Especially in these challenging times, people don’t want to worry about and deal with escalating crime, poor leadership, high housing costs, poor roads, crummy schools, declining water supplies, rising energy costs, and intolerant neighbors.

The Self-Actualizing Community

Available research seems to reach similar conclusions through various convolutions. Whether communities can reach a level of ‘transcendence’ after satisfying each requirement of the ‘hierarchy of need’ is a matter of perspective. For those of us who work in the arena and focus on practical implementation more than theory, a lot of work must be done to create new equations that are practical, workable, and affordable. I love the new age of community planning. My concern is not ‘What’ we need to aspire toward, but ‘How’ we get there from here with myriad new challenges and costs appearing every quarter.  Most public leaders know what should be done; the dilemma is how to accomplish various tasks with limited funds, disenchanted citizens, frustrated employees, and a struggling economy. Thoughts and suggestions?

With over three decades working in and with federal, state and local government, John Luthy understands public agencies.  Known for his real world, straight talking style, he is a leading futurist specializing in city, county, state, and federal long-range thinking and planning. An innovative and dynamic presenter, John is frequently asked to speak and consult on how to prepare public organizations and communities for emerging challenges. He holds both the MPH and MPA degrees as well as a doctorate in education.

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