Upload
edmund-lawson
View
214
Download
0
Tags:
Embed Size (px)
Citation preview
Delivering Services Differently
Wednesday 10th July 2013
Conference Chair
Cllr Anthony McKeown, Deputy Leader, High Peak Borough Council
Transforming Public Services
Presentation to East Midlands CouncilsWednesday 10th July
William BurgonPolicy and Commercial Advisor, Cabinet Office
Transforming Public Services4
TransformationWhat We Mean
Transforming Public Services
Transformation=
Structural Change
Transforming Public Services5
TransformationCase for Change
Transforming Public Services
Significant financial constraints
Restrictive bureaucracy
Untapped commercial potential
High quality services fit for the 21st Century
Motivated and empowered staff
Revenue generation for HMG and the
taxpayer
Transforming Public Services6
TransformationStrands of Work
Transforming Public Services
Digital Services
Alternative Models
Commercialisation
Workplace
Transforming Public Services7
TransformationCross Government
Transforming Public Services
Transformation is taking place across government
Transforming Public Services8
Commercial ModelsMission
We help identify, develop, and deliver the best business models to achieve better public services
Transforming Public Services
Transforming Public Services9
Commercial ModelsPrinciples
Our work is driven by a number of core principles, which guide how we deliver projects
Transforming Public Services
Transforming Public Services10
Commercial ModelsApproach
Transforming Public Services
Each opportunity, whether in central government or in the wider public sector, is approached on its own merits
Transforming Public Services11
Commercial ModelsTypes of Model
All models have their own advantages and disadvantages; in each instance, we explore which is most appropriate and how it should be applied
Transforming Public Services
Outsourced
Service contract
Mutual
Mutual JV
Privatise
HMGIn House HMG /
PrivateHMG / Mutual
HMG / Mutual / Private
HMG Joint Venture
Transforming Public Services12
Commercial ModelsSuccesses
Transforming Public Services
We have recorded some impressive results already, with a lot more to come within the lifetime of this Parliament
Transforming Public Services13
Commercial ModelsContact Us
Transforming Public Services
Read more on GOV.UK and the Mutuals Information Service, or get in touch with the team
Online
Search ERG on GOV.UK
mutuals.cabinetoffice.gov.uk
@mutualsgovuk
Transforming Public Services14
TransformationQ&A
Transforming Public Services
Q&A
Making the Right Choice
Anja Beriro, Browne Jacobson LLP10 July 2013
Content
• Strategic Context• Strategic commissioning• Different delivery models• Undertaking an options appraisal• Your role and who to involve
Spending
Austerity
Politics
Public sector reform
Risk v capacity
Strategic commissioning
Main delivery models
• In House provider• Shared services• Private Sector Operator – not today• Joint Venture• Social Enterprise• Trading company
Options appraisal
Provides a framework for:
• Identifying the different ways outcomes might be achieved
• Systematic process• Evidence informed case for change• Transparency : sharing the decision making
process and outcomes with others
Key issues to consider • Establishing the strategic need. • Establish the range of resources available. • Establishing the key outcomes and objectives you want to achieve in
terms of meeting the strategic need. • Establish your ‘do minimum’ or “baseline” position. • Establish your organisation’s position on risk transfer. • Develop your evaluation criteria for the long-and short-listing
process. • Identify the full range of options, which may be available to deliver
your desired outcomes and objectives. • Create a short-list from a high level option appraisal. • Evaluate fully the short-listed options against the evaluation criteria. • Progressing the preferred option
High level appraisal criteria
• Improved quality of service• Improved efficiency• Quality of employment• Corporate impact on the authority• Sustainability and growth• Added value• Speed of implementation• Flexibility/scope for collaboration• Governance (LA ‘control’)
Who should be involved?
