Peter Sloman

Chief ExecutiveOxford City Council

Oxford

• Population 151,000• Progressive politics- conservative free zone

(Labour, Liberal Democrats, Green Councillors)• 20% plus minority ethnic communities• Two Universities - 30,000 students • Large Teaching Hospital• Car production - BMW Mini Plant• Large science/research

economy• High levels of economic

and social inequality• History of militant trade

union activism from manufacturing past

UK Context• Labour Government until 2010

– Growing Demands placed on public services– Push for externalisation and shared services – efficiency/cost

reduction– Inspection and challenge of public services– Growth in funding and jobs– Central targets

• Coalition Government– 30% reduction in central funding in first 3 years– A further 30% to come– Attack on sector morale

• Chief Executives salaries• Role of political leaders• Trade Unions• Removal of functions e.g. schools• Push for externalisation and shared services

– Elimination of Inspection– Localism

Oxford Context 2007

• Poor relationships– Politicians / Managers– Managers / Trade unions

• Financial crisis

• Services all in-house delivery

• Poor service outcomes

• National pay bargaining

• High sickness/poor attendance

Oxford City Council 2007-2013Approach to Transformation

• Employee relationships key to coping with changing context for public services

• Taking the opposite approach from sector– Cutting jobs/protecting

jobs– Cutting services/

redesigning services– Externalisation/

in sourcing work– Commoditisation/

customer and community focus

Conditions for Change

• Unified and focussed political leadership• New managerial leadership• Change management

agreement with Trade Unions• Middle management/Skills

development• Performance management• Staff appraisal reviews• Communications• Sense of shared endeavour

– World Class City for Everyone

– Needs a World Class Council

Fundamental Service Review – 20:20• Service by Service :

– Starting with poor value for money

– Poor performance

– Strategically important

• 20% quality/performance improvement

• 20% cost reduction

• Involving workforce

• Based on a clear deal

– Good job security/rewards compared to market

– First class productivity and engagement

• City Works - waste example

• Leisure review

Sharing Rewards: Partnership Payment 2010

• Response to 2010 coalition cuts

• Pay freeze

• Freeze contractual increments in pay grades

• £400 annual partnership payments - subject to:

– Efficiency improvement

– Appraisal targets– Attendance

• Result: 25% cost reduction - 90% performance targets met

• Halved sickness - 14 days to 7 days

• Workforce reduction through natural turnover

A New Deal 2013

• Facing a new 30% cut in government funding making 60% in all now

• Next phase insourcing work and trading for income

• Five year pay deal outside national agreement

• Job protection• Below inflation rise

for five years• Continue partnership

payment but also apply conditions to pay rises

Overall Impact

• Real pay cut– Over period 2010-2013, 9% real terms pay cut– Over period 2013-18 further 6% real terms pay cut– 15% in total

• Job protected

• 20% improved productivity

• 10% income from profit from trading

• No cuts in services

• Workforce engaged in designing service improvement and with a stake in organisation’s success

• Cash available to invest in the City protecting 900 jobs in construction and supply in private sector

Learning from the Journey• Improvement political/managerial relationships and

shared vision is key for Leadership of culture change• Excellent workforce engagement and trust essential for

transformation• Based on shared values and objectives

– Protecting services

– Social justice – impact of the Council

– Protecting jobs

– Not privatising services

• Active dialog and constant communication/engagement• Confidence locally in Oxford’s new entrepreneurial local

state is based on partnership with its workforce• People will make sacrifices if there is clear, honest

leadership with shared interests at heart• Producer interests can be aligned with community

wellbeing