International Cities Town Centres & Communities Society
ICTC2011 Grand Chancellor Hotel, Hobart, Australia 25 – 28 October, 2011
Lismore - People with a city in mind? Isaac Smith Councillor/Lismore City Council/Australia (ph) +61 2 6621 6694 (fax) +61 2 6621 6654 isaac.smith@lismore.nsw.gov.au
ABSTRACT This is a case study on Lismore, a regional service centre in the Northern Rivers area of New South Wales. Like all regional service centres its CBD was developed on a much wider catchment and is facing the dual pressures of a declining urban centre and booming coastal develop. Council, partnering with commercial operators, acknowledged the need to stop doing “business as usual” and focus on returning the City of Lismore to its position of regional leadership in the hearts and minds of residents and visitors. Presented from a staff and councillor perspective, we will provide an insight into how place making and BID management has revitalised Lismore's CBD. This includes how a City Centre Manager role was established, the importance of creating a new powerful 'come to the heart' brand and the pivotal role of creating a raft of CBD activities. This new “Private/Public” partnership allowed us to focus on our acknowledged strengths which include local farming businesses, creative industries and service centre pursuits. Through these changes, Lismore is once again becoming the heart of the Northern Rivers. K E Y W O R D S: L i s m o r e , P l a c e m a k i n g , B I D M a n a g e m e n t , Revitalization, CBD
1. Introduction This paper explores the transition, vision and implementation process for specially rated district as it moves from a council committee structure through to a Business Improvement District (BID). It deals with specific examples of BID success in the Lismore case while exploring literature around the move towards public/private partnerships and the need to change in existing urban cores. Lismore City Council through the “Lismore - Come To The Heart” BID has made great inroads in the space where public process meets private need. Through a focus on what make the city and CBD unique, the BID has begun to reinvigorate a sense of city in the minds of locals and visitors.
2. Foundations 2.1 Getting Started - Acronym to acronym
It's clear from the number of Business Improvement District (BID) statues and pieces of legislation used around the world, that there is no one model that fits all. But it should be recognized that within each unique BID there is a common theme of improvement through cooperation. There is a need for those involved in BID management to form a managed partnership between local government and local business. While it is often not a present thought, greater success will come from a strong understanding of this emerging relationship. In our BID the guiding legislation is as basic and uncomplicated as would be possible. Under the New South Wales Local Government Act (1993), Council has the right to collect a rate (section 377). Council also has the right to delegate authority for its actions to an individual or group (section 355). Council then asked the Minister For Local Government for permission to collect a rate from business property owners in the urban area and asked for interested members of the business community to volunteer for the management committee. The latest change to this committee occurred in August 2009 when a report was presented to Council on the new BID manager and the role of the new board members. This board or management is clear part of the local government structure, but made up of individuals who must sometimes put aside business interests to achieve a common goal of revitalization. As a member of “Lismore - Come to the heart� (the brand for our BID), my role is to promote our city and specifically the CBD as a good place to do business. For owners, managers, shoppers and visitors we need to send the message that our city is worthy of attention. An easier way of saying that is, "...the BID manager must be looked at first and foremost as a change agent;" (Grossman, 2008 p.7). Being involved in BID management is seeking the responsibility to change things for the better. This perspective of change agent was not one that I started with when I first joined the group in 2008. At that time the BID, known as the SBRVL (Special Business Rate Variation Levy) panel, was a group of people arguing over a small amount of money without any clear goal or vision to guide them. Fortunately this large group was reduced by 2/3rds when the need to appoint a BID manager necessitated a focused management board. This new manager brought with them the knowledge, that I now take for granted, around placemaking and the role or private/public partnerships. "It is an inconvenient truth that virtually worldwide the love affair between the public and private sectors is heating up, eroding our traditional noesis of what is what and who is who, and merging, possibly mutating, possibly evolving, into something completely new." (Grossman, 2008 p.8)
These new ideas on the role of a BID in our community were big changes and as is often the case, change is not always easy to achieve. Forming a public/private partnership will always evoke change. There was initial resistance against the move
