Comprehensive Performance Assessment

Self Assessment of Hampshire County Council's

Capacity for Improvement

`We shall continue to provide high quality services with sound finance at a relatively low cost to the council tax payer of Hampshire.'

Cllr T K Thornber, Leader of the County Council,

2002/03 budget speech

Context

Hampshire and its county

Hampshire County Council is a large, dynamic and successful authority. The county of Hampshire is also large, dynamic and successful but this overall appearance of affluence masks real problems of relative deprivation and vulnerable communities.

Hampshire is the third largest shire county in population terms with 1.25m residents and over 500,000 households and is geographically large, covering 3680km^2. . It is a diverse county with a mix of significant urban and extensive rural areas. Although less than 10% of the county is urban, 87% of the population live in urban areas with major settlements at Basingstoke, Andover, Winchester, Eastleigh, Farnborough, Aldershot, Gosport, Fareham and Havant. 90% of the county is classified as rural with significant areas which are the subject of national and international environmental designations, including the proposed new National Parks for the New Forest and South Downs.

Although not within the administrative area of the County Council, the relationship between the port cities of Southampton and Portsmouth and the rest of the county as a hinterland has a significant effect on transport connections, employment and travel to work issues, housing and economic needs.

Population

Overall population is forecast to grow between 1.2% and 4% by 2011. The number of households is also expected to grow by between 6.3% and 10.2% over the same period. The age profile of the population is similar to the national average, but whereas younger age groups are expected to decline, a growth of 20.9% is expected in the over 85 age group. There is a relatively low minority ethnic population, compared to the national average, at 1.3%.

Pressures for development arise from the predicted growth in the number of households and associated activities, including traffic congestion, and the aim is to maximise the use of urban areas to meet these, minimising the use of green fields. There are also increasing pressures on the match between the location of school pupils and the provision of school places and the expected growth in the older population leads to higher demand for social services.

Overall the county is prosperous with house prices higher than the average for the rest of the South East and 85% of housing in the private sector. Earnings are generally slightly higher than the national average, with a GDP of £13,200, and unemployment levels are low at 1.4%. This produces difficulties for recruitment and retention for all levels of staff and pressure for affordable housing. This affluence, however, masks significant areas and groups of people within the county that are more vulnerable. Based on the 2000 Index of Multiple Deprivation, the 10% most deprived wards in Hampshire all fall within the top 40% nationally and 5 of the top 10 deprived wards are within the top 20% nationally. These are areas such as Gosport and Havant in the south of the county and Aldershot in the north. These areas tend to have lower earnings levels and higher unemployment, typically 2.3% and 3.2 % in Gosport and Havant respectively.

As well as areas of urban deprivation, the county's extensive rural areas also bring pressures in terms of social inclusion, transport, affordable housing, maintaining the rich diversity of the county and the future of agriculture.

Transport

Hampshire has a major motorway and trunk road network (M3, M27, A31, A36 and A3), a regional airport and a major rail infrastructure linking the south coast and the major centres of London and the Midlands. The influence of the ports of Southampton and Portsmouth is significant for the pressures on these road and rail networks and this currently includes the proposal to develop the port of Southampton at Dibden Bay which has implications for both transport networks and environmental issues. Traffic growth is predicted to be up to 50% by 2020 and pressure on the transport system, especially in the south of the county, has led to the need to consider innovative solutions such as the proposed South Hampshire Rapid Transit System at Gosport.

Economy

The Hampshire economy generally is worth some £16.3bn and, excluding London and Manchester, this makes it the second largest shire economy in the country behind only Surrey. There are significant differences within the county with earnings higher in the north and unemployment higher in the south. The north of the county is influenced by its proximity to London and the effect of commuting. The overall GDP per head, at £13,200, reflects the resident population rather than the number of jobs in the area and 33% and 35% of jobs in Portsmouth and Southampton respectively are filled by Hampshire residents. Hampshire also has strong links with the armed forces and the Ministry of Defence which, as well as having significant land holdings in the county, is also a major employer. This has led to pressures on education and social services from service families.

Public opinion

Public opinion research carried out over the last 3 years has highlighted issues of concern to local residents and communities. Public opinion is tracked every three years through a residents survey and the recently established Citizen's Panel also looks at community issues in preparation for the development of a community strategy. The 2000 Best Value User Satisfaction survey showed a very high level of satisfaction for all key BVPIs and an overall satisfaction level of 73%. The analysis suggests however that the challenge will be to maintain this high level of performance in the medium term and to introduce robust targets to increase performance.

The survey demonstrated that in spending terms the priorities were transport, services for older people, pavement and road maintenance and facilities for young people, should more resources become available with a clear emphasis on the need to communicate with the public what is being done. Additional research, aimed at specific groups in the community, particularly residents in the traditionally `hard to reach' groups - ethnic minorities, physically disadvantaged, homeless and socially excluded young people and the elderly, emphasised that the lack of facilities for young people and poor public transport provision further excludes minority groups from opportunities for work and social contacts.

