A~~~D~ITEM NOl....~~.~u~.... NORTH LANARKSHIRE COUNCIL REPORT
To: LEARNING & LEISURE SERVICES Subject: FORMATION OF CULTURE NL COMMITTEE LIMITED
Date: 8 March 2013 Ref: LMcM/EW
INTRODUCTION
The purpose of this report is to provide Learning & Leisure Services Committee with a final pre-transfer update regarding progress towards the transfer of the operation of the Council's cultural and associated services by 1"ApriI 2013.
RECOMMENDATIONS
The Learning and Leisure Services Committee is recommended to:-
(i) approve the transfer of the assets and undertaking to Culture NL Limited;
(ii) appoint Culture NL Limited to operate the Council's cultural and associated services;
(iii) agree that the terms and conditions of all associated contracts necessary to facilitate the foregoing be finalised by the Head of Community Information & Learning in consultation with the Head of Legal Services and the Head of Financial Services; and
(iv) note progress.
Members wishing further information should contact:
Lizanne McMurrich, Head of Community Information and Development on 01236 812338 3 NORTH LANARKSHIRE COUNCIL - LEARNING AND LEISURE SERVICES
FORMATION OF CULTURE NL LIMITED
Report by Head of Community Information and Learning
1. I NTRO DUCTI0 N
The purpose of this report is to provide Learning & Leisure Services Committee with a final pre- transfer update regarding progress towards the transfer of the operation of the Council’s cultural and associated services by 1st April 2013.
2. BACKGROUND
2.1 Formation of a Charitable Organisation to Manage and Operate Cultural and Associated Services - Previous Approvals
Members are reminded that, at a special meeting of the Policy & Resources Committee held on 27 September 2012, the following was agreed:-
* that the Head of Community Information & Learning progress the formation of a charitable organisation to manage and operate cultural and associated services;
that the Head of Legal Services, the Head of Financial Services, the Head of Human Resources and the Head of Community Information & Learning be authorised to:-
* finalise leases 0 develop managementkervices and funding agreement for the management of the in scope services and facilities 0 progress the attainment of charitable status for the non profit distributing organisation and achieve admission to the Strathclyde Pension Fund for the non profit distributing organisation as an admitted body
that the Head of Community Information & Learning and the Head of Human Resources be authorised to enter into a formal agreement (under the transfer of undertakings (protection of employment) regulations 2006 (TUPE) conditions) with the trade unions and the staff employed at present within the in scope services potentially affected by the proposed transfer to the non profit distributing organisation;
0 that the Head of Legal Services be authorised to:-
* establish a TECKAL compliant structure for the non profit distributing organisation establish a Shadow Board for the non profit distributing organisation, seeking nominations for five independent directors complete the final drafts of the memorandum and articles of association of the non profit distributing organisation prepare documentation in relation to the establishment of the non profit distributing organisation and the associated transfer agreement. prepare the legal documentation to establish a trading subsidiary for the non profit distributing organisation, and appoint legal advisers to provide independent advice to the non profit distributing organisation and the shadow board.
4 2.2 Culture NL Limited - Recap on the Development Process
Operational responsibility for North Lanarkshire Council's cultural and associated services, including leisure, catering, caretaking and cleaning will transfer, on 1'' April 2013 to a specially created non profit distributing organisation (NPDO), Culture NL Limited, which has been established as a company limited by guarantee with charitable status. The transfer follows a detailed feasibility study and option appraisal previously reported on to the Council's Policy & Resources Committee at its meeting on 22nd September 2011, which was carried out to determine the optimum way to deliver these services to the residents of North Lanarkshire.
The new organisation will assume responsibility for the management and operation of performance venues, arts activity and arts development, community centres (including the letting of school halls), museums, libraries services and play services on behalf of North Lanarkshire Council and will also manage the leisure, catering, cleaning and caretaking functions associated with these services.
Culture NL Limited will:-
provide a high quality wide range of arts, heritage, cultural services and facilities to the communities of, and visitors to, North Lanarkshire in order to support and encourage everyone to participate, learn and develop their skills and cultural pursuits regardless of skill level, physical ability or age, thereby enjoying a healthy life; preserve and promote North Lanarkshire's heritage as well as provide access to area's rich history through provision of museums, libraries, archives and local study services; support community organisations and individuals to participate in community basedholuntary cultural and leisure activities and put in place programmes to help people and communities build their skills; advance and support the delivery of cultural learning both within and outwith a formal education setting in support of a Curriculum for Excellence, More Choices More Chances, and other lifelong learning initiatives; and promote participation in play activities.
Culture NL Limited will be accountable to North Lanarkshire Council for the delivery of these services through a services agreement which will incorporate funding provisions.
The project team, chaired by the Head of Community Information & Learning with project management support from the Creative Services Manager has developed and steered this project through to completion from the earliest stages of the phase 1 option appraisal. As Committee is aware, the project team comprises senior officers each with specific responsibility for progressing project tasks within their specialist field as well as for contributing to the overall development of the project. Representation on the project team has come from Learning & Leisure Services, Environmental Services, Corporate Services, Finance & Customer Services.
2.3 Transition Roadmap
Significant progress has been made against the transition roadmap which was established at the time of the report to the special Policy & Resources Committee in September 2012. An updated copy of which is contained within Appendix 1 of this report.
Committee is asked to note the progress made in the following key areas in particular which are critical to the establishment of Culture NL Limited by 1 April 2013.
5 Approval and adoption of articles of association of Culture NL Limited
The Executive Director of Finance & Customer Services has exercised delegated powers in terms of paragraph 11 of the Council Scheme of Delegation to approve, on behalf of the sole member of Culture NL Limited (North Lanarkshire Council), the Members resolution to adopt the articles of association for Culture NL Limited. This was subsequently homologated by the Policy & Resources (Finance & Customer Services) Sub Committee at its meeting on Wednesday 27'h February 2013.
The approval by the Council of the Members resolution to adopt the articles of association of Culture NL Limited was reported to the Culture NL Limited Shadow Board meeting held on Monday 18'h February 201 3.
Culture NL Limited Business Plan 2013 - 2018
The first business plan for the organisation, covering the period 2013 - 2018, has been prepared. This document sets out the aspirations, objectives and performance targets over this period. The Culture NL Limited management team will report on progress to the board at quarterly meetings and will prepare an annual report and audited accounts each year. The business plan (a copy of which is included in Appendix 2 to this report) sets out the following:-
the local, regional and national context for cultural services services to be provided by Culture NL Limited mission, vision and objectives of Culture NL Limited PEST (political, environmental, sociological and technological) and SWOT (strengths, weaknesses, opportunities and threats) analysis summary of the communications strategy the structure and role of the board management team structure assets financial strategy and projections performance management and monitoring framework challenges and risks key delivery targets 2013 - 18; and implementation plan
The business plan has been created to support and guide cultural services in the North Lanarkshire area over the period 2013- 2018, working with local partners to deliver strong, measured outcomes, to improve the quality of life and to improve the delivery of cultural services to local people and visitors to the area.
A mission statement, vision and values have been developed collaboratively with employees. The mission statement vision and values:-
Mission
To deliver high quality and inspiring cultural and leisure experiences and facilities which promote and increase participation, meet customer and visitor expectations and improve the quality of life.
Vision
Culture NL Limited is working for the communities of; and visitors to, North Lanarkshire and will be the organisation trusted to:-
encourage an enjoyment and involvement in cultural activity promote opportunities which are accessible to all create stronger, more cohesive communities through participation in cultural activities work in partnership with local and national agencies to promote and widen cultural and outdoor opportunities 6 0 provide welcoming, well maintained and community spaces 0 be a strong sustainable successful organisation which is valued by our customers, communities and supporters; and 0 maximise resources, value our employees, grow our business and generate income to further develop the organisation.
Values
Culture NL Limited wil/ embrace, be guided by and work to the ethos enshrined in the following principles:-
customer focus integrity effort continuous improvement adaptability quality partnership and collaboration ingenuity equality
The business plan is a key component of the overall management agreement between the Council and Culture NL Limited. In addition the following documents also form part of that management agreement:-
0 Transfer Agreement 0 Services Agreement 0 Collections Agreement; and 0 Service Level Agreements
Copies of all of the above agreements have been placed in the members library for the information of Committee. In summary these key documents include the following:-
2.3.3 Transfer Aareement
2.3.3.1 Assets and Undertakings
The transfer agreement between North Lanarkshire Council and Culture NL Limited deals with the authority’s resolution to transfer to Culture NL Limited various assets and undertakings. The transfer agreement defines each asset category and undertaking. Committee is asked to note that as previously indicated no building assets will transfer to Culture NL Limited.
Examples of the assets and undertakings covered within the transfer agreement, in other words what is required for the operation of the services to be provided by Culture NL for example:-
* the collections 0 the libraries collection 0 the plant and equipment 0 the vehicles 0 the fixtures and fittings 0 the intellectual property 0 the prepayments the goodwill 0 the stock
7 2.3.3.2 Employees
In terms of transferring employees, the transfer agreement clearly acknowledges that the TUPE regulations applies to the transfer of the undertaking, and accordingly the contracts of employment of all transferring employees shall be transferred to the trust, to the extent required under TUPE regulations.
A definitive list of all the transferring employees who will transfer from North Lanarkshire Council to Culture NL Limited in order to deliver the provision of services is included within the transfer agreement and a copy of the list of posts which are part of the transfer agreement is attached to this report in Appendix 3.
2.3.3.3 Premises
A list of all premises to be leased to Culture NL by North Lanarkshire Council is also a formal element of the transfer agreement. As committee is aware at its meeting on 21st February 2013 the Policy & Resources (Regeneration and Infrastructure) Sub Committee approved the granting of leases of a number of properties to Culture NL Limited. The lease term being 20 years from 1’‘ April 2013 with an annual rental of f 1 per annum, if asked.
2.3.4 Services Agreement
The services agreement is the principal document which outlines the terms of the agreement between North Lanarkshire Council and Culture NL Limited to provide what are defined within the document as ‘certain services of general economic interest’. The services agreement defines:-
the services fee payable by North Lanarkshire Council Culture NL in respect of the services to be provided and the payment terms; the services to be provided and the arrangements for negotiation of any change in service specification; performance standards and performance monitoring; ownership of intellectual property rights; warranties; personal data and freedom of information; dispute resolution; publicity; specification of the services to be provided by Culture NL in accordance with section 14 (1) Local Government and Planning Scotland Act 1982 to ‘ensure that there is adequate provision of facilities for the inhabitants of the area for recreational, sporting, cultural and social activities’; equalities; outcome agreement - linked to North Lanarkshire Council Single Outcome Agreement; and change control procedure.
2.3.5 Collections Agreement
As covered by the transfer agreement, North Lanarkshire Council is leasing to Culture NL Limited various assets and undertakings whilst retaining ownership of the premises, the collections, the libraries collections and the collection’s intellectual property. However, the council would wish to grant Culture NL Limited certain rights in relation to the collections and the libraries collection, subject to the trust agreeing to carry out activities to meet a number of obligations in relation to the care and use of their collections and the libraries collection. The collections are defined as; the accessioned items in the museums collection, objects, artefacts, works of art, ephemera, books Records, Archives photographs, printed heritage, local history newspapers, local history published and unpublished items, microfilm and digital media.
8 The agreement sets out the rights granted to Culture NL Limited in terms of for example the right to:-
* select , appraise and acquire items for the collections and the libraries collection; preserve, conserve and store items in appropriate facilities; use items for the purposes of research including research by third party; make items available for public access; lend items to a third party; and photograph and/or digitise items.
2.3.6 Service Level Aareements
In order to safeguard the initial stability of Culture NL Limited, within an incremental, but ultimate secession from the majority of council support services. A number of service level agreements (SLAs) will be established, some short term some longer term to support the organisation.
The service level agreements will range in duration but each will have the option of 6 month extensions, subject to the agreement of both parties. The Finance and IT SLA's will be of a longer term nature to reflect the strategic and specialist support to the financial operation and management of the company. This will be contained within the existing cost envelope and thereby deliver best practise support without the need to significantly duplicate and increase the overall cost to the public purse.
Where service level agreements are entered into between the council and Culture NL Limited these will be subject to 6 months notice of termination by either party. The service level agreements will include but are not limited to:-
e financial services; e information technology services; e personnel and training services; e property services; e grounds maintenance; e media management; e graphic design; e health and safety; 0 legal services; and e equality and diversity.
The legal services SLA will be indefinite since it is intended that the company appoint the Council as its agent for this purpose and will access legal support from the Council in the same way as the service does currently.
2.3.7 ODerational Structure and Manaaement of Culture NL Limited
The previous report to the Policy & Resources Committee in September 2012 regarding the establishment of a non profit distributing organisation to operate the council's cultural services, a draft operating structure was presented together with a corresponding structure diagram. At this point it was indicated that during phase 3, the transition period, further exploration of the approach to senior management arrangements would be developed.
As members will be aware a report prepared by the Chief Executive, will be presented to Policy & Resources Committee detailing the workforce changes required in terms of the implementation of financial savings. This report sets out the changes to the overall workforce establishment and structures required to achieve the savings for the first three years savings package. Members will be aware that within this report, the proposed management structure for Culture NL Limited is included for approval. As indicated in the September report to the Policy & Resources Committee, the key aspect of the initial staffing structure developed for Culture NL is based on a move away from heavily structured silos based on professional disciplines at senior management level with little or no change to frontline delivery service structures at least in initial stages of the 9 development of Culture NL Limited. A copy of the proposed initial staffing structure for Culture NL Limited is included in Appendix 4 of this report. Copies of the full establishment structure, inclusive of proposed new and exiting transferring posts, has been placed in the members library.
The creation of a management team of three officers comprising; Senior Operating Officer (Culture NL Manager, NLC 18), Business Development Team Leader (NLC14) and Creativity and Learning Team Leader (NLC14) will allow this smooth transition to happen. In reconfiguring existing posts and recruiting from within the council’s existing staff base this will enable managers and other senior staff currently working within the organisation to drive Culture NL Limited and personally develop within an organisational culture and structure which actively fosters cross sector collaboration, develops a quality of services and releases greater income generating potential.
Besides the senior management team leaders, there are a number of other posts which require to be created to enable Culture NL Limited to flourish and in particular realise its income generating potential early in its operational life. It proved prudent to seek to create an operational post within Airdrie Town Hall to oversee both venue management and catering following its recent refurbishment in particular to drive up use and attendances and associated income. A core dedicated finance team of 8 posts will transfer and provide the day to day financial and governance resource to the company which will be augmented by the strategic and specialist services provided by the Council’s support. In consultation with the Head of Financial Services it is proposed to further enhance this by up to a further 2 posts of Finance Manager (NLC14) and a Debt Recovery Officer (NLC6). It is envisaged that the latter post will allow the company to maximise income generation and recovery and will be self funding in terms of additional income to the company.
In addition a personnel officer (NLC14) and personnel assistant (NLCIO) will be recruited. Once established, in order to fulfil business expectations and enable the trust to further develop the board of Culture NL Limited will require to consider structures to strengthen areas such as digital inclusion, web development, social media, external funding, marketing and programming, research and analysis and development of the catering function.
2.3.8 Workforce Engagement and Trade Union Consultation
From the earliest stage of development of the proposal to establish Culture NL Limited (phase 1 option appraisal) regular meetings have been held with potentially affected employees and Trade Union representatives. More recently a formal engagement process has been established with the Trade Unions and affected employees. To date the process has included:-
@ fortnightly meetings with Trade Union representatives; 9 meetings for affected employees at locations throughout North Lanarkshire; and 6 employee briefing newsletters issued.
3. CORPORATE CONSIDERATIONS
3.1 Human Resources Implications
There are significant staffing implications arising from the establishment of a charitable Trust in particular with regard to the transfer of employment out of the Council. The establishment of CultureNL affects staff employed in Learning and Leisure Services, Environmental Services and Chief Executive’s office. The staff groups affected are as follows:-
@ 45 staff (37.42 FTE) currently employed within Creative Services; 66 staff (46.78 FTE) currently employed within Museums and Heritage; 221 staff (156.70 FTE) currently employed within Facility Support Services; 244 staff (166.80 FTE) currently employed within Libraries and Information Services; 11 staff (9.69 FTE) currently employed within Community Facilities; 2 staff (2 FTE) currently employed within LLS Budget Unit; and 1 staff (1 FTE) currently employed within Chief Executive’s Office 10 In total 707 members of staff, excluding a number of sessional staff, will transfer from North Lanarkshire Council to CultureNL Limited in 1 April 2013.
The provisions of the Transfer of Undertakings (Protection of Employment) Amendment Regulations 2006 (TUPE) are deemed to apply to this transfer.
A list of the posts transferring under TUPE, is attached as Appendix 3.
3.2 Financial Implications
The financial implications and impact outlined within this report have all been developed within the context of the company's business plan. The indicative budget for the new organisation is €15,311,971 plus VAT and is wholly provided for within the existing budget resources of the Council.
3.3 Equalitv Impact Assessment
A stage 2 Equality Impact Assessment has been completed taking into account relevant feedback received to date from the employee engagement and stakeholder consultation exercise, this process will continue as the implementation progresses.
4. RECOMMENDATIONS
The Learning and Leisure Services Committee is recommended to:-
(i) approve the transfer of the assets and undertaking to Culture NL Limited;
(ii) appoint Culture NL Limited to operate the Council's cultural and associated services;
(iii) agree that the terms and conditions of all associated contracts necessary to facilitate the foregoing be finalised by the Head of Community Information & Learning in consultation with the Head of Legal Services and the Head of Financial Services;
(iv) note progress.
11 North Lanarkshire Council
Transition Roadmap Iturew
Version: 2 Date: Sth March 2013
(Based on Heritage Change programme; New Ways of Working: Trust Implementation Guidance Ref 1 4)
08/03/2013 12 1 Appendix 1
Tra ns i t io n Roadm a D Project Plan for Transfer of In Scope Services to Culture NL Limited
I Prepare a project plan and timetable I HeadofCI&L I August 2012 I Complete I I Confirm roles and responsibilities I HeadofCI&L I August 2012 I Complete I Establish staff consultation protocol & initiate with in scope employees Head of CI&L/ August 2012 Complete and trade unions Head of HR
Agree board recruitment process Head Of September 2012 Complete Head of LS Prepare advert for board members Head of CI&L September 2012 Complete I Draft memorandum and articles of association I Head of LS I October 2012 I Complete I Final draft October 2012 complete ” I October 2012 I Complete I 1 Review support service requirements I Head ofCI&L I October 2012 I Complete I Head of CI&L/ Complete & Review property portFolio to be included in the trust August 2012 Head of R&IS Approved Place advert for board members; prepare board induction pack; fix date Head of CI&L/ I September 2012 Complete for open evening Head of LS I I Complete & Agree memorandum and articles of association Head of LS November 2012 A roved Scheduled for Head of FS/ LLS Committee Agree services/funding agreement Head of LS
Review responses to advert for board members; confirm open evening; Head of Ls October 2012 Complete estahlish selertinn nand Scheduled for Confirm management structure/identify new posts if required and seek Head of CI&L/ Committee committee approval Head of HR
I Confirm support service requirements I Head of CI&L Conduct building surveys Head of D&PS June 2012 Complete Programme of meetings for shadow board including briefing on duties Hredf$;L/ November 2012 Ongoing and resnnnsi hiIities I Prepare schedules for project documents 1 Mananer I August 2012 I Complete I Provision of information to pension team to calculate employer’s LLS Personnel September 2012 Complete contribution for pension scheme Consider any ‘special funds‘, ‘restricted funds’, permanent endowment Head of FS September 2012 Complete fund iswes I Incorporate company/company secretarial requirements I Head of LS I December 2012 I Complete I Project September/ Prepare business plan and services delivery plan Complete Manager October 2012 Complete and Project Consider performance monitoring regime/KPIs Manager I Heads of Approve project documents CI&L/LS/HR/ Complete November 2012 I I FSBCMT October/ I
08/03/2013 13 2 IScheduled for consideration at Head of CI&L/ October/ Approve business plan and service delivery plan LLS Committee Head of LS November 2012 on 14thMarch 2013 Head of CI&L/ Issued to OSCR Prepare application to Charity Commission (OSCR) December 2012 Head of LS outcome pending Admissions agreement approach Head of HR March 2013 Complete Set up financial management systems Head of FS January 2013 Ongoing Pending outcome of P&R Head of CI&L/ January/ Appoint new staff (if required) Committee Head of HR February 2013 consideration on 14thMarch 2013 Appoint auditors Head of FS April 2013
Registration for VAT/Data Protection Head of FS February 2013 Ongoing Head of CI&L/ Set up support services February 2013 Ongoing Project Mgr Head of FS/ Prepare financial procedures/adopt relevant operational policies February 2013 Complete Project Mqr Pending outcome of LLS Confirm member final approval to project documentation and resolution Head of CI&L March 2013 Committee of all outstanding issues consideration on 14' March 2013 Policy & Formal approval to transfer by Council Resources September 2012 Complete Committee Formal appointment of shadow board Council November 2012 Complete Formal approval to transfer by board Head of LS March 2013 Execution of documents by both parties Head of LS March 2013 Heads of Business transfer CI&L/LS/HR/ March 2013 FS Pending OSCR Application for rate relief by NPDO Head of February 2013 FS decision OSCR decision Secure charitable status for NPDO Head of LS February 2013 pendinq
08/03/2013 14 3 Appendix 2
CuItureNL Limited
Business Plan 2013 -2016
Inspire Experience Live
To deliver high quality and inspiring cultural experiences and facilities which promote and increase participation, meet customer and visitor expectations and improve the quality of life. Contents Pase 1. Bac kg round 3 2. Aims of the Business Plan 4 3. Overview of Organisation 5 3.1 CultureNL 3.2 Mission Vision and Values 3.3 Objectives Services 0 Creative Services 4. Museums & Heritage 9 0 Libraries and Learning Through Technology 0 Community Facilities 5. Context (sociaI/economic/strategic) 11 5.1 Local 11 5.2 Regional 13 5.3 National 13 6. Market Analysis 14 7. PEST & SWOT Analysis 15 8. Financial Strategy and Projections 18 9. Treatment of Assets 22 10. Management Structure 24 11. Challenges & Risks 25 12. Performance Milestones and Monitoring 26 13. Communications & Marketing 28 14. Implementation 28
16 2 1. Background
The UK Government’s Department of Media, Culture and Sport defines cultural activities to include the following:- - performing and visual arts, craft and fashion - media, film, television, video and language - museums, artefacts, archives and design - libraries, literature, writing and publishing - built heritage, architecture, landscape and archaeology - sports events, facilities and development - parks, open spaces, wildlife habitats, water environment and countryside recreation - children’s play, playgrounds and play activities - tourism, festivals and attractions - informal leisure pursuits
It is proposed that operational responsibility for North Lanarkshire Council’s Cultural and Associated Services, including leisure catering, caretaking and cleaning, transfer on 1‘ April 2013 to CultureNL, a specially created company limited by guarantee with charitable status. The transfer follows a detailed feasibility exercise carried out to determine the optimum way to deliver these services to the residents of North Lanarkshire.
The new organisation will assume responsibility for the management and operation of performance venues, arts activity and arts development, community centres (including the letting of school halls and sports pitches), museums, library services and play services on behalf of North Lanarkshire Council and will also manage the leisure catering, cleaning and caretaking functions associated with these services.
This will be the first business plan for the organisation covering the period 2013 - 2016 and sets out the aspirations, objectives and performance targets over this period. The management team will report on progress to the Board at monthly meetings and will prepare an Annual Report and Audited Accounts each year. Performance will be reviewed against this plan regularly and action plans, project plans and targets updated accordingly. Within the period covered by the business plan it is expected that the new delivery model will provide an improved range of services to communities.
The outline business plan sets out the following:
the local, regional and national context for cultural services services to be provided by the Trust mission, visions and objectives of the Trust PEST & SWOT analysis summary of the communications strategy the structure and role of the board management team structure summary of the human resources strategy assets financial strategy and projections performance management and monitoring framework challenges and risks key delivery targets 2013 - 16 implementation plan
17 3 This outline draft is being submitted to North Lanarkshire Council in order to inform the final decision to transfer.
It was recognised by North Lanarkshire Council, when exploring the options to externalise the services to be delivered by CultureNL, that there was huge potential to achieve the following through establishing the Trust:- * secure a sustainable future for arts, libraries, museums and play services whilst achieving savings for the council; continuous improvement of services; establish and nurture effective partnership working; reach new audiences; and gain freedom to operate and deliver services in a swift and entrepreneurial way
Every day North Lanarkshire’s cultural services including arts, libraries and museums deliver activity to engage and inspire residents and visitors of all ages - from reading a book, to taking a photograph; from visiting a museum to attending a live performance in a theatre - and every year we engage hundreds of thousands of people in the enjoyment and excitement that culture can bring. Today cultural services are even more important to people and communities, because they are vital to the quality of life and each week thousands of people enjoy the array of services, facilities, events and programmes offered by cultural services within North Lanarkshire.
A study in 2010 showed that nationally (UK) two thirds of the adult population enjoy the arts, visit historic sites and go to museums and galleries, with children and young people’s cultural activity both in and out of school increasing steadily. Expectation of cultural services is high.
The development of tourist attractions, festivals and events is continuing throughout the authority area with cultural services playing a central role in this development. Capital investment has recently been made in community facilities, museums, archives, libraries and arts venues and the Council’ s asset management plan includes short and long term plans to ensure the continuing strategic and operational development of such facilities.
2. Aims of the Business Plan
The business plan is created to support and guide cultural services over the period 2013 - 2016, working with local partners to deliver strong, measurable outcomes, to improve the quality of life and to improve the delivery of cultural services to local people and visitors to the area.
The Business Plan sets out intended strategic objectives, outcomes and targets of CultureNL and details how these contribute to local, regional and national initiatives and plans.
CultureNL intends to :- - actively provide, publicise and support cultural services in North Lanarkshire on a local, regional and national level whilst promoting the practical benefits and impacts of culture in the area; - work with cultural partners to deliver benefits for all, including partners, residents and visitors; - improve the quality, efficiency, effectiveness and performance of cultural services, through investment, service review, staff restructure and the exploration of new funding sources, addressing under performance, including developing audiences by targeting service delivery and promotion. 3. Overview of the Organisation
3.1 CultureNL
CultureNL will be formally established on 1‘ April 2013 as a Company Limited by Guarantee with charitable status, and will fulfil the following purposes:-
provide a high quality wide range of arts, heritage, cultural services and facilities to the communities of, and visitors to, North Lanarkshire in order to support and encourage everyone to participate, learn and develop their skills in cultural pursuits regardless of skill level, physical ability or age, thereby enjoying a healthy life; preserve and promote North Lanarkshire’s heritage as well as provide access to the area’s rich history through the provision of museums, libraries, archives and local studies services; support community organisations and individuals to participate in community based/voluntary cultural and leisure activities and put in place programmes to help people and communities build their skills; advance and support the delivery of cultural learning both within and outwith a formal education setting in support of a Curriculum for Excellence, More Choices More Chances and other lifelong learning initiatives; promote participation in outdoor activities.
CultureNL will be accountable to North Lanarkshire Council for the delivery of its cultural and associated services.
Composition of the Board
Membership of the company shall be open only to North Lanarkshire Council. The maximum number of directors of the company is thirteen and out of that number:-
a maximum of six directors shall be partner directors (elected members of North Lanarkshire Council); a maximum of five directors shall be independent directors (appointed by North Lanarkshire Co unci I) 0 no more than one shall be the trade unions director no more than one shall be the employee director.
The Trust will establish a nominations committee to carry out the recruitment process for independent directors and will guide the council on the selection of appropriate individuals for appointment. The nominations committee will comprise the chair of CultureNL and two individuals appointed by the board of directors. Independent directors will be selected following open advertisement of available places. CultureNL will place a great deal of store on the added value of independent directors, seeking out highly motivated individuals with significant experience in the cultural sector and/or business, funding, marketing, the media or the law.
The Board Directors will undergo specific training on roles and responsibilities; systems and processes; communication; and assessment.
19 5 The Board will be responsible for:-
ensuring the organisation complies with the requirements of the funding agreement between Council and CultureNL; developing and approving the annual business plan prior to its submission to the Council; 0 ensuring external funding opportunities are maximised ; ensuring a Human Resources/Employee strategy is developed and implemented; monitoring financial management; accepting and acting in accordance with company director responsibilities to ensure compliance with appropriate legislation; and 0 driving the direction of the organisation to ensure all agreed outcomes are achieved as planned.
An Outcome Agreement will be established between North Lanarkshire Council, as the commissioning body, and CultureNL, and a related Service Specification will be put in place. The arrangements will take full cognisance of the requirement for CultureNL to be independent of the council and at the same time deliver against the corporate priorities of the commissioning body.
3.2 Draft Mission, Vision &Values
Draft mission statement, vision and values have been developed collaboratively with employees. These will be subject to future debate, development and finalisation by the shadow board. The draft mission statement is :-
To deliver high quality and inspikhg cultural experiences and facilities which promote and increase partic@ation/ meet customer and vMtor expectations and improve the quality of life.
Draft vision
CultureNL is working for the communities of, and visitors to, North Lanarkshire and will be the organisation trusted to:-
encourage enjoyment and involvement in cultural activity; promote opportunities which are accessible to a& create stronger, more cohesive communities through partic@ationin cultural activities; work in partnersh@ with local and national agencies to promote and widen cultural and outdoor opportunit!es; provide welcoming, well maintained venues and community spaces; be a strong/ sustainable, successful organisation which is valued by our customers, communities and supporters; and maximke resources, value our employees, grow our business and generate income to further develop the organkation. Draft values
The organisation will embrace, be guided by and work to the ethos enshrined in the following principles:-
Customer focus Integrity Effort Continuous Improvement Ada ptabi I ity Quality Partnership and Collaboration Ingenuity Equality
3.3 Objectives (strategic and operational)
A plan focused on delivery outcomes will be the management and delivery tool by which the following objectives will be achieved during the life of this business plan.
2012/13 Oct 2012 - Jan 2013 Establish the CultureNL Board by recruiting partner directors via NLC and independent directors via open recruitment. Advert for independent directors to be placed week commencing 3 December 2012 and recruitment to take place during January. Dec 2012 - Mar 2013 Establish the CuItureNL senior management structure in advance of implementation by advertising and recruiting in line with NLC workforce development policy Dec 2012 - Jan 2013 Fully communicate CultureNL objectives to our employees, stakeholders and customers via newsletter, area meetings and face to face dialogue. Schedule of meetings to be drafted by December 2012 Jan - Mar 2013 Complete Board recruitment, and produce an induction and training plan to enable the Board to have a good understanding of the Trust’s operation and objectives.
2013/14 ,. Review the Council’s Cultural Strategy and develop an action plan for implementation from 2013. Ensure staff are equipped to fulfil their role within the organisation by providing support and supervision sessions, training, undertaking PRD linking to employee development plans in order to retain and develop a motivated workforce. Develop accurate and appropriate performance measures that reflect the contribution of cultural services to local and national priorities and establish a performance monitoring and review framework that meets both Board and Council requirements eg progress How Good Is Our Culture & Sport? Establish a baseline for monitoring employee and customer satisfaction going forward by undertaking surveys annually and reporting on findings on an annual basis via staff newsletter, poster display, staff meetings.
21 7 Produce a marketing and communications strategy on the range of cultural activity provided to/by residents, visitors, staff and partners and identify a marketing budget for Culture NL as an entity. Encourage greater cross sectional working and joint marketing of projects in order to increase market saturation. Monitor uptake via surveys at events and activities and on website to identify how awareness of the event/activity was made. Develop service standards in response to customer feedback, through knowledge of competition and service trends to ensure community/individual needs are met. Consult on the draft standards with customer base. Review catering operation in accordance with customer and business need and develop operational practices in order to achieve continuous improvement. Gain a better understanding of our customer segmentation by surveying visitors and customers on a six monthly basis, conducting focus groups and reporting on findings on an annual basis via website, publications and poster displays in facilities. Establish trends in customer needs and improve the visitor/customer experience in order to increase attendance. Introduce new initiatives to encourage participation in cultural activity eg Culture Card concession scheme. Identify and prioritise external funding opportunities by developing funding applications which link to our development and business plans and by creating a database of relevant funding streams. Establish and operate a dedicated website for CultureNL by linking existing microsites and Eomplyinq with CultureNL housestyle. Undertake a review of facilities in order to identify properties suitable for investment and which Nil1 provide a return on any investment made. Develop proposals and apply for funding in xder to provide buildings and open spaces that are fit for purpose.