to appoint a BID manager, followed closely by resistance to a new business plan which contrasts the “new” with what was being “done”. So initially, compromise was the order of the day. While the money was collected by a public entity, the City Council, it was collected from the commercial property owners, which was seen by the Chamber of Commerce as their turf. But compromise is not cooperation or collaboration, so more change was needed. This fluctuation in "ownership" of the BID mirrors the discussion of private vs. public. "The balance and tensions between different modes shift as the agenda for action and the relationship between partners change." (Lowndes & Skelcher, 1998 p.320). In our BID there was clear direction at inception, due to the united goal of improving security and safety. Once improvement was achieved the BID lost focus and became prone to individual bias on the part of the management committee. This lack of direction led to termination of the committee and reestablishment of network governance, which is the fourth stage of private/public partnership as identified by Lowndes & Skelcher (1998). We then returned to stage one by identifying a common purpose for collaboration. In the first year of this new collaboration the recently appointed BID manager proposed a mix of what was being done, with some changes to the status quo of a predominantly private network model. While there was clearly a reluctance on behalf of the new management board to contribute so many resources to the older ideas, the manager believed that the new ideas had to get "some runs on the board" to prove the case. This proved a very wise move as the first year clearly showed that the old ideas, which represented private interests directing funds to private wants, were simply not able to produce the same results as the changing notions of public/ private partnerships. "It is not only the complexity of their legal statues and governing mechanisms that make BIDs interesting and important for public administration and policy; the ways in which they are set up and function also force us to rethink the traditional boundaries between the 'public' and the 'private'." (Morçöl, 2006 p.2)
What made the BID managers new ideas possible was the realization that effective change within a "decling urban core" (Morçöl, 2006 p.1), can only come with fundamental policy change at the local government level. Existing urban centres, with their mix or older business and smaller retailers, and public-right-of-ways, are not homogenous and cannot be treated like a shopping centre or controlled environment without the intervention of local legislation. BID’s, like government, unite disparate elements in our community. One good example of this shift in Lismore was the BID managers frustration with DA's (development applications) which were required to hold any event in the city. The BID manager suggested that Council apply for a Universal DA to cover all events and activities that they might require to revitalize and promote the CBD. This opportunity to use a shared DA was in stark contrast to the "individual "DA" process that had been in place before. This change was only possible due to the unique position held by a BID manager where "Public" thinking yields "private" results.
We became more aware of our growing success within the BID when the council proposed that we increase the amount of money collected from the Commercial Property owners. This proposal to increase the amount by $100,000 dollars was included in a public consultation submission along side a $500,000 increase in rates for road improvements and $200,000 in increased rates for environmental projects. During the consultation process it became clear that the there was not a lot of support from residents for the increases on roads and the environment, but there was overwhelming support for the increase in the business rate. "Normally tax-averse business people - corporate leaders, property owners and managers, and small retailers - are choosing to be assessed an extra mandatory charge in order to finance a Business Improvement Districts (BIDs)" (Levy, 2003 p.2)
Clearly the business owners in Lismore felt that the investment was worthwhile and would produce a result to benefit their businesses. This is still a private or individual benefit that clearly works for each business, but given the private/public nature of a BID, the result will have a greater social or community benefit to be played out on a larger scale. This is the acknowledgement that BID managers must embrace, the idea of empowering private motivations for the greater good. It does this by extending the reach of government into those private motivations, while surrendering some controls by bringing individuals into a trusted public role. "The chief aspect that differentiates BIDs from other community-based economic and community development efforts is that BIDs are special district forms of government. No other effort, be it a business association, economic development corporation, redevelopment authority, or civic association, is created to extend the capability of government, give private sector control to legitimate public sector processes, and extend the public trust to the business and investment community with the ability to selffinance through public assessment in quite the manner that BIDs enjoy." (Grossman, 2010 p.366)
While I have always seen my councillor role as being a bridge between the local businesses and council I was never acutely aware of the way in which this new public/private partnership was birthed. In the western world there has always been swings between community and the individual. But the space between the two, the space occupied by the BIDs, is now emerging as the prime space for change to occur. I believe BIDs are able to bridge the gap between the small business diversity of an existing downtown area and the suburban shopping centre. This, at its simplest, is an acknowledgement of "commercial cooperative technology" (Grossman, 2008 p.6), but has the potential to be so much more. If a BID, and by extension its ideas, are embraced by residents and businesses alike, a community will flourish on the back of business confidence and a new found sense of social identity. 2.2 Social Capital = Change
