Transformation and Change Programme Update
Perth and Kinross Council · 18 September 2024
Back to Finance and Resources Committee — 18 September 2024 and its agenda
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PERTH & KINROSS COUNCIL FINANCE & RESOURCES COMMITTEE 18 SEPTEMBER 2024 TRANSFORMATION AND CHANGE PROGRAMME UPDATE Report by Strategic Lead - Projects and Programmes (Report No. 24/262) 1. PURPOSE 1.1 This report provides an update to the Finance and Resources Committee on the progress of the Transformation & Change programme to date along with benefits realised in phase one. 1.2 In addition, the report includes a number of actions underway from 1 July 2024 to progress the programme into phase two including: • Development of a formalised Programme Management Office which will have responsibility for oversight, monitoring and reporting of the Programme. • Planning for a variety of development and support opportunities being provided / offered for Project Teams with Service Design principles at the centre of the programme. • Definitive Phase 2 programme outline with individual projects being consolidated into a full portfolio approach. • General risks associated with the programme. 2. RECOMMENDATIONS 2.1 It is recommended that the Finance and Resources Committee: (a) Approve that Phase One of the Transformation and Change programme is complete, and that delivery of Phase two is now underway and will continue to evolve as we progress (b) Note the benefits realised in phase one of programme (c) Approve phase two approach with the development of a formal Programme Management Office (PMO) model (d) Note the overarching governance structure for the Programme. 3. STRUCTURE OF THE REPORT 3.1 This report is structured over the following sections: Section 4: Background Section 5: Phase one summary Section 6: Phase two proposals Section 7: Conclusion Appendix 1 – phase one benefits realised Appendix 2 – phase two programme list
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4. BACKGROUND 4.1 In June 2022, the Council approved the Transformation & Change Strategy allowing the development of the Transformation and Change programme, to support the delivery of the Council’s vision of “a Perth and Kinross where everyone can live life well, free from poverty and inequality”, together with the strategic priorities and key objectives outlined in the Corporate Plan 2022- 2027. 4.2 The overarching aim of the Transformation and Change programme is to support the delivery of services to the people of Perth and Kinross, particularly those in greatest need. Council agreed that the programme would be developed and phased over a five-year period with workstreams undertaken in Phase One being key to setting the successful foundation for the delivery of the programme in future. 4.3 There are currently four different approaches included under the overarching banner of transformation and change: • Transformation – changing the way that we work which will be significantly different from current ways of working e.g., a marked change in the form, nature, and appearance of the services we deliver, how and where we deliver them. • Service Improvements –improved ways of working led by teams and services to deliver better outcomes for communities, improved efficiency, and productivity. • Re-structure and consolidation – changing the way services and teams are configured to deliver better outcomes and service priorities. • Budget efficiencies - budget and service reductions to work within the financial constraints facing the Council, whilst focusing on agreed priority areas. 4.4 Over the past two years, there have been a number of day-to-day service improvements and budget efficiencies realised by individual services and teams. Details of these changes, savings and improvements are reflected in our Annual Performance Report due to be reported to Council in October. Our Transformation & Change Programme Management Office have responsibility for supporting, co-ordinating and reporting on the progress of complex transformational projects which in some cases have many workstreams, interdependencies across the organisation and requirement for cross team working. 4.5 From July 2022, we have progressed through Phase One of the programme using a combination of these approaches, allowing us to make savings, shift expenditure to cover emerging new priorities and help deliver a balanced budget. Areas of particular focus over this time have been the Senior Leadership Review and consolidation workstreams, bringing together areas of corporate and operational work where there are particular similarities, overlap or synergies.
