SHAW TRUST. Assessment Dates: 24/05/2016 to 27/05/2016. TMX Report Template V

Transcription

1 SHAW TRUST Assessment Dates: 24/05/2016 to 27/05/2016 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... 22

3 1. About the Organisations Shaw Trust is a national charity, which supports disabled and disadvantaged people to prepare for and find work and to live more independently. It believes everyone has the right to work and it has worked for over 30 years to turn its vision into reality. Every year, Shaw Trust works with more than 50,000 clients who face barriers due to disability, ill health or social circumstance, and it is currently the UK s largest third sector provider of employment services. In 2016/17 it has an estimated turnover of c 91m and has reserves of c 40m. It has around 1000 staff in 150 locations. It operates Work Choice and Work Programme as Prime Contractor in 17 contract package areas across the UK, leading a diverse range of organisations to provide employment-based services to people with disabilities and those experiencing disadvantage in the labour market. Shaw Trust now also delivers the National Offenders Management Service (NOMS) Co Financing Organisation Round 3 provision, Specialist Employability Support (SES) and Kent Mental Health contracts. Shaw Trust engages with high-quality Supply Chain Partners to help support delivery and meet its aim of providing an excellent service to customers. Typically it works with end-to-end service providers that have a well-established delivery network, existing infrastructure, or greater knowledge or capabilities in a geographical area. Shaw Trust always owns the client journey and is accountable to the contracting authority, such as the Department for Work and Pensions (DWP), for successful delivery of the services. It aims to work with Supply Chain Partners that reflect the company values. It seeks partnerships that: put customers at the heart of what we do" are clear, purposeful with a focus on achievement are committed to 'best practice' and continuous improvement foster innovation are creative and enthusiastic are honest, transparent and respectful, and are open and willing to make changes where and when necessary There are currently 89 Supply Chain Partners and 32 Supported Businesses which account for 50% of contract delivery overall. Across the current range of contracts described, they are split as follows: Work Choice: direct delivery 51%, supply chain 49% Work Programme: direct delivery 50%, supply chain 50% SES: direct delivery 63%, supply chain 37% NOMS: direct delivery 50%, supply chain 50% Kent Mental Health: direct delivery 40%, supply chain 60% Since the last Merlin assessment there has been structural investment in the Performance Directorate and the focus on quality and compliance has yielded many of the desired performance improvements. 1 TMX Merlin Report Template

4 The philosophy is that processes and approach are applied equally to the management of direct delivery and the management of the supply chains. Other new development include the introduction of a quality helpdesk, the implementation of customer care function to process feedback and complaints, a refreshed Management Assurance Framework and processes that provide a continuous monitoring of risk. This assessment reflects much progress and a strong momentum of continuous quality improvement. 2 TMX Merlin Report Template

5 2. Assessment Methodology Initial planning conversations took place in January 2016 where the scope of the Merlin Standard was discussed and agreed in accordance with the guidelines. All Supply Chain Partners involved in supporting Shaw Trust to deliver their services were informed of the assessment via by the Interim Head of Supply Chain and all received an invitation to take part in the on line Merlin survey. The assessment team (lead Assessor Susan Smith and team Assessors Lorna Bainbridge and Neil Potentier) interviewed representatives from 60 Supply Chain Partner organisations, including unsuccessful organisations and potential new subcontract partners. The 66% sample included representatives of organisations who deliver a range of services and projects on behalf of Shaw Trust, including end-to-end partners, spot purchase and specialist service providers. Supply Chain Partners interviewed were at various stages of their working relationship with Shaw Trust. As part of the assessment, Shaw Trust staff were interviewed, including those involved in the strategic and day-to-day development and management of the Supply Chain Partners. During the assessment, a significant number of written documents were made available, including those relating to supply chain design, improvement plans, contracts, Supply Chain Framework, Financial Management Handbook, quality, communications and contract and performance / quality management. 3 TMX Merlin Report Template

6 3. Assessment Outcome Overall % Overall Outcome 82% Good Supply Chain Design 93% Excellent Commitment 83% Good Conduct 76% Good Review 77% Good 4 TMX Merlin Report Template

