Strategic Performance Framework - latest performance results for Assets and Procurement
North Lanarkshire Council · 13 September 2023
Back to Finance and Resources Committee — 13 September 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 JMcK Date 13/09/23 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 07939 281102 Executive Summary Assets and Procurement 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 Ambition statement All ambition statements
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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 aligned, planned, guided, implemented, and governed. 1.2 These 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. 22. Facilitate a North Lanarkshire wide approach to asset rationalisation, including with communities and partners.
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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 five 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 five 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 continue to streamline office accommodation and support management teams as they continue to adopt more agile and hybrid modes of operation. The hub programme continues to experience significant cost increases linked to global and national influences, and given the size and scale of spend linked to this programme – any increases are significant. The service continues to lead on the implementation of a number of national policy initiatives including full roll out of universal free school meals, for P6/P7, ensuring compliance with the Nutritional Standards for Food and Drink in Schools (Scotland,) Regulations (2020), for school meals, and climate change duties – and continues to prepare for the potential deposit 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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return scheme which has been delayed at a national level. The council have a largely
decentralised procurement model, in which the Corporate Procurement Team ("CPT")
provide the strategic governance through GCSOs and provide professional expertise
through officers that lead or support Regulated procurement activity. CPT continue to
be responsible for: consolidating the council’s Annual Procurement Report (which is a
legislative requirement); managing the council’s contract register of external
expenditure; and providing organisational procurement reporting. The overall
procurement function of the council is assessed every couple of years by third party
agency through procurement capability assessments ("PCIP") for which CPT is leading
an internal procurement improvement plan. Next PCIP is anticipated 2024.
As part of the council’s Programme of Work governance structure Assets &
Procurement are heavily involved in the follow Programme of Work Boards:
• Transforming Places;
• Invest in North Lanarkshire;
• Sustainable Futures;
• Digital NL; and
• One Service
Recent performance highlights
2.6 Within the area of corporate procurement, the service continues to ensure 100%
performance in areas such as: ensuring those contracts which exceed £1m include
community benefit requirements; and ensuring all qualifying contracts are awarded to
those who meet fair work criteria. In addition, the service is exceeding targets around
the percentage of contracts that are awarded to SMEs.
In addition, since the last report to Committee, Newmains and St Brigid’s Community
Hub was signed off on 6th February 2023 and opened on 20th February 2023. The
Hub has been awarded the following:
Scottish Design Awards – Best Education Building 2023; and
Scottish Design Awards – Grand Prix Best Architecture Project 2023.
It is also currently shortlisted for the following:
Herald Property Awards – Best Commercial Project 2023;
Learning Places Scotland Awards – Inspiring Learning spaces; and
Learning Places Scotland Awards – Pupil/Student Experience.
Riverbank Community Hub was signed off on 11th August 2023 and opened on 18th
August 2023.
Areas of performance requiring improvement
2.7 Within procurement two measures have fallen short of the expected target range: firstly
the performance was below target in spend made through collaborative established
agreements; and secondly below target in the percentage of procurement spend with
SMEs. It should be noted that there will always be natural fluctuation in year on year
percentages across measures due to the council’s contracting profile with situational
needs. We anticipate the measures will have improvement in future years and track
back towards a stable position, particularly since we are exiting the post-pandemicPage 5
years and supply chains recover and stabilise. The two indicators linked to occupancy levels in schools were reported in the last update in March. As these are annual indicators, the results linked to these and the associated commentary has not changed since the last update – in essence, whilst the service continues to look for other uses for under occupied schools, it is preferred that any given school is under capacity than over capacity. Finally, in relation to free school meal update, performance is lower than the agreed target. There are various factors which influence this, including the slow transition back to a new normal following the pandemic (where pupils were operating ‘bubbles’ in the school meal service), and the changes to The Nutritional Standards for Food and Drink in Schools (Scotland) Regulations, (2020), which has impacted on the frequency of what would be considered ‘children’s favourite dishes’ being served on the menu due to the stricter changes in the nutritional elements with the new regulations. 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. • Latest report in February 2023: https://mars.northlanarkshire.gov.uk/egenda/images/at t99883.pdf Environme nt and Climate Change Committee Cycle 1 in 2024 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. • Latest report in May 2023: https://mars.northlanarkshire.gov.uk/egenda/images/at t100694.pdf Finance and Resources Committee Cycles 2 and 4 in 2023
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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 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 James McKinstry 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 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 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 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. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐
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Appendix 1 Assets and Procurement High-level performance overview - as at July 2023
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