Overview and Scrutiny Committee Cabinet Council - Lambeth Council

Overview and Scrutiny Committee Cabinet Council

b

7 November 2012 12 November 2012 22 November 2012

Cooperative Council: Next Steps in Organisational Transformation All Wards

Cabinet Portfolio:

Report authorised by:

Leader of the Council: Councillor Steve Reed

Chief Executive: Derrick Anderson

Executive summary This report details the changes to the organisation which are needed to deliver the Administration’s priorities and to support the further development of Lambeth Cooperative Council. It describes an approach which will be adopted by all who work in the Council which is designed to better respond to the needs and aspirations of Lambeth’s citizens, businesses and councillors. The report also outlines the changes needed to the staff structures in the Council which will ensure that the citizen and councillors are placed at the centre of the way the organisation takes decisions and designs future activity when undertaking co-operative commissioning. The report also explains the different phases of changes which will have a direct impact on citizens; changes the role of councillor and officers and delivers a range of new activities. The approach which is proposed marks an important change in the way Lambeth Council works. Staff will be consulted about the detail of the staff changes and the Chief Executive will implement any necessary restructuring under powers already delegated by Council. There has been extensive engagement and consultation with members and officers in developing these proposals. Specific comments from councillors are detailed at section 10 of the report. Summary of financial implications The changes which are proposed in this report are designed to deliver a different way of working with citizens whilst at the same time acknowledging the very challenging economic environment in which the Council must operate. The proposals are designed to be consistent with the Council’s medium term financial strategy. The aim is to develop new approaches which will be more focused on the things most important to citizens and members and designed and managed within significantly reduced financial

resources. The cooperative commissioning cycle (referred to at section 4) is designed to ensure that the Council can respond, in an agile way, to any changes to the financial resources available to it, either because of the onset of further budget restraint, or other changes in circumstances. Recommendations Overview and Scrutiny Committee To consider the proposals and make such recommendations to Cabinet that the Committee considers necessary Cabinet (1)

To endorse the proposal to establish “cooperative commissioning” (section 4 & 5) as a fundamental part of the way the Cooperative Council will work in the future.

(2)

To note the range of projects within the Cooperative Council transformation programme especially those designed to deliver cooperative commissioning (sections 6, 7, 8).

(3)

To note the feedback from the consultation workshops held with councillors.

(4)

To recommend that full Council support and adopt the proposals detailed in the report.

Council (1) To consider any additional recommendations from Cabinet. (2) To approve the proposals to establish “cooperative commissioning” (section 4 & 5) as a fundamental part of the way the Cooperative Council will work in the future. (3) To note the range of projects within the Cooperative Council transformation programme especially those designed to deliver cooperative commissioning (sections 6, 7, 8). (4) To approve the proposals detailed in the report. Special Circumstances Justifying Urgent Consideration (Overview and Scrutiny Committee and Cabinet only) The Chair is of the opinion that although this report has not been available for at least five clear days before the meeting, it should be considered now as a matter of urgency because there is a need:(i) For further coproduction of ideas with regard to its content with staff and councillors. (ii) To move to a formal process of consultation with the staff directly affected by the organisational reshaping.

(iii) To complete the coproduction, consultation and reshaping exercise within the current financial year.

Consultation Name of consultee

Internal Derrick Anderson Jo Cleary Sue Foster Mike Suarez Debbie Jones Guy Ware Nana AmoaBuahin Tim Stephens Martin Crump Frank Higgins Cllr Reed Cllr Meldrum Cllr Dickson Cllr Hopkins Cllr Robbins Cllr Prentice Cllr Heywood Cllr Campbell Cllr Peck Cllr McGlone

Department or Organisation

Date sent

Date response received

Comments appear in report para:

Chief Executive Executive Director, Adults and Community Services Executive Director, Housing, Regeneration and Environment Executive Director, Finance and Resources Executive Director, Children and Young People’s Services Divisional Director Corporate Finance Divisional Director HR and Organisational Development Democratic Services Departmental Finance, Finance and Resources Corporate Finance, Finance and Resources Leader of the Council Deputy Leader of the Council Cabinet Member Health and Wellbeing Cabinet Member Public Protection Cabinet Member, Neighbourhood Services Cabinet Member Culture, Leisure and the Olympics Cabinet Member Children and Families Cabinet Member Equalities and Communities Cabinet Member, Regeneration and Strategic Finance Cabinet Member, Finance and Resources

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Report history Decision type: Non-key decision

Key decision: reason EITHER a) expenditure or savings of £500,000 or more OR/AND: b) proposal affects significantly two or more wards

Authorised by Cabinet member: See above Report no.: 162/12-13

Date report drafted:

Date report sent:

XX.XX.12 06.11.12 Report author and contact for queries:

Report deadline 22.10.12

Sophia Looney, Divisional Director Policy, Equalities and Performance 020 7926 2960 [email protected]

