Co-operating for Change Meeting the Challenges in Cardiff
Overview • Recent developments • Critical Challenges • How can we shift from a negative to a positive response? • Local Government in 2020 • Towards a new organisational model • Organisational development • Next steps
“Decentralisation shouldn’t stop at County Hall, we need to work in close partnership with local communities and citizens, designing services around their needs.”
Critical Challenges • Finance - need to start planning immediately for severe budget reductions in future years. • Increased demand on services - Cardiff is set to be one of the fastest growing UK cities. • Performance management – need for a step change in our approach. • Economic recovery – ensuring we can provide jobs and opportunities for our communities. • Reorganisation of local government?
Challenges - Finance Financial Position - Budget Gap 0 2014/15 2015/16 2016/17 2017/18 -20,000,000 -40,000,000 -60,000,000 -80,000,000 -100,000,000 -120,000,000 £92m over 3 years -140,000,000 -160,000,000
Challenges - Finance Medium Term Modelling >50% fall in non-protected
Challenges - Finance Summary of Medium Term Financial Position • WG indicative decrease in AEF for 2015/16 is 1.56% • Settlement warning that indicative figures are subject to change SCENARIO 2015/16 2016/17 2017/18 Total £000 £000 £000 £000 Base position 31,333 34,011 26,930 92,274 Incrementally worse 38,702 38,113 30,823 107,638 Worse 44,996 43,073 35,466 123,535
Challenges – Increased demand on services Population projections 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2014/15 2015/16 2016/17 2017/18
Critical Challenges – Economic Recovery • ‘Middleweight’ cities set to lead economic growth • Capital City role - economic growth in Wales will be focussed on cities, Cardiff being the main focus • Need to create jobs to support population growth • “Permanent” public sector austerity means job growth will need to come from elsewhere • Cardiff competing with other UK cities to attract investment and develop enterprise
£2-3 billion of investment currently in the pipeline
Critical Challenges – Reorganisation of local government • Collaboration already occurring but.. • Mergers still a long way on the horizon
Critical Challenges – Performance Management • WLGA peer review underlines the need for sustained attention to be given to the performance of services • Changing expectations and demands from service users • Estyn monitoring report • WAO Corporate Assessment likely to reiterate concerns
Some examples of good practice but… • Too many services in the lower quartile of Welsh performance • Sickness absence and PPDR • Too much inconsistency and non-compliance • Need to develop our service improvement methodology • More benchmarking • More challenge
In short: • Severe financial pressures • More demands on services • Significant economic investment • And an urgent need to improve the performance of services
What’s the future? Organisational stagnation or reinvention? Declining municipal government or vibrant city government?
Cardiff Council in 2020 If we are to deliver our priorities, there needs to be a change in approach given the challenges. • A smaller council • Highly skilled, well motivated and fully engaged staff • Delivering a reduced range of high performing services at lower cost • Good asset management • Integrated financial and service planning • Innovative • Financially resilient • Working with citizens, councillors, staff and communities • Commissioning services via multiple delivery vehicles • Advocating for Cardiff • Facilitating partnerships that solve local problems Focussing on what matters to local people within a constrained financial context
Co-operative Councils
We need to: • Review the shape and scope of the organisation and the way in in which services are currently delivered • Identify delivery models that reflect the budgetary realities and support service continuity and improvement • Identify opportunities for further efficiency savings through better internal and external integration of service delivery • Strengthen performance management and workforce development arrangements
10 Key Principles 1. A Partnership Council – Partnership perspective to delivery focussed on outcomes 2. Designing services with citizens around their needs – Focussing what we do on customer needs – Improving customer contact 3. One Council – Single unified customer service – Common processes across the Council – Functional approach that prevents duplication and complexity 4. Working beyond our boundaries – Accelerating working with neighbouring authorities – Capital Cardiff region 5. Strong emphasis on preventative services and effective management of demand – Future pressures will be predominately from increases in demand, not just from funding arrangements.
10 Key Principles 6. A strong commercial focus – Non-statutory services to cover cost – New arrangements that allow the ability to trade. – Decisions are made on a real cost / benefit assessment 7. Exceptional performance management – Making sure we recognise what works well, and what doesn’t quickly – Making decisions on good evidence 8. An organisation that communicates well – Ensuring everyone knows what we are trying to achieve – Making sure the organisation and the city works towards the same outcomes 9. High levels of effective engagement – Making difficult decisions with those who are affected – Public involvement in shaping the design and delivery of services 10. Commitment to developing our workforce – Smaller, more skilled workforce – Skills responding to the changing organisation
Neighbourhood Working • Neighbourhood Partnerships • Multi-agency problem solving • Lead Elected Member • Co-produced solutions in response to local intelligence • Coordinating resources and delivery programmes • Neighbourhood Fund • Using commissioning to change cultures, align services and focus on local outcomes “…this model has enabled large organisations to focus on local needs – and demonstrates the ability for [them] to be responsive. It is crucial to retain local decision making and community involvement to create sustainability” Williams Report
Reshaping Services to Meet the Challenges • More consistent and evidence based approach to assessing need and service planning • Work with communities to identify the outcomes we need to achieve • Strategic commissioning approach
Service Reviews • Programme of service reviews across the Council • Ensuring services are fit for purpose and value for money • Ensuring services are capable of meeting current and future demands and expectations
Service Reviews The teams undertaking the service reviews will need to take into account a number of factors including: • Does the service meet the Council’s priorities and strategy including financial? • Are the current needs and demands of service users and customers being met? • What are the strengths, weaknesses, opportunities and threats of the current service? • How do the costs and performance levels compare with others? • What are the options for improving the service? The Council will identify and select services for review by assessing against following criteria: • Potential service user benefit of change • Potential to improve service quality and performance • Potential impact of change on the organisation • Potential for future savings, including progress against current savings target • Potential options available for alternative service provision
Reshaping Services to Meet the Challenges Strategic Commissioning Cycle At all stages, the commissioning cycle is underpinned by a governance structure that supports Considering the evidence it, ensuring momentum, setting base in order to understand expectations and continually, the needs of the local assessing impact community, and setting the commissioning priorities based on the availability of resources, and current Reviewing contracts and service levels to deliver the delivery through performance desired outcomes management activities to ensure that services are achieving required outcomes effectively Priorities for Cardiff Implementing selected service delivery models (e.g. Designing appropriate service through contracts, grants or delivery models based on a service redesign), and range of options that invite structuring them to enable input from delivery agents and effective performance challenge current delivery management against targets models Adapted from Leicestershire Together – Strategic Commissioning Handbook 2009
Alternative Delivery Models In ‐ House Services
Co-producing Commissioning
Organisational Development Programme • Strategic Commissioning and Delivery Model Migration – More consistent and evidence based approach to service delivery – Key to responding to financial challenges • Engagement & Improvement – Urgent need to improve performance management – Performance improvement – Linking engagement with improvement
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