Capital, in its simplest form, can be measured as the wealth, in assets, of an organisation. In a more clearly defined economic sense it is the excess of a company’s assets over it’s liabilities. I believe this is a very fitting point to engage with the notion of Social Capital and BID management as it acknowledges the limitations inherent in a public/private partnership. Social Capital exists in this space between liabilities and assets. Being a part of any governmental tier is going to create barriers and processes that will be perceived by others in the community as a negative. These limitations can be offset however, by the good that is done in meeting district needs and wants. As in all situations this is as much perception based as any other measure, but the work of a BID manager will clearly provide the majority of social capital being accrued by the organisation. ...social capital is the resource available to actors as a function of their location in the structure of their social relations. (Adler, 2002 p.18) A BID managers ability to negotiate the waves between local government, small business, community organisations and prominent individuals will largely determine the amount of social capital that is held by a BID. This has been very true in the “Lismore - Come To THe Heart” example where changes in personality allowed a new manager to be perceived by the District to be more “located” than the other. A BID manager who can maintain a high level of social capital, is more able to have an influence on improving the District. This capital is spent and leveraged across the district in the daily activities and planning with groups and individuals. This benefit can also flow in the reverse direction by giving the local government and its processes more credibility amongst the actors involved. BIDs operate on the local level of governance, acting as a link between the public and private sectors and a broker of municipal services; as a result, they become a potential technology and knowledge transfer mechanism with the aim of improving both sectors. (Grossman, 2008) The ultimate goal of a BID, to improve the district, can not be achieved without improving both the public and private sides of the partnership. Any imbalance in this relationship will erode the partnership. This will clearly been seen in the level of social capital available to the BID manager throughout the networks, most importantly those in the media. A BID managers networks will correspond with the actions they are undertaking. And, the actions of a BID manager can loosely be separated into the categories of definition and revitalization (Grossman 2006). The experience with the “Lismore Come To The Heart” BID mirrors many others I have been able to study. The initial response to an issue such as safety or security (via definition) promoted the formation of the BID, but there is now an acknowledgement that economic development (via revitalization) is now the key driver.
Most recently, BIDs have launched explicit economic development and business enhancement initiatives. An implicit goal of all BIDs has been economic renewal. At the most basic levels, this effort has been directed toward retaining and attracting retail businesses. Through programs aimed at improving business management or enhancing business opportunities, retailing is improved. (Bradley, 1995 p.11) It is important to acknowledge the impact that a shift towards economic renewal will have on social capital. I believe a defined issue can provide fast measurable results, ie. security issue is improved by providing more security patrols, therefore it will also generate dynamic results in levels of social capital. Economic development issues and ideas on placemaking are often framed in periods closer to months or years, where a result of achievement may not be evident till the conclusion. In these circumstances there will be a delay in the social capital being ‘banked’ by a project. During this period it is important that communication and other operations provide the BID a certain level of social capital to avoid significant losses in confidence or momentum. Social capital, when accrued by the BID, can and should be expended by as social capital is closely aligned with fluctuating perceptions such as trust. In his book Trust: The social virtues and creation of prosperity, Fukuyama (1995) identifies that prosperity within a society is balanced within the framework of recognition in individuals and organisations. He also makes the point that social capital is geared towards the private side of the partnership. Social capital is like a ratchet that is more easily turned in one direction than another; it can be dissipated by the actions of governments much more readily than those governments can build it up again. (Fukuyama, 1995 p.362) This is a very important point for a BID manager to comprehend as a large amount of social capital could be quickly eroded through the actions of the government institution and processes in which it operates. A council, through an unrelated or fringe issue, could have a significant impact on the BID and its networks, limiting its ability to bring innovation and improvement to the district. I believe these linkages between major players in the BID network, particularly those most engaged in the private/public partnership, will provide the greatest challenges to managing a successful BID. Social capital involves so many intangibles that it is always difficult to quantify. But intangible or not, it is these perceptions (as an asset) that are actioned in BID networks and projects. Terms such as ‘trust’ and ‘love’ are often used in the discussion, as this represents the social capital BID managers are attempting to accrue. While these perceptions and terms may be seen as not businesslike, they are the glue that binds together the projects and activities of a successful Business Improvement District.