Background documents Cooperative Council White Paper Cooperative Council Commission Report Appendices 1. Equality Insight Report (Equalities Impact Assessment)

Cooperative Council: Next Steps in Organisational Transformation 1. 1.1

Context In May 2010 the Council published the White Paper entitled “The Cooperative Council: A new settlement between citizens and public services, a new approach to public service delivery”. The White Paper set out ideas for a new settlement between citizens and the state which, if implemented could: • •

Deliver better and more responsive public services for Lambeth’s citizens Continue delivering services in a period of unprecedented cuts in public sector funding

1.2

The Cooperative Council White Paper described a series of ideas which were based on enhancing cooperation between the state and citizen and greater use of cooperative approaches to deliver local services. All these proposals were underpinned by co-operative values and the wider cooperative movement.

1.3

At its core the Cooperative Council is about citizens, councillors and council staff working together in the design and delivery of local services and related activities intended to ensure that they are relevant and that the right benefits are delivered. This re-balanced relationship between councillors, professional staff and citizens will allow citizens more direct control and influence over the things that make a difference in their lives and communities.

1.4

The Council has learnt much from a number of areas that are already working cooperatively and through a range of projects which have adopted the approach (early adopters). The Council has also been testing new ways to design and deliver services by working more closely with citizens and supporting them in making key decisions that affect their lives. The Council is now clear about the further steps it needs to take and the tools required to deliver the Administration’s Cooperative Council aspirations. The rest of this report explores a range of proposals designed to ensure the Council meets that ambition.

2.

Proposal and reasons

2.1

At the heart of the proposed way forward is a new approach to developing and managing the delivery of services and related activities. The approach is centred around citizens and councillors to ensure that the design and the delivery of services and activity focuses on the things which will make a real difference to the lives of those who live and work in the Borough. The new approach cooperative commissioning - will enable all citizens to get involved in shaping, reviewing (and in some cases) delivering, positive outcomes and activities where they live.

2.2

The organisational changes set out in this report relate to the first of a two step transformation. A phased approach to the transformation is necessary to ensure that important services and activities that are critical to citizens continue to function effectively during the change process. During phase one, there will be a realignment of the current management structures and activities, so they are in the best position to consider how they might work more effectively together in clusters, in the public interest. Phase one will also see the creation of the

“cooperative commissioning cycle” which will become the tool used for future service planning, resource allocation and service/activity procurement. 3.

Why Commissioning?

3.1

Over the last two years the Council has, for good reasons, adopted an organic approach to developing the cooperative council, initiating and identifying a number of Early Adopters that offer learning to the wider organisation. However, it has become apparent that although this has been necessary to develop a better understanding of how the cooperative principles set out in the original Commission’s report might work, in practice, small scale pilots will not in themselves be sufficient to generate the scale of change the Administration aspires to. If citizens, councillors and council staff are to work together in genuine partnership, then a more fundamental change will have to take place. The structures and the supporting infrastructure through which the Council operates will have to be altered to enable citizens and councillors to be firmly placed at the centre of what the Council does.

3.2

At the same time, members and officers in Lambeth are acutely aware of the financial pressures facing local government and the difficult economic climate in which Lambeth’s citizens and businesses are operating. A change in the Council’s ways of working cannot be at the expense of sound financial management, nor can it prevent Lambeth from responding to the changing needs and priorities of citizens. Commissioning is a well established methodology which enables the Council to respond to changing aspirations and needs in an agile manner. It is an approach that is used widely in the National Health Service and Social Care. It is also increasingly becoming the key way of operating in a number of local authorities and Government agencies.

3.3

Adopting a commissioning approach across the organisation will enable Lambeth Council to achieve several things: •

• •

Focus on outcomes (i.e. the things which make a real difference in people’s lives) not outputs: As an organisation, the Council needs to be much better at using the resources it has to achieve lasting change, by focusing on the end goals that citizens say they want, for example, ‘cleaner streets’, rather than simply the outputs, ‘number of street cleaners’. This approach will also encourage more innovation and better efficiency, ultimately saving money as it focuses resources on the activities which really make a difference. Balance different priorities: Commissioning can help to balance different priorities by requiring clear prioritisation, the use of evidence and consistent evaluation of what works. Involve citizens: Commissioning brings a level of transparency to what public services do, breaking down the way they are designed, delivered and evaluated. This is a crucial first step for involving citizens more systematically and at all stages, from identifying outcomes, to monitoring and evaluation of the activities designed to deliver the outcomes the Council seeks to achieve.

4.

The move to cooperative commissioning

4.1

The Council has started a process to change how it works so that citizens are at the centre of all its activities. A fundamental part of this is the development of the more “classic” approach to commissioning (e.g. the Barnet Council model) into a way of operating which better delivers the cooperative council’s principles. The citizen and the councillor must be placed at the centre of the process so influencing all that the Council does, from deciding outcomes, through resource allocation, service delivery and review.

