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Business Plan 2015/2016Trusted to deliver sustainable solutions safely

www.cormacltd.co.uk

We have made excellent progress in widening our customer base and have competitively won a number of contracts across the South West.

CORMAC Business Plan 2015 / 2016 •• 3

At the conclusion of CORMAC’s third full year of trading, I am delighted to report that we have again broken through the £100m turnover barrier, with a projected turnover of £110m for the fi nancial year 2014/15.

Forewordby our Chairman

Orth gorfen tressa bledhen leun a genwerth CORMAC, delitys ov dhe dherivas re derrsyn ni arta dres an lett treusyans £100mvl, gans treusyans devisys a £110mvl rag an vledhen arghansek 2014/15.

Dres an diwettha teyr bledhen ni re dhewblekhas agan treusyans, mes ny ynkressyn ni an myns a vayni dres an keth spys marnas gans 17%. Y feu possybyl dhyn ynwedh lehe agan framweyth-dyghtya dres an keth spys gans 22%.

CORMAC re besyas ynkressya y sel gliens a-berth Gernow ha dresti keff rys, mes agan ragwir niver onan a remayn dhe dhelivra gonisyow rag Konsel Kernow ha dhe surhe bos an gonisyow na alinys dhe strateji, ragwiryow ha towl negys an Konsel rag 2015-2019.

Pes da fest ov vy ynwedh derivas bos an dhew gompani CORMAC war an fordh dhe hedhes aga hosten arghansek kesunys hag, yn kettermyn, i re besyas provia chonsow soodh rag tus a Gernow. A-lemmyn yth arvethyn ni a-dro dhe 1,650 person, hag a gomprehend hanterkans kynser, teknegydh ha gradhesik — yn unn brovia prow dhe strateji tevyans an kompani hag ynwedh an erbysiedh leel.

Y karsen vy ynwedh godhvos gras dhe vayni oll CORMAC a’ga ober kales hag omrians ow surhe y remayn CORMAC sewen dres prysyow a jalenj hag ansurneth rag governans leel.

Paul Masters

Kaderyer Kesva CORMAC

In the last three years we have doubled our turnover but only increased the number of staff for the same period by 17%. We have also been able to reduce our management structure over the same period by 22%.

CORMAC has continued to increase its client base both within Cornwall and beyond, but our number one priority remains to deliver services for Cornwall Council and to ensure that those services are aligned to the Council’s strategy, priorities and business plan for 2015-2019.

I am also very pleased to report that the two CORMAC companies are on course to meet their collective fi nancial target and, at the same time, have continued to provide job opportunities for the people of Cornwall. We currently employ in the region of 1,650 people, who include 50 apprentices, technicians and graduates - benefi ting both companies’ growth strategy and the local economy.

I would also like to thank all CORMAC’s staff for all their hard work and dedication in ensuring CORMAC remains successful in times of challenge and uncertainty for local government.

Paul Masters

CORMAC Board Chairman

4 • CORMAC Business Plan 2015 / 2016

We provide a diverse range of services to Cornwall Council, other public bodies and a portfolio of private clients across the South West.


Contents

Executive Summary 61. Introduction 8 2. CORMAC Today 9 3. Review of 2014/15 14 4. Moving our business forward 235. Developing Our Organisational Resources 346. Our Delivery for 2015/16 40

Case Studies

Case Study 1 - Flood Damage Repairs 14 Case Study 2 - CORMAC’s Helsbury Quarry Recycling Centre 15Case Study 3 - Apprenticeships 15Case Study 4 - CORMAC Pluss - Opportunities for work 16Case Study 5 - Boot up!! 16 Case Study 6 - Staff Volunteering 17Case Study 7 - Friends of Morrah Gardens - Penzance 38Case Study 8 - Environmental Volunteer Award 38Case Study 9 - Staff Engagement 39 ase Study 1 - Flood Damage Repairs 13

AppendicesAppendix A: Organisation Structure (as of April 2015) 44Appendix B: Our Vision, Values and Objectives 45Appendix C: Key Performance Indicators (KPIs) for 2015/16 46


Executive Summary

Our vision and values are very important to us. This Business Plan demonstrates our contribution to Cornwall Council and our communities by achieving our vision of ‘delivering sustainable solutions safely’ through our values of ‘Safe, Decisive, Progressive, Fair and Trust’.

