Efficiency and effectiveness review programme

Report: 08
Date: 24 October 2002
By: Treasurer

Summary

This report presents the savings and benefits from Tranche 1 of the Efficiency and Effectiveness reviews. It also comments upon the recent Steering Group meeting.

A. Recommendation

That members note the savings and benefits from tranche 1 of the review programme.

B. Supporting information

Steering Group

1. Since the last meeting of this Committee there has been a meeting of the Efficiency and Effectiveness Steering Group on 10 October 2002. The Steering Group comprises the Mayor, Commissioner and MPA Chair. There were three items on the agenda, tranche 1 programme savings, the possibility of recovery of costs incurred during the policing of football matches and proposals for new review areas for tranche 3.

2. The Savings and Benefits schedule is attached at Appendix 1. This has been agreed between representatives from MPA/MPS/GLA and Accenture. This shows £21.2 million financial benefits delivered from the review in 2002/03, £3.5 million additional benefits that can be delivered in 2003/04 and £22 million benefits that can be delivered from 2004/05 onwards. The Steering Group agreed the savings figures.

3. The Mayor indicated his support for the principle of recovering costs from charging for policing outside the ground at football matches. A report will be brought to the Authority to agree the policy and consider means of implementation.

4. The Steering Group considered the possible review areas for tranche 3 and indicated preferences. A draft programme will be considered by the Project Board at its next meeting before reporting to the next meeting of this Committee. Subject to members’ views detailed terms of reference which will form the basis of the Invitation to Tender will be brought to the December meeting of the Committee for approval.

IT final report MPS management response

5. The last committee received a summary report from Accenture on IT. It was noted that the management response from the MPS would be received at this meeting and it is attached at Appendix 2. The Project Board is to consider this at its meeting on 22 October.

C. Equality and diversity implications

There are no direct equality or diversity implications.

D. Financial implications

Budget provision of £1 million has been made in the 2003-04 budget to fund Tranche 3 of the efficiency and effectiveness programme. If the programme is not continued into future years there will be a budget reduction of this amount in 2004/05 and future years.

E. Background papers

None.

F. Contact details

Report author: Ken Hunt, Deputy Treasurer, MPA.

For more information contact:

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

Appendix 1: Item 3.1 MPA Efficiency and effectiveness review programme

Steering Group update October 2002

Background

In February 2001 the Mayor agreed with the MPA and MPS to undertake a 3 year Efficiency and Effectiveness Review programme at an annual cost of £1m a year for each of the three years. In August 2001 Accenture won the tender for year one (also known as tranche 1) of this programme and this paper sets out a summary of results so far.

The financial benefits delivered

The table below sets out the financial benefits delivered by Tranche 1 of the E&E review programme in the Metropolitan Police Service.

It is important to note that these benefits are a mix of budget reductions, income increases, reductions in overspends and one off benefits to the MPS. Therefore, these benefits have had differing affects on the MPS budget.

All benefits realised by this process so far have either been used to meet the cost of increasing pressures and commitments in the MPA’s 2002/3 budget or re-invested into core policing functions of the MPS.

The table: (13KB) is available as a PDF document.

More detailed figures relating to these benefits can be seen in annex A.

All budget reductions, income generation opportunities and reductions in overspend levels shown in the 2002/3 column were built into the MPA’s 2002/3 budget this delivered a benefit of £20,250 and was used to provide additional resources for operational policing and to cover the funding gap. The one off savings included in the 2002/3 column (£990k) were used to improve the MPA’s balances.

The savings identified in the 2003/4 column will be incorporated within the MPA’s budget submission for 2003/4.

A number of the reviews cannot be progressed without policy decisions being taken by the MPA/MPS. In particular, a decision needs to be taking on the recharging policy for football clubs which Accenture have identified as delivering a possible £5m in additional income. A separate paper has been prepared for this.

Efficiency benefits

The review programme has also generated a number of recommendations relating to efficiency benefits, these are also being implemented and will be reported on separately.

Tranches 2 and 3

The Tranche 2 reviews have not been included in this paper however, it should be noted that the Tranche 2 review are more focused on efficiency savings rather than cashable benefits. The E&E Project Board is currently considering options for Tranche 3 reviews and will be tendering for this work in November/December of this year.

Annex A

See Supporting material.

Appendix 2: MPS response to Accenture efficiency and effectiveness review programme – Tranche 2: IT

No. (as in main report)

1

Short-term recommendations

MPS to ensure IT investment reflects business priorities by:

• defining and agreeing the benefits sought from investment (outcomes and outputs) as well as enablers
• drafting and agreeing (at IMSG or Management Board, for ratification by FPBV) a set of priorities and criteria to aid the process of decision-making
• testing those benefits and priorities with staff across representative OCUs and ranks prior to final adoption

Adopting a policy that requires all projects to have a business case developed using a standard model, robust approach for development, review and approval, and a set of corporately agreed measures. 

MPS response

In general this is agreed and, in effect, much of the work has been started and strategic steps have been put in place.

Strategically the DoI took the initiative, in support of the Business, earlier in 2002 to develop a (1st stage) approach to Benefits Management. This activity is supported by the development of a more comprehensive (2nd stage) approach to Benefits Management within the MPS, including updated Benefits Policy and Processes.

This will clarify and communicate:

• the importance of Benefits Management being driven by the Business, and from a Business perspective
• a common view of what business benefits are and how they can be achieved
• key roles & responsibilities in Business & DoI for benefit identification and delivery.

The DoI-led Benefits Management activity is preparing both top-down (Business demand) and bottom-up (IS/IT enablers) Benefits Maps, against the current identified Benefit themes. This will allow the identification of any deltas or discrepancies in the current measures or identified programmes of work.

These steps will support the needs of MPS to establish, manage and deliver complete business / benefit driven programmes.

Tactically the steps described below have been put in place: Project Board chairs are generally senior business representatives and most large programmes have user assurance groups. Additionally, reviews done by ABRSG (Audit & Benefit Realisation Sub-Group), a sub-group of IMSG, will monitor, on a selective basis, progress on behalf of that body. Finally, post-implementation reviews should determine whether the aims of the project have been met in terms of business benefits and meeting business priorities.

No. (as in main report)

2

Short-term recommendations

IMSG to scrutinise, and if necessary realign, the work programme, taking into account:

• existence and robustness of the business case judged against agreed benefits and priorities
• the migration plan (projects not consistent with it should be stopped)
• wider set of criteria underpinning the migration strategy, agreed in advance with the MPA, including a timescale from inception to the start of benefits realisation of more than 12 months
• the resulting balance of investment between tactical and strategic change

MPS response

This is accepted. Work is now under way to widen the criteria within business cases and this will be reflected in the benefits management process.

The benefits management process will also be the vehicle for underpinning the Business Change programme. The migration, strategy and timescales around project length and the inception of benefits realisation are also supported.

The balance between tactical and strategic change will be established jointly by IMSG, which oversees the programme of work, and the individual workstreams. The programmes will need to take a balanced view of migration in relation to the business imperatives at that point in time.

Until MPS Business has a clear Benefits Map which has been rationalised between the top-down (Business demand) and bottom-up (IS/IT enablers) views, it can not scrutinise projects against agreed strategic objectives as discussed in 1). (until this is done, the only interim action that can be taken is to ‘tactically’ optimise the current project schedule).

Once these Maps are complete, it is possible that some Benefits themes may be brought together, some dropped and some clarified.

With regards to the projects, some of these may be re-prioritised, and potentially dropped, against the new themes. These clarified benefits Maps will then be over-laid on to the change programmes, the SRO assignments will be reviewed and benefits realisation timetables agreed. This work has already begun with the development identified in item 1) above.

No. (as in main report)

3

Short-term recommendations

MPS to manage the scrutiny process but ensure independent review ahead of final decisions by the MPS Management Board

MPS response

A scrutiny process has been put in place for small projects, i.e. the project mandate process. For larger projects we will put in place independent review and we have done this with the first of the projects using PITO.

The December IMSG should be presented with:

• a preliminary top-down (business demand) benefits map
• bottom-up (IS/IT enablers) benefits map of key current projects

No. (as in main report)

5

Short-term recommendations

MPS should develop a benefit driven migration plan through to 2006 by:

• identifying key milestones for benefits delivery;
• reflecting the principle that benefits realisation should begin with 12 months of a project’s start
• aligning the IT work programme to ensure it supports its delivery

MPS response

Agreed in principle. This will necessitate some changes to current programme methodology. Developing a benefit driven migration plan through to 2006 will be difficult, however, with items such as Valiant and police reform making this a dynamic area to work in.

It should be noted however that work is already progressing, with the development of the Benefits Maps, the reviews of the current projects and the process to identify any deltas in the quality, complexity and clarity of the benefits themes (From the Business strategy).

Once this is completed a Road-map and Milestones will be created for the migration to a Business driven Benefits Management process.

No. (as in main report)

6

Short-term recommendations

MPS should increase business understanding of Information Strategy by:

• developing a marketing strategy that effectively communicates how IT work programme will improve support to the business
• targeting OCU commanders, business and project sponsors, user assurance and DoI project managers in the first instance

This is agreed. A marketing and communication strategy has already been developed and agreed in the DoI and is in the process of being implemented.

The Benefits Management work, (2nd stage) will include the preparation of materials to be communicated as part of the marketing strategy.

