LONDON BOROUGH OF WALTHAM FOREST

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1 LONDON BOROUGH OF WALTHAM FOREST Meeting / Date Cabinet 10 th February 2015 Report Title Cabinet Portfolio Digital and Business Support Services Councillor Loakes, Portfolio Lead for Operations, Deputy Leader and Cabinet member for Environment Report Author/ Contact details Sally Hodgson, Director of Customer and Business Operations , sally.hodgson@walthamforest.gov.uk Wards affected Public Access Appendices All OPEN 1. Digital Customer Service model and programme summary 2. Digital inclusion/exclusion evidence summary 3. Equality Analysis 1. SUMMARY 1.1 Two key workstreams within the Redefining Waltham Forest Programme, Digital Services and Business Support, are now largely ready to progress on to full implementation following extensive work to develop sound business cases and new operational models. Both workstreams aim to both deliver service improvements and significant savings. 1.2 This report seeks Cabinet approval of the resources required to progress on to implementation. The total investment required by both workstreams is a maximum of 5.9m, which will deliver ongoing annual revenue savings of 5.3m. 2. RECOMMENDATIONS 2.1 For the reasons set out in this report, Cabinet is asked to: a) Agree the adoption of the proposed model for Digital Customer Services as set out in Appendix 1. b) Agree the continued investment in Business Support and Digital Customer Services up to a maximum of 5.9m in the financial years 2015/16 and 2016/17 from the Budget Reserve.

2 c) To delegate the approval of individual projects or contracts within the Digital Customer Services Programme and Business Support (agreed at 2.1(a)) to the Director of Operations in consultation with the Deputy Leader and subject to the agreement to the release of funds at (d). d) To delegate authority to the Director of Finance in consultation with the Deputy Leader to release the investment at 2.1(b) to fund the decisions at 2.1(c). 2.2 Cabinet is asked to note: a) It is intended that Digital Customer Services and Business Support will deliver annual savings to the Council of 5.3m (net of ongoing costs). b) An Assisted Digital Service will be put in place to mitigate the risk of specific groups being excluded by the move to digital services. This will include face to face support, telephone contact and supporting customers to learn the skills they need to get online and self-serve in future. 3. PROPOSALS 3.1 The Digital Customer Service Model has been developed over some time, and follows on from the initial Residents First Strategy agreed by Cabinet in March This ongoing development and delivery is now part of the Redefining Waltham Forest programme. Both the digital services and business support workstreams within the programme seek to deliver service improvements and significant savings. 3.2 The following future models for digital access for customers and internal Business Support functions have been formulated: Fundamentally Digital is about responding to customer expectation by improving, modernising and broadening access to council services. This will enable customers to opt to use (lower cost) digital channels to access council services, while retaining assistance for those unable to do so. Business Support is about creating a single professional and highly effective support service to the whole Council and transforming the way administrative services are delivered. 3.3 Some previous related customer service developments have already been implemented including: a) the recent closure of the Customer Service Centre in Hoe Street and reprovision of services online, at the contact centre and Library Plus; and b) the refurbishment and redesign of services at Leyton library and ongoing work at Leytonstone as part of the Library Plus Improvement Programme for Leyton, Leytonstone, Walthamstow and Chingford.

