Appendix 2 - Transformation & Change Programme - Phase 2 Project Summary Updates
Perth and Kinross Council · 1 October 2025
Back to Finance and Resources Committee — 1 October 2025 and its agenda
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Appendix 2 Transformation and Change – reshaping our organisation Phase Two Project Interim progress updates – September 2025 Project Title Project Overview Progress Update Additional Support Needs (ASN) The Programme aims to transform educational provision by enhancing the quality of learning environments and specialist support for children and young people, ensuring equity in education and delivering best value. It seeks to reduce expenditure on expensive external placements by the Inclusion Service, redirecting the budget towards earlier intervention and prevention in mainstream provision. Additionally, the Programme will establish clear ASN pathways, develop ASN provision at all levels across the authority, increase capacity for future PKC placements, reduce the number of pupils placed outside PKC ASN provision, design a sustainable transport process, and provide regular reporting to monitor the financial position. This will help comply with legal requirements and ensure quality provision is delivered. The ASN Transformation Programme is progressing on track, with strong progress across its seven current projects. Phase 1 of 3 of the Intensive Support Provision (ISP) expansion is underway. Three new (temporary) ISPs opened in August 2025, offering intensive support within local catchments. This followed extensive consultation, with formal approval expected for January 2026. Phase 2 will commence in October 2025. A revised support staff allocation model will launch in August 2026, aligned with the Staged Levels of Intervention introduced in 2024. The ASN Power BI Dashboard will support this transition. Career pathways for various staff roles have been drafted, with the aim of making training more clearly linked to statutory duties and staged interventions. A significant increase in inclusive practice training has already been delivered to build staff confidence and consistency across settings. The Compass App is now in use across all secondary schools to support Post School transitions. NHS-led audits have improved identification and support for young people with intellectual disabilities. Inclusive environments have been strengthened through new resources, including a parent guide, outdoor learning funding, and sensory support materials. The revised NHS Speech and Language Therapy contract is now secured, with a clear core offer and annual review process. The programme is now entering Phase 2, which includes 14 projects—4 continuing from Phase 1 and 10 new ones
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Appendix 2 shaped by stakeholder engagement, national reports & data, and Scrutiny & Performance Committee feedback. AI Project This programme will be designed to position PKC at the forefront of digital transformation and align with our overarching goal to leverage cutting- edge technology to drive efficiency, enhance service delivery, and foster innovation across all facets of our operations. Dedicated funding was made available from 1 April 2025 enabling a formal operating model and delivery plan to be developed. Established guardrails include an AI Policy, AI Governance Group, AI Register, and DPIAs for Microsoft 365 Copilot, with a live risk register to ensure safe, lawful adoption have been put in place. Strategic workshops are now well-advanced covering nearly all Strategic Lead areas and have captured concerns as well as opportunities, helping pinpoint quick wins and shape the Council’s AI roadmap. In parallel, pilots under consideration include translation, a platform centric approach to transcription support (case notes), customer service enhancements, email triage, document automation and predictive analytics. Investment will be targeted at the highest value, highest impact opportunities relevant to PKC use cases. The team is working closely with the Transformation & Change Programme Office to embed AI and automation as core elements across Transformation & Change projects. ALEO's Review To find the best model of delivering leisure and culture services to people across Perth and Kinross within current financial climate. To recommend a future delivery model best suited to future needs for ALEO’s that is capable of: • Optimising PKC investment in leisure and culture services. • Increasing back-office efficiencies, including with other partners where appropriate (for example Perth and Kinross Heritage Trust, Pitlochry Festival Theatre). • Growing and diversifying new income streams. • Recommending an appropriate constitutional/governance structure for any new delivery model on the basis of options appraisal (sole member, SCIO, mutual etc). As previously reported, in line with the agreement of the project working group, external consultants have been commissioned to undertake a detailed options appraisal on the following options: 1. Bring all ALEO’s in house to PKC 2. Bring some ALEO services in house (e.g. consolidation of corporate services from ALEO’s delivered by PKC) and ALEO’s retain own identity / library services brought back into PKC 3. Create one new ALEO / two new ALEO’s – streamlining corporate and back-office services 4. Create one ALEO for culture and sport and considering possible change of status for Perth Theatre & Concert Hall This work is currently being finalised and is scheduled to be formally reported to Council on 29 October 2025. Business Systems Management Efficiency & Rationalisation Project (BSMER) This project will review all Council business systems / Applications, describing how they are currently managed; resourced; supported and developed and make recommendations on the design of a new Digital operating model to support delivery of modern Council Digital Business. Following the successful presentations of Application Landscape documents to Strategic Leads and their management teams, the project team focussed on scheduling Application Landscape Review Sessions. These sessions gathered more information about PKCs Digital Ecosystem which we can used in the development of resources such as application portfolio management. This data has already proved useful for FOI requests, out of contract systems and potential procurements and the team have looked at ways of exploiting this valuable data using Power BI reporting. Potential solutions are being
