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Staff Report
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Report To: General Government Committee
Date of Meeting: October 19, 2020
Reviewed By: Andrew C. Allison, CAO
File Number:
Report Number: CAO-021-20
By-law Number:
Resolution#: GG-371-20, C-435-20
Report Subject: Organizational Structure Review Update
Recommendation:
1. That Report CAO-021-20 be received for information.
Municipality of Clarington
Report CAO-021-20
Report Overview
This report is intended to provide Council with an update on the changes made to our
organizational structure that were approved by Council on March 2, 2020.
Page 2
1.1 Through Report FND-021-19, staff were directed to undertake an organizational
structure review. Grant Thornton LLP ("GT") was engaged to undertake the review.
1.2 The first step taken by GT was to complete a Current State Assessment. GT then
performed an analysis based on six specific areas of impact (cost savings) and what
they termed a 4P analysis (Purpose and Strategy, People and Culture, Process and
Finances, and Performance and Measurement). This resulted in 30 recommendations
and a high-level implementation outline that were presented in GT's December 4, 2019
report entitled "Municipality of Clarington Organizational Structure Review".
1.3 In Report CAO-016-19, staff identified that financial implications (e.g. impact on the
municipal budget, possible sources of future funding to assist with the implementation);
human resource issues (e.g. collective agreement implications, pay equity); physical
space requirements; functional analyses of impacted positions; realistic timeframes for
implementation; and, most importantly, input from staff needed to be considered as
integral parts of any implementation plan.
1.4 Through Resolution #C-430-19, Council directed staff to prepare an implementation
plan and a cost analysis for consideration during the 2020 budget deliberations. Report
CAO-006-20 responded to that direction. It addressed all 30 recommendations in GT's
report, and assessed whether they would help the Municipality improve how services
are delivered. Some staff analysis was compiled in Report CAO-007-20 which was
confidential because it contained personal information about identifiable individuals.
1.5 Resolution C-087-20 passed by Council on March 2, 2020, provided as follows:
That Report CAO-006-20 be received, -
That Council endorse the organizational structure changes generally as set out in
this Report, -
That Grant Thornton Recommendation #8: Outsource Animal Services, be received
for information, -
That Animal Services remain status quo, thus Animal Services will not be
outsourced,
Municipality of Clarington
Report CAO-021-20
Page 3
That the Correspondence Items 7.1 regarding Recommendation #3 in Report CAO-
006-20, Organizational Structure Review - Implementation Plan (Grant Thornton
Recommendation #8: Outsource Animal Services), be received;
That staff be directed to apply for funding under the next intake of the Audit and
Accountability Fund in order to assist with the implementation of Recommendation
#26 (Key Performance Indicators);
That non -statutory Deputy Director positions (not including Emergency & Fire
Services) be eliminated;
That Staff be directed to review the content of staff positions across departments,
and KPI's, with the funding to be considered as part of the 2020 Budget; and
That all interested parties listed in Report CAO-006-20 and any delegations be
advised of Council's decision.
1.6 As part of the 2020 Budget, Council established the Continuous Improvement Reserve
Fund with an initial $100,000 to assist in the implementation of organizational changes
recommended in Report CAO-006-20.
1.7 Through Report FND-025-20, Council directed staff to retain Grant Thornton to pursue
the implementation of Recommendation #26 (Key Performance Indicators) utilizing a
portion of this Reserve Fund.
1.8 The Provincial government has not announced a second intake of the Audit and
Accountability funding. Should those funds become available, staff will attempt to
determine if the work described in section 1.7 above can be covered retroactively. If not,
staff will identify other projects that will meet the Province's funding criteria.
2. Restructuring
2.1 Updates respecting the changes to our organizational structure that were approved by
Council on March 2, 2020 are provided below using the recommendation numbering in
the GT report. March 2 was the last Council meeting before the COVID-19 pandemic
became the focus of much of our corporate decision -making.
2.2 It is important to note that where the restructuring or realignment is noted below as
having been implemented, all steps required to fully implement the change may not
have occurred. At a minimum, what has changed are reporting relationships and job
titles. However, other administrative steps may still be required (e.g. new GL accounts,
job descriptions, pay equity assessments, and physical office relocation). Some job
responsibilities are being shared so that they are supported through the transition.
Municipality of Clarington Page 4
Report CAO-021-20
1. Combine Office of the CAO with Mayor and Council Administrative Support to
Form Executive Services
2.3 The changes approved by Council have been implemented, and the cost savings were
captured in the 2020 budget.
2. Move Tourism from CAO to Community Services
2.4 Tourism became part of Community Services in September 2020.
2.5 Report CAO-006-20 raised the possibility of cost savings if the Liberty Street Tourism
Office (the Visitor's Center) was closed. This possibility will be discussed in a report
from Community Services scheduled for a GGC meeting in November.
3. Move Climate Change from CAO to Planning Services
2.6 This functional realignment was implemented in March 2020.
4/5. Add Legal and Clerk's to Corporate Services
2.7 Phase 1 of this recommendation was implemented this month (October 2020) through
the formal creation of a Legislative Services Department. Legal Services, Clerk's,
Municipal Law Enforcement and Animal Services are now separate divisions within this
new Department.
2.8 At this time, real estate services remain within the Special Projects Branch of the
Planning and Development Services Department.
2.9 GT recommended that the next phase of this recommendation (merging Corporate
Services with either Legislative Services or Finance) could take place in Year 2-3. As
was mentioned in Report CAO-006-20, there could be savings and efficiencies achieved
if Legal, Clerk's and Corporate Services are brought together, but there could also be
savings and efficiencies if Corporate Services is combined with Finance — essentially
taking the Municipality back to where it was 20 years ago. Another possibility identified
in Report CAO-006-20 was that the Human Resources Division currently in Corporate
Services could be combined with Legislative Services, and IT combined with Finance.
2.10 As was stated in Report CAO-006-20, there is a lot of work that must be undertaken by
Corporate Services to fully implement the recommended structural changes. After
much of that work is done, and the newly reorganized departments have had some time
to adjust, the issue of how to reposition the individual divisions currently within the
Corporate Services Department can be assessed. The expectation is that this second
phase of restructuring can be implemented in 2021.
Municipality of Clarington Page 5
Report CAO-021-20
6. Move Accessibility Coordinator from Clerk's to Community Services
2.11 In June 2020, Community Services staff began working with the Clerk's Department to
assume the responsibility for accessibility. Upon her return from maternity leave in
February 2021, the Accessibility Coordinator will officially join the Community Services
Department.
7. Move Oversight of Volunteers from Community Services to Human Resources
2.12 Staff felt that oversight of volunteers should remain with Community Services and
Council agreed. Therefore, there were no structural changes.
8. Outsource Animal Services
2.13 Through Resolution C-087-20, Council directed that Animal Services should remain
status quo and not outsourced.
9. Move Purchasing from Corporate Services to Finance
2.14 This recommendation was implemented on June 1, 2020.
10. Create Centralized Customer Service
2.15 Council endorsed this recommendation. Creating a centralized customer service model
will require significant staff time, planning, research and possibly monetary investment.
A robust plan will be provided for Council consideration once staff have created a
business case and prepared the necessary implementation strategy. Staff will be
developing this over the next two to three years.
2.16 Staff are looking at the possibility of using the Lean certification process (black belt) to
create a centralized customer service model.
11. Create a Public Works Department
2.17 This recommendation was implemented in July 2020.
Municipality of Clarington Page 6
Report CAO-021-20
12. Move all Facility & Park Design, Construction and Maintenance to Public Works
2.18 These recommendations (slightly modified as described in Report CAO-006-20) have
been implemented. Effective July 2020, all park design, construction and maintenance
services have been combined and are now delivered through Public Works. All buildings
and facilities responsibilities have been combined and are now managed by the
Community Services Department.
13. Move Crossing Guards from Planning to Public Works
2.19 Public Works became involved with the transition of the School Crossing Guard
Program from Planning in the summer, and the formal realignment was implemented in
September 2020.
14. Move Field Booking from Operations to Community Services
2.20 This realignment was implemented in August 2020.
15. Move Building Services (CBO) from Engineering to Planning and Development
2.21 This recommendation was implemented in July 2020.
16. Move Development Approvals from Engineering to Planning and Development
2.22 In Report CAO-006-20, it was stated that staff recognized the potential benefits of this
recommendation but did not feel that this reorganization is needed at this time. Instead,
staff recommended that this recommendation be revisited in 2021. That is still the plan.
