London Library Change Programme

1. London Library Change Programme David Ruse LLCP Board member and Director of Libraries and Culture for Westminster City Council North West libraries conference 28 June 2010

2. On the edge of change

3. London Library Change Programme: overview • Began in 2007 with recognition of value for money issues, followed by a feasibility study • Is part of the London Cultural Improvement Programme (www.londoncouncils.gov.uk/networks/lcip/programme) • Funded by Capital Ambition (the London RIEP) • Aims to bring all 33 services up to the levels of the best • Aims to reduce overheads and improve services through shared services and improved processes • Aims for a systematic approach to having the right staff and skills in place to engage better with communities • Aims to make a substantial change in the structure of London Libraries

4. London’s library services: need for change • London’s libraries cost over 40% higher per head than UK average • Best practice not in place across London • Plans in place to re-design, work collaboratively, share back office arrangements – but not yet systematic • Some authorities have invested in technology that makes joint working harder • Large variations in deployment and costs of staff • Library service unusual as more open to global and web-based competition and other forms of governance 4

5. Where are we now? Public libraries in London cost £203 million pa Huge variation in cost/outputs No correlation between cost/quality Over half the cost is staffing But staff productivity varies hugely (London average transactions per fte is 11,400, but range from 7,000 to 17,000 in inner London alone)

6. Where are we now? Management layers range between 2 and 9, with an average of 5 Half the boroughs have not got full EDI One third don’t adhere to NAG minimum standards One third don’t do any supplier selection And as for opening hours, stock quality…

7. London Library Change Programme: emerging vision The public library service will continue to meet the book, information and learning needs of the people and communities of London. Improved processes and technology and a revitalised workforce will be harnessed to provide resources which are tailored to the needs of Londoners and delivered in ways that best meet their needs, whether at the library, in partnership with other local services, delivered to the home or workplace, or made available digitally. While remaining locally accountable, London’s library services should be able to work more closely together, taking advantage of more efficient and effective governance and delivery models to deliver consistent high value services – that contribute to wider local outcomes - at significantly lower cost. 7

8. Overview of LLCP • Phase 1 - 2007/9 • Marketing, staffing and stock to be focus • Phase 2 - 2008/9 • Efficiency, common procurement and ILL • Phase 3 - 2010/11 • Best practice and new models of delivery

9. Good practice in individual services and pilots Online resources LLC Resource discovery Stock use analysis Improved logistics London Requests What’s radical and effective? Third party selection Buy, borrow or ILL? Reciprocal borrowing Stock management Stock purchasing Shared catalogues Shared reserves What’s justbusiness as usual?

10. What does good practice look like? • Workforce • Few tiers of staff; • Few management/policy vs customer-facing staff; • Strong skills in strategic commissioning, publicity, partnership working; • Sharing in areas like bibliographic services, mobile libraries, home visiting, casual staff; • Shared training and development; • Working in depth across consortia; • Enthused and effective staff following processes that maximise outcomes; • Considering shared management, back office, front office. Stock and requests • Scientific selection and analysis, good use of third parties; • Good breadth and depth of stock; • Full EDI and financial integration; • Consortium contract; • Below NAG minimum standards and BIC classification; • Standard cataloguing; • Buy or reciprocal borrow across several authorities, not ILL; • Browseable, comment-able catalogue which generates collective intelligence; • Shared logistics, management, delivery; • Beginning to share all of these.

