Leadership Conference Supported by Architecture + Design Scotland and the Academy of Urbanism
3: Competitiveness, planning and leadership
Learning from the City Gardens Project: Competitiveness, planning and leadership ‘Delivering Better Places’ was launched by the Scottish Centre for Regeneration, A+DS and RICS in association with the University of Glasgow. The purpose of the research was to look at the process that successful places across the UK and Europe used to deliver on the objectives of visions, municipal policies and political desires. In part, the research was an examination of motivations: why progress a ‘place’ framework for development of complex sites or easy to develop sites when there were faster, cheaper and less complex alternatives in development terms? The desire to drive forward the form of a part of the city in a particular way must relate to some specific set of motivations held by a range of actors. The consolidated Scottish Planning Policy [SPP] suggests that a key objective of the planning system is ‘the creation of places where people want to be’. Unpacking this assertion is important. First, for the statement to be a driver of change, it must be underpinned by a robust understanding of the motivations of people to locate in one place over another. This is about personal options, quality of life decisions, opportunity and cost. Second, related to the issue of motivation is the issue of purpose. What is the purpose of the place that people choose to locate in? What a place does to support its communities, as a place in itself or as a place in relation to other places is important. It informs quality of life, quality of service, quality of environment. This is about the leadership and management of places, by a range of actors and agencies, with the leadership role in particular handled in a number of ways. In a constantly shifting social, economic and cultural landscape, informed by globalisation and agendas like climate change, the role of leadership to achieve better place outcomes is taking on greater significance. This significance relates both to listening to citizens and understanding their needs and motivations, and providing focus for the organisations who are charged to manage change. Just like the idea of ‘place’ being a constant in a world of flux, the idea of leadership provides stability and clarity to decision making at all scales, from the citizen to the investor. Gibney and Mabey suggest that ‘effective leadership is one of the factors that explains how and why some localities are able to adapt to and exploit the opportunities afforded by the complex and rapidly changing social and economic circumstances of the modern world-and may also partly explain why some places are better than others to minimise the disruption that change brings’ [Gibney and Mabey, 2010, p379]. In terms of outcomes, Gibney and Mabey suggest that ‘urban and regional policy has experienced a fundamental change in emphasis over the last two decades and with a number of critical implications for leadership. The policy focus of the 1970s and 1980s on infrastructure and inward investment has largely given way to ‘softer’ measures to support entrepreneurship and firm foundation, collaborative networking and innovation, knowledge and learning, and institution building’. This is generating the need for more complex forms of working, visioning and collaborating to make best use of resources. This focus on collaboration and interdisciplinary working places demands on the idea of ‘leadership’. Typically, the aim of contemporary urban policy is both economic growth and social cohesion. To meet the climate change and sustainability agendas, it is increasingly important that these agendas are delivered within the context of ‘environmental limits’. The vehicle to achieve these objectives is often framed in terms of ‘competitive place’.
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These places often seek to marry two structuring agendas: urban competitiveness, which focuses largely on economics, institutional frameworks and knowledge, and urban renaissance which focuses largely on the physical aspects of place. So what does this mean for the shaping of places and the leadership role of the place shaping process? Urban renaissance Urban renaissance is the process of transformation in cities through the creation and management of a more people oriented, sustainable urban form. In the UK, this has been underpinned by ‘Towards an Urban Renaissance’, led by Lord Richard Rogers. It has seen significant investment in the physical fabric and public realm of many cities across the country. ‘Delivering Better Places’ identifies that quality places have an effective place promoter – often a dynamic individual working in a supportive organisational context. For example, in Vauban it was Wulf Daseking, the Chief Planner in Freiburg City Council, who has championed sustainability for the last 20 years. The primary task of the place promoter is to nurture a compelling vision and foster a place-making culture. This means encouraging organisations to act holistically and work in a joined-up fashion with others to achieve a quality place rather than think and act in silos to suit their own professional interests. The European examples all had stronger place-making cultures than those in the UK and were characterised by a willingness to invest in the front end vision to achieve quality places. The research suggests that the more the place promoter can manage and integrate the following five key tasks, then the greater the chance of creating better places: • • • • •
Control the spatial development framework Achieve fast and co-ordinated regulatory approvals Exercise ownership power Attract funding for advance infrastructure provision Secure design quality through procurement strategies
Taken together, these actions are as much about making markets as making places, since over time successful places become self-sustaining and attractive in market terms. IJburg in Amsterdam set out to create a completely new neighbourhood of 45,000 people and was a meticulously planned project with physical and social infrastructure developed in advance of building development. Hammarby in Stockholm demonstrates how a wholesale commitment to design excellence can produce a very successful place and the benefits of early installation of public transport infrastructure. In terms of both leadership and management, in terms of the process elements of delivering better places, one issue appeared to be consistent across the case studies: the place leader must take overall responsibility for both generating and delivering the masterplan. This suggests that the place leader should not delegate delivery to another party as they may deal with implementation difficulties in ways which compromise what was originally intended. This also suggests that to achieve real urban renaissance there is a need for rethinking public sector commitment to and investment in place quality. In this context, better connections between “Place” interventions such as those described above and “People” interventions, may produce better and more sustainable outcomes for places in Scotland whether they are in growth, transformation or regeneration contexts.
