Corporate business planning update

Report: 7
Date: 21 September 2006
By: Commissioner

Summary

This report updates Finance Committee and PPRC members on the integrated strategic financial/planning framework and on progress of the development of the draft corporate business plan.

A. Recommendations

That members note the activities being undertaken in the integrated strategic financial/planning framework including the development of the corporate business plan.

B. Supporting information

Integrated business/financial planning framework

1. The integrated business/financial planning framework reflects a new approach to strategic planning in the MPS which aims to ensure that financial planning and budgeting are driven by strategic priorities and business needs and that resources are allocated in line with the strategic priorities. The output of the new planning process is the three-year corporate business plan, which details the outputs that the MPA/MPS plans to deliver in support of the priorities, together with the finance required to deliver these.

The corporate business plan

2. The corporate business plan has three main purposes:

• To set out how the strategic priorities contained within the corporate strategy will be delivered over the next three years, and how business groups will contribute to their achievement
• To ensure the content of the plan meets the requirements of the business plan submission to the Mayor. This includes the financial projections (e.g. clearly identified increases in the base budget, including major initiatives and service improvements, expected changes to the funding base and efficiency savings).
• To present to the public and other stakeholders how the corporate strategy will improve service delivery to Londoners, meets their needs and demonstrates that taxpayers’ money is being appropriately spent.

Appendix 1 is an outline of the Corporate Business Plan.

3. The 2007/08 corporate business plan will form the budget submission to the Mayor in November. In order for the document to be suitable for an external audience the business plan will then be adapted to form the Annual Policing Plan which will be published on the 31 March 2007. Examples of the changes that will be made to satisfy an external audience include the statutory requirements from the Home Office (e.g. direction set by the National Policing Plan) and the tailoring of detailed financial information.

4. As part of this process, Business Groups are also making a significant contribution to efficiency planning. Control totals allocated to Business Groups already reflect approximately 2% of efficiency savings. Business Groups were also asked to identify a further 3% of efficiency savings for consideration. In addition, the Value for Money (VfM) Steering Group has been tasked with finding further crosscutting savings across the MPS. The Investment Board will review the business plans and suggestions for efficiencies in order to determine what should be included within the corporate business plan.

5. Management Board has reviewed the efficiency savings identified within the Business Group Business Plans, and have decided those that should be implemented, those that require further work and those that should be rejected.

Future key dates

6. The key forthcoming meetings and dates in relation to the development of the corporate business plan are as follows;

• 27 September – Extended MB SMT for further scrutiny of the budget proposals
• 26 October – MPA Full Authority to sign off draft corporate business plan
• November – submission of corporate business plan to the Mayor

The corporate business planning process

7. In Spring 2006, a review of the financial planning framework was undertaken to determine how financial planning could better support the MPS, and, specifically, how it could be better aligned with the improved strategic planning process. This review resulted in the design of a new financial planning framework. The key resulting changes within the process are as follows:

• The Policing London Strategy 2006-09, published in March 2006, sets the direction, outcomes and priorities for the MPS during the next three years. This Strategy is intended to drive the allocation of MPS resources through the financial planning process.
• The 2007/08 Annual Policing Plan will be adapted from the corporate business plan and will form part of the 1-year delivery mechanism of the 3-year Strategy. Both the corporate business plan and the Annual Policing Plan for 2007/08 will be informed by the Business Group business plans.
• The current focus on growth, savings and the production of a MTFP will be replaced with a corporate business plan that will focus on the cost of delivering the entire business.
• A financial envelope has been developed for the MPS covering the next 3 years. This financial envelope has, with the exception of a small % retained centrally, been allocated through control totals across the Business Groups.
• The Investment Board has agreed the control total for each Business Group. Each Business Group has produced a business plan setting out how it intends to deliver its business in line with corporate and Business Group priorities within the control total.
• A team from Strategic Finance and the Strategy, Modernisation and Performance Directorate has worked with Business Groups to help develop their plans and this has included:
  • Business planning guidance distributed to Business Groups.
  • Business Groups producing business plans, using standard templates, in order to show:
    • how the allocation of resources within the Business Group supports strategic priorities;
    • how the Met Modernisation Programme is reflected in these plans;
    • what performance management mechanisms are in place; and
    • what efficiency savings might be realised over the three year period.
  • Analysis of the Business Groups business plans and the overall process to ensure learning are captured and improvements made to the business planning process in subsequent years.
• Investment Board will assume more responsibility for the planning process. They will undertake scrutiny of the Business Group business plans and review/approve drafts of the corporate business plan.
• Management Board is clear as to the importance of both the Business Group and the corporate scrutinies. The level of interrogation at Business Group level can therefore be complemented by a detailed understanding of the overall impact on the organisation as a whole and the need to ensure alignment with strategic priorities. The aim is to include a small central point to drive strategic priorities via the MMP, notwithstanding the impact of strategic priority aligned in individual Business Groups.

