Strategic Business Planning Guide

Transcription

1 Strategic Business Planning Guide

2 Contents Page Introduction to Business Planning in Westminster The Business Planning Framework The Business Planning Cycle Scope and content of Business Plans - Section 1: Service Profile (WHERE ARE WE NOW?) - Section 2: Priorities and Objectives (WHERE DO WE WANT TO BE?) - Section 3: Detailed Action Plan (HOW DO WE GET THERE?) - Section 4: Monitoring and review (HOW DO WE KNOW WE ARE THERE?) - 2 -

3 INTRODUCTION This guidance explains Westminster City Council s approach to business planning. It covers: How Business Plans fit within the overall framework of the City Council s plans What Business Plans need to cover The process for producing the 2007/08 Business Plans The importance of business planning Business Plans are a key part of the City Council s overall Performance Management Framework and are essential to good performance management. They provide a vital link between corporate and community objectives at a strategic level through to individual performance plans, so that each member of staff knows how what they do contributes to achieving the City Council s objectives. Business Plans are an essential tool for making rational and co-ordinated decisions about levels and types of provision where resources, financial, people and assets are used well through clear links to financial planning. They should be used as a framework for team discussions on performance and provide an opportunity for the key issues to be highlighted to Corporate Management Board, Audit and Performance Committee and individual service Overview and Scrutiny Committees. Our Business Plans need to: Ensure achievement of outcomes prioritised by the City Council and community Set out planned service priorities and improvements Identify and mitigate risks to planned service levels and improvements Provide a mechanism by which managers, members and officers can focus on performance management and improvement Business Plan Timeframe The business planning process involves an annual refresh of priorities, resources and performance but needs to take account of the rolling three-year targets in the City Plan, Local Area Agreement and other strategic/local plans. Format and Audience Business Plans are, primarily, internal documents and their audience is staff, managers, Members and partners. Their main purpose is to ensure clarity in setting of targets and objectives and act as the baseline by which departments manage their performance and adjust their operations throughout the year. They should be relatively short (15-20 pages) user-friendly and accessible so that external audiences can understand the operational plans of the City Council. The team and individual plans underpinning Business Plans should provide more detail. The Business Plans will be made publicly available via the internet and will be accessible via the intranet. Using this guidance This guidance sets out the City Council s business planning framework to ensure a consistent approach to business planning across the organisation and ensure key performance and management information is captured in a systematic way

4 Business Plans are not statutory documents, so they should be useful to the end user. They should include an honest appraisal of the key service priorities and identification of meaningful indicators and risks in order that the effort put in to produce and monitor them will be worthwhile and proportionate. This guidance should be seen as the minimum standards for Business Plans and Departments may wish to explore some areas in more detail or add other elements to reflect their particular priorities and local context. Changes to last year s guidance The format for Business Plans 2007/08 has been revised to highlight the following issues more explicitly: More robust links between departmental plans and corporate priorities including the new One City Programme, the City Plan (and Local Area Agreement), the Corporate Plan (BVPP) and key departmental strategies Departmental (and strategic) risk management approach A clearer focus on areas for improvement New departmental action plans to meet statutory equality legislation and data quality requirements The role of Local Areas Renewal Partnerships in delivering wider community outcomes The outcomes of customer consultation and links to the emerging neighbourhood agenda The need for more detailed local action plans which are more amenable to quarterly/six monthly monitoring and review The new format should make the planning process more logical and demonstrate greater links between the external and internal environments and the actions planned by each Department. Timescale for production of 2007/08 Business Plans Launch of business planning guidance 13 November 2006 Business Planning Seminar W/b 27 November 2006 Quality control by Performance Improvement Team (to ensure 5 16 February 2007 minimum standards met) and peer review of Business Plans Overview and Scrutiny Committees sign off Business Plans February/March 2007 Business Plans published on intranet/internet End March/ 1 st April 2007 Ownership/sign off arrangements Departments will have responsibility and flexibility for local sign-off arrangements. Nominated CMB Lead(s) should take ownership of each Business Plan and this should be recorded in the Plan. However, it will be necessary that Overview and Scrutiny Committees formally agree the financial elements and have oversight of the whole Business Plan

5 A Business Planning Checklist Well-produced business plans are an essential tool through which rational, evidencebased decisions can be taken concerning levels and types of service provision. The Improvement and Development Agency have produced a checklist of what such wellproduced plans should encompass: DOES THE COMMUNITY STRATEGY (CITY PLAN) ACT AS AN OVERARCHING FRAMEWORK FOR CORPORATE, SERVICE OR THEME SPECIFIC PLANS? Have the priority community issues been translated into corporate objectives? Is there a corporate plan in place that identifies the tasks and resources necessary to achieve the corporate objectives? Is resource allocation based on corporate objectives? Is service improvement and financial planning integrated? Are there up to date departmental service plans in place that translate corporate objectives into action plans? Source: Improvement and Development Agency (IDEA) More information/ Sources This guidance is based on best practice from other Local Authorities, Westminster s particular requirements and addresses the results of internal consultation on the scope/ remit of the Business Plans. The Corporate Performance Improvement Team can provide guidance and support to Departments to allow BPs to be signed off and published by 31 March In addition you may find the following documents and strategies useful in compiling your business plan, including: City Plan BVPP One City White Paper LAA performance framework PMMI Guide to target setting Benchmarking guidance (LB Hounslow) Data Quality Strategy Equalities Policy For information on any of these please contact one of the officers below. For further information please contact: Una McCarthy, Performance and Projects Manager, ext 3164 or Nick Lowe, Performance Improvement Officer, ext

6 THE BUSINESS PLANNING FRAMEWORK Business Plans are the central element of the City Council s planning framework, setting out how the City Council s services will deliver on the major strategic priorities. They make these priorities business as usual, and allow teams and individuals to focus their work on the priorities of the City Council. The City Council requires a limited number of Business Plans in order that the whole Council, its staff and partners can be clear about our achievements and future plans. The chart below summarises this framework: WCC Business Planning Framework City Plan Westminster s community strategy for the next ten years focussing on 4 priority themes and 4 cross-cutting themes. Local Area Agreement Three year delivery programme agreed with partners to help delivery of the City Plan through a single, streamlined grant. Other Statutory Plans As defined by Central Government e.g. Local Development Framework, Crime & Disorder Reduction Strategy. Best Value Performance Plan Our Corporate Plan detailing our contribution to the City Plan, with targets for the next three years. Business Plans Outlining what and how the department will be delivering its services over the next year, including three year targets. Statutory Team/Service Plans More detailed plan for a specific element of a department, linking business plan objectives with individuals. Non-Statutory Individual Work Plans How an individual will contribute towards the objectives of a team. THE BUSINESS PLANNING CYCLE Business Planning is a key process which assists us to provide the best possible services for local people which meet their needs and continually improve performance. The process of developing the Business Plan and how it fits with other processes (budget setting, strategic planning and performance monitoring) is vital to good performance management and improvement. In the City Council, a clear timetable is in place to directly link financial and service planning, management, review and monitoring. There is a three-year financial planning process which is tied into an annual Strategic Review which provides a clear analysis of the resource required to support the delivery of - 6 -

