CAPITAL AMBITION PROGRAMME BOARD
Date of Meeting: 22 September 2009
Project/Subject:
REVISED WORKFORCE STRATEGY
Report by:
Peter Thomas – Developing Capability Lead
Email [email protected]
Strategic
Theme:
Agenda
item: 10
Developing Capability
Purpose:
In July 2008 the Capital Ambition Programme Board received and approved a three
year Regional Workforce Strategy, based on the priorities agreed in the Interim
Improvement and Efficiency Strategy 2008-2012. Since that time, there have been
significant changes in the economic situation facing the boroughs. In response,
Capital Ambition has reviewed its priorities to better support the boroughs in this
new environment.
It is therefore thought timely to revisit the strategy to ensure it is focused on helping
the boroughs tackle their medium to longer-term workforce and people management
challenges, meet demanding fiscal settlements and develop longer-term capability.
Financial implications 2009/10:
 The total additional funding requested 2009/11: £360,000.
 The total projected expenditure on the revised workforce strategy 2009/11:
£600,000.
 Indicative spend 2009/10 - £350,000; indicative 2010/11 - £250,000
Executive summary:
From 2011/12 an already tight financial situation is likely to get substantially tougher.
In these circumstances, it will be imperative for boroughs to find innovative ways to
deliver savings whilst maintaining excellent services and delivering their strategic
plans. In addition, shortages in specific occupations are likely to persist. The
magnitude of these challenges may mean that a variation around the current
‘workforce model’ is no longer a viable option.
Issues arise about whether the future directly employed workforce could be smaller,
better paid and possessing different skills sets to the current workforce. Could
shared services and social enterprises become the predominant models for
delivering services? What cultural change and managerial changes are required to
move to these models?
The exact nature and extent of the change required is, of course, not entirely
evident. This revised workforce strategy is an action planning document. Its
objective is to identify and encourage dialogue around the potential challenges in
order to generate actions for possible solutions. Going forward how will the
boroughs ensure they have the correct skills mix and not a surplus staff with
inappropriate skills?
The revised workforce strategy1 recommends a series of indicative work areas:
The following six indicative work areas are suggestions to start the process:
 managing reward through an economic downturn
 workforce planning - towards 2011/12 and beyond
 new ways of delivery - an option that cannot be ignored?
 capital intelligence - better information, better decisions?
 down sizing - managing employee morale, engagement and performance
 apprenticeships - meeting the London target
The strategy will be progressed in light of the projects on Integrating Public
Services, Total Place pilots and relevant links will be made to any work undertaken
by NHS London.
Outcome:
The aim of the revised workforce strategy is to identify and encourage dialogue
around the potential challenges in order to generate actions for possible
solutions, including working with exemplar boroughs to develop practical
frameworks and guidance.
Risk:
The projects will rely on the involvement and cooperation of the boroughs and for
some projects boroughs may need to commit a fair amount of staff resource. There
is a concern that as the financial situation tightens boroughs will become less willing
to commit staff resources to these development projects. This will be tackled by
keeping the level of commitment required to a minimum, while ensuring the projects
continue to be relevant.
Recommendation:
 The Programme Board reviews the paper. Please note this item will be
discussed at the next Programme Board meeting on the 24 November 2009.
Appendices:
 Appendix A: Proposed revised workforce strategy.
 Appendix B: The work areas/project outlines.
 Appendix C: A new employment model for local services?
1 Certain work areas which could be viewed as falling within the scope of a workforce strategy are
specifically excluded. For example, workforce productivity is covered by the LEC and the leadership agenda
will be subject to a separate paper to the Board in November.
2


