Thematic Performance report

Report: 5
Joint meeting of the Strategic and Operational Policing and Finance and Resources Committees
Date: 17 February 2011
By: Director of Resources on behalf of the Commissioner

Summary

This paper reviews MPS performance and initiatives against the 2010-13 corporate objective to ‘Lead and Manage our service to ensure the most efficient, effective and economic use of all the resources entrusted to us’.

A. Recommendation

That Members note the work carried out in respect of the MPS’ 2010-13 Corporate Objective to Lead and Manage our Service, particularly in response to significant political and financial developments during this financial year.

B. Supporting information

Context

1. The MPS is a highly complex, operationally driven organisation. The MPS has a gross expenditure budget of £3.6bn in 2010/11, with overall staff numbers of approximately 57,000 staff including an anticipated police officer strength of approximately 32,100 by the end of the financial year.

2. Additionally, the MPA/S had fixed assets valued at £2bn as at 31st March 2010 (as per the 2009/10 published accounts)

3. The MPS continues to engage in a significant amount of work to ensure that we provide value for money in delivering effective and efficient policing services to the diverse communities in London.

4. This is reflected in the 2010-13 Policing London Business Plan under the strategic theme of IMPROVEMENT. There are nine key deliverables for 2010/11, supported by a number of Key Performance Indicators (KPIs). This report will focus on the key deliverables as the KPIs are reported through the headline performance report submitted monthly to SOP Committee.

5. In broad terms the key deliverable identified in the Plan are:

• To deliver cashable efficiencies
• To implement effective Business Planning and Performance Management
• To develop the Service Improvement Plan (SIP)
• To deliver effective services through ICT, Transforming HR and Estates
• To improve information quality
• To develop leadership and workforce skills
• To continue to build a representative workforce
• To improve quality of life for our staff and Londoners
• To drive sustainable consumption of resources.

6. During this financial year the MPS Corporate Strategic Assessment undertaken to inform the 2011-14 Policing London Business Plan has evidenced the extremely challenging environment in which the Service is now operating. As a result the 2010-13 strategic theme of IMPROVEMENT has been redefined as VALUE FOR MONEY.

7. In common with our public sector partners we have, during this financial year, faced the challenge of meeting increased demands for quality policing services against a backdrop of shrinking budgets. In brief, the MPS faces the sharpest reduction in public expenditure since 1945.

8. In tackling these difficult financial pressures we are examining every pound we spend to build on the substantial savings we have made in recent years. We are striving to improve service delivery and to deploy resources to areas of most need. We are determined to find new and creative ways of giving the best return on public money, and to deliver effective policing in a leaner organisation.

9. We have therefore focused on delivering greater efficiencies in our core operational and support processes through targeted process improvements, better deployment, training & supervision of our people, better utilisation of our technology, information and fixed assets.

Delivering cashable efficiencies

10. The MPS has a good record for service delivery whilst achieving significant efficiencies that have allowed us to optimise our operational capability. We have made significant progress in controlling and reducing costs in this and in recent years, despite many uncertainties around funding, final determination of savings and growth proposals, decisions by partner organisations on service funding and the impact of significant operational events in 2010/11. In particular:

• The MPS had a stated 2010/11 budget requirement of £2,673.3m in the 2010-13 Policing London Business Plan
• The 2010-13 planning process requires us to achieve savings of £124m in 2010/11, and additionally £168m in 2011/12 and £194m in 2012/13 (subsequently updated following the Comprehensive Spending Review)
• The MPS has already made significant savings of £72m in 2008/09 and £194m in 2009/10. We are on target to meet our savings target in 2010/11
• The savings delivered so far in 2010/11 have been made whilst protecting front-line services - in excess of 70% of savings relate to support services
• Following the approval of the 2010/11 budget, in May 2010 the Home Office notified the MPA/MPS that grant allocations were to reduce by £30.4m, with a further £5m reduction in Counter Terrorism funding. Of the £30.4m general grant reduction £28m relates to revenue and £2.4m relates to capital allocations
• In developing a programme to meet this late notification of grant reduction it should be noted that these additional reductions, on top of the £124m budgeted savings, have placed significant additional pressure on the Service.

11. The Revenue and Capital budget monitoring report provides an update on the revenue monitoring position for 2010/11. Period 8 monitoring for 2010/11 forecasts a year end overspends of £2.7m. However with positive management action it is anticipated that, despite current pressures, it should be possible to deliver an under spend of £10m to support the delivery of the 2011-14 Policing London Business Plan.

12. The Capital Programme as at the end of Period 8 (November) shows year to date total expenditure of £115.6m. This total represents 41.8% of the revised annual budget of £276.3m. The forecast for the year of £230.6m represents an under-spend of £45.7m (16.7% of the revised annual budget).