CORMAC exists to add value to our Shareholder, the Council, and Cornwall. We have been very successful in doing this in 2014/15, as demonstrated in section 3, with a projected turnover of around £110m. By managing costs, improving productivity and widening our customer base, we are on target to achieve an overall return of £6.4m to the Council, as well as providing other added value benefi ts in less direct ways. This will help in meeting budget pressures

CORMAC remains very passionate about making a meaningful positive impact by contributing to resilient safe communities, sustainable economic growth in Cornwall and respecting and, wherever possible, enhancing the environment in which we live.

and supporting frontline services for the residents of Cornwall.

We have made excellent progress in widening our customer base and have competitively won a number of contracts across the South West. This is and will bring added fi nancial value to our Shareholder at a time when budgets within Cornwall are generally reducing.

CORMAC has taken social responsibility very seriously and has continued to make good progress during 2014/15. This plan demonstrates the added value of our engagement with partners and local communities. As an example, CORMAC has worked with volunteers to put the equivalent of nearly 100,000 labour hours back into the community.


CORMAC values its people above all else and continues to invest in them.

CORMAC remains committed to sustainable working practices and reducing our impact on our local environment. We are actively working to reduce our carbon footprint and are also recycling 84% of waste materials created by the business as a result of new initiatives we have put in place.

In terms of moving the business forward (section 4 of the Plan), we are seeing a stronger national construction and building industry, linked to a reducing revenue spending at the local authority level. As a result, our ‘Collaborative Teckal’ opportunities continue to develop, with the fi rst being an anticipated ten year contract with Nottinghamshire County Council looking to commence towards the end of 2015, subject to fi nal member approval from both authorities. This new approach will be critical to ensuring the long term viability of CORMAC and the retention of jobs in Cornwall.

A number of national investments relating to the Cornwall and Isles of Scilly Local Enterprise Partnership ‘Strategic Economic Plan’ and ‘Growth Deal’ have been announced and the start of the new EU investment programme is anticipated. This will hopefully create infrastructure investment opportunities within the County. We want to be allowed to play our full part in this for the benefi t of our shareholder, Cornwall Council, and the people of Cornwall. However, we will have to await the outcome of new procurement procedures being imposed by the Council to understand what that role could be.

CORMAC values its people above all else and continues to invest in them. This will ensure that our people, at all levels, are: encouraged to

maximise their potential; to contribute to our future success as a business; and to add value to our communities in a socially responsible and sustainable way. Our overall approach to the ongoing development of our organisation and the use of resources is set out in section 5.

Our delivery programme for the coming year is outlined in section 6, together with our fi nancial predictions for the year ahead. We have been able to identify a potential overall return of around £6.4m to the Council for 2015/16. This will largely be made up from a mixture of reduced charges and rebate for the Council Client and a dividend return for our Shareholder. However, this is subject to current agreed arrangements remaining in place for the coming year - an issue where there are some signifi cant doubts at the present time.

Our specifi c business outcomes for 2015/16 are set out in section 6.3. They represent a strong commitment to drive the business forward in the coming year and to ensure a fi rm foundation exists for a sustainable long term future

It is our intention to continue to provide added value in 2015/16 by: delivering desirable outcomes for the Council; continuing to work with Cornish SMEs; contributing to Cornwall’s economic growth by supporting people back into work; and enhancing skills in our workforce. For every £1 we spend through our local CORMAC companies, we will target £0.86 being re-invested back into the local economy.

Arthur Hooper

Managing Director, CORMAC


1.0 Introduction

1.1 The aim of this business plan

The aim of this business plan (the Plan) is to:

1.2 Business plan layout

The Plan sets out in section 2 our background history; our purpose; what the company does today; and our company vision, values, objectives and credentials.

This is followed in section 3 by a review of our performance in the 2014/15 fi nancial year; and the added value we have brought to our Shareholder and to Cornwall and its communities.

In section 4 we set out the business environment in which we operate; the expectations of our Shareholder - Cornwall Council; the anticipated prospects for each business division within the company; and our specifi c business priorities to drive the business forward in the coming years.

Provide CORMAC managers and staff with a clear direction by setting strategic objectives and targets for the next year and beyond.

The details on how we will manage and develop our organisation going forward are explained in section 5.

Our delivery programme for the 2015/16 fi nancial year, together with specifi c outcomes for the coming year; our key performance indicators; risk management measures and fi nancial predictions and business assumptions are set out in section 6. The continued high level of change and uncertainty occurring with Cornwall Council, as both Client and Shareholder, and within local government in general has resulted in this Plan being focused on the fi nancial predictions for the coming year to March 2016.

A set of supporting Appendices are provided at

the end of the document.

Provide fi nancial projections for the overall business and accountability for each business division.

Set the strategic framework for detailed business planning to take place within each of our business divisions.

