MPS Corporate Governance Framework update

Report: 8
Date: 11 September 2008
By: Director of Resources on behalf of the Commissioner

Summary

This report provides a progress report on the Metropolitan Police Service (MPS) corporate governance work programme. It includes updates on the areas identified by the MPS Annual Assurance Statement to enhance the MPS governance arrangements, in addition to workstreams previously identified as part of the work programme. This report also incorporates the Corporate Risk Management Update report that this committee previously received as a separate item.

A. Recommendation

That the Committee notes the report

B. Supporting information

Current Corporate Governance Arrangements

1. The MPS is striving to achieve excellence in corporate governance. Management Board has approved an established ‘Temple’ model of corporate governance (see Appendix 1) that reflects current good practice and was detailed in previous reports to the Committee.

2. A gap analysis of the MPS Corporate Governance Framework against the elements of the CIPFA / SOLACE Good Governance Framework informed the development of the corporate governance work programme. The work programme is managed and monitored through the MPS Corporate Governance Coordination Group with regular progress updates to the Performance Board and this Committee.

Summary

3. The MPS has adopted the ‘ temple’ model of corporate governance set out in Appendix 1. This model is supported by the corporate governance work programme, which consists of the following workstreams, which includes the areas identified by the MPS Annual Assurance Statement required to enhance the MPS governance arrangements. The current status of each workstream is provided below with more detail set out in section D of this report.

‘Business as usual’ workstreams

4. A number of workstreams appeared in the original corporate governance work programme because they were priorities for development at the time. Since then the appropriate work has been undertaken to allow them to be managed as ‘business as usual’:

• Consolidated External Audit Action Plan - Strategic Finance continues to produce a monthly action plan, which identifies and monitors progress against financial audit recommendations. It incorporates recommendations arising from the Annual Audit letter, Interim Systems Audit, PURE and any outstanding queries from the HMIC Baseline Assessment and identifies issue owners at both Management Board and practitioner levels. This report is also reviewed on a regular basis by the joint Strategic Finance and Business Support working group, this ensures ownership of issues by Lead Accountants and that progress is formally monitored. Recommendations from the Audit Commission PURE and HMIC Strategic Resource Leverage inspections that took place earlier this year will be incorporated when the reports are published in October 2008.
• Capital and revenue budget and business planning – it is an on-going aim of the business planning process to deliver greater integration of the business/financial planning framework reflecting a developing approach to strategic planning in the MPS to ensure that financial planning and budgeting are driven by strategic priorities and business needs and that resources are allocated in line with the MPS objectives. This aim was central to the creation of the new Strategy and Improvement Department following the review of the MPS corporate centre.
• Environmental impact analyses - a template and guidelines for assessing the environmental sustainability impacts of business cases, and contracts have been published as part of the business case preparation guidelines and contracts board approval process. The MPS Environment Team provides advice and assistance as required. Compliance to the requirement is steadily improving across business groups as awareness increases. The requirement has been included within the Corporate Business Plan guidance, which has been developed to ensure that business groups consider their contribution to Corporate Social Responsibility (environment, equalities, and health and social inclusion) as part of their objectives.

Progress update

Public Engagement and Consultation

5. The Strategy and Improvement Department has reviewed the current means of public engagement and consultation within the MPS, and consultation has also taken place with the MPA. All forms of engagement and consultation are now mapped.

6. A key issue is the need to strengthen the role of engagement and consultation within the annual planning process. This will now be achieved in the following way. The Public Attitude Survey (PAS) will include questioning around policing objectives, and, specifically, an open question to elicit peoples’ priorities for policing. This will be in place for quarter three in the 2008/9 planning cycle (October 2008) and thereafter. The information gleaned will then be considered alongside other sources - principally safer neighbourhoods and safer schools data - to inform the development of content for the Policing Plan. A major advantage of using the PAS in this way is to exploit existing machinery without resorting to new methods and associated new bureaucracy. The sample is large (5,000 responses a quarter), yielding legitimate and defensible results.

Safer Neighbourhoods panel training & business/youth engagement

7. The pilot stage of the Safer Neighbourhoods panel training is now complete and agreement between the MPA/MPS and Safer London Foundation (SLF) to roll out the training over the next two years is in place. A Project Manager has been recruited to progress this training, which is planned to start in September 2008 with Croydon Borough going first.

8. The Business (Retail) Engagement pilot on eight Safer Neighbourhood Teams (SNTs) is on track. The development of a Business Key Individual Network (BKIN) survey was agreed between the MPS/London First, British Retail Consortium and Federation of Small Businesses. The baseline survey was completed in April 2008 and each of the eight SNTs has an action plan in place to tackle the relevant issues. The follow up survey is currently taking place. BMG will then evaluate the responses in September 2008. The results will then help to develop a Business Engagement 'Tool Kit'. A new project has started in partnership with the City of London Police, London First, Business Lobby Groups, Businesses, NPIA. This involves academic research being conducted on the three areas, two within the MPS: London Bridge and the Victoria Corridor. This project, again, is looking to establish the key drivers in improving confidence in policing from the business community. It is due to identify the key activities that bring success and is an opportunity to test new ways of working. The Project group is to report its finding in September 2009.

9. Youth engagement via on-line survey and SN panels is in place. The survey is designed to identify issues and places where young people felt unsafe in their neighbourhoods, such as on their way to school, at school and on their journey home from school. The survey was conducted on the Internet. Over 5000 replies were received. In addition to the 630 SN panels, there are currently 131 Youth Panels set up across London. These panels are required to have a priority that has been identified through youth engagement work. The current top priorities identified are as follows:

• Anti Social Behaviour by Youths
• Anti Social Behaviour in general
• Drug Dealing and Using
• Anti Social Behaviour by motorists
• Anti Social Behaviour related to alcohol

Introduction of a Strategy Co-ordination Role

10. The Strategy & Improvement Department (S&ID) has now been created within Resources Directorate and new roles around Strategy Development have been recruited. Enhanced resources within S&ID are currently being recruited, though start dates are under negotiation.

11. The Corporate Strategic Assessment (CSA) process is being enhanced to reflect both the business group structure of the MPS, as well as the key thematic activities, in its governance arrangements. The process is now designed to inform the 2010-11 financial year, delivering an evidence-based assessment 14 months ahead of the start of the year.

12. This new timeline provides the MPS with the opportunity to incorporate the recommendations of the CSA into business groups’ plans. The CSA process is scheduled to begin in September, with an organisational review of the 2009-10 proposed Business Plan delivered to Management Board that month.

Implementation of the Taylor reforms

13. The Taylor Project Team is working towards a December 2008 ‘Go Live’ date. The Home Office has now confirmed this revised date.

14. The TP BOCU Pilot Model continues to develop and key roles have been established to include the Professional Standards Focus Desk (PSFD), Misconduct Severity Assessor (MSA), Misconduct Meeting Managers and Appeals Managers. The proposed BOCU model will be presented to the TP Command Team on 2 September, although by that time the majority of staff will have received training in the processes and it is only the structure and practicalities of operation which will need to be set out. Camden Borough will continue to be the trial site for the MPS.

15 HR Directorate has set up an Unsatisfactory Performance Procedures (UPP) Forum where key stakeholders have been invited to engage on the implementation of the UPP. The first meeting was held on 2 July and will continue on a monthly basis for the foreseeable future.

16. Internal processes continue to be changed in line with the Taylor guidance and Terms of Reference have been drawn up for Taylor Practice Team Meetings. These are to be held monthly to improve the general flow of information, discuss reporting trends and quality, identify any intelligence gaps, discuss performance trends and discuss moderation of severity assessments, to ensure consistency in decision making. The meeting will be made up of DPS representatives leading on key areas of Taylor. Outcomes, exceptions and feedback from these meetings will be reported into the monthly Taylor Project Board, chaired by DCS Hamish Campbell.

17 Multi-agency consultation and workshops continue to resolve such issues as defining Gross Misconduct, CPS threshold changes & appeals for non-referrals and dealing with written warnings given in the 12 months up to the start date of Taylor. Det Supt Campbell is leading the consultation process on these issues primarily with the IPCC and CPS. A final Management Board paper will be prepared for by October to provide an overview of progress.

18. The first tranche of Taylor Training was rolled out in July and will continue in September to equip key staff in how to run an effective misconduct management system. Arrangements are also in place to train representatives from SAMURAI. The remainder of the training schedule will continue to roll out in preparation for ‘go live’.

19. A high impact briefing and publicity campaign has been prepared and will be rolled out from September to December. A number of interviews by DCS Campbell have been given to various police publications; Police Magazine, Police Professional Magazine, The Job and Police Review. Internal Communications continue through the Intranet, Taylor web pages and newsletters.

Review of corporate risk management

20. Strategy & Improvement Department Review:

Responsibility for corporate risk management now falls within the remit of the Director of Business Performance. A Corporate Risk Manager has recently been appointed with specific responsibilities for:

• Developing the MPS corporate risk management framework;
• Integrating risk management into strategic decision making, business planning and performance management.

The Corporate Risk Manager will work closely with Finance Services who will take on responsibilities for providing assistance at the Borough/Operational Command Unit level for:

• Risk management advice
• Quality assurance
• Risk management training

This element of the Resources Directorate Business Support review is on going.

21. Internal Audit Directorate Review of Risk Assessment and Management:
Work continues to meet the recommendations made within final report of the Internal Audit Directorate in line with the paragraphs below, it is anticipated that target dates will be achieved.

22. Risk Management Strategy:
Good progress is being made on the revision of the risk management strategy and an initial draft and implementation plan has been forwarded to the Corporate Risk Review Group and other key stakeholders for comment. It is expected that the revised strategy will be submitted to the Corporate Governance Committee in December 2008.

23. Integrating Risk Management into Strategic Decision Making:
The reshaping of the Strategy & Improvement Department has brought closer links between the Corporate Risk Manager, the Business Planning and Performance Team and the Strategic Research and Analysis Unit. This should enable a rationalisation of strategic management processes and corporate decision making allowing risk management processes to become fully embedded over the next 12 months.

24. Measuring Risk Management Performance:
Initial collection of a corporate risk management performance indicator for April to June 2008 (the number of Business Groups/(B)OCUs with an effective risk management process) has indicated that all business groups meet the expected standard of maturity with effective risk identification and analysis processes in place. There are weaknesses in respect of links to annual planning and the monitoring of risks as expected at this stage of risk management maturity. A maturity model for the business group/(B)OCU level is being developed and designed to encourage continuous improvement. More robust evidence based information collection measures are being implemented in time to collect the next round of information (July to September 2008).

25 Corporate Risk Register:
Work continues on risk management governance, including considerations around a new, enhanced corporate risk register. Currently risks are being managed within business groups, with the intention that new corporate governance arrangements will be implemented in September.

Formation of MetLaw reception desk

26. The MetLaw desk was launched on 2 May 2008, via the intranet throughout the MPS. All legal enquiries must now come through the MetLaw desk regardless of whether it is dealt with by an in-house lawyer or by MPS/MPA approved external legal suppliers.

27. The MetLaw desk is a platform for DLS to monitor the legal spend on behalf of the MPS. DLS are presently working with other MPS Directorates to finalise working arrangements and policies/procedures.

Emerging market hotspots

28. Work has begun with business group HR leads to identify market pressures, primarily in Resources and DoI. It is intended that this review will be completed by the end of September.

29. HR Pay & Benefits are seeking at the same time to improve the range of market data available for benchmarking, such as commercial surveys and information from recruitment agencies, which can be used in conjunction with the review data above, especially in relation to specialist/ professional areas.

Development of corporate health organisational performance indicators

30. The first quarterly report of the approved set of MPS Corporate Health Organisation Indicators covering the period up to end June 2008 will be presented to the September Performance Board meeting. This report will provide the Management Board with a tool to improve its ability to manage effectively and to provide accountability to stakeholders. These indicators sit alongside police performance indicators and financial monitoring information to give a more rounded picture of the Service’s performance.

31. The agreed indicators, which in the main were already being collected and monitored locally, support the MPS ‘temple’ model of corporate governance under the three pillars. To reflect all the different elements of the MPS Corporate Governance Framework the full set of 60 indicators will be monitored, however the a headline set of 15 indicators will be reported to Performance Board quarterly with an additional 4 being reported annually. The remaining supporting indicators will be monitored locally and reported on an exception basis accompanied by any appropriate analysis.

32. Since the last update further work has been undertaken with business groups to ensure that adequate reporting arrangements are in place for each of the indicators and that appropriate analysis is provided to support the headline indicators and those of the supporting indicators raised as an exception. The indicators will be built into the budget / business plan and will form part of the developing arrangements for reporting on the operation of the Service including policing performance.

Developing Resource Management Programme

33. On 7 May 2008, the MPS Management Board approved a proposal to bring together a number of Resource-led workstreams under a single governance structure managed as a ‘Developing Resource Management’ (DRM) programme with the purpose of:

• Ensuring rigour around our approach to delivering efficiency, productivity and change so that the MPS can demonstrate that it is delivering value for money policing and that continuous improvement is integral to its business operations
• Ensuring clear demonstrable governance arrangements with the Metropolitan Police Authority and improving accountability and the transparency of decision-making across the Service
• Minimising the risk of control failures across the Service.

