Annual Review and Refresh of the Strategic Self-Evaluation Framework
North Lanarkshire Council · 24 November 2022
Back to Audit and Scrutiny Panel — 24 November 2022 and its agenda
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref KH/SL Date 24/11/22 Annual review and refresh of the Strategic Self-Evaluation Framework From Katrina Hassell, Head of Business and Digital E-mail HassellK@northlan.gov.uk Telephone 07903 096 121 Executive Summary Members of the Audit and Scrutiny Panel will recall that to meet the Best Value duty the council must ensure arrangements are in place to secure continuous improvement in performance for all the functions and activities undertaken to deliver services and improve outcomes. Being self-aware and undertaking a structured programme of self-evaluation underpins the duty to secure continuous improvement, and good practice suggests local authorities adopt a single strategy for improvement when implementing self-evaluation. A single strategy for improvement is in place through the Strategic Self-Evaluation Framework and rolling Review Programme, which was reported to the Audit and Scrutiny Panel in September 2021. This Framework is specifically designed to be strategic but lite touch, and consistent but flexible to ensure that self-evaluation exercises are tailored to the service, function, project, or group being evaluated and designed within the context of that operating environment. The Strategic Self-Evaluation Framework is one of the six inter-related corporate frameworks designed to assess the success of The Plan for North Lanarkshire, while ensuring each stage of delivery towards achieving the overall vision is appropriately planned, guided, implemented, and governed. To ensure these frameworks remain aligned to The Plan for North Lanarkshire, each is on a programme for a regular review and refresh exercise. This report therefore updates the Panel on the achievements from the Strategic Self- Evaluation Framework rolling Review Programme for 2021 to 2022 and presents the refreshed Framework. As a mechanism that also helps the council to provide assurances that services provided represent value for money, are efficient and effective, and able to demonstrate Best Value, a corporate approach to Options Appraisal has also been formalised and included in the Framework attached. The rolling Review Programme for 2022 to 2023 is also set out in the attached to ensure the council continues to ensure a mechanism is in place to assess the council’s functions and activities and identify areas for improvement within the context of fulfilling the vision set out in The Plan for North Lanarkshire. Recommendations
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1. Background 1.1 Being self-aware and undertaking a structured programme of self-evaluation underpins the Best Value duty to secure continuous improvement. As such, self-evaluation continues to be considered by the Accounts Commission as one of the fundamental principles when auditing Best Value in local government. 1.2 The national Best Value guidance, updated in March 2020, includes a requirement for councils to be able to demonstrate that self-evaluation activity is rigorous and transparent. 1.3 The council’s commitment to self-evaluation and implementing the recommendation from the 2019 Best Value Assurance Report (BVAR) - i.e. improvement plans arising from self-evaluation exercises should include measurable actions and clear deadlines - is recognised by Audit Scotland in their Annual Audit Report for 2021/22 (due to be presented to the Audit and Scrutiny Panel in November 2022). This external assessment concludes that this BVAR recommendation is now considered complete. 1.4 The development of the Strategic Self-Evaluation Framework and rolling Review Programme - with the completion of six self-evaluation exercises during 2022 - provided the evidence to bring the aforementioned BVAR recommendation to its conclusion. These six exercises focused on: 1. The corporate project management model to ensure it remains fit for purpose and able to effectively support the wide range of projects essential to deliver on The Plan for North Lanarkshire. 2. The effectiveness of the arrangements for the North Lanarkshire health and social care Integrated Joint Board and identifying how well the Board is meeting its intended outcomes. 3. The council’s compliance with the CIPFA Financial Management (FM) Code. 4. The adequacy and effectiveness of the Corporate Management Team in terms of the revised arrangements and in managing strategic change. 5. The risk management arrangements for the DigitalNL programme and the risks themselves. 6. Whether the arrangements for the Data Governance Board adequately contributed to the achievement of the council’s vision as detailed in the Data and Information Management Strategic Roadmap. 1.5 Members will recall that the Strategic Self-Evaluation Framework is one of six inter- It is recommended that the Audit and Scrutiny Panel: (1) Acknowledge the refreshed Strategic Self-Evaluation Framework and rolling Review Programme and the purpose therein in terms of ensuring that self-evaluation identifies areas for improvement that contribute to achievement of the vision set out in The Plan for North Lanarkshire, (2) Are aware of the challenge and scrutiny role of the Audit and Scrutiny Panel in line with their responsibility to provide an independent review of the council’s governance, risk management, performance, and control frameworks. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements
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related strategic frameworks. The benefits to be gained by avoiding duplication and enhancing alignment across these frameworks are key to assessing the success of The Plan for North Lanarkshire, while ensuring each stage of delivery towards achieving the overall vision is appropriately planned, guided, implemented, and governed. 1.6 The six frameworks focus on ensuring a corporate one council approach in respect of Policy, Governance, Performance, Self-Evaluation, Project Management, and Demonstrating Improved Outcomes for Communities. To ensure these frameworks remain aligned to The Plan for North Lanarkshire, each is on a programme to undergo a regular review and refresh exercise. 1.7 This report therefore presents the Audit and Scrutiny Panel with the refreshed Strategic Self-Evaluation Framework and rolling Review Programme for 2022 to 2023. This aims to ensure the council continues to comply with the requirements of Best Value and Good Governance and, more importantly, ensures a mechanism is in place to assess the council’s functions and activities and identify areas for improvement within the context of fulfilling the vision set out in The Plan for North Lanarkshire. 2. Annual review and refresh of the Strategic Self-Evaluation Framework Framework 2.1 In its simplest form improvement starts with the question How well are we doing? Self-evaluation helps to answer that question and those that flow from it, i.e. • How do we know? - What evidence is there to support the view of how well we are doing? • How can we do better? - What are we going to do now? 2.2 The council’s Strategic Self-Evaluation Framework (included at Appendix 1) ensures a focus on these three questions. In doing so it also incorporates a degree of triangulation by including ways to cross check results from multiple sources. This aims to increase the reliability and validity of the findings, help to gain a wider understanding of complex issues, and ensure more complete results. 2.3 In this respect the incorporation of audit and inspection work - carried out by the various inspection bodies (e.g. the Care Inspectorate, HM Inspectorate of Education, Scottish Housing Regulator, etc), and recommendations arising from the external auditor’s Annual Audit Report (AAR) and Internal Audit programme of audit work - is a key requisite of any self-evaluation exercise the council undertakes. Non-negotiable standards 2.4 In line with the other strategic frameworks, the Strategic Self-Evaluation Framework adopts a set of five non-negotiable standards which are designed to ensure that self- evaluation exercises undertaken in line with the Strategic Self-Evaluation Framework rolling Review Programme are: • Aligned - to The Plan for North Lanarkshire so that improvement actions contribute to the achievement of the council’s long-term vision. • Consistent - so there is a clear understanding of the purpose and benefits of each self-evaluation exercise. • Transparent - ensuring that progress made against the implementation of the improvement actions is widely reported, understood, and acted upon.
