1. Management Summary 4

Customer First Revised Full Business Case

Revised Full Business Case Customer First

Purpose

The purpose of this document is to present a revised business case for business transformation for Customer First and define the programme that will deliver the transformation. This Revised Full Business Case, originally approved by Cabinet Committee Procurement on 26th April 2007, has been updated as a result of the Common Design phase, which was completed in February 2008. This document should be read in conjunction with the Common Design Report which articulates how the benefits will be delivered.

Intelligent Client Function Use Only

ICF ID

Contact Details

Name Job Title / Role Contact Details Strategic Director, Sponsor Paul Dransfield Resources Senior Responsible Business Contact Paul Higgins 0121 303 9997 Officer Document Author Stephen Foote Programme Director 07711 495 054

Document Details

Version Number 1.7

Issue Date 4th April 2008

Version: 1.7 Page 1 of 67

CHANGE HISTORY

Version No. Date Details of Changes included in Update Author(s)

V0.9 4/2/2008 Updates after cost review

V1.0 7/2/2008 Final FBC review

V1.1 5/3/2008 Updated after benefit review

V1.2 11/3/2008 Updated with drafting comments

V1.3 18/3/2008 Added comments to table in Section 5.1

V1.4 19/3/2008 Updated with additional comments

V1.5 27/3/2008 Updated with SRO feedback

V1.6 02/04/2008 Updated with key aspects after Programme Board review, for sending to EMT 7/4/08.

V1.7 04/04/2008 Updated with further PGB comments

Version 1.7 Page 2 of 67

Contents

1. MANAGEMENT SUMMARY...... 4

1.1 INTRODUCTION...... 4 1.2 DELIVERY APPROACH...... 4 1.3 REALISATION...... 4 1.4 CHANGES TO BENEFITS AND COSTS DURING COMMON DESIGN...... 5 1.5 BUSINESS CASE...... 7 1.6 NEXT STEPS...... 7 2. VISION...... 8

2.1 VISION STATEMENT...... 8 2.2 OUTCOMES...... 9 2.3 FUTURE OPERATING MODEL...... 11 3. TRANSFORMATION...... 13

3.1 CURRENT SITUATION...... 13 3.2 NEED FOR CHANGE...... 14 3.3 CONSEQUENCES OF INACTION...... 15 3.4 BENEFITS...... 16 4. DELIVERY APPROACH...... 25

4.1 OBJECTIVES...... 25 4.2 IMPLEMENTATION APPROACH...... 25 4.3 INTERIM SOLUTIONS...... 30 4.4 MEETING BUSINESS TRANSFORMATION TARGETS...... 35 4.5 STAKEHOLDERS...... 37 4.6 ASSOCIATED INITIATIVES...... 38 5. COSTS...... 41

5.1 LIFECYCLE COST...... 41 5.2 IMPLEMENTATION COSTS...... 42 5.3 TECHNOLOGY COSTS...... 45 5.4 TRAINING & CULTURE CHANGE COSTS...... 47 5.5 PROPERTY COSTS...... 48 5.6 ONGOING SUPPORT COSTS...... 49 5.7 ROLLOUT 1 COSTS...... 50 5.8 SIGNIFICANT CHANGES SINCE FBC...... 50 5.9 SCRUTINY AND CONTROL OF COSTS...... 56 5.10 RISKS...... 56 6. REALISATION...... 59

6.1 REALISATION APPROACH...... 59 6.2 PROGRAMME ORGANISATION STRUCTURE...... 60 6.3 GOVERNANCE...... 63 6.4 BENEFITS REALISATION PLAN...... 64 6.5 PROGRAMME PLAN...... 65 7. BUSINESS CASE...... 66

8. APPENDICES...... 67

8.1 BENEFITS CARDS...... 67 8.2 COMMON DESIGN REPORT...... 67 8.3 COST MODEL ASSUMPTIONS...... 67 8.4 PROGRAMME PLAN (MS PROJECT)...... 67 8.5 SUMMARY OF CONTACT CENTRE KPIS & PIS...... 67 8.6 NOTES OF CUSTOMER FIRST CMT WORKSHOP...... 67

1. Management Summary

1.1 Introduction

Customer First is one of the nine programmes which make up Birmingham City Council’s Business Transformation programme. It represents an ambitious vision to transform the quality of service provided to the citizens of Birmingham. In April 2007, the Cabinet Procurement Committee approved the Full Business Case. Between May 2007 and February 2008, the Customer First team have completed the Common Design and the Revised Full Business Case. In February 2008, the Customer First Programme Board approved the Common Design Report which articulates how the benefits of Customer First will be delivered, and in March 2008 the CMT approved the Revised Full Business Case. The purpose of this document is to present the Revised Full Business Case, identifying significant changes to benefits and costs identified as a result of the more detailed analysis and design work carried out during Common Design. The Customer First Vision, Outcomes and Future Operating Model as approved by the Cabinet in April 2007 have not changed during Common Design, and are included in Section 2 of this document. This document should be read in conjunction with the Common Design Report.

1.2 Delivery Approach

The programme will be delivered using a phased approach, deploying Council services into the operating model in five phases – called ‘roll-outs’ -- over a four year period from 2008 to early 2012. 1st response and 2nd response will be implemented simultaneously for each service and across all channels. This approach has the benefit of delivering the Customer First vision earlier than other options, and of allowing each service to transition to the operating model in a single step without an interim solution required for contact hand-offs to the Directorates during the period between separate 1st and 2nd Response roll-outs. The approach will require interim solutions for overall transition and the property solution however, and these are detailed in section 4.3. 1.3 Realisation

The main deliverables for Customer First from the next programme phase, Realisation, will be: • Implementation of new customer service processes and systems delivering to customers improved access to council services and a better end-to-end experience for Customers once they have requested services. • Improved functionality available through the birmingham.gov.uk website enabling Customers to access council services more easily, have a personal account with the Council and access status information about the services they receive. • New face-to-face Hubs and a refresh of Neighbourhood Offices. • A single telephone number to access all council services - A ‘0121’ number will be used as the single number, however a ‘311’ type short-digit number is still being explored as an option for the future. • A single corporate customer database accessible, subject the correct levels of authority, to all customer-facing council staff. • A knowledge-base for customers, contact centre staff and face-to-face staff supporting access to council services and information about council services.

• A new Customer Services Organisation for the delivery and management of service operations and the customer interaction processes across all channels. • Training of all staff undertaking the new processes, policies and procedures • Converted data from existing systems and databases into the new systems

Details of the Realisation Phase can be found in section 6. The Rollout 1 Realisation phase incorporates the Common Build, during which the elements of the operating model that are common to all services will be developed, together with Rollout 1 service-specific variations. Realisation will be structured around the following distinct functions: Solution Design & Build, which is responsible for the detailed design, build and testing of the solution; Solution Deployment, responsible for preparing for the effective deployment of the solution within each roll-out; Solution Architecture, responsible for ensuring that the solution remains consistent with the Common Design; Channel Owners, responsible for ensuring the design and deployment meet channel specific requirements, and Benefits Management, which oversees the delivery of the Benefits Realisation Plan. These functions operate under the direction of Programme Leadership, which is responsible for managing scope, resources, workload, plans, budgets and stakeholders and for management of issues and risks, and Solution Leadership which ensures the timely and effective delivery of the programme objectives. The realisation team will have a different governance structure to the one currently in place for Common Design, and will have a larger percentage of full-time BCC participants. This is detailed in section 6.3. 1.4 Changes to Benefits and Costs during Common Design

The ‘core’ benefits of Customer First remain the same as they were in April, as previously agreed by the Programme Board and Cabinet Procurement Committee:  Turning the Customer Services vision into a reality, delivering Customer First’s 8 strategic outcomes: o Simple and convenient access to all Council services across a choice of methods o More transactions completed at the first point of contact with the customer o Being able to follow a transaction through from the point of contact to delivery, so that performance is visible to staff, Members and customers o Consistent and improved standards of customer handling o Customers dealt with by proactive, knowledgeable customer focused staff, empowered to put the customer first o Use of knowledge about the Council’s customers to both ensure the way services are delivered effectively meets customer needs and outcomes and that the Council resolves the root causes of customer contact and complaints o Increased awareness of the City Council’s services o Increased customer and staff satisfaction.  Significant financial benefits delivered through a combination of: o Channel Shift o Volume Reduction o Improved Productivity o Efficiencies for Case / Job Delivery

There have been changes agreed during Common Design which have resulted in increased costs and differences in the level and/or source of financial benefit. The benefit changes and their implications are listed in Section 3.4.4. The key cost changes are listed in Section 5.7. The net effect on the financial business case resulting from the benefit changes is a decrease of £3.5million in cashable benefits over 10 years vs. the original FBC.

In addition to the cashable benefits there are non-cashable benefits. These non-cashable benefits will yield considerable advantages for the Council and customers but are either more difficult to quantify or are difficult to translate to FTE savings. In summary these are:

Benefits to Customers  Brand new user-friendly web site which can be personalised to individual citizens  Timely, consistent and high-quality responses to requests for Council services and information  A network of service points across the city which makes efficient use of Council resources and achieves a level of customer satisfaction of which the Council can be proud  Modern, efficient and welcoming facilities capable of providing a wider range of services to both new and existing customers  Ability to easily access Council services in the way that best meets their needs (one number, personalised website)  Improved levels of service, with no net increase in cost -- or council tax  Integrated front and back office to enable more queries to be resolved first time

Benefits to Members and Senior Management  Easy access to strategic and operational performance reporting for all Customer Service processes  Service Strategies derived from segment-based customer needs and preferences  Insight-led improvement to delivery of services  Increased visibility of end-to-end processes and their performance  Real-time monitoring of SLA Performance  Improved management of Customer Service resources  Capability for running targeting customer communications campaigns

Benefits to Staff  Boost to skills and capabilities of over 1,200 customer-facing staff  A safe, efficient and professional working environment for staff, reinforcing the high standard of service they are expected to deliver  Better motivated / improved staff morale through having the support to do their job well and satisfy customers

New Technology  A system that can be upgraded and extended to utilise the latest developments from the CRM solution and enable future transformation programmes

Benefits across Services  A single view of BCC customers available to all service areas  Consistent service management and standards applied across all contact channels Version 1.7 Page 6 of 67

 A cohesive, multi-channel, integrated system platform  Access to common information and knowledge  Increased knowledge about customers to help design future services that better meet their needs  Consistent processes and behaviour across all customer services

Benefits to Birmingham City  A basis for raising the profile of Birmingham as a modern, efficient, global city with a local heart  The most advanced Local Government customer services function in the UK, (and possibly worldwide)  The most comprehensive Local Government customer services management information system in the UK, identifying areas of excellence and areas where improvements in services are required.  Demonstrably high standard of customer service, supporting increasing the Council’s CPA rating  Consistent world class standards of excellent customer service right across the Council  CharterMark accreditation 1.5 Business Case

To achieve the vision outlined in the Revised FBC will require an investment of £175million over ten years, including operational and support costs. The projected financial benefit to be realised from the programme is £321million over ten years, of which £197.4million is cashable. As a result of the £19.3million investments already made in Customer First during Phases 2 and 3 the additional investment required to complete the Customer First programme and realise the customer and financial benefits is £155.7million The cost for completing Roll Out 1 is £62.1 million. 1.6 Next Steps

The Customer First Programme Board approved the Common Design Report, on the 20th February 2008. The Revised FBC will have to be authorised by the Cabinet Procurement Committee on 17th April 2008.

2. Vision

2.1 Vision Statement

The Council’s vision is to make Birmingham one of the best cities in the world for living, visiting and conducting business. This will maintain and enhance its place as:

 A city of national and international significance that has a successful and sustainable place in the world economy

 A city whose local neighbourhoods and vibrant urban villages are flourishing and whose people benefit from its prosperity. The 2007-2010 Council Plan reinforces this aim. The Council want Birmingham to be a city with an even stronger and more sustainable economy offering benefits to all its citizens. A city where people are safe, well housed and healthy; and where they enjoy a high quality of life within a thriving, diverse and cohesive community. A city where people feel they can play their part to the full. A city where people want to live, work and visit, and where businesses and government choose to invest.

The Customer Service strategy which supports the Council’s vision has five components aligning the Council’s corporate vision for customer service with that of each of the Directorates. The five components are:

 The strategic context within which the Council delivers its customer services

 The Council’s mission and vision for delivering customer service in the future

 The desired outcomes that the Council wishes to achieve through business transformation

 The design principles that underpin how the Council wants to operate in the future

 The capabilities that the Council needs in order to achieve its vision and desired outcomes. The Customer Service strategy is being implemented through the Customer First Programme. The Programme is intended to transform services in Birmingham within five years, generating a ‘step change’ improvement in the services the Council provides to citizens, tourists, businesses and partner organisations, helping to turn into reality a vision of customer service which has been expressed in the following words:

Simplicity Imagine if the customer hadn’t been passed from pillar to post, and they could easily access services using the method they prefer at a convenient time. Personal Service Imagine being able to tailor services to customer’s needs, knowing what drives their satisfaction and the Council resolves the causes of contact resulting from our failures that generate complaints. Professionalism Imagine if Council staff delivered a consistent high quality of customer service every time. Efficiency Imagine being able to solve most customers’ problems there and then, at the first point of contact, and being able to track enquiries through to delivery.

2.2 Outcomes

Turning this vision into a reality will generate the 8 strategic outcomes: Outcome 1 Simple and convenient access to all Council services across a choice of methods Outcome 2 More transactions completed at the first point of contact with the customer Outcome 3 Being able to follow a transaction through from the point of contact to delivery, so that performance is visible to staff, Members and customers Outcome 4 Consistent and improved standards of customer handling Outcome 5 Customers dealt with by proactive, knowledgeable customer focused staff, empowered to put the customer first Outcome 6 Use of knowledge about the Council’s customers to both ensure the way services are delivered effectively meets customer needs and outcomes and that the Council resolves the root causes of customer contact and complaints Outcome 7 Increased awareness of the City Council’s services Outcome 8 Increased customer and staff satisfaction.

To achieve these outcomes a set of design principles has been established to give direction to how the organisation and services are changed. The principles have been agreed by the Programme Board and are listed below: 1. Put our customers at the heart of the solution

2. Provide a consistent identity across all Council services

3. Design the organisation of customer services around customer needs; not internal structures

4. Maximise access to all services according to customer need, using both direct and indirect access to services

5. Deal with simple enquiries at the first point of contact; handle more technical enquiries through second response teams; and focus on delivering services directly through our specialists

6. Use customer knowledge to deliver services “right first time” and complete more transactions at the first point of contact

7. Actively predict customer needs and preferences to offer both a reactive service that has the capacity to meet demand; and a proactive service that reduces demand by pre-empting service delivery

8. Tailor the availability and location of services according to different customer needs and preferences

9. Create a welcoming and safe physical environment in our local offices that offer services to customers

10. Develop a corporate infrastructure for providing access to and information about services; and for managing the completion of customer requests

11. Set and enforce standards for the common aspects of customer service delivery corporately; and set standards for the specialist aspects of service delivery within directorates

12. Set a minimum quality standard that all customers can expect from the Council, and encourage specialist services to exceed this; where in doing so they can improve customer satisfaction and outcomes above the corporate baseline

13. Create a professional standard for customer services, through which the skills and competencies of our staff can be consistently developed

14. Work with partner organisations to provide a more comprehensive service to customers, meeting their broader needs and outcomes

15. Develop our Customer First solution to provide a flexible infrastructure that will support changes in customer, organisation and legislative requirements over the next 10 years

These have underpinned all of the design activity throughout the Common Design, and the outputs from the Customer First programme have been validated against them at the key decision points.