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Urban competitiveness When policymakers start talking of cities’ competitiveness, be sceptical. If they discuss a city’s competitors, be wary. These are warnings of shaky thinking ahead. And this is not just about semantics. The language used to analyse cities’ economies matters – poor communication means low quality analysis and ineffective, perhaps even counterproductive policies. Urban economies are fundamentally interdependent. The idea that cities are competing for a fixed pot of capital that could locate anywhere is a long way from reality. Despite this, ‘competitiveness’ is now a commonplace term in urban policy circles. It is rarely questioned, partly because it is an easy way to talk about complex, difficult realities. The misuse of the word is a handy prop for policymakers, commentators and the business community. This has a detrimental impact on urban policy. The competitiveness rhetoric leads to a threat, when it should be seen as an opportunity. And it results in an undue level of attention being given to policies designed to attract investment, employment and skilled labour from elsewhere, when more attention should be focused on nurturing investment, employment growth and skill development locally. This will also attract firms that do have location decisions to make. If we want better cities, we need to learn how to talk about them. Cities perform. But they do not compete. The COMPLETE study led by Professor Michael Parkinson, Director of the European Institute of Urban Affairs, looked at the issue of ‘competitiveness’ in a European context. The Institute distinguishes between ‘competitiveness’ and ‘competition’. For them, ‘competitivenes… has two characteristics. It is the ability to attract and maintain firms with stable or rising market shares and the distribution of that wealth and creation of higher standards of living for all citizens. So it is about the distribution as well as the creation of wealth’. ‘Competition’ is a zero sum game where there are winners and losers. A key concern of the COMPLETE report is the need to tackle effects of economic restructuring and the growth of the so-called “Porsche-Hamburger economy” which creates great economic and social inequalities within cities. In this context, ‘competitiveness’ needs to take a whole place view of human and physical capital, growth and social cohesion. The COMPLETE research looks at many aspects of what makes cities and places work in an increasingly competitive global context. In this context, the research is framed around a number of important leadership and place management factors including: • The role of leadership and partnership in both public and private sectors, crucial for understanding and capturing globalising trends and the implications for shared economic governance arrangements • The role of the public sector in determining strategic direction and organising consensus with key partners in order to increase levels of investment • The role of national government in facilitating the management of the potential of cities at different levels and empowering cities to find their own place in a competitive globalising world • The role of creative industries in economic competitiveness and place making in cities and city regions.