3. Building the city... again 3.1 Perception vs. Politics
One of the biggest issues facing any Managed Business District is the differing perceptions of “locals”, ”workers” and “tourists” and the conversations had with and between them. While it is argued that tourism escapes a modern definition (Pike, 2008), it is the interplay between the services and assets of a district and the actors within which determines the success of a district in promoting itself as a destination. All too frequently, citizens and organizations who live and operate in a community, and the external agencies that do business there, see the silhouette of a community rather than the whole picture. (Morse, 2004 p.75) A successful BID will move a communities focus from the problems of the district to the promise and potential shown in the best services and assets it has to offer. This ‘whole’ is lost in the ‘parts’, the silhouette's of daily life, with its limited experiences and clearly defined mindsets. “The sense of community is lost in the need to fix problems” (Grossman, 2006 p.23). A focus on today’s problem will rarely fulfill the potential of tomorrow. As BID managers find an increasing need to shift their focus from definition to revitalization, there is a corresponding shift where personal needs give way to community assets. Discovering and empowering those shared assets will be the measure of any successful district in finding its identity as a destination. This transition is being played out in my experience of the “Lismore-Come the the heart” BID. For more than two decades the City of Lismore has been overshadowed by the growth of Coastal zones. As the coastal towns within an hours drive of Lismore have grown, they are drawing more Services from the previous hub which was Lismore. This is the problem, often stated by local businesses and leaders, but without a focus on the solution. The solution, to use the old sport axiom, is to ‘play your own game’. What the BID has done is focus on the strengths of Lismore and attempted to control the conversation taking place between residents and by extension visitors. This immediately takes much of the focus off the problems. “The concern with an exclusive focus on needs is that a community often jumps immediately to problem solving rather than identifying its goals and strengths.” (Green & Haines, 2008 p.8). For more than a decade the city has tried to compete with growing regions by doing more of what was being done, fighting with problems, than by looking at the underlying assets and emphasizing strengths. While there will always be a need to craft a destinations safety and security by responding to problems that arise, this will never fulfill the prime directive of destination marketing. At it’s core any destination must provide people with a valued experience. It must ask them to be a part of something exciting so that their participation is important to building the conversation. In our example the “Lismore Come To The Heart” BID is saying that we have many advantages over the growing
coastal strip and we have a vision for something more than just a nice beachside landscape. This focus on the ‘whole’ of Lismore could be interpreted as moving towards a ‘Societal marketing orientation’, which is traditional in the sense that it is market driven, “...but operationalised in a way that also considers the well-being of a society and the environment.” (Pike, 2008 p.27). This very clearly aligns with the goals of a successful BID, in transition from needs to assets. The majority of destinations within a district are private; the businesses, attractions and gathering places, while the majority of places between are public; streets, parks and venues. This positions a well managed BID as the formative organisation with which to handle this public/private operation. Any BID which fails to grasp the need for partnering with public interests is prone to private manipulations and lapses in a larger vision, as noted by Traub (1996). These lapses are also a key reason why older modeled business bodies such as chambers of commerce struggle to meet modern expectations. I believe the key to societal marketing from a BID perspective is linking community aspirations directly to BID projects and a shared community vision. This relationship needs to focus on positive conversations that stem from acknowledged community assets. Year of observation and research... has found that found that successful communities are those that foster positive relationships with their residents. These communities have places where information is exchanged and citizens interact; they encourage residents to identify and work toward common goals; and they solicit resources and partners outside their boundaries. These communities are not isolated from their problems or their solutions. (Morse, 2004 p.79) This sharing of solutions, and not just problems, amounts to seeking community buy in to the BID’s vision. This commitment to shared community assets transforms the conversation between locals and visitors to one of promise, involvement and ownership. In the Lismore example this ownership is more difficult to engender as many years of slow growth in a long established centre can create a stifled business environment. But engaging the broader community is essential in spreading the word on community assets and supporting the BID’s vision. The responsibilities of destination brand management should not rest solely with the DMO [Destination Management Organisation]. One of the greatest marketing challenges faced by DMOs, certainly in the implementation of IMC, is stimulating a coordinated approach among all those stakeholders who have vested interest in, and will come into contact with, the target visitors. Ideally, what is required is an understanding by all stakeholders of what the brand identity is, what the brand image is, and what the brand positioning strategy is. The
