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Project Initiation Document

Project Title:HTR Commissioning Project

Project ID:

Project Summary: The HTR Commissioning project is identified within the service MTFS and has an initial savings target of £150k in 17/18 and a further £1,576,850, the majority of the savings target, in 18/19. The project will focus on the redesign of the delivery of the services within HTR with the options for this being centred on a number of alternative delivery models.

The proposed project methodology is based on the Office of Government Commerce ‘Five Case Model’. This model has been used successfully by UK Government departments and the wider public sector for many years and has now been adopted and widely copied around the world. It comprises of the following five key components:- The Strategic Case, The Economic Case, The Commercial Case, The Financial Case and The Management Case. At key stages there are project proposal documents:- The Strategic Outline Case, The Outline Business Case and the Full Business Case.

The HTR Commissioning Project will also be adopting and closely following the Authorities Commissioning Model and the four stages; Analyse, Plan, Do, Review. The Outline Business Case focuses very strongly on the analysis and planning approach and the Full Business Case will be focused on the same elements that we follow through the ‘Do’ stage of the Commissioning Model. We will also be building into the project key stages to review activities and outcomes and to apply a scrutiny approach as required. Although one of the main drivers for the project is the need to reduce the operating costs for the service, there is equally a need to develop effective partnerships and consider collaborative working opportunities. Equally there is the need to remodel and create a more innovative service that is focused on improving customer satisfaction.

This is an Executive summary of the project. This should outline the primary driver for the

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project along with the deliverables.Strategic Fit: The project board reports to the Quarterly Performance

Programme Board where progress is reviewed by the Strategic Director for Place and the relevant Portfolio Holders. The reduction to operating costs is set out in the HTR MTFS which is also reviewed at the Quarterly Strategic Finance Programme Board.

Summarise the strategic fit of the project, how does it relate to existing programmes and strategies.

Version Ref Status Date Author/Owner1 Draft 15/01/16 Lisa Griffiths2 Draft 02/02/16 Lisa Griffiths

Part 1: Project Definition

Project Outputs

This section lists the outputs the project is looking to deliver. An output is any tangible or intangible artefact produced, constructed or created as a result of a planned activity.

One of the following Alternative Delivery Models, yet to be agreed:-

1. Modified In-House 2. Wholly Owned Arm’s Length Company 3. Public/Public Joint Venture4. Public/Private Joint Venture5. Outsourcing

Some parts of the service may be decommissioned, yet to be agreed:-

1. Reduction in operating costs including some capital costs. 2. Communities would be supported to enable them to look at ways in which

they can provide similar services for themselves. 3. Partners in the third sector would be able to assist by providing additional

support within communities.

Project Outcomes

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This section lists the outcomes the project will achieve. An outcome is the result of a change, normally affecting real-world behaviour or circumstances.

Reduce the operating costs in line with the savings targets set out in the MTFS. This is noted as the key driver for the service.

Optimise income generation to maintain the trading position of the new service delivery model and to support with any ongoing requirements for core funded services.

Develop effective partnership and collaborative working. Via the remodelling and creation of a more innovative service delivery

model, improve customer satisfaction and increase demand for income generation activities.

Implement an enhanced organisational development approach to assist in improving outcomes and promote the appropriate organizational culture.

Project Scope

Project scope defines the work that needs to be accomplished to deliver a product, service, or result with the specified features and functions. It defines what the boundaries for this project are (for example, type of work, type of client, type of problem, geographic area covered)?

Whilst the whole of the HTR service is within the scope of the project, it is proposed that the following functions will remain at the Council in a ‘lean client role’.

In scope to remain at the Council in the ‘lean client role’:-

- Waste Strategy and Contracts- Passenger Transport- Highways Network Management

It is proposed that the following functions and services are confirmed as within scope for the Alternative Delivery Model (ADM) and the ‘contractor role’:-

- Fleet Services- Highways Operational Services- Street Lighting- Waste & Recycling Operational Services- Highways Technical Services with the exception of Highways Network

Management.

It should also be noted that Car Park Management & Enforcement is currently

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under review and may be included as part of the ADM or separately dependent upon the future findings of the project team.

The project has three years from 16/17 – 18/19 to achieve a £1,726,850 reduction in the operating costs.

Project Exclusions

Project exclusions are those things that are outside of the project boundaries (spells out what the project won’t do).

At this stage, nothing has been identified from within the HTR Service as being excluded from the project.