7 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. Due to the effective strategies, processes and activities involved in supply chain design, there is wide variety and scope of Supply Chain Partners across all contracts. The objectives of commissioners are clearly understood and communicated with potential Supply Chain Partners in a way that enables the development of enriched supply chains. (1a.1) As a result of robust analysis of customer needs and to meet commissioners requirements, Shaw Trust has engaged with public, private and third sector organisations. Indeed third sector involvement accounts for some 64% of Supply Chain Partners. This design ensures swift access to customers especially the hardest to reach in communities. (1a.2) The development activities undertaken for building the capacity of Supply Chain Partners is seen as an important function of supply chain management. There are many examples of Supply Chain Partners assisting with the development of policies, processes and systems that enable them to be robust enough to secure new business opportunities outside of the Shaw Trust supply chain. (2b.1) The procurement process from initial engagement through the Expression of Interest (EOI) and Initiation to Tender (ITT) stages is fair and transparent. A high proportion of Supply Chain Partners confirm that support and communication throughout this process is highly effective. This includes detailed feedback and confirmation of scoring processes to both successful and unsuccessful Supply Chain Partners. (2c.1) The majority of Supply Chain Partners believe there is a clear rationale for the allocation of market share. A high proportion cite that this clarity helps them to understand the overall balance required in order to achieve both commissioners objectives along with maximising the individual strengths within the Supply Chain network. (2c.4) There is a clear strategy in place to support any TUPE activity. Appropriate consideration and expertise is used in each scenario and Supply Chain Partners and staff feel that they are kept well informed and are supported throughout the process in a timely manner. (3a.2) Information security strategy and processes were cited as being highly effective, with extensive support provided to Supply Chain Partners from subject experts within Shaw Trust. A number of Supply Chain Partners made reference to the effective information, advice and guidance provided to design and test information security. (3b.4) 5 TMX Merlin Report Template

8 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. Whilst there is much positive testimony from Supply Chain Partners about clarity of business relationships, recent changes in personnel and other restructuring activity has created some inconsistency and uncertainty. Some Supply Chain Partners are unclear about who to address certain issues to and a number cite that they have been without a Supply Chain Manager for periods of time, leaving them feeling isolated and unclear about their position. This should now be addressed through a period of consolidation of staff and activity. (2a.4) As well as providing communication about bidding opportunities with Shaw Trust, there could also be proactive communications about other business opportunities outside of Shaw Trust. This would support the ability of Supply Chain Partners to build capacity and contribute to helping them build a more sustainable business. (2b.2) The intention to adopt the Industry Standard Partnership Agreement (IPSA) should assist in the embedding of mutually agreed core principles, which govern the supply chain. This has been in place for NOMS since April 2016 and could usefully be applied to all new supply chains. (3a.1) Recent activity to address issues of environmental sustainability is recognised, however more work is required in order to fully embed policies and plans with measurable targets in this area. In addition, consideration could be made to introducing robust monitoring and reviews against the targets. (3b.7, 4a.6) Historically the Interface meetings were used effectively to share good and excellent practice across the supply chains; this is now not consistently practised. A significant number of Supply Chain Partners report the lack of consistent delivery of these meetings and subsequently this has reduced opportunities for sharing practice. It is suggested that an audit of activity takes place and meetings are brought back on schedule irrespective of Supply Chain Management staff changes. (3b.8) The Shaw Trust Enterprise Platform (STEP) Management Information system has not consistently produced accurate and timely reports for Supply Chain Partner use. In particular, the lack of reporting of Diversity and Equality (D&E) data over the life of the Work Choice contract has meant less focus in this area than has been necessary. Issues now appear to be resolved during the contract extension and plans to address use of data and reporting to inform supply chain activities, particularly in relation to D&E, are strongly encouraged. (3d.4, 3e.2, 3e.3) Whilst Shaw Trust feel it has clearly defined Value for Money across the contracts in consultation with Supply Chain Partners, this was not corroborated by all at interview. It could consider how communication of Value for Money can be more explicit and check Supply Chain Partners understanding of this. (3d.5) 6 TMX Merlin Report Template

9 6. Findings Against the Merlin Standard 1) Supply Chain Design 1a) Supply Chain Design Shaw Trust has a very clear understanding of commissioner, customer and other stakeholder needs and uses this intelligence to good effect when reviewing the design of its Supply Chain. Shaw Trust has been helping people facing disadvantage to find work for over 30 years and is very clear about the challenges being faced by its customer base. It has also worked closely with relevant commissioners and delivery organisations over these years. Robust processes that identify the scope required of the supply chain to meet the objectives of individual contracts and commissioners support this working knowledge. Therefore for all of its contracting, full consideration of all commissioners objectives are taken into account to inform appropriate composition of a network consisting of third sector, public and private organisations. At the time of the assessment 64% of Supply Chain Partners are from the third sector, 25% from the public and 11% from the private sector. Supply Chain Partners commented that It is a nicely balanced supply chain and I like the partnership model; its values are good. Use of demographics knowledge using NOMIS and Local Enterprise Partnership (LEPs) intelligence is used to support the design of the supply chain network - in some cases this may include very specialist niche partners who may require additional financial support or payment models. A recent example of newly developed supply chain through the NOMS tender used the commissioner objectives by prison and priority group. Following the EOI process, the Shaw Trust Partnership Team conducted a mapping exercise to identify potential Tier 2 Partners with agreed deciding criteria for selection. Supply Chain Partners comments included It is great that they have incorporated us small providers. It gives us the chance to grow and develop and It has different flavours and has localised knowledge which is essential for effectiveness. All opportunities are advertised through Shaw Trust s extranet and relevant trade publications. A full analysis of the contract specification is undertaken to determine service requirement and type of provision required, and this information is shared with all potential Partners. Communication about opportunities to join supply chains is a mixture of direct approaches to known and trusted partners, through to open calls for partners on the extranet, website and through research. By sharing all the commissioners information, Supply Chain Partners confirm that the tendering process is open, honest and transparent. There is a clear rationale for selection of Supply Chain Partners and scoring of EOI takes place by an internal team, which offers the opportunity for moderation. Supply Chain Partners are notified of being successful and scoring and feedback is shared. As DWP has a Sustainable Procurement Awareness Sheet outlining its commitment to Partner Diversity and use of Small and Medium Enterprises (SMEs) in supply chains, Shaw Trust has a number of SMEs as Supply Chain Partners. Shaw Trust also works with other Supply Chain Partners where more than 50% of their workforce is made up of people with disabilities. A wide range of Partners provides a strong regional reach covering generalist and specialist provision and work with a number of local authorities across the UK gives access to community-level services to enhance and strengthen service delivery at a local level. 7 TMX Merlin Report Template

10 There is has a directory of tier 3 Partners available, which is accessible to the tier 2 Supply Chain Partners via the extranet. A number of these partners provide specialist support to customers such as sign language interpreting and communication. The services of this tier 3 Supply Chain Partner has supported 129 deaf/hard of hearing customers on Shaw Trust's Work Choice delivery across their 16 CPAs since February 2014 and provided 952 support sessions in the same period of time. There is also has an additional directory for Supported Businesses updated in February These businesses provide a unique opportunity for some of the hardest to help customers to gain valuable real life experience in the workplace for a minimum of six months. Examples of work placements are catering, packing, signage, horticultural (including gardening services) and Eco furniture. Shaw Trust has continued to employ a strategy to encourage Supply Chain Partners to retain ownership and links with their own existing networks of partner/support and stakeholder organisations, which remains appreciated and perceived as beneficial to all parties. One Supply Chain Partner commented I think they took into account we had established networks when they selected us they wanted to use our local knowledge. 8 TMX Merlin Report Template

11 2) Commitment 2a) Collaboration, Cooperation and Communication All opportunities to work with Shaw Trust are advertised on their website, extranet and various other industry platforms such as Indus Delta and Carley Consult by way of an EOI. During its procurement process staff often deliver numerous group presentations for potential Partners that outline the contract specification, and discussions are held about how potential Supply Chain Partners can add value. As the procurement process progresses, feedback is provided through either national Partnership teams (for new business) or regional Supply Chain Managers, if contracting for existing provision. Any organisation failing the EOI or due diligence processes will receive specific feedback on how to strengthen their offer in the future. An illustrative comment from a Supply Chain Partner was that Communication is regular by , telekit and face-to-face. Having been selected as a potential delivery Partner, each organisation receives a formal letter of intent from Shaw Trust and is provided with comprehensive support to progress through the precontract phase. Once the potential Supply Chain has been developed, there are further group presentations held to outline the approach to Supply Chain Management. At all points the assigned Partnership Manager and Regional Supply Chain Manager will be on hand to answer any questions. All commercial and contract negotiations with organisations are carried out by an appointed Partnership Manager and regional Supply Chain Manager and supported by the relevant internal subject experts where needed. Supply Chain Partners who experienced the procurement process confirmed that communications during all stages of activity were proactive and relevant and proportionate to the service being procured. An illustrative comment from a Supply Chain Partner was During the set up stages there has been a constant daily dialogue with Shaw Trust. The process was perceived to be proactive and one which pre-empted potential issues or concerns organisations might have had about joining the network. Shaw Trust has consulted with Supply Chain Partners about its systems and processes, for example, consultation is currently taking place about Diversity and Equality and Environmental Sustainability. As part of the Kent Mental Health contract, Supply Chain Partners were consulted as to whether Key Performance Indicators (KPIs) linked with Social Housing Agenda outcomes. On Work Choice, when commissioners changed their approach to the extrapolation process on sustained payments, Supply Chain Partners were consulted and following this discussion, calculation method and payment options were changed. However there was some varying Supply Chain Partner and Supply Chain Manager testimony about this with some unable to confirm the consultation has indeed taken place. Meetings take place to encourage collaboration with and between Supply Chain Partners to share practice and to effectively manage problems in a mutually supportive way. There is a structure for weekly, monthly, quarterly and ad-hoc meetings. Some of the quarterly Interface meetings have not been happening as per Shaw Trust s planned schedule and this has affected the experience of a number of Supply Chain Partners. However, many Supply Chain Partners did confirm that in general they are informed and involved in decision-making activities. Where new systems are being introduced, consultation usually takes place by delivering group presentations, however staff at Shaw Trust commented that the Management Assurance Framework was launched with less consultation than Shaw Trust would have ideally liked due to other external deadline pressures. 9 TMX Merlin Report Template

12 Since the previous Merlin assessment, Supply Chain Partners are beginning to be encouraged to play a more integral part in the self- assessment and intelligence gathering process used to inform any new and/or revised processes outlined in more detail. Additionally there are monthly telekits for all Partners that look at national account updates, lead sharing, success stories and best practice local and national. As a result of feedback from the previous Merlin assessment and to support Supply Chain Partners to understand how employer engagement works within Shaw Trust, Employer Academy Training has been delivered to Supply Chain Partners. A measurable example of collaboration occurred when a very small Supply Chain Partner that had been struggling to meet its Job Start targets was encouraged to collaborate with Shaw Trust s direct delivery and their results for jobs starts increased in three months from 50% of target to 400%. Another impactful example of collaboration is between Supply Chain Partners and the Supported Businesses where placement opportunities have been made available for Work Choice customers to facilitate work trials that have directly supported even more customers to move towards being work ready. Communication channels between Shaw Trust and some of the Supply Chain Partners are clear and the business relationship clearly understood; however some changes to personnel has resulted in gaps in staffing in the Prime, there are a number of Partners who feel this is less than clear. Comments included that Supply Chain Partners are not sure who to go to for the answers and have been sent from one person to the next as well as another. One Supply Chain Partner was frustrated at inconsistencies between Supply Chain Managers such that they insisted on one meeting with all present so that they could get common accord rather than conflicting messages. As well as face-to-face communications, Supply Chain Partners can also access a range of materials, policies and processes on the extranet. Overall communication between Shaw Trust and Supply Chain Partners is outlined in its contract manuals and the intention to progress more towards the ISPA model should enhance this even further. The culture of communications is open and honest. Staff talk about taking time to build relationships with Supply Chain Partners and sharing information to help all partners to understand their contribution to the success of the contract overall. By offering Supply Chain Partners the opportunity to share concerns, Shaw Trust can then offer opportunities to help. For example Supply Chain Partners were encouraged to get involved with shaping and reviewing the commissioner s objectives through review of Sections 13 and 14 of DWP Provider Guidance. One Supply Chain Partner commented: On the whole communication is open and honest but on occasions - like changing targets - we got different messages. Most of those interviewed highlighted the effectiveness of the inter-personnel relationships not only with Shaw Trust, but also across the network with many Supply Chain Partners working together and communicating directly with each other regarding delivery. Positive Supply Chain Partner testimony included No doubt that they are open, honest and transparent in their approach now and To date communication has been open and honest. Another commented that communication is Robust, clear, no messing about, if there is an issue it is dealt with, professional. 2b) Developing Supply Chain Partners Shaw Trust has supported the development of organisations within the network by offering opportunities to re-profile and increase volumes, which have enabled a number of partner organisations to grow and expand their business. Comments included Supported to become a sustainable business and They are committed to developing third sector organisations as sustainable businesses. 10 TMX Merlin Report Template

13 Regional Supply Chain Managers and the Compliance and Assurance Team have worked with Supply Chain Partners to apply performance improvement support to look at subjects such as Root Cause Analysis and DeepDive methodology. This has helped some Supply Chain Partner staff to develop a more meaningful understanding of performance management and improvement, and subsequently improve the business capacity and capability. We see the audits as developmental, and has highlighted the need to develop Business Continuity Plans for the offices and to get staff to sign the Conflict of Interest Statement. Another Supply Chain Partner spoke about extensive organisational development support, for producing robust policies to address health and safety, safeguarding and the design of a quality assurance process, which has contributed to gaining additional contracts. Opportunities are given to Supply Chain Partners to expand into new areas of delivery; an illustrative comments was Taking this contract on has helped our business grow. There were examples of how Shaw Trust capacity building across the network has been encouraged, such as: re-profiling and increasing volumes; signposting organisations to other programmes and potential contracts of interest to Shaw Trust; and enabling Supply Chain Partners to access additional funding, such as the Wage Incentive Scheme. One small Supply Chain Partner is being supported to gain accreditation to supply courses. In the future, there might be consideration given to how wider opportunities might be shared outside of the Shaw Trust opportunities. The development of all Supply Chain Partners is supported and encouraged. They offer many courses but we have never been pushed into using them. Depending on the delivery and the contract, some modules are deemed essential whilst others desirable. There have been various STEP workshops and also there are a number of STEP Champions in Supply Chain Partners whose role is to cascade information out to their colleagues. Staff development is currently identified through Regional Supply Chain Managers and delivered using a range of external and internal training. All Continuous Professional Development (CPD) is centred on improving the service to the customer: I have had loads of development for me, my team and the organisation. Examples of training organised by Shaw Trust for the employees of Supply Chain Partners includes NOMS Case Assessment and Tracking System, Justice Star (an outcome measurement tool used in the NOMS CFO contract), One Page Profiles & Person Centred Thinking, Employer Sales, Work Choice Training Presentation and Placement Officer Training. Supply Chain Partners also highlight that self-employment and mental health awareness courses have proved particularly useful as well as direct access to trainers who have come in to help with on-site assessments and employability courses. 2c) Contracting and Funding Shaw Trust has managed processes and procedures to support procurement effectively in line with the requirements and expectations of the commissioners. To ensure a fair and transparent approach to procurement from the outset, all information is shared via the extranet. This ensures all parties have access to the same range of information and they understand the process in place, including what is required, the scoring criteria and timeframes. EOIs are tailored to the opportunity and all completed EOIs are scored using a template to ensure fair marking. Feedback is provided to Supply Chain Partners with an additional offer of bespoke support to increase capacity. 11 TMX Merlin Report Template

14 Due diligence is carried out robustly and for successful organisations, any further requests for information are made. Successful organisations are offered a contract and a 'go-live' date is agreed. Supply Chain Partners confirmed that From the onset it was open and transparent. As all contracts are subject to the funding rules of the commissioners, all terms, including delivery payments, are passed on to the Supply Chain Partners. Whilst this ensures that funding and payment arrangements are fair and proportionate across the network, it does mean that the core financial model cannot easily be flexed. However there are some examples in the recent NOMS contracts that demonstrate flexibility, such as the release of the final contract payment at the same time as the initial payment to support smaller Supply Chain Partners with cash flow. Giving us some fees up front was an unexpected gesture. Shaw Trust ensures that details of the payment profiles are discussed prior to contracting to ensure that the initial request of funding is realistic and will not put the Supply Chain Partner or themselves under any undue financial risk. They reduced the proposed offer at the start to reduce the financial risk. For the extension of the Work Choice contract the finance team supported Supply Chain Partners to decide if their potential performance would be financially viable and two options were provided around management fees. There has been the offer of additional tools, such as a Work Programme cash forecasting tool, financial health checks and a forecasting tool. There were examples where payment options had been changed. Most Supply Chain Partners confirmed that funding arrangements and amounts are fair and that there has been dialogue about this. Contract documentation is in place for all Supply Chain Partners and is seen to be clear and understandable. We are crystal clear and up to speed on everything. There are clear roles and responsibilities for both the Supply Chain Partner and Shaw Trust that are clearly defined, for example, who is responsible for referring people. Contractual documentation is periodically augmented with programme-specific provider guidance and live-running memos, which are communicated to Supply Chain Partners through the extranet communications and Regional Supply Chain Managers. This includes delivery by Supported Businesses and tier 3 Partners. Supply Chain Partners commented that documentation is prompt, understandable and easy to follow. Variations to contract are issued when required, for example changes made by the commissioner or following negotiations with the Supply Chain Partner as a result of over, or under performance. Market share discussions begin at the bidding stage and relate to the geography and demographics of the opportunity, as well as client groups and requirements of the commissioner. Once a contract is set up, a ward mapping system is used to ensure each Partner receives their share of referrals by mapping the country geographically by ward to enable the most appropriate Partner to be identified, based on where the customer lives. We quickly knew who else had got what. There are management reports to confirm and ensure the percentage Supply Chain Partner delivery by CPA remains at the appropriate agreed levels. A recent example in the NOMS contract is that referrals - and hence market share - were divided up using commissioner objectives of prison population and on different demographics. For existing contracts, Supply Chain Partners current performance and infrastructure are taken into account when re-allocating any market share. For example, one Supply Chain Partner s contract was reduced from 22% to 11% market share by mutual agreement due to under performance. Conversely, post-contract there are examples within the Supply Chain of negotiations taking place to move market share to support successful delivery partners. We chose the areas we wanted to work. All Supply Chain Partners believe market-share allocations to be fair and are aware of other organisations delivery areas. 12 TMX Merlin Report Template