Appendix D: The indicative funding required.
Appendix E: A working draft schematic boroughs operating environment and
possible responses.
Background papers: Capital Ambition Workforce Strategy, July 2008.
3
Item 10 Appendix A
PROPOSED REVISED WORKFORCE STRATEGY
Background
In July 2008 the Capital Ambition Programme Board received and approved a
three year Regional Workforce Strategy, based on the priorities agreed in the
Interim Improvement and Efficiency Strategy 2008-2012. Since that time, there
have been significant changes in the economic situation facing the boroughs. In
response, Capital Ambition has reviewed its priorities to better support the
boroughs in this new environment.
It is therefore thought timely to revisit the strategy to ensure it is focused on
helping the boroughs tackle their medium to longer-term workforce and people
management challenges, meet demanding fiscal settlements and develop longerterm capability.
Introduction
The following will come as no surprise:

…. figures published today show that town halls have been hit by a £4bn
deficit in income over the course of the last two years, currently equivalent to
losing out on almost £11m every day in this year compared to financial year
2007/082.

….net employment intentions in the public sector have plummeted ….
suggesting that anticipation of cuts in public spending after the elections is
already having a significant impact on behaviour. The jobs outlook looks
particularly depressing in local government and higher education3.
The London boroughs place a high reliance on their people to deliver services and achieve their objectives - with people typically accounting for around half of a
borough’s operating costs. This also means people represent both a significant
expenditure and a potential large cost saving.
From 2011/12 an already tight financial situation is likely to get substantially
tougher. In these circumstances, it will be imperative for boroughs to find
innovative ways to deliver savings whilst maintaining excellent services and
delivering their strategic plans. . In addition, shortages in specific occupations
are likely to persist. The magnitude of these challenges may mean that a
variation around the current ‘workforce model’ is no longer a viable option.
2 Implications of LGA Income Survey, LGA, August 2009.
3 KPMG CIPD, Quarterly survey report, Summer 2009, Labour Market Outlook
5
Item 10 Appendix A
Issues arise about whether the future directly employed workforce could be
smaller, better paid and possessing different skills sets to the current workforce.
Could shared services and social enterprises become the predominant models
for delivering services? What cultural change and managerial changes are
required to move to these models?
The exact nature and extent of the change required is, of course, not entirely
evident. This revised workforce strategy is an action planning document. Its
objective is to identify and encourage dialogue around the potential challenges in
order to generate actions for possible solutions. Going forward how will the
boroughs ensure they have the correct skills mix and not a surplus staff with
inappropriate skills?
It attempts to highlight how a workforce strategy must be developed in the
context of the service strategy and operating environment. It builds on work
currently underway – indicating this work needs strengthening by increased
resources; and adds some potentially new thinking.
Revised Workforce Strategy
The revised workforce strategy recommends a series of indicative work areas
that aim to help boroughs develop the necessary skills and actions to face these
challenges. The following six work areas are suggestions to start the process:






managing reward through an economic downturn
workforce planning - towards 2011/12 and beyond
new ways of delivery - an option that cannot be ignored?
capital intelligence - better information, better decisions?
down sizing - managing employee morale, engagement and performance
apprenticeships - meeting the London target
The total additional funding requested 2009/11: £360,000
The total projected expenditure on the revised workforce strategy 2009/11:
£600,000
Indicative spend 2009/10 - £350,000; indicative 2010/11- £250,000
The aim of the revised workforce strategy is - by working with exemplar boroughs
– to develop practical frameworks and guidance to help boroughs develop their
own solutions to these challenges. The strategy will be progressed in light of the
projects on Integrating Public Services, the Total Place pilots and relevant links
will be made to any work undertaken by NHS London.


The work areas/project outlines are shown as Appendix B
The indicative funding required is shown as Appendix C.
6
Item 10 Appendix A

A working draft schematic of the boroughs operating environment and
possible responses is shown as Appendix D.
For the Board’s Consideration
The Programme Board is asked to consider whether this is a work area in which
they wish to invest additional funds; and if so:




consider whether the level of funding requested is appropriate
to treat the strategy as a single piece of work to allow a measure of latitude
around the funding allocated to each of the work areas
allow scope to modify the projects within work areas as ideas develop through
the iterative process of discussions with the key stakeholders
agree a delivery timetable of September 2009 to March 2011
7
Item 10 Appendix B
INDICATIVE WORK AREAS/PROJECT OUTLINES
(1) MANAGING REWARD THROUGH AN ECONOMIC DOWNTURN
Pay accounts for approaching 50% of the London boroughs’ expenditure.
There is a growing employer consensus that the sector’s approach to reward
management needs to be updated. Much of the recent discussion has centred on
the utility of national pay bargaining and the size of the pay award. Although
important discussions, they are only part of the reward management process.
This debate is playing out against a backdrop of an aging workforce and an
economic downturn which will have a significant impact on public expenditure
and budgets. How will the boroughs simultaneously remove pay cost and
improve performance, whilst still remaining an attractive employer? Is the status
quo an option? Or is the current approach too inflexible to deliver the change
required, and is reform the only way to navigate through these pressures?
The research will build on the findings of the total reward project - total reward which found that pay is not always the major issue; with organisational purpose,
recognition, development opportunities and good communication playing an
important part in the reward proposition.
Summary Outline Proposal - Reward Management
The research will look at the reward management implications of these pressures
and how the boroughs could respond.
The research could look at:









Pay bill management: how effectively do the boroughs manage their pay
costs; are there potential savings which could be made?
How does the current reward proposition motivate people?
What elements do people value most and why?
How people value the various aspects of the reward proposition.
Evaluating the impact of any proposed changes. Are some low cost elements
disproportionally valued?
Does the same reward proposition apply to all staff, or is there a case to
‘segment the workforce’ and develop more flexible options?
Is the current local government reward proposition attractive to younger
people?
Does there need to be increased choice within the reward proposition?
Is the total value of the reward proposition - both financial and non financial marketed effectively?
9
Item 10 Appendix B
The objective is not to offer ‘off the shelf’ solutions but - by gaining an
understanding of the factors impacting on the boroughs - develop practical
frameworks and guidance to help the boroughs develop their own solutions.
There will be a need to link in with the Greater London Employers Forum and
other relevant stakeholders; pensions are not included as they are likely to be
subject to discussions elsewhere.
10
Item 10 Appendix B
(2) WORKFORCE PLANNING - TOWARDS 2011/12 AND BEYOND
Workforce planning can be summarised as a process for ensuring that the
workforce required to meet future service delivery needs is developed or
recruited at the right price. Its primary objective is to reduce ‘business strategy’
execution risks associated with workforce capacity, capability and flexibility. The
success of workforce planning is dependent on how well it is integrated with the
other planning processes.
The London boroughs - along with the rest of local government - will be facing
the twin challenges of delivering services in an ‘age of austerity' whilst
progressing the efficiency agenda. The potential size of the year-on-year cuts
could mean a completely different approach to delivering services is required,
and it is possible the size and shape of the workforce will be very different in the
medium to longer term.
All this change is playing out against a backdrop of an aging directly employed
workforce with Capital Ambition research4 showing that the average age of
borough employees is 44 years, with 34% aged 50 or older. In addition, despite
the current economic climate, a competitive labour market persists for certain
occupations.
Given these challenges and possible responses, what kind of workforce will the
London boroughs require in terms of both numbers and skills and how do they
plan to ensure they have the right workforce? How will the boroughs ensure they
have the correct skills mix and not a surplus of staff with inappropriate skills?
Summary Outline Proposal - Workforce Planning
Working with exemplar boroughs and building on work already underway the
objective will be to produce practical frameworks and guidance to help the
boroughs develop their own solutions. Additionally, the nature of work and
challenges, suggests there could be scope for increased collaborative working
between boroughs. Possible projects:

Capital Ambition research has found that boroughs face a number of
challenges in putting in place a robust workforce planning process; not least
persuading senior managers why it should be on their agenda. This project
will develop practical tools to help in this process, in particular around the
workforce issues generated by budget reductions. Initial work has started.

A project specifically focused on workforce demand and workforce supply
modelling - for a limited number of critical job roles - based on an agreed
forecasts. The expected outcome will be an understanding of the workforce
4 All figures exclude school based staff.
11
Item 10 Appendix B
gaps for these critical roles - over one, three and five years. This will allow
participating boroughs to begin their strategy development.