2.3 Future Operating Model

Background

The original Customer First full business case and future operating model was signed off by the Programme Board in March 2007 and ratified by the Cabinet Procurement Committee in April 2007. This model is described in the Common Design Report through:

Key Design Features – highlighting the How Customer Insight informs How the Council interacts  1. service design & delivery 2. with customers significant areas of design that will transform how the Council interacts with Customer OneOne NumberNumber Customer Service Insight Service delivery its customers across all services and Web channels Business TextText Single view of the customer PaperPaper 3.

 Processes – articulating the processes r Managing o t i

s Kiosk customer

i Kiosk st nd within Customer Insight, Customer V 1 2 Specialist services Interaction and Service Management FF--22--FF

FaxFax Customer focused culture Citizen Customer focused culture  Organisation – the structure of the eMaileMail Customer service standards Customer Services organisation Customer service standards EndEnd-to-to-end-end service service tracking tracking  Change Management – how the programme proposes to manage change

 Technology – the application and infrastructure architecture

 Performance and Reporting – how customer service will manage performance and quality of its service

 Property – the proposed property portfolio for the contact centre and hub model

Key Customer First Design Features  A common approach to interacting with customers – a customer interaction process has been designed which is independent of individual services and channels so that it can be applied to any service within the Council. This means that a wide range of services can be delivered through a single point of access and customers get the same outcome regardless of the service/ channel they choose

 A common approach to managing customer services – creating a single city-wide management function across all customer services that actively manages performance and capacity to meet customer demand across all channels

 Customer Insight capability – introducing the new capability for the Council to develop a deep understanding of customers needs and preferences, convert this into insight and use this insight to shape the way it designs and delivers services in the future

 Personalised customer relationship with the Council – creating a single customer account across all channels, consolidating the Council’s knowledge of individual customers. This means that a customer can update his or her details in a single interaction. It enables the Council to reuse the customer data when the customer applies for a new service, saving time and repetition for the customer

 Knowledge management – providing staff with the information and systems that that will guide and equip them to be able to identify the customer’s real need, determine if that need can be fulfilled by the council, assess whether the customer is eligible to receive the service and if that service is available. As customers are not skilled or trained in Council processes and systems Version 1.7 Page 11 of 67

knowledge will be embedded into the self-service channels to enable channel shift to be achieved

 Graded response model – with three staff response levels interacting with customers: 1st Response, 2nd Response and Specialist Response. This will enable the staff with the right skill set to be matched to the complexity of each customer’s enquiry

 End-to-end view of service delivery – whereby actions arising from initial customer contacts will be assigned within the Council, together with a target date for completion. As actions are taken, the status of each required next step will be updated by the Council. Using the reference number provided, customers can contact the Council (including via self service channels) to view the status of their interaction. This will enable the Council to actively monitor its performance and drive excellence from the point of enquiry through to delivery of services

 Channel integration – all channels will work together by providing a choice to the customer of which channel(s) to use, and by making it possible to move seamlessly from one channel to another. For example customers will be able to start an interaction with the Contact Centre and complete it on the web.

 Access strategy and design – built around making access across all channels as simple as possible for customers’ new and existing requirements supported by the graded response model

 Channel migration – achieved through changing the preferred channel of a significant proportion of the Council’s customer base by improving the functionality of self-service and empowering customers to determine how and when they interact with the Council

3. Transformation

3.1 Current Situation

Based on a recent Mori poll, the Council’s customers, citizens, businesses, tourists and partners have only slightly better than a 50:50 chance of being satisfied with the service they require, with an overall 59% satisfaction level. Best performing Councils in the UK have driven this figure to over 80%. There is therefore clear scope for significant improvement in the way Birmingham delivers services. The Customer First team conducted an in depth review of Council services to chart a way forward, which identified that:

 The Council manages 30.3 million customer interactions annually of which around 13.1 million are concerned with those aspects of customer service that are in the scope of Customer First. The remainder are largely visits to libraries, museums, sports and leisure centres and other specialist activities

 There are currently 32 neighbourhood offices offering face to face services to customers

 The Council’s customers have the choice of over 450 published telephone numbers with which to contact the Council

 The Council has 11 post rooms

 36% of the calls to the Council’s published numbers in the telephone book remain unanswered and on 116 of the published lines less than half of the calls are answered. On 18% of the Council’s phone lines over 80% of external incoming calls are abandoned. This means that at best only two thirds of the Council’s customers get through and at worst only a fifth of them get through when they call

 The Council currently has over 90 web sites with differing brands, style, services and domain names. Based on the data collected, the Council does not perform well in relation to the capabilities set out in the Future Operating Model that are needed to deliver the customer service outcomes that the City wants to achieve.

Set against this current performance the Council's Business Transformation vision sets out what the Council wants to achieve over the next five years:

 Customers saying they are satisfied or very satisfied with Birmingham services in the top 10% of all local authorities

 Staff saying they are satisfied or very satisfied with working for Birmingham in the top 10% of all UK local authorities

 The number of queries/requests that are resolved or actioned at the first point of contact in the top 10% of all UK local authorities

 The Council will achieve a 4-star CPA rating

 To achieve a 15% productivity gain compared to the 2004 baseline

 100% of service requests and service tracking available on a personalised basis through the customer's choice of channel

 75% of all service KPIs in the top 10% of UK local authorities

3.2 Need for Change

There key driver for change is to improve customer satisfaction from a current figure of 59% to a target of 85% which will be in the upper quartile for all local authorities in the UK. The MORI analysis also provided insight into the drivers of customer satisfaction and these have been defined as:

o Delivery: delivering what was promised and dealing with any problems;

o Timeliness: the ease of contacting the service and getting an immediate response without passing it on;

o Information: accurate, comprehensive information provided and customers are kept informed of progress;

o Professionalism: competent staff and customers being treated fairly; and

o Staff Attitude: friendly, polite staff sympathetic to customer needs. The Customer First programme will directly impact each of these five dimensions. Delivery Delivery expectations will be clearly set with customers so that there is no ambiguity over what the next steps are and when these will be delivered. End-to-end service tracking will enable Customer First to be pro-active in following up with the service delivery agents and informing the customer of any delays while greater visibility of performance can be used to drive continuous improvement. Timeliness True multi-channel access to services means that customers have greater choice on how they access the Council and when. Self service will be available 24/7 and there will be increased opening hours for the contact centre and some face-to-face access points. The graded response model, staff training and knowledge tools will enable ‘right first time’ responses for customers and achieve ‘one and done’ resolution of customer contacts without the need for the customer to be transferred to the specialist service. Information Information about services will be accurate, maintained and relevant to customers and the knowledge tools will ensure that this is easily accessible. End-to-end status tracking means that customers can easily see the progress of their query from the point it was raised through to successful service delivery. This information will be available through all channels so the customer can be fully informed whether they choose to use self service or speak directly to Customer First staff. Professionalism All staff will be appropriately skilled through relevant training in the systems and tools provided by customer first. This will enable them to deal efficiently and effectively with customer queries. Staff in 2nd response will have service specific skills and appropriate experience to ensure more complex queries can be successfully completed within a single interaction with Customer First. Staff Attitude All front line Customer First staff will undertake training towards qualifications from the Institute of Customer Service. There will be continuous performance management of staff including

listening to sample customer interactions to identify any development needs and ensure that staff exhibit the correct behaviours and attitude at all times. Customer satisfaction will be regularly tested and reviewed to identify where improvements in any of these dimensions can be made. This will be used in conjunction with Customer Insight data to match end-to-end service quality with customer needs and deliver a truly customer focused organisation as a result. To generate financial benefits By organising ourselves differently to meet each of these customer requirements and achieve the improved customer satisfaction identified, we will be able to deliver significant financial benefits that will cover the costs of the Customer First programme. Having completed an in depth analysis of the current level of provision, the Customer First team has identified cashable benefits of £197.4 million over 10 years.

3.3 Consequences of Inaction

If the Council does not transform customer services, its vision will not be achieved. Inaction will mean that more than 117,000 telephone calls from customers per month will remain unanswered causing frustration, complaints and unnecessary calls to Members about Council services. In financial terms the Council will lose the benefit of over £3.4million per month that can be gained through the introduction of the improved operating model. Looking at this from the viewpoint of the various stakeholders, this will impact:

 Citizens: From a citizen perspective the Council will continue to be difficult to deal with. At worst this may cause critical interactions to be lost or be poorly managed leaving the Council open to criticism that it fails in its duty of care

 Businesses: From a business perspective, new companies either choosing to invest in the area or expand will require a Council that is easy to deal with. Businesses may be dissuaded from investing in the area

 Members: Members will be concerned about under performance of the Council against its peer group. This detracts from the Council’s image and may also affect the Council’s ability to attract funds

 Employees: In the Council’s employee survey conducted in 2005 the Council found that a high number of Council staff:

o were motivated to work for the Council as a consequence of providing direct services to the Council

o were increasing frustrated as customer facing time was being lost to administrative and internal duties Inaction will only exacerbate these frustrations.

 Government: From a government perspective the Council will fail to achieve the key lines of enquiry that determine success in the BVPI and CPA targets.

3.4 Benefits

The principal benefit will be improved customer satisfaction, rising from the current level of 59% to 85% overall and 81% for the face-to-face services. This will be achieved through improvements to delivery, timeliness, information, professionalism and staff attitude as described in section 3.2.

3.4.1 Financial Benefit Summary The re-organisation and investment required to deliver the improvement in customer satisfaction will generate financial benefits sufficient to recover the costs of the programme. This will be achieved by the following means:

 Channel shift - customers use more convenient ways of contacting the Council which are also lower cost for the Council to provide

 Volume reduction - contacts from customers can be decreased by removing the reason for the contact in the first place, which generally means “getting it right first time” and proactively keeping customers informed

 Improved productivity - increased efficiency can be achieved by improving the work environment and supporting tools

 Efficiencies for case/job delivery - getting the initial contact with the customer right can enable increased efficiencies in the subsequent case/job delivery

From a financial perspective the Customer First programme is expected to deliver £321million of benefits over 10 years, of which £197.4 million is cashable.

The financial benefits come from four benefit levers:

 £150.7 million comes from encouraging customers to use more efficient methods for accessing Council’s services. A majority of the 13.1 million customer interactions are currently managed through face to face or facilitated channels. The programme will provide attractive self service channels and pro-actively manage the move of demand from high cost to low cost channels. It will also reduce current demand by removing unnecessary multiple contact and tackling the root causes of current failure demand. This also includes customer services efficiencies though the contact centre and face to face channels. Professional 1st and 2nd response staff working with common processes and standards will provide the opportunity to drive up customer facing service efficiencies and gain economies of scale. Of this, £122.0 million is cashable and £28.7 million is non-cashable.

 £118.8 million comes from improving the Council’s services. A combination of improved systems and processes will enable the Council to deliver a more integrated service, improving both quality of service for the customer and efficiency for the Council. This will be comprised of £23.8 million in cashable benefits and £95.0 million non-cashable. Service delivery efficiencies will be driven by:

o Better data so that the operational service staff are provided with correct information to enable them to deliver the service right first time

o More effective targeting of service investment based on a deeper understanding of what matters most to the customer

o A single view and record of the customer to remove duplicate processing

o Joined up and shared service delivery so that better use is made of Council assets and resources

o End-to-end process management and improved scheduling of resources The result will be to reduce demand as more services are delivered ‘right first time at the right time’ and fewer contacts are required to follow up on late services or to correct errors.

 £27.6 million comes from improved Customer Insight and Communications to customers:

o Better understanding customers’ needs and preferences will enable the Council to develop and deliver more focused services, and also drive the take-up of revenue creating services, such as increasing citizen’s moderate exercise

o Having a consistent process for communicating to customers, and the ability to share customer information, surveys, collateral and communications across Services will reduce the cost of customer communication

 £24.0 million comes from other improvements such as:

o Increasing the Formula Grant (a grant from central government, broadly based on the number of citizens) due to having a better understanding of the City’s demographics

o Not having to run and support the current systems supporting interactions with customers. For example in Rollout 1: NOSSII & NAISS systems (used in Neighbourhood offices), Homeless, 3Cs, Frontline. Other systems being evaluated include: Home Options, Telephone Debt Advice Team, Community Legal Services, CATERING, Benefits Advice Team Home Visits, Supporting People, Phoenix Services, IMAX, NAB Notice Board, Adviser Performance, Center Point Feedback Management System (RESPOND), CCMS, Mandoforms, WMIP. A summary of the cashable and non cashable benefit figures across the four benefit levers is shown below:

140 Non-cashable 120 Cashable r a

e 100 y

, t i f e

n 60 e B

- Front-office Case/job delivery Insight & Other communications

3.4.2 Benefits Validation during Common Design During Common Design the financial benefits included in the original FBC were fully documented, using Benefits Cards such as the one shown below. Each benefit has been discussed and agreed with the appropriate budget holders in one of 40 Budget Areas. This represents an increase on the 28 Budget Areas originally identified by the Board at the start of Common Design. In exceptional cases where it has not been possible to reach agreement with budget holders the different views have been documented, and the benefits have been escalated to the Programme Board for resolution.

