Efficiency and effectiveness review programme

Report: 8
Date: 22 January 2001
By: Treasurer & Commissioner

Summary

The report sets out the agreed arrangements for a programme of efficiency and effectiveness reviews and seeks approval to an initial mapping and scoping project.

A. Supporting information

Introduction

1. In his letter of 1 December 2000 on the preparation of the draft component budget the Mayor asked the MPA to ensure that its budget provided resources for independent consultants to commence a three year programme of reviews covering the efficiency and effectiveness of resource allocation to fund future service developments. The MPA accordingly approved a provision of £1 million in the draft budget to meet the costs of such a programme in 2001/02.

Review programme

2. Discussions have taken place between the Mayor, the Chairman of the Authority and the Commissioner, as well as between appropriate officers. It is agreed that the primary purpose of a programme will be the release of additional resources for front line policing. This has to be seen against the background of potential future funding constraints in terms both of government grant and precept.

3. The programme will be overseen by a Steering Group comprising the Mayor, MPA Chairman and the Commissioner. The joint officer project board will include the MPA Treasurer and both the Deputy Commissioner and Director of Resources from the MPS, as well as the GLA's Director of Finance and Performance. The work will be jointly commissioned but procured and paid for by the MPA. The use of external consultants will ensure independence but also reflects the limited resources directly available to the MPA for this purpose.

4. There will be regular reports back to the Authority as the programme is developed and implemented.

Initial project

5. The first task is to establish the review programme. To assist in this an initial project will map existing studies and reviews to identify current and future planned coverage. This will help to identify areas where the review programme can achieve greatest impact in the programme period.

6. Draft terms of reference for this initial project have been drawn up and are attached at Appendix 1. These will need to be finally approved at the first meeting of the Steering Group. It is intended that this project should be carried out in a short timescale so that the programme proper can commence as early as possible in 2001/02. Much of the information should be readily available since similar scoping or overview work has been conducted recently for the MPS. And therefore the cost of this initial exercise should be limited and certainly less than £50,000.

B. Recommendations

1. To note the arrangements so far for a programme of efficiency and effectiveness reviews
2. To approve the proposed mapping and scoping project to inform the establishment of the review programme.

C. Financial implications

The cost of the initial project will be met from the 2001/02 budget provision, subject to final budget approval.

D. Review arrangements

The project and subsequent review programme will be managed by the Steering Group and project board arrangement set out in paragraph 3 of the report, with regular reports on progress to the Authority.

E. Background papers

The following is a statutory list of background papers (under the Local Government Act 1972 S.100 D) which disclose facts or matters on which the report is based and which have been relied on to a material extent in preparing this report. They are available on request to either the contact officer listed above or to the Clerk to the Police Authority at the address indicated on the agenda.

• Letter to MPA from the Mayor dated 1 December 2000

F. Contact details

The author of this report is Peter Martin.

For information contact:

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

Appendix 1: Draft terms of reference

Mapping of existing reviews and resource based investigations in the Metropolitan Police Service

1. Introduction

1.1 The Mayor, Chair of the Metropolitan Police Authority (MPA) and the Commissioner for Police are committed to increasing resources for front line policing in London. As part of this process they are committed to undertaking a three year rolling programme of reviews into resource allocation in different parts of the Metropolitan Police Service (MPS).

1.2 It is intended that these reviews will identify areas for improved effectiveness and efficiency savings which can be converted into more resources for front line policing. These reviews will form part of the MPA’s overall efficiency plan and fit within the Audit Commission and Her Majesty Inspectorate of Constabulary (HMIC) regimes.

1.3 We are looking for consultants to undertake a short mapping exercise of the existing studies and reviews currently being undertaken within the Metropoliltan Police Service and those planned over the next three years. From this work an outline programme of efficiency reviews for the next three years should be developed. This programme should complement and support those existing reviews identified as part of the mapping exercise.

2. Background

2.1 The MPS is a large and complex organisation with a projected annual budget of £1,830 million in 2001/02 and over 37,000 staff. The Commissioner, Director of Resources and MPS Management Board are managing an organisation that is adapting to working within a local government finance and accountability regime. The MPS and the newly established MPA are working within a complex inspection regime including the Audit Commission and HMIC. The MPA came into being on 3 July 2000 under the Greater London Authority Act and is one of the GLA functional bodies but with specific statutory responsibility for securing an efficient and effective police service for London. As well as the MPA itself, the Mayor, who is responsible for setting the total budget, and Home Secretary have a direct interest in the policing of the Capital.

2.2 The Mayor is proposing a significant budget increase for the MPA for the 2001/2 financial year. This is to be targeted at front line policing. The Commissioner, Chair of the MPA and Mayor are determined to see a significant increase in police numbers over the next three years. All parties are determined to see improvements in efficiency and effectiveness within the MPS to ensure more resources can be dedicated to front line policing.

3. Purpose of the exercise

3.1 dentifying and implementing efficiency savings and improvements in operational effectiveness will not be a simple process. The MPS is a huge organisation operating in a complex and sensitive environment. A number of reviews ranging from full scale Best Value reviews through existing efficiency plans to local studies have already been undertaken or are underway. The MPA, MPS and GLA recognise the need to establish a long term coordinated programme of change which will deliver tangible and lasting improvements but are also aware of existing financial pressures and the need to find short and medium term budget re-direction.

3.2 The mapping exercise is the first step in establishing a rolling programme of reviews across the MPS. This should reflect the different inspection regimes and integrate the various review programmes into a coherent efficiency and improvement programme.

3.3 The scope for this assignment is to:

• Set out the requirements of the different external and internal inspection, efficiency and effectiveness regimes relating to police resources;
• Identify existing and planned review projects underway within the MPS;
• Undertake a high level assessment of the likely resources impact of each of the main review programmes currently underway;
• Prioritise areas of activity within the MPS which could be reviewed in terms of their potential to release resources for front line policing and quantify realistically the probable scale of resources released;
• Advise on the management process for the overall programme including cordination with external inspections;
• Produce a suggested three year programme of reviews based on the priority areas identifed.

The consultancy would map all those reviews that satisfy the criteria set out below:

• Involving more than one Borough area
• Involving more than one functional area
• Reviews of services with a combined value greater than £250,000
• Reviews considered critical to the success of the organisation as defined by the Project Team, and consistent with the MPS’s mission, vision and values, and the MPA’s policing priorities.

4. Outcomes of study

4.1 The outcome of the study will be a written a report recommendating a three year rolling programme of effectiveness and efficiency reviews complementing the existing value for money for studies within the MPS. This should identify the areas for review; main themes for each of the reviews and the scale of resources involved; and potential benefits achievable.

4.2 The report will also include a map of current and planned reviews within the Metropolitan Police Service.

4.3 Consultants will be asked to present these findings to the board and other stakeholders at a meeting arranged to coincide with the end of the project.

5. Timescale

The project should commence by 15 February 2001. Consultants should have their draft final report ready for review by the end of March 2001.

6. Accountability

6.1 The consultants will be required to work to a steering group comprising of:

• The Mayor of London
• Chair of the MPA
• The Metropolitan Police Commissioner

6.2 There will also be a project board consisting of the following officers:

• Director of Finance and Performance (GLA)
• Treasurer (MPA)
• Director of Resources (MPS)
• Deputy Commissioner (MPS)

6.3 On a day to day basis the consultants will work with a project team of officers from the three organisations concerned.

6.4 There will be a requirement for regular meetings with these groups to ensure effective project monitoring.

7. Budget

7.1 tbd

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