more that stakeholders have an understanding of the rational behind the brand strategy, the more effectively they will be able to integrate their own marketing and customer interactions. (Pike, 2008 p.266) The perviously mentioned business apathy when combined with a silhouette of ‘local’ attitudes provides the “Lismore - Come To The Heart” BID with its greatest challenge. Locals, who make up the bulk of the workforce for businesses within the BID, do not look at Lismore through the prism of a visitor. While they see the best in destinations they use for holidays and events, their attitudes prevent them from seeing these same characteristics in their community. What will make Lismore ‘the destination’ succeed, is constant conversation between locals and visitors that takes on BID branding as the focus of customer interactions. If this conversation can be maintained, the community assets and services which tourists appreciate will not be taken for granted by locals. The simplest way to explain the need for community involvement in destination marketing is that “Brand is your strategy” (Polatta, 2011). Without a clear, understood, communicable brand it is impossible to make a destination accessible to your community and anyone else who enters the district. With a brand strategy the community becomes your greatest marketing tool. Lismore is still in the throws of finding its destiny as a district. It is located outside of many acknowledged regions in New South Wales. Outback NSW covers the western half of the state, with the land to the east (but on the western side of the range) now launched as Evo cities. You then have the Metropolitan area or Newcastle, Sydney and Wollongong bordered by coastal strips to the north and the south. Lismore is situated in a small triangle in the north of the state between the coastal strip and the Evocities to the west. But knowing what you are not, does not tell you what you are, so the key in Lismore was asking people what they liked about our city and region. The clear answer was the mix of services and cultures available in a rural location. Respondents to survey’s on living in Lismore appreciated our alternative cultures and creative industries and felt they should be accentuated. Business survey’s also show that creative industries will be one of the fastest growing employment sectors in the years to come. Lismore is also wanting to position itself as the gateway to Nimbin, the heart of alternative culture in Australia. The difficultly in marketing this shared vision of an alternative Lismore is often political. There are many who don’t personally associate with the vision, so they do not embrace it. These people may not be 100% on board with the vision, but it is the view of the community and need a clear commitment from these actors. This direction needs to be seen as non-political decision that sets a direction as acknowledged by the those who are a part of our districts branding conversation. While there will always be disagreements, there needs to be an acknowledgement of the potential assets as seen by others. Now the “Lismore - Come to the heart” brand is gaining some acceptance in the community it is being seen for the reasons it was developed. It represents our City as
the geographical, cultural and service heart of our region. The alternative culture as embodied in the sustainable living principles which drive this identity and gives the city an anchor from which to build the brand. This identity provides Lismore with a destination proposition that sets it apart from other places. The only thing holding this branding back is a reluctance by some to see this predominant perception of our destination. As a destination, Lismore is still finding its feet. It has a sense of what’s so good about the district, but still lacks a commitment to the vision as defined by the community. The “Come to the Heart” BID has taken significant steps to improve conversations around service, safety and value, but still lacks a bigger picture buy in where locals and visitors feel they have become a part of something exciting. Our BID needs to stop competing with surrounding districts and start believing more in the experiences and potential that residents see in our community. I believe our community cares enough to make this step and grow our community assets, to believe our city is important and know that others will see that value and understand what’s so good about Lismore. 3.2 Adding Process to vision
The public/private structure seen in the modern BID organisation is becoming more porous, but the BID manager is still faced with the challenge where “the mystery of that which is private and the sanctity of which is public is constantly changing.” (Grossman, 2009). This guarantee's that the BID managers role is that of a risk taker. The expectation being one where the BID manager has a good understand the complex district needs around integrity and ethics. Such risk-taking requires an infusion of ethics. Ethical orientations emphasize the importance and integrity of being wholesome and acting with integrity... Specifically, of concern are not only managers with profoundly unethical orientations, but also those with ethical orientations that are not well developed or which are selective in nature. (Berman & West, 1998 p.347) With such a fluid managerial environment, performance measurement is paramount to successful BID leadership. In our “Lismore - Come To The Heart” BID there is a feeling amongst the management committee that everyone involved, including the BID manager has a good grounding in the ethics of the district. And this understanding has worked well to support the successful implementation of our strategy, development and project planning. Other performance management conditions such as monitoring execution, performance and reporting results need a constantly improving process. It is vital that the “Lismore - Come To The Heart” BID improves its processes as “An organization's performance management processes are the principal mechanism for assessing the impact of change and tuning the business in order to survive and prosper” (Axson, 2007 p.23). The goal of any successful BID is to prosper, but this can only be done through a best practice assessment process for management.
