One Place One Plan - Governance Update
North Lanarkshire Council · 1 December 2022
Back to Policy and Strategy Committee — 1 December 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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North Lanarkshire Council Report Policy and Strategy Committee Does this report require to be approved? ☒ Yes ☐ No Ref DM Date 01/12/22 One Place One Plan - Governance update From Des Murray, Chief Executive E-mail murraydes@northlan.gov.uk Telephone 01698 302350 Executive Summary In the four years since the establishment of a One Place with One Plan approach with a vision of inclusive growth and prosperity for all, The Plan for North Lanarkshire and its associated governance arrangements and operating model have continued to undergo incremental refinements to ensure ongoing alignment. This has enabled an approach to policy setting and strategic and operational decision making that has been unwavering in its direction. Ensuring ongoing alignment in this way has also been instrumental in supporting the delivery of a wide range of programmes, projects, and activities that have been focussed on regenerating the social and physical environment of local communities and setting the foundations for a place based approach. In this respect, decisions on the regeneration programme for the place the vision have informed the investment strategy for the future of North Lanarkshire’s town centres and enabled the next delivery phase for the Community Hubs to be prioritised and progressed. Achievements reported to Committee in the annual Programme of Work update have highlighted successes in delivering the new housing supply programme, tower strategy, housing investment programme, and City Deal developments, as well as implementation of parks masterplans to create country parks for the future and approval of a connectivity contract as the means by which to transform North Lanarkshire’s digital infrastructure. These successes have been achieved against a local backdrop that has many different and complex social, economic, and health issues requiring a wide range of care, supports, and services. The effects of the pandemic have exacerbated many of these issues, impacting more intensely on those in the most vulnerable situations. As such, the vision for inclusive growth and prosperity for all remains as relevant now, if not more so, than it was before. Responding to external obligations has also added to the pressures with financial matters, large-scale public sector reform, environmental duties to reduce carbon and waste, the effects of the UK departure from the EU, and the impact of inflation on the cost of living and council resources compounding local issues. There is no doubt the local government landscape is significantly changing, and changing in a way that has not been experienced before. The council needs to be prepared if it is to effectively manage its way through the extent of the business changes to come, and create (and sustain) the conditions that mean local people will thrive now and in the future. This will require further structural refinements to ensure ongoing alignment of vision, plan, governance, and operations in order to maintain the focus on ensuring inclusive growth and prosperity for all.
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1. Background 1.1 The vision for North Lanarkshire to be a place of inclusive growth and prosperity for all was founded on the evidence presented in the report, A Shared Ambition for North Lanarkshire, approved at Committee in September 2018. 1.2 The 2018 report also set out the operating framework required for the council to enhance the alignment of, and synergies between, strategic and operational functions in order to successfully deliver on the vision which was thereafter formalised through approval of The Plan for North Lanarkshire in February 2019. This set a very clear focus and compelling narrative in terms of what the council is working towards. 1.3 Since then, delivery of the vision has been informed by a dynamic strategic planning process facilitated through the Programme of Work. In the face of a fast changing national policy context and uncertain local government future, the Programme of Work process has stabilised the strategic direction of the council, while allowing for appropriate flexibility in the operational delivery of many complex inter-connected programmes, projects, and plans. 1.4 Structural realignments have also continued to enable the narrative to become embedded consistently throughout all strategic management, service delivery, and corporate governance approaches across the council. Approved at Committee in This report therefore outlines the first phase of structural refinements for Committee approval. It updates on realigned reporting lines to ensure a more balanced senior management team and the formalisation of Chief Officer job titles to ensure operating structures and governance arrangements continue to align. A programme of linked reviews is also highlighted; these will be undertaken in line with local commitments and priorities and the advancement of national developments, and are accompanied by indicative dates for future reports to Committee to allow Members’ due consideration and approval. Recommendations It is recommended that the Policy and Strategy Committee: (1) Approve the deletion of the Head of Environmental Assets post with immediate effect - realising one off savings of £54,083 for 2022/23 and recurring savings of £126,992 for 2023/24 onwards - and the realignment of these functions within existing remits (as noted in paragraphs 2.5 and 2.6 and Appendix 2), (2) Acknowledge changes to Head of Service reporting lines and the formalisation of Chief Officer job titles (with immediate effect) to ensure council operating structures and governance arrangements continue to align (as noted in paragraphs 2.4 and 2.11, and depicted in Appendix 3), and (3) Are aware of the intent for a future programme of linked reviews to be undertaken in preparation for the extent of the business changes to come, and the indicative dates for future reports to the Policy and Strategy Committee in this respect (as noted in paragraphs 2.15 to 2.17). The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements
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December 2020, the Delivering for Communities report further strengthened the focus on communities and ensured the structure of the council’s senior management team fully reflected the model established through the nine Community Boards. 1.5 The response to, and recovery from, the coronavirus pandemic has changed the landscape (both locally and nationally) within which The Plan for North Lanarkshire requires to be delivered. The impact of inflationary pressures (as reported to the Policy and Strategy Committee in September 2022) has created significant cost of living implications for the people and communities of North Lanarkshire, exacerbating conditions for those in the most vulnerable situations. 1.6 Locally, inflationary pressures (such as rising contract costs, availability of suppliers and service providers, increasing costs and availability of supply chain materials, and escalating energy prices) have also had implications on the ability of the council to maintain a seamless approach to delivering services and progressing capital programmes that seek to mitigate against the range of different and complex economic, social, and health issues that exist, thus impacting on the vision to improve outcomes equally for all of North Lanarkshire’s towns, communities, homes, and individuals. 1.7 Nationally, the creation of the National Care Service - the biggest public sector reform to have been undertaken in decades - has significant implications locally that have yet to be fully defined. This will undoubtedly impact on the future delivery of the council’s vision and the support required for vulnerable individuals and families at a time when this is critical. 1.8 Mindful of the demographic, social, and economic profile - and the continuously changing and complex landscape with significant financial challenges to come for local government - a commitment was made in the Programme of Work report to the Policy and Strategy Committee in March 2022. This set out the intention to carry out further work during 2022/23 to reframe the Programme of Work in line with the North Lanarkshire context presented through the Health Check Indicators. 1.9 The reframed Programme of Work (scheduled to be submitted to the Policy and Strategy Committee in March 2023) will be presented within the context of the updated Medium-Term Financial Plan (MTFP), which was reported to Committee in September 2022. The MTPF assists in ensuring resources are aligned to the key priorities outlined in The Plan for North Lanarkshire and that the Programme of Work is affordable and sustainable. The MTFP also reflects the risks and volatility of inflationary pressures and forecasts the potential financial implications therein. 1.10 Moving forward, the council needs to be prepared if it is to effectively manage its way through the extent of the complex and unprecedented business changes to come. It needs to be able to create (and sustain) the conditions that mean local people will thrive now and in the future. This requires further structural refinements, set out within this report, in order to ensure ongoing alignment of vision, plan, governance, and operations and maintain the focus on ensuring inclusive growth and prosperity for all. 2. Further refinement and alignment 2.1 The next stage of structural realignments within this report maintains the operating model and service groupings listed below which were originally established in September 2018 (see Appendix 1): • Enterprise and Communities
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• Education and Families • Adult Health and Social Care • Chief Executive’s services 2.2 Members will recall that by grouping service functions around relationships with communities and the key stages of a person’s life, efforts have remained focused on addressing the social, economic, and health conditions prevalent within each life stage in each community. Combining skills and resources through the structural realignments in September 2018 - for One Place with One Plan - has enabled real and sustainable solutions to be developed with, and for, North Lanarkshire’s communities. 2.3 The next stage of structural refinements and alignments propose a further reconfiguration of specific functions in order to safeguard the sustainability of the organisation’s capacity, ensure already challenged resources are maximised, and strengthen the development and delivery of solutions through an integrated council and community approach. The specific changes in this respect are detailed in paragraphs 2.4 to 2.12 below and depicted in Appendices 2 and 3. 