13. It should be noted that the MPA/MPS have, over a number of years, actively pursued value for money. We have consistently met HM Treasury efficiency targets since they started in 1999.

• The total cumulative efficiency savings achieved at the end of the second quarter 2010/11 (including 2008/09 and 2009/10 actual and the permitted surplus savings brought forward from 2007/08) are £346.4m
• The cumulative forecast for savings to be achieved by the end of 2010/11 is £408.4m, an over-achievement of £63.5m against the HM Treasury target of £344.9m, which equates to an over achievement of 18.4%
• The MPS is the only force in England and Wales to deliver a reduction in our share of precept in 2009/10 (-1.1%) and 2010/11 (-3.3%).
• Overtime cost per officer has reduced from £5,274 in 2005/06 to £4,264 in 2009/10, a reduction of 19%

14. The Commissioner had been clear that our approach in meeting our financial challenges should focus 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.

This has meant:

• Reducing our inanimate costs (vehicles, buildings etc) as quickly as possible (we are on track to remove 20% of our costs in those areas over the coming three years, including 25% of our estate costs)
• Ensuring our business model is as lean as is practically possible (over 80% of our planned Service Improvement savings per annum from 2013/14 are from support services); and only then
• Reducing operational officers and PCSOs and mitigating the loss in capacity, for instance through process re-engineering and working with others. However the MPS has aimed to deliver operational savings through savings in overtime (£12m planned by 2013/14) and allowances (£16m by 2013/14) and reduction in Safer Neighbourhood supervision costs (£15m by 2013/14).

15. Many financial challenges still remain which may impact on the MPA final budget and precept requirements for 2011/12 and beyond. The main uncertainties are:

• Level of specific grant funding
• Final determination of savings and growth proposals
• Decisions by partner organisations on service funding
• Significant events
• The level of government grant and GLA funding in the medium term
• How the funding gaps in 2012/13 and 2013/14 will be closed.

Business planning and performance management

16. The MPS has enhanced business planning and performance management in support of the challenging environment in which we operate to ensure that we can delivery effective policing whilst being more efficient. The MPS has moved on from a basic efficiency target setting and short term focus to addressing broader challenges with a longer term focus.

17. The planning framework for 2010/11 has been developed further from that introduced for 2009/10, Sometimes seen as a rather static process that delivered statutory products, it as been re-modelled into an integrated cycle that co-ordinates activity to meet organisational priorities and to allocate available resources in the best possible way.

18. The latest stage of this journey has involved work to develop a more consistent planning approach in business groups, to integrate budget and business planning more closely and to lead a more strategic planning environment. This involves developing MPS wide strategies, co-ordinating major change programmes and developing pan organisational governance structures.

19. Two key pieces of work are underway to make ‘live’ business planning a driver in delivering exceptional policing for the people of London. The first is the continued integration of business planning with budget planning, strategy development, and change management and performance improvement. The second is creating a simpler, more consistent and more meaningful process across the MPS that cuts out bureaucracy.

20. The MPS Performance Management Framework (PMF) has been developed to link strategic outcomes with operational delivery, to optimise performance within budgetary constraints. Performance analysis is used to evaluate and understand performance and actions taken are then adjusted to achieve the targets set. The aims of our PMF are:

• Gain consensus on strategic priorities for MPS and ensure link with meaningful indicators
• Improve data accuracy and remove duplication of performance reporting
• Ensure performance analysis effectively informs senior level decision-making
• Build an understanding of what good Performance Management is and capability for delivering it throughout the MPS.

21. The MPS is rationalising the approach to performance management to enable more informed decision-making. This will help us understand and improve progress against our four strategic outcomes (safety, confidence, a safe and secure Olympics and Value for Money), and will create transparency on resource allocation and how it is driving performance. We will specifically link resource allocation with outcomes and focus analyses and performance conversations on high-priority areas including productivity.

22. We study the link between resources used in delivery of our performance outcomes to plan how we can best use our resources to maintain operational capability. The indicators we use cascade down from the KPIs through to lower level internal indicators through to relevant supporting indicators in staff’s personal objectives. We hold managers to account at each level of the organisation in delivering performance within their budget constraints.

23. Corporate Decision Making processes have been reviewed to rationalise and improve decision-making within the MPS and between the MPS and MPA. A more effective senior decision-making process is being supported through provision of robust information and analysis to Management Board in a way that offers flexibility in decision-making, recognises operational needs and appreciates the environment within which the service operates.

