Report of the Leaders of Cambridge City, South Cambridgeshire District Council and Huntingdonshire District Council.

Transcription

1 Appenidx A Shared Services Reprt f the Leaders f Cambridge City, Suth Cambridgeshire District Cuncil and Huntingdnshire District Cuncil. 1. Purpse Cambridge City Cuncil, Huntingdnshire and Suth Cambridgeshire all made decisins in July t wrk in partnership t deliver shared services. A significant amunt f wrk has taken place since then and this reprt sets ut prgress tgether with prpsed next steps t ensure mmentum is maintained. 2. Recmmendatins 2.1 T nte the gd prgress t date by all three Cuncils wrking tgether t deliver shared services. 2.2 T agree the general principles set ut in Paragraph 4, namely: The lead authrity mdel in the first instance (4.1) Prpsed lead and lcatin arrangements (4.2) Prpsed cst sharing prpsals (4.3) 2.3 T agree t a phased apprach t the develpment f ICT and Legal Shared Services, with interim prject supprt appinted t assist with the prcess and develp full business cases. 2.4 T establish a Business and Legal Practice Manager in advance f the prpsed shared legal service t assist with the transfrmatin prgramme and develpment f the shared service. 3. Summary f prgress t date The three cuncils have been wrking well tgether t deliver Phase 1 f a series f shared services. Prgress n ICT and Legal is included later in this reprt. Waste Cllectin, invlving the City Cuncil and Suth Cambridgeshire, frms a separate reprt and Building Cntrl, invlving Huntingdnshire and Suth Cambridgeshire, will be brught frward fr decisin in Nvember. Other discussins invlving shared services are als currently taking place thrugh City Deal.

2 4. General Principles As part f nging wrk n shared services, a number f general principles have emerged that will help t ensure cherence and cnsistency acrss all shared services mving frward. These general principles will help t prvide a framewrk within which specific decisins can be made n a service by service basis t meet peratinal requirements. 4.1 Shared Service Mdels There are a number f shared service mdels that can and have been adpted elsewhere in the cuntry, each with advantages and disadvantages. These range frm a lead authrity mdel thrugh t a cmpany structure and jint utsurcing. It is believed that, in the first instance, the lead authrity mdel wuld best suit ur circumstances and wuld enable current mmentum t be maintained. Under the lead authrity mdel, ne authrity wuld be respnsible fr the shared service, including staff secnded n their substantive terms and cnditins frm the remaining tw authrities. Hwever it is imprtant t stress that shared member and fficer gvernance arrangements wuld be put in place with regard t verseeing perfrmance. Whilst it is prpsed that the lead authrity mdel shuld be the starting pint fr cnsideratin, ther mdels may be suggested as part f specific business cases, r explred ver time nce a shared service mdel has been created. 4.2 Lead and hst authrity arrangements It will be imprtant t ensure verall acrss the first phase f shared services that the decisins n lead authrities are made equitably, bearing in mind the cumulative impact n each f the three authrities. In the first instance, it is prpsed that Cambridge City Cuncil shuld lead n Legal Services, Huntingdnshire n ICT and Suth Cambridgeshire n Waste Cllectin. Decisins n building cntrl and ther services as apprpriate will be made at a later date. As far as lcatin is cncerned, it is prpsed that this shuld be an peratinal decisin made n a service by service basis as a part f each business case. Hwever, the cumulative impact will need t be brne in mind tgether with the strategic accmmdatin pririties f each Cuncil. As part f develping shared services, it will be imprtant t reduce the need fr travel acrss the three authrities t minimise csts and envirnmental impact. It is prpsed therefre t create: - ht desking in each authrity fr ther partners/services t use as apprpriate; - a cmmn dcument management system fr meetings; - vide cnferencing and related ICT facilities.

