The Vale of Glamorgan Council
Cabinet - 22nd June 2015
Report of the Leader
Senior Management Restructure - Resources Directorate
Purpose of the Report
1. To seek the approval of Cabinet to implement revised senior management proposals and supporting actions within the Resources Directorate.
1. That Cabinet approve the restructuring proposals as set out in paragraphs 16 to 24 of this report and to implement changes to the Resources establishment as illustrated in Appendix B
to reflect Option 3 of the Hay Group report as presented to and approved by Council on the 17th December 2014.
2. Notwithstanding recommendation 1. above that Cabinet approve the retention of the existing reporting line/responsibilities of the Operational Manager Democratic Services who will continue to report to the Managing Director.
3. That Cabinet approve to designate the Operational Manager Accountancy to undertake the statutory position of Deputy Section 151 Officer as a permanent role of the post holder and the appropriate allowance be applied in recognition of this responsibility.
4. That the grade of the Senior Head of Service post - Head of Human Resources or Head of Performance and Development include the Senior Head of Service allowance as set out in paragraph 41 of this report and be referred to approval by Council on 24 June 2015.
5. That Cabinet approve to establish a post of Operational Manager Performance and Policy at a grade of OM 1 within the Resources Directorate.
6. That Cabinet approve to progress the appointment/assimilation arrangements as set out in paragraphs 30 to 39 within this report.
7. That Cabinet approve to the referral and consideration of any consequential changes to the Council's Constitution to the next appropriate meeting of Council.
8. That recommendations 1 to 7 above be dealt with under Article 13.09 of the Council's Constitution (Urgent Decision Procedure).
Reasons for the Recommendations
1. To ensure the substantive management arrangements for the Resources Directorate and to reduce the number of reporting lines to the Managing Director and to progress implementation of the arrangements as determined by the Council (Council Minute 715 refers). To improve the resilience of the Resources Directorate to respond to future challenges as illustrated in the Hay Group report.
2. To reflect the independence and the ability of the post holder to undertake their statutory role as "Head of Democratic Services" as set out in the Local Government (Wales) Measure 2011.
3. To enable the Council to identify the statutory responsibility as Deputy Section 151 Officer and thereby maintain compliance with the statutory provisions of the Local Government & Housing Act.
4. To ensure compliance with the requirements of the Local Authorities (Standing Orders) (Wales) Regulations 2014.
5. To provide additional capacity and leadership to promote and progress the Council's Reshaping Services initiative to assist the Council to respond to increasing budgetary pressures, Change Management and future challenges.
6. As 1. and 2. above and to ensure compliance with the Council's policy and procedural requirements.
7. As 1. above and to ensure provision of appropriate delegations as a consequence of the proposals within this report and to realise projected establishment savings.
8. To ensure the grading decision can be approved by Council on the 24th June 2015 and that the assimilation arrangements and new sustainable management arrangements can be put in place as soon as possible.
9. The focus of this report is to progress consideration of Option 3 of the Hay Group Report – Review of Senior Management arrangements and to determine the recommendations as set out within the Hay report which was approved by the Council on the 17th December 2014.
10. The above option within the report recommended the reduction of the span of control of the Managing Director to enable the role to be more freestanding and “doable” by the Managing Director undertaking a broader, guiding role for the Resources functions. To accommodate this arrangement, the report identified the opportunity to reduce the number of Heads of Service who directly report to the Managing Director from five to three. The report identified that such an arrangement would also realise the deletion of the Director of Resources position, but recognised the need to retain the existing number of five Heads of Service roles with changes to the reporting lines to enable the more senior Heads of Service to extend their range of responsibilities and to operate with greater autonomy.
11. Since June 2013, the statutory role as the Council’s designated Monitoring Officer has been undertaken by the Head of Legal Services, for which an additional allowance is payable in recognition of the additional duties and responsibilities associated with the legislative responsibilities attached to the statutory role.
12. The Hay Report acknowledged the above in addition to recognising the responsibility of Returning Officer being transferred on a temporary basis until November 2016 to the Head of Legal Services.