15 At the point of contracting, Supply Chain Partners agree the payment profile. As a contract develops, a Supply Chain Partner s capacity can change. Through the performance management activities, there is the capability to detect where a Supply Chain Partner is experiencing difficulties in meeting its performance or compliance expectations due to customer volumes and resource allocations. In these cases, with the Supply Chain Partner s agreement, adjustments have been made but without cutting service delivery fees to allow Supply Chain Partners to address delivery issues. Equally good performance is recognised and one Supply Chain Partner commented They offered us 6% more due to our excellent performance. Requirements of Supply Chain Partners are taken into account in pre- and post-contract award processes and payment structures, for example, one Supply Chain Partner explained that a staged process for changing from service fee to payment by results (PBR) had been agreed post contract award. The risk element was clearly explained, understood and agreed and the Supply Chain Partner accessed they understood and agreed to rationale regarding this with support from Shaw Trust to change approach. Other Supply Chain Partners commented that there was support to re-profile once contracts are live if there is a slow build-up of referrals so they can back-load volumes to assist delivery. An illustrative comment of Supply Chain view is When adjusting to PBR they really considered our concerns. The transfer of funds within the partnership network is managed carefully. Payments to the Supply Chain are negotiated at contract award stage and agreed within the contract. The internal requisition, invoice and payment process is clearly set out and understood by Supply Chain Partners who judge the process fair and accurate. Where there have been questions raised regarding the evidence required for payment, Supply Chain Partners confirmed that relevant staff have worked with them to ensure a speedy and appropriate resolution. A new Rejections Report has been developed showing common reasons by Contract Package Area (CPA) and by Supply Chain Partner. A high proportion of Supply Chain Partners confirm that payments are agreed and paid promptly within agreed timescales. Always paid promptly and No problems with payments, self billing helps were common Supply Chain Partner comments. Discussions with members of Shaw Trust staff confirmed that they have a detailed knowledge and understanding of how best they can support individual members of the Supply Chain to provide the records required for payment. Some Supply Chain Partners were unclear in the way the fees and other costs, including management fees, have been explained; however many were clear We pay a management fee of 20%, gain a vision, clear expectations, support, learning and development, performance management and quality audits. Management fees vary by contract from 35% to 5% and this is a function of the value within the contract. Most Supply Chain Partners indicated however that they are happy with the support provided even though they were unable to judge if this provided them with value for money. I feel there is a wider range of support options through Shaw s Management Fee than with other Primes. A percentage of the management fees collected was allocated back into the success of the whole of the Shaw Trust delivery by investing 3m in a joint Wage Incentive Scheme to support contract performance as a whole. Some Supply Chain Partners, whilst accessing the fund, did not seem to understand this was reinvested management fee. 13 TMX Merlin Report Template

16 3) Conduct 3a) Demonstrating Commercial and Business Integrity Shaw Trust has a clear and purposeful vision and mission, reflecting the commitment to support people to progress into employment through delivering a high quality, customer-focused service. The senior leaders have set and communicated a very clear strategic direction for the organisation, supported by ambitions, values and aspirations for all customers. These are shared with the Supply Chain network, and are periodically reinforced at meetings and through other communications. They care about the disabled and disadvantaged. Since the last Merlin assessment, there has been work undertaken to create an environment which is more open, communicative, fair and based on mutual respect and collaboration. Whilst Supply Chain Partners operating the longer served contracts are not able to consistently articulate the mutually agreed core principles on which they work, newer Supply Chain Partners are perhaps more able to explain this: I have an affinity with their values and approach. It is felt that the plan to use the Ministry of Justice Industry Standard Partnership Agreement (ISPA) as best practice in the future is to be encouraged. Support for Supply Chain Partners when they have undertaken TUPE activities as a result of changes in contract has been robustly provided. Part of this facilitation has been to provide conflict resolution as well as signposting organisations to the current legislation. Shaw Trust follows the primary aim of safeguarding personnel when they transfer and its processes fully engage with current TUPE legislation. At one stage there were 70 different sets of terms and conditions in operation so the organisation implemented a harmonisation project to align them. Staff that transferred both in and out of the organisation described a very positive experience in terms of personal one-to-one support, responsiveness, information provision and thoroughness of processes. My TUPE situation was handled quickly and very well. Many Supply Chain Partners reported on supportive and positive relationships and interactions with the Supply Chain Management staff. See section 2a and other examples throughout this report. Illustrative comments included: They focus on identifying solutions, which is refreshing. We have a very productive relationship. We were all struggling with PG6 so a strategy was designed, which was really helpful and improved our performance. We ve been on a PIP, which was a positive and supportive experience and was successful. Very positive and supportive. She (Supply Chain Manager) knows us and our track record and when we said it might take a bit longer to get a client into employment she believed us and trusted us to deliver. We like Shaw Trust. They offer something different. Our Supply Chain Manager is very good at rapport building. I respond to his style. She (Supply Chain Manager) has opened doors for us with JCP. Supply Chain Partners confirmed they receive updates on various topics relating to legislative policies and procedures. All legislative and regulatory requirements of the contract are discussed at the procurement stage and checked by Shaw Trust through the EOI process. They are also contained in the schedules of the contracts exchanged with Supply Chain Partners. All policies and processes are version controlled. 14 TMX Merlin Report Template

