Due Diligence procedure for new prospects/services

Transcription

1 Due Diligence prcedure fr new prspects/services Versin: 2 Apprved by: Management Team Date Apprved: Name f riginatr/ authr: Assciate Cmmercial Directr Date issued: Nv 14 Review date: Oct 17

2 Due Diligence prcedure fr new prspects/services 1. Intrductin The Trust recgnises the imprtance f ensuring that all ptential new cmmercial ventures that are f interest t the Trust are capable f being fulfilled t a high standard if the tender is awarded and that all significant risks are identified and addressed. The prcess fr evaluating whether a tender is t be pursued must ensure that all subject matter experts are cnsulted at each stage, and their views and recmmendatins cnsidered and frwarded t the respective decisin making cmmittee s that a decisin can be taken in the best knwledge available at that time, r where knwledge is absent r limited, that a decisin t prceed is taken with any inherent risk understd. The prcedure sets ut the stages f bid develpment, and steps and stakehlders invlved. 2. Purpse This prcedure aims t: Outline the types f decisin cnsidered during the three stages f pursuing new prspects Describe hw the Trust btains all the necessary infrmatin t assess risks and identify mitigatins in rder t infrm whether r nt t pursue a prspect and t infrm implementatin Give assurance as t hw due diligence is captured at each stage f the develpment f a prspect 3. Scpe The prcedure is t be fllwed fr all new prspects; the apprach t which a prspect is scrutinised is cmmensurate with the financial and nn-financial risks identified by the Trust s subject matter experts. 4. Definitins A business prspect is an pprtunity t deliver a quality service in return fr net incme (including a surplus) t the Trust ver the lng term Due Diligence prcedure fr new prspects/services, v2, Nv 14 Page 2 f 11

3 5. Duties and respnsibilities in relatin t new prspects 5.1 Bard f Directrs The Bard f Directrs will decide whether majr prspects will be pursued based n the threshlds set ut in Standing Financial Instructins (SFIs). This will include taking accunt f the results f the due diligence prcess. 5.2 Chief Executive The CEO has ultimate respnsibility fr ensuring that apprpriate due diligence takes place. This is delegated t the Deputy Chief Executive and Cmmercial Directr fr thse prspects belw the Bard f Directr s threshlds as set ut in SFIs. 5.3 Cmmercial Directr The Cmmercial Directr is respnsible fr ensuring that all prspects are identified, evaluated, that finances are prepared, risks and mitigatins are identified, by wrking clsely with clinical leads and engaging directrs as early as pssible. 5.3 Directrs Directrs are respnsible fr the prvisin f subject matter expertise relating t new prspects t indicate feasibility f taking a prspect frward, in particular, risks and mitigatins. The cmmercial team will incrprate these pinins specialist knwledge frm cre directrates when making reprts t the respective cmmittee. 5.4 Health and Safety Managers The Gvernance and Risk Adviser will supprt the risk assessment f prspects. 5.5 The Directr f Finance The Finance Directr is respnsible fr prving an pinin n whether the prspect is likely t yield net incme (including a surplus) t the Trust ver the lng term. 5.6 The Cuncil f Gvernrs The Cuncil f Gvernrs must be cnsulted abut significant transactins (see Standing Financial Instructins). Due Diligence prcedure fr new prspects/services, v2, Nv 14 Page 3 f 11

4 6. Prcedure and its applicatin in practice There are three distinct stages in the develpment and subsequent implementatin f new prspects: prspect develpment; cntract mbilisatin; and service implementatin. The prcesses and cntrls in place fr each stage are described belw. 6.1 Prspect develpment The prspect develpment stage begins after an initial viability check is cmpleted by the Cmmercial Team. If a prspect is cnsidered t be, in principle, viable, it is sent by the Cmmercial Team t the relevant directr r assciate dean fr authrisatin t prspect develpment stage. The types f prspects cnsidered are: Invitatins t tender frmal cmpetitive bids fr services Trust innvatins Cmmissiner requests (typically extensins f existing services) Requests frm partner rganisatins. The primary task f the prspect develpment stage is t develp and submit a high quality prpsal that is in line with the Trust s clinical, cmmercial and strategic aims. As part f the prspect develpment, the Trust will cnsider, at a minimum, the fllwing areas: Clinical practice Estates and facilities HR Finance IT and infrmatics Infrmatin gvernance Clinical gvernance and the risks relating t each f the abve. The cmmercial team has respnsibility fr ensuring that all dcumentatin and intelligence n the bid is prvided t the subject matter experts within the Trust fr each f these areas, s as t ensure that their judgements are made based n the best available infrmatin. Subject matter experts will be asked t make an assessment f:- the current psitin f each f these areas (if the service is already being prvided); the changes we wuld wish t make; the feasibility and timescales fr achieving Due Diligence prcedure fr new prspects/services, v2, Nv 14 Page 4 f 11

5 these changes; risks alng with any mitigatin plans and the degree f risk the Trust culd tlerate. The Cmmercial Team have respnsibility fr cllating the infrmatin prvided by the subject matter experts, and will make a recmmendatin t the relevant directr r assciate dean. Fr bids belw the Bard f Directrs threshld, a decisin t prceed r nt t prceed will be made jintly by the Cmmercial Directr and relevant directr r assciate dean. 6.2 Cntract mbilisatin Cntract mbilisatin refers t the perid between ntificatin f award f a cntract and service g-live. The primary purpse f the cntract mbilisatin stage is t gain assurance that the prspect described in the cmmissiner s ffer dcumentatin is cnfirmed with by the Trust s subject matter experts, in particular:- any financial assumptins made during the prspect develpment stage are clarified and cnfirmed and that financial viability is assured any gaps in knwledge identified by subject matter experts are addressed all risk assessment are reviewed and updated the terms f any cntractual agreements (including leasehld agreements and SLAs) are reviewed and re-negtiated as necessary timelines fr service implementatin are reviewed and re-negtiated as necessary that an implementatin plan has been agreed with the respective directrs If assurance n these matters is frthcming, then a recmmendatin will be made by the Cmmercial Directr t the Chief Executive t sign the cntract. Fr large value cntracts, a recmmendatin will be made by the Cmmercial Directr t the Management Team fr the Chief Executive t sign the cntract. Where any gaps are apparent, these must be highlighted as risks t and decisin made t cntinue is made n the basis f fact. 6.3 Service implementatin Implementatin refers t the Trust s apprach t the prject management f the setting-up f newly cmmissined services, and / r expansin f existing services. Fr newly cmmissined services, implementatin cvers the perid frm ntificatin f award t apprximately 3 6 mnths after service g-live, and will ften run alngside the cntract mbilisatin stage. The actual length f this time will be determined n a prject specific basis during the scping phase. Service g-live refers t the cntractual start date f the service, and the implementatin cmpletin date is the pint at which the service is fully peratinal and able t deliver t the service specificatin. If these tw dates differ day 1 and mnth 1 plans will be develped t Due Diligence prcedure fr new prspects/services, v2, Nv 14 Page 5 f 11

6 supprt preparatins. At a minimum this will include the details f the interim gvernance, reprting and staffing arrangements which will be in place at day 1, and then mnth 1, f service delivery. The plans will be develped by the cre prject team (wrk stream leads; prject manager and prject directr). They will be made negtiated with, and agreed by the service lead (if different frm the prject directr); executive lead; and lead cmmissiner. The prject manager will develp a prject pack, tailred t the specific requirement, but at a minimum cntaining: Overview f prject wrk streams and key aims Detailed prject plan, including breakdwn f actins and milestnes Prject grup including prject rles, respnsibilities and reprting lines Reprting framewrk Risk lg The Trust s mdel f implementatin is structured arund the fllwing set f principles: Phased apprach Areas f wrk clustered int identified wrk streams Tailred t specific requirements Clinically led, supprted by a named prject manager r prject supprt fficer Clinically wned with a directr r assciate clinical directr identified as the service lead Each phase has specific aims and timescales that are designed t anticipate and respnd t ptential risks r threats t service delivery, and frm the building blcks fr the next phase. On cmpletin f implementatin, the named prject manager will prvide a frmal handver t the n-ging service delivery team. Due Diligence prcedure fr new prspects/services, v2, Nv 14 Page 6 f 11

7 Reprts t be Phase activities Phase 0: Scping Phase lead: prject manager Implementatin stage requirements Phase 1: Planning Phase lead: prject manager Phase 2: g-live Phase lead: prject directr Phase 3: Mnitring Phase lead: prject directr Phase 4: Cmpletin Phase lead: prject manager - detailed review f service specificatin and cmmissiner clarificatins - assess resurce implicatins - develp brad aims f implementatin - Identify prject grup Mgmt Cttee Prject verview cmmissiner apprved Initial risk assessment BDC / - finalise implementatin resurce (staff time & csts) - agree rles & reprting lines - develp detailed prject plan (actins & timelines) - develp prject reprting framewrk - develp risk lg Rles, budget, timelines BDC Risk lg Service lead/ BDC Prject plan Service lead/ BDC - prepare fr service g-live as set ut in prject plan - peratinalise service - develp day 1 and mnth 1 plans if apprpriate Prgress reprt Cmmissiner & BDC Risk lg Service lead/ BDC - review prgress - begin hand ver prcess - pick up utstanding areas f implementatin - mnitr recrding and reprting templates - establish cnfidence in systems implemented Cntract reprting Cmmissiner Prgress reprt BDC - cmplete a full peratinal, financial and cntractual handver with the relevant nging leads in each f these areas. Cntract reprting Cmmissiner Lessns learned BDC T ensure: T ensure: T ensure: T ensure: T ensure: - implicatins f service specificatin are fully understd - apprpriate expertise frm acrss Trust identified - rganisatinal and service risks are identified, dcumented and mitigated - full scpe f prject is understd, dcumented and planned fr - each wrk stream is develped in cllabratin with relevant Trust lead/expert - apprpriate resurces allcated - rganisatinal and service risks are identified, dcumented and mitigated - prject is delivered n time and n budget - patient and staff safety n service g-live - rganisatinal and service risks are identified, dcumented and mitigated - structures and prcess implemented are fit fr purpse - rganisatinal and service risks are identified, dcumented and mitigated - service is well embedded in existing rganisatinal structures - rganisatinal and service risks are identified, dcumented and mitigated

8 Implementatin rle Wrk grups are frmed t develp specific tasks r areas f wrk within a wrk stream, and will typically be cmprised f: the Wrk Stream Lead; subject area experts; clleagues frm clinical team; apprpriate external stakehlders. Wrk grup Wrk grup Wrk grup Wrk stream leads are part f the cre implementatin prject team, reprting t the Prject Manager. Wrk stream lead (cre prject team) Wrk stream lead (cre prject team) Wrk stream lead (cre prject team) Wrk stream leads are respnsible fr: develping wrk streams in line with agreed aims; crdinating and prgressing actins within wrk stream; identifying and reprting risk. Identified risks shuld be reprted t the Prject Manager and escalated t Prject Directr if required. The Prject Directr reprts t the service manager. The Prject Directr is respnsible fr managing the budget, and fr the delivery f the implementatin n task, n time and within budget. Identified risks shuld be reprted t the Executive Lead and escalated t the CEO as required. Cntract / Cmmissin er Lead Prject Manager (cre prject team) Prject Directr (cre prject team) The Prject Manager reprts t the Prject Directr and Business Develpment Cuncil (BDC). The Prject Manager is respnsible fr: prject planning; develping the aims f implementatin; and verall prject management t ensure that there is sufficient supprt in place fr implementatin t be delivered n task, n time and within budget. Identified risks shuld be reprted t the Prject Directr and BDC, and escalated t the Executive Lead as required. Sme services may require a Cmmissiner Lead. The Cmmissiner Lead reprts t the Cmmissining team and Prject Directr. The service manager has verall respnsibility fr ensuring alignment with Trust strategy and respnding t any significant risks t the Trust. The Cmmissiner Lead is respnsible fr managing the relatinship with the Cmmissiner, and cnsulting with the Prject Directr n all cntractual cmmitments that impact service delivery. Service manager Due Diligence prcedure Identified risks fr shuld new be prspects/services, reprted t the Prject v2, Directr Nv 14 Page 8 f 11 and escalated t the Service manager as required. Identified risks t the Trust shuld be reprted t the CEO and Trust Bard as apprpriate.

9 7. Prcess fr mnitring cmpliance with this prcedure Phase Task Evidence required Wh Prcess fr mnitring cmpliance Prspect develpment T decide whether a prspect is an pprtunity t deliver a quality service in return fr net incme (including a surplus) t the Trust ver the lng term Is there sufficient infrmatin available t make a bid / n bid decisin? And directr r assciate dean & Cmmercial Directr Or authrisatin saved in prspect flder in Business Develpment drive Or Are all risks identified; understd; mitigated/ tlerable? Strategic and Cmmercial Prgramme Bard Minutes f Business Develpment Cuncil Or Minutes f Strategic and Cmmercial Prgramme Bard Cntract mbilisatin T cnfirm that the prspect is as described in the cmmissiner s ffer and that a cntract can be signed by the Chief Executive Cnfirmatin f financial viability, n gaps in knwledge, risk assessments and mitigatin indicate n unmitigated cncerns, specificatins are updated and that the cntract dcument is fit fr purpse. Cmmercial Directr Minutes f cmmissiner cntract mbilisatin meetings If nt, are they still acceptable r

10 can they be renegtiated? And, Are all risks identified; understd; mitigated / tlerable? Service implementatin T ensure that the Trust is ready t deliver the service and that the service will meet the Trust s quality standards Is there sufficient resurce and planning in place t supprt implementatin? And Service lead(likely t be directr r assciate dean) Prject plan And Prject reprts Are the prject team rles agreed and understd? And Are all risks identified; understd; mitigated/ tlerable? 10

11 8. Assciated dcuments Current Annual Strategic Plan Risk Strategy and Plicy Risk Assessment Prcedure Infrmatin Gvernance Framewrk Infrmatin Asset Registratin Prcedure Privacy Impact Assessment Prcedure Business Develpment and Investment Cmmittee Terms f Reference Pricing Guideline Standing Financial Instructins