24. As part of our business planning and performance initiatives we continue to improve the ways in which we analyse and respond to information to improve our operational delivery. Some of these are explored below.

Monitoring our Financial Position

25. We monitor our financial position on a monthly basis, providing detailed forecast information to MPS Management Board and to MPA Finance & Resources Committee. Budgets are monitored both locally and centrally to ensure that overall expenditure is contained within the available budget. Where pressures are identified corrective action is taken; for example, Management Board introduced a Star Chamber through which staff recruitment requests have to be approved to maintain control of expenditure in this area. Where permanent changes to subjective budget allocations are required, approval of Management Board is sought for those exceeding £0.1m and approval of the MPA for changes exceeding £1m.

26. The MPS also produces a quarterly report on overtime monitoring for the MPA which details how the overtime position is being managed and the actions taken to control expenditure in this area.

Quarterly Management Report (QMR)

27. A QMR is being developed to provide a quarterly update to Management Board on the MPS’ operational performance, financial position, and forecasted use of resources and management of risk. It will provide quarterly cumulative data of the financial year to date. The report will look at the current MPS financial position and in relation to the delivery of our business plan, with clear mitigating actions for highlighted significant risks. The QMR will also report on our KPIs, and the potential pressures that we may face. It will report on our budgetary exercise and the challenges that are faced in the medium term.

Operational Policing Measure (OPM)

28. There has been substantial work to understand the activities and roles carried out by all employees within the MPS. This allows the MPS to understand what people do, to make an assessment of costs and whether this is delivering a value for money service when compared to the outcomes achieved. The MPS has more recently focused on improving the accuracy of OPM data and on understanding how it is being used across the MPS. to monitor the effective use of resources and to enable a more effective alignment of resources to demand.

29. OPM data is being used across the MPS to examine the effective use of available resources, including by the MPS Performance Information Bureau (PIB) to produce a weekly report that outlines the current level of single patrolling by BOCU. This information enables individual BOCU Commanders to assess whether they are delivering the optimum level of single patrolling within their local area and therefore whether they are making best use of their available resources.

30. OPM data is being utilised by the Territorial Policing (TP) Development Programme to identify the current roles and locations of all TP staff in order to ensure that there is an accurate organisational baseline for development work within TP in order to identify the scope for efficiencies and reductions.

31. A financial model is being developed for the programme that will summarise the cost/benefit and implementation costs, in order to identify the net benefits for each of the projects within the overall programme.

32. As part of the ongoing review of the deployment of officers to the most appropriate roles OPM data is being used in the development of a productivity based performance management framework for TP. This will provide the ability to more closely monitor and examine workloads on various operational units in order that BOCU and unit level performance is considered in the context of workload in combination with the existing focus on outputs/outcomes.

Policing Objective Analysis (POA)

33. The aim of Policing Objective Analysis is to ascertain the costs and staff numbers of defined policing functions, whilst recognising that different structures and devolvement practices are in place across forces. POA enables the MPS to benchmark functional costs and FTEs, at both a BCU and Force level, particularly support functions.

34. The POA provides robust financial information and gives a clearer understanding of the costs of policing and how resources are used within the service. The expectation is that the POA will aid performance improvement, resource allocation, use of resources and benchmarking. Her Majesty’s Inspectorate of Constabulary (HMIC) will use the data from POA to aid future VfM profile analysis.

35. Nationally, POA is being used more extensively to show cost breakdown:

• For the 2009/10 financial year, the Service Expenditure Analysis within the Statement of Accounts has been broken down by POA headings.
• Various forces have been working together in a Technical Group to finalise and improve POA guidance so that common principles are applied by each force.
• The MPS has joined a group of other forces in the South-East region with the aim of benchmarking costs and comparing processes.

36. Internally, POA has been introduced in various ways:

• It forms part of the Quarterly Management Report (QMR), which enables linkages to be made between incurred expenditure within the organisation and the policing performance
• The MPS’ SAP system is being developed to make the production of POA easier and quicker
• Analysis has also been carried out on the efficiency savings and growth for the next three years, to look at the effect on POA of future plans.

37. Further benchmarking will also be carried out to understand the reasons for the main differences highlighted through POA. This will involve contacting other forces to establish the principles that they have used in their POA allocation process.

HMIC Value For Money (VFM)

38. HMIC VfM profiles are a very high level analysis using nationally published and non-published data (CIPFA 2010/11 Statistics, Home Office crime data 2009/10 and Annual Data Returns). The VFM profile aims to provide comparative information on resourcing levels and performance outputs which are relevant, timely and accessible. It is designed to be used as diagnostic tools to ask the right questions, investigate the reasons for differences and identify opportunities where productivity could be improved.

