Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

1) Summary of Decision Area:

1.1. Cabinet considered a report at its meeting on 21 July 2008 on the proposed review of corporate services across the County Council and agreed that the scope and terms of reference for individual reviews be established and that further reports be presented to Cabinet. This report provides an interim progress report on each respective review and emerging issues.

2) Issues Covered in Report:

2.1. The terms of reference for each review, the Members and Chief Officers allocated to each review and their respective roles, and an interim progress report.

2.2. The report updates and provides Cabinet with an opportunity to comment on the direction of travel for each activity.

3) Recommendations:

It is recommended that:

3.1. The overall progress with the Corporate Services Reviews and the interim proposals highlighted within each review area are approved.

3.2. The organisation of the arrangements and capacity for the reviews be endorsed.

MAIN REPORT

1) Contextual Information:

1.1. The Cabinet at it meeting on 21 July 2008 approved the report Efficiency and Corporate Reviews - A modern business providing public services. The report authorised the Chief Executive to set out the scope and terms of reference for specific reviews, the use of independent consultants (if necessary) and to bring forward proposals for revised organisational arrangements consistent with the outcomes from the reviews.

1.2. Ten review areas have been identified and nine are now being actively progressed. The tenth review - Management structure for the central functions of the Council - will be completed once the emerging outcomes from the reviews are known. The nine currently being progressed are:

· Procurement

· Economic Development

· Democratic Services

· Property, Business and Regulatory Services

· IT Services

· Shared Services

· Legal Services

· Hantsdirect

· HR

Terms of reference for each review is attached at appendix 1.

1.3. Review Teams have been established comprising of senior managers from County Council departments. Each team has a review team leader, CMT sponsor(s) and a Cabinet member allocated to it. The Cabinet member and CMT sponsor is indicated below:

1.4. CMT sponsors are providing support, guidance and challenge to the review teams. Review Team leaders have met with Cabinet Members to provide an overview of the review and will keep them informed through the review process. Internal monitoring arrangements have been established to oversee progress on the reviews.

1.5. Reviews began during November and most have completed or are in the process of completing benchmarking exercises. Each review is also considering the following potential processes within their review area where relevant:

a) the opportunities for increased self-service

b) Better use of helpdesk/Hantsdirect

c) The opportunities for Shared Services in the function

d) The opportunities to manage transactional services collectively

e) The benefits from implementing centralised FM

f) The opportunities for better centralisation of procurement

g) The opportunity for greater centralisation of support services

h) The opportunities to make cost reductions

2 Current Progress

2.1 Current progress for each review is highlighted below:

2.2 Procurement

2.2.1 The review is currently establishing a better understanding of the shape (and cost) of procurement activity across the Council and highlighting procurement structures, performance management, compliance, identifying staff/skills base responsible for procurement and contract management. It is also reviewing other organisational models, particularly with those authorities that have either changed or are in the process of changing their procurement arrangements.

Emerging themes include:

· Scope for corporate leadership and co-ordination of activity

· Improved contract management arrangements

· Greater strategic focus and challenge and introduction of Gateway Review process

This review was also commissioned to validate contract compliance following Cabinet decisions last year.

2.3 Economic Development

2.3.1 This review is timely in light of the growing economic challenges both nationally and locally and the government's recently published proposals to place a duty on upper tier local authorities to assess their local economy. (A presentation on the opportunities from the Sub National Review is covered in item 11). Legislation proposed also includes the possibility of setting up `Economic Prosperity Boards'.

2.3.2 A mapping exercise of those services within the Council that impact directly on the economy has been completed. This will allow proposals to be made on how best to integrate and strengthen the economic development service and where it is positioned in the future. A number of internal management options are currently being considered.

2.4 Democratic Services

2.4.1 The Review Group has defined democratic services in the widest sense, i.e. the totality of services and resources to support Members of the County Council. This includes:

· Support for the Council, Leader, Cabinet and Chief Executive in decision making and the discharge of statutory roles and responsibilities

· Support for non-executive Members in discharging their responsibilities in holding the Cabinet to account and the delivery of an effective and improvement focused overview and scrutiny function

· Support for all Members in delivery of their community leadership and locality role

2.4.2 Current activity includes a benchmarking exercise with top performing County and Unitary authorities and a literature review. In-house consultation is due to begin shortly with Members and staff to evidence the quality of the current service, identify areas for improvement and to consider the benefits of moving towards a fully integrated business support service for all Members.

2.4.3. A cross section of areas within the Chief Executive's department currently provides a range of different services to Members. A key area of the review is to identify how to bring together the support for Members to form a seamless service.