Benefit Cards will be calculated from the Validated Information

Benefit Card: Efficiency Savings - Adult Services

Status: 1st draft, based on Service Review data and FBC assumptions Directorate: Adult Services DirectorateDirectorate and Budget area: Adult Services AnnualAnnual && 1010 Benefit, £ m budget area Over 10 years Annual year benefits budget area Cashable Non-cashable Total Cashable Non-cashable Total year benefits 18.5 15.5 34.0 2.6 2.1 4.7

Financial benefit Drivers

Benefit driver 1 - channel migration

In scope FTEs, by channel EMAIL Out & about POST Self Service TELE VISIT Total Current 14 22 15 - 131 16 198 Future 2 22 12 5 110 16 166 DetailsDetails forfor thethe 44 The opportunity for customers to use more convenient, and lower cost, channels has been assessed Service by Service; and are summarised by Budget Area. The future FTE numbers are before the impact from the other benefit drivers benefitbenefitbenefitbenefit drivers:drivers: drivers:drivers: Benefit driver 2 - volume reduction Reduction in volume, by interaction type Make Receive Service Provide info Receive info 3Cs Make booking Assessment Total •1.ChannelChannel migration migration appointment payment delivery •1.ChannelChannel migration migration 18% 19% 18% 19% 20% 19% 20% 20% 19% The impact on contact volumes has been assessed Service by Service; and are summarised by Budget Area. The volumes will be reduced through: identification, and addressing, •2.VolumeVolume reduction reduction the root causes of high-volume interactions; pro-actively updating customers on progress; implementing a closed-loop process that ensures that work is done as agreed •2.VolumeVolume reduction reduction Benefit driver 3 - efficiency increase in customer facing resources

Increase in efficiency, by interaction type Make Receive Service Provide info Receive info 3Cs Make booking Assessment Total •3.•3.CustomerCustomerCustomerCustomer--facingfacing--facingfacing appointment payment delivery 19% 12% 21% 10% 25% 12% 25% 20% 14% The opportunity for locating additional customer-interaction processes in a contact centre or hubs/spokes has been assessed Service by Service; and the impact is summarised by efficiencyefficiencyefficiencyefficiency increaseincrease increaseincrease Budget Area Benefit driver 4 - case/job delivery efficiency increase

Joined-up and shared non-customer-facing Increased accuracy from better data End-2-end more efficient process •4.•4.Case/jobCase/jobCase/jobCase/job--deliverydelivery--deliverydelivery resourcing 0.4% 1.4% 0.0% Annual & 10 Having a common “front desk” for interactions with customers will ensure that complete, accurate and relevant information is captured and available to all relevant Services. This Annual & 10 efficiencyefficiencyefficiencyefficiency increaseincrease increaseincrease will enable efficiencies in case/job delivery, and enable more joined-up cross-Service working. This has been assessed Service by Service, and is summarised by Budget Area Assumptions yearyear benefits,benefits, Current FTEs (excluding schools) Within scope of CF, by activity-type Case/ Job Make Receive Service Out of scope* Grand total Provide info Receive info 3Cs Make booking Assessment Delivery appointment payment delivery includingincluding 35 41 3 2 6 106 0 6 - 4,047 4,245 The FTE numbers are assessed Service by Service Total employment costs, £ k per annum * i.e. visits to Libraries/ Museums/ Sport/ Leisure cashable/noncashable/non-- Customer facing, in scope Case/job delivery Key assumptions: 33.3 30.0 Key assumptions: This summarises the average total cost by Service by type of interaction cashablecashable && byby Implementation starts Implementation ends ••FTEsFTEs 2009 Q3 2010 Q4 Financial benefits programmeprogramme Benefits, £ k ••TotalTotal employmentemployment ££ Customer-facing Case/job delivery Total Cashable Non-cashable Cashable Non-cashable Cashable Non-cashable Total areaarea Annual 2,390 136 219 1,967 2,608 2,103 4,711 ••ImplementationImplementation datesdates Over 10 years 16,935 963 1,612 14,505 18,546 15,468 34,014 Sign-off

Role Name Signature

Identification Benefit Lead David Rothwell Work stream Lead Tony Maile NamesNames && Validation Programme SRO Paul Higgins

Adult Services budget holder - BCC budget holder TBC signaturessignatures Adult Services budget holder - Recognition BCC budget holder 10 TBC

The 40 benefit cards are further assigned into four groups: - Group 1 - Service Budget Areas – consisting of 28 cards [19 validated by budget holder, 3 validated by Programme Board, 5 being finalised, 1 out of scope]. - Group 2 - Central or Corporate - Contact Centre & Revenue Related – consisting of 6 cards. - Group 3 - Cross Council – consisting of 5 cards. - Group 4 – Formula Grant – consisting of 1 card.

The graph below summarises the cashable benefits, their sign off status across the three groups:

For each of these benefits cards, the team have been through a process to review and challenge the benefits cards with the relevant senior council officers. The key steps in this process have been:-

 Baseline Agreed – agree the underlying metrics upon which the benefits are based with the service area representatives.

 Benefits Review – detailed review of the proposed design and how it will enable the benefits outlined in the benefits card.

 Finalising Benefits Card – resolution of concerns and issues arising from the Benefits Review.

 Validated Benefits Card – benefits card agreed either by the service area budget holder, Senior Responsible Officer (SRO) or Programme Board.  Budget Adjustment Signed Off – precise amount and timing of budget adjustment signed off by budget holder.

The individual card approvers, status and cashable benefits are shown in the table below. The status column refers to the stage in the process described above. Where a benefits card is marked as Validated (*), it signifies that the benefits card has been validated by escalation to the Programme Board, and is not necessarily accepted by the Budget Holder.:

Cashable Benefit Card Budget Area Status benefit, 10 year, Reviewer/ Approver £ m

1. Service Budget Areas Older Adults Glynis Hovell Finalising 4.6 Younger Adults Lesley Heale Finalising 0.7 Regulatory Services - Licensing Pete Barrow, Validated 0.3 Regulatory Services - Environmental Health Gavin Tringham, Validated 0.1 Regulatory Services - Registrars David Rees Validated 0.0 Regulatory Services - Trading Standards Chris Neville Out of scope 0.0 CYP&F Cheryl Hopkins Validated 3.1 Highways and Parking Neil Dancer Validated (*) 2.3 Version 1.7 Page 19 of 67

Cashable Benefit Card Budget Area Status benefit, 10 year, Reviewer/ Approver £ m

Planning and regeneration Jackie Culliford Validated 1.0 Waste Management Kevin Mitchell Validated 3.0 Constituencies - Community/Play Jan Kimber Validated 0.0 Constituencies - Engineers/Highways Gill Taylor Validated 0.0 Constituencies - Libraries Adnan Saif Validated 0.4 Chris Jordan and Constituencies - Neighbourhood Offices Validated (*) 7.3 Lesley Ariss Constituencies - Parks/Grounds Robin Bryant Validated 0.2 Constituencies - Sport Dave Ellis Validated 0.5 Core Local Services - Markets Matt Kelly Validated 0.0 Housing - Housing Management Helen Marson Finalising 11.7 Housing - Repairs and Investment Bob Brown Finalising 5.2 Policy and Delivery - Blended Services Paul Higgins Validated 0.0 Policy and Delivery - Telephony Steve Glaze Validated 0.3 Benefits Chris Gibbs Validated 6.8 Revenues & Payments Chris Gibbs Validated 10.5 Recruitment Bill Fletcher Finalising 0.4 Including seat costs @ 9% of salary Paul Higgins Validated 4.7 Each Release has 8.25 years of benefit Paul Higgins Validated 7.7 Reduction in management overhead Paul Higgins Validated 1.8 Revised Rollout Plan (i.e. 5 ROs) Paul Higgins Validated -0.7 Service Budget Card Holders Total 71.9

2. Central - Contact Centre & Revenue Related Current systems Paul Higgins Validated 1.9 Single customer record Chris Gibbs Validated (*) 5.5 CC Operational Cost Paul Higgins Validated 12.0 Contact centre - impact of volume changes Paul Higgins Validated 6.5 30% contact volume reduction Paul Higgins Validated 8.1 Increased channel shift Paul Higgins Validated 5.2 Contact Centre & Revenue Related Total 39.2

3. Cross Council Manage Customer Communications Deborah Davis Validated 7.2 Improved Customer Insight Programme Board Validated 20.4 Cross-Council case/job delivery Programme Board Validated 23.8 Increase proportion of Service Review within Programme Board Validated 4.5 scope Increase proportion of non-Service-Review Programme Board Validated 13.8 within scope Cross Council Total 69.7

4. Formula Grant Increase in Formula Grant Paul Dransfield Finalising 16.6 Formula Grant Total 16.6

Overall Total 197.4

The approach for each of these groups of benefit cards is explained in more detail below.

Group 1 – Benefit Cards directly attributable to Service Area based budget holder Version 1.7 Page 20 of 67

This group of benefit cards have been discussed in detail with the relevant service areas to: validate the original baseline and translate the Common Design and CF Solution into cashable benefit targets over 10 years. In most cases the programme has been able to reach agreement concerning the target level of cashable savings Customer First will enable. These have then been confirmed with a review by directorate of all relevant benefits cards. Where the programme team have been unable to reach agreement with the service area, this has been escalated to the Programme Board, and the validation has taken place at this level. The individual benefit cards provide details on assumptions and calculations.

Group 2 – Benefit Cards directly attributable to Corporate This group of benefit cards do not relate to Service Area budgets and have been discussed in detail with the relevant corporate management teams. These discussions have validated the original baseline and translated the Common Design and CF Solution into cashable benefit targets over 10 years. These benefits have also been subject to review and challenge with the Programme Board and Business Transformation Steering Group (BTSG) and Business Transformation Advisory Group (BTAG).

A summary of the assumptions underlying these Benefit Cards are shown below:

Group / Benefit Card Summary of Benefit Card Assumptions

Corporate - Contact Centre & Revenue Related Current systems The current CRM systems will no longer need to be supported The quick win focused on identifying fraudulent activity in Council Single customer record Tax single-person discount and unpaid rent and Council tax collections The cost of operating the Contact Centre, based on the bids from CC Operational Cost the short-listed suppliers, is less than the cost used in the model Contact centre - impact of volume Inclusion of the volume changes (15% telecom spike, then -15% changes to -20% reduction) Benchmarking studies – for example based on experience of 30% contact volume reduction Liverpool CC Increased switch to self-service from 36% to 38% (as discussed Increased channel shift in BTSG and the CF Programme Board). This is an additional target over the agreed target within Group 1 Benefit cards.

Group 3 – Benefit Cards potentially attributable to Cross Council benefit areas This group of benefit cards do not easily relate to Service Area budgets at this moment in time. They are likely to be apportioned to Service Areas as part of the realisation phase but further review work is needed to understand any: changes in scope, impact on ways of working and any relevant new baseline data. However it was felt that these benefits were worthy of including in the FBC but require a more thorough analysis of the risks associated with achieving them. To this end a risk analysis approach during Phase 4 has been agreed with the Programme Board which is summarised below. These benefits have also been subject to review and challenge by Business Transformation Steering Group and Business Transformation Advisory Group (BTAG). For each Cross Council benefit we will analyse the risks associated with achieving the specified benefit during Phase 4. These risks include:

 The basic premise or concept behind the benefit proves to be unfounded

 The baseline data that underpins proves to be incorrect

 The benefit will prove to be very difficult to baseline, achieve and realise

 The benefit area is unproven and untested; therefore the risk of failure is high.

Further analysis of risks and mitigation will continue through Phase 4. Activities will include:  Understanding the range of variability behind any risk item. For example if there is a high risk that the baseline data may be “incorrect”, we will look at how big a range this may represent.  Looking further at what the impacts are if the risk does occur. For example does it have impacts on staffing levels of the contact centre?  What mitigation actions could we take to maximise the achievement of benefits? For example to achieve case and job delivery efficiencies there may need to be changes to operating practices and re-organisation. To mitigate that risk we would look to support improved governance, performance management and training within the Service Area.  Other risks factors to be looked at may concern financial practices such as budget allocation, cross charging and external funding.

Through a detailed risk analysis process we will be able to better understand the potential risks and also create a more detailed set of mitigating actions to reduce the probability of them occurring and thereby increase the chance of realising the benefit. For example carrying out more baseline data gathering to increase confidence in the baseline, helping management understand what changes may be needed to service area structures.

Using this approach with the relevant Service Area stakeholders the programme will seek to maximise the potential cashable benefits from this final group of benefit cards during Realisation.

A summary of the assumptions underlying these Benefit Cards are shown below:

Cross Council – Risk Based Approach Leveraging insight, collateral and information-based Manage Customer Communications communications to customers cross-Council. c£10m pa spend. Improved service delivery effectiveness based on using Customer Insight information about customers. Assumptions based on work to date, this is expected to provide benefits of > £ 3m cashable per annum. For example: The Single Customer Record benefit, £ Improved Customer Insight 5.7m for a year, can be continued for 3 additional years (due to the timing of the recent Formula Grant assessment); The Moderate Exercise Quick Win has estimated benefits of £8.3m; Recycling Quick Win; Increased take-up of benefits by pensioners (as discussed in BTSG and the CF Programme Board). Enabling efficiencies through: Increased accuracy from better data; End-2-end more efficient process; Joined-up and shared Cross-Council case/job delivery non-customer-facing resourcing. A 2.5% efficiency improvement, of which 20% is cashable i.e. 0.5% (as discussed in BTSG and the CF Programme Board). By bringing more assessments and bookings into scope (for example anti-social behaviour reporting, giving information on Increase proportion of Service grass verges, pest control – difference between a rat and a Review within scope mouse, can I light a bonfire?...) we can leverage the Customer First investment . A 6% increase in scope (as discussed in BTSG and the CF Programme Board). Version 1.7 Page 22 of 67

An additional 5% of the Council being in scope of CF (for example Blue Badges, school admissions, housing allocations, rent Increase proportion of non-Service- arrears, parking) with a 30% efficiency improvement and with Review within scope 20% cashable (as discussed in BTSG and the CF Programme Board).

Group 4 – Benefit Card for increased Formula Grant

This benefit is proposed to be achieved through Customer Insight increasing the accuracy of the 2011 census, and thus increasing the grants from central government based on this data. This has been discussed with BTSG and the CF Programme Board. However, there remains a risk associated with delivery of this benefit as it will not be clear how the Formula Grant or associated damping factor will be applied by Central Government following the 2011 Census.

The modelled assumption is a 1.015 multiplier to:

* PROJECTED POPULATION AGED 13 TO 19 * PROJECTED POPULATION AGED 0-17 * HOUSEHOLD AND SUPORTED RESIDENTS AGED 65 YEARS AND OVER * PROJECTED POPULATION AGED 18-64 * PROJECTED POPULATION and a 0.985 (=1/1.015) multiplier to:

* DISTRICT SERVICES EPCS DENSITY TOP-UP * COUNTY SERVICES EPCS DENSITY TOP-UP.

3.4.3 Post-Common-Design Benefits-Related Activities After Common Design, there are 2 different benefits-related activities:

1. There will be 5 rollouts of the Customer First solution. For each rollout, the related Benefit Cards will be reviewed/revised and agreed with the Budget Holder, in light of:  The detailed solution that will be implemented  Any changes to the Service’s activities since the validation of the Benefit Card  Risk analysis of Cross Council benefit cards

2. For the Service in each rollout, and also for the Contact Centre and hubs, the budget will need to be adjusted. The adjustment process is described in the Benefits Realisation Plan, which is summarised in section 6.4.

3.4.4 Significant Changes since FBC

There are 3 reasons for the financial benefits to have changed since the FBC, each of which will be discussed in detail below. The reasons are: 1. Changes in the organisation scope of Customer First since the FBC 2. Variances between detailed, Service-by-Service assumptions developed in Common Design and the top-down assumptions used in the FBC 3. Identification of additional benefits

Changes in the organisation scope of Customer First since the FBC A key input to the FBC was the Service Review data based on a cross-Council exercise which detailed all interactions with customers. During Common Design, a more detailed organisation scope of Customer First has been defined which is focused on the 1st – and 2nd-level responses with customers and is less than the organisation scope described by the Service Review. Reducing the Customer First organisation scope has directly reduced the financial benefits.

Variances between detailed, Service-by-Service and top-down assumptions The FBC used top-down assumptions for channel shift, efficiency improvements, volume change, and enablement of case/job delivery efficiencies. These assumptions were discussed with, and approved by, the Programme Board. During Common Design, these assumptions were reviewed and revised, Service by Service, based on both the details of the activities of the Service and on the solution design.

Identification of additional benefits The table and chart below highlight changes by benefit area between the FBC and the Revised FBC, including additional benefits that have been identified during Common Design.