17. Possible Outsourcing of Forestry
2.23 In Report CAO-003-20, Council was presented with a review of forestry services.
Through Resolution #GG-062-20, Council voted to (a) endorse the recommendations of
the Forestry Service Delivery Review; and (b) conduct a customer service and work
order process review using in-house resources and Lean methodologies.
2.24 Efforts to date have included the commencement of a Lean Six Sigma review, the
further refinement of existing City Wide software, and the development of a staff training
program. Improvements in these areas have allowed for the better tracking of service
requests and the creation of more efficient work schedules. The re -purposing of
existing staff resources within the Public Works Department has also allowed for the
recent hiring of a qualified arborist to fill a vacancy.
Municipality of Clarington
Report CAO-021-20
18. Review of Snow Removal
Page 7
2.25 Issues (including timing) related to possible outsourcing of snow removal were
addressed in Report OPD-001-20. Through Resolution #C-022-20, Council voted to
pursue a phased approach starting with two snowplow routes. In Report OPD-002-20,
staff recommended the cancellation of outsourcing due to the higher than expected
tender pricing. Subject to Resolution #GG-137-20, the matter has been referred back to
staff to obtain additional tender pricing and a report back in the Fall of 2020.
2.26 Ontario Tech will be working with the Public Works Department this winter on a
snowplow route optimization project. It is anticipated that this exercise will yield several
efficiencies.
19. Create a Planning and Development Department
2.27 This recommendation was implemented in July 2020.
20. Create Formal Economic Development Communication Link Between Planning
and Clarington Board of Trade
2.28 The changes discussed in Report CAO-006-20 have all been implemented.
21. Move Cemetery Administration from Clerk's to Community Services
2.29 Staff and Council did not agree with this recommendation. Therefore, no action was
required.
22. External Review of Fire and Emergency Services
2.30 The 2020 budget included $80,000 (fully funded by development charges) for an update
to the Fire Master Plan. Staff are currently reviewing all submissions made in response
to the RFP.
23. Formalize Process for Performance Evaluation
2.31 GT recommended two action items under this one recommendation — the creation of
formal position descriptions and formal performance evaluations.
2.32 We have engaged ML Consulting to assist in the preparation of formal job descriptions
(which we currently do not have) that can be used as part of our Pay Equity process and
also linked to departmental business plans and KPIs.
Municipality of Clarington
Report CAO-021-20
Page 8
2.33 In 2018, Policy B7 was updated to provide a completely revamped Performance
Management Review form. The form is to be completed on an annual basis and
reviewed semi-annually. It includes sections that define SMART organizational goals
and objectives as well as career development goals. Going forward, this form may be
adjusted to include references to KPIs. The possibility of establishing a system of
performance reviews for CUPE staff will be discussed as part of collective bargaining
discussions (Notices to Bargain was received from both CUPE locals on October 2,
2020).
24. Create Role for Training In -House
2.34 Training and development will be key to the Corporation's future success for all of the
reasons set out in Report CAO-006-20. The challenge is that much of this training can
be expensive to procure, hence the recommendation from GT to hire someone in-house
to provide the service at a decreased cost. The 2020 budget for staff training and
development was $276,000 which was an increase of approximately 2.3 per cent as
compared to what was budgeted in 2016.
2.35 The Municipality has in-house staff who are able to leverage their expertise to design
and develop university -level educational training. Corporate Policy Analyst, Justin
MacLean, has been leading this initiative. With the assistance of Mike McCron,
Corporate Safety Officer, and Jason Douglas, Network Administration Supervisor, Mr.
MacLean provided virtual training on working from home in a healthy, secure and
effective way. The session was titled, "Working from Home — Maintaining Culture,
Community and your Sanity." A second (2 part) virtual training session was offered to
employees on the topic of Persuasive Presentations. Over 100 employees participated
in each of these sessions.
2.36 In the past, the Municipality had a customer service training program. It was run by
internal staff (beyond the scope of their day-to-day job functions), but all of the
individuals who were delivering this in-house service have retired. It needs to continue,
but staff who have the skills to deliver this service in-house have time constraints.
Longer -term support for this and other training initiatives will require budget allocation.
2.37 COVID-19 has curtailed our plans to deliver in -person training through lunch and learns.
Instead, staff have been researching on-line training modules that could be utilized for a
wide range of staff development initiatives.
2.38 Consideration must also be given to efficiencies that can be created by building out
technical training opportunities. The Public Works Department is required to certify and
train employees in a variety of disciplines. The Department currently hires outside
contractors to do most of this training.
