Appendix 1 - Transformation and Change Strategy
Perth and Kinross Council · 1 October 2025
Back to Finance and Resources Committee — 1 October 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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1 | P a g e PERTH & KINROSS COUNCIL TRANSFORMATION AND CHANGE STRATEGY 2025/26 – 2027/28 Appendix 1
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2 | P a g e Contents 1. Foreword .................................................. 1 2. Transformation & Change Strategy Graphic .................. 2 3. Transformation & Change - the current context .............. 3 - Introduction ............................................... 4 - National Programme for Government .......................... 5 - Improvement Service / SOLACE - National Transformation & Change Programm.. 6 - Perth & Kinross Council policy framework ................... 7 4. The need for Transformation and change ..................... 8 5. What do we want to achieve through our Transformation & Change programme – phase two? ................................. 9 6. Using a service design approach ........................... 10 7. Phase two of our transformation and change journey ........ 11 Clear Vision and Objectives.................................... ... 12 Leadership Commitment............................................... 13 Innovative & Agile Approach........................................... 14 Comprehensive Change Management .......................................... 15 Effective Communication & Engagement......... 16 8. How will we know we have made a difference? ............... 17
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3 | P a g e FOREWORD Councillor Eric Drysdale, Council Leader Since it came into being in 1996, Perth and Kinross Council has been required to transform, change and respond to the needs of our local communities and the many social, economic, environmental, and other challenges we have faced. Today, the need to evolve is more important than ever as we face significant financial and social challenges as an organisation, across our local area and more widely, as a nation. As a Council, we are committed to delivering the best possible services that we can within the resources at our disposal to serve the people and communities of Perth and Kinross. In doing this, we recognise that our focus requires us to continually consider the services which make the biggest difference to those in greatest need. The legacy impact of the pandemic is still evident and the equalities gap and opportunities for those in need have only widened. We are continuing to see the emerging long-term implications for people’s physical and mental health and wellbeing and have already experienced increasing demands on us as a Council and other public and community partners which shows no sign on slowing down. At the same time, we have learned that there is a better way of working alongside our communities and partners to boost resources in our communities. Our Corporate Plan 2022 - has seven key priorities, one of which is our commitment to work in partnership with communities, strengthening their place at the heart of all that we do. We have been re-balancing the relationship we have in designing and delivering services with the people who ultimately use those services, drawing on the strengths, assets, and local understanding that residents can bring to help everyone in their area live life well. We want to continue and increase our opportunities to work together to help us address future challenges taking into consideration the increasing financial demands on local authorities. In addition, rising costs impact what we need to pay out, and with reducing income, we are left with a significant budget deficit. It is impossible to continue doing the same things we have done in the past, and we must rethink how we work with, and within, our communities as well as with all our partners to achieve the best outcomes for the people of Perth & Kinross.
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4 | P a g e Although there are many challenges to face together, we have significant experience in delivering transformation and improvement projects. Phase One of our Transformation and change programme completed in June 2024 and we know from previous experience that a focused programme of transformational change makes a real impact on the way that we operate. The success of the next phase of our Transformation and change Programme continues to be built on our biggest asset, our team. They show an unwavering commitment to serving the public and, when required, have stepped up and faced challenges and changes whilst continuing to deliver. This revised strategy sets out our continued commitment to transformation and change through our phase two programme and sets out the next chapter of transformation for us as a Council and the communities we serve. It reaffirms the commitments made in 2022 to our ambitious programme of transformation and change across the organisation. These changes will impact our communities, our teams, and how they deliver as we seek to respond to changing demands and resourcing levels. With our continued focus on public service, and on those in greatest need, we will harness the support of our teams, partners, and communities, to continue to ensure that the people of Perth and Kinross are at the heart of all that we do and that we evolve to face the challenges ahead.
