Efficiency & Effectiveness Program Five Year Program Plan Appendices June 2014 Version 2.0

Transcription

1 Efficiency & Effectiveness Program Five Year Program Plan Appendices June 2014 Version 2.0 1

2 Contents APPENDIX 1 Efficiency and Effectiveness Program Delivery Model... 3 APPENDIX 2 Program Resourcing... 5 APPENDIX 3 Efficiency & Effectiveness Mid-Term Review... 7 APPENDIX 4 Program Governance APPENDIX 5 Program Status APPENDIX 6 Program Risk Profile

3 APPENDIX 1 Efficiency and Effectiveness Program Delivery Model It is critical to the future sustainability of the City of Playford that the Efficiency and Effectiveness Program is structured in such a way that the organisations realises its annual Savings Targets. Simultaneously, the Program facilitates the creation of organisational capacity, to embed the notion of Continuous Improvement into the organisation. These efforts are underpinned by Requisite Organisation principles, as a holistic system to manage work. RO Principles Continuous Improvement E&E tools E&E methods E&E expertise Figure 1.1: Efficiency & Effectiveness Program Delivery Model The model above demonstrates how, under the umbrella of Requisite Organisation, the key principles, methodologies and disciplines, which underpin the Efficiency and Effectiveness Program, will help drive Continuous Improvement within the Organisation. Success of the Program is a product of evoking systems, disciplines and principles based on industry best practice such as; Lean Thinking, Managing Successful Programs, Prince 2, PMBOK, to name a few; each tailored to the Council s specific requirements. 1.1 Continuous Improvement an organisational accountability The success of the Efficiency and Effectiveness Program essentially starts here. Having a belief in Efficiency and Effectiveness primarily means that all key stakeholders want the change and share the goals/values. All stakeholders need to understand what the issues are, what the strategy is and want to contribute to the solution. Without Efficiency and Effectiveness embedded in the way we do business the improvements may be short lived. 3

4 Frontline Staff Role: Delivery of day-today tasks CI: Finding better ways everyday Service Specialists/ Coordinators Practice Managers General Managers Role: Manage resources, deadlines, completed actions CI: Cost control and beating budget Role: Manage systems (repeatability) to deliver significant milestones CI: Improve system effectiveness Role: Manage significant milestones to achieve the vision CI: Improve the value proposition CEO Role: Ensure viability CI: Develop the vision Figure 1.2: Continuous Improvement accountabilities per lever of work 1.2 Organisational Leadership & Effectiveness The CEO made the decision to embark on a journey to employ a Requisite Organisation (RO) system of managing work. By creating a structure that allows people to deliver outcomes with clear accountability and ensuring skills and abilities are well paired to rolls, Council can ensure that the direction given in the strategic plan flow through the organisation and get executed effectively. Organisational Leadership and Effectiveness (OLE) draws from RO and Efficiency and Effectiveness and provides the necessary tools and areas of focus needed to embed Continuous Improvement principles into the organisation. OLE will ensure that every individual within will know; where the organisation as a whole heading, how their role is defined, how they are performing and what the future will look like. RO OLE E&E 4

5 APPENDIX 2 Program Resourcing 2.1 Efficiency and Effectiveness Team A Program of this size cannot be delivered entirely with existing organisational resources. To best utilise the investment allocated to the Efficiency and Effectiveness Program, additional specialist skills and resources are required throughout the Program. These additional resources assist with delivering projects and other improvement initiatives and ensure benefits are tracked, measured and realised in accordance with industry standards. Based on the Managing Successful Program framework, a number of options are available with regards to building a Program Team or Program Office. Based on the skillset required and the rate of transformation predicted, a core specialist team has been formed. Figure 2.1 demonstrates the roles and team structure. Figure 2.1: Efficiency & Effectiveness Team, June 2014 This team operates via a Service Based Approach to bring specialist skills to the organisation. The team builds ongoing capacity in the organisation with a focus on Coaching and Mentoring key staff and Managers through their improvement initiatives. Support will be contracted as required for projects/initiatives which need additional specialist skills or capacity. Internally, the team s performance will be measured against its Service Level Agreement (SLA) with the business. 5