17 There is now a Quality Helpdesk function whose responsibility is to ensure that any changes to guidance and delivery are vetted and cascaded to operational teams. Communications are effective through and often the Supply Chain Manager checks to ensure they have been understood and implemented. Regular updates are also provided through and information accessible from the extranet. Shaw Trust has communicated MOJ edicts very well. 3b) Quality Assurance and Compliance There is a robust quality system, which includes the measuring and monitoring of Supply Chain Partners against a set of clear criteria including targets and KPIs. Partners are subject to regular and ongoing compliance audits by the Commercial Assurance Team (CAT). The results of these CAT audits, performance information, self-assessment and customer information are fed into the Shaw Trust's continuous monitoring system and inform continuous improvement. This framework ensures that Shaw Trust is able to regularly monitor all aspects of quality, performance and contract and commercial compliance. The Management Assurance Framework (MAF) also monitors the effectiveness of improvement initiatives, and the quality and compliance of service delivery. This framework clearly sets out the quality team s activities and support expectations. Observation Report Guidance for Managers and Observation forms have been provided to Supply Chain Partners as a way to measure and monitor the quality of client engagement in one-to-one and training sessions. The framework also aims to ensure that quality and contractual standards are being met. These processes provide a crucial role in enabling Supply Chain Partners to manage and deliver the service, resolve operational issues as well as identifying any good practice. Various examples were shared across the network of how the quality assurance activities have informed and improved delivery. Supply Chain Partners commented that the quality of paperwork has improved following quality assurance activities and these have been shared via the extranet and in meetings. A lot of compliance, recording and reporting, but proportionate and ensures we are compliant. commented one Supply Chain Partner, and another that Performance plus quality and compliance is coming across loud and clear. A detailed Quality Improvement Plan (QIP) is used effectively to identify evidence, judgements and agreed SMART actions related to quality, performance issues and quarterly themes. Supply Chain Partners have been good at enabling soft outcomes and encouraging customers to take the next step towards their work goal through a variety of support activities. Supply Chain Partners are aware of the importance of ensuring any Information, Advice and Guidance (IAG) they provide is accurate, up-to-date and impartial. Many Supply Chain Partners interviewed as part of this assessment confirmed that they are accredited to the matrix Standard. The IAG provided to Supply Chain Partners is through newsletters, direct s, training events, quarterly review meetings, Interface meetings and day-to-day communication. Supply Chain Partners commented on its thoroughness and usefulness. There is also access to the quality helpdesk and CAT, as well as subject experts, for example on health and safety and information security. Resources are also available on the extranet to ensure ongoing and up-to-date information and advice. 15 TMX Merlin Report Template

18 There are data consent and information sharing policies that are implemented across all aspects of work. Shaw Trust is certified to the ISO Standard and as a provider of employment services, it is required to provide a comprehensive framework of information security controls to protect customers personal data from theft and loss and to make sure that it is accurate and available for use at all times. Contracts exchanged with Supply Chain Partners included requirements aligned to Shaw Trust s own policy and/or those of the commissioner. Regular audits are conducted by the CAT, which include a section on information security, and the delivery assurance framework. Security incidents are reported and Security Incident and Corrective Action Request and Report (SICAR) forms are completed. All incident forms are submitted to the Trust's Head of Information Security and are tabled at monthly Security Forum meetings. During the implementation stages of the new NOMS and SES contracts, the Information Security Department supported Supply Chain Partners to ensure that they met the security requirements. All staff connected to any contract must complete online training (refreshed annually) and print off their certificate. Supply Chain Partners also confirmed that robust procedures are in place and that their efforts are recognised We got specific praise for our approach to data protection. As part of due diligence, each Supply Chain Partner submits their health and safety policy and accompanying procedures for checking and validation. Supply Chain Partners are contractually obliged to notify any serious or reportable incidents concerning customers and Shaw Trust staff adopt an eyes and ears approach to site visits. Ongoing, Supply Chain Partners are obliged to inform any substantive change to their policies or procedures and these are checked by the quality and compliance activities described. There are expert resources available to support Supply Chain Partners if required. Supply Chain Partners corroborated this They delved deep on our policy. All Partners are required to submit their safeguarding policies and procedures as part of the due diligence process. The documents are checked to ensure they comply with legislative requirements. Checks are also completed to ensure Supply Chain Partners adhere to, and undertake, baseline security checks as set out in DWP provider guidance. The processes are further examined for effectiveness by the Commercial Assurance Team. Recent training has been around responsibilities linked to the Prevent Duty in challenging radicalisation. Shaw Trust has an Environmental Sustainability Policy. Supply Chain Partner environmental sustainability policies are requested during the due diligence stage and subsequently, details are tested and provide information on how well practices are understood and embedded. Additionally, there are some Supply Chain Partner reviews of environmental sustainability planning. Compliance audits check that policies are up-to-date. The greater focus planned in the very near future for this subject with Supply Chain Partners could still evolve to give environmental sustainability a higher profile. One Supply Chain Partner commented: Environmental sustainability is a hot topic right now. We have seen DWP info on ES but not much from Shaw Trust. There are a number of good examples shared by Supply Chain Partners about the way in which good and excellent practice is identified, shared and monitored across the supply chain. An example would be some recent national workshops which provided networking opportunities and updated Supply Chain Partners on the plans of the organisation and what future programmes may look like. Audit findings are used to identify and share good practice systematically. 16 TMX Merlin Report Template

