Performance Improvement Programme

1. Monday, 03 November 2014 Performance Improvement Programme Presentation by Mark Gilks Chief Executive

2. A WELL PERFORMING COUNCIL AND A NEW ADMINISTRATION BRINGING A SIGNIFICANT CHANGE OF DIRECTION • Three stars improving well • Use of resources :3 • Three star ALMO • High tax but delivering to residents • Low reserves but in financial balance and well managed • New coalition administration in 2006 after 35 years in opposition • Desire to be a lower tax authority • Organisation “fit for purpose” – “smaller but stronger” • Poor financial settlement

3. HOUNSLOW’S FINANCIAL SETTLEMENT

4. WHY WE DECIDED ON A COUNCIL WIDE IMPROVEMENT PROGRAMME AND WHY DID WE PROCURE A PARTNER • 2007 – manifesto commitment - zero council tax delivered • Normal budget “star chamber” process – painful but possible • 2008 – 2010 – needed minimum £30m to keep to zero • Old budget process wouldn’t work – major service cuts inevitable • Needed to break out of individual service reviews and look across council • Put the challenge to the market – 40+ responses – 3 into dialogue • Total procurement period (March 07- July 07) • KPMG appointed – dialogue process helped shape the programme • Faster – 1 year instead of 2 • More ambitious – agreed a mutual target of £50m – what we thought possible • Contingent payment – based on a percentage of the benefit • Well referenced – similar programmes nationally

5. WHAT KIND OF PROJECT DID HOUNSLOW WANT? Understanding our cost De-layering management structures Shared Services to reduce head count Doing more with less Procurement Changes in legislation Audit and Review Inspection (Best Value /CPA) Long term cost savings Web enabled services Doing more with the same Migrating Back Office services to the Front Office Call Centre

6. A fast, clear programme demanding clear commitment at five points. A joint team with a staged handover to Hounslow staff. Sep 08 Sep 07 Dec 07 Mar 08 Jun 08 Jul 07 IDENTIFY OPPORTUNITIES EVALUATE OPTIONS CONFIRM SOLUTIONS IMPROVE Gate 1 What drives cost and what interventions may change cost ? Commit to analysis Gate 2 A business case for each intervention ? Commit to designing the processes and structures Gate 3 Gate 5 Implemented and sustainable savings Gate 4 A design for lower cost processes and structures ? Commit to implement First wave implemented Handover plans Commit to Wave 2 and take on programme LBOH KPMG KPMG KPMG

7. DELIVERING £53 MILLION WITHOUT REDUCING SERVICE TO RESIDENTS. NINE STEPS TO A SMALLER AND STRONGER COUNCIL Council has a clear, designed and managed establishment Council structures clear, documented and agreed 3 year benefit Surplus posts identified and managed out £23.9m New teams in place and operating New establishment tracked and under control Secured - £23.9m Secured - £23.9m Staff with common administrative skills are managed as a shared resource Shared admin support teams designed 3 year benefit Surplus posts identified and managed out £8.4m Pools fully implemented and matched with workload Utilisation and performance is managed and resources shared Secured - £8.4m Secured - £8.4m Secured - £8.4m Bills are paid, payments received and financial information provided efficiently and clearly Shared service team and new processes implemented 3 year benefit Surplus posts identified £3.2m Surplus roles managed out Service level agreements in place Stakeholders are satisfied that the service is well managed Secured - £3.2m

8. DELIVERING £53 MILLION WITHOUT REDUCING SERVICE TO RESIDENTS. NINE STEPS TO A SMALLER AND STRONGER COUNCIL 3 year benefit New contracts are in place for a range of goods and services Desktops and laptops are 20% cheaper First private sector leases up to 15% cheaper Better contracts for sourcing fostering. Children’s placements up to 15% cheaper £7.5m New strategic contract for adults home care Secured - £3m Newly resourced procurement organisation in place 3 year benefit 3 year benefit 3 year benefit Staff update personal details and get payslips on-line. Hire to retire is handled efficiently and well Shared service teams and new processes implemented £1.6m Surplus roles identified and managed out £1.6m Self service implemented Secured 2009 Service level agreements in place Stakeholders are satisfied that the service is well managed 3 year benefit Schools pay an appropriate price for council services Schools pay appropriate proportion of overheads £3.1m New improved processes for discretionary services in place New service level agreements in place Secured – £2.3m

9. DELIVERING £53 MILLION WITHOUT REDUCING SERVICE TO RESIDENTS. NINE STEPS TO A SMALLER AND STRONGER COUNCIL Adult care is managed at a lower cost Assessment and care management process improved 3 year benefit Surplus roles removed from ACM residential and day centres £4.8m In house home care reconfigured to refocus remaining in house resource on re-ablement Active tracking of telelogging using new tool Secured - £1m Staff work in open, flexible and standard accommodation in fewer buildings Where staff should best work and the building space required planned 3 year benefit £2m Civic Centre refurbishment and building closures planned Secured 2010 New meeting suite, training centre and civic refurbishment completed Council drives the effective use of web channels and has implemented the first wave of channel improvements and consolidations Bring current call centres together to share resource and work 3 year benefit Website re-launched with new content £2.1m On line referrals for schools and doctors First wave of surplus roles identified and removed New web payments and appointment booking Secured – 2009

10. WHAT WE LEARNT ABOUT MAKING THIS WORK • Clear focus on a cost saving target • High ambition and a compelling reason to deliver • Clear and present leadership – members and officers • Powerful client role essential • Scale and pace – do it as fast as you can • Rigour – hard baseline, hard numbers, change the budgets • Whole council – new savings cut across directorates • New evidence – look at cost drivers not just old budgets • Transparent and open – tell staff as much as you can • Rational improvements – sustainable changes not top slices

11. How KPMG approached the Hounslow PIP David Timbrell-Hill - Director Government Advisory

12. Questions?