Municipality of Clarington Page 9
Report CAO-021-20
2.39 Training is also required for the roll -out of several new digital initiatives under the
leadership of our IT Division. Currently, IT does not have sufficient human resources to
provide software training to departments.
25. Formal Human Capital Management (Leadership Training, Performance
Management) Process
2.40 It was clear from GT's recommendations that our Human Capital Management functions
need to be adequately resourced and integrated into our overall corporate business
planning. The following chart was built based upon industry best practice and research.
It provides context to some of the early stage HCM re -design work that our Human
Resources Division is undertaking and seeking to build upon:
Human Capital Management — Recruitment and Retention
Job Analysis &
WRecruitment
Work Design
Traditional
Recruitment
Practices
Formalized
Co-op/
Internship
Process
Performance
Talent
Onboarding
Management
Development
Corporate Training
Agile Feedback
Corporate
Or Policies,
i g
from Supervisor
Training
Customer Services,
{linked to personal
{Leadership,
Document
goals &
Communication,
Management,
Departmental
Lean, etc.}
Accessibility, etc.}
JgOr KPIs
Department
Training
{Department
Policies, KPIs} Career
Planning &
Support
Job Analysis and Work Design — As mentioned above, we have retained the support
of a pay equity expert to build out formal job descriptions that appropriately coincide with
our pay structure. This will allow for a streamlined work design and ensure that positions
are compensated fairly. The first step in this exercise will be to review the positions that
have had their duties adjusted as a result reorganization. Another facet of this work will
involve tightening up our pay equity review process. We have received advice that the
process we were given in the past is likely more cumbersome than required by law and
can be adapted to create immediate efficiencies.
Municipality of Clarington Page 10
Report CAO-021-20
Recruitment — HR staff are working with IT to investigate the procurement and
integration of a digitized applicant tracking system. This will support our recruitment and
intake processes. Further, the Office of the CAO has been working with the Region of
Durham on a partnership initiative that would create relationships between local
governments and post -secondary institutions.
Onboarding — Corporate training, as mentioned above, is underway with the
development and deployment of two unique modules that have already been delivered
and made available to staff. It is anticipated that further training will be developed (in-
house) and rolled -out with the business planning/KPI work from GT. It is vitally important
that such a large change initiative coincides with appropriate education and training for
all staff who will be affected by it. Otherwise, the chance of success and corporate buy -
in diminishes.
Performance Management — This will be addressed through the Performance
Management Review Form in conjunction with the GT work in relation to KPI
development and business planning. Both the KPIs and goals set out in business plans
will provide a measuring benchmark for managers evaluating staff performance.
Talent Development — Corporate training, potentially the development of a
management training program, are currently being considered to address this item.
26. Implement Key Performance Indicators
2.41 GT has been working diligently on assisting with the development of Key Performance
Indicators (KPIs) and associated business plans for each Department. It is expected
that their work will be completed by the end of this calendar year.
2.42 Staff will be targeting to have some formal KPIs in place in the first quarter of 2021.
27. Formalize Support/Processes for Departmental and Team Level Communication
2.43 A key part of our overall corporate success, not just with our structural changes but
literally everything we do, will be to ensure that we have strong interdepartmental
communication.
2.44 Using Microsoft SharePoint technology, the Communications Division developed a
COVID-19 portal for internal staff updates during the pandemic. This is a trial run, as
staff familiarize themselves with the technology and opportunities to enhance internal
communications and begin the process of building a robust internal online portal for all
staff.
Municipality of Clarington
Report CAO-021-20
28. Review of Department Level Structures
Page 11
2.45 Department Heads will continue to realign and restructure within their individual
departments. The recommended organizational structure in Report CAO-006-20 was
not etched in stone. If there is a better way to align functions and positions within the
newly created departments, realignment can and will be undertaken.
29. Process Improvement Initiatives (Lean Methodology)
2.46 Training continues and we have found ways to address various needs, including
challenges relating to the recent pandemic by moving yellow belt training online.
2.47 Green belt projects are on -going, and a process has been put in place and is being
rolled out this fall for staff across the corporation to submit projects for consideration for
improvements through a continuous improvement project.
2.48 The Municipality became a member of the Ontario Lean Community of Practice (OLCP)
as a means to collaborate with other municipalities across the Province who are also
embracing the continuous improvement philosophies associated with Lean. This will
continue to benefit Clarington from a resource and ideas perspective as we continue to
ingrain the continuous improvement philosophy into our culture.