20
Develop arts, retail, library, museums, events and .- programming - strategies - which link to the Cultural Strategy. Strengthen existing partnerships and build strong, new internal and external partnerships to support the development of cultural services through eg networking, Arts & Business, Creative Scotland, local intelligence. Agree, operate and monitor maintenance plans for all main facilities either via SLA or establishment of CultureNL maintenance team. Work with NLC to provide additional new/refurbished cultural facilities and services through strategic investment by bidding into NLC capital plan. Review and manage the existing risk register and secure Board approval to adopt a risk based approach to decision making that will not constrain forward plans. Update the risk register on an ongoinq basis. Undertake a review of library services to identify the most efficient and effective operating model and to modernise the service by developing working practices through greater use of ICT. Produce a Funding Strategy and increase the number of submissions to funding bodies adding detail of submissions secured or otherwise to the fundinq database. Update the Business Plan in advance of April 2015 and seek board endorsement for am endm en t/a dd itions . Produce a fully accessible annual report which feeds back on our performance and make this available to customer, partners and staff via website and in facilities. Special formats to be made available on request. Review SLA performance and identify how we intend to secure support services for the next ‘inancial year. khieve efkiencies through improved procurement practice. I2015/16 Secure feedback from partners, stakeholders and employees following the first 2 years performance and report the outcome via website, publications and posters. Reappoint the Board of Directors or recruit/appoint new Directors in line with CultureNL recruitment/nominations procedure. Review Business Plan, assess progress and performance and set objectives for the next 3 years . Review practices and procedures to ensure value for money. Focus on hard to reach groups and undertake research to identify ways to reach such groups and make access to culture accessible and affordable. Develop a Culture and Wellbeing strateqy.
4. Services
CuItureNL came about as the Council considered the modernisation of local government agenda and faced the harsh realities of economic downturn and its impact upon local services. An options appraisal exercise was undertaken in 2011 investigating a range of options for service delivery. The Council considered a short list of options and voted for development of a detailed business plan to establish a stand alone cultural body. The potential externalisation of the in scope services was included in the Council's savings package 2011-14 which was approved in December 2010.
The list of services which will be delivered by CultureNL encompass the following broad service areas:-
* Creative Services Museums and Heritage Libraries and Information Services Community Facilities 0 Catering, cleaning and caretaking in leisure establishments
Creative Services and Museums and Heritacre
The Creative Services Manager manages the council's arts and performance venues, community arts, museums, archives, local studies and play services. The combined service operates the following facilities and services:-
* Motherwell Concert Hall and Theatre Airdrie Town Hall Bellshill Cultural Centre Beetroot Recording Studio, Airdrie Wishaw Musicworks Pather Artworks, Wishaw Arts Development/Community Arts Programmes Play Services Summerlee Museum of Scottish Industrial Life (4 star visitor attraction) Summerlee Photomedia Studio North Lanarkshire Heritage Centre (the facility also houses the Council archive) Local Studies 0 Shotts Heritage Centre Colzium House Museum Cumbernauld Museum 0 Kilsyth Heritage Centre
In addition the service will be responsible for the council's museum and art collections under the terms of a formal agreement between North Lanarkshire Council and the NPDO.
Attendance at events, festivals and activities is currently experiencing a period of growth. Record levels of visitor numbers have been recorded at Summerlee since reopening following refurbishment, and over 70% occupancy is recorded at venues.
Creative Services currently employs 140 members of staff, including casual staff, and has an income target of €852,000. Museums and Heritage employs 77 members of staff, including casual staff, and has an income target of €160,000.
Key facts:- Community Arts Programme annual attendance 39,744 Attendances at venues 175,161 Lets at venues 2,322 0 Number of visits/usages of council funded museums 217,592
Libraries and Information Services
The library service operates 23 public libraries of various sizes throughout North Lanarkshire and 5 mobile libraries whilst also managing a number of Logintolearn centres within library premises. The libraries team also runs a home delivery service, courier service and provides librarians in 24 secondary school libraries. The library service also provides a service to Shotts prison, various nursing homes, sheltered housing complexes and playgroups. A number of libraries are situated within community hubs located on school campus sites.
The libraries service employs 244 members of staff and has a current income target is €334,000.
Key facts:- Book issues 1,754,455 0 Visits to libraries 1,779,783
Com m unitv Facilities
The community facilities section comprises 24 members of staff, including casual staff, and the service manages the operation and letting of 87 community facilities across North Lanarkshire. A new ICT booking system has recently been implemented providing the opportunity to streamline and centralise the community use of the schools facilities letting process.
The community facilities section has an income target of fl.7million.
Key facts:- Number of lets 110,000
Caterincl, cleanina, caretakina function The leisure catering operation provides civic catering, cafes, hospitality and staff restaurants in a number of locations including Motherwell Concert Hall and Theatre, 3 main libraries, country parks, Summerlee Museum, LLS HQ at Kildonan Street and within the Dalziel Building in Motherwell. The staff associated with these functions will transfer to CultureNL.
24 10 Caretakers and cleaners who provide a service within libraries and community facilities will also transfer to the new organisation therefore a total of 221 individuals will transfer to CultureNL from Environmental Services.
5. Context (social, economic and strategic)
North Lanarkshire Council has the fourth largest population of all Scottish councils with 326,680 residents living in largest concentrations across the town conurbations of Airdrie and Coatbridge, Cumbernauld, Motherwell, Wishaw and Bellshill, and in lesser numbers in the areas of Kilsyth, Chryston and Muirhead, Moodiesburn, Newmains, and Shotts, as well as in smaller settlements within the area.
Population projections 2010-2035 (taken from The National Records of Scotland Population Projections) and health statistics indicate the following and present some challenges:-
total population expected to increase by 5,570 the numbers of pre-school children, primary school children and secondary school children in the area are all expected to fall (-12%, -5% and -6%). The working age population is expected to fall by 21,449 (-10%) the number of people of pensionable age is expected to be a key challenge to service providers. The client group is expected to increase by 31,712 or 64% (pensionable age to 74 to increase by 13,371 or 47%, while 75 and over is expected to increase by 18,341 or 86%) life expectancy is significantly lower in North Lanarkshire than in Scotland as a whole ranging from 64.7 years in Craigneuk Wishaw to 78.7 in Westfield for males, and from 72.1 in Craigneuk Wishaw to 83.9 in Balloch East for females. The mortality rates for North Lanarkshire for all causes (all ages) are significantly worse than the Scotland average (813 deaths per 100,000 population in NL compared with 708 in Scotland). The proportion of the North Lanarkshire population hospitalised for alcohol conditions is significantly lower than the Scotland average. Hospital patient rates for coronary heart disease are significantly worse than the Scotland average with Bellshill and Viewpark having twice the number of patients hospitalised per 100,000 population than Scotland. The percentage of North Lanarkshire's working age population claiming Jobseeker's Allowance ranges from less than 2% in Ladywell, Balloch West and Carrickstone to 10% in Cliftonville South, Motherwell South and Airdrie North and 13Y0 in Craigneuk Wishaw.
North Lanarkshire is bordered by the local authorities of East Dunbartonshire, Falkirk, Glasgow City, South Lanarkshire, Stirling, and West Lothian.
Loca I
North Lanarkshire Council's Corporate Plan (2008 - 2012) and the North Lanarkshire Partnership Community Plan (2008 - 2012) were developed as intertwined strategies that set out key strategic objectives for the council and its community partners and identified the key actions needed to achieve their priorities.
25 11 Under these strategies there are 5 shared priority themes:-
0 lifelong learning health and wellbeing environment regeneration 0 developing the organisation
As both plans are now in their final year, new plans are being developed for the period 2013/14 to 2017/18.
The new North Lanarkshire Community Plan/Single Outcome Agreement (SOA) and the Council‘s Corporate Plan are being developed concurrently for the period 2014/14 to 2017/18. The new Community Plan/SOA will set out the vision together with the priorities for the partnership and the outcomes the NLP aim to achieve.
The Council’s Corporate Plan, as previously, dovetails with the Community Plan, outlining the Council’s contribution to the Community Plan/SOA. It is anticipated that the revised themes will be: - 0 lifelong learning; health and wellbeing; regeneration; community safety; and developing the partnership.
The work of the NPDO links into all of these priorities - either directly or indirectly.
The North Lanarkshire Cultural Strategy highlights the importance of the culture within North Lanarkshire and sets out a strategy for developing activity that increases quality, participation and learning and celebrates cultural heritage.
There is a clear body of evidence to suggest that taking part in cultural and physical activities can have a beneficial impact on physical and mental wellbeing: playing an important role in preventative health work - especially through open spaces and lifelong learning - and enhancing and supporting the local health and wellbeing agenda, both physical and mental. Cultural activities with young people can have a very positive effect on self-esteem and confidence building, reducing youth offending and anti-social behaviour, ensuring streets and social spaces are safer places for all.
Cultural and creative activity plays a central role, through the development of Curriculum for Excellence, in enhancing traditional teaching methods and resources, engaging with children and young people in a unique way that may not feel like ‘learning’ and children and young people are able to engage with new subjects, skills and activities within a less formal environment.
Pupils who struggle with traditional teaching methods benefit greatly when learning agendas are delivered through or supported by cultural activity, within the classroom and beyond. Cultural services in North Lanarkshire work with schools and colleges and contribute to the learning agenda through development of practical skills eg photography and literacy; provision of arts workshops and CPD for teachers; developing and enhancing general skills eg confidence, interpersonal skills and raising aspiration in the arts and creative industries, all of which demonstrate the powerful impact of creative and cultural activity in enhancing and supporting informal and formal learning opportunities.
Regional
Lanarkshire Tourism Action Plan to 2015 - originally developed in the context of the National ‘Tourism Framework for Action 2002-05’; the Glasgow Clyde Valley Structure Plan and other relevant policy documents - has been reviewed and revised to recognise the importance of historic sites including museums sites and listed buildings - many of which sit within CuItureNL’s po rtfol i0.
This complements Changing Gear Towards 2010, an economic development strategy document for Lanarkshire, produced by Scottish Enterprise Lanarkshire, which stresses the importance of continuing to enhance the image of the area and exploit its visitor potential.
National
In 2000, the then Scottish Executive, publicised a National Cultural Strategy for Scotland Subsequently the Council developed and launched in 2006 the North Lanarkshire Council Cultural Strategy which was designed to compliment the national approach having as its key strategic objectives the following:-
Objective I - promoting creativity, the arts and other cultural activity 0 Objective 2 - celebrating Scotland‘s cultural heritage and heritage in its full diversity 0 Objective 3 - realising culture’s potential contribution to education, promoting social inclusion and enhancing people’s quality of life 0 Objective 4 - assuring a national support framework for culture
The current Scottish Government’s national strategic and performance framework, Scotland Pefiorms, includes targets to increase cultural engagement, improve the state of Scotland’s historic sites, increase people’s use of Scotland’s outdoors, improve mental wellbeing, improve people’s perceptions of the quality of public services, improve the responsiveness of public services.
All of these aims can be realised in North Lanarkshire by CultureNL.
Creative Scotland‘s Corporate Plan 2011-2014 ‘Investing in Scotland’s Future’ sets out 5 objectives which also compliment the objectives of the North Lanarkshire Council Cultural Strategy, namely to:-
invest in talent 0 invest in quality artistic reproduction invest in audiences, access and participation invest in the cultural economy invest in places and their contribution to a creative Scotland Creative Scotland's London 2012 and Glasgow 2014 Cultural Plan, along with the 2012 Year of creative Scotland led by EventScotland, aim to create and deliver a programme which will engage as many people as possible in cultural and creative activity. Delivering across 4 overarching themes - celebration; collaboration; participation; and promotion - these themes again clearly link with existing strategies already in action in North Lanarkshire.