6 2.2 Core Functions In addition to the established core functions of the team outlined below, Continuous Improvement is a new focus of the Efficiency and Effectiveness Program moving into its next phase. Continuous improvement is the ongoing refinement of products, services, organisational structures and the behaviours which support overall business excellence. This translates to improvements in cost of service, cycle time, quality and customer experience (see 3.1 Continuous Improvement Roadmap for detail). The City of Playford has taken a Lean Improvement approach to process improvement seeking both incremental and step change improvements. The Efficiency & Effectiveness Program provides the organisation with an overarching supportive structure for continuous improvement at the City of Playford by driving key activities that are designed to embed a culture of improvement and overall excellence within the City of Playford. Benefits Realisation is a key component of Program Management; it provides a mechanism for identifying, analysing, measuring and capturing benefits that are identified throughout a program of transformation or change. Benefits Realisation is specifically designed to ensure improvements, whether project driven or process improvement driven, are captured. These improvement activities are assessed to ensure any benefits are realisable and measured and the actual savings are taken and put towards the overall program target at the completion of each initiative. The City of Playford has initiated a consistent approach to benefits tracking and realisation across all efficiency and effectiveness initiatives to ensure the anticipated benefits are realised for the Community, Elected Members and Staff Develop benefit profile Project/ Continuous Improvement Initiative Sign-off benefit profile = identify targeted savings Project execution Measurement of savings & Savings realisation Independent audit At the City of Playford business analysis is defined by the Efficiency & Effectiveness Program and covers the scope of identifying systems and process by the use of process mapping tools and techniques. These tools and techniques can assist in identifying general opportunities for improvement or underlying causes to operational issues. The Change Management Framework has assisted projects and will assist continuous improvement initiatives overcome common challenges and set the stage for continued success. A Change Management Framework is in place at the City of Playford to help lead, manage and enable the organisation to accept new processes, technologies, systems, structures and operating models. Facilitation focusses on the embedding of Lean concepts within the organisation. Facilitation of the various frameworks and methodologies will ensure their uptake and embedding within the City of Playford. Lean itself should ultimately be used by all staff to varying degrees as part of business as usual activities. Managing Successful Program (MSP) provides the overarching framework to managing this program of. 6

7 work. This allows for consistent and documented approach to how the team carries out its core functions. A quality assurance function is incorporated in the Efficiency and Effectiveness Program Office. The role of this function is to ensure that the business is aware of its Quality and Assurance expectations as set by the Executive and Elected Members. The function will facilitate information flow and controls. Risk management and internal controls play a critical part in managing a program of this size and duration. The Efficiency and Effectiveness Program will integrate with Councils existing Risk Management Framework and Functions. The table in Appendix 8 outlines the identified Program risks and the control measures. An Internal Audit has been added to the Efficiency and Effectiveness Program s competencies and deliverables. The Internal Audit Plan which will add value to and improve the organisation s operations. Ultimately, the audit findings will create scope for possible Continuous Improvement initiatives within the organisation. Proposed areas for audit include the following. Compliance Audits Strategic Audits Internal Financial Controls Strategic Planning Alignment Conflict of Interest and Gifts and Review Asset Management Plan and Benefits Long Term Financial Plan Assumptions Procurement Optimum level of Borrowings Payroll Efficiency and Effectiveness Program ICT Penetration & Vulnerability testing Contract Management Capital Works Program ICT Business Continuity/Disaster Recovery Plan Appointment of authorised officers Delegations Parking Infringements Rating Procedures APPENDIX 3 Efficiency & Effectiveness Mid-Term Review At the half-point of its scheduled lifespan, the Efficiency and Effectiveness Mid Term Review has been undertaken to align the program to the current organisational strategic intent and circumstances. The review outlines possible approaches to transform Efficiency and Effectiveness into business as usual by means of Continuous Improvement principles. This will be a core focus of the next 2 years of the program. This skillset and accountability to deliver savings originating from Continuous Improvement will primarily reside at the Service and Practice Level. Therefore the skills and training development will primarily occur at these levels. All Levels of Work (LoW) will require an understanding, and using the language of both Continuous Improvement and Requisite Organisation is critical for effective staff engagement. Baseline data has been collected from the below channels to ensure the Program addresses critical business needs in the coming years. 3.1 Continuous Improvement Roadmap A Continuous Improvement Roadmap has been designed to create capacity to deliver on the Continuous Improvement targets. 7

