PAGE: 1 REPORT TO: POLICY AND RESOURCES COMMITTEE ON 8 th OCTOBER 2013 SUBJECT: DESIGNING BETTER SERVICES PROGRAMME PHASE 3 (IMPLEMENTATION): PROGRAMME PROGRESS UP-DATE BY: CORPORATE DIRECTOR (CORPORATE SERVICES) 1. REASON FOR REPORT 1.1 The reason for this report is to provide an overview of progress and highlight achievements to date. 1.2 This report is submitted to Committee in terms of the following Sections of the Council's Administrative Scheme: A (2) relating to managing the finances of the Council, A (42) relating to the organisation and management processes of the Council, and A (55) relating to developing and monitoring customer access and information. 2. RECOMMENDATION 2.1 It is recommended that the Committee: a) approves the resourses required to take forward the DBS programme; b) approves the request for 43K additional capital to complete the enabling work for 9/11 North Guildry Street and Rose Cottage/YWCA buildings; c) notes that the increase in revenue costs of 18K for the maintenance work in 2.1.b above. Funding can be met from the wider corporate buildings budget, but will require minor adjustments to programming of other projects; d) notes the completion of the Annexe aspect of the Property Project and the lessons learnt; e) notes the removal of the Out-Of-Elgin Office Accommodation Project from the DBS programme; f) notes the change to the order of the Core Project tranches with Education and Children & Families Services moving ahead of Community Care; g) notes the financial benefits attributable to the programme;
PAGE: 2 h) notes progress and the risks being managed by the Programme Board. 3. SUMMARY OF THE REPORT 3.1 It has always been recognised that the scale and complexity of the Designing Better Services (DBS) programme would be a significant challenge to the council. Progress is reported to this committee every two/three months to keep members apprised of developments and the return on the significant amount of time and finance invested in the programme. The report is structured as follows: Section 4. Background reminder of component parts of the DBS Programme and associated outputs. Section 5. Headlines of the last three months. Section 6. A breakdown of the resources required to support the DBS programme until March 2015. Section 7. A request foradditional capital for the refurbishment of 9/11 North Guildry Street and Rose Cottage / YWCA buildings. Section 8. Closure of the Annexe element of the Property Project. Section 9. Out-Of-Elgin Property Project. Section 10. A general overview of progress of the DBS component projects. Section 11. This section includes a cost and benefits profile for the programme and highlights the red risks being managed by the programme board. 4. BACKGROUND 4.1 DBS Phase 3 (Implementation) is the realisation of the business case to deliver over 4M of recurring benefits by 2017. The implementation plan was last reviewed in March 2013 and amendments to timescale were agreed by this committee on 9 th April 2013. A review of the manpower required to take forward the programme was completed in August 2013. 4.2 The Community Care Redesign Project was added to the programme following committee approval in June 2011. The Procurement and Transport, Vehicles & Plant projects were noted as being successfully completed in September 2011 and May 2012 respectively. 4.3 The completion of 3 aspects of the Community Care Project have also been reported to committee. The management restructure in July 2012, reablement in April 2013 and the Day Care Service Review in April 2013. The remaining objectives will be achieved through the Core Project. 4.4 The remaining efficiencies, improvements and customer-focus benefits will be realised through a programme of work comprising three large, complex and challenging projects as follows: Core Project:
PAGE: 3 To establish a Customer Services section and transfer customer contact to this new functional unit. To develop on-line services. To implement an electronic document and records management system (EDRMS) to enable automation and reduce the requirement for paper records. The corporate management of current and closed paper records. To establish flexible working. To establish standardised and managed operational support functions (i.e. reduce the number of administration units) To deploy other ICT systems that will assist services to become more efficient and reduce the amount of office space required to deliver services. Property Project: To establish flexible accommodation to support new corporate services and new ways of working: o To convert the former supermarket into a HQ Annexe o To reconfigure the existing HQ building Establish soft facilities management (Soft FM) support To rationalise office accommodation out with Elgin Community Care Redesign Project: To implement scheduling system for HomeCare Staff Improve the ability to self-serve and self-manage To establish a single point of entry to community care services To establish an Access & Care Centre and single point for community care referrals 4.3 At every opportunity Members are reminded that the Corporate Management Team (CMT) recognise that lessons will be learned along the way and that the current plan reflects what we know at this moment in time. As our expertise develops there is greater certainty - this message was a caveat to the plan presented to this committee in March 2010, also with the amendments presented in March 2011, March 2012 and April 2013. The profile and timetable have changed since the plan was first presented. New projects have been added and timescales adjusted accommodating lessons learnt and other conflicting priorities. 5. PROGRAMME HEADLINES: JULY 2013 TO OCTOBER 2013 5.1 The summer period has previously presented challenges. This year, the availability of key staff during the holiday period was factored into project plans wherever possible. 5.2 A priority during this reporting period has been the development and acceptance of the SharePoint Design Standard. The culmination of 6 months work, the standard is the blueprint for moving forward and critical to the successful implimementation of the corporate EDRMS solution. It sets out the structure for going forward in tranches 6, 7 and 8 and highlights the changes required to the systems built in previous tranches, The plan for both aspects is now included in the programme profile.
PAGE: 4 5.3 The receipt of the excellent BREEAM certification and final payment for the Annexe building concludes a testing and protracted part of the Property Project. Moreover, whilst the refurbishment of the HQ building is now complete, the plans for the refurbishment of North Guildry Street and Rose Cottage/YWCA have been finalised. Furthermore, as well as a number of internal moves of staff about the campus, 11 staff (NEON) from New Elgin Annexe have transferred to the Annexe and Library. 5.4 The design phase for Corporate Services and Chief Executives Department (tranche 6) has been completed and the recommendations are with respective senior officers for approval before going out to consultation. In addition to DBS process recommendations, the report includes efficiencies derived from other opportunites identified and developed during the course of the design phase. This is an important milestone. The document sets out the work for the implementation phase. In anticipation of the approval, project and service staff are developing the implementation plan which will govern activities for the next 12 months. 6. MANPOWER REQUIREMENT DECEMBER 2015 6.1 The resource requirement to support the programme from April 2014 until December 2015 is detailed below. The table shows the breakdown of staff required to support the programme going forward, the shaded column is the resource required for the current financial year. The 110K pa reduction reflects both progress and the adoption of programme tasks as main stream business. The forecast for 2015 is based on a 9 month profile. The change in role of 2 support staff(annotated with * below) is a direct result of the development of the SharePoint Design Standard. The additional ICT staff remain crucial to the programme. The manpower cost of the programme for FY 2014/15 will be 570K pa. Not included is the considerable time required from the services areas going through the transition. Designation Grade Mar 2013 - Mar 2014 FTE Apr 2014 Mar 2015 FTE Apr Dec 2015 FTE Programme Manager 13 1.00 1.00 1.00 PMO 7 0.50 0.50 0.50 PMO & Project Admin Support 3 1.00 1.00 1.00 Core Project - HR Lead 11 0.74 0.00 0.00 Core - HR Support 8 0.50 0.00 0.00 Core - HR Support 10 0.20 0.00 0.00 Core Business Analyst / Tranche 7 Co-ordinator 10 1.00 1.00 1.00 Core Business Analyst / SP Support Team Leader & Implementation (Tranches 2 & 3/4)* 10 1.00 1.00 0.00 Core Business Analyst / Tranche 6 Co-ordinator 10 1.00 1.00 1.00
PAGE: 5 Core - SharePoint Team Leader Tranches 6,7 & 8) 8 1.00 1.00 1.00 Core - SharePoint Team (Implementation) (Tranches 6,7 & 8) 6 1.00 1.00 1.00 Core - SharePoint Team (Imp (Tranches 6,7 & 8) 6 1.00 1.00 1.00 Core - SharePoint Support Team(Imp) - Tranches 2 & 3/4* 6 1.00 1.00 1.00 Core - Customer Services (Imp) Tranches 2 & 3/4 6 1.00 1.00 1.00 Core - CAG/GIS Spt (Dev Svs) 6 1.00 0.00 0.00 ICT Officer (NDL Specialist) 8 1.00 1.00 1.00 ICT Officer (Design Authority) 8 1.00 0.6 0.6 ICT Officer (Generalist) 7 1.00 1.00 1.00 ICT Officer (Generalist) 7 1.00 1.00 1.00 Property - HQ Migration 10 1.00 0.2 0.00 Property Migration Support 2 0.00 34 days 0.00 FTE TOTAL 17.94 14.30 14.10 BUDGET TOTAL ( Gross) 680K 570K 375K 6.2 All current staff will remain on fixed term or temporary contracts for the duration of the programme. Backfill arrangements for secondees will still be required and aligned with programme timescales. 7. CAPITAL FUNDING - 9/11 NORTH GUILDRY STREET & ROSE COTTAGE / YWCA BUILDINGS 7.1 The report presented to the Committee on 2 July 2013 set out proposals for works to 9/11 North Guildry Street and Rose Cottage/YWCA buildings. The works proposed would provide accommodation for the Drug and Alcohol Team in 9/11 North Guildry Street, thus enabling the current lease of 252 High Street to be ended. Works to Rose Cottage/YWCA would would provide appropriate reception facilities for social work clients and enable the relocation of social work teams from 78 South Street and 6 Moss Street, thus enabling the disposal of these two buildings. The report provided estimates of these works. These were 150k capital costs (for DBS related works) and 70k revenue costs (for repairs and maintenance works). The report indicated that the cost estimates provided were based on initial drawings which required further work for completion. It was agreed that if costs were likely to exceed these estimates, a further report would be made to the Committee. 7.2 The detailed drawings have now been completed and have also been priced by Building Services. The prices received indicate that additional capital funding of 43k will be required. The increase in capital costs is due largely to additional works being included in the final drawings submitted for Building Warrant. The additional works arise from: more light fittings than initially assumed in the earlier drawings; and specialist requirement for acoustic partitions in interview rooms. 7.3 There is also a requirement for additional revenue funding for works deemed to be repair and maintenance. An additional 18k is required this reflects
PAGE: 6 the level of backlog maintenance for both buildings which it would be sensible to carry out whilst more major works are being implemented. The majority of these additional costs relate to 9/11 North Guildry Street due to the inclusion of additional decoration to the stair and the first floor of the building and a significant increase in the scope of electrical work on the ground floor to provide new energy efficient lighting. 7.4 To accommodate the increased scope of works, additional capital funding of 43k will be required. For revenue works, there is currently budgetary provision of 75k for works to office buildings. The additional 18k required could be accommodated within the wider corporate buildings revenue budget, through adjustments in programming to other projects. Should Committee agree the additional funding, it is anticipated that works would commence in October to both buildings, subject to Building Warrant approval with a completion date for 9/11 Guildry Street in December 2013 and for Rose Cottage/YWCA by early March 2014. 7.5 It is recognised that additional costs are unwelcome, however, the Committee is reminded that there were limited options open to the Council in providing more appropriate accommodation for the services proposed for these buildings. There is minimal impact on the overall programme business case. 8. CONVERSION OF THE SUPERMARKET ANNEXE BUILDING 8.1 A formal closing report is produced at the end of each major milestone of the DBS programme. The aim of the report is to provide corporate assurance, review progress against and viability of the business case, and inform future developments. The most recent report closes the work to convert the former supermarket into the HQ Annexe. The main report is in the Members Portal, the Executive Summary at Appendix 1. Members have been informed of progress through regular general DBS reports and briefings, and 2 specific reports to this committee in October 2012 and January 2013. 8.2 The report is is primarily an interim report as the true extent of success is the measure of the effect of the building on the overall programme outcomes. The review of the DBS programme is scheduled for late 2015. 8.3 The criteria for this interim report are measures of project performance against time, cost and quality. The conversion of a vacant supermarket into an Annexe to the existing HQ is just one element of a large Property Project. Together with the reconfiguration of existing HQ buildings, the aim is to develop an HQ Campus that provides approrporiate accommodation to support the council of the future. Taken together, the Annexe and HQ reconfiguration create the HQ Campus that supports 980 employees, the civic hub and a public access points. The aim is to replace leased and owned smaller offices. 8.4 The report is broken into 2 parts. Part 1 summarises the project and what has been achieved with cross-reference to the original business case targets charting the reasons and impact of any change to the plan. The problems arising with the contractor have previously been reported and are documented
PAGE: 7 in the closing report. The report also highlights the good practice and lessons to be applied to future work. 9. PROPERTY PROJECT CHANGE OF SCOPE 9.1 At the Programme Board meeting in July 2013 it was agreed that the Out-Of- Elgin Office Accommodation work would be removed from the scope of the Property Project. Capacity issues meant the project has been repeatedly deferred although remaining part of the DBS programme. 9.2 The Out-of-Elgin Office Accommodation aspiration had been part of the DBS programme since its conception. The vision is that all office functions would be provided in a standard way. These facilities would replicate what is provided in the Elgin Annexe customer services, meeting rooms and flexible office accommodation ensuring standardised and shared facilities across Moray. The next step in the process was to produce a business case and implementation plan. As a consequence of this work not being completed no financial benefits have been attributed to this element of the Property Project. 9.3 The Board agreed that the Head of Housing & Property would include office accommodation in her review of service provision in outlying areas. This review is being carried out under the auspices of the council s Asset Management Group and will be considered by that group at its meeting at the end of October 2013. 10. GENERAL OVERVIEW OF COMPONENT PROJECTS 10.1 The programme plan profile and the six-month core project profile are available at Appendix 2. Progress is reported as approximately 70% complete. 10.2 Core Project Six Month Plan (May to October 2013) 10.2.1 There has been good progress against the objectives with elements either completed or they remain on target. The conculsion of the EDRMS Design Standard now allows the team to determine the scale and the therefore plan for the retrospective work required in tranches 2 and 3/4. The conclusion is that the original 4 month timescale for this work is significantly underestimated. A revised plan has been developed for Project Board consideration and approval. 10.2.4 IDOX Implementation across Development Services IDOX is the EDRMs solution for Development Services with implementation the responsibility of the Head of Service. Development Plans, Economic Development, Development Management and Building Standards are all now live. Despite a few minor delays the completion date is still reported as December 2013. 10.2.5 Lagan Complete Tranche 3/4 & 5 This area is mainly on track apart from the Lands and Parks section. This aspect has been delayed whilst the services delivered were under review and because ICT staff have been diverted to address other high profile issues (GSX). This issue is currently being considered by the Project Board.
PAGE: 8 10.3 Core Project - Tranche 6 (Corporate Services and Chief Executives Department) The redesign work has now been completed and also includes additional opportunities identified by service staff. A report consolidating the redesigns will be approved by service managers and the changes consulted on with service staff. The report and the supporting documentation will be the blueprint for implementation and be included in the next report to this committee. 10.4 Core Project - Tranche 7 (Education & Childrens & Families Services) At the Programme Board meeting in July 2013, it was agreed that the DBS transition work planned for Community Care (Tranche 7) be deferred, and Education and Children & Families Services would be brought forward (previously Tranche 8). The pending integration with the NHS was acknowledged as considered to be a major risk to progress and benefits. Work has now started in the new areas with the gathering of essential data required for the design and implementation stages of the process. 10.5 Employee Portal Project The management of the project has now transferred from a DBS analyst to senior HR officer. The next milestone in the plan is the development of a proof of concept by ICT staff. Other priority work (eg. work resulting from the GSX audit) has now diverted key ICT officers away from the project and impacted on timescale. A revised plan will be submitted to the next Project Board for approval. 10.6 Community Care Redesign Project The homecare scheduling element of the project is on target and the system is currently being installed with user acceptance testing due to start. The service is currently in the process of installing a connector tool to allow the CareFirst system and the scheduling system to be linked, the cost of which is with the approved budget. 11. SUMMARY OF IMPLICATIONS (a) Single Outcome Agreement/Service Improvement Plan The DBS transition of services into the new ways of working (Core Project) will inform service improvement plans. (b) (c) Policy and Legal The DBS programme changes will reinforce compliance and improve performance Financial Implications The current profile is set out in the graph below. The arrow represents the current position. This has been revised to match to the current programme timetable and extended to 7 years to show the full year effect of all target savings. A detailed breakdown of the graph and supporting narrative is at Appendix 3.
PAGE: 9 (d) Risk Implications The current programme RED risk register is at Appendix 4. The register is reviewed on a 2-weekly basis and new uncontrolled risks escalated to the Programme Board. There are no new risks. Those considered high probabability/high impact remain the conflicting priorities at both Coporate and Service levels and the pull on critical staff; and staff failing to adopt new ways of working. (e) Staffing Implications The DBS business case assumes a total reduction in staff numbers through the transfer of tasks and establishing new ways of working. (f) Property The impact of the DBS programme on the Elgin property portfolio will be reported on 4-monthly basis. The next update is scheduled for December 2013. (g) Equalities Equalities assessments for each element of the DBS programme were completed during Phase 2 (Design). There are no equalities issues contained in this report (h) Consultations The Corporate Management Team (Programme Board), Senior Responsible Owners (SRO), Project Managers and the DBS aligned
12. CONCLUSION ITEM: 11 PAGE: 10 Principal Accountant have been involved in the compilation of this report. 12.1 The committee is requested to approve the 43K capital funding required to enable the works for 9/11 Guildry Street and Rose Cottage/YWCA. This is key to providing appropriate social care accommodation whilst reducing the number of council offices in Elgin. 12.2 The closure of the supermarket conversion element of the Property Project is a significant milestone. It is an important enabler for change, so the true success of the building can only be judged when the DBS programme is complete. Nonetheless, the council has learnt a number of important lessons along the way and credit must be given to the officers who managed the project during the later stages. 12.3 The changes to the scope of the Property Project and the order of the Core Project reflect the ever-changing environment and the need to continually review the plan for going forward. 12.4 The reduction in manpower resource to support the programme continues to reduce as the programme goes forward. The forecast for the next 18 months accounts for the closure of some projects and the adoption of HR support activities as mainstream business. Author of Report: David Morris, Senior Programme Manager - 3801 Background Papers: Held by author (DBS SharePoint) Ref: MP/LMS/941127 Appendices: 1. Executive Summary Convesion of Supermarket to Annexe Building 2. DBS Programme Profile as at 23 September 2013 3. Benefit Realisation Report 4. Programme Red Risk Register as at 23 September 2013