The National Strategy for Scotland's Museums and Galleries, Going Fudher, is the first single strategy for the whole museum sector, encouraging the sector to work together towards a shared vision and more sustainable future. The aims of the strategy are as follows:- maximise the potential of our collections and culture; strengthen connections between museums, people and places to inspire greater public participation, learning and well being; empower a diverse workforce to increase their potential for the benefit of the sector and beyond; forge a sustainable future for sector organisations and encourage a culture of enterprise; foster a culture of collaboration, innovation and ambition; and develop a global perspective using Scotland's collections and culture.
Each of the aforementioned national strategies also link clearly with the aims and objectives of the Council's Cultural Strategy, a formal review of which will be progressed in collaboration between the Council and CultureNL during 2013/14.
6. Market Analysis
Local competition
CultureNL recognises the need to remain competitive in order to secure income for re-investment in the service and to contribute to future efficiency savings and each service within the Trust will experience competition from a variety of sources. There are a range of leisure and educational options available to our audiences and participants including television, sports, eating out and digital entertainment. Other sources include other cultural venues and services including museums outwith North Lanarkshire; privately run lettable accommodation eg hotels, social clubs; retail sector eg more affordable access to books; internet access at home.
The new organisation is well placed to embrace such competition as its competitive advantages include a balance of commercial and non-commercial bookings; strength and variety of programming; quality of arts team, tutors and artists working in North Lanarkshire; high profile 4 star visitor attractions eg Summerlee, Museum of Scottish Industrial Life; unique local heritage resources and expertise; investment in major arts venues; fully accredited museums service; free resources to families and others to enjoy an informative, educational and social outing and an established customer base.
Our current customer base generates mainly from North/South Lanarkshire and West Central Scotland. Regular surveys are carried out with our stakeholders and the importance of our services is recognised as the following information on two specific aspects of the service shows:-
Community Arts - in the most recent evaluation survey of adult community arts class members undertaken, 100% reported that their Community Arts experience met their needs and expectations; 100% reported that the tutor's knowledge of their subject was adequate for their needs and 100% reported that the class they attended was good value for money. In a recent survey of 8 - 12 year olds attending community arts classes 100% reported that they had fun at the class; 100% reported that they learned a lot at the class they attended and 100% thought they were treated fairly and sensitively by their tutor.
Libraries - a recent survey of secondary aged young people indicated that 15O/o of respondents used the library to complete homework and thought that a better range of books to assist with homework would improve the library service. A number of young people also felt that if libraries were housed in bright new buildings this would encourage them to use the service more often. So whilst libraries are still relevant to young people they want a visit to the library to be more of an experience and they want it to be a place where they can meet, learn and relax.
Recent surveys of adults showed that 93.4% of those surveyed were members of the library, and of those who had children, 94.1% of their children were also members. 65% of respondents rated the quality and availability of books/materials for young people and their families as ‘very good’ and 75.9% of those surveyed rated the welcome they received at their local library as ‘very good‘. Key findings from the consultation with parents/carers included a desire to see more activities for teenagers and better ICT facilities but overall the level of support to parents/carers, offered by library staff, is highly valued and well thought of.
7. PEST and SWOT Analyses
A SWOT (strengths, weaknesses, opportunities and threats) analysis was undertaken by North Lanarkshire Council Community Information & Learning managers to consider the scenario of a Cultural Trust being in place. The managers also considered the political, economic, social, technological, legal and environmental factors affecting a new model of delivery for cultural services.
PEST Analvsis
POLITICAL ENVIRON M ENTAL
Impact of European directives/policies Impact of European directives/policies Effect of changing Scottish Government views Potential change to funding streams Changes to statutory provision eg play Impact on staff of budget efficiencies New legislation which may change ’charitable Equality impact on staff/customers/external status’ customer Trends in development in national focus of Procurement opportunities can be expanded public services delivery - not restricted to Scotland Excel View of councillors Greater focus on income generation Impact on staff of budget efficiencies Affect of competition on income generation Unease from other services that we will ability continue to deliver same level of service Opportunity to develop better business Equality impact on staff/customers/external packages customer Balance income generation against people‘s Partnership change to charities regulations priority spend Balancing universal service delivery with Changes to inflation/vat/tax percentage targeted service could affect peoples disposable income Political instability in other partners/bodies Changes to staff pensions could affect our Perceived devaluation of arts and culture due costs as an ALE0 to economic trends Improve facilities/consider franchise Trade Unions view opportunities/spend to save Strong marketing of all services including utilising social media Carbon footprint impact - renewable enerqy SOCIOLOGICAL TECHNOLOGICAL
European directives/ policies Impact on staff of budget efficiencies Aging population's impact on the economy Scotland wide standardisation e.g. Opportunity to develop services e.g. Cultural standardisation re library borrowing Card Technological changes e.g. e-books could Impact on staff of budget efficiencies lead to reduction in number of required Equality impact on staff/customers/external buildings customer Standardisation of booking/letting systems Self service kiosks - impact on staffing Greater use of social media Increase demand for training and Opportunities to further develop technology volunteering e.g. use of apps Customer expectation - immediacy, locality, Opportunity to deliver services in order to accessibi I ity save NLC further funds e.g. library self Broadening of poverty gap serve kiosks now being operated Impact of welfare reforms Use of smart phones/text Impact of technology on social well being - Downloads; theatre, music, film - different needs for different sections of the opportunity; e-books, e-audio com m un ity Impact of technology on social well being - Increase risk of digital exclusion of sections of different needs for different sections of the the community community Improve facilities/develop franchise Increased risk of digital exclusion of opportunities/spend to save sections of the community Ensure services reflect our population i.e. Pace of development - funding to keep up - increased elderly/fewer children capacity of ITservice to keep up Balance keeping up with technology in Refocus of jobs to take account of libraries but still keeping books for existing technological progress audiences. Shared services and national procurement risks and benefits E-marketing SWOT Analysis
STRENGTHS
0 High level of customer satisfaction 0 Trust will still be seen as Council or Council 0 Strong existing customer base plus - fixed image &traditional perceptions 0 Knowledgeable staff Current marketing 0 Comprehensive range of services across 0 Current catering authority area 0 Response times of support functions 0 Social impact of cultural activity reported in Structure of cleaning; cover = demand HGIOCS report Technological weaknesses re IT in libraries 0 Strong partnerships eg Competition eg Amazon/supermarkets etc festivals/NHS/colleges etc 0 Potential reduction in level of subsidy 0 Trusted and valued services Cost of running services 0 Ability to offer free and/or low cost services 0 Provision of free Services 0 Unique services and venues e.g. libraries, 0 Political unknowns museums Political influence / interference 0 Buildings rationalisation at first stage - 0 Ageing staff opportunity to develop Responsiveness to change 0 PPP model successful, more joined up, Right people in right jobs/training com mu nication hubs Smaller organisation, less staff progression 0 Capital investment - facilities improved to a Selling new organisation to staff level eg DDA accessible; others fully 0 Statutory protection weakness refurbished Buildings rationalisation at first stage - part of 0 Multi use of buildings business plan 0 Trust will still be seen as Council 0 More confidence to drive direction of ALEO OPPORTUNITIES THREATS
0 Trust will still be seen as Council 0 Trust will still be seen as Council 0 Greater focus on culture in NL / new brand 0 Future funding levels - capital and revenue 0 Culture of organisation 0 Less staff required to do more 0 Staff buy into new organisation 0 Lack of stability (re re-structuring) 0 Staff development - new opportunities 0 Buildings rationalisation at first stage - part 0 Changes to marketing of business plan 0 Changes to Catering Staff buy into new organisation Procurement opportunities Future efficiencies Learning opportunities D Significant savings Digital inclusion D Economic climate D Faster decision making D People's changing leisure activities (greater D Increased income generation opportunities choice) D New service realising new services D Digital services D Expand customer base - marketing D SLAs if not written for benefit of ALEO D Passport to leisure card changes 8 Impact on existing partnerships D Change to pay in advance approach D Competition - cheaper alternatives to what D Review of pricing structures we do D Buildings rationalisation at first stage - part D TUPE of business plan 1 Redundancy - who pays body or authority 1 Cross marketing 'cultural marketing' 1 Failure to secure approval to close facilities 1 Strong board P Co-ordinated programming of events and activities 1 Joining up naturally linked resources 1 Greater options to think in different ways I Clear direction I Proper communication & engaqement 8. Financial Strategy and Projections
Phase 2 - Financial Plan
In building up the Financial Plan for CultureNL, information has been gathered on existing council budgets, potential cost pressures and future efficiency savings for the in-scope services. The impact on VAT of externalising these particular services has also been investigated and applied.
Consideration has been taken of the services provided both to and from these services to the council where no charge is currently applied. It is assumed, for the purposes of this business plan, these arrangements will continue. During the transition phase, support service overheads would require to be further scrutinised and agreed following negotiation and finalisation of employee transfer information and service level agreements.
Initially country parks were included within the in scope services to be managed by the cultural trust however parks do not release a saving in terms of NNDR or VAT and therefore it was recommended that the operation of country parks be retained in house. Likewise with Kilbowie Outdoor Centre, which was also initially considered, the strong links with schools and the delivery of Curriculum for Excellence, set against a minimal NNDR saving, would indicate that this facility continue to be operated in house within the Council.
Baseline Budgets
Information on existing budgets has been received from both Learning & Leisure and Environmental Services. The sum of transferring budgets totals f18.5millionf details of which are shown in Table 1. Table I
Creative Services, Building Libraries, Cleaning & Catering Total Community Careta king Facilities Expenditure + Employee 7,621,119 3,023,699 675,096 11,319,914 costs I Property 7,829,669 39,058 7,030 7,875,757 costs I Supplies & 1,199,998 12,250 575,352 1,787,600 Services Transport & 250,396 15,390 3,000 268,786 Plant Administration 1,243,058 285,132 4,360 1,532,550 Capital 3,202,980 1,091 0 3,204,07 I Financing PTO6 I 341.136 0 01 341.136 Other Costs 1 0 Total 21,688,356 3,376,620 1,264,838 26,329,814 Expenditure Y (3,371,681) 18,587,261 4,939
In establishing an initial management fee for the NPDO, the following budget adjustments require to be applied:-
Opening 2012/13 Budget f 18,550,980
Budget Realignments
Removal of Capital financing Cost budgets (3,204,161) Increased budget for Overheads not currently included 377,518 further realignment to NNDR Budgets 96,867
Opening Management Fee 2013/14 (before savings) f 15,821,294
Future Cost Pressures
In line with North Lanarkshire Council’s 10 year financial plan, cost modelling has been carried out to establish indicative figures for the key financial pressures which CultureNL will encounter over the first 5 years of operation (see table 2). This business plan assumes these will be fully funded by a management fee uplift.