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• In context - ensuring that self-evaluation exercises are tailored to that which is being evaluated (whether that is a service, function, project, or group) and designed within the context of that operating environment. • Balanced - to ensure any self-evaluation exercise undertaken is proportionate to the resources expended, outcomes expected, the scale of the service, function, project, or group being evaluated, and the associated risks. Assessment framework 2.5 The assessment criteria within the Strategic Self-Evaluation Framework aligns to the seven Best Value themes (noted below) and the national guidance which was updated in March 2020: 1. Vision and leadership. 2. Governance and accountability. 3. Effective use of resources. 4. Partnerships and collaborative working. 5. Working with communities. 6. Sustainability. 7. Fairness and equality. 2.6 The good practice statements within each of the Best Value themes (shown in Appendix A) form the basis for self-evaluation exercises undertaken across the council in line with the Strategic Self-Evaluation Framework and rolling Review Programme. 2.7 Where national audit and inspection frameworks already exist these inform the assessment framework for the self-evaluation exercise. This avoids duplication and ensures the council’s self-evaluation exercises are focused on gaps and what improvement is needed locally. Similarly where relevant good practice guides and/or checklists already exist (e.g. produced by the Improvement Service or Audit Scotland), these are taken into consideration and used or aligned accordingly. 2.8 Well-established principles from national self-assessment frameworks (such as those for European Foundation for Quality Management (EFQM) and Public Service Improvement Framework (PSIF)), have shaped the councils’ self-evaluation methodology. Key features of this are detailed within Appendix 1. This includes: • The role of a member of the Corporate Management Team as a Champion for each self-evaluation exercise. • The strategic oversight role of the Corporate Management Team. • The challenge and scrutiny role of the Audit and Scrutiny Panel. • Carrying out self-evaluations that include assessing the approach, its deployment, and the assessment and review processes. Rolling Review Programme 2.9 Appendix B outlines the rolling Review Programme of self-evaluation exercises to be undertaken from 2022 to 2023 along with indicative timescales. This programme will be updated as new evaluations are identified. 2.10 As Members will recall, the council was in year three of the five-year national Best Value Assurance Report (BVAR) review programme which concluded with publication of a positive report for North Lanarkshire in May 2019. Due to the impact of the pandemic, this national programme was expanded from five to six years and all 32 councils has now undergone the BVAR review process.
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2.11 A new national approach to auditing Best Value in councils comes into effect as part of the new five-year audit appointment term for the external auditors, i.e. from October 2022. The new approach will not see a repeat of the BVAR process for all 32 councils, rather the focus moves to the integration of auditing Best Value within each individual council’s external auditors Annual Audit Report (AAR) process. 2.12 The specific details around the external auditors annual audit plan have still to be finalised by the incoming Audit Scotland team, however early indications arising from the Accounts Commission’s workplan to 2024 report that: “From 2022/23, Best Value work in councils will be fully integrated with the annual audit and reported in Annual Audit Reports (AARs), including risk-based, follow up, and thematic Best Value work. AARs for each council will be reviewed by the Accounts Commission at least once over the five year appointment to provide the Commission with assurance on Best Value in each individual council. The Commission will use the Annual Assurance and Risks Report (AARR)* to identify thematic work for the coverage by all auditors in the following year’s audit”. [*The Annual Assurance and Risks Report (AARR) is the annual report from the Controller of Audit about the work undertaken by all council’s external auditors over the past year on the Commission's behalf]. 2.13 This means that the council will, in effect, undergo an annual assessment in terms of particular aspects of Best Value. As such, and considering that the North Lanarkshire BVAR is over three years old (and pre-dates the pandemic), it is important to ensure the council continues to be able to demonstrate Best Value and evidence this in practice. It is therefore the intent of the Corporate Management Team that a self- evaluation will be undertaken in 2022/23 that is in essence a Best Value follow up. Options Appraisal 2.14 As the Panel are aware councils must provide assurances that services provided represent value for money, are efficient and effective, and demonstrate Best Value through continuous improvement. Critically assessing current arrangements and considering a range of options when deciding what services to provide, and how to deliver them, helps to ensure that decisions are transparent and based on sound information. An Options Appraisal helps make these decisions and provides assurance that all relevant issues (including quality, cost, and risk) have been considered. 2.15 The use of Options Appraisal is already widespread across the council. However to ensure that the outcome from such an exercise continues to remain consistent with the strategic direction for the council, as set out in The Plan for North Lanarkshire, a corporate approach has been formalised and is included in the refreshed Strategic Self- Evaluation Framework attached. 2.16 It is expected though that the size, nature, and complexity of each individual Options Appraisal exercise will influence the size and scale of the options appraisal process to be used. It is not considered good use of limited resources to spend time and money on options appraisals for decisions which are straightforward and of minimal impact on service provision, or the council’s finances. Decisions in terms of the extent to which the approach set out in Appendices C and D is used (i.e. a basic or enhanced approach) will therefore need to be made in a sensible and proportionate way. Next steps
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2.17 The next steps will involve scoping and preparatory work to develop a more detailed evaluation specification for each of the self-evaluation exercises in Appendix B. 2.18 Championed by identified members of the Corporate Management Team, self- evaluation exercises will continue to be managed by the Strategy and Performance Manager in Business and Digital to ensure the five non-negotiable standards are consistently applied across the rolling Review Programme and improvements support the further delivery of The Plan for North Lanarkshire. Where identified as appropriate for certain self-evaluation exercises, external facilitation will be provided by the Improvement Service to ensure that independency of approach. 3. Measures of success 3.1 The key measure of success will be in securing continuous improvement in performance through self-evaluation that is focussed on what the council ultimately aims to achieve. 4. Supporting documentation 4.1 Appendix 1 - Strategic Self-Evaluation Framework - Appendix A: Assessment criteria and statements - Appendix B: Rolling Review Programme - Appendix C: Options Appraisal process - Appendix D: Options Appraisal templates Katrina Hassell Head of Business and Digital 5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People
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and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Local Government in Scotland Act 2003 introduced the statutory duty of Best Value which requires that councils “make arrangements to secure continuous improvement in performance”. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Implementation of a corporate approach to self-evaluation and options appraisal through the Strategic Self-Evaluation Framework and the rolling Review Programme
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ensures the council fully complies with Best Value and Good Governance requirements. This approach also contributes towards the mitigation of the risks on the Corporate Risk Register for (a) Governance, Leadership, and Decision Making and (b) Managing Strategic Change.
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1 Strategic Self-Evaluation Framework (includes the corporate process for Options Appraisal) Appendix 1
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2 Document control Title Strategic Self-Evaluation Framework (includes the corporate process for Options Appraisal) Owner Katrina Hassell, Head of Business and Digital Contact HassellK@northlan.gov.uk Governance group Audit and Scrutiny Panel Author Susan Lawrie, Strategy and Performance Manager Contact LawrieS@northlan.gov.uk Revision history Number Originator Date Description Original framework created Linda Johnston, Business Strategy Manager 2019 - 1.0 Linda Johnston, Business Strategy Manager June 2021 Annual review 2.0 Linda Johnston, Business Strategy Manager September 2022 Annual review and formal incorporation of a corporate approach to Options Appraisal Document approvals Number Governance group Date approval granted Date approval to be requested (if document still draft) Original document created Policy and Strategy Committee 2019 1.0 Audit and Scrutiny Panel September 2021 2.0 Audit and Scrutiny Panel November 2022 Strategic alignment Next review commencement date Review date September 2023 The Plan for North Lanarkshire (all 5 priorities and 25 ambition statements), Programme of Work, Strategic Policy Framework, Strategic Governance Framework, Strategic Performance Framework, Strategic Self-Evaluation Framework, Project Management Framework, Framework for Demonstrating Improved Outcomes for Communities.
