Borough of Poole Business Transformation Programme
Borough of Poole Business Transformation Programme
Monthly Progress Update
Author: Chris Wright
Version: 1.0
Date: December 2009
Distribution List
Recipient / Action RequiredName
Business transformation board / Review & AcceptanceDocument Amendment History
Issue No / Date / Author / Changes /1.0 / 26th November 2009 / C Wright
Name / Responsibility / Phone / e-mail /
Chris Wright / Business Transformation
Programme Manager / 01202 633366 /
1 Introduction
1.1 Background
The purpose of this paper is to keep the Business Transformation Board and Senior Management Team up-to-date with the progress of the Business Transformation programme currently in place in the Authority. The board are asked to;
· support intervention actions recommended in each section
· review requests for changes in each section
· review risks to progress and support recommended mitigating actions.
The purpose of the Business Transformation Board is to;
· Review progress against the Transformation Programmes milestones .
· Own the programme communication plan.
· Set tolerance for individual projects within the programme.
Summary of progress
Since the identification of the Transformation programme and approval from Cabinet 6th March 2007, there have been a number of attempts to define what the authority mean by Business Transformation and therefore what constitutes the Transformation programme.
Business Transformation represents significant redesign of how the council conducts business internally and how it delivers services externally. Programme activity is targeted to deliver operational efficiencies and assist the authority in delivering Value for Money services.
As a result of this activity, the shape of the programme has altered from an initial list of projects, which represented a combination of service change and transformation activity within the authorities resources portfolio to a list of projects which will contribute to significant change, and contribute toward the authority becoming a more efficient and effective organisation and over time derive the cashable savings (currently conservatively estimated as a sustainable net saving opportunity of £2.8m to 2013/14) and service improvements (quality or resilience) which are the ultimate goals of the programme.
The number of projects within the programme framework will fluctuate over time as change and cost saving priorities manifest themselves. Currently seventeen projects have been identified, of these 17 projects:-
Green status (no major concerns) 8
Amber status (risks being managed) 1
Red status (issue requiring attention) 0
Awaiting Definition 8
Total 17
Summary of Programme Project Portfolio
Priority
/Tier 1
Project Management Methodology demands that project products at the highest level are mandatory and a great level of commitment is required to see this change through. / Tier 2Project Management Methodology demands a rigorous approach to change with formal project products being mandatory, depending on the content of the project there will be some flexibility in the production of products. /
Tier 3
This is the smallest grouping of project and there is more scope in whether it is appropriate to produce elements of the project product set, refer to Project Management Methodology Framework for guidance. /A
Business critical change delivering; service improvement /many corporate priorities / financial efficiencies.
(Compliance with legislative change or critical deadline) / Employee First / Strategic Review of Procurement / Efficient Use of Resources programme
/ Management Information Delivery / Corporate Programme & Project Management methodology
/ Performance Management
B
Change delivering; key corporate priority within agreed corporate strategy or business plans / Desktop Printer Replacement / Corporate Print & Design contract/ Energy Services contract
/ Corporate Agency Staffing contract
/ Corporate Accommodation Strategy / Financial Resources Structured & Review of Internal Market
/ Property Services Target Operating Model / Corporate Mobile Phone procurement
/ Corporate Construction Project Management
/ Facilities Management Procurement
/ E-procurement
C
Business critical service that would benefit from anenhancement or change.
D
Opportunity for service improvement.3
Borough of Poole Business Transformation Programme
1. Monthly progress against plan
Projects in Progress
Status / Project NameSenior Responsible owner
Project Manager
Priority & Tier / Approved or
Requested
Budget £,000
Expected Benefit £,000 / Plan / Status, incorporating known milestones /
Previous Periods / Now / Start / End / Revised /
A / A / A / A / Employee First
Peter Pawlowski
Tony Sweeting
Priority A, Tier 1 / £1027K
(Within Finance reserves)
£1027k savings to be generated from staff and systems savings within HR & Payroll.
Additional FTE savings to be generated from BPR activity in SU’s but not yet identified. / Jan ‘07 / Mar ‘09 / Dec 10 / A review of the project business case is currently in progress to confirm the benefits realisation profile.
The intended operating model as a shared service with Bournemouth is currently being deliberated and further work to establish process improvement savings within Poole service units as a result of the system implementation.
There is some concern relating to current project management arrangements and the governance of implementation roll out activity.
QA review currently in progress and steps are being taken to strengthen project management arrangements.
A / G / G / G / Strategic Review of Procurement
Liz Wilkinson
Louise Hill
Priority A, Tier 2 / Business case to be defined.
Current estimate of £390k required with the potential to deliver savings of £2000k off base budget by 2015, this includes the specific procurement project activity referred to below / Sep 09 / Mar 11 / Review of the current service unit dispersed procurement model with a view to better utilising rare skills, embedding excellent practice, utilising data and research to drive more efficient purchasing.