3 3.4 Each development has been made following appropriate consultation prior to approval and each aims to contribute to the Council s objectives in respect of transformation, service delivery and value for money. 3.5 The Digital programme has drawn on information and research showing a rising trend towards use of digital channels. 3.6 Detailed design work has been undertaken across all Council services, referencing experience in other authorities and consultation with relevant colleagues throughout the process. This is reflected in the specific digital design for each individual service as well as the Council s overall design. Built into the proposals is the concept of Assisted Digital whereby people who need assistance to access services digitally will be supported by Customer Service, including staff located in libraries, as well as partners such as Ascham Homes. 3.7 Both the Digital Services and Business Support workstreams have now reached a similar stage where significant operational and technology development is required to implement the planned changes and deliver the full service and associated financial benefits. 3.8 This report provides an estimate of the benefits and the investment required. Due to the urgent need for the Council to deliver savings, this estimate will be refined during the early stages of implementation and finalised by March The financial position is set out in paragraph 7 below. 3.9 Successful delivery of both the service improvements and financial benefits will require significant investment in both skilled resources and new technology. Further details are set out within the Implications section of this report. 4. OPTIONS & ALTERNATIVES CONSIDERED Service Delivery 4.1 The primary alternative would be to continue delivering services using the current model, effecting efficiencies and modernising incrementally. However, this would not deliver significant savings in the timescales required; nor would it bring access to Council services in line with the digital channels that residents increasingly expect to use. Joint Programme Implementation 4.2 Successful delivery of both workstreams is to some extent interdependent. They have similar operational goals of using technology to support more efficient processes and self-service. They willalso affect some of the same staff groups and customers throughout all directorates. 4.3 Officers therefore consider that joint implementation would offer the best way to ensure the most effective delivery at the lowest cost by sharing implementation resources in respect of management and technology.

4 5. SUSTAINABLE COMMUNITY STRATEGY PRIORITIES (AND OTHER NATIONAL OR LOCAL POLICIES OR STRATEGIES) 5.1 The digital and business support workstreams are key elements of the Redefining Waltham Forest programme, which has been established to ensure that the Council can continue to deliver on residents priorities while making significant and on-going reductions in expenditure. 5.2 In addition, the digital services workstream is aligned to the priorities and deliverables included in the Council s Residents First Strategy, which Cabinet agreed in March CONSULTATION Staff Consultation 6.1 The majority of the savings requirements will be delivered from headcount reductions as the digital agenda enables residents to directly access the services they require and business support will enable services to become more efficient. This will reduce the need for those posts currently undertaking such roles. As new services are rolled out and the specific effects known on areas of the council then any such reduction will be subject to the necessary consultation with the staff and trade unions at that point. Public Consultation 6.2 As the strategy is implemented, appropriate public consultation will be considered on a case by case basis and carried out as appropriate (see para 7.2.2). 7. FINANCE 7.1 Value for Money and Risk As part of the development of business cases for both Digital Services and Business Support, detailed analysis of savings and potential implementation costs were undertaken and are summarised within Table A for Digital Services and Table B for Business Support. For digital some of this work is still to be completed (see para 7.1.4) For Digital Services, total annual savings of 3.6m ( 3.3m net of ongoing costs) are currently forecast to be achieved by 2017/18 with an investment of 4.9m. This investment will generate a payback within two and a half years.

5 Table A - Projected Costs & Benefits for Digital Services 2015/ / /18 Total Gross Savings 383,377 2,379, ,455 3,576,694 FTE Reduction Ongoing costs (including Technology) (18,641) (103,325) (202,800) (324,766) Net Saving 364,736 2,276, ,655 3,251,928 Implementation Costs Technology (1,770,657) (391,458) - (2,162,115) Project Resources (2,263,675) (487,100) - (2,750,775) Total Implementation Costs (4,034,332) (878,558) - (4,912,890) Cumulative Savings MINUS ongoing costs 364,736 3,006,009 6,460,737 Payback (Cumulative Net Benefit) (3,669,596) (1,906,881) 1,547, The Digital Services Technology paper presented and agreed by Cabinet on 20 th January included the recommendation to replace the current technologies (i.e. CRM, Public Website, Portal & MyPlace) for digital services with a new managed solution. This paper also included the recommendation to provide funding of 700k from the Budget Strategy Reserve, which will enable this solution to be brought in line with the current digital offer as well as prepare for the requirements set out in the Digital Services Business Case. This new solution to deliver digital services has also delivered a capital saving of 1.4m which has been incorporated in this investment requirement These forecast savings are still being ratified within some service areas (see para 3.8) and any amendments will be incorporated and reported to both the Digital Services and Business Support Board, Redefining Waltham Forest Programme Board, and Portfolio Leads respectively For Business Support, total savings of 2.1m ( 2m net of ongoing costs) are currently forecast to be achieved by 2016/17 with a required investment of 969k. Therefore the payback period is less than 1 year. Table B - Projected Costs & Benefits for Business Support 2014/ / /17 Total Gross Savings 112,667 1,269, ,187 2,077,449 FTE Reduction Ongoing costs (including Technology) (64,021) (64,021) Net Saving 112, ,269, ,166 2,013,428 Implementation Costs Technology (210,445) (210,445) Project Resources (758,325) (758,325) Total Implementation Costs - (968,770) - (968,770) Cumulative Savings MINUS ongoing costs 112,667 1,494,928 3,508,356 Payback (Cumulative Net Benefit) 112, ,158 1,108,679