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3 Table of contents Page number Introduction ………………………………………………………………………………………..….. 4 The duty of Best Value …………………….……………………………………………………….... 5 - 6 - Statutory framework …………………………………………………………………………….... 5 - Scope of the national guidance …….……………………………………………………........… 5 - The role of self-evaluation in continuous improvement ……………………….………........... 5-6 Self-Evaluation in North Lanarkshire Council ………………………………………………..….. 7 - 11 - Continuous improvement ……………………………………………………………….………... 7 - Non-negotiable standards …...………………………………………….………………………... 7 - Self-evaluation …………………………………………………………………………………..... 8 - Assessment criteria and statements ……………………………………………………...……. 8 - Assessment process ……………………………………………………………………………... 8-11 Options Appraisal …………………………………………………………………………………...… 12 - 16 - Introduction ……………………..………………………………………………………………….. 12-13 - Potential outcomes from an Options Appraisal ………………………..……………………….. 13 - Options Appraisal process ……………………………………………………………………….. 14 - Potential barriers ……………………………………………………………….…………………. 15 - Options Appraisal and project management …………………………………………………… 15 - Reviewing the approach ………………………………………………………………….……… 16 Appendix A: Assessment criteria and statements …………………………………………………. 17 - 25 Appendix B: Rolling Review Programme ………………………………………………................... 26 Appendix C: Options Appraisal process …………………………………………………….............. 27 - 31 Appendix D: Options Appraisal templates …………………………………………...……………… 32 - 35
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4 Introduction The Plan for North Lanarkshire sets the long-term strategic direction for the council, partners, and other stakeholders and, most importantly, for each unique local community and the people who Live, Learn, Work, Invest, and Visit within North Lanarkshire. It’s a Plan with a shared ambition of inclusive growth and prosperity for all and a fairer distribution of wealth across all local communities. As the delivery vehicle for the shared ambition, the Programme of Work - now in its fourth iteration (with plans approved to the end of 2022/23) - enables a recurring and dynamic approach to realising the shared ambition. It enables delivery of the long-term vision to be informed by an annual strategic planning process that is influenced by national policy changes and new developments which impact on the achievement of the vision and which require to be reflected in the development of future strategies, policies, plans, and programmes of work. Key to assessing the success of The Plan for North Lanarkshire are six inter-related corporate frameworks that focus on ensuring a corporate one council approach. They are also key to monitoring delivery towards achieving the overall vision and ensuring each stage is appropriately planned, guided, implemented, and governed. • Strategic Governance Framework • Strategic Policy Framework • Strategic Performance Framework • Strategic Self-Evaluation Framework • Project Management Framework • Framework for Demonstrating Improved Outcomes for Communities To ensure these frameworks remain aligned to The Plan for North Lanarkshire, all are on a regular review and refresh programme. This also helps the council to ensure it is proactive in responding to social, economic, and environmental trends and changes in legislation and governance, as well as the broad range of national policy changes and new developments. The council’s Strategic Self-Evaluation Framework is set out within this document. To meet the Best Value duty the council must ensure arrangements are in place to secure continuous improvement in performance for all the functions and activities undertaken to deliver services and improve outcomes for local communities. Being self-aware and undertaking a structured programme of self-evaluation underpins the duty to secure continuous improvement, and good practice suggests local authorities adopt a single strategy for improvement in this respect. How self-evaluation has been developed in North Lanarkshire Council is set out on pages 7 to 10 of this document. This outlines the assessment framework used by the council, and the standards which are applied to ensure alignment with The Plan for North Lanarkshire. The assessment process on page 11 provides a consistent framework for undertaking self-evaluation exercises that allows for flexibility in adapting the methodology to ensure evaluation takes place within the appropriate context, meet the needs of the operating environment of the service, function, project, or group being evaluated, and achieves the desired outcomes. Key strategic oversight roles are set out on pages 9-10 for the Corporate Management Team, and also for the Audit and Scrutiny Panel in line with their responsibility to provide an independent review of the council's governance, risk management, performance, and control frameworks. A rolling Review Programme of self-evaluation for 2022 and 2023 is set out on page 26 along with indicative timescales. This programme aims to ensure the council continues to comply with the requirements of Best Value and Good Governance and, more importantly, ensures a mechanism is in place to assess the council’s functions and activities and identify areas for improvement within the context of fulfilling the vision set out in The Plan for North Lanarkshire. This Framework formalises a corporate approach to Options Appraisal. An overview is set out on pages 12 to 16 (and detailed in Appendices C and D); this highlights the importance of defining clear objectives and fully informed options, applying a rigorous framework for comparing / assessing / evaluating a range of alternative ways of delivering a service, project, or operational matter against set criteria and objectives, and ensuring a transparent process with a clear evidence trail.
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5 The duty of Best Value Statutory framework The Local Government in Scotland Act 2003 introduced a statutory framework for Best Value within local government in Scotland. This outlined the requirement for local authorities to secure Best Value by making arrangements to secure continuous improvement in performance for all the functions and activities undertaken to deliver services and improve outcomes for local communities. In making arrangements to secure continuous improvement, local authorities are required to ensure an appropriate balance is maintained between quality and cost. In maintaining this balance, local authorities must ensure their functions and activities take into account economy, efficiency, and effectiveness: • Economy - minimising the cost of resources used or required (inputs). • Efficiency - the relationship between the output from services delivered and the resources to produce them. • Effectiveness - the relationship between the intended and actual results of public spending (outcomes). Best Value also requires local authorities to ensure their functions and activities meet the equal opportunities duties and contribute to the achievement of sustainable development. As cross-cutting themes, these are integral to a local authority delivering good outcomes and achieving Best Value. Scope of the national guidance National Best Value guidance has been in place since 2004; this has identified a range of Best Value characteristics which have helped local authorities develop arrangements that demonstrate continuous improvement in performance. The Best Value guidance applies to other bodies as required by Section 106 of the Local Government (Scotland) Act 1973, notably health and social care integration joint boards and other joint committees or boards that are subject to the same statutory Best Value duties as local authorities and, as such, the guidance requires to be interpreted and applied accordingly. Other devolved public bodies, such as the NHS, are not directly covered by the 2003 Act. They are, however, under a similar Best Value duty (which is set out in the Scottish Public Finance Manual) and a statutory duty under the Public Finance and Accountability (Scotland) Act 2000 to use their resources economically, efficiently, and effectively. Since 2003, the enactment of other key legislation has had a significant impact across Scotland, extending the requirements of Best Value beyond local authorities. The Public Bodies (Joint Working) (Scotland) Act 2014 has resulted in the integration of health and social care, while the Community Empowerment (Scotland) Act 2015 has strengthened the statutory base for community planning, and for involving and engaging communities in planning and decision-making about things that matter to them. The national Best Value guidance was therefore updated in 2020 to reflect the significantly changed policy and public service delivery landscape within which local authorities now operate (https://www.gov.scot/publications/best-value-revised-statutory-guidance-2020/documents/). The role of self-evaluation in continuous improvement The Accounts Commission - the public spending watchdog for local government, responsible for holding councils in Scotland to account and helping them to
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6 improve - consider that being self-aware and undertaking a structured programme of self-evaluation underpins the duty to secure continuous improvement. As such, self-evaluation is considered to be one of the fundamental principles when auditing Best Value in local government. By applying rigorous self- evaluation, it is considered that local authorities will be able to use assessments of how well resources have been used, and what performance levels have been achieved, in order to focus on where improvement is most needed to help deliver on priorities and improve outcomes for people in local communities.