2.4 Appendix 2 also sets out a realignment of Head of Service reporting lines to ensure a more balanced senior management team. Under the new arrangements, Depute Chief Executive responsibilities will incorporate the strategic co-ordination of Enterprise and Communities functions. This new oversight by the Depute Chief Executive will further integrate and strengthen the delivery of the range of place based programmes and projects while consolidating the critical relationship therein with Education and Families. This will also provide important opportunities to capitalise on existing synergies, the use of resources, and economies of scale. Strengthening Place and Community Operations 2.5 With a vacancy arising in the Head of Service post for Environmental Assets, this provides an opportunity to reframe the council’s operating model and further strengthen the aim to put people and communities at the heart of the change that The Plan for North Lanarkshire aims to achieve. By creating (a) a single community operation and (b) a single place based operation, this aims to move attention upstream of service delivery and focus on creating local place based conditions that support inclusive and green growth and enable people to thrive. 2.6 As noted in Appendix 2, the proposed deletion of the post of Head of Environmental Assets, with immediate effect, will result in recurring savings of £126,992 for 2023/24 onwards. One off savings of £54,083 will also be achieved for 2022/23. This deletion will result in a reconfiguration requirement for the following posts: • Head of Regulatory Services and Waste Solutions - following the transfer of responsibilities for Street Cleaning, Grounds Maintenance, Cemetery Services, Roads Maintenance Operations, and Country Parks for the Future. • Head of Planning and Regeneration - following the transfer of responsibilities for Roads Structures and Designs. 2.7 It is expected that the benefits achieved by reframing place and community operations will impact positively on achieving an effective balance between the strategic and operational aspects of Community Boards. As such, this will be key in the review of the effectiveness of Community Boards which is currently underway and due to conclude and be reported on early in 2023.
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Alignment of governance and functions 2.8 Chief Officers1 (i.e. the Chief Executive, Depute Chief Executive, and Heads of Service) are already subject to certain rules and obligations such as those defined by law or prescribed in their Conditions of Employment, the council's Scheme of Delegation, Standing Orders, Financial Regulations, and Contract Standing Orders. The council’s approved Chief Officers Code of Conduct provides a framework within which Chief Officers are expected to undertake their duties in a manner that meets the required standards for good governance. 2.9 Chief Officers also fulfil various statutory officer posts within the council: • The post of Head of Paid Service (the Chief Executive) was established under the Local Government and Housing Act 1989 and is responsible to councillors for the staffing of the council and ensuring the work in different departments is co- ordinated. • The Monitoring Officer was established under the Local Government and Housing Act 1989 and is responsible for ensuring that the council observes its governance arrangements and operates in accordance with legal requirements. This includes supervising legal compliance, ensuring there is no maladministration, and monitoring the conduct of councillors and officers. • The Chief Financial Officer (Section 95 Officer or Senior Financial Officer) was established under the Local Government (Scotland) Act 1973 and is responsible for the financial affairs of the council. • The Chief Social Work Officer was established under the Social Work (Scotland Act) 1968. Councils are required to appoint a professionally qualified Chief Social Work Officer to provide members and senior officers with effective, professional advice about the delivery of social work services. 2.10 The Scheme of Delegation sets out the powers delegated by the Council to Chief Officers and other managers. The Scheme is intended to facilitate the efficient conduct of council business by clearly setting out the nature and extent of the powers delegated to officers by the Council. 2.11 In line with the long standing practice set out in paragraphs 2.8 to 2.10 above, it is intended to reconfigure Head of Service job titles to reflect that of Chief Officer in line with that already set out in the council’s governance and Code of Conduct arrangements. In this respect, the future senior management structure and functional overview of the council is set out in Appendix 3. This reflects the formalisation of the Chief Officer job titles, with immediate effect, including consideration of the statutory roles set out in paragraph 2.9 above. 2.12 More importantly, the formalisation of Chief Officer job titles ensures the council’s operating structures and governance arrangements continue to align and broadly reflect the approved Scheme of Administration (October 2022). The Scheme of Administration, as Members are aware, provides the details and remits of committees and other groups of the council and the delegation of authority to carry out council functions. 1 According to the House of Commons, Communities and Local Government Committee (2014) Chief Officers are defined as those employed in Chief Executive, tier 1, and tier 2 roles. A tier 1 role is broadly one with strategic management responsibilities, often with statutory or constitutional duties, such as a director, monitoring officer, or deputy head of paid service. In most cases tier 1 officers report directly to the Chief Executive. Tier 2 officers are usually operational managers such as heads of major functions, as well as assistant or deputy directors. While this is a definition used in England and Wales (and there is no such statutory definition in Scotland), it is considered a helpful form of words to outline the purpose of a Chief Officer in local government.
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Next steps 2.13 As noted in section 1 of this report, the fast changing national policy context and uncertain local government future requires to be kept under ongoing review to ensure the council continues to create the conditions for its operating model to thrive and support local people and communities in line with the vision set out in The Plan for North Lanarkshire. The intent for a future programme of linked reviews (to be undertaken in line with local commitments and priorities and the advancement of national developments) is therefore set out in paragraphs 2.15 to 2.17 below). 2.14 The information regarding the programme of linked reviews includes an indicative timeline of when future reports are scheduled to be presented to the Policy and Strategy Committee in this respect. It is expected that this programme of reviews will also result in future realignments below Chief Officer level which will be undertaken under the already approved Scheme of Delegation; this includes alignment around support functions. Council assets and properties and associated services and functions 2.15 In line with the anticipated award for the enterprise strategic vehicle contract and the mobilisation of the new approach to delivery for the full range of interconnected asset, property, and infrastructure investments, a review of council assets, properties, and associated services and functions will be undertaken during 2023. Members will recall the enterprise strategic vehicle aims to achieve an integrated client function for asset management across the council with phase one contract awards expected to be made for housing and corporate services (October 2023) and roads and winter services (December 2023). Phase two (from 2026) will thereafter aim to optimise asset related arrangements that underpin the delivery of The Plan for North Lanarkshire and allow further integration and development of strategic supplier relationships. The outcome from this review is expected to be reported to the Policy and Strategy Committee in December 2023. This review includes due consideration of the potential for the future integration of two existing Chief Officer posts. The longer-term implications of the National Care Service (NCS) on future council functions 2.16 The National Care Service (Scotland) Bill was published in June 2022. It allows Scottish Ministers to transfer social care responsibility from local authorities to a new, national service. This could include adult and children’s services, as well as areas such as justice social work - but this has still to be determined. Scottish Ministers will also be able to transfer healthcare functions from the NHS to the National Care Service. Policy and Strategy Committee were provided with a report in September 2022 which provided an update on the position of the Bill at its current Stage 1 position. The NCS Bill will require Crown consent and it is expected that this consent will be signified at Stage 3 in the process, which is expected to be in the summer of 2023. In view of the significant and wide-ranging impact which the NCS proposals will have on the council and the future delivery of support to individuals and families, the Policy and Strategy Committee (in September 2022) approved the establishment of a Member Officer Group to guide the council’s future engagement with the Bill process, support planning and management of the potential impacts for the council, and ensure the delivery of public services remain steadfast during what is expected to be a significant period of change.
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The Bill also has significant implications for the council in terms of the proposed transfer of existing functions and staffing, the wider impact on service delivery and delivery of The Plan for North Lanarkshire, and on the future functions of the council. An initial calculation suggests that up to 27% of the council’s workforce / resource base could be in scope to transfer to the NCS. As such, an Officer Working Group is in place to ensure ongoing oversight in relation to the operational impact on future council functions. The work of this group will include an evaluation of the impact of the NCS Bill on the six strategic / statutory cross council functions within the Chief Executive’s Service (i.e. legal and democratic, finance, people resources, business and digital, strategic communications and engagement, and audit and risk) and the future streamlining and/or structural realignments required thereafter. This review will progress in line with the developments towards the enactment of the National Care Service (Scotland) Bill and future timings may therefore be subject to change. However, it is anticipated that the outcome from this review will be in a position to be reported to the Policy and Strategy Committee in December 2024. This review includes due consideration of the potential for the future reduction of Chief Officer posts in the Chief Executive’s Service from six to five. In advance of this, a review of the council’s business strategy and business development functions will seek to further realise synergies that support a one council approach. The outputs from this review, scheduled to be undertaken during 2023 - 2024, will inform part of the aforementioned evaluation of the impact of the NCS Bill on the six strategic / statutory cross council functions within the Chief Executive’s Service. National Discussion on the future of Education 2.17 Following the launch by the Scottish Government and CoSLA of “Let’s Talk Scottish Education”, a National Discussion on the future of education was established to run between September and December 2022. This follows the publication of the Muir report (Putting Learners at the Centre: Towards a Future Vision for Scottish Education) in March 2022, which recommended a National Discussion to create a compelling and consensual vision for the future of Scottish education. The vision that is created following the National Discussion will set out what education in Scotland needs to look like in the near future and for twenty years from now. It is expected the outcomes from the national discussion will result in an interim report to the Cabinet Secretary for Education and Skills by the end of 2022, with a final report in March 2023. National developments in this respect will continue to be kept under review and actioned as required, with updates provided to Committee at key development points. 3. Measures of success 3.1 Measures of success include maintaining, and sustaining, the organisational capabilities and capacity critical to delivering on the shared ambition of inclusive growth and achieving prosperity for all in line with The Plan for North Lanarkshire. 4. Supporting documentation
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4.1 Appendix 1 - Council operating model (established in September 2018). Appendix 2 - Proposed workforce changes, with immediate effect. Appendix 3 - Senior management structure and functional overview, including the reconfiguration of reporting lines for Enterprise and Communities Chief Officers, with immediate effect. Des Murray Chief Executive 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? Proposed workforce changes (detailed in paragraph 2.6 and Appendix 2) - with immediate effect - will realise one off savings of £54,083 for 2022/23 and recurring savings of £126,992 for 2023/24 onwards. Findings arising from the programme of linked reviews have the potential to result in further savings; these will be identified and reported once each review has concluded. 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 and Organisational Development? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Proposals for workforce implications are detailed in paragraphs 2.4, 2.5, 2.6 and 2.11 and Appendices 2 and 3. These changes will be undertaken explicitly in line with the council’s Managing Workforce Change Policy. Formal consultation with stakeholders, including Trade Unions, has commenced.
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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? 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? Without appropriate alignment of the vision, plan, governance, and operations, there is a risk in terms of the decision making and delivery of the extensive range of local regeneration and transformation elements required to achieve inclusive growth and prosperity for all. The information presented in this report therefore aims to contribute 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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Appendix 1 Council operating model (established in September 2018)
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Appendix 2 Proposed workforce changes, with immediate effect Post Current establishment FTE Proposed adjustment Proposed establishment FTE Salary cost of adjustment £ On-costs £ Turnover £ Total cost / saving £ Head of Environmental Assets 1.0 Delete 1.0 FTE 0.0 100,518 33,158 (6,684) 126,992 Head of Regulatory Services and Solutions 1.0 Reconfigure 1.0 FTE to Chief Officer of Community Operations 1.0 0 0 0 Head of Planning and Regeneration 1.0 Reconfigure 1.0 FTE to Chief Officer of Place 1.0 0 0 0 Total 3.0 2.0 100,518 33,158 (6,684) 126,992 Summary of workforce changes Net change in employee costs Net change in establishment (FTE) Posts deleted: Vacancy 1.0 Redeployment 0 VRS / early retiral 0 Posts created: 0 Net change: 1.0
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Appendix 3 Senior management structure and functional overview Including the reconfiguration of reporting lines for Enterprise and Communities Chief Officers, with immediate effect.