Cashable benefits, 10 year, £ m FBC Revised FBC Variance

Adults 18.8 5.2 -13.6 Chief Execs 12.8 0.5 -12.3 CYP&F 16.1 3.1 -13.0 Development 20.5 6.3 -14.2 Housing - constituencies 32.2 8.6 -23.6 Housing - housing 28.3 16.9 -11.4 Policy and Delivery 0.7 0.5 -0.2 Resources 24.7 17.3 -7.4 Cross Council directly linked to budget area cards - 13.5 13.5 Corporate - Contact Centre & Revenue Related 17.8 55.8 38.0 Cross Council - 69.6 69.6 171.8 197.4 25.4

4. Delivery Approach

4.1 Objectives The primary objective of the Customer First programme is to deliver its vision and outcomes through the implementation of the Future Operating Model. When implementation is complete, the programme will have delivered:  1st and 2nd Response service across all BCC services and channels, with the exception of services related to schools and partner organisations

 a new technology solution including CRM, web portal, telephony and document management

 a transformed face-to-face channel through the development of Community Hubs, in co- operation with the Working For the Future programme

In determining the delivery approach, the objective was to deploy services in the initial phases which would support an early launch of ‘One Number’ and ‘One Account’, enable rapid realisation of benefits, and balance speed of programme delivery against overall programme risk. Given the approach selected, it became important also to align the roll-outs with the design of the 2nd Response organisation.

4.2 Implementation Approach

4.2.1 Overall Approach

The programme will be delivered using a phased approach, deploying Council services into the operating model in five phases over a four year period from 2008 to early 2012. This approach was selected from among three phased implementation options:

 Roll out 1st response and 2nd response separately, beginning with 1st response for each service

 Roll out 1st response and 2nd response separately, beginning with 1st response for each service, and accelerate delivery through increased parallel activity in later rollouts

 Roll out 1st response and 2nd response simultaneously for each service

The Customer First Programme Board considered these options and agreed on 4th September 2007 to the approach of bringing BCC services into the operating model with 1st and 2nd response simultaneously. This option differed from the approach in the original FBC which was based around 1st response followed by 2nd response, but was seen to provide the following key advantages:

 it delivers the Customer First vision earliest

 it allows each service to transition to the operating model in a single step without an interim solution required for contact hand offs to the Directorates during the period between separate 1st and 2nd Response rollouts

Based on this decision the implementation plan was developed with services in the first rollout and indicative services in the remaining rollouts also agreed by the Programme Board on the 4th September. The services in the remaining rollouts were validated during Physical Design with:

 Output from the Customer insight survey of citizens and businesses  Directorates via liaison with service change leads  Service transformation programmes, Adults, CYP&F and Housing Version 1.7 Page 25 of 67

 The organisation design of 2nd Response and were agreed by the Programme Board on 22nd November 2007.

The implementation plan was revised to combine rollouts 5 and 6 to align with the Revised FBC resource and cost model on 4th December 2007, and approved by the Customer First Senior Responsible Owner. The plan was subsequently adjusted in April 2008 to reflect the revised programme timelines

The implementation plan is presented in three sections:

 the implementation of 1st and 2nd response across the five rollouts. Each rollout will deploy agreed services across the contact centre, self service (rollouts 1 to 4) and face-to-face locations  the development of a property portfolio to deliver face-to-face facilities at new Community Hubs, plus essential improvements to existing Neighbourhood offices  a benefits realisation programme to reinforce the delivery of benefits

In line with the Transformation Methodology, Rollout 1 incorporates two main sub-phases: “Realisation” to build the solution and “Transition” to implement the solution across the three channels and into the new Customer Services organisation. The Rollout 1 Realisation phase incorporates the Common Build, during which the elements of the operating model that are common to all services will be developed. The first rollout also includes limited service-specific variations such as reports, interfaces and eForms for the services deployed in this phase.

Each subsequent roll-out is structured into three phases: Detailed Design of the service-specific variations for the services in that rollout, Realisation to build the service variations and Transition of the solution across the three channels.

The programme will be led by the Council, with the programme team jointly resourced by BCC and Service Birmingham staff, working with each service area in Rollout 1 to establish how the deployment team will be resourced from the service areas. Service Birmingham will transfer knowledge and skills to the BCC programme staff so that later rollouts, together with benefit realisation and continuous improvement projects, are led and staffed with BCC resource with minimal support from Service Birmingham.

Early transition of services will also be defined during the Rollout 1 Realisation phase, in particular opportunities to lift services into the Customer First contact centre before completing the Rollout 1 and Rollout 2 Transition phases. The focus will be on early transition of services planned for the following rollout, so Rollout 1 and 2 services during Rollout 1 Realisation, Rollout 3 services during Rollout 2 Realisation etc. The primary criteria for early transition will be to build momentum, gain understanding of the service and obtain early buy-in. Early transition will not affect the timing of the overall implementation plan.

An overview of the implementation plan is illustrated in the following diagram. A more detailed plan is provided in Appendix 8.4 under the Programme Plan.

Implementation Plan

ROLL_OUT Rollout 1 1 Rollout 2 2 Rollout 3 3 Rollout 4 4 Rollout 5 5

Realisation Detailed Realisation Detailed Realisation Detailed Realisation Detailed Realisation Common build Design R2 build Design R3 build Design R4 build Design R5 build R1 build

C 2 4 1 Transition Transition 3 Transition Transition 5 CONTACT Transition to new new new new new services to services to services to services to Contact Centre H CENTRE Contract Contract Contract Contract Centre Centre Centre Centre A Launch Single Number

4 N 1 2 3 Transition Transition Transition SELF new Transition to new new services to services to SERVICE Self Service services to N Self Self Self channels Service Service Service E Launch One Account FACE 1 2 3 4 5 Transition to Transition Transition Transition Transition L TO FACE Neighbourhood new new new new services services services services Offices & to F2F to F2F to F2F st to F2F S 1 Community Hub locations locations locations locations

1 2 3 4 5 Transition to new Transition Transition Transition Transition new Customer new new new SERVICE services to services to services to services to Service Customer Customer Customer Customer OPERATIONS Organisation Service Org Service Org Service Org Service Org

Co-manage essential improvements to Neighbourhood Offices and other WFTF “Full” Hubs PROPERTY existing offices TRANSITION Co-manage implementation of 1st Interim Community Hub Interim Community Hubs #2 - N Launch 1st Community Hub

BENEFIT Consolidation & Continuous Improvement REALISATION Channel Shift Response Shift 1 Refers to the alignment with rollout # Planned Rollout go- live Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Calendar Quarters 3

4.2.2 Phasing by Service

Each rollout in the implementation plan deploys services that were analysed during Common Design using the criteria listed below, together with analysis of services that are currently delivered through established contact centres within the Council.

Implementation Evaluation Criteria Criteria Data

Benefit Volume, efficiency, potential degree of channel shift

Risk Transition and implementation risk

Cost IT integration cost and process complexity

Directorate Buy-in Stakeholder buy-in to Customer First vision

The services in the first rollout were agreed based on high weightings given to Directorate Buy-in and Risk. Rollout 1 therefore includes services that are currently delivered through established contact centres within the Council and with high levels of buy-in to the change. The services in the remaining rollouts were agreed based on a higher weighting given to Benefit. For Customer First the delivery of improved customer service outweighs realising purely financial benefits, so Benefit includes emphasis on early achievement of a high level of customer interactions brought into the operating model. The services in rollouts 2 to 5 were also aligned with the organisation design of 2nd Response, with the objective of minimising handoffs associated with related services.

Analysis by phase and response during Common Design indicated that interaction coverage will have reached 71% of customer interactions by the end of Rollout 2, supporting a decision to formally launch the One Number after this second phase.

An overview of the agreed services in the five rollouts is illustrated in the following table, including the alignment to 2nd Response organisation clusters across rollouts 2 to 5. A cluster is a collection of service areas, grouped according to customer need and to 2nd response advisor skills and knowledge, with the aim of reducing hand-offs in the customer journey.

Roll Out 1 Roll Out 2 Roll Out 3 Roll Out 4 Roll Out 5

Environment Family & Welfare & Leisure and Personal Home Business

Older Adults Highways Learning Housing Rents Play & Disabilities Development (Adults)

Benefits Highways – Mental Health Housing Needs Central Library Parking (Adults)

Housing Repairs Planning Occupational Housing Library Services Therapy (Adults) Allocations

Council Tax Sport & Leisure Physical Estate Museums & Disabilities Management Heritage (Adults)

Household Waste Commercial Domestic Community Licensing Management Waste Management Safety Management (Adults)

Recycling Parks Meals Direct Ward Support Markets (Adults)

Street Cleaning Housing – Adult Education Central Payment Business Rates Regeneration (Adults) & Pensions, Sundry Debtors

Blended Services Public Health Inclusion Cashiers Building (3Cs etc) Services Consultancy (Childrens)

NAIS Engineers Transforming Civic Catering Education (Childrens)

Switchboard Elections Specialist Services (Childrens)

Registrars

Bereavement Services

4.2.3 Phasing by Channel

The implementation plan incorporates a channel dimension to highlight channel specific transition activities. The services in each rollout will be deployed across the Contact Centre, Self Service and

Face to Face channels simultaneously, although not all changes can be deployed concurrently resulting in requirements for interim solutions to be developed for the early phases.

There are also channel specific drivers to the approach, namely the launch of the One Account and the first Interim Hub after Rollout 1 and the launch of the One Number after Rollout 2.

The deployment of Self Service across the first four rollouts will be achieved by ensuring that the services with high propensity for Self Service are incorporated in these initial phases.

Interim Face to Face locations will be required throughout the programme. The services in Rollout 1 will be deployed across the existing Neighbourhood offices to enable Face to Face interactions to be documented for services including Benefits and Council Tax. This will require essential improvements to be made to the Neighbourhood Offices to provide a Customer First “look and feel” and access to the new Face to Face service solution. In future Face to Face services will be delivered through a network of hubs throughout the city, replacing existing Neighbourhood offices with more comprehensive service outlets supported by convenient access points in libraries, leisure and community centres. The Working for the Future (WFTF) transformation programme has a complementary remit to provide a single portfolio of community-based, multi-functional properties alongside other strategic partners. Customer First face-to-face service points will be an integral part of these new properties in due course. All of the costs associated with the construction of Community Hubs and the refresh of Neighbourhood Offices will be included in the relevant Working for the Future business cases, and are therefore not included within this business case.

Although the deployment of services are aligned across the different channels, the detailed plan for each rollout will incorporate channel specific transition activities such as routing of calls into the contact centre and implementing new layouts for the Neighbourhood Offices.

4.3 Interim Solutions

The Common Design Report presents the end state vision for the programme. Interim solutions will be required across the organisation, property portfolio and technology elements of the solution as the programme transitions to this end state over the five rollouts.

4.3.1 Transition to new Organisation

To support the phased roll-out of services into the new customer services operating model, interim organisation structures will be developed. Key dependencies to the development of the interim structures are 1) the approval of the end-state organisation design and 2) the approval of the implementation plan.

The end state organisation design is also dependant on a number of decisions for consideration by the Customer First Programme Board and Cabinet. These decisions were reviewed in March 2008 by the Efficiently Managed Corporate Business (EMCB) Team, a subgroup of the Corporate Management Team (CMT). EMCB agreed to the approach being taken to organisation design by Customer First. The decisions are:  Ownership of the customer services organisation within BCC  Creation of a unified service management function  Partnership model for the Face to Face channel  Ownership of the Customer Insight Capability

The factors that will influence the interim organisation design structures are:

 The sequencing and timing of each service area implementation  Availability and timing of the property portfolio for the refurbished Neighbourhood Offices and new community hubs.

The implementation plan will drive the timescales for moving to the new organisation structure. We will therefore be revising the organisation structure to support the rollout of redesigned processes through the channels as each of the service areas comes ‘on line’.

More specifically, for the first rollout, the transition activities will include:  Developing the Customer Services organisation management structure  Confirming the organisation structure for face-to-face delivery  Staff and union consultation  Mapping and assessment of staff to the new organisation structure  Transition from existing contact centre staff structure to a new team structure model, where teams will work across a broader range of services  Transition of staff identified as 1st or 2nd response from Older Adults, Benefits, Housing Repairs, Household Waste Management, Council Tax , Environmental, Anti Social Behaviour, 3Cs , Corporate Recruitment, EDT, Homeworks/Houseproud, and OOHHC into the 1st and 2nd response organisation structure in the contact centre  Reorganisation of staff within the neighbourhood offices to accommodate the new organisation and processes  Transfer of staff from a number of neighbourhood offices and potentially from BCC directorates to the first Interim Hub

Before, during and immediately following migration, staff will be provided with information that helps them understand what is changing and why, and what they need to do differently. This information

Customer First Revised Full Business Case will be delivered by line management, supported by the Customer First programme. Training will be provided to show staff what they must do differently and to build understanding of the desired culture and behaviours.

4.3.2 Property Transition

In order to realise the Council’s vision for access to face-to-face services, to serve customers in new ways and to realise its new organisation structure, the Customer First programme aims to create a network of hubs across the city. However, Customer First cannot work in isolation from the other Transformation Programmes if the Council is to achieve another one of its objectives – that of rationalising its property portfolio.

In order therefore to achieve the best outcome for the Council, the property requirements of all of the BCC transformation programmes will need to be taken into account, and not just those of Customer First. The programme tasked with gathering programme requirements and creating a rationalised portfolio of properties for the Council -- Working for the Future – is not expected to complete its task until 2016, and new developments are unlikely to be available before 2012. The primary factor behind this timing is that the other programmes are not sufficiently advanced at this stage to provide detailed requirements within the same timeframe as Customer First.

Customer First must therefore either wait for up to 7 years from the time the new systems and processes go live to create the hub structure across the city, or adopt some kind of interim solution. Waiting to implement change in the face-to-face channel has not been considered to be a viable option. If the new systems and processes are to be implemented effectively, all three channels must change at the same time – call, click and visit. If any of the channels is excluded, then the recording of customer interactions will be ‘out of synch’ and the single view of the customer will be compromised. So, it was agreed at the time of the original FBC in April 2007 that some kind of interim solution would be required.

The implementation plan calls for an interim solution in two steps. One is to create the new hub structure in a way that realises at least part of the Customer First property vision at the lowest reasonable cost. In practice this means identifying and co-opting Council-owned or leased properties which are as near as possible to the ideal location and which can be made workable as hubs – even if not ideal – within the Customer First timetable.

Because it would not be possible to have a full set of interim hubs up-and-running by the first Customer First services to go live during Q2 2009, and because all the venues which customers visit for 1st and 2nd Response services must be ‘live’ at the same time as the other channels, a second interim step has been inserted to improve existing Neighbourhood Offices sufficiently to allow them to be used in new ways until the new interim hubs become available. Approval was given by the Property Cabinet Committee on 19th March 2008, for a business case to be developed for the Neighbourhood Office refresh.

The diagram below shows the timing of the two interim steps alongside the ‘full hub’ solution being delivered later by Working for the Future.

The CF 3-Step Property Solution

Common Design Phased ‘go live’ of CF Systems, Processes and Organisation

Essential Changes to Commission Interim Hubs # 2 - N Existing 1 Offices 2 3 Commission WFTF ‘Full’ Hubs Interim Hub #1 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

Step 1 – 1st interim hub and essential changes to existing offices

Step 2 – All remaining interim hubs

Step 3 – ‘Full’ hubs implemented on WFTF timescales

Gap between 1st and subsequent hubs is to allow time to evaluate and adapt

Steps 1 & 2 (but not 3) will need to be defined in Common (physical) Design

4.3.2.1 Interim Property Solution: Selecting and Implementing Interim Hubs The interim property solution has been developed jointly by the Customer First Property Team and Working for the Future. It is a documented proposal based on the preferred location, size and service mix developed by Customer First, combined with information provided by WFTF about property options. The result is a map showing proposed locations for each service point, with specific properties which may be suitable, along with descriptions of the preferred properties and a rationale to support the choice.