7 priorities. The financial remit enables departments to prepare their budget options within the corporate framework and the Star Chamber process (which is inextricably linked with the core priorities of the City Council as expressed through the annual Leader s Speech and One City Programme). Cabinet Members are fully engaged in the review of service performance, efficiency savings and the identification of policy-led and unavoidable cost increases. This figure below shows the key milestones in the business planning cycle. Westminster s Performance Management Process Budget and Council Tax agreed LAA refresh sign-off with GOL February Q3 Key Performance Indicators & LAA monitoring January Business Planning 07/08 started RSG announced Management letter & Audit report Programme LAA agreements signed off Leader s Speech December March LAA report to Government Office for London Westminster Performance Plan Estimates, Service Plans and review programme agreed November Business Plans 08/09 completed CPA Scorecard and action plan, Use of Resources, Annual Performance Assessment, Direction of Travel statement Publication of BVPP summary by 31 March Mid year review City Plan Launch April Strategic Review sets out Leader s vision, corporate aims and priorities Quarterly Performance Monitoring Quarterly reporting of service plans and reviews City Survey Consultation on new One City priorities October Q4 Key Performance Indicators & LPSA2 monitoring Review of 2006/07 performance Changing Priorities Annual Review and assessment of existing performance measured against key PI s and the new priorities Setting Budget Options Growth and savings options agreed May September Q2 Key Performance Indicators & LAA monitoring Annual Efficiency Statement forward look Closing of accounts Annual Efficiency Statement backward look June August July CPA/ JAR Corporate Assessment Publication of BVPP Q1 Key Performance Indicators & LAA monitoring Audit of BVPP and key Performance Indicators BUSINESS PLANS IN WESTMINSTER The following Business Plans are produced for the following groups of services: Children s Services Housing Adult Social Care Environment and Leisure Community Protection Planning and City Development Transportation Central Services These plans are underpinned with more detailed Service, Team and individual plans

8 SCOPE AND CONTENT OF BUSINESS PLANS SECTION 1: SERVICE PROFILE WHERE ARE WE NOW? (4-5 pages) This section focuses on: Services Context Users Achievements Comparisons The purpose of this section is to provide a baseline for the business plan by which future plans and objectives can be developed. SERVICE PROFILE The minimum mandatory descriptions for this section are: SERVICE SCOPE The range of activities delivered (and by whom), and the current staffing level. SERVICE USERS Service planning should be driven by what serves residents and existing or potential customers best. Please list information including number of users, any particular requirements, how the user base may change and the key outcomes sought for these users. OPERATING CONTEXT Evaluate the current internal and external influences for the Department this includes factors that may affect the provision or cost of the service, such as changes in demographics, price increases or changes in the law, national priorities and guidance. CONSULTATION Service planning should be driven by what potential and existing customers need. This section should present the key findings from customer consultation exercises, formal and informal feedback e.g. complaints and customer comments, analysis of service views and any other consultation that will drive service improvement. A description of the methodology, full list of results and technical analysis is not required and this section should be short and succinct. Departments should list the planned action in particular areas in the forthcoming year taken in response to consultation and communications activity. Any key consultations to be undertaken in 2007/08 need to be noted. FINANCIAL RESOURCES Please provide a short financial overview of the amount of money to be spent on delivering the service(s) against revenue and capital budgets. This should compare 2005/06 actual out-turns against the 2006/07 position and a high level summary of the forecasted budget for 2007/08. It should also state performance against 2006/07 efficiency targets. This section should summarise the information in Schedules 1-6 (Appendix 1 attached)

9 LEGISLATIVE/STATUTORY BACKGROUND Statutory frameworks within which the service works and the legal requirements it has to meet. REVIEW OF PERFORMANCE 2006/07 Outline the existing performance of the service showing the outturn against the previous year s key performance indicators (please also complete Appendix 2) including: Summary of performance against BVPIs or other national indicators Summary of performance against key local performance indicators including LAA stretch targets Summary of performance against professional standards if applicable KEY ACHIEVEMENTS/OUTCOMES IN 2006/07 While the previous section summarised performance against key indicators, this section should draw out the key achievements over the past year, what have been achieved against the previous year s business plan and what external judgements have told us. This section should include externally acknowledged achievements but also models of service delivery/projects that have demonstrated effective leverage of external or partnership monies and/or delivered innovative solutions locally. SERVICE COMPARISON TO OTHER SERVICE PROVIDERS You may also want to provide a comparison of the service against similar providers (usually the inner London Authorities but could be the private and voluntary sector), using quartile markings, or benchmarking club data to set the performance of the service. TO OTHER COUNCILS In any thorough assessment of a service, there should be comparison of service performance against those of other councils. This sets the service in context of what can be achieved and how well the service is doing in comparison with others and raises the bar of expectation. SECTION 2: PRIORITIES AND OBJECTIVES - WHERE DO WE WANT TO GET TO? (1-2 pages) This section focuses on: City Plan priorities Corporate Plan (BVPP) priorities Local Area Agreement One City priorities Local priorities Meeting changing local context The purpose of this section is to demonstrate a clear fit between the business aims over the next year and the wider priorities (especially from the BVPP and City Plan) that will inform future plans. This section should include a short commentary on how the service contributes to local priorities or addresses local needs by including links to key strategies both corporately and departmentally