Demonstrate how the company contributes to Cornwall Council’s strategy and priorities and the benefi ts it brings for Cornwall and its communities.


2.0 CORMAC Today

2.1 Our background

On 1 April 2012, the operational services carried out by the Council’s direct services organisation - Neighbourhood Services - transferred to a newly formed company - CORMAC Solutions Limited.

CORMAC Solutions Ltd is a company wholly owned and controlled by Cornwall Council (the Shareholder). It was set up using the wellbeing powers under section 2 of the Local Government Act 2000 as the essential part of the company’s activities are undertaken for the Council. The company operates under a “Teckal” exemption, providing services through various Contracts for Services.

A further element of the re-structuring was the creation of a second company - CORMAC Contracting Limited. This is also wholly owned and controlled by Cornwall Council and was set up under section 95 of the Local Government Act 2003 for the purpose of trading with third party clients and bidding for contracts with the private sector.

2.2 Our purpose

As explained in section 2.1 CORMAC is designed, through its two companies, to deliver value-added services for the Council and to trade in the open marketplace.

The specifi c purpose of each company is set out below:

CORMAC Solutions Ltd’s (CSL’s) purpose is to:• deliver services ‘passported’ from the

Parent Authority (Cornwall Council) and its partners, with limited third party trading;

• operate within “Teckal” compliance, where Cornwall Council must exercise control which is similar to that which it exercises over its own departments;

• achieve a defi ned fi nancial return target to the Council; and

• align with Cornwall Council’s corporate and social objectives and maximise the local economic footprint (Commercial Social Enterprise model).

CORMAC Contracting Ltd’s (CCL’s)

purpose is to: • trade for commercial motive with third

party clients, initially in civil engineering, environmental maintenance, surfacing/quarry, facilities management and fl eet services;

• compete for services and civil engineering contracts let by Cornwall Council;

• partner or form joint ventures with other public or private sector companies to deliver cost eff ective and sustainable solutions to complex engineering challenges; and

• generate revenues to provide a sustainable dividend return to its shareholder.


2.3 What we do today

In the time we have been established, CORMAC has progressed to be one of the most highly-regarded, trusted and well-known companies in the South West. We are committed to delivering cost eff ective and innovative solutions which add value to our communities, clients, partners and our people.

We provide a diverse range of services to Cornwall Council, other public bodies and a portfolio of private clients including major civil engineering contractors and consulting engineers.

Today, we have a current workforce of around 1,650 across a number of business divisions. Our main offi ces are sited in Bodmin, Scorrier and Tolpetherwin, together with seven other depots across the County.

The details of our management structure and key personnel, as of April 2015, are illustrated in Appendix A. This new structure refl ects the removal of one managerial post from the Senior Management team.

In essence, we are structured into the following business divisions:

Highways and Environment Our Highways and Environment Division consists of a multi-skilled team located across the County which delivers the following services to Cornwall Council: manage and deliver highways, public rights of way and sites and trails maintenance; undertake the road network management functions; construction services; and landscaping and grounds maintenance. The Division also delivers maintenance services to a number of private sector clients.

We also provide the non-core activities of school crossing patrols and the burials service to assist Cornwall Council delivery.

Surfacing and surface treatments (this includes both CSL and CCL)Our Surfacing and Surface Treatments Division off ers a full surface treatment service from design to delivery. We have a very experienced team that are able to advise prospective clients on suitable solutions for virtually any type of surface problem or surface requirement.

Contracting

(this includes both CSL and CCL)Our Contracting Division provides a multi-skilled workforce with specialist expertise operating across Cornwall and the South West. It delivers construction and civil engineering solutions and schemes including: highway infrastructure; land remediation; and building construction and refurbishment.

ConsultancyOur Consultancy Division delivers engineering and technical services to the public and private sectors. It includes a strategic tendered partnership with Parsons Brinckerhoff (PB). All infrastructure design and development are off ered in a fully integrated service, from conception through to a design-and-build service. The division also includes our Engineering Services Laboratory and the Highway Information Service.

2.0 CORMAC Today


2.0 CORMAC Today

Facilities Services

Facilities

CORMAC Facilities Services (CFS) provides a single point of contact and tailors solutions to a diverse range of facilities management issues.

Property Maintenance

Off ers a multi-skilled team located across the County. A range of services are provided, including reactive and planned maintenance, construction works and mechanical and electrical services.

Cleaning

Off ers cleaning, full caretaking and on-site security services.

Vehicle Maintenance Services

Delivers a comprehensive vehicle and plant maintenance service including 24/7 365 days a year breakdown cover and diagnostic servicing. It is one of Cornwall’s largest vehicle and plant maintenance facilities, with four workshops strategically located across Cornwall.

