TGov Expo Spring 07 Transforming Local Government

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T-Gov Expo Spring 07Transforming Local
Government
Implementing Varney in Local Government Julian
Morley, Director SWCoE 18th April
2007 http//www.rcoe.gov.uk/
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Objectives

• Recap Varney
• Understanding what customers want
• Business Transformation
• Why is it all so difficult?
• Where do local governments RCEs fit?

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December 2006 the Varney Report

• Service Transformation a Better Service For
  Citizens and Businesses, a Better Deal for
  Taxpayers
• Develop a change of circumstances service
• Starting with bereavement, birth and change of
  address by 2010, so that citizens don't have to
  notify multiple public services
• Single information and transactional websites
• Providing citizens and businesses with access
  through Directgov and Businesslink.gov
• Improve public sector contact centre performance
• Including reducing operating costs by 25 per cent
  to release 400 million
• Develop a cross-government identity management
  system
• Enable greater personalisation of services and to
  reduce duplication across government.

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Customer-facing, but what do customers want?
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What customers want is relatively simple

• To get to the answer you must put yourself in
  their shoes
• What problems plague their lives?
• What are they afraid of?
• What are they angry about?
• Who are they angry with?
• How does your service solve their problems? How
  does it make their life better?
• Once you have the answer, the process that
  delivers these benefits must be
• Easy to use (single point of entry, phone number
  etc)
• Consistent and predictable
• Good value

And, even better than that..
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.if you give your customers the service that
that want it will cost you less!

• A few examples
• Right first time planning applications
• Accurate benefits applications at point of entry
  to system
• Single point of entry for address details
• Shared address and key personal information
• Walk-in centres, situated where your customers
  can get to them (eg. libraries)
• etc

Fantastic, whats the catch?
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• There isnt one

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So . why doesnt it happen?
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Business Transformation is complicated
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Top reason why business transformation doesnt
happen, is it..

• IT applications?
• IT infrastructure?
• Anything to do with IT?
• Poor business processes?
• Incorrect strategy?
• Poor organisational design?
• Capacity to management change? Skills?
• Poor partnership working or inability to share
  services?
• Lack of performance management and adequate
  targets?

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Lack of performance management and adequate
targets?
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• SWCoE senior officers questionnaire June 2006
• Numerous anecdotal evidence

Its culture
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The target culture - W.Demming versus J.Morley

• What gets measured gets done
• True, where you are trying to focus improvement
  or control a process
• But also, What gets measured get corrupted
• Share holder value, 48 hr waiting time for GP
  appointment
• ....... when the measures are linked to
  recompense or reward

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Low margin industries have a high ability to
change they have to, to survive
High margin / Low consequence
Defence subcontract
Pharmaceutical
Construction
Luxury Retail
Telecoms
Automotive
IT Hardware
Low margin / High consequence
Volume retail (FMCG)
Agile
Sluggish
Ability to change
Source SWCoE/RCE
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SWCoE were lucky enough to have Michael Watson,
VP Supply Chain at Avon Cosmetics address LA
Directors in the SW in June 06
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Michaels critical factors to successful business
transformation were very human and
down-to-earth

• Apply simple techniques
• Recognise the past
• Take time to listen and understand
• Avoid faceless change management workshops
• Drive the change
• Get a few of the right people in place in key
  roles
• Create a key vision of the future
• Set very bold goals
• Never compromise to keep people happy
• But there have to be consequences for people who
  will not support the change

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The money bit is also hard for local
authorities, because its the people
Goods and services 33
Average local authority, non-educational spend
People and overheads 67

• Redundancy difficult?
• Natural wastage is it fast enough?
• Early retirement talent loss?
• Transfer the workforce to provide other services?
• For other authorities, for other public sector
  bodies?

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Business transformation is also complex
consists of many elements

Vision
Strategy
StrategyOutline Business Case, Options
Appraisal, Market Management
Business Case
Readiness Assessments
Implementation
Solution Design
Procurement
Review
Delivery
Transition
Local BPI
Programme ChangeManagement
Benefits Realisation
Skills, Knowledge Capacity
Workforce and organisational Development
Knowledge Information
Support Capacity
Source SWCoE/RCE Business Transformation
Guideline
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Top-six advice from the coal face of business
transformation

• Segment your customer and understand their needs
• Follow customer type, not transaction type
• Workforce development is key
• All employees should have a customer-facing
  experience (in a District Council?)
• Maximum 2 to 3 three years in any
  management-level job before rotating
• .. builds trust and understanding of other areas
  of the business
• Dont be seduced by the technically complex IT
  solution
• Is it for the convenience of the customer or the
  authority?

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Top-six advice from the coal face of business
transformation

• Understand your failure demand
• Ensure only accurate information is entered at
  customer front end
• Solve any failures as early in the process as
  possible
• Dont stint on the quality of front-line staff
• Ensure front-line staff have end-to-end
  responsibility
• Understand the benefit for the customer for each
  stage of your processes
• Versus cost for each step of the process
• Each hand-off creates inefficiency (eg front
  office to back office)
• Leadership
• Most major business transformation programmes
  have an energetic and passionate leader at the
  top

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Theme 1 The most expedient route benefits is
often through process optimisation
Increased efficiency
Degree of sharing of services
Starting point
Degree of business process optimisation
Within the context of a shared services strategy
and you must understand your own business
Source SW Centre of Excellence
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Theme 2 Customers have most contact with
district-type services

• Customers have most contact with district-type
  services council tax collection, refuse
  collection, street cleaning etc
• 70 of customer contacts with Local Government
  plc are for district-type services
• But these services only account for 15 of local
  authority costs in the SW
• Salaries, goods and services, not including
  education

Should performance improvement (aka non-cashable
savings) be the focus for district-type
improvement?
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SWCoE is developing two major areas to support
Business Transformation in the SW

• SW CTS Support Programme
• Preparation support for business transformation
• Standardised open source approach
• Aimed at providers, consultancies and authorities
• Focus on Business Process Improvement not
  necessarily shared services
• Skills development in business transformation
• SW CTS (ISiS) Framework Agreement
• Capitalises on the work of the ISiS Framework
  Agreement
• Funding for legal scalability and authority
  engagement
• 34 authorities registered interest, should be
  open to any authority in the SW

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The nine Regional Centres of Excellence still add
value to local authorities

• Collaboration
• Uniquely placed to bring together local
  authorities, the wider public sector and other
  partners to develop shared working.
• Accountable governance
• Owned by, hosted by and run for local government.
• Programme management expertise
• Complement existing capacity and can add new
  capacity
• Results focused
• Outcomes matter, not reports.
• Link to national programme
• Strong links to the other eight RCEs

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Implementing Varney in Local Government
Its culture