3 4.3 Cst sharing/efficiencies 5. ICT Shared Service There are a number f cst sharing mdels perating elsewhere, sme f which are mre sphisticated than thers, including: - An equal split f any savings achieved acrss the participating authrities. - A prprtinal split based n an agreed frmula (eg ppulatin, number f emplyees). - A service by service apprach based n the budget f each service incrprated. - A service by service apprach based n the level f service specificatin by each partner. It is imprtant t be fair and transparent, whilst at the same time nt creating a significant amunt f wrk that is disprprtinal t ptential utcmes. It is prpsed that a service by service apprach based in the first instance n the budget f each service incrprated shuld be the starting pint, whilst als ensuring that apprpriate efficiency targets are built in fr each Cuncil. Once the shared service is created, we will need t ensure a mre sphisticated apprach by which each authrity can determine the perfrmance required and target ptential efficiencies apprpriately. 5.1 Prgress t date It was agreed in July that the three authrities wuld wrk twards a shared ICT Service as an early pririty. Fllwing the appintment f additinal capacity t help with this prcess, prgress has been made n mapping existing activity and resurces, cnsidering different delivery mdels, determining desired utcmes and using these t shape the next steps as part f the develpment f a shared service. 5.2 Desired utcmes frm a shared service The prpsed utcmes are as fllws: Imprving resilience better able t prevent service lss r interruptin and cpe with peaks in wrklad and staff absences. A larger team will als give each cuncil access t a greater breadth and depth f prfessinal expertise. Reduced external expenditure additinal resurces and a brader skills base will lead t a reductin in the need fr external advice. Where this is required, the cmbined purchasing pwer f all three cuncils shuld lead t mre cmpetitive prcurement rates. Imprved custmer service access t a mre cmprehensive ICT service shuld result in a better and a mre respnsive service t fficers and members.

4 Decreased fixed csts sharing r jining up ICT services acrss three cuncils shuld lead t savings in, management, hardware, sftware and services, administrative supprt and accmmdatin csts. Remdelling f ICT services bringing tgether the ICT services f three cuncils gives the pprtunity t lk at mdels f peratin that are nt suitable r feasible fr thse cuncils at an individual level. Staff develpment a larger service will increase the pprtunity fr staff develpment, by allwing staff t wrk acrss a brader range f areas, r t becme mre specialised as apprpriate. Staff recruitment/retentin greater wrk pprtunities shuld imprve staff retentin and help t reduce turnver. A larger shared service culd prvide increased pprtunity t cnsider participating in a higher apprentice training scheme (grwing ur wn). Imprved supprt fr ICT users t ensure that the technical strategy aligns with and enables client cuncil bjectives. 5.3 Current Services The three cuncils prvide ICT services t apprximately 2000 users acrss 60 sites within Cambridgeshire Huntingdnshire ICT serves 650 Users acrss 18 sites Suth Cambs ICT serves 350 Users acrss 2 main sites and several cmmunity hubs Cambridge City ICT serves 1000 Users acrss 40 sites (6 cre sites) Huntingdnshire and Suth Cambs perate an in huse ICT peratin cvering all functins f ICT (Service Desk, Applicatin Supprt, Infrastructure Services, Prject Management and Web Services). Cambridge City perate utsurce mdel, whereby 90% f ICT services are utsurced t Nrthgate. All three cuncils perate their wn Data Centres lcated in their cre ffices. Cambridge City and Suth Cambs perate a traditinal Disaster Recvery cntract with a 3 rd party, whilst Huntingdnshire have an in huse full failver system t a secndary site. All three ICT services prvide very similar systems t each ther and ften are using the same applicatins, each with their wn cntract arrangements. All three Cuncils have implemented changes in recent years t imprve services and reduce csts, including via staffing restructures. Cambridge City has achieved this thrugh cntract efficiencies and the new cre cntract with Nrthgate. All three services are challenged t meet the increasing demands frm services fr mdern ICT as well as frm central Gvernment thrugh initiatives such as Digital First, Clud & G-Clud and PSN / CESG cntrls. Huntingdnshire and Suth Cambs have cntinued t invest in Micrsft infrastructure platfrms fr delivering services, whereas Cambridge City until recently had cntinued t use the Nvell

5 platfrm. With Cambridge City nw implementing a prgramme t mve t Micrsft, by the end f 2014 all three will be fairly aligned in their infrastructure platfrm. There is significant spend in the ICT services f the three cuncils, amunting t mre than 6.1m Suth Cambs ICT budget 1,540,220 Huntingdnshire ICT budget 1,485,489 Cambridge City ICT budget 3,169,470 TOTAL SPEND 6,195,179 Experience in ther authrities suggests that the next stage f mdernisatin, thrugh mving t the Clud alne, achieves savings in the range f 5% t10%. This enables ICT activities t be less fcussed n the day-t-day maintenance f the service infrastructure and mre fcussed n mdernising custmer-facing services. In additin savings will flw frm reduced energy cnsumptin, cnslidatin f the supply chain and management efficiencies. Based upn experience in ther cuncils, a minimum 15% saving n the cmbined ICT spend shuld be pssible. The average cst, including all n csts, f a member f ICT staff within the services is in the regin f 48,000 PA. Tpic HDC SCDC CCC FTE (exc Outsurcers) Vacancies Actual Persnnel Av Cst f ICT staff 45,386 45,919 56,020 The variatin in cst between Huntingdnshire and Suth Cambs, when cmpared with Cambridge City, is due t the impact f the different peratinal mdels leading t Cambridge City having fewer but mre senir client staff. The majrity f the City Cuncil s peratinal staff are with the cntractr. 5.4 Prpsed next steps A phased apprach t the develpment and implementatin f an ICT Shared Service is believed t be apprpriate in the circumstances, given the cmplexities f the services. This will enable early efficiencies t be identified and secured as part f Phase 1, whilst further wrk takes place n the full business case and n shaping the shared service t be delivered in Phase 2. Cambridge City wuld wrk with Nrthgate t maximise the value frm this initial phase. The adptin f a lead authrity mdel in the first instance des nt rule ut any ptins n ther service delivery mdels at a future pint, shuld they be supprted by a business case.

