Efficiency and IT Panel SHARP Project Update Sept 2005 Hertfordshire County Council

Achievements System stabilised -Action Plan completed Year end closure of accounts earlier under SAP Various small project / pilots completed successfully /underway [e.g. The SAP impacts of Growth and Change-Phase 1 complete, Phase 2 ready to go live; Training and Development – live – input into the ACS finance review] Project Implementation Review completed in July 2005 Serco Contract renegotiated end of June 2005

Project Implementation Review – One year after Go-live What went well - What needs to improve Looked at : –The actual delivery of SHARP spec with the business –Proposals for future SHARP developments. –Any blocks to delivery of the original benefits. –Developing an action plan to address these –Reassessing the model for ongoing support. 15 Workshops held in July involving SHARP team, Champions and Subject Matter Experts

Overview of Implementation Review Overall a positive outcome from the workshops with participants feedback scoring the process 83 out of 100. Positive audit reports also have been produced in the main areas

Areas to Improve -1 System Better access to Management Information Enhance support of business processes to improve performance Departmental Processes Identify gaps between agreed processes and business needs Ensure clarity of processes and consistency of application Support Make the SHARP team more self-sufficient in SAP support Further develop the helpdesk ‘experience’ Communications Build up the use of Best Practice and Knowledge Sharing Provide better access to up-to-date Process information

Areas to Improve -2 Training Target training more to business needs Grow the understanding of SAP Roles & SAP Benefits Managed Service Improve MS service processes, comms and relationships Continuous Improvement Plan Develop a plan for Continuous Improvement Continuously match system to business processes evolution

Summary of Review Actions Reporting Project Procurement Project High level review of key policies and processes Review SHARP support framework Clarify SAP roles (within HCC management structure) Further develop SHARP Communication Strategy Review Training delivery, methods and content Enhance key contract management relationships Review Forms Agree delivery method for Continuous Improvement

Serco Contract Renegotiation 1 Recognises change of name to Serco ( from ITNet) Reduces contract term from 7 to 5 years – expires 31/03/09 Has a more flexible termination clause Moves to Target Cost basis New lower base guarantees MS business case savings. Brings in Open book Accounting. Further guaranteed reductions via “Committed” savings projects

Serco Contract Renegotiation 2 Targets further Continuous Improvement Savings Institutes Balanced Scorecard reporting Initiates a Rebate scheme linked to the Scorecard Updates all Service Level Definitions Strengthens Serco Management on site Required all backlogs cleared - via the action plan

THE ORIGINAL BUSINESS CASE ON TARGET - But Sources Different

Focus now on Procurement Hertfordshire County Council SHARP HBSDEPTS

Project Objectives -1 Supply clear routes for efficient and effective purchasing to ensure that we buy the right goods at the right price, aggregate demand and produce savings Promote advantages of these routes and measure their use thus eliminating maverick purchasing and extending commitment accounting Rationalise the supplier base to allow better management of the quality of goods/ services, improve on time deliveries and negotiate better payment terms Improve communications with Suppliers to work with them to drive down transaction costs and become their customer of choice

Project Objectives -2 Encourage the Uptake of E-opportunities by increasing e-tendering, e-auctions and e-enabling the ‘end to end’ process reducing paperwork and costs Reduce Transaction Costs by the implementation of a low value strategy e.g. purchasing cards to reduce numbers of invoices / orders processed

THE PROCUREMENT GROUP PROJECT STRANDS

Implementation Stage 1 Stage 3 Stage 2 Stage 4 Starts Sept 05 Purchasing policy paper Plan for areas outside policy Low value strategy in place Training and Support Review

Implementation Stage 1 Stage 3 Stage 2 Stage 4 Starts Oct 05 Effective Management of the Supplier Database Document Management and workflow commenced Benchmarking and reporting started SAP upgrade for EBP decision Review of Gateway SMB Sponsorship Communications reviewed

Implementation Stage 1 Stage 3 Stage 2 Stage 4 Starts Nov 05 Effective Procurement / Contractual relationships reviewed and in place Back end integration – links to suppliers started

Implementation Stage 1 Stage 3 Stage 2 Stage 4 Starts JAN 06 Purchasing Cards in use Ongoing reporting in place Benefits being realised Handover supplier function to HBS Post implementation review

Procurement Savings Strand05/0606/0707/0808/09Total £k Purchasing cards Workflow * Business support savings * Transfer A14s to SAP ,830 Transfer cheques to BACS Improved Procurement and back end integration ,039 Total Savings ,560 4,647 Less Project costs(190) (60)(250) Net Savings ,560 4,397 Procurement Shortfall in 05/06 and 06/07 covered by earlier Serco savings