total improvement “changing times, changing minds” andrew smith, chief executive
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Total Improvement “changing times, changing minds” Andrew Smith, Chief Executive Hampshire County Council. The Big Idea. Procure once on behalf of many (50 authorities) Get collaboration and aggregation benefits (£2bn of leverage – 10% savings, 142 projects) - PowerPoint PPT PresentationTRANSCRIPT
Total Improvement
“changing times, changing minds”
Andrew Smith, Chief ExecutiveHampshire County Council
• Procure once on behalf of many (50 authorities)• Get collaboration and aggregation benefits (£2bn
of leverage – 10% savings, 142 projects)• Invest in supply chain management not just top
line cost• Build national leadership – further leverage• Leave local choice in place• Sponsored by CLG
The Big Idea
£ benefits
Time
0Elapsed time
Commissioning
approach
One off
project
Joined
up
programme
(multi
projects)
Joined
up
programme
(multi
projects)
One off
project
One off
project
2-5%Construction,
procurement
Source:
SE RIEP
10-15%Construction,
procurement
Source:
HCC
Care Home
case study
20%+Reduced need
Construction,
procurement,
Source:
SE RIEP
/Reading
BC estimate
Opportunities• Understand need• Shared services• Assets and capital assessed• Driver for strategic
procurement programme which could include greening agenda SMEs and apprentices
Opportunities• Economic
development• Inter authority
collaboration
Opportunities• Better delivery• Predictability
Savings equal one new care homeExample of a joined up programme
Hampshire County Council (HCC) saved £6million on a 10 care homes/£60 million programme by utilising common design, procurement, via a construction framework, and supply chain strategy methodology. Benefits only possible because of the whole programme approach and application of lessons learnt
Scaling up resulted in:• 10% saving of construction cost • Net cost saving of £150/m2 • Halving of pre construction periods• c. 40% saving in professional time
Opportunities
lost as time passes
Two tier cost reduction examples
Ten year IT deal across two tiers with Virgin
Havant Public Services Village – shared services savings 20% +
Hampshire County Council’s HQ Refurbishment
Asset rationalisation• 75% more staff accommodated• 30% more space efficient
(staff per floor area)• 4500m2 reduction in the council’s
use of office space• £200,000 per annum on running
costs • 50% reduction in energy costs
Collaborative procurement• Design team hand-picked using existing
framework arrangements and OJEU competitive tender.
• HCC/MACE/Bennetts undertaking programme and change management, FF&E design, move management and facilities management in-house.
• Early engagement with the main contractor on completion of the feasibility stage.
Staff Benefits• 100% staff satisfaction• Improved productivity and communication• Moved from 1:1 to 3:2
NIEP for the Built Environment Workstreams
How to do it?
The Barriers•Council sovereignty•‘not invented here’•Local capacity•Supply chain management behaviour•Collaborative arrangements do not exist
The obstacles are not technical. Local Government can now define, procure and deliver some of the most complicated projects in government.
Can the model be replicated - adopted for wider use?
If so, where?
Follow the money …• 50% of spend is through third party suppliers• External spend for public sector in England is £221bn…• of which £50bn is local government• 96% of our external spend is in 4 areas
WasteConstruction Asset Management
Corporateservices
Social care
Possible direction of travel
Are there any real barriers to collaboration locally and
nationally?
Opportunities
• Benefits of aggregation• Reshape the market• Savings / efficiency – dialogue with supply chain• Local government leadership of national
programme• Local choice• Cross departmental and organisational
working/geography