4.2

The shift to cooperative commissioning is not an end in itself but will allow the Council to rebalance the relationship between citizens and service providers and deliver the full range of other objectives identified in the cooperative commission report. This is what differentiates cooperative commissioning from other forms of commissioning: the means and the nature of delivery, as well as relationship and interaction between citizens and the Council, are equally important.

4.3

Cooperative commissioning will be an important change from the way in which the Council operates currently, but it builds on the progress made in recent years. It represents a further development in the Council’s journey of improvement. However, whilst introducing cooperative commissioning as the new operating model, a number of fundamentals remain the same. It is important to note that democratic accountability remains central to the new approach; Council; councillors, Cabinet and Scrutiny all remain as essential components in the system. This will provide assurance and accountability in tried and tested ways. There are, however, a number of key differences: • • • • • • • • •

The citizen is central to everything the Council does An explicit, focus on outcomes throughout Recognising citizens for what they can bring, not just what they need An enhanced role for ward councillors as community-facilitators Designating Cabinet members as commissioners Making co-production with citizens the default way of working for all council staff Opening up the Council’s data and information and making the Council’s decision making as transparent as possible Developing greater levels of agility and flexibility as an organisation Encouraging innovation by becoming risk-aware rather than risk-averse

Officers, Councillors,

Citizens, Businesses, Partners

4.4

Cooperative commissioning starts with the Council working with citizens directly in their communities to understand what they want to happen, and then mapping the resources that exist to help bring it about, including the strengths and assets held in the community as well as in the Council. As part of this assessment, the Council will determine who benefits from activities and grow from there an understanding of the outcomes that it seeks to achieve with them. There is likely to always be more demands for resources than there are resources available. The Administration of the Council, through the Cabinet, will determine the relative priorities (which outcome is most significant), and how the resources will be allocated between different outcomes.

4.5

Led by Cabinet, once the desired outcome has been identified, the Council will work with citizens through a cooperative commissioning process that will include: • • • • • •

4.6

Review of existing activities that can help deliver the agreed outcomes Marketplace assessment to see what activities can be best provided by whom Formal options appraisal to assess how the outcome can be delivered Procurement Delivery of the activities which contribute towards the intended outcomes Ongoing review and evaluation possibly leading to de-commissioning or re-commissioning

A review of whether a particular outcome is being delivered, the difference which is being made and whether that outcome is still fully appropriate, will be fed directly into the information and analysis which supports the thinking about what

needs to be considered at the start of the new commissioning cycle (the needs and assets assessment stage). 4.7

Cooperative commissioning will require that Council staff work with citizens more equally at every level of decision making, recognising their strengths and assets at all times. Coproduction - a term that means service users and service providers’ work together at every stage - will be central to how the Council will work. Coproduction will take place at every step of the commissioning cycle; with continuing dialogue between citizens, councillors and professionals not just when a service is introduced, but throughout its period of design, delivery and review.

4.8

The proposed model will only deliver real innovation if the starting point is the “outcome” - the difference we want the activities or service to achieve. The new approach starts with no presumptions about what the service or activity might be to deliver that outcome, but works together with citizens to identify connections between the resources available from the community and the Council in a different way, building options, where possible, from scratch.

5.

Roles in cooperative commissioning

5.1

The changes proposed require the roles performed by citizens, councillors and council officers to be reshaped. This section of the report sets out the key elements of that reshaping. 5.1.1 Citizens The citizen is at the heart of cooperative commissioning, and there is a role for them, both directly and indirectly at every stage of the commissioning cycle. In this, the Council considers that ‘citizens’ include people who live, work, study, visit or do business in the borough. The Council will make sure that citizens become central to the cooperative commissioning approach by working directly with them to identify the assets available within the community. An example of one way to do this is by working with a representative group from a particular community, training and supporting them to engage with a fully representative cross-section of the community in question so that we can fully understand both needs, resources available, and the community’s own view of the best outcome and how it might be achieved. Rather than requiring citizens to come to the Council, the Council will go to the citizen, and by working together, council officers, councillors and citizens will coproduce the outcomes and what needs to be done in a different way. In this way, citizens will help to set priorities and allocate resources against them through mechanisms such as participatory budgeting, or contributing directly to borough-wide or more local deliberative events or activities designed to enable and support citizen dialogue with the Council. By listening more to our citizens, council officers will be able to enhance and develop their own understanding of what citizens’ want and believe will work best. Citizens will have a fundamental role in relation to delivery; they are firstly the service user, but they are potentially also a service provider. Many service users are already actively involved in the delivery of services – from tenant