Towards the new borough. This project will look at whether the pressures on
boroughs are such that they will have to consider new delivery models,
resulting in a smaller workforce with different skill sets to those currently
employed. The aim will be to work with exemplar boroughs, the NHS and
other key partners.
These projects need to link to the Futures work and New Ways of Delivery.
12
Item 10 Appendix B
(3) NEW WAYS OF DELIVERY - AN OPTION THAT CANNOT BE IGNORED?
Partnership and collaborative working is increasingly on the agenda. Boroughs
are not only to starting to share staff resources but there is an also an embryonic
integration of resources between the boroughs and PCTs. Sharing is however
currently limited.
From 2011/12 an already tight financial situation is likely to get substantially
tougher. In these circumstances it will be imperative for boroughs to find
innovative ways to deliver savings whilst maintaining excellent services. In
addition, shortages in specific occupations are likely to persist and competition
between the boroughs - and other service sectors – could put upward pressure
on the salaries paid to these occupations. Sharing resources has the potential to
maximise the utilisation of scarce skills while simultaneously reducing the
competition for staff.
This possibly leads to the question; why is the service delivery model uniform?
Why does each borough deliver every service regardless of the size of the
service? Is the optimum size of an organisation delivering social care different to
that of planning?
Summary Outline Proposal – New Ways of Delivery
Guidance based on real experience and delivery is limited. Building on work
already underway the objective will be to develop practical frameworks and
guidance. The aim is to highlight both the pitfalls and benefits.
Sharing Professionals
The aim of this project is to develop practical guidance based on evidence
collected through a series of case studies, namely: shared/joint posts; sharing
through procurement; shared/joint teams; and sharing across sectors - local
government/NHS.
Social Enterprises
The aim of this project is to explore how the current examples of social enterprise
operate; consider the advantages/disadvantages of this delivery model; look at
whether the social enterprise model works for all services; can it be scaled up to
operate across the capital or sub region; what is the potential level of cost-saving
this model could generate; and what actions, if any, are needed to support the
transition of existing directly employed staff into social enterprises?
13
Item 10 Appendix B
Cross Sector Working - Local Government & NHS
Work with the NHS has been developed during the past year, in response to
Board input, and an initial joint workshop has been held and key issues identified
for action. These will be progressed in light of the Capital Ambition project on
Integrating Public Services and Total Place pilots. Early thinking on this work
area, to be firmed up in consultation with the relevant boroughs and NHS
London, is to supplement work done locally with a ‘virtual shared learning pool’.
This could allow access by all parts of the public service to help build a picture of
who currently provides what services, so that different options can be mapped
and new models of delivery developed.
The New Ways of Delivery work links in with Workforce Planning.
14
Item 10 Appendix B
(4) CAPITAL INTELLIGENCE - BETTER INFORMATION, BETTER
DECISIONS?
Two Audit Commission reports5 highlight that higher performing authorities make
better use of information. It appears therefore that there is a link between how
management information is used in the decision making process and the quality
of those decisions. All other things being equal - better information leads to better
decisions which in turn leads to better services. But turning this aspiration into
reality requires the ability to produce better management information than is
currently available.
Capital Ambition is currently working with the boroughs to:
 provide people management metrics on a regular and systematic basis: and
 develop a workforce data mart6
While these developments in themselves will not improve the quality of decision
making, it is thought that easier access to information will highlight its importance
and encourage managers to use it when making decisions on the workforce.
In the tightening financial situation a better understanding of potential efficiency
savings around the workforce is required, and it will become increasingly
important to ensure that workforce analytics becomes a part of the HR and line
managers’ competency set.
Summary Outline Proposal – Capital Intelligence
Building on the work currently underway the proposal is for Capital Ambition to
further help boroughs identify the information required to make decisions on the
workforce by:


better leverage of the technology available; and
improving boroughs’ capability to use the information for decision making
purposes
To achieve this it is proposed to further develop the work around the data mart
and workforce metrics by increasing the level of investment.
The overall objective is to:

Improve the quality of the workforce data collected and reported by moving
the emphasis away from descriptive reporting to providing analysis for
decisions.
5 Two Audit Commission reports highlight this observation. (1) In the know Using information to make better
decisions: a discussion paper, Audit Commission 2008 and (2) Is there something I should know? Making
the most of your information to improve services, Audit Commission 2009.
6 A data mart is a specialised version of a data warehouse focusing on a specific data area.
15
Item 10 Appendix B



Improve the analytic capability of the boroughs to use workforce information
for decision making purposes.
Better leverage of technology to produce reports more efficiency.
To gain an understanding on the organisational issues that impact on the use
of workforce information; its availability does not guarantee its use.
This project links with Workforce Planning and (to a lesser extent) shared
professionals.
16
Item 10 Appendix B
(5) DOWN SIZING - MANAGING EMPLOYEE MORALE, ENGAGEMENT &
PERFORMANCE
The ‘downsizing’ of boroughs’ workforces may become widespread. The
experience of living with the possibility of redundancy, and watching others leave,
may become part of the working experience of many borough employees.
The employees who remain become the organisation and they will ultimately be
responsible for driving forward its objectives and securing its success. As such,
restructuring the psychological contract and re-instating employee engagement,
organisational commitment and trust is imperative. Not only to the experience of
the people who remain but also the future success of the borough.
Evidence suggests that unless the process is carefully managed it can have an
adverse impact on morale, motivation, engagement and performance. Resulting
in, for example, increased ill-health and absenteeism, reduced commitment and
employee engagement and a decrease in productivity. Any organisational
change will only bear fruit if those who remain feel valued, involved, trusted and
empowered to do their best.
What strategies are required to manage the people who stay? And how can the
impact of losing people be managed most effectively to maximise efficient service
delivery?
Summary Outline Proposal - Down Sizing
Evidence suggests that active consideration needs to be given to the following.







The influence of leadership strength and style.
How do senior managers maintain or improve trust in their leadership?
Effective communication strategies - a feeling that the management and
organisation as a whole are aware of the problems that may arise due to
downsizing, for example, potential job re-design, increased workloads and
reallocation of teams.
Recognition that the lives of people who remain will be dramatically changed
as well as those of released employees.
Appreciation for changes in job roles/content.
Adequate planning for reallocation of tasks.
Overriding appreciation of the work of employees who remain, and that work
and associated pressures may well increase for these people.
The project will produce a web based resource to help mangers understand and
respond to the potential effects of redundancies on themselves and the people
who remain.
17
Item 10 Appendix B
(6) APRRENTICESHIPS – MEETING THE LONDON TARGET
London Councils Leaders’ Committee agreed a pan-London target to deliver an
additional 2,000 new apprenticeship starts by 2012, and this is being managed
through a local government sub-group of the London Apprenticeships Task
Force, via London Councils. Apprenticeships represent an opportunity to
develop the skills councils need while helping to meet LAA targets relating to
youth employment and training and general skills levels in the community. The
target relates to apprentices directly employed in the delivery of council services,
and includes those working for contractors. This project will aim to support
boroughs in meeting their targets by providing advice, information and a range of
options for delivery within the context of the tight financial situation.
Summary Outline Proposal – Apprenticeships
A draft PID has been developed with the following outcomes expected:

By 2012, to have at least 2000 new apprentices started in direct employment
by councils or their contractors, where this would not otherwise have been the
case

Better qualified staff

Improved life chances through enhanced employability of young and
disadvantaged people
The detailed work plan is based on the Draft London Borough Apprenticeship
Plan which was agreed by the Task Force in July 2009. The main aims and
deliverables are shown below:
Aims


To meet the target of 2,000 apprenticeship starts within London local
authorities by March 2012.
To accommodate the diversity of London local authorities and the different
communities they serve.
Delivery objectives





