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APPENDIX
Best Value Lead Officers Team
ABERDEENSHIRE COUNCIL BEST VALUE REVIEW
PROCESS
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CONTENTS
Background
Page
5
Overview Of The Best Value Review Process
6
Triggers For A Review
7
Step 1: Project Start Up
10
Step 2: Gather Information About The Service
14
Step 3: Decide Whether There is Sufficient Justification for The
Review to Continue
16
Step 4: Stop The Project
16
Step 5: Decide Whether There Is Sufficient Justification To Continue
The Service
16
Step 6: Stop The Service
16
Step 7: Appraise Service Delivery
17
Step 8: Decide On Service Delivery Option
19
Step 9: Implement Alternative Service Delivery Option
20
Step 10: Develop Improvement Actions
20
Step 11: Implementing Improvements
21
Step 12: Monitoring And Review Of improvements
24
Reporting Of Outcomes
25
Appendix A: End Project Report (Template)
27
Appendix B: Role Of Trade Unions
28
Appendix C: Supporting Documents
31
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BACKGROUND
The Local Government in Scotland Act 2003 places on councils a duty to
make arrangements to secure continuous improvement in performance of the
authority’s functions, having regard to efficiency, effectiveness, economy and
equal opportunities.
The statutory guidance for Best Value issued under s2(1)(a) of the Act tells
local authorities what they are expected to demonstrate in fulfilment of the
statutory duties which make up the Best Value regime.
With regards continuous improvement councils must have in place an
approach to review that is rigorous and robust with no areas of work protected
from consideration for review. In addition review activities must achieve
quantifiable benefits for key stakeholders accepting that change may be
necessary.
The Best Value Review process described in this manual replaces the
process that has been in place within Aberdeenshire since 2001. It has been
developed to take account of the requirements of the Best Value Guidance
that was published in 2004.
The Best Value Review process is a key element of the Councils Continuous
Improvement Framework, however it is just one of a number of tools that are
available to the Council to drive forward continuous improvement. The review
process has been designed to be used for achieving large-scale strategic
change. For smaller scale improvement projects or for making improvements
to processes, other approaches such as Kaizen may be more appropriate.
One of the main criticisms of the previous Best Value Review methodology
was that it was too rigid. Adherence to the process was seen to be as
important as the outcomes achieved. The review methodology described in
this manual has been designed to be as flexible as possible. It is up to each
service to decide when the review process should be used and it is up to each
Project Team to adapt the process to meet their specific needs. The key
objective of any review undertaken must be to achieve quantifiable
improvements to service delivery.
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OVERVIEW OF THE BEST VALUE REVIEW PROCESS
Triggers For The
Review
1. Project Start
Up
2. Gather
Information About
Service
3. Does
Justification
For Project
Exists
No
4. Stop Project
YES
5. Does
Justification
For Service
Exist?
No
6. Stop Service
YES
7. Appraise
Service Delivery
8. Decide On
Service
Delivery
Option
Alternative Service
Delivery Option
Internal Service
Improvement
10. Develop
Improvement
Actions
11 Implement
Improvements
9. Implement
Alternative
Service Delivery
12 Monitoring and
Review
May 2007
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TRIGGERS FOR A REVIEW
1
Introduction
In 1998 the Council introduced a Best Value Review Programme with the
intention of reviewing all parts of all services over a five-year period. This
programme was developed to conform to the requirements of Best Value at
that time and did not focus on service needs or improvement priorities.
However with the introduction of the Local Government in Scotland Act 2003
the need to have in place a comprehensive Best Value Review Programme
was removed. Instead councils were expected to put in place a review activity
that was undertaken on a systematic basis and concentrated on identified
priorities, and areas where performance may be poor, which are of
importance to stakeholders, which are of significant concern to the authority or
otherwise offer clear opportunities for improvement in services.
Within this context there may be a number of different reasons for carrying out
a Best Value Review. Some of the potential triggers for a review are
described below.
2
AIM Self Assessment
2.1
In January 2005 the Council’s Management Team agreed to a strategy for
driving forward improvements based on a process of regular and
comprehensive self-assessments using a version of the European Foundation
For Quality Management (EFQM) Excellence Model specifically tailored for
the needs of Aberdeenshire. This tailored model is called AIM (Aberdeenshire
Improvement Model).
2.2
The EFQM defines self assessment as “A comprehensive systematic and
regular review by the organisation of its activities and results referenced
against the EFQM Excellence Model” The self-assessment process allows the
organisation to discern clearly its strengths and areas in which improvements
can be made and culminates in planned improvement actions that are then
monitored for progress.
2.3
The EFQM Excellence Model is a non-prescriptive framework based on nine
criteria. Five of these are "Enablers" and four are "Results." The "Enabler"
criteria cover what an organisation does. The "Result" criteria cover what an
organisation achieves. "Results" are caused by "Enablers" and "Enablers"
are improved using feedback from "Results".
2.4
The Model is based on the premise that: Excellent results with respect to
Performance, Customers, People and Society are achieved through
Leadership driving Policy and Strategy that is delivered through People,
Partnerships and Resources, and Processes.
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2.5
Each of the nine criteria shown in the Model has a high-level definition, and a
number of criterion parts which pose a number of questions, which should be
considered in the course of an assessment.
2.6
The evidence to be used during the self-assessment will have to come from a
number of sources and will need to include:-
2.7
2.8

