Transforming local governments: An interconnected approach for addressing complex challenges

Aug. 8, 2025

By Manuel Riemer, professor, Community Psychology and Sustainability Science
Director, Viessmann Centre for Engagement and Research in Sustainability (VERiS)

Local governments worldwide are facing unprecedented challenges. From climate change and housing crises to economic instability and social inequality, cities must navigate what researchers call a "polycrisis" – interconnected, cascading challenges that threaten community well-being. Yet many local governments continue using outdated management approaches that were designed for simpler times.

To better understand how local governments can transform their management practices to be more adequate for current circumstances, my co-authors and I reviewed relevant literature and shared our experiences working with Canadian municipalities in our recent paper Systemic Management Practices – Enabling Local Governments to Adapt in Response to Complexity, published by the journal World.   

For decades, local governments have operated under the New Public Management paradigm, which treats cities like businesses focused on efficiency and customer service. While this approach had its merits, it's increasingly inadequate for addressing today's interconnected challenges. We demonstrate the needed shift in management practices by viewing cities as "service ecosystems"– complex networks of interconnected actors (residents, businesses, nonprofits, government agencies) who work together to create value and well-being.

This theoretical perspective reveals three key characteristics that should guide systematic management practices. 

1. Interconnected and nested systems require integrative practices 

Conventional management treats challenges in isolation, leading to fragmented policies. Systemic management practices encourage a holistic approach, leveraging systems thinking, cross-sector collaboration and transdisciplinary teams to design solutions that recognize interdependencies. 

2. Socially governed systems require collective practices 

Municipal governance is not just about one-directional service delivery. Systemic management moves beyond top-down decision-making to empower diverse stakeholders, engage in reflexive learning and embrace participatory governance. This shift fosters trust, inclusivity and collaborative problem-solving, ensuring that policies align with community needs. 

3. Emergent challenges require adaptive and proactive practices 

The unpredictable nature of today’s challenges – from natural disasters to tech disruptions – demands flexibility. Instead of static, linear plans, systemic management encourages an iterative, learning-based approach where municipalities continuously adapt policies in response to real-world feedback. Proactive scenario planning, experimentation and the acceptance of failure as part of the learning process are key enablers of resilient governance. 

What would a transformed management practice look like?  

Consider how these insights apply to ensuring sustainable freshwater consumption, a challenge facing cities worldwide.

• Integrative: Within a systemic management approach, the local government would analyze water sustainability at the watershed level, considering all users (other cities, agriculture, industry) and connections to biodiversity, climate change and social equity.
• Collective: They would facilitate ongoing dialogue between all watershed users to develop shared consumption targets and coordinate responses to changing conditions.
• Adaptive: The government would monitor early warning signals (precipitation patterns, ecosystem health) and adjust consumption goals proactively rather than reactively. When one approach fails, they would critically reflect on their failure with others and experiment with other approaches.

The Path Forward  

We conclude our paper with actionable strategies for city officials looking to transition toward systemic management, including building cross-sector collaboration and enabling participatory decision-making.

To support this transformation, my fellow researchers and I are using our conceptual work to guide our work with local governments, helping them transition to systemic management practices. In the next few months, we plan to publish a case study of this work with the City of Kitchener. 

My collaborators and co-authors include Randy Sa’d and Tim Posselt from the Flourishing Enterprise Institute (FEI), in collaboration with several members of the MARC Partnership (Municipalities Adapting in Response to Complexity), which is co-led by VERiS, REFOCUS, ICLEI Local Governments for Sustainability World Secretariat, and the FEI.