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Appendix 2 investigated to host and manage this data beyond the end the project. A decommissioning process, which is now part of the application lifecycle toolkit, is currently being developed. Involvement in Flare migration and more recently Swift decommissioning is being used to help inform this process. Liaison work with senior management within Education and Learning to investigate the scope of work required to create an application portfolio of software applications used within all of our schools was carried out. School based applications will be rationalised as part of the Children and Young People Tenancy Project, which will run beyond the end of this project. Work is ongoing to develop an Application Lifecycle Toolkit to support colleagues when, for example: defining and specifying initial application requirements; procuring the most effective software solution; effective and efficient ongoing contract management for the application; establishing and robust decommissioning framework and methodology. Customer Services Transformation To develop a new model for customer services by adoption of a customer- centric approach to customer contact management which will substantially simplify our current arrangements and empower customer service staff to satisfy most requests at first point of contact. The model will provide the opportunity to blend digital customer channels, assist vulnerable citizens through an appropriate channel, and operate more effectively in and across localities. The project has progressed well with Phase 1 outcomes now delivered. The scope and desired outcomes of Phase 2 are currently being finalised, but it is anticipated that these will focus on our approach to delivery of customer services, maximising the opportunities presented by AI and automation. It is likely that Phase 2 will be reported going forwards as an individual project and it is anticipated that it will be dependent on the wider cultural change programme being delivered through other areas such the Leadership Phase 2 project. Employability Service Review Project To develop an implementation plan to deliver a strategic and co-ordinated employability service for PKC. Designing a new model that makes best use of the current expertise, skills, and resources to ensure a more cohesive and effective service. This will involve maximising the reach and impact of our collective resources and delivery of services and operating in a more connected and integrated way putting people and their needs at the centre of the redesign. The initial phase of this project - to develop an implementation plan to deliver a strategic and co-ordinated employability service for Perth and Kinross Council – has been completed. The scope and desired outcomes for Phase 2 are currently being finalised, it is anticipated these will focus both internally on the delivery of the plan and, externally on the wider offer of Employability services across Perth and Kinross. Fairer Communities for All Model The "Fairer Communities for All" model focuses on creating inclusive, equitable, and sustainable communities where everyone has access to essential services and As previously reported, this project builds on previous work in selected localities to pilot developing a locality based multi-disciplinary working approach. As this work progressed it became apparent that the community engagement transformation project had a lot of synergies and overlap so the decision was taken at transformation
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Appendix 2 opportunities. This model ensures that: • all community members have a voice in decision-making processes and access to service and resources. • there is fair access to healthcare, housing, education and employment opportunities. • there is effective and strong partnership between communities, the council, community planning partners, voluntary sector and businesses to respond to and address need. • resilient communities are developed and sustained. The overall aim of this model is to build sustainable communities where everyone can thrive and live life well, free from poverty and inequality. The model will knit together elements of the multi-disciplinary locality working (MDLW) programme and our community engagement transformation project to strengthen the efficiency and effectiveness of community engagement and empowerment across the Council. board to combine the two projects. This approach and the national interest in the work to date from the Improvement Service and Scottish Government has enabled us to attract funding from the Fairer Futures fund to scale up and rollout this placed based approach in more communities in Perth and Kinross. A dedicated Fairer Futures for All project manager has been appointed and Locality leads have been established in Letham, Coupar Angus Rattray, Crieff and Muirton. Workshops to develop multi-disciplinary teams in the localities are scheduled to start in September. These workshops will highlight links and dependencies with other areas such as poverty, whole family wellbeing, community mental health and employability: Organisational Development colleagues will be supporting the