• Politicians• Overview and Scrutiny• Senior Managers• Commissioning staff• Service staff• Other staff within the organisation• Service users• Members of the public
Joint committee
• S101(5) and s 102 Local Government Act 1972 - full Council functions • s9EB Local Government Act 2000 and subsequent regulations –
executive functions• Discharge of functions or advice on discharge of functions• Members of JC are elected members of the delegating authorities –
tasks carried out by officers• Purely administrative arrangements – no contract, therefore outside
public procurement regime• No corporate status so need “lead authority” for any contracts with
third parties – these may need to be procured • Documented in a governance agreement• Examples include regional procurement bodies such as ESPO and
YPO• Much simpler than a corporate structure but without protection of
limited liability
Delegation
• S101(1) Local Government Act 1972 – full council functions• s9EA Local Government Act 2000 – executive functions• From one authority to another which has same functions• Again an administrative arrangement keeping it outside public
procurement regime• BUT – recent ECJ case Piepenbrock C-386/11 setting out clear
reminder of what a true delegation means– It is not the same as control over a Teckal company– It is not the same as Hamburg Waste judgement (next slide)– Cannot have a supervisory role
• True delegations must give over all responsibility for delivering service to the delegatee
• Delegator can withdraw delegation at any time• Difficult balance politically
Hamburg Waste judgement
• Different type of public-public co-operative working
• Very little case law but being set out in new Procurement Directive
• Between two or more public bodies:– To facilitate genuine cooperation to perform a public task– Not to advantage any particular private entity– To reimburse the costs of carrying out the tasks – With a distribution of tasks (not necessarily equally)
between the authorities– With no private sector involvement in the agreement
Issues to consider - corporate• Governance arrangements: staff ownership; user
representation; local authority involvement;• Income/funding: trading; grants; contracts;• Distribution of profit / surplus;• Asset Lock;• Market maturity: sufficient choice of suppliers;• Risks;• Procurement strategy;• Regulation requirements;• Power to trade?
Choice of structure
• Incorporation required? (see later)• Companies
– Limited by shares– Limited by guarantee– Community interest companies
• Industrial and provident societies• Limited liability partnerships
Other issues
• The role of members (“owners” not elected)• The role of Directors• Conflicts of interest• Governance and decision making• Dispute resolution and deadlock• Appointment of new members• Resignation and termination• Funding• Role of executives• Confidentiality and FOIA• Impact of procurement law on the above
Public procurement
• Local Authorities are as a matter or principle subject to EU procurement regime.
• The EU procurement regime applies to the award of certain types of services contract when their value exceeds £173,000
• Accordingly, when considering the establishment of a shared service the implications of the procurement regime must be considered.
• There is no automatic exemption purely because the contract is between public bodies and a procurement exercise may still be required.
Teckal exemption
• Where services are provided by an organisation which, although legally separate, is "economically dependent" on the buying authority to such an extent that it would be inappropriate to make their dealings subject to the EU procurement rules.
• This is known as the "in-house" or “Teckal" exception, established by the case Srl v Comune de Viano and Azienda Gas-Acqua Consorziale (AGAC) di Reggio Emilia (C-107/98) [1999] ECR I-8121.
• The case establishes the principle that, to benefit from the in-house exception, the buying authority must be satisfied that the authority selling the services is a captive entity, that is, the selling entity:– Carries out the principal part of its activities with the relevant authority.– Is controlled in a similar way to that which the relevant authority
exercises control over its own internal departments. – Is funded wholly or mainly by the controlling authority.– Has no private sector participation or financing (although private sector
directors are permitted if their role is to provide expertise to fulfil public interest objectives).
Multiple controlling authorities• Possible for more than one local authority to
be a member of a Teckal company• Although no individual authority needs to
have sole control of the company, the participating authorities must have ‘decisive influence’ over strategic objectives and significant decisions
• Decisive influence can be present even where it can only be exercised jointly alongside other public authorities
We are a national firm with a track record of delivering solutions to our national and international client base. We have experience across a wide variety of sectors and a client portfolio to be proud of - including blue chip corporates, major insurers and public sector organisations including over 150 local authorities We have a national reach from our offices in Birmingham, Exeter, London, Manchester and Nottingham.
