Ceredigion CountyCouncilStrategic PartnerPhase 1

October 2014

PwC

Agenda

Background – challenge and success

Strategic Partners

Our Approach – Phase 1

Tools

Timeline

Beyond Phase 1

2October 2014

PwC

Background

The Challenge

• Ongoing and significant financial pressures – 4.5% revenue reduction for FY 15/16.

• Setting a 3 year programme of work whilst managing the in year budget cuts

• Achieving the Corporatisation Agenda

• £1m of budget cuts aligned to the Strategic Partner work for FY 15/16

Success would look like

• Services cost less to deliver, and recover more of their costs through income where appropriate;

• Service delivery is aligned to the Council’s strategic objectives;

• Customer experience is high quality and consistent across service departments, channels and geographicallocations;

• The core central functions of the Council (e.g. Finance, HR, Legal, IT) provide better and more consistent supportto the rest of the organisation, including through single shared functions where necessary;

• There is a stronger commercial capability and culture across the organisation, including a more consistent andprofessional approach to procurement and commissioning, and to income generation;

• The Council works efficiently in partnership with other service providers to maintain service provision;

• The Council has a target operating model that reflects the above, and which also considers alternative servicedelivery models.

3October 2014

PwC

Strategic Partners

We will work with you to support you in identifying and implementing opportunities to sustainably reduce the cost ofproviding essential services to the citizens of Ceredigion.

Ceredigion will own and direct the programme – we will support and challenge you, bring expertise andknowledge to you but to achieve long term sustainable change required for the corporatisation of functions, incomemanagement and third party spend;

Benefits will be realised – the focus will remain on benefits realisation at all times. You have an opportunity todeliver significant benefits from this programme and our aim is to help you realise them;

Open and transparent - we want to continue to build trust through open and honest communication. We will say itas we see it and aim to add real value through our engagement with you. We will tell you what we believe you need toknow to be successful.;

Building capability and capacity in the core team to sustain the journey – wherever possible we will train,mentor and coach council resources to do the work so you get better value from your investment in PwC resources. Skillstransfer is a key success criterion for our consultants;

Strong governance and alignment at the top of the organisation – a strong governance regime will underpinthe successful delivery of this programme, and we will feed into this appropriately; and

Be there when you need us – we will work efficiently and commit to being on-site whenever it is needed.

4October 2014

We already have a strong relationship and partnership approach with you and propose to continue to buildon this using the key principle of striving to meet your change and benefit ambitions in a value for money andsustainable way.

PwC

Our ApproachPhase 1 - Operating Model AssessmentOur solution addresses the needs of your new operating model from an end to end perspective

It is a tried and tested approach in 3 stages. We are accelerating the delivery for Ceredigion by running Stages 1 and 2 concurrently. Thisapproach will support the development of the medium term vision and provide the basis of the transformation programme going forward. Itwill also ensure that the short term benefits are identified to support the current budget situation.

Overall approach – Estimated time lapse 6-8weeks.

5October 2014

PwC

Our ApproachPhase 1 – Stage 1

Stage 1 –Baseline functional and service areas

At Stage 1 we will work with you to initiate Phase 1 of the engagement, then work with your internal teams to collect keystrategic and operational data in order to build up a baseline. We will also hold a strategic workshop with your corporatemanagement team (CMT) to establish vision and strategic direction.

The following shows the activities and outputs to be completed in this stage.

October 20146

Activities

A1.1 Project inception

A1.2 Run strategic workshop with corporate

management team to confirm vision and

strategic objectives

A1.3 Prepare for data collection

A1.4 Perform data collection

A1.5 Perform data analysis

Outputs

D1.1 Phase 1 delivery plan agreed

D1.2 Understanding of future strategic direction from

CMT

D1.3 Data collection plan

D1.4 Populated data model

D1.5 Analysis of findings

PwC

Our ApproachPhase1 – Stage 2

Stage 2 – Develop and prioritise opportunities

In this stage we will be holding opportunity workshops involving staff from across the organisation. This will be a keyopportunity for engaging staff on where the most productive opportunities might be to enable Ceredigion to be moreefficient and commercially orientated. Following the workshops, a long list of opportunities will be developed, and thenscored and prioritised. The Stage finishes with a further session with the Corporate Management Team to share initialfindings and confirm areas which will proceed to business case stage.

