apse south & south west service delivery model …apse-archive.org.uk/presentations/2013/03/ssw...
TRANSCRIPT
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APSE South & South WestService Delivery Model Advisory GroupService Delivery Model Advisory Group
Thursday 7th March 2013Thursday 7th March 2013
l’ Old S i i lBrunel’s Old Station, Bristol
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Welcome
Chair: Cllr Jenny Smith, Bristol City Council
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Service Delivery Options
Andy Mudd Principal ConsultantAndy Mudd, Principal Consultant
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Its no longer just make or g jbuyCouncil ‘controlled’ options
• In-house variants• Trading accounts• Budgetsg• Commissioning council model
Semi-independent council ‘owned’ options• Teckal (wholly owned) companies• ALMOs• General service providers
• S95 – trading companies
Independent options• Council established NPDOs• leisure trusts
• Council approved M(E)BOs • Other ‘social enterprises’ • Old fashioned contracting out and variants
Hybrid options• Trading companies that are also Teckal Companies• Leisure Trusts the Council thinks it (and maybe it does) control
Shared Options• Jointly owned companies• Other joint ventures• Administrative shared arrangements
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And to confuse things gfurther• Big society initiatives
– Small state and public services• Community right to challengey g g
– Forced competition but will it lead to contracts for social enterprises?• Ever evolving European case law
– TeckalPart B competition– Part B competition
• Business rates repatriation– Just how will it impact on leisure trusts?
• Academy/free schools programmeAcademy/free schools programme– Procurement issues– Maintaining value
• AusterityF t ti h d i– Fragmentation v shared services
– Income generation and commercialism
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So how do we choose the right model?• We don’t• The model should emerge i.e. choose us• What are we trying to achieve?What are we trying to achieve?• How will we know whether we have
hi d it?achieved it?• What is the best way to achieve it? y• Starting with the solution is the wrong
approach?approach?
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B k t b iBack to basics
• Knowing what we need to do? – Principles of demand analysis– Principles of demand analysis– The potential for demand management
• Figuring out the best way of doing it?• Figuring out the best way of doing it?– Form must follow function
U d t di th f h t• Understanding the consequences of what we do?– An arms length company may have reduced
overheads but……..
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H i th t?How is that?
• Reduced staff costs?– TUPE– Equal pay issues
• Reduced management costs?How when economy of scale is being reduced?– How when economy of scale is being reduced?
• Reduced cost of supplies etc?– As above– Public procurement rules still apply
• Reduced central chargesThis is often the main attraction but the big question is do– This is often the main attraction but the big question is do these costs actually go away?
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Wh t t ?What costs?
• 95.02 The full cost of any activity is the amount by which in the long run the expenditure of the body g p ycarrying it out would be reduced if it gave up that activity. No costs are truly fixed; only for short-term ad hoc
fexercises can any overheads safely be treated as being fixed.
CIPFA CJC O li idCIPFA CJC On-line guide
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Opportunity/Need
Form must follow function: charging or tradingNeed
Company required
Full business case
Full business
charging or trading
required
Purpose ?
Commercial
case
Express No express
casePower?
Outline B i C
?
Public service
Hi h
NoCharge Power?
Express power
ppowerYes
Business Case
Risk? Reinvest?
HighPower?
