corporate peer review blaenau gwent county borough council feedback to cmt & executive 19 th...

Corporate Peer Review Blaenau Gwent County

Borough Council

Feedback to CMT & Executive

19th July 2013

Thank you!

Context

Blaenau Gwent faces a number of challenges:

• Improvement issues: – education– corporate

• Impact of benefits cuts

• Financial Pressures

What you asked us to do

To provide the leadership with:

• Assurance that what you are doing is making a difference; and

• Anything else you could/should be doing

This is not an inspection, this is about helping you to improve

Already a lot going on…

• Good progress around internal improvement activities and initiatives

• PwC and Peopletoo• Wales Audit Office• Estyn

• We have sought to avoid duplication, add value and, in particular, consider how the council is responding to emerging challenges, notably the increasing financial pressures for 2014-15 onwards

What we have done

Extensive examination of council documentation

Interviews and workshops with over 60 people:

• 9 Executive Members• 19 Non-Executive Members• 19 Officers• 4 Union Representatives• 6 representatives from Local/Regional Partners• 8 representatives from National Partners

• Limited time on site: distil and reflect back messages we heard from members, staff and partners

What we will do

• Feedback Session (today)

• Written Report in 4 weeks

• Ongoing advice and support where appropriate and requested – individually or corporately

Summary

• ‘English-style cuts’ – recent and revised financial projections of a possible 4% cut in 2014-15 and 2015-16 are a game-changer.

• These are not of the council’s making but compound the council’s existing challenges.

• Disproportionate effect on council given reliance on RSG, low reserves and council is the major employer in the area

• The worst case scenario is a possibility e.g. Detroit

Summary

The immediate priorities for the council therefore are:

1.To identify, risk assess, deliver and secure up to £10 million budget savings for the financial year 2014-15; and

2.To improve educational outcomes as quickly as possible

• For the moment, all other priorities are secondary.

• The 2 key priorities need to be addressed in order for Blaenau Gwent to survive into the next financial year and, in turn, provide some foundations to place the council on a more sustainable footing into the future.

Summary

In order to achieve those 2 key priorities, the corporate and political leadership need to demonstrate:

• Clarity of vision and delivery of outcomes • Strong leadership and good governance • Meaningful engagement with communities and

partners 1. Effective resource, risk and performance management 2. Effective use of your good staff

Within each, we have identified:

• Opportunities• Risks• Actions

1. Vision and Outcomes

Opportunities

• Single Integrated Plan has set broad authority-wide vision

• ‘Coalition for Change’ offers a new approach, renewed energy and focus…

• Some very good services achieving positive outcomes, for example planning, regeneration and social services

• Ambition and confidence around the Racetrack and the Works


Risks

• Overarching vision not communicated consistently

• Priorities therefore are not always consistently understood by everyone

• …Coalition for Change is a recent initiative, but awareness is mixed and communication not clear (e.g. it’s also known as the Guiding Coalition)

• Vision and focus diluted by complexity and number of initiatives and processes


Actions

• Focus clearly on limited number of key priorities for 2013-14: savings and education

• Clear communication and engagement strategy for council (councillors and staff), partners and public, focusing on:

– What are the key priorities and why– What we are doing about them– When we are going to do them– What do we need you to do to help

2. Leadership & Governance

Opportunities• Recognition that significant challenges are here NOW• Confidence within council that leadership can deliver

savings, some confidence that tough decisions will be made…

• Cinema seen as a seminal moment, tough political decision taken and demonstration that new models will be considered

• Capable and passionate individuals in both political and professional leadership positions; interim corporate appointments widely respected

• Member behaviour has improved significantly and sense of increased co-operation

• Scrutiny on better footing and has potential to make a difference…

• Council receptive to external challenge, support and working with others…


Risks• Lack of apparent urgency about the financial

challenges• Too much planning and process not enough or slow

implementation• Over-reliance on a limited number of key individuals to

both drive and deliver • Executive need to give more direction and shape to

Executive meeting• …Scrutiny not had opportunity to make effective

challenge as yet, arrangements need to be more member-led, proactive and timely. Some question scope for call-in due to process. Limited Executive-Scrutiny interface to date

• Confusion around accountability and governance in education with Commissioner role

• …Over-reliance and ‘dependency’ on external challenge and support


Actions

• Take urgent action now regarding financial decision-making e.g. implement already identified savings

• Ongoing and regular review of savings progress e.g. establish ‘Savings’ Sub-Committee of Executive – this could have independent external/WLGA challenge