The “Lismore - Come To The Heart” BID has done well in its first two years, due in part to the low precedent set by previous committee. Through bringing in a new group, with a better ethical grasp on the district needs, the committee has immediately moved in a positive direction. Through this ethical understanding the BID has thrived in the planning aspects of performance management. Strategic and tactical planning has been more closely linked with Council priorities, emphasizing the public/private partnership, and showing the district long term vision. One outcome of this planning focus has allowed for the development of a “brand” which will support and grow the BID for many years to come. The biggest measurement of success for the brand so far was seen when the Council Tourism management team relaunched our wider LGA tourism program with almost identical branding. This has been done in a way that supports or partners with the BID branding rather than diminishing it. Such a strong strategic focus has also allowed for tactical planning which is used to “define intermediate checkpoints on the journey, and estimates the resources required to complete the journey.” (Axson, 2007 p.25) Another management area which has been greatly improved is financial planning. Previously the committee that administered the special rate undertook what was known as the “lolly scramble”. It was known that the committee had money and that the money was used to fund events or projects that had a perception of worth in the community, but with no “agreed performance targets” (Axson, 2007 p.25) it was seen as aimless. With a clear BID business plan now developed, there is funding allocated with clear guidelines and linkages to outcomes such as placemaking and CBD revitalization. Although the ideas may be compelling and the logic incontrovertible, best practices exist only if they have been applied successfully. Given that best practices have to be proven to to work, they have a lower risk profile and deliver results that are much more certain than those resulting from innovation and experimentation. (Axson, 2007 p.28) Where the BID needs to be applying best practice performance management is in proving the successful application of projects actioned in the business plan. There needs to be a consistent an evolving approach to monitoring execution and performance of projects. Without this the BID is open to criticism on managerial standards and effectiveness. Without monitoring there is no “information to support decision making” (Axson, 2007 p25), which leaves management with no option but to fall back on vision and planning as the sole justification for projects. Responsible risk taking without project monitoring breaks one of the more important ethical standards on accountability (Berman & West, 1998 p348) Without appropriate monitoring processes there can be no accurate reporting of results. This leaves BID management once again relying on vision and planning when having a “conversation” on results with district businesses. This represents an over reliance on outputs rather than outcomes. The focus on outputs or efficiency, leaves the BID vulnerable to promising too much. For example a goal to revitalize the CBD will always deliver less than some people expect, and without best practice
management processes to monitor and report on the project, all results will be more reliant on hard to define social capital inferences. ...BIDs must be politic about expectations and even more practical about the promises it makes based on its inherent assets, political will, and competitive nature. (Grossman, 2009) Adopting an improved reporting process would give greater support to our BID vision and I believe it shifts the “conversation” to a more important focus on outcomes. While there needs to be a mix of outputs and outcomes, a lack of effectiveness in delivering outcomes gives less feedback to management. Less feedback will again leave the management open to extending projects that deliver poor outcomes or under resourcing projects that are delivering better results. Having a “promise to act” process attached to each BID project completes a cycle which links back into BID VIsion and Values. As risks are identified in a project the information and results are funneled back in the Values of the organisation which helps to provide better outputs. Better outputs employing a best practice performance management process will deliver better outcomes. “Applying best practices combines a number of powerful drivers of efficiency...” (Axson, 2007 p35). An efficient management process helps to identify the alternatives and scenario’s which are likely to deliver better results. Since [management] conditions, on which the classical theory rests, are so seldom satisfied in the real world, great interest attaches to the procedures that make less heroic assumptions about the “givens” and the knows; and there is considerable progress in devising lessthan-optimal decision procedures for situations where the optimum is unknown and practically undiscoverable. (Simon, 1965 p33) As noted at the beginning of this section the landscape of BID management is in constant flux due to the public/private dichotomy (Grossman, 2009). So a management condition that relies less upon the perceived “given’s” and more on effective process will deliver the innovation a BID strives to achieve. I believe any assumption that innovation is purely the result of good vision and planning underestimates the ability of management processes to refine and focus ideas. Appropriate monitoring and reporting can quickly unveil the truth about “the perception of givens” within a project and provide a direction which can allow kernels or truth flourish and be fully realized. The key for BID managers is to underpin the values of the organisation with the ethics of the district, then deliver on those ethics with measurable results and clear direction for the future of the organisation. Innovation flows from best practice only when it is applied across all areas of performance management 3. CONCLUSIONS