33 19 Table 2
2013/14 2014/15 2015/16 2016/17 2017/18 Total Staff Increments 63,828 55,021 26,185 11,658 7,312 164,003 Pay Inflation 112,764 114,442 116,327 120,236 122,090 585,858 Energy Inflation 64,260 67,710 71,095 74,650 78,383 356,098 Superannuation Increase 0 0 47,885 49,705 57,941 155,530 Cessation of N.1 Contracting Out 0 0 0 213,185 0 213,185 Auto Enrol 0 0 0 0 167,039 167,039
Food Inflation 22,830 23,880 24,979 26,128 27,329 125,146 Living Wage 42,000 0 0 0 0 42,000 Transport Inflation 10,000 10,000 20,000 0 0 40,000 Total 1 315,682 I 271,052 I 306,471 I 495,561 I 460,094 I 1,848,860 I
The following assumptions have been made with regard to increased costs:-
a energy - 7.5% electricity and 2.5% gas in year 1 (2013), followed by further incremental increases of 5% years 2014 to 2017;
a pay inflation - 1% increase each year;
a increasing employers superannuation rate - 3.8% increase from 2015.
a auto enrol pension - assumes minimal impact until effective implementation date of 2017;
a Transport Inflation - based on sample replacement lease costs provided by transport in relation to mobile libraries, the increase in costs relating to a 7 year non - finance lease is €23,000 representing an increase of approximately 21% when applying this rate to all vehicles included in the transfer would result in an additional year on year cost of 40k, phased over 2013 to 2015;
a NI Changes - should the discounted rate be removed for employees in the pension scheme (difference between budgeted O/O and 9.3%)
a Pay and Grading Model - Further information is required before this can be quantified. If implemented, this will be an additional cost pressure.
34 20 Additional Cost Pressures Associated with Establishing Cu ItureN L
In addition to the funded cost pressures the following costs have been taken into account within the efficiency savings proposals.
VAT costs €210,000 Provision for additional revenue costs €50,000 Total f 260,000
2013 to 2015 Savinas
Efficiency savings for Culture NL have been approved as fL85million over the next three financial years 2013 to 2015 as follows:-
2013 €1,155,000 2014 €695,000 2015 NIL Total f 1,850,000
The majority of year 1 savings will be met through the savings in Non Domestic Rates, estimated at fl.4rnillion. After taking consideration of the new cost pressures above will realise a net saving of €1,140,000 in year 1. It should be noted however that €200,000 of this saving was taken in 2012/13, resulting in only €940,000 being available to be set against the 2013 savings target. As such additional savings will be required in 2013 of €215,000.
The balance of savings needed in 2013 and 2014 will require to be met through a variety of measures which may include:-
0 property rationalisation; 0 review of opening hours; 0 changes to work patterns and improved scheduling of hours to reduce overtime payments; 0 review of pricing to better reflect cost of service provision; 0 identification of new income streams; and
0 staffing reconfiguration.
Consideration will be given to these options by CultureNL upon inception.
35 21 Table 3 - Financial Plan 2013 to 2017 2013/14 2014/15 2015/16 2016/17 2017/18 Opening 15/821,294 14,981,976 14,558,028 14,864,499 15,360,060 Funded Cost 3 15,682 271,052 306,471 495,561 460,094 -695,000 Efficiency -1,155,000
Net Budget I 14,981,976 14,558,028 1 14,864,499 I 15,360,060 I 15,820,154
Funding Sources
After removing the internal recharge budgets between building cleaning income and Community Information and Learning property costs, the revised budgets are as follows :-
Total Expenditure Budget €19,389,129 Income (€4,407,153) Management Fee €14,981,976
As illustrated in Table 3 approximately €15 million (77%) of funding will come from North Lanarkshire Council by way of a management fee. The balance of €4.4 million (23%) will be derived by a mixture of income generating opportunities, both existing and new. Care will be taken in deriving a new pricing strategy which will strive to maximise income whilst maintaining if not increasing customer demand.
A key task for the new organisation will be to ensure maximum income is sourced from external grant giving bodies such as; Heritage Lottery Fund, Museums Galleries Scotland; Creative Scotland, Biffa, Environmental Key Fund, various trusts etc.
9. Treatment of Assets (facilities, collections and archive)
The assets CultureNL will manage are varied and extensive and details of the leased properties are detailed in Appendix 1. The aim is to capitalise on assets, making the most of what we have and providing buildings and spaces that are fit for purpose across the service by continuous review and, where appropriate, investment.
Considerable improvements have been made to many properties including Airdrie Observatory, Coatbridge Library, Motherwell Concert Hall & Theatre, Sir John Wilson Town Hall, Summerlee Museum of Scottish Industrial Life, North Lanarkshire Heritage Centre, play areas and numerous community facilities and any future investment will be included in strategic financial and asset management plans.
36 22 During phase 2, in order to inform not only the draft outline business plan, but also the Council’s asset management planning process linked to the development of the composite capital programme for the period 2013/14 - 2017/18, condition surveys were refreshed for all community facilities and libraries and venues.
As it is proposed that the Council transfer responsibility and operation of all facilities identified in the phase 1options appraisal it is important that the shadow board during the transition phase are in the best possible position to consider the full implications of the proposed transfer. Up to date condition surveys are critical in this process.
In order to achieve the NNDR saving the in scope facilities will be subject to a 20 year lease agreement with North Lanarkshire Council. Work has already been completed by the project team and legal services on a draft template lease document, based on the lease terms currently in place between the Council and North Lanarkshire Leisure Ltd. The terms of the draft template lease include the following main elements:-
0 lease term - 20 years; 0 council will insure premises; 0 CultureNL to have in place Third Patty and Public Liability Insurance to a minimum value of €5,000,000; 0 either patty shall have the option to terminate the lease giving six months written notice; 0 CultureNL, as tenant, will be responsible for maintenance of internal parts of buildings; and 0 NLC, as landlord, will be responsible for the maintenance and repair, and when necessary reinstate the exterior and all structural parts of the buildings, and to keep them wind and watertight.
As with North Lanarkshire Leisure Ltd operated properties, as the buildings remain in the ownership of the local authority, their future rationalisation, maintenance and/or potential development will be considered by the Council, informed by the Trust, and the appropriate plans/funding put in place as part of the Council’s asset management and composite capital programme planning processes. It is anticipated that CultureNL through time will put in place its own asset management and capital plan based on its business needs which will also inform the Council’s future capital planning.
With regard to the operation of community facilities within schools which the community facilities team are responsible for letting, it is advised that, due to the nature and operation of these facilities there is no intention to lease these facilities to the NPDO. The community facilities team will continue to operate their facilities through a Service Level Agreement (SLA) between the Council and CultureNL. The same arrangement will apply to the operation of the Council’s records, museum and art collections management functions which will also be subject to a formal agreement between CultureNL and the Council. This is not an uncommon arrangement between arms length organisations and local authorities.
Capital Investment
It is an acknowledged fact that there is a need to invest in the facilities included within the Trust‘s operational portfolio to ensure the future sustainability of services to communities and a maximum return on investment in terms of income generation. The greatest risk to this aim is the condition of the community facilities portfolio. The most recent condition surveys carried out indicate the following, in terms of condition, sustainability and utilisation:-
Table 4
Category* Suitability Utilisation Condition
A 19 5 12 B 48 21 31 C 6 31 25 D - 16 5
*Key A = performing well & operating emciently 6 = satkfactoty -performing adequately but shows minor deterioration C = showing major problems and/or not operating adequately D = bad - life expired and/or serious risk of imminent failure
An overall required investment in community facilities of €4,775,667.50 has been identified through the process of refreshing condition surveys. This presents a significant challenge. In order to meet this challenge the CultureNL/Council partnership will require to function in a collaborative, realistic and solution oriented manner to do the following:-
0 identify the next tranche of building rationalisation in accordance with the approach previously taken by the Council in respect of community facilities; consider a limited number of prioritised bids for future capital investment over the period 2013/14 - 2017/18; and continue to successfully bid for external funding.
In addition, and as identified during the phase 1 option appraisal, there is potential to utilise €100,000 from the overall saving resulting from externalising the in scope services to prudentially borrow in order to carry out some investment in the community facilities portfolio augmenting the Council's composite capital programme investment. If this approach is approved, an investment plan relating to the sum released from prudential borrowing will be put together during the transition phase to the Trust and presented to the Council during the next committee cycle for approval along with the final legal and financial documentation.
10. Organisational/Management Structure
A management team structure has been proposed which, leaner than existing structures, flattens the structure, provides opportunity for remits to work across the organisation and where possible utilises existing management staff. Whilst some new posts are essential prior to 1April a further restructure or review of some posts/remits will take place when the organisation is established.
Developing leadership and management capacity throughout the organisation will be a key objective of the Trust's HR strategy.
A draft management team structure is attached in Appendix 2. Human Resource strategy
Given the current economic climate and the demands being placed on staff by financial constraints, an HR/workforce strategy is more important than ever to maximise potential talent and empower staff.
Building on existing HR policies and procedures a Human Resources strategy will be developed to provide an effective framework for recruiting, developing and retaining both staff and board members in an effective, fair and supportive environment. The strategy will provide a frame of reference during a period of significant change and it will be structured around:-
0 recruitment and retention organisational and personal development 0 staff well being and engagement equality and diversity 0 performance development employment relations framework
The above themes and underpinning aims will support and complement each other to maximise the effectiveness of the strategy.
The strategy will include the following aims:-
0 based on workforce planning, to recruit high calibre staff to meet the organisation's objectives and to build or increase capacity to deliver high quality services 0 to retain and motive high achieving staff to meet the organisation's objectives and to deliver high quality services 0 to have in place a transparent salary grading/job evaluation system 0 to develop the organisation's capacity to deliver its Mission effectively, including through enhancing quality and service excellence, respond flexibly to strategic challenges and improve efficiency 0 to support a positive and flexible working environment in which the equality of opportunity and the appreciation of diversity and dignity at work are respected values 0 to provide a safe and healthy working environment that promotes staff well-being 0 to ensure that staff are equipped to carry out their roles effectively and develop to their full potential 0 to develop a culture of consistent high performance 0 to provide an effective framework that fosters good employee relations and supports managers in people management
11. Challenges and Risks
The establishment and operation of CultureNL involves managing a wide range of risks which requires a consistent approach to identifying, reviewing and monitoring risk. The management team must ensure that risk is managed effectively across the organisation.
Challenges facing the new organisation include:-
0 the set up and management of a new organisation is a challenge in itself when developing appropriate new management processes and we must be mindful that this does not distract from the core purpose of delivering services e we want to develop innovative and creative ways of supporting and investing in service development; e we want to obtain greater information on who our customers are, how they use our services and seek their views on service delivery 0 we want to engage more effectively with our younger audience e we want to ensure our services continue to offer benefits to all our partners 0 programming and marketing of activities that are attractive to people will be a priority e we want to extend opportunities for concession scheme users e in order to increase paying customers we need to ensure we provide excellent customer relations and are able to meet needs and expectations e we need to maintain good employee communications 0 we need to develop the capability of staff and enable new skills to be utilised e we need to look beyond the public sector for additional funding
Beyond challenges, there is a requirement to manage a wide range of risks associated with the operation and management of the new organisation.