No company Market
? Private sector
Low
Yesrequired Profit
Public sector
Private sector
Goods and Services Act
Periodic review
Full business case
Full business case
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Th t bl ith h b idThe trouble with hybrids
• Teckal/trading company– Clarity of purposeClarity of purpose– Turnover restrictions
• Teckal/Mutual• Contradiction in terms
• Leisure trusts with contracts– Procurement problems
• Leisure trust with control– Golden gooseicide
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St t t i t lStrategy: stay in control
• Not getting mugged via CRC– Planned meaningful engagement with– Planned, meaningful engagement with
community groups– Planning for transfer if appropriatePlanning for transfer if appropriate– Procurement cycle
• Otherwise• Otherwise– Continual improvement
Demand analysis/demand management– Demand analysis/demand management– Form must follow function
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Andy MuddAndy Mudd
Association for Public Service Excellence (APSE)APSE Solutions
Tel 0161 772 1810
Fax 0161 772 1811
Email: amudd@apse org ukEmail: [email protected]
Web: www.apse.org.uk
www.apse.org.uk
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Lambeth’s Co operative CouncilLambeth s Co‐operative Council‐A different settlement with theA different settlement with the
citizen
Sophia LooneySophia LooneyDivisional Director Policy, Equalities and
P fPerformanceLondon Borough of Lambeth
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South Gloucestershire Council The RecessionThe Recession
and Maintaining Service DeliveryMaintaining Service Delivery
M k Ki H d f S iMark King Head of Service
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“We are all in it TOGETHER”
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TRANSFORMATION PROGRAMME2011/201 2012/201 2013/201 2014/201 2015/201 2016/2017
Budget 180,846 176,648 171,602 172,969 173,471 NYA
Service Reviews -6,859 -11,550 -15,150 -20,294 -20,294 -21,294
SGC
Management Review -1,802 -2,627 -2,627 -2,627 -2,627 -2,627
Procurement -1,767 -5,688 -9,273 -10,443 -10,443 -10,443 -£ 10,443.00
ns to
S
Grant Review -5,538 -5,538 -5,538 -5,538 -5,538 -5,538
t mea
n
To be Determined 0 -250 -250 -3,100 -3,800
-15,966 -25,403 -32,588 -38,902 -38,902 -39,902
Wha
t it
To Come
Unallocated 0 -250 -2,250 -3,100 -3,800Who
knows!
W
Rumblings! -6% -6%
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What it means to StreetCare
The Given
• Maintain front line services• Business as Usual – Customer
The big question HOW?
•Where are the Savings coming from?
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Questions for the Service
Internal Provision
Or Core in house workforce
External Provisionworkforce
J i i t thJoining together of a number of functions
Established robust developed supply chain
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What has StreetCare Done?
• Understand what is “CORE” Work• Assess - Bottom Up - Required resource• Cut WASTE – stop playing shopsCut WASTE stop playing shops• Resource accordingly • Get all we can out of staff• Get all we can out of staff
– Identify long-term needsInvest in teams where there is a need– Invest in teams where there is a need
– Performance management • Engage with the supply chain• Engage with the supply chain
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Target Operating Model
Data Collection Asset
management
Assess and Decide
Design and Operations
Transport and Procurement (Logistics)
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Challengesg
Cost Recovery
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Target Operating Model
Data Collection Asset
management
Assess and Decide
Design and Operations
Traditional “Traders”New to the Concept of Trading Reluctance to Trade
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The Staff Cost C l l tiCalculation
£ rate£ rate
Holiday PL
Sickness
NI
US
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Full Cost Recovery
What do we charge for?
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Understanding CostsgBetter staff/ better decisions?
Post Office = 40pSGC Service
Reviews = £2 07Reviews = £2.07
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Trading USPs
What about Trading?
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Trading USPs
What about Trading?
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Why Do ItyBenefits to SGC and local economy?
•Increased turnover spreads overheads
•Use up surplus e.g. winterp p g
•Keeps staff interested and aware (commercial and customer)customer)
•Help local business recover after snow
•Reliable services e.g. for developers
•SME’s benefit from training (and piggy back on g ( p ggyschemes)
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L liLocalism StreetCare ProposedStreetCare Proposed
Approachpp oac
Target Saving £500kTarget Saving £500k
Devolved Budget to Area ForumDevolved Budget to Area Forum
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LocalismLocalism
