BOARD MEETING Public Session Business Development Framework Update Simon Griffiths and Chris Sands Author:

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Document Title: Presenter: BOARD MEETING Public Session Business Development Framework Update Simon Griffiths and Chris Sands Author: Contact details for further information: Lynn Wilmott-Shepherd,

broadley@dchs.nhs.uk Simon Crowther, Deputy Director of Finance, simon.crowther@dchs.nhs.uk Date of Meeting: 27 October 2011 Agenda Item No: 152/11 Document is for: (indicate with an x) Assurance X Information Decision X No of pages inc.

1 Document Title: Presenter: BOARD MEETING Public Session Business Development Framework Update Simon Griffiths and Chris Sands Author: Contact details for further information: Lynn Wilmott-Shepherd, Tim Broadley, Sean Thornton and Simon Crowther Lynn Wilmott-Shepherd, Assistant Director of Business Development, Tim Broadley, Deputy Director of Strategy, Simon Crowther, Deputy Director of Finance, Date of Meeting: 27 October 2011 Agenda Item No: 152/11 Document is for: (indicate with an x) Assurance X Information Decision X No of pages inc. this one: 77 Executive Summary As an autonomous NHS provider and an aspirant Community Foundation Trust DCHS must ensure that all its business decisions and development proposals are: supporting the development of quality services; based on the best available intelligence; fully impact assessed; made within the context of the developing market and the existing and potential partnerships which could be developed to best exploit this market in line with the Trust s core strategies. As such the organisation needs to demonstrate a thorough and consistent approach which enables the Board to be fully assured that it is making sound business decisions which support its strategic objectives. This paper sets out the processes in place and the actions necessary to provide full assurance. These have been fully reviewed by the Quality Business Committee at its October meeting which has recommended that the Framework be supported and the Communications & Marketing Strategy (Appendix 1) and Investment Policy (Appendix 2) be ratified by the Board. It is also worth noting that this framework will be best delivered by developing a series of effective partnerships with commissioners and other providers and good progress is being made in this direction,.

2 Financial Impact The adoption of a sound business development framework will ensure that DCHS minimises the financial risk from its business decisions whilst maximising its return. The development of the investment policy and pricing guidance approved by the Quality Business Committee (QBC), combined with a revised decision making tool, will ensure that the financial impact of all decisions taken, is much more explicitly and consistently considered at all stages of the business development process. Links to DCHS Strategy The agreement and implementation of the Business Development Framework will support the effective implementation of the Trust s Integrated Business Plan (IBP) through more explicit systems and decision making. Recommendations The Board is asked to note the updated Business Development Framework and approve the attached: Communication and Marketing Strategy (Appendix 1) Investment Strategy (Appendix 2) It is proposed that the Quality Business Committee will receive regular progress about the Framework s implementation as part of the Business Development update reporting. Monitoring Information Brief Summary CQC Compliance Monitor Compliance Monitor best practice advice followed in line NHSLA Compliance Assurance Framework Ref: Other Are there Equality & Diversity implications? Are there Patient and Public Involvement implications? with Risk Evaluation for Investment Decisions (If no, why) by BHS Foundation Trusts (REID) 2

3 Business Development Framework - Update Introduction This paper updates the Board on the development of the Business Development Framework and the progress made against the component parts and requests the Board to approve: The draft Communication and Marketing Strategy for discussion (Appendix 1) The draft Investment Policy (Appendix 2) The Quality Business Committee (QBC) has reviewed and supported the new and strengthened policies and processes through its September and October meetings. As an autonomous NHS provider and an aspirant Community Foundation Trust DCHS must ensure that all its business decisions and development proposals are: supporting the development of quality services; based on the best available intelligence; fully impact assessed; made within the context of the developing market and the existing and potential partnerships which could be developed to best exploit this market in line with the Trust s core strategies. As such the organisation needs to demonstrate a thorough and consistent approach which enables the Board to be fully assured that it is making sound business decisions which support its strategic objectives. To enable DCHS to do this a Business Development Framework is required and this paper outlines the current processes in place and outlines strengthened policies and processes and the progress made against each of them. The details outlined are in line with the Trust s preparation for CFT status and will provide useful evidence for the due diligence review. The adoption of a sound business development framework will ensure that DCHS minimises the financial risk from its business decisions whilst maximising its return. Business Development Framework and Update on Actions The following is a summary of the key business development processes and a brief commentary is given against each of these outlining the benefit, current position and the action required to achieve the desired solution where appropriate. 1. Relationship Management To ensure the Trust has good intelligence of current commissioning priorities, future opportunities, and current and potential future risks. 3

4 Currently the Assistant Director of Business Development (ADBD) scans national and regional intelligence and gathers business intelligence from the localities through the Business Managers and issues a monthly update. A timetable for the refresh of this intelligence in line with the development of the Integrated Business Plan (IBP)has been drawn up and implemented. The AD BD also coordinates contractual relations through the clinical commissioning groups though communications between services and specialist commissioners are not always captured through this process. Action: The intelligence gathering needs to be complemented by an engagement strategy whereby we can adopt an Account manager model with Clinical Commissioning groups streamline communications with practices and agree the principles of stakeholder engagement. This is being taken forward within the wider work on our Communications and Marketing strategy which was approved by QBC at its October meeting. This is attached for ratification at Appendix 1 By 30th September - William Jones and Simon Griffiths The Project Management Office will coordinate intelligence through the business development function to support this and to ensure that consistent communications are maintained with lead commissioners through the Contract Management Group. This will be further developed by the inclusion of information about the activities of our main competitors. In addition, a more proactive approach to the development of supply chain management which support our strategic aims and objectives, mainly through strategic partnerships and integrated service networks, is being pursued. By 30 th September Simon Griffiths / Lynn Wilmot Shepherd completed revised Business Development Update presented at QBC. 2. Assess the market and log business opportunities This enables DCHS to constantly be aware of the business opportunities open to it and the timescales for responding. This function is currently undertaken by the AD of Business Development who reports monthly through Trust Management Executive and to the Board. A log of all relevant opportunities and outcomes is now available and will be easily accessible on the new sharepoint site which is being developed to provide a central resource for all Business Development and contracting activities. The Communications and Marketing strategy will underpin this work and help to ensure that the organisation remains focussed on areas of strength and greatest opportunity Action: The way in which this intelligence is reported needs to be formalised within the new Governance structure through the Quality Business Committee which will in future receive the Business Development Updates which will reflect the strengthened intelligence gathering process summarised in section 1. By 30th September - Simon Griffiths - completed revised Business Development Update presented at QBC. 4