10 The service needs to take account of the City Council s strategic priorities and external factors to develop a limited number of high level objectives, which can be understood by all staff and users and can be translated into action. Each service will need to go through a structured process to arrive at its own service objectives considering the following elements: FACTORS TO CONSIDER IN KEY QUESTIONS DEVELOPING OBJECTIVES 1. City Plan What are the key priorities and targets outlined in the City Plan which are relevant for the service? (NB: separate guidance available on this issue) 2. Corporate Plan (BVPP) - One City Delivery Programmes: Order Opportunity Enterprise Renewal 3. Corporate Plan - One City Cross Cutting priorities: Neighbourhood Focus A Tolerant City Active Citizenship Customer Focus What actions are necessary to deliver City Plan 3-year priorities and targets, and LAA stretch targets? What are the key priorities for action and targets highlighted for each theme which are relevant to the service? How does the service deliver on these agendas? 4. Other corporate priorities Will WorkSmart affect service delivery in 2007/08? 5. Mandatory requirements What new and existing commitments (legislation, national standards, new regional priorities etc) need to be considered in setting service objectives for 2007/08? 6. Local priorities What local priorities need to be addressed as identified through consultation, local strategies and plans or feedback from users? What further consultation is required to address customer needs? 7. Community needs What community needs are relevant to service delivery? What support is required for the delivery of area based initiatives and projects, for example support the delivery of Local Area Renewal Partnerships etc? Source: Format adopted from Rotherham BC, Service and Financial Planning Framework, 2006 The key output of this section is a short list of annual objectives for the service under each or some of the City Plan and One City themes

11 SECTION 3: DETAILED ACTION PLAN - HOW DO WE GET THERE? (5-10 pages) Detailed Action Plans Staff Development and Consultation Risk Management Resources Equality and Diversity The purpose of this section is to set out the means by which the objectives identified in the previous section will be translated into action. This section forms the bulk of the document. ACTION PLAN The business plan should set out, in detail, how the service is going to operationalise the objectives it has identified, and the accountabilities for delivery. This is the key part of the plan that will be used to monitor and track performance over the year. The Action Plan needs to be as concise as possible and focussed on key PIs and outcomes, but detailed enough to signpost how targets will be met and by whom. Service, team and individual plans will give more detail on activities. Information should be presented for each service objective as per the template in Appendix 3. In order to have clear lines of accountability and monitoring, each action must be assigned to a CMB/Officer lead. Finally, each objective will require a performance measure - which says how the Department will measure success. This could include one or more of the following: Performance against a PI (BVPI or a local PI). Delivery by target date. Increased satisfaction measured through consultation exercises. Departments should also list the statutory, service and operational plans to be produced 2007/08 (Appendix 4). STAFF DEVELOPMENT Departments should provide some information about any future team development issues including: Looking ahead, are there key skills/knowledge the team will need to develop/acquire to meet future demand/methods of service delivery? Could there be new partnerships that will impact on the team? Are there any particular staff recruitment or retention issues? What is the age/skill profile of the current team and what will be the impact of this in 5 years? STAFF CONSULTATION A short description of the key actions to be taken to address the Your Voice / other staff survey findings should be presented