Strategic priorities and their review

8. As stated above, the Policing London Strategy 2006-09 and Annual Policing Plan 2006/07 was published in March 2006. It has set the direction and strategic priorities for the MPS over the next three years. The document was developed through a process of information gathering that included public, partner and internal consultation throughout 2005 and took account of the Government and Mayor’s priorities to ensure that the MPA’s three-year strategy reflected the needs of London.

9. It was agreed that whilst the strategic outcomes would remain the same, the seven strategic priorities would be reviewed on a six-monthly basis with a full refresh on an annual basis to ensure that the strategy remains meaningful and reflects the future needs of London. The strategic priorities are:

10. As part of the six-monthly review process, the Strategy, Modernisation and Performance Directorate reviewed the seven strategic priorities in June against the Policing London Strategy outcomes using three broad criteria:

• Alignment to required strategic outcomes or results
• External stakeholder endorsement
• Achievability of the work being undertaken in support of the priority.

11. The seven strategic priorities remain aligned to or support the delivery of the MPS strategic outcomes as described in the Policing London Strategy 2006-2009. The priorities are supported by external stakeholders and will be achieved through a combination of existing Business Group activity, the Met Modernisation Programme (MMP) change programme and other initiatives.

12. The Management Board members reviewed the seven priorities listed above on 6 June 2006 at an MPS Management Board meeting. The Management Board proposed that the priorities agreed in the Corporate Strategy in draft in September 2005, and confirmed in February 2006 by the MPA Full Authority, should remain for the first half of 2007/08. The Information Quality priority would be amended to become Information Quality and Access to reflect more accurately the significance of the work area around the guidance on Management of Police Information (MOPI).

13. A briefing note was submitted to the MPA Full Authority meeting in July 2006 which provided MPA members with information in relation to the planned six-month refresh of the Policing London Strategy priorities and the new integrated business/financial planning framework. A further review of the priorities is scheduled as part of the yearly refresh of the Policing London Strategy for November 2006.

14. The GLA’s budget guidance is a reflection of the Mayor's priority aims and objectives so that real progress can be made in achieving the Mayor’s vision of an exemplary sustainable world city. For 2007-08 the Mayor’s top priority is to use the budget development process to help ensure that London is able to mitigate and adapt to climate change. A detailed overview of Mayoral priorities, including the priorities for the MPA/MPS, cast within the framework of PSAs set by the Government for the Police and for Crime and Disorder Reduction Partnerships is shown in the draft corporate business plan.

C. Race and equality impact

There are no issues directly impacting on race and equality in this paper.

D. Financial implications

There are no specific financial implications arising from this report, although the way in which our finances are aligned to delivering our priorities forms the basis for the integrated strategic / financial planning framework, described in the report.

E. Background papers

None

F. Contact details

Report author: Anikó Sinclair, Modernisation Programme, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1

Corporate Business Plan 2007/08

Foreword from Commissioner and Chair of MPA

Executive summary

How the MPS is building on the work of previous year, what our focus for this year will be and what we expect our key deliverables to be

Budget summary

Table showing budget summary and commentary of key points

Introduction

Short statement about the purpose of the corporate business plan, what the MPS continues to focus on and what is on horizon (e.g. Olympics)

Strategic outcomes and priorities

Statement about this being 2nd year of Policing London Strategy with reference to strategic outcomes and strategic priorities.

Setting the policing priorities

Statement about how the consultation undertaken, the corporate strategic assessment and the National Community Safety Plan, local policing priorities and the Mayor’s priorities have informed or are consistent with our priorities.

Environment/Sustainability considerations

Key points about environment and sustainability (to reinforce link to Mayor’s priorities)

Delivery plan

Commentary on how the MPS is delivering each of the strategic priorities, update on progress and intentions for 07/08, with any key deliverables.

Update on the progress of the Met Modernisation Programme and how this will support delivery of strategic priorities and improve performance.

Objectives, measures and targets

How the MPS intends to account for its success in delivering its strategic priorities and outcomes.

• Summary of Critical performance areas, measures and targets for 2006/07 and how these link to strategic outcomes.
• Table of MPS performance in 2006/07 against critical performance areas, measures and targets
• Plans for 07/08

Making Best use of resources

Three year financial plan

Table showing breakdown of the 3-year corporate plan (e.g. pay, overtime, running expenses, income, pension costs).

Budget setting

Summary results – overview [to be completed later]

Table summarising the business planning process (e.g. changes to base budget, committed increases, decreases, efficiency savings and new initiatives).

Capital Programme

Summary of capital programme for next three years, broken down by user (i.e. TP, SO, etc) rather than provider (DoI, PSD, etc) as at present.

Value for Money

Brief explanation of efficiency planning, including Activity Based Costing and Value for Money Workplan.

Human Resources

Statement about overall HR capacity, how a modern and diverse workforce is being develop and how capability is being strengthened.

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