2006 Executive summary This is the Final Report of the Shared - PowerPoint PPT Presentation

2006

Executive summary  This is the Final Report of the “Shared Services Blueprint Project”, the key objective of which has been to ascertain whether there is a pima facie business case for shared services in the HR and Finance functions of the 43 Police Force/Police Authorities in England and Wales.  The project was undertaken by a “Think - Tank” team of HR and Finance leads from a selection of Force/Authorities assembled under the sponsorship of Bernard Hogan-Howe, Chair of the Corporate Services Sub-Group (CSSG) of the Police Efficiency Group (PEG) and Michael Grimwood of the Police Finance and IT Unit (PFITU) of the Home Office, and supported by Alsbridge Consulting Ltd.  During January and February 2006, this Think-Tank worked through a structured methodology which compared the team’s vision of a possible to -be scenario with its assessment of the as-is situation, and identified the potential “prize” of implementing the vision.  The view of the Think-Tank is that there is a clear prima facie business case for shared services in HR and Finance, in terms of cost savings, quality improvements, professionalisation of the two functions and increased focus by retained staff on high-business-impact activities.  This is based on a solution where a set of activities (representing about 25% of total effort by FTE in both Finance and HR in the first phase, but possibly rising to over 50% as the service matures) is migrated to shared services under a common “to - be” operating model in line with the Force/Authority Restructuring timetable and under a joint venture (JV) agreement with an external supplier.  The Think-Tank team is made up of experienced and knowledgeable staff the collective view of whom should carry significant weight. However, it is recognised this business case is largely intuitive at this stage - it is based on qualitative, rather than quantitative data due to severe issues around access to the latter.  This document establishes the parameters for future shared services, lays out a route map for implementation and urges further action. The first step will be to take the findings of this study to a lower level, testing and validating them in the process, in order that they can bear the weight of scrutiny by senior decision- makers in “pioneer” Force/Authorities looking to formulate a definitive “go/no - go” decision. 2

POLICE COMMERCIAL ORGANISATION AND SHARED SERVICES Lynda McMullan - Refined Outline Business Case Reviews NPCC - January 2018

FUTURE COMMERCIAL ORGANISATION AND SHARED SERVICES  Two Outline Business Cases (OBC) have been developed. Both explore options to introduce national oversight and capability to ‘lock in’ and drive further efficiency savings, as well as introduce additional resilience, inter-operability and comparative data in line with the Policing Vision 2025  The Future Commercial Model OBC aims to establish a Police Commercial Organisation to ensure that policing has the commercial expertise needed to deliver the targeted £100m of cashable procurement savings by 2021, and exploit the best commercial practices being adopted across the wider public sector  The Shared Services OBC explores options for improving shared services delivery, including the possibility of establishing a Centre of Excellence (CoE)  A large number of workshops and meetings have taken place across the country to consult about the proposals. Senior police officers, including the finance and procurement communities, and PCCs, OPCC / PAACTs representatives have been invited to these events, with over 200 people taking part. There was a broad consensus to move forward with the proposed options  Adoption of the OBCs is linked to future police funding 4

POLICE COMMERCIAL ORGANISATION (PCO) What is it?  Ambitious Police-led, reshaping of commercial and procurement functions, involving the establishment of a new entity - based on flexible, virtual working with a limited number of core staff co-located in a central unit. This mirrors best practice elsewhere in government and will provide national oversight whilst retaining the local and regional elements that are essential to policing. The PCO will include:  National co-ordination of commercial strategy, ways of working, systems, best practice and professional development  Adoption of a full category management approach (for example, Fleet, Weapons and Ammunition)  Strategic supplier management (for example, managing suppliers such as BT in a coordinated manner to capitalise on our collective buyer power)  Other wider commercial support (dispute resolution, revenue generation) Costs / benefits  An upfront investment of c. £4.9m, with steady state running costs of £4m p.a.  Benefits case is a mix of avoiding unplanned cost, locking-in and de-risking existing savings plan delivery, and reducing on-going recurring expenditure (not driven by headcount reduction)  Overall benefit: £280m NPV over 10 years resulting in ROI of 8:1 5

SHARED SERVICES CENTRE OF EXCELLENCE (SSCoE) What is it?  The SSCoE will be a central capability (which is likely to be part of the PCO entity) and will: provide access to specialist insight and skills; create common standards and processes to drive a consistent approach; enabling forces:  To establish / deliver shared services more successfully  Reduce cost variation  Accelerate convergence towards the vision of greater standardisation and inter-operability  Assess and develop a roadmap towards a more radical transformation of shared services Costs / benefits  Up-front investment of £1.3m  It will enable forces to establish / deliver shared services more successfully. It is anticipated to deliver an additional £11m - £37m of NPV over ten years compared to current plans for shared services, and a be first step towards a fully converged police shared services approach 6

NEXT STEPS  These two OBCs will be taken forward together in one Final Business Case (FBC), with the SSCoE delivered as a component of the PCO  There are still issues to be resolved (e.g. funding and employment approaches) but these will be addressed at the next FBC stage  The FBC will drafted by April 2019, with further socialisation and consultation talking place in May and June 2019, before being presented to NPCC for approval in July 2018 7