Strategic review of human resources

Report: 10
Date: 22 March 2001
By: Clerk

Summary

The decision on whether the current MPS strategic review of the human resource (HR) function should be re-designated as a police authority best value review and included in the formal review programme was remitted to this meeting by the full Authority on 8 March 2001. This report seeks to inform that decision by setting out the scope and timetable of the current review, the progress made to date and the way in which the review has followed the 4Cs framework of a best value review. It also provides a view on the match with the best value process and proposes a way forward in relation to the best value review programme.

A. Recommendations

That the Committee agree to the approach set out in this paper in that:

1. managing people is confirmed in the best value review programme for next year (2001/02);
2. the scoping study for the review is started now, involving members and officers of the MPA, taking into account the work of the current review in looking at the structure for delivery and the consequent implementation plan; and
3. the best value review is defined so that it builds on the current work to ensure the review covers all aspects of managing people.

B. Supporting information

Scope of the strategic review of the human resource function

1. The aim of the review is to take an in depth look at the human resource (HR) function of the MPS to modernise it, and transform it, into a more highly valued, professional HR function, which contributes to, and fits with, future business goals to a greater extent. A significant prompt for this review was the restructuring of the MPS to remove the area level at which a range of HR functions had been delivered.

2. The focus of the review is the level at which the various functions and processes should be carried out – the default position being devolution to command unit level. The output is to provide costed options and make recommendations about the organisational structure required to deliver the future HR function of the MPS and identify the efficiency savings that can be made as a result of the proposed changes.

3. The review is being conducted under best value principles, using the 4Cs as a framework.

Management arrangements

4. The Deputy Commissioner chairs a Steering Group to oversee this review. Members of the Metropolitan Police Authority and the MPS Management Board sit on this group.

Timetable for the review

5. A final report is to be delivered in June 2001, to include recommendations for change and provide a costed framework and schedule for implementation of a revised structure for delivering the HR function.

Work to date

6. A summary of the work under each of the 4Cs is shown below:

Challenge

The challenge element is covering what service is provided to and by whom, together with an analysis of the structure of the current Personnel Department and the structure for HR delivery in business units to identify duplication, overlapping function and necessity of delivery.

The intended outcome of the review is provide options for a different approach to service delivery.

There are no legal constraints on the provision of the HR service other than a clear requirement for the MPS to comply with employment legislation.

Compare

The operation of the HR functions in other organisations in both the private and public sector has been reviewed. The organisations contacted include the Royal Navy, ICI, ICL and BT e-people serve. An academic literature search has been conducted. Comparison with the structure in other police forces has also been made.

Benchmarking has been conducted on the ratios of personnel staff to other staff, including the costs attached to those staff. Benchmarking to date has been pursued only in a rudimentary form due to project time-scales. The team is looking at using an external benchmarking company to undertake further work.

Basic information has been developed on fiscal boundaries and costings.

Consult

As the HR function is a support function, the consultative process has concentrated on seeking the views of stakeholders such as MPA and HMIC, and managers, staff and staff associations within the MPS rather than seeking the views of the public.

There is a formal consultative framework built into this project involving:

Stakeholders Group – chaired by Assistant Commissioner PRS and consisting of customers of the HR function (borough and OCU commanders, personnel managers, business group managers.

Consultative Group – chaired by Assistant Commissioner PRS and consisting of representatives from police and civil staff associations, together with other representative groups within the Service (eg, Black Police Association, Lesbian & Gay Police Association, Christian Police Association). Representatives of both the MPA and the IAG are also members of this group

Within the MPS, members of Management Board, senior staff in P Department, borough commanders, personnel managers and business managers have been consulted. A series of focus groups have been run across the organisation, covering constables, sergeants, inspectors and civil staff.

Compete

Initial scoping was carried out on the outsourcing of parts of the HR function. The Steering Group has however decided that it is not appropriate to consider competing any elements of the HR function at this time as there is concern that we would not be able to specify adequately the service required for meeting the HR needs of the MPS.

Work is being carried out to consider alternative structural options for the provision of HR services within the organisation.

Emerging issues

7. The research undertaken within this review has revealed a number of alternative HR models that could deliver a supportive framework for achieving appropriate change in HR management. Our ability to deliver the Mission, Vision and Values will be reliant upon developing a dedicated and committed workforce in an appropriate environment.

8. The consultation that has been done has allowed the review team to identify key themes that are fundamentally important to improving HR management overall in the MPS:

• Corporacy
• Strategic planning
• Policy
• Service delivery/customer focus
• Communication
• Developing and valuing staff

The themes of communication and development/training are viewed as critical elements of HR service delivery to staff.

Corporacy

The systems and structure for delivery of HR varies between business groups (SO, TP, Personnel, DCC).

There are projects, initiatives and policies, to provide sound HR advice and guidance, but they often seem to be operating at variance with each other.

The result is fragmentation, and the corporate energy available to drive the business plan is dissipated.

Strategic planning

Planning and forecasting systems are viewed as cumbersome and diffused, and there is little opportunity to convert management information into forward-looking corporate intelligence.

Personnel management information systems do not link in with other forecasting systems operating within the MPS.