The 1999 MORI residents survey showed high levels of satisfaction with services such as libraries, primary and secondary schools, recycling and adult education and identified services rated as of high importance but with low levels of satisfaction as being dealing with young offenders, facilities for young people, local bus services, services for the elderly and disabled and road and pavement maintenance. Recent results from the County's Citizen's Panel, carried out in November 2001, again indicate that public transport, traffic and facilities for young people are priority areas and the results provide useful information for community strategy development highlighting crime, health and hospital services and affordability of housing as key issues for residents.

A recent survey of businesses showed that 90% considered Hampshire to be a good location for business with concerns over high property and labour costs and problems associated with the high cost of living in the county including recruitment. Skill shortages and a perceived lack of community links were also raised.

Political context

Hampshire is a two tier area for local government and has very active Parish and Town councils in most areas. There are 11 District Councils of which 6 are Conservative controlled, 2 Liberal Democrat and 3 have no overall control or a coalition. 7 Hampshire districts are due to hold elections in May 2002, partly due to boundary changes. Also within the geographical area of Hampshire are the Unitary cities of Southampton and Portsmouth, both Labour controlled. There is also the Hampshire Fire and Rescue Service, which is a combined authority for Hampshire, Southampton and Portsmouth and Hampshire Constabulary which covers the two cities and the Isle of Wight as well as Hampshire. The development of good working links with the district and unitary authorities through the Hampshire and Isle of Wight Local Government Association has been held up as an example of best practice in managing a complex political structure and reflecting the geographical remit of other public sector bodies such as health. This network has helped in the development of Local Strategic Partnerships and the preparation of community strategies. The regional context is also becoming ever more important.

Organisation

Hampshire County Council has 74 elected members following the election in 2001 when voting turnout was 73%. The County Council is Conservative controlled and the breakdown is Conservative 46, Liberal Democrat 19 and Labour 9. The County Council introduced a Cabinet with Leader structure in September 2001 with 9 Cabinet members covering the main services including Community Development and Economic Development. There are 5 Policy Review Committees of 24 members with the role of policy development, scrutiny and best value to support the main Executive members. The County Council also has a Standards Committee and a Regulatory Committee.

The County Council's budgeted gross revenue spending in 2002/03 amounts to nearly £1.2bn together with planned 3 year capital spending programme of around £.5bn. It employs nearly 33,000 people, including part time staff. The County Council is a relatively low spending authority, with an SSA per head in the lower quartile of County Councils, its actual spending level in excess of SSA being just outside the lower quartile and its Council Tax in the lower quartile in 2002/03. This is despite exceptional waste management budget pressures from having entered into an innovative PFI contract for the delivery of modern integrated infrastructure, which results in spending on EPCS services being more than 70% above SSA.

The County Councils services are provided by 9 main departments: Social Services; Education; Environment (including Planning and Surveyors); Recreation and Heritage; Property, Business and Regulatory Services; Personnel & Training, Treasurer and Chief Executive. There is a Corporate Management Team, lead by the Chief Executive and comprising the 8 Chief Officers for the main services.

The County Council has strong international links and runs an office in Brussels, alongside the SEEDA Regional Office, in partnership with West Sussex and the Isle of Wight. The County Council is a member of the Assembly of European Regions and the Conference for Peripheral and Maritime Regions. Long terms partnerships have been developed with Lower Normandy in France, Bizkaia in Spain and New Hampshire in the US. Over the last ten years the County Council has participated in and led a number of innovative projects in the transport, environmental and tourism fields.

Response

Operating in this context, the County Council has a clear vision of its leadership role in relation to longer term issues such as climate change, natural resource management, traffic congestion and recognises its role, along with the public and other agencies, in trying to influence life style change. This vision has been shared with other local authorities, helping to create an integrated approach to the development of a community strategy for Hampshire.

Looking at the medium and shorter term, Members of the Cabinet and the Corporate Management Team have identified key themes and actions they wish to achieve over the course of the administration in response to the vision and based on the extensive programme of research. These form the basis for the County Council `s Corporate Strategy and the framework for the recently signed Public Service Agreement. These main themes are: maximising life opportunities, achieving economic prosperity, building strong and safe communities, stewardship of the environment and improving services and supporting staff.

The County Council has a Corporate Sustainable Development Strategy which highlights issues of social inclusion and community engagement, protection and enhancement of the built and natural environment and management of natural resources. The County Council also has an IEG statement which sets out the County Council's commitment to improving access to services and to give a stronger focus on the needs, aspirations and choices of residents.

The County Council's PSA is a commitment to give priority to providing life opportunities for vulnerable groups and raising the quality of life and access to services across the county. In particular providing support to children and their families and those looked after by the council, better opportunities for young people to fulfil their potential and become active citizens and real choices for the elderly.

In order to deliver on these commitments, the development of its leadership role is a priority for the County Council. Building capacity by using its size as an asset, being prepared to take calculated risks, making best use of innovation and the mixed economy approach to service delivery is a key building block.

One of the most important building blocks of this capacity is the development of strong partnerships, both through existing inter-agency working and the development of new partnerships. The added value of these partnerships, including the ability to maximise income from other sources, is a key part of the County Council's strategy. The County Council is also working with district council colleagues to build an effective network of Local Strategic Partnerships as the basis for developing a Community Strategy.