13. In addition to the above, the Hay Report identified the potential for the role of the Operational Manager Democratic Services (the Council’s designated 'Head of Democratic Services' under the Local Government (Wales) Measure 2011) to transfer reporting lines from the Managing Director to the Head of Legal Services.
14. The decision of the Council on the 17th December 2014 also confirmed that three Heads of Service should report to the Managing Director, but the actual “nature” of this arrangement be deferred until the Managing Director had been appointed to enable their input into the restructure.
15. This report is intended to consider and to identify amongst the recommendations a revised “Resources” establishment to reduce the number of Heads of Service reporting lines within the corporate functions in the Council to the Managing Director.
16. The report also seeks to establish a new position of Operational Manager reporting to and supporting the Head of Performance and Development to progress the on-going significant Business Improvement, Policy and Performance agenda.
17. In addition, Members will be aware of a similar review of arrangements that has been progressed across the Directorates of Development Services and Housing and Visible Services which was subject to the same consultation timeline. The proposals in relation to that review are included in a separate report elsewhere within this agenda which is relevant, in that the previous Director of Development Services post is not being retained, but replaced with a narrower Head of Service post that will report direct to the Managing Director.
The proposals in detail
18. To delete the post of Director of Resources and to confirm the continued allocation of the Section 151 duties and responsibilities to the position of Head of Finance.
19. Members will be aware that the current Head of Finance/Section 151 post holder has given notice of his retirement which will take place on the 19th July 2015. The salary to the existing post holder is paid in accordance with the Head of Service pay range, plus a temporary interim honorarium payment in respect of the responsibilities of the Section 151 Officer which have been undertaken by the post holder which will cease on his retirement in July 2015.
20. In anticipation of the forthcoming retirement of the existing post holder, the Council at its meeting of the 4th March 2015 approved the recommendation of the Cabinet to recruit to the post of Head of Finance/Section 151 Officer, with the salary for this responsibility and the honorarium incorporated within the salary on a permanent basis. The post was subsequently advertised to encompass the above with the successful candidate scheduled to start in this post on the 20th July 2015. In line with the recommendations of the Hay Group, the Cabinet are asked to confirm the transfer of reporting lines of the Head of Strategic ICT from the Managing Director to the Head of Finance/Section 151 Officer. The Strategic Head of ICT will deputise for the Head of Finance on ICT issues and as required.
21. Members of the Cabinet will be aware that the Council is required to designate a Deputy Section 151 Officer. This is currently being undertaken on a temporary basis by the Operational Manager Accountancy. Given the recent appointment of the Head of Finance which incorporates the substantive Section 151 Officer responsibility, it is considered appropriate to designate the Operational Manager Accountancy to the statutory position of Deputy Section 151 Officer and be paid the agreed allowance on a permanent basis. This arrangement will provide a consistent, appropriately qualified and readily identified officer to deal with and determine financial matters in the absence of the Head of Finance (particularly given the additional ICT reporting responsibilities which will be applied to the Head of Finance).
22. The Cabinet will recall within the report of the Hay Group that reference was made for the Council to consider changing the existing reporting lines of the Operational Manager- Democratic Services from the Managing Director. The Managing Director having reviewed this option has determined to recommend in favour of the continuation of the existing arrangement to Cabinet. Retention of the existing reporting arrangements will maintain the continued autonomy of the “Head of Democratic Services” to undertake his statutory obligations. Similarly, this arrangement will enhance the ability of the Managing Director to undertake his statutory duties and responsibilities as “Head of Paid Service” in the provision of leadership to the organisation, implementation of policy objectives and the priorities of the Council are achieved through the regular interaction between these statutory officers.
23. The Hay Group report also identified the opportunity for either the Head of Human Resources or the Head of Performance and Development to assume a Senior Head of Service role and the line management responsibilities across both services. The successful applicant would report directly to the Managing Director and attend and represent both services at the Corporate Management Team. This opportunity has significant merit especially given the synergy and co-operation within both services of particular relevance is that both officers undertake a key role in respect of the on-going Reshaping Services and transformation agenda within the Council.
