REED IN PARTNERSHIP. Assessment Dates: 04/07/2016 to 07/07/2016. TMX Report Template V

Transcription

1 REED IN PARTNERSHIP Assessment Dates: 04/07/2016 to 07/07/2016 TMX Report Template V

2 Contents 1. About the Organisations Assessment Methodology Assessment Outcome Areas of Significant Strength Areas for Improvement Findings Against the Merlin Standard Conclusion... 30

3 1. About the Organisations Reed in Partnership (Reed) is a public service Provider, with a mission to be the partner of choice for developing people and their communities. It defines itself by its core values that have been adopted across the organisation and supply chains; we work together, we are fair, open and honest and we take ownership. Reed in Partnership started with one office delivering employment support in Hackney, and has subsequently grown to deliver a range of services across England, Scotland and Northern Ireland within the skills, employment and training sectors. It supports individuals, businesses, families and communities to prosper - often under challenging circumstances, through an extensive range of programmes delivered on behalf of government departments and funding bodies, including Department for Work & Pensions (DWP), Department for Communities in Northern Ireland, The Cabinet Office and the Skills Funding Agency (SFA). Currently Reed have the following contracts, where by a supply chain is involved in the delivery of the programme: Ø Work Programme in the West London, commissioned by DWP, Ø Work Routes in Hertfordshire and Cambridgeshire & Peterborough, commissioned by DWP, Ø National Citizens Service (NCS) in East of England and South West England, commissioned by The Cabinet Office, Ø Steps to Success (S2S) commissioned by Department for Communities in Northern Ireland, Ø Youth Skills Programmes - Not in Education, Employment or Training (NEET) Outreach, NEET Learners with Learning Difficulties and Disabilities (LLDD) and NEET Black Asian Minority Ethnic (BAME) in London, commissioned by the SFA. Since the assessment in July 2014 the following contracts have come to a close; Work Routes London and Merseyside and Changing Futures London, as well as the ESF Families, Right Futures and Work Place Learning. Whilst the organisation has received confirmation regarding the successful outcome following the recent ESF / SFA bidding activities, it continues to bid and wait confirmation of other contract awards. The current breakdown of the supply chain delivery is as follows: Work Programme 20% Work Routes Hertfordshire 20% Work Routes Cambridgeshire & Peterborough 28% NCS East and South West England 100% Steps to Success 51.5% NEET Outreach 100% NEET LLDD 100% NEET BAME 10% 1 TMX Merlin Report Template

4 2. Assessment Methodology Reed in Partnership continues to deliver the Work Programme in West London, as well as Work Routes in Hertfordshire, Cambridgeshire & Peterborough, which are funded by DWP, and consequently is required to be reaccredited against the Merlin Standard every two-years. It should also be noted that the organisation genuinely values the Merlin assessment process and welcomes feedback to inform continuous improvement. The scope for the assessment included all contracts being delivered through the use of a supply chain, as a result the Work Programme, Work Routes, SFA NEET contracts and the NCS programme, as well as the S2S contract within Northern Ireland were included in this reaccreditation assessment. The assessment team comprised of Lorna Bainbridge (Lead Assessor) and two team Assessors: Stuart Morgan and Kim Howard, supported by a Coordinator within Reed. The Lead Assessor and a Reed Coordinator started planning the assessment in March 2016 whereby the scope and logistics of the assessment were identified, and the on-site dates agreed. Reed provided a list of Supply Chain Partners (referred to as Providers throughout the rest of the report) for all contracts in scope, including past, present and potential, which indicated tier 1 (endto-end), tier 2 (specialist), tier 3 (ad-hoc / spot-purchase) and tier 4 (long standing relationships). The Merlin survey was sent to all those listed, of which 37 responded. The Lead Assessor subsequently selected a number of Providers to be interviewed taking into consideration all contracts, the different tiers and past, present and potential status. The Lead Assessor was in regular contact with the Coordinator prior to the on-site to review the schedule and logistics of the on-site activity. Prior to the on-site activity all documentation required for the assessment; Self-Assessment Questionnaire, Pre-Assessment Notes and schedules were shared within the agreed time-scale. The assessment team spent a total of 9 days on-site reviewing documentary evidence and undertaking interviews with 60% of the tier 1 Providers, from across all the contracts. In addition, tier 2, 3 and 4 Providers contributed to the assessment, as did a number of potential and past Providers. A few tier 1 Providers have designed a second tier subcontracted provision and as a result a small sample of these were selected and interviewed to test the quality assurance, compliance and performance management practices. A number of Reed s staff involved in the strategic and day-to-day delivery of the service and management of the supply chains were interviewed across the contracts to enable the assessment team to gain a full understanding of the delivery models, including the systems and processes implemented, which were fully tested throughout the interviews with Providers. 2 TMX Merlin Report Template