The County Council has a strong track record of partnership working across all services including the association for the County, District and Unitary Councils in Hampshire and the Isle of Wight (HIOWLA) and an agreed framework for working with voluntary and community organisations through the Hampshire Compact. Innovative service based partnerships including, for example, Project Integra for waste management, the South Hampshire Rapid Transit System public private partnership and the developing public service voice and data network for the whole community (Hampshire Public Services Network) are a key to the County Council's approach along with developing joint working with the NHS and building on the successful management partnership with schools .

Full details of the County Council's approach are covered in the main document.

What is the Council trying to achieve?

Mission

At the heart of the council's operations is its mission to ensure the best possible public services for the community of Hampshire at the lowest possible cost.

A comprehensive set of organisational values underpin the development of policies and plans and foster pride in representing and working for Hampshire County Council.

Priorities

Promoting participation in learning

Education is a top priority for the council, reflecting resident's views, government direction and the development of core skills required by business and other sectors While renowned as high performing and with an Ofsted report providing evidence to support the reputation, the education service recognises the need to improve results in respect of supporting schools in special measures, school attendance and access to nursery education.

Stretching targets have been set within the Corporate Strategy and the local PSA to improve pupil achievements both in overall GCSE results and specifically by increasing standards of literacy, numeracy, science and Information and Communications Technology for 14 year olds.

The council faces challenges arising from the highly mobile Ministry of Defence population and the difficulties faced by families living in areas of relative deprivation, with the resultant impact on attendance, behaviour and attitude to learning. To promote participation in learning, the council is focussing support for improving GCSE results in Aldershot / Farnborough, Andover, Havant and North Basingstoke and on reducing unauthorised absences at secondary schools in Andover, Havant and North Basingstoke.

The PSA has enabled an exciting package of initiatives to be developed for Gosport schools, which are particularly hard pressed. These include alternative approaches to developing the curriculum, mentoring to challenge disaffection, family support and financial support.

Coupled with a high demand for childcare in an area of generally high employment and a recognition of the benefits of early education, the council pioneered the development of a joint education and social services Unit for Early Years Development and Childcare. Winning national renown, the unit has secured funding to achieve its overall objective of a free nursery place for all 3 year olds by 2002/03.

The council's commitment extends to the environment in which children learn and the provision of school places where they are needed. The recent New Deal allocation for schools supports the council's own extensive programme of school refurbishment and building - both to meet increased demand and in response to unforeseen disasters caused by fire and flood.

The council has taken a realistic view of its capacity to support lifelong learning and redressing the balance where there are skills shortages in the council. By supporting the Learning and Skills Council and participating in the Lifelong Learning Partnership, the council is best placed to notice where it might contribute to their objectives.

Learning extends beyond schooling and the council maintains a commitment to cultural and recreational services. A current priority is to develop a culture of innovation within the Library Service given its role as a front-line service and of high importance to a large number of residents. Judged in 2001 by the Best Value Inspectorate as a good service but unlikely to improve, immediate steps have been taken to address this perception to the point where re-inspection is currently invited on the premise that a different judgement would result.

Protecting and caring for vulnerable people

The council has worked with the Local Government Association, the King's Fund, the Association of Directors of Social Services and Treasurers to highlight the nationally recognised pressures on social care funding. Social care services remain a high priority and an additional £3.5 million has been added to the budget in recognition of the demands being made by an aging population and the priorities identified through market research and Member representation.

The Social Services Department has mapped the requirements of national and local imperatives and set out its position in a four year development plan `New Directions', which takes account of the findings of the Social Services / Audit Commission Joint Review in 1998.

A key priority identified within New Directions, the Corporate Strategy and the PSA and reflected in market research is the improvement of services which promote independence and personal development. The approach recognises the council's below average performance in supporting older people to live at home and the need to prevent unnecessary hospitalisation or institutional care. However, it is the most frail and vulnerable who have first call on resources, at the expense of lower levels of care, such as luncheon clubs. Opportunities are being taken to address the shortfall in resources through specific initiatives, in this case, `Supporting People' mechanisms.

A further priority area is to develop convenient, accessible, user-centred services. `Social Service Direct' provides a 24 hour, 7 day per week county-wide service to help and signpost callers to other services. The council has also won a National Health and Social Care award for its work in extending its pioneering Direct Payments Scheme from disabled people under 60 to older people.

The council's plans for health improvement and tackling health inequalities are set out in the Health Improvement Programmes. Priority areas for Hampshire include tackling the level of delayed transfers of care from hospital, especially among the elderly occupying acute beds. Joint work has led to the early achievement of targets.

In an economy where private nursing home owners can achieve a greater return on their investment by selling their homes to property developers and where employment costs are high, the council faces severe challenges to its strategy for a mixed economy of residential care. Coupled with new national standards for residential care, the council has reinvested £7.1 million from its sale of surplus land and buildings into refurbishing its own homes and is considering new approaches to addressing the increase in demand.

