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Agenda Item No

The Vale of Glamorgan Council

Cabinet Meeting 26th January 2015

Report of the Leader

Reshaping Services - A New Change Programme for the Council

Purpose of the Report

1.1 To provide Cabinet with an update on the development of the Reshaping Services Programme.

 

1.2 To seek approval to undertake detailed service reviews of those services identified for tranches one and two of the Reshaping Services Programme.

Recommendations

1. That Cabinet consider and approve the programme plan, governance arrangements and service reviews proposed for tranches one and two of the Reshaping Services programme as outlined in this report as a basis for consideration by Scrutiny Committee (Corporate Resources).

 

2. That Cabinet refers this report to Scrutiny Committee (Corporate Resources).

 

3. That Cabinet refers this report to Community Liaison Committee, Voluntary Sector Joint Liaison Committee and the Local Service Board.

 

4. That the detailed service review work is undertaken as outlined in this report and reported back to Cabinet for approval prior to implementation.

 

5. That delegated authority is given to the Managing Director, in consultation with the Leader, to procure external services as required to support the development and delivery of the Reshaping Services programme as outlined in this report.

 

6. That further progress reports are brought to Cabinet and Scrutiny Committee in due course to provide updates on the progress of the Reshaping Services programme.

Reasons for the Recommendations

1. To enable Cabinet to consider the proposed approach to delivering the Reshaping Services programme and for work to commence on developing business cases for services to be reviewed following consideration by Scrutiny Committee (Corporate Resources).

 

2. To ensure any comments are referred back to Cabinet to inform a final decision on the implementation of the Reshaping Services programme as outlined in this report.

 

3. To refer the report to the Community Liaison Committee, Voluntary Sector Joint Liaison Committee and Local Service Board.

 

4. To enable detailed service reviews to be undertaken and documented in accordance with the Council’s project management methodology and ensure Cabinet approve implementation.

 

5. To ensure appropriate resources are available to undertake the work required.

 

6. To ensure Cabinet and Scrutiny Committee are kept fully informed of the progress being made on the programme.

1 Background

1.1 In August 2014, Cabinet agreed in principle to instituting a Reshaping Services strategy and change programme. The programme is the Council's proactive response to central government's austerity drive that has created a period of unprecedented financial pressure in the public sector. The Council's budget has been under pressure for a number of years with £28.8 million in savings identified between 2010/11 and 2014/15. Further substantial savings are necessary in 2015/16, 2016/17 and 2017/18. The latest projections now estimate that this will equate to a reduction of over £7 million in 2015/16 and approximately £24.6 million in total over the next three years. Failure to deliver the required level of savings will not be an option for the Council. According to many analysts the period of austerity is likely to continue for councils and the public sector.

 

1.2 The scale of the challenges mean that a "business as usual" approach, however well managed will not be enough. A strategy that consists solely of incremental cuts to budgets will simply lead to a steady decline in the quality and availability of public services, dissatisfaction among those who use the service and poor staff morale.

 

1.3 The challenge is therefore to consider alternative delivery models for services across the Council. This is essential to mitigate the impact of cuts and assist in continuing to provide priority services.

 

1.4 The Council's traditionally low funding base (20th out of 22 local authorities in terms of funding per head of the population) means the authority is well-versed in working together to find savings and has a long-established track record of achievement in this respect.

 

1.5 Cabinet approved the Reshaping Services strategy on the 3rd November 2014. The Strategy was developed following a programme of consultation and engagement with key stakeholder groups, including briefing sessions for members and officers.

 

1.6 The Reshaping Services strategy provides a framework for the Council to work within for the next three to five years. The implementation of the strategy will be consistent with the Council's project management toolkit, including consideration of sustainability, equality and legislative requirements.

2 Relevant Issues and Options

2.1 The aim of the strategy is 'to reshape the Council to enable it to meet the future needs of citizens of the Vale of Glamorgan within the context of unprecedented financial challenges.' The objectives are:

  • To identify alternative ways of delivering services which provide better outcomes for citizens and/or more efficient means of delivery.
  • To meet the future financial challenges while mitigating the impact of cuts on service users.
  • To develop the Council and its partners to ensure they are able to meet future challenges.

2.2 The strategy has been drawn up as a result of an urgent need to address a significant reduction in budgets within a context of increasing expectations from the public and Government. The development and implementation of the strategy coincides with Welsh Government's proposals for local authority mergers. The Council has submitted an expression of interest for a voluntary merger with Bridgend Council and is currently awaiting a decision from Welsh Government with regards to the proposal. A decision from Welsh Government had originally been expected on the 5th January but this has now been deferred.

 

2.3 The Reshaping Services strategy is being implemented via a new corporate change programme for the Council. The change programme will undertake on-going reviews of Council services via a “challenge process” and be supported by organisational development and consultation/communication activities. Each service area across the Council will be subject to challenge on a regular basis throughout the duration of the programme.

 

2.4 Stage one of the challenge process is overseen by the challenge group which comprises the Leader, Deputy Leader and portfolio holder of the service area. The challenge group is supported by the Managing Director, Head of Finance, Head of Human Resources, Head of Performance & Development, the relevant Service Director and Executive Director of the Vale Council for Voluntary Services.

 

2.5 The challenge process is summarised below.

Stage One

  • Service Area Baseline Assessments completed for all service areas.
  • Challenge group sessions.
  • Scrutiny and engagement on identified opportunities.
  • Initial proposals to Cabinet and Scrutiny Committees.

Stage Two

  • In-depth assessment of opportunities in tranches of projects.
  • Approval and scrutiny of business cases.