5 3. Assessment Outcome Overall % Overall Outcome 92% Excellent Supply Chain Design 100% Excellent Commitment 91% Excellent Conduct 95% Excellent Review 83% Good 3 TMX Merlin Report Template

6 4. Areas of Significant Strength A number of significant strengths and areas of excellence in practice were identified during this Merlin assessment and summaries of these are given below. The numbers in brackets refer to the criteria of the Standard to which the areas relate. Ø Reed gain a good understanding of the issues being faced by current and potential customers and communities prior to bidding for contracts It invests extensive time and resources in a range of research activities at local, regional and national levels. Consequently, consideration is made to the scope and variety of the Providers within the supply chain to support the achievement of the commissioner s objectives. The supply chain is made up of a mix of public, private and third sector organisations to provide a holistic service, which meets the needs of customers and addresses the contractual requirements. (1a.1, 1a.2) Ø Reed responded positively to the recommendations made following the Merlin assessment in 2014, and as a result have actively increased the deployment of services provided by organisations outside of the supply chain. The aim has been to ensure that the changing needs of customers is addressed through bespoke, innovative and flexible approaches. (1a.3) Ø A range of communication strategies have been designed and implemented pre and post contract award, and throughout the life of the contract to ensure Providers receive appropriate information and support whilst working with Reed. (2a.1) Ø Over the life of the contracts the trust and confidence between Providers has evolved, and as a result there is a greater effort / willingness to work together as a supply chain to meet the needs of the customers and requirements of the commissioners. In addition, the working relationship between internal and Provider delivery has improved and as a result there is increased levels of collaborative working. (2a.3, 3d.1) Ø Providers are aware of the different personnel with Reed, including senior leaders, who are involved in all aspects of the supply chain from design, commitment and conduct through to review. Providers confirmed that staff were consistently positive and supportive, and that communication is open and honest, and they are confident to challenge and discuss issues and concerns at any stage of the contract. (2a.4, 2a.5, 3a.3) Ø Senior leaders believe they have a responsibility to ensure Provider organisations are continually developing and sustainable to deliver the current and future contracts. Consequently, every effort is made to support the infrastructure and growth of these organisations and ensure they are fit for purpose. Recently a six-monthly Provider Capacity Analysis has been introduced, which aims to encourage a full review of the business, including marketing, finance, environmental sustainability, etc. (2b.1) 4 TMX Merlin Report Template

7 Areas of Significant Strength Cont./ Ø The promotion and facilitation of staff development has improved over the past twoyears, the Contract Performance Review (CPR) provides the Provider with the opportunity to review the needs of the delivery staff, and in turn Reed have delivered a range of activities to address key topics, for example, quality and assurance practices, effective use of management information, as well as high quality delivery, embedding essential skills, etc. In addition, following the launch of the Provider Capacity Analysis Reed have delivered a range of webinars to address key business requirements such as marketing, environmental sustainability, etc. which is to be continued. (2b.3) Ø All Providers are issued with a contract, clearly indicating the terms and conditions, including the obligations of all stakeholders, performance expectations, volumes, funding / finance arrangements, etc. which is reviewed at an individual level. In the event of changes being made to the contract these are openly discussed with Providers and documented. (2c.3, 3c.1, 3d.3) Ø Providers clearly understood the rationale for the market share allocation, and explained how they were involved in consultation and negotiation activities throughout the contract set-up and throughout the life of the contract, and consequently, their requirements and expectations were taken into account pre and post contract award. (2c.4, 2c.5, 2c.6) Ø A self-billing invoice system has been implemented, which provides partners with a streamlined approach to raising invoices / claims. Following the submission of the invoice / claim, payment is made within the agreed thirty days, but often within seven to fourteen days. (2c.7) Ø The Supply Chain Charter was designed in consultation with the Providers, which clearly indicates the three principle values and outlines the behavioural expectations. All Providers have signed up to the values and believe the behaviours are displayed throughout day-to-day activities. (3a.1) Ø The TUPE strategy was utilised over the past two-years, and staff involved in transfers confirmed that the process was followed and communication was highly effective. (3a.2) Ø Communications relating to legislative and regulatory requirements and changes, as well as contractual update were found to be robust, and Reed delivery staff checked understanding and implementation of any requirements to ensure Providers continued to be contractually compliant. (3a.4) Ø The processes, policies and activities to monitor the quality of delivery and the customer experiences are well embedded, and findings are utilised to inform and improve the delivery of the services. The quality of the service delivery to customers, data and asset security and safeguarding of vulnerable people are constantly under review. (3b.1, 3b.2, 3b.4, 3b.6) 5 TMX Merlin Report Template

