Annex C Outcomes Framework and Commissioning Plan
Annex C – Outcomes Framework and Commissioning Plan
Foreword
North East Lincolnshire Council’s priorities are clear:-
‘Stronger economy and stronger communities’
To achieve this vision we need to work in new ways with partners in the public and private sectors, the voluntary and community sector, and with individuals, families and communities. We must address the issues we face with creativity and innovation if we are to secure the outcomes we desire.
In February 2015, Cabinet approved the implementation of a ‘corporate and democratic core’ delivery model, created to facilitate the council in moving further towards a fully commissioning and enabling organisation.
This plan outlines our approach to commissioning in order to achieve the outcomes which we believe will deliver our priorities.
We want North East Lincolnshire to be seen as an attractive place to live, work, visit and invest. We know that we have significant and exciting opportunities for investment and growth in North East Lincolnshire. Our location makes us ideally placed as the ‘Gateway to Europe’, enabled through our existing ports infrastructure in Grimsby and Immingham, the latter being the UK’s premier energy port and Britain’s largest port by tonnage. We are driving the growth of the ‘Energy Estuary’ as an international centre for offshore renewable energy.
Working with the Humber and Greater Lincolnshire Local Enterprise Partnerships we have secured funding to develop the South Humber Industrial Infrastructure Plan (SHIIP), which is a major 15-year programme of investment that will enable large-scale economic growth. Infrastructure provision supported by Growth Deal will reduce environmental constraints and release the potential of employment land between the Ports of Immingham and Grimsby. The SHIIP project will create a substantial new industrial hinterland to support the ports. The creation of good-quality development land that is supported by infrastructure will provide the opportunity for substantial growth in the area’s key industrial sectors and the supply chains.
We recognise that we continue to face significant challenges in order tackle the inequalities which are prevalent in the most deprived areas of the Borough. Our priority must be to focus on prevention, building aspirations and equipping local people with the skills to access the employment opportunities that will be generated in the future if we are to positively change our position.
Councils have seen a 40% reduction in direct government funding in the last 5 years, and this trend is set to continue for the foreseeable future. In order to maximise our opportunities for regeneration and growth, and to effectively support our most vulnerable residents, we must work with our partners and residents to review and evaluate everything we do to ensure that we are delivering outcomes that will make a difference to our residents, whilst ensuring financial resilience & sustainability.
Outcomes Framework
The Council has developed an Outcomes Framework which will focus delivery of resources to meet priorities and support a balanced budget for 2017/18 onwards.
The Council's stronger economy / stronger communities priorities are underpinned by a key strategic framework comprising the following:
- health and wellbeing strategy
- economic strategy
- prevention and early intervention strategy
- financial strategy
- safeguarding
The outcomes framework is the means by which our strategic framework will be translated into action and delivered , developed and achieved in conjunction , where applicable and necessary, with our partners across sectors. This is intended to drive a culture of evidence based decision making that will enable elected members to take informed key decisions , cognisant of both the risks and the opportunities for citizens, communities and businesses. Our commissioning plan will ensure and foster clear links between the outcomes framework and the resources available to achieve them.
The Framework,which is shown at Appendix A, sets out the five high level outcomes that we and our partnersaspire to achieve to ensure prosperity and wellbeing for the residents of North East Lincolnshire.
The five outcomes are that all people in North East Lincolnshire will:
- Enjoy and benefit from a strong economy
- Feel safe and are safe
- Enjoy good health and well being
- Benefit from sustainable communities
- Fulfil their potential through skills and learning
The outcomes are supported by a series of high level indicators, informed by a range of performance measures, which we will use to manage our progress. In future we will move away from the traditional approach of reporting activity (how much, how often) and ensure that we focus on measuring and understanding the impact of what we do (what difference does it make?).
The Framework is underpinned by a more detailed set of aspirations (the story behind the outcomes) that we will continue to review and will inform our future decisions. These are set out at Appendix B.
Commissioning Approach
Effective commissioning is a process of planning, agreeing and monitoring services based on continual analysis of a community’s needs and designing, specifying and procuring services to meet these needs, within the resources available. The National Audit Office defines successful commissioning as delivering the right outcomes at the right cost. Successful commissioning is, almost by definition, good value for money.
Commissioning activities include:
•assessing the needs of a population
•setting priorities and developing commissioning strategies to meet those needs in line with local and national priorities
•securing sustainable solutions from providers (internal and external) to meet those needs and targets
•monitoring and evaluating outcomes
•stakeholder engagement
Successful commissioning leads to good decision making, based on evidence and a thorough understanding of need which together set a path for delivering the right outcomes within a value for money context. It is an on-going, iterative and inclusive process of strategic activities which determine where and how best to deploy the total resources available to the organisation.
We have a responsibility to keep on finding ways of making public money deliver better outcomes. Commissioning is the process that we will use to decide how to use the total resources available in order to improve outcomes in the most efficient, effective, equitable and sustainable way.
Commissioning for Outcomes in North East Lincolnshire
Why commission?
The adoption of a commissioning approach is essential as the council moves towards a narrower but more in-depth focus for its own activities and greater collaboration with its wider group of partners to jointly address broader community issues and aspirations.
The commissioning approach will in future deliver the way that we do business. It will enable the council and partners to move away from the traditional default position of service providers focussed on intervention to tackling the root cause of issues and working to a preventative model. The new approach will allowus to work together to fully understand need, the range of options that are available to meet evidenced need, and ensure that we clearly understand and properly manage not just how much or how well we deliver services, but crucially, the difference that those services make to our residents.
The next 3-5 years will include reviews of all activity and reshaping of our relations with partners across all sectors. Focusing on communities through creating the environment for them to thrive, understanding need, engaging in a meaningful way, building sustainability, taking advantage of opportunities and transferring assets to support service delivery.
The wider adoption of the commissioning style has implications on the types of roles, knowledge, skills and attributes required from leaders, managers and specialist teams to delivery it effectively. It will also mean a greater level of understanding and intelligence around need as we look to re-shape and re-design how the council contributes to the delivery of public services across the borough. In so doing, it is expected that the council will become more efficient and focussed on ensuring that the relationships through which services are provided are properly governed and managed.
Basic principles that should support all commissioning decisions will:-
- Clearly link to the North East Lincolnshire outcomes framework
- Demonstrate innovation
- Tackle root cause and enable prevention and early help.
- Reduce dependency – develop individual’s capacity and resilience to help themselves, commissioning for independence and wellbeing
- Promote economic sustainability and resilience
- Look for added value in every penny we spend, so that one activity supports more than one outcome
- Develop encouragement of social value
- Look at commissioning across a wider geographical area for some services
- Be clear on how we prioritise our commissioning activity
- Jointly commission from public funds with partners ensuring that we maximise the resources available in the Borough.
How will we commission?
Key priority commissioning programmes/projects will be determined by the Leadership Team in conjunction with Portfolio Holders. Commissioning will also underpin our approach to other reviews at relevant times, for example, commissioning opportunities afforded to us through our contract renewal procedures.
All commissioning activity will originate with the production of a scoping document to be agreed with the Leadership Team and Portfolio Holder(s) detailing the following:-
- Project/Programme Sponsor
- What the Project/Programme aims to achieve
- Top Triggers (why undertake the project/programme?)
- The outcome(s) that the Project/Programme contributes to
- Current Position
- Which services are involved
- What additional support and/or challenge is anticipated? (This may be internal or external)
On agreement of the scope the commissioning approach will follow a cycle of analyse, plan, do and review, underpinned with the continuing influences and opportunities relating to communities, partners, political factors, governance, markets, procurement, and on-going learning.
Analysis stage will build on the scoping brief to provide an in-depth assessment of the current position and need. At this stage we will ensure that we gather all relevant data and undertake the analysis required to give us the intelligence required for us to make evidence based recommendations, including opportunities for co-commissioning with partners, in order to move forward. The analysis stage will result in a full project/programme brief for consideration by Leadership Team for agreement to move forward into planning stage.