Policy

Customers within the organisation accept the legislative framework in which policy is developed (the need to comply with employment law) but believe that there is scope for a greater customer involvement in the development of policy.

The way in which policy is developed is being looked at elsewhere in the organisation and that work is likely to impact on the structure put in place for the delivery of the HR function.

Service delivery and customer focus

There is a need to encourage HR practitioners to become more flexible and responsive by adopting a strong customer focused approach.

Delivery of the PRISM project may affect the way we deliver the HR function though the impact of PRISM is yet to be assessed fully.

Communication

Communication within, from, and to Personnel Department has been highlighted as areas for improvement.

Developing and valuing staff

The MPS needs to develop the knowledge and skills of the whole workforce to contribute to achieving the Mission, Vision and Values. A number of projects, both within and outside 'P' Department, are progressing this theme.

Outsourcing

Outsourcing the HR function, or parts of it, has been identified as an area that could be worthy of more consideration. There is a growing marketplace of organisations that are able to offer a range of HR services.

As mentioned above, the Steering Group has decided that it is not appropriate to consider outsourcing any of the HR function at this time.

Recommendation by the Best Value sub-group

9. The paper to the Authority meeting on 8 March set out the following basis for the sub-group recommendation that the current MPS strategic review of HR should be re-designated as a police authority best value review. In their view, the change would result in:

• positive reinforcement of the need to secure significant long term improvements in the management of people;
• a clear statement of commitment and ownership of the issue and a recognition of its importance;
• a significant reduction in the overall cost to the authority by avoiding the needs for two reviews (a strategic review followed by a fundamental best value review);
• a significant reduction in organisational and individual uncertainty (since there would be only one fundamental review within the best value five-year cycle);
• a significant reduction in the risk that the current approach would not meet best value review criteria (and assessed as such on inspection by HMIC).

10. The sub group appreciated that a move to formal best value review status could incur additional costs/time (which could be minimised by additional resources) and may require some re-thinking. The point was also made that review ought not to finish before the appointment of the new assistant commissioner of HR to allow them an opportunity to influence and own the outcome.

View of the Commissioner

11. The focus of the current strategic review of human resources is on the structure that will provide for efficient delivery of the HR function. The review was set up with deliberately tight time-scales to ensure that improvements were identified at the earliest stage, since there has been uncertainty since the restructuring of the MPS about how the HR function is to be delivered.

12. A best value review of managing people was not early in the programme at that time but the review was set up broadly using best value principles as good practice.

13. There is no simple and concise published definition of what a best value review is, though all parties agree that the focus should be on the outcome rather than the process. It is suggested that a reasonable test would be that:

"a best value review is a fundamental review covering an agreed scope, owned and overseen by the authority, which can demonstrate that each of the 4Cs has been considered appropriately as the principle means of examining new approaches to service delivery and which leads to a plan that will deliver an improved service".

14. To be able to re-designate the current review as a best value review, it would be necessary therefore to:

• review the scope;
• change the reporting arrangements to come within the best value programme;
• examine what has been done under each of the 4Cs, revise conclusions to date and fill any identified gaps;
• assess the outcome against the HMIC protocol for inspecting best value reviews and fill any identified gaps.

15. The review is due to report in June by which time the new assistant commissioner will have been appointed.

16. To undertake such additional work would delay the outcome. Providing more resources is not likely to minimise the delay as suggested by the sub group as new people would require time to understand the work to date and what was needed from them.

17. The points made by the sub group about the need for ownership by the police authority and the need to avoid duplication to keep costs to a minimum are strongly supported. However, a change to the timetable for the strategic review is not acceptable and an alternative to re-designating the review as a best value review is proposed below:

• confirm managing people in the best value review programme for next year (2001/02) as the need to review fundamentally how we manage people is acknowledged;
• start the scoping study for the review now (the usual first step in best value reviews), involving members and officers of the MPA;
• ensure that the scoping study recognises the work of the current review in looking at the structure for delivery and the consequent implementation plan and identifies any gaps in the work to date;
• define the best value review so that it does not duplicate the current work but builds on it to ensure the review covers all aspects of managing people and can meet the 'test' of a best value review suggested above.

18. It is anticipated that this approach may bring together the views of the MPA and the MPS about the way forward and therefore it is recommended to the Committee.

The best value review programme

19. For the information of the Committee, the proposed programme of reviews for 2001/02 currently includes:

• completing the crime investigation and detection review by November 2001;
• starting a review on bringing offenders to justice (initially proposed to start in September 2001 but likely to be brought forward to Spring in response to the need to deal with emerging issues);
• joint review of equalities and diversity with the GLA family (to start in April 2001);
• records management – part of managing information (subject to discussion at the Finance, Planning and Best Value Committee on 20 March); and
• managing people (subject to the decision of this Committee).

C. Financial implications

Resources will be required to support the best value review of managing people. The additional resources suggested by the sub group to re-designate the current review could be used to undertake the scoping study that is proposed in this report.

D. Background papers

None.

E. Contact details

The author of this report is Diana Marchant, MPS Corporate Development Group.

For information contact:

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

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