Stage Three

  • Implementation, monitoring and review.

2.6 The challenge group will meet to review all Council services and identify proposals for those services which should progress to stage two of the process. Cabinet approval will subsequently be sought for both the development of the detailed business cases at stage two and for those projects which are proposed to move to stage three (implementation). The challenge group met during September – November 2014 and it is intended that the challenge process will be repeated in September – November 2015.

 

2.7 The Programme Board will manage the overall programme in all its aspects. Members of the Board will be the Leader, Corporate Management Team, the Head of Human Resources and the Executive Director of the Vale Council for Voluntary Services. The sponsor of the programme is the Managing Director. Appendix A illustrates the proposed governance arrangements for the Reshaping Services programme and projects.

 

2.8 The development, co-ordination and delivery of the programme will be undertaken by a multidisciplinary programme team comprising officers from service directorates and corporate support services. External advice and resource will be sought as appropriate and this may include input from the third (not for profit) sector as well as specialist advice.

 

2.9 In line with the Council’s project management methodology, project management arrangements will be put in place for each individual project identified under the Reshaping Services programme. As such, a project team (and if appropriate project board) will be established for each project. The team will be led by a project sponsor (at Service Director or Corporate Head of Service level) who will be accountable for the delivery of each project. The project team will comprise the project sponsor, a project manager (as required to co-ordinate project activity), staff from both the Reshaping Services programme team and service directorates to undertake project activity supported by external/specialist resources as required.

 

2.10 The Council’s Corporate Management Team (CMT) will be responsible for the operational delivery of the Reshaping Services programme. Service Directors and Heads of Service should use their expertise to challenge, review and identify alternative means of achieving objectives. Their role is to champion change and not to instinctively defend the status quo

 

2.11 During the course of the Programme update reports will be made to various stakeholders, including the Local Service Board, Community Joint Liaison Committee and Voluntary Sector Joint Liaison Committee.

3 Stage One: The Challenge Process

3.1 Service Area Baseline Assessment and Cost Centre Analysis documents were completed by Service Directors for each service area (circa 70 areas were identified across the Authority). The documents highlighted the current performance, cost, risks, trends and opportunities as identified by Council service areas themselves. The Cost Centre Analysis documents include the existing savings targets which are contained in the initial budget proposals. These documents have been summarised into the following appendices:

.

3.2 The Service Area Baseline Assessment documents and Cost Centre Analysis documents were presented to the challenge group by the relevant Service Director. This information, in addition to the group’s discussion and experience, was used to inform the development of the proposals outlined in this report as to how the programme should proceed.

 

3.3 The Reshaping Services Strategy identifies that there is no single solution to service delivery that would be applicable to each and every function of the Council. Whilst alternative delivery models need examination, other means of achieving savings are still applicable and will play their role in meeting the challenges ahead. The Council recognises that to enact the strategy will require it to work with others, including the third (not for profit) sector. The importance of this is reflected in the composition of the Programme Board and the communications plan which identifies the programme’s stakeholders.

 

3.4 As a result, two workstreams have been developed to progress opportunities: a corporate projects workstream and a service specific projects workstream as described below. It is anticipated that the third (not for profit) sector will be involved across all corporate and service specific projects.

4 Corporate Workstream Projects

4.1 The challenge group identified a series of opportunities that would benefit from a corporate-wide response and these will be progressed as corporate workstream projects as follows.

 

Town and Community Councils

4.2 The challenge sessions, in addition to consultation undertaken with Town and Community Councils and the voluntary sector, identified that there is potential for the Vale of Glamorgan Council to work more closely with Town and Community Councils. The Council recognises that Town and Community Councils have an important role in representing highly local communities and could play an important role in informing the development of the Reshaping Services agenda with regards concepts such as demand management. The Town and Community Councils could assist with communication and engagement activities, for example raising awareness of changes being made to public services. In addition, the initial work indicates that potential exists for these bodies to provide some services directly. For example, specific service opportunities were identified within transportation (school crossing patrols), leisure and tourism (play), libraries, public conveniences and allotments.

 

4.3 It is recognised that there is much preparatory work required to investigate these possibilities and to develop the already positive relationships further with the Town and Community Councils. The process of strengthening relationships would benefit from the inclusion of the third (not for profit) sector who have an important role to play in supporting this work. It is therefore proposed that a corporate project will focus on developing the opportunities that exist in working more closely with Town and Community Councils. It is proposed that the Head of Performance and Development be the Project Sponsor. This project will involve working closely with the Town and Community Councils themselves and the voluntary sector to progress opportunities as well as to build capacity and capability within all organisations to support new ways of working. Initially the work will focus on the development of relationships and in gaining a greater understanding about the mechanisms (such as Community Asset Transfers) involved in this area. The corporate project will then work to develop specific proposals, for which savings targets will be established. It is also envisaged that the work undertaken will inform the proposals for current and future service reviews.

 

Demand Management

4.4 The Reshaping Services strategy outlines how better demand management will be a key response to meeting the Council’s financial challenges. The main approaches to demand management could be categorised as follows:

  • Changing expectations of what the Council should provide.
  • Using other providers such as the third (not for profit) sector to meet or mitigate demand.
  • Intervening early to improve outcomes and so reduce long-term dependency.

4.5 The first step to managing demand is to gain an understanding of what drives demand, which includes examining people’s expectations and choices, systems and processes and individual behaviour. Measures to reduce demand can then be planned and implemented. As this theme cuts across the work of all directorates and is a relatively new concept to the Council, it is proposed that a corporate workstream project be established to progress further research in this area and develop a corporate approach to demand management that can be used across all service areas. It is proposed that the Head of Performance and Development be the Project Sponsor.