Planning stage will identify the resources required to deliver the programme/projects, responsibilities, milestones, accountabilities and risk. Depending on scale there may be one or a number of workstreams running concurrently or simultaneously, engaging with elected members at appropriate decision points. During this stage decisions as to whether or not to proceed with identified options will be made by elected members based on a clear business case and the programme/project plan will be developed. At all times decision making will made on the basis that the project/programme contributes to the Council’s agreed outcomes and meets evidenced need. The planning stage will culminate with the production of a clear commissioning specification.
Doing stagemoves the programme/project into mobilisation. At this stage detailed project delivery plans will be agreed and resources allocated to deliver the project. This stage culminates in delivery of the project/programme which may be through various means depending on the nature of the programme/project.
Reviewing stage ensures that we have assurance that the programme/project delivers the outcomes required. The arrangements for the frequency and reporting of reviews will vary dependant on the size and scope of the programme/project.
Financial Resilience
The Council has faced significant reductions in funding over the past five years. The total reduction in central Government funding to councils since 2010 is 40% and this trend is set to continue for the foreseeable future. Despite these reductions in funding the Council has continued to deliver a full range of diverse services at a time of increasing demand in a number areas.
The Council’s current medium term financial plan is assuming a 23% reduction in funding over the next four financial years, which includes a £19.8m reduction in Revenue Support Grant. Spending is forecast to reduce from £127m to £108.4m over the same period.
Twelve months ago the Council made a decision to set a two year balanced budget covering the period 2015/16 – 2016/17. However a number of budget pressures have emerged for 2016/17 which will require additional efficiencies of approximately £5m to be identified. Budget pressures include demand related issues in children’s safeguarding, provisions for business rate appeals, delays in the delivery of certain transformational change programmes and the impact of the living wage.
Current financial planning assumptions indicate that the budget gap will be £13.7m in 2017/18, rising to £21.6m in 2018/19. The scale of the current financial challenge makes it all the more important for the Council to take an ambitious approach to securing long term financial sustainability for the Borough through a commissioning and outcome based approach. At the same time earmarked reserves will continue to be utilised to support transformational change. This overall approach will ensure that the best deal is secured for the area and our communities.
Looking ahead, continued uncertainty within both the public sector and the wider economy will require the Council to revisit its financial plans on a more regular basis than usual. Financial planning will need to reflect both the risks and opportunities presented by embracing and maximising our economic potential. Future financial stability will be achieved through a combination of transformation and increasing economic returns. Proposed changes to the system of Business Rates, devolution and further service integration will bring both risks and opportunities to the Council. It will be essential that the Council maintains its focus on its key priorities during this period in order to protect its overall financial standing.
Governance and Risk
There are significant financial and reputational risks associated with the commissioning programme which are recorded on the strategic risk register. Failure to achieve our intentions will leave the council at risk of failing to deliver the outcomes which are essential to the wellbeing of our residents and the development of North East Lincolnshire, and achieve a balanced budget.
The commissioning programmes and projects will be subject to rigorous governance arrangements in order to ensure that:-
- Decisions are evidence based and clearly meet the outcomes agreed by the council;
- All opportunities for future delivery models are fully explored, and a robust due diligence exercise undertaken, before recommendations are made as to the most effective future delivery model;
- When a decision is made to reorganise service delivery or decommission a service during the mobilisation period the project sponsor regularly reports progress and issuesvia the Leadership Team to elected members;
- When any new model is in place there is a robust reporting framework which ensures that elected members receive assurance regarding the success, challenge and risk of failure of the new arrangements.
- Scrutiny Panels will facilitate review and challenge throughout the commissioning cycle
Commissioning Priorities 2016-17
Leadership Team and Cabinet have agreed the priority areas to be reviewed using a commissioning approach during 2016/17, with the intention being that savings identified through the commissioning process will be realised in 2017/18.
