Datewww.local.gov.uk Research Findings Service Delivery Models and their HR Implications Anastasia Simpson & Stephen Cooper 17 th March

Why are we here? LGA / Solace / PPMA Public Sector Transformation network Transformation challenge awards Shared Chief Executive’s network Local Government Delivery Council

Three steps 1.What are the current service delivery models? –“coming together is a beginning… 2.Best practice –…staying together is progress… 3.Next Practice –…working together is success”

What does the future look like? The Co-operative Council The Commissioning Council The Commercially Minded Council The Mosaic Council Combined Authorities Lead Authority Model

VOTING QUESTIONS

THE RESEARCH PROJECT

Local Government Services Core Council Council 2Council 3Council 4 Other public body Other non- public body Private / voluntary sector provider Social enterprise ALMO Joint venture Local Authority Trading company

21 st Century Worker

What are councils doing?

Service delivery models

How do I get there?

Drivers for change Cost Savings Improved Skill Base Better utilisation of resources Better quality Service Greater focus on client need

Key workforce themes Communicate Change Relationship Managment Staff Engagement Leadership Clear objectives Marketing ICT Realignment of Processes Realistic budget Communicate expectations Realistic resources Upskilling Relationships Contract negotiation Commercialism Harmonisation Terms and Conditions of Employment Pensions Baseline skills and knowledge transfer Project team Upskilling managers More focus post implementation Political Shared vision for new service Open communication Post implmentation reviews Relationships Communication Sufficient timescales Leadership Culture Change TUPE Communication Processes

Top 10 recommendations Effective relationship management and communication Shared vision and Political buy in Realistic budget and expectations TUPE Harmonising terms and conditions of employment/ pensions Upskilling employees, commercial awareness Leadership Governance, SLAs, Legal Agreements Managing cultures across boundaries Performance management/ effective reward strategies

Some specific issues Role models for leaders, during a period of unprecedented flux Preparing to work in a commercial environment Balancing the political and commercial agenda Preparing operational staff moving to new bodies with corporate skills Managing Member and resident expectations Managing across organisational boundaries : e.g. influencing organisational culture and managing inequality of pay, terms and conditions and pensions Performance management and reward strategy that is fit for the new order Engagement of delivery partners Managing workload during transition periods War for talent

INTERACTIVE VOTING

THE DIFFERENT MODELS

Internal transformation Digitalisation Agile Council Commissioning Commercialism Income generation Community Engagement Demand Management Improve performance Cost savings –Terms and conditions –Recruitment freeze –Reducing posts

In-sourcing Benefits Cheaper? e.g. management layers can be stripped out and structures may have been streamlined Clearer accountability Shared goals and vision Bringing commerciality into the council Commercial opportunities Challenges More expensive? e.g. service standards Impact on HR metrics Equal pay Aligning –organisational structures –terms and conditions – the new “single status” –culture

Working together – Shared Services, Joint Venture Companies Benefits Economies of scale Similar cultures to be aligned* Clear accountability* Influencing how money is spent Sharing best practice Developing expertise Challenges Aligning –organisational structures –terms and conditions – the new “single status” –performance management –Organisational culture, the third (or fourth) way Independence Who drives this?

Locality working Benefits Cheaper Trust and understanding Flexibility Innovation No need to harmonise Skill development Capacity Outcomes not tasks Challenges Managing culture Leadership Perceptions of inequality Job design Reward Responsibility and accountability Capacity beyond statutory responsibilities

Outsourcing Benefits Cheaper? Expertise of specialists Economies of scale Innovation Efficiency Access technology Flexibility Challenges More expensive? Reputation Transformational leadership Partnership working Recruitment and retention Management layers TUPE Resistance to change

Other new bodies LATC, social enterprises, Trusts Benefits Some flexibility for income generation Staff empowerment Access to funding Innovation Developing expertise Challenges Open procurement competition Capacity to set up a new structure / organisation whilst doing the day job Expectation of income generation “Corporate” expertise Integration

Table 22: Employee-led organisations Response categoryResponseShire district Single/upper tier England Did you receive any requests from staff to set up an employee led organisation? Yes (%)3138 No (%) Don't know (%)4139 Total (%)100 Has your authority supported these requests? Yes (%)(2) 100(9) 82(11) 85 No (%)(0) 0 Don't know (%)(1)0(2) 18(2) 15 Total (%)(2) 100(11) 100(13) 100 Is your authority going to be actively promoting employee led organisations in the next financial year (2013/14)? Yes (%)71310 No (%) Don't know (%) Total (%)100

VOTING QUESTIONS

NEXT STEPS

Areas for further work Commercialism Terms and Conditions of Employment Understanding of Different Models (Mutuals) Pay, Performance and Job Evaluation Leadership Programmes Figure 20 - Potential Areas of Further Research Governance Arangements

Post conference? Review and collate all resources Develop database of practice –Bank of professionals to implement change –Sharing of documentation Take the research to the next level –Series of linked events

Get involved!

Some additional resources Shared service map – Social enterprises map – toYvWhVV0.kRv3mNSlchakhttps:// toYvWhVV0.kRv3mNSlchak Transformation Challenge Award winner – tachment_data/file/273731/150114_Transformation_Challe nge_Award_-_Winning_Bids.pdfhttps:// tachment_data/file/273731/150114_Transformation_Challe nge_Award_-_Winning_Bids.pdf

Additional resource (cont.) Digitalisation – /journal_content/56/10180/ /ARTICLEhttp:// /journal_content/56/10180/ /ARTICLE Enterprising Councils – 8aaa25f-81d6-45c9-aa &groupId=10180http:// 8aaa25f-81d6-45c9-aa &groupId=10180 Commercialism – journal_content/56/10180/ /ARTICLEhttp:// journal_content/56/10180/ /ARTICLE

Contact details Stephen Cooper Anastasia Simpson