service delivery reviews

The SOLGM guide on s17A reviews

Raymond Horan, Manager, Sector Improvement

2

What’s this presentation• A heads-up on the content of the

guide

• A road-testing of ideas

3

What is a s17A review

“periodically assess the cost-effectiveness of current arrangements for meeting the needs of communities for good quality (services)”

4

The s17A review - purpose• An outcome of the “Efficiency

Taskforce”

• A spur to seek efficiencies and to talk to others

• Not a requirement to contract out, form CCOs etc

5

“Cost-effectiveness”

“Least cost consistent with the achievement of the objectives for delivering the service”

6

A couple of other ‘preliminaries’

• There is no legislative ‘stick’ – but non-compliance has risks

• The process is open to you (barring some minima)

7

Some reminders• First reviews must be completed

by August 2017• Circumstances may dictate

earlier review• There may be statutory options

- but you may need to consider others

8

What’s a service ? • Starting point – what’s an activity for

LTP purposes

• Bulk like activities together e.g. water and wastewater

• There will be exceptions

9

Developing a review programme 1. Identify triggers

10

Triggers• Significant change to levels of

service• Expiration of a contract within

two years• Expiry of the last review (i.e. its

been six years)

11

Out clauses - consider• Cost of the review• Cost of the service• Elapsed time since the last

review• Changes in environment since

the last review• Effectiveness of current

arrangements• Capacity gains or losses

12

Developing a review programme 1. Identify triggers

2. Stocktake previous reviews

13

Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together

14

Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together4. Talk to your neighbours

15

Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together4. Talk to your neighbours5. Identify resource

16

Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together4. Talk to your neighbours5. Identify resource6. Identify initial priorities

17

Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together4. Talk to your neighbours5. Identify resource6. Identify initial priorities7. Seek political input and refine

18

Undertaking a review1. Gather background information2. Determine review objectives

and scope3. Select review agents4. Perform the analysis5. Document the analysis

19

Background info• Mostly common sense – costs,

current arrangements etc

• Don’t forget the rationale for delivery, and non-financial performance

• What about customer and stakeholder views?

20

Determining scope• The place for ‘scaling’ the review

and doing the B/C analysis

• Knock out the impractical options – but document why

• Engagement?

21

Review agent• Who does the review?

• What skills and knowledge does the review need?

• Is the review best conducted by an independent person?

22

Analysis• Costing – robust, but precision

not required

• Refinement ?

• Benchmarking

23

Documenting • Use a common approach

• SOLGM has developed a template and a working paper

24

For more information on SOLGM visit

www.SOLGM.org.nz