In measuring organizational trust and agility, using questionnaire’s provided by Spitzer (2007), I come up with a very positive result for the “Lismore - Come To The Heart” BID. This result reflects my perspectives on the current board and manager implementing the BID vision. While this is a reasonable measure for agility, as no one else is better placed to gauge this aspect, I believe that the measure of organizational trust needs to be broadened. To best measure if the “Lismore - Come To The Heart” BID is meeting its KPI’s, it is essential to see if BID perspectives around social capital and public entrepreneurship are in line with board and manager perspectives. If a sample of the business that pay the BID rate were asked to complete the trust questionnaire, this would give a good indication of public entrepreneurship. Surveying locals who use the BID would deliver a good indication of the level of social capital being held in the minds of residents. These two measures would provide management with vital relational feedback in developing the BIDs direction. A successful partnership is based around commitment, working to common objectives, trust, team building, shared risk, and conflict resolution through openness and problem solving. It is necessarily ‘relational’ rather than ‘transactional’ (Grimsey & Lewis, 2007 p.244) One of the key aspects of making the partnership relational is the element of trust. The communication of this trust is best done through measurement metrics than a more traditional public approach of a politicians “assurance”. It is also difficult to foster trust in a time of economic uncertainty. WIth the current financial crisis being played out across the globe, there is a corresponding downturn in retail spending that is impacting on local businesses. In this climate business owners can look towards the BID to apportion blame for their financial woes. This eats away at the levels of trust which require a positive outlook and an internal sense of civic duty. “Trust certainly seems to require optimism. It also requires attention and an internal sense of duty whereas distrust relies on external controls.” (Grossman, 2007 p11) One place this optimism is evident is within the management of the BID. The Lismore BID board is made up of one executive director from the local council, one elected councillor, a representative from the chamber of commerce and the manager of the largest shopping centre along with 5 other reps from local businesses. The board has a broad business representation, which allows me to state that a level of trust is mirrored anecdotally in the BID. Communities (of all kinds) thrive when a shared vision is achieved and well managed as the underlying means of addressing common concerns. The chief concern of a business district is the customers satisfaction with the value they receive. (Grossman, 2006 p.22) The ambitious schedule of events and placemaking projects being undertaken by the BID provide a high level of value to the local businesses, but this view is not shared by all those who pay the BID rate. The reason for this, I believe, is measurement. Without a system of measurement that is ongoing there is no way to say that support
for a shared vision has been altered by the actions of the BID. “Effective management is based on a foundation of effective measurement, and almost everything else is based on that.” (Spitzer, 2007 p13) What the BID needs now is measurement to promote understanding. “Measurement can provide a deeper understanding of virtually anything” (Spitzer, 2007 p19). As many of the BID goals involve concepts that are not core to “every day” business practice, such as place making, understanding is a vital tool to BID success. Without measurement the road to understanding is a difficult one. In the “Lismore - Come To The Heart” BID example, one on one conversations between the BID manager and a district business owner, over extended periods of time have proved to be effective in creating an understanding of place making as a key strategy in CBD revitalization. But this is simply not a workable solution to pursue, given the time available and the participants involved. So a system of measurement that clarifies the goals around place making and the accomplishments of the BID would go a long way to promoting an understanding of key objectives. Measurement also provides motivation. “Measurement tends to make things happen” (Spitzer, 2007 p20). All the businesses in the “Lismore - Come To The Heart” BID have their own business metrics to be concerned about. Meeting targets and deadlines can be a daily concern. If the BID does not provide measurements as milestones in BID progress the business will quickly disengage and retreat back into their business “in favor of what can be measured” (Spitzer, 2007 p20). When appropriate measurements are provided to the business owner they have a choice to act or not, with the full knowledge of what they may be missing out on. They will also have the knowledge that surrounding businesses are receiving these same measurements, adding further to the motivation. They can still decline to participate, but they will be doing so with the measured understanding of what is being done in the BID strategy, for their benefit. A good example we have seen in our BID is the local produce market that was established in the CBD. We know that the market is growing, servicing the needs of residents and encouraging locals to come into the city centre at a time, Thursday afternoon/night, that was a quiet period during the