The information used by Customer First to develop its preferred location solution included:  customer survey results, particularly concerning channel preferences, service mix and propensity to travel  data from the Council, including footfall, methods of payment, types of services used by customer segment  socio-economic data The CF Property Team worked closely with the Customer Insight Team and their external data analysis and mapping experts to shape the analysis of data and presentation of results to support the delivery of the property solution. The information provided by WFTF included details of the existing portfolio, knowledge of current initiatives underway and other development opportunities available, with particular focus on opportunities for physical and social regeneration wherever practical. The solution was derived by mapping our ‘ideal’ property location, size and service mix against real properties and development opportunities to arrive at the compromise which appears best to meet our requirements as an interim solution. It does not include a business case to proceed with each component of the solution at this stage, only the proposal for the first Hub will be supported by an initial business case. Timing for implementation of the first hub is clear – it must be in place and ready to do business by the time the first rollout of new systems and processes goes live. The timetable for implementing Version 1.7 Page 32 of 67

Customer First Revised Full Business Case the next and subsequent hubs is not known and will not be known until business cases are written and approved for each one. Each hub is being managed as a separate project with its own business case and implementation plan. The length of time required to gain approval for and commission the buildings will vary depending on condition of the building, the nature of its current use, and a whole range of other factors. The number of interim hubs implemented will depend on the timing of WFTF full hubs and the viability of existing Neighbourhood Offices. Customer First will seek to implement only as may hubs on an interim basis as can be justified either financially or on the basis of service need until WFTF full hubs can be provided.

4.3.2.2 Interim Property Solution: Improvements to Existing Offices Because there is not time to create interim hubs in all locations across the city before services go live, existing customer service points will need to adopt new processes in their current premises.

To make that possible, some changes will be required. The kinds of change being considered fall into three categories, in order of priority:

 changes in lay-out and equipment required to enable the new systems and processes to be implemented effectively  changes intended to create a consistent brand image and signal that something is ‘new’  changes to improve the impression and experience for customers and staff The only customer service points involved are those in which the new CRM system is being implemented for use in a customer-facing environment. After a review of existing customer-facing services only neighbourhood offices and the refugee reception centre were considered for improvements, and individual surveys of those offices were commissioned to determine what changes could reasonably be carried out in each of the three areas listed above together with outline costs.

4.3.2.3 Property Costs and Benefits All property costs and benefits continue to be excluded from the Customer First FBC on the basis that they will be included in the wider cross-portfolio restructuring programme carried out within the WFTF Transformation Programme.

4.3.3 Access Strategy

Major milestones in the implementation plan include the launch of the ‘One Number’ and ‘One Account’. Interim solutions will exist after each of these milestones, as access to existing published numbers will need to be maintained and areas of the Council website concerned with services in future roll-outs will need to be supported until those services are deployed into Customer First.

Assisted Service Telephony Access

Before the launch of ‘One Number’ the existing contact numbers will remain for all services and additional numbers will be required for each new 2nd Response group. Existing numbers will, where possible, be routed to 1st Response. No existing numbers will be “retired” during this phase of the programme.

After the One Number launch the existing contact numbers will remain for all services and additional numbers will also be required for each new 2nd Response group. Existing numbers will, where possible, be routed through to the One Number and therefore to 1st Response. Existing numbers will be “retired” during this phase of the programme after the call volumes through these numbers become negligible after sufficient promotion of the One Number. Reports may need to be developed to monitor the call volumes.

A ‘0121’ number will be used as the single number, however a ‘311’ type short-digit number is still being explored as an option for the future.

Web Access

Access to the web will not be limited to those services in the phased roll-outs, so only those services which are deployed in early roll-outs will have a transformed web service. This will result in a mixed web experience for customers after Roll-out 1.

The Customer Personal Account and preferred contact method, e.g. email, SMS, will be added to the new Council Website.Personalised access and preferences will be limited to services in each rollout.

The interim access solutions raise a number of issues which will need to be managed in detail during transition to the One Number and new Council website:  Telephone numbers will actually increase in the medium term  Additional technology may be required for other channels (e.g. post, email and fax) during the transition  Web services already available will only be enabled through the current functionality until they are implemented as part of the phased rollout  Personalisation only affects those Customer First services available through the Web and not existing services, unless those services are brought into Customer First

4.3.4 Technology implications Two factors driving the need for interim technology solutions are (1) complexity and continuous change in the Council’s existing systems landscape and (2) the implementation design for Customer First. The systems landscape will not been frozen for the duration of the Customer First programme, and there are a number of developments to the landscape either in progress or planned within the timeline of the programme which will need to be catered for by a corresponding development in Customer First technology. The decision to implement the Customer First design in phases rather that all at once means, for example, that interfaces to systems which will be replaced during a later rollout must nevertheless be written. In order to contain costs, the Customer First team will seek to keep the amount of interim solutions to a minimum. Interim technology solutions will be required for Rollout 1 to support, by way of example:  Integration between the Customer First Web solution and other BCC online activities  Integration between the Web solution and BCC service delivery systems  The retirement of the Neighbourhood Office NOSS system  The deployment of LLPG (Local Land & Property Gazetteer) and its use by the CRM and Web solutions  The use of HR data from the HR solution (EPM programme) for recruitment  The use of a queuing solution in the Neighbourhood offices

For subsequent rollouts, any requirements for additional interim solutions will be assessed during the Detailed Design phase and where necessary solutions will be developed during Realisation. Version 1.7 Page 34 of 67

4.4 Meeting Business Transformation Targets

The 2007-2010 Council Plan outlines what the Council will do to deliver its vision for Birmingham as a city where people want to live, work and visit and businesses choose to invest. The Council Plan incorporates a number of strategic outcomes to support the vision and includes the following Business Transformation objectives to be achieved within 5 years:

 improved customer satisfaction with council services  improved staff satisfaction  more requests dealt with at first point of contact  improved rating in key performance measures  improved productivity  a choice of ways for everyone to contact the Council

The outcomes that the programme aims to achieve through transforming customer service, and the design principles that underpin how the Council wants to operate in the future align the programme’s vision for customer service with the Council’s transformation objectives.

The programme’s 8 strategic outcomes also align directly with the Council’s transformation objectives, with many supporting several objectives, as shown in the diagram below:

The Future Operating Model details a set of performance measures and targets against these outcomes which have been agreed with the Programme Board. To achieve these outcomes a set of design principles have been established to give direction to how the organisation and services are changed, and these are summarised in Section 2.2.

The Customer First programme has major dependencies with other programmes, as described in section 4.6, which will together transform the Council’s ways or working. These include the provision of new hubs in conjunction with Working for the Future and transforming end to end service delivery in Adults & Communities and Children, Young People & Families with their respective transformation programmes.

The key aim is to support the Council’s objective to improve the level of customer satisfaction. The programme target is to increase this from the current overall 59% to a level of 85%.

4.5 Stakeholders

The Customer First programme has identified the following key stakeholders and engaged them during the Common Design phase:

Stakeholder Operational Role CF Programme Role Programme Board Cllr Tilsley Cabinet Member, Deputy Leader Cabinet Sponsor Paul Dransfield Strategic Director, Resources CMT Sponsor Paul Higgins Assistant Director, Customer Services SRO Cheryl Hopkins Service Director, Strategy & Commissioning Senior User, Programme Board Helen Marson Assistant Director, Housing Senior User, Programme Board Glynis Hovell Senior Head of Service, Older Adults Senior User, Programme Board Lesley Ariss Acting Head of Community Initiatives Senior User, Service Change Lead, Programme Board Pam Dixon Programme Manager, Policy and Delivery Senior User

Stakeholder Operational Role CF Programme Role Chris Jordan Constituency Director Senior User, Programme Board Chris Gibbs Assistant Director, Revenues and Benefits Senior User, Programme Board Neil Dancer Chief Officer Highways Senior User, Programme Board Kevin Mitchell Head Of Fleet and Waste Management Senior User, Programme Board Gavin Tringham Head Of Environmental Health Senior User, Programme Board Debra Davies Corporate Communications Senior User, Programme Board Glyn Evans Assistant to the Chief Exec for Transformation Corporate Cllr Huxtable Scrutiny Member Elected Members Cllr Rudge Cabinet Member, Equalities and Human Resources Cabinet Member Cllr Gregory Cabinet Member, Transport and Street Services Cabinet Member Cllr Dow Chair - Overview and Scrutiny Cllr Anderson Cabinet Member, Adults and Communities Cabinet Member Cllr Ward Cabinet Member Cllr Lines Cabinet Member, Housing Cabinet Member Cllr Ayoub Khan Cabinet Member, Local Services To be confirmed Members affected by Hub implementations PEP Group Groups BTSG Consultation Trade Unions Consultation Overview and Scrutiny CMT

Stakeholder Operational Role CF Programme Role DMTs Constituency Chair Meetings Equal Continuing requirement to assess the needs of minority opportunities groups and customers with special needs Other Business Corporate Services, Working for the Future, Adults Dependencies Transformation &Communities, CYP&F, EPM, EIM Programmes

4.6 Associated Initiatives

The Customer First programme has continued to formally review the overlaps with other transformation programmes, in-flight projects aligned to Customer First and also projects not directly aligned to Customer First that will have an impact on the programme.

The key overlaps with the business transformation programmes are:  CST - The Corporate Services programme went live on October 29th2007, so Customer First will have to accommodate some of the decisions made by Corporate Services. The key overlaps are:

o Corporate Services have created processes for developing a “single view of the debtor” across its own and the Directorate operational computer systems. Customer First will own the strategic long term development of “single view of the customer” to share consistent customer information across the service areas.

o A centralised reporting centre is being developed to deliver new reports and provide analysis based on the Council’s key strategic goals. Customer First will need to align with the processes being developed for this centre.

o Corporate Services use a telephone and contact centre approach for payments and are also using other methods for payment at the point of service. Customer First will need to incorporate the Corporate Services payment channels when the new response services are available.

o Corporate Services has implemented a new project approval process which will be piloted by WFTF to seek approval for development of interim hubs and improvements to neighbourhood offices, introducing a further degree of uncertainty into the approval process

 WFTF - The Working for the Future programme will support Customer First to deliver interim hubs. Business cases are being developed that will support the requirements of the first hub and neighbourhood office improvements  EPM – Service Management within Customer First includes processes to support staff competencies, performance management and staff rostering. The dependency is the extent to which the designed processes may be interim, possibly replaced by the EPM programme or whether the HR processes developed by Customer First will be long term. Customer First have a requirement to engage closely with BCC HR to ensure the smooth transition of key areas of change

 EIM - The Excellence in Information Management programme has received approval to develop an FBC. The key dependency is the alignment of the LLPG (Local Land Property Gazetteer) project to the EIM programme, despite the fact that the project itself will be run via the ICF (Intelligent Client Function). Customer First have a number of business requirements dependent on LLPG being delivered on time and to quality, to enable full utilisation of our solution

 The service programmes -- Children Young People & Families; Adults & Communities and Housing & Constituencies -- are developing their FBCs. There are opportunities to plan the customer service activities in service redesign jointly. Customer First has engaged with Adults & Communities on their strategic objectives to begin aligning them with Customer First scope and is working with them on specific projects such as SPA (Single Point of Access) to ensure we maximise resource and benefits. Customer First is aware of similar potential synergies with CYP&F development of their Children’s Integrated Case Management Systems (CICMS). Also, Highways are in the process of developing a PFI, the timings of which may coincide with the delivery of some Customer First services. The table below summarises these cross programme dependencies:

Programme Key Dependencies Programme Dependency

Corporate Services  Customer Data Maintenance Medium  Performance Management Reporting Working for the  Development of first Interim Hub High Future  Develop of further Interim and Full Hubs Excellence in  HR process design Medium People  Technology interfaces with the HR Management solution  Culture and Organisational Change Excellence in  Governance and Guiding Medium Information Principles Management  LLPG / GIS / EDRMS

CYP&F  Children’s Directory Medium  CICMS (care management system)  eAdmissions  Common Assessment Adults  In-Control & Enablement High  SPA  Common Assessment

In addition to the transformation programmes there are several in-flight projects that will be aligned to or will impact on the Customer First programme. These are summarised in the table below.

In-Flight Project Summary ICF projects aligned to Customer First  Bookings Sessions and Print Management (Library Services) Version 1.7 Page 39 of 67

In-Flight Project Summary  E-Planning Phase 3 (Development)  Locate in Birmingham (Development)  Platform for Data Discoveries link to Lagan (Chief Executives)  Web CMS (web team) ICF projects not aligned to Customer First but with potential impact  DIP review  HAMS (Highways Asset Management System)

5. Costs

5.1 Lifecycle Cost The table below shows the projected total expenditure of £175million on the Customer First Programme over a 10 year period. Costs assume the implementation of scope as per the Common Design Report, and in the form of rollouts described in Section 4.3.2. The implementation approach assumed in the original FBC was to implement 1st Response followed by 2nd Response. The approach has now changed to combine 1st and 2nd response and to rollout out in 5 separate phases by service groups, as described in Section 4.2.

CUSTOMER FIRST - COSTS BY TYPE

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Total

Resource Costs £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000

External £4,125 £28,752 £13,790 £8,049 £3,679 £0 £0 £0 £0 £0 £58,395 See Section 5.2. for Internal (BCC) £249 £3,438 £3,396 £3,700 £2,529 £0 £0 £0 £0 £0 £13,313 breakdown by work area

Expenses £346 £2,374 £1,028 £522 £184 £0 £0 £0 £0 £0 £4,455

Resource Costs Sub Total £4,721 £34,565 £18,214 £12,271 £6,392 £0 £0 £0 £0 £0 £76,163

Office Accommodation - Rental £90 £793 £578 £498 £283 £18 £18 £14 £0 £0 £2,293

Other Property Costs £0 £24 £24 £18 £12 £0 £0 £0 £0 £0 £78

Property & Accommodation Sub Total £90 £817 £602 £516 £295 £18 £18 £14 £0 £0 £2,371 See Section 5.5. for explanations

Training Non Resource Costs

Training Venue & Materials £71 £305 £133 £136 £77 £0 £0 £0 £0 £0 £721 Ongoing Support £0 £131 £434 £549 £577 £347 £0 £0 £0 £0 £2,039

Technology Costs

Infrastructure £1,811 £10,867 £4,004 £2,891 £2,807 £4,035 £2,632 £2,647 £3,200 £2,082 £36,975 see Section 5.3 for breakdown of initial costs & ongoing costs Ongoing Support £202 £2,498 £2,836 £2,650 £2,464 £2,226 £1,974 £1,974 £1,645 £18,470 See Section 5.6. for explanations

Technology Costs Sub Total £1,811 £11,069 £6,502 £5,727 £5,457 £6,499 £4,858 £4,622 £5,174 £3,727 £55,446

Contingency

Contingency Costs £765 £6,514 £1,692 £1,141 £720 £360 £243 £231 £259 £186 £12,111

Other Costs

ICS Programme £5,069 £5,069 Quick Wins £815 £815 Change Costs £45 £296 £431 £166 £69 £0 £0 £0 £0 £0 £1,007 Phase 2b (Prep for Common Design £1,333 £1,333 Phase 3 (Common Design) £17,999 £17,999

Total Costs £26,834 £59,579 £28,009 £20,507 £13,589 £7,224 £5,119 £4,866 £5,433 £3,914 £175,073

Key Assumptions  Years shown above run between April and March of each year  The CRM application being implemented is the corporate CRM solution.  Cost reviews will continue throughout the next phase.

