Service improvement plan update

Report: 4
Date: 13 January 2011
By: Director of Resources on behalf of the Commissioner

Summary

This report updates members on the progress of the Service Improvement Plan portfolio (SIP).

A. Recommendations

That members

1. Note the progress on the SIP.

B. Supporting information

1. The Commissioner set out the MPS Vision Framework on the 18th October indicating the direction of travel for the MPS up to and beyond the 2012 Olympic Games. The corporate objective Value For Money is articulated within the draft 2011-14 Policing Plan which is focused on: doing all we can to maintain our operational capability; delivering efficient and effective support services at the lowest possible cost; and making the most productive use of our operational assets. Many of the key SIP projects have already had and will continue to have a major impact on support services across the organisation, ensuring the Service evolves in a way that continues to provide value for money services within a changing operational and business environment.

2. To assist in delivering this, the SIP is a formal process through which major improvement/efficiency activity is identified and implemented and forms part of the Service’s medium-term business and budget planning process. The SIP identifies the areas of the Service, which are the focus of investment or efficiency review decisions.

3. S&ID co-ordinate the delivery of the SIP portfolio, ensuring that the projects remain on track to deliver. The SIP is a core element of our planning and performance framework, targeting all areas of spending to enable the MPS to deliver its operations and support functions as efficiently as possible. This is integral to the delivery of a fully balanced MTFP. The portfolio will also inform the discussions leading to the development of the policing model and the new post Olympic operating framework for the MPS.

4. Governance Board acts as the oversight board for SIPs, authorising business cases, monitoring overall progress, risk, opportunities and dependencies ensuring that the portfolio delivers a balanced policing model. Each SIP has its own Senior Responsible Officer, Programme Manager, and programme board who are responsible and accountable for programme delivery, programme level benefits management, dependencies mapping and risk management. The Quarterly Management Report has been developed which provides Management Board (MB) and the MPA with an update on the status of the portfolio on an exception reporting basis.

5. A corporate overview of the risks and dependencies of the portfolio has identified 2 key risks areas that cross cut the corporate change programmes. These are:

• A potential failure for savings to be delivered to identified timescales
• The scale and complexity of the change across the MPS which needs to be managed through excellent communication and developing an understanding of dependencies between the change programmes.

6. The SRO/Programme Manager is responsible for ensuring that risks to the successful delivery of the programme are managed appropriately. All programmes are expected to have a risk register that is regularly reviewed by the relevant programme board. Any risk that cannot be managed within the programme or would have wider impacts across the MPS is escalated to Governance Board as part of an exception report.

7. RAP members have received presentations on the progress of key SIP projects during the year. An update on the Developing Resource Management Programme was presented at RAP in November 2009. Additionally, key HR SIP projects have been presented to the MPA REMCO committee meetings, and a full update on each SIP project was included as part of the 2011/12 Budget Scrutiny Sessions held by MPA members and officers.

8. Each individual SIP is responsible for identifying dependencies within their programme and managing the potential impact. In addition to this, Management Board co-ordinate corporate change and identify interdependencies between individual change initiatives. S&ID also provide support to change programmes at an operational level. For example, S&ID are currently supporting both the TP Development and SCD Re-alignment programmes.

9. The following key change projects and programmes have either significant savings built into the budget or are likely to deliver significant savings. These projects are on track with the milestones submitted as part of the regular quarterly reporting on the SIP portfolio. Where applicable, the savings built into the proposed 2011/12 budget for these projects are included in exempt Appendix 1. The projects and programmes have been grouped in line with the Value For Money corporate objective themes:
Value for Money theme: Maintaining our operational capability.

TP Development Programme

10. The TP Development Programme is developing business cases for several of the projects for sign-off at Management Board by January/February 2011. These projects will then move into the implementation planning phase. TP Development is scheduled to deliver significant business change and savings over the coming years. In addition, Safer Neighbourhoods and Front Counters/Public Access projects are conducting reviews involving internal and external consultation that will inform their business cases later in 2011. Response project is moving to pilot phase in Lambeth in February with further pilots planned in 2011. Evaluations of the pilots will be used to form the business cases for change at a later date. The TP Investigation project has undergone a significant re-scoping exercise to incorporate investigative functions carried out within SCD. A refreshed terms of reference detailing this re-scoping will be completed by January 2011, and will allow the project to move into detailed design phase. An update on the programme is being provided to the SOP Committee meeting on the 13th January.