Aggregates and recyclingOur Aggregates and Recycling Division is centred on our Quarry at Castle-An-Dinas, near Penzance. This produces a range of products including road stone, aggregates and walling stone for the construction industry. Aggregate storage and transportation services are provided throughout Cornwall, together with a range of aggregate recycling centres.

CORMAC ResourcesOur Resources Division provides business resources and support services which include: company governance; legal compliance; organisational development; health, safety and wellbeing services; training and development; business technology; human resources; communications and marketing.

It also provides a Logistics and Fleet Management service for the other divisions, run from the Logistics Hub.

We currently buy some of our support services from the Council, including legal administration, transactional fi nance and employee services, and information technology.

Today, we have a current workforce of around 1,650 across seven business divisions.

2.4 Our Vision, Values

and Objectives

2.4.1 OverviewFrom the defi ned purpose set for us by our Shareholder (as set out in section 2.2), we have derived our specifi c CORMAC vision, values and business objectives, as set out below. They have been reviewed in light of our Shareholder’s new strategy and corporate business plan issued recently.

2.4.2 Vision

Our vision is....

‘trusted to deliver sustainable solutions safely’We will work collaboratively with Cornwall Council, stakeholders and communities to improve the society we live in by focusing on the quality of the services we provide, ultimately contributing to sustainable communities.

2.0 CORMAC Today

Our vision is... trusted to deliver sustainable solutions safely

12 •• CORMAC Business Plan 2015 / 2016


2.4.3 Our Values

The core values that sum up the way we do our work are:• Safe - ensuring we operate safely and consider

environmental management practices, putting safety at the heart of our activities.

• Decisive - making the right decision to do the right thing in a transparent and timely manner.

• Progressive- constantly moving forward at the right pace and in the right direction.

• Fair - building on our people diversity and treating our staff , customers and partners fairly.

• Trust - believing we will do the right thing for the business, our staff and the wider community.

2.4.4 Our Business Objectives

Our objectives are to create a respected, sustainable company by:• • putting safety fi rst in all of our activities and

minimising our environment impact;

• • valuing our people, their talent and diversity, and continuing to invest in them;

• • achieving signifi cant business growth and a sustainable return for our Shareholder by providing fl exible services which respond to change;

• • providing innovation and sustainable solutions, thereby creating value for money for customers;

• • supporting local communities through employment and skills development to increase our local economic footprint; and

• • developing meaningful relationships for the longer term success of the business.

Our vision, values and objectives are visually represented in the diagram given in Appendix B.

2.5 Our Credentials

We pride ourselves on the quality of our services and ensure that safety and sustainability are embedded in our delivery model. This is underpinned by the application of an integrated management system, which incorporates the

2.0 CORMAC Today

maintenance of nationally recognised industry standards.

CORMAC has successfully been accredited for over ten years to the:

• ISO 9001 Quality Standard.

• ISO 14001 Environmental Management Standard; and

• OHSAS 18001 Occupational Health and Safety Standard.

We have also been successful in more recent times in achieving Investors in People (IiP), demonstrating how much we value our people and our commitment to our extensive workforce. These accreditations ensure that regular internal and external audits are carried out on all aspects of our work.

Our credentials are dependent on our people’s commitment and the highly skilled workforce we have delivering our services. Our staff surveys have consistently shown that 84% of CORMAC’s people are prepared to go the extra mile and are committed to delivering CORMAC’s vision.

We have also been fortunate to have attracted, developed and retained people and teams who have some of the best qualifi cations and experience in the industries in which we operate. This has proved important in what has become a very competitive employment market in the last twelve months and is expected to remain so well into the near future. CORMAC credentials are proving to be at least as good as our larger competitors and this puts us in a very credible position for the future.

We have been successful in winning awards and competitions at a local and national level. During the last year, we have won the ‘Outstanding Commitment to Training for a Large Organisation’ award at the Cornwall Business College Excellence Training Awards; the ‘Resource Effi ciency’ award at the Cornwall Sustainability Awards; and the ‘Innovation Project of the Year’ award at the Chartered Institute of Highways & Transportation South Western Branch Awards. We have achieved fi ve ‘Britain in Bloom’ prizes including ‘best seaside entry’ and community champion awards, plus seven Green Flags in gardens and parks. We were also shortlisted for the Western Morning News awards for best landscape project.


3.0 Review of 2014/15

It is quite clear that the ‘Teckal’ model that was adopted by Cornwall Council in 2012 was absolutely the right choice. It enables the Council to develop an Alternative Service Delivery (ASD) model that has the commercial strength of the private sector and the service delivery ethic that aligns with the Council’s priorities.

