Strategic Performance Framework - latest performance results for Assets and Procurement
North Lanarkshire Council · 1 March 2023
Back to Finance and Resources Committee — 1 March 2023 and its agenda
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref Date 01/03/23 Strategic Performance Framework - latest performance results for Assets and Procurement From James McKinstry, Chief Officer (Assets and Procurement) E-mail McKinstryJ@northlan.gov.uk Telephone Executive Summary Assets and Procurement Solutions sits within the Enterprise and Communities service area of the council and comprises the following areas - asset management, estates management, enterprise project, forward planning and specification, town and community hub development programme, technical and design, procurement and support, and facility support services. The teams play a key role in leading and delivering on a number of key areas that support the delivery of the place based ambition set out in The Plan for North Lanarkshire. This includes the strategic commercial partnership for the enterprise project, asset rationalisation and development, the corporate asset management plan and property rationalisation, the hub development and delivery programme, climate change - committing to net zero, and improving procurement capability and capacity. The work carried out by the teams also supports the delivery of a number of other key areas across the council such as the new supply programme, economic regeneration delivery plan, planning and place making, city deal, the early learning and childcare expansion programme, additional support needs provision, and the leadership and operating model for the hubs. Performance is measured across many of the above service areas and is monitored by the service’s management team as well as within operational teams. This report provides an update of current performance reflecting the service’s key areas of activity. Recommendations It is recommended that the Finance and Resources Committee: (1) Review the high-level performance overview presented in Appendix 1, and the supporting data contained within the linked Excel spreadsheet, and identify where further information is required to understand or investigate performance further. The Plan for North Lanarkshire Priority All priorities
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1. Background 1.1 There are six inter-related strategic frameworks which are key to assessing the success of The Plan for North Lanarkshire and monitoring delivery towards achieving the overall vision by ensuring each stage is appropriately planned, guided, implemented, and governed. 1.2 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. 1.3 The Strategic Performance Framework comprises performance measurement at three levels (as per the diagram on the right). This aims to collectively provide an overview of performance to help understand the impact of council activities on improving services and outcomes for the people and communities of North Lanarkshire. The measures in this Framework allow for day to day activities, and progress towards achieving the long-term vision set out in The Plan for North Lanarkshire, to be regularly monitored, reported, assessed, and scrutinised. 1.4 The Strategic Performance Framework is aligned to the Accounts Commission statutory direction which places a requirement on councils to report a range of information in terms of (1) improving local services and outcomes, and (2) demonstrating Best Value. Key points of note in this respect are that the Accounts Commission also expect to see: (a) A balance in reporting areas of improvement that have been achieved and not achieved. (b) Reporting that is undertaken in a timely manner. (c) Easy access to performance information for all citizens and communities. 1.5 A Performance Reporting Schedule supports the timely submission of a range of performance information that facilitates Elected Members and senior management to undertake regular performance reviews that inform scrutiny, challenge, and decision making processes. This Schedule, endorsed by the Audit and Scrutiny Panel in February 2023, includes Chief Officer’s individual six monthly Performance Reviews at Service Committees in line with the Strategic Performance Framework. 1.6 This report therefore presents the Finance and Resources with the latest performance results for Assets and Procurement for Members’ further review and scrutiny. 2. Strategic Performance Framework Finance and Resources Committee responsibilities 2.1 In line with the terms of reference outlined in the Scheme of Administration, the Finance and Resources Committee is responsible for monitoring and reviewing performance information for the following Ambition Statements from The Plan for North Lanarkshire: 21. Continue to identify and access opportunities to leverage additional resources to support our ambitions. Ambition statement All ambition statements
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22. Facilitate a North Lanarkshire wide approach to asset rationalisation, including with communities and partners. 2.2 The high-level performance overview in Appendix 1 presents Members with a summary of the latest results for each performance indicator within the remit of the Chief Officer (Assets and Procurement). 2.3 The information in Appendix 1 comprises the following: • An ideal direction arrow - this indicates whether a higher or lower figure is the preferred direction of travel. • Measurement unit - for example whether the result is a %, a number, a unit cost (in £), or a ratio. • Performance results for the last four financial years (depending on availability of data) along with the latest year’s target and corresponding RAG status (for indicators where it is appropriate to set targets). • The most recent monthly or quarterly results, along with the corresponding target and RAG status. Note the inclusion of this information is dependent on the measurement frequency of the indicator and availability of data as at the time of reporting. • A trend graph - this captures the direction of travel achieved over the four financial years and includes the most recent monthly or quarterly results where available. • Comments - narrative summarising the current position and providing an explanation for any significant variations in performance. Where applicable, this narrative also highlights the effect of the pandemic on service delivery, e.g. any increase or decrease in the volume of transactions or enquiries processed. 2.4 A large volume of data supports the high-level performance overview in Appendix 1. This is outlined in the latest performance results for Assets and Procurement Excel spreadsheet which is available through the following link for Members to carry out a deep dive and review and scrutinise each performance indicator further. The Menu on the second tab of the spreadsheet contains built in hyperlinks that automatically take the user to a tab for each performance indicator and therefore provides a useful navigation aid to review the contents of the file. • Latest performance results for Assets and Procurement.xlsx Current context 2.5 Assets and Procurement have streamlined office accommodation across the estate and supported management teams as they have moved to more agile ways of working. The service has continued to progress the development of Community Growth Areas to promote inward investment in North Lanarkshire, delivering new build community hubs with three projects at Newmains / St Brigid’s, Riverside, and Chryston opening later this calendar year, 2023. The service also leads on the implementation of a number of national policy initiatives including full roll out of free school meals, nutritional standards for school meals, and climate change duties. A higher figure is better A lower figure is better Key to RAG status Performance is on target and/or within acceptable thresholds Performance does not meet target and is outwith acceptable thresholds Performance surpasses the target and exceeds expectations
