Los Angeles Government Operations Innovation Model A PLAYBOOK FOR TRANSFORMATIVE CHANGE IN CITY GOVERNMENTS 2 At the heart of every great city is a healthy government Angeles and the Los Angeles Coalition for the Economy & that provides its residents reliable public services, a job Jobs. We achieved success in bringing together talent from creating economy and thriving communities. In recent the private and public sectors to gather data, best practices decades, growing populations and stretched budgets have and insights to transform the management of government placed increasing demands on city leaders and public spending, to improve government functions, and services

Foreword administrators to do more with less. That has led to a to reduce costs and drive new revenue. realization by government, community and civic leaders that government cannot meet these challenges alone. Since its inception, the L.A. Model has placed city government operations in a better The path forward must take a more collaborative approach position to cut costs, increase transparency, improve between the public and private sectors. In Los Angeles oversight, and: we created the Los Angeles Government Operations Innovation Model (“The L.A. Model”). This platform ■■ Streamline the city’s procurement process to reduce fostered the development of cross-sector leadership costs and diversify the vendor pool, especially women- and partnerships to inject innovative ideas into the city’s owned and minority-owned businesses; bureaucracy to bring about system reform. ■■ Digitize the management of the city’s real estate assets, allowing for greater transparency and I believe that the L.A. Model blueprint is broadly applicable management; for all leaders looking to implement systemic changes and strategic reforms. This model will help city governments ■■ Reduce workplace safety risks and associated costs. foster new ways to develop cutting-edge partnerships with non-profit and private sector organizations, two very In sharing the L.A. Model with you, I look forward to creating important sectors capable of helping your city transform a dialogue among city leaders who share a mutual goal of scarce resources into positive, sustainable change. strengthening city government’s role in putting its residents and communities first. The L.A. Model was a newly established partnership between the Mayor’s Office, the Mayor’s Fund for Los Eric Garcetti Mayor of Los Angeles

3 The good news is that city workers want to be engaged and already know where most of the problems are. Their active participation is instrumental in making efficiency and service improvements. To help ensure long-term success, it is critical that the Project Team create detailed implementation plans, define performance indicators and milestones, and collect data to monitor progress. LOCAL GOVERNMENT The L.A. Model is a good starting point for any city, no matter how unique its challenges, the size and diversity of its population, the scale of its geographic environment, or the structure of its governance system.

PROJECT TEAM

PRIVATE SECTOR PHILANTHROPY “Instituting new technology solutions were a critical piece in each of our projects in Los Angeles, helping us to The L.A. Model brings together public and private sector talent to implement systemic change to a City’s most outdated operational drive operational efficiency, increase business systems. The strength of this model is found in its ability to transparency & oversight and think develop a collaborative platform that encourages interactions, and more strategically. In the end, our Public-Private Partnership Public-Private innovative thinking, between public officials, business leaders and civil projects were successful, because we service workers. secured the buy-in of long-time public Government will work better and provide better services if the employees.” fundamentals are in order and working to maximum efficiency. The success of this model builds on an understanding that driving Shmel Graham, Director, Operations positive change will cause some disruption of the status quo and Innovation Team, City of Los Angeles require the necessary resources to implement long-term changes.

4 A successful public-private partnership can be an effective driver of long-term civic change by:

■■ leveraging a broader set of skills and ■■ accelerating innovative solutions in a experiences to advance solutions bureaucratic environment

■■ facilitating skills development and ■■ unlocking new sources of financial knowledge transference across sectors capital to serve as seed money to pilot new ideas or technology

L.A. Model Benefits L.A. Model Differentiators

accelerating step-change public and private mid-career improvements in government professionals on one Project Team operations

innovating and implementing significant private funding fresh ideas Public-Private Partnership Public-Private access to pro-bono advisory advancing city priorities services, data, and technology

targeted, time-limited, fostering systemic change intensive intervention

5 Philanthropy

Role The Mayor’s Fund for Los Angeles LOCAL GOVERNMENT Philanthropy acts as an independent convener The philanthropic component of the L.A. of multiple perspectives and interests to Innovation Model was fulfilled by the accomplish the common goal of systemic Mayor’s Fund for Los Angeles, a non-profit PROJECT TEAM reform in city government. The philanthropic organization positioned at the crossroads of

PRIVATE SECTOR component of the partnership should have the local government, business, philanthropy, PHILANTHROPY stature and agency to foster the conditions that and the non-profit sector. The Mayor’s Fund create meaningful, long-term change. raised money to finance the Project Team and provided financial oversight.

