The Audit of Best Value and Community Planning Perth & Kinross Council

Prepared for the Accounts Commission August 2008 The Accounts Commission

The Accounts Commission is a statutory, independent body which, through the audit process, assists local authorities in Scotland to achieve the highest standards of financial stewardship and the economic, efficient and effective use of their resources. The Commission has four main responsibilities:

• securing the external audit, including the audit of Best Value and Community Planning

• following up issues of concern identified through the audit, to ensure satisfactory resolutions

• carrying out national performance studies to improve economy, efficiency and effectiveness in local government

• issuing an annual direction to local authorities which sets out the range of performance information they are required to publish.

The Commission secures the audit of 32 councils and 41 joint boards (including police and fire and rescue services). Local authorities spend over £18.9 billion of public funds a year.

Audit Scotland is a statutory body set up in April 2000 under the Public Finance and Accountability (Scotland) Act 2000. It provides services to the Auditor General for Scotland and the Accounts Commission. Together they ensure that the Scottish Government and public sector bodies in Scotland are held to account for the proper, efficient and effective use of public funds. Perth & Kinross Council  Contents

The Audit of Best Value Managing finance Page 2 Page 21

Commission findings Asset management Page 4 Continuous improvement activity Overall conclusions Page 22 Page 6 Competitiveness Part 1. Does the council have clear strategic direction? Delivering efficiencies Page 9 Page 23

The local context Equal opportunities Page 10 Page 24

Leadership and culture Part 3. How are services Page 11 performing? Page 26 Setting a clear direction Page 13 Statutory performance indicators Page 27 Community engagement Page 14 Customer focus Page 28 Part 2. Is the council organised to deliver better services? Education and children’s services Page 16 Page 29

Working in partnership and Housing and community care Community Planning Page 30 Page 17 The local economy Performance management and Page 31 reporting Page 18 Creating a sustainable environment Page 32 Scrutiny Part 4. What needs to improve? Managing people Page 35 Page 20 Perth & Kinross Council improvement agenda Page 36  The Audit of Best Value The Audit of Best Value 

This report is made by the Controller As Best Value and Community of Audit to the Accounts Commission Planning encompass all the activities under section 102(1) of the Local of a council it is not realistic to audit Government (Scotland) Act 1973. After everything in depth, so we plan our considering it the Commission may detailed work in two ways: do any or all of the following: • Where possible, we draw on • direct the Controller to carry out the findings of other scrutiny further investigations processes, such as the work carried out by the council’s • hold a hearing external auditors and by inspectorates. These are • state its findings. incorporated into our report.

The Local Government in Scotland Act • We select certain aspects of the 2003 introduced new statutory duties council’s performance for detailed relating to Best Value and Community audit investigation. A wide range of Planning. The scope of Best Value and sources, including the council’s own Community Planning is very broad assessment of its performance, but, in general terms, a successful reports issued by external audit and council will: inspections, and national statutory performance indicators (SPIs), • work with its partners to identify a informs this selection. clear set of priorities that respond to the needs of the community in The report reflects this selective both the short and longer term approach, with detailed commentary on some areas and limited or no • be organised to deliver those coverage in others. While we have priorities made some comparisons with other councils, our overall approach has • meet and clearly demonstrate focused on performance trends and that it is meeting the community’s improvement within Perth & Kinross needs Council. The report also reflects the picture available at the time of our • operate in a way that drives main audit work, conducted between continuous improvement in all February and March 2008. its activities. We gratefully acknowledge the The challenge for local government is co-operation and assistance provided to find new ways of working across to the audit team by Perth & Kinross services and with other bodies to Council. We would particularly like achieve the best results for citizens to thank Councillor Miller, the leader and service users. The key objectives of the council; Bernadette Malone, of this audit were to: the chief executive; and Barbara Renton, Improvement and Innovation • assess the extent to which Perth Manager, and all other members and & Kinross Council is meeting officers contacted during the audit. its duties under the Local Government in Scotland Act 2003

• agree planned improvements with the council. These will be reviewed by the council’s external auditor over the next three years.  Commission findings Commission findings 

1. The Commission accepts this 4. However, there are areas of service report on the performance of Perth delivery where the council needs & Kinross Council’s statutory duty to to further improve, most notably secure Best Value and to initiate and in relation to its planning function facilitate the Community Planning and to educational attainment. We process. The Commission recognises acknowledge that the council’s rate that the report gives a broad picture of service improvement is good and of the council’s performance based that the council itself recognises the on the work of Audit Scotland and the areas where improvement is needed findings of other scrutiny bodies such in service delivery. The council should as Inspectorates and that it does not also give attention to creating linkages attempt a comprehensive review of between its asset management, all service delivery. We acknowledge financial management and workforce the co-operation and assistance given planning arrangements. A particular to the audit process by members and challenge for the future is the need officers of the council. to provide affordable housing in the context of an increasing population. 2. Perth & Kinross Council demonstrates a strong commitment 5. The Commission considers that to Best Value. We acknowledge Perth & Kinross Council has the the effective leadership of the capacity and ability to build on its council, good relationships between current performance and looks councillors and officers and the forward to receiving an improvement close involvement of its Community plan with measurable and achievable Planning partners. The council outcomes which will build on the also has effective performance good work being done by the council. management arrangements.

3. The Commission also welcomes the council’s:

• high level of self-awareness

• culture of continuous improvement and focus on what works

• good corporate working

• engagement with employees

• implementation of the single status agreement with no disruption to service delivery

• open, clear and balanced public reporting.  Overall conclusions Overall conclusions 

Perth & Kinross Council to challenge service delivery between political group leaders demonstrates a strong models and deliver further is a key feature in providing clear commitment to Best Value and efficiencies. strategic direction. Parliamentarians continuous improvement and an are particularly well engaged through appetite for better services for the The full impact of recent changes the Parliamentary Forum. There is a area. The council and its strategic has not yet fully fed through to cohesive executive officer team that partners work well together, are service performance. In particular, deals with strategic cross-council clear about the priorities for the area the council has important issues in a professional manner and and are committed to the Perth and decisions to make if it is to meet provides regular scrutiny of financial Kinross Single Outcome Agreement its affordable housing targets and and performance information. Depute (SOA). The leadership of the council respond to the additional demands directors and heads of service have a is strong and effective in terms anticipated from high population significant role in corporate leadership of strategic direction, delivering growth projections. which enhances the council’s capacity change and providing the capacity to improve. for further improvement. There 1. Perth & Kinross Council are good working relationships demonstrates a strong commitment 4. Community Planning is well between elected members and to Best Value and continuous developed in Perth and Kinross, executive directors and relations improvement and an appetite for supported by a strong commitment between political group leaders better services for the area. The to partnership working, effective are constructive. council and its partners share a clear planning structures and a clearly and ambitious vision and they are defined set of desired outcomes. A robust performance committed to the Perth and Kinross Effective partnership working management framework is in SOA. The vision reflects the significant has already delivered improved place across the council. This is challenges faced by the council in outcomes, however, the council supported by good scrutiny of sustaining its rural communities, and its partners are clear on where performance, although scrutiny providing affordable housing and further improvement can be made. of decision-making processes is responding to the highest projected In particular, there is now a need still developing. This framework population growth in Scotland over to further develop performance provides a strong foundation the next 25 years. management arrangements across for developing performance the CPP to support the delivery of the management arrangements 2. The council has an ambitious Perth and Kinross SOA. across the Community Planning corporate improvement agenda Partnership (CPP) in support of which supports the delivery of its 5. The council can demonstrate many the delivery of the SOA. A more community and corporate plan positive examples of directly involving consistent approach is required objