SHOWCASING GOOD PRACTICE

CORPORATE & TRANSACTIONAL

Collaborative Working and Shared Services

Summary

Chesterfield Borough Council, North East Derbyshire The project would significantly alter procurement Borough Council and Bolsover District Council arrangements within the three local authorities – with recognised that they needed to deliver services more new strategic procurement practices ensuring that efficiently and effectively through best value commodities, goods and services are efficiently improvements. sourced. The project also sought to improve procurement capacity, exploit economies of scale and To achieve this, the partner authorities decided to improve contract management procedures. undertake an options appraisal aimed at discovering what the most efficient arrangement for procurement across the three authorities would be. Once armed with the results from the appraisal the partners set about developing a business case which would allow them to improve flexibility, share best practice, achieve economies of scale, remove duplication, improve staff retention and exploit opportunities to deliver cashable and non-cashable savings and qualitative service improvements.

ncy fficie gh e throu ent ovem Impr emce.gov.uk Project background which satisfied all partners. Budget heads were established for each work stream, and regular Chesterfield and North East Derbyshire have a long information updates were regularly issued to staff. history of working together and in 2001 set up a Member-led Steering Group and implemented a joint Benefits delivered to date working protocol to explore additional opportunities for collaborative working. Bolsover District Council The key objective of the project was to secure completed the trio when it joined in 2005. efficiency savings in terms of economies of scale benefits, smarter procurement practice and improved A number of joint working initiatives had already been output through improved working practices, whilst established prior to this latest project, including a Joint improving - or at the very least maintaining - the Tourism Service, Home Improvement Agency, and the existing quality of service provision across the Councils. development of shared strategies. Procurement The Home Improvement Agency was a joint initiative between all three authorities as a result of a best value District Councils who have set up collaborative review. Key benefits for this project were derived from procurement units typically claim savings of the provision of a joint handy person service. approximately 2% on spending. The introduction of a fully integrated e-procurement solution should also In order to progress their shared service work to the result in transactional savings of up to £40,000 per next level the partner authorities sought external grant authority. aid funding from the East Midlands Centre of Excellence. The application centred on four potential The Shared Procurement Unit, which was established areas for development: in May 2007, is targeted to achieve in excess of £200,000 cashable savings across the three authorities.
Early indications are that this target will be exceeded.
Internal Audit
Building Control Procurement and Corporate Services. Building Control

The four project areas were highlighted as potential District Councils that have established collaborative areas of joint working, and the provision of grant aid working typically generate improvements in customer acted was to act as the catalyst to progress the relations management and an increased ability to programme at a greater speed. compete with the private sector through joint commissioning of Building control services. It is also The partners submitted an application to the East anticipated that collaboration will release efficiency Midlands Centre of Excellence, and obtained funding to gains and improve customer service. At the project start undertake options appraisals for Internal Audit, Building date the approximate total cost of the Building Control Control and Procurement and to carry out a feasibility Service for the three authorities was £925,000. As of study for Corporate Services. July 2007, figures indicate that the Building Control Consortium is targeted to achieve cashable savings in The challenge excess of £80,000 across the three authorities during year one, and improve customer service at the same Keeping all the partners on board and in agreement! time. Consensus was aided by developing a robust, relatively simple project / governance framework and ensuring Internal Audit communication and consultation between partners was maintained. The business plan for the Internal Audit Consortium identified cashable savings of approximately £29,000 The Member-led Steering Group which included the for one authority and non-cashable efficiency councilsʼ Leaders and Chief Executives also played a improvements for the other two authorities. key part in delivering this project. Buy-in at all levels of the partner councilsʼ allowed the Working Group to Corporate Services agree a set of objectives, including efficiency savings, improved customer service, added value to services The business case outlined that the project should and market testing opportunities. secure potential efficiency savings, in terms of economies of scale, improved standards and improved It was also important to ensure generic issues such as working practices. Reduce costs for all Corporate Human Resource and legal implications were integrated Services functions without a diminution of service into the review process as early as possible. A series quality. Improve Customer Services and turnaround of project teams working with a lead officer was times for processing cycles e.g. application for Housing established and an agreed reporting structure set up Benefits. ncy fficie gh e throu ent ovem Impr Where we are now (July 2007) Transferability
Internal Audit - Joint consortium launched in April Delivery of the four projects principles will draw out
2007. many important issues regarding strong governance Procurement - Launch of Shared Procurement Unit arrangements and member involvement.
in June 2007. Based in Bolsover. Building Control - Launch joint service in June 2007 It is hoped that the approved solutions from each
under the proposed new name BCN Consultancy. project group will be fully implemented and established Corporate Services - Options appraisal completed, by engaging Members, employees and key now preparing a business case on a strategic public stakeholders.
/ private partnership. Improvements in quality, flexibility and resilience The three authorities propose that this flagship project already identified. will transfer learning externally by:
Where next?
Hosting open days for interested parties. Delivering presentations to and on behalf of the Work to deliver a shared Corporate Services function is
EMCE. moving forward rapidly. This joint working project is now Making a lessons learned log available to interested subject to the development of a detailed business case parties. with the following service areas subject to consideration for joint working: Role of RCE

Customer services The support and assistance of the East Midlands
HR Centre of Excellence was sought by the partnership at
Legal services an early stage in the process and was seen as
Revenues and benefits essential in ensuring the projects success. The project
Finance benefited from grant aid funding of £100k from the
ICT EMCE, and an additional £50k from the East Midlands Property services Improvement Partnership (EMIP) for the implementation Expected benefits over 5 years of a corporate services solution. Partner authorities: By implementing the recommendations from the appraisals, the three authorities are expecting to secure Bolsover District Council cashable benefits of £3.3m, non-cashable benefits Chesterfield Borough Council totalling £1.1m and a qualitative service improvement of North East Derbyshire District Council 54% over a period of 5 years from commencement of the projects. The savings were calculated using the RSe Brent Return on Investment (ROI) model. Risks

As part of the project management arrangements, significant risks were highlighted at an early stage. The three most serious risks as highlighted in the ROI report Contact included loss of political will, lack of available officer Mark Evans resource and the handling of complex HR issues. The Performance and Improvement Manager following actions were taken to mitigate these risks: Chesterfield Borough Council
tel: 01246 345 292 Regular and clear communication including news email: [email protected] sheets and open door sessions with staff/trade unions.
Andrew Foster The use of the grant monies to fund consultancy Assistant Director (Procurement)
support and backfilling. East Midlands Centre of Excellence Commissioning expert advice on HR, governance tel: 07921 491 698 and legal issues. email: [email protected]

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