8 Areas of Significant Strength Cont./ Ø A culture of sharing excellent / good practice within and across the supply chains has evolved over the life of the contracts, due to building trust and confidence amongst the Providers and encouraging them to share and celebrate the successes and achievements. This was further evidenced by Providers welcoming the sharing of performance achievements and expectations across the internal and external delivery with the aim of learning from each other to improve performance across the supply chain / contract. (3b.8, 3c.4, 3d.2) Ø The performance management framework is well embedded across all the contracts with weekly and monthly formal activities to review performance, identify innovation and deal with issues and concerns relating to the contract. (3d.2) Ø Reed are committed to ensuring diversity and equality is aligned across the supply chain and fully test Providers policies and practices prior to contracting with them. These are further tested throughout the life of the contract through observation of the delivery staff. Data relating to Equal Opportunities is collected, analysed and used within Provider organisations and across the supply chain with the aim of attracting a diverse range of customers / social mix and establishing the needs of the different groups to improve the delivery of the service to meet targets. (3e.1, 3e.3) Ø As previously stated, Reed value feedback from different stakeholders through formal and informal methods with the aim of improving its practices and service delivery. A schedule has been designed whereby an Evaluation of Service (EoS) is undertaken to gain feedback from customers, Providers, employers, etc. In addition, customer forums, Provider meetings, Service Development Board (SDB), CPR, etc. provide opportunities to collect feedback, as well as external assessments and audits, which are undertaken in a positive vein with the aim of using the feedback to further improve performance. (4a.1) Ø The senior leadership team is visible across the internal and external delivery strands, and take every opportunity to share Reed s vision and strategy and how this is aligned to the current and potential contracts. The six monthly SDB provides Providers with the opportunity to engage in such discussions and to gain a clear understanding of the commissioner s wider social objectives, how Reed is aligned, as well as the supply chain. (4a.3) 6 TMX Merlin Report Template

9 5. Areas for Improvement The following areas for improvement-could be considered for review and improvement. The numbers in brackets cross-reference the findings to the relevant element and criteria of the Merlin Standard. Ø It is recognised that over the past year there has been limited opportunities available to access additional funding / finance streams. Whilst Providers have been advised of some opportunities, in the future, consideration could be made to being far more proactive by seeking and promoting local and regional opportunities to access additional funding / finance, and where practical supporting Providers to prepare and submit bids. (2b.2) Ø The Providers delivering the DWP, Department for Communities in Northern Ireland and SFA contracts had a very clear understanding regarding the management fee being paid and the services / support gained as a result. Those delivering the NCS contract recognised that a management fee would be paid, however, failed to have a good understanding of the value of the fee, and in some cases what they gained as a result. Consequently, in the future, irrespective of the commissioner, consideration could be made to interpreting the fee in a simplistic form and ensuring clarity regarding the services / support gained as a result of paying the fee. (2c.8) Ø A number of Providers provided anecdotal evidence of the impact contracts were having on the wider social objectives / policy intent of the commissioner and some were starting to undertake impact studies. In the future, consideration could be made to establishing a far more robust approach to involving Providers in measuring the impact of the supply chain/s on the wider social / policy intent and environmental sustainability. (4a.4, 4a.6) 7 TMX Merlin Report Template

