Business and financial planning update

Report:11
Date: 12 June 2008
By: the Director of Resources on behalf of the Commissioner and by the Treasurer on behalf of the Chief Executive

Summary

This report provides Members with a detailed planning timetable for the 2009-10 cycle showing critical paths, dependencies, risks and key accountabilities, demonstrates how the 2008-09 ‘Lessons Learned’ review has been incorporated into the 2009-12 business and financial planning cycle, and explains how Public Consultation with Londoners has been considered when deciding the priorities of the MPA and MPS.

A. Recommendation

That:

1. Members note the details of the Planning timetable for the 2009-10 cycle, including MPA scrutiny of the draft business plan;

2. Members agree that, for the purposes of the Business Planning process, all MPA/MPS meetings for the 2009-12 cycle should take the form of joint Finance and PPRC meetings;

3. Members note the ways in which the lessons learned review from the 2008-09 planning cycle are being incorporated into the 2009-12 Business & Financial Planning process; and

4. Members note how Public Consultation with Londoners, through surveys and on boroughs, has been carried out when deciding the priorities of the MPA and MPS

B. Supporting information

1. Following the update submitted on 10 April 2008, Members will be aware of the continued integration of the business and financial planning frameworks and improvements introduced during the 2008-09 cycle.

2. This paper seeks to update members with a detailed planning timetable for the 2009-10 cycle and business group business planning guidelines, outline subsequent improvements to the 2009-12 planning process, and demonstrate the impact of public consultation on MPS/MPA priorities.

3. MPS Management Board (MB) received an update on the 2009-12 Business Planning Process on 05 February 2007, and a presentation on the proposed way forward on 5 April 2007. These set out the overall direction and financial issues. The Board agreed that:

• Based on the findings of the Corporate Strategic Assessment (CSA), the existing six corporate objectives remain fit for purpose for the next planning round
• A new corporate objective for Continuous Improvement will focus on how we lead and manage our Service to ensure the most efficient, effective and economic use of resources
• The existing Budget principles will apply for the next planning round
• Growth should be kept to a minimum and the emphasis should be on redirection of resources rather than additionally
• Benefits realisation related to investment should be clearly articulated
• The impact of proposals on the deployment plan need to be identified through out the planning process
• The Service needs to determine its targets in advance of national announcements, to be available from the autumn budget submission
• The budget and business plan timetable should be brought forward so that a ‘final’ draft is considered at the Authority’s February meeting.

4. The 2008-11 Corporate Plan and Budget suggests a need to identify at least £40m and £64m more savings in 2009/10 and 2010/11 respectively to meet the Mayor’s budget guidance. An exercise is currently underway to provide an early indication of potential changes to the Medium Term Financial Plan (MTFP).

Business Planning lessons learned

5. A review of business and finance planning cycles and of lessons learned from 2004/05 to 2007/08 suggest that process and outcome improvements have been identified, although subsequent cycles have not always evidenced effective implementation of learning. Key themes identified in developing and communicating an effective process going forward are shown in Appendix 1.

2008-11 lessons learned

6. A review of the 2008-09 business and finance planning cycle has highlighted an ongoing need to:

• Further integrate the finance and business planning streams and relate business group planning to the MTFP
• Clearly communicate timelines and product requirements
• Engage business group leads more fully and at an earlier stage
• Develop ongoing monitoring of business group performance against targets
• Pursue tighter alignment of Business Group delivery plans to Corporate Objectives
• Integrate capital and revenue programme planning, and develop Business Group ownership of capital programmes
• Provide for clarity around reporting of revenue pressures and savings
• Enhance visibility and clarity on how identified emerging issues and cross-service dependencies are managed
• Integrate key risks for each business group into the MPS business risk management framework
• Further develop the consultation process and ensure its outputs are better integrated into the planning process and performance oversight
• Provide professional support and training to business groups.

Improvements for the 2009-12 planning process

11. The 2009-12 business and finance planning process aims to embed an improved planning and performance framework within a robust corporate governance structure. The enhanced functionality of the Strategy and Improvement department of Resources Directorate will provide for improved processes and outputs.

12. These recommendations are proposed against a backdrop of change at the GLA and the MPA, and some uncertainties in the priorities of the new administration. As this clarifies, we anticipate incorporating any:

• Changes to the finance and planning process
• Adjustments to the timetable and key milestone dates
• Reconciliation of the gap in funding

Certain assumptions have been made in the current planning process in order to progress the 2009-10 cycle.

13. The main areas of improvement are:

• A clear timeline (Appendix 2) and project plan including dependencies for the planning cycle
• Updated business group business planning guidelines
• An enhanced Business group delivery plan template, including reporting of business risks and corporate social responsibility
• Enhanced flow and quality of financial information to business managers, ensuring a clearer grasp of the financial landscape
• Continued alignment of business finance, planning and performance processes
• Focus on business group deliverables and accountability for business performance, evidenced through measures and targets
• Better co-ordinated use of current consultation and development of the consultation process to inform the policing plan process
• Planned and regular meeting schedule with MPA and MPS staff and members in the process
• Alignment of resource deployment to business group budgets, providing the Service with a robust basis to manage resources.