This Seminar and supporting materials are prepared solely for training purposes and are not a substitute for legal advice.
Anja Beriro, Associate
T: 0115 976 6589 / 07796 343136E: [email protected]
Rushcliffe – great place, great lifestyle, great sport
Rushcliffe Borough Council
– Growing a social franchise
10 July 2013Neil Clarke, Leader
Rushcliffe – great place, great lifestyle, great sport
Introduction
• Background – drivers for change• Our approach – planned and
considered• Growing Streetwise into a social
franchise• Lessons learnt from our journey so far• Group discussion and feedback
Rushcliffe – great place, great lifestyle, great sport
Drivers for change
The challenge faced by many councils and elected Members
•Reducing costs (2.8 million) •Maintaining the quality of service•Providing a sustainable future for current employees•Contributing to the local economy
Rushcliffe – great place, great lifestyle, great sport
Our Approach – the 4 year plan
• Proactive approach – service reviews to consider ‘doing it differently’ and alternative delivery models
• Production of a ‘Four Year Plan’ to manage the funding gap over the four years by:
• Cost reduction• Income maximisation• Service Redesign
• Established a Transformation team to help drive the change agenda
Rushcliffe – great place, great lifestyle, great sport
Investigate /Procurement
Investment / Profit Share
Transition Support / Profit Share
Contracted Service
Direct ProvisionSocial Enterprise /
Cooperative
Efficiencies and Service Standards
Support / Merger and Growth
The future of service delivery
Rushcliffe – great place, great lifestyle, great sport
Looking at private sector business models
Rushcliffe – great place, great lifestyle, great sport
Looking at private sector business models
All of the brands are franchisesOffering consistent quality, service, pricing and environment
Rushcliffe – great place, great lifestyle, great sport
Emerging service delivery models
Social franchising is the use of a commercial franchising approach to replicate and
share proven organisational models for greater social impact
Rushcliffe – great place, great lifestyle, great sport
• 30 years experience of caring for the Borough
• Highly skilled workforce with a can do attitude
Taking care of grounds maintenance and street cleansing in the Borough
Rushcliffe – great place, great lifestyle, great sport
Why transform Streetwise?
Existing quality service, with strong local brand and potential to grow
Opportunity to do it differently Empower staff to have a greater say in their
destiny Retain social values, but with a more
commercial approach Greater freedoms to make decisions, trade,
market and innovate Develop the brand and services
Rushcliffe – great place, great lifestyle, great sport
How? – My perspective
Established cross party member group – overseeing the review:
Appointed Cabinet Member to lead Workshop to identify Members’ individual strengths
and commercial experience Member development programme e.g. social
franchising & business case assessment Addressing Member concerns – becoming more
commercial Portfolio holder briefings
Rushcliffe – great place, great lifestyle, great sport
How?
Review explored options of reducing costs, generating income or ‘doing things differently’
High level of staff engagement in process
Phased approach with review gate at each key stage
Rushcliffe – great place, great lifestyle, great sport
The journey so far
Identifying the skills and knowledge gaps Getting the right advice Establishing the governance structure Stakeholder engagement and support Changing the culture Developing the offer Testing the concept - dipping our toe in the
market
Rushcliffe – great place, great lifestyle, great sport
Streetwise Evolution
Step 2 Social Enterprise
Other clients
Other clients
Rushcliffe BC
Step 1 Council Enterprise
Rushcliffe – great place, great lifestyle, great sport
Proposed Business Model
Step 3 Social Franchise
Franchisee
Other clients
Other clients
Other clients
Franchisee
RBC FranchisorBusiness
Unit
Rushcliffe – great place, great lifestyle, great sport
Conclusions
At present our key focus is on…
Workforce challenge – culture and Ts&Cs Procurement challenges Local economy – opportunity to grow Element of risk and reward for the Council Council – secure financial return?
We’re excited about the potential to do something different and show other councils opportunities to develop.