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7 Self-Evaluation in North Lanarkshire Council Continuous improvement To comply with the duty of Best Value and make arrangements to secure continuous improvement in performance, good practice suggests councils adopt a single strategy for improvement when implementing a programme of self-evaluation. This will ensure that insights gained from the programme of self-evaluation - into what works, where problems have arisen or unintended consequences have been identified, where there have been unanticipated results, or where there are areas of good practice - can be used to make judgements on the quality, value, and importance of the function or activity being evaluated. This, in turn, provides the evidence that can be fed back into the decision making process in order to facilitate the highest possible level of quality and accountability in service delivery and/or secure the improved approaches and resources required to deliver on local priorities and contribute to the achievement of the council’s long-term vision (while maintaining Best Value in performance). Non-negotiable standards To support the achievement of a single strategy for improvement, a set of five non-negotiable standards are in place. These are designed to facilitate a one council approach and ensure consistency across the inter-related corporate frameworks. These standards also aim ensure to ensure that self-evaluation exercises undertaken in line with the Strategic Self-Evaluation Framework and rolling Review Programme are: • Aligned - to The Plan for North Lanarkshire so that improvement actions contribute to the achievement of the council’s long-term vision. Improvements should also be focused, where appropriate, on enhancing the supporting processes, plans, policies, and strategies designed to deliver the services and improved outcomes that will achieve the long-term vision. • Consistent - so there is a clear understanding of the purpose and benefits of each self-evaluation exercise. Integrating recommendations arising from local and national audit and inspection work into the council’s self-evaluation review programme will ensure as comprehensive a picture as possible is attained to inform the identification of areas for improvement and future decision making. • Transparent - ensuring that progress made against the implementation of the improvement actions is widely reported, understood, and acted upon to support the council’s governance arrangements and help build credibility, reliability, and a common understanding of the benefits of self-evaluation in securing continuous improvement. Self-evaluation needs to be robust enough to provide assurances to a range of internal and external stakeholders. • In context - ensuring that self-evaluation exercises are tailored to the function or activity being evaluated (whether that is a service, function, project, or group) and designed within the context of that operating environment. Identifying the context and any constraints, within which the self-evaluation exercise is to be undertaken, is a key step in the process in order for improvement plans to be able to demonstrate the resultant impact on local people and communities. • Balanced - to ensure any self-evaluation exercise undertaken is proportionate to the resources expended, outcomes expected, the scale of the service, function, project, or group being evaluated, and the associated risks. The outputs must tell a balanced narrative that identifies aspects of good practice as well as areas for improvement. Figure 1. Five non-negotiable standards
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8 Self-evaluation In its simplest form improvement starts with the question How well are we doing? Self-evaluation helps to answer that question and those that flow from it, i.e. • How do we know? (i.e. What evidence is there to support the view of how well we are doing?) • How can we do better? (i.e. What are we going to do now?). The Strategic Self-Evaluation Framework adopted by the council ensures a focus on these three questions. In doing so it also incorporates a degree of triangulation (as depicted in Figure 2.) by including ways to cross check results from multiple sources. This aims to increase the reliability and validity of the findings, help to gain a wider understanding of complex issues, and ensure more complete results. In this respect the incorporation of audit and inspection work - carried out by the various inspection bodies (e.g. the Care Inspectorate, HM Inspectorate of Education, Scottish Housing Regulator, etc), and recommendations arising from the external auditor’s Annual Audit Report (AAR) and Internal Audit programme of audit work - are a key requisite of any self-evaluation exercise the council undertakes. Assessment criteria and statements There are many self-evaluation models (with varying assessment criteria, statements, and evaluation techniques) in operation across the public and private sectors. For council led self-evaluations, local authorities across Scotland have adopted the model (or a local variation of the model(s)) that best fits with their council’s strategic planning approach, operating environment, and governance arrangements. In North Lanarkshire this is the Best Value guidance itself. Updated in 2020, the seven themes that support Best Value in line with the Local Government in Scotland Act 2003 reflect the significantly changed policy and public service delivery landscape within which local authorities now operate. Local authorities are required to demonstrate a focus on continuous improvement in performance around each of these seven themes: 1. Vision and leadership. 2. Governance and accountability. 3. Effective use of resources. 4. Partnerships and collaborative working. 5. Working with communities. 6. Sustainability. 7. Fairness and equality. For each theme, a range of good practice statements outline what constitutes Best Value in local government; these are outlined in Appendix A. Assessment process The council’s Strategic Self-Evaluation Framework is aligned to the seven Best Value themes and supporting good practice statements shown in Appendix A. These statements form the basis for self-evaluation exercises undertaken across the council in line with the Strategic Self-Evaluation Framework and rolling Review Programme. It should be noted however, that no self-evaluation exercise will include all statements; each exercise will comprise a small Figure 2. Self-Evaluation model
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9 subset of statements that best reflects the function or activity being assessed and the context and operating environment of that function or activity, and that are most appropriate to delivering the desired outcomes. Where national frameworks already exist (e.g. the Chartered Institute of Public Finance and Accountancy (CIPFA) Financial Management Code, Education Scotland’s How good is the learning and development in our community, and the Care Inspectorate’s Self-evaluation for improvement), these should inform the selection of assessment statements for the self-evaluation exercise. This will avoid duplication and ensure the council’s resources are focused on gaps and what improvement is needed locally. Similarly where relevant good practice guides and/or checklists already exist (e.g. produced by the Improvement Service or Audit Scotland), these should be taken into consideration and used or aligned accordingly. Where appropriate for certain self-evaluation exercises, external facilitation will be provided by the Improvement Service to ensure that independency of approach. The methodology used to undergo self-evaluation exercises loosely take into account the key elements from the frameworks for European Foundation for Quality Management (EFQM) and Public Service Improvement Framework (PSIF). The key features of this approach include (but are not restricted to): • Implementation of a Champion - to provide leadership, commitment, motivation, and recognition to the introduction and execution of the self- evaluation exercise. To communicate the purpose and the benefits, and to challenge resistance. To ensure resultant improvement actions are valid and used to inform improvements to what the council ultimately aims to achieve. In the council the role of Champion is assumed by a member of the Corporate Management Team. • Management of the process - to ensure there is a Champion and clear ownership of the process and to work with the Champion to optimise the benefits and results. To produce the project plans and develop and facilitate the exercises, secure the resources, arrange appropriate training, and ensure consistency and alignment with the council’s strategy. In the council this role is assumed by the Strategy and Performance Manager with external facilitation provided, where appropriate, by the Improvement Service. • An assessment team - to contribute their time, knowledge, and expertise to the self-evaluation exercise and play an active role in the improvement process. To understand and then communicate to others the purpose and benefits of self-evaluation. • Context mapping - to ensure a clear understanding of the operating environment of the service, function, project, or group being evaluated and ensure clarity in terms of the scope and boundaries of each exercise. • Evidence - to ensure decision making (in terms of areas for improvement) is informed by clear and tangible evidence, which is attained through an initial desktop exercise and/or online survey or discussion session. • A consensus session - to ensure the assessment team have the opportunity to discuss and reach a collective agreement on the evidence presented, the scores achieved through the self-evaluation exercise, and the aspects of good practice and areas for improvement to be reported on. • Planning and prioritisation - to identify areas where improvement should be made and ensure clear priorities for action are established. To ensure improvement plans are developed in line with SMART principles, follow a one council approach, and are aligned to the vision set out in The Plan for North Lanarkshire. This is complemented by two key strategic oversight roles: (1) The strategic oversight role of the Corporate Management Team in line with their remit to consider matters which are corporate or cross-service in nature, to maintain oversight and monitoring of strategic performance across the organisation, and to maintain strategic oversight and direction of the council’s Programme of Work and The Plan for North Lanarkshire.
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10 (2) The challenge and scrutiny role of the Audit and Scrutiny Panel in line with their responsibility to provide an independent review of the council's governance, risk management, performance, and control frameworks. Using these key features, the council’s assessment process comprises 10 steps (as shown in Figure 3. on page 11). While these 10 steps provide a consistent and standardised approach to undertaking self-evaluation in line with the Strategic Self-Evaluation Framework and rolling Review Programme, each step can be customised in order to best meet the needs, operating environment, and desired outcomes of the function or activity being assessed. Depending on what is to be evaluated and what the self-evaluation exercise aims to achieve, it can sometimes be useful to gather some initial feedback to inform the further development of particular steps in a self-evaluation exercise. An initial straw poll to ascertain the extent to which the potential audience agrees or disagrees (i.e. strongly agree, agree, disagree, strongly disagree, don’t know) with the following statements in terms of the approach of a service, function, project, or group as well as its deployment and also the associated assessment and review processes is a quick and easy way to do this: • APPROACH: There is a clear rationale behind the choice of approach, it is underpinned by well-defined and developed processes, it is aligned to the relevant strategy and policies of the council, and it meets stakeholder needs. • DEPLOYMENT: The approach is systematically deployed and implemented in all relevant areas of the council, it is implemented to its full potential, and it is understood and accepted by all stakeholders. • ASSESSMENT AND REVIEW: The approach and its deployment are regularly reviewed to assess for effectiveness, there are processes and measures in place to assess success, and the assessment process is used to identify areas for improvement and opportunities for learning. Appendix B sets out the rolling Review Programme - this outlines the programme of self-evaluation for 2022 to 2023 along with indicative timescales. This programme will be updated as new evaluations are identified and kept on an annual review and refresh programme to ensure the Framework, and supporting assessment process, remain fit for purpose and support achievement of the long-term ambition set out in The Plan for North Lanarkshire.