The council places a high priority on its parental responsibility for those children it looks after and will not be satisfied until they have the same life opportunities as other children. Recognising the importance of a stable home life, the council has set challenging targets through the PSA for the number of children who are in permanent placements. The Family Placement Scheme is a key factor in the council's innovative approach to meeting the demand for placements which cannot be met by formal adoption and fostering alone. Following this theme, the council has also set challenging educational targets for these children, despite their higher than average performance to date.

Achieving economic prosperity

The council has recently reviewed its priorities for achieving economic prosperity through a comprehensive cross-cutting review of all relevant activities. The council has concluded that it has a vital leadership role in affecting economic prosperity and that while many factors influence economic success, a powerful and strategic authority can make a difference.

This role is already acknowledged in the Corporate Strategy but the review highlighted ways in which the council could be more proactive both in supporting overall economic performance and in intervening to help improve areas with problems.

A further outcome will be to improve the way in which the council communicates with the business community and recognises its needs. A benefit resulting from the review process has been greater integration with other key service areas and a heightened awareness across departments of issues arising from Hampshire's economic diversity and the opportunities to address them.

Building strong and safe communities

The council has moved its community leadership role to centre stage as a separate aim of the Corporate Strategy. Focusing on listening and responding, representing and influencing, making difficult choices and encouraging participation, the aim is to be fully inclusive in engaging communities to develop services that meet their needs.

The network of 11district level and the all-inclusive county level Local Strategic Partnerships provide a forum within which the council exercises its community leadership role, including the more difficult task of brokering agreement between organisations to culminate in Community Strategies. The LSPs are fast becoming a focus for co-ordinating all key partnerships. Particular efforts have also been made to engage young people in local democracy through establishing a Youth Council and to building local community capacity through supporting Community Associations.

This modern role is supported by the Council's wide-ranging experience of a mixed economy of service provision and development of innovative partnerships and other arrangements to develop, manage and deliver services.

Stewardship of the environment

The council sets out a clear statement of its long-term view for `shaping our surroundings' within the Corporate Strategy. Recognising the inherent difficulties in influencing lifestyles, the council has started by setting targets for its own performance as a role model within its Sustainable Development Strategy and its groundbreaking Corporate Water Action Plan. An integrated approach to land use planning also takes the long term view on meeting travel needs and achieving a significant reduction in traffic growth, supported by both an Urban Living Strategy and an integrated approach to rural issues.

Travel and transport

The development of a Local Transport Plan acclaimed as excellent by the DTLR, has resulted in £x million. This will support the council's priority of halting the deterioration of the road network, reflected in the corporate strategy and the PSA in response to strong public demand and professional concern about the backlog of road maintenance. Recognising the need to develop capacity for a vast work programme, the council is moving forward with its plans to amend its agency agreements with district councils and to reinvest in a county-wide term maintenance contract, which will also deliver significant economies of scale.

The council has already achieved its interim target set in the PSA for the reduction of fatal and seriously injured road casualties, through a mix of engineering solutions, raising public awareness and a wide ranging road safety training programme. Some of the innovative solutions include older driver assessment, refresher training for employees who drive `on the job' and an inter-active web-site, as well as an increased use of safety cameras.

Improving travel choices is a key plank in the move to reduce traffic congestion and air pollution. Responding to strong local demand, from residents generally and as a potential solution to problems faced by specific groups, the Council has used the PSA to prioritise its ambitions for increased bus use. Recognising the difficulties inherent in influencing a service which is neither provided nor commissioned by the council, it is confident in its proven capacity to develop Quality Bus Partnerships with the private sector. To complete the approach, the council has long-term targets to increase cycle use and walking.

Transport Centre of Excellence quote needed

Natural Resource Management

The council has long since prioritised waste management with significant success through its leadership of Project Integra. Having achieved top quartile performance for recycling and recognition through the Beacon Council scheme, the council is now pioneering a holistic approach to natural resource management with its community partners, which will result in sustainable use of materials, energy, water and soil to be measured through the PSA by the diversion of household, commercial and industrial waste from landfill.

Managing our resources

The council has a clear statement of financial policy which sets out financial management priorities and has resulted in year-on-year achievement of balanced budgets, despite the expectation and realisation of significant change. Currently, the council faces the challenge of having the second lowest SSA allocation for all county councils and yet operating within a high cost area. Yet in this context the council has reconfirmed its commitment to maintaining the momentum for efficiency gains, through the PSA, knowing that this approach has enabled the council to reinvest money in priority areas.

"Our overall conclusion is that this has been another successful year for the Council which has again shown its ability to adapt to new challenges and a new political structure, whilst at the same time ensuring that the delivery of high-quality frontline services is maintained within continuing budget pressures."

District Audit, Annual Audit letter 2002/01

Residents are regularly consulted on the level of tax increase they would support. This year the results were balanced with the SSA allocation to arrive at an increase of 7.9% - comparing with a county council average of 9%. As a result the council has implemented a budget which will spend 6.6% more than SSA, although containing the Band D council tax at £734 pa, one of the lowest nationally.