10 6. Findings Against the Merlin Standard 1) Supply Chain Design 1a) Supply Chain Design Reeds key focus is to contribute to the development of people and their communities, and as a result identify gaps in the provision of services at local and regional levels, and subsequently seek opportunities to access funding to support customers. The organisation has designed a robust strategy to support its approach to tendering for contracts and designing the supply chain, which is broken down into three stages; identify, develop and review. The identify stage clearly identifies the commissioner s objectives and contractual requirements and ensures that Reed has a clear understanding of the requirements of the contract. This provides the first indication as to whether the service it strategically aligned to Reed s strategy and the need of a supply chain to support the delivery of the service. Extensive research is undertaken to gain a clear understanding of the landscape of the service to be delivered, for example, geography and local demographics, socio-economic factors, local transport infrastructure, etc. This approach was used throughout the recent European Social Funding (ESF) / SFA tendering activities, and will continue to be used in the future. Reed has invested in a new tool; Insightly, which is used to track information gathered relating to external organisations including but not limited to sector, area of delivery, examples of good practice, performance and innovation relating to partnership working, etc. This provides additional information, which is used to design an effective supply chain to meet the commissioner s objectives and meet contractual requirements. The develop and review stages of the tendering and supply chain design approach includes opportunities such as inviting potential Providers to briefings with the aim of sharing an overview of the contract; objectives, expectations, funding / financial packages, etc. and gain feedback from them, which often influences the bid document. This was adopted when bidding for the SFA NEET BAME contract whereby the expertise of the different sectors and organisations was used to ensure the holistic needs of customers would be addressed. In the event of a short lead time to submit bid documents, which was experienced throughout the recent tendering activities for some of the ESF funding opportunities, telephone contact with 200 different stakeholders was undertaken, which included Local Authorities, (LAs), Housing Associations (HAs), present and past Providers, etc. The purpose was to gain key, current information relating to local issues, demographics, barriers being faced by customers in the area, transport links, etc. Reed deliver a percentage of the contracts through an internal delivery model (where the skill and expertise exists) to gain a full understanding of the complexities and challenges of the delivery of the contracts. However, it recognises the value of working with a range of organisations from the private, public and third / voluntary sectors in order to meet the needs of the customers and contribute to the commissioner s objectives. Currently, 22% of the Providers are from the public sector, whilst 39% private and 39% third sector, which provides a good mix and addresses the holistic needs of customers, and where appropriate the local demographics. 8 TMX Merlin Report Template

11 Some Providers recognise the value of having a mix of organisations within the supply chain and made the following comments: We are a group of mixed ability Providers. Essential if we are to cater for all our customer s needs. A broad range of organisations including colleges, charities, community groups and limited companies are all singing from the same hymn sheet. We share a common purpose. A directory listing the tier 2, 3 and 4 Providers provides access to a range of additional services to address the needs of the customers, organisations include those specialising and supporting customers manage addictions, whilst others have skills and expertise to work with customers with a range of health; mental and physical issues / barriers through to a number of training and development organisations, etc. The business development team continue to work with the operational staff to further expand the network and have recently created partnerships with specific organisations to support young people with mental health issues in London, and a training provider to deliver a range of awareness sessions to staff to increase their understanding of the breadth and range of mental health issues. Providers recognise the value of having access to a range of support services and made the following comments. It s by using the wider networks that we add value Our people often need the assistance of organisations who aren t trying to get them into work. Some Providers have designed their own supply chain in order to deliver the services with the aim of meeting the commissioner s objectives, performance expectations and providing a holistic service to meet customer s needs. In addition, Providers confirmed that they are encouraged to develop their own local networks to meet the needs of customers, and made reference to referral organisations with no charges attached, as well as specialised / ad-hoc services. The senior leaders and managers are passionate about the welfare to work sector and supporting people and communities, and as a result, actively seek opportunities to meet with external bodies and organisations to identify and influence future services at local, regional and national levels. Reference was made to meeting with DWP, Department for Communities in Northern Ireland, SFA, as well as Employment Related Services Association (ERSA), JobCentre Plus, Local Enterprise Partners (LEPs), LAs, HAs, etc. to lobby views and opinions and contribute to new contracts / programmes, including the proposed Health and Work Programme. 9 TMX Merlin Report Template

12 2) Commitment 2a) Collaboration, Cooperation and Communication The business development team has clear communication strategies for promoting the opportunities to work with Reed, which starts by encouraging potential Partners to join the Partner Network. Currently there are in excess of 800 organisations within the network from different sectors and of varying size, operating at local, regional and national levels. Subsequently the opportunities to partner with Reed in the delivery of a contract is promoted to the network through the website, newsletters, s and direct approach from a member of staff. In addition, as indicated previously, time permitting, briefings are hosted by Reed whereby potential Providers are invited to gain further information regarding the offer available. Provider comments included: There was no such thing as a silly question. I was surprised that they would find the time to speak to me when it was a speculative bid, I felt reassured that they were looking for partners and valued them. The initial Expression of Interest (EOI) is accessible through the website and contact details are provided in the event of questions or issues encountered throughout completion. The EOI provides extensive information relating to the proposed contract to ensure Providers have clarity regarding the expectations at the outset. Throughout the period prior to contract award Providers are kept abreast of critical decision-making dates via with the aim of managing their expectations effectively. Subsequently, post contract award Reed enter the due diligence period and host a range of meetings at supply chain and individual level to ensure Providers receive the appropriate support and guidance, and are fully prepared for the contract start date. Throughout the life of the contract formal communication processes are used to keep Providers up to date, for example, monthly Provider meetings for managers, six-monthly SDB for those operating at a strategic level within the Provider organisations, as well as weekly tele-kits, monthly CPR and informal discussions to manage the delivery of the service, quality and compliance in line with the contractual requirements. Providers are encouraged to be actively involved and engaged in consultation activities prior to bidding and throughout the life of contracts. Providers confirmed that they had been consulted regarding the definitions of the core values and value for money statement, as well as influencing the design of systems and processes, before and after the contract started. Reference was also made to changes in the customer journey, paperwork, CRM and management information systems, etc. The working together value is recognised at Provider level, as there is a clear understanding that the success of the contracts is based upon the success of all Providers, including the internal delivery strand. Consequently, Providers have been encouraged to work collaboratively with the aim of achieving the overall targets and objectives of the contract. Opportunities are provided to facilitate collaborative working, for example, Provider meetings and forums, SDB, etc. 10 TMX Merlin Report Template

