John Lamb, Solace chairman (North West branch)
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Transcript of John Lamb, Solace chairman (North West branch)
The Future of Local Transport Delivery: Oldham road show
6 July 2011, Smokies Park, Oldham
Sponsored by
In partnership with
The Future of Local Transport Delivery: Oldham road show
6 July 2011, Smokies Park, Oldham
Sponsored by In partnership with
John Lamb, Solace chairman (North West branch) How to decide: what managers and members must consider in order to arrive at the optimal delivery model for their authority
Audio presentation/powerpoint unsynced
John LambJohn Lamb
Sharing the pressures Sharing the pressures
Releasing the opportunitiesReleasing the opportunities
Develop the discussionDevelop the discussion• No single person / team / organisational No single person / team / organisational
model has the answermodel has the answer
• Demand for change is universal and Demand for change is universal and recognised by all officers, members and the recognised by all officers, members and the publicpublic
• Solutions demand more outcome based Solutions demand more outcome based deliverables – a marked shift from inputsdeliverables – a marked shift from inputs
• Skill set of professions is silo basedSkill set of professions is silo based
• No person / team / council is a ‘special case’ No person / team / council is a ‘special case’
• Sharing the problems and opportunities is keySharing the problems and opportunities is key
Key starting pointKey starting point
• Different models reflect largely a result of Different models reflect largely a result of democratic variety democratic variety
• County Council (two tier)County Council (two tier)• County UnitaryCounty Unitary• Borough UnitaryBorough Unitary• Metropolitan UnitaryMetropolitan Unitary• Borough CouncilBorough Council• Parishes Parishes
• A council with 200k residents might work A council with 200k residents might work politicallypolitically
• % Redundancy of plant, people, processes.% Redundancy of plant, people, processes.
Thinking afresh across all Thinking afresh across all servicesservices
• Do we need an HR team? Do we need an HR team? – Recruitment, retention, discipline, Recruitment, retention, discipline,
organisational development, change organisational development, change management, payroll, pensionsmanagement, payroll, pensions
• Do we need a legal team?Do we need a legal team?– expert advice on TRO’s, Highways, CPOexpert advice on TRO’s, Highways, CPO
• Do we need a procurement team?Do we need a procurement team?
AlternativesAlternatives
• Internal sharing Internal sharing
• Shared servicesShared services
• Wholly Owned CompanyWholly Owned Company
• Trading ServiceTrading Service
• Joint VentureJoint Venture
• ContractingContracting
• Partnering 7-15years+Partnering 7-15years+
• OutsourceOutsource
Key DriversKey Drivers
What level of ongoing control do members want?What level of ongoing control do members want?
What level of skill do we have now / need in future?What level of skill do we have now / need in future?
Balance between detail and strategyBalance between detail and strategy
Move towards ExcellenceMove towards Excellence
• If all the public sector moved from being average to If all the public sector moved from being average to delivering ‘upper quartile’ performance – 25-30% delivering ‘upper quartile’ performance – 25-30% improvement would be realised.improvement would be realised.
• Our services are good but most are not excellent Our services are good but most are not excellent • Why does Council Tax collection vary from £4 to £47?Why does Council Tax collection vary from £4 to £47?• Service enhancement or cost cutting (or both)Service enhancement or cost cutting (or both)• What quality you can affordWhat quality you can afford• Willingness to redesign process Willingness to redesign process • Accountability arrangements – oversight /scrutiny Accountability arrangements – oversight /scrutiny These are POLITICAL rather than managerialThese are POLITICAL rather than managerial
Industry TrendsIndustry Trends• Suffolk major outsource – lock, stock & barrelSuffolk major outsource – lock, stock & barrel• Cheshire East (thin client)Cheshire East (thin client)• Cheshire West (fat ? Client)Cheshire West (fat ? Client)• Salford – Urban Vision (non TUPE)Salford – Urban Vision (non TUPE)• Cumbria – in sourcing Cumbria – in sourcing (brought back in house)(brought back in house)
• Trafford / Stockport highways shared serviceTrafford / Stockport highways shared service• Midlands Highways AllianceMidlands Highways Alliance
So much choice, localism, big society – risk of So much choice, localism, big society – risk of fragmentationfragmentation
Shifting Markets & changing Shifting Markets & changing SkillsSkills
• Major changes demand we reflect onMajor changes demand we reflect on– Skill of service manager Skill of service manager – Adeptness of their ACTUAL procurement prowessAdeptness of their ACTUAL procurement prowess– Genuine contemporary market knowledgeGenuine contemporary market knowledge
• Focus on where you want to be at contract Focus on where you want to be at contract end – end – do you want the same thing back in 6 years?do you want the same thing back in 6 years?
• Think hard on level of trust you can riskThink hard on level of trust you can risk
• Must you always PQQ / OJEU for everything?Must you always PQQ / OJEU for everything?– 62% of OJEU content is from UK62% of OJEU content is from UK
Refresh the contract refresh the Refresh the contract refresh the mindsetmindset
• You are all operating advanced forms of You are all operating advanced forms of deliverydelivery
• How long have you outsourced, how many How long have you outsourced, how many times?times?
• What caused you to change providers?What caused you to change providers?
• In what ways did your contract seek to In what ways did your contract seek to enhance control or release it?enhance control or release it?
• What level of failure and riskWhat level of failure and risk
Incremental Value Vs Disproportionate Incremental Value Vs Disproportionate
CostCost
• Can we afford our service spec Can we afford our service spec – What options to reduce cost (What options to reduce cost (with service impactwith service impact) ) – Level / nature and frequency of member Level / nature and frequency of member
developmentdevelopment
• How different are the tenders How different are the tenders last one / this / nextlast one / this / next
• How prescriptive must you be? How prescriptive must you be? • Excessive contract tailoring will cost.Excessive contract tailoring will cost.• Single Standard national contract – minimum Single Standard national contract – minimum
requirements then test the marketrequirements then test the market
Shared ServiceShared Service
• Outsourcing is shared service – on a Outsourcing is shared service – on a National Platform.National Platform.
• If splitting enforcement from If splitting enforcement from management is that not better shared management is that not better shared with neighbours?with neighbours?
• Shared front line ‘street warden’ Shared front line ‘street warden’
• Shared service across contracts Shared service across contracts – Minimum number per contract and given ‘float’ Minimum number per contract and given ‘float’
Reshape your marketReshape your market
• Increase knowledge of membersIncrease knowledge of members
• Establish new relations in this forumEstablish new relations in this forum
• Genuinely map out the best or at Genuinely map out the best or at least the greatest commonalities least the greatest commonalities
• Understand what is genuinely unique Understand what is genuinely unique
• Aside from a few core essentials Aside from a few core essentials ((Member ledMember led) be as flexible as possible ) be as flexible as possible
Always Phone a Always Phone a FriendFriend