A number of potential quick wins have been identified including:

· Provision of a `one stop shop' for members in terms of providing, or signposting to, services and agreed resources

· Establishment of a nominated officer as a contact point for each member, linked with improved Member induction and a programme of continuous development

· ICT support is an area where action can be taken, for example provision of enhanced ICT training to include development of, and support for, individual Member profiles on Hantsweb

· Consideration of the options for business transformation to streamline structures to enhance services to Members and optimise flexibility across administrative and support functions

2.4.4 Interim proposals from the review include:

1. developing a comprehensive, integrated business support service for all Members of the County Council, informed by the outcomes of the Members' Focus Groups

2. developing an improved new Member induction programme by June 2009, including an identified democratic services officer as a `first point of contact' for each member

3. developing a Members Development Programme in liaison with Hampshire Learning Centre

4. developing improved ICT support for Members

2.5 PBRS

2.5.1 This review is in two parts. The first relates to Property Services and specifically a new senior management structure and public/private partnership. Good progress has been made to date with a new senior management structure. Progress has also been made on the evaluation of the pilot partnership with MACE to establish whether or not the development of strategic partnership(s) will be a suitable vehicle for achieving capacity and key skills to deliver the broad range of construction procurement related initiatives that the County Council provides on behalf of Improvement and Efficiency South East (IESE), and other regional and national initiatives. Legal advice is also being sought on the form of any private/public partnership for Property Services.

2.5.2 The second part of the review covers Business Services, in particular the future financial viability of existing Business Services business units, with a particular focus on HC3s (existing business units are being given a light touch review). This part of the review is also considering the opportunity and benefit of including further business units in the Council into Business Services.

2.6 IT Services

2.6.1 This review is being completed in two phases. Phase 1, which is broadly complete is reviewing baseline data, benchmarking and an assessment of how effectively IT supports corporate and departmental priorities. Phase 2 is reviewing 12 work streams, and will provide detailed assessment, challenge and recommendations on specific areas within the IT function. The 12 workstreams are:

2.6.2 In addition to the formal terms of reference for the review this review is also considering:

· How best to organise departmental and corporate IT staff

· How well IT Services staff roles and capabilities are aligned with HCC priorities

· How to further improve the delivery of major IT/change projects involving IT staff

· The extent to which current IT developments and plans will either reduce costs, improve services or generate potential efficiencies

· Identify steps to improve project delivery

Emerging issues from the review so far include:

2.7 Shared services

2.7.1 The Shared Services review has also been separated in to two distinct phases. The first phase is underway and research is concentrating on:

· best practice options in place or under development within local government,

· looking internally at the existing shared service arrangements, and

· considering the opportunities for shared service development for Hampshire County Council.

2.7.3 There are potentially three different levels of shared service - within the County Council, within the county boundary to improve two tier working and then regionally with other larger public sector bodies. All three levels are under consideration. It is proposed to engage in the work of HIOW Improvement Board and to identify and address any requirements of the Senate. Key outcomes from this phase will be an understanding of the best practice options, what works already, what quick wins there may be and a proposed evaluation framework for assessing future potential shared services.

2.7.4 The second phase of this review team will consider the proposals from the eight other reviews and evaluate their relative potential and impact for the County Council. The key outcome from this phase will be strategically developing the County Council's leadership role and positioning the Council advantageously for the longer term in delivering efficiencies and customer service improvements through shared services.

2.7.5 Interim Outcome

The group has identified that the County Council has a significant level of shared services with schools. These arrangements are true shared services in that consistent processes and transactions are in place for all users. These arrangements deliver efficiencies now for both schools and the County Council. They also contribute to the County Council's economies of scale in much of its back office business. The group will explore the scale and impact of these arrangements and take account of that in both phases of its work.

2.8 Legal Services

2.8.1 Based on information gathered from key stakeholders, staff, and external client bodies, and the assessment of structural models for the organisation and delivery of legal services it is suggested at this stage that the most desirable option for future delivery is a public-private partnership. Wholly internal provision would be unable to meet needs in a number of specialist areas. Wholly external provision would not be VFM and mean loss of opportunity for income generation. Expertise within the current service is held in high regard, but there is some dissatisfaction in respect of accessibility and response times. A public-private partnership offers the best solution, as core business is handled in-house at competitive rates, supplemented by specialist advice and/or additional service capacity. An analysis of the form that a public-private partnership could take will be discussed with stakeholders.


2.8.2 Strong performance in recent years on income generation and external client development provides a sound basis for future growth of the business and, in particular, shared services. Dedicated capacity would be needed in the areas of business analysis and business development, together with marketing skills, to maximise opportunities and explore the possibility of offering "integrated" corporate services in certain areas e.g. employment law and HR; property law and property development; procurement.