39. DoR have reviewed the VfM profile and addressed a number of internal and external issues that provide context to the VfM results. The VfM profile demonstrates that MPS expenditure is above average on both pay and non pay budget lines and that the MPS has the highest number of police officers, staff and PCSOs per 1000 of population.

Benchmarking

40. The MPS carries out benchmarking exercises in support of managing its day to day business. Examples include:

• DoI contract renewal - Prices benchmarked against market prices
• Pay and Pensions Contract - Prices benchmarked against market prices
• MSF benchmarking - The MPS compares itself against other similar forces for certain in depth reviews
• Finance Services Benchmarking - Assessment of the cost effectiveness that feeds the Finance and Resources Reviews.

Productivity Measures

41. TP Performance Unit has developed ‘Productivity’ data to assist BOCUs in achieving a better understanding of their ‘productivity’ at BOCU level. This is in addition to any existing performance products including the separately published ‘CAD to CRIS’ conversion rates’ and provides a further context for the results illustrated in the TP Scorecard and other mainstream products.

42. The measures are based upon BOCU officer Actual Workforce Target (AWT) and are adjusted to take account of non-Aid overtime, but cannot take account of how officers are deployed on the BOCU. That is, it does not distinguish between uniform/CID or Response Team/SNT. Other resources including Police Staff, PCSOs and MSC are not included in these calculations.

43. Whilst this data does not provide definitive answers it should enable BOCU Commanders to identify where the performance of their BOCU appears out of kilter with the MPS average and as a result review how local resources are deployed and how their business processes may influence these results.

Partnership Working

44. The MPS Partnership strategy and plans for developing and delivering partnership working are build around four principles:

• Partnership working is properly integrated into the Service’s medium term planning and budget work
• Partnerships can demonstrate the delivery of added value and that their achievements outweigh the cost of developing and maintaining them
• Best practice is shared across the Service and proper guidance and support is available to Business Groups, and
• Partnerships are supported by appropriate governance arrangements and comply with MPA/MPS decision-making and governance processes.

45. The MPS continues to build on its history of working with partners, especially at borough level through its Safer Neighbourhood teams and BOCU structures. However, this work in future will need to reflect new Government area-based frameworks that could impact on resources. Further challenges and opportunities are emerging in developing multi-agency responses to improving service delivery to Londoners, for instance in the criminal justice system. Such initiatives tend to be resource intensive although, over time, may result in efficiencies for some or all the agencies involved.

Embedding risk management

46. Risk is managed through a clear hierarchy of senior Risk Owners and Risk Leads who are supported by a network of Business Group and OCU Risk Coordinators and the Directorate of Resources Strategy and Improvement department. Risk is discussed at all levels of the organisation, including at key corporate boards.

47. A corporate risk register is in place and quarterly each business group is asked to consider the risks and controls for which it has the lead responsibility providing updates to Management/Governance Board as appropriate. To ensure that this document remains fit for purpose a refresh of the corporate risk areas, taking into account current changes in both external and internal circumstances, is well underway and will continue into 2011.

48. Risk management maturity across the MPS is currently being assessed with a target date for completion of assessments across all business groups by the end of March 2011. The purpose of this series of assessments is to support business groups in enhancing the use of strategic risk management through an agreed improvement plan at a business group level. These plans will also inform the corporate risk management action plan to ensure that risk management maturity continues to improve across the MPS throughout 2011.

Service Improvement Plan

49. This more robust planning and performance framework is being developed in tandem with major change programmes and the Service Improvement Programme (SIP), which is driving forward the efficiency agenda and providing cohesive management of major corporate change programmes that will significantly improve our efficiency and effectiveness.

50. The Service Improvement Programme (SIP) has targeted all areas of spending to enable the MPS to deliver its operations and support functions as efficiently as possible. SIP is projected to generate savings of approximately £290m a year by 2013/14. Many more programmes are in the planning stage and will deliver major savings in the coming years.

51. Many key SIP projects have already had and will continue to have a major impact on operational and 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. We are progressing major change programmes in how we recruit officers, utilise our estate, procure goods and services and deliver our property, catering, transport, training, IT, finance and other support services. The SIP is making a significant contribution to bridging the budget gap, with anticipated accumulated budget savings of some £789m (£287m a year) by 2013/14.