34. The programme pulls together the following key workstreams:

35. Contract Compliance and Monitoring (CCM) - Establishment of a baseline of existing contracts and subsequent implementation of these into a controlled and sustainable environment. A consolidated database of all contracts will be produced in September 2008, with agreed contracts uploaded onto corporate systems in February 2009.

36. Finance & Resources (F&R) Modernisation - Delivering improvements in the field of professional capacity and capability of the F&R function across the MPS.

37. Corporate Decision Making (CDM) - Design of a working solution to manage CDM at the MPS through proven methods and tools. An options paper will be presented to Management Board in September 2008, with a view to the process being agreed in October and implemented by December 2008.

38. Purchase to Pay (P2P) - Streamlining and standardisation of P2P processes to provide greater visibility and enable effective management and control of MPS expenditure. Further categories of expenditure will be brought onto the P2P process throughout 2008/09.

39. Scheme of Delegation - Introduction of uniform financial authorisation levels into MPS systems and processes to support Metropolitan Police Authority Standing Orders and enabling the effective delivery of the P2P processes and benefits. New financial authorisation levels will be place in September 2008 with a full scheme of delegation updated in corporate systems in March 2009.

40. MPS Partnership Framework - Ensuring that appropriate governance arrangements and processes are in place to support partnerships and ensure compliance with MPA/MPS decision-making frameworks. This work will develop a Service approach to LAA partnerships, a partnerships database and good practice guidance to support those involved in partnership working.

Corporate Audit and Inspection Strategy

41. A protocol for working with audit and inspection agencies has been developed in consultation with the HMIC, Internal Audit and Audit Commission. The Protocol is supported by internal guidance for practitioners and a communication strategy.

42. Each of the agencies has been sent the final version of the protocol. Once confirmation of their acceptance has been received the protocol will publicised through various forums, such as the MPS intranet and at meetings with practitioners. It will also be deposited in the MPA Reference Library.

Enhanced MPA / MPS Fraud and Corruption Awareness Strategy

43. Work is ongoing on developing a joint MPA/MPS framework for improving the awareness of fraud and corruption issues across the Service. An Audit Commission toolkit is being prepared which includes the use of a tailored online self-assessment questionnaire, workshops and follow up sessions.

44. Phase One of the process is intended to target the most senior levels within the MPS and will include senior finance and resources staff. Timescales for this phase are for completion by December 2008 and for the cascading of information to all levels of the organisation thereafter. Also, existing learning vehicles will be used to cascade training, including the development of a module within the leadership training events.

MPS Complaints and Compliments (policy and resource)

45. The Citizen Focus Policing Programme is continuing to manage the development of a reward and resolution process, which will deal with quality of service issues. The aim is to provide opportunities for service recovery by directly addressing customer concerns and rewarding staff for good service provision. The process supports Our Promise to Citizens which details the standards of service members of the public can expect from the MPS. This is also being developed by the Citizen Focus Policing Programme Team. Both are on schedule to be available October 2008.

Review of Expenses Policy

46. A revised Gifts & Corporate Hospitality Policy and SOP has been drafted. The MPS Management Board will shortly consider this.

47. There is no current formal policy on expenses incurred in the course of normal business. Policy differs for officers and staff and guidance and procedures are covered for both groups in a variety of ways. A review of all current policy and processes covering expenses is currently being undertaken by HR Pay & Benefits. This may result in a formal Policy and SOP being introduced if current processes are found to be inadequate or no longer appropriate.

C. Race and equality impact

The model of corporate governance set out in this report is based on the principles of openness; integrity; accountability and equality. The development of the framework therefore should have a positive race and diversity impact by ensuring that these principles inform the way in which the MPS operates. Furthermore, improved communication of the corporate governance framework aims to help staff understand how to apply these principles in their day-to-day work.

D. Financial implications

The work streams identified will be delivered within approved budgets.

E. Background papers

None

F. Contact details

Report author: Lucy Dunn, Resources Directorate, MPS.

For information contact:

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

Appendix 1: The MPS Corporate Governance Model

MPS Mission and agreed outcomes

• Taking informed and transparent decisions
• Being accountable
• Demonstrating values and good governance through high standards
• Achieving common purpose with clearly defined roles and functions

MPS Values – how we achieve our outcomes

Send an e-mail linking to this page

Feedback