Refer to Appendix 8.3 for detailed assumptions.

5.2 Implementation Costs

Implementation Costs assume the solutions for Services will be deployed in 5 rollouts over a 4 year period, with the exception of Self Service which will be deployed over three years across rollouts 1 to 4. Rollout 1 will include the development and testing of Common Processes together with specific developments for services being deployed to in Rollout 1. Thereafter development and testing for planned service rollouts will occur to meet the phasing by service as indicated in Section 4.2.2. The table below shows a further breakdown of costs associated with implementation resources. Costs have been broken down by rollout phase and by work stream.

CUSTOMER FIRST - IMPLEMENTATION RESOURCE COSTS

Rollout 1 Rollout 2 Rollout 3 Rollout 4 Rollout 5 Total

WorkStream £000 £000 £000 £000 £000

Solution Total 989 256 177 98 84 £1,604

Technology Total 15,008 4,805 3,484 3,281 3,624 £30,201 £0 Programme Total 2,553 889 519 519 667 £5,147 £0 Customer Interaction Total 5,260 1,754 1,356 983 659 £10,012

Customer Service Operations Total 3,662 181 99 95 57 £4,093 £0 Change Total 5,138 1,136 754 754 1,031 £8,813 £0 Property Total 942 276 183 68 60 £1,529 £0 Deployment Total 3,672 1,621 968 861 1,502 £8,625 £0 Training Total 1,204 80 125 134 140 £1,683

Total Cost £38,427 £10,998 £7,665 £6,793 £7,824 £71,708

Programme Management Resources include:  Programme and Project Management governance and controls of the programme  Quality assurance from the Centre of Excellence  Project Management Office functions

Solution Resources include:  Solution Architects who will take an overall view of ensuring the developed solution is in line with the design as outlined in the FOM and Common Design Report  Programme Design Authority, point of escalation for design issues  Identification and management of inter-programme dependencies

Customer Interaction and Customer Service Operations Resources include:  Customer Interaction Design, Service Management Design and Customer Insight Design Teams who will ensure that the developed solution is in line with the design as developed

during the Common Design phase. Activities will include dealing with any design issues, working with applications technology team members to review the built solution, developing and testing scenarios on the newly built solution, developing process documentation for process training and knowledge transfer to rollout deployment teams

Technology Resources include:  Project Management of all technical aspects of the build, test and deployment  Management and performance of infrastructure related activities including procurement and installation of hardware and software. Establishing development, testing and production environments. The control of developed objects through the development lifecycle  Planning and testing Disaster Recovery  Management and performance of applications configuration to match designed processes  Identification, development, testing and deployment of applications customisations  Design, development, testing and deployment of the all technical solutions  Management and performance of all data migration related activities including data mapping, legacy extracts, data imports, testing, go live population  Management and performance of all systems interfacing related activities including systems identification, field mapping, interfacing developments and testing  Configuration of KPIs and Performance Reporting  Management and performance of telephony requirements including procurement of hardware, software and connectivity. Installation and configuration of the systems. Integration with data network and CRM application, resilience fail over testing  Management of testing to include Unit Testing, System Testing, Integration Testing, Business User Acceptance Testing and Cut Over Testing  Identification of security requirements, configuration and testing.

Change and Communications Resources include:  Organisation Design team members to perform change impact assessments, update/create job descriptions, consult with unions, document the consultation process, map staff to job descriptions, conduct the consultation process  Communications team members to develop and execute a Communications Plan to ensure adequate and prompt communication to all stakeholders during all key activities and at key events  Promotion of CF to customers to promote channel shift etc.

Training Resources include:  Training team members to develop training strategy, perform training needs analysis, develop a training plan. Manage the design, development and production of training materials. Co-ordinate the scheduling and training of the end user community within the appropriate timeframes and to the quality levels required Property Resources include:  An overall management role to co-ordinate activities and communications with the ‘Working For The Future’ (WFTF) programme team. The WFTF team has a dedicated team of property experts and project managers to engage with 3rd parties to carry out interim refurbishments and building work, carry out design and specification of hubs and prepare and gain approval for business cases for hubs  Property Project Manager to equip Hubs with equipment not supplied by WFTF

Deployment Deployment teams are responsible for tailoring and introducing the new processes, organisation and systems within their respective service areas. Resource roles are as per the Business Readiness Model previously presented to the Programme Board. This model includes:  Overall deployment management across all rollouts  Deployment Managers responsible for developing and maintaining the business transition & deployment plan. Project management execution of activities  Change Champions that build interfaces with Directorates and services for adoption of process, system and culture changes. Address any middle management change resistance. Develop and execute communications  Change Readiness Managers responsible for identifying any skill gaps, providing follow up and coaching. Monitor and assess degree of service area readiness  Change Agents undertaking deployment activities including data capture, data cleansing, identifying staff training needs, scheduling training, supporting and delivering communications  Super Users to support testing of the built solution by writing and testing scripts during the integration testing. Supporting the Business Acceptance Testing. Supporting the transition to live operations.  Test Managers to plan and manage BCC involvement in Business Acceptance Testing  Business Acceptance Testers from BCC who will perform final testing of the built solution prior to it’s deployment

Resource Mix The table below shows an analysis of the resource mix of Service Birmingham (SB) consulting to Birmingham City Council (BCC) staff during the rollouts. Rollout 1 requires the building and testing of common processes and specific developments for services being deployed in Rollout 1. It has been anticipated that SB will play a large role in this phase, but that knowledge transfer will take place to BCC staff during the Rollout. With this knowledge transfer it has been anticipated that BCC staff can increasingly take a larger role in the later rollouts, finally with SB playing a minor role.

Resource Type Percentage of Staff on Rollout R1 R2 R3 R4 R5 Total

BCC Resource 37% 51% 63% 66% 73% 52.5%

SB Secondee 8% 11% 9% 8% 9% 9.1%

SB Insource 8% 10% 12% 12% 13% 10.3%

SB External 46% 28% 16% 13% 5% 28.2%

100% 100% 100% 100% 100% 100%

5.3 Technology Costs

The table below shows details of costs associated with Hardware, Software, Telephony/ Telecommunications and Disaster Recovery. The Council has initiated a review of the design of the overall technology solution and the details of which are documented in the interim agreement for April 2008.

CUSTOMER FIRST - TECHNOLOGY NON RESOURCE COSTS

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Total

Technology Non Resource Costs £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000

Initial Change Programme 2.2.1. ICT programme Hardware £173 £1,584 £45 £45 £45 £585 £45 £45 £45 £45 £2,655 2.2.2. ICT programme Software £606 £4,295 £0 £0 £0 £0 £0 £0 £0 £0 £4,902 2.2.5. Telephony £0 £1,335 £1,163 £100 £0 £420 £0 £0 £0 £0 £3,019 2.2.6. Disaster Recovery £0 £478 £25 £25 £25 £239 £25 £25 £25 £25 £888

Sub Total Technology - Initial Change Prog £780 £7,692 £1,232 £170 £69 £1,244 £69 £69 £69 £69 £11,464

Ongoing management 3.1.1. Maintenance Hardware £26 £297 £383 £385 £388 £390 £395 £397 £399 £402 £3,462 3.1.2. Maintenance Software £498 £1,124 £1,012 £1,012 £1,012 £793 £793 £793 £793 £793 £8,623 3.2. Hosting £384 £240 £287 £291 £295 £299 £306 £309 £313 £316 £3,039 3.3. Telephony £0 £416 £666 £604 £604 £604 £604 £604 £1,138 £0 £5,241 3.4. Business Continuity £0 £91 £133 £141 £149 £161 £172 £180 £191 £204 £1,422

Sub Total Technology - Ongoing Management £908 £2,168 £2,481 £2,434 £2,449 £2,247 £2,269 £2,283 £2,834 £1,714 £21,787

Property related ICT £0 £479 £48 £48 £48 £257 £48 £48 £48 £48 £1,071

Customer Insight Related ICT £123 £529 £242 £239 £241 £288 £245 £247 £249 £250 £2,653

Total Technology Non Resource Costs £1,811 £10,867 £4,004 £2,891 £2,807 £4,035 £2,632 £2,647 £3,200 £2,082 £36,975

Software Software costs include:

Category Description Customer Relationship Interaction Management, Case Management, Campaign Management Management and Channel Management Internal Reporting Management reporting to Customer First users Process Integration Manages integrations/interactions that occur between one or more Customer First systems and the specialist delivery systems or fulfilment systems. Internal Portal Single point of access for internal users to the CF systems Citizen Portal Single point of access for external users to the CF systems Master Data Management Hosts the Single Customer Record. MDM will server as the central (MDM) repository and will build, manage, store, share and integrate across the council landscape Legacy System Integration Software adapters required to integrate to key Legacy Systems such as CareFirst, Sx3 ETL (Extract, Transform Performs the data extraction, data capture and the standardisation and Load) of the data schemas for the Single Customer Record External Reporting Management reporting to non Customer First users EDRMS (Electronic Provides Document Image Processing and Document Management Document and Records capabilities. Will be used to store and manage all white mail (letters Management System) and documents) and email

Identify and Merge Used to uniquely identify individuals at unique households, functions for the Single dwellings and premises and assigns unique keys to all data Customer Record sources. This is integral to providing the Single Customer View Hub queuing Provides queue management in the Hubs

Geographical Spatial Allows the analysis of customer data to create target lists of Analysis customers linking 3 key areas, customer, location and service Data Mining Data mining and manipulation and presentation of data. Will be used to deliver the Build Customer Knowledge process Call Logging Required to monitor calls logged against the Customer First system Business Rules Used to manage and automate business rules within the CF solution Web Analytics Used to gather web analytics and web statistics from the citizen portal to measure customer experience and channel shift

Electronic Forms Used to produce PDF and HTML W3C WAI AA compliant electronic forms Telephony Queuing Intelligent telephony queuing system

The costs and any benefits associated with Identity Management are not included in the Customer First Revised FBC.

Hardware Costs include:  CRM solution – Customer First will leverage the CRM hardware already delivered by CST, supplemented with new environments as specified by the technical architecture  Hardware is included for software listed above Telephony / Telecommunications Costs include:  Communications server – Server platform for IP telephone and Contact Centre application software  CTI server – Server platform of the integration of computer and telephony solution (enables CRM integration)  Voice recording server – Server platform for recording telephone conversations across Contact Centre solution  Workforce management server – Server platform for rostering and workforce planning across the Contact Centre solution  Voicemail server – Server platform messaging applications (announcements and personal voicemail)  Centralised gateway for ISDN interface (inbound) – In/outbound connectivity for Customer First telephone calls  Remote site survivability gateway (SRST) – Router/gateway device to terminate in/outbound Customer First telephone calls  DPNSS converter – Protocol converter to connect Customer First telephony solution to legacy Centrex (i.e. the rest of the City Council)  Headset – Telephone headsets for agents/users, will plug into desktop PC (enables CRM phone connectivity)  IP softphone licence – software licence enabling use of IP telephony infrastructure  Telephony application – Resides on Communications severs, delivers telephone calls to Customer First agents/users  Voice recording application – Resides on Voice recoding servers for recording telephone conversations across Contact Centre solution  Workforce management application – Resides on Workforce management servers for rostering and workforce planning across the Contact Centre solution  Agent licence (inc. CTI licences & 10% Supervisor) – software licence enabling use of Contact Centre application  Operating System – Resides on Communication servers, provides Contact Centre functionality Version 1.7 Page 46 of 67

 VXML feature licence – Resides on Communication servers, provides Contact Centre functionality  IVR licence – Resides on Communication servers, provides IVR functionality for 2nd Response  Outbound licence – Resides on Communication servers, provides outbound dialling capability

Disaster Recovery Costs have been included to provide a Silver level of disaster recovery; however the actual level of Disaster Recovery to be provided will be established by the Corporate Disaster Recovery Review to ensure consistency across the council.

A Silver level would provide additional hardware to be located at a 2nd Data Centre to allow the technical infrastructure to be restored within a maximum of 24 hours, in the event of a severe failure. The basic principle is to locate all production hardware in the 1st Data Centre and all non- production hardware in the 2nd Data Centre so that the non-production hardware can be utilised in the event of disaster, also reducing the amount of redundant hardware. Any reduction in the level of service offered to customers will be mitigated based on the business continuity plan.

Customer First has dependencies on other programmes or projects for the deployment of a number of technical solutions, with the key dependencies listed in Section 4.6. The costs of these technical solutions are not included within the Customer First Revised FBC.

5.4 Training & Culture Change Costs

The table below shows a breakdown of non resources costs associated with Training and Culture Change.

CUSTOMER FIRST - TRAINING, CULTURE & CHANGE NON RESOURCE COSTS

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Total

Training Culture and Change Costs Costs

Training Non Resource Costs

Materials £71 £215 £52 £72 £11 £0 £0 £0 £0 £0 £421 Venues £0 £89 £81 £63 £66 £0 £0 £0 £0 £0 £300

Total Training Non Resource £71 £305 £133 £136 £77 £0 £0 £0 £0 £0 £721

Change Non Resource Costs

Marketing & Communications £39 £260 £395 £130 £42 £0 £0 £0 £0 £0 £866 Events & Stationery £6 £36 £36 £36 £27 £0 £0 £0 £0 £0 £141

Total Change Non Resource Costs £45 £296 £431 £166 £69 £0 £0 £0 £0 £0 £1,007

Total Training, Culture & Change Costs £115 £600 £564 £302 £147 £0 £0 £0 £0 £0 £1,728

Training Materials and Venues Materials costs include printing of course materials, training aids, trainer guides as well as development of the e-learning components and the licence cost for the training scheduling tool. Venues costs include the physical training classrooms, both for ‘soft’ skills training and technology- based training, technical infrastructure, on-site support from the venue landlord, reception duties, refreshments, video and play-back equipment. The training courses that will be provided within these costs include process and systems training (including CRM, legacy and telephony); customer service skills, council knowledge, leadership and management and behaviour / culture change linking with ICS. It has been assumed that not all of these courses will need to be developed from the outset and that there will be some reuse of existing council and 3rd party training materials. It has also been assumed that the Contact Centre

Customer First Revised Full Business Case will train their own staff, with Train the Trainer and QA of training delivery being provided by Customer First.

Marketing and Communications and Events Costs above represent anticipated spend to cover communications to all stakeholders about programme activities and key events through media such as Newsletters, Manager Network Briefings, Intranet, Inner Voice, Cross-Programme Bulletin, 3Ps Events, Road shows, DVDs. Marketing and Communications costs also include specific communications campaigns for external customers and businesses. These will be timed around the go-live for Rollout 1 to support channel shift and raise awareness of the One Account, and around the go-live for Rollout 2 to raise awareness of the One Number. In addition, as each new group of services goes ‘live’, there will be reinforcing campaigns to external groups and key stakeholders. Coordinated external communications are also being planned (and costs shared) with Working for the Future around changes in property.

5.5 Property Costs

The table below shows a breakdown of non resource costs associated with Property which will be incurred by Customer First.

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Total

Property Non Resource Costs

Property Non Resource £0 £24 £24 £18 £12 £0 £0 £0 £0 £0 £0 £78 Office Accommodation £90 £793 £578 £498 £283 £18 £18 £14 £0 £0 £0 £2,293

Property Non Resource Costs £90 £817 £602 £516 £295 £18 £18 £14 £0 £0 £0 £2,371

Property Non Resource Costs

These costs represent the cost of equipping the Neighbourhood Offices and Interim Hubs with Photocopiers and Plasma Screens.