2.8.3 A number of innovations would make the in-house service, and its relationship with stakeholders, radically different. A "triage" (Hantsdirect type) service would improve accessibility and focus lawyer expertise on the areas where it is needed most. Greater use of ICT , Hampshire Workstyle and flexible location of staff would enable improvements in efficiency and accessibility.

2.8.4 It is suggested that the development of legal services as indicated above is endorsed. An action plan will then be developed in consultation with the lead Cabinet member.

2.9 Hantsdirect

2.9.1 Eight key workstreams have been identified for this review including:

2.9.2 A self assessment is currently being completed in house to assess current levels of performance and capacity to improve across a range of areas that impact on overall performance.

2.9.3 Emerging issues from the review process to date include:

· Clarity on outcomes we are seeking to achieve from developing an integrated customer access strategy

· The concept of Hantsdirect being the brand to cover customer contact provision - Hantsdirect online, Hantsdirect Local etc.

· Improving customer service not just at the 'front end', but also the back-office business processes in order to simplify the interaction with customers.

· Recommendations from the Commission of Inquiry on Personalisation, a heightened national focus on safeguarding and the measurement of avoidable contact will all drive the need for more integrated working

· Consideration of fundamental questions in relation to the rationale for having different web applications delivering broadly the same function, who `owns' access channels and data and to what extent we should aim to achieve a single view of the customer.

· A number of aspects of the current business operating model need to be changed in relation to social care and it is vital that there is on-going professional involvement with Hantsdirect

2.10 HR

2.10.1 Work is well under way on the financial and performance analysis of the service and benchmarking is being completed against HR functions in other county councils, both from an efficiency and value for money perspective. Research is also being undertaken with four other county councils, reviewing how they structure and deliver their HR service in order that we can identify and build on best practice.


2.10.2 The next key workstream for the review team is to consider possible structural models for the service. A significant issue within this will be how HR may be able to develop increased use of technology to gain increased efficiency and streamline current working practices. This will need to be considered further in light of the issues and recommendations resulting from the review of IT services. The final position on HR will depend also on the outcomes of other reviews eg Shared Services.

3. Conclusions:

3.1 Overall progress with the reviews has been good since the teams were established in November. Where appropriate interim recommendations have been made in the report.

3.2 Whilst financial provision has been made to directly employ consultants, this has not proved necessary so far. It is though proposed to make use of an interim manager with experience in this area for six months from January 2009.

3.3 It is anticipated that interim positions on all the reviews will be available for consideration by February 2009.

Recommendations:

Please see Executive Summary for recommendations.

CORPORATE OR LEGAL INFORMATION:

Appendix 1

Corporate Services Review Terms of Reference

Hantsdirect

The review of Hantsdirect has as its principal objective to look at how we might further exploit the capacity and investment in Hantsdirect and in particular to:

· Look at the potential to move "more business" to Hantsdirect (exploit our investment)

· Opportunities for further "channel shift" in relation to Council services

· Identify the benefits of developing a corporate Customer Services Strategy for the Council

· Exploit Hantsdirect's capacity to develop sources of income from other authorities (shared services)

This review will also look at the executive management arrangements for the future and the benefits of potentially merging this activity with other County Council activities. It would also be helpful to look at the next stage of Hantsdirect development to review whether or not the function should remain within the Chief Executive's department and what other models of management may be appropriate as Hantsdirect develops.

Procurement

It was agreed by Cabinet in December 2007 to proceed with a corporate review of the different procurement functions which exist across the Council.

The objective of the review is to look at how best to develop the procurement function within the County Council and to provide best value and the lowest cost infrastructure for the different procurement functions.

In particular this review will:

· Look at the opportunities to further reduce the cost of procuring County Council goods and services

· Consider how best to organise the procurement function within the County Council to ensure compliance with European and County Council regulations

· Review and consider management and leadership of this function and how best to organise the relevant staff with a view to reducing the cost of the function and investigate its potential to generate income.

· Identify any behavioural or cultural issues that arise in relation to staff compliance of the above process

Economic Development

The objective of this review is to consider how the economic development function should be organised within the County Council.

In particular the review will:

· Identify all the relevant functions and activities within the Council that contribute to the economic development of the county

· Assess the opportunities and benefits of creating an integrated economic development function covering (economic policy and research, skills and training, learning and apprenticeships, land use and business development, urban and rural regeneration and employment)

· Identify how this function could best be organised, managed and delivered and where it should sit in the Council's structure

· Ensure that the function can develop a skills base in a way that will meet the needs of partnerships currently working in this area and the likely developments arising in the wider economy and the economic opportunities to shape Hampshire as a place.