 

4.6 This project will initially undertake detailed research regarding the possible approaches to demand management and to gain an understanding of its application in the public sector nationally and internationally. The corporate project will then work to develop specific proposals, for which savings targets will be established. It is also envisaged that the work undertaken will inform the proposals for current and future service reviews.

 

Effectiveness of Spend

4.7 Delivering value for money is a key responsibility of the Council. Value for money comprises three inextricably linked elements: economy, efficiency and effectiveness. Securing “inputs” (goods or services) at the lowest cost demonstrates how the Council achieves economy. Converting these “inputs” into “outputs” through their proper use demonstrates efficiency. Ensuring that the outputs achieve the intended outcomes demonstrates effectiveness.

 

4.8 Opportunities to deliver economy and efficiency savings have been identified by service areas in their Baseline Assessments. In the current financial climate, the Council recognises that it is more important than ever to ensure that the money that it spends achieves the outcomes intended. As such, it is proposed that a corporate workstream be developed to progress a review of the effectiveness of spend.

 

4.9 The project will commence with two areas initially. Firstly, a review of the Economic Development service including Regeneration and Tourism functions will be undertaken. This review will focus on whether the investment made in the service delivers the intended outcomes including increasing employment, encouraging growth in existing business, increasing the number of new business start-ups and improving prosperity. The second area will consider the effectiveness of the way in which grant funding is spent. The initial evaluation will determine the effectiveness of the way in which the grants received by the Economic Development, Children & Young People’s Partnership and Family Support Service departments are spent, taking into consideration the desired outcomes for these services.

 

4.10 It is intended that the principles developed and lessons learnt as a result of the initial reviews should inform a corporate approach to ensuring the effectiveness of spend. It is proposed that the Director of Development Services should be the project sponsor. It is also envisaged that the work undertaken by this project will inform the proposals for future tranches of services to be reviewed.

 

Income Generation

4.11 A clear way of making up budget shortfalls is to charge for certain services and facilities. Detailed analysis will need to be undertaken of what services should be charged for and the impact it would have. Opportunities for charging could include extending current service provision and recovering the costs through income.

 

4.12 Services could also identify additional sources of funding such as grant funding from Welsh Government and other grant making bodies as well as contributions from partner organisations for the delivery of initiatives.

 

4.13 In order to maximise the potential in this area and to ensure that a consistent approach is adopted, it is proposed that a corporate project be developed, with the Head of Finance assuming the role of project sponsor.

 

4.14 As part of stage one of the Reshaping Services process, each service area considered the potential to improve the generation of income. Based on the information contained in the Baseline Assessment and Cost Centre Analysis documentation, each service area’s current income (from grants and customer receipts) was analysed and the opportunity to increase income considered by the challenge group. The potential to increase the income generated in each service area was then ranked high, medium or low in order to prioritise the work of this corporate project and is provided in Appendix G.

5 Service Specific Projects Workstream

5.1 In addition to the corporate projects workstream described above, the challenge group considered specific service areas for possible projects. The challenge group used the information contained in the Service Area Baseline Assessments, the Cost Centre Analysis and the discussion arising as part of the challenge process in order to identify those services that would progress to stage two of the Reshaping Services process (a more comprehensive assessment of their potential to be reshaped) as individual service reviews.

 

5.2 In identifying the services to progress to stage two the challenge group considered the evaluation criteria outlined in the Reshaping Services Strategy which is summarised in the following table.

 

 1 – Existing Service Analysis  2 – Opportunity Analysis  3 – Financial Appraisal 4 – Impact Analysis 
Alignment to Council objectives and priorities.

 

Current service and financial performance.

 

Degree or urgency of the problem.

Ease of delivery.

 

Extent of market.

 

Potential for alternative delivery models.

 

Available opportunity.

 

Nature of the service.

Level of potential savings and investment required. Risk – performance, reputational and financial.

 

Impact on customers and partners.

 

Legislative limitations.

 

Extent to which the proposal meets Council priorities.



Existing Service Analysis

5.3 Savings totalling £18million have been identified between 2015/16 and 2017/18, including a number of significant projects such as those reviewing the Council’s transport provision and library services.

 

5.4 The challenge group identified existing projects that align with the objectives of the Reshaping Services programme. These projects will form part of the Reshaping Services programme and report progress via the governance arrangements and are described in further detail later in this report.

 

5.5 The challenge group also sought to identify any issues with current service performance. Based on the information contained in the Baseline Assessments it was seen that most service areas were performing reasonably well in terms of the Reshaping Services agenda. The assessment identified known opportunities for improvement. For example, the Building Maintenance service had been identified via an audit report as requiring improvement and an action plan and governance arrangements are in place to progress these improvement activities. As many of the issues to be tackled by the action plan cut across the Reshaping Services agenda (such as consideration of the potential for alternative models of delivery), it is proposed that this project become a part of the Reshaping Services programme.

 

5.6 In other areas, the challenge process identified services requiring improvements that were not aligned with the Reshaping Services agenda and as such it is not proposed that these be pursued as part of this programme. For example improvement has been identified as being required in the delivery of Disabled Facilities Grants, with a focus on performance indicators, and for which an action plan is in place.

 

5.7 The challenge group also considered the urgency of any issues within service areas. The most pressing of these issues is the delivery of the Council’s Medium Term Financial Plan and as such, the challenge group concluded that all services should be the subject of on-going and rigorous challenge in order to achieve the objectives of the Reshaping Services programme.