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4.6 We have also made progress in the cultural change programme which has been designed to overarch and support transformation & change work within the organisation and will also continue to be delivered into Phase T.wo. Workstreams have been designed to support our staff, set the right conditions, and enable behavioural change as we move through our transformation programme. We have continued to focus on our purpose, vision and values ensuring that these are reflected in our behaviours and that we are all responsible for and working in a culture where everyone is valued and treated with respect. 4.7 It is important that our Transformation and Change Programme remains flexible with the ability to adapt to changes in the local and national policy and legislative landscape where required. This can, at times impact on the speed of delivery but ensures that we continue to put our corporate priorities at the forefront of the project, focussing on the key areas for change and improvement. We are also focussing our resources in this area to ensure we are prioritising those areas of transformation which will have the greatest reach and impact 4.8 As we move forward into Phase Two of the programme, we will continue to formally report to Finance & Resources Committee on progress, twice a year. In addition, a series of quarterly member briefings which focus on specific projects are being scheduled for Elected member participation, discussion and information. 5. PHASE ONE SUMMARY 5.1 We have regularly reported on the progress of the phase one Transformation & Change programme since 2022 with a full report being presented to F&R Committee in September 2023 (Report No. 23/245). Following this, an update was reported to full Council on 28 February 2024 (Report 24/63 Refers) with phase one project comprising: • Finance consolidation • Property consolidation • Strategic Planning and Performance consolidation • Human Resources and Organisational Development consolidation • Customer Services consolidation • Press and Communications consolidation • Professional and Business Support Phase 1 • Community Engagement • Strategic Commissioning and Procurement 5.2 All of the consolidation workstreams have now concluded in line with the Senior Leadership restructure and these changes have been embedded within the organisation. Further to this, we have started to develop the redesign projects for some of the areas above and in particular, the last three projects named will carry forward into Phase Two and updates to Committee on progress will continue.
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Senior Leadership Review 5.3 The Senior Leadership Review was the most significant undertaking in phase one of the programme as an overarching organisational programme in itself. The Review progressed the design and delivery of a new structure for senior leadership and was a significant undertaking which was approved in June 2023 at full Council, implemented from August 2023 and finalised from 1 April 2024. Recent changes in August 2024 to the Executive Leadership Team structure will result in additional savings that will be reported in due course. 5.4 The Strategic Leadership Team (SLT) has realigned responsibilities and resources which will form part of individual Phase Two redesign projects and review the Council’s internal governance arrangements, including the introduction of themed boards linked to Corporate Plan priorities. There is also a greater emphasis on community engagement, service redesign and cultural change going forward. 5.5 This review has resulted in significant savings of around £789,000 per annum and fully realised as a cumulative total of £2.255 million in 2026/27: 2023/24 £’000 2024/25 £’000 2025/26 £’000 2026/27 £’000 Annual Saving 138 664 664 789 Cumulative saving 802 1466 2,255 Consolidation Workstreams 5.6 Driven by the need to take a more collaborative approach across all areas of the organisation, as already referenced, Phase One included nine consolidation workstreams as set out above and brought together teams historically disaggregated under newly formed single points of management. This has already addressed areas of duplication, delivered on initial financial savings, introduced the opportunity for greater consistency and allowed for better accessibility to the people we serve. These projects are now complete, however in keeping with the Leadership Development programme in Phase Two, there will be many areas carried over as service structure redesign projects. Phase one savings related to consolidation projects have been reported as follows:
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23/24 £’000 24/25 £’000 25/26 £’000 Total £’000 Finance 69 131 284 484 Business Support 112 166 279 557 Leadership 132 0 0 132 Property 0 45 78 123 Performance 20 54 72 146 HR/OD 40 35 276 351 Strategic Commissioning 0 74 100 174 CIAM 64 0 0 64 437 505 1,089 2,031 Cultural Change 5.7 The cultural change programme – Phase One has concentrated in three specific areas: • Employee engagement • Leadership Development • Communications 5.8 A number of different initiatives were introduced to embed our values and behaviours including the Employee Experience which was a three-hour workshop concentrating on our strategic direction, values and behaviours as well as how to be the “eyes and ears” of PKC. These sessions were attended by approximately 80% of the organisation which has been our most successful and well attended organisational development initiative to date. Staff evaluation responses indicated a score of 4.7/5 in terms of satisfaction and relevant content. 5.9 A leadership development programme with a series of specific ‘masterclasses’ was also introduced for all those with line management responsibilities. These included an introduction to coaching, resilience skills and how to hold direct discussions. Further initiatives included learning and listening sessions with the Executive Leadership Team, an updated Employee Induction programme with a PKC marketplace highlighting the roles and responsibilities for various teams across the organisation and business breakfasts with the Chief Executive. 5.10 To gain critical employee feedback on cultural change, as well as other areas of the organisation, the first full staff survey since 2018 – there have been many smaller temperature checks in the intervening years – was open for responses to all staff from 15 April to Friday 31 May 2024. This provided feedback on many areas and gave an indication of the effectiveness and impact of the cultural change programme on employees.