Feb 09 BT board direction to assess resources required for delivering this initiative has been developed and requires an injection of £390k of BT programme funds over 2 years.
Brief outlining the work of the team for the next two years now circulated for agreement by the board.
R / G / G / G / Agency Staffing
Liz Wilkinson
Louise Hill
Priority B, Tier 3 / Business Case to be developed
An estimated saving of £300k of base budget in the next three years. / Sep 09 / May 10 / Establishment of a single supplier framework contract to recruit temporary staff, simplifying processes, reducing overheads and managing supplier commission margins.
The use of a single supplier for contract \ agency staff will assist in ensuring that HR policies are complied with, reduce authority wide activity associated with accessing the contract market and speed up search and selection.
Resources to progress this work now in place hence the change to project start date.
G / G / G / Energy Provision
Liz Wilkinson
Stuart Bickel
Priority B, Tier 3 / An estimated saving of £280k off base budget. / Sep 09 / April 10 / The project is to review our current contracts for the provision of energy, ensure that they deliver value for money and consider how we can deliver carbon efficiencies through working with our energy supplier(s).
Resources to progress this activity now in place hence the change to project start date..
G / G / G / G / Print & Design
Liz Wilkinson
Frances Ford
Priority B, Tier 3 / An estimated saving of £95k off base budget. / July 08 / Mar 09 / Feb10 / Definition and implementation of a Corporate framework contract to provide design and print services, and deliver cost savings through the management of a single contract.
PQQ has been completed – short listing and ITT process completed, award to commence.
Category and Framework management processes designed
G / G / Mobile Phones
Liz Wilkinson
Frances Ford
Priority B, Tier 3 / An estimated saving of £25k off base budget. / Oct 09 / Mar 10 / Procurement of new corporate mobile phone contract; there will be a direct challenge as to the number of and type of device required, with a view to reducing the numbers. This is likely to introduce a culture issueas staff will perceive this as a removal of a “benefit”.
A / A / G / G / Efficient Use of Resources Programme
Liz Wilkinson
Rebecca Drummond
Priority A, Tier 3 / Business case to be defined, project costs to be delivered from within SU operational budgets.
Cashable savings to be realised and reported via BT programme. / Apr 09 / Collection of 25 initiatives to deliver efficiencies and effectiveness that will assist in managing gaps in the MTFP. Currently in definition.
G / G / G / G / Corporate Programme & Project Management methodology
Katie Lacey
Steve Barrington
Priority A, Tier 2 / £145k
(Business Transformation budget)
Non-Cashable Benefits of circa £600k per annum of senior management time / Mar ‘07 / Dec 09 / Phase 1 February 09
Phase 2
Oct 09
Closedown and transition to business as usual operations estimated for Dec 09 / The project brief was agreed at Transformation Board 21st May 2008.
Outline approach and plan was agreed at BT board 08/09/08.
Governance framework agreed by SMT on the 25th November, with a request to extend the project brief to incorporate a baseline of the authority’s change portfolio.
Workshops including 110 officers have been carried out to test intended project governance processes.
Information relating to the entire change portfolio is currently being captured for review by SMT to focus on any projects that may be providing cause for concern.
Project manager appointed as a result of decision taken at Feb. 09 Transformation board.
Current priority is compilation of Corporate project activity for review by management team.
Project Management toolkit currently being user tested by a group of officers across a number of service units and has been launched corporately.
W / Procurement of Hard & Soft Facilities Management Services
Alan Jones
Louise Hill
W / E-Procurement
Liz Wilkinson
Stuart Bickle / Nov 09 / Sep 10
W / Budget Restructure & Review of Internal Market
Liz Wilkinson
Louise Hill / Project seen as two separate elements, with some links.
Principles of bringing disparate budgets into focused points of control are currently being discussed with cabinet. Principle is being piloted using ICT Desk Top Replacement budget and HR advertising budgets.
In order for these principles to be developed further focussing on other cost pools, a project accountant resource is required – this resource was agreed in principle at Feb. board.
R / R / W / W / Corporate Accommodation Strategy – Phase 1
Alan Jones
Sarah Varley
Priority A, Tier 1 / Expected future revenue savings of
£500k of base budget resulting from office rationalisation and other efficiencies / Jan 10 / Appoint a “big hitting” advisor – E C Harris
To report by the end of September 2008.
Quality of final report is not adequate to the authorities requirements, - project closed October 2009.