 

Opportunity Analysis

5.8 The Reshaping Services Strategy identifies that alternative models of service delivery have the potential to contribute towards the delivery of the strategy’s objectives as outlined earlier in this report. Alternative delivery models include joint provision with other public sector bodies, delivery by external partners, council-owned companies and co-production.

 

5.9 In order to identify and prioritise those services to progress to stage two, the challenge group analysed the opportunity that exists for alternative delivery models for each service area (or further expanding their use) and scored the opportunity on a scale from one (lowest) to five (highest).

 

5.10 Recognising that alternative models of service delivery will not be appropriate for each service area, the opportunity to deliver further efficiencies in that service area was also assessed using the same scale.

 

5.11 In awarding a score for alternative delivery methods and efficiency generation, the challenge group considered issues such as ease of delivery of any potential changes, the extent of any market that exists to provide the service in an alternative way, the potential for alternative delivery models to be used and the availability of opportunities for new ways of working or generating efficiencies.

 

5.12 Other approaches to reshaping (such as demand management, income generation and effectiveness of spend) were considered separately and form the basis of the proposed corporate projects workstream as described above.

 

Financial Appraisal & Prioritising Projects

 

5.13 Opportunities exist as regards alternative delivery models and/or to deliver further efficiencies across all Council services. However, to inform decision making as to which services should form the first tranches of projects to be progressed to stage two, the financial scale of these potential opportunities was also appraised. The analysis identified the controllable budget as set out in the Cost Centre Analysis for the service area and adjusted the budget for consideration of savings already attributed to the service between 2015/16 and 2017/18. Potential savings targets were then calculated for each service area for alternative service delivery models and efficiency initiatives. High level potential savings estimates were arrived at by proposing that at least a 20% saving should be achieved as a result of an alternative delivery model project; these estimates proposed that the target for an efficiency project should be at least 10%. The savings calculated were reviewed in conjunction with the Service Area Baseline Assessments and each financial opportunity was scored on a scale from one (lowest) to five (highest).

 

5.14 The opportunity analysis and financial appraisal scores were then combined to reach an overall score for both the potential offered by alternative models of service delivery and delivering further efficiencies. The highest score awarded to the service area for either alternative models of service delivery or efficiency was then used to rank the service areas. The ranked opportunities by service area were used to provide the challenge group with an aid to identify which services could form the first tranches of projects progressing to stage two. Appendix H provides details of the scores assigned to all service areas.

 

5.15 Those service areas with a highest score of seven or more out of ten were as follows (the "projects long-list"):

 

  Alternative Delivery Models Efficiency Highest Score
Development Services
Planning  7 4 7
Transportation 8 9 9
Public Protection 9 5 9
Learning & Skills
Additional Learning Needs Transport 6 7 7
Additional Learning Needs and Inclusion 9 7 9
Library Service 8 6 8
Catering 9 6 9
Strategy and Resources 6 7 7
Resources
Audit, Insurance & Business Improvement 7 4 7
Accountancy and Systems Implementation 7 4 7
Facilities Management 8 9 9
ICT 8 7 8
Human Resources 7 5 7

Legal Services

7 4 7
Customer Relations 7 5 7
Policy & Improvement 7 4 7
Social Services
Adult Services – Assessment & Care Management 8 7 8

Adult Services – Community Care Commissioning

8 7 8
Adult Services – Community Care Commissioning (Direct Payments) 8 5 8
Learning Disabilities Day Care & Adult Placements Service 8 5 8
CYPS – Placements, Leaving Care & 15Plus 6 7 7
Business Management & Innovation 8 6 8
Older People Residential Care 9 8 9
Visible Services & Housing
Housing Services – Landlord Responsibilities 8 8 8
Building – Responsive Maintenance 8 8 8
Building – Planned Maintenance 8 8 8
Building – WHQS 8 6 8
Building – Cleaning Service 8 7 8
Building – Security Service 7 6 7
Refuse Collection & Recycling Collection 7 6 7
Street Cleansing

9

7 9
Highway Construction 7 7 7
Highway Routine Maintenance & Street Lighting

8

7 8
Parks & Grounds – Maintenance 9 6 9
Parks & Grounds – Client Services 7 4 7
Vehicle Maintenance 8 6 8


5.16 Within/across these service areas, the following are projects the Council has already established:

 

Existing Project Project Description
Transportation

Cabinet have approved a corporate programme to examine the full range of transportation functions operated across the Council. An implementation plan has been agreed to progress this activity.

Public Protection

In November 2014 Council approved the creation of a joint Regulatory Services function on a regional basis, covering the Vale of Glamorgan, Bridgend and Cardiff areas. The Vale of Glamorgan Council was agreed to be the “host” (employing) authority and work is underway to establish this service in the 2015/16 financial year.

Facilities Management The Council has established a corporate project examining the use of office accommodation and other estate assets with a view to maximising the productive use of these assets and implementing more efficient ways of working. Phase one (the disposal of Haydock House and relocation of Children and Young People’s Services to the Docks Office) is complete and planning is underway for phase two (consideration of how to maximise remaining office and non-office accommodation).
Library Service

Public consultation on the three proposed changes to the library service ended in January 2014. Consultation required feedback on the phased approach to the development of community supported/managed libraries at St Athan, Dinas Powys, Sully, Wenvoe and Rhoose, adjustment of library opening hours to match current footfall and the progression of work to relocate libraries services in St. Athan. A report on the progress of the review will be issued to Cabinet shortly, when the outcome of the proposals will be decided.

 

A cross-department task and finish has been setup to progress and monitor the actions required of the new libraries strategy, in order to make the efficiencies required to ensure the long term future of the libraries.