No. (as in main report)

7

Short-term recommendations

MPS to ensure full implementation of METRUP by:

• agreeing revised implementation date with IMSG, supported by clear statement of actions required from sponsors, project managers and DoI
• rebranding of ‘sponsor’ role to reinforce accountability (e.g. SAO) ensuring each workstream has a single business sponsor
• building on the OGC Gateway model by incorporating independent scrutiny into the checkpoint process

MPS response

Agreed. Implementation date has been set and all the recommendations will be addressed as the process is implemented. This will take time because significant training of project managers needs to be undertaken.

Workstream sponsors will be educated as to their roles and responsibilities, i.e. that of SAO, and we have already approached the Home Office regarding the way they train their business managers.

A DoI drafted definition of the Senior Responsible Owner (SRO) role is currently being reviewed for presentation to the Business.

We are reviewing the OGC Gateway model as it stands against MetRUP and we will use best of breed for our larger projects and programmes. It should be noted, however, that to meet the 12 month implementation recommendation given earlier could be prohibitive from a cost benefit aspect for the smaller work packages.

No. (as in main report)

8

Short-term recommendations

MPS to equip, enable and incentivise business and project sponsors, as well as DoI project managers, to implement new arrangements by:

• holding awareness sessions and coaching as part of Project Board meetings
• encouraging compliance by reflecting new accountabilities in personal objectives and reporting to IMSG on Project Board that have not met as required

MPS Response

This is agreed and links in to our response to item 7, vis-à-vis the re-branding of the SRO role. Additionally IMSG, through ABRSG, will be able to monitor project activity and the project reporting regime will be amended to reflect the effectiveness of project boards.

We cannot comment on whether SRO’s will have their project accountabilities included in their personal objectives, although this does seem to be a good idea.

No. (as in main report)

17

Short-term recommendations

Take action to improve transparency and control of budgets and assets by:

• separating out charges on IT Consumables (GL code 6014)
• providing clear guidance on third party charges and costs
• working with OCUs to provide MIS e.g. desktop utilisation and availability (supplier performance)
• improving the accuracy of the asset register (IoL) for requiring an initial OCU commander sign-off (thereafter FRM) and ensuring consistent business processes for undertaking checks

MPS response

By 31 December 2002, the DoI will work with SchlumbergerSema to separate and report on the bundled charges in the IT Consumables budget (GL6014), and will consider how best to separate these costs and budgets for implementation by 1 April 2003.

For the extension of devolved budgets with effect from 1 April 2002, an explanatory document was produced which explained what each of the budgets comprised. This will be amended to include what is not included in local budgets and republished by 30 November 2002 so that OCU FRMs have clear guidance on liability for third party charges and costs.

The DoI will complete by 31 December 2002 the roll-out of XpertConnect to OCUs which includes a facility to monitor outstanding calls logged with the SchlumbergerSema help desk. This will enable FRMs to see the complete picture of outstanding faults, including desktops awaiting repair, across the whole OCU. The provision of management information on machine utilisation will require further investigation to determine what can be provided.

Inventory on Line is planned for further development, including extending its use for other non-IT assets (e.g. mobile phones and pagers). The opportunity will be taken to improve the business processes around changes to entries and periodic checks on the accuracy of data. The recommendation to involve the OCU Commander in signing-off the data is noted.

No.

4

Medium-term recommendations

The MPA and GLA give further consideration to how they might facilitate investments in IT that increase the amount of police time spent on operational duties – for example, by:

• announcing year-end recruitment targets that take into account the consequences of fewer officers but more front-line resource; and
• by combining targets for uniformed numbers with targets for time spent on operational policing

MPS response

The Information Strategy is currently being implemented by DoI. Key aims are: to ensure that information is universally available at the point of need; it is accurate, timely and relevant; it is integrated across the organisation and that it is available to partners.

Some of the major benefits to be derived from the strategy are:

• secure access through a single point of entry to an MPS wide infrastructure.
• accessibility from any workstation to office tools
• network capacity on demand
• a reduction in duplicate data entry (single keying)
• e-business and citizen facing services
• reusable data items
• compatibility with national standards and solutions
• a shared pool of information (data warehouse)

This will greatly assist operational officers by reducing bureaucracy and maximising the time that can be spent on operational duties.

No.

9

Medium-term recommendations

Develop and implement an approach for strengthening project management capabilities, including mechanisms for:

• undertaking a skills assessment of existing business and project sponsors
• ensuring the scale and complexity of projects are factors in allocating personnel

Workstream sponsors are selected by the lead business area, in consultation with the Director of Information. They are chosen for their knowledge of the business and should be able to rely on the programme and project managers to help them in the mechanical work. We will, of course, be carrying out the education process around the responsibilities and roles of SRO’s, which should suffice. We do not believe we need to do a skills assessment at senior level. The Deputy Commissioner as Chair of the IMSG could review this however.

