Sharing Services – Cutting Costs Presentation by Gary Porter 10 th March 2011

Sharing Services – Cutting Costs

Presentation by Gary Porter10th March 2011

Compass Point Business Services (East Coast) Limiteda company controlled by East Lindsey & South Holland District Councils

Government agenda

Need to save money


Our Company

Our story in figures: £30,000,000 saved over 10 years 214,000 residents served by Compass Point 299 staff transferred to the Company 97 councillor ‘shareholders’ 10 teams transformed 5 services delivered 2 council owners One company


Our Story… Getting it together

Three phases What we liked Getting help along the way

Making it work Why a company Our approach Making it real

How we can help


Three phases

Phase One – Do we like each other? Pathfinder & Shared Services Sector’s Report – Autumn 08

Phase Two - In Principle Feb 09: Tribal Employed Feb - Aug: 09 Staff & Members workshops in groups across the three councils Sep 09: Tribal report - three become two…

Phase Three - Commitment Oct 09: Reaffirming commitment - £4.65m, financial savings worthwhile Oct - Feb10: Setting up the project, legal guidance, recruiting team Feb - Jul 10: Project becomes company, becomes reality

Company operation 1st Aug 10 onwards: Implementation of the agreed business plan.


Setting it up

Investment £4.65m split between 2 authorities Payment for redundancy, ICT changes, legal advice

change team Benefits

£30m savings 63/37 split ‘c’ shareholder investor option in East Coast

company for new public sector partners


Getting help

Legal advice Company and Governance structure Shareholders and Management Agreement Teckal exemption compliance Trading options

Procurement advice Buying solutions quickly and effectively Contract management


Company set up

Why? It changes the culture in the council It’s a vehicle to develop an income stream for the council It’s not outsourcing - you still have flexibility and control

Established a joint venture private limited company: Compass Point Business Services (East Coast) Ltd = Teckal

compliant; and Compass Point Business Services to trade on open market.


Our Approach

Governance clear Project Team

Appointed individual specialists, not a firm Merged services project

Bite size bits:▪ What outcomes do we want?▪ Key decisions taken along the way – company formation April 10;

shadow board directors May 10; business plan Aug 10▪ Redesign approach for services – putting customers first, involving

staff▪ Setting up a company ▪ Stakeholder management


Our Approach

What are the benefits? It achieves real savings Knowledge transfer of lean redesign It is driving cultural change in our council services We have flexibility We could work for other bodies We could add in future owners – c class shareholders


Making it real

Board of Directors from both Councils Management Team – Stephen Bayliffe MD recruited from

private sector Redesign Teams – staff teams recruited from the services

working alongside redesign experts Major investment in ICT and lean processes Management Agreement & underpinning service level

agreements Balanced Scorecard – performance management


Lessons learned

Be upfront and honest with each other, politically and managerially

Recognise the importance of managing stakeholders – internally, externally

Good communications are essential – develop new two-way channels, listen and respond

Get involvement from staff, TUs and managers Resource the team with people who have done it before – it

won’t happen otherwise Commit money to it


How we can help

Shared services Lean business process redesign Individual services:

Benefits Customer Services Finance HR, including H&S ICT Payroll Procurement Revenues


Benefits

It will save the two councils £31m

Responsive services

Fast decision making

Documents

Sharing Services – Cutting Costs Presentation by Gary Porter 10 th March 2011