The key highlights for the last year are given below:

• Our predicted turnover for 2014/15 is £110m, exceeding last year’s record achievement.

• We have added signifi cant value for Cornwall Council, as both Shareholder and Client, with a predicted return of £6.4m in 2014/15 - in line with the business assumptions set out in last year’s business plan.

• We have created even more value in Cornwall by working in partnership with our key client to drive down costs and to improve the services we provide.

• We have a highly trained, experienced and dedicated workforce that successfully delivered challenging engineering and service delivery problems they were often faced with (see case study 1).

• We have successfully expanded our business, winning contracts throughout Cornwall and the South West, showing that CORMAC is a market leader.

• Our successes in tendering last year resulted in winning £11.2m out of a possible £18.7m of work in 2014/15.

Case study 1Flood damage repairs

3.1 Highlights of 2014/15

We have had a very successful 2014/15, demonstrating how important a role CORMAC Solutions Ltd and CORMAC Contracting Ltd play in the Council’s priorities and objectives of delivering services to the communities of Cornwall in these times of austerity.

In response to the high levels of fl ood damage that were caused across Cornwall during the winter of 2014, we have worked hard to deliver the repair works we were commissioned to undertake. A fl exible and responsive approach was taken to ensure we were able to put communities back together as quickly as possible and with limited disruption.


Helsbury Quarry Recycling Centre is now up and running and the ecological treatment system (ETS) and the green waste composting system (a three stage reed bed system) have been tested for eff ectiveness and have passed all stages of the quality assessment for rural gully wastes. The next step is to begin accepting urban gully waste once the reeds are fully developed.

The project has been a great success, achieving an highly commended award at the sustainability awards in 2014. This has been a pioneering scheme and will be the only one of its type in Cornwall.

Case study 2CORMAC’s Helsbury Quarry Recycling Centre

Eight new apprentices, aged 18 to 28, were recruited by CORMAC in February 2014 to support more young people into employment.

The six apprentice horticulturalists and two apprentice countryside rangers maintain parks, gardens, nurseries and paths throughout Cornwall. The new trainees are well into their 18 month employment and will be given the opportunity to become full time employees if they are successful and if CORMAC continues to maintain the majority of Cornwall’s parks and gardens.

Case study 3Apprenticeships

• We won 100% of the work tendered by Cornwall Council in 2013/14 through their Civil Engineering Framework for projects under £1m.

• We regularly market tested the local supply chain for the provision of plant, equipment and construction materials.

• Our surface dressing rates were compared with a large market supplier, the results of which demonstrated that CORMAC rates were 5% cheaper.

• Our surfacing rates were regularly tested against competitors and have generally proved to be between 10% and 20% cheaper.

• We continue to win tenders issued by Town and Parish Councils who market test for some of the devolved services such as grounds maintenance, parks and gardens and toilet cleaning and maintenance. The value of work we won in 2014/15 was in excess of £210k.

• Our quarry at Penzance has continued to act as a market regulator for bituminous materials, without which the Council would have been put at considerable risk in the commercial market. Our approach to procurement of these products has ensured we continue to maintain savings of around £0.5m per annum.

• As part of our aspiration to meet a ‘zero waste to landfi ll’ target, we have successfully established the Helsbury Quarry Recycling Centre (see case study 2).

• Our in-house ability to recycle construction waste has also improved so much so that 84% of our waste has been recycled compared to 75% in the previous year.

• We managed 145,000 litres of bunkered fuel on behalf of the Council, which provides signifi cant resilience, especially in times of emergency.

3.0 Review of 2014/2015


Case study 5Boot up!

Boot Up! is an Outdoor Learning facility for children, families and the more vulnerable in our community. The project originally had an allotment area made up of several small raised beds, but it had not been particularly successful.

Jane Atkinson, Boot Up!’s Operations Manager said, “When CORMAC visited the site and kindly off ered us the use of a man and a mini-digger for the day it felt like all our Christmases had come at once! We can’t wait to get our boots muddy and start the garden and we have already planned the seeds we are going to grow in the recycled window greenhouse the kids helped build last year.”

CORMAC have been working with the social enterprise organisation ‘Pluss’ to deliver a programme to allow individuals with disabilities to enter the workplace. Ten individuals have successfully completed work placements within CORMAC on either eight or ten week work based settings.