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9 3.2 Value Coherence Value Coherence is an organisational wide toolset to ensure that the intent of the organisation lines up with the actions which deliver value to customers. The focus is on creating clarity and consistency of customer outcomes and ultimately this leads to an organisation that is less wasteful and able to deliver more value at a lower cost. The Efficiency and Effectiveness team, with external assistance, have created visibility of the current state and are developing an action plan to address the gaps. These actions will vary in size and complexity and will be incorporated into existing delivery mechanisms where relevant such as the strategic plan implementation, lighthouse projects or the Efficiency and Effectiveness Program. 3.3 Process Enterprise Maturity Model Playford s Efficiency and Effectiveness Program is entering a critical stage of progress, where improvement targets have been assigned out to the individual Business Units. With the support of the Efficiency and Effectiveness Team, the business will be accountable for identification, design and delivery of improvement opportunities. Looking specifically at organisational structure and skills, a Process Enterprise Maturity Model (PEMM) assessment gives context to the progress and identifies areas for further improvement. The overall assessment indicates progress typical of a top-down process program. That is, Organisational Maturity (driven by senior management) is higher than Process Maturity (driven by frontline managers and staff). 12 months ago the picture would have looked different, with lower maturity from an organisational perspective this confirms the progress of the Efficiency and Effectiveness Program and Requisite Organisation principles. Organisationally the stronger elements are Expertise and Leadership. While this could be expected given the presence of the Efficiency and Effectiveness team and leadership commitment to stretch targets, it is a positive confirmation that the right disciplines are beginning to fall into place. From a Process perspective things are less mature and this is probably indicative of the current stage of the Program. To date most focus has been on establishing frameworks but the program is at a pivot point and is poised to focus on Continuous Improvement initiatives over the coming year. This renewed focus is very likely to have the effect of maturing the process orientation of frontline managers and staff. The most significant areas for improvement are Process Ownership and Metrics. This must be supported by appropriate ICT Infrastructure and the HR systems will likely benefit from a relatively basic repositioning to take a process perspective. 9

10 APPENDIX 4 Program Governance An internal governance structure (Figure 5.1) is in place to provide strong accountability and ensure plans and progress are scrutinised by individuals that are not directly accountable for the delivery of the individual projects. This is to be further strengthened by the role of an independent audit of savings, benefits and progress. Council Corporate Governance Committee Executive Group Program Board Chair: Tim Vonderwall Rosemary Munslow Georgia Heath Jonathan Roberts Chad King Valerie Lux Sam Green Effrim Volkoff Michael White Program Board Chair: Tim Vonderwall Program Manager: Valerie Lux Core Program Team Business Unit activities to deliver on savings targets Multi-year projects already underway High Level Savings Opportunities (to be identified) Continuous Improvement Initiatives Figure 5.1: Efficiency and Effectiveness Governance Structure April 2014 Based on their responsibilities to review and make recommendations to Council on finances, comment on risks and financial sustainability, and other significant financial matters relating to the Long Term Financial Plan; The Corporate Governance Committee acts as an advisory body to the Program steering committee, whilst the Council will continue to be the ultimate approver and sponsor of the Program. 10

11 Figure 5.2: Efficiency and Effectiveness Target Savings Accountabilities and Support Governance Forums Whilst projects and other improvement initiatives are be delivered from within the business, the Efficiency and Effectiveness Program Board oversees project delivery and Continuous Improvement initiatives to ensure the following controls are utilised effectively: Scheduling Reporting Risk Management Communications Benefits Realisation Investment Resourcing Program Reporting To ensure that each project is communicated with stakeholders appropriately and reviewed to ensure delivery on relevant KPI s and targets, the following reporting schedule will apply to across the Program. A number of internal management processes will be used in addition to the public reporting as detailed below: Report From Report To Frequency Format and Context SRO (Senior Responsible Officer)/Chair, Tim Vonderwall Corporate Governance Committee Quarterly Verbal update on Program progress, (supporting reports/documentation provided as required) SRO/Chair, Tim Vonderwall Council Quarterly Written report on Program finances, risks and overall progress. Project Lead Council Quarterly Written prudential report on Program finances, risks and overall progress. (As per prudential management framework). Figure 5.3: Program Reporting Schedule 11