Private Sector

Role The LA Coalition for the Economy LOCAL and Jobs GOVERNMENT The Private Sector, in partnership with the local government, creates an Advisory Council The LA Coalition is an independent bipartisan composed of private sector leaders to support alliance that brings together leaders from PROJECT TEAM the Project Team. The Advisory Council business, labor, academia and nonprofits to PHILANTHROPY provides periodic feedback on work plans and advance sound policies that help grow the PRIVATE SECTOR execution. The Council meets to review the economy and create quality jobs throughout Project Team’s progress and offers counsel and the Los Angeles region. Since its founding in-kind support to the Project Team Director in 2009, the Coalition has leveraged public and team members. Additionally, the Private and private sector resources to advance Sector provides capital, advice, mentoring and investments that have lead to the revitalization additional in-kind resources to the team. of the region’s transportation infrastructure, Government Innovation Model Innovation Government city government’s business systems and workforce development programs. These efforts are fostering the redevelopment and new development of community infrastructure, a skilled workforce and creating good-paying jobs for hundreds of thousands of Angelenos. 6 Local Government

Role The Mayor and City Council

Leadership and executive sponsorship from The Mayor’s Back to Basics Agenda and the LOCAL elected officials is integral to achieving success. Council’s Ad Hoc Jobs Committee created GOVERNMENT As with any organization, public or private, the policy and priority framework to make there will be competing priorities and it is the implementation of the Project Team’s

PROJECT important to ensure adequate visibility and recommendations successful and long-term. TEAM executive support to ensure the results are The Mayor and City Council also led this effort PRIVATE SECTOR PHILANTHROPY sustainable. by endorsing the concept, requiring regular reports, and providing direction as appropriate.

Project Team

Role L.A. Innovation Model Project Team

LOCAL GOVERNMENT The Project Team should be presented as The project team was created with a mix of a collaborative effort between the city and people with private sector and public sector private partners. The Team secures internal backgrounds. The private sector members support, maps out priority reform initiatives, committed to a full-time tour of service for the PROJECT and secures partnerships with universities, duration of the project. The City employees TEAM PRIVATE SECTOR PHILANTHROPY technology companies and other stakeholders were temporarily transferred to work full-time to bring forth the best metrics and execution on this project for its duration. to reform City operations. The Project Team is not intended to replace city employees, rather Government Innovation Model Innovation Government to provide the additional bandwidth needed to focus on driving transformative change in the business or operational practices.

7 Driving Systemic Change

Systemic Change Codify reforms through legislation or Reforms executive actions Data Propose systemic reforms Collect data and assess opportunities/barriers to Create systemic change Create Project Team, budget, and timeline

On-going Implementation Pilot Refine City formalizes reform Pilot solutions during effort through target hires, Project Team Refine scope to di entify Identify project by embedding budget adjustments, Recruit and on-board potential solutions with Project Team members investment in technology Identify government Project Team Advisory Council, Mayor, as advisors within and assignment of on- operations problems Philanthropy, and Private bureaucracy going oversight that require a long-term Sector solution Government Innovation Process Innovation Government

8 Creating a Project Team The Project Team is a collaborative effort between the city and private partners, co-located within city government offices. The Project Team is unique in the fact that it incorporates city staff within the Team and also partners with city employees to effect positive outcomes. As the initiatives advance it is critical to have a effective communications strategy in concert with the city’s mayor or city manager in order to best highlight the Project Team’s vision and efforts. Lastly, it is important that the Team commit for the duration of the project, and plan for potential opportunities to be retained by the City to assist with the execution and implementation of the Team’s recommendations.

Project Team Members

Mayor’s Appointee Team Director Project Team Oversees the Project Team, and The Team Director leads the day- Project Team: The project team Project Team Project acts as a liaison between the Team to-day activities of the Project should include a data scientist, Director and the Mayor. The Mayor’s Team, including generating ideas, process engineers, project Appointee should be a member of supervising the Team’s work plan management experts, subject the Mayor’s executive staff. and monitoring progress, and matter experts, and others with liaising with City department project relevant expertise. Half the heads and other City stakeholders. team should come from the public The Team Director should have sector and half from the private past experience interacting with sector. government.

Project Team Project Team Goals Characteristics

■■ Serve as a catalyst for systemic ■■ Embrace a collaborative approach ■■ Persistent in obtaining information reforms in government operations with city employees ■■ Strong background in organizational design ■■ Support, not supplant, ■■ Facilitate skills development and ■■ Experience in process design/design thinking government employees knowledge transference ■■ Entrepreneurial leader who is an ■■ Engage non-governmental ■■ Use best practices for analysis and independent worker participants, including private project management sector entities, nonprofits, and ■■ Superior critical thinking and analytical skills ■■ Measure and document progress foundations 9 Potential for significant Potential improvement in financial ROI city services

Limited city Require bandwidth sustainable “An emerging trend is a greater appreciation for the role and/or solutions resources nonprofits, foundations and social entrepreneurs can play in improving government operations and services.