Vehicle Maintenance

The work underway in this service area forms part of the corporate Transportation review described above.

Additional Learning Needs Transport The work underway in this service area forms part of the corporate Transportation review described above.
Social Services Collaborative Working and Budget Management Programmes

The Social Services Directorate has two major initiatives underway – the Collaborative Working Programme and the Budget Management Programme.

 

These programmes contain projects which are progressing the opportunities described in the Service Area Baseline Assessments for:

  • Older People Residential Care
  • Adult Services Community Care Commissioning (Direct Payments)
  • Learning Disability Day Care & Adult Placement Service
  • Business Management & Innovation
  • Adult Services – Assessment & Care Management
  • Adult Services – Community Care Commissioning
  • Children & Young People Service – Placements, Leaving Care & 15 Plus.


5.17 The objectives of these projects are clearly in alignment with those of the Reshaping Services strategy. Consequently, it is proposed that the existing projects described above will form part of the Reshaping Services programme and be included in the tranches of projects described in this report as part of the service specific projects workstream. Existing council officer project teams will continue to deliver these projects. However, it will also be a requirement that the progress made on these projects be reported in the same way as for all other Reshaping Services projects (i.e. regularly to the Programme Board) to ensure consistency and coordination at a corporate level. This will also ensure that transferrable practice is identified and shared to inform the further development of the programme.

 

5.18 In order to maximise the benefit derived from these projects, the project sponsor for each initiative will be asked to review the Service Area Baseline Assessments and Cost Centre Analysis to ensure all opportunities identified as part of the first stage of the Reshaping Services process are considered to their full potential.

 

Impact Analysis

 

5.19 The following service areas were assessed as providing the greatest potential for reshaping activity (highest score greater than seven) and are not the subjects of an existing project:

 

Alternative Delivery Models Efficiency Highest Score 
Development Services
Planning 7 4 7
Learning & Skills
Additional Learning Needs and Inclusion 9 7 9
Catering 9 6 9
Strategy and Resources 6 7 7
Resources
Audit, Insurance & Business Improvement 7 4 7
Accountancy and Systems Implementation 7 4 7
ICT 8 7 8
HR 7 5 7

Legal Services

7 4 7
Customer Relations 7 5 7
Policy & Improvement 7 4 7
Visible Services & Housing
Housing Services – Landlord Responsibilities 8 8 8
Building – Responsive Maintenance 8 8 8
Building – Planned Maintenance 8 8 8
Building – WHQS 8 6 8
Building – Cleaning Service 8 7 8
Building – Security Service 7 6 7
Refuse Collection & Recycling Collection 7 6 7
Street Cleansing

9

7 9
Highway Construction 7 7 7
Highway Routine Maintenance & Street Lighting

8

7 8
Parks & Grounds – Maintenance 9 6 9
Parks & Grounds – Client Services 7 4 7


5.20 In determining the priority order in which these services would progress to stage two of the reshaping process, the impact analysis criteria were considered by the challenge group. This included consideration of the risks associated with the project (or of not undertaking it), the potential impact on customers and partners, any legislative limitations and the extent to which the proposal meets Council policies.

 

5.21 The challenge group also took into consideration the capacity to deliver the projects within Directorates and the likely focus of each review. This was to ensure that the programme contained a range of opportunities to explore as it is recognised that the initial tranches of reviews will identify lessons that can be learnt to inform future projects.

 

5.22 Additionally, some service areas offered strong opportunities for reshaping (either via an alternative model of service delivery or to generate efficiencies) but due to the relative size of their budgets did not score as highly as others and as such were not initially included in the programme. These service areas have been considered as follows in order that they may be combined into other workstreams to ensure the opportunities are not foregone.

 

Service Area Workstream(s) to Progress

Physical Disability Day Care

Meals on Wheels

Older Persons Day Care

Respite Residential Care & Adult Placement

Service

Existing Social Services programme

(tranche two).

Alps Stores Building Services review (tranche one).
Public Conveniences Town and Community Councils corporate projects workstream.
Highways: Traffic Management, Drainage, Structures & Projects Highways review (tranche one).
Allotments

Parks & Grounds review (tranche two)

Town and Community Councils workstream.

Fleet Management Existing project (Transportation review)


 

5.23 All opportunities to generate efficiencies scoring seven or more have been built into the Reshaping Services Programme or are the subjects of existing savings projects.

 

5.24 Based on this initial high level analysis, the following indicates those service areas that (in addition to the already established projects described above) would progress to stage two in the first and second tranches, subject to approval. Whilst the challenge group considered service areas individually as described in the baseline assessment documents, in determining the services to progress to stage two, consideration has been given to the best combination of services to review together. As a result, some services have been aggregated in order that maximum value be derived from the comprehensive business case work required at stage two. An example is the “bundling” together of corporate services for review as a tranche two project.