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11 Figure 3. 10 steps in the assessment process
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12 Options Appraisal Introduction An Options Appraisal is about making informed choices and better decisions and nowhere is this more important than within local government, where the choices made dictate how public funds are spent and impact on how people live their lives. An Options Appraisal therefore helps the council to provide assurances that services provided represent value for money, are efficient and effective, and demonstrate Best Value through continuous improvement. There are many challenges facing local authorities, the most pressing being the need to manage financial pressures and the increasing demands on services. As such, Elected Members and officers need to be open to considering a broad range of options for delivering services and ensuring a rigorous and challenging appraisal of these options. This might involve providing services in a different way, or even not providing some services at all. These are difficult decisions to make as they can significantly affect residents, service users, partner organisations, and council staff. A robust Options Appraisal helps councils to make these important decisions and provides assurance that all the relevant issues (including quality, cost, and risk) have been considered. Critically assessing current arrangements and considering a range of options when deciding what services to provide, and how to deliver them, also helps to ensure that decisions are transparent and based on sound information. An Options Appraisal is all about making well informed decisions. As with any decision making tool, Options Appraisal provides support to the process, it does not provide the answers. The relevant decision makers within the council will still have to make judgements based on the evidence provided and at some point it may be necessary to explain those judgements to others. The value of a decision making tool such as Options Appraisal is that it takes people through the process step by step and assists in making sure that everything relevant is taken into account. A robust decision that has been carefully considered in discussion with others, and has been informed by a robust process, is more likely to be successful. The need to carry out an Options Appraisal may come from a variety of sources. As well as the outcome of a self-evaluation exercise, these triggers could include: • A strategic review of service delivery, for example as part of a council’s transformation programme or improvement plan, or because the external environment and/or a range of related factors have had a significant impact on the ability of the council to continue with the service in its current form. Or there could be a need to provide services in a different way to better meet the needs of residents or service users. • The outcome of an external evaluation exercise or non-compliance with a contract. • Poor service performance or performance that suggests services are not achieving value for money - highlighted, for example, through benchmarking comparisons or by performance indicators that show decreasing efficiency, increasing unit costs, or declining user satisfaction. • Budget imperatives or the need to make savings in one area to redirect resources to other higher priority areas that are more aligned to deliver the council’s vision. • The need for realignment following a new or changed national or local policy direction or decision. An Options Appraisal can be used to help make decisions at a number of different levels, from strategic decisions about services to more specific decisions about projects or operational matters. Councils have choices about the size and scale of the Options Appraisal process they use to ensure that it is proportionate to the significance of the decision to be made.
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13 To be able to demonstrate Best Value and work well, Options Appraisal needs to be managed properly. In this respect it is important that: • Members of the Corporate Management Team - who are responsible for delivering the council’s vision - ensure that Elected Members receive robust, complete, and evidence based information in order to make informed decisions. • Managers - who are responsible for the service change required - are able to manage a robust Options Appraisal process. They also need to ensure appropriate time, money, skills, and experience are devoted to the process to ensure that sound evidence based information is produced. They are also responsible for ensuring that the approach used is proportionate to the significance of the decision to be made. Potential outcomes from an Options Appraisal There are a wide range of potential outcomes from an Options Appraisal; these include those depicted in Figure 4. below. Figure 4. Possible outcomes from an options appraisal derived from Options appraisal: Are you getting it right (Audit Scotland, 2014)
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14 Options Appraisal process To ensure best use of public money, the council needs to ensure that resources are used wisely and sufficient time and money is spent ensuring that a robust Options Appraisal has been undertaken before key decisions are made. However, it would not be a good use of limited resources to spend time and money on options appraisals for decisions which are straightforward and of minimal impact on service provision, or the council’s finances. There is therefore a need to apply the use of Options Appraisal in a sensible and proportionate way. Deciding whether an Options Appraisal is required will therefore involve judgement. It is not possible to be definitive in this document if an Option Appraisal will be required, that is ultimately a decision for the relevant Head of Service, but the following four aspects may be helpful in making that judgement: • Complexity - a formal Options Appraisal is likely to be necessary if the matter to be decided is complex. • Implications on service delivery - if a change to a project or proposal will have a significant impact on public service provision, especially affecting front line service delivery, then an Option Appraisal will usually be necessary. • Financial implications - changes to activities which give rise to additional financial implications for the council, or would mean significant change in existing budget provisions, will usually require an Options Appraisal. • Sensitivity - even small-scale projects or routine activity can, on occasion, be highly sensitive in political or reputational terms. Where this is likely to arise, an Options Appraisal may be necessary to help decide how to proceed. Whether a formal Options Appraisal is necessary (and, if it is, the extent of detail required) should also be informed by an assessment of its complexity and sensitivity and by the extent of service and financial implications involved. Where an Options Appraisal is required, it is expected that all exercises carried out by the council will follow the same broad steps, as outlined in Figure 5. below and Appendix C (unless there are specific industry standards that require an alternative method to be followed or there are tried and tested methods and processes already in place). However please note the following caveat: 1. It is expected though that the size, nature, and complexity of each individual Options Appraisal exercise will influence the size and scale of the Options Appraisal process to be used. 2. It is not considered good use of limited resources to spend time and money on options appraisals for decisions which are straightforward and of minimal impact on service provision, or the council’s finances. 3. Decisions in terms of the extent to which the approach set out in Appendices C and D is used (i.e. a basic or enhanced approach) will therefore need to be made in a sensible and proportionate way. It should be noted though that, while each Options Appraisal will include these steps, in practice it is not exactly a linear process and some of the steps will take place simultaneously. Figure 5. Options Appraisal process
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15 Potential barriers Options Appraisal can be extremely challenging as balancing competing interests and priorities is always difficult and there are a number of things that may get in the way of an effective Options Appraisal. However, the key position of the council is that the duty of Best Value - on making best use of public resources - must always prevail. Potential barriers that the Senior Responsible Officer (SRO) and Project Manager need to be aware of include the following: • Unclear objectives - The council needs to take the time and be clear about the reasons why services are provided in-house. There may be good reasons for this; it may be due to the specialist nature of the service, the vulnerability of the client group, the sensitivity of the information processed, the absence of an alternative provider, or issues of equality and fairness, for example. It needs to be equally clear which services are open to alternative forms of service delivery through a rigorous Options Appraisal. Ensuring clear objectives will ensure the council spends time and public money pursuing the right approach from the outset and does not waste public money by withdrawing late on in a process. • The always been principle - Change is never easy, it can be challenging for officers and Elected Members to radically change the way the council has provided a service often over a lengthy period of time. Some may believe that Options Appraisal would be too difficult and fear that the alternatives seem too radical. Personal and political sympathies and aspirations may also have an impact on the success of the process. • Having a short-term perspective - Focusing too much on the here and now, or on the short-term, can mean that the longer-term benefits are not fully considered. • Not involving the right people - For any Options Appraisal the right people have to be involved, those with the right skills, knowledge, and experience. Everyone involved in an Options Appraisal needs to have clear roles and responsibilities. • Not considering governance - Governance is about how the council ensures that it is doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest, and accountable manner. Ensuring the governance arrangements are clear at the outset of an Options Appraisal will ensure that the decisions on selecting the preferred options are transparent. Any decisions arising from an Options Appraisal must be made within the council’s existing governance arrangements in line with the Scheme of Administration and Scheme of Delegation to Officers. It is good practice to set out a clear reporting framework at the start of an Options Appraisal. Regular reporting on progress should be built into the process, so that the Corporate Management Team and Committees are kept informed in line with their roles and responsibilities. Reports should be prepared in line with the council’s approved report template and guidance [ http://connect/report-template ]. • Decisions being made on incomplete evidence - When considering difficult and potentially controversial options, it is important that the decision- making process is - and is seen to be - robust. The decisions must be open to public scrutiny, although there may be stages in specific options appraisals where some information needs to be managed carefully in order to respect commercial confidentiality. Keeping good quality documentation is vital to demonstrate that decision making is based on sound evidence. Options appraisal and project management Options Appraisal is an important consideration at specific stages in a project life cycle. Guidance on Options Appraisal, and the identification of the preferred option, is contained within the economic case section of the Project Business Case within the council’s Project Management Framework (2022). This requires due consideration of the economic case to identify the proposals that deliver Best Value to the local community, including wider social and environment effects. A prerequisite of the economic case is therefore the demonstration of value for money through a wide range of realistic options being appraised in terms of how well they meet the spending objectives and critical success factors for a project.