Project Change Approach

This section should be used to identify how the change transition will be approached to meet the desired Project deliverables. (For example: in house resource opposed to outsourced contractors, Modification of an existing product or a brand new design. etc.)

The project board reports to the Quarterly Performance Programme Board where progress is reviewed by the Strategic Director for Place and the relevant Portfolio Holders. The reduction to operating costs is set out in the HTR MTFS which is also reviewed at the Quarterly Strategic Finance Programme Board.

The project board has representatives from the support functions to assist with the change approach.

External specialist support may be required to assist the internal procurement, financial and legal functions.

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Project Assumptions, Constraints and Dependencies

Project Assumptions are statements which are taken to be true for the purposes of planning, but which could change later.

Assumptions

The initial business concept paper will be accepted by Cabinet. We will successfully apply and follow the Authorities Commissioning Model. We will be able to determine which ADM will apply and if decommissioning

is required for some parts of the service and we will have the evidence to back our proposed future plans.

Our final business proposal will be accepted by Cabinet. We will reduce operating costs and achieve the required level of savings

within the timescales. Our staff and stakeholders will support the new service delivery

arrangements. The same arrangements for future procurement opportunities will be

available to a new company set up via one of the ADM options.

Constraints

Available Resource. Relevant skills, expertise and knowledge in-house. Processes and Procedures. IT systems. Assets and property and the transfer arrangements.

Dependencies

Stakeholders support. Cabinet support. Funding for the project and start-up costs for the ADM.

Other Comments

Provide any other information relevant to the project for consideration.

Sufficient time needs to be given to the first phase of the Commissioning project to ensure the analysis, strategy and options appraisal stage enables us to acquire the evidence we need to support future decisions on the service design and delivery and gives us the information we need for the Final Business Case which will be scrutinised by key stakeholders.

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Part 2: Business Case

Benefits

Project Benefits

Benefit Baseline Target TimelineA reduction in the operating costs. £1,726,850 16/17-18/19

Optimise income generation to maintain the trading position of the new service delivery model and to support with any ongoing requirements for core funded services.

The Council retains strategic control but gives autonomy for day to day service delivery. Maintains a public sector ethos and allows all benefits to be retained by the Council.

Via the remodelling and creation of a more innovative service delivery model, improve customer satisfaction and increase demand for income generation activities.

Implement an enhanced organisational development approach to assist in improving outcomes and promote the appropriate organizational culture...

Project Dis-Benefits

A measurable decline resulting from an outcome perceived as negative by one or more stakeholders.Although implementing an ADM may bring benefits, it may not be enough on its own to realise the required reduction in the operating costs. We may need to decommission some functions where the Authority will stop delivering certain services, to assist in achieving the savings target.

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Project Costs

Project Cost & Timescale

Provide a breakdown of the projected project costs and suggested timescales.Cost Total Budget Cost Centre Timescale

Staff Costs

Non Staff Costs

Capital Costs

Supplier/Provider Costs

Other

Add or rename entries to this table as needed

Investment Appraisal

Return on Investment

Provide a breakdown of the projected project costs and benefits including non-financial benefits.

Costs/Benefit Year 1 Year 2 Year 3 Total

Financial Cost

Financial Benefit

Financial Net Total

Other

Add entries to this table as needed from the benefits and cost tables.Change or add to the time periods measured to suit the project if required.

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Risk Analysis

The main project risks should be highlighted within this section along with proposed mitigation to reduce or remove the risk, these will go on to form the risk register.

Risk Probability Impact RatingNo strategy to manage how the operating costs are reduced.

Low probability as it is highly unlikely we would fail to have a strategy to manage the reduction of our operating costs.

Quality and performance of the service will be affected.

The skills and experience of the staff will diminish.

Partnerships and collaborative working arrangements will be negatively affected.

We will fail to maintain any statutory requirements.

High

Mitigation The members of the project board will ensure there is a clear strategy and project plan and funding for the project is identified early on in the process. The Quarterly Performance Programme Board will also ensure there is sufficient scrutiny around each stage of the project.

Risk Probability Impact RatingLack of support from internal stakeholders.

There may be a lack of confidence in a new delivery model that may not be under the direct management of the County Council.

Delays in moving to the ‘plan and do’ stages of the commissioning model. Possible impact on the end date.

Medium

Mitigation Evidence from the strategy, options appraisal and analysis part of the process is essential to enable the HTR service to show what the decisions are being based on, which should build confidence in stakeholders to support the proposal which will be set out in the Final Business Case.

Risk Probability Impact RatingGaps in specialist skills and experience.