 

Tranche One

Review start date: February 2015

Tranche Two

Review start Date: February 2016

Additional Learning Needs and Inclusion Parks & Grounds – Maintenance & Client Services (including Allotments)
Catering Learning & Skills – Strategy & Resources
Highways (encompassing all areas of the service) Housing Services – Landlord Responsibilities
ICT Building – Cleaning & Security Services

Building Maintenance (comprising Planned & Responsive Maintenance and including WHQS and Alps Stores

Refuse Collection & Recycling Collection and Street Cleansing

Plannin

Corporate Services (including Human Resources, Legal Services, Customer Relations, Policy & Improvement, Audit, Insurance and Business Improvement, Accountancy & Systems Implementation)



6 Reshaping Services Programme Plan & Delivery Arrangements

Programme Plan

 

6.1 Appendix I describes the various elements of the proposed initial overall Reshaping Services programme.

 

6.2 Whilst the service areas identified for inclusion in tranches one and two have been selected on the basis of the initial high-level assessment of their ability to benefit from reshaping via an alternative method of service delivery or to generate efficiencies, the business cases developed at stage two will consider the entirety of the opportunities offered within each of the service areas. The business cases will therefore appraise the potential for alternative methods of service delivery, the ability to generate efficiencies as well as those aspects of Reshaping Services that are to be progressed as a corporate workstream project (income generation, town and community councils, demand management and effectiveness of spend). In this way, a complete and comprehensive review of the service areas will be undertaken. As part of the development of the business cases, a full assessment will be undertaken with regards the potential impact that changes would have on others including, Council departments, partner organisations, schools and suppliers, to ensure changes are appraised holistically and planned for effectively.

 

6.3 Subject to approval, the first tranche of projects in the programme plan will be developed as outlined in the following timetable. It needs to be stressed that the timetable is indicative only as the time taken will depend on the service and complexity of the business case/implementation. The indicative timetable has been designed so that, as far as possible, savings resulting from projects are realised from the 2016/17 financial year.

 

Cabinet Approval to proceed to stage two

February 2015
Stage 2 Business Case development February – August 2015
Cabinet/Scrutiny Committee Consideration of Business Case Autumn 2015
Implementation of Approved Projects January 2016 – July 2016


6.4 The challenge process has been designed as to be repeated throughout the duration of the programme to ensure on-going and rigorous challenge of all service areas on a continuing basis. This process will allow lessons learnt from projects in the Vale of Glamorgan and elsewhere to inform future tranches of projects.

 

6.5 It is intended that the challenge group will therefore meet again next for the second round of challenge sessions in September 2015. The initial proposals resulting from these challenge sessions will form the third tranche of services to be reshaped and will be defined by February 2016 for Cabinet’s consideration.

 

6.6 This report also outlines the projects that, subject to approval, would proceed in tranche two. The indicative timetable for tranche two projects is outlined below and is subject to the same caveats as for tranche one. The indicative timetable has been designed so that, as far as possible, savings resulting from projects are realised from the 2017/18 financial year.

 

Cabinet Approval to proceed to stage two

February 2015
Stage 2 Business Case development January– August 2016
Cabinet/Scrutiny Committee Consideration of Business Case Autumn 2016
Implementation of Approved Projects January 2017 – June 2017


Delivery Arrangements

 

6.7 As described above, stage two reviews will be undertaken by multidisciplinary project teams involving the relevant service area and supported by the programme team. The work will be undertaken in line with the Council's project management methodology and will look at all aspects of the service and available opportunities to ensure maximum benefits are identified. In combining service and corporate resources in dedicated project teams it is intended that the necessary skills and experience will be made available and specialist knowledge about the services utilised as well as providing an opportunity for staff to develop new skills and expertise. Representatives from the third (not for profit) sector will be invited to attend each project’s initial scoping meeting in order to identify whether there is potential for voluntary sector involvement. Also, where appropriate, additional expertise will be sought throughout the duration of the project – for example from the third (not for profit) sector and from specialist sources.

 

6.8 The reviews will be documented as a business case for change, considering the costs, benefits, risks and implementation requirements of each potential project. Each business case will then be subject to Cabinet approval and consideration by Scrutiny Committee. One of the first actions for the project sponsor of each review will be to develop a brief considering the specific actions required to be undertaken and to develop a project level plan highlighting key milestones. This information will then be reported to and monitored by the Programme Board.

 

6.9 Approved business cases will be implemented by the relevant service area, supported by the programme team. On-going monitoring arrangements will be put in place to track the delivery of projects at project level, identifying and managing risks and issues and ensuring on-going oversight.

 

6.10 The Programme Board will receive regular updates on the progress being made on each project and be responsible for ensuring any necessary corrective action is taken to ensure projects deliver intended outcomes on time and on budget. The Programme Board will also be responsible for ensuring that any arrangements (such as new delivery models or ways of working) established as part of the Reshaping Services programme are transitioned to “business as usual” successfully and that programme activity is regularly evaluated in order to ensure benefits are realised and captured and also to inform future decisions on how the programme proceeds and other Council services are offered.

 

7 Consultation and Communication

Consultation on Tranche One and Two Projects

 

7.1 Following initial consideration by Cabinet, it is proposed that this report be referred to Scrutiny Committee (Corporate Resources). The comments from this Committee will then be referred back to Cabinet to inform the final determination as to how the programme proceeds.

 

7.2 It is also proposed that this report be referred to the Community Liaison Committee, Voluntary Sector Joint Liaison Committee and Local Service Board.

 

Programme Consultation & Communication

 

7.3 A high level communications plan is included in the strategy and describes the activities and stakeholder groups that are being communicated with. These groups include the Community Liaison Committee, Voluntary Sector Liaison Committee and Local Service Board in addition to the Council’s Scrutiny Committees and highlights the importance being placed on working with these groups in defining and delivering the Reshaping Services programme.

 

7.4 Two way communication is ongoing through meetings and reports to committees and groups consulted with to date. A standing item has been included on the monthly Change Forum meeting with Trade Unions. Information will be provided to residents and service users as the programme develops. Staff are kept apprised of progress through internal mechanisms such as Core Brief (the monthly staff newsletter) and team meetings.