CO Improvement Plan

11. Initial scoping work completed in July, where a number of workstreams were identified with the potential to deliver both service delivery improvements and cashable savings. The improvement plan currently consists of 8 strands, each of which has developed a detailed project plan. The final overall improvement plan, timescales and activities for implementation is currently being finalised.

12. All operational shift patterns for CO have now been reviewed to ensure that they meet demand and are cost effective. A new Traffic OCU shift pattern, and a new 24/7 shift pattern for the TSG Commissioners Reserve are planned go live on the 1st April.

13. The formation of CO5 has led to the establishment of agreed command and control structures for the MPS in relation to CT operations, firearms in public order and development of the MPS armed asset co ordination plan.

SCD Re-alignment Programme

14. Initial scoping work completed in May, when SCD Realignment Programme Board agreed a programme of work to deliver the aims of the programme. A second milestone was reached on 21st June, when the Board agreed a new organisational structure for SCD, which was subsequently endorsed by Management Board on 29th July. This was implemented at the end of September 2010.

15. Delivery of recommendations for the new blueprint, and identification of opportunities to work 'smarter' within the new functional areas will be delivered to SCD's Command Team on 18th January 2011.

16. Implementation of the new blueprint (subject to any need to further develop proposals/business cases) will commence in April 2011.

Value for Money Theme: Delivering efficient and effective support services at the lowest possible cost.

Developing Resource Management (DRM)

17. The DRM programme has progressed strongly throughout 2010/11, enhancing governance, cutting the risk of control failures, and achieving efficiencies and cashable savings. Recently capital spend management and enhanced invoice management systems went live, and an expert review of our resource management systems is close to completion. The Finance and Resources Modernisation 2, Corporate Real Estate, Delivery of Property Services, and Asset Tracking workstreams are working across the organisation to drive major improvements in performance and the provision of services. A suite of enhancements to our procurement processes, systems, and capability are being implemented, and enhanced systems to support procurement processes from sourcing to payment will be implemented next year.

18. A further DRM workstream developed Strategic Procurement Plans (SPPs) over summer 2010 - driving significant savings and providing expert procurement support to the business. 50 new plans were identified and capability for demand management developed. Management and development of SPPs is now built into business as usual activity, with a coordinator supporting business groups.

19. DRM workstreams have drawn on expert advice and support through external consultants. Our Procurement workstream was supported by Capgemini, and Capability Review of our use of SAP by PricewaterhouseCoopers. Consultants bring expertise and good practice, advise and develop recommendations for improvements. Improvements in procurement are now being delivered in-house. A monthly update on DRM is provided to the MPA by the Programme Manager.

Developing Training

20. MB endorsed a new professional development framework in September. The Regional Learning Centres will deliver the majority of MPS training and will be supported by specialist training facilities. The framework was also presented to the MPA REMCO Committee in October.

ICT Programmes

Review of CapGemini Contract

21. On the 5th May 2010 the MPA signed an extension to the ICT services agreement with CapGemini. The extension will provide the MPS with ICT support services until 2015. Through the renegotiation of this contract the MPS has enabled significant cashable savings to be delivered.

Corporate Print Management Solutions

22. MPA approved award of contract to Canon at its 5th July 2010 meeting. Project now expected to deliver significant savings. Contract signed with Canon on 18th August 2010 for commencement of Print Management from 1st December 2010.

Reduce costs of supporting IT

23. This project includes reviewing existing systems to identify systems that can be decommissioned. This includes improving and reviewing arrangements for licensing, Service Level Agreements, 3rd party contracts, inventories, machine usage, archiving strategies, business continuity arrangements and implementing business process improvements. This project has realized significant savings and is focused on identifying further savings opportunities for 2011/12.

Catering

24. The MPA REMCO committee in October have been provided with progress on the Catering SIP2 which is predicted to deliver significant savings on the Catering Services subsidy within a three year timeframe, with modernisation of the services and facilities it provides. This follows MB approval in July to the removal of the catering subsidy by modernising Catering Services over a 3 year time frame.

Value for Money Theme: Making the most productive use of our operational assets

Corporate Real Estate (CRE)

25. PSD informally presented the CRE proposals to the MPA Estates Panel during September 2010. The updated list of disposals for 2010/11 was presented and approved at the MPA (F&R) Committee on 21 October 2010.

26. The proposed list for disposals in 2011/12 has been presented and supported by MPS Management Board in November, the list has been presented to the MPA Estates Panel in November and MPA (F&R) in December.