The placements help the individuals to develop new skills, to increase confi dence and gain an accredited qualifi cation along with an up-to-date work reference and interview experience. They have successfully completed placements which include: CORMAC’s A391 site work doing construction and building work; highways maintenance work; gardening, pruning and planting at Wheel Eliza; administrative positions helping with computer systems and insurance claims at offi ce based placements; and materials testing at our testing laboratories at Scorrier.

Case study 4CORMAC Pluss- Opportunities for work

• CORMAC received 382 compliments between 1st January 2014 and the 1st January 2015, which again far exceeds the amount of complaints received in the same period.

• We have been proactive in responding to community needs and have continued to implement our improved method of repairing potholes which is cheaper, quicker, greener and longer lasting than traditional methods.

• We have made additional strides in enhancing our brand awareness and reputation by proactively engaging with the media and building a public presence in the region and beyond.

3.0 Review of 2014/15

• We have been successful in winning a number of awards, including the ‘Outstanding commitment to training for a large organisation’ at the Cornwall Business College ‘Excellence in Training’ Awards.

• At the Cornwall Sustainability Awards, we won the ‘Resource Effi ciency’ Award for the Helsbury Quarry Recycling Centre.

• The delivery of the retaining wall scheme at Lower Kelly, Calstock scooped the ‘Innovation Project of the Year’ Award at the Chartered Institute of Highways & Transportation South Western Branch Awards.

• We were also shortlisted for the Western Morning News Countryside Awards for ‘Best Landscape Project’, with the National Trust’s Lanhydrock Cycle Trails project.


Case study 6Staff volunteering

Trelights - CORMAC staff took the ‘volunteer toolkit’ to do a garden makeover for an elderly resident in Trelights. Peggy and her dog were amazed by the diff erence a few hours’ work clearing brambles and pruning made to the light and space in the garden.

Falmouth Community Hospital – staff from the gardens team spent the day helping to restore the patients garden at Falmouth Community Hospital. They provided help and specialist advice on the plants selection and how to look after them.

Bodmin Christmas Lights – when asked if CORMAC could help with the Bodmin Christmas lights willing staff gave up their Sunday morning to help test and secure the Christmas lights in Bodmin high-street.

• We were very successful in the ‘South West in Bloom’ awards:

• Falmouth won the Portman Cup.

• Falmouth won “best seaside entry” in the Plantscape Coastal Trophy.

• Queen Mary Gardens won the Abiss Memorial Trophy for “best horticultural display in a municipal garden.”

• Gyllyngdune Gardens, old quarry won the TSW Trophy for “outstanding specifi c project.”

• Howard Burns won the “Community Champion” award.

• We were awarded the green fl ag award on seven of our sites:

• Bodmin Beacon Local Nature Reserve.

• Bude Canal and Marshes.

• Gyllyngdune Gardens, Falmouth.

• Kit Hill Country Park, Tamar Valley.

• Morrab Gardens, Penzance.

• Queen Mary Gardens, Falmouth.

• Tuckingmill Valley Park, Camborne.

• We progressed our commitment to promoting fairness and opportunity by working towards developing good practice around equality and diversity outcomes.

• We contributed to the Council’s social objectives of promoting social and economic goals: e.g. reducing long-term unemployment and promoting skills and training initiatives. We have grown our workforce by 5% since 2013, which includes over 50 trainees (see case study 3 on apprenticeships).

• We have worked with 105 community partnerships - this includes engagement with: charities, colleges and schools, Community Trusts, Conservation and Woodland Trusts, Job Centre Plus, Libraries, Museums, D&C Police, Probation Service, Tourist Information Centres, work skills and training providers, various individual volunteers and volunteer groups (see case study 4).

• We supported local community volunteers and groups by providing nearly 100,000 volunteer hours, worth £1.45m, to support local community improvements (see case studies 5 and 6).

3.0 Review of 2014/2015


Table 3.1: Key Performance Indicators for 2014/15

3.0 Review of 2014/15

Key Performance IndicatorsPeriod:- Year 2014/15

April 14 – Mar 15Annual Target 2014/15 Actual Status

Our People

Accidents

Number of Lost Time Personal Injury Accidents <20 23

Accident Frequency Rate-RIDDOR <0.4 0.45

Days lost to Personal Injury Accidents <300 539

Sickness

Sickness days per head <5.5 5.47

Sickness days per head excluding long term sick <1.65 1.74

Sickness days per head–CORMAC signed <4.4 4.0

Sick days per head – CORMAC not signed <8.5 11.00

Cost of Sickness <£0.30m £0.336m

Staff levels

Staff turnover rate all (starters) <23% 13.77%

Staff turnover rate exc. Cleaners (starters) <6% 9.07%

Finance

Business Turnover (excluding internal trade) £102m £110m

SMEs (value) >£16m £13.6m

Innovation and Improvement

SUMMIT Project – Phase 1 Status RAG - Green complete

SUMMIT Project – Phase 2 Status RAG - Green RAG - Amber

HUB logistics savings £0.21m £0.257m

3.2 Key Performance Indicators (KPIs)We have established Key Performance Indicators (KPIs) for 2014/15 that enable the Company to assess if our use of resources and performance are on track with predetermined targets. These measures relate to: Our People; Finance; Innovation and Improvement; Our Customers; Compliance;

and Risk Management.