13 Throughout the life of the Work Programme the Providers have developed a sense of trust and confidence in others, and seek opportunities to work together and share resources, including but not limited to learning and development activities for staff, co-hosting events, sharing office space, sharing vacancies, as well as customers; there was evidence of Providers referring customers to others to meet specific needs, etc. Provider comments included: When we get too many recruits for our intake but not enough to make up a full cohort, we secured places for the young people with another provider in our group who had the capacity for them. On occasions we have job vacancies with no suitable candidates for them so we offer them to other partners who can match the job with a customer. The same evidence was collected across other contracts, for example, NCS Providers had shared sign-ups, observed each other s delivery and used other s contacts for delivery venues. In addition, there was evidence emerging that Providers had entered bulk buying arrangements to gain better purchasing rates. In the true spirit of collaborative working Reed endeavour to work proactively with other Primes and as a result participate in a range of local and national meetings hosted by DWP and Department for Communities in Northern Ireland with the aim of sharing good practice to improve performance across the respective contract. This has been taken one step further with six Primes within London sponsoring a recruitment manager post for an organisation, and subsequently vacancies have been shared across the Providers. Reed s organisational structure is simple and accommodates a range of functions, from supply chain design, procurement, contracting through to managing performance, compliance and quality of the delivery. Providers were clear regarding the different functions, which included business development, implementation and operational teams. In addition, due to the visibility of some members of the senior leadership team a number of Providers made reference to having the confidence to approach them to seek clarification / information, if required. Providers are assigned a key contact in the form of a Supply Chain Manager / Executive (SCM/E), however, they are also aware of different contacts within the implementation team, finance, assurance and quality teams who are equally accessible and accommodating. Providers spoke of the support gained from staff across Reed, and confirmed that over the past two-years everyone had brought into the concept of we re in it together and developed true partnership working. Provider comments included: The Supply Chain Manager is our primary contact for most things but we have other contacts for specifics like Quality and Compliance. Their communication is quite good, there is no ambiguity. Very business-like. All interactions are professional and they are really supportive. In summary, Providers confirmed that there is a culture whereby communication is open and honest, and without unreasonable restraint, which is evident from the senior leaders through to the operational staff. Provider comments included: I ve experienced nothing but open and honest communication. I feel that I could approach them with my issues and they will help if they can. There is no threat when seeking answers. It s very personal. None of that hierarchy. They go overboard to try and help us. It s about doing the right thing with the right people at the right time. 11 TMX Merlin Report Template

14 2b) Developing Supply Chain Partners Reed have developed a culture whereby they proactively support and encourage the development of Provider organisations with the aim of building sustainable businesses. However, in the first instance it was noted that it opts not to work with Providers, which are reliant on one contract, or where the contract would increase the turnover by 25%, as a result throughout due diligence a full review of the financial stability of the organisation is undertaken. In addition, throughout due diligence the relevant policies are collected and reviewed by the specialist / head of department, and if necessary feedback and support is provided to ensure the policy is fit for purpose. In recent due diligence activities some Providers gained support to address NEET and Prevent within the safeguarding policy, whilst another required further guidance to design a robust remote working policy. Prior to contracts starting Reed provide extensive support to equip the Providers with the resources required to operate, for example, CRM and management information systems, paperwork, customer journey mapping, etc. As well as working with them to develop robust compliance and quality assurance processes. Throughout the life of the contract support continues to be provided and on occasions Providers have been encouraged to diversify and / or increase its market share or volumes of the current contract. Recently, a Provider Capacity Analysis has been introduced, which is a self-reflection tool and encourages organisations to review the performance and plans of key areas of the business, for example, environmental sustainability, impact on the wider social objectives, governance, etc. This is in an effort to further support the development of organisations. Subsequently, quarterly capacity building webinars have been introduced to cover key topics, for example, environmental sustainability, marketing, value for money, etc. As a result of the initial self-assessment, one partner identified additional support required in the area of staff development and well-being, and as a result Reed are working with them and sharing their approaches to performance management in an effort to formalise their processes. Provider comments included: They are very supportive both proactively and reactively in helping us to develop within this contract. The Provider Capacity Analysis has provided me with focus to develop environmental sustainability targets and then monitor them every six-months. The truth is that we probably wouldn t still be around without Reed. We are the top performing subcontractor because of their support The Providers are listed on the Partner Network and consequently opportunities to bid for contracts with Reed are promoted via , the website, and if appropriate through direct contact from a member of staff. There was evidence of Providers increasing their market share and volumes within current contracts and / or having the opportunity to deliver services within other contracts due to their area of expertise. These opportunities had been facilitated by Reed due to close monitoring of performance and identifying specific gaps in the delivery of services. 12 TMX Merlin Report Template