6 6. Legal Shared Service 6.1 Prgress t date It was agreed in July that the three authrities wuld wrk twards a shared Legal Service as an early pririty. Fllwing the appintment f additinal capacity t help with this prcess, prgress has been made n mapping existing activity and resurces, cnsidering different delivery mdels, determining desired utcmes and using these t shape the next steps as part f the develpment f a shared service. 6.2 Desired utcmes frm a shared service The prpsed utcmes are as fllws: Imprving resilience better able t cpe with peaks in wrklad and staff absences. A larger team will als give each cuncil access t a greater breadth and depth f prfessinal expertise. Reduced external expenditure additinal resurces and a brader skills base will lead t a reductin in the need fr external advice and representatin. Where this is required, the cmbined purchasing pwer f all three cuncils shuld lead t mre cmpetitive prcurement rates. Imprved custmer service access t a mre cmprehensive legal service shuld result in a better and a mre respnsive service t fficers and members. Decreased fixed csts sharing r jining up legal services acrss three cuncils shuld lead t savings in sftware (licences), legal library resurces, administrative supprt and accmmdatin csts. Remdelling f legal services bringing tgether the legal services f three cuncils gives the pprtunity t lk at systems, prcesses and wrkflw arrangements at each, and finding a leaner slutin and mre agile service ffering. Staff develpment a larger team will increase the pprtunity fr staff develpment, by allwing staff t wrk acrss a brader range f areas, r t becme mre specialised as apprpriate. Staff recruitment/retentin greater wrk pprtunities shuld imprve staff retentin and help t reduce turnver (always a prblem arund the Cambridge area). A larger shared service will give the pprtunity t cnsider participating in a higher apprentice training scheme (grwing ur wn). Increased pprtunities fr incme generatin a larger, mre cmmercially fcused legal services team, shuld make it pssible t increase incme generatin, fr example by ffering legal services t ther public and vluntary sectr bdies.

7 Supprt fr client fficers t enable them t prperly instruct legal services, incrprating: The develpment f a cllabrative culture between client and legal services. Cnsistency in hw the client accesses services. Strng client leadership setting the tne fr each cuncil. Fcus n early invlvement f legal services in their rle as supplier f services. Establishment f mutual bjectives. Cmmitment t cntinuus imprvement. Transparent issue reslutin. Opprtunity t innvate. 6.3 Current Services The develpment f a mre effective client functin acrss all services in the three authrities will assist the shared legal service with regard t managing pririties and wrklads, reducing unnecessary wrk and managing risks. Each cuncil currently perates its wn discrete legal services sectin with a small t medium sized team f legal and supprt staff. The ttal number f staff currently emplyed acrss all three cuncils is 27. There are 19 lawyer/slicitrs and 8 legal assistants/supprt staff. Cambridge City has the highest number f legal staff verall, including a relatively large team f 10 lawyers. All cuncils are currently carrying vacancies and facing recruitment challenges. Within the existing legal services functins, a range f rles are carried ut by the Heads f Legal. These include the Mnitring Officer rle, prfessinal leadership f the team, management f the practice and cmmissiner f legal wrk. Mving frward wuld enable these rles t be separated with greater clarity. The ttal direct spend is currently estimated at arund 1.7m, including at least 300,000 spent n external legal advice nt including departmental budgets. Research suggests that apprximately 15% f savings shuld be expected frm direct csts in a shared legal services arrangement arund 255,000 between all three cuncils. This is a cnservative estimate, with mre savings pssible frm imprved prcurement and mre efficient use f staff, including reductins in buying external legal services. Further, mre detailed wrk wuld be carried ut in this regard as part f the full business case. Lking ahead, we wuld als expect an established and high perfrming shared legal service team t be in a psitin ultimately t generate additinal incme, thereby further reducing the need fr subsidy.