Outcomes from stakeholder surveys and other feedback. This would
include the outcomes from the annual residents and employee attitude
surveys, feedback from the Community Planning Citizen’s panel and the
results of any other consultation exercises as well as analysis of
comments, compliments and complaints;

Outcomes from the corporate performance management system and
other service level indicators – these should be used to identify areas of
under-performance and the scope for improvement;

Details of all major Council processes and how well they are performing;

Detailed financial information to highlight the financial performance of
each service;

Reports covering progress with actions listed in service plans, corporate
and community plans and other relevant plans;

Reports on asset utilisation/asset management plans;

Various statistics (i.e. staff numbers, turnover rates etc).
When considering evidence for the “Enablers” you have to identify the
objectives and direction for each criterion part, along with the definition and
development of the most effective processes to achieve them. In considering
the approach adopted you have to look at:
How sound the approach is (i.e. the extent to which the approach
addresses the relevant aspects of the criterion part concerned, has a clear
rationale, is focused on the needs of relevant stakeholders and the results
that are being sought, with well defined and developed processes for
achieving these;

How integrated it is (i.e. the extent to which the approach described
supports policy and strategy and is linked to other approaches, where
appropriate), and

How well it is deployed (this represents the translation into practice of
what is defined in the approach).
For the “Results” criterion good results should show:8
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


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positive trends over time (3 – 5 years minimum)
targets being achieved or exceeded and
close comparisons with industry averages or acknowledged “best in class”
organisations.
2.9
Each service should carry out a programme of self-assessment each year.
The self-assessment process will identify areas for improvement. These
improvements can either be addressed directly by the service using a range
of improvement approaches including Kaizen, or can in turn act as a trigger
for a larger scale improvement project using the Best Value Review Process
described in this manual.
2.10
Some services such as Social Work and Education and Recreation are
subject to external inspection frameworks. The Social Work Performance
Inspection Model (PIM) and the Inspection of Education Authorities v2
(QMIE2) frameworks are both based on the EFQM Excellence One Model.
Within the Recreation service, Community Learning and Development is
inspected by an EFQM Excellence One based framework – “How Good Is Our
Community Learning and Development?” (HGIOCLD). In addition Sports
Development use an external inspection framework called QUEST, which is
based on the EFQM, model and approved by the Scottish Sports Council.
2.11
Management Team has agreed that those services that are subject to
external inspections should also carry out self-assessments using their
inspection frameworks on an annual basis.
3
Other Triggers
3.1
In addition to the annual self-assessment process there can be many other
triggers for any Best Value Review. Some of these triggers are listed below:
(note this is not an exhaustive list, there may be many other types of triggers
not mentioned below)External to the Council





Government initiatives and strategies such as the e-government strategy,
waste management strategy, Joint Future, Community Planning, Asset
Management strategy, etc;
External inspections such as HMI for Education and external inspection of
Housing and Social Work Services;
External Audits;
Changes in technology and software;
Changing stakeholder needs as identified by stakeholder surveys.
Internal