 

7.5 The Local Service Forum which is the Local Service Board annual stakeholder event was held in December 2014 and focused on 'Shaping the Future - Meeting the Challenge Together'. The event was attended by approximately 80 delegates from a range of organisations across all sectors. Delegates listened to a range of presentations and participated in workshops on reshaping services and were asked to consider issues around assets, opportunities, engagement and risks. Feedback from the event was very positive with delegates keen to be involved in discussions about alternative service models and recognising the need for change. Delegates were also keen to participate in further events and to be kept informed about proposals for new ways of delivering services.

 

7.6 Consultation with Vale residents on the Reshaping Services Strategy has also now begun. As the strategy will define the future delivery of all services, public engagement will be used to inform the development of the strategy. All corporate consultation projects are now being undertaken under the title of ‘Reshaping Services’. The first of these has been the public consultation on the Council’s 2015/16 budget.

 

7.7 There were two elements to the consultation with residents: quantitative data collection through a budget priorities survey and qualitative data collection through face to face sessions with targeted groups of Vale residents. The survey was designed to enable Vale residents to make clear how they prioritised the services that they used. A broad range of council services was presented to respondents. Services were grouped in line with the Council’s Corporate Plan and respondents were asked to select whether they viewed each as ‘not important’, ‘important’ or ‘very important’. Respondents were asked to only provide answers for services that they used or that they felt directly impacted on their lives. To complement the information gained from the survey discussion groups were held with the Vale of Glamorgan 50+ Strategy forum and members of the Vale Viewpoint citizens’ panel. These discussion groups focused on budget priorities and alternative forms of service delivery.

 

7.8 While work to analyse the findings of the consultation is ongoing at the time of this report, some initial conclusions have already been drawn. It is clear from the response to the consultation that there are no services currently provided by the Council that are not valued by those that use them. The views gained during the consultation strongly suggest that while Vale residents value the services that they use, they also have a strong desire to see the Council investigate different ways of working in order to find the maximum possible savings in the management of services before considering reducing or withdrawing them. Encouragingly these conclusions reinforce the rationale for the Reshaping Services Strategy.

 

Project Communication & Consultation

 

7.9 The communications work that underpinned the budget consultation represents the first stage in widely publicising the key public message of the Reshaping Services Strategy; that the Council is developing a clear strategy for determining future priorities for service provision, models of service delivery and how resources will be allocated.

 

7.10 However, the results of the consultation make clear that public awareness of the Council’s work to address the challenge presented by central government’s austerity drive and to mitigate the impact of the unprecedented financial constraints within which it must now operate is very low. Communicating the output of the varied work streams associated with the Reshaping Services Strategy must now be recognised as a key priority.

 

7.11 A priority for the Reshaping Services programme is to ensure that engagement is undertaken with service users and partner organisations in the design of new ways of working.

 

7.12 As projects progress through business case development and implementation, specific consultation and communications activity will be required at a project level. This will involve communicating with service users, staff, trade unions and elected members and will be led by the Project Sponsor. Individual communication and consultation plans will be developed and delivered in line with the Council’s policies and statutory requirements.

 

8 Organisational Development

8.1 There is recognition that the issues raised by the Reshaping Services strategy are new to many elected members, council officers and partners. The programme is intended to consider fundamentally different ways of delivering services and this will require a change in culture for the Council

 

8.2 A change in the way services are delivered will require a commensurate change in our working arrangements and workforce needs going forward. This will include for example:

  • A review of management and leadership competencies including an increased requirement for commissioning, contracting, collaboration and project management skills and less on direct service delivery.
  • A review of organisational design and structure to support the needs of the new service delivery models. This may reduce the need for directorates based on service delivery and more on the delivery of wider corporate objectives and strategy.
  • A change in the relationship we have with our workforce. A reduction in the number of staff will need to be matched by a greater emphasis on role flexibility, development, performance and particular staff engagement going forward.
  • A need to review and streamline the range of people management policies and procedures in order to reinforce a change of culture, underpin the changed expectations of our staff and ultimately increase capacity and performance.
  • A need to encourage an increasing focus on learning, development and innovation across the organisation. As indicated previously, the Reshaping Services Programme presents (and will continue to present) very new challenges for elected members, managers and staff across the organisation.

8.3 The Council’s annual workforce planning conference in November 2014 was centred on the theme of “reshaping services” and the specific implications for the current and future workforce. The outcomes from this (as reflected above) will drive the Council’s Workforce Planning strategies over the life of the Reshaping Services programme.

 

8.4 A starting point in relation to the above will be the running of a programme of staff engagement sessions for staff across the Council during March and May 2015. Such sessions will be led by the Council’s Management team and will help ensure clarity about the challenges being faced by the Council, the objectives of the Reshaping Services programme and the contribution of staff in the wider organisational development programme.

 

9 Resource Implications (Financial and Employment)

9.1 The latest financial projections estimate that the Council will need to find savings of over £7 million in 2015/16 and approximately £24.6million over the next three years. Of these figures, savings have already been identified totalling £18million. A further sum of £6.6 million must be found to balance the revenue budget for the period to 2017/18. This will be a major challenge for the Council which this change programme aims to help address.

 

9.2 As identified in the Reshaping Services strategy, the change programme will have significant implications for staff and methods of working. It will also involve working with the third (not for profit) sector, Town and Community Councils and specialists to develop and deliver new ways of working.

 

9.3 The latest financial projections identify a projected shortfall for the period to 2017/18 is £6.6million. It is expected the profile of the shortfall will be approximately £1.6million in 2016/17 and approximately £5million in 2017/18. The initial savings targets that have been identified as part of the alternative service delivery and efficiency service reviews for tranches one and two of the Reshaping Services Programme total £5.9M and are set out as shown below.

