POLICY REPORT HUMAN RESOURCES Date: July 8th, 1997 Dept. File No. CC File: 1002/1377 TO: Vancouver City Council FROM: General Manager, Vancouver Fire and Rescue Services SUBJECT: Better City Government Initiative - Implementation of the "Transition" Phase of an Organizational Change Initiative at VF&RS. RECOMMENDATIONS A. THAT Council endorse the Fire and Rescue Services organizational review of the senior management structure as outlined in the Sommers Consulting Inc. Report (Executive Summary attached as Appendix A) as a guide to the evolution of the Department. B. THAT Council authorize the initiation of a process to fill the General Manager/Fire Chief position, subject to final Council approval; source of funds to be the Fire and Rescue Services Operating Budget. C. THAT Council approve an expenditure of $45,000 to conduct a search for a new Fire Chief; source of funding to be the Contingency Reserve Fund. D. THAT Council authorize filling the six new Assistant General Manager/Deputy Chief positions; source of funding to be the Fire and Rescue Services Operating Budget. E. THAT Council authorize the creation and filling of a new exempt position of Administrative Secretary to the General Manager/Fire Chief with funding from existing positions. F. THAT Council approve an expenditure of $20,000 to support the 1997 staff development program; source of funding to be the Contingency Reserve Fund. G. THAT the General Manager/Fire Chief report back to Council with an implementation plan for a Change Management initiative based upon the recommendations of the Sommers Report. GENERAL MANAGER'S COMMENTS The Sommers Report advocates changes that will lead to increased effectiveness of Vancouver Fire and Rescue Services. It recommends a new management structure, together with an implementation time line for filling the new General Manager/Fire Chief and Assistant General Manager/Deputy Chief positions. This time line is ambitious but achievable. Additionally, the report outlines twelve issues which must be addressed in order to maximise organizational effectiveness. It is recognised by both Management and the Vancouver Firefighter's Union Local 18 that a joint process is required to address these complex issues. This in turn will enhance the organization s ability to accomplish the changes required to meet stakeholder and customer needs. CITIZENS' ADVISORY COMMITTEE COMMENTS The Citizens' Advisory Committee supports the recommendations of the Sommers Consulting Group and the initiatives being proposed for the "Transition" phase. Staff development, specifically leadership training, is viewed as being of paramount importance. The proposed administrative structure offers new opportunities for the department to meet its mandate to the citizens of Vancouver. It is noted that real success can only come with stakeholder buy-in to a process which focuses on involvement and high quality communications. The Citizens' Advisory Committee recommends that this report to Council be accepted. COUNCIL POLICY A Council resolution on September 1,1992, directed the General Manager/Fire Chief to achieve a number of specific organizational objectives including the implementation of a vigorous program of staff development and succession planning. Council directed that during the term of the 1994-96 Budget Management program, any proposed increases in program and/or service levels be offset by corresponding spending reductions elsewhere in the City's operating budget or by increases in non-taxation revenues, subject to Council direction. Council has approved a number of resolutions authorizing the Better City Government Program. Fire and Rescue Services was approved by Council as one of the fifteen priority areas for review and redesign. In an Administrative Report to Council dated April 25,1996, Council endorsed a recommendation by the City Manager that the General Manager/Fire Chief report back with terms of reference for an overall review of the administrative structure of the Department. Also included was the allocation of staff resources to meet the needs previously identified by the Department and reiterated in the TriData study. PURPOSE This report summarizes the findings and recommendations of the Sommers Consulting team related to the organization of Fire and Rescue Services. It also recommends the approval of the first or "Transition" phase of a major Change Initiative requiring the staffing of eight positions. Approval of the recommendations in this report does not commit Council to any further action. BACKGROUND In 1993, Fire and Rescue Services completed its first Strategic Plan. One of the primary goals of that Plan was to provide a basis for the reallocation of resources to areas of greatest strategic need and to provide a direction for the redesign of the overall department structure, including the assignment of senior staff. At that time, the existing senior management positions of the department were realigned on an ad hoc basis to meet the immediate implementation needs identified in the Strategic Plan. Recently, the Department completed an operational review of staffing, equipment, deployment and firehall locations. This review was carried out by a consultant, TriData. Recommendations were presented to and adopted by Council on March 27,1997. The Deputy Fire Chief gave notice of his intention to retire by November 1996 and the General Manager/Fire Chief will retire in May of 1998. There are also a number of current or pending vacancies at the senior staff level. This created an opportunity to review, and if necessary, reorganize the Department's senior management structure. A review of this nature at this time is a