Budget constraints;
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












3.2
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Service restructuring;
Recruitment difficulties;
Accommodation problems;
Outcomes from internal audits;
Political policies and priorities;
Requests from Committees;
Recommendations made by the Scrutiny and Audit Committee;
Service Planning process;
New policy initiatives;
Outcomes from other improvement projects etc;
Reviews of performance;
Outcomes from employee attitude surveys;
Results of EDRS interviews, etc.
Whatever the trigger for a Review it is very important that the reasons are
carefully documented. This will then provide an audit trail for the review
process and will also form part of the justification for the review.
STEP 1 PROJECT START-UP
The key stages in getting a Best Value Review underway are described
below. It should be noted that the Council has agreed that large projects such
as Best Value Reviews should follow an agreed project management
methodology that mirrors the requirements of Prince 2. The agreed project
management methodology is flexible enough to be tailored to suit the needs
of any type of project.
Aberdeenshire Council is committed to involving the trade unions fully in the
review process. The key areas were trade unions should be involved are
described under the appropriate parts of the review process. A summary of
the role of the trade unions in the review process is attached as Appendix B
to this document.
1
Pre-Review Consultation
1.1
Best Value Reviews can be quite wide reaching in scope and the outcomes of
any review could have a significant effect on the way in which a service is
delivered. Therefore once a service has agreed the need for a review the
service management team must inform and consult all appropriate parties
likely to be affected by the review. This includes recognised trade unions
having members in the areas under review and Elected Members.
1.2
Consultation prior to the start of the review provides the opportunity for others
to contribute their early views as to the aims and objectives of the review and
to avoid duplication and clashes with other initiatives. It also gives the Trade
Unions the opportunity to consider the potential impact of a review on the
terms and conditions of employment of their members and to advise senior
managers accordingly.
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1.3
The service management team may wish to instruct their Best Value Lead
Officer to carry out this consultation on their behalf and to report back the
results. In progressing the review the management team should take account
of all views obtained in this consultation.
2
Project Board
2.1
The first stage in progressing a Best Value Review is to appoint a Project
Board. This should consist of between 3 – 6 people and should reflect the
interests of all parties who will be involved. The main appointments that
should be made are:Project Executive – this person will be ultimately responsible for the review
and will ensure that the review is focused throughout its life cycle on achieving
its key objectives. The Project Executive will be the key decision maker on the
Project Board, taking account of input from other Board members.
Senior User – this person will represent the needs of those who will use the
reviewed service.
Senior Supplier. This person will represent the interests of those designing,
procuring, implementing, operating and maintaining systems to be developed
by the project.
Trade Union Representative who will represent the trade union viewpoint on
the Project Board and will contribute practical advice on employee issues
such as consultation mechanisms etc. This union representative will only
represent the interests of his/her members. When a number of unions
represent a service it is possible that more than one trade union nomination
will be required on the Project Board. Involvement of trade unions on the
Project Board is not part of the consultation process and does not mean that
trade unions have given formal endorsement to the outcomes of any review.
Note the trade unions may not always be able to accept invitations to
participate in reviews as Project Board members. In circumstances were there
is no formal trade union nominee on the Project Board the Project Executive
must ensure that effective arrangements are put in place to keep the unions
informed of progress and to obtain their views on project outcomes. Again this
is outwith the formal consultation process.
Project Manager. This person will have authority to run the project on a dayto-day basis.
2.2
The Project Board will be responsible to senior management for the
successful completion of the project. Depending on the scale and corporate
scope of the project the Project Board will answer to either Service
Management Teams or the Councils Senior Management Team.
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2.3
The Project Board will be responsible for the overall direction and
management of the project. It will approve all major plans and will authorise
any major deviation from the agreed plan. The Project Board will provide
overall guidance and direction to the project ensuring that it remains on target.
On completion of a project the Project Board will review outcomes and will
give guidance on the next steps. The Project Board is also responsible for
communication with the rest of the Council and for ensuring effective
consultation with the trade unions.
3
The Project Team
3.1
The Project Board will appoint the Project Manager and will confirm the
appointment of the remaining Project Team members. This team will carry out
the day-to-day work of the project to achieve its objectives under the direction
of the Project Board. Members of the team should be drawn from all major
parts and levels of the service being reviewed. The aim is to provide balance
and to avoid bias.
4
Project Mandate
4.1
Following the decision to review a service a mandate for the project should be
issued by the management team to the Project Board. The project mandate
defines in high-level terms the reason for the project and what product is
required.
4.2
The mandate should cover the following:











Authority and responsibility
Background information;
Review objectives including commitment to benchmarking
Scope
Constraints
Interfaces with other projects
Quality expectations
Reasons for the review
Reference to any associated documents or products
Indication of who the project Executive and Project Manager might be
The customer(s), user(s) and any other known interested parties
Review tolerances
This mandate can be anything from a verbal request to a detailed project
brief.
5
Project Brief
5.1
Before doing any work the Project Board needs to satisfy it self that the
project is worth doing. Thus a Project Brief has to be developed setting out in
high level terms what needs to be done, why, the potential benefits to be
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achieved, who will need to be involved in the process and how and when it
will be done. The Project Brief is a key document for the project.
5.2
The Project Brief consists of



Background
Project definition, explaining what the project needs to achieve i.e.
objectives, scope, lists of deliverables, details of any exclusions or
constraints, etc;
Information setting out how the project supports the business strategy,
plans or programmes;
Reasons why the project is needed.
5.3
The Project Brief acts as the Terms of Reference for the Project Team.
6
Approach
6.1
When setting up the Project Team the approach to the review has to be
decided upon. This defines how the review is to be carried out. Issues that
need to be considered include:




Will additional resources be required or can the review be carried out
within existing resources?
Is there enough expertise within the service to carry out the review?
If not do other services need to be involved in the review?
Will the project team operate on a full-time secondment from normal duties
or will members participate on a part time basis?
What improvement tools should be used as part of the review?
6.2
Resources need to be concentrated on doing the work of the review. This
demands team members with time, ability and motivation to do the work. For
this reason secondment (full or part time) should be considered rather than
merely attendance at a series of meetings. It will be up to the Project Board to
ultimately agree how the review should be carried out. They will be
responsible for ensuring that adequate cover is provided at the workplace to
allow Project Team members to carry out the review. This may require the
authorisation of overtime working or appointment of temporary staff to provide
the necessary cover. A review should not be commenced if resources are not
available to complete it with in reasonable time scales.
6.3
It is also essential that Project Team members be fully trained in the
requirements of the Best Value Review process prior to the commencement
of the review. It will be up to the Project Board to arrange all necessary
training.
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7
Planning The Review
7.1
Once the Project Brief and Review Approach has been agreed the Project
Manager should plan the course of the review. There are a range of project
management tools available for doing this including Microsoft Project. Before
planning the review key dates for completion of the review should be agreed
with the Project Board.
7.2
Planning the review is best achieved by breaking it up into distinct steps or
stages. A stage is defined by a specific output such as a report.
The work required to complete each stage should be estimated. This involves
estimating both the input of (people) time and the elapsed (calendar) time
over which the work will be carried out.
7.3
In planning the review the Project Manager must decide what work needs to
be carried out at each stage and who should do this. For complex reviews a
number of stages will sometimes run in parallel. The Project Manager must
also decide what controls to put in place to ensure that the review is carried
out to plan.
7.4
As part of the planning process a communications plan will need to be
developed to ensure that all relevant stakeholders are kept informed about
reasons for the review and progress with it.
STEP 2 GATHER INFORMATION ABOUT THE SERVICE
1
Although the Project Team will be given a clear brief for the review setting out
the scope of the review and what needs to be achieved the Project Team
should spend some time gathering more information about the service in
order to fully understand the problem and to establish that a valid reason for
the review exists and that the perceived benefits outweigh the costs of
carrying out the review.
2
Below is a list of the types of information that might need to be considered in
order to establish whether the review is justified or not:
Views of employees, either from attitude surveys or interviews.