To monitor progress towards the target among London local authorities and
use this information to provide targeted support.
To help existing London local authority apprenticeship programmes to grow
and provide support to those starting up apprenticeship programmes.
To achieve the target within available staffing budgets.
To provide a high quality apprenticeship experience that leads to
achievement, retention and progression.
To promote equality and diversity in apprenticeship recruitment and to
welcome apprentices as a valued part of a diverse workforce that reflects the
local community.
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Item 10 Appendix B

To encourage boroughs to expand the range of apprenticeship opportunities
to meet the changing needs of the London boroughs’ workforce over the next
three years.
19
Item 10 Appendix C
DRAFT 2
A NEW EMPLOYMENT MODEL FOR LOCAL SERVICES?
DRAFT IDEAS FOR DISCUSSION (SEPTEMBER 2009)
Summary
There is now a credible proposition around that says the current operating model
of local government is unaffordable. TUPE means that the cost of labour cannot
easily be reduced through outsourcing. Efficiency measures – taken as better
procurement or better utilisation of technology to reduce head - count will
continue to produce marginal benefits. Shared services, based on aggregation
and the dilution of overheads is theoretically attractive but often requires upfront
investment that means pay back periods are unattractively long.
This paper explores whether or not incentives to transition directly managed
services to become freestanding social enterprises might enable other
productivity gains to be achieved where staff are persuaded to swap out the
illusory (?) security of council employment for a stake in a staff-run, profit sharing,
trading enterprise.
The paper explores the possibility of having a Capital Ambition competition for
the award of three large development grants for pioneer groups of councils to
explore options further.
Starting problems
1.
2.
3.
4.
A felt need and obligation to reduce net spending each year over the
next five years.
An assumption that TUPE will not be abolished and that this makes
initial outsourcing benefits less attractive (or leaves the benefits from
engineering productivity with the contracting third party).
‘Shared Services’ models often require catalytic leadership. Losers in
the form of LAs who no longer provide and potentially staff who
transfer into the new enterprise are too visible and winners from such
aggregation are not sufficiently visible.
Councils specialising and then trading with each other (i.e. taking in
each others’ washing) might offer marginal savings but such
arrangements require trust and reciprocity which still feel in short
supply across party divides or between councils with no track record
of collaboration.
Could social enterprises be part of the answer?
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Item 10 Appendix C
DRAFT 2
Potentially social enterprises offer the following advantages:
a)
b)
c)
d)
e)
f)
g)
h)
The opportunity to involve all staff in ownership and to allow staff to
share risk and share in the upside of successful trading.
Closer attention to cost control because there is a sharper appreciation
of costs reducing trading surpluses.
Higher productivity because an esprit de corps can be developed
where commitment to success is shared widely.
This can knock through to lower rates of sickness absence and
productivity leakage.
Social enterprises can fudge the divide between subsidised and
unsubsidised services.
Social enterprises can expand and bid for other work on a contract
basis.
Social enterprises are a good brand that are seen as modern,
progressive and attractive by politicians of all parties.
Brand leaders like John Lewis have a glamorous image for being
successful, popular and fair.
The base proposition
The base proposition is that we should actively seek to remove the obstacles and
to promote the opportunity for certain currently directly managed services to be
repositioned as a social enterprise trading model on the explicit assumption that