Currently there are risks associated with implementing the new organisation and risks associated with operating the organisation and delivering services.
A project risk register is attached at Appendix 3.
12. Performance Milestones and Monitoring
One of the most challenging aspects of culture is the way it defies an absolute definition and the way in which its far-reaching benefits defy measurement or quantification, but despite this, performance management is a challenging but central management process.
The evaluation of outcomes for CultureNL will be undertaken in accordance with the principles and practices of the national How Good is Our Culture and Sport (HGIOCS) quality framework, which North Lanarkshire Council piloted in 2010/11. This model of evaluation allows for data and performance stories to be accommodated within the reporting arrangements, giving the ability to have an improved sense of impact upon communities and individuals. HGIOCS which fits into the Public Service Improvement Framework (PSIF) will act as the overarching cultural services framework with other bespoke models sitting beneath it, such as PLIM, the Public Library Quality Improvement Matrix, and Creative Scotland’s Quality Improvement Scheme.
A Diagram showing how the strategic planning and performance management framework is shown on Appendix 4.
A detailed assessment will be made of actions and targets identified in the business plan and this will be monitored at management level. Performance will be monitored using good quality information from operational plans, addressing under performance and demonstrating where performance is improving.
Self assessment will be undertaken in line with HGIOCS as mentioned, individual performance will be discussed at individual pelformance review and development meetings with performance review linking business planning to team plans and individual plans.
The service will welcome complaints as a valuable form of feedback as they can help identify areas of the service where we need to make changes and improvements whilst making sure we deal with the complaint effectively and consistently. Where relevant services may also be subject to audit and scrutiny.
Existing customer and performance measures are outlined below:-
Indicator 2011/ 12 Frequency 2011/12 target thresholds
Percentage of customers consulted with, who are 80% Annual +/-5% satisfied with overall level of service Percentage of complainants satisfied with the 100% Annual -5% handlinq of their complaint
Percentage of complaints responded to within 14 100% Quarterly -5% calendar days
Performance Indicators (Quarterly)
Indicator 2011/12 targets 2011/12 Q1 42 43 44 1 2011/12 thresholds Key Service Measures Count of e-information uses 75,000 75,000 75,000 75,000 300,000 +/-5% Learning Centres and 2.2 5% 2.2 5% 2.25% 2.25% 9% +/-5% Learning Centre Access point users: Number of users as ?40 of population Learning Centres and 200 200 200 200 800 +/-5% Learning Centre Access point users: Number of times the terminals are accessed per 1,000 population YO number of school pupil 3.5 0.5 2.5 2.5 2.25 + / - 0.5% visits to museums against total NLC school population
+/ - 5%
4- / - 5%
+/- 10%
+/- 10%
~~~ ~ +/-10% Use of Libraries - borrowers 20% 20% 20% 20% 20% +/-5% 3s YO of resident population
41 27 13. CommunicationsStrategy
A communications strategy has been established to ensure local residents and partners are fully aware of the mission, aims, objectives and values of the Trust. The stakeholder and employee engagement plan outlines the strategy and methods that will be employed to ensure stakeholders are kept up to date and informed about the implementation of CultureNL.
Target audiences include employees; service users and non-users; partners; trade union representatives; elected members; media; funders; and local community.
The objectives of the strategy are:- . to effectively communicate a positive message about the proposed new organisation and the development of this business plan to all stakeholders; 0 to raise awareness and impart general information regarding the new organisation’s aims and objectives; and 0 to provide opportunities to address individual queries and concerns.
A strategy matrix has been produced which outlines how each stage of the process will be communicated, when and by whom, and also outlines the methods of communication to be undertaken. These include: employee briefings; establishment of an employee panel; managers and partners briefings; council publications; workshops; intranet and website; focus groups; surveys, questionnaires and comments cards.
14, Implementation/Transition Plan
As a large number of tasks are required to be undertaken prior to the transfer of in scope services to CultureNL a transition plan has been developed for action by the project team.
42 28 Community Facilities address Abronhill Community Facility Larch Road, Cumbernauld G67 3AZ Allanton Senior Citizens Centre Allanton Road, Shotts ML7 5AX Andrew Hamilton Senior Citizens Centre Leven Terrace, Motherwell MLI 4DR Auchinloch Hall 145 Langmuirhead Rd, Kirkintilloch G66 5DL Bargeddie Hall 612 Coatbridge Road, Bargeddie G69 7PJ Beechbank Community Centre 77 Westermavisbank Avenue, Airdrie ML6 OHE Braehead Community Room Braehead Road, Cumbernauld Burngreen Community Centre 13 Burngreen, Kilsyth G65 OHT Burnhead Community Centre Burnhead Street, Uddingston G71 5AT Colzium House Colzium, Kilsyth G65 OPY Coshneuk Public Hall Coshneuk Road, Millertson G33 6JL Cumbernauld New Town Hall Bron Way, Cum bernauld Calder Community Centre 35 Paddock St, Coatbridge ML5 4PG Calderbank Community Centre 118 Main St, Calderbank Airdrie ML6 3LF Caldercruix Hall 30 Progress Dr, Caldercruix, Airdrie ML6 7PU Chapelhall Senior Citizens Day Centre 58 Lauchope st, Chapelhall, Airdrie ML6 8SW Chapelside Centre Waddell Street, Airdrie ML6 6LH Charlotte Toal Centre 8 Henderson St, Coatbridge ML5 1DB Cleland Senior Citizens Centre 75 Main Street, Cleland, Motherwell MLI 5QR Foraewood Communitv Centre Diniont Cr, Motherwil MLI 3TT Frank Ferguson Senior Citizens Centre 187 Motherwell Road, Bellshill ML4 2JG Garrell Vale Community Education Centre Haugh Road, Kilsyth G65 9PT Sartcosh Hall -ochend Road, Gartcosh, Glasgow G69 8AB Sartlea Community Centre 48 Target Road, Airdrie Zlenboig Community Centre 1I0 Main Street, Glenboig Coatbridge ML5 3LF I Glenmavis Community Hall
New Stevenston Community Centre 76-82 Jerviston St, New Stevenston, Motherwell MLI 4JS Old Monkland Community Centre 23 Marshall Street, Coatbridge ML5 5PG Overtown Community Centre Main Street, Overtown, Wishaw ML2 OQU Pat Cullinan Community Centre 200 Logans Road, Motkerwell MLI 3PB Pather Community Centre Caledonian Rd, Wishaw ML2 OHZ Pollock Hall 104A Maree Drive, Cumbernauld G67 4LP Rochsoles Community Cen (formerly Thrashbush Pavilion) Crowhill Crescent, Airdrie ML6 6JL Salsburgh Hall 52 Main Street, Salsburgh, Shotts ML7 4LW Communitv Facilities address Shawhead Community Centre 14 Berwick Street, Coatbridge ML5 4NH Shotts Community Facility Kirk Road, Shotts ML7 5ET Tannochside Senior Citizens Centre
Venues and Libraries
-... -.. - - - address I I Motherwell Concert Hall & Theatre Civic Centre, Windmillhill St, Motherwell MLI IAB Sir John Wilson Town Hall Stirling St, Airdrie ML6 OAS Bellshill Cultural Centre and Library John Street, Bellshill ML4 1RJ Pather Artworks Pather Community Centre, Caledonian Road, Wishaw ML2 OHZ Summerlee Museum of Scottish Industrial Life and Photomedia Studio Heritage Way, Coatbridge ML5 1QD
45 31 North Lanarkshire Heritage Centre High Road, Motherwell MLI 3HU Chapelhall Library 2 Honeywell Crescent, Chapelhall, Airdrie ML6 8XW Cleland Library Main Street, Cleland MLI 5QW Condorrat Library North Road, Condorrat, Cumbernauld G68 9AE Craigneuk Library Shieldmuir St, Craigneuk, Wishaw ML2 7TJ Cumbernauld Library and Museum 8 Allander Walk, Cumbernauld G67 1EE Eastfield Library 8 Ben Lawers Drive, Eastfield, Cumbernauld G68 QJH Kilsyth Library Burngreen, Kilsyth G65 OHT Wishaw Library and Musicworks Kenilworth Avenue, Wishaw ML2 7LP Old Monkland Library Marshall Street, Coatbridge ML5 5EP Motherwell Library 35 Hamilton Road, Motherwell MLI 3BZ Petersburn Library (Four Isles CC & Beetroot Stud io) Varnsdorf Way, Petersburn, Airdrie ML6 8EQ Abronhill Library 17 Pine Road, Abronhill, Cumbernauld G67 3BE Newarthill Library Kirkhall Road, Newarthill MLI 5BB Shotts Library and Heritage Centre Benhar Road, Shotts ML7 5EN Newmains Library Manse Road. Newmains. Wishaw ML2 9AX diewpark Library 3urnhead Street, Viewpark G71 5AT Moodiesburn Library 3lenmanor Avenue, Moodiesburn G69 OLS
4irdrie Library Nellwynd Airdrie ML6 OAG Appendix 2 Culture NL Limited
Proposed operating Structure - Overview
Senior Operating Officer NLCl8
Creativity and Learning Finance Team Leader NLC15 Personnel
Business Play Services Development P 4 Team Leader NLC14 Facilities
Catering
I Responsible for Marketing Audience Development Responsible for Fundraising/External Community Arts Funding Library Services Research/Market Analysis Museum Learning and DigitalNVeblSocial Media Access Services Records Management Archive/Local Studies Collections and Exhibitions Appendix 3
North Lanarkshire Council Culture NL
Project Risk Register - Phase 3 Transition
P 00
Version: 2.0
Date: 23 November 2012
Release: 1st Revision
I:\SMT SupporKommittee Papers\Committee Papers\LLSEOIS\March - special\CultureNL\BusinessPlan\appendix 3.doc North Lanarkshire Council Phase 3 (Transition) Risk Register Culture NL Risk Register - Risk Owners
Name Service Abbreviation
Lizanne McMurrich Learning and Leisure LMcM
Jillian Ferrie Learning and Leisure JF
Alison Mathieson Learning and Leisure AM
Georgina Green Corporate Services GG
Joanne Saunders Corporate Services JS
lan Murdoch Learning and Leisure IM P \o Mark Spalding Finance and Customer Services MS
Barbara Philliben Learning and Leisure BP
Alex Fraser Environmental Services AF
Anne Burns Corporate Services AB
Ellen Doherty Learning and Leisure ED
Alan Henry Learning and Leisure AH
It should be noted that this is a dynamic document which should be reviewed at regular intervals
0 It is necessary that all parties allocated ownership of an item, accept that ownership and fully understand what is required from them North Lanarkshire Council Transition Culture NL Risk Reaister
DO191 Failureto achieve stakeholder buy-in H Zlear assessment of stakeholders’ position and jevelopment of JF 10/10/1I April 2013 2ommunications plan for Dhase 3 of Droiect 002 Ineffective engagement with Trade M H Clear communication with Unions trade unions and briefings held as process JF 10/10/11 April 201 3 progresses 003 Financial climate may get tougher and Regular dialogue with impact on project objectives particularly M H CMT and Finance & LMcM 10/10/11 on improving service quality Customer Services 004 Any changes in structure of NLC might Regular dialogue with c impact on composition of transition L L CMT and Finance and LMcM 1011011 1 C project team and support structure for Customer Services business planning 005 Robustness of financial data M H Controls & procedures in place to ensure; financial AM 10/10/11 April 201 3 data collected/ compiled is verified/ checked, clear statement of assumptions, incorporation of future budget pressures including structure and governance costs etc., sensitivity analysis carried out. North Lanarkshire Council Transition Culture NL !eaiste r P007 Allocation of future eficiencies (outcome Regular dialogue with of Budget Savings Options 201 3-2016 CMT, Services, Finance LMcM 1011 0/11 December Consultation) and Customer Services 201 3 008 Property issues and transfer of title Regular dialogue with JS/AW 1011 011 I January Corporate Services 201 3 009 VAT implications of option L H Specialist VAT advice to be sought/procured as AM 1011 O/I 1 January and when required 201 3 010 The robustness of all indirect costs M H Review of basis of (central and service level). The apportionment and AM 1011 0/11 January challenge of disentangling back office/ attempts to gather 201 3 support service costs. recharge data at a lower n level, to estimate recharges for in-scope functions. Dialogue with operational managers to agree services required and costs. 011 Set up costs and location of M M Options appraisal with headquarters cost plan to be carried out JF 10/10/11 January on alternatives 201 3 012 Condition of assets M Up to date condition surveys for all IM/AF 1011 011 1 June 2012 Complete IH assets/buildings required 013 Robustness of assessment of IT M M Asset register and requirements financial data to be BN/LMcM 10/10/11 January verified by Finance and 201 3 Customer Services North Lanarkshire Council Transition Culture NL !ea ister P014 Risk to reputation L Effective stakeholder engagement and clear LMcM/JF/ 10/10/11 communication plan SP
015 Changes to legislation - current NDR L H Monitor situation and loophole may be closed which will make review outcomes/change LMcM 10/10/11 the business case harder to justify project accordingly if it happens 016 PPP schools contract implications H M Early discussion to take IM/J F/AF 10/10/11 January place with FM provider 201 3 017 Difficulties in finalising costs ofsupport M H Cross Service services (catering, cleaning etc.) collaboration and AM 10/10/11 January exploration of all possible 201 3 options. A clear vision of services required and means of delivery. Dedicated finance resource from Environmental Services.