12 FINANCIAL SUMMARY A short summary of the financial schedules (outlined in Appendix 1) should be provided to show the key financial headlines for each service area. A short statement of actions taken to meet the Annual Efficiency Statement actions for 2007/08 should also be outlined. RISK MANAGEMENT The City Council s approach to risk management is set out in its Risk Management Strategy (RMS) and covers: The overall process for identifying, assessing and managing risks. The respective roles of officers and members. Arrangements for monitoring and reporting. The City Council also has a strategic risk register that focuses on the key risks to the achievement of corporate objectives. All Departments are required to have departmental risk registers in place to support their business objectives and plans. In creating risk registers, Departments are required to adopt the five-stage process set out in the RMS. Key stages in identifying departmental risks Stage 1 Identification of the key risks that could have an adverse affect or prevent key business objectives from being met Stage 2 Analysing each risk to gain a clear understanding of its cause and the consequences of the risk occurring Stage 3 Ranking and prioritising risks according to the potential likelihood of them occurring and the resulting impact. Each risk needs to be scored and categorised as red, amber or green Stage 4 Planning actions necessary to mitigate the risks identified and recording these in the risk register. Stage 5 Monitoring and reviewing risk registers on a quarterly basis and reprioritising risks where necessary. Risks will be formally monitored through CMB, CESG, Cabinet and the Audit & Performance Committee. The format to be used and guidance for all Departmental Risk Registers is attached at Appendix 5. If you need further support and guidance please contact Ben Beard, Risk Manager, ext or Toni Walker, Head of Risk and Audit, ext EQUALITIES AND DIVERSITY Existing legislation on race equality (Race Relations Amendment Act 2000), disability equality (Disability Discrimination Act 2005), and forthcoming legislation on gender equality (Equality Act 2006) impose explicit Duty to Promote Equality requirements for all public authorities including local authorities. The Equality Act (2006) also prohibits discrimination on the grounds of Faith, Age and Sexual Orientation in the provision of goods, facilities and services. This section of the business plan should outline the main issues around equalities in your Department, particularly highlighting initiatives to ensure the statutory duty to promote

13 equality is mainstreamed into service delivery. It is also necessary to demonstrate how you are delivering the actions outlined in your Departmental Equality Action Plan (DEAPS). SECTION 4: MONITORING AND REVIEW - HOW DO WE KNOW WE ARE THERE? (1-2 pages) Set out the arrangements for monitoring progress against targets and keeping on track. Include clear information on: What will be reported Frequency of information reported Who will report to whom Which Overview and Scrutiny Committee will receive periodic business plan monitoring Who will take action if there is insufficient progress For targets it is desirable to set trigger points where remedial action will occur if an indicator falls below target. It may be appropriate to monitor progress of certain performance indicators that are key to council priorities more frequently. Please include a Performance Management Structure chart to show the arrangements and responsibilities for collating, monitoring, scrutinising and signing off all performance/finance related issues

14 Appendix 1: Financial Schedules (Tables as required by O&S Committees) - Schedule 1 : 2007/8 Estimates Management Structure - Schedule 2 : Change in Requirements for 2007/8 - Schedule 3 : Planned changes 2007/8 to 2009/10 - Schedule 4 : Summary of Capital Estimates - Schedule 5 : Summary of Revenue Estimates - Schedule 6 : Staffing Resources Please see separate MS Excel attachment. Appendix 2: Service Performance 2006/07 Please list all relevant BVPIs, LAA stretch targets, local and service specific performance standards Description Actual 2005/06 Result Top 25% Inner London 2005/06 Target 2006/07 Actual 2006/07 Target 2007/08 Target 2008/09 Target 2009/10 1a 1b 1c 2a 2b 3 Service Area (Figures for published Business Plan to be those as at end of December 2006, full year figures to be appended when ready and signed off)