Rushcliffe – great place, great lifestyle, great sport
Questions
Any questions?
Rushcliffe – great place, great lifestyle, great sport
Discussion
Discussion topic:
• What are the key issues for councillors when considering alternative service delivery models?
• 10 minute discussion in your groups, followed by feedback
Rushcliffe – great place, great lifestyle, great sport
Discussion
Discussion topics:
• How are you driving innovation and development within your authority?
• 5 minute group discussion followed by feedback
Commercial ModelsMutuals Programme
Presentation to East Midlands CouncilsWednesday 10th July
William BurgonPolicy and Commercial Advisor, Cabinet Office
Commercial Models - Mutuals Programme58
Commercial ModelsMutuals Policy
The Coalition Programme for Government made a clear commitment to new forms of organisations delivering public services
Commercial Models - Mutuals Programme
“We will support the creation and expansion of mutuals, co-operatives, charities and
social enterprises, and enable these groups to have much greater involvement in the
running of public services”
Commercial Models - Mutuals Programme59
Commercial ModelsMutuals Definition
Although the sector has varying definitions, a public service mutual has three key characteristics
Commercial Models - Mutuals Programme
Commercial Models - Mutuals Programme60
Commercial ModelsMutuals Numbers
The number of public service mutuals is growing rapidly, with many more in development
Commercial Models - Mutuals Programme Probation
9 70 120
Q4 2010 Q2 2013 Projected
Commercial Models - Mutuals Programme61
Commercial ModelsMutuals Sectors
Mutuals are operating in a range of sectors, delivering services from the front line to the back office
Commercial Models - Mutuals Programme Probation
Adu
lt Le
arni
ng
Community Learning
Libr
arie
s
Health
Social Care
Soc
ial W
ork
Fire
& R
escu
e
Education
Children & Youth
Leisure
Hou
sing
Community Safety
Environment
Sch
ool S
uppo
rt
Commercial Models - Mutuals Programme62
Commercial ModelsMutual Sectors
Commercial Models - Mutuals Programme
The growth in scope has been explosive, and developing projects will further broaden the services offered by mutuals
Commercial Models - Mutuals Programme63
Commercial ModelsMutuals Benefits
Mutuals deliver a number of benefits which improve outcomes for staff, for commissioners, and for citizens
Commercial Models - Mutuals Programme
Commercial Models - Mutuals Programme64
Commercial ModelsWhat We Do
Commercial Models - Mutuals Programme
Our work is designed to inform, guide, and support public sector staff and parent bodies along their journey to mutualise services
Commercial Models - Mutuals Programme65
Commercial ModelsMutuals Support Programme
Commercial Models - Mutuals Programme
The Mutuals Support Programme provides a comprehensive package to help at every stage in the journey
Exploration Planning Development
Website & Hotline‘One to Many’
Training‘One to One’
Funding
Ambassadors & Mentors
Commercial Models - Mutuals Programme66
Commercial ModelsMutuals in Action
Commercial Models - Mutuals Programme
A number of mutuals have already recorded impressive results, and the evidence base continues to grow
CECS SEQOLSocial
adVentures3BM
8% savings last year
£3m new business in last 12 months
Staff innovation resulted in iPad deployment
First mutual joint-venture in wider public sector
Combines public service ethos and private sector expertise
4% increase in nurse visits per month
12% savings in first year
Building network with local VCSE providers
262% growth winning RBS SE100 award
Expansion into new and diverse service areas
20% fall in absenteeism cost
Commercial Models - Mutuals Programme67
Commercial ModelsMutuals in Action
Commercial Models - Mutuals Programme
These independent businesses are delivering significant improvements in productivity, driving down staff absenteeism
Staff from Central Essex Community Services (left) and Central Surrey Health (below) at work
Commercial Models - Mutuals Programme68
Commercial ModelsMutuals in Action
Commercial Models - Mutuals Programme
They are also growing rapidly, both in terms of staff size and turnover, whilst delivering significant improvements in user outcomes
City Health Care Partnership CIC staff at work
Commercial Models - Mutuals Programme69
Commercial ModelsMutual JVs
Commercial Models - Mutuals Programme
Mutual joint-ventures present another take on the model, and are already successfully delivering core services in a number of sectors
• 3BM is the first mutual joint venture to spin out of local Government.