Budget Strategy:

To make adequate provision for pay and price inflation

To meet commitment from the waste contract

To passport SSA cash increases for Education and Social services

To absorb pressures to avoid cuts in services

To continue to seek efficiency improvements

To maximise income wherever possible

To maintain prudent but minimum balances

Cllr T K Thornber, Leader of the County Council, 2002/03 budget speech

The Council aims to respond comprehensively to the national agenda, while tailoring services to local priorities as far as is practical. While the Capital Strategy is able to respond more flexibly to changes in priority, the revenue budget is constrained by the need to maintain existing services and to respond to the requirements of 40+ statutory plans.

Balanced decision making

The cycle of strategic and budget planning moves the Corporate Management Team and the Cabinet through a process of informed decision-making, enabling them to compare competing bids for resources. Over the last three years the council has developed extensive research mechanisms and discussion forums which enable the council to hear and respond to community, staff and member views. The development of a performance culture has enabled these all important perceptions to be tested with evidence from the results achieved.

National priorities with ring-fenced resources have reduced flexibility to respond to local priorities, although these continue to be identified and addressed where possible. The local PSA has provided an opportunity to take account of the greatest local needs and has been framed to differentiate targets and resources within local communities.

While keeping its focus on the top priorities, the council channels the enthusiasm, creativity and commitment of its staff into attracting additional funding sources or development of innovative partnership arrangements which enable lower priority initiatives to be taken on board, albeit within a longer timescale.

Maintaining the focus

The council maintains its focus on its priorities by the continual development and monitoring of key plans and strategies. At the corporate level these are:

· The Vision which provides political leadership through this aspirational, long term vision of priorities, within the context of the Community Strategy

· The Corporate Strategy which identifies and prioritises actions needed to deliver the Vision

· The Hampshire Public Service Agreement, which pulls together a basket of stretching targets, which overall aim to address equality of opportunity for Hampshire's diverse communities, by targeting vulnerable groups, which exist in an otherwise affluent county.

PLEASE NOTE THAT BEYOND THIS POINT THE DOCUMENT IS STILL IN A FAIRLY `RAW' STATE AND HAS NOT YET INCLUDED ALL THE INPUT RECEIVED FROM OFFICERS, NOR A CHECK THE LOGIC OF THE ARGUMENTS PUT FORWARDHow has the council set about delivering its priorities for improvement?

Developing capacity

Members

The Council introduced a new constitution in September 2001, aimed at streamlining decision-making and breaking down service barriers. This is supported by protocols for the new arrangements and job descriptions for cabinet members. Six months later a Lessons Learnt Workshop Workshop has been held to identify and address any issues about the effectiveness of the new arrangements.

A feature of modern working has been the joint member / officer events to facilitate decision-making, supported by external facilitators to provide challenge and stimulate debate:

· Joint CMT / Cabinet awaydays, supported variously by Office for Public Management, Price Waterhouse Coopers and Capita

· Best Value Year 1 Lessons Learnt Workshop, chaired by West Sussex

· Informal workshops as part of Best Value Review process

In addition to existing post-election induction, extensive Best Value training and topic specific sessions, a member development programme has been delivered in partnership with South East Employers, covering:

Overview and Scrutiny

Partnership and Community Engagement

Finance for Councillors

Effective Member / Officer Relationship

Sustainability and Equalities

Ethics and Probity

Best Value will be revisited once the new government guidance is received.

Member participation in training is not consistent and further consideration is being given to approaches, which take account of the range of pressures faced by members who have other commitments.

The council is currently considering new powers of NHS scrutiny and holding a seminar for Members, aiming for formal consultation in the autumn.

Officers

The council is working to a People Strategy to achieve its stated aim of an effective and motivated workforce. Key elements include:

· Achievement of Investors in People accreditation across the whole authority by July 2002. Already in place in most departments and building on an existing performance development strategy, IIP has ensured all staff are aware of their individual goals and the part they play in achieving the corporate aims.

· The council's training and development arm, provides and commissions development opportunities for staff and managers. This is supported by training needs analysis, carried out as an integral part of performance development reviews and supplemented by ring-fenced resources aimed at delivering corporate priorities, eg health and safety; Best Value; management development.

· The Success Through People programme is developing the role of Departmental Management Teams in corporate decision-making and has covered to date: Corporate Review outcomes; Corporate Strategy revision; Organisational Values; Creativity and Innovation

· Five core competencies have been identified as the basis for a new management development programme: Impressing customers; Working together (partnerships); Making best use of resources; Embracing change; Achieving quality results.

· The Pay and Benefits strategy will complete the work begun with Single Status, leading to clear evaluation of jobs and linking to the management competencies.

· Workforce plans

The Scheme of Delegations within the Constitution is not consistently understood and applied, with boundaries between member / officer accountabilities needing some work to ensure an appropriate split between policy and management decisions.

Innovative schemes are in place to improve recruitment and retention of staff - but they may not be enough to resolve the underlying problem.

Organisational

Organisational structures are constantly under review to assess how they support both effective communications and delivery of changing priorities. Both Education Department (at LGR) and Social Services Department (2001/02) have adopted a more centralised approach in order to align their resources with national initiatives and to ensure clear lines of accountability between operational staff and organisational priorities. Appointments to the Recreation and Heritage Department are aimed at modernising the approach in traditional service areas. Changes are planned to the organisational structure of the Environment Grouping to encourage greater integration of transport and land use planning services and to lead the environmental agenda.