cultural changes associated with the outputs from these workshops. Following these workshops, it is planned that there will be wider sessions with key community groups to jointly plan and develop a locality action plan with agreed actions around addressing inequalities. Leadership Review Phase 2 Awaiting update from SRO/PM The project has been rebranded as Leading: Our Purpose, Our People - to reflect the agreed priorities as below: • Deliver Year 2 of the Evolving Leaders in Practice Programme with clear outcomes identified. • Implement the Leading with Impact- Council Wide Programme, which will embed the five foundations of leadership at all levels of leadership and reflect this in Personal Development Discussion (PDD) documentation / leadership competencies. This will also include the Aspiring Leaders Programme. • Support Strategic Leads with service design and delivery of consolidated services. Leading with project management governance to drive activity and accountability. • Further develop a robust workforce planning processes, which will underpin the delivery of the new operating models and related budget efficiencies. • Implement a streamlined leadership structure across the organisation, to support the development of operating models which align structures and leadership practices. Current status of the project:
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Appendix 2 Progress has been made over the past year with Project Leads being appointed for each of the workstreams and collaborative meetings to share good practice, progress and ideas being held on a fortnightly basis. This has resulted in a refreshed project plan as well as a rebrand to ensure alignment across the programme with a clear and concise comms and engagement strategy for the wider organisation. Meetings with Strategic Leads are underway in relation to taking forward all workstreams specifically, to identify key improvement, redesign of services and further leadership development/changes. Perth Secondary Estate Review Education is integral to delivering our corporate priorities relating to children and young people, the wider health and wellbeing of people in Perth and Kinross and meeting our climate change/climate justice obligations. This project will consider how the Secondary Learning Estate in Perth City facilities are best aligned with the corporate priorities. The project is progressing with initial output works undertaken and, following stakeholder engagement, potential option appraisals are being considered which will be presented to a future project board. Public Transport in the Community To develop a plan for a transport model that meets the needs of all our communities which is affordable, sustainable, efficient, and effective. This model will cover the provision of local bus services, mainstream home to school transport, ASN home to school transport, HSCP and children and families' transport. As previously reported, external consultants have been commissioned to carry out a comprehensive review of public transport and undertake a detailed options appraisal to provide a revised Perth and Kinross Public Transport Plan. This work is progressing well and is on schedule to be completed by autumn 2026. Included in this work are reviews of: education transport for the young people; vulnerable adult transport; and looked after children transportation. This work has included benchmarking with other local authorities to identify elements of good practice and to undertake a peer review against our current policy and arrangements. Alongside this we are mapping and analysing current contracts and arrangements with a view to and identifying alternative options and testing these options through small tests of change. We continue to work with our communities to ensure that improvement opportunities such as community minibuses are supported and delivered as quickly as possible. Our ongoing communications strategy and plan has been developed to support this both by raising awareness of public transport and publicising where innovative community led initiatives have been delivered. Strategic Procurement & Commissioning Project To design and implement a new operating model for strategic procurement and commissioning to improve efficiency and optimise the value and benefits of our purchasing power. Helping us to better align The Procurement and Commissioning Transformation project is a five-year programme of works comprising of a number of different workstreams all contributing to the delivery of our desired outcomes. A project team is firmly established and is working closely with all stakeholders to continue on the journey of transforming our procurement
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Appendix 2 spend with need and address pressures of changing demands. Optimising the public value of the procurement function and consolidated relevant skills and expertise across the organisations. and strategic commissioning. The project has now been consolidated into four themes of Organisational Value, Economic Value, Environmental Value and Social Value. All future project updates will be under these themes. Tayside Contracts Review To undertake a review of the way in which Perth and Kinross Council Interfaces with Tayside Contracts, in terms of Governance arrangements, the role of elected members, procurement of services, standardisation of offer. This review will be undertaken alongside Tayside contracts own transformation programme to ensure that all possible benefits are realised from this unique arrangement of co-ownership between Dundee, Angus and Perth and Kinross, the 3 councils who co- own and fund Tayside Contracts. • Senior Finance Officers are collaborating with Tayside Contracts, Dundee CC and Angus Council to collate data on all accounting and charging information to set a baseline for action. In