management organisations, management boards through to community trusts such as the new Young Lambeth Cooperative. These governance-type roles place citizens in direct control of some service providers and make services more directly accountable to citizens. Citizens are also involved in partnerships to deliver services directly for example, Community Freshview gives over resources to local neighbourhoods to support community clean-ups; snow wardens operate in times of poor weather and as street party organisers and citizens are directly involved in the delivery of some youth services. This approach is not completely new and there are some areas of the Council’s existing business which operates very effectively like this. However, the involvement of citizens will have to be the expected way of operating and needs to be an integral part of everyone’s role. It will no longer be sufficient to expect the citizen to respond to the Council’s mechanisms for involvement, but councillors and officers will have to go to the citizens. The relationships with citizens will be more complex and fluid than has been the case in the past and there will be a key responsibility for council officers to support citizens as they take on these new roles. 5.1.2 Councillors Councillors are integral in the delivery of a cooperative commissioning process, utilising their understanding of the citizens and communities they represent to support this new approach. With democratic structures being the anchor in the approach, councillors will be essential in making cooperative commissioning work. Councillors will be comprehensively supported so that they can perform all three key components to their current roles as: • • •

community, or neighbourhood champions - operating in the interests of the neighbourhood or community, undertaking case work and sorting issues; community connectors - making links between and within neighbourhoods, and understanding what the assets and strengths in the community are; and intelligence gatherers and ‘scrutineers’ - understanding what is really working locally and where the Council needs to improve or change what it is doing.

By undertaking these elements of their role, councillors will be in a unique position to inform and influence the commissioning cycle. Working collaboratively with citizens they will act as the conduit into the Council’s analysis, assessment and decision making processes, ensuring that citizens genuinely are at the centre of commissioning practices. Because the formal democratic structures have been retained, there will still be fundamental roles for councillors in decision making, scrutiny of those decisions and holding officers and providers to account. The accountability of councillors to the electorate will remain unchanged.

It is recognised that this enhanced expectation of all councillors, as with the changed roles for citizens and officers, brings with it a need for a comprehensive support, training and development programme. Many councillors work full time elsewhere, and others have not been required to lead this sort of ongoing conversation with communities. Therefore the Council will need to develop a wide-ranging and ongoing member development programme to ensure that all councillors have the skills they need to operate in this new way. 5.1.3 Council Officers The role of officers will need to evolve, particularly in relation to the relationship with citizens. All officers will have a responsibility for ensuring that citizen involvement is meaningful and positive. This will build upon existing best practice. That is not to suggest that the changes are small or iterative; most officers, like councillors, will have to have a period of support, development and training to ensure they can grow into their new roles successfully. There are four components to the role that all council officers will have, wherever they are positioned in the organisation. Fundamentally, these are about making cooperative commissioning real by: • • • •

Involving citizens directly Focusing on outcomes and understanding who benefits (beneficiaries) from our activities Enabling and advising councillors Operating as technical advisors

The areas with which we are most familiar are the last two. Officers already advise and enable councillors and provide a wide range of technical expertise to ensure that the Council’s business operates effectively and within the law. This technical expertise will continue and is most easily identifiable, but not exclusive to, the ‘professions’ where officers have or are required to have technical, professional training in order for them to fulfil their duties. However, the nature of the changed role of both citizens and councillors described above will require greater flexibility in the application and use of this expertise, recognising that others bring assets that are of equal value to the task. 5.2 The new role will also brings to the mix a greater sense of ‘collective leadership’ and ‘collective responsibility’ where officers will be expected to think beyond their immediate tasks and will be increasingly asked to think and work more flexibly to ensure the Council delivers good outcomes. It will be the responsibility and role of all council officers to involve citizens in the design, delivery and evaluation of what they are doing, wherever that is in the organisation. 5.3 Members are requested to endorse the proposal to establish “cooperative commissioning” as a fundamental part of the way the Cooperative Council will work in the future.

6.

Delivering the organisational transformation

6.1 There will need to be a major change in the current organisational structure if cooperative commissioning is to be delivered across the full range of activities/services which the Council supports. There will also be a need to alter some of the delegated powers which currently rest with officers so that there is a greater decision making capacity provided for councillors. In the future, the organisation will need to reflect upon how commissioning decisions might be delegated beyond Council democratic bodies (i.e. Cabinet) to communities and citizens. 6.2 The change programme needed to deliver the Cooperative Council is, by necessity, complex and will require the development of a number of projects and supporting activities. The transformation programme related to these activities is being directly managed by the Chief Executive. Projects span several areas including cultural change and organisational development as well as the constitutional changes needed to bring cooperative commissioning to life. The programme also contains a project which will lead to the re-alignment of the staffing and organisational structures of the Council to better deliver the new approach. 6.3 The starting point for the new organisational structure has been to group together services in a way that secures a focus on the people or communities most likely to benefit (beneficiaries). This has been done whilst providing opportunities for citizens to work in collaboration with the Council on the design and delivery of local services. In some areas of the Council, this citizen-focused clustering of services has already started. The changing approach to Community Safety issues and some enforcement services is bringing them together to create a Community Safeguarding approach that combines both enforcement and prevention and starts from the community’s perspective. The end-to-end review in Adult Social care is focusing on the service user’s experience throughout, making it a more efficient service focused on their needs by bringing parts of the system together in different ways. 6.4 To work effectively the cooperative council requires a holistic view of the organisation and its activity. It needs to be underpinned by a leadership which takes collective responsibility to cut through the traditional boundaries of departmental thinking. It will need to encourage a more agile, flexible approach which sees the organisation as one single entity. If this is to be achieved there will need to be a shift from the Council’s existing framework of service delivery through traditional departments to one where services/functions will be clustered together in terms of their contribution to a particular outcome. In this way there will be a better fit with the commissioning cycle. In this first stage these clusters will be based around Commissioning Support, Delivering, Enabling and Cooperative Business Development. Each of these new ‘clusters’ will have a specific role in delivering cooperative commissioning, and they will be co-dependent on each other. Every ‘cluster’ will be involved in the whole commissioning cycle as described above – but the emphasis of their role will differ. 6.5 The commissioning support cluster will be responsible for ensuring the business flows around the cycle, working closely with Cabinet to use the intelligence about community needs and assets to support their determination of