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The report makes an important distinction between urban competitiveness and urban renaissance: they are not the same thing though there are synergies. They also place different demands on leadership and management. The Urban Renaissance agenda has been successful in guiding the physical restructuring of cities and regions with prestige projects, supported by an enormous amount of capital investment. However, this investment in itself does not necessarily lead to enhanced competitiveness, particularly in economic terms. Competitiveness, according to the COMPLETE report has six general characteristics: • Innovation in processes and products - knowledge based industries are the key to innovation and the development of world-class standards of living. The European Commission has estimated that over 40% of the variation in per capita regional income can be explained by differences in innovative performance. Differences in the governance of local innovation systems can make a difference to the economic performance of city regions. • Economic diversity - the cities which are most successful in responding to economic change are those which are least dependent on a single sector, whether old fashioned coal, steel, oil, or new-fashioned financial service. Munich is the clearest example of this, with the ‘Munichmix’ constantly cited as the key to its success. It has strength in global and local firms, large and small, manufacturing as well as services, the old as well as the new economy. • Skilled people - a skilled workforce is a critical feature of competitive cities. Modern economies increasingly depend upon knowledge intensive sectors, even within manufacturing. This was rated as the most significant single factor by the private sector. Comparative data on cities underlined the relationship of skilled workers to the innovation and GDP levels of the most competitive cities. • Connectivity - the most successful cities have the physical and electronic infrastructure to move goods, services and people quickly and efficiently. External connections are important since exporting remains critical to success. So airports are critical. But connectivity is not simply physical. There is a cultural dimension to it as well. A significant feature of our successful continental cities is the importance they attach to internationalisation and having city foreign policies, networking to raise profile, gain new allies, expand market share, and influence decision-makers. • Place quality - it is crucial to attracting and retaining a potentially mobile skilled workforce. One of the constant threads of interviews with public and private decision- makers was the significance of attracting and retaining skilled workers to their cities. In their calculations, the quality of life for themselves and their families is an increasingly important factor. Cities with the assets of good environment, distinctive architectures, cultural facilities, diverse housing stock and access to natural amenities are attempting to preserve and improve them. • Strategic capacity - this is the decision making, political processes and leadership framework of a city or place. Systems, institutions and organisations do shape competitiveness. But processes and politics matter equally. Economic competitiveness strategies have to be fashioned and implemented. They do not just emerge. And they take a long time to develop and to implement. Although they now become virtual clichés, it is still true that all of our competitive cities emphasise the notions of vision, leadership, partnership and politics in shaping long-term development.
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This characterisation of the conditions necessary for a competitive place, a city or region is important in that it emphasises the need to consider together, and plan for both the physical and non physical aspects of place. Vision, leadership and stewardship sit at the heart of this process, as does the process of building support coalitions between the actors in any place. Central to all this are the ideas of credibility and influence. This must be informed by trust in the individuals and processes shaping the future path for a place. Leadership and trust Successful cities like Munich are always emphasising the role of luck in their success. But it is the way in which a city shapes its luck which really matters. This is one of the key functions of leadership. However, there is a need to draw a distinction between place-making as a set of processes that respond to change on the one hand and shape change on the other, particularly by the public sector. The Demos provocation paper on ‘Agile Government’ uses this distinction to frame what this might mean for leadership. The paper suggests that ‘agile governments are likely to engage in shaping activity over the long term, while seeking to become responsive to changing needs in the short-term’. Agility is a confident, pro active and informed process, which is both accountable and flexible. This is linked to three themes. Firstly, working effectively in a world of constant, and sometimes rapid change. Secondly, dealing with complex problems in an uncertain environment. Thirdly, handling crises, be they natural or human induced. Critically, this idea of agility develops a distinction between the handling of change between ‘leadership’ and ‘management’. Kotter defines these differences as follows: Leadership complements management; it doesn’t replace it” (John Kotter, 1990, p. 103) Leadership is about: Coping with change Articulating long-term vision & direction Communicating with people, across & outwith organisation Motivating & inspiring, involving people & satisfying needs for recognition, self-esteem, ability to live up to ideals
Management is about: Coping with complexity by instilling order & consistency Planning & budgeting to achieve immediate goals & targets Organising & staffing, creating efficient hierarchies & structures Controlling & problem solving, containing risks of failure
These characteristics appear to sit as necessary to the idea of competitiveness set out by the COMPLETE study. The response to the Demos provocation by Dr. Geoff Gallop suggests that the ‘shaping agenda is a tougher one as it shifts the policy emphasis to the demand management side of the public policy equation and the responsibility side of the rights and responsibility mix… Without doubt the challenge of climate change will also take us into the province that deals with shaping activity and behaviour’. This is about preventative action, preventative and proactive investment. Dr. Geoff Gallop suggests that, to be successful, it will require a re-orientation of government activity, a re-ordering of government budgets and the development of partnerships with individuals and communities. The politician will be crucial not just in agreeing to such a shift in emphasis but in sanctioning the use of different approaches in pursuit of these ends.