addition, senior legal officers from both organisations are meeting to discuss concerns raised by Elected Members regarding governance and process. • A fact finding study to consider the recommendations made within the previous report, is scheduled to begin later this year. • Officers worked with Perth and Kinross members of the TC Joint Committee to inform the scope of the fact finding study. • Officers from Perth and Kinross and Tayside Contracts also collaborated in developing the scope of the Study, this work has had the additional benefit of strengthening the relationships between both organisations. • Meetings have been set up with Elected Members to meet with Tayside Contracts management team. Whole Family Wellbeing (WFWB) programme The Whole Family Wellbeing Fund is a Scottish Government initiative that aims to transform the delivery of Whole Family Support (taking account of the Promise and UNCRC). This initiative is aimed at increasing the delivery of early intervention and prevention, focused on holistic family support, when, where, and for as long as it is needed. The WFWF programme will ensure an increase in universally accessible early help and support, delivered where and when it meets families' needs. Aiming for a better collective awareness of available support and how to access it, for both families and professionals, it will aim to provide support as "joined up" and limit the number of professionals and services individually involved with families. It will also look to provide families with choice about support ensuring they are involved in As previously reported the Whole Family Wellbeing programme is funded through the Scottish Government Whole Family Wellbeing Fund, this funding, this funding has been extended to the end of financial year 2026/27. The Programme has been focussed on the following general areas: • Access and Availability - Improving awareness of, and access to services that support families • Engagement with Children, Young People and Families. • Service Design and Delivery: consideration of different ways in which additional capacity to deliver holistic family support can be achieved. • Systems Leadership and Collaborative Working. • Support for the Workforce: looking at opportunities to share learning and good practice, to identify training needs within the wider community, and promote the principles of holistic family support. We continue to work in collaboration with partners to deliver holistic family support. This includes funding services and improvement activities, identifying good practice and sharing learning, and building networks to ensure that families experience support in a more streamlined and seamless manner.
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Appendix 2 decisions that affect them and that there is increased collaboration between services and organisations that support families (including adult services and third sector). The WFWF programme will encourage increased engagement with, and participation from children, young people, and families in designing and developing services and support, ensuring a clear and shared understanding of the needs of families across the whole system It will embed the key principles of holistic family support and early intervention and prevention within structures and systems (stigma-free, needs-based, rights-led), encouraging and empowering staff to develop innovative family support solutions in conjunction with the families they support. The WFWF programme will improve capacity within the workforce to respond to the needs of families in a holistic way, through effective signposting and support. Since the last update in May 2025, we have been working with partners to consider new areas of focus, such as child poverty, Additional Support Needs (ASN), mental health and wellbeing and building capacity within communities to support families. Working Smarter The Working Smarter programme has a number of different projects all related to the strategic and integrated approach of people, technology and crucially, property – looking to improve how we integrate all three for the best outcomes in relation to facilitating better productivity, embracing technology, more effectively using our estate and buildings and enhancing employees experience through flexible operating models. The Council will take ownership of Pullar House and Kinnoull Street Multi-Storey Car Park on 11 September 2025, following its September 2024 decision to purchase both assets to support smarter use of public buildings and deliver annual savings of £1.8 million. The final purchase price will be determined through arbitration by December 2025; in the meantime, PKC will make an interim payment based on the lowest valuation—£1 million for the car park and £3.15 million for Pullar House—plus applicable VAT and Land and Buildings Transaction Tax, with adjustments made post-arbitration if required. Pullar House is being developed into a public sector hub, with tenant interest exceeding the original business case. Construction and upgrade works are progressing across Pullar House, 2-26 High Street, and Inveralmond Depot, with high- level timelines agreed for future fitouts for Justice Services, NHS Vaccination Services, Crown Office Procurator Fiscal Services, and potentially various Scottish Government bodies alongside accessibility and general upgrades to Pullar House. To enable partner organisations to move into surplus space many service areas have already relocated, with final enabling moves now underway and due for completion prior to November 2025. Kinnoull Street Car Park is scheduled to be rebranded and integrated into Council parking operations post purchase, with improved facilities, revised tariffs, and TUPE transfer of staff to Living Wage contracts. A new voucher system will manage staff parking, with guidance already issued internally.
