Lessons learnt from transformation during 2009-10

1. Lessons learnt from transformation during 2009-10 Alex Aiken Director of Communications & Strategy, Westminster City Council

2. Three golden rules • HONESTY: “There will be job losses” • FAIRNESS: “There is a transparent process” • HOPE: “This will improve services. You can help”

3. First, what do we think about Birmingham? • Britain's largest local authority plans to shed up 2,000 jobs, freeze staff pay and reduce services in what is being seen as a foretaste of serious cuts to council budgets across the country. The Guardian • “The truth is, that if we are to protect the public from the consequences of these spending reductions, we need revolutionary change in the way we provide services.We are going to have to look at ideas that might have seemed inconceivable only a short time ago. There will inevitably be resistance to such changes – not just from staff and others directly affected, but from elected members and the public and media generally.” Stephen Hughes, Letter to BCC staff, September 2010

4. The presentation • Split into four parts: Strategy, impact, HR process, engagement • Before that, news on sharing • Covers Westminster’s New Council implementation over 2009-10 • A presentation for you, not me

5. Some words on sharing…

6. Tri Borough staff survey • Strong consistency between the three boroughs – 2,300 staff • Three quarters (77%) of staff support shared services, with a clear focus on the potential benefits of reducing costs and delivering better services • There is concern that this will not be achieved. Only three in ten (30%) trust their council to make the right decision over which services are to be shared and half (52%) disagree that the sharing of services will make it easier for them to deliver better services to residents • We now have a baseline to assess progress and a basis for reporting back and acting on staff concerns

7. Opinion of sharing some council services Question 3: Thinking about the possible sharing of council services, which of the following statements comes closest to your views? 77% overall support sharing at least some services Source: Tri-borough staff survey, February 2011, 2,314 employees overall, H&F (536), RBKC (897), WCC (881)

8. What should Tri-borough achieve? Question 8: Which two or three of the following do you think are most important for the council to look to achieve by sharing services with the other local authorities? % Agree with statement Source: Tri-borough staff survey, February 2011, 2,314 employees overall, H&F (536), RBKC (897), WCC (881)

9. Westminster’s New Council • “The new council organisation is set to save local taxpayers almost £14 million over the next two years and will provide better services and be more focused on priority projects for the city.” • Strategic Commissioning • 10% reduction in headcount • Allied to reward programme • Centralised support • Delivered between December 2008 (Cabinet report) and October 2009 (start of new structure.

10. New Organisational Model for 2012 – reporting lines Children’s, Young People & Families Premises Management Street Management Schools & Learning Plan Making Adult Social Care Libraries & Culture Sports & Leisure Development SEB Service Delivery Support Service Delivery Support RMQ LP MH MO’C ICT AG JB MM Property Legal & Admin “Weaving” Strategic connections Commissioning HR Finance Strategic Support Policy & Innovation Performance & Improvement Procurement & Contract Management Transformation & Prog. Management Communication & Strategy NB: CityWest and Adult Education acknowledged as arms length delivery units

11. ‘Commissioning’ • Commissioning means creating a virtuous circle of identifying public need, designing a solution with users, creating a team and budget to deliver the plan, implementing, then evaluating and reviewing. So all our services should start by focusing on outcomes we can achieve rather than how much output we can deliver.

12. A mistake

13. Part 1: Approach and strategy • Roles • Feeling • Strategy • Leadership • Involvement

14. The challenges • Workforce cynicism and apathy • Managerial protectionism • Leadership clarity on the plan and end design • Departmental differences • Cultural and infrastructural impediments • Time Leaders Culture and infrastructure Managers Staff D2 D3 D4 D5 D6 D1

15. “Organisations do not change. People do … or they do not.” Carol Kinsey-Goman 7% 61% 32% The solutions • Understand your role • Know how it feels • Have a clear strategy • Create meaningful involvement • Support and mobilise your leadership team Formal Media Infrastructure Leadership Source : Towers Perrin and Tom Lee

16. Remember, people’s reaction to change is as much about how it feels as it is about logic and facts. Understand your role Engaged staff make your change programme more: • Successful – many fail • Sustainable – most don’t last • Speedy – the majority are late • If you don’t know that your staff are engaged you are jeopardising your change programme • Your role is to work with HR and get your staff and leaders to understand and act on each others views

17. I am committed to act engagement I believe advocacy I see it matters commitment I understand the message motivation satisfaction I am aware of the message Know how it feels ACTION 1: Regularly map out the internal comms landscape by seniority, location and department. ACTION 2: From your results, work out what influences perceptions, knowledge and behaviour the most.