• They have entered into a partnership with Prospects, the education employment company, bringing benefits to both sides.
• By combining the public service experience and ethos of 3BM’s staff with Prospects’ capital and business expertise, 3BM is leveraging the best of the public and private sectors.
• This means both parties can access skills and resources they would otherwise lack, enabling 3BM to provide a suite of high quality services to schools, including financial management, IT, and building development
• In spinning out, the local councils will see £1million in savings over the next four years.
Commercial Models - Mutuals Programme70
Commercial ModelsFind Out More
Commercial Models - Mutuals Programme
Click through to the Mutuals Information Service, call the hotline, and follow us on Twitter
Online
mutuals.cabinetoffice.gov.uk
Hotline
0845 5390 543
@mutualsgovuk
Commercial Models - Mutuals Programme71
Commercial ModelsQ&A
Commercial Models - Mutuals Programme
Q&A
Engaging the workforce
Adam Barker Local Government Association
10.7.2013 www.local.gov.uk
View from employees – CIPD surveyCIPD Spring 2011 Employee Outlook Survey – public sector
results
• Public sector overall job satisfaction down from 42% to 38%
• For larger employers overall satisfaction was at 26%
• 30% of public sector workers think its likely they will lose their jobs and are the least likely of any sector to think they’ll get a new job
• 45% of public sector workers say they are under excessive pressure at work
• Trust in leaders and senior managers continues to decrease
www.local.gov.uk
New models of service delivery and employee engagement
• “The most important point is that mutualisation of public services can work incredibly well – staff are enthused, there is more innovation, better ways of working and increased efficiency.”
• Professor Peter Marsh vice-chair of the Cabinet Office's mutual's task force
Some of the characteristics of successful social enterprises
• Staff empowerment in decision making and governance
• Commitment to social mission
• Reduced absenteeism
• Responsibility
• Lower staff turnover
• Enthusiasm
Why bother engaging staff who are leaving the organisation?
• Well managed change sends positive message to all staff
• Will improve , performance, reduce costs and ultimately improve quality service delivery
• Valued employees will be retained in new organisation
• Council will need to work collaboratively with new organisation so engaged high performing employees are critical to an effective ongoing partnership.
Barriers to effective engagement in change process
• Clear Vision developed and shared by Councillors and officers-Strong clear leadership-70% of major change programmes fail (CIPD) this is a critical feature of success
• Managers get too far ahead of staff in the ‘marathon’ of change
• Clarity• Communication• Link short term action to long term vision
Resistance to change is a natural human response
• Beckhard’s law:
• Dissatisfaction x Vision x Steps forward > Resistance
So what can help? An inclusive approach
Help people feel involved in and responsible for aspects of the change
What works? An individual approach
•Don’t take criticism personally!
•Be patient and pay attention
•Discuss implications
Adapt your leadership to what individuals need from you at each point of their change journey
•Clear explanationfor change and a vision of the future
•Allow others to take responsibility and control
•Encourage and coach
•Exchange feedback
•Encourage risk-taking
•Prepare to move on
DENIAL
ACCEPTANCE
ANGER & BARGAINING
MOVING ON
Key messages for successful engagement
• Ensure spin out proposal is viable and well thought through-internal mechanism for evaluation-What are you selling + who will buy?
• Consult early with staff and TU’s• Listen + adapt• Identify concerns and respond • Be Honest• Promote opportunities
Why do it ?
• Margaret Elliot OBE
• Founder Sunderland Home Care
• “Workers are valued and feel part of the organisation; people participate and are listened to. They have an actual stake in the organisation which in return ensures commitment, commitment, commitment!” leading to high quality service provision
Event Round Up and Evaluation