Efficiency and IT PanelSHARP Project

Update

Sept 2005

Hertfordshire County Councilwww.hertsdirect.org

Achievements

System stabilised -Action Plan completed

Year end closure of accounts earlier under SAP

Various small project / pilots completed successfully /underway

[e.g. The SAP impacts of Growth and Change- Phase 1 complete, Phase 2 ready to go live; Training and Development – live – input into the ACS finance review]

Project Implementation Review completed in July 2005

Serco Contract renegotiated end of June 2005

Project Implementation Review – One year after Go-live

What went well - What needs to improve

Looked at :

– The actual delivery of SHARP spec with the business – Proposals for future SHARP developments. – Any blocks to delivery of the original benefits.– Developing an action plan to address these – Reassessing the model for ongoing support.

15 Workshops held in July involvingSHARP team, Champions and Subject Matter Experts

Overview of Implementation Review

• Overall a positive outcome from the workshops with participants feedback scoring the process 83 out of 100.

• Positive audit reports also have been produced in the main areas

Areas to Improve -1SystemBetter access to Management InformationEnhance support of business processes to improve

performance

Departmental ProcessesIdentify gaps between agreed processes and business needs Ensure clarity of processes and consistency of application

SupportMake the SHARP team more self-sufficient in SAP supportFurther develop the helpdesk ‘experience’

CommunicationsBuild up the use of Best Practice and Knowledge SharingProvide better access to up-to-date Process information

Areas to Improve -2TrainingTarget training more to business needsGrow the understanding of SAP Roles & SAP Benefits

Managed ServiceImprove MS service processes, comms and relationships

Continuous Improvement PlanDevelop a plan for Continuous Improvement Continuously match system to business processes evolution

Summary of Review Actions

• Reporting Project

• Procurement Project

• High level review of key policies and processes

• Review SHARP support framework

• Clarify SAP roles (within HCC management structure)

• Further develop SHARP Communication Strategy

• Review Training delivery, methods and content

• Enhance key contract management relationships

• Review Forms

• Agree delivery method for Continuous Improvement

Serco Contract Renegotiation 1

• Recognises change of name to Serco ( from ITNet)

• Reduces contract term from 7 to 5 years – expires 31/03/09

• Has a more flexible termination clause

• Moves to Target Cost basis

• New lower base guarantees MS business case savings.

• Brings in Open book Accounting.

• Further guaranteed reductions via “Committed” savings projects

Serco Contract Renegotiation 2

• Targets further Continuous Improvement Savings

• Institutes Balanced Scorecard reporting

• Initiates a Rebate scheme linked to the Scorecard

• Updates all Service Level Definitions

• Strengthens Serco Management on site

• Required all backlogs cleared - via the action plan

THE ORIGINAL BUSINESS CASE

Savings 04/05 05/'06 06/07 07/08 08/09

M S Finance 125 200 300 375M S- Payroll 250 350 500 525HR (10 posts) 100 200 200 200Finance (10 posts) 100 200 200 200 Efficient Working Practice

Improved Proc. 250 700 1,000 1,000 1,000Centralisation 125 125 500 500 500No duplication 50 51 60 100 100

Total savings 425 1,451 2,510 2,800 2,900

Less Costs 2,001 2,001 2,001 2,001 2,001

Cum. Net postion -1,576 -2,126 -1,617 -818 81

Economical process -e-

Efficient Working Practice

Business Case - Gross Savings

Efficient Working Practice

Settlement discount etc

£'000's

Efficient purchasing etc

Remote entry of Timesheets

Comments

ON TARGET - But Sources Different

Focus now on Procurement

Hertfordshire County Councilwww.hertsdirect.org

PROCUREMENT PROJECT GROUP

Paul DrakeProject Manager

Andrew RobertsonChair

SHARP

HBS DEPTS

Project Objectives -1• Supply clear routes for efficient and effective purchasing

to ensure that we buy the right goods at the right price, aggregate demand and produce savings

• Promote advantages of these routes and measure their use thus eliminating maverick purchasing and extending commitment accounting

• Rationalise the supplier base to allow better management of the quality of goods/ services, improve on time deliveries and negotiate better payment terms

• Improve communications with Suppliers to work with them to drive down transaction costs and become their customer of choice

Project Objectives -2

• Encourage the Uptake of E-opportunities by increasing e-tendering, e-auctions and e-enabling the ‘end to end’ process reducing paperwork and costs

• Reduce Transaction Costsby the implementation of a low value strategy e.g. purchasing cards to reduce numbers of invoices / orders processed

THE PROCUREMENT GROUP PROJECT STRANDS

Implementation

Stage 1 Stage 1 Stage 3Stage 3Stage 2Stage 2 Stage 4Stage 4

Starts Sept 05

Purchasing policy paper

Plan for areas outside policy

Low value strategy in place

Training and Support Review

Implementation

Stage 1Stage 1 Stage 3Stage 3Stage 2Stage 2 Stage 4Stage 4

Starts Oct 05

Effective Management of the Supplier Database

Document Management and workflow commenced

Benchmarking and reporting started

SAP upgrade for EBP decision

Review of Gateway

SMB Sponsorship

Communications reviewed

Implementation

Stage 1 Stage 1 Stage 3Stage 3Stage 2Stage 2 Stage 4Stage 4

Starts Nov 05

Effective Procurement

/ Contractual relationships reviewed and in place

Back end integration – links to suppliers started

Implementation

Stage 1 Stage 1 Stage 3Stage 3Stage 2Stage 2 Stage 4Stage 4

Starts JAN 06

Purchasing Cards in use

Ongoing reporting in placeBenefits being realised

Handover supplier function to HBSPost implementation review

Procurement Savings

Strand 05/06 06/07 07/08 08/09 Total

£k £k £k £k £k

Purchasing cards 100 150 150 400

Workflow * 9 38 38 38 123

Business support savings * 45 45 45 45 180

Transfer A14s to SAP 100 450 640 640 1,830

Transfer cheques to BACS 15 30 30 75

Improved Procurement and back end integration.

250 475 657 657 2,039

Total Savings 404 1123 1,560 1,560 4,647

Less Project costs (190) (60) (250)

Net Savings 214 1063 1,560 1,560 4,397

Procurement Shortfall in 05/06 and 06/07 covered by earlier Serco savings