18. Have a clear strategy • ROSIE - Build a consensus • Agree at your objective + strategy at the highest levels • Know your tactics will keep changing • The basics should be in writing at regular intervals • The detail should not be hidden if it is known • The majority of your efforts should go into F2F comms • Clarity over the HR process Stage 1 Why we need to change • Stage 2 • How we are going to change • Stage 3 • We have listened • Stage 4 • Here’s what you can do

19. Create meaningful involvement • Explain • Our ambition • What we can afford • What we are going to do • When it will happen? / How decisions will be made / What the timetable is • What’s in it for me • How staff will be supported • What’s involved • Involve • Signal a willingness to listen at every opportunity • Discuss what the challenges are • Innovation campaigns • Fix what staff say is broken • Feedback what’s changed • Let the people involved describe their perspective Pass the pub test

20. Support & mobilise leadership • Enable evidence based decision making • Provide insight into what is (and isn’t) working and why • Run top 50 conferences • Roadshows by the entire leadership team • Weekly calls to action linked to the HR timetable • Sounding Boards • Open House events • Showcases & CEO lunches • Always remember - this is about hearts and minds

21. Part 2: The impact • The change process • The importance of keeping staff informed • Results from the new council process

22. Getting through the change process Way senior managers run the council Staff involved in decision making Way staff are managed Support employees affected by change Way major projects are implemented Question: Which two or three of the following, if any, are most in need of improvement over the next three months? Source: Staff Survey, March 2010, based on 337 respondents Question was not asked in the Your Voice Survey 2008

23. Impact of frequency of briefings Speak highly of WCC services The Senior Management Team of my unit shows good leadership Speak highly of WCC as employer The way staff are managed needs improving Agree (%) (23%) (43%) (34%) Frequency of briefing (in brackets: % of staff) Source: 337 Westminster City Council employees, March 2010 Question: How often if at all does your team manager verbally brief your team about what the council is doing and the decisions that have been made by senior management?

24. Frequency of manager briefings Question: How often, if at all does your team manager verbally brief your team about what the council is doing and the decisions that have been made by senior management? Source: 353 Westminster staff, June 2010

25. Impact of keeping staff informed

26. Council re-organisation I believe the council has to change I understand why some job cuts will have to be made The council should cut some projects The council will be a better place to work once the re-organisation is complete Plans to change how we work are well thought out and sensible Source: 812 Westminster Staff, March 2009

27. Manager’s Briefings by Department Question: How often does your team manager brief your team about what the council is doing and decisions that have been made by senior management? Source: Staff Survey March 2010 Base: 337

28. Communications Policy and Performance HR Planning and City Development Libraries Housing E&L (not inc. parking) + Finance and Resources Parking IT Transportation Legal and Admin Adults Community Protection Children’s Keeping staff informed Agree their dept. senior managers make the right decisions Verbally briefed by manager at least once a week Source: 619 Westminster Staff, May 2009

29. Engagement with staff Informed about what’s going on at the council Critic Advocate No views either way Question: Which one of the following comes closest to how you feel about Westminster City Council as an employer?

30. Part 3: The Process • Briefings for managers • Process • Staff support

31. The Facts This is significantly impacting on all staff. We have never done anything so big before. My role is to be to support managers and staff. this will be a period of operational disruption. this will be a period of employment instability. We will have low morale. 31

32. DRAFT SUBJECT TO CONSULTATION Oct 2009 July 2009 Dec 2009 Basic Restructure Time LineDetailed RACI attached in full Road Map April 2009 Pre - Work Implementation New Operating Model 1st 90 days 2nd 90 days 3rd 90 days Vulnerability letter Notice Of Redundancy 1 32

