A Collaborative Approach to Asset Management
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1 A Collaborative Approach to Asset Management Making Better Use of Public Assets WAO Conference - January 2015 Laura.stamboulieh@dtz.com
2 Introduction...and background Laura Stamboulieh, Director, DTZ UK Consulting 1
3 Workshop If time permits, I would like to cover the following with you The Collaboration Journey a look at the focus in England and Wales The Benefits of Collaborating a review of the potential advantages of a joined up approach What Drives Collaboration the extent to which governance is a driving force Assessing the merits of Collaboration what processes can be followed and the toolkit required Practical example an overview of an assetbased Collaborative project Audience participation is very welcome! 2
4 The Collaboration Journey in England Driving efficiencies across the public estate 2009 Treasury report of the Operational Efficiency Programme (OEP) Recommended value for money improvements across the public sector, including cost savings of up to 1.5bn a year from the property estate (compared to running costs) Treasury launches Total Place as a key recommendation of OEP A collaborative, whole area approach to public sector service planning and decision-making. Early pilots reinforced the important role that local authorities could play. 12 Total Capital and Asset Pathfinders established across England to develop investment and asset management strategies. Note that Regional Property Strategies for the Civil Estate were under development by the government in parallel! The Total Place initiative sets a new direction for local public services and local authorities, with a range of freedoms that define a new relationship with Government. It has shown how, through bold local leadership and better collaborative working, it is possible to deliver services which meet people s needs, improve outcomes and deliver better value for money. 3
5 At this point we decided to launch the DTZ Collaboration Survey (April 2011) Collaboration is high on the agenda in our organisation There was an increased view that the public sector was intending to collaborate more through choice 4
6 We asked about the status of Collaboration Initiatives... Source: DTZ Collaboration Survey April
7 We asked who the popular Collaboration Partners were... Source: DTZ Collaboration Survey April
8 The Collaboration Journey in England - cont The Government made a further push Cabinet Office in partnership with Local Government Association launches One Public Estate (OPE) recognising the need to join central government and the wider public sector estate Phase 1 sought to develop the 12 Pathfinder Projects further with a focus on driving out efficiencies across the whole public estate through joined up approaches to property across the range of public sector agencies OPE Phase 2 was launched 22 authorities are now part of the OPE programme that is expected to deliver 21m savings in running costs and 88m in capital receipts during a five year period. One Public Estate Where the assets of central government and the wider public sector can be brought together into a programme which achieves best value, economic growth and other social benefits 7
9 What about Wales? The Williams Commission report is effectively enforcing collaboration Setting aside local politics, the simplification of the public sector appears to open up significant opportunities Do you agree? 8
10 So what are the benefits of Collaboration? In April 2011 our survey highlighted perceived benefits cited by the public sector Source: DTZ Collaboration Survey April
11 Collaboration benefits will differ according to the priorities of organisations We believe that these can be distilled into 5 broad categories: Enhanced customerfocused service delivery Reduced service and property costs Catalyst for service transformation Enhanced capital receipts Meeting economic growth and regeneration priorities Are there any other benefits? 10
12 Is Collaboration driven by joined-up governance? It helps, but is not the only way! Joined-up governance can enable property-based collaboration but this is not the only answer: Full Merger Two or more organisations become one organisation. The new entity has one political body and one set of Corporate Aims and Objectives. Local politics would have less weight and this should give rise to many opportunities from a property perspective. This is relevant in the light of the proposed Welsh mergers. Joint Senior Management Two or more organisations remain as single entities but become managed by a single Senior Management Team (eg. CE and Corporate Directors). Local politics may prevail where separate operational/ political bodies and individual Corporate Aims and Objectives remain. Whilst challenging, this scenario could still give rise to property related benefits as a result of joined-up, strategic SMT oversight. No Organisational Change Two or more authorities remain as single entities in every respect i.e. no change. Whilst most challenging, a joint approach to property could still provide opportunities to: Share Civic and other operational accommodation Share Asset Management Rationalise the Joint Estate 11
13 Joint Property Management Vehicle, Worcestershire An example of collaboration in the absence of major organisational change Joint Property Management Vehicle, Worcestershire Property service-based collaboration between seven public sector partners comprising Borough Councils, County Councils, Police Authorities and Fire & Rescue Service Government sponsored project under the One Public Estate initiative Public sector owned property management company to be formed in 2015 to manage the Partners estate Savings of c.20% expected to be delivered over a 10 year period. 12