15 Over the past year the opportunities to access additional funding / finance streams have been limited, however, some have been promoted through the newsletter, whilst some Providers have been directed to different tendering portals. In the future, consideration could be made to being far more proactive by seeking and promoting local and regional opportunities for Providers to access additional funding / finance, promoting them to Providers and where practical supporting the preparation and submission of the bids. One Provider comment included: We got signposted to another provider for involvement with the same type of contract. Prior to the start of a contract a range of learning and development activities are identified and provided to managers and delivery staff to ensure they have the necessary knowledge and skills from the on-set. Subsequently, additional learning and development needs are identified throughout the CPR, compliance and quality audits, observation of practice, etc. Learning and development activities in recent months have included further CRM and management information sessions, compliance and quality checks, implementing the customer journey, safeguarding, etc. In addition, specific learning and development activities are provided to address the commissioner requirements and interpreting the guidance notes, for example, managing dormant members, universal credits, etc. Providers also made reference to being able to contact the subject matter experts within Reed, for example, data security, health and safety, safeguarding, etc. to seek information and guidance. Also as referenced above, more recently the Provider Capacity Analysis encourages Providers to reflect upon the processes to effectively performance manage staff and identify learning and development needs. Reed provide all Providers with access to the learning and development opportunities available to their own staff, including e-learning modules, workshops, courses, etc. The most recent activities have included topics such as high quality delivery, progress reviews, embedding essential skills, etc. In addition, the SCM/E provide one-to-one coaching and on-the-job support, and shadowing and sharing good practice are actively encouraged with the aim of improving performance across the delivery of contracts; internal and external. Provider comments included: A session on writing press releases was delivered by a PR Consultant at the partner forum We have accessed a lot of training both formal and informal from our supply chain manager. There are a lot of programmes on line which we access. They were really good with the availability of training. Not only did they train staff, but trained others so that we had some resilience in case of absences. 13 TMX Merlin Report Template

16 2c) Contracting and Funding Reed have designed a robust approach to procuring contracts to ensure the it is fair and transparent in the way it selects and communicates with potential Providers. The Head of Partnerships leads the process, and designs a standard scoring criteria for the EOI, which all submissions are assessed against. The key measures tend to be organisation infrastructure, previous performance and resource requirements. Subsequently, submissions are reviewed and scored against the criteria by senior leaders, including members of the Board. Successful Providers are advised of the outcome and undergo a second stage EOI activity, which aims to gain further details from the Providers regarding delivery model, volumes and geographical locations. In addition, if the commissioner procurement permits, the Provider is invited to indicate the funding levels required. This information provides the basis by which negotiations can start regarding market share, volumes, funding, etc. at the next stage. Unsuccessful Providers are provided with the outcome of the process, and if requested, can seek feedback, which may influence future EOI submissions. In the future, Reed may consider being far more explicit and providing an indication of the scoring mechanism and how the potential Provider was scored. A number of Providers involved in recent procurement activities could recount the process and confirmed that it was fair and transparent, and that Reed managed their expectations through frequent communications in a timely manner. Provider comments included: The whole process is open throughout. We put in a second EOI and we were awarded the contract. Communication was good throughout the process. Providers made reference to the due diligence process and confirmed that it was not too burdensome, it was what they expected and that support and guidance was available from Reed, if required. Subsequently, they are aware of the annual requirements whereby policies are refreshed and public liability, employer liability and professional indemnity certificates submitted at the point of renewal. Following contract award, Providers are handed over to the implementation team to support them to prepare systems and processes to deliver the service. Consequently, a range of interactions take place at supply chain and individual Provider level, which address such matters as funding / finance arrangements, allocation of market share, agreeing volumes, confirming performance expectations, etc. The commissioner s contracting requirements are typically cascaded to Providers, which often includes the funding arrangements. However, as stated above, where possible Reed will gain an indication from Providers regarding the funding required, which is subsequently reviewed and agreed. Throughout the life of the contracts consideration is made to the viability of the contract to ensure Providers are not put at financial risk. This was evidenced across the Work Programme whereby referrals are reducing, and as a result, open and honest discussions have been undertaken relating to the financial viability of the contract and on occasions volumes have been transferred from internal delivery to the Providers. 14 TMX Merlin Report Template