the priority outcomes and the allocation of resources. This group will work with the delivery cluster to seek out the most effective way of delivering the outcomes, managing any process of procurement and maintaining relationships with the full range of providers (both in-house and those procured from elsewhere) to ensure that the outcomes are delivered. The delivery cluster will ensure that the outcomes are delivered through a wide range of different activities, ensuring the quality of these activities and services is maintained, and feeding into the commissioning cycle their understanding of what works and how effective it is. 6.6 The enabling cluster will deliver the transactional and supportive services which are necessary to keep the business of the Council operating smoothly. In due course it will also develop mechanisms to support services/activities for external organisations who are part of the ‘Cooperative Borough’ network. The cooperative business development cluster will provide assurance that the right things are being done to ensure transformation across the organisation, maintaining a focus on the reputation of the organisation and on customer experience across the organisation. It will be a central place to draw together innovation and change for the whole organisation, while developing innovative practice in marketplace development and support. 6.7 The Council recognises that a big-bang approach to delivering major changes to the organisation carries a significant risk. With this in mind the reshaping has been split into stages which have a range of milestones, but the fundamental work will be undertaken in design between now and March 2013, with implementation following immediately from April 2013. In thinking through the range of structural changes, due consideration has been given to making the new arrangements more cost-effective and to how they might be managed within the reducing resources available. This means that the proposed shape will need to be leaner, particularly in relation to the most senior manager grades. In addition, throughout the planning and delivery phases of this restructuring, due consideration has also been given to ensuring that the Council’s statutory functions can be effectively delivered. Officers are also considering how these statutory roles can be appropriately protected and integrated into the new ways of operating. 7.

Work in progress

7.1 To deliver the Council’s business through the new cooperative commissioning approach will require some changes to the way the organisation is governed. There will also be a need for new “tools” and support arrangements to encourage citizen engagement; help ward members function effectively; ensure appropriate scrutiny and accountability for decisions taken and that money and resources are allocated to the right things. 7.2 Specific projects have been commissioned which include a Governance review; Constitutional review; member development and support; the creation and use of intelligence; development of ways to involve citizens (including the development of incentives); resource allocation and the processes relating to commissioning planning. Senior officers from throughout the organisation are involved in the work and the overarching programme is sponsored and led by the Chief Executive. 7.3 The governance workstream is developing the governance structures that will be required to deliver cooperative commissioning. This includes the establishment of

new management arrangements (Strategic Board) to convert policy agreed by Cabinet and Council into strategy, and an Operations Board to manage the day to day business of the organisation. Officers are currently reviewing all existing internal governance and assessing how it will work in relation to cooperative commissioning and will, in due course, make recommendations about continuation, change or abolition of the existing governance structures that operate within the Council. Subject to appropriate approvals, it is scheduled to be implemented in full from April 2013. At this stage, there is no proposal to change or review the Local Strategic Partnership governance; however, discussions with partners have been taking place through the partnership’s theme boards and executive delivery group. Partners have been made aware of the changes that are proposed here. 7.4

The Council’s Constitution will need to be amended. This work has commenced, and will, in due course, report to members recommending the changes that will be required. There will be changes to the officer delegations in particular; with a shift of executive powers so members of Cabinet collectively will have the authority to commission against outcomes directly. It is currently anticipated that this work will seek Council approval in 2013.