15 Appendix 3: Departmental Objectives 2007/08 NB: Where using the City Plan objectives please refer to the separate guidance. Objective Performance Indicators/ Targets Planned actions 1. What high level objectives does the service hope to achieve 2. List programme(s) this objective aligns to City Plan One City programme/ priorities LAA Corporate Plan (BVPP) WorkSmart Local/statutory plan National/local requirement Actions following Inspection Other (please indicate) Reduce the Fear of Crime City Plan LAA Objective Challenging yet achievable targets should be set for each objective. Targets should be relevant and realistic as well as specific. Where relevant all national PIs should be detailed as a measure of success. At least 70% of residents say they feel safe walking outside in their area after dark 1. The operational steps by which the performance indicator/ target will be achieved. 2. Reference source where applicable (e.g. City Plan Ref 1.1) Worked example Improve Street Lighting and Other physical features City Plan ref 1.4 Timescales & milestones Date by when task will be completed and significant milestones March 2008 (audit of existing lighting summer 2007) Lead A named CMB/ Officer Lead responsible for ensuring the task is completed John Smith Risk Ref. List any risks associated with this objective. If listed in the risk register just a reference number is acceptable. LAA funding through NRF may come to an end. Expand CivicWatch into all areas of the City, supporting the Safer Neighbourhoods roll-out City Plan ref 1.1 March 2008 (new contractor approved Autumn 2007) John Smith Risk Register ref

16 Appendix 4: Statutory, service and operational plans to be produced 2007/08 Name of Plan Status (statutory, service plan etc) Period covered by plan Updating frequency (annual, biannual etc)

17 Appendix 5: Departmental Risk Register The following format should be used for strategic and departmental risk registers. Risk No Objective Risk Owner Likelihood Impact Score RAG Status Direction of Travel Vulnerability/Cause Consequences Current Mitigation Further Action Planned Action Owner Action Dates & Review Frequency Target Score Target RAG Status & Date NOTES: Objective column is used to show link to Council objectives, ie: 1 Provides access to outstanding customer focused services 2 Is a successful world class city 3 Is a learning community in which children, young people and adults realise their full potential 4 Is clean, safe and environmentally sustainable, where residents and organisations are considerate and active in improving their own environment and neighbourhood. 5 Ensures everyone is able to enjoy their best possible health and well being. Direction of Travel should be applied as follows: = improvement (ie severity of risk has been reduced) = static (ie no change in severity of risk)

18 = deterioration (ie severity of risk has increased) Risk Score should be assessed using the attached matrix and scoring definitions. Target Score and Target RAG Status columns should be used to describe the expected impact of the mitigating actions, ie risk either reduced or maintained at current level. RISK SCORING MATRIX A B C D Likelihood: A - Very High B - High C - Significant D - Low E - Very low F - Almost impossible E LIKELIHOOD F Impact I - Catastrophic II - Critical III - Marginal IV - Negligible IV III II I IMPACT

19 RISK MATRIX SCORING DEFINITIONS The definitions below provide guidance as to what is meant by both likelihood and impact. Using this table will aid consistency. Financial Impact IMPACTS Negligible Marginal Critical Catastrophic 0K - 25K 25k - 250K 250K - 2M 2M+ Service Provision No effect Slightly Reduced Health & Safety Objectives Morale Reputation Government relations Sticking Plaster / first aider No media attention / minor letters Broken bones/illness Objectives of one section not met Some hostile relationship and minor non co-operation Adverse Local media Leader Poor Assessment(s) Service Suspended Short Term / reduced Loss of Life/Major illness Directorate Objectives not met Industrial action Adverse National publicity Service taken over temporarily Service Suspended Long Term Statutory duties not delivered Major loss of life/large scale major illness Corporate objectives not met Mass staff leaving/unable to attract staff Remembered for years!! Service taken over permanently LIKELIHOOD PROBABILITY TIMING Very High > 90% This week High 55% to 90% Next week / this month Significant 15% to 55% This year Low 5% to 15% Next year Very Low 1% to 5% Next year to five years Almost Impossible 0% to 1% Next ten years