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5 | P a g e
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6 | P a g e Transformation & Change – the current context Introduction Transformation is not just about doing things differently—it’s about doing the right things, in the right way, for the right reasons. This strategy and our Transformation & Change programme - phase two sets out clear and practical commitments for delivering meaningful change and improved services across Perth & Kinross, grounded in national best practice and tailored to our own localities and people. Our current Transformation Programme has sixteen different projects all with their own workstreams, critical success factors and expected outcomes. The projects will also positively change our relationships with communities where appropriate, involving people using services in how we best deliver them. We also recognise that real transformation requires commitment, resources and time to be successful. Perth and Kinross Council have committed to realising the benefits our Transformation & Change programme will bring and have set up the Programme Management Office (PMO) to ensure projects are resourced, scoped and governed effectively, reporting is regular and transparent and support is available when required. In turn, this should lead to clear deliverables of: • Improved service performance and citizen / community satisfaction • Reduced funding gaps and balanced budgeting • Increased staff engagement and evidence of positive cultural change • Greater organisational resilience to social, economic and environmental pressures • Clear accountability through governance, reporting and evaluation. National Programme for Government The need for transformation and change is not new nor unique to Perth and Kinross, we have been doing it since we were established in 1996. Today all public and private sector services and organisations are facing many traditional but also significant new challenges such as the aftermath of the pandemic, the cost of living crisis as well as conflict driven by instability. This means we need to rethink how we operate in the future to address these challenges and meet new and emerging demands. At a national level, the Scottish Government have set out their commitments to deliver renewed and strengthened public services and to ensure that the people of Scotland are protected during the cost of living crisis in the Programme for Government 2025 -26. It sets out four key priorities to deliver this ambition; 1. Eradicating child poverty; the foremost priority, aiming to address and reduce child poverty through various initiatives and support systems
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7 | P a g e 2. Growing the economy; committed to fostering economic growth, creating jobs, and supporting businesses to ensure a robust and sustainable economy 3. Tackling the climate emergency; addressing climate change is a critical priority, with efforts directed towards reducing carbon emissions, promoting renewable energy, and implementing sustainable practices 4. Ensuring high quality and sustainable public services; aiming to maintain and improve public services, ensuring they are high quality, accessible, and sustainable for all citizens The programme is reviewed annually to align with the budget process and aims to deliver on commitments more efficiently with this approach. quickly and efficiently. It highlights the Scottish Government’s dedication to creating a fairer, more prosperous and sustainable future for all. Improvement Service / SOLACE - National Transformation & Change Programme Further to the national programme for government, the Improvement Service and the Society of Local Authority Chief Executives (SOLACE) have been leading a national transformation and change programme for local authorities in Scotland. This is part of the broader effort to address the complex challenges faced by public sector including the pandemic aftermath, cost of living crisis and other socio economic issues. The programme emphasises the need for collaborative work, sharing skills and resources and adopting innovative approaches to service delivery. It also aligns with the Scottish Government’s digital strategy, which includes the integration of AI and other advanced technologies to improve public services. Perth & Kinross Council policy framework The Transformation and change Strategy 2025 -28 is not designed to stand alone but is supported and strengthened by a wider strategic framework which overarches several areas of work all designed to contribute to our vision and outcomes, from the Community Plan to individual team plans. The Corporate Plan 2022 - 27 sets our vision and, corporate outcomes. It is aligned with our values and designed to address or mitigate the impact of the many challenges our organisation and our communities are facing over the next five years. The strategic outcomes are underpinned by 7 key priorities outlining the areas of greatest need that we can most directly influence. (ADD IN GRAPHIC) 1. Tackling poverty 2. Tackling climate change and supporting sustainable places 3. Growing a sustainable and inclusive local economy 4. Enabling our children and young people to achieve their full potential 5. Protecting and caring for our most vulnerable people 6. Supporting and promoting physical and mental wellbeing 7. Placing communities at the heart of how we work These priorities will also act as a guide when making difficult decisions around where to invest funding and resources – making the best use of our assets at a time of decreasing budgets. In addition, they are underpinned by our continued commitment to a service design approach around
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8 | P a g e better engaging our people and communities to ensure they are involved and can have a say on where we focus our time and resources. The revised Local Outcome Improvement Plan (LINK)- details new priorities with a focus on poverty in a number of key areas, setting out the actions that the Community Planning Partnership will take in the coming years to focus on inequalities which are stubborn and require continued collaborative approaches. The Financial Strategy (LINK) – details the financial challenges we face, the extent of the structural deficit and measures we must take now and over the next 5 years to identify savings, reduce our budgets and support the Council to become financially sustainable. Economic Action Plan – aims to enhance the economic vitality and resilience of Perth & Kinross by focusing on supporting local businesses, attracting jobs and investment, tackling inequalities and supporting the transition to net zero. The plan has been developed collaboratively by Perth and Kinross Economic Partnership (inc. Business Gateway, Perthshire Chamber of Commerce, Skills Development Scotland, Growbiz, Perthshire Tourism Partnership and other key partners) The need Transformation and change Change is necessary and right if we are to continue to work to best meet the needs of those we serve. Our economic, social and technological environment changes all the time and we need to
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9 | P a g e be flexible and agile to keep up. In 2025 and beyond, Perth and Kinross faces rising service demand driven by an ageing population, increasing poverty and complex health needs. The region has one of Scotland’s highest proportions of over-65's and children with additional support needs. Economic challenges include unemployment, low pay and uneven growth, particularly in our rural areas. We are responding to these challenges by redesigning our services, developing inclusive growth plans and delivering on our transformation and change programme – phase two to address budget pressures, support sustainability and deliver on our corporate key priorities. Changing how we deliver services and serve our citizens can bring huge opportunities and energy to what we do as an organisation but at the same time can raise uncertainty for our teams and those who rely on our services. As we move forward in our Transformation and change phase two programme, we want to continue; • Responding flexibly to the changing environment and context within which we work • Changing our expectations and commitments to meet social, economic, health and wellbeing needs, and climate change. • Embracing new and developing best practice – modernising our services • Providing opportunities for our people and services to improve by using our service design principles to engage • Addressing financial pressures and meeting rising demands in our services We know from experience that an effective Transformation and change programme results in improved efficiency, increased collaboration and employee engagement, better customer experience and increased management of risk as well as greater sustainability and innovation for the future. At its core, the programme needs to help us deliver better for those we serve. What do we want to achieve through our Transformation & Change programme – phase two?
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10 | P a g e The Transformation and Change programme is designed to help us develop our organisational culture and people so that we: • put people first, focussing on getting it right for those who most need our help and support • are a values led organisation with ambition, compassion and integrity at the core • prioritise new and existing services which help prevent a crisis happening, rather than just reacting • work together with our communities and partners to deliver the best services we can within the resources and budget we have available • make best use of the buildings and other assets we have, considering carefully what we no longer need • support our workforce to be the best, ensuring they are well-trained and empowered to work flexibly in and with our communities • are a visible and valued part of our communities, recognisable and available where and when we’re needed • make full use of data, technology and local knowledge to understand our area and make us more accessible in different ways to suit a variety of needs Using a service design approach 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
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11 | P a g e public services (from policy making to live service improvement). This approach helps us to ensure we have the following elements embedded within the Transformation and Change programme: 1. User-Centric Focus: understanding and addressing the needs, preferences, and behaviours of people who use our services. By placing them at the centre of the design process we can create new ways of working more likely to be adopted and embraced, leading to successful transformation. 2. Iterative Process: encouraging ongoing development and continuous improvement. By prototyping, testing, and refining solutions, we can adapt to changing circumstances and feedback, ensuring that the transformation remains relevant and effective. 3. Collaboration and Co-Creation: promoting collaboration among stakeholders, including employees, customers, and partners fosters a sense of ownership and engagement, making it easier to implement and sustain changes. 4. Visual and Tangible Tools: making sure our methods are inclusive, accessible and easy to understand so that we encourage, empower and enable everyone to participate in designing the services they need. 5. Empathy and Emotional Connection: emphasising compassion, empathy and connecting with the lived experiences of people can create more meaningful and impactful changes. 6. Holistic Perspective: ensuring we take a comprehensive view of the entire service system, including all touchpoints and interactions ensures that changes are integrated seamlessly, minimising disruptions and making the most of cross working opportunities. Overall, our service design approach allows for a more structured and user-centered framework that supports our success in the successful implementation of the transformation and change programme. Along with our communities we can navigate complexities and work together to create solutions that are both effective and sustainable.