52. 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. The projects and programmes have been grouped in line with Value For Money themes:

Maintaining our operational capability:

• TP Development Programme
• CO Improvement Plan
• SCD Re-alignment Programme

Delivering efficient and effective support services at the lowest possible cost

• Developing Resource Management (DRM)
• Developing Training
• ICT Programmes
• Review of CapGemini Contract
• Corporate Print Management Solutions
• Reduce costs of supporting IT
• Catering

Making the most productive use of our operational assets

• Corporate Real Estate (CRE)
• Transport

Developing Resource Management (DRM)

53. The Developing Resource Management programme oversees and supports change projects critical to achieving cashable savings, enhancing governance and minimising the risk of control failures. DRM comprises workstreams including Corporate Real Estate and Delivery of Property Services, Finance and Resources Modernisation 2, Procurement and Source-2-Payment improvements, and SAP resource management systems.

54. Savings and efficiencies are being identified through Procurement. Through Strategic Procurement Plans (SPP’s) we aim to identify and capture cashable savings and efficiencies, challenging the cost effectiveness of the current service, questioning current and future demand requirements and developing more efficient procurement processes and routes to market. We are running over 50 SPPs that are targeted to deliver cashable savings of £10.6m a year by the end of 2013/14. Supply Chain Management is also being enhanced.

55. We are also working to improve procurement by adopting leading edge strategic procurement tools and practices to drive out value. We are embracing benchmarking, total cost of ownership and intrusive supply chain management techniques, including supplier performance management and continuous improvement programmes, to generate further benefits. We are continuing to embed purchase-to-pay, together with intrusive contractual compliance and system controls.

56. DRM has progressed strongly throughout 2010/11, with key successes including:

• Implementation of functionality to manage capital budgets and expenditure within our key resource management system
• Delivery of enhanced invoice management systems, which will improve and streamline our invoice handling processes went live
• Successful feasibility study on the potential to manage (tagging and tracking) assets through our central resource management systems – now being rolled out to Uniform, Criminal Exhibit and Transport Services, and soon to be offered across TP – dramatically improving our exhibit handling and management, and enabling significant saving
• Expert support to Procurement, supporting the improvement of people, processes and technology to achieve savings and increased compliance. Work on Strategic Procurement Plans (SPPs) will lead to significant savings, with 50 new plans developed through expert procurement working with business groups, and tools introduced to enhance internal demand management
• Expert review of our resource management systems, ensuring that our systems support efficient and effective operations.

57. The Catering Programme is addressing the provision of catering services across the MPS. There are 96 locations with catering facilities - some are open 24/7 and some cater for a relatively small number of MPS officers and staff. With Investment in the catering estate we aim to rationalise the number of catering operations and drive an improvement in patronage that will generate savings of around £14.5m a year by 2013/14, including a £2m reduction in the MPS subsidy.

58. The Transport Services project focuses on achieving improvements across vehicle replacement (procurement), current transport support contracts and the allocation and ownership of the vehicle fleet, particularly daily hire, with cumulative savings of £7m a year by 2013/14. We are engaging with vehicle manufacturers to identify improvements in our procurement process, aiming to procure the same for less or enhancements at no extra cost. We are developing an internal hire fleet to reduce the reliance on external suppliers, and realise savings.

To deliver effective services though ICT, THR and estates

Estates Programmes

59. The Delivery of Property Services (DPS) programme comprises three review strands: The first is Property Services (PS) processes and staffing arrangements, to ensure that the service is cost effective, fit for purpose and adds value, and to enhance professionalism to support the Corporate Real Estate (CRE) approach. The second is a renegotiation of Property contracts, to achieve cashable savings through contract revision and restructuring, and through the joint re-tender of contracts in 2014. The third is asset leverage opportunities, including current Private Finance Initiative contracts (PFI), to achieve cashable savings through contract revision and restructuring on leasehold and freehold tenures, reviewing opportunities to refinance contracts, and ensuring best use of space and services at PFI sites. It is anticipated that these projects will generate savings of around £23.7m a year by 2013/14.

60. The Corporate Real Estate (CRE) project is designed to implement corporate standards to reduce the operational running costs of facilities, and maximise the use of accommodation through the provision of flexible workspace, enabling the release of surplus properties. The CRE project is required to deliver £39.2m of savings a year by 2013/14. The CRE principles around office, training and storage will now be used to drive the accelerated vacation of identified properties.

Transforming HR

61. Our Transforming Human Resources (THR) project will introduce more efficient and effective ways to deliver HR advice and support to all 55,000 MPS employees, saving £15.3m a year by 2013/14. THR has re-shaped HR services from a devolved to a centralised shared service model, built around four teams - this went live in the second half of 2010.

62. The PeopleServices team will deliver activities that require expert HR skills and knowledge including recruitment and workforce planning services, career management, employee relations, and HR advisory centre and operational support. The PeopleStrategy function will design and drive the implementation of HR policies, programmes and processes, including strategic recruitment and workforce planning, strategic employee relations, and an HR organisational development function. The Leadership and Learning team will train and develop effective leadership and people skills, including career and talent management, high-quality values-based open leadership programmes, and delivery of police officer training and development.