this will produce of a cheaper contract price for commissioning local authorities
and higher levels of personal remuneration for staff who continue to deliver the
service, providing they are prepared to offer higher productivity levels and control
costs better.
As a worked example, if a service is currently requiring 24 staff working 36 hours
a week, with 9 days sickness absence, a turnover of 10% and high overheads,
then a repositioned service would employ 18 staff, working slightly longer hours,
with lower productivity loss, lower overheads and smarter working. Staff could
distribute three salaries between the 18 staff (with an average model pay
increase of 15%). The commissioning local authority would also expect lower
prices equivalent to say a 12% saving.
The base proposition implies commissioners will commit to a medium term
contract of no less than five years and to meeting (or otherwise agreeing with the
new company) transition costs.
These transition costs might be heavy if a lot of compensation had to be paid to
exit superfluous staff. A quantity of detail would need to be managed including
access to local government pensions and the extent to which any repositioned
company could or would want to buy back services from a local authority.
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Item 10 Appendix C
DRAFT 2
Such models are not entirely new, and the rash of outsourcing to created trusts
and friendly and provident societies in the 1990s offers lessons. However these
organisations continue to treat their staff as employees not as partners and only
a few of them have become successful trading organisations (of which the most
famous might be Greenwich Leisure).
Getting anyone interested
There are three scenarios we need to acknowledge
1.
Scenario 1 – the ‘wait until you are pushed’ scenario which leaves the
initiative with senior staff or politicians to commit to this new model (as
the charitable trusts above were managed in the last decade). The
Trade Union and staff interest being managed by a guarantee of jobs
and no adverse effect on terms and conditions.
Clearly this doesn’t work if productivity gains are to be aimed for.
Scenario 2 – the ‘jump before you are pushed’ scenario. This tries to
move the mindset to presenting opportunities as being the least worse
of those likely to prevail going forward.
2.
This only works if entrepreneurial or charismatic leaders step forward
and find followers.
3.
Scenario 3 – the ‘you can fly’ opportunity whereby a lot of the hard
work is taken away from individuals and they are spoon fed through
the early stages. This is much more of a situation akin to a ‘franchise
model’ where people are invited to see the business opportunities, but
given comfort by being given pre-designed formats and being helped
to easily find the answers to obvious questions. This opportunity is
“sold” to a wider group of staff, creating wider ownership from the
start.
Which services might be candidates for this repositioning?
Its easier to define which services might not be useful candidates as follows:
a)
b)
c)
Not those that are politically high profile.
Not those that are operationally high risk.
Not those where management direction is vital (for example
Safeguarding).
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Item 10 Appendix C
DRAFT 2
d)
Not those where there is already a ready range of alternative
providers (like Revenues and Benefits).
e)
Not those that still have a potential to earn profits for the local
authority in an upturn (for example Building Control).
f)
Not those where the work has to be done within the Council’s
value chain (like Communications and PR)
On a positive analysis, the best candidates might be:
g)
Those where aggregation ought to bring savings in overheads and
management costs.
h)
Those where an expansion into unsubsidised services is possible
(pest control and social care?).
i)
Those where the direction of travel might be towards less
subsidised services.
j)
Those that include a high proportion of professional staff who
would have a basic motivation to take control of their own
productivity and maximise their earnings.
A possible list of candidate services