 

Directorate Service Tranche

2016/17

2017/18

£000’s

£000’s

Development Services Effectiveness of Spend (Economic Development ) 1

50

0

Development Services

Planning 1

100

0

Learning & Skills Additional Learning Needs 1

500

0

Learning & Skills Catering 1

300

0

Learning & Skills Strategy & Resources 2

0

400

Resources ICT 1

0

550

Resources Other Corporate Services 2

0

1,400

Visible Services & Housing Housing Services - Landlord Responsibilities 2

0

0

Visible Services & Housing Building Maintenance 1

200

0

Visible Services & Housing Highways 1

1,100

0

Visible Services & Housing Street Cleansing and Refuse Collection and Recycling 2

0

450

Visible Services & Housing

Parks & Grounds

2

0

650

Visible Services & Housing Building Cleaning & Security 2

0

200

Total

2,250

3,650

Total Reshaping Services Savings Targets

5,900



9.4 In the above savings targets no specific savings (with the exception of an initial £50,000 allocated to the review of Economic Development) have been attributed to the Income Demand Management, Effectiveness of Spend and Town and Community Councils corporate projects. However, it is expected that the additional £700,000 required to fund the projected revenue shortfall in 2017/18 could be identified in additional projects developed as part of these corporate projects.

 

9.5 Taking into account the new savings targets identified as part of the Reshaping Services programme and the latest financial projections, the revised total Directorate savings targets for 2015/16, 2016/17 and 2017/18 are as follows:

 

Directorate

2015/16

2016/17 2017/18 Total
£000’s £000’s £000’s £000’s
Development Services 1,395 891 22 2,308
Learning & Skills 886 1,748 400 3,034
Resources & Policy 1,353 3,827 2,651 7,831
Social Services 1,418 1,134 320 2,872
Visible Services & Housing 2,212 4,071 1,559 7,842
Total Savings Targets 7,264 11,671 4,952 23,887
Additional to be allocated from corporate workstream projects 700
Total savings required to 2017/18 24,587


9.6 Targets are subject to change as part of this programme and must be informed by the Medium Term Financial Plan and developing funding environment in which the Council operates. It is intended that savings in excess of the targets set out in this report will be identified as the programme progresses and will feed into future tranches of service reviews.

 

9.7 There will be costs associated with delivering the Reshaping Services programme and its associated projects. Costs will be incurred in areas such as project/programme management, developing capacity and capability, and the procurement of specialist expertise. Activities will be delivered by a mix of internal and external resources. For the initial phase of work, these costs are not anticipated to exceed £300,000 and will be met from the Council's Project Fund reserve. Delegation to the Managing Director in consultation with the Leader is sought to procure the necessary resources to support the delivery of the programme in line with the recommendations outlined in this report.

 

10 Sustainability and Climate Change Implications

10.1 The Council has a Sustainable Development checklist which is completed when projects are scoped and then delivered. This checklist will be completed at all stages in the proposed change programme.

 

10.2 The Reshaping Services Strategy is consistent with the Council's commitment to promote sustainability and to consider the needs of current and future generations.

 

11 Legal Implications (to Include Human Rights Implications)

11.1 There are no specific legal implications relating to this report. There will be legal implications specific to individual projects and these will be considered as part of the development of stage two business cases. Legal Services are represented on the Reshaping Services project team.

 

12 Crime and Disorder Implications

12.1 These implications will be considered as part of each individual service review conducted as part of the programme.

 

13 Equal Opportunities Implications (to include Welsh Language issues)

13.1 An Equalities Impact Assessment (EIA) has been undertaken for the whole of the Reshaping Services Strategy and was reported to Cabinet in November 2014.

 

13.2 It will be a major undertaking to consider the equal opportunities implications of the change programme since each service has its own clientele and the "protected characteristics" of each clientele will have to be assessed in detail. As such EIAs will be developed as appropriate for those services subject to in-depth reviews as part of the stage two business cases and monitored throughout each project’s delivery.

 

13.3 Elements of the Reshaping Services programme could present challenging equalities issues. These will require careful consideration and consultation as part of the detailed work to be undertaken in order that any potential inequalities are mitigated as far as possible. There are also potential risks associated with adopting alternative methods of service delivery. For example, projects to externalise council services may have impacts on the local workforce and economy and consideration of mitigating actions will be important as part of the development of business cases. Consideration of the needs of the different communities which make up the Vale of Glamorgan will continue to be given in how services are designed and delivered in order to provide a local response to issues but be balanced by the need to ensure that individual areas are not unfairly impacted by changes made.

 

14 Corporate/Service Objectives

14.1 The Council's Corporate Plan for 2013-17 provides the overall set of objectives within which the change programme will happen. The Corporate Plan may however require a review as the programme progresses. The changes that occur as a result of the programme and any potential changes in the Corporate Plan will be reflected in the appropriate Service Plan.

 

15 Policy Framework and Budget

15.1 This is a matter for executive decision by Cabinet.

 

16 Consultation (including Ward Member Consultation)

16.1 Due to the corporate nature of this report, no specific Ward Member consultation has been undertaken. The consultation activities undertaken and planned are described in the body of the report above. These include a copy of this report being shared with Trade Unions as described above.

 

17 Relevant Scrutiny Committee

17.1 Corporate Resources is the lead scrutiny committee for the Reshaping Services programme.

 

Background Papers

Reshaping Services Strategy

 

Contact Officer

Huw Isaac, Head of Performance and Improvement

 

Officers Consulted

Managing Director

Head of Human Resources

Corporate Management Team

Reshaping Services Project Team

 

Responsible Officer

Sian Davies, Managing Director

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