week. Some CBD businesses have started to capitalize on this changing metric and are finding ways to make it work for their business. Others are sitting back and waiting for the benefits to come to them. Proper measurement of the projects benefits and CBD cooperation is vital to show the benefits to other businesses. Rather than running projects hoping for increased participation, there will be social capital available to the BID through the measurement process, where business is motivated and seeks inclusion. This is the trust we are seeking. If we operate from a model of distrust we will engender distrust even if we perform on paper by the most efficient market standards. Our performance will be measured by our ability to control events. If we operate from a trust model, we will increase social capability and provide our society with the opportunity to discover and build upon identified community assets. (Grossman, 2007 p.12)
With the implementation of these changes in measurement across the BID, I believe there will be more innovation and a greater sense of civic duty that implores the BID actors to be involved. Vision must be supported by good process to draw in the businesses. Measurement changes in key areas will provide the data and vision that will firmly and uniquely position the BID as the instigator and motivator of urban revitalization in Lismore. In being a vibrant and successful example of a Public/Private Partnership, the BID has the opportunity to shape the city and CBD though innovative ideas that are measured from inception through implementation right down to results. Using measurement that is constant, relevant and critical can transform our BID from a new idea born of promise, into the leader that we as the managers so much want it to be. Signs have begun to emerge over the past 12 months that the people of Lismore, and those in the surrounding area, are once again thinking of Lismore as the regional capital, the heart of the region. This reestablishment of the city that was Lismore and the idea of the city as the “place to be” is the core vision that sustains the “Lismore Come To The Heart” BID. This vision provides the BID management with the motivation to continue in the role of change agent and innovator. Seeking, with the support of residents and visitors, a city that was, and hopefully will be again. ACKNOWLEDGEMENTS I would like to thank Brent McAlister (Executive Director - Sustainable Development) for his assistance with this paper, along with the current and former “Lismore -Come To The Heart” BID manager’s Katie O’Rourke and Stephen Nelson. REFERENCES Adler, P (2002) “Social capital: Prospects for a new concept”. Academy of Management Review 27(1) pp.17-40 Axson, D (2007) Best Practices in Planning and Performance Management, “Performance Management Defined”, John Wiley & Sons inc. Berman, E & West J (1998) “Responsible Risk-Taking”. Public Administration Review, 58(4), pp346-352 Bradley, R (1995) “Downtown renewal: The role of business improvement districts: More important than ever”. Public Management, Volume 77 pp. 9-13, Fukuyama, F (1995) Trust: The social virtues and the creation of prosperity, New York: Free Press Green, G. & Haines, A. (2008) Asset Building & Community Development, Sage Publications. Grimsey, D & Lewis, M. (2004) Public Private Partnerships: The worldwide revolution in infrastructure provision and project finance. Edward Elgar Publishing Ltd. Cheltenham, UK.
Grossman, S (2006) New Jersey Managed District Association Handbook Grossman, S (2007) Performance Anxiety in a democratic society, white paper. Rutgers University. Newark, NJ. Grossman, S (2008) “Business Improvement District Management: Public-Private Cooperation in Community Revitalization”. Public Performance & Management Review, December Grossman, S (2008) " An Overview of Public Entrepreneurship", Rutgers University, Newark, NJ Grossman, S (2009) The Management of Performance in Public-Private Partnerships: The Case of Business Improvement Districts. Rutgers University, Newark NJ Grossman, S (2010) “Reconceptualizing the Public Management and Performance of BIDs”, Public Performance & Management Review, Vol. 33, No. 3, March 2010, pp. 386-419 Levy, P (2003) in Houston, L.O., Jr. Business Improvement Districts; 2nd Ed.; Urban Land Institute and International Downtown Association: Washington, D. C. Lismore City Council (2009) 11 August Business Paper http://www.lismore.nsw.gov.au/ cp_themes/default/page.asp?p=DOC-FMX-01-84-66&c=167 (Accessed 07/05/11) Lowndes, V & Skelcher, C (1998) “The dynamics of multi-organizational partnerships: An analysis of changing modes of governance”. Public Administration. Volume 76 Summer, pp. 313-333 Morçöl, G. (2006) Business improvement districts: A new organizational form in metropolitan governance. International Journal of Public Administration, Volume 29, Numbers 1-3, pp. 1-4 Morse, S (2004) Smart Communities, Wiley & Sons, Inc. NSW Local Government Act (1993) Section 377 - http://www.austlii.edu.au/au/legis/nsw/ consol_act/lga1993182/s377.html (Accessed 07/05/11) NSW Local Government Act (1993) Section 355 - http://www.austlii.edu.au/au/legis/nsw/ consol_act/lga1993182/s355.html (Accessed 07/05/11) Pike, S. (2008). Destination Marketing. Burlington, MA: Butterworth-Heinemann Pollatta, D (2011) “A logo is not a brand”, Harvard Business Review http://blogs.hbr.org/ pallotta/2011/06/a-logo-is-not-a-brand.html (accessed 6-07-2011) Simon, H (1965) “Administrative Decision-Making” Public Administration Review, Vol. 25. pp31-37 Spitzer, D. (2007), Transforming Performance Measurement:Rethinking the way we measure and drive organizational success, American Management Association, AMACOM, New York, NY Traub, J. (1996) Can associations of businesses be true community-builders?, Responsive Community. Volume 6, pp. 29-38