A summary of our performance for the 2014/15 year is outlined in Table 3.1. Overall, we have had a mixed year so far, with disappointing outcomes in some key areas. This is discussed in more detail below.


Personal Injury Accidents 2013/14 2014/15

Year increase or

decrease

Number of 'Lost Time Personal Injury Accidents (PIAs) 26 23 12%

Total days lost to PIAs 350 539 54%

Table 3.2: Personal Injury Accidents (PIAs)

Our People KPIsSafety is our top priority. As a result of an improved recording system, accident reporting has improved considerably over the last 12 months, as has ‘near miss’ reporting.

The detailed analysis of Personal Injury Accidents (PIAs) in Table 3.2 shows that the total number of PIAs in the year to date has reduced by 12%, which is excellent news. That said, it is slightly over the challenging KPI target we set at the start of the year.

However, we have witnessed a marked increase (54%) in the number of days lost to personal injury accidents, which is very disappointing. ‘Manual handling’ and ‘slips, trips and falls’ remain the main causes for days lost - this refl ects the highly physical aspects of our work.

There has been a small number of accidents, 6 of the 17 (35%) excluding sub-contractors and agency staff , that have been of a long duration (over 40 days). These 6 long term lost time accidents have contributed 383 days (71%) of the total 539 days lost days to date.

The duration of the absence is not necessarily an indicator of the severity of the accident and has to be taken in context with the type of activity the injured person has to undertake and their individual recovery time. Every eff ort is made to assist staff to return to work by agreeing phased return to work programmes and alternative or ‘light’ duties.

In terms of staff sickness, whilst we have a relatively low overall level of sickness, some KPI target levels have been exceeded. This has largely been driven by days lost through long term sickness. 69% of total days lost to sickness are attributed to a small number of staff who are on long term sick. Throughout the year, we have worked with staff to support them through sickness occurrences and help people back into work as soon as practicable.

Staff turnover has, on the whole, been steadier during this year. In general, staff have left as the industry has become more buoyant and new opportunities have arisen. This is a natural churn, but will need to be closely monitored given the increasing demand for skilled workers across the industry. The cleaning resources turnover has slowed down considerably, which may refl ect fewer local external opportunities.

The number of compliments we have received is continuing to outstrip complaints by a healthy margin

3.0 Review of 2014/2015


Finance KPIsWe have performed well against our fi nancial indicators, exceeding our annual turnover target.

We have also been able to increase our spend in the local market place and support SMEs in Cornwall and we have reached our annual target.

Innovation and Improvement

KPIsSUMMIT is CORMAC’s new fi nancial system. It is a specialist fi nancial system for the construction sector so is well placed to meet CORMAC’s diverse needs. Phase 1 of the SUMMIT programme went live in April 14 for the Facilities Services division and has been successfully implemented.

The setting up of the innovative Logistics Hub to increase visibility of the movement and utilisation of vehicles, plant and materials has proved to be highly successful. The Hub provides a central operational unit which uses cutting-edge technology to track and manage vehicle and plant resources. In 2014/15, the Hub has achieved its target with around £0.26m of effi ciency savings by increasing the utilisation of our own resources; reducing the use of external fl eet and plant; and off -hiring plant and equipment eff ectively.

Our Customer KPIsThe format of the customer satisfaction survey we previously use has been under review and consequently no surveys have been conducted during the period. It is anticipated they will resume in the new business plan year.

The number of compliments we have received is continuing to outstrip complaints by a healthy margin.

Compliance KPIsThe ‘Safety First’ programme has heightened our awareness and resolve not to tolerate deviations from safe operating procedures. As a result, our Health and Safety Team have been rigorously enforcing these procedures and issued more ‘internal safety warning notices’ and ‘stop notices’ than in previous years. The combination of increased awareness, appropriate training and enforcement will enable us to progress towards achieving our targets for next year.

Risk ManagementWe constantly seek to identify, mitigate and manage risks which could impact on our business objectives and delivery. A dynamic risk register is reviewed and updated on a monthly basis and consequently it changes throughout the year. The management of ongoing risks will form a key input into our forward looking business strategy.