• Looked at How Services Could / Should be Delivered • Concentrated on• Concentrated on
– Statutory Services– Discretionary Services– Paid for Services StreetCare to Deliver £0.5m 2014/15 Councils
Transformation Programme• Looked at How Services Could / Should be Delivered• Looked at How Services Could / Should be Delivered • Concentrated on
– Statutory ServicesStatutory Services– Discretionary Services– Paid for Services
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Localism StreetCare Proposed Approach
•Reviewed shown thatI lit i th R t i t St t S–Inequality in the Resource put into Street Scene
Services Across the Area
Range from g£9.82 to £5.92 per Head of Population
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Top Town/Parishes Currently Paying for a proportion of Dog Bin Collections
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Street Care Core ServiceStreet Care, Core Service
Maintenance of Highway Landscapes and Highway Amenity Areas Within Urban Streets
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Localism St tC P d A hStreetCare Proposed Approach
•Proposal to Cut Back to a CORE Service
•Removal of Highway Floral Displays £46,500•Removal of Provided Hanging Baskets £25,000•Cessation of Dog Bin Provision and Collection £83 000•Cessation of Dog Bin Provision and Collection £83,000•Cessation of Graffiti / Fly Posting Weekend Proactive Inspections £5,000•Reduction of Highway “Amenity” Grass Standard to Two Cuts per Season £57,000•Overall reduction of Shrub Beds by 20% £57 500•Overall reduction of Shrub Beds by 20% £57,500•10% Reduction by Area in Community Space Grass Cutting to Two Cuts per Season £54,000
•Total Proposed Saving £328 000•Total Proposed Saving £328,000
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Localism StreetCare Proposed Approach
• That will form the OFFER that StreetCare will make to the PC/TCPC/TC
• The TC/PC will have three options:
1 To accept the offer as it stands1. To accept the offer as it stands2. To buy back the “lost” service3. To make a counter offer which is equal in value
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Area Based Decision MakingArea Based Decision Making
• Bottom Sliced From Capital Budget– 300k Maintenance– 500k Traffic Management
Di id d ll t F• Divided equally amongst Forum• The Decide Local Priority Basisy
– Choose from listBring New Site Forward– Bring New Site Forward
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Project Score CardProject Score CardAre Scor
Locality TreatmentAre
a Cost £24 CommentsScor
e
Yate Yate (Yate Central) CW - DBM100
5 £24,120.00 Junc St Briavels 195
180Yate Yate (Yate North) CW - DBM 0 £43,200.00 along straight parallel with YOSC 160
YateIron Acton (Frampton
Cotterell) CW - DBM 800 £19,200.00 From Stover Road to Bridge Road 160
Frampton C tt ll
Frampton Cotterell (F t C tt ll) CW DBM 650 £15 600 00 B t S id d S th Vi 155Cotterell (Frampton Cotterell) CW - DBM 650 £15,600.00 Between Sunnyside and South View 155
Yate Yate (Yate North) CW - DBM103
5 £24,840.00 Junction with Wiltshire Avenue 150
Iron ActonIron Acton (Frampton
Cotterell) CW - DBM240
0 £57 600 00 Off Latteridge Road 145Iron Acton Cotterell) CW DBM 0 £57,600.00 Off Latteridge Road 145
Yate Dodington (Dodington) CW - DBM110
0 £26,400.00Off Westerleigh Rd,Westerleigh Rd to No
13 end of cul de sac, and jct at 25/27 135
150From Ridgeway/Newlyn Way Rdt to
Melrose Avenue by shops inc Yate Yate (Yate Central) CW - DBM 0 £36,000.00 junction 130
Yate Yate (Yate North) CW - DBM 180 £4,320.00 Junction with Greenways Road only 125
Frampton Cotterell
Frampton Cotterell (Frampton Cotterell) CW - DBM 650 £15,600.00
Between Woodend Rd and Footes Lane after Central Networks 115
Yate Iron Acton (Ladden Brook) CW - DBM 600 £14,400.00 Off North Road 100
Frampton Cotterell
Frampton Cotterell (Frampton Cotterell) CW - DBM 600 £14,400.00 Off Woodend Road 95
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APSE Update
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*
*
*
www.apse.org.uk+ Network Queries
* Traded Services
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Future Meetings- 2013Future Meetings- 2013
NationalNational- Service Delivery Model Advisory Group: Manchester Town Hall – April (date tbc)p ( )
- One day seminar on Demand management: Harrogate – 14th MarchHarrogate 14 March
RegionalRegional- Service Delivery Model Advisory Group: London-date subject to demanddate subject to demand
- One day seminar on Innovation and Commercialism: London – 23rd MayLondon – 23 d May
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www.apse.org.uk
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Contact details
Helen Burkhalter
P i i l Ad i S th / S th W tPrincipal Advisor- South / South West
Email: [email protected]
Phone: 01865 749365 / 07880201078
Association for Public Service Excellence2nd floor Washbrook House, Lancastrian Office Centre, Talbot Road,
www.apse.org.uk
, , ,Old Trafford, Manchester M32 0FP.
telephone: 0161 772 1810fax: 0161 772 1811
web:www.apse.org.uk