Views of the trade unions either through the joint consultative committees or
through informal meetings with officials.

Customer views. As part of any Best Value review there is a need to
obtain the views of service users and other stakeholders on the quality of
current service provision and how they would like to see the service
improved.
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
You will also need to collect information on the quality of service delivery.
Some services have a quality management system. Procedures for
dealing with non-conformance may provide information. If there is no
formal QMS, procedures and processes should be documented and may
provide information. Job descriptions may also be relevant. This analysis
will provide an indication of the potential for service improvement and will
help inform the business case.

Elected Members will often have a view on how a service should be
improved. You should always seek members’ views. You may need to find
out views of all members or just some. You may wish talk directly with
them or send them a questionnaire.

Corporate, service, area and other plans may include relevant information
or commitments.

You will need to gather information about how well the service is
performing, this can be achieved by analysing the council’s own
performance indicators (PIs), Accounts Commission statutory PIs and
other relevant data.

You will need to identify the costs of the service and how efficiently it is
currently being delivered. This can be obtained from analysing budgets,
unit costs, income, statutory returns, etc. This will give an indication of the
potential savings from any improved process.

You should also obtain information on how well the service is performing in
relation to that provided by other councils and the private sector.
Information to be gathered may include the results of any voluntary market
testing, costs of work already carried out by external contractors,
comparative information obtained from other councils through a formal
benchmarking exercise or through analysis of statutory performance
indicators, etc. This information will provide an indication of how
competitive the service is.

For some services you will also need to consider the intangible benefits
resulting from the service being provided, for example does the service
help stimulate the local economy by bringing visitors into the area. These
may sometimes be difficult to quantify.

Finally you may need to consider evidence from other sources, i.e.:


actions from various improvement plans;
the results of external audits;
records of customer complaints and other customer feedback.
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3
Page: 16
In some circumstances there may also be a need to undertake a proof of
concept feasibility study to scope out the problem and to investigate potential
solutions in order to develop a detailed justification for the review.
STEP 3 DECIDE WHETHER THERE IS SUFFICIENT JUSTIFICATION FOR
THE REVIEW TO CONTINUE.
Step 2 should provide sufficient information to allow a decision to be taken on
whether the project is justified or not. It is the responsibility of the Project
Manager to present a report along with his/her recommendations, to the
Project Board for consideration. The Project Board will decide on what action
to take.
STEP 4 STOP PROJECT
If the Project Board agrees that there is no justification for the review
continuing it should be stopped immediately and Project Team members
returned to their normal duties. In order to ensure an audit trail exists for the
decision the Project Manager should produce an End of Project report
summarising the evidence collected and the reasons for stopping the review.
This will go to the Project Board for information. The Project Board should
inform senior management and relevant stakeholders of the decision to stop
the review.
STEP 5 DECIDE WHETHER THERE IS SUFFICIENT JUSTIFICATION TO
CONTINUE THE SERVICE
1
The information collected under Step 2 can also help to inform decisions on
whether a service should continue or not. If it is not a statutory requirement to
provide the service, service provision should only continue if there are
recognised benefits to the Council, stakeholders or the community as a whole.
2
If it is clear to the Project Manager that there is not a strong case for the
service to continue he/she should present a report to the Project Board setting
out the case for stopping it. The report should balance the benefits of stopping
the service against the risks of doing so. The Project Board will decide on the
evidence presented whether there is justification in stopping the service.
STEP 6 STOP SERVICE
1
If the Project Board feels that the recommendation to stop the service is valid
and meets the criteria for Best Value they should then seek approval to
consult on the proposed closure. This may come from senior managers or
from the relevant policy committee. If approval is given to consult on service
closure the Project Board will instruct the Project Manager to carry out the
consultation exercise.
2
As part of this exercise all relevant Council Members need to be consulted. In
addition service users and staff must be consulted on the proposals. The
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Personnel Section can advise on which recognised trade unions have
members working within the service under consideration and can also provide
advice regarding agreed staff consultation procedures. Corporate advice is
also available on the most appropriate method of consulting with service
users and other stakeholders.
3
Following on from the consultation process a report should be prepared which
presents all the evidence collected during the consultation process. This
report should be presented to the Project Board for consideration.
4
It will be the responsibility of the Project Board to take a report detailing the
outcomes of the consultation exercise to committee.
5
It should be made clear that, whilst proposals will be reviewed in the light of
consultation, decisions will be taken based on a judgment as to what is best
for Aberdeenshire. If agreement can be reached on the way forward with
trade unions and other stakeholders then the report to Committee will
incorporate their views. If not then the views of the trade unions and other
stakeholders will be submitted separately.
6
Following approval to stop the service steps must be taken to put the decision
into effect. The Project Manager will usually be responsible for doing this.
Any service closure must be carefully planned. In preparing and implementing
the plan Project Managers may need advice from professional areas such as
Personnel, Property, Legal, Finance and other appropriate services.
7
As part of the process the Project Manager will need to inform all stakeholders
as to how and when the service will be stopped. He/she will also need to
divert the service’s resources to other uses. These resources may include
employees, plant, equipment, software, information, property, land and the
finance for these.
STEP 7 APPRAISE SERVICE DELIVERY
1
Information gathered under Step 2 will give an indication of how competitive
the service is compared to other Councils and the private sector. The
information collected will also indicate the scope for improvement.
2
The Best Value Guidance states that services are expected to remain
competitive and to provide consistently good service quality. In considering
opportunities for improvement a fair and open approach should be taken in
evaluating alternative forms of service delivery from whatever the sector. Thus
before carrying out any in-house improvement exercise alternative forms of
service delivery should be considered.
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3
Option Appraisal
3.1
Introduction
Page: 18
Option Appraisal is a process that helps review teams identify the potential
benefits of different methods of service delivery and decide which option is
most likely to deliver the greatest benefit for the Council and service users.
Use of the Option Appraisal toolkit that has been developed by the Council
makes it easier for project teams to demonstrate that the choice of option is
not just based on personal preference but is the end result of a process that
has a degree of objectivity and has taken into account both financial and nonfinancial criteria.
3.2
The Option Appraisal Process
3.2.1 There are three main steps to the Option Appraisal Process.
Step 1 Identify Potential Service Delivery Options
There are many service delivery options to choose from and these are listed
in full in a supporting Council booklet entitled “Guide To Service Delivery
Options.” However in order to fully appreciate the differences and simplify the
decision process it is useful to consider the following 6 main categories.
These are:






Internally re-organise and improve
Agreements with other organisations
Competitive Tendering
Contract out/externalise
Substitution – transfer the service to another organisation as a going
concern e.g. MBO
Hybrid of the above.
Step 2 Initial Review Of Each Potential Option
For each potential option 3 questions need to be asked. These are:
What evidence indicates that this service delivery category:
a) is appropriate?
b) is not appropriate?
c) gives better value than other categories for Aberdeenshire?
Full and frank consideration of this evidence will produce a reduced range of
preferred categories and will point to particular service delivery options that
will be worthy of further research.
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Step 3 Use Of Decision Matrix
The final stage in the appraisal process involves the use of the decision matrix
to score the remaining options to identify the preferred option.
3.3
When considering each option you must look at the potential for service
improvement compared to the current in-house situation. You must also
consider whether a greater improvement could be achieved by internally
reorganising and improving the current service. The idea is to develop a clear
business case to support any recommendation to change suppliers. When
trying to estimate the savings from any externalisation you will have to offset
them against the costs of the tendering exercise and the likely fall in service
quality during the initial change over period. You must also consider the risks
to the business of the contractor failing and what your options are likely to be
in such circumstances.
3.4
It is advisable to open up the outcomes of the optional appraisal exercise to
external (to the service) scrutiny to make sure that the evidence is there to
support the outcome.
3.5
The outcomes of the Option Appraisal must be formally endorsed by the
Project Board before any further work is carried out on the review. Therefore
the Project Manager should submit a report to the Project Board
recommending the preferred option. The Project Board will then decide the
next actions to take.
3.6
It must be pointed out that this process has been written from the perspective
of reviewing and improving a service provided in-house. However the process
can just as easily be applied to a service of the Council currently provided by
an external contractor. In this case one of the options may be to consider
taking the work back in-house if this can be justified in terms of costs and
service improvements.
STEP 8 DECIDE ON SERVICE DELIVERY OPTION
1
The outcomes of the Option Appraisal process will either be to consider
alternative service delivery or to internally re-organise the service to achieve
improvement in performance. If the Project Board agrees there is a clear
business case to change suppliers the following action must be taken.
2
Approval for the preferred option must be sought from the service
management team, Elected Members and appropriate Area and policy
committees. The Project Manager will prepare the necessary reports to do
this. These reports will be endorsed by the Project Board.
3
Before any changes are implemented the service must undertake formal
consultation with employees and the recognised trade unions, which
represents that service area. The Personnel Section can advise on the
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procedure to be followed. Outcomes may need to be reported back to
committee.
4
The outcome of this process will be a clear policy decision from the
appropriate committee to either approve the alternative service delivery
option, or reject in favour of internal service reorganisation.
STEP 9 IMPLEMENTING ALTERNATIVE SERVICE DELIVERY OPTION
1
If there is a Committee decision in favour of the alternative service delivery
option a Stage Plan must be drawn up for implementing the option. The
Project Board must approve the plan. This stage will usually involve
competitive tendering.
2
It is not possible in this document to cover all the complexities of a competitive
tendering exercise. However key issues that need to be addressed include:






Development of the service specification and contract documentation
Development of a tender evaluation methodology
Advertising of the service
Short listing suitable contractors
Tender evaluation
Contractor appointment
Service hand-over
3
Advice on the tendering process should be sought from the Council’s
Procurement Manager. He will advise what actions need to be taken to
conform to EU procurement directives and Council procurement processes.
4
Advice on the application of TUPE should be sought from Personnel.
5
When developing the service specification and contract documentation
appropriate procedures for monitoring the quality and levels of service to be
delivered must be considered. Some of this monitoring will be the
responsibility of the service provider which must be agreed prior to signing
contracts. Other monitoring may be required of the client.
6
Decisions will need to be taken at an early stage whether there will be an inhouse bid for the work. If this is to be the case steps should be taken to
ensure that the in-house bid is treated exactly in the same way as that from
external suppliers to ensure complete transparency of the process.
STEP 10 DEVELOP IMPROVEMENT ACTIONS
1
If Step 7 does not provide a case for the implementation of an alternative
service delivery option another form of improvement activity must be carried
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out. The Project Manager must produce a Stage Plan for this process and
this must be formally approved by the Project Board.
2
A range of improvement activities could be undertaken. These include
improving:





3
In general the work may include:





4
Processes to make them leaner, more efficient and effective;
Procurement;
Asset and resource utilisation;
People utilisation through redesign and removal of anomalies in
organisational structure and grade;
Business results through cost reduction programmes, increased efficiency,
etc.
Working relationships through some form of joint working or partnership
with external suppliers, other public sector organisations, the voluntary
sector, etc.
researching those things which are critical to the success of a service including their methods and measurements;
critically examining the above to search for opportunities for improvement;
developing alternative methods and appraising their benefits;
implementing and maintaining improved methods;
identifying and implementing new business systems to support improved
methods of working.
The range of improvement tools that could be used in this process is
described in the Council’s Continuous Improvement Manual and in the
supporting manual “Benchmarking For Best Value in Aberdeenshire.”
STEP 11 IMPLEMENTING IMPROVEMENTS
1
Introduction
1.1
Following Step 10 the Project Team should have formed a clear view on how
to improve the service, either through introducing new methods of working,
new computer systems or other equipment, or partnership working and the
potential scope of these improvements. The Project Manager should
therefore produce a report for consideration by the Project Board
recommending what action to take to improve the service and what targets
are appropriate for measuring the success of these improvements.
1.2
If the findings and recommendations for change are accepted by the Project
Board they must be presented to the employees concerned and to the
appropriate recognised trade unions as part of the formal consultation
process. The Personnel Section can advise Project Teams on this procedure.
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1.3
The Project Board must also decide whether it is appropriate to consult other
stakeholders such as Elected Members, the users of the service and
suppliers. The aim is to obtain all relevant views on any decision to change
the methods of service delivery.
1.4
Following on from the consultation process a report should be prepared by the
Project Manager that presents all the evidence collected. This report should
be presented to Project Board for consideration. Before making any formal
recommendations it is advisable to inform the relevant Elected Members of
the findings.
1.5
It is up to the Project Board to decide what to do about the report. If they
agree that the recommendations meet the requirements for Best Value they
may choose to authorise implementation of the revised methods or seek
approval from the Senior Management Team or appropriate service
committee. If approved the Project Board must decide who should be
responsible for implementing the agreed actions.
1.6
Once authorisation to implement the agreed actions has been given a detailed
implementation plan should be drawn up to assist implementation. This plan
should set out the timescales for implementing each action, identify
responsibilities and set targets to be achieved.
2
Implementation Options
2.1
There are a number of ways in which the new method of working can be
implemented. Four alternative strategies are covered by in this section:-
the "big-bang" approach of ceasing all previous activity and replacing
with the new,
a phased implementation,
a pilot study of the new method or alternative option,
parallel running of old and new methods/options.
2.2
The chosen method/option may predetermine the implementation process.
For example if a contract is to be let following competition then a single
changeover date or "big-bang" is likely.
3
Prerequisites
3.1
It is important that all concerns relating to human and financial resources are
taken into account. This will include consultations with all stakeholders to
ensure that they are aware of the decision and its implications. The keys to
implementation are communications with stakeholders, planning the use of
resources, training in new activities and monitoring their effect.
3.2
People are central to any change and it is their fear of change that can upset
the best implementation plan. So whether the implementation is a change to
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strategy, service process, technology or organisation the change has to be
managed through the active involvement of its stakeholders.
4
Methods of Implementation
4.1
Big-bang
This type of arrangement is prevalent when the work has been awarded to
another provider and the previous supplier will no longer provide services.
This option usually includes provision for detailed arrangements to be
transferred over a short period of time. This may include agreement on how
the work will be monitored, input of support staff, interaction with other
services, transfer of information etc. Much of the detail can be put into
contract documents.
4.2
Phased Implementation
This is most suited to activities where there are many delivery units of a
similar make-up. It minimises disruption by keeping the scale of change to a
manageable level in order to deal with problems as they arise.
It is useful where similar problems are likely to occur in later phases. The
lessons learned in earlier phases can then minimise future problems and be
used as training opportunities for later phases of implementation of the new
option. Frequently the major changes are implemented in the last tranche as
the majority of potential problems will have been solved by this time.
Two forms of phasing are:
 a gradual increase in the number of delivery units,
 a gradual increase in the number of services delivered by the new
method.
4.3
Pilot
4.3.1 This is similar to the above but is initially limited to a single implementation of
the change in order to fully test and develop the future service delivery
option before wider implementation.
4.3.2 It helps to minimise the disruption caused by unexpected problems by
limiting them to a small initial application. It is also more suited to test what if
scenarios before full implementation.
4.3.3 It is necessary for clarity regarding the limits or boundaries of the pilot which
also needs to be largely independent from the other methods of delivery.
4.4
Parallel Running
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4.4.1 This is worth considering when different ways of working can co-exist. This
may be due to the way material is handled by the different approaches and
when the way to test them properly is to run them at the same time using the
same reference material to judge how well they deliver in relation to one
another.
4.4.2 This method is likely to be the most expensive due to the duplication of
resources required but it is safer and therefore often used for critical services
for which failure, no matter how small, cannot be afforded.
5
Monitoring Performance
1
As part of the Implementation Phase a system should be put in place to monitor
performance. Such a system may be based on:



Cost information;
Performance Indicators;
Levels of output;
Reductions in defects, complaints, etc.
2
Whatever system is used it must be designed to compare actual outcomes
with targets.
3
It is unlikely that the desired improvement will be achieved immediately after
implementation of the new systems/methods of working. Allowance must be
made for employees to learn the new systems and methods of working and
become familiar with what is expected of them. A decision needs to be made
on how long the new systems can be allowed to “bed-in” before monitoring of
performance can begin. A minimum period of six months is recommended.
4
At the end of the agreed period the Project Manager should present a report
to the Project Board setting out what service improvements have been
achieved.
5
The Project Board will then decide what further action to take. The options
are:


Continue to monitor;
Extend trial period and call for another report at end of period
Consider alternative service delivery.
STEP 12 MONITORING AND REVIEW OF IMPROVEMENTS
1
Following implementation of the alternative form of service delivery or new
methods of working the performance of the service should continue to be
monitored to ensure that improvements are sustained over a long period of
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time. Monthly or quarterly indicators should be produced measuring actual
performance against target.
2
On occasions, when changes made to the in-house service delivery have
clearly failed to achieve target improvements, and when the scope for further
changes is very limited, managers may have no further choice but to consider
alternative service delivery options. In such cases the review would start at
Step 8 rather than going through Steps 1 – 7 first.
3
Services should be reviewed on a regular basis as part of the self-assessment
process to ensure they are still meeting the needs of the stakeholders.
Change in needs as well as fall in service quality or performance can act as a
trigger for a new review.
4
Services carried out by external contractors will also need to be reviewed on a
regular basis to ensure that they still meet the needs of stakeholders. Any
contract should include a mechanism for formal review of service provision
and procedures for implementing amendments to the required service
provision. A complete review of the success of the contract should also be
carried out prior to retendering it at the end of the contract period.
REPORTING OF OUTCOMES
1
Introduction
Depending on the type of improvement project being undertaken and the
scale of the project a number of different reports may be required to be
produced at various intervals to keep management informed of progress, to
provide a measure of project control and to obtain approval to implement
identified improvement actions.
2
It is not possible to provide definitive advice on how and when to report during
a project, however the following guidance may help.
2.1
For larger scale projects managed using the Council’s approved project
management methodology a number of different types of reports may be
required. The Project Mandate itself may result from a report to the service or
Council Senior Management Team and/or relevant Committee.
2.2
During each stage of a project at intervals set by the Project Board the Project
Manager may be required to produce Highlight Reports setting out:


2.3
Achievements in the current period
Achievements expected in the next period
Actual or potential problems and suggestions concerning their resolution.
When a project is in danger of deviating outside its tolerance margins (i.e.
agreed limits on costs, timescales or quality set by the Project Board at the
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beginning of the project) the Project Manager must produce an Exception
Report for the Project Board. This report should describe the forecast
deviation, provide an analysis of both the exception and options for the way
forward and identify the recommended option.
2.4
At the end of each stage in the project the Project Manager should produce
for consideration by the Project Board an End Stage Report, which provides
an assessment of what was achieved during the stage. The Project Board can
compare the results in terms of products, costs and time against the approved
Stage Plan.
2.5
On completion of a project the Project Manager should produce for
consideration by the Project Board an End Project Report, which should
review how well the project has achieved its objectives as set out in the
Project Initiation Document. This report should concentrate on the
performance of the project management team and should include a review of
the business case looking at the benefits that were originally anticipated
against those actually achieved.
A sample layout for an End Project Report is attached as an Appendix A to
this guidance note.
2.6
At the end of a project a Lessons Learned Report should also be produced
to disseminate useful lessons learned during the project for the benefit of
other projects.
2.7
Where the outcomes of a project have significant impact on the service the
End Project Report may also go from the Project Board to the service senior
management team for noting. Outcomes from the project may also need to go
to the service policy committee.
2.8
To ensure that the relevant Policy Committee is kept informed of the
outcomes of all continuous improvement projects the End Project Report
should also be presented to the committee, again for noting.
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APPENDIX A
END PROJECT REPORT TO:PROJECT:-
1
DATE:-
Purpose Of Report
To report on how well the project has performed against the objectives
set out in the Project Initiation Document.
2
Background
Scope of project and summary of project objectives.
3
Achievements Against Project Objectives
3.1
Performance against planned target time and costs.
3.2
Final statistics on change issues received during the project and the
total impact of these approved changes on the Project Plan, Business
Case and final outcomes.
3.3
Statistics for all quality work carried out and an assessment as to
whether the quality of work done during the project meets the quality
expectations of the customer.
3.4
Summary of all outcomes compared to project objectives including
details of:How service delivery performance was challenged and outcomes of
any option appraisal carried out
Which stakeholders were consulted and why
What benchmarking or other form of external comparisons took place
How the review demonstrated the competitiveness of the proposed
service delivery option.
3.5
Summary of all benefits that can be assessed at this time.
4
Recommendations
Approve the outcomes of the project.
5
Conclusions
Assessment of the overall performance of the Project Team.
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APPENDIX B
THE ROLE OF THE TRADE UNIONS
1
Aberdeenshire Council recognises the importance of openness and
honesty in carrying out its functions and this is reflected in the Council’s
Aims. Further, the Council supports the principles of collective
bargaining, consultation and negotiation with representatives from the
recognised trade unions.
2
The Trade Unions And The Improvement Processes
Involving the trade unions fully in each of the following 5 areas should
ensure the continuation of good industrial relations and the success of
any improvement project.
1.
2.
3.
4.
5.
2.1
Agree the need for the review
Plan the review
Stop the service
Implementing improvements
Consider alternative service delivery
Agree the Need for the Review
Before any improvement project commences the service management
team must inform and consult all appropriate parties of the intention to
carry out a project. This includes the recognised trade unions who have
members in the areas under investigation. This then provides the
opportunity for others to contribute their early views and to avoid
duplication and clashes with other initiatives. In progressing the project
the management team takes account of all views obtained in this
consultation.
2.2
Plan the Review
2.2.1 For the larger reviews to be planned and managed using the agreed
project management methodologies there will be a need to set up a
Project Team and Project Board. A relevant trade union nominee must
be invited to join the Project Board. It is a matter for the appropriate
union to decide whether or not to accept this invitation.
2.2.2 It has to be accepted that the trade unions may not have the capacity
to accept every invitation. In circumstances were there is no formal
trade union nominee on the Project Board the Project Executive must
ensure that effective arrangements are put in place to keep the unions
informed of progress and to obtain their views on project outcomes.
Again this is outwith the formal consultation process.
2.2.3 The role of the trade union nominee on the Project Board is to
contribute practical judgements particularly regarding any employee
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issues such as consultation. Involvement of a union representative on
the Project Board is not part of the formal consultation process and
formal approval by the Project Board of any recommendations made by
the Project Team does not mean that these recommendations have
trade union endorsement. The more formal role of representation of
trade union members is not played until the later stage of formal
consultation. It is the responsibility of the Project Board to ensure
effective trade union consultation takes place.
2.2.4 The trade union nominee on the Project Board will represent the
interests of his/her members. Where the work group under review has
more than one trade union affiliation may be appropriate to invite more
than one trade union representative on to the Project Board.
2.2.5 When the Project Board has drafted the Project Brief (Terms of
Reference) they will then ensure that these are explained to the
employees working in the service area covered by the project.
2.2.6 Following this meeting with the Project Board, Trade Union officers or
representatives of any recognised trade unions having members within
this group of employees have the right to meet and to discuss the issue
with their members during normal office hours. Responses to these
consultations will be considered in finalising the Project Brief.
2.3
Stop the Service
2.3.1 One objective of a project may be to stop delivering the service. Before
any service can be stopped, service users and employees must be
consulted on the proposals. The Personnel Section can advise Project
Boards on which recognised trade unions have members working
within the service under consideration and can also advise on the
agreed staff consultation procedures. Corporate advice is also
available on the most appropriate method of consulting with service
users and other stakeholders.
2.3.2 Any decision to stop a service will be based on a judgement as to what
is best for Aberdeenshire Council. If agreement can be reached on the
way forward with trade unions and other stakeholders, then the report
to Committee will incorporate their views. If no agreement has been
reached, then the views of the trade unions and other stakeholders will
be submitted separately to the appropriate Committee.
2.4
Consider Alternative Service Delivery
If any change to any service provision is proposed, then these
proposals must be presented to the employees concerned and to the
appropriate recognised trade unions as part of the formal consultation
process. The Personnel Section can advise on this procedure.
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2.5
Page: 30
Implementing Improvements
Any proposals for change accepted by the Project Board must be
presented to the employees concerned and to the appropriate
recognised trade unions as part of the formal consultation process. The
Personnel Section can advise on this procedure.
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APPENDIX C
SUPPORTING DOCUMENTS
The following documents support the Best Value Review process
described in this manual and should be consulted when planning a
Best Value Review:The Aberdeenshire Continuous Improvement Manual – this describes
a range of tools and techniques that can be used as part of the review
process to help diagnose the problem and develop improvements.
A Guide To Service Delivery Options – this sets out a range of delivery
options that could be used to provide Aberdeenshire’s services and
describes how you should reach a decision on the “best” service
delivery option. It includes a decision matrix based on the EFQM
scoring system to help you reach a decision on the best service
delivery option.
Benchmarking For Best Value:- this document provides an
understanding of benchmarking as a means of achieving improved
performance and Best Value and describes the techniques which can
be used to establish and manage a successful benchmarking exercise.
Consulting & Involving Customers & Citizens:- this document provides
guidelines on when and how to consult and involve the public. It
explains how you could undertake statutory consultations, improve
communications with service users, assess needs and conduct
surveys. Available in printed form from the policy team in the Chief
Executive’s service.
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