Partnerships

The Council manages a complex array of partnerships at both the strategic and operational levels, with outcomes varying from joint decision-making to co-delivery of services. Management arrangements range from formal SLAs to less formal agreements and the development of new partnerships to meet changing requirements or new initiatives.

In addition the council participates in a wide array of networks, which facilitate a two-way flow of information and ideas:

· Health and Social Care: Executive Member for social care meets regularly with PCT Chairs and Chief Executives; annual health partnerships seminar; Cabinet considers impact of health infrastructure and service changes on HCC residents and CC services

PERFORMANCE MANAGEMENT

The Council uses a two-pronged approach to ensure regular monitoring and fundamental review and applies this at all levels of the organisation.

At the strategic level:

· The Corporate Strategy is monitored annually and considers a number of checks and balances to make sure it is still relevant and on target: achievement of targets, leading to development of new targets; slippage against targets, leading to remedial action; changing external factors; input from Citizen's and Staff Panels. The results are recorded in an `Annual Achievements' report and published in the Best Value Performance Plan.

· A periodic Corporate Review is carried out using performance management tools, to ensure the Corporate Strategy is being effectively implemented.

At the operational level:

Improvements are underway to streamline and integrate all levels of plans more effectively, so that 2-way linkages are transparent and taken into account.

Departmental monitoring: SSD - audits and customer surveys

At the individual level:

Every member of staff has access to managerial or supervisory support on an ongoing basis, as well as the opportunity for annual review of performance and agreement over future targets and training needs.

Specific difficulties have been faced with systems to enable performance reporting, and these are being addressed both with IT and procedural solutions. The Best Value Steering Group is reforming and will have a wider remit to look at performance management generally and its role in improving services, with the aim of developing an agreed cycle of performance reporting and a single corporate improvement programme.

Planning

The Corporate Strategy has fulfilled a number of roles over time as the council has been at the forefront of developing a clear statement of targets for community-based outcomes. The separation of performance reporting, via the Best Value Performance Plan, and community outcomes, via the Community Strategy, is enabling its further refinement into a key management and medium term planning document. This will enable a more meaningful and direct relationship between the Corporate Strategy and the other corporate, departmental and individual plans it links with.

Work is underway at the corporate / strategic level to ensure the rationalisation and common understanding of the aims of key corporate documents. In addition, although the council already has a well-documented business planning process, the same audit report identified that it is inconsistently applied. Plans are in place to address this and to use the opportunity to incorporate other demands made on managers, such as for workforce plans, as well as integrating sound management practices, such as risk assessment and best value principles.

Value for money

The introduction of Best Value has led to an acceptance of the need to stand back, review and fundamentally challenge the way things are done and to develop innovative options for improving things. It has led to a strengthened performance management framework, which clearly distinguishes between processes for regular monitoring and for fundamental review.

The outcome has been an acceptance of the need to provide evidence for decisions, with options clearly identified and evaluated. Members and officers who have participated in reviews have recognised the benefits of the regime, while cautioning over the additional resources it has consumed.

Plans are being implemented to streamline and integrate the Best Value regime with other management activities, with the aim of improving the performance management culture. Elements of this approach are:

· A cross-cutting / themed review programme, that does not duplicate business / service planning and integrates with member policy review programmes.

· A revised business / service planning regime to encompass BV principles

· Development of robust target setting to ensure all key decisions are made with reference to Best Value principles and linked to key plans.

· A streamlined review process which focuses on outcomes and issues that need addressing

· A clear timetable of performance reporting, linked to the strategic and budget planning cycles.

Risk assessment

The District Auditor has praised the council's risk management approach in his management letter. A cross-departmental Risk Management Board exists which identifies the risks to business continuity inherent in existing plans and services. The council has a successful track record of self-insurance, which is reliant on an honest assessment of risk.

This approach is cascaded to the operational level, where it is evident in IT systems management (plans for business continuity at the millennium), individual health and safety risk assessment (particularly strengthened after an adverse HSE report) and risk assessments for vulnerable people in the council's care.

Performance development

As part of the IIP process, all members of staff have at least an annual performance review when their individual goals are set and performance against previous targets is monitored.

Communications

The Council is a large organisation with staff deployed in many locations throughout the county. A lot of reliance is placed on cascading information through team briefings. This mechanism can be imperfect and consideration is being given to supporting managers in identifying from the plethora of information they receive, which items should be cascaded. For this reason, the Internal Communications Strategy uses a variety of mechanisms to keep members and officers up-to-date:

The Council is currently piloting the use of IT for members to provide access to the intranet site on the same basis as officers. Copies of committee / cabinet reports are sent to local Members when items relating to their constituency are raised and each of the district level LSPs has a local Member represented.

What has the council achieved / not achieved to date?