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12 | P a g e Phase two of our transformation and change journey The first phase of our Transformation and change programme was focussed on building the strong foundations for the successful delivering of the programme, embedding service design principles and improving and streamlining our internal structures as well as commencing large scale programmes of work in areas like additional support needs and whole family wellbeing. Progress has been consistently reported to the Transformation Board as well as Elected Members through the Committee process and more informally by discussion briefings. The work predominantly focussed on reducing the budget shortfall, reviewing and implementing a new leadership structure, developing our cultural change programme and ensuring that we had the professional skills and leadership capacity in place to lead services and transformation across the organisation. Phase two will continue to build upon the achievements of phase one, allow for more consistency across workstreams, carry on embedding a service design approach and strengthen governance arrangements with a newly formed Programme Management Office which will allow for clear support structures and reporting on progress to Board. We will review all transformation and change projects on an ongoing basis to make sure that they remain relevant and aligned with our corporate priorities and outcomes. Where they are not seen to deliver the anticipated benefits, they will be reviewed and lessons learned to inform further elements of the programme. Our programme allows for a flexible and agile approach where projects may be added, changed or removed if the original benefits and/or outcomes do not offer best value. As we embark on the second phase of our Transformation and change Strategy 2024-28, we are renewing our commitments to this programme with the following: 1. A clear vision and objectives 2. Strong leadership commitment 3. Continuing innovative and agile approach 4. Comprehensive change management processes 5. Effective communication and engagement 1.Clear Vision and Objectives: Define a clear vision and set specific, measurable objectives to guide the transformation efforts Our organisation vision and priorities have been defined and are woven through the Transformation and change programme by linking all project outcomes to a strategic priority. We are also clear about the parameters of our Transformation and change programme approaches. There are currently four different ways we carry out transformation and change work in the organisation: • 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.
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13 | P a g e • 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. Due to the size and complexity of the organisation and the nature of challenges we face, the Transformation and Change programme will require a range of approaches and no two projects will be the same. For larger scale projects of a more complex nature, it is likely that more than one area above will be adopted to deliver the required outcomes. However, each individual project has its own agreed outcomes, critical success factors, workstreams and actions to be achieved. Within the phase two programmes, we recognise the need to place a greater focus on listening to the experience of people who use our services, using a service design approach and ensuring this is the cornerstone of our transformation and change programme. 2. Leadership Commitment: Secure active support and commitment from leadership to drive the transformation forward and remove barriers Leadership commitment to achieving the aims of our transformation and change programme is critical to its success and we will continue to foster a culture of continuous improvement, creativity and innovation, empowering leaders to drive change. By investing in leadership development, we are future proofing our organisation and its leaders to navigate the complexities of modern governance and inspire their teams to achieve excellence. Our five foundations of leadership have been developed to guide behaviours and set expectations across the organisation: 1. Lead and maintain strong organisational culture and behaviours – embody and promote the PKC values (ambition, compassion and integrity) and foster a culture where people thrive, feel psychologically safe and are empowered to lead and innovate. 2. Lead meaningful and impactful engagement - build trust and connections with communities, partners and staff, ensuring leadership is inclusive, collaborative and responsive to diverse needs. 3. Lead delivery of vision and priorities – drive evidence led services that reflect PKC’s commitment to wellbeing and equity aligning leadership actions with strategic priorities and performance goals. 4. Lead management of people, resources, risk and reputation – demonstrate integrity and foresight in managing organisational assets and supporting workforce planning, talent development and operational resilience. 5. Lead transformation and innovation – champion bold service design and change leadership, equipping teams to navigate complexity and delivering sustainable improvements. The input, direction and expertise of our leadership team is critical to the success of the transformation and change programme, particularly as it encompasses both political and strategic dimensions. Strategic leadership involves setting clear goals, defining the vision, and ensuring that our actions align to our key corporate priorities. This creates a cohesive and supportive environment of trust, collaboration, and resilience, enabling us organization to adapt and thrive in a dynamic landscape.