key supporting strategy to other Better City Government initiatives currently ongoing in Fire and Rescue Services. In an Administrative Report to Council dated August 26,1996, Council approved a recommendation by the General Manager/Fire Chief to engage the services of a suitably qualified consultant to conduct a review of the senior management and administrative structure of Vancouver Fire and Rescue Services. DISCUSSION This report summarizes the findings and Change Management strategy of the Sommers Consulting team. The consultant recommends a two phase approach to implementing the significant organizational change required at Vancouver Fire and Rescue Services. The first preparatory or "Transition" phase will commence upon approval of this report and will be complete at approximately the same time as the current General Manager/Fire Chief retires. This phase will include a staff development program, filling the General Manager/Fire Chief and six Assistant General Manager/Deputy Chief positions, developing communications and participation strategies, and the development of a detailed plan for the next phase. The filling of these positions will be timed so that the new General Manager/Fire Chief will have the opportunity to influence the process and participate in the selection of the new executive team. The second phase will be the "Implementation" phase itself and is expected to last for up to five years. Also identified in the consultant's report are a series of issues which must be addressed if organizational effectiveness is to be maximised. These issues include: - A "Glass Partition" which currently exists between senior staff and firehall staff Ÿ A lack of support for executive personnel by the rank and file - Constraints resulting from seniority Ÿ Development of management skills Ÿ Career development - Organizational culture Ÿ Labour management relations - Accountability and responsibility Ÿ Training Ÿ Communication - Organizational vision Ÿ Emergency Medical Services In order to facilitate the process of addressing these issues and their associated recommendations, it has been agreed with Local 18 that a joint labour management committee will be established. It is also jointly agreed that mutually acceptable processes will be quickly defined to enable the committee to develop comprehensive solutions to the complex issues identified by the report. IMPLEMENTATION AND COMMUNICATIONS PLAN Major steps in the first phase of the Change initiative include: 1. Laying the Foundation for Change, to be complete by August 1997. This includes the creation of a staff development program and filling the first Assistant General Manager/Deputy Fire Chief position. Additionally, input will be sought from stakeholder groups on a comprehensive communications and participation strategy. 2. Selecting the new General Manager/Fire Chief, to be complete by December 1997. This will include well defined position/candidate requirements and an internal/external search for qualified applicants. 3. Readiness for Change, to be complete by June, 1998. This includes well defined position/candidate requirements for all exempt positions along with a search for the remaining Assistant General Manager/Deputy Chief positions. Input during this phase will be solicited from all stakeholder groups through a consultative process. Regularly scheduled meetings with each group and a series of news bulletins will be used to communicate the Change process. A report will be submitted to Council before the start of the implementation phase in May 1998. PERSONNEL IMPLICATIONS It is expected that a number of senior staff will be reassigned during this first phase. However, at this time it is not expected that overall staff levels will change. FINANCIAL IMPLICATIONS It is proposed that, in the longer term, new positions to be staffed will be funded from the within the existing Fire and Rescue Services Operating Budget. However, in the short term, "bridging" costs may be incurred in order to accommodate the movement of staff within the organization during this phase. A report to Council will be submitted if additional funding becomes necessary. The estimated cost for filling the General Manager/Fire Chief position through an internal/external search will be $45,000 and it is requested that the funds be provided from the 1997 Contingency Reserve Fund. Costs for performing a full executive search have increased in recent years and the City's experience with quotations for similar searches for other senior positions suggests that $45,000 is a reasonable estimate. There are a number of immediate staff development needs. The Director, Human Resources will be involved in all 1997 staff development initiatives and expenditures. It is expected that VF&RS' 1998 Training and Education budget will need to increase by approximately 20% or $25,000 during this "Transition" phase. This will be required to fund external education as part of the proposed staff development program. Justification and a detailed plan will be submitted through the 1998 budget process. Funding required to accommodate educational/staff development leaves with backfills will also be submitted through the 1998 budget process. SOCIAL IMPLICATIONS The objective of this first phase is to implement a management structure which will be organizationally more effective. This is required to support the Department's goals of providing real value to our customers at a reasonable cost and which is consistent with their needs. It is also required to ensure that all members of the department share a common vision of the future, and have an opportunity to develop and participate in that vision. * * * * *