8 7. Service Delivery Mdels There are already a number f mdels fr shared legal services perating acrss the cuntry and varius ptins fr change have been cnsidered including thse set ut belw Simple Shared Service this includes a sharing f knwledge and infrmatin as well as sme jint prcurement activity. Specialists are available t wrk acrss a number f cuncils, thus imprving resilience and reducing the need t g externally fr supprt. Jint Outsurcing cuncils jin tgether t utsurce part r all f their legal services functins t anther legal prvider. Alternative Business Structures (ABS) cuncils wh want t trade with third parties and generate incme culd need t set up an ABS. This culd be jintly with ther cuncils r als in partnership with a private sectr rganisatin. ABSs are relatively new and several cuncils are currently explring a wide range f trading and partnership ptins. Cst Sharing Grup (CSG) This invlves cuncils setting up a cst sharing cmpany with members f the nt fr prfit sectr, allwing the trade in legal and ther back ffice services exempt frm VAT, with ther members f the grup. It is cnsidered, hwever, that the mst apprpriate ptin in the first instance wuld be a lead authrity mdel. This wuld enable mmentum t be maintained whilst managing the risks assciated with mving t a shared service. The adptin f a lead authrity mdel in the first instance des nt rule ut any ptins n ther service delivery mdels at a future pint. Recent changes in the law have increased the pprtunity fr cuncils t be mre innvative abut hw they perate their legal services, including increased pprtunities fr generating incme thrugh trading, and this may be wrthy f cnsideratin at sme pint in the future. 8. Prpsed next steps As with ICT, it is prpsed that a phased apprach t the develpment and implementatin f a Legal Shared Service wuld be apprpriate. The first phase wuld incrprate the delivery f early efficiencies, the putting in place f a prgramme t transfrm practices and prcesses and the develpment f a full business case fr implementatin in Phase 2. A phased apprach will als help t ensure the management and mitigatin f risk whilst mving the prpsed shared service frward. Interim prject supprt will cntinue t be necessary in rder t maintain mmentum mving frward as the new shared service is develped. In additin, it is prpsed that a shared legal service wuld benefit frm the appintment f a Business & Legal Practice Manager t manage wrklads and pririties acrss the three authrities, as is cmmn in private law practice. Given that a pst f this nature des nt currently exist in any f the three services, it is recmmended that such a pst be created at this stage in

9 rder t supprt the transfrmatin prgramme, the delivery f early efficiencies and the mve t the shared service. 9. Capacity As far as the verall prgramme is cncerned, each Cuncil has infrmally prvided prject management and supprt fr different aspects f the Prgramme. Hwever, verall c-rdinatin and capacity t mve frward with mmentum has prved challenging and this will need t be mre structured in future if we are t maintain mmentum, imprve c-rdinatin and address mre effective internal and external cmmunicatins. The successful utcme f the TCA bid is excellent news and can be used fr this purpse. it is anticipated that this will be spent n: - verall prject management/c-rdinatin; - interim and permanent shared psts t ensure mmentum and the early delivery f efficiencies/additinal incme within legal, ICT and building cntrl; - shared training prgrammes; - ICT harmnisatin. We will als cntinue t make applicatins t ther funding streams where pssible. We have, fr example, been successful in securing funding frm EELGA fr jint training f key staff in develping shared services and prducing business cases. 10. Member gvernance arrangements It was agreed in July that verall prgress wuld be verseen by a jint steering grup invlving Leaders, and relevant prtfli hlders where apprpriate, reprting back t the respective Cabinets and ther decisinmaking bdies. In additin, prtfli hlders frm each authrity will als need t be invlved in verseeing perfrmance nce specific shared services have been established. 11. Financial Implicatins 12. Legal The delivery f shared services will require additinal capacity upfrnt in rder t ensure effective delivery. Hwever it is anticipated that this will be recvered via future efficiencies and via external funding, in particular the Transfrmatin Challenge Award. Any legal implicatins will be addressed as part f utline business cases as they are brught frward. 13. Staffing Whilst mving t shared services creates uncertainty fr staff, it will als help t ensure greater capacity and resilience tgether with enhanced career pprtunities. In the lnger term, this will help t prvide better jb security and t minimise the need fr cmpulsry redundancies.

10 As part f the prcess, it will be imprtant t ensure full engagement and cnsultatin with bth staff and trade unins mving frward. The lead HR fficers frm all three Cuncils are currently wrking tgether t ensure a crdinated apprach. 14. Risk Management A dedicated risk lg will be set up fr the Shared Services Prgramme Bard t ensure that risks are identified and managed. In additin, specific peratinal risks will be identified and managed thrugh the business plan prcess.