Think Efficiency: The Next Phase (2010/11)Programme Summary for Budget Scrutiny 3rd March 2010

Slide 2

Approach for 2010/11

1. Locality

2. Collaboration

3. Management Savings

4. Agile working

3 main outcomes continue to remain valid

– Service improvement for customers– Balancing the books– Creating an organisation that’s fit for purpose for the future

Slide 3

1. The Approach for 2010 A focus on locality

• Focus on the Place, the People and the Community within a geographic area• Realignment with Think Customer principles

– No wrong door, single point of contact, multiple outcomes, a real focus on customer

• Challenge how we deliver services therein as a Council and in partnerships with others

• Realise targeted localised efficiencies through avoiding duplication with– Property– Staff– Systems

Slide 4

The Scale of the Opportunities

Little Hulton provides the template for the current thinking with;

• 10 Council and Partnership Organisations buildings in the immediate area• 5 of these teams readily identified as SCC employees at a cost of £900K

including – 13 Admin staff (salary cost £180k)– 12 managers/deputies (salary cost £439k)– NB. These costs exclude non locality based teams and £150k pa in property

lease/maintenance costs (for 3 SCC offices)

• What would a 10% reduction in costs look like for SCC? £90K with additional potential from– Removal of duplication on ICT costs (systems/licence/support)– Removal of duplication with external partners service delivery/premises/staff

costs• Potential city wide roll out of this approach would deliver significant savings,

provides a real opportunity to connect with public through provision of improved public service provision

• 2010/11 potential return £0.5M to £1M

Slide 5

2. The approach for 2010 Collaboration

• Focus on development work with a strategic local authority partner(s), rather than chasing the goal of full AGMA collaboration. Such clustering to be the catalyst for improved delivery across AGMA

• Look for “best of breed” opportunities across AGMA including– Procurement– Contact Centre– Programme & Project Management including Building Schools for the

Future• Still actively chase AGMA collaborative services projects and maintain our

position in leading this agenda, significant returns not anticipated eg. AGMA Vehicles project 2010/11 £50K

• Deprived areas pilot may provide further efficiency opportunities in conjunction with Manchester CC

• 2010/11 potential return £250K to £500K

Slide 6

3. Approach for 2010/11 Management Structures

283 posts identified as medium impact, delivered

less than 25% of these opportunities to date

Slide 7

Shape of the Programme: Management Structures

£10.1M identified as medium impact, delivered

£1.4M to date

Slide 8

Shape of the Programme: Management Structures

• 2009/10 Target of 73 FTE reduction in Management Structures through compliance with the “best practice” model of 4 tiers and a ratio of spans of control of 1:5:7:15

• 2009/10 Target financials £1.4m delivered ahead of programme and achieved via an FTE reduction of 43 realised to date

• Therefore significant potential remains as – VER opportunities are yet to be realised (a max of 100 across all

Directorates/ programme areas)– Still significant non compliance with best practice model across the

Council – 100 further managerial posts could deliver full year £5M pa, 2010/11

£3M pa if introduced in 3 phases during year

Slide 9

4. Approach for 2010/11 Agile Working

• Positive track record in terms of property rationalisation but there still remains the potential to make a significant step up in terms of agile agenda creating– Further reductions in properties– Reduction in revenue costs

• Agile working developments have delivered efficiencies of £710K to date over 2 phases and realised a 950m2 space saving/£95k revenue saving. HR pilot based on 6m2 per person based on Council average of 11m2.

• Still concerns about office space utilisation, which is considered to be at the 60% to 70% level

• Considered that a 10% reduction in space utilisation would be deliverable without the need for significant ICT investment, this would deliver an estimated 3550m2 and £376.3k (property savings only)

• A more challenging 30% reduction in space utilisation would deliver an estimated 14,200m2 and £1.505m but would require a significant step up in terms of ICT enablers