Dale Iman
City Manager
Winchester, Virginia
dale.iman@ci.winchester.va.us

 

Throughout my career, I have supported the theory that big risks equal big rewards. While the role of the manager is a risky proposition in and of itself, it is more so in a politically charged arena.

In order to evaluate the risk-reward ratio of a proposal or, as some would say, to determine if the juice is worth the squeeze, I follow three guidelines:

Benefit to residents. Will the proposal or project create public value for residents?

Apolitical. Politics should not be allowed to be a deciding factor when evaluating risk. Be careful not to be led astray.

Collaboration and communication. Does the proposal provide opportunities to improve collaboration, citizen engagement, and/or methods of communication among stakeholders within the jurisdiction? Proposals that result in changing community dynamics in a positive fashion are often worthy of taking high risks.

Melinda Greenwood
City Administrator
Pleasant View, Utah
mgreenwood@pleasantview city.com

A risk can only be “smart” when it is taken with the greatest extent possible of factual knowledge surrounding the risk. As a situation merits, a thorough analysis of potential benefits and consequences is well worth the time spent generating such a list. Making risky decisions isn’t an easy thing for anyone, and it’s even less comfortable when involving public monies.

What we as local government managers should want for ourselves, staff, elected officials, and our communities, is the ability to make well-informed decisions. When hindsight comes into play, which it often does, if a decision was made lacking pertinent information, the compromise could be lost trust, perceived lack of competency, or worse.

Some risks are worth the trade-off, and some are not. But if you don’t make a decision or take a risk based on valid data, I don’t think it’s a “smart” risk, even if the decision turns out to be a favorable one.

Chris Hillman, ICMA-CM
City Manager
Surprise, Arizona
Chris.Hillman@surpriseaz.gov

It is not a risk-averse business. There is more pressure than ever on the public sector to be innovative and to act, meaning more risk than ever. Elected officials are aware of this and need to feel confident that risks are minimized in decision making.

We accomplish this through informative and interactive discussions, by keeping the public well engaged, and then merging these pieces with financial realities. This develops rational choices that council knows are supported by data and public input. 

Council also needs to be confident that staff can follow through and deliver. All these components give elected officials the confidence needed to tackle the community’s most difficult and risky challenges.

Brenda Eivens
City Manager
Cedar Park, Texas
Brenda.Eivens@cedarpark texas.gov

As a manager, I have a firm understanding of the goals and expectations of the elected officials and their risk tolerance in order to provide a healthy environment that encourages staff to use creativity and innovation to advance community goals.

Sometimes that requires taking a risk, but making that risk “smart” should include thoughtful analysis and clear communication of the impacts of success, as well as the impacts of failure. Train staff to vet not just the end result, but also the risks and rewards of the steps along the way.

Also encourage them to identify unintended consequences of projects or decisions to better understand the level of risk associated, but acknowledge that the unexpected may still arise. Support staff in keeping people—elected officials, stakeholders, residents—informed along the way to reduce the surprise factor that can often elevate the perception of risk.