Democratic Services

The objective of this review is to produce a fit for purpose model and structure for Democratic Services (within the Chief Executive's department) and to identify the relevant functions that make up modern Member support. The review will consider:

1. How the decision-making processes of the Council should best be supported

2. How the Leader and Cabinet model should best be supported through Democratic Services

3. The identification of any new support functions and roles that should be developed for Members

4. How Democratic Services should be organised and if Scrutiny should be integrated

5. The successor arrangements for HATs or developments around locality management.

6. Connections with Legal Services, the Policy Unit and Communications

7. Future organisation of Education Appeals and Statutory Order work

This review will also look at the skills and composition of particular roles within the Scrutiny and Democratic functions to identify opportunities for increasing the contribution and skills of staff to the management and leadership of Democratic Services. This review would also look at the nature of specific roles and how they should be designed in terms of job content to allow wider and more influential roles to emerge.

PBRS

This review will look at strategic direction for the property function within the County Council and its impact on regional and national issues developing within the local government sector. Cabinet has already agreed that the property function should investigate the advantages of developing a "private public" partner capable of exploiting its regional and national roles but also bringing additional skills and talent to the County Council's work, including the research of appropriate legal frameworks and external expert advice.

In addition, the Acting Director of PBRS, with the Chief Executive, will review the opportunities to finalise the permanent management structure for the professional functions within Property with a view to rationalising the arrangements.

In relation to Business Services the review would consider the strategic issues surrounding the short, medium and long-term for the businesses which the County Council retains in-house. It would look at their financial viability for the medium to long-term, their customer base and the options for their future development. It would also consider whether other functions within the County Council should be included within the business function and run along formal business unit lines.

No significant changes are planned for Regulatory Services other than to consolidate its corporate leadership on community safety.

IT Services

The IT function will be reviewed with a view to considering:

· How best to organise departmental and corporate IT staff

· How well IT Services staff roles and capabilities are aligned with the major service and improvement functions planned for the County Council

· How to further improve the delivery of business solutions and major IT and change projects involving IT staff

· The extent to which current IT developments and plans will either reduce costs, improve services or generate potential efficiencies

· Assess the benefits and the applicability and relevance of the current governance arrangements for corporate IT within the Council

· Identify steps to improve project delivery

· Assess the benefits of developing public/private partnership arrangements

It may be appropriate to seek some external consultant support on best practice and alternative models of IT organisation

Shared Services

This review will look in particular at the potential scale of the market for shared services within the County Council and at the same time opportunities to share services with and for other councils.

In particular, this review will look at:

· The extent and scope of these opportunities

· The scale and potential benefits of shared services arrangements within and external to the County Council

· How best to develop a strategy to enable Hampshire County Council to lead this within local government and other public services in the region

· The extent of any potential partnerships that the County Council should develop to strengthen its leadership role and the benefits that shared services would bring

· Those services such as procurement that exist in service departments.

Shared services should be defined to cover the bulk of the County Council's corporate and central services, professional services and also the opportunities that could exist for departments with other councils.

Legal Services

This review will look at the organisation and management of Legal Services. In particular, the review should look at the following:

· What alternative models exist for the organisation of Legal Services within the Council and the costs, benefits and risks of such models

· The relationship of the Legal Services function with the Democratic Services, Scrutiny and the Policy Unit function

· Where Legal Service should be located within the central management infrastructure of the Council

· The potential to expand and enlarge the function for the County Council and other councils together with the opportunities for any potential income streams

· The opportunities that could exist by way of any "public private" partnership

HR

· Confirm the strategic direction of the HR service

· Identify the capacity & skills gaps in developing the HR agenda

· Assess the opportunities for structural and/or other changes to drive further efficiencies

· Explore the potential for further shared services and/or public/private partnership arrangements

· Identify the longer term location for HR within the organisation and linkages between the transactional, operational and strategic agenda

Management Structure for Central Functions of the Council

The Chief Executive believes that this model while technically difficult because of the spread of functions is potentially one of the most effective ways to reduce senior management costs in these functions. The Cabinet has also agreed that if viable, the Chief Executive's department would be reduced in size and concentrate on leadership and management of the Council and its staff, the delivery of organisational change and improvement and the development capacity to meet the Members' objectives. In the absence of a Director of Corporate Services it is proposed to look at the opportunities that exist for the management of the central functions of the Council alongside its objectives and its key activities such as the LAA, developing the capacity to improve more strongly and delivering the corporate and the efficiency reviews.

It is intended to begin this review on completion of the other nine reviews.