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Building trust is crucial, between politicians and professionals, and between decision makers and citizens. It is also essential to providing room for experimentation. The implication is that involving people in the planning and delivery process is not just “good politics� but it is crucial if a long-term perspective is to have any chance of success. The sort of agility we are talking about, then, needs to be more than the capacity to respond rapidly and effectively to the latest media crisis. It is about putting in place the leadership capabilities at all levels of the public sector, and the ability to capture learning as a resource for all future leaders.
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References Academy of Urbanism 10x10x10 series, Reading Provocation: http://www.academyofurbanism.org.uk/projects/10x/provocation_reading.pdf Allen, John, Massey, Doreen and Pryke, Michael. Unsettling Cities: Movement/Settlement (Understanding Cities), Routledge, London and Open University, Milton Keynes, 1999 Adams, David, Tiesdell, Steve, Weeks, George. Delivering Better Places, A+DS, RICS, Scottish Government, 2010 http://www.scotland.gov.uk/Resource/Doc/336587/0110158.pdf Bartlett, Jamie. Towards Agile Government, Demos, London, 2008 www.demos.co.uk/publications/towardsagilegovernment Beundeman, Joost. [What] form follows [which] finance: provocation paper.Rsearch 00. 2010. http://architecture00.files.wordpress.com/2010/09/00_whatformfollowswhichfinance.pdf Chisolm, Sharon [ed]. ‘Investing in Better Places: International Perspectives’ , The Smith Institute, 2010. http://www.smith-institute.org.uk/file/Investing%20in%20Better%20Places.pdf Collinge, Colin and Gibney, John. Connecting place, policy and leadership, Policy Studies, V ol 31, Number 4, July 2010, pp 379-392 Finance and Philantropy: the acceptable face of capitalism http://www.independent.co.uk/news/business/analysis-and-features/finance-and-philanthropy-theacceptable-face-of-capitalism-415097.html Gallop, Geoff. Agile Government. University of Sydney, 2008 www.demos.co.uk/files/File/AgileGovernment_Geoff_Gallop.pdf Glancy, Jonathan.The architecture of recession.http://www.guardian.co.uk/artanddesign/2009/ mar/06/architecture-rogers-foster-recession Lang, Robert E, LeFurgy,Jennifer and Hornburg, Steven.From Wall Street to Your Street: New Solutions for Smart Growth Finance , Funders Network for Smart Growth and Liveable Communities and Metropolitan Institute at Virginia West, 2005 http://www.fundersnetwork.org/files/learn/From_Wall_Street.pdf
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Lee, Neil. Distinctiveness and Cities: Beyond ‘Find and Replace’ Economic Development?, The Work Foundation, October 2007 http://www.theworkfoundation.com/research/publications/publicationdetail.aspx?oItemId=50 Markusen, Anne (2004) Targeting occupations in regional and community economic development, Journal of the American Planning Association, Vol 70 No 3 Summer 2004, pp253-268 Markusen, Ann (2006) The artistic dividend: urban artistic specialisation and economic development implications, Urban Studies, Vol 43 No 10 Sep 2006, pp1661-1686 Parkinson, Michael et al. Competitive European Cities: Where do the Core Cities Stand? ODPM, London, 2004. Parkinson, Michael et al. The COMPETE Network: Final Report Messages for Competitive European Cities http://www.ljmu.ac.uk/EIUA/EIUA_Docs/COMPETE_Final_Report.pdf Centre for Cities, 2007 http://www.centreforcities.org/assets/files/pdfs/urban_myth_discussion_paper_5.pdf Scottish Planning Policy Gibney and Mabey Urban Renaissance Agility Kotter, 1990
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Notes
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