11. Best Practice But is it clear what best practice is? Does everyone have the same view of the service? Which service are we talking about – the current one or the “modernised” one? Three thoughts:

12. Best Practice There are those that still believe that the world is flat!

13. Best practice - The benchmarks are incorrect.

14. Best Practice The perspective has been shaped by personal views of the World

15. Whispers and conversations We’re already doing that! They’re just playing at it! Happy to assist for a fee Tinkering at the edges That model doesn’t work Why do we need another programme It’s not a priority at the moment Our finance people are the problem I need help – but I’m not sure where

16. Overview of the early programme • Phase 1 • Marketing, staffing and stock to be focus • Phase 2 • Efficiency, common procurement and ILL • BUT • survey measures not robust enough • best practice not clearly articulated • Financial benefits not sufficient (£20m / 5 years)

17. The future Savings of nearly £20 million over 5 years! We must do these changes But overall it is too little, delivered too late Recognise that we need to look at regional and sub-regional scale change – the prize will be much larger Need to take account of changing marketplace – trusts, private sector, partnerships, shared services, and emergence of ‘commissioning’ structures, not to mention Community ownership.

18. Time for Transformation Libraries have always shared /collaborated It works for our customers We need to raise the game to new levels given the financial situation Many challenges to overcome But it’s a win-win if we pull it off! The LLCP Board is recommending a substantial change in structure of London’s libraries

19. Head of Service Back Office, specialists, procurement, etc. Front line At the moment library services look very similar throughout most of London… They all vary a bit in size and shape

20. As the workforce report shows, there are lots of different management structures, but they all have a head, specialist and back office staff and front line staff They all vary a bit in size and shape

21. As the workforce report shows, there are lots of different management structures, but they all have a head, specialist and back office staff and front line staff For simplicity, let’s represent each service like this model. This model is repeated 33 times throughout London

22. This model is repeated 33 times throughout London

23. A simple and swift approach to serious cost savings would be to get those boroughs most interested in working together to share ‘back office’ functions in a new pan-London body Over time more boroughs could join when they felt ready

24. Groups of boroughs could then make further savings by combining their front line services Over time more boroughs could join when they felt ready

25. Groups of boroughs could then make further savings by combining their front line services Some boroughs might want to send the delivery out to externalised trusts Individual borough control continues having a ‘commissioner’ rather than a head of service

26. Others may wish to consider commercial operators Some boroughs might want to send the delivery out to externalised trusts

27. London shared back office, optional frontline The benefits of this model are that no Borough is forced to change but those most keen to work together can do so quickly. Others may wish to consider commercial operators Others can always start working collectively later, bring benefits to themselves and added savings to those already working together.

28. Some libraries are already working together around joint procurement, saving cash and improving the offer for residents

29. Some libraries are already working together around joint procurement, saving cash and improving the offer for residents Another option would be for some Boroughs to decide to take this further and merge their services

30. Over time others could join them if they think the efficiencies justify participation Another option would be for some Boroughs to decide to take this further and merge their services

31. Over time others could join them if they think the efficiencies justify participation The benefits of this model are that no Borough is forced to change but those most keen to work together can do so quickly. Another option would be for some Boroughs to decide to take this further and merge their services London Shared Service

32. London Library Change Programme: the current plan Shared back office staff and processes Shared back and shared or contracted out front offices, retaining local accountability and branding

33. How might we decide what to take forward? Potential evaluation criteria • Issues related to projects themselves  • Savings • Improved customer services • Feasibility • Impact on overall programme • Take the programme forward strategically • Needs programme support (can’t easily be done by an individual authority) • Meets the requirements of a technical design authority (doesn’t create obstacles to future progress) Most has been done already – only a few ‘technical’ pilots needed

34. Timescale: Phases 1 - 3 Benchmarking and options appraisal July – Oct 09 13th November 2009 Library services seminar Local Authority action plans 1 Dec Members’ briefing Capital Ambition Efficiency Board, 12th January 2010: strategy for change and bid for set up and development January 2010: • Recruit project team • Test delivery models • Establish design authority • Agreement on delivery vehicle April 2010: • Project team in place • Set up and roll out best practice peer support • Develop technical architecture plan • Set up early adopter trials May – Oct 2010: • Opt-in to Wave 1 by Members • Business modelling for shared technical services

35. Who will deliver? Various models need to be tested, including: One Authority becomes accountable body London Councils becomes accountable body Appropriate currently constituted organisation takes on the responsibility Current partnership is developed to be constituted as the accountable body A new company/social enterprise is established, owned by the participating authorities A new independent not-for-profit company (‘Trust’) is established that could apply for charitable status

