Flintshire All Wales Alternative Delivery Models Event 6th July 2015 Welcome, Introduction and Setting the Scene to the Alternative Delivery Model Challenge in Wales Croeso, Cyflwyniad a Gosod yr Olygfa ar gyfer Her Ffyrdd Amgen o Gynnig Gwasanaeth yng Nghymru Flintshire All Wales Alternative Delivery Models Event 6th July 2015 Digwyddiad Ffyrdd Amgen o Gynnig Gwasanaethau Cymru Gyfan yn Sir y Fflint 6 Gorffennaf 2015

Current Practice in the UK / Arfer presennol yn y D.U. Ben Spinks, Capita Transformation

Capita Transformation www.capita.co.uk/transformation Current practice in the UK / Arfer presennol yn y DU Ben Spinks, Local Government Market Director Capita Transformation Capita Transformation www.capita.co.uk/transformation

Source: Institute for Fiscal Studies Context – a new financial reality in England / Cyd-destun – realiti ariannol newydd yn Lloegr Against a backdrop of rising demand and public expectations The distribution of spending cuts across local authorities Average cut - 20.4% Highest - 46.3% Lowest - 6.2% 20.4% without adjusting for pop growth – 24%+ afterwards Source for all financial stats = Institute for Fiscal studies Masks variations from 46.3% (Westminster) to 6.2% (NE Lincolnshire) 2015/15 – LB average cut = 6.3%, vs shire county average of 1.9% All against a backdrop of rising demand and expectations Source: Institute for Fiscal Studies

Very crudely, two responses to this challenge Yn fras iawn, dau ymateb i’r her hon Flat cuts per department Siloed approach Year-on-year cuts Mitigates against creative solutions Risk averse Whole organisation approaches Emphasis on innovation Pan-organisation and partnership Collaboration between authorities Risk aware

Alternative delivery models – potential benefits / Modelau cyflawni amgen – manteision posibl Increased scope to pull ‘core levers’ which enable savings Research shows that staff feel more engaged and able to influence the business, that productivity increases and sickness absence is reduced Staff efficiency & engagement Varies with the legal option, but increased freedom to trade, to enter new markets and to generate profits which can be reinvested Commercialisation Helps identify real current costs and, over time, offers the potential to reduce these Support service costs Potential to vary T&Cs, specifically for new staff Terms and conditions Successful ADMs have: developed and enhanced services improved relationships and staff engagement enjoyed income growth reduced costs to the authority More agile Different relationships with local people

Some key considerations / Rhai ystyriaethau allweddol The relationship between the service and the council will evolve during the process of creating and spinning out an ADM – proactively managing this is key Culture and relationships Inspirational leadership can make or break a fledgling ADM – leadership capacity must be honest appraised and supported Leadership Actively supporting the development of commercial skill sets is essential – this will be new for many staff Skills development Focus on getting the legal construct right, agreeing contractual arrangements and support service costs with the ‘parent’ authority, detracts from robust analysis of external market Understand the market Staff, managers, councillors, unions, customers – all will have a legitimate interest in the future operating model and should be proactively engaged as early as possible Engage all stakeholders The process of creating an ADM introduces change and stresses within the retained organisation as well, particularly with regards support services Changes affect the ‘core’ council 7

A few examples / Rhai enghreifftiau A little about some of these But also about the characteristics they share

Ben Spinks E: ben.spinks@capita.co.uk M: 07713 787683