Transport

27. The Transport project is identifying improvements and savings across a number of areas including vehicle replacement (procurement), current transport support contracts and allocation and ownership of vehicle fleet. The project will deliver significant savings over the next 3 years.

Management of workforce issues

28. In September 2010 the Organisational Change Policy and accompanying Standard Operating Procedure (for Police Staff) was revised to improve the approach taken to the management of change within the MPS (in particular in those areas that may result in a reduction in staff numbers). The Policy and Standard Operating Procedure provide a framework for the effective management of local and corporate change within the MPS, ensuring that change initiatives across the organisation are managed consistently and deliver against their intended objectives. The framework provides guidance for those managers responsible for delivering change by ensuring that the proper planning and consultation is undertaken and that staff affected by change are treated fairly and consistently. The Policy and SOP are supplemented by a number of practical toolkits.

29. Oversight of the implementation of the MPS Organisational Change Policy and accompanying toolkits is the responsibility of the HR Organisational Development (OD) Team. Senior OD Consultants from this team are assigned to work with each SIP Lead to ensure appropriate HR support is in place in respect of the management of all the people aspects of the change (including consultation, selection etc.). This approach also ensures that the HR OD Team posses a corporate overview of MPS change activity which can be used to facilitate employment relations and ensure that dependencies between pieces of work are proactively managed.

30. The Organisational Change Policy emphasises our position that the MPS is committed to avoiding compulsory redundancies wherever possible. With support from HR, Business Group Change Leads are responsible for ensuring that all relevant pre-redundancy measures are put in place. This includes the provision of opportunities for voluntary early departure from the organisation where appropriate.

31. To facilitate delivery against our budgetary pressures, the MPS is currently in the process of running an initial voluntary early departure exercise aimed at five groups:

• Existing Police Staff on the Police Staff Postings List
• Station Reception Officers
• Traffic Wardens
• Catering in-scope staff
• Training and Development in-scope staff

32. These groups, identified in consultation with the Trade Union Side and approved by Management Board on 27 October 2010, were selected on the basis that either the function as it is currently delivered is obsolete or from April 2011 there will be fewer posts than staff currently employed and therefore a reduction in the existing headcount is critical for achieving the savings the MPS has built into the SIP and other elements of the Mid Term Financial Plan. The MPA Finance & Resources Committee has approved MPS access to the Reserves in order to meet the costs of shrinking the Service.

33. Early departure activity is coordinated centrally by the HR Employment Relations Team. A dedicated early departure team has been established and bespoke outplacement support is being offered to staff who wish to take up voluntary terms. Every effort is being made to ensure that staff are treated with dignity and respect during this difficult time and the HR Business Partner / SHRA network is working closely with line managers to help them manage the difficult conversations.

34. It is recognised that further staffing groups may be brought in-scope for the voluntary early departure scheme in line with the emerging needs of the business (e.g. TP Development Programme) when the Business Groups are in a position to clearly define in-scope groups for targeting. Any additions to the current set of target groups would be subject to MB and MPA approval. The current voluntary early departure process has been debriefed with the internal HR community and Change Leads in order to capture learning and feed this in to future such processes.

C. Other organisational and community implications

Equality and Diversity Impact

1. All projects in the SIP portfolio are required to have an accompanying Equality Impact Assessment (EIA). This will identify at the earliest opportunity any potential risk of disproportionality and enable this to be proactively managed.

Consideration of MET Forward

2. The SIP is a key part of the developing Policing London Business Plan 2011-14, which is drafted in full consideration of Met Forward and follows the same themes and outcomes for policing London.

Financial Implications

3. The SIP programmes and projects have, and will continue to have, a significant impact on the MPS Budget in terms of both cost avoidance and budget savings. The SIP portfolio aims to ensure the efficient and economic use of resources in the delivery of an effective policing service. The MPS are funding the one-off implementation costs associated with these projects primarily from the Service Improvement Fund.

Legal Implications

4. The MPA is a best value authority as defined in the Local Government Act 1999. As such it must "make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness". The SIP process outlined in this report is a means of fulfilling this duty. There are no other specific legal implications arising from this report.

Environmental Implications

5. There are no environmental impacts arising from this report.

Risk Implications

6. The SIP is a key risk control which is included in the corporate risk register under both the non people resources and change management risk areas. This report does not identify any new risk areas.

D. Background papers

None

E. Contact details

Report authors: Ross Daniels & Karen Neale, Strategy & Improvement Department, Directorate of Resources, MPS

For more information contact:

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

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