17 A few Providers confirmed that they are encouraged to discuss issues and concerns regarding any aspect of the contract, including funding, and as a result Reed have demonstrated a level of flexibility. One NCS Provider was allocated additional flows, and as a result requested earlier payment for a season, whilst another gained an advanced payment to support cash flow, and another experienced issues with VAT, which Reed managed effectively. One provider comment included: They have taken our position into account and we always get paid on time and the amount that we expected. The contractual requirements are reviewed with all Providers prior to the start of the contract. A contract / service level agreement is prepared and submitted to the Provider, which clearly indicates the obligations of all parties; Provider, Reed and the commissioner. Subsequently, Reed review the contract with each Provider to ensure understanding of the obligations and expectations in terms of reporting and managing risk, compliance, quality and performance levels, minimum service levels with customers, etc. Providers confirmed that the contract was straight-forward, reflected that of the commissioner and provides a clear indication of all parties obligations and what was expected of them. Provider comments included: Met my expectations. We knew exactly what we were getting in to. Their documentation is clear and accurate. We were given time to study the draft contract before signing it. We went through the contract with someone from Reed. Reed ensure that there is a viable and transparent allocation of market share within supply chains, and that Providers clearly understand the rationale. In order to manage Provider expectations, as referenced previously, throughout the second-stage of the EOI Providers are invited to indicate their geographical locations, which is subsequently used to determine the market share. A number of Providers confirmed that this had been the case and the allocation was viable and transparent. Some Providers made reference to changes to the market share, for example, across the NCS provision, schools had been reallocated based on the analysis of potential participants in each area. This was to ensure all Providers had sufficient volume of activity to meet the targets, and whilst some were disappointed to lose specific schools the rationale was understood. The Providers are invited to indicate volumes and finance / funding arrangements, which are used as a basis to start negotiations. Providers confirmed that negotiations were positive and if appropriate there were opportunities to open the negotiations to reflect performance achievements. One Provider comment included: There were clear and unbiased negotiations to sort numbers. The performance expectations are clearly defined prior to procurement to ensure Providers clearly understand what they are entering into, and throughout the life of the contract these are reinforced at regular intervals. 15 TMX Merlin Report Template

18 Prior to entering into a contract with Reed, Providers believe their requirements were taken into account, which have subsequently been honoured post contract. Whilst there is little flexibility with contracts that are based on the payment by results model, Reed have been supportive of Providers when required. Similarly, if Providers seek to increase / decrease the volumes the door is always open for renegotiation. Similarly, in the event of contract variations, post contract due to the changing requirements of the commissioner, for example, target groups, Providers confirmed that Reed will review and negotiate the volumes and performance expectations. Reed have adopted a self-billing process to contribute to ensuring Providers invoice correctly and in a timely manner, and subsequently gain accurate payment, within the agreed timescale. Providers clearly understood the monthly timeline and consequently a large proportion of Providers submit the final invoice promptly. Subsequently, payment is made within 14days. There was evidence of some payments being made within 7days. Some Providers fail to submit invoices on a regular basis, and as a result the finance team will provide a prompt to encourage submission. Providers confirmed that payments had consistently been made within the terms and conditions of the contract and often payment is received earlier than anticipated. Provider comments included: Very prompt payment with an accurate reconciliation sheet We get paid on time and the sum is always accurate. Reed has an open and transparent approach to its management fees, which are reviewed throughout the contracting activities and publicised on the website, which results in a high proportion of Providers having a clear understanding regarding the fee and the services / support provided. The Providers delivering the DWP, Department for Communities in Northern Ireland and SFA contracts had a very clear understanding regarding the management fee being paid and the services / support gained as a result. Services / support cited included preparation for delivery of the contract, access to CRM and management information systems, ongoing learning and development activities, compliance and quality audits, performance management, etc. Some Providers, predominantly Work Programme made reference to a reduction in the management fee due to the maturity of the contract and less reliance on the services / support provided by Reed. One Provider comment included: We need Reed to do exactly what they do and we are satisfied with what we get. However, a number of Providers delivering the NCS contract recognised that a management fee would be paid, but failed to have a clear understanding of the cost, and service / support received as a result. Consequently, in the future, irrespective of the commissioner, consideration could be made to interpreting the fee in a simplistic form and ensuring clarity regarding the services / support gained as a result of paying the management fee. One Provider comment included: I know they top slice the charges to cover management fees but I m not sure exactly how much it is. 16 TMX Merlin Report Template