33. The Road Map Stage 1: Define new structure(s) – shape and size/ timing and business case/ commence consultation Stage 2: Identify affected staff Stage 3: Planning for Implementation Stage 4: Operate Transfer/Assimilation Stage 5: Issue letters of vulnerability Unsuccessful Successful Stage 1h: Prepare and send BERR notification Stage 6: Final Preparation for Implementation Appoint – Advise non-vulnerable staff Stage 7d: Appoint to Alternative, Non-Equivalent Employment Stage 7: Ring Fenced appointment process Stage 8: Internal/External competition for remaining posts Unsuccessful Stage 7a: Appoint to Suitable Alternative Employment Either/Or Successful Unsuccessful Successful 4 week trial period and ongoing review in new position for first four weeks Confirm appointment to post Appoint Successful Remain in redeployment pool until alternative employment is identified, or end of notice period Unsuccessful Unsuccessful Stage 9: Termination Termination Meeting Immediate case to Director of HR 1

34. Basic Appointment Cycle Define New Structure If still Insufficient Begin External recruitment Define Number of Staff needed If still Insufficient Begin Internal recruitment Identify Affected staff Competitive appointment Process If Insufficient SAE refer to redeployment Pool Select Successful Staff If Insufficient Applicants Use SAE 1 34

35. Part 4: Staff Engagement • The campaigns we ran • Have Your Say, Westminster Standard, Innovation • The importance of customer service • Core communication initiatives • External audiences

36. Staff Engagement Activity Contribution • Westminster Standard • Staff Forums (replaced sounding boards) • Formal and informal consultation on the new model • Innovation Campaign Celebration • Have Your Say • Westminster Heroes • Staff recognition scheme (replaced quarterly awards)

37. Have Your Say • During July 2009 130 teams and individuals replied to the Have Your Say campaign with their feedback on our proposed changes to the council. They offered nearly 290 separate comments and ideas. This paper sets out how we might respond to the main issues raised with ten major commitments, containing 34 proposed actions.

38. 10 Commitments • Adapt our basic proposals • Be clear about priorities • Show how we’ll work together thoroughly • Demonstrate our commitment • Give you more certainty • Give you the tools to make it work • Offer a period of consolidation after major change • Provide clearer information about what’s happening • Ensure we retain critical knowledge • Make our long-term aims easy to understand

39. The personal commitment

40. The Westminster Standard

41. Getting ownership for the customer service standard

42. Westminster Standard - outputs • Customer Strategy Board • 82% of employees are aware of the Westminster Standard • 100 managers completed mystery shopping • 115 colleagues nominated for providing excellent customer service (two winners announced overall) • nearly 5000 hits to our intranet site, and 1243 distinct users • 50 attendees to the event.

44. Innovation challenge facts 56 ideas have been submitted. We are in the process of implementing 10 ideas that have been put forward 1. Customers only having to give us their information once 2. Increasing home working to decrease the size of the building 3. We've introduced corporate Oyster cards 4. Merging back office functions with other councils 5. Training street staff so they have knowledge around all services 6. Trialling Twitter - currently have 1000 followers 5. Segmenting our customers 6. Introducing Airwave Radios for Street Management Officers 7. Implementing a Westminster app for smart phones 8. We have introduced encrypted memory sticks 9. Simplified performance management 10. Reducing the number of petty cash transactions through Proc. cards

45. Other initiatives (audience) • Weekly managers briefings (300) • Management conferences (150) • Facts on the Wire (3,000) • Lunch with Mike (10) • Floor walks (200) • Showcase events (50) • Daily Loops (3,000)

46. External Communication • Upfront about the process – regular media updates • Rebuttal of inaccurate information • CEX Stakeholder letters to community leaders • Member workshops and regular briefings

47. Jobs cuts/council restructure Helping residents through recession How council offers VFM Sales of street signs on ebay Council’s estate regeneration Community Build of 500 homes Leadership media: The public like the cuts Source: Westminster Reputation Tracker, August 2009, 500 Westminster Residents 16+ interviewed by telephone Questions: Have you recently seen or heard any of the following about Westminster City Council

48. Steady rise in informed levels over time, satisfaction up eight points Drop in value for money led to change, and long term recovery Early warning and performance monitoring Source: c.500 residents 16+ (telephone), May 2007 – June 2010

49. What changed in Westminster’s staff relations • Manager-led comms • More consistent briefing • Much more F2F communication • Regular manager conferences continue • Localised staff reward • Online Westwords

50. Issues that remain • The coming cuts • Senior Management status • Feedback into action • Cynicism “all about money” • Misunderstood commissioning