Our Customers

Composite satisfaction score - Surfacing satisfaction survey – % of responses excellent to good >80% No surveys

completed in period

Ratio Compliments / Complaints 60:40 64:36

Compliance

Standards Compliance >87% 85.38%

Number of internal safety warning notices 0 6

Number of internal stop notices – H&S Inspections 0 2

Risk Management

High severity risks: target = high for over rectifi cation period (3 months) 0 7

3.0 Review of 2014/15

Table 3.1: Key Performance Indicators for 2014/15 continued


3.3 Added Value for

Cornwall Council

During our third year of trading we spent valuable time working with our people and stakeholders, enhancing CORMAC’s purpose and consolidating the way we wish to work.

As demonstrated in section 3.1, by managing costs, increasing productivity and winning additional external work we are predicting to make an overall return of £6.4m to the Council, which can be used to help reduce budget pressures and support frontline services for the benefi t of residents of Cornwall.

In terms of other ‘added value’ benefi ts, we purchased around £1.75m of support services from the Council last year, which helped to support a substantial number of jobs within the authority. We also contributed an additional £1.54m towards the Council’s historic pension defi cit, which an external contractor would not do. In addition, through the property we lease, we spent £0.75m on maintaining Council-owned buildings.

Our quarry at Penzance has continued to act as a market regulator for bituminous materials, reducing fi nancial risks in the commercial market. Our approach to procurement of these products has ensured we continue to maintain savings of around £0.5m per annum.

3.4 Added Value for

Cornwall

CORMAC adds value for Cornwall by continuing to deliver solutions for local people, by local people, in a cost eff ective, sustainable and safe way.

Being one of Cornwall’s largest employers with a locally-based workforce of over 1,650 full and part time posts, we generated positive impacts on people’s lives and together work towards delivering a brighter future for our communities. The close working relationship that CORMAC has

with Cornwall, coupled with its service roots and intrinsic local knowledge, also adds considerable value which cannot be replicated by its competitors.

We promoted further education, skills and employment opportunities through the following:• • A workforce development strategy to up-skill our

employees.

• • An apprenticeship programme for a wide range of apprenticeships, technician and graduate programmes.

• • Engagement with schools, colleges and universities.

• • Collaboration with Social Enterprises and the Probation Service.

We have an established training and development framework to up-skill our local suppliers and contractors, which all contribute to delivering Cornwall Council’s overall employment objectives.

Our approach generates wealth/income which is redistributed to our local community via our locally-based staff and by our Shareholder, Cornwall Council. We have supported Cornish SMEs (Small, Medium Enterprises) by spending over £16m during 2014/15 on local supplies and services. Overall, for every £1 we spent, £0.86 was re-invested into the local economy.

3.0 Review of 2014/2015

We strive to put our stakeholders, partners and local communities at the heart of the work we do


3.5 Our community

contribution

CORMAC is a value-driven business. Demonstrating social return on investment is very important to us in showing the added value of our engagement with partners and local communities. We strive to put our stakeholders, partners and local communities at the heart of the work we do and seek innovative ways to create solutions and measure impacts.

We are committed to continuing to develop community initiatives which build capacity for resilience and self-reliance at a local level and create employment and skills development opportunities within SMEs and the voluntary sector.

We do this by:• • embedding localism and community

involvement;

• • building capacity in the community;

• • providing local employment opportunities and skills development; and

• • wherever possible responding to sponsorship requests with in kind support of staff time.

It is very important to us to be investing in our local community, as demonstrated by the range of

case studies given in this Plan. We have supported the activities of local community volunteers and groups, who have provided nearly 100,000 volunteer hours, worth £1.45m to their respective communities.

3.6 Safeguarding and

Equality, Diversity,

Fairness and OpportunityOver the last twelve months we have made signifi cant improvements to further embed key agendas like safeguarding and equality, diversity, fairness and opportunity into the way we operate our company.

We now have 32 specialist trained ‘safeguarding’ advocates across our business divisions with an ongoing programme of training.

Equality and diversity initiatives like the CORMAC Pluss project (case study 4) seek to off er opportunities for individuals with disabilities to engage with us as a Company and open the door on gaining up-to-date work experience.

We are committed to promoting fairness and opportunity - working towards developing good practice around equality and diversity outcomes. These outcomes are aligned to the needs of our stakeholders, clients, customers, workforce and local communities.

Local communities

Ethical solutions

Health and safety

Community and voluntary sector

Responsible procurement

Sub-contractors

Our employees

Communication and engagement

3.0 Review of 2014/15

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