ICT Programmes

63. Gen 2 Plus is a contract with Capgemini to extend delivery of Information, Communication and Technology (ICT) services to the MPS until 2015. The contract focuses on providing value for money and cost savings to the amount of £23 million a year by 2013/14. The projected savings will help the MPS achieve its back-office spending cuts through improved contract management, increased automation, improved joint processes and rationalisation of products and services.

64. The Reducing Cost of Supporting IT Systems is designed to ensure the MPS is only paying for equipment and services we use, and that this represents best value for money. We are reviewing existing systems to identify which can be decommissioned and current licensing arrangements to improve efficiently. We are analysing third party contracts, negotiating efficiencies and improving commercial arrangements, and rationalising hardware and software inventories and usage of machines. It is anticipated that these projects will generate savings of around £31.8m a year by 2013/14.

65. The Shared IT Platforms and Services project will exploit opportunities to obtain better pricing for licences and commodity asset purchasing and benchmark core IT services. All GLA functional bodies are exploring the potential for shared services, and functional bodies are to share their projected procurement work programmes for the next four years to determine areas for joint working.

66. The Corporate Print Management Solution (CPMS) is a five year commitment to replace multiple printing, photocopying, scanning and faxing contracts with a single agreement, with significant operational, financial and environmental benefits. This will rationalise the number of printing devices and refresh the hardware where appropriate with multifunctional devices, delivering a net saving of some £4.2m a year by 2013/14. Revenue savings will be generated from 2011/12.

Improving information quality

67. The Directorate of Information (DoI) established the Improving Policing Information Programme (IPI) to go beyond Management of Policing Information (MoPI) compliance and introduce a sustainable business led model to improve information sharing services in the MPS to drive continuous improvement. The key deliverable was to ensure the MPS attained MoPI compliance by December 2010 - this was achieved ahead of schedule.

68. IPI worked with B/OCUs to develop key processes and practices to meet and exceed sharing compliance in line with MoPI requirements. Some of the key deliverables include; creating an electronic resource to store Information Sharing Agreements (ISAs); development of an information sharing Standard Operating Procedure (SOP); designed and delivered a fully integrated learning support package; launched an information sharing scorecard to help B/OCUs improve performance and identify any areas of risk.

69. Over the past year the DoI’s Data Quality Team have made significant improvements in the area of data quality, ensuring the MPS hit their Corporate Health Indicator (CHI) target for 2010/11 ahead of schedule. Some of the areas of improvement include; working with BOCUs to develop operational reports such as the TP Offender Management Report. The DoI’s data quality system is able to link nominal data across different MPS systems (e.g. CRIS, Custody) to build up a history of people listed as ‘Named Suspects’ in the PIB Report. Introducing a ‘data mining’ facility allows analysis to be undertaken on larger free-text fields.

70. Data quality is an essential part of operational policing. The DoI’s Data Quality team are constantly striving to enhance the data quality system with the inclusion of checks on additional data fields and further source systems.

Developing Leadership and Workforce Skills

71. We are leading a number of initiatives designed to ensure that the organisation remains “match fit”: These include developing and retaining senior leaders at a time of change through our talent management programme, the introduction of a new streamlined promotion system, further development of career pathways to meet the succession planning gap, and further development of the detective capability strand.

72. Our Developing Training Programme SIP is fundamentally reviewing the way training is delivered in the MPS. This includes work to coordinate a strategic approach to career and talent management; developing high-quality values-based open leadership programmes; developing officers and staff from under-represented groups; and delivering police officer training and development. The key objective is to rationalise current training delivery, realigning the numerous training units that exist to provide training at five Regional Learning Centres (RLCs). It is anticipated that these projects will generate savings of around £26.8m a year by 2013/14.

73. The MPS Leadership Academy designs, develops and delivers high-quality, values based, open leadership programmes alongside bespoke products and services to meet the needs of policing. The primary aim is to help improve operational performance and service delivery through effective leadership capability in all ranks and grades, recognising that everyone in policing has leadership responsibility - whether as a manager of people, a member of a team, interacting with the public or providing a support function.

74. Five levels of leadership responsibility in policing have been defined and are mapped into four workstream areas that are aligned against the operational priorities of policing today. They are; Values Driven Leadership; Attendance Management & Welfare; Fairness & Professional Standards; Performance Development and Supervising Safely. Specific examples would include the Commissioner’s Leadership Programme which develops effective leadership and people skills across the Service.