October 20147

Activities

A2.1 Assess current position against leading practice

and target performance.

A2.2 Run workshops for each of the priority

functions/ services using PwC’s Business

Analysis Toolkit (BAT)

A2.3 Develop long list of opportunities

A2.4 Score and prioritise opportunities

A2.5 Run workshop with Corporate Management

Team to confirm business case areas

Outputs

D2.1 Leading practice assessment

D2.2 Workshop write up with BAT findings

D2.3 Long list of opportunities

D2.4 Scored and prioritised opportunities

D2.5 Agreed list of opportunities, updated Operating

Model Assessment Tool

PwC

Our ApproachPhase 1 – Stage 3

Stage 3 - Develop options for operating differently and provide you with a business case that allowsyou to make decisions on the future direction of your organisation.

In Stage 3, based on the opportunities identified, we will prepare high level business cases in each of the areas where weagree there is a good prospect of making the required level of savings and income improvement. During this Stage wewill also provide you with a high level target operating model that reflects what you have told us about your futurestrategic and operational direction. The Stage will culminate in the production of the Diagnostic Review deliverablewhich will enable the Council to make an informed decision about proceeding to the Implementation Phase.

8

Activities

A3.1 Write up high level business cases

A3.2 Develop high level TOM

A3.3 Complete Diagnostic Review

A3.4 Sign off Diagnostic Review

A3.5 Agree Phase 2 approach

Outputs

D3.1 High level business cases

D3.2 High level TOM drafted and reviewed

D3.3 Diagnostic Review complete

D3.4 Signed off Diagnostic Review

D3.5 Work Packages signed off

October 2014

PwC

Tools

Standard Process Model

October 20149

Front line operations

Initial customercontact

Assess and decide Service deliveryManagement and

supervisionWorkforce planning

and schedulingAdministration

Enquiry handling Eligibility Service deliveryManagement and

supervisionWorkforce planning General administration

Processing requestsand applications

Assessment Workforce schedulingRecording and

data entry

Managing appointments Approval of serviceBilling and receiving

payments

Close record

Strategic and support services

Procurement andcommissioning

Managing contracts ICT HRMarketing, PR and

communicationsLegal advisory

services

Procurement andCommissioning

Managing Contracts ICT HRMarketing, PR andcommunications

Legal advisory services

Strategy and policy Financial management Health and safety Stores and distributionFleet and plantmanagement

Payroll services

Research andconsultation

QA, performance Mgmt.and improvement

Stakeholdermanagement

Master Datamanagement

Management andsupervision

Workforce planning General administration

Business informationand reporting

Workforce scheduling

Property, estate andfacilities services

Strategic supportFinancial

managementHealth and safety

Stores anddistribution

Fleet and plantmanagement

Payroll services

Stakeholdermanagement

Master datamanagement

Management andsupervision

Workforce planningand scheduling

GeneralAdministration

Property, estate andfacilities services

PwC

Tools

Gap Analysis

October 201410

PwC

Timeline

11October 2014

Achieving the Case for Change by Christmas 2014

PwC

Beyond Phase 1

12October 2014

The focus of Phase 2 will be to implement each individual Work Package agreed at the end of Phase 1. Each WorkPackage is likely to be different in terms of level of benefit, timescale and activities required to realise the benefits.Phase 2 will ensure that the necessary design, build and implementation activities take place which will enable eachwork package to be delivered in a sustainable way, including a secure handover. Opportunities with 2015/16 benefitsare likely to proceed straight to implementation.

For each Work Package proceeding through Phase 2, the standard approach will be comprised of 3 stages