6 7.1.6 The savings proposals presented to Cabinet in September 2014 for Redefining Waltham Forest included 4.8m for Digital Services and 2.3m for Business Support and were based on outline business cases. The savings included in Table A for Digital Services are based on a detailed analysis of current processes within service areas and the potential opportunity from implementing agreed digital opportunities. Further opportunities will be considered to achieve the shortfall of 1.8m. The profile of savings, in particular for Digital, will also be reviewed to consider what can be brought forward, in conjunction with the procurement of the new supplier for developing digital services.. The savings profile assumes that the necessary resources are in place to deliver the programme from the end of March and this includes the cost of resourcing an External Partner (Digital Services & Business Support). The procurement of the latter is included in a separate paper to Cabinet today. 7.2 Legal Section 1 of the Localism Act 2011 gives local authorities the power to do anything that individuals may generally do (the general power of competence). This power enables the Council to proceed with this proposal to enhance the way in which it provides customer access to services Cabinet is being asked to agree a proposed model for Digital Customer Services. Any actual changes to Council services that arise from implementation of this model will be subject to consultation with staff and service users / residents as appropriate and a consideration of the Council s public sector equality duty so far as it affect the discharge of Council functions Cabinet may delegate its decision making powers including key decisions. Where delegated decisions are key decisions, the access to information rules that apply to this type of decision will need to be complied with, including 28 days public notice of the decision via the Forward Plan. 7.3 Equalities and Diversity The Council must have regard to its public sector equality duty (PSED) under s.149 of the Equalities Act An initial Equality Analysis has been conducted which can be found in Appendix 3, a summary is provided below Due to the nature of the Digital Services programme some equality groups will be affected i.e. potentially digitally excluded. In order to mitigate against this, a supporting service Assisted Digital will be put in place at the same time. This service will provide support, and increase the confidence and capability of customers and specifically those in the equality groups that will be impacted.

7 7.3.3 Data from the Resident Insight Survey and other sources has been used to understand people s internet access and usage and the success, or otherwise, of the existing website; our approach to implementation will have a strong focus on user experience Appendix 2 provides a summary of digital inclusion/exclusion specifically as it relates to Waltham Forest. The council has evidence that there is an increasing uptake of digital technologies 92% of people in Waltham Forest currently use the internet, 91% have access at home and 52% also use the internet at work, their place of study or elsewhere (Resident Insight Survey, November 2014). There is also evidence that whilst the majority of residents contact the council by telephone (74%), more residents now choose to contact the council by or by using the website. Just 3% of residents use face to face contact, for example by visiting one of the council s offices (Resident Insight Survey November 2014) As a result of the initial Equality Analysis further research will be conducted with the equality groups that will be impacted. This will enable the Council to incorporate the results into the Assisted Digital service and tailor the support provided to these equality groups The Digital Services programme team will continue to monitor data from the Resident Insight Survey in relation to key equality characteristics and take action as necessary. 7.4 Sustainability (including climate change, health, crime and disorder) Not Applicable. 7.5 Council Infrastructure The main implication arising directly from this report for infrastructure is that some of the current technology will be replaced. Over time, we will need fewer places where face to face access is provided to deliver Council services; office accommodation will be released as fewer staff are required. BACKGROUND INFORMATION (as defined by Local Government (Access to Information) Act 1985) Description Public or Exempt 01. Residents First Strategy. Cabinet 12 th March 2012 Open 02. Digital Services Technology, Cabinet 20 th January 2015 Open 03. Resident Insight Survey 2014 Open