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16 Reviewing the approach To ensure the council’s corporate Options Appraisal approach remains fit for purpose in practice, this Framework is on a programme to undergo an annual review and refresh exercise, and any feedback received will therefore be used to inform this process. Therefore after undergoing an Options Appraisal, please e-mail any general feedback (or specific feedback in relation to the following points), to strategyandperformance@northlan.gov.uk • How effective was the Options Appraisal process in delivering the stated objectives? • Was the Options Appraisal process itself delivered on time and on budget? • What lessons have been learned that should inform future Options Appraisal exercises?
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17 Appendix A: Self-Evaluation assessment criteria and statements The seven Best Value themes and supporting good practice evidence statements from the national Best Value: Revised Statutory Guidance document (Scottish Government, 2020) provide the framework that forms the basis for the council’s self-evaluation exercises undertaken in line with the Strategic Self- Evaluation Framework and rolling Review Programme. It should be noted however, that no self-evaluation exercise will include all statements; each exercise will comprise a small subset of statements that best reflects the service, function, project, or group being assessed and their context and operating environment, and that are most appropriate to delivering the desired outcomes. In addition, it may be that national audit and inspection frameworks - or good practice guides and/or checklists - already exist. Where this is the case, and these form an appropriate self-evaluation framework for the service, function, project, or group to be reviewed, then the Best Value statements may not be appropriate to use for certain self-evaluation exercises. Or in these instances, the Best Value statements may only be applicable to use to fill any gaps. BEST VALUE THEME: 1. Vision and leadership Effective political and managerial leadership is central to delivering Best Value, through setting clear priorities and working effectively in partnership to achieve improved outcomes. Leaders should demonstrate behaviours and working relationships that foster a culture of cooperation, and a commitment to continuous improvement and innovation. Evidence statements - in achieving Best Value, a local authority will be able to demonstrate the following: This means that: 1.1 Members and senior managers have a clear vision for their area that is shared with citizens, key partners, and other stakeholders. 1.2 Members set strategic priorities that reflect the needs of communities and individual citizens, and that are aligned with the priorities of partners. 1.3 Effective leadership drives continuous improvement and supports the achievement of strategic objectives. a. The local authority’s vision for its area is developed in partnership with its citizens, employees, key partners and other stakeholders. b. Members set strategic priorities that contribute to achieving the local authority’s vision, reflect the needs of communities and individual citizens, and are aligned with the priorities of partners. They take decisions that contribute to the achievement of those priorities, in particular when allocating resources and in setting and monitoring performance targets. c. The local authority’s vision and strategic priorities are clearly communicated to its citizens, staff and other partners. d. Strategic plans reflect a pace and depth of improvement that will lead to the realisation of the local authority’s priorities and the long-term sustainability of services. e. Service plans are clearly linked to the local authority’s priorities and strategic plans. They reflect the priorities identified through community planning and show how the local authority is working with partners to provide services that meet community needs. f. Priority outcomes are clearly defined, and performance targets are set that drive continuous improvement in achieving those outcomes. g. There are clear and effective mechanisms for scrutinising performance that enable the taking of informed
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18 decisions and the measuring of impacts and service outcomes. h. There is a corporate approach to continuous improvement, with regular updating and monitoring of improvement plans. i. The local authority and its partners agree on how the key elements of Best Value will contribute to achieving the commonly agreed local priorities and outcomes. These key elements include the need to: • secure continuous improvement, in particular for those services aligned to the local authority’s priorities • provide customer- and citizen-focused public services, which meet the needs of diverse communities • achieve the best balance of cost and quality in delivering services (having regard to economy, efficiency, effectiveness, and equalities) • contribute to sustainable development • encourage and support innovation and creativity j. Members and senior managers communicate the approach to Best Value methodically throughout the local authority in terms that are relevant to its staff and set out clear expectations of them. The local authority has a positive culture in which its people understand its vision and objectives and how their efforts contribute to their achievement, and they are engaged with and committed to improvement. k. Members and senior managers are self-aware. They commit to training and personal development to update and enhance their knowledge, skills, capacity, and capabilities to deliver Best Value and perform their leadership roles, and they receive sufficient support to do so. l. Leadership is effective and there is good collaborative working. Members and senior managers have a culture of cooperation and working constructively in partnership, informed by a clear understanding of their respective roles and responsibilities and characterised by mutual respect, trust, honesty and openness and by appropriate behaviours. BEST VALUE THEME: 2. Governance and accountability Effective governance and accountability arrangements, with openness and transparency in decision-making, schemes of delegation and effective reporting of performance, are essential for taking informed decisions, effective scrutiny of performance and stewardship of resources. Evidence statements - in achieving Best Value, a local authority will be able to demonstrate the following: This means that: 2.1 A clear understanding and the application of the principles of good governance and transparency of decision-making at strategic, partnership and operational levels. 2.2 The existence of robust arrangements for scrutiny and performance reporting. a. Members and senior managers ensure accountability and transparency through effective internal and external performance reporting, using robust data to demonstrate continuous improvement in the local authority’s priority outcome measures. b. Management information and indicators that allow performance to be assessed are widely and consistently used by the local authority. Senior management regularly receives information that is used to inform members about performance. c. Performance is reported to the public, to ensure that citizens are well informed about the quality of services
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19 2.3 The existence of strategic service delivery and financial plans that align the allocation of resources with desired outcomes for the short, medium, and long terms. being delivered and what they can expect in future. d. Learning from previous performance, and from the performance of other local authorities, informs the review and development of strategies and plans to address areas of underperformance. e. Key organisational processes are linked to, or integrated with, the planning cycle; these include strategic analyses, stakeholder consultations, fundamental reviews, performance management, staff appraisal and development schemes, and public performance reporting. f. The local authority has a responsible attitude to managing risk, and business continuity plans (including civil contingencies and emergency plans) are in place to allow an effective and appropriate response to planned and unplanned events and circumstances. g. Key discussions and decision-making take place in public meetings, and reasonable measures are taken to make meeting agendas, reports and minutes accessible to the public, except when there are clear reasons why this would be inappropriate. h. The local authority’s political structures support members in making informed decisions. i. The scrutiny structures in the local authority support members in reviewing and challenging its performance. j. Members and senior managers promote the highest standards of integrity and responsibility, establishing shared values, mutual trust and sound ethics across all activities. Effective procedures are in place to ensure that members and staff comply with relevant codes of conduct and policies. This includes ensuring that appropriate policies on fraud prevention, investigation and whistleblowing are established and implemented. k. Members and senior managers understand and effectively communicate their respective and collective roles and responsibilities to members and staff. They understand that effective delegation enables and supports the local authority’s ability to achieve Best Value. l. An information governance framework is in place that ensures proper recording of information, appropriate access to that information including by the public, and legislative compliance. m. Technological innovation and digital transformation are promoted and used to ensure accessibility of performance information and public accountability. n. Members and employees across the local authority understand and implement their responsibilities in relation to its Standing Orders and Financial Regulations. o. There are clear governance and lines of accountability when delivering services via a third party, and there is evidence of the application of the principles within the Following the Public Pound guidance (https://www.audit-scotland.gov.uk/uploads/docs/um/pg_code_guidance.pdf) when funding is provided to external bodies. BEST VALUE THEME: 3. Effective use of resources Making the best use of public resources is at the heart of delivering Best Value. With clear plans and strategies in place, and with sound governance and strong leadership, a local authority will be well placed to ensure that all of its resources are deployed to achieve its strategic priorities, meet the needs of its communities, and deliver continuous improvement. Evidence statements - in achieving Best Value, a local authority will be able to This means that:
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20 demonstrate the following: 3.1 It makes best use of its financial and other resources in all of its activities. 3.2 Decisions on allocating resources are based on an integrated and strategic approach, are risk-aware and evidence- based, and contribute to the achievement of its strategic priorities. 3.3 It has robust procedures and controls in place to ensure that resources are used appropriately and effectively and are not misused. 3.4 It works with its partners to maximise the use of their respective resources to achieve shared priorities and outcomes. Staff a. A workforce strategy is in place that sets out expectations on how the local authority’s staff will deliver its vision, priorities and values. b. The strategy is translated into workforce plans, covering employee numbers, skills, knowledge, competencies and organisational structures, that demonstrate how staff will be deployed to deliver the services planned for the future. Plans are regularly reviewed at appropriate intervals according to a clear review cycle. c. All employees are managed effectively and efficiently and know what is expected of them. Employee performance is regularly assessed through performance appraisal, with individuals and teams being supported to improve, where appropriate. d. Members and senior managers understand and demonstrate that effective delegation is an important contribution to the local authority’s ability to achieve Best Value. e. The contribution of staff to ensuring continuous improvement is supported, managed, reviewed and acknowledged. f. The local authority demonstrates a commitment to fairness, equity and safety in the workplace; it adopts relevant statutory guidance through progressive workplace policies and a commitment to best practice in workplace relationships. g. Leaders ensure that there is the organisational capacity to deliver services through effective use of all employees and other resources. They communicate well with all staff and stakeholders and ensure that the organisation promotes a citizen- and improvement-focused culture that delivers meaningful actions and outcomes. Asset management a. There is a corporate approach to asset management that is reflected in asset management strategies and plans, which are subject to regular review. b. There is a systematic and evidence-based approach to identifying and managing risks in relation to land, buildings, plant, equipment, vehicles, materials and digital infrastructure. c. The local authority actively manages its asset base to contribute to its objectives and priorities. d. Fixed assets are managed efficiently and effectively, taking account of availability, accessibility, safety, utilisation, cost, condition and depreciation. Information a. Information is regarded as a strategic resource and is managed accordingly. b. There is a clear digital strategy in place, which includes resilience plans for information systems. c. Information is shared appropriately, and the local authority seeks to develop data compatibility with its partners. Financial management and planning a. There is clear alignment between the local authority’s budgets and its strategic priorities. b. Regular monitoring and reporting of financial outturns compared with budgets is carried out, and corrective action taken where necessary to ensure the alignment of budgets and outturns. c. Financial plans show how the local authority will fund its services in the future. Long-term financial plans
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21 that include scenario planning for a range of funding levels are prepared and linked to strategic priorities. d. An appropriate range of options is considered when taking decisions, and robust processes of option appraisal and self-assessment are applied. e. The local authority has clear plans for how it will change services and realise efficiencies to close future budget gaps. f. Members and senior managers have a clear understanding of likely future pressures on services and of how investment in preventative approaches can help alleviate those pressures, and they use that understanding to inform decisions. g. Financial performance is systematically measured across all areas of activity, and regularly scrutinised by managers and members. h. There is a robust system of financial controls in place that provides clear accountability, stakeholder assurance, and compliance with statutory requirements and recognised accounting standards. i. The local authority complies with legal and best practice requirements in the procurement and strategic commissioning of goods, services and works, including the Scottish Model of Procurement (https://www.gov.scot/policies/public-sector-procurement/). There is clear accountability within procurement and commissioning arrangements. j. There are clear and effective governance and accountability arrangements in place covering partnerships between the local authority and its arm’s-length external organisations (ALEOs), including for performance monitoring and the early identification of any significant financial and service risks; there is evidence of the application of the principles of ‘Following the Public Pound.’ k. The local authority has a reserves policy that supports its future financial sustainability, and its reserves are held in accordance with that policy. Performance management a. Effective performance management arrangements are in place to promote the effective use of the local authority’s resources. Performance is systematically measured across all areas of activity, and performance reports are regularly scrutinised by managers and elected members. The performance management system is effective in addressing areas of underperformance, identifying the scope for improvement and agreeing remedial action. b. There is a corporate approach to identifying, monitoring and reporting on improvement actions that will lead to continuous improvement in priority areas. Improvement actions are clearly articulated and include identifying responsible officers and target timelines. c. The local authority uses self-evaluation to identify areas for improvement. This includes the use of comparative analyses to benchmark, monitor and improve performance. d. The local authority takes an innovative approach when considering how services will be delivered in the future. It looks at the activities of other organisations, beyond its area, to consider new ways of doing things. A full range of options is considered, and self-assessment activity and options appraisal can be demonstrated to be rigorous and transparent. e. Evaluation tools are in place to link inputs, activities and outputs to the outcomes that they are designed to achieve. There is evidence to demonstrate that improvement actions lead to continuous improvement and better outcomes in priority service areas. f. The local authority seeks and takes account of feedback from citizens and service users on performance
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22 when developing improvement plans. g. Improvement plans reflect a pace and depth of improvement that will lead to the realisation of the local authority’s priorities and the long-term sustainability of services. h. Performance information reporting to stakeholders is regular and gives a balanced view of the local authority’s performance, linked to its priority service areas. The information provided is relevant to its audience, and clearly demonstrates whether or not strategic and operational objectives and targets are being met. i. The local authority demonstrates a trend of improvement over time in delivering its strategic priorities. BEST VALUE THEME: 4. Partnerships and collaborative working The public service landscape in Scotland requires local authorities to work in partnership with a wide range of national, regional and local agencies and interests across the public, third and private sectors. A local authority should be able to demonstrate how it, in partnership with all relevant stakeholders, provides effective leadership to meet local needs and deliver desired outcomes. It should demonstrate commitment to and understanding of the benefits gained by effective collaborative working and how this facilitates the achievement of strategic objectives. Within joint working arrangements, Best Value cannot be measured solely on the performance of a single organisation in isolation from its partners. A local authority will be able to demonstrate how its partnership arrangements lead to the achievement of Best Value. Evidence statements - in achieving Best Value, a local authority will be able to demonstrate the following: This means that: 4.1 Members and senior managers have established and developed a culture that encourages collaborative working and service provision that will contribute to better and customer-focused outcomes. 4.2 Effective governance arrangements for Community Planning Partnerships and other partnerships and collaborative arrangements are in place, including structures with clear lines of responsibility and accountability, clear roles and responsibilities, and agreement around targets and milestones. a. Members and senior managers actively encourage opportunities for formal and informal joint/integrated working, joint use of resources and joint funding arrangements, where these will offer scope for service improvement and better outcomes. b. The local authority is committed to working with partner organisations to ensure a coordinated approach to meeting the needs of its stakeholders and communities. This includes: • scenario planning with partners to identify opportunities to achieve Best Value • collaborative leadership to identify Best Value partnership solutions to achieve better outcomes for local people • proactively identifying opportunities to invest in and commit to shared services • integrated management of resources where appropriate • effective monitoring of collective performance, including self-assessment and reviews of the partnership strategy, to ensure the achievement of objectives • developing a joint understanding of all place-based capital and revenue expenditure c. Members and senior managers identify and address any impediments that inhibit collaborative working. The local authority and its partners develop a shared approach to evaluating the effectiveness of collaborative and integrated working. d. In undertaking its community planning duties the local authority works constructively with partners to agree a joint vision for the Community Planning Partnership and integrates shared priorities and objectives into its