14 How can you assess the merits of Collaborating? We use a practical 10-step approach It is often difficult to scope and evaluate opportunities for collaboration from a vfm (financial and qualitative) viewpoint. This is important if a robust business case is to be produced to inform decision-making. We have developed a practical 10-step approach:. Clarify project drivers and objectives Ascertain the compatibility of Partners Agree project drivers and objectives Create robust baselines for cost-benefit analysis Scoping out the collective Partners requirement Deliver the preferred option Set a delivery platform and plan (commitment) Analyse the costs and benefits for all Partners Define potential options Engage to inform options definition 13
15 What toolkit is required? 5 crucial skill areas will support Collaboration-based considerations. Your Collaboration Toolkit should comprise the following core skills so that a project can be taken from an embryonic stage, into options development and analysis, to Business Case preparations and onto Delivery: A deep understanding of how the public sector operates and its current challenges Commercial insight and marketplace awareness VFM modelling expertise to appraise financial and non-financial aspects Skills in leading regulated and other procurement procedures Programme and delivery team management capability 14
16 Public Service Quarter & Central and Southern Gade Zone, Hemel Hempstead A COLLABORATION CASE STUDY PRIVATE & CONFIDENTIAL 15
17 Public Service Quarter, Hemel Hempstead Dacorum Borough Council and Partners The Hemel Hempstead project illustrates how a Lead Partner approach, driven by clear objectives and cross-party support, can act as a catalyst for collaboration (and regeneration). Architect illustration of front aspect of PSQ Overview 15 month Competitive Dialogue process completed in August last year New 7,000 sq m shared-occupancy Public Service Quarter (PSQ) Will anchor 6-acre town centre mixed-use regeneration Property-based collaboration between 4/5 public sector organisations Lead Partner to achieve c.30% reduction in annual HQ property costs Other Partners to realise capital value to reinvest in new facilities and/or to secure improved, flexible operational accommodation PSQ to be fully operational in early
18 Public Service Quarter, Hemel Hempstead Dacorum Borough Council and Partners Context & Challenge 17
19 Public Service Quarter, Hemel Hempstead Dacorum Borough Council and Partners Purpose The project to regenerate Hemel Hempstead Town Centre has been identified as a top priority for the Council. Because of its multi faceted nature, and proposals to deliver a new public service quarter, it contributes to all five of the Council s corporate objectives. The comprehensive VFM Options Analysis exercise explored 12 different occupational scenarios! The project achieved cross-party support from Day 1 because it met so many corporate objectives. This support has continued throughout the project life to date 18
20 Public Service Quarter, Hemel Hempstead Dacorum Borough Council and Partners Proper Preparation We spent a significant amount of time upfront preparing the opportunity for the marketplace. We wanted to de-risk the project to ensure that the opportunity was attractive and capable of delivery. This included gaining Partner buy-in and commitment. 19
21 Public Service Quarter, Hemel Hempstead Dacorum Borough Council and Partners Clarity & Confidence When the marketing campaign was launched via OJEU in May 2013, we were ready and clear about what we were offering to meet our requirements 20
22 Public Service Quarter, Hemel Hempstead Dacorum Borough Council and Partners Stamina! The 15 month process to select a Delivery Partner has required commitment, stamina and excellent team working from all involved. Our procurement process was Bidder-friendly to maintain competition. We maintained regular engagement with the Partners and other stakeholders. The DA is due for signature next week and design is progressing from Stage D/Planning into Stage E to enable the tendering of works to commence next month. The original target date for PSQ occupation in late 2016/early 2017 remains a real prospect. 21
23 Outcomes
24 Outcomes Regeneration of 6 acres within the town centre. A PSQ enabling collaboration between at least 5 public sector parties. New HQ accommodation for the Borough Council enabling flexible working and c.30% reduction in annual running costs. 250 additional homes. Family leisure including 9-screen cinema and restaurants. Strengthened linkages between the new development and the shopping zone. 23
25 In summary - 5 questions to ask! Regeneration Priorities are there areas where collaboration may act as a catalyst for 1 positive change within a locality? Service Delivery Aspirations are there service areas that would benefit from 2 collaborative working to make a qualitative (or quantitative) difference? 3 Portfolio Review does a scan across multi-partner assets show obvious opportunities for locality-based working and rationalisation through a pooling of property requirements? Property Services & Supply Chain could the management of the collective estate could be undertaken in a more efficient manner through the pooling of property 4 management personnel and the stream-lining of the supply chain? Civic Offices VFM Options Appraisal are there opportunities to co-locate organisations operating within the same geographical area to achieve economies of scale 5 through shared office and other civic space? 24
26 A Collaborative Approach to Asset Management Making Better Use of Public Assets WAO Conference - January 2015 Thank you. Please feel free to get in touch: Laura Stamboulieh Mobile: Laura.stamboulieh@dtz.com
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