2.49 Staff are looking at the next step in certification with a black belt and targeting the
Corporate Customer Service Strategy.
30. Workflow Automation
2.50 As noted in the IT Strategic Plan that was endorsed by Council in 2017 (see Report
CAO-008-17), "technology is core to enabling municipal governments to keep up with
growth in demand and rising customer expectations." Today's customers demand better
access to online services and more timely response to service requests and enquiries.
This philosophy was endorsed in recommendation 30 of the GT Organizational
Structure Review report.
Municipality of Clarington Page 12
Report CAO-021-20
2.51 The COVID-19 pandemic has emphasized the critical role Information Technology plays
supporting municipal services and ensuring business continuity. The IT Division has
adapted quickly to facilitate change in the current work environment, allowing most
business activities to continue seamlessly throughout the pandemic, to the point that
Clarington IT has been sought out for advice from peer municipalities. The introduction
of remote participation in meetings, electronic and remote invoice approvals, storage
and retention in new formats, electronic access to on -site files, and movement to
elements of e-procurement, have all been implemented in-house to allow the
Municipality to continue offering services. COVID-19 impacts are expected to continue
to affect many service programs and delivery of services, and the ability to respond to
residents' needs and expectations. All of this will continue to depend on support from
critical and reliable IT infrastructure and staff.
2.52 With Council's approval of the Municipal Business Solution (MBS) system in June 2020
(see Report COD-018-20), most municipal services will have an enhanced ability to
facilitate service demands and data accessibility. It is also expected that the Key
Performance Indicators will incorporate multiple facets of the MBS application. The
targeted timeframe for complete implementation of MBS is Q4 of 2021.
2.53 Staff from the Clerk's Division and IT Division have been actively working on an
Information/Knowledge Management Initiative that will transition all departments to an
integrated electronic records management system. The Clerk's Records Management
staff have conducted a number of record inventories and information -gathering
meetings. As well, staff have documented process workflows for all business processes
of the former Engineering Department. Together with business processes identified
through the MBS project, this review provides the necessary information to identify
areas of focus for efficiencies, elimination of duplication, and improved record sharing.
Staff are in the final steps of developing the plan for the new Public Works Department
and have initiated the inventories and information gathering for the new Planning and
Development Services Department.
2.54 With the implementation of Office 365 earlier this year, Clerk's and IT staff are looking to
leverage this technology suite when implementing new file plans for these two new
Departments. Staff anticipate that Office 365 will replace some legacy systems. Over
the next couple of months, staff will be trained on the tools available through Office 365.
In the meantime, Records staff are designing the file plans and the department staff
(both of these select Departments as well as across the Municipality) are working to
clean-up shared drives and to digitize where they can. Some of the digitization work was
undertaken this year through redeployment.
2.55 The Finance Department is working on online payments for certain services, with a
planned roll out later this month.
Municipality of Clarington
Report CAO-021-20
3. Next Steps — Strategic Execution
Page 13
3.1 To have a successful roll -out of the changes, a cross -functional implementation team
was established in March of this year. The pandemic curtailed the planned involvement
of that team and most communications relating to the organizational changes. The
following outlines what is planned going forward:
Date
Communication
November
Implementation Team Meeting (Update from Grant Thornton on KPIs
and business planning process)
November
Department Head discussion, led by CAO and GT, outlining GT's
work to date
November
Update to all managers (Management Meeting)
November
E-mail status update to all staff on GT's work to date
December
Delivery of GT final report
January
Townhall meeting discussing business planning and KPIs and how
they will impact operations moving forward
February
Launch Management Training session related to leadership
development, empowering staff, business planning, accountability
through metrics, training (to be developed in-house) and data based
/driven decision making
Ongoing
Status updates on progress (highlighting wins, opportunities and
challenges) and reporting KPIs
4. Conclusion
4.1 Staff have dedicated a significant amount of time to implement the changes that were
approved by Council in March of this year, and they have done so while having to
respond to the challenges of the pandemic.
4.2 It is anticipated that the organizational structure changes detailed in this Report will
respect and build upon our current strengths to produce tangible service delivery
improvements.
Staff Contact: Andy Allison, CAO, 905-623-3379 ext. 2002 or aallison clarington.net