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With a significant level of capital and revenue resources under the service’s control, the service closely manages and monitors inflationary and logistical challenges on major capital and revenue projects. Recent performance highlights 2.6 The policy framework that exists for the council’s procurement activity is well developed and in the last procurement and commercial improvement programme (PCIP) the council’s performance assessment moved from quartile 4 to quartile 1. The council has a well established relationship with collaborative framework providers such as Scotland Excel and Hub South West Scotland which enables procurement activities to be progressed in an efficient and effective manner. In relation to the Climate Change agenda, the council has a well-defined five year Climate Plan with good progress being made. Going forward the rate of progress will require ongoing monitoring due to the level of funding and the cost of new technology, albeit there will be a requirement to do so. For school meals the service continuously promotes the benefits of a nutritional meal and the savings it can offer to parents. Areas of performance requiring improvement 2.7 Two indicators which show as requiring improvement relate to the occupancy levels in schools - that being the number of pupils at any given school, compared with the number of spaces within any given school. In the case of primary schools - any school which has occupancy of 80% and above can experience capacity and configuration issues in any given year. A primary school capacity is based on 25 pupils at P1 (or composite classes), 30 pupils at P2 and P3, and 33 pupils at P4 to P7. Understandably, pupils do not present in perfect numbers as per their age and stage. Therefore, a couple of more pupils (say 34 pupils in P3) can require extensive reconfiguration across the whole school. While it is optimal for schools to operate around 80-85% occupancy, this leaves very little room for a drop in occupancy. In secondary establishments, similarly, there are different capacity numbers for practical (20) and non-practical (30) subjects, and a range of subject choices from S3 and above. Again, there is a fine balance to be struck between schools being efficient, and schools experiencing timetable issues due to pupil choice. In both sectors, it is the view from an operational perspective that it is better to have some under occupancy, rather than have over occupancy. Where there is significant under occupancy, the council does look for ways to reduce the capacity of the school while keeping the school sustainable. Different uses of spaces for use by cluster staff, or as touchdown spaces are areas being explored. However, these spaces must be within the right geographical area for the user demand. Equally, capital investment is required to adapt spaces and maintain the secure bubble of the school. Capital funding has in recent years, primarily focused on creating spaces where there is excess occupancy (i.e. too many pupils, too few spaces), rather than on under occupancy. However, the teams in Assets and Procurement will look to work with Education & Families Services, responsible for the delivery of initiatives which could use spaces within establishments - whilst recognising that there is a fine line between
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removing some capacity and removing too much capacity which then presents a capacity issue in future years. Next steps 2.8 As noted in paragraph 1.5, the Strategic Performance Framework is supported by a Performance Reporting Schedule. This sets out the arrangements for service, statutory, and Strategic Performance Framework reporting to committee. In this respect the relevant Committees can expect to receive the following in respect of insert Assets and Procurement during 2023/24. Report Description Committee Committee cycle Public Sector Duties Climate Change annual report As part of its climate change duties, the council is required to complete an annual submission to demonstrate that as a public sector organisation it is contributing to the nationally set climate change targets as well as adhering to its other responsibilities in terms of both adaptation and sustainability. Environment and Climate Change Committee Cycle 1 in 2023 Annual procurement report This report discharges the council’s duties in terms of the Procurement Reform (Scotland) Act 2014, to prepare an annual report on its regulated procurement activities. Finance and Resources Committee Cycle 3 in 2023 North Lanarkshire Properties NLP LLP is a limited liability partnership established in 2013 between the council and its wholly owned company, North Lanarkshire Property Investments Ltd. NLP LLP undertakes the marketing, leasing, and management of the council’s commercial property portfolio (shop units, office accommodation, business centres, industrial yards, and storage units) and, on behalf of the Council, manages legacy properties which remain in the council’s investment property portfolio. It also delivers services in relation to externally owned properties that the council leases for its own operational use and provides general advice on lease transactions. A six-monthly report provides a performance and finance update to Committee. Finance and Resources Committee Cycles 2 and 4 in 2023 3. Measures of success 3.1 Measures of success include: • Regular oversight and monitoring of performance across the organisation to gain assurances in terms of governance and accountability. • Regular review and challenge processes to scrutinise the performance of the council to ensure effective use of resources and that resources are directed in accordance with agreed policy and according to priorities, while ensuring sound decision making and clear accountability for the use of resources in achieving improved outcomes for service users and the local community. • Performance monitoring, management, and reporting arrangements that support
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the demonstration of improved performance in local services and outcomes, and the delivery of Best Value. 4. Supporting documentation 4.1 Appendix 1 - High-level performance overview Chief Officer (Assets and Procurement)
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5. Impacts 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 Finance? 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 Resources? 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? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 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?
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Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? Managing and monitoring service performance supports the ongoing monitoring of the service’s risk register. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.
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Appendix 1 Assets and Procurement High-level performance overview - as at January 2023
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