Transformation & Change Programme Update
Perth and Kinross Council · 22 April 2026
Back to Finance and Resources Committee — 22 April 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Finance and Resources Committee Date of Meeting: 22 April 2026 Report Title: Transformation & Change Programme Update Report Number: 26/113 Report Author: Charlene Guild, Strategic Lead – Projects & Programmes (interim) Organisational Lead: Thomas Glen, Chief Executive ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to provide Members of the Finance and Resources Committee with an update on progress of the Transformation & Change Programme – Phase Two. This covers the six-month period from 1 October 2025 to 31 March 2026 and provides a full detailed progress summary of individual phase two projects. It also provides an overview of plans for the transition to Phase Three of the programme in July 2026. 1.2 Sections 1. Purpose 2. Recommendation 3. Background and introduction 4. National and Regional Context 5. Transformation and Change Programme Updates 6. Transformation & Change Programme Phase Three 7. Partnership Working 8. Conclusion 9. Appendices 2. Recommendation It is recommended that the Finance and Resources Committee: 2.1 Note the progress made on the Transformation & Change Programme Phase Two since the last report of October 2025 (No 25/250). In addition, members should note the positive progress by individual projects across the programme
Page 2
(Appendix 1) and the plans for developing our approach further in Phase Three. 3. Background and introduction 3.1 Our Transformation & Change Programme phase two has been ongoing since August 2024. Regular reporting of progress, evaluation and delivery of outcomes has been presented regularly to Finance & Resources Committee on a biannual basis. 3.2 Supporting the delivery of the Councils vision of “a Perth and Kinross where everyone can live life well, free from poverty and inequality,” all of our projects and workstreams are aligned with the Corporate Plan strategic priorities and key objectives with defined project outcomes, objectives, and critical success factors. 3.3 As we start to develop plans for Phase Three from July 2026, the Transformation & Change programme continues to be an ambitious area of work which aims to positively impact our communities, our teams, and how they deliver. We are taking into consideration the current national context and local landscape, which simply put, is one of increasing demands and decreasing resources. Moving forward, transformation and innovation will be critical to sustainability and will require a flexible, innovative, and agile approach. Continuing to focus on those areas in greatest need as well as our key corporate priority areas, will be central to our renewed approach. In addition, the continued support of our teams, partners, and communities, will continue to ensure that the people of Perth and Kinross are at the heart of all that we do, as we evolve the programme to face the challenges ahead. 4. National and Regional Context 4.1 SOLACE/Improvement Service National Transformation Programme Nationally, transformation and change activity is being driven by SOLACE and the Improvement Service. The national Transformation & Change Programme is designed to provide a shared framework and learning for local authorities across Scotland to strengthen their approach to large scale, complex transformation, innovation, and change. It brings together Chief Executives, senior leaders and transformation professionals to explore how Councils can respond to the financial challenges, rising demand and increasing public expectations through more deliberate, systemwide transformation rather than isolated improvement activity. There is a clear national direction of travel towards public service reform, with greater emphasis on prevention and early intervention, digital enablement, workforce sustainability, data informed decision making, and collaboration across organisational boundaries to improve outcomes and make best use of limited resources. 4.2 PKC are participating fully in the programme, benchmarking our approach to transformation and business improvement against other councils, discussing the programme with colleagues across the country and contributing to
Page 3
national conversations on the impact of “good” transformation projects. This has reinforced the importance of having clear definitions, strong governance, consistent project management, and sufficient capacity to continue to deliver change at pace and scale. 4.3 Regional Context: Joint Working and Collaboration In addition to the national programme, there is an increasing expectation, which was stated within our recent Best Value Audit on Transformation and Change in 2025, that councils strengthen regional collaboration and joint working where this can add value, reduce duplication and support delivery of shared priorities. Many of the challenges facing local government are common across the different areas and would benefit from more collaborative approaches. We are already working with our regional colleagues in Dundee and Angus on developing areas of joint need as well as more widely across the country and partnerships in specific project areas. 4.4 Our next phase of Transformation should give an opportunity to take a more strategic and selective approach to regional and partnership working, focusing on areas where collaboration can demonstrably improve outcomes, accelerate delivery or make better use of limited specialist capacity. 5. Transformation and Change Programme Updates 5.1 Key Highlights Over the past year, the programme has delivered a number of notable outcomes and milestones with strong progress across major projects with a full detailed update contained in Appendix 1. Key highlights have included: Working Smarter, securing key property assets and shared tenancy arrangements with partners such as NHS Tayside, aligned to the One Public Estate approach. Whole Family Wellbeing, delivering measurable improvements in service access, practitioner collaboration, and direct and indirect support to families. Public Transport in the Community, strengthening community transport provision and completing a major public engagement exercise to inform future delivery. Additional Support Needs, progressing phased expansion of Intensive Support Provision following extensive consultation. Zero Waste and Operations, piloting improved recycling arrangements within schools through close engagement with staff and pupils. ALEO Options Appraisal Review – closure of this project with the recommendation for a Strategic Alliance between all organisations underway. 5.2 In addition, the programme was expanded with the addition of new projects focused on: Health, wellbeing, and attendance within the education workforce; and
Page 4
Automation within People & Culture, improving the use of data, digital tools, and management information. These developments demonstrate the programme’s ability to adapt to emerging pressures while maintaining a clear line of sight to strategic priorities. A full and detailed summary of all current projects within phase two is contained in Appendix 1. In addition, we have included additional appendices to deepen understanding of the current programme and project delivery. Appendix 2 provides a sample of one page overviews of projects in a visual way, giving a breakdown of benefits realised as well as key milestones reached. We have also included a focussed case study of the AI project and its progress in Appendix 3, which sets out an example of the work being carried out and efficiencies being considered while planning for future implementation. 5.3 Best Value Audit – follow up actions Audit Scotland’s, best value thematic audit on Transformation and Change was completed in August 2025 and provided important external validation of the Council’s approach. The audit highlighted strengths across the programme including: A clear and coherent strategic framework for transformation and change Effective programme governance and oversight through the Programme Management Office Strong engagement with communities and partners using participatory service design methods; and Clear communication and reporting to elected Members. 5.4 The audit also made the following recommendations below, with an update on actions taken to address these: 1. Ensure that transformation plans are ambitious enough to address funding gaps and clearly set out projected savings. 2. Establish arrangements to support, coordinate, and report on the Transformation and Change Programme after the PMO's term ends in April 2026. 5.5 As we develop plans for Phase Three of the Transformation & Change programme, we are ensuring we focus on these areas of greatest impact and outcome for people in communities. To do this, we are considering streamlining the programme with an emphasis on those projects which will result in savings, resource efficiencies and improved delivery and outcomes for people. We are also working with our finance colleagues to ensure that we are being measured and clear in our rationale for savings and funding gaps – making these more easily reportable and accessible.
Page 5
Further to this, there are proposals for some change in terms of the PMO approach which would see a consolidation of our transformation and business improvement areas, where there is significant cross over. 3. Conduct Equality and Fairness Impact Assessments for transformation projects, ensuring appropriate detail at each stage. This action is already being noted and will be an integral part of the Phase Three project planning process. 4. Enhance benefits realisation arrangements to demonstrate that the Transformation and Change Programme is delivering its intended outcomes. 5.6 Work has already been completed to ensure that our transformation & change systems have the ability to record benefits realised within projects in real time. These will be reported to F&R Committee through individual project updates. 5.7 We have continued to make steady progress across the programme over the last six months and are now looking ahead to Phase Three which will focus on a more targeted, sustainable and outcomes focused approach, reflecting both the learning from delivery to date and the scale of the financial and service pressures anticipated over the medium term. 6. Transformation & Change Programme Phase Three 6.1 As the programme looks beyond Phase Two, a number of recommendations have been discussed at Transformation Board for taking forward Phase Three activity with a focus on both Transformation and Business Improvement. This will enable a more targeted, sustainable and outcomes focused approach, reflecting both the learning from delivery to date and the scale of the financial and service pressures anticipated over the medium term. In particular, it is important that Phase Three sharpens the strategic focus of transformation projects so that plans are sufficiently ambitious to address funding gaps, with a clearer line of sight between change activity, resources available in the wider organisation, projected savings/resource efficiencies, and protection of outcomes for those in greatest need. 6.2 Recommendations for phase 3 include: Agree criteria and definitions to distinguish Transformation projects from Business Improvement projects allowing clearer classification of existing and future work. Consolidate the current Programme Management Office (PMO) and Business Improvement Team into a single Transformation & Improvement Team (with the team’s reporting line to be confirmed as part of wider considerations on current leadership structures). This includes maintaining strong governance and prioritisation, strengthening leadership and change capacity, and ensuring teams have the tools and support to deliver redesign at pace alongside core service delivery. Workforce
Page 6
considerations are central to this, including health and wellbeing, leadership capability, digital skills, and the capacity to absorb and implement change. Re-classify the current portfolio using the agreed definitions—streamline the transformation programme so only a reduced number of priority areas/projects remain “Transformation,” with the remainder managed as Business Improvement under proportionate governance. Implement a revised governance structure for Transformation & Improvement, using a clear three-tier model: Transformation Board (SLT- level), Project Working Groups, and Core Project Teams (operational delivery). 6.3 Recommendations also highlight the need to enhance benefits realisation and impact reporting, so that the Council can demonstrate more consistently how Phase Three activity contributes to financial sustainability, service quality, and community outcomes, with benefits captured in a timely way and reported through established governance and Committee updates. In parallel, Phase Three should continue to embed equality, fairness and participation, ensuring Equality and Fairness Impact Assessments are proportionate and undertaken at appropriate stages, and that engagement with communities, partners and staff remains integral to project design and decision making. 6.4 A mapping exercise of current transformation and business improvement resources is underway to ensure that we are targeting resources in the areas of most need. At this time, we know that there are approximately eight (FTE) posts dedicated to transformation and business improvement between PKC and the HSCP. In addition, around five of our current transformation projects have dedicated or shared project resource – ranging from Project Manager to Assistant level posts. 6.5 In addition to the current programme and the changes being proposed, the Programme Management Office have started to hold a series of workshops with Senior Officers to explore new opportunities for transformation and innovation in future. There will also be individual meetings with Strategic Leads to look at specific service areas and determine those which would be suitable for transformation activity. Details of progress in this area will be reported to F&R Committee as we progress with plans for Phase Three. 6.6 As we develop, plan and implement Phase Three of the programme, we will undertake an exercise to ensure that resources are targeted within projects where the greatest impact and efficiencies with be realised as well as providing a generic pool of project support and assistance when required. 7. Partnership Working 7.1 HSCP – our collaborative and joint work with our HSCP Transformation & Change colleagues continues through regular meetings. Our HSCP colleagues have attended the PKC Transformation Board to update on project progress and discuss areas of shared interest. It was agreed that this approach would continue on a regular basis moving forward. An update on
Page 7
the HSCP Transformation Programme was tabled to the Perth & Kinross Integration Joint Board Audit and Performance Committee on 23 February 2026, a link to this report is here, and is included as Appendix 4 to this report. 7.2 External Partners - We continue to work alongside our other Local Authority colleagues, specifically on a regional basis, to consider areas of transformation where a regional approach or shared services could prove to be more efficient and effective. We are also working with NHS Tayside on collaborative programmes in leadership development as well as with our ALEO’s on the Strategic Alliance. We will continue to build on and expand these projects with our external partners. 7.3 National engagement – Our PMO continue to be involved in the national transformation and change programme being led by the Improvement Service and SOLACE to consider areas such as public sector reform, shared services, procurement, digital, and governance. Update reports on outcomes achieved will be presented when available. 7.4 Communities and citizens - We have committed to working with our communities and partners through our Corporate Plan key priorities and individual project delivery. Project teams have been conducting extensive engagement activity through service design events, workshops and focus groups as well as other methods such as online questionnaires and surveys, virtual meetings, and research. Some of this activity has been reported through the phase two summary updates found in Appendix 1. The PMO will continue to provide support and facilitation for project teams who need it in terms of engagement methods such as service design, facilitation skills, and tools to collate data in a participatory way. 7.5 Elected Members – we continue to provide regular updates on the overarching Transformation & Change programme as well as detailed summaries on the progress of each individual project at Finance & Resources Committee. In addition, individual project managers are providing detailed briefing sessions to allow Elected members to dive deeper into project areas for greater understanding of expected outcomes and workstreams underway. 7.6 The continuing development of the council’s transformation, change and business improvement activities will aim to compliment and support the refresh of the Council’s Corporate Plan, scheduled to begin later this year, which will consider our current vision and priorities and how we balance the need for service redesign with our focus on the provision of universal services alongside a greater targeted interventions for those individuals and communities which face the greatest challenges across Perth and Kinross. 8. Conclusion 8.1 Over the past six months (October 2025 to March 2026), the Transformation & Change Programme has continued to maintain momentum, with projects progressing against key milestones, additional activity brought into scope to respond to emerging pressures, and further improvements made to benefits
Page 8
realisation and reporting. It has also been a time of planning for the next phase of our programme. 8.2 The transition to Phase Three from July 2026 will build on this progress by taking a more targeted approach to the portfolio, embedding sustainable transformation and business improvement capacity beyond the current PMO arrangements. We will focus on strengthening the current governance processes for progressing and reporting transformation and improvement activity and focussing on the link between transformation activity, deliverable savings/resource efficiencies, and transparent reporting to Members. 9. Appendices Appendix 1 - Phase 2 Project Summary Updates Appendix 2 - Sample of Project Overviews - April 2026 Appendix 3 - AI Case Study Appendix 4 - HSCP Transformation Programme Update - 23 Feb 26