7.5 A workstream has been established to review and make changes to the programme of member development and the arrangements for supporting members more generally. Clearly, the successful involvement of citizens in our commissioning practice requires both officers and councillors to operate in new ways. The Council needs to ensure the Member Development Programme is tailored to the needs of each ward, so the role of councillor does not become burdensome. Connected closely to the organisational development plans (referred to elsewhere in the report – section 8), this workstream will develop proposals related to the nature and extent of member support going forward, as well as the development of learning opportunities for all members. 7.6 To ensure the commissioning decisions are genuinely based on a comprehensive understanding of needs, assets and strengths in the community, a further project has been established to consider the creation and use of intelligence. This work is focused on bringing together the information gathering, research and analysis capacity that the Council currently has. It is also considering how to make best use of it, drawing closely on the intelligence that councillors can provide through their community networks and building on work that has happened in different parts of the Council to support needs assessments (such as the Joint Strategic Needs Assessment or the Local Economic Assessment). This work, which is genuinely cross cutting, is targeted to be implemented through 2013. The work will also be used to design new arrangements for providing local information for ward members so that they are in a stronger position to perform their new roles more effectively. 7.7 The Council already uses effective methods to listen to and consult with residents. However, to build a better understanding of how officers can do this more comprehensively, a further project has been established to draw learning together and to consider how it fits with the new ways of operating. This project – developing ways to involve citizens - is considering, in particular, how to work with a range of different communities to map strengths and assets; how to ensure citizens from a range of communities can be involved and how as guardians of the

wider public interest, the Council can mitigate the risk that only the loudest voices are heard. 7.8 The move towards cooperative commissioning represents a challenge and will require a significant modification to the way the Council currently plans and allocates its resources. There needs to be a move to commissioning planning and outcomes-base resource allocation. Any proposals emanating from this work will be introduced in phases to ensure that the current medium term financial strategy is not fundamentally undermined. 7.9 Members are requested to approve the proposals to establish “cooperative commissioning” as a fundamental part of the way the Cooperative Council will work in the future. 8.

Organisational changes

8.1 Change of the magnitude the Council needs to actively respond to with the new agenda, requires a new form of Leadership. One which recognises and understands the challenges to the whole organisation and one which encourages and promotes collective leadership and responsibility for change. This needs to be driven from the very top of the organisation, but the changes also need to be led from within the whole organisation at the same time. Leaders need to take the initiative and demonstrate to their staff and colleagues that they are themselves prepared to live the change they want to see within the Cooperative Council. In developing the strategy for transformation, officers have built upon experience and have given due regard to the most common factors that lead to successful change. 8.2 The most critical factors, in terms of successful delivery of complex ideas, rest in front-line staff being sufficiently involved in designing the details of the change; the layers of projects in the change programme itself must be synchronised and integrated and the change must be more than structural. It must be one that is holistic and underpinned by a new mind-set. There is a need to support and develop all those who have an active part to play in the new approach. 8.3 With these critical success factors in mind the overall development plans incorporate specific interventions for councillors, cabinet, scrutiny, senior managers and citizens. These programmes of change (the organisational development plan) have a range of milestones dependent upon the type of intervention. However, it is anticipated that the key aspects of the programme will be delivered by March 2013. The Chief Executive’s office is supporting the detailed work to ensure delivery is managed effectively. The interdependencies with other change programmes are also being carefully managed. 9.

Implementation Plan

9.1 The organisational changes proposed will be implemented in the next 6 – 18 months. Pace and urgency is necessary in order that the shift in approach is genuinely embedded in a manner which is in sync with the Council’s medium term financial strategy. The first phase will see changes to the senior management structures. This will ensure that the leadership is in place to enable the transformation. Their early task will be to match the areas of business currently

undertaken to the new shape of the organisation. This process will start immediately following Council endorsement of the policy change requested in this report. 9.2 Concurrently, the organisational development programme will focus upon ensuring the wider organisational understanding of what the Council is seeking to achieve and the role individuals will need to play in the new system. Once the first phase of change is complete – by March 2013 - the wider transformation will commence, as the Council starts to grow cooperative commissioning as the way the Council does its business. Throughout this period there will be a particular emphasis on keeping the business safe, and ensuring that where they exist, our statutory duties are upheld and the standards and quality of our work is maintained wherever possible. 10.

Feedback from Consultation

10.1

This report is scheduled to be received at Cabinet on 12 November, Overview and Scrutiny Committee on 7 November, Corporate EIA Panel on 8 November and Council on 21 November 2012. Feedback and comments at each of these stages will be incorporated into the final approach which is taken forward.

10.2

The proposed way of operating has been developed in detail between May and September 2012. A series of approximately 50 workshops have taken place with approximately 500 participants from the Council’s workforce, contributing their opinions and views to the proposed ways of operating. The results of these workshops have been used to shape and develop both the proposal and the related programmes of transformation.

10.3

Workshops have also been led by the Chief Executive with a number of councillors from all political parties and key partners. The workshops provided an opportunity for questions to be asked, concerns raised and feedback given. The issues arising were many and varied, but can be reasonably captured under the following headings:10.3.1 The role of the Councillor – members requested that:•

The critical role of the Councillor as the “front door” to the organisation and the need for them to be taken seriously by the organisation be acknowledged and reaffirmed.