In respect of project personnel, the DoI does have a staff capability matrix for assessing which are the best staff to put on a project at a given point in time. Because of outsourcing, DoI does not have a large pool of project managers and has to rely on its outsourcing partners; availability and current workload will obviously play a part in who we can allocate at any given time.

No.

10

Medium-term recommendations

MPS to integrate and improve benefits realisation at OCU level by:

• adopting an MPS-wide framework that provides a flexible, standard approach to benefits realisation and ensures good practice across MPS projects (e.g. local change champions)
• ensuring this framework covers the key elements of business change, including process & organisation design, training, communication and evaluation
• building in assessments to determine the readiness of the business for change

MPS response

It is accepted that there needs to be improvement in benefits realisation at OCU level and a key role of the SRO or Business Workstream Sponsor is to ensure that this happens. It is incumbent upon MPS to ensure that the SRO fully understands this responsibility.

MPS, through the DoI initiative, is approaching the whole area of Benefits Management as a programme of work. This will allow the MPS to define the right priorities of Business Benefits for the change programmes and which will allow the IT enablers to be aligned to the change programmes.

This will enable the MPS to demonstrate in the medium and long term that it is delivering against strategic organisational goals.

This process will be MPS wide, with support from Senior Management and delivery controlled by Senior Responsible Owners. This will be supported by communications programmes, education and guidance packages to assist with implementation.

The key focus of this work is for the business change to be business driven with real improvements which are measured and reported.

No.

11

Medium-term recommendations

MPS strengthen and clarify accountabilities for delivering benefits at OCU level by:

• agreeing accountability for delivering benefits with OCU commanders
• ensuring implementation preparation includes planning with OCU commanders for benefits realisation

MPS response

Agreed in principle. The Deputy Commissioner will need to reinforce the message.

As we have identified in 10) above, the appointment, education, training and support of SRO’s is critical to the delivery of Benefits Management within MPS.

The SRO role will include planning and the inclusion of all stakeholders in the development of change programmes and the benefits that these are expected to achieve.

No.

12

Medium-term recommendations

MPS ensure effective measurement of benefits realisation throughout the implementation period by:

• managing progress against benefits targets and milestones at agreed points by project board

MPS response

The benefits management process (1st stage)

• Establishes the requirement for benefits to be identified, clarified and realised
• The SRO and Business Management will be responsible for delivering the benefits
• ABRSG will monitor and review on an exception basis, and report as appropriate

The (2nd stage) development of the Benefits Maps and rationalisation of the top-down (Business demand) and bottom-up (IS/IT enablers) Strategic Objectives, will lead to better management understanding of the process and ownership.

The is likely to be a multi-stage learning process which will build on experiences as the Benefits themes are verified, the current projects are justified and the long term realisation plans are developed.

No.

14

Medium-term recommendations

Adopt an allocation method for desktops and printers for OCUs based on a standard entitlement on total OCU staffing, permitting OCUs who consider that their operational needs justify more than their standard entitlement to submit a business (case?)

MPS response

Essentially this impacts the whole policy around devolved budgets and, therefore, needs to be debated at Management Board level. DoI is in a position to provide information to facilitate the discussion. It may be that DoI could lead the discussion, but it is not in a position to implement it.

The caveat has to be that it would be difficult to provide a standard entitlement based on staffing alone. Other factors could influence the allocations of desktops and printers to OCUS, e.g. physical location of the sites making up the OCU, the kind of work being undertaken by the various departments and even the geographical position because of differing crime profiles.

No.

16

Medium-term recommendations

Exploit any reduction in desktop and printers allocation by realising knock-on efficiency savings in local purchasing budgets (6014)

MPS response

Exploiting any reduction in desktops would have to follow the agreement and implementation of any policy emerging from no. 14. This must be left in abeyance for the time being.

No.

13

Long-term recommendations

MPS undertakes further work on approaches to ensure the successful delivery of benefits from IT projects and programmes as part of a broader initiative to develop the organisation’s capability for implementing sustainable change

MPS response

As we have already mentioned above, specifically in 12), there are a number of steps already in progress to ensure the business ownership development of Benefits realisation plans, and strategies.

These will evolve over the next few months, along with the delivery of the Communications package associated with Benefits Management.

The MPS will see this as key to the development of good control over programmes of change, which may or may not have elements of IT enablers.

The work on Benefits Management re: IS/IT developments, can contribute to the broader initiatives of change and Benefits Management.

No.

15

Long-term recommendations

MPS to integrate the IT and Estates Strategies by:

• developing IT/business centres to facilitate formal hot-desking
• considering trialing of ‘internet canteen’ arrangement
• exploiting all new build opportunities

MPS response

DoI and PSD will work to integrate the appropriate parts of their strategies around exploiting structured wiring, hot desking etc. and will present their findings for Management Board consideration.

Send an e-mail linking to this page

Feedback