In addition to the priority areas there will be additional areas that will be reviewed via the commissioning arrangements during 2016/17, for example, on-going projects and re-commissioning of existing contracts. The plan will be a live document which is amended as new projects come on stream and existing projects are completed.
Key Commissioning Priorities 2016-17 :Energy, Pre- birth to 19+ provision, Culture Heritage Tourism Leisure and Sport
Below are examples of planned work programmes for 2016-17
All people in NEL enjoy & benefit from a strong economy / All people in NEL feel safe & are safe / All people in NEL enjoy good health & well being / All people in NEL live in sustainable communities / All people in NEL fulfil their potential through skills & learning
Development of the renewable energy industries
SHIIP enterprise zone
Local Plan including housing
Devolution / Families First implementation – family group conferencing, signs of safety, restorative practice, outcomes based accountability
Domestic violence one system approach / 0-2 years system redesign
Children’s &Young People’s mental health
Social prescribing intervention
Establishing a substance misuse recovery community / Renewable energy usage
Reshaping of environment services
Reshaping relationship with Voluntary Community Sector
Review of culture, heritage, tourism, leisure and sport / Reshaping Schools engagement
Skills strategy
Apprenticeship development
Appendix A Outcomes Framework a place where people start, develop, live, work and age well
Indicators in italics denote data development is required for reporting
All people in NEL enjoy & benefit from a strong economy / All people in NEL feel safe & are safe / All people in NEL enjoy good health & well being / All people in NEL benefit from sustainable communities / All people in NEL fulfil their potential through skills & learningOver arching /
- % sustainable businesses (3years +)
- Tourism figures
- VAT registrations
- Gross Value Added
- New homes built
- Job growth
- Reduce the number of empty homes.
- Business rate uplift
- Investment secured
- Improved housing offer.
- % of local businesses able to recruit suitable employees
- Road casualties
- Domestic abuse rates
- Crime rates*
- ASB rates
- Hate Crime
- All people feel safe in their home and outside of their home
- Smoking prevalence
- mortality under 75 amenable to prevention
- % of people reporting ‘emotional wellbeing’
- Physical inactivity rates
- Fuel poverty
- Acreage and accessibility of parks & open spaces
- Dedicated walking & cycling routes
- Air quality/CO2 emissions
- % waste recycled
- % reductionin household waste
- % energy generated or supplied from renewable sources
- % affordable houses developed
- % homes protected from flooding
- Proportion of people engaging in volunteering activity
- Number of people active in their communities
- % of people who feel valued and respected as members of society
- % of people who feel they are engaged in decision making on issues affecting their lives
- Quality of local environment
- Indicator of transience, churn and stability of communities be developed
- Educational attainment rates (key stages, GCSE and further education)
Start and Develop Well /
- Number of children in poverty
- Apprentice places
- % of families living in temporary accommodation
- No. of young people involved in criminal activity
- *Incidences of child sexual exploitation (CSE).
- *Incidences of abuse
- No of looked after children
- % of children who are classified as ‘in need’
- Smoking in pregnancy rates
- Self harm hospital admissions age 10-24 years
- Perinatal and Infant mortality rates (healthy baby)
- Childhood obesity/healthy weight
- Hospital admissions as a result of drug or alcohol misuse (under 18)
- % of children showing a good level of development at age 5
- Teenage pregnancy rates
- School attendance
- NEETS
Live and Work Well /
- Employment rates
- % working age people in employment
- Incidences of abuse
- Sexually transmitted disease rate of new diagnosis
- number of opiate users aged 15-64 years
- Gap in employment rate between those with long term condition and overall employment rate 16-64 years
- Rates of literacy and numeracy
- % of people participating in further or higher education
Age Well /
- Falls and injuries in people aged 65+
- Safeguarding referrals (adults)
- % of older and vulnerable people who want to live independently who feel they are able to do so safely
- Older people accessing learning opportunities
Appendix B - The Stories Behind the Outcomes