•

The need for better local data and intelligence to support asset mapping and connecting communities in the locality be positively acknowledged and resourced.

•

Better and more effective casework support be developed.

•

Better and more effective communication channels be developed.

•

Proper links into the cooperative commissioning cycle and a feedback loop to ensure their voices are properly heard and understood be established.

•

Ensuring the right balance of engagement with the cooperative commissioning cycle for all members - irrespective of political party needs to be accepted as critical, especially in split wards.

•

Officers who fully understand the role of councillors in this new context and can deliver effective support should assist councillors to deliver the new and more complex roles they will undertake.

•

A quality assurance mechanism (so that community groups put forward by councillors can be vouched for as authentic and representative of the community) be developed.

10.3.2 The way cooperative commissioning will work – the following points were expressed and officers asked to consider a response in the design of the new approach:•

The need to find the right approach such that commissioning does not simply lead to services being “outsourced”.

•

Finding the right mechanisms which ensure that Cooperative commissioning encourages and promotes community based delivery, but does not fall foul of procurement legislation.

•

Ensure that existing communities who do not have a readily identifiable “strong local voice” secure proper input to the commissioning cycle.

•

Ensuring that the available financial resources are focused on activities on the ground rather than paying for processes or transactional costs associated with enabling the cooperative commissioning cycle.

•

Finding mechanisms to avoid “sectional capture” of the process by movers and shakers in the community.

10.3.3 Developing a real shift in organisational culture – members expressed concern that:•

The power relationship between councillors and officers should be changed through constitutional reform.

•

A major shift in culture needed to deliver cooperative commissioning should happen at pace and with urgency.

10.3.4 Practicalities and support issues – members requested officers take the following points into consideration:•

The roles of Cabinet members who will be involved in making decisions about what is commissioned or decommissioned, etc. needs to be explicit and transparent.

•

The rules about who provides “HR and finance” – enabling support (especially to community based delivery organisations) needs to be explicit and communicated to all engaged in the process.

•

To fail to provide adequate member support would inevitably lead to failure of the approach. Member support should be adequately funded and resourced.

•

The system should find a way of embracing those already active in the community (e.g. ‘Friends Groups’ etc) but bear in mind the need for proper and diverse representation in all that is done.

•

If councillors are perceived to be important assets in the new ways of working they will need to be confident that the issues they uncover are properly dealt with. An escalation mechanism should be developed to give priority for concerns which seem “stuck in the system”.

•

Councillors would welcome a named officer in each locality who could help them find their way around the new system.

•

That there must be assurance for under represented groups in our diverse communities that specific action will be undertaken to support their contribution and involvement

10.4

All the points raised by councillors and stakeholders have been logged and have been used as a point of reference as the projects designed to transform the organisation proceed in their work.

11.

Conclusions

11.1

The Council has developed a considerable amount of experience, intelligence and insight into what it will need to change and deliver to develop further the cooperative council, ideas, behaviours and approaches. A wide ranging engagement exercise has developed a bespoke approach to commissioning activities (cooperative commissioning) which will achieve better involvement of citizens and other stakeholders in the key decisions which the Council will make in the future. The cooperative commissioning approach will also focus the organisation’s attention on the things which make the most difference to Lambeth’s citizens and communities.

11.2

There is, however, a need to re-shape the organisation’s staffing structures in order to make cooperative commissioning more effective. A move from service departments to a more fluid and agile arrangement based on the key components of the cooperative commissioning is recommended. In addition to the structural change there will be a need for further changes to the decisionmaking and management structures within the organisation. However, the key aspects for democratic infrastructure, full Council, Cabinet, Scrutiny, etc. remain in place as important mechanisms for protecting the public interest and accountability.

11.3

The move to a new way of working through cooperative commissioning and the structural changes proposed will be accompanied by constitutional changes which will provide more authenticity to have executive decisions on the part of groups of Cabinet members.

11.4

The changes proposed will be delivered by March 2014 with key elements of the structural reforms in situ by March 2013. The scale of the changes to the way both members and officers will work is substantial. A range of working groups have been developed to think through the detail of implementation of the new approach. These groups will also consider what resources will be needed to ensure adequate support for members and officers through and beyond the period of implementation.

12.

Finance Comments

12.1

This report sets out the key policy issues for the Council in its transformation to a cooperative commissioning organisation. It does not seek to set out structural proposals with specific financial implications. However, the report makes clear that the Council’s planned cooperative transformation is both a response to the political and economic reality that we will continue to have to manage significant reductions in resources within local government, and will, in itself, need to deliver savings that contribute to our overall budget strategy.