24. As a consequence, it is recommended to progress the above option and in accordance with the recommendations of the Hay report. It is proposed that both the existing Heads of Service be invited to register their interest for the senior position and to assume responsibility for the reporting and line management responsibilities for both Services to the Managing Director. A competition selection and appointment process would be determined by the Council's Senior Management Appointment Committee following registration of interest.
25. In addition and separate from the Hay Group report, a new post of Operational Manager is proposed to be added to the Council's establishment. This post is necessary to deal with matters relating to Business Improvement, Policy and Performance to maintain a keen emphasis on Reshaping services and to respond to budget pressures and change management challenges. The draft Job Description and Person Specification relating to this new post of Operational Manager Performance and Policy are attached at Appendix C and D and the post is shown on the proposed structure at Appendix B.
26. A copy of the existing and the proposed senior management structure in respect of the Resources Directorate are attached to this report at Appendix A and B respectively.
Feedback from consultation process
27. The above proposals to change the senior management restructure with the Resources Directorate have been subject to a 30 day consultation period with all affected Chief Officers in accordance with the Council's Managing Change Process and Avoiding Redundancy Policy. The consultation process took place between the 15th May and the 14th June 2015. It should be noted that the formal consultation process excluded reference to a Deputy Section 151 Officer given this proposal simply changes the current status of the allowance from a temporary to a permanent responsibility of the existing post holder.
28. The business case which incorporates much of the information as set out within this report has been supplied to all relevant Chief Officers and to the recognised trade unions.
29. Following conclusion of the consultation process, no adverse responses have been received from those Chief Officers affected by the proposals or from the recognised trade unions in respect of this report. One formal response was received which supported the retention of the existing reporting lines of the Operational Manager Democratic Services.
Assimilation Implementation Arrangements
30. Subject to consideration of the issues as raised in this report and to the agreement of the Cabinet being obtained, it is proposed that progress is made in taking forward the revised senior management structure following conclusion of the earlier consultation process.
31. On the basis of the proposals contained within this report, each of the existing Heads of Service will be eligible to be matched to their current roles and responsibilities as contained within their current Job Description and both the Head of Finance (to include ICT) and the Head of Legal Services at the level of Senior Head of Service.
32. It is suggested that the new structure becomes effective on the 20th July 2015. This will coincide with the retirement of the current Head of Finance and with the new post holder taking up this appointment to include the duties and responsibilities of Section 151 Officer and the line management of the existing Head of Strategic ICT.
33. It is proposed that the Operational Manager Accountancy is formally designated as the Council's Deputy Section 151 Officer and the Job Description amended and the appropriate allowance paid to the current post holder on a permanent basis in recognition of the responsibilities associated with this statutory role.
34. The above approach will facilitate a seamless transition within the Finance and ICT functions and provide a target to commence and conclude appropriate appointments in a timely and consistent manner to realise the new management structure within the Resources Directorate. This arrangement will also provide sufficient timespan to implement administrative and financial changes to support this objective.
35. In accordance with the Council's constitution, the appointment to the proposed Senior Head of Service within the Resources Directorate will need to be determined by the Senior Management Appointment Committee. The new Senior Head of Service post will be "ring-fenced" and expressions of interest sought from both Head of Human Resources and Head of Performance & Development. This arrangement reflects the Hay Group recommendations as previously agreed by the Council in December 2014.
36. It is proposed that all other appointments are managed by the Managing Director with the support of the Head of Human Resources under similar procedural requirements.
37. Subject to the approval of the Cabinet being obtained the post of Operational Manager Performance and Policy will be advertised internally and subject to the Council's normal recruitment and selection procedure.
38. There are no displaced employees envisaged as a consequence of the recommendations in this report.
39. A further report will be submitted to Cabinet and Council to confirm changes to the Council's Constitution as a consequence of the proposed revised senior management arrangements, including any necessary changes to the scheme of delegations.