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5.11 The response rate for the employee survey was 47%, a 20% increase significant increase on the 27% return on the last survey in 2022. Survey Highlights include: • 93% of respondents feel they are trusted to make appropriate decisions within their role • 93% of respondents believe that Perth and Kinross Council recognises and celebrates diversity and inclusion • 92% of respondents feel they have clear direction and know what’s expected of them • 92% of respondents feel they have opportunities within their team/school to share views and ideas • 91.5% of respondents feel their team demonstrates our values often/every day • Staff were asked to rank what was most important to them and their reasons for working with the Council and the top reason was ‘Making a Difference’ 5.12 As a result of areas for improvement, action plans are being collated for phase two of the cultural change programme with a collective commitment to taking these forward to support wider transformation and change workstreams. 5.13 Summary of Phase One benefits realised In addition to the Senior Leadership Review and consolidation workstreams a number of other benefits have been realised from transformation and change initiatives across the programme in phase one. These are detailed in Appendix 1 and summarise work in service improvement, budget savings and transformation & change workstreams. 6. PHASE TWO PROPOSALS Programme Management Office 6.1 At the inception of the programme in 2022, a temporary programme support team was put in place to develop the programme further, oversee its delivery and provide support and scrutiny to key workstreams. As well as managing the programme, the small team were also responsible for delivering the actions relating to our key priority of Tackling Poverty and progressing the transformation project on locality multi-disciplinary locality working. However, as the Senior leadership structure has been implemented through Phase one, this team has been refocussed on a range of wider organisational activities, sitting within the Strategic Planning, People and Performance service area. 6.2 This shift in focus gives us the opportunity to refresh the Transformation & Change Programme approach as we move into Phase Two. A new T&C Programme Management Office (PMO) model is currently being developed. The PMO will act as a centralised hub for T&C that ensures consistency of practice, agrees governance for the overarching programme, provides support and standardised tools and offers guidance to project teams. The PMO will
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provide guidance, support and co-ordination to individual programmes and projects to ensure success and strategic alignment with our key corporate priorities. 6.3 Overseeing the full transformation and change programme, the PMO will have responsibility for monitoring, ensuring appropriate governance, and providing programme assurance to Board. In addition, the PMO will: • Ensure the co-ordination of the different functional areas and look at common themes across the programme which may need to be addressed i.e. change to policies, systems etc. • Identify interdependencies and ensure projects are aligned to council priorities. • Advise on resource allocation across the programme. • Develop programme management methodology and provide professional and technical advice for the organisation. • Management of and reporting on progress of the programme to the PMO and the Board, highlighting issues and risks to delivery of intended outcomes and ensure benefits are realised. • Provide a scrutiny and challenge role. 6.4 Further to the above, moving forward into phase two, the PMO is committed to providing regular updates and briefings on the progress of the transformation and change programme to our elected members. While the formal reporting approach is necessary to ensure compliance with our commitments to savings, improvement and positive outcomes, it does not allow for discussion on our strategic direction in relation to projects and live challenges being experienced in delivery. Service Design approach 6.5 We are committed to using the principles and process of Service Design which is undertaken by many local authorities across Scotland and endorsed by the Scottish Government’s digital office. The vision for the Scottish Approach to Service Design is that the people of Scotland are supported and empowered to actively participate in the definition, design, and delivery of their public services (from policy making to live service improvement). This brings together national and local government, health, public bodies, charities and third sector, as well as the private sector. It’s important because we need to: • collaborate to deliver end-to-end service journeys for citizens. • work together to create the right conditions and a shared language. • make sure our design methods are inclusive and accessible for everyone, so that we encourage, empower, and enable all citizens to participate in designing the services they need. 6.6 There are clear principles around the service design approach which echo the commitments of key corporate priority “Working with our communities and partners and putting people first.”
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• We explore and define the problem before we design the solution. • We design service journeys around people and not around how the public sector is organised. • We seek citizen participation in our projects from day one. • We use inclusive and accessible research and design methods so citizens can participate fully and meaningfully. • We use the core set of tools and methods of the Scottish Approach to Service Design. • We share and reuse user research insights, service patterns, and components wherever possible. • We contribute to continually building the Scottish Approach to Service Design methods, tools, and community. 6.7 The Design Council’s Double Diamond model is a visual diagram showing these design stages and the importance of taking time to understand the problem before designing solutions. Each diamond shape illustrates the process of creating or exploring many possible ideas before refining these to the best idea. The first to confirm the problem, and the second to design the solution. 6.8 We are currently working with the Service Design Academy to develop learning opportunities for senior responsible owners, project managers and teams to understand and adopt the service design approach in transformation and change workstreams. In addition, two officers are undertaking the Professional Development Award in Service Design which will allow us to bring this expertise inhouse.
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Cultural Change 6.9 We have continued to progress the successful work which was embedded in phase one in this area as outlined above. Currently underway is a full Leadership Development Programme working to increase the skills and knowledge of Senior Leaders. In addition to this we are developing our Phase two Cultural change programme to support the delivery of transformation and change workstreams. This will include a follow up employee experience workshop, initiatives to embed a transformation and change mindset – including a virtual mailbox, employee newsletter and service design workshops for all employees. Phase 2 programme content 6.10 Phase two of the programme comprises of those projects identified in the Full Council report of 28 February 2024 along with projects carried forward from Phase one. In addition, there have been a number of additional projects identified for progressing in Phase two. A full list of phase two projects with a short description of expected outcomes is attached as Appendix 2. Projects can be broken down into three areas: Phase Two reported at Council as at 28 February 2024: • Additional Support Needs • Whole Family Wellbeing • ALEO’s • Public Transport • Professional & Business Support • Multi-disciplinary locality working • Working Smarter Phase One projects carried forward into Phase Two (consolidation to service redesign): • Redesign projects; Finance, Customer Services, Property, Strategic Planning, People & Performance • Commissioning & Procurement • Community Engagement Additional Phase Two projects identified: • Strategic Leadership – phase 2 • Corporate Landlord Model • Property structure redesign • Employability • Digital Transformation • Third Sector Review • Waste Management • Decarbonisation • Tayside Contracts Review
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6.11 Further work is now being progressed by the PMO, SRO’s and the Board to develop a portfolio management approach to delivering the programme. Working in Partnership and collaboration 6.12 The Transformation and Change programme is seeking new innovative ways of working internally and externally with partners and colleagues to ensure we meet the aims and objectives of our Strategy. In doing this, the PMO will highlight areas of interdependencies across projects and programmes to ensure joint working and engagement with all relevant stakeholders. As our projects are complex and overarch more than one service area, workshops will be held to identify current areas of overlap and progress plans to work strategically with a unified approach. HSCP Transformation & Change Programme 6.13 The Health and Social Care Partnership are taking forward their own Transformation & Change programme which will report into the Integrated Joint Board for strategic direction and guidance. We will continue to work with our HSCP colleagues on a regular basis to ensure we are maximising opportunities for collaboration and joint working. For example, the HSCP are taking forward a service design approach on their programme “What matters to you?” and we are learning from the skills and knowledge they are using to work with people who have experience of health and social care services. Engagement with our communities 6.14 As has been previously mentioned, we have committed to continue working with our communities and partners through our Corporate Plan key priorities. Using a service design approach, which focuses on the involvement of people accessing and using services, will support us in understanding the challenges of consultation to co-production. The PMO will also provide support to project teams who need it in terms of engagement methods, facilitation skills and tools to collate data in a participatory way. 7. CONCLUSION 7.1 The Transformation & Change programme has made good progress in completing a number of project areas over Phase one including the senior leadership review and consolidation of support services within the Council. There are also a number of Phase two projects already underway, meeting key milestones and already realising benefits – highlighted within this report. The proposals for progress into phase two will strengthen our approach, allow for more consistency across workstreams with a newly formed programme management office and service design approach which will allow for clear support structures and reporting on progress to Board. 7.2 We will continue to keep Elected Members updated of overarching progress through formal Committee reporting structures. In addition, we are in the process of organising a series of informal workshop briefings over the next
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twelve months. We will use these sessions to give more details around specific project areas, achievements and challenges will be highlighted. Authors Name Designation Contact Details Charlene Guild Strategic Lead – Projects & Programmes ComCommitteereports@pkc.gov.uk Norman Ballantine Transformation & Change Manager ComCommitteereports@pkc.gov.uk Approved Name Designation Date Clare Mailer Depute Chief Executive 11 September 2024 APPENDICES: - Appendix 1 – Phase one benefits realised Appendix 2 – Phase two programme list