14. The timetable allows MPA members at least two formal opportunities to scrutinise the interim budget submission to the Mayor, the Business Plan submission to the Mayor, and the Policing London Business Plan, as well as at joint Finance/PPRC and Full Authority meetings (Appendix 2).

15. We are proposing that, for the purposes of the Business Planning process, all MPA/MPS meetings for the 2009-12 cycle should take the form of joint Finance and PPRC meetings (four are currently scheduled).

16. The MPS Corporate Strategic Assessment (CSA) will be developed to provide a full assessment of the corporate environment and stakeholder requirements, strategic capabilities, criminological intelligence and trends, business performance and key organisational risks. The CSA will be a key tool to develop corporate strategic capabilities and feed the planning cycle.

15. Regular iterative reviews will include examining operational performance against financial investment where appropriate. It is proposed that the MTFP review process be aligned with the performance cycle and that Performance and Investment boards are re-engineered to deliver integrated business management and drive organisational performance.

16. The MPS Efficiency Plan for 2008/09 – 2010/11, a process that aims to capture improvements in MPS productivity and efficiency and present information in a quantified financial format, will be integrated into the MPA/MPS Business Plan.

17. The developing Service Improvement Plan will be an integral element of the Service’s business and budgeting process.

Public Consultation

18. The MPA/MPS continue to meet statutory requirements to consult with the people of London on policing priorities. Currently the MPA/MPS asks the community of London to identify their top three areas of concern through a questionnaire made available in electronic and hard copy.

19. For the first time this year, Safer Neighbourhood ward panel consultation was added to the process. Each panel was asked to use discussion packs specifically designed to encourage debate, and help the panels to establish what they felt should be London wide priorities for the MPS.

20. Every effort is being made to enhance demographic participation in the process, whilst also making sure it is customer friendly and fit for purpose.

Consultation outcomes

21. MPA analysis of the 2007-08 public consultation and feedback cycle is shown in Appendix 3

22. In previous years, consultation has been based around ten issues, which had emerged from public consultation as priority issues since 2003. The top ten are: Accessibility of the police - Alcohol and alcohol related crime - Anti-social behaviour and low-level crime - Drugs and drug-related crime - Hate crime - Street crime - Terrorism - Traffic and road safety - Violent and gun crime - Youth crime and other youth issues

Consultation Process 2001-02 to 2007-08

23. The current consultation process meets statutory obligations although the MPA and MPS are working to develop the process and make better use of consultation feedback

24. This process has been amended for the 2009/10 cycle:

• Strategic Planning are currently liaising with the MPA Planning and Performance team lead to enhance this process and develop outputs
• The current Draft Policing Plan confirms that public consultation will feed into the 2009/10 priorities
• The results from the improved consultation process will inform the CSA, Borough Commanders and Safer Neighbourhood Teams
• Additional consultation outcomes from sources within the MPA and MPS, and from other organisations, have been utilised

Strategic planning is also working with the Diversity strands to sample historically hard to reach groups.

Consultation Process 2009-10 cycle

25. A project is ongoing with the Workforce Foundation to identify and map all areas of external consultation undertaken by the MPS, with a view to developing a more holistic and productive output to inform MPA/MPS priorities for the 2009-10 cycle and beyond

26. A proposal will be developed to make use of multiple consultation streams, including the Public Attitude Survey (PAS) and Safer Neighbourhood Ward Panels, to improve sample size and data validity. Other surveys, such as the Schools survey, and other information streams, particularly from LSPs in defining local priorities through LAA indicators, are being assessed

27. Discussions are in train with the MPA to make better use of information gathered from consultation and information streams, notably in public focus groups.

28. The research, analysis and strategy development stream of the Strategy and Improvement department will provide enhanced competencies to gather and model this information, and feed outputs into policing priorities.

C. Race and equality impact

Equalities are seen as one of the three key strands of sustainable development activity that support the drive for continuous improvement throughout the MPS. The business planning process facilitates the identification of key areas of MPS activity in relation to equalities issues and supports the submission of returns to the GLA as part of their equalities review process for the GLA group.

D. Financial implications

There are financial implications from this report that will affect budgetary decisions for the 2009-10 cycle and subsequent years.

E. Legal implications

The Local Government and Public Involvement in Health Act 2007 includes a duty to consult.

F. Background papers

• Business and Financial Planning Update,  PPRC, Report 6, 10 April 2008

F. Contact details

Report author(s): Paul Clarke, Strategic Planning, S&ID, MPS

For more information contact:

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

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