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Appendix 2 Zero Waste & Operations This programme involves a review of waste strategy and waste management arrangements to deliver national initiatives, improved outcomes and realise best value and service efficiencies. It has a number of workstreams including: commercialisation review; operational asset review; circular economy strategy and service design beyond twin stream; schools recycling improvement, fleet transformation. Alongside this, the programme also includes a review of the delivery of our operations to ensure we are maximising opportunities for efficiency and effectiveness. Overall, the project is progressing well. APSE have been commissioned to undertake an independent benchmarking exercise to compare our operational performance against other UK authorities. The Operational Asset (Depot) review is in the process of finalising options which will then be subject to a detailed options appraisal based upon our anticipated future service requirements. A draft Circular Economy strategy consultation document was approved by CC&S Committee on 20 August and is due to go to public consultation between September and August. A finalised strategy and action plan will be presented to CC&S Committee in early 2026. The Commercialisation review is ongoing, a number of opportunities and challenges have been identified, and a business case is being prepared to explore if investment in additional resources to grow the business are likely to deliver financial and customer service benefits. The Business Insights and Customer Service Improvement workstream is at an early stage but we are working closely with colleagues particularly in IT and Customer Services to identify opportunities for enhanced service through the use of AI and automation. The Schools Recycling improvement team worked closely with Bertha Park High School on a pilot project to deliver more effective recycling within our schools. The pilot identified a number of issues which delayed implementation; however, these have mainly been resolved and the pilot has now moved to implementation phase, with new bins ordered and about to be installed. The Fleet decarbonisation workstream is focussed on developing a route map and investment plan to decarbonise the Council fleet and grey fleet (private vehicles). This will build on the existing Fleet Asset Strategy, identify investment requirements to support the decarbonisation of the Council fleet. It will also seek to maximise the efficient use of pool vehicles to reduce the more expensive grey fleet. The work also recognises the dependency on other work to extend and improve EV charging infrastructure.
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Appendix 2 Transformation & Change Programme Phase Two Additional projects - September 2025 Programme Name Improving Health & Wellbeing and Attendance in the Education Workforce Programme description To develop a Health and Wellbeing Strategy for the Education workforce. This will include the development of appropriate supports such as coaching and supervision for targeted groups of staff; a programme of CLPL which supports health and wellbeing; augmenting the corporate wellbeing offer to ensure that it meets the needs of the education workforce both in terms of content and mode of delivery as well as developing communication approaches which ensure that the education workforce is fully informed and engaged and feels that they have a voice which his being listened to. Programme governance structure Executive Sponsor Thomas Glen Senior Responsible Owner (SRO) David Macluskey) Programme Manager To be confirmed Current Programme Timeline • Programme start date : awaiting appointment of project manager • Planned Programme completion date : to be reviewed by October 2026 Outcomes and critical success factors expected This project will be expected to deliver improved health and wellbeing within the education workforce through: • Reduction in overall sickness absence levels within the education workforce. • Reduction in sickness absences due to work-related causes. • Reduction in supply costs associated with class cover due to sickness absence. • Improvement in key wellbeing measures in future employee surveys including : • Feeling that wellbeing is a priority for the Council; • Feeling listened to; • Feeling safe in the workplace; • Having opportunities to get involved and influence change; • Effectiveness of communication. • Recruitment and retention of staff.
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Appendix 2 Programme Name Automation within People & Culture Programme Description This project aims to utilise existing digital resources available to the Council to develop more effective and proactive reporting from our HR and Payroll systems. It will closely with colleagues in It, particularly the AI and automation team to develop tools for improved manager information. Programme governance structure Executive Sponsor Greg Boland Senior Responsible Owner (SRO) Pauline Johnstone Programme Manager Allan Craik Current Programme Timeline • Programme start date 01/09/2025 • Planned Programme completion date 31/03/2027 Outcomes and critical success factors expected This programme is intended to provide managers with better quality data in HR/ Payroll reporting. Successful delivery should result in: • A decrease in overall sickness absence levels by providing real-time trigger emails to managers across Perth and Kinross Council. • Reduction in short term recurring absences by directing managers to deal with absences as soon as a “trigger” is hit