5 3. Review business opportunities As previously discussed, a strengthened tendering process and decision making tool has been developed to assess whether the Trust should progress with a tender. This was further revised by the QBC at its October meeting as requested by the Board, following the discussion about DCHS original decision to be the preferred provider of looked in rehabilitation services for learning disability patients on the Brookdale at Ash Green. This is currently applied by the AD of Business Development in collaboration with finance and relevant service / clinical leaders, the outcome of which is presented to the Trust Management Executive committee for formal decision. The tender process and decision making tool has been reviewed in the light of experience and of the investment policy and pricing guidance (see section 6). Action: Quality Business Committee to review and approve decision-making tool at its meeting on 14 September. Approved on 14 th September, reviewed on 17 th October and now implemented 4. Determine the Governance process for any developments A need to strengthen the Trust s decision making and approach to investments has been identified. An investment policy which is compliant with Monitor best practice guidance as outlined in the document Risk Evaluation for Investment Decisions by NHS Foundation Trusts (REID) has been developed and supported by the QBC. Furthermore a project management office (PMO) is being established with very clear systems for taking forward all business development decisions Action: Quality Business Committee to review and approve the investment policy at its meeting on 14 th September Approved at meeting on 14 th September The fist IBP Steering Group signed off the PMO arrangements on 6 th October. A verbal update on this was given at the QBC meeting. The Investment Policy is attached at appendix 2 for ratification by the Board. 5. Development of business cases This is to ensure that all aspects of the proposed project or development are understood, consistent and are available for appropriate challenge prior to submission for approval. A business case pro forma and supporting guidance have been developed as part of the new Project Office and IBP Delivery process which is currently being finalised. Quality impact assessments will be a key component of this process and will be integrated with the benefits realisation requirements of the proposed project structure. Action: Finalise the pro forma and guidance and formalise the reporting and approval process within the new PMO governance arrangements. This has been actioned by the IBP Steering Group at its meeting on 6 th October 5

6 6. Determine financial implications This is required to ensure a consistent approach to pricing bids and to assessing the margins and return on the business. In addition to the investment policy referred to in section 4 above, draft pricing guidance has been approved by the QBC. Action: Quality Business Committee to agree the attached draft pricing guidance at its meeting on 14 September Approved at the meeting on 14 th September 7. Tender Submission To ensure consistent approach to submitting tenders, and to ensure lessons learned from previous tenders Action: Tender Log to be established Completed see section 2 30 th September Simon Griffiths / Lynn Wilmot-Shepherd 8. Due Diligence and Close To ensure the Trust understands the risks and has appropriate indemnities in place Action: Due diligence template to be developed Completed and approved by the QBC at its October meeting. 30 th September Chris Sands 9. Implementation Plan To ensure the Trust has a comprehensive plan to establish the new service and to ensure the transfer is seamless and that Quality and continuity are maintained. Action: Ensure commissioners are aware of our experience to date, that our tender submissions reflect this and refer to our implementation /transition project team approach. Implementation plan template to be developed through development of handbook. this is nearing completion. 31 st October Simon Griffiths / Lynn Wilmot-Shepherd 10. Post Implementation Review (PIR) This is required to ensure the Trust learns from each business transfer and successfully delivers the services outlined in the Commissioners service specification and associated contractual obligations. In addition to ensure the Trust has the capacity for new service acquisitions in future and learns lessons from the process. These lessons are currently collated by the Business Development function and reported through the Business Development update to the Trust management Executive Committee. 6

7 Action: PIR template to be developed linked to Key Performance Indicators (KPIs) in the business transfer project as part of PMO governance systems. Consideration to be given to the establishment of a (possibly virtual) transition team depending on the complexity and location of acquired services.to be completed as part of PMO development 3!st October Simon Griffiths and Lynn Wilmot-Shepherd 11. Building Business Development Capacity There is a need to underpin the implementation of the Business Development Framework with a development programme aimed at those leaders who play a major role in developing and selling the Trust s services. It is proposed that a detailed proposal is developed for a development programme which will cover the main components of this framework and strategic planning. At this stage, it is intended that this is run in house, similar to the improvement leaders programme. Action: Initial development programme proposal to be discussed at October Trust Management Executive, led by Simon Griffiths, Lynn Wilmott-Shepherd and Amanda Rawlings. An initial specification has been drawn up based on discussions with managers across the Trust and will be discussed at the October Trust Management Executive. 7

This Policy supersedes the following Policy, which must now be destroyed:

This Policy supersedes the following Policy, which must now be destroyed: Document Title Reference Number Lead Officer Author(s) (name and designation) Ratified by Forensic Readiness Policy NTW(O)56 Lisa Quinn Executive Director of Performance and Assurance Sue Proud Information