Compass Point: Innovative Public Sector Shared Services Centre

1. Compass Point:InnovativePublic Sector Shared Services Centre Driving £30m savings through back office efficiencies • Marcus Coleman • Jan 2012

2. Our company • South Holland and East Lindsey District Councils innovative answer to the challenges faced by the two councils established in August 2010 • a range of front and back office services • unique blend of public sector knowledge and business acumen great value for money services that will help to make substantial savings and increase the standards of customer services

3. Taking a new direction Foundation for a new public sector model: Compass Point Business Services is a commercial shared services organisation Two key areas of focus: Provide back office professional services for its local government owners - South Holland District Council and East Lindsey District Council Operate more widely across the public sector by offering outsourced services and processes Ethos is to be commercially oriented to deploy our public ownership to offer a different, more flexible model for public sector services, distinctly different from traditional outsourcing companies. Compass Point will be offering repeatable Business Process Outsourcing to others with the aim of reducing costs and driving greater efficiency savings for the public sector.

4. The facts and figures • Our story in figures: • £30,000,000 in savings over 10 years • 214,000 residents served by Compass Point • 299 staff transferred to the Company • 97 councillor ‘shareholders’ • 10 teams transformed • 5 services delivered • 2 council owners • One company

5. Two became one… Organisation 1 = 198 FTE CPBS= 205 FTE Shape demand Create economies of flow Reduce waste in the system Optimise resources Gain economies of scale Integrate system & MI Manage Capacity & Demand Organisation 2 = 100 FTE

6. We’re making the news

7. Generating interest Coverage in The Guardian, LGC, MJ, Public Technology and Computing Press

8. Getting together

9. Our story… • Getting it together • Three phases • What we liked • Getting help along the way • Making it work • Why a company • Our approach • Making it real

10. Three phases • Phase One – Do we like each other? • Pathfinder & Shared Services • Sector’s Report – Autumn 08 • Phase Two - In Principle • Feb 09: Tribal Employed • Feb - Aug: 09 Staff & Members workshops in groups across the three councils • Sep 09: Tribal report - three become two… • Phase Three - Commitment • Oct 09: Reaffirming commitment - £4.65m, financial savings worthwhile • Oct - Feb10: Setting up the project, legal guidance, recruiting team • Feb - Jul 10: Project becomes company, becomes reality • 28 July 10: Company goes live

11. Setting it up • Investment • £4.65m split between 2 authorities • Payment for redundancy, ICT changes, legal advice change team • Benefits • £30m savings • 63/37 split based on population • ‘c’ shareholder investor option for new public sector partners • Legal advice • Company and Governance structure • Shareholders and Management Agreement • Procurement advice • Buying solutions quickly and effectively • Contract management

12. Why create a company? • Why? • It changes the culture in the council • It’s a vehicle to develop an income stream for the council • It’s not outsourcing - you still have flexibility and control • Joint venture private limited company: • Compass Point Business Services (East Coast) Ltd = Teckal compliant • Compass Point Business Services to trade on open market.

13. Our approach • Governance clear • Project Team • Appointed individual specialists, not a firm • Merged services project • Bite size bits: • What outcomes do we want? • Key decisions taken along the way • Redesign approach for services by involving teams • Setting up a company • Stakeholder management

14. Our approach • What are the benefits? • It achieves real savings • Knowledge transfer of lean redesign • It is driving cultural change in our council services • We have flexibility • We could work for other bodies • We could add in future owners – c class shareholders

15. Making it real • Board of Directors from both Councils • Management Team – Stephen Bayliffe MD recruited from private sector • Redesign Teams – staff teams recruited from the services working alongside redesign experts • Major investment in ICT and lean processes • Management Agreement & underpinning service level agreements • Balanced Scorecard – performance management

16. Systems Revenues • Capita Academy Benefits • Capita Academy • Idox HR & Finance • AX 2012 Customer Services • Microsoft Dynamics CRM ICT • Hornbill • Telephone system

17. Lessons learned • Be upfront and honest with each other, politically and managerially • Recognise the importance of managing stakeholders – internally, externally • Good communications are essential – develop new two-way channels, listen and respond • Get involvement from staff, TUs and managers • Resource the team with people who have done it before – it won’t happen otherwise • Commit money to it

18. What next?

19. Pushing ahead with our private sector ethos • New ways of working • ‘Compass People’ • Active Operations Management

20. Pushing ahead with our private sector ethos Results-Only Work Environment People are free to do whatever they want, whenever they want, as long as the work gets done.

21. Compass Point:InnovativePublic Sector Shared Services Centre marcus.coleman@cpbs.com07971 718648