Office Accommodation

These costs represent the rental cost of accommodation for the Customer First programme staff. They are costed at £3,000 per FTE per annum

Neighbourhood Office Refurbishments

The costs for Neighbourhood Office building refurbishments are not included in the Customer First Revised FBC.

Due to the fact that all of the Hubs from which face-to-face services will be delivered in the future cannot be operational by the time the new systems and processes go live, it will be necessary to continue using the existing offices for some period of time.

It should be noted that the original FBC explicitly excluded all property costs and benefits, on the basis that both would be carried by the WFTF business case. The actual expenditure on

Customer First Revised Full Business Case maintenance and repair for neighbourhood offices in 06/07 averaged £1.5k per office, based on a sample of 15 of the 32 offices.

Improvement costs have been estimated on a per-office basis taking into account the information gained through a comprehensive survey carried out by WFTF in October and November 2007, and using WFTF estimates for cost per square foot, furniture costs and so forth. The number is therefore jointly agreed. Although at the time of writing no agreement has been reached with WFTF as to who will carry the costs and benefits of replacing the neighbourhood offices with interim hubs, the Customer First programme still assumes that they will be covered by WFTF and are therefore also excluded here.

Neighbourhood Office Rental

Any future costs for Neighbourhood Office property rental are not included in the Customer First Revised FBC.

When the new Single Property Management Function (SPMF) becomes operational, it is intended that council property occupants be charged for the use of their buildings on a yet to be agreed cross charge basis (for example surface area or number of staff). If CF were to be charged ‘rent’ in this way, and if the basis for charging were to be £10 per square meter per year, the annual rental cost for 13 hubs at maturity, when all are up and running, would be approximately £500k. Given all the uncertainty around timing and basis, this figure has not been included in our business case. Excluding it should be regarded as a risk to the programme, although not a risk to the Council since it must bear the cost of property in any case.

5.6 Ongoing Support Costs

The table below shows ongoing incremental support costs related to Hardware, Software, Telephony/Telecommunications and Disaster Recovery. Also included are costs related to a Continuous Improvement project and projects related to ensuring the achievement of Channel Shift and Response Shift.

CUSTOMER FIRST - ONGOING SUPPORT COSTS

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Total

Ongoing Support Costs

Application Support £0 £194 £2,368 £2,543 £2,374 £2,269 £2,031 £1,780 £1,780 £1,483 £16,822 Telephony/Telecomms £0 £8 £130 £292 £276 £195 £195 £195 £195 £162 £1,648

Training - Non Resource £0 £131 £434 £549 £577 £347 £0 £0 £0 £0 £2,039

Total Ongoing Support Costs £0 £333 £2,932 £3,384 £3,228 £2,811 £2,226 £1,974 £1,974 £1,645 £20,509

Application Support

Application Support costs are the costs of supporting the Hardware and Software applications identified under the Technology Non Resource costs in section 5.3 above. These are almost exclusively expert resource costs. Telephony Support Telephony and Telecomms Support costs represent the cost of supporting all the Telephony and Telecomms applications and in the main are expert resource costs Training Non Resource Costs

These costs relate to the cost of managerial and administrative support for the training courses being run during the programme.

5.7 Rollout 1 Costs

The table below summarises the Rollout 1 costs. The approval of the Customer First Revised FBC is a commitment to the overall implementation approach and implementation plan across the five rollouts, but the expenditure for Rollout 1. The FBC will be updated again at the end of Rollout 1, for commitment to Rollout 2 costs onwards. The table includes costs for two months after the Rollout 1 go-live to allow for Rollout 2 approval.

Rollout 1 - Total Costs

Resources £’000s

External £34,522

BCC £3,906

Sub Total £38,427

Contingency £6,695

Expenses £2,850

Non Resource

Technology £12,497

Programme £805

Customer Service Operations £297

Change £149

Property £18

Training £445

Total £62,183

5.8 Significant Changes since FBC

The total programme costs have increased by £29.4million since the FBC in April 2007, from £145.6 million to £175 million. The Council’s high level business requirements have not changed since the production of the FBC, however the detailed design activity carried out during Common Design has revealed a clearer picture of what will be required to deliver the Future Operating Model and achieve the desired benefits. In addition, a number of compelling new benefits areas have been identified, which require additional expenditure to achieve (each of these has been independently validated to ensure an appropriate return on investment). Table 1 indicates the main areas of cost variance and some explanation. Further breakdown of these items can be found in Tables 2 & 3 which appear below Table 1.

Table 1 – Major Changes to FBC Costs since Original FBC

Major Changes to FBC Costs since Original FBC

Original FBC Value £145,626

Core Solution

Reduction in Core CRM team (implementation and support) – This - £1,877 reduction in cost is as a result of the inclusion of Service Birmingham support team staff in the CRM team to ensure that the transition to ongoing support is smooth.

Reduction in General Technology Resources – This reduction is due to a - £4,412 number of reasons:  Increase in the level of Service Birmingham Secondee/ Insource staff involved in the implementation  Reduction in the level of support resource for transition – as a result of the above  More efficient use of CRM resource to support the testing  More aggressive ramp down of resource as we proceed through the Rollout Telephony and Telecomms - the original FBC assumed that there would £2,100 not need to be any changes to the capacity of the networks and Disaster Recovery arrangements. More detailed investigations have determined a need to increase this capacity. In addition Telecoms and Network IS support costs were underestimated in the original FBC. Finally there have been some cost reductions in the core telephony solution.

Apportionment of Telecomms costs – It has been agreed with the ICF - £664 that some of the above costs could be shared since CF does not need all of the additional capacity being put in place ( it has to be purchased in large increments)

Increased Hardware sizing – This small change represents movement in £166 pricing and specifications for the required Hardware

Costs not in Original FBC

CRM Licences – the original FBC assumed that CRM licences would not £3,955 need to be included within the CF FBC. The Council has subsequently apportioned these corporate licences to the CF programme. Detailed design work has also identified additional spend on licences to support the web design.

Systems Monitoring Software & Hardware – experience from CST has £1,085 demonstrated the importance of robust systems management software to manage sophisticated environments such as CF/CST

Increased Costs due to Increased Complexity (see Tables 2 & 3 for more detail)

Web – the more detailed design, together with customer survey feedback, £6,875 revealed that to develop a compelling web site which would deliver significant channel shift would require greater investment than originally

Customer First Revised Full Business Case envisaged. This cost includes the incremental software, hardware, implementation, support, maintenance and hosting over the 10 year FBC period.

Integration – the original FBC assumed the need to integrate with 16 major £8,262 BCC systems – whereas a more detailed analysis revealed 57 systems requiring integration to deliver the desired functionality. This cost includes the incremental software, hardware, implementation, support, maintenance and hosting over the 10 year FBC period. The list is shown at the end of this document in Table 3

Additional Hardware/ Software for Additional Benefits – Customer £9,013 Interaction – the Customer Interaction design identified a number of new benefits areas which could be enabled through a more integrated design with service areas. The additional software is detailed in Table 2 below. The cost includes all software, hardware, maintenance and hosting over the 10 year FBC period

Additional Hardware/ Software for Additional Benefits – Customer £3,306 Insight – the original FBC did not include any benefits for Customer Insight, however detailed analysis, together with some “quick win” projects has illustrated that this area will be capable of delivering cashable benefits, if supported by the relevant software toolset. The cost includes all software, hardware, maintenance and hosting over the 10 year FBC period

Various minor cost increases due to increased complexity – Throughout £2,055 the Detailed design work more clarity of how the solution will fulfil the business requirements has been gained. Some of this increase in clarity has resulted in increased costs. Examples are:  Increased use of SMS  Increased complexity around the use of eForms  Broader use of knowledge management  Extended use of workflow  Creation of generic enablers such as Payments, Pricing and Bookings  Increased range of reporting requirements  More complex and extended use of business rules to support the customer interaction process Other

Resource mix adjustment – the revised FBC has included an assumption - £2,962 of a much higher proportion of BCC Resources filling programme roles, over and above that assumed in the original FBC

Inflight projects – now includes the cost of ICS training for 6,600 staff £2,227 which were not included in the original FBC Phase 2b costs – additional costs incurred during the preparation phase for £318 Common Design. Revised FBC Value £175,073

Table 2 - More detailed analysis of the Table 1 section ‘Increased Costs due to Increased Complexity’

Increased Costs due to Increased Complexity

WEB £6,875

Costs Cost area Cost (000’s) Resources £2,952 Software / Hardware / £3,923 Hosting for: Citizen Portal Portal Search Web Analytics Electronic Forms Total £6,875 Benefits The more extensive Web solution that has been designed will have a wider scope of transactions across more services and better integration with the CRM solution and the service delivery systems. This solution will meet the challenge of enabling the channel shift required.

Integration £8,262

Costs Cost area Cost (000’s) Resources £5,181 Software / Hardware / £3,081 Hosting for: Legacy connectors (to service delivery systems) Total £8,262 Benefits The provision of integration to approximately 57 service delivery systems will give better end to end control of the process for all channels. Each integration will include a number of events such as the passing of the initial service ticket, subsequent status updates, bookings and payments as appropriate.

Additional Hardware/ Software for Additional Benefits – Customer £9,013 Interaction Costs Cost area Cost (000’s) External Reporting £1,154 Hub Queuing £884 Telephony Queuing £305 Rules-engine £1,706 E-Benefits £3,564 E-Planning £1,400

Total £9,013 Benefits Cost area Benefits (000’s) External Reporting Benefits are in the area of reporting and Data cleaning and also reduced cost in extracting data from service delivery systems Hub Queuing The solution will be used in the hubs to assist with managing the customers and optimising the workloads of the council employees. The benefits of doing this are:

 Less queuing and a subsequent improvement in the customer experience

 Potentially lower labour costs

Telephony Queuing The solution is already deployed in the current contact centre and these costs are for its continued deployment Rules-engine There is a requirement for a business rules engine that is used to assist the contact centre agents to execute their activities particularly in the area of filling in forms. This will also assist in the self service channel. The use of this tool will avoid cost in setting up rules using other means which would be less optimal. It will also enable the agents to complete calls more quickly and with less error.

E-Benefits £3,500 – back office + £3,300 savings enabled + £1,500 – front office E-Planning £1,047 Total £9,347 + non-cashable benefits described

Additional Hardware/ Software for Additional Benefits – Customer £3,306 Insight Costs Cost area Cost (000’s) Customer Unique Identifier £1,520 Spatial Analysis Tool £852 Data Mining Tool £934 Total £3,306 Benefits This investment is required to deliver the Customer Insight benefit of £20.4 million outlined in the Benefits section. The benefits will be in the form of better information to support customer segmentation, marketing campaigns and targeted knowledge for the contact centre agents

Various minor cost increases due to increased complexity – £2,055 The increases in resource requirement are through the different teams in the programme. Some examples are:

 Customer Relationship Management team – 480 days effort

 Business Intelligence team – 236 days effort

 Custom CRM Development – 350 days effort

 Forms works (shared with Web) – 500 days effort

 Others include – Data, Project management, testing, training, design.

Table 3 Service Delivery Systems to be integrated

Carefirst Auto Phone system Impulse

Intranet Report centre Phone Parking Processing Toy Library

RBIS: Housing Benefits Machine faults EMS

Vectus Document Mgmt Northgate M3 Microsoft Auto route

SX3 EDMS Diamond Youthzone

Optitime EDMS Sapphire Lsc

Omfax RSS Insight

RBIS: Ctax module RON Carepay

Worldpay BACAS-BATI CHARMS

Paris EROS Confirm Arboriculture

SAP CST BORER SPECTRUM

Bottlebank Opt to Postal Vote GIFT

Panorama RBIS:NNDR and CTAX Inline Internet

HRIS ABC Information Pack Database Admes Information Mgmt and LeisureFlex Tracking Logicat

HAMS(Confirm) Electronic Db : Housing SOPRA

NPS Bchoice MACCS

Parkmap Msoft Civica

Cobalt Blind Register

Complex Meals Direct

5.9 Scrutiny and Control of Costs

All aspects of the costs included in this business case have been subject to a rigorous process of scrutiny to ensure that they represent value for money for the council. This process has included:-

 Detailed review and challenge of all costs by the Senior Responsible Officer and other senior BCC Customer First staff.

 Review and challenge of all technology-related costs by members of Intelligent Client Function and Service Birmingham ICT to ensure value for money, eliminate potential duplication of investment and to ensure compliance with BCC ICT Strategy and policies.

 External independent review of the design and costs by Gartner Group.

 Programme Board workshop to allow all members of the programme board the opportunity to fully scrutinise costs In accordance with the Business Transformation Governance, the programme will continue to use Work Packages to manage the commercial relationship between BCC and Service Birmingham to deliver. Each Work Package will cover one phase of the programme at a time, to ensure appropriate review points along the way. We will establish a subgroup of the Programme Board with the remit of ongoing review of costs as the programme progresses. This forum will be supplemented with skilled IT staff as appropriate. As during the previous phases of the programme all aspects of the programme will be subject to rigorous change control procedures. In essence these allow a baseline of agreed scope and associated costs to be tracked and any deviations from this, either positive or negative, have to follow a change control procedure. This procedure requires that justifications for deviations are documented clearly all impacts are analysed. Change controls may or may not have a cost impact. Each change control is required to go through a rigorous approval process culminating in an approved set of signatories agreeing the change can proceed. These procedure complement and do not supersede the delegated powers and fiscal approval processes of the Council and the governance arrangements of Customer First.

5.10 Risks

The programme has identified the following key risks and mitigating actions.

Risk Impact Probabilit Mitigating Action(s) Resp y Conflicting priorities lead to lack of support High High Ensure alignment of Service P Dransfield to programme from Directorates Plans and Strategic Director objectives with the success of Customer First Commitment of senior stakeholders is not High High Ensure a programme of high P Dransfield/ evident, and some of those openly profile communications activities S Hughes challenge the objectives of Business involving senior stakeholders. Transformation. Address defiant behaviour.

Too much focus on the financial benefits High Medium Promote the qualitative benefits P Higgins leads to the accusation that Customer to services, with some compelling First’s prime objective is to cut front line case studies services Many services sceptical around the Medium High Showcase developed to bring the P Higgins achievability of benefits design to life Phased rollout will allow the

Risk Impact Probabilit Mitigating Action(s) Resp y benefits to be demonstrated to services in later rollouts Risk of not achieving benefits based on High High Proactive engagement with P Higgins deeper integration with Service Areas service areas during Realisation to articulate CF design and potential for deeper integration High Medium Roles have to be grouped into P Higgins Lack of accurate role mapping may lead to jobs. people being assigned to incorrect roles in Timely consultation with unions the new organisation, and subsequent and staff groups on jobs to adverse impact on training delivery. enable go-live of new organisation structure with new systems and processes. High High Arrange workshops to review P Higgins The delay to Contact Centre Provider CDR and PDDs with new Selection has meant they have not been Provider to ensure no affect on involved in Physical Design. This could Design. result in rework of the Physical Design and/or delays to the Build and Test.

Risk of WFTF not completing Interim High High Obtain commitment to deliver on P Higgins Refurbishments to Neighbourhood Offices in time from WFTF Sponsor. time for rollout go lives. Consider WFTF representative on PGB or Deployment Board.

