Managing demand through behaviour change Coventry City Council SEN Transport © 2012 iMPOWER Consulting Ltd Registered office: 14 Clerkenwell Close, London EC1R 0AN Registered in England & Wales No Andy Begley Local Government Customer Insight Forum 20/04/2012

Contents: Demand management & Behaviour change Example (case study) Use of ‘Value Modes’ Results Lessons Other examples

3 Introduction Senior local government officers told iMPOWER that demand management represents a significant and untapped opportunity. Our research demonstrates that this opportunity is worth at least £3bn, and as much as £5bn – or the equivalent of £39m on average for a top-tier authority. Through working with local authorities, iMPOWER has observed two recurring trends:  A poor relationship with local citizens leads directly to spending too much money on delivering services – regardless of how notionally 'efficient' a council is, and;  As the expectations and motivations of the public have evolved over time, local government has lost the trust of the public, making change even harder. We have pulled together 14 case studies from across local government, central government and the private sector, setting out a range projects which have sought to change the expectations and actions of the public. Some of these projects have been more successful than others, but they all have one thing in common; a focus on behaviour change as a tool for demand management. Our White Paper on demand management, Changing the Game, can be found at: f f

4 What is demand management? Demand management is:  Addressing mismatched expectations through changes in process and communication.  Ensuring that over-supply is reduced.  Reducing the dependency of those who do have needs by tapping into citizen- driven innovations: personalisation with a purpose.  Building the community skills and capacity to take on more responsibility and reduce needs in the long term – transforming the relationship with the citizen. Demand management is not:  Tightening eligibility criteria.  Restricting access or opening hours.  Stopping non-statutory services, or  ‘Shunting’ costs on to partners.

Behaviour change – choice architecture No choice is ever neutral. Why shouldn’t it be us that influences choice? Results: 80% less “spillage”

Between February and August 2011, iMPOWER worked closely with Coventry City Council to address spiralling home-to-school transport costs whilst at the same time improving outcomes for children and their families. The results were beyond expectations; the Council expects to make over 15% savings, based on latest financial projections/ assumptions and assuming 2 years of saving per case. cost demand outcomes budget £782k overspend on a budget of £4.45m

The approach Activity was centred around the reduction of demand for the Council, and was divided between 3 specific workstreams: Personal Transport Budgets Structured Contact Independent Travel Training Coventry City Council requested the support of iMPOWER to radically change Coventry’s approach and relationships with parents and carers with regard to SEN home-to-school (HTS) transport. Using Value Modes Analysis the programme sought to: understand the parent cohort better, communicate with them more effectively, incentivise them to become more involved in HTS travel with the ultimate aim of reducing transport demand and related costs for the council and to improve the quality of life for the children and parents involved.

8 What are Value Modes?  Based on Maslow’s Hierarchy of Needs  Classifications based on individuals’ Value sets  Values = beliefs and motivation

9 Applying Value Modes  Addressing ‘demand side’ saving opportunities  Using ‘Value Modes’ to segment parents into different attitudinal groups.  It was anticipated that different groups would have different levels of willingness to try new idea for the transport of their children.  Aim: enable parents to choose more cost-effective, alternative travel options resulting in savings and greater service satisfaction.  Provide fresh approach to understand motivations of children and their families.

10 The results:  As a result of iMPOWER’s work on demand for SEN transport, almost 120 parents are now voluntarily driving their own children to school with a personal travel budget.  More focused and effective travel training is helping a number of other children become completely independent of the system.  Structured contact is remodelling the way staff engage with parents.  As a result, the council is now projecting 15%-20% budget savings.

11 Our key lessons from delivering transport behaviour change projects  Behaviour change should not be seen as a separate exercise – the behaviour change approach cannot be delivered in isolation and should be linked into wider change programmes. Where there are customer facing change projects use the outcomes of the behaviour change work to influence delivery plans  Limited ownership of transport services – responsibility for transport services is dispersed across an authority with a significant disconnect between commissioning and operations. This can lead to limited spend transparency an inaccurate assessments of service cost, together with a poor data set to inform decision making :  Staff need to change their behaviours too – there is limited value in engaging service users if staff have not been engaged first. To change the transport system and services requires a wide range of stakeholders to sign up to change components of the service and we have found that energy to do this is key to delivery

12 Other case studies These case studies have been selected to present a range of different applications for demand management and behaviour change techniques. These include:  Recent cases where iMPOWER has worked directly with local authorities to reduce demand and realise savings  Instances from the wider public sector in the UK, including other local authorities, central government departments and public health bodies  Examples from the private sector, including international examples from Canada and the USA iMPOWER examples Reducing spend on SEN transport Improving reablement outcomes Promoting channel shift Encouraging kerbside recycling Reducing demand for HWRCs Other examples Reducing water consumption Reducing household energy use Tackling risky behaviours Preventing strokes Controlling chlamydia Stopping drink driving Tackling obesity Smarter travel choices Reducing reoffending

13 For further information on demand management and behaviour change iMPOWER 14 Clerkenwell Close London EC1R 0AN T M Andy Begley Our White Paper on demand management, Changing the Game, can be found at: f f