19 The monthly Supply Chain reviews enable Shaw Trust to identify excellent practice and disseminate it throughout the Supply Chain on a regular basis. The main concern of Supply Chain Partners was the irregularity of Interface meetings latterly. Some Supply Chain Partners confirmed they had not had the Interface meetings for nearly year, which has reduced the opportunity to share good practice. 3c) Honouring Commitments Pre-contract communication with potential partners continues to take place in a variety of ways, for example with groups of potential partners, in meetings with individual potential partners and via s and telephone calls. These discussions include negotiation around quality, value for money and delivery. Requirements are made clear to partners at pre-contracting stage and reiterated or updated throughout the life of the contract. They are good at getting the contract variations out and they reflect the discussions. Any re-profiling that has taken place appears to have been in consultation and negotiated in an environment of openness, honesty and trust. A Supply Chain Partner commented: They have honoured their commitments and managed expectations under the circumstances. Whilst there is a dispute resolution process outlined in contracts and detailed on the extranet, Supply Chain Partners felt the relationship would mean that informal methods would be their preferred initial option: I am aware of the dispute resolution process. It was explained to me. The informal route has been used to good effect by Supply Chain Partners: Would have no qualms about going straight to the top, and have done so. Supply Chain Partners are aware of the Merlin Mediation Service however this has not featured in the assessment. Within the different supply chains led by Shaw Trust, there is an understanding of what each party is and should be doing. Delivery plans ensure that both parties are still honouring what was agreed prior to contracting. 3d) Performance From the initial procurement process, organisations joining the supply chain continue to be encouraged to work collaboratively to support performance across the contract as a whole. Shaw Trust staff facilitate this at all levels. Supply Chain Partners described how network meetings, conferences and learning and development events etc. are the formal vehicles for collaboration which are supported by day-to-day sharing and working together to support the customer journey and achieve the quality and quantity required by the commissioner. One Supply Chain Partner commented: We gave ideas collaboratively as to the way forward and came up with peerto-peer training. Supply Chain Partners are very clear about what they need to achieve and have contractual schedules and programme plans in place which detail the outcomes required on a monthly basis. Staff provide clear support and guidance: There is a pressure on performance, especially for PG1,2 and 6, sometimes not realistic expectations, but once we explain, they re alright about it. Performance reviews of Supply Chain Partners have been taking place according to the agreed schedule. Supply Chain Partner feedback illustrates this: We re able to talk about anything and everything. Confident to challenge the prime regarding any aspect of the contract. Innovation and good practice is encouraged and shared through the interface meetings. 17 TMX Merlin Report Template

20 Relationship is strong and able to talk about issues and concerns, as well as what is working well. As noted above, Supply Chain Partners gave positive feedback on the openness and content of performance meetings describing how they work closely to measure, monitor and manage the delivery of the service, so that they can achieve high quality outcomes, such as supporting Supply Chain Partners to address specific issues relating to the achievement of targets, which was very positive and supportive. The Management Information (MI) system invested in and provided called STEP, is viewed by Supply Chain Partners as meeting their needs in the main. The MI is released daily and formally ed every month to provide updates. It has become more consistently accurate over the life of the contract and helps to drive performance. The reporting functions are available on the extranet and provide a range of information. It was noted that there are still some concerns over the reliability of the information and MI relating to diversity and equality has only become available recently. Supply Chain Partners are involved in working groups to address issues and there are plans in place to roll out communication about progress. Supply Chain Partners are encouraged to add value to existing services provided to customers to enable the meeting of national and local priorities. Comments included: In our eyes every intervention should be a milestone and add value. I think Shaw Trust recognise this now. VFM to us means hitting our targets. I am sure Shaw Trust see this as VFM. VFM means us working at full capacity. Whilst Shaw Trust feel they have clearly defined Value for Money (VFM) across the contracts in consultation with Supply Chain Partners, this was not corroborated by all at interview and therefore it will be important to consider how communication of VFM can be more explicit and check Supply Chain Partners understanding of this. All Supply Chain Partners described the importance they placed on measuring the progress of clients. Methods used across all contracts vary depending on the requirements of the commissioner and include data collection, case studies, client feedback, progress towards or sustainment of education, employment or training. There was strong evidence of this in the Supported Businesses (tier 3). Supply Chain Partners confirmed: We track progression through to job sustainability. We track progression of the ten employees and part of the monthly recording requirements. For us, job readiness is a key milestone in the customer journey. 3e) Promoting Diversity and Equality There is a strong commitment to diversity and equality, and there are arrangements in place to ensure Supply Chain Partners align with this commitment. During the due diligence process, policies are reviewed once contract delivery has begun and processes and practices are scrutinised in more detail. Shaw Trust s strong Supply Chain design and delivery model supports the diverse range of customers and promotes equality and access for all. There is a Diversity and Equality plan in place to drive and shape this area. 18 TMX Merlin Report Template