Strategy is now to be redeveloped using internal resources, to take into account current economic conditions – brief to be presented to board by January 2010
A / A / W / W / Provision of Corporate Property Framework Contracts
Alan Jones
Hugh Lambourne
Priority B, Tier 2 / Business case in development
Anticipated savings of £150k of base budget / Nov 09 / To identify a suitable property project management partner; Implementation of a corporate framework contract to generate savings from multiple contracts currently in place; speed up the delivery of capital projects and improve the quality of project activity.
This is of significant importance to the authority’s ability to deliver elements of the Capital programme within desired timescales.
Project Management arrangements will now be taken up by a newly recruited Property manager, who will be charged with developing the intelligent client role of Property Services.
A / G / W / W / Property Services Target Operating Model
Alan Jones
Hugh Lambourne
Priority A, Tier 2 / Business case in development
Anticipated savings of £150k off base budget. / Nov 09 / To define a target-operating model for the delivery of property services across the authority; The expectation is that this will reshape the delivery of property services and facilities management to an organisation that acts as an intelligent client managing corporate framework contracts that deliver required services. This is anticipated to deliver staff and systems savings across a number of services units, as well as delivering savings through the reduction of the number of contracts currently in place to deliver these services.
Head of Service now in post and Tier 2 posts recruited.
Seisin engagement being closed.
Activity for the next stages to be defined and agreed with input from unit management team and agreed with board.
Awaiting Definition
Status / Project NameSenior Responsible owner
Project Manager
Priority & Tier / Approved or
Requested
Budget £,000
Benefit £,000 / Plan / Status, incorporating known milestones /
Previous Periods / Now / Start / End / Revised /
Performance Management
Bridget West
TBA
Priority A , Tier 2 / Dec 09 / Sep 10 / Project brief to be prepared driven by response to CPA report.
Desktop Printer Replacement / Project brief to be prepared.
Management Information Delivery / July 09 / Project brief to be prepared.
Completed Projects
Status / Project NameSenior Responsible owner
Project Manager
Priority & Tier / Approved or
Requested
Budget £,000
Benefit £,000 / Plan / Status, incorporating known milestones /
Previous Periods / Now / Start / End / Revised /
B / B / B / B / Asset Management & Plan
Peter Pawlowski
Phil Page / £15k
(Property Services budget) / May
‘07 / Sep ‘07 / COMPLETED / Project has delivered an Asset management Strategy and Plan for Poole. Provides the framework and governance policies to improve the way in which Land and property assets are managed.
B / Programme Office
Peter Pawlowski
Chris Wright
Priority A, Tier 1 (Programme Definition and Management) / £200k
Annual cost
Business Transformation Budget / Mar ‘07 / Mar ‘10 / COMPLETED / Provision of programme manager, business analysts and programme support resources; office accommodation and equipment to support the establishment and delivery of Business Transformation projects. Defines and manages the overall direction of the programme, communicates progress and monitors the quality of deliverables; in addition provides support to all other strategic programmes with management reporting to SMT & cabinet.
Currently not clear how this will be funded on an ongoing basis.
Agreed as completed activity in September 08
A / B / Closure of Print & Design
Tim Martin
Pauline Gill
Priority D, Tier 3 / £10k
Legal & Democratic budget / July 08 / Mar 09 / COMPLETED
December 08 / Print & Design unit is now closed with temporary arrangements in place – these will need to be extended to accommodate the time required to implement an appropriate framework contract.
SLA Internal Market
Tim Martin \ Liz Wilkinson
TBA / CLOSED
February 09 / A review of current internal recharging mechanisms and service quality definition processes Brief to be developed.
Amalgamated with BT03 to optimise use of resource
4 Major Issues & Risks to the programme
There is an issue impacting the programme …. / Impact / Recommendations for Resolution MitigationLack of sustained and evidenced commitment to the delivery of a Corporate way of working is and will have an adverse impact on the programmes ability to identify and deliver sustainable efficiency savings. / HIGH / Implement \ strengthen operating policies – consider constitutionalising – implement effective governance.
Measure and reward commitment through performance evidenced through measurable activity and active contribution.- implement contractual changes for members of EMT.
There is a risk that…. / Impact / Probability / Mitigation
The current lack of clarity around the programme vision and objectives is stalling communications with staff and potentially watering down the programmes credibility / HIGH / Medium / Agree programme definition and use to develop basis of communications. Communication strategy to be based on benefits profile currently being developed.
Insufficient budget allocated to progress all activity currently identified as Transformation Programme projects – with no capacity to support any new work / HIGH / Low / Review priority of activity using programme and project prioritisation tools to manage limited budget and resources.
Existing resource capacity and competencies are not able to support the ambitious objectives for delivery of this and other programmes.. / HIGH / HIGH / Review priority of activity using programme and project prioritisation tools to manage limited budget and resources. Now escalating to an issue that is impacting the progress of the programme as demonstrated by recent recruitment activity.
3 Change Requests
No new change requests have been identified in this period.