018 Lack of in-house knowledge of TUPE M H Dedicated HR support to be provided to project AB/LMcM 10/1O/I I team and employee issues sub group to be established 019 Operational Management - failure to get M H Reports to be prepared for LMcM 12/11/12 February NLC approval of initial transferring LLS SMT/CMT and 201 3 oDerational structure Council North Lanarkshire Council Transition Culture NL Risk Register
__ M H Close liaison between NLC and Culture NL from LMcM/JF 12/11/12 Ongoing day 1. Clear delivery plan up to 2016 to be agreed between NLC and NLL L H Wide advertising of opportunity (Portal, Arts JF 12/11/12 March and Business Scotland, 2013 VANL, Creative Scotland and media releases) L H Training sessions delivered by Head of LMcM/JM/ 12/11/12 Legal Services and JF ongoing induction programme 023 Meeting year end cut off for all financial M H Appropriate resource transactions (NLC - Culture NL) being made available by LMcM/AM 12/11/12 Finance and Customer Services to support LLS 024 Accuracy of list of transferring M M Close liaison between the employees HR teams in LLS and ES AH/ED/AB 12/11/12 and data checked by appropriate managers 025 Failure to put in place required level of M H Early drafting of templates SLAs between NLC and Culture NL and discussion with JF 12/11/12 appropriate service managers North Lanarkshire Council Transition Culture NL Riska eaister 026 Refusal to gain admitted body status to Research into other SPV Strathclyde Pension Fund for Culture NL approaches in other authorities. Careful checking of transfer lists and early submission of application 027 Failure to achieve charitable status via L H Careful research into J M/ 12/11/12 OSCR approach taken by other Anderson SPVs and early Strathearn submission of application 028 Availability of future capital funding M H Embedding of partnership LMcM/JF/ 12/11/12 approach to bidding and AM deployment of funds in a similar way to that which olserates with NLL Ltd 029 Lack of operational understanding of M H Continuation of close LMcM/JF/ 12/11/12 services transferring from environmental working relationship with AM services (eg catering and caretaking) ES and the establishment of SLAs to access training. Creation of bespoke specialist posts to be considered (either pre or post transfer) 030 Failure to assign all relevant contracts M H Collation of data on all JF/AM/AH 12/11/12 contracts to be completed as early as possible. Close liaison with relevant council services (eg IT, HML to identifv issues) 031 Failure of application to be accepted into L H Early application to be ED/AH 12/11/12 modification order made. Approach to be taken for other ALEOs to be researched North Lanarkshire Council Transition Culture NL Risk Reaister
032 Loss of existing income streams to NLL M H Careful consideration of Culture NL 22/11/12 March if pilot at St Ambrose successful (impact core business of culture Board 2013 on football, school let and community NL needs confirmed by facility Income) board and agreed with NLC. 033 Loss of control over pricing of school lets Agreement is reached LMcM/AM 22/11/I 2 December and community facilities if there are 2 with NLL that Culture NL 2012 operating bodies Culture NL and NLL. control hall hire pricing and that NLL adopt same price structure to avoid 034 Failure to meet caretaking/cleaning Full analysis of payroll JF/AM/AH 22/11/12 December demand if mix of staff transferring not data to highlight any staff 2012 reflective of historical work pattern consistently working at in I scope sites not on TUPE I list. Query with Env. Services 035 Failure to get approval to appoint new Restructure report needs LMcM/JF 22/11/12 January operational posts for services to be written with a strong 2013 transferring case for the need for these posts 036 Failure to get 25% discretionary rates Specific committee paper LMcM 22/11/I 2 February relief on sites with occasional bar seeking approval to grant 2013 licences discretionary relief for sites without a permanent bar I ice nce . I I I W I W
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I- I I I I I I I I - I
0 C ;T c P Posts Transferring to Culture NL Limited Appendix 3 Post Title Grade Total
Accounts Supervisor NLC7 1 Admin Assistant NLC5 1 Admin Assistant NLCG 1 Administration Supervisor (Staff) NLC7 1 Administration Supervisor NLC7 1 ArchifisVFOI Officer NLCIO 1 Archives Assistant NLC5 1 Arts Development Officer NLC8 1 Arts Development Offier (Dance) NLC8 1 Arts Development Officer (Drama) NLC8 1 Arts Development Officer (Music) NLC8 1 Arts Development Officer (Photography) NLCS 1 Arts Development Officer (Visual Arts) NLC8 1 Arts Outreach Manager NLC12 1 Assistant Curator NLC5 1 Assistant Information Officer N LC7 1 Assistant Stage Manager N LC7 1 Assistant Theatre Technician (Lighting) N LC7 1 Assistant Theatre Technician (Sound) NLC7 1 Audience Development Manager NLCI 1 1 Bibliographic & Outside Services Librarian NLC14 1 Booking Administrative Officer NLC7 1 Box Office & Letting Administrator NLCG 1 Business Development Manager NLCS 1 CaretakerICleaner NLCI 1 CaretakerICleaner NLC3 3 CaretakerlCleaner NLC4 2 Children and Young People's Library Services Manager NLC14 1 Children's Activities Librarian NLC7 1 Cleaner NLC5 5 CleanerICaretaker N LC2 3 Clerical Assistant NLC2 1 Clerical Assistant NLC3 6 Clerical Assistant NLC4 2 Clerical Assistant NLC5 1 Clerical AssistanVReceptionist NLC2 1 Collections & Exhibitions Manager NLCI 1 1 Community FacilitiesManager NLC14 1 Community Librarian NLCI 1 4 CourierIDriver NLC2 3 Cultural Services Manager NLC16 1 Curator (Industrial History) NLCIO 1 Curator of Social History NLCIO 1 Customer Services Manager NLCIO 1 Documentation Assistant NLC2 2 Educational Resources Services Manager NLC12 1 Front of House Supervisor NLCG 1 Heritage Technician N LC7 1 Learning & Access Assistant NLC2 3 Learning & Access Manager NLCl1 1 Learning & Access Officer NLCS 1 Learning & Access Supervisor NLCG 1 Learning & Access Officer NLCS 1 Lending Services Manager NLC14 2 Librarian NLC7 4 57 Library Assistant NLC5 105 Library Assistant (Stock) NLC5 2 Library Supervisor NLCG 35 Library Systems Administrator NLCS 1 Local Studies Assistant NLC5 2 Local Studies Officer NLCS 1 Maintenance Officer NLC7 1 Maintenance Technician NLC5 1 Mobile Driver Assistant NLCG 9 Museum Assistant N LC4 1 Museum Attendant NLC2 3 Museum AttendanVDriver N LC2 1 Museum Business Manager NLC12 1 Museum Duty Officer NLCG 1 Open Learning Officer NLCS 4 Operations Manager NLCl1 1 Outside Services Co-ordinator NLCI 1 1 Pather Arts Works Officer N LC7 1 Play Services Manager NLC12 1 Play Services Officer N LC9 2 Records Administrator NLC5 1 Records & Archives Manager NLCI1 1 Records Assistant N LC2 1 Resource Development Librarian NLCl1 1 Senior Clerical Assistant N LC2 1 Senior Venues Attendant N LC6 1 Stage Manager NLC8 1 Stock Technician N LC6 2 Studio Manager NLCIO 1 System Support Officer NLC5 1 Theatre Technician (Lighting) NLC8 1 Theatre Technician (Sound) N LC8 1 Venue Operations Manager NLCI1 1 Venues Assistant N LC4 2 Venues Attendant NLC4 1 Visitor Assistant NLC4 22 295
58 Posts Transferring to Culture NL Limited Appendix 3 Post Title Grade Total Area Manager NLCIO 1 Assistant Area Manager NLC8 2 Banqueting Chef NLC6 1 Bar Supervisor NLC6 1 Caretaker NLC2 87 Caretaker - term time NLC2 9 Catering Assistant - 52 weeks NLC3 27 Catering Manager - 52 weeks NLC6 3 Centre Supervisors NLC3 24 Chef Manager NLC7 1 Cleaner - 52 weeks NLCI 35 Cook - 52 weeks NLC6 1 Library Caretaker NLC4 7 Senior Catering Assistant NLC3 4 Senior Clerical Assistant NLC4 2 Service Supervisor NLC6 1 Supervisor - 52 weeks NLC3 8 Grand Total 214
59 Appendix 4 Culture NL Limited
Proposed Operating Structure - Overview
Senior Operating Officer NLC18
Creativity and Learning Team Leader NLC14
Business Finance Development Team Leader NLC14 Personnel
Play Services
~~ Facilities Responsible for Marketing Catering Audience Development Responsible for Fundraising/External Community Arts Funding Library Services Research/Market Analysis Museum Learning and DigitalNVeblSocial Media Access Services Records Management Archive/Local Studies Collections and Exhibitions