An introduction to Bentley Jennison

1
VFM GERSHON

Caldric Randall Director - Government
2
Roadmap

• Efficiency Agenda Drivers
• Organisational Impact
• Barriers and Obstacles
• Delivering Efficiency
• Audits role?

3
Drivers

• Public spending review 2004 (Gershon Review)
• 20 Billion efficiency gains from the public
  sector 2007/08 using 2004/05 as a baseline
• 6.45 Billion from Local Government
• 50 from Police and Schools (Home Office Lead)
• 50 from core council services
• 5 efficiency year on year for three years in
  Local Government
• Different rates in other sectors but pressure!!
• 50 per annum must be cashable
• Requirement for annual efficiency statements and
  returns to be audited
• www.ogc.gov.uk

4
Drivers

• Local Government Finances
• Council Tax Pressure
• RSG pressure
• Other Government Initiatives

5
Drivers

• Inspection and Audit
• CPA and Use of Resources
• Use of Resources methodology being rolled out
• KLOE and Self Assessment guidance
• www.audit-commission.gov.uk/cpa
• Harder Test!

6
Drivers

• SO TWO INTERLINKING STRANDS
• Culture
• Numbers

Excellent Efficient Larger Organisations?
7
Organisational Impact

VFM
Economy
Efficiency
Effectiveness
Qualitative

Inputs
Outputs
Outcomes
Quantitative
8
Organisational Impact

• Cultural Change?
• Review of the efficiency statements indicates
  that the majority of savings have been made
  through budget cuts, this is not sustainable in
  the longer term
• There is a need to think radically to deliver
  sustainable change
• You fill up your own car at the petrol station,
  how can you apply that approach to local
  government services

9
Organisational Impact

• Excellent Efficient Organisation
• Strong and effective leadership (with a clear
  vision and strategy for delivering service
  improvement) and staff involvement at all levels
• A culture which is receptive to change, and
  encourages a can do attitude. Change is the
  norm
• A strong focus on the needs of the customer
• Good skills base
• Effective working relationships (both internally
  and externally with partner and other
  organisations)
• Data/information rich organisation
• Good governance arrangements
• An organisation which can balance potentially
  conflicting priorities
• Effective performance management
• Robust risk management arrangements
• Effective project management arrangements

10


Threat? Maybebut also Opportunity!!!
11
Barriers and Obstacles

12
Barriers and Obstacles

13
Barriers and Obstacles

• Three key things to get right
• Dont restrict your thoughts, be radical!
• The management of change is key
• Implementation planning

14
Delivering Efficiency

• Dont waste time where there is no room for
  improvement!
• Dont restrict your options
• Everyone owns the Efficiency Agenda

15
Delivering Efficiency

• Some Questions!
• What is your strategy for improving your
  efficiency?
• What mechanisms and tools do you have in place to
  deliver the strategy?
• How efficient is your council now and how do you
  know?
• Are you aware of best practice delivery?
• How are you monitoring and measuring movements in
  efficiency?
• What is your strategy for implementing change?
• How does this strategy fit with other plans for
  improvement?

16

17
Investigate and prove Corporate Efficiency
Evaluation
Strategy Development - Implement change programme
and deliver benefits
Detailed programme delivery plan
Assess
Develop Model
Benefits realisation
Review
Transform behaviours and culture
VFM Programme
Culture
Transform business processes
Processes
Measure and improve performance
Performance
Align programme to strategy
Communications
Action report
Quick wins
Action report
Interim Plan
Project closure
Benefit delivery
18
Delivering Efficiency

• Internal Solutions
• Stop doing it
• Statutory
• Discretionary
• Business Process Improvement
• Value Stream Mapping
• o       model for improvement
• o       capacity and demand analysis
• o       use of tools e.g. Value Stream Mapping
• o       implement evidenced based improvements
• o develop and empower innovation
  teams to re-think and challenge
• continuously existing process
  and systems, rulesetc

19
Delivering Efficiency

• External Solutions
• Partnership Working
• Inter authority
•         Strategic Partnership arrangements
•        Joint procurement
•        Lead authority
•        Shared service
• o       Joint Services Board
• o       Consortium
• o       Joint Venture Company
• o  Charitable Trust
• Private Sector (PPP)
• Outsourcing
• Insourcing

20
Delivering Efficiency

• Set out a clear strategy and stick to it
• Take an analytical approach dont waste your
  time!
• Work with others, Public and Private sector
• Project Management is key
• Measure and demonstrate the outcomes
• Take people with you!

21
Audit

• Two levels
• Corporate Arrangements
• Focus in audit reviews

22
Audit

• Transformational Change get these five right!
• Leadership
• Cultural Change
• Efficiency Identification
• Service Improvement
• Performance Management
• Good Corporate Governance?

23
Audit

• Internal audit reports should include
• an evaluation of the effectiveness of the risk
  management, disclosing weaknesses and
  non-effectiveness, over-control and poor
  value-for-money
• Ask yourself
• What is this area trying to achieve?
• How do the things they do contribute to it?
• Is the level of residual risk at the right level?
• How have they mitigate the risk that they are
  inefficient?
• What do other organisations that you know do?
• Think outside the box, look at it from a
  corporate level.

24
Delivering Efficiency

• Some Questions!
• What is your strategy for improving your
  efficiency?
• What mechanisms and tools do you have in place to
  deliver the strategy?
• How efficient is your council now and how do you
  know?
• Are you aware of best practice delivery?
• How are you monitoring and measuring movements in
  efficiency?
• What is your strategy for implementing change?
• How does this strategy fit with other plans for
  improvement?

25
Arrived!!

• Remember the two challenges
• Take the Opportunity
• Take People with you
• Think Radical no blinkers!!
• Audit reflect in your work

26
Questions?
Caldric Randall, Director 07887 542064 /
caldric.randall_at_bentley-jennison.co.uk

www.bentley-jennison.co.uk