Ensure Specifications meet CF S Foote requirements. Gain understanding of planned WFTF activities & monitor progress. Single status affects morale of BCC team High High Staff retention plan to be P Dransfield/ members developed for key BCC P Higgins programme staff. Cumulative demand for BCC resources High High Need for proactive resource G Evans across all Business Transformation forecasting and prioritisation of programmes has a detrimental effect on demand for BCC resources service delivery Business Transformation Scope is not High High Need for proactive management G Evans managed across programmes leads to of scope and dependencies duplication of effort and incompatible across Business Transformation interdependencies programmes Insufficient BCC staff with suitable skills and High High Identify roles required to be filled P Higgins experience available to fill roles on and start dates. Customer First Realisation. BCC unable to Identify BCC staff for Rollout 1 fill required roles in time could cause who can gain experience which programme delays. can be applied in later rollouts. Consider what recruitment needs to be done where skills shortage is evident or where start dates cannot be met with existing staff. Lack of BCC staff with experience of High High BCC staff to be positioned to P Higgins / managing large transformation programmes facilitate knowledge transfer from S Foote may jeopardise the success of rollouts. Consultants during rollout 1. BCC to develop staff retention plan to ensure staff remain through rollouts. Level of Change due to new Solution being High High Develop Change Management P Higgins / implemented proves too difficult for BCC Plan. Use of Change Champions S Foote staff to cope with leading to morale and Change Agents in the Rollout problems, staff retention problems. teams in order to portray positive messages to Managers and staff. Develop Job Descriptions, develop Consultation Process, and perform early Consultation. Develop TNA and ensure staff training and evaluation.

Risk Impact Probabilit Mitigating Action(s) Resp y Lack of clarity on specific Systems High High Identify Systems to be retained P Higgins / Interfacing required and high level and requiring interfacing to. S Foote complexity of interfacing could lead to Assess level of complexity of programme delays. interfaces required and development work required, plan development activity, assign responsibilities, and pro-actively monitor progress. Lack of clarity on specific Systems required High High Identify Systems to be replaced. P Higgins / to be replaced and high level of complexity Assess how the functionality S Foote could lead to differing expectations. provided by Systems requiring Functionality expected may not be provided replacement will be met; assess or may not be sufficient. Level of work may level of complexity and be under-estimated. Testing and Training configuration/development work may be under-estimated. required. Plan configuration/ development activity, pro-actively monitor progress. Plan testing and end user training. Data Cleansing and Data Capture may not High High Identify Data Migrations required P Higgins / be adequate leading to failures at the go live and methods of upload eg. S Foote of rollouts. Automatic, Manual Data Capture. Develop Data Cleansing Plan, assign responsibilities, and monitor progress. Perform field mapping. Develop automatic Data Migrations & Test. Identify Data requiring Manual Capture, assign responsibilities, and plan for data capture. The number and complexity of Data High High Identify all Data Migrations P Higgins / Migrations could cause delays and quality required. Identify Extracts to be S Foote issues. developed from retiring systems and Imports to be developed into newly introduced systems. Plan developments, assign responsibilities, monitor progress, plan testing, monitor results. Programme scope increases result in High High Anticipated head projections to P Higgins / increased number of heads requiring be reviewed as part of revised S Foote accommodation and there being insufficient FBC. Accommodation accommodation in Canterbury House to requirements to be facilitate all programme members being communicated to SB housed in one location. Transformation Management for planning and provision. Monitor progress and escalate where necessary. Council will not make a decision on a BCC High High Ensure Council wide DR strategy P Higgins/ wide Disaster Recovery strategy before the is agreed within Customer First S Foote Customer First Rollout 1 go-live. The CF Rollout 1 timescale DR level of Silver relies on the Council wide DR strategy to be agreed and implemented.

Risk Mitigation approach

The above table shows risk status before mitigating action is taken. The Senior Responsible Officer and SB Transformation Director are responsible for the regular monitoring and review of risks in order to ensure that effective mitigation plans are in place to address these risks, and any others which may arise. Mitigation Plans should seek to reduce either the impact or probability (or both) of any significant risks that the programme may face.

6. Realisation

6.1 Realisation Approach

6.1.1Objectives of Realisation The primary objective of Realisation is to make the Customer First operating model real. This will be achieved by developing and focusing the Organisation & Change delivery at the individual person level and answering the question: “What does this mean to me?” The ‘real’ feeling will be further supported through the delivery of a set of built and tested technologies and processes to be used by the first Rollout services, ready for validation and acceptance by BCC. The second objective of Realisation is to prepare BCC for transition to the new Customer First design in Phase 5. This will include: carrying out improvements to physical properties identified in the delivery of services; the identification and development of training programs and identifying, extracting and cleaning the data required to support Business Acceptance Testing and Go Live activities.

6.1.2Major steps in Realisation Customer First intends to adopt the standard approach to Realisation as defined by the Business Transformation Methodology. The methodology puts work into five categories: - Business Service Creation & Realisation: Creating the Organisation and ways of working; Identifying test scenarios and data and developing the training programme - Technical Service Creation & Realisation: Finalising the technical specifications; Building & Testing the technology solutions - Live Data Preparation: Identification, extraction and cleansing of data required in the live systems and undertaking dry-run migrations to the end-state systems - Integration Testing: To ensure that all pieces of the technology jigsaw hang together and deliver the end-service required - Review Benefits: Further validation of the benefits cards produced in Phase 3 to ensure the services to be implemented remain in line with the benefits articulated within the Full Business Case Realisation will be carried out for the first set of services included in Rollout 1, plus for subsequent rollouts.

6.1.3What will Realisation deliver The main deliverables from Realisation for Customer First will be: • A new Organisation for delivery of Service Operations and Customer Interaction processes – Development of an agreed set of Job Descriptions based upon the identified Job Profiles from Common Design. These will enable the changed organisation to deliver the Service Operations and Customer Interaction processes for services included in Rollout 1, and the Customer Services management organisation to support this • Built & Tested Customer First Technology Solutions – Involving the configuration, building and testing of all technologies required by Customer First to support the channel deliveries including: CRM, Self-Service, Telephony, Document Management, Data Networks, Line of Business Interfaces, Data Warehouse and Knowledge Management systems and solutions • Written Business Policies, Standards & Procedures – New and updated BCC policies, standards and procedures to support the business rules identified in Common Design and as required to support the new ways of working for the Customer First Organisation design

• Live Business Data Preparation – Including extracting data from current line of business systems, conversion of data for use within the new technologies such as data warehouse and CRM solutions, and cleaning/de-duplication of the data to support Business Acceptance Testing and final implementation and transition activities during the next phase • Training Design & Development – Beginning with a detailed Training Needs Analysis for all end-users impacted by Rollout 1 and concluding with the design and development of training courses to cover new processes, new technologies and softer-skills such as leadership training required in preparation for Business Transition • Property Improvements – Management of improvements to existing Neighbourhood Offices to support delivery of Customer First objectives, and delivery of the 1st Hub • Implementation Preparation – Further refinement of the Implementation Plans for Rollout 1, confirmation of the services included in subsequent rollouts and taking the lessons learnt from Rollout 1 Realisation and applying these as updates to the Benefit Cards and Project Plans. 6.2 Programme Organisation Structure

6.2.1 Organisation Structure The programme team organisation structure is based on the following design principles:- • In order to successfully embrace the solution there should be increasing levels of BCC ownership of key roles, both from Customer Services and Service Areas • Service Birmingham will support the programme using consultants for specialist expertise, particularly during the early phases of Realisation • BCC and SB will seek to appoint staff into roles during the early phases of Realisation, with a view to filling an increasing proportion of the roles in the latest phases of Realisation Based on the Realisation objectives (outlined in section 6.1) and these design principles, the following organisation structure has been proposed:

Roles & Responsibilities The roles and responsibilities of these teams will be as follows:- • Programme Leadership – responsible for managing scope, resources, workload, plans, budgets and stakeholders as well as ensuring the timely escalation and resolution of issues and effective mitigation of risks • Solution Leadership - the Programme Delivery Manager will bring together all of the above teams to ensure the timely and effective delivery of the programme objectives. 3 x Channel Leads will be responsible for ensuring all activity remains consistent with their channel design. Planning and Rollout Lead to work with SB PMO and Deployment, monitoring progress, plans (including rollout) and programme finance • Solution Detailed Design, Build & Test – responsible for the detailed design, build and testing of the solution. This include the detailed design of service-specific solutions, development of business policies, process documentation, training courses, communications materials, managing property improvements, design, build and test of systems components • Solution Deployment – responsible for preparing for the effective deployment of the solution within each rollout. This includes ensuring the detailed design meets the service area requirements, raising awareness of the programme, managing consultation with staff, migration to the new organisation structures, scheduling and delivery of training, transfer of service data and knowledge to new systems and acceptance testing of the solution on behalf of BCC • Solution Architecture – responsible for ensuring that the solution remains consistent with the Common Design • Benefits Management – responsible for overseeing the delivery of the Benefits Realisation Plan • Process, Service Management, Training, Communications, Org, HR, Tech, Property – teams to work across all channels, design and deployment

6.2.2 Resourcing Implications

Project resources will be drawn from a combination of the following sources:- • BCC Resources – BCC employees comprising a combination of existing BCC staff seconded onto the programme from service areas and Customer Services and staff recruited onto the programme to fill specific roles for the duration of the rollout • Service Birmingham Secondees – BCC employees who have been seconded to Service Birmingham • Service Birmingham Insourced Staff – recruited by Service Birmingham to fill specific roles on the programme for the duration of the programme • Service Birmingham External – consultants drawn from SB partners and other organisations with specialist skills in delivering aspects of major transformation programmes In line with the Design principles outlined above, the following Resource Mix is assumed:-

Resource Type Percentage of Staff on Rollout R1 R2 R3 R4 R5 Total

BCC Resource 36% 50% 63% 66% 73% 52.5%

SB Secondee 8% 11% 9% 8% 9% 9.1%

SB Insource 8% 9% 12% 12% 13% 10.3%

SB External 48% 30% 16% 13% 5% 28.2%

100% 100% 100% 100% 100% 100%

6.2.3 How the Realisation Team Differs from the Common Design Team The main differences between the organisation structure for Realisation and the one already in place for Common Design are:- . Increased BCC Leadership – Accountability for deliverables associated with new processes, systems, organisation structures and roles will be explicitly attributed to BCC leaders . Solution Build – additional technical resources will be brought on to the team with the specialist skills required to build the systems designed during the Common Design phase . Business Readiness Model – additional resources from the Service Areas will be brought onto the team in line with the Business Readiness Model which has been agreed with the Programme Board . Contact Centre Provider – representatives from the Council’s chosen contact centre partner will be brought onto the team to manage the effective deployment of the solution into the contact centre . New Organisation – BCC staff will be start to be appointed to the new operational management roles identified in the Organisation Design which has been agreed by the Programme Board

6.3 Governance

The following Governance structure is proposed to guide the direction, make decisions and resolve issues arising during Realisation.

The Governance structure comprises the following bodies:- . Programme Board – it is proposed that the current composition and terms of reference of the Programme Board remain unchanged. The remit is to: o provide strategic direction for the Programme o ensure that the high level decisions required to deliver the agreed benefits are appropriately considered o Review and sign-off Programme Products (Level 1) o Engage key stakeholders in decision making o Escalate unresolved issues to the BTSG and BTAG

. CF Management Team – Used to discuss key decision points/escalation, progress by exception, commercial impacts. The remit is to: o Ensure the programme is on track to deliver benefits and deliverables o Monitor progress to plan o First point of escalation for issues affecting programme progress o Review and sign-off products (Level 1 & 2) o Engage key stakeholders in decision making o Escalate unresolved issues to the Programme Board

. Solution Leadership – provides day-to-day direction to the programme team, ensuring the solution is aligned with the Common Design, manages programme plans and resources, risks and issues as well as acting as the Change Control board. Membership of this group comprises leadership from each of the teams: Programme Direction, Channel Leads, Solution Architecture, Solution Build, Solution Deployment

. Deployment Board – will be a subgroup of the Programme Board to oversee the deployment of an individual rollout. They will be responsible for ensuring appropriate resourcing of the deployment teams and signoff of key milestones related to the deployment into each service area. Membership will include Programme Direction, the Head of Service Version 1.7 Page 63 of 67

or Programme Board representative for each service area within the rollout as well as Solution Deployment and Channel Leads

. Programme and Operations Meetings – various forums to provide an update from Operations and Programme regarding progress, escalation, issues and risks.

6.4 Benefits Realisation Plan

This section is taken from the Overview section of the Benefits Realisation Plan; for more information please see the Benefits Realisation Plan document itself. The primary objective of the Customer First programme is to increase the level of service provided by the Council to citizens, businesses and visitors. To achieve this objective, the Customer First programme must remain affordable – realising the benefits defined and agreed during the Common Design phase. The Programme Plan for Realisation describes the project activities that will “enable” the benefits for the Council. These include: creating a new Customer Service capability to handle 1st and 2nd response across all channels; a significantly enhanced self service channel promoted by effective marketing and campaigns to encourage channel shift; a single customer record and work flow system that removes the need to re-key customer data, allowing consistent tracking of customer service requests and allows the council to be more proactive. The diagram below shows the key activities related to benefits’ realisation and their timescales.

Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Benefits Cards & Revised FBC

Agree Ben Cards Agree Benefits Realisation Plan & budget adjustment mechanism

Revised FBC Signed off

Budget Adjustments For For For Services Services Services in R1 in R2&3 in R4&5

08/09 Budgets Finalised 09/10 Budgets Finalised 10/11 Budgets Finalised

Benefits Realisation Rollout 1 Rollout 2 Rollout 3 Rollout 4 etc

Monitor Benefits

Continuous Improvement (including Response Shift)

Channel Shift If Activity-based budget adjustment Finalise Cross Charging Apply New Charging Mechanisms (Service Management) approach mechanisms

As agreed by the Programme Board, the budget adjustments will be based on the planned volumes of work performed by the Contact Centre on behalf of the relevant Service. This plan will be updated periodically, and exceptional variances to this plan will also trigger budget adjustments. Currently, the Revised FBC includes some cross-Council benefits (e.g. efficiencies within case and job delivery). During the detail design process, the aim is to work with the relevant Services and identify how Customer First and the Service can achieve efficiencies; with these being documented Version 1.7 Page 64 of 67

Customer First Revised Full Business Case on Service-specific benefit cards, (and with the relevant Service then being removed from the “cross-Council” Benefit Card). If such an agreement cannot be reached with a Service, the benefits detailed on the Cross-Council Benefit Card would be applied top-down to the Service’s budget.

6.5 Programme Plan

The high level plan for Rollout 1 is shown below, highlighting activities across the relevant programme teams. Please refer to appendix 8.4 for the detailed programme plan.

Rollout 1 Project Plan

7. Business Case

To achieve the vision outlined in the Revised FBC will require an investment of £132.8million. Incremental operation costs of £42.3million will also be required, making a total cost over ten years of £175million. The projected benefits to be realised from the programme are £321million over 10 years, of which £197.4million is cashable.

8. Appendices

8.1 Benefits Cards

8.2 Common Design Report

The Common Design Report is not included due to its size (700 pages plus) – it is available on request 8.3 Cost Model Assumptions

8.4 Programme plan (MS Project)

8.5 Summary of Contact Centre KPIs & PIs

8.6 Notes of Customer First CMT Workshop