12.2

The November Finance Review report to Cabinet identifies a potential risk of £10m to the 2013/14 budget, along with significant deficits in the following three years. In taking forward the proposals in this report it will be essential that: •

•

In the short and medium term, the restructuring of senior management and the subsequent design of the new ‘clusters’ delivers a significant contribution to the correction action needed to re-balance the 2013/14 budget In the longer term, the development of the commissioning approach and the ability to target resources to priority outcomes will form a central element of the Council’s response to the need to significantly reduce spending over the following three years. In essence, the starting point of each cooperative commissioning cycle must be to identify how outcomes can be delivered with less council money.

13.

Comments from Director of Governance and Democracy

13.1

Section 1 of the Localism Act 2011 introduced a new “general power of competence” for local authorities, defined as “the power to do anything that individuals generally may do” and which expressly includes the power to do something for the benefit of the authority, its area or persons resident or present in its area.

13.2

Details of the consultation and community engagement undertaken are set out in paragraph 10 above. The following principles of consultation were set out in a recent High Court case. First, a consultation had to be at a time when proposals were still at a formative stage. Second, the proposer had to give sufficient reasons for any proposal to permit of intelligent consideration and response. Third, adequate time had to be given for consideration and response, and finally, the product of consultation had to be conscientiously taken into account in finalising any statutory proposals. The process of consultation had to be effective and looked at as a whole and it had to be fair. That required that consultation took while the proposals were still at a formative state. Those consulted had to

be provided with information that was accurate and sufficient to enable them to make a meaningful response. They had to be given adequate time in which to do so and there had to be adequate time for their responses to be considered. The consulting party had to consider responses with a receptive mind and a conscientious manner when reaching its decision. 13.3

Section 149 of the Equality Act 2010 sets out the public sector equality duty, i.e. that all public bodies are under an obligation to have ‘due regard’ to eliminating unlawful discrimination, advancing equality and fostering good relations in the contexts of age, disability, gender reassignment, pregnancy, and maternity, marriage and civil partnership, race, religion or belief, sex and sexual orientation.

13.4

Section 149 (1)(b) of the Act states that: a public authority must, in the exercise of its functions, have due regard to the need to advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it. Part of the duty to have “due regard” where there is disproportionate impact will be to take steps to mitigate the impact and the Council must demonstrate that this has been done, and/or justify the decision, on the basis that it is a proportionate means of achieving a legitimate aim. Accordingly, there is an expectation that a decision maker will explore other means which have less of a disproportionate impact. Details of the Equality Impact Assessment undertaken are set out in paragraph 14.2 below and in Appendix 1.

13.5

Section 112, Local Government Act 1972 places a duty upon local authorities to appoint such officers as they think necessary for the proper discharge of its functions and provides that officers shall hold office on such reasonable terms and conditions, including conditions as to remuneration, as the authority think fit.

13.6

Further legal advice will be provided as necessary in relation to specific proposals flowing from the adoption of the recommendations in this report

14.

Organisational implications

14.1

Risk management: The discussions with staff at the workshops which were held over the summer began the process of identifying the opportunities, issues and risks associated with the move to cooperative commissioning. The issues identified through those discussions were recently developed further through a subsequent workshop with a number of participants from the earlier sessions which focused specifically on risks and the mitigating actions which should be taken to address them. Risks have emerged from the discussions around key themes which have been categorised as follows: organisational change, service performance, finance, cooperative commissioning, culture, spin outs/new delivery organisations and external risks. Some of this work has already been captured within the organisational development plan and thinking. The next step is to develop and prioritise the content into key risks which can be captured and managed through the Council’s risk management tool. .

14.2

Equalities impact assessment: A full equalities impact assessment (EIA) has been undertaken and is being considered by the Corporate EIA panel, and is appended to this report. There are clear equalities issues associated with the cooperative council around ensuring all citizens are equally enabled to participate in the cooperative commissioning cycle, and that cabinet’s prioritisation of resources speaks to reducing inequalities within our borough. The EIA has proposed a series of actions which will be implemented to mitigate the risk of potential adverse impact, and these will be embedded, where appropriate into existing and retained corporate frameworks such as the corporate plan and in the emerging commissioning plans.

14.3

Community safety implications: No specific community safety implications.

14.4

Environmental implications: No specific environmental implications.

14.5

Staffing and accommodation implications: A significant component of this report is on restructuring the Council to meet the cooperative council ambition. There are potential staffing implications and these will be addressed through formal consultation with the relevant Trade Unions and affected staff.

15. 15.1

Timetable for implementation The implementation and delivery of these changes is as follows: Activity

Start Date

Policy change approval

12th November 2012 (Cabinet) 22nd November 2012

First phase reshaping – senior managers and “match” and “shift” phase Systems and processes – Already underway design and implementation

Second phase reshaping – cluster transformation

From March 2013

Organisational Development – programmes

Already underway

__________________________

Intended implementation complete by 21st November 2012 (Council) 28th February 2013

From April 2013; phased and dependent on the particular system and process All completed by March 2014; some earlier depending on risk and complexity Likely first phase by end March 2013