Where the council is now

Hampshire is an ambitious, high achieving authority. 2000/01 results show the council to be in the top quartile of county councils for most BVPIs and provide evidence of a steady improvement over time in those areas where performance indicators have remained consistently defined. This extends to user satisfaction and other qualitative research, which also demonstrate top quartile performance, with an overall satisfaction level of 73%.

External assessment, including the LEA Ofsted in 2000/01, the assessment of the Local Transport Plan and the District Audit Management letter all report the council as high performing, both in terms of the outcome performance measures and the planning and monitoring processes in place. The two formal Best Value Inspections carried out to date (Passenger Transport and Libraries) assessed the services as `Good'. The judgement that the Library Service was Unlikely to Improve caused immediate concern and resulted in concerted actions and transfer of resources to address the recommendations.

Many council services have attracted external accreditation, such as CharterMark, ISO 9000 and Beacon Council status, as well as professional measurement, such as LEXCEL.

Best Value and other review initiatives have developed a self-assessment approach, validated by the use of robust quality management tools, such as the European Foundation for Quality Management Excellence Model and by external challenge. While the outcomes of many early Best Value reviews have been either incremental or plans to investigate further, rather than step change, there have been some good examples of improvements that have had measurable impacts:

· The transfer of the Blue Badge Scheme (disabled drivers permits) to an experienced financial assessment team has resulted in an improved customer interface and consistent application of eligibility criteria

· Spend to save initiatives have rationalised home to school transport provision, containing demand by £350,000 pa without reduction in provision

· Closures of social services residential care homes have been used to fund the upgrading of other homes meet new national standards.

The use of performance monitoring enables the council to be very clear about the areas for future improvement:

Support for schools in special measures

Pupils excluded from school

Access to nursery education

Support to help older and disabled people to live at home

Bus services

Condition of non-principal roads

Where the council wants to be

The council's short and medium term priorities are set out as described in the key documents outlined above. The council's further aspirations are:

· to be clear about its long term goals, especially in relation to those areas, where it has less direct impact but a potentially strong leadership role, such as climate change. The council has co-hosted three `Down to Earth' seminars and will use the outcomes to influence debate at the forthcoming Johannesburg conference. Closer to home, the council will be developing an approach to Natural Resource Management, converting waste into a resource and husbanding other finite resources.

· To maintain robust management systems and develop the organisational culture, which enable it to respond effectively to external change and to develop innovative solutions to known problems. In embracing continuous improvement, the council is honest in its assessment of its strengths and areas for development.

Barriers to achieving aims and priorities

Weaknesses

The council recognises the need to improve its performance data collection for some indicators. A notable example is the number of days sick per member of staff, where a gross error of double counting resulted not only in poor reporting but also undermined confidence in setting realistic targets. Motivation for improving the data collection springs from the increased reliance being placed on the information in service and strategic planning and on the development of comparative benchmarks.

Through developing performance management, the council is aware of the difficulties in devising outcome measures which accurately reflect priorities. This has led to an inherent weakness in target setting, which is beginning to be addressed by coaching and focused support, such as in the development of the PSA and in drafting service improvement plans.

Threats / constraints

Resources continue to be a major factor in curtailing significant development. The focus of development has been on maintaining the quality of existing services and looking for efficiency gains or income generation to fund improvement. A key example has been support for older people. While the council embraces the government aspiration to support older people to live independently in their own homes, resources are necessarily targeted at the most frail and vulnerable, who frequently require high dependency residential care. Given the cost and demand for such care in Hampshire, this provision consumes most of the available resources and constrains progress with support for independent living.

Hampshire is an action orientated authority, with a focus on achieving results. While this is a largely positive attribute, it raises issues about developing a culture where risk and experimentation are embraced and where underlying causes of problems are addressed, rather than the more visible symptoms. Successful culture change is a long term process, and these issues are currently being addressed by the leadership and management development programmes, internal communications strategy and improvements to the performance management framework . However, `soft skills' development is constantly under threat when an organisation is faced with unrealistic deadlines for change, which demand short-term results.

Potential solutions

Strengths

The council operates a devolved management structure, which depends for its success on a number of key building blocks to enable informed decision-making, and development of a wide variety of approaches. The process for developing strategies and guidance, partnerships and networks, is itself a strength as the council frequently establishes cross departmental or cross-organisational teams of stakeholders to address emerging issues.

Key building blocks for success not already mentioned, include:

· Clarity about the Policy Framework, which guides the operation of the new constitution to ensure consistent, open and transparent political decision-making.

· A Procurement Strategy, which embraces all variations of arrangements for service delivery and supports a mixed economy in order to maintain service standards while ensuring vibrant private and voluntary sector provision.

· Capital Strategy

· Performance Development Strategy - developed prior to best value, this provided a framework for performance management, setting out a model which linked individual, operational and corporate plans and targets

· An inclusive Consultation Strategy external Communication Strategy, focussed on informing and engaging local communities

· The use of `champions' to support and maintain the momentum of key strategies, (Sustainable Development, Equalities, Crime and Disorder, e-government, Urban Living Strategy

· Project management expertise to support major projects: the Enterprise Project to implement the new pay and personnel infrastructure systems, establishment of Best Value framework and health partnership projects.