There will be a need to have specialist skills and experience from our legal, finance and procurement services

Confusion over required procedural and legislative requirements which could cause delays.

Medium

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and possibly from our HR and IT services.

Mitigation Funding will be required if we need specialist external support and this needs to be identified early on in the analysis phase of the project.

Risk Probability Impact RatingPension Costs. Pension arrangements

when moving from one organisation to another are complicated and costly, particularly with the expectation that funds will continue to be available to support the Authorities pension fund deficit.

Hidden costs that put a further burden on achieving the required savings.

Medium

Mitigation Ensure our pension’s team are fully engaged with the project and able to give timely advice to enable the service to factor in all additional costs and to achieve successful completion of the management of change arrangements.

Risk Management

Briefly list the considerations and contingency plans which will be used to manage risks should they materialize and the actions which will be followed to prevent them.

We should be able to minimise risk throughout the project by following the Office of Government Commerce ‘Five Case Model’ and the Authorities Commissioning Model and the four stages to ‘Analyse, Plan, Do, Review’. This approach follows good project management ethos of setting up a project board, and using tools such as the project plan, highlight report and risk register to monitor the progress with the project.

Risk Monitoring

Briefly list the proposed processes to be implemented to assess and monitor risks associated with the project.

Highlight Report and Risk Register which will be reviewed at the Quarterly Performance Programme Board where support will be identified to address the risk as required. This may be via funding, additional resource etc.

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Part 3: Project Roles and Responsibilities

Project Roles & ResponsibilitiesBriefly list the staff roles and responsibilities within the project, You need to be clear about staff roles so that you don't duplicate responsibilities, and so that everyone is clear about what's expected of them.

Project Role Project Responsibilities

Service Officer Name Contact Details

Project Sponsor

The ultimate authority and control over the project and its implementation.

HTR Nigel Brinn

Project Manager

Responsible for accomplishing the stated project objectives, creating clear and attainable project objectives, building the project requirements, and managing the constraints.

PLACE Lisa Griffiths

ProjectOfficer

Responsible for research, gathering and analysing information to assist with informing and constructing the content of reports and other project documentation. Maintain the Project Plan.

HTR Nichola Davies

Senior Manager Highways Operations

Developing and shaping the ADM and the business plan and the implementation of the new arrangements at all key stages of the project.

HTR Adrian Jervis

Senior Manager Highways Technical

Developing and shaping the ADM and the business plan and the implementation of the new arrangements at all

HTR Shaun James

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key stages of the project.

Senior Manager Integrated Transport Unit

Developing and shaping the ADM and the business plan and the implementation of the new arrangements at all key stages of the project.

HTR Stephen Offley

Waste & Recycling Operations Manager

Developing and shaping the ADM and the business plan and the implementation of the new arrangements at all key stages of the project.

HTR Ian Harris

Waste & Recycling Strategy Manager

Developing and shaping the ADM and the business plan and the implementation of the new arrangements at all key stages of the project.

HTR Ashley Collins

Finance Lead Support, advice and production, analysis and implementation of financial data at all the key stages of the project.

RESOURCES Marie James

Legal Lead Support, advice and production and implementation of legal documentation as required at all the key stages of the project.

RESOURCES Clive Pinney

Commissioning & Procurement Lead

Support and advice and implementation of key procurement and commissioning activities during the project.

RESOURCES Chris Squires

HR Lead Support and advice with the RESOURCES Sadie

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implementation of the change management programme.

HughesJoe Rollin

IT Lead Support and advice with the implementation of the change management programme.

RESOURCES Andrew Durant

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Stakeholder Map

Briefly List the key stakeholders internal and external to the project and the means of engagement.

Stakeholder Interest (H,M,L) Influence (H,M,L) Communication Channel Update Frequency

Portfolio Holder (s) High High

Trade Unions Medium Medium

Employees High Medium

Members of the Public

Medium High

WG Statutory bodies, NMWTRA, WLGA etc.

Low Medium

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Part 4: Gateway Review

As a part of the Design to Readiness/Implementation Gateway (Gateway 2), Project Initiation documents need to be distributed for review by the business. Please see the

gateway guidance document on intranet page 6101 for more information.

Gateway Review CommentsComments from the business regarding the gateway review should be noted here

Project Initiation Document SignoffSign off as part of the gateway review should be noted here.

Role Name DateProject Sponsor Nigel Brinn

Project Manager Lisa Griffiths

Finance Lead Maria James

Commissioning Lead Chris Squires