Resource Implications (Financial and Employment)
40. Revised contracts of employment and supporting job descriptions be issued to those Chief Officers affected by the decision resulting from this report as appropriate.
41. An estimate of the associated potential financial implications of implementing the recommendations based on the current budget provision and the projected grades are as follows:-
Deletion of Director of Resources post will be cost neutral given the new Managing Director post is already funded and unaffected by these proposals. Similarly, the salaries relating to both Head of Finance/Section 151 Officer and the Head of Legal Services posts are already incorporated into the existing budget and are therefore cost neutral.
The proposed new post of Operational Manager Performance and Policy will be paid in accordance with the Operational Manager Level 1 at an estimated cost of between £63k and £69k. The grade associated with this post has been subject to external analysis which has confirmed that Operational Manager 1 level grade is commensurate with the duties and responsibilities associated with the post.
Payment of potential supplement to one Senior Head of Service (either the Head of Human Resources OR the Head of Performance and Development) will attract an additional salary payment of £9658 per annum at a total cost of approximately £12.5k including on-costs.
42. The above budget estimates includes the salary costs and supplementary payments, employers’ national insurance and pension contributions.
43. Any increases resulting from the recommendations of this report will need to be considered and off-set against the savings realised within the Senior Management review including those within the Development Services and Housing and Visible Services Directorates which are projected to deliver an estimated saving in the region of £70k.
Sustainability and Climate Change Implications
44. There are no sustainability or climate change implications arising from this report.
Legal Implications (to Include Human Rights Implications)
45. The Council is legally required to identify and designate both a Section 151 Officer and a Monitoring Officer.
46. The Monitoring Officer cannot be the Section 151 Officer - each of these posts must be independent of one another (the Council also applies this separation of responsibilities in respect of the Head of Paid Service).
47. The Section 151 Officer and the Deputy have to be a registered and fully qualified Accountant as set out within Section 113 of the Local Government Finance Act 1988 in respect of Chief Finance Officers’ qualifications. This is the case in the Council.
48. The Local Authorities (Standing Orders) (Wales) Regulations 2014 require the Full Council to determine or approve changes to the salaries of officers designated as Chief Officers within the definition of the Local Government and Housing Act 1989.
49. Whilst the principle of Option 3 of the Hay report has previously been agreed by the Council (Council of the 17th December 2014, Minute 715 refers), the proposed Senior Head of Service for Human Resources or Performance and Development would fall within the above definition. The post holder will report directly to the Council's Head of Paid Service and as a consequence would meet the provisions of Section 7(a) of the above Act.
Crime and Disorder Implications
50. There are no crime and disorder implications directly arising from this report.
Equal Opportunities Implications (to include Welsh Language issues)
51. The selection process resulting from the proposals within this report will be administered in accordance with the Council's equality proofed recruitment and selection policy, avoiding redundancy provisions and achieve the provisions of the Local Authorities (Standing Orders) (Wales) Regulations 2014.
52. The issues within this report seek to support the delivery of service objectives set out in the Corporate Plan 2013/17 and individual service plans.
53. In addition, the recommendations within this report will maintain a clear focus on the resilience of the corporate services given the key links to the Corporate Plan, ensuring effective use of resources, delivering the Reshaping and Transformation agenda, meet legislative requirements and respond and identify service improvements throughout all areas of the Council.
Policy Framework and Budget
54. This report is a matter for Executive decision.
Consultation (including Ward Member Consultation)
55. All the relevant Chief Officers within the Resources Directorate and the recognised Trade Unions have been consulted on the proposals contained within this report. In addition, the proposals have been cascaded through team meetings to employees within the Resources Directorate.
Relevant Scrutiny Committee
56. Corporate Resources.
Council 17th December 2014.
Adrian Unsworth, Operational Manager, Human Resources
Head of Finance
Operational Manager -Legal Services
Rob Thomas, Managing Director