Brief but interesting look at the growing importance of resilience in English local authorities.

The article explores different strategies to dealing with external changes. The growing importance of risk management was interesting.

Although a different sector to my own, the concept of financial resilience is important and one that I will explore further for my own organisation.

Good. Given some insight.

Highlights are captured below.

Financial resilience approaches have gained increased momentum in the aftermath of the 2008 crisis
Financial resilience generally requires a combination of capacities and reactions, i.e. management of slack resources, income generation, learning how to see things coming, developing anticipatory capacity, organisational restructuring and development of new skills, ensuring continuity in leadership, adopting a holistic view and rethinking services
Two main approaches to financial resilience emerge: local self-sufficiency and internal financial management.

THE PERCEIVED SHOCKS
Prior to 2008, the main shocks identified by respondents related to:
• Specific policy issues (e.g. waste disposal due to increases in landfill tax)
• Problems with the management of specific budgets (e.g. Adult Services and Children’s Services)
• One-off events (e.g. uninsured losses arising from claims on the council)
• The requirement to achieve Gershon3 efficiency savings.

HOW LOCAL AUTHORITIES FACE AUSTERITY AND FINANCIAL CHALLENGES: CAPACITIES AND RESPONSES
1. Managing slack resources: financial flexibility
2. Income generation
3. Learning how to “see things coming”
4. Making an early start: anticipatory capacity
5. Organisational restructuring and developing new skills within the organisation
6. The role of political leadership and continuity
7. Adopting a holistic view
8. Re-thinking services

Conclusion :
• Consolidating the link between risk management, anticipatory capacities and reactions
• Strengthening financial self-sufficiency
• Ensuring a stronger integration of strategic, operational and financial management
• Improving accountability and decision making in partnerships, joining up and multi-agency working
• Supporting strategic decision making geared towards ensuring the government’s role in economic growth, as well as income generation.

Have more of an idea re local govt response to 2010 spending cuts and forwards from there.Resilience and forward capacity. Holistic view, multi agency joined up thinking (also re strategy, operational and financial management) though also strengthened self sufficiency and some tough adjustments re what services are still supported.Also future income generation, use slack resources and try to support eco growth.