19 3) Conduct 3a) Demonstrating Commercial and Business Integrity Reed have very clear core values, which describe how we approach our work and make decisions, which are subsequently publicised on the website, via posters, mugs and other promotional means. Interviews with staff confirmed that the values are a way of conducting business within Reed, and could describe the behaviours expected on a day-to-day basis. Whilst Providers are selected based on a number of criteria, for example, infrastructure, geography, performance, etc. consideration is also taken as to how they are aligned to Reed s values. Reed make every effort to work collaboratively, as well as being fair, open and honest, and taking ownership, which is expected from its Providers. The Supply Chain Charter was designed through consultation with the Providers, which incorporated the Reed s core values, as there was a strong belief that these were fit for purpose for supply chains. Providers were involved in designing the expected behaviours within each value when working with Reed s staff and within the supply chains. A number of Providers made reference to the Charter recently being under review to ensure it continued to be fit for purpose. Provider comments included: A culture of being in it together. I know that you don t want me to vocalise them but they are well known. I haven t committed the exact words to memory but there are many ways of expressing the themes. Reed have designed a robust, but flexible TUPE strategy to transfer staff from and into Provider organisations. Changes in contracts / programmes and Provider organisations that impact upon staff are fully analysed to establish the TUPE implications to ensure Reed are operating in line with the requirements of the commissioner s contract and legislation. The Human Resources team actively oversee the TUPE process and make every effort to make the experience positive and supportive with staff undergoing a smooth transition. The Providers and staff involved in TUPE activities explained the process, and confirmed that it was effective and efficient with Reed making every effort to minimise the concerns experienced by staff undergoing change of this nature. Providers confirmed that Reed was quick to respond and ensured it complied with legislation and provided a smooth transition for all parties. One member of staff used the following words; prompt to respond, professional and minimised anxiety. Whilst another made reference to effective and inclusive communications, consultation and an easy transition. Staff comments included: When it came time for me to move on they were just as helpful. It was very well organised. I expected it all to be done by and was pleasantly surprised that it had the personal touch. It passed very smoothly. It was clearly well planned and managed. Staff recognise the importance of partnership working; building and maintaining positive relationships with all stakeholders and working collaboratively to support the delivery of the services. Many staff made comment regarding we re in it together and our success is based on Providers achievements, and consequently seek to be readily available and accessible as and when required by Providers. 17 TMX Merlin Report Template

20 The most recent EoS undertaken with Providers indicated that 82% agreed and strongly agreed that they were supported to deliver a high quality customer experience. Throughout the interviews Providers confirmed that interactions with Reed continued to be positive and supportive, due to the ongoing, open and honest communication channels and extensive support to ensure performance expectations are met, as well as quality and compliance requirements being fulfilled to a high standard. One Provider made reference to the Service Improvement Process (SIP), whilst initially failing to appreciate the value of the activity, subsequently recognised the impact and improvements made as a result, due to the way it was implemented. Another Provider made reference to contacting the IT Helpdesk, and once again experienced a very helpful and supportive member of staff. Providers are confident to express their views and opinions, and challenge the way things are done on occasions, and believe this is managed effectively as there is a genuine desire to learn and improve. Provider comments included: We have dedicated points of contact and to be fair that works very well. They are really helpful if you are having issues. I have never found them less than helpful and supportive. Reed implement a robust approach to due diligence, which includes a review of a range of policies and procedures to ensure they meet regulatory and legislative requirements, as well as the commissioner s requirements. Subsequently, updates and changes to regulatory and legislative requirements are communicated by daily, weekly and monthly activities, for example, s, telephone calls, CPRs, Provider meetings, etc. with the SCM/E. The understanding and implementation of any changes are followed up within an agreed timescale to ensure Providers continue to operate in line with the requirements. The information is stored centrally, for example, Orion (a CRM system) to provide Providers with ongoing access to reference in the future, which is found to be beneficial as the information is readily available to communicate to delivery staff. One Provider comment included: Orion is kept up to date and has all the information we could ask for. If there s anything you want in addition the SCM will help. A similar process is adopted to update Providers relating to changes in contractual requirements, for example, the roll out of the Universal Credits was communicated initially through a Providers meeting via a subject matter expert and followed up an . Subsequently, additional support has been provided to ensure Providers implement the requirements correctly. 18 TMX Merlin Report Template