75. In addition to training, the new recruitment model for Police Officers means that main entry route into the MPS as a Police Constable will be through serving as a Special Constable (MSC) and successfully completing the Police Law and Community Certificate. This will reduce training lead-in time and associated salary cost for new recruits, will utilise hands-on experience gained before appointment as a police constable, and will assist our objective of increasing MSC numbers to deliver safety in our communities. It is anticipated that this will generate savings of around £10.6m a year by 2013/14

Continuing to build a representative workforce

76. We continue to build a police service of which Londoners can be proud. Over the last 12 years we have almost trebled our BME representation among police officers from 3.4% in 1999 to 9.5%. During this period the female proportion has increased from 15% to 23%.

77. Our community engagement recruitment strategy (CE) continues to focus on those communities that do not traditionally view policing as employment of choice. The focus now being on pathways to paid employment via volunteering, the recruitment campaign for the Volunteer Constables has, to date, been very successful with excellent levels of BME and female diversity amongst applicants, circa 37% BME and 34% female. The BME application rates exceed London’s economically active BME population.

78. Positive action activities will be implemented to ensure that this maps across to our police officer appointments through our new model of recruitment and training, with the potential to exceed previous performance on BME recruitment. The CE team, in partnership with the Black Police Association, is working together on a revised programme of community engagement focusing upon the Black communities in London.

79. Over the last 5 years BME recruitment has consistently been 15-20% of our total recruitment and these officers are now looking to progress their own careers. The MPS approach to progression of police officers and police staff from under represented groups is the Promoting Difference Programme. It is a proven menu of development options within the themes of programmes, workshops, mentoring, coaching, qualifications, on-line learning and work experience published within an online prospectus. We take an intelligence led approach based on workforce data and have a thorough evaluation process in place. The key elements of the programme are the Promotion Study Groups and the Positive Action Leadership Programme (PALP). The progression strategy will be extended to include MSC and PCSOs who have the ambition to become police officers. Work will continue to ensure BME candidates are ready when promotion opportunities arise.

Improving the quality of life of our staff and Londoner

80. At the start of the 2010/11 financial year, following agreement at Management Board, 15 new questions were added to the MPS Your Views Count Survey. These represented a shift in the focus of Your Views Count as together these questions make up a recognised model of employee engagement.

81. In the challenging post CSR operating environment that the MPS currently faces and in line with the Commissioner’s clear messages to all staff to do ‘better with less’, it is critical that the MPS understands the experience of our staff and can maximise the engagement of our workforce towards the delivery of safety and confidence for Londoners.

82. With a focus on ensuring sustained and enhanced staff productivity and the highest quality of service delivery for the public, employee engagement is a critical concept for senior MPS management to understand and influence. Ipsos MORI have developed a model of engagement based on data collected within hundreds of organisations and from thousands of employees. This model identifies three main constructs of engagement; Loyalty, Involvement and Alignment. This model will be used in all future reporting to analyse MPS staff engagement levels and highlight key areas for improvement.

Driving the sustainable consumption of resources

83. The MPS has had a successful track record in managing and minimising our resource consumption and negative environmental impacts though our Environment Strategy (2005-10). The MPS has restated its commitment to this agenda through the publication of the MPS Corporate Social Responsibility Strategy for 2010-13. Two priorities of the strategy focus on delivering resource savings and reducing negative impacts:

• Our Environment & Climate Change: Minimise the negative impacts of our activities on the environment and reduce the effects of climate change whilst furthering our positive impacts
• Our Organisation: Delivering an open and efficient service, demonstrating accountability, transparency, value for money and sustainability to the public.

84. An annual Environmental Management Plan is developed containing targets and performance measures which are reported to the Environmental Strategy Steering Group quarterly. Quarter 1 and 2 reporting has highlighted the following progress in 2010/11:

• The MPS Climate Change Action Plan to retrofit MPS buildings with energy efficient measures continues to realise carbon and financial savings. To date all CCAP projects will reduce the MPS Buildings emissions by 11.6% on 2005/06 levels (subject to confirmation at the end of 2010/11), resulting in savings of 15,417 tonnes CO2 and £2.4 million per annum. Additional financial savings will arise due to avoided Carbon Reduction Commitment (CRC) costs, the detail of which is due to be finalised by Parliament shortly
• EMP Targets to enhance the efficiency of the MPS vehicle fleet in line with the Directive on Clean and Energy Efficient Vehicles, including a requirement that all new general purpose vehicles achieve emissions of 120gCO2/Km and increasing the proportion of Euro 4 emission vehicles by 3% (against 5% target for 2010/11)
• The MPS Environmental Awareness Campaign has been developed and 73 Environment Champions have been recruited across the MPS. A benefits realisation study has been commissioned for two pilot sites. Waste and Environmental Training has also been delivered to 310 resources staff
• Financial savings of £144,000 have been delivered from vehicle recycling
• The MPS Recycling Officer was awarded the Responsible Procurement Award for environmental sustainability for work on the furniture contract and MPS SWAP shop which delivers financial savings of £20,000 per annum
• The Waste and Resources Action Plan tool has been implemented with a target to reduce the amount of construction waste to Landfill
• A 40% recycling rate was achieved for waste arising from MPS facilities provided to police the Notting Hill Carnival, contributing to our commitment to implement sustainable events management
• The London Borough of Wandsworth won the Capital Clean Up Gold Award for their Problem-Orientated Partnership work against commercial fly-tippers and licensed premises or firms that permitted persistent cigarette litter
• The Waltham Forest Borough Based Custody Centre (BBCC) has been delivered and includes 20% renewable energy delivered through ground source heat pumps. The Croydon BBCC design has been rated BREEAM [1] ‘Excellent’ and Wandsworth BBCC has been rated as BREEAM ‘Very good’.
  

85. In addition, although difficult to forecast accurate figures, it is likely that programmes detailed within this report to improve efficiency, and productivity could deliver further savings on carbon emissions, waste generation and water consumption. A process is in place to highlight the Environmental Implications of MPS business cases to the MPA.

C. Other organisational & community implications

Equality and Diversity Impact

1. The planning framework for 2010-11 ensured that equalities and diversity implications are properly reflected in budget and business plans. Throughout the planning process Business Groups have been encouraged to consider the impact they have on internal and external communities and therefore develop activities that reflects the Service's commitment to equality and diversity issues.

2. Given the significant challenges in meeting policing needs against a background of increasingly severe financial constraints an increasing number of EIAs are being completed to support major change and improvement programmes being implemented within the Service. The processes in place as part of our planning and performance framework will ensure that EIAs are developed and reviewed over the life cycle of these programmes. Similarly all our policies are subject to EIAs, the completion of which is monitored by the Strategy and Improvement Department.

3. An Equality Impact Assessment on the Policing London Business Plan 2010-13, based on assessment against our corporate objectives and against key equalities and diversity issues, was published in March 2010.

Financial Implications

4. The financial implications within this report will have already been considered within current financial monitoring and planning papers that the MPA will have considered.

Legal Implications

5. The Greater London Authority Act 1999, as amended, sets out the requirements of the GLA to calculate the budget requirements for the Mayor, and the Assembly and its four functional bodies. The budget requirements for each body are calculated by determining the difference between projected expenditure and projected income - including specific Government grants. In order for the GLA to estimate the sums required by the MPA/MPS, the MPA/MPS must provide information to the Mayor and Assembly to facilitate this. The Mayor is required to consult with the MPA/MPS prior to setting the final budget.

6. To help assist budget setting and fulfil meeting the priorities within the Policing Plan, the budget and business development process is a key element to ensure there are sound financial plans within which the MPA/MPS priorities and objectives are adequately funded.

7. Expenditure or activities undertaken by the MPA/MPS as statutory bodies must only budget for activities that fall within its statutory powers. There are also positive duties under S3 Local Government Act 1999 to secure the continuous improvement in the ways functions are exercised having regard to a combination of the economy, efficiency and effectiveness. This report identifies steps under the budget and business plan process that will be taken to ensure best value is achieved in the delivery of policing services.

Consideration of Met Forward

8. The Policing London Business Plan 2010-13 is drafted in full consideration of Met Forward and follows the same themes and outcomes for policing London.
The 2008/10 Met Forward has three outcomes grouped into eight strands. The Value for Money outcome is supported in particular through the Met Support strand, addressing the basic foundations of the MPS in terms of finances, buildings, technology and processes; the Met Standard strand, addressing how we manage these programmes and drive change through performance; and the Met People strand, supporting a motivated, well-trained and professionally led and managed workforce.

Environmental Impact

9. The MPS planning framework ensures that environmental sustainability issues are properly reflected in plans and budgets. Current activity and performance are described in the Quality of Life section of this report (paragraphs 78-80) and in the Sustainable Use of Resources section of this report (paragraphs 81-83).
Risk Implications

10. There are significant risks inherent in delivering policing services within the current legislative and financial environment, but these are being managed as part of the 2010-11 planning process. This will ensure the MPA and GLA are aware of implications to policing from the reduction in future years funding. Current work to embed risk management across the organisation is described in paragraphs 44-46 of this report.

D. Background papers

None

E. Contact details

Report author: Anne McMeel, Director of Resources, MPS

For information contact:

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

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