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23 planning, performance management and public reporting mechanisms. Service plans clearly reflect the priorities identified through community planning and show how the local authority is working with partners to provide services that meet stakeholder and community needs. BEST VALUE THEME: 5. Working with communities Local authorities, both individually and with their community planning partners, have a responsibility to ensure that people and communities are able to be fully involved in the decisions that affect their everyday lives. Community bodies - as defined in the Community Empowerment Act 2015 (section 4(9)) - must be at the heart of decision- making processes that agree strategic priorities and direction. Evidence statements - in achieving Best Value, a local authority will be able to demonstrate the following: This means that: 5.1 Early and meaningful engagement and effective collaboration with communities to identify and understand local needs, and in decisions that affect the planning and delivery of services. 5.2 A commitment to reducing inequalities and empowering communities to effect change and deliver better local outcomes. 5.3 That engagement with communities has influenced strategic planning processes, the setting of priorities and the development of locality plans. a. Members and senior managers ensure that meaningful consultation and engagement in relation to strategic planning take place at an early stage and that the process of consultation and engagement is open, fair, and inclusive. b. Members and senior managers are proactive in identifying the needs of communities, citizens, customers, staff, and other stakeholders; plans, priorities and actions are demonstrably informed by an understanding of those needs. c. Communities are involved in making decisions about local services and are empowered to identify and help deliver the services that they need. Suitable techniques are in place to gather the views of citizens, and to assess and measure change in communities as a result of service interventions. d. Active steps are taken to encourage the participation of hard-to-reach communities. e. The local authority and its Community Planning Partnership work effectively with communities to improve outcomes and address inequalities. f. A locality-based approach to community planning has a positive impact on service delivery within communities and demonstrates the capacity for change and for reducing inequality in local communities by focusing on early intervention and prevention. g. Members and senior managers work effectively with partners and stakeholders to identify a clear set of priorities that respond to the needs of communities in both the short and the longer term. The local authority and its partners are organised to deliver on those priorities, and clearly demonstrate that their approach ensures that the needs of their communities are being met. h. The local authority engages effectively with customers and communities by offering a range of communication channels, including innovative digital solutions and social media. i. The local authority plays an active role in civic life and supports community leadership. BEST VALUE THEME: 6. Sustainability Sustainable development is one of the two cross-cutting themes that a Best Value local authority should fully embrace across all of its activities. Sustainable development is commonly defined as securing a balance of social, economic, and environmental wellbeing in the impact of activities and
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24 decisions and seeking to meet the needs of the present without compromising the ability of future generations to meet their own needs. The United Nations Sustainable Development Goals (https://www.un.org/sustainabledevelopment/sustainable-development-goals/) provide a fuller definition and set out an internationally agreed performance framework for their achievement. Sustainable development is a fundamental part of Best Value. It should be reflected in a local authority’s vision and strategic priorities, highlighted in all plans at corporate and service level, and a guiding principle for all of its activities. Every aspect of activity in a local authority, from planning to delivery and review, should contribute to achieving sustainable development. Evidence statements - in achieving Best Value, a local authority will be able to demonstrate the following: This means that: 6.1 Sustainable development is reflected in its vision and strategic priorities. 6.2 Sustainable development considerations are embedded in its governance arrangements. 6.3 Resources are planned and used in a way that contributes to sustainable development. 6.4 Sustainable development is effectively promoted through partnership working. a. Leaders create a culture throughout the local authority that focuses on sustainable development, with clear accountability for its delivery across the leadership and management team. b. There is a clear framework in place that facilitates the integration of sustainable development into all of the local authority’s policies, financial plans, decision- making, services and activities through strategic-, corporate- and service-level action. In doing so, the local authority will be able to demonstrate that it is making a strategic and operational contribution to sustainable development. c. The local authority has set out clear guiding principles that demonstrate its, and its partners’, commitment to sustainable development. d. There is a broad range of qualitative and quantitative measures and indicators in place to demonstrate the impact of sustainable development in relation to key economic, social, and environmental issues. e. Performance in relation to sustainable development is evaluated, publicly reported and scrutinised. BEST VALUE THEME: 7. Fairness and equality Fairness and equality is one of the two cross-cutting themes that a Best Value local authority should fully embrace across all of its activities. Tackling poverty, reducing inequality, and promoting fairness, respect and dignity for all citizens should be key priorities for local authorities and all of their partners, including local communities. Evidence statements - in achieving Best Value, a local authority will be able to demonstrate the following: This means that: 7.1 That equality and equity considerations lie at the heart of strategic planning and service delivery. 7.2 A commitment to tackling discrimination, advancing equality of opportunity, and promoting good relations both within its own organisation and the wider community. a. The local authority demonstrates compliance with all statutory duties in relation to equalities and human rights. b. The local authority is taking active steps to tackle inequalities and promote fairness across the organisation and its wider partnerships, including work and living conditions, education, and community participation. c. The local authority and its partners have an agreed action plan aimed at tackling inequality, poverty and addressing fairness issues identified in local communities. d. The local authority engages in open, fair, and inclusive dialogue to ensure that information on services and performance is accessible to all, and that every effort has been made to reach hard-to-reach groups and
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25 7.3 That equality, diversity and human rights are embedded in its vision and strategic direction and throughout all of its work, including its collaborative and integrated community planning and other partnership arrangements. 7.4 A culture that encourages equal opportunities and is working towards the elimination of discrimination. individuals. e. The local authority ensures that all employees are engaged in its commitment to equality and fairness outcomes, and that its contribution to the achievement of equality outcomes is reflected throughout its corporate processes. f. The local authority engages with and involves equality groups to improve and inform the development of relevant policies and practices and takes account of socio-economic disadvantage when making strategic decisions. g. The equality impact of policies and practices delivered through partnerships is always considered. Equality impact information and data is analysed when planning the delivery of services and measuring performance. h. The local authority’s approach to securing continuous improvement in delivering on fairness and equality priorities and actions is regularly scrutinised and well evidenced.
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26 Appendix B: Self-Evaluation rolling Review Programme The following table sets out the Review Programme of self-evaluation exercises to be undertaken from 2022 to 2023 along with indicative timescales. It should be noted that the Strategic Self-Evaluation Framework is designed to be strategic but lite touch, and consistent but flexible enough to ensure that self-evaluation exercises are specifically tailored to the service, function, project, or group being evaluated and designed within the context of that operating environment. For this reason a more detailed evaluation specification will be developed for each exercise following the scoping and preparation work undertaken by the Corporate Management Team Champion and Lead Facilitator(s). Function or activity being evaluated Focus of the assessment Champion Cycle 4 2022 Cycle 1 2023 Cycle 2 2023 Cycle 3 2023 Cycle 4 2023 Service arrangements Risk management arrangements for all aspects of digital and technology Head of Business and Digital ✓ Corporate cross council arrangements Best value follow up Head of People and Organisational Development ✓ Strategic / Partnership / community groups Community Boards / Strategic Leadership Board Head of Audit and Risk ✓ Corporate cross council arrangements Project Boards (follow on from the 2022 refresh of the Project Management Framework) Head of Planning and Regeneration ✓
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27 Appendix C: Options Appraisal process It is expected that Options Appraisal exercises carried out by the council follow the same broad steps, as outlined in Figure 5. on page 14 (unless there are specific industry standards that require an alternative method to be followed or there are tried and tested methods and processes already in place). However please note the following caveat: 1. It is expected that the size, nature, and complexity of each individual Options Appraisal exercise will influence the size and scale of the Options Appraisal process to be used. 2. It is not considered good use of limited resources to spend time and money on options appraisals for decisions which are straightforward and of minimal impact on service provision, or the council’s finances. 3. Decisions in terms of the extent to which the approach set out in Appendices C and D is used (i.e. a basic or enhanced approach) will therefore need to be made in a sensible and proportionate way. The broad steps outlined in Figure 5. on page 14 are set out in more detail in the following pages (28 to 35). These pages set out the enhanced approach, so don’t forget to take into consideration the above caveat and ensure any Options Appraisal that needs to be carried out is progressed in a sensible and proportionate way.
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32 Appendix D: Options Appraisal templates Template for the contextual information brief
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33 Template for the SWOT analysis
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34 Template for scoring the options
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35 Template for the assessment of risks Please note that the approach in place across the council to assessing risk in the Corporate Risk Register, Service Risk Registers, and Project Risk Registers (in line with the Risk Management Strategy) uses scores of 1 = low risk, and 5 = high risk. For the purposes of Options Appraisal these scores / ratings are reversed (i.e. 1 = high risk and 5 = low risk); this is required in order to align the risks scores / ratings accordingly to the scores applied in the other appraisal criteria (i.e. where a higher overall score represents the preferred option). A template is available to carry out the final analysis which brings together all the scores and weightings. This will show the option with the highest score which represents the strongest fit with the appraisal criteria.