110809 observations of local govt improvement & challenges

Observations of local government improvement &

challenges

Dr Gordon Murray

Service allocation

The structure of English local government

1957: Interdependence

Treaty of RomeEqual treatmentNon-discriminationProportionalityTransparencyObjectivity

‘Central Purchasing’

1974: The Poulson Affair

Corruption in award of contractsCode of Conduct for councillors and

officers

1979: Thatcherism

Commissioning councilTQMPerformance managementCost reductionMake/BuyCompulsory Competitive TenderingPrivatisationPrivate Finance Initiative

1997: Modernisation & localism Reinvigorating democracy Best Value CPA – from ‘poor’ to ‘excellent’ Beacon Councils ‘The Third Sector ‘Voice’ and ‘Choice’

Byatt Review & National Procurement Strategy Policy through procurement Strategic Commissioning Localism ‘Total Place’/Community Budgets/Pooled budgets

2010: Austerity

28% cuts in local government grantFront loaded

Self regulationSector led improvement

The Local Government Group

Funding

Central gov’t grant Member council subscriptions

Fee earning services

LG Improvement & Development Local government’s own improvement agency formed in

1999‘Top sliced’ support

Peer reviewBeacon CouncilsAdvice, guidance and support

National grant funded programmesFee earning servicesKnowledge collection & sharingCommunities of PracticeA voice with central government

LGID procurement examples

National Procurement Strategy for local governmentProcurement Beacon CouncilsMember & Senior Manager guides to ProcurementMember & Senior Manager procurement trainingLeadership Academy trainingProcurement Fitness ChecksPassport 2 Procurement eLearningLocal Procurement Performance IndicatorsProductivity & Efficiency Exchange

What do you mean when you refer to procurement?

Purchasing, procurement & commissioning

What’s the difference?

Strategic needs assessment

Decide priorities and outcomes

Plan and design services

Optional appraisal

Sourcing

Delivery

Monitor and review

The commissioning

cycle

The commissioning cycle

Strategic needs assessment

Decide priorities and outcomes

Plan and design services

Optional appraisalSourcing

Delivery

Monitor and review

The commissioning

cycle

The commissioning and purchasing cycles, and procurement

Determine the need

Supplier selection

Contracting

Ordering

Expediting

Follow-up/evaluation

The purchasing

cycle

procurement

Procurement structural options

Centralised

The Market

Dept

Dept Dept

Dept

Procurement Unit

De-centralised

The Market

Dept Dept Dept Dept

Lead Buyer

The Market

Dept

Dept

Dept

Lead DeptProcurement

#2

Lead DeptProcurement

#1

Devolved

The Market

Dept Dept Dept Dept

Procurement Unit

Consortia

The Market

CouncilA

CouncilB

CouncilC

CouncilD

Public Buying Organisation

Clusters

The Market

CouncilD

CouncilF

CouncilH

CouncilM

Public Buying Organisation

CouncilA

CouncilB

CouncilC

CouncilE

CouncilI

CouncilJ

CouncilK

CouncilL

CouncilG

Cluster ACluster B

Cluster C

Shared service

The Market

CouncilA

CouncilB

CouncilC

Procurement Unit

Anticipated savings

Shared services25%

Community budgets15%

Getting to collaboration

Collaboration strategy

Conversation (networking)

Coordination

Cooperation

Collaboration

(Derived from Huxham, 1996)

10 Lessons1. Political organisations are not the same as private sector

2. Learn to walk before you run

3. Political leadership critical

4. Focus on outcomes

5. Objectives differ

6. Optimum organisational development position differs

7. Invest in skills development

8. KPIs should be tailored to reflect outcomes and change management

9. Planned change doesn’t just happen but needs to be led and supported

10. Unplanned change happens and we need to increase environmental scanning and risk assessment skills

Making a difference is not easy:

Persever

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