· Self assessment: the development of performance management has led to a strong culture of self assessment and openness to external challenge. This is evident at the strategic level through the corporate review process and the integration of the outcomes into key corporate plans. External challenge has been a key theme of best value reviews and is sought both in terms of external stakeholder participation and the active encouragement of objective observers (academics, peers, `experts').

· A well-established internal network IT2000 and external website, Hantsweb, which support internal and external communications, knowledge management and with the capacity for long term development to support full e-government.

Opportunities

The government's change agenda is wide-reaching and the council has responded by embracing the underlying aspirations for improving public services. However, tight timescales have inevitably led to `initiative-specific' responses, which have resulted in a proliferation of improvement programmes, plans, networks or project groups. In recognition of this, the council has reformed its corporate Policy Unit with clear accountabilities for developing and improving corporate planning and performance frameworks. A key theme of this work has been the streamlining of activities and plans into a single, cohesive system. Integration has become the key driver, with twin aims of reducing duplicated effort and increasing motivation for those involved.

A further benefit of this review has been the need to focus on delivering `real outcomes' (service improvements that bring noticeable benefits to communities). Aiming for greater innovation and creative thinking as a foundation for delivering improvements, the council is developing and supporting processes which focus on clarifying outcomes and the barriers to achieving them, rather than a detailed examination of current performance. A current example is the assessment of effective consultation and public engagement in statutory planning and network management schemes. The council is developing an overarching approach to both meeting its statutory obligations and ensuring effective engagement over heavily technical and/or sensitive issues.

In the light of what the council has learnt to date, what does it plan to do next?

Achievements

In the face of the issues identified in the opening section, the Council has responded well at the strategic and operational level to deliver changing national priorities:

· Revised the constitution and developed a clear policy framework

· Instigated Local Strategic Partnerships as a firm basis for delivering Community Strategies

· Established the joint Early Years Development and Childcare Unit

· Supported high educational achievements for children leaving our care

· Delivered an integrated Waste Management approach - awarded Beacon Council status

· Reduced accidents and effectively maintained the road network in the context of continuing traffic growth

Further achievements flow from actions to address local issues:

· The council's magazine `Hampshire Now' has been successfully implemented with a track record of improving penetration to all households, good response rate to self-completion questionnaires and improving perceptions from focus groups. The magazine is being used as a vehicle not only for meeting statutory obligations to circulate information but also to raise the council's profile as part of an overall approach to engaging the community in local government.

· The Local Strategic Partnerships have provided a valuable forum for addressing the complexities and sensitivities which arise from two-tier local authority structures.

· Initiatives to support key workers in education and social care has substantially reduced the level of teacher vacancies.

· Recognising the need to attract county councillors who reflect the diverse population of the community, the member allowance structure has been revised to provide greater stability of income.

· Greater willingness to listen and learn as a result of surveys / BV etc

· The council was one of the first to develop joint Youth Offending Teams as part of its approach to supporting and developing crime, disorder and community safety strategies.

Lessons learnt

The council actively aims to learn and incorporates mechanisms such as the Corporate Review and Lessons Learnt Workshops to reflect on the success of its plans and policies. In an era of reducing resources and increasing expectations, the council has confirmed the wisdom of the 3 E's:

· Being effective ensures the council tackles the right priorities - hence a focus on consultation

· Being efficient means reducing duplication of effort, being open to new ways of doing things that focus on agreed priorities - and has led to the initiative to rationalise and integrate management processes and improvement programmes

· Being economical means looking for cost-effective service delivery - and has resulted in the wide-ranging variety of procurement arrangements

Continuous improvement, as the name suggests is a dynamic process. The council seeks to establish a clear framework and timetable for policy, planning and performance - in the knowledge that as soon as it is developed it will need to evolve to meet the latest changes.

Summary of External Accreditation

County Council - 6 departments have been accredited as Investors in People.

Information Centres awarded Chartermark for second time and received Guidance Accreditation Board Quality Mark

Treasurer - Student Support retained Chartermark, Pensions Services awarded Chartermark

Education Governor Services awarded Chartermark

Legal Services - LEXCEL accredited since 2000

Project Integra - Beacon status in 1999/2000

Audit Services - retained ISO 9000 registration

Hampshire Printing Services - achieved ISO 9002 accreditation and British Print Industry Federation Gold Award for Health & Safety

Consumer Advice Service - among the first in country to achieve Community Legal Services Quality Mark

Trading Standards - Department of Health recognition as best practice for Tobacconist Award Scheme aimed at reducing under age smoking

Hampshire Scientific Service - one of first UK laboratories to receive new accreditation for asbestos surveying (EN 45004).

Hampshire Music Service - diploma from National Music Council for `outstanding commitment' to music.

Library Service in Gosport, Fareham and Waterlooville - awarded Guidance Accreditation Board Quality Mark for Link2Learn.

Social Services - awarded National Health and Social Care Award for Direct Payments Scheme

Environment Department - named as one of 14 Centres of Excellence for integrated transport planning.

National Pilot schemes - Professional Development of new teachers, Connexions service for 14 to 19 year olds, Department of Health carer support scheme.

Key facts about partners