Project Selection Project The Los Angeles Coalition for the Economy & Jobs is a Ideal for Many people leader in this space and understands that the healthier multi-sector benefit collaboration we make our government infrastructure the stronger our economy will be. We are proud of the results generated by this unique initiative with Los Angeles Mayor Eric Garcetti and the Mayor’s Fund for Los Angeles. There were enormous opportunities to achieve cost mitigation, revenue generation, and overall operational efficiencies Framework for vetting projects - ultimately leading to further economic development opportunities and improved quality of life for all Selecting ideal problems is critical to maximizing benefits. The Angelenos. We expected the work to be challenging - following framework is one way to evaluate existing government operational systems. Each section of the hexagon represents either we were right - and, in the end the results matched our a potential benefit, challenge or opportunity. Sections are filled in if ambitious expectations.” that particular criteria is met. Individual criteria for each section can also be created to help complete the exercise. Michael Kelly, Executive Director, Los Angeles Coalition for the Economy & Jobs

10 Using this framework, the Mayor, the Los Angeles Coalition for budget. A project team was assembled with full-time staff for a two the Economy and Jobs, and the Mayor’s Fund identified three year project supported by $1.5 million in private sector contributions. opportunities to deliver improvements at minimal cost to the City’s Below is a brief summary of the project results:

Workplace Safety Procurement

The L.A. Experience Result: Result: Workplace safety coordination and accountability of City Streamlining and diversifying vendors in City’s $8.2 billion annual departments procurement spend

At the Project Team’s recommendation, the Mayor formed a Risk The City’s first Chief Procurement Officer(CPO) was hired to provide Reduction Cabinet to help City departments reduce workplace executive leadership on procurement excellence and best practices, injuries and liability exposure. Through a Mayoral Executive in part by using technology to drive innovation. This will transform Directive specific instructions were set forth to improve the way City the City’s process for engaging vendors, including local and minority- departments report, analyze, and strategically reduce risk using data owned businesses, through an improved technology infrastructure. analytics and improved technology infrastructure.

11 Real Estate “My time with the Mayor’s Operations Result: Innovation Team brought forth some of the A digital real estate portfolio to maximize city-owned properties best learning opportunities and personally enriching challenges. My years and experience The Project Team created the City’s first digital portfolio of its real in the private sector helped me lead and

The L.A. Experience estate holdings, allowing everyone to research options to use these produce work with impact. Los Angeles sets assets more effectively. This initiative is being leveraged to develop a strategic city-wide plan to foster the development of more affordable trends - that’s a fact - and having my work housing and economic development related projects. improve and support this great city means a lot to me. Working with city employees was just as enriching as working with all of our cross- sector partners.”

Juan Sebastian Vasquez Data & Engagement Strategist, Operations Innovation Team, City of Los Angeles

12 The Mayor’s Fund for Los Angeles sits between the public and private The Mayor’s Fund would like to thank those listed below for their sectors, helping to bring together sectors that have common goals. efforts to fundamentally change the government operations of When thinking about government operations, especially at the City- Los Angeles. Together we were able to implement real change that level, public dollars are often hard to find when new systems and impacts the lives of Angelenos. new ways of operating need to be implemented. That’s where the Mayor’s Fund steps in - where public dollars end and where private resources are needed to jumpstart a project. I’m proud the Mayor’s Deidre S. Lind Fund launched the L.A. Government Operations Innovation Model, President which is already bearing fruit in our city by lowering costs, increasing Mayor’s Fund for Los Angeles transparency, and providing meaningful oversight.

■■ Russell Goldsmith, City National Bank/L.A. Coalition for the ■■ Marc Stern, TWC Group

Economy & Jobs ■■ Geoffrey Wharton, Los Angeles Dodgers

■■ Michael Kelly, L.A. Coalition for the Economy & Jobs ■■ Ranjan Goswami, Delta

Acknowledgements ■■ Matt Szabo, City of Los Angeles ■■ Miguel Sangalang, City of Los Angeles

■■ Charles Hirschhorn, AXS TV ■■ Andrew Hauptman, Andell, Inc.

■■ Adam Bierman, Project Team ■■ Frank Baxter, Jefferies and Company, Inc.

■■ Renee Daigneault, Project Team ■■ David Bohnett, David Bohnett Foundation

■■ Cyrus Dorbayan, Project Team ■■ Thomas M. Priselac, Cedars-Sinai Health System

■■ Shmel Graham, Project Team ■■ Brandon Young, Manatt, Phelps & Phillips, LLP

■■ Shannon Hoppes, Project Team ■■ Pepperdine University

■■ David Parker, Project Team ■■ Columbia University

■■ Mark Anthony Thomas, Project Team ■■ University of California, Los Angeles

■■ Juan Vasquez, Project Team ■■ University of Southern California

■■ Rick Cole, City of Santa Monica ■■ Harvard Kennedy School

13 Los Angeles Government Operations Innovation Model WWW.MAYORSFUNDLA.ORG

14 L.A. Innovation Model