12 APPENDIX 5 Program Status The table below outlines the entire projects, initiatives and tasks undertaken under the Efficiency and Effectiveness Program to date. These projects focused on embedding efficient and effective operations into the organization. As the Program enters into Year 4, projects will be finalised as the Program moves toward a continuous improvement approach. Projects Category Outcome Year 1 (FY2011/12) Management People Development & Creation of four Business Units Restructure Paperless Office New & improved systems Feasibility study InfoCouncil New & improved systems Automated, integrated tool for creation/ storage of Council agendas and minutes iboss New & improved systems Implementation of the OneCouncil integrated software solution Year 2 (FY2012/13) Service Standards GoMAD Working Better Together Planning & Building Project Management Review Technology Services Review Finance Review NAWMA Efficiencies Procurement Review Stores Review Year 3 (FY2013/14) Service Standards Phase II GoMAD Phase II People Development & People Development & New and improved systems Reviewing how we procure Reviewing asset management Documentation of current and determination of aspirational Service Standards for external services piloted in City Operation Initiative to capture bottom-up improvements design and rollout Implementation of City Presentation Improvement Program Design of a process improvement plan based on lean methodologies Design of an organisational Project Management Framework for asset based and non-asset based projects Alignment of resources to new organisational structure and requirements Alignment of resources to new organisational structure and requirements Increased operating efficiencies through contract negotiations Development of Strategic Roadmap and Resource Plan as methodology to improve procurement practices Comprehensive audit of all inventory items to reduce obsolete stock and wastage Organisation-wide documentation of Current Service Standards and determination of Aspirational Standards Refinement of the framework. Further training and support for staff. 12

13 Planning & Building Review City Operations Excellence Program Project Management Review Facility Operational Review Re-Imagining Customer Care Enterprises Business Program Fees and Charges Review Zero Based Budgeting Library Service RFID Technology Project Enterprises Business Program (Procurement) Infrastructure Stockpile People Development & People Development & People Development & New and improved systems New and improved systems New & improved systems Reviewing how we procure Reviewing asset management Contributed savings to E&E Program Implementation In progress Sustain and increased benefits from Working Better Together Implementation In progress Review facilities management Improve two-way communications between Council and customers Creation of technology and processes for customer-centric service delivery model Eliminate the BU s reliance on direct funding from rates Deliver commercially oriented BUs within Enterprises Reviewed fees and charges model Implementation of Zero Based Budgeting process Implementation of RFID Technology in Library services Procurement savings identified Improve use of road and footpath wastage to generate revenue & reduce capital cost Year 4 (FY2014/15) Finalisation and Continuous Improvement Service Standards Organisation-wide documentation of Current Service Standards and determination of Aspirational Standards GoMAD GoMAD program embedded into the business Re-Imagining Customer Care People Development & Implementation of the customer care ethos Enterprises Business People Development & Implementation of the enterprises model Program Fees and Charges New and improved Reviewed fees and charges model Review systems Library Service RFID Technology Project New & improved systems Implementation of radio frequency identification capabilities Enterprises Business Reviewing how we Procurement savings achieved Program (Procurement) procure Infrastructure Stockpile Reviewing asset management Re-utilisation of building waste materials Program Management E&E 5 Year Benefits Independent Change 13

14 Program Plan Realisation Framework Audit Management Year 1 (FY2011/12) Year 2 (FY2012/13) Year 3 (FY2013/14) Information provided to review Council s LTFP 2012/13 5 Year Plan Outline updated 5 Year Plan Outline updated Development of mechanism to identify, analyse, measure and capture benefits Implementation and refinement of the framework Implementation and refinement of the framework - - Engagement of an independent Auditor to provide additional assurance and performance improvement areas Full audit for FY 2012/13 scheduled Development of Framework focussing on embedding standardised stakeholder engagement and communication plans Integration with Project Management Framework Roll-out 14

15 APPENDIX 6 Program Risk Profile Below is a table that outlines some of the current risks associated with the ongoing success of the Efficiency and Effectiveness Program. Risk Explanation Risk Level Program perceived as temporary initiative Accountabilities for E&E Organisational buy in The program can be perceived as an initiative ending after its initial 5 Year lifespan, rather than a new cultural approach to Continuous Improvement Consistency of who is accountable to E&E. Efficiency and Effectiveness is still not embedded into the culture at the City of Playford. Low Medium High Organisational capacity for E&E Understanding of E&E Sustainability of Continuous Improvement culture External threats A focus on Continuous Improvement generally is not consistent. The organisation does not have capacity to deliver E&E or continuous improvement in a Business as Usual environment yet. There is still confusion in pockets of the organisation about what E&E means, and why we are doing it. Concerted effort to ensure the sustainability of Continuous Improvement Other priorities and areas of focus can impact Efficiency and Effectiveness. Maintaining E&E as a priority with stakeholders can be swayed. Medium Medium Low Low The Efficiency and Effectiveness Program must be flexible due to the length and breadth of its external environment. 15