36. Who will deliver? Various models need to be tested, including: One Authority becomes accountable body London Councils becomes accountable body Appropriate currently constituted organisation takes on the responsibility Current partnership is developed to be constituted as the accountable body A new company/social enterprise is established, owned by the participating authorities A new independent not-for-profit company (‘Trust’) is established that could apply for charitable status

37. Who will take part? Only those who want to Need some idea who will become part of the First Wave, but Boroughs won’t have to sign up until there is complete clarity over costs, accountability, etc. Need to agree whether ‘pioneering’ Boroughs will be rewarded as others join

38. Aligning parallel work streams • Establish high level customer service operating model and design the architecture for the delivery including principles for working together • Engage all key stakeholders to ensure strategic buy-in, facilitating development of locally owned and driven development plans • Develop a common view of the best practice operating model and ensure consistency of processes through • Shared performance, targets and process design • Shared best practice • Adoption of the common operating model 39

39. Re-modelling the programme – World Class Services/peer engagement • Baselining and benchmarking with the International “best in class” • Create a vision of the “modernised” service • Develop a new performance structure within which the new service can be evaluated • Develop a consistent, quantifiable understanding of “best practice” • Stage the London libraries World series – lectures, case studies, demonstrations, workshops, learning sets & mentoring 40

40. Re-modelling the programme – London’s architecture for libraries • Creation of an architecture for London’s public services within which the core library offer can be delivered effectively, efficiently and economically and where the local offer can thrive • Recognition of the significance and value of local schemes within the bigger picture • Identification of common systems and solutions • Creation of a platform for multiple sharing • Development of governance and management models that will lead to an effective and efficient mixed economy approach • Macro or micro buy-in when ready 41

41. Set up tasks for Phase 3: • Strengthen programme Board • Recruit Programme Director –advert shortly package c. £80k (consultant, secondment or employee) • Establish best practice peer support programme - new survey just gone out • Form small group of advisers to consider design architecture with Board – not just IT, but people, processes, systems • Behind original timescale, due to change in personnel, local elections, and HR issues over who would employ programme Director, all now sorted….

42. An opportunity for the London Library Change Programme • New ways of working and innovation • Shared services • Use of technology • Strategic commissioning London Library Change Programme is building a platform for change

43. If 15 boroughs opt in, nearly half of London will have centralised back office services around requests and a unified approach to stock management and procurement This will enable customers to get books more quickly and drive costs down There will be single systems for renewals and requests Best practice in deployment of staff will improve productivity, value for money and front line services. This will also help councils to meet financial challenges during a period when library income is set to decline Key Message 1: outcomes

44. Key Message 2: the benefits of working collaboratively to improve services This programme will: • Raise the standard of all public library services to the level of the best • Create more effective, cost efficient processes that take full advantage of new technologies • Release staff from time consuming back office processes to allow more time for customer focussed activities and community engagement • Release the capacity for London’s library services to meet wider local priorities such as reducing worklessness • Allow London’s Libraries to reach their full potential

45. New South Wales has Commissioned Bookends Scenarios, a project exploring the possible futures for NSW public libraries in the year 2030 Key Message 3: it’s happening across the globe Auckland is currently amalgamating 7 public library authorities into one and amalgamating 57 libraries. It is establishing a single acquisitions process and a single technical services unit. It consulted LLCP about London’s transformation programme.

46. A USA based library commentator has recently published an article that: • Examines trends • Predicts that there will be a pressure on public libraries to go down the shared service route • Predicts an increase in e book readers and e subscriptions • Predicts use of text indices and digital resources • Predicts this will lead to • smaller book stacks • smaller shop front libraries • more home deliveries

47. Conclusion The vision is so clear up here You can’t make out the detail from here You can’t hear the chatter of the crowds Have we been high enough to date?