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Sharing Services – Cutting Costs

Sharing Services – Cutting Costs. Presentation by Gary Porter 10 th March 2011. Government agenda. Need to save money. Our Company. Our story in figures: £30,000,000 saved over 10 years 214,000 residents served by Compass Point 299 staff transferred to the Company

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Sharing Services – Cutting Costs

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  1. Sharing Services – Cutting Costs Presentation by Gary Porter 10th March 2011

  2. Government agenda Need to save money

  3. Our Company • Our story in figures: • £30,000,000 saved 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

  4. 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 • How we can help

  5. 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 • Company operation • 1st Aug 10 onwards: Implementation of the agreed business plan.

  6. 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 • ‘c’ shareholder investor option in East Coast company for new public sector partners

  7. Getting help • Legal advice • Company and Governance structure • Shareholders and Management Agreement • Teckal exemption compliance • Trading options • Procurement advice • Buying solutions quickly and effectively • Contract management

  8. Company set up • 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 • Established a joint venture private limited company: • Compass Point Business Services (East Coast) Ltd = Teckal compliant; and • Compass Point Business Services to trade on open market.

  9. 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 – company formation April 10; shadow board directors May 10; business plan Aug 10 • Redesign approach for services – putting customers first, involving staff • Setting up a company • Stakeholder management

  10. 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

  11. 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

  12. 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

  13. How we can help • Shared services • Lean business process redesign • Individual services: • Benefits • Customer Services • Finance • HR, including H&S • ICT • Payroll • Procurement • Revenues

  14. Benefits • It will save the two councils £31m • Responsive services • Fast decision making

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