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
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
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Training, Personnel and HR
IT
Environmental Health
OT services
Adoption Services
Lawyers
Audit
School Improvement
Pension Administration
Highway Engineers
Adult Social Care brokering
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Item 10 Appendix C
DRAFT 2
Moving forward
Here’s the draft proposal:
1.
2.
3.
We should launch a series of awareness workshops to sell a ‘pioneer
programme for service repositioning’. This might be aimed at middle
and Head of Service level managers in the candidate services set out
above.
We ought to hire a consultancy who will take overall ownership of
facilitating design work; nailing down basic legal, and financial
parameters, including TUPE and pension issues and ensuring lessons
are learned across our pioneer work.
We should award a big grant to up to three groups of councils who put
up a serious proposition where we have confidence they will see it
through to an end point. They should keep all the savings and meet
any costs additional to the grant. Explicitly we might encourage
bidders to design in a ‘jump incentive pool’ which is available to staff
at the point of transfer.
We’d have to insist that pioneer projects were of a sufficient size to be
a model from which others could learn – say likely to produce savings
of more than a quarter of a million pounds, recurring.
4.
We should develop a brand that enables us to market this as
London’s big idea (e.g. diverse models for a diverse city).
Derek Myers
Chair, Capital Ambition Programme Board
24
Item 10 Appendix D
WORKFORCE STRATEGY 2009 - 2011 - INDICATIVE FUNDING REQUIRED
Workforce Strategy – Additional Funding for Projects
Managing Reward Through An Economic Downturn
Workforce Planning – Towards 2011/12 And Beyond
New Ways Of Delivery – An Option That Cannot Be Ignored?
Capital Intelligence – Better Information, Better Decisions?
Down Sizing – Managing Employee Morale, Engagement And
Performance
Apprenticeships – Meeting the London Target
Sub Total: 1
Offsetting Savings
Interchange Project – Not proceeded
Support the achievement of the LAA targets – Not Proceeded
Total Saving
£
2009/11
£80,000
£50,000
£160,000
£40,000
£
2009/11
£50,000
£45,000
£425,000
£50,000
£15,000
£65,000
Total Additional Funding
£360,000
Workforce Strategy – Current Projects & Funding
Workforce Planning
Sharing Professionals
Capital Intelligence – Data Mart
Apprenticeships
Sub Total: 2
£45,000
£40,000
£70,000
£20,000
£175,000
25
£
2009/11
Item 10 Appendix D
Workforce Strategy - Proposed Projects & Funding
Managing Reward Through An Economic Downturn
£80,000
Workforce Planning - Towards 2011/12 And Beyond (1)
£95,000
(2)
New Ways Of Delivery - An Option That Cannot Be Ignored?
£200,000
Capital Intelligence - Better Information, Better Decisions? (3)
£110,000
Down Sizing - Managing Employee Morale, Engagement And
Performance
£50,000
Apprenticeships - Meeting the London Target
£65,000
Total Cost: Revised Workforce Strategy
£600,000
Notes:
(1) Now incorporates ‘workforce planning’ project.
(2) Now incorporates ‘sharing professional’ project.
(3) Now incorporates ‘capital intelligence - data mart’ project.
(4) The workforce strategy is a specific subset part of the developing capability theme. It therefore covers specific
aspects of the theme; it does not encapsulate all the work carried out under the theme, nor does cover all the work
undertaken around workforce matters. For example, the employment surveys which fall within the theme, but are
undertaken as part of the core work of the Employers Organisation, are not included.
(5) Other Ongoing Workforce Projects 2009/11
- Support to HR to develop outward-looking recruitment and development policy and
practice
- Support to boroughs on KLOE around workforce for CAA
(6) Completed Workforce Projects 2009/10
- Using a total reward model to develop a reward strategy
£10,000
£15,000
£25,000
£16,000
26
Item 10 Appendix D.1
WORKFORCE STRATEGY 2009 - 2011 - INDICATIVE ADDITIONAL FUNDING - OUTLINE DETAIL
1) Managing Reward Through An Economic Downturn
Research - pay bill management
Research - strategic reward management
Publications
Events
Total
£25,000
£45,000
£5,000
£5,000
2) Workforce Planning - Towards 2011/12 And Beyond
Research - engaging the organisation
Research - demand/supply modelling
Research - towards the new borough
Publications
Events
Total
£20,000
£20,000
£40,000
£7,500
£7,500
3) New Ways Of Delivery - An Option That Cannot Be Ignored?
Research - sharing professionals
Research - social enterprises
Project support - cross sector working - Local Government & NHS
Innovation hub development - cross sector working - LG & partners
Publications
Events
Total
£40,000
£50,000
£50,000
£40,000
£10,000
£10,000
£80,000
£95,000
27







£200,000
Item 10 Appendix D.1
4) Capital Intelligence - Better Information, Better Decisions?
Data Mart - phase 2
Data Mart - phase 3
Skills development
Publications
Events
Total
5) Down Sizing - Managing Employee Morale, Engagement And
Performance
Research - down sizing - managing employee morale, engagement and performance
Developing web based application
Event
Total
6) Apprenticeships - Meeting the London Target
Project support costs
Events
Total
£45,000
£40,000
£15,000
£5,000
£5,000
£110,000
£32,500
£15,000
£2,500
£50,000
£53,000
£12,000
£65,000
Total Cost: Revised Workforce Strategy
£600,000
28
Item 10 Appendix E
WORKING DRAFT SCHEMATIC OF BOROUGHS OPERATING ENVIRONMENT AND POSSIBLE RESPONSES
29