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14 | P a g e 3. Innovative & Agile Approach: identifying opportunities for transformation and having the flexibility to adapt to changing circumstances through the right workforce skills and technologies We are committed to driving transformation and change through an innovative and agile approach, using creativity and being risk positive. Workforce planning is integral to the strategy, ensuring that the right people with the right skills are in place to deliver high-quality services. By proactively managing workforce needs, we can address skill gaps, support career development, and ensure that the organisation is equipped to meet the outcomes of transformation and change projects as well as its wider strategic objectives. Cultural change is another critical aspect of our transformation journey. By promoting a culture of collaboration, inclusivity, and innovation – supported by our organisational values and behaviours, we are creating an environment where employees feel valued and motivated to contribute their best. The cultural change programme is a key part of our strategy and essential for sustaining long-term success, ensuring that we anticipate and adapt to future challenges as and when they arrive. Overall, PKC's commitment to an innovative and agile approach, underpinned by service design, leadership development, cultural change, and workforce planning, positions the organisation to deliver exceptional services and achieve sustainable growth. 4. Comprehensive Change Management - a detailed plan that outlines the steps, timelines, and resources required for the transformation Since the formation of our Programme Management Office (PMO), formalised governance measures have been developed to set out the decision making and reporting structures clearly and succinctly, ensuring understanding of ownership and accountability at all levels. Further to this, the PMO have established a detailed project monitoring system to ensure effective delivery of the overall programme. This includes regular meetings with project sponsors, owners and managers. In addition, we are effectively managing ongoing risks and issues through a series of detailed risk registers with mitigations in place, reporting and escalating where necessary to the Transformation and change Board. Further to this, each of the individual projects within the wider programme has clear outcomes, critical success factors, workstreams and actions in place which are monitored on a monthly basis to ensure progress is ongoing as expected in terms of key milestones and further reported to Transformation Board. The PMO are also responsible for regular reporting to Committee and keeping Elected Members updated through briefings, meetings and updates outlining progress, challenges and case studies. 5. Effective Communication & Engagement: Maintain transparent and continuous communication to keep everyone informed about the progress and benefits of the transformation
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15 | P a g e Effective communication and engagement, using a service design approach is a key priority for our transformation and change programme. We understand that a clear and focused communications and engagement plan is essential for building relationships, connecting, supporting, involving, and communicating with our staff, communities, and partners. Transformation can be both exciting and daunting, presenting opportunities and challenges. It is most effective when done with people, not to them. Our commitment to keeping people informed and engaged is crucial for making the necessary improvements. Our Communication & Engagement Plan is intended to enhance current approaches to involvement and engagement within the organisation, with our partners, and communities. It is also important for us to understand and clearly articulate the impact of change on our communities, especially where services change significantly. Working to the principles of Service Design, we will use research, feedback, and stories from the user experience to keep the people who deliver, use, and interact with our services at the centre of everything we do. We will underpin the delivery of communication and engagement activity with our values, behaviours and cultural change programme. We want to create a transformation and engagement programme where employees feel valued and motivated to contribute their best, and where our communities the community is actively involved in shaping the future. How will we know we have made a difference? Success is not defined just by milestones but by impact of the programme itself. Through a range of methods and mechanisms we will measure and assess the impact and outcomes of the transformation and change work on: ▪ People and communities – tangible improvements for priority groups and our most vulnerable communities ▪ Our employees – evidence of staff retention, leadership alignment and cultural change ▪ Our organisation – projects that are well resources, scoped and governed ▪ Our finances – efficiencies and savings as a result of projects, shifts in budgeting from reactive to preventative spend Quality assurance, benefits realisation assessments, ongoing review and monitoring will be embedded at a project and programme level. Staff and customer feedback, performance information and budget monitoring arrangements will also enable us to measure our success. We will regularly report any outcomes achieved, milestones reached or key priorities met through our governance structures – Transformation Board, Council and Committees.