Systems Thinking & Efficiency Briefings from the Pilots September 2005

1. Systems Thinking & EfficiencyBriefings from the PilotsSeptember 2005

2. About this session. • Why did Preston City Council get Involved. • Preston City Council Income Collection Intervention. • What we Discovered. • What Improvements did we make to the Service. • Conclusion. • Questions Welcome at the End.

3. Rent Collection and Debt Recovery • BVPI’s in bottom quartile. • July 2003 - Account Management Team formed. • Major improvements i.e. rent arrears reduced by £600k. • New methods of payment introduced. • High turnover over staff/ staff morale. • Recovery process too procedural.

4. Why Get Involved? • After restructure performance improved (including BVPIs) but grey areas/silos. • Tried EFQM, IIP, Performance Management Framework, Benchmarking, BVR etc. • Stock Transfer- “new culture” needed to deliver and meet customer expectations • Expected “issues” but not sure how it would develop ??????????

5. What we Discovered in 6 Weeks. • Too much Concentration on BVPIs and Targets – Sub Optimisation of Performance. • Followed Policy come what may. • Made the Customer Fit the System. • So Many People Involved in the System. • Waste (Value and Failure) – Monday Mornings. • ”Setting up Customers to Fail.” • Expertise in the Wrong Place. • I.T. is a Driving Force. We could prove it! Defacto Purpose – Meet KPIs for rent arrears. Revised Purpose – “Right amount, right time.”

6. Work Flow. Gas and Electricity Meter.

7. Thinking System Performance Logic Picture

8. Service Improvements • Looked at New and Existing Customers (right first time). • More Information to Applicants and New Sign Up Procedure. • Only do the Value Work & Work flows 100% clean • Expertise Developed and in the Right Place. • Improved Predictability of Income Flows • Introduced Measures • Void Turn Around Times Increased • Customer Focus • Beware!!!!

9. Redesignresults new customers

10. Barriers? Full Support of Interim Director/ Chief Executive. • Suspicion/Protectionism/Disinterest • Departmental Management Team/managers • Housing Benefits • IT - systems to other departments’ needs • Corporate barriers - Standing Orders • Targets / Silos • Resources/ Day job • 3D & 2D • Waiting to Transfer

11. Now • Success on New Customers • Established Working Method. • Average Time for Payments to Hit Accounts Reduced from 39 days to 20 Days. • Less New tenants Fall into Arrears. • We do not Sign up People Unless they want to be a Tenant. • Sign up Takes an Hour • Did not Complete Work on Existing Customers – but we have Reduced waste and know what needs to be done. • What’s next? • Community Gateway – New Structure • It’s not going Away!

12. Staff • They did the work plus the day job • They came up with the “best” service improvements • Staff Development • All expectations not met

13. Quotes • I was so confused about what I had to pay and I was told I would get full HB but now I have rent arrears. I’m not well and this is making me worse” • “Account balance is never right on a Monday. It’s normally right on a Tuesday” • “My sister talks to her mates (in the USA), over the internet, why can’t you guys talk to each other in the same set of buildings?” • Quote from Interim Director after Check Presentation “……………….” • “There is only one decision that you can make!” • “All this theory does not make sense until you actually do it.” • “Everyone is working hard for their department but not for the benefit of the customer.” • “We are doing all of that anyway, it’s just Business Process Mapping.”

14. Conclusion • It worked for new tenants • Customer focussed • Better use of staff skills • BVPIs • Gateway! • Another step taken to a new organisational culture