• Ensure ‘Coalition for Change’ has clear accountability and governance arrangements

• Move from interim to permanent arrangements as soon as possible to provide continuity and stability and ensure no long term risk to social services


Actions

• Identify, develop and support internal talent as part of succession planning and also look externally where necessary

• Implement the annual review element of Performance Coaching process for Chief Executive and all CMT: providing clarity on key objectives, targets and personal development/support needs

• Review format of Executive meetings and reassert member lead role in council meetings

• Implement recommendations of (ongoing) internal evaluation of scrutiny

3. Engaging with Communities and Partners

Opportunities

• Council generally regarded as a good local partner

– Good consultation around SIP– Council does not try to dominate, but facilitates

partnership

• ‘Leading collaborative agenda’ - clear commitment to collaboration, numerous examples of council not only exploring but delivering collaborative ventures

• Cinema decision has redefined relationship with the community


Risks• LSB appears to focus more on strategy

rather than sharing and developing joint plans for savings

• Business engaged in projects but lack of engagement in strategic vision and LSB

• Some collaborative ventures have not progressed (social services – a cause of some internal tension) or are being reviewed (education)


Actions• LSB should focus on sharing and, where

possible, developing joint plans for savings and/or service reconfiguration

• Business sector approached to be lead partner in LSB

4. Resource, Risk and Performance Management

Opportunities• Council itself can and has identified a number

of opportunities for significant savings• Sense that there is a bottom-up process

where teams actively identify potential savings

• Confidence within council that PwC work will identify potential savings and may lead to a more strategic and sustainable operating model for council in future…

• Confidence in EAS arrangements• Widespread confidence that new corporate

processes (such as risk management, performance management and self evaluation) are showing signs of improvement


Risks• Unprecedented risk in terms of finance

– ‘unsustainable’ overspending, limited reserves and projected savings of £4.1m in 2014-15 are now estimated at £6m-£10m.

• Lack of apparent urgency and delay around managing overspend and implementing identified savings

• Double-whammy: decisions delay just as challenge doubles in size

• Medium Term Financial Plan (MTFP) hasn’t been updated to reflect new assumptions e.g. Corporate Overview and Scrutiny papers


Risks• No apparent action plan or timeline to make savings• Not clear to what extent comparative benchmarking

data is used e.g. Measuring Up data• Risk of financial pressures arising from Tai Calon

dispute• Some internal concern over consultants’ work

duplicating ongoing internal service review processes • Over-reliance on PwC work – it will identify some

savings and may develop more strategic and sustainable ‘operating model’ for council, but risk that the new model (Stage 3) is unlikely to be implementable or at least make a significant impact for 2014-15


Action

• Immediately produce an action plan and timeline for achieving savings

• Implement already identified savings immediately

• Update MTFP with latest assumptions, with clearer links to workforce development plan, asset management plan and corporate improvement plan

• Ongoing and regular review of savings progress e.g. establish ‘Savings’ Sub-Committee of Executive

• Plan for implications of PwC proposals – speak to councils where this has been implemented e.g. Coventry

5. Organisation and People

Opportunities• Committed and enthusiastic workforce• Standardising good practice across departments• Confidence in and energy from interim

arrangements…• Internal silos less prevalent - increased

corporate team dynamic, through mechanisms such as corporate improvement network

• Council regarded as a good employer• Constructive relationship with unions• Progress being made on internal savings e.g.

canteen and essential car user allowance


Risks• Communication and information internally and

externally – council doesn’t sell itself well• Lack of confidence displayed by some people• Perception of ‘no redundancies’ approach seen

by some as barrier to progress as is the generosity of redundancy package

Over-reliance on key individuals, 2 key issues: Overstretch and succession; and If they are the wrong people they can have

a disproportionate impact in hindering progress


Risks Corporate interim arrangements are short-term

and also place a knock-on risk to social services Plans and structures are being developed, but

Newport withdrawal from education could present a risk

HR capacity – mixed views : although plan is being produced for HR support to savings process, not all are confident that capacity and skills there.

Need for HR to re-focus away from current process


Actions• Move from interim to permanent

corporate arrangements as soon as possible

• Ensure HR capacity is ready for potential challenge of changes ahead

• Identify, develop and support internal talent as part of succession planning

• Implement recommendations of T&F Group Review of Communications and coordinate communications and engagement resources effectively

Conclusion

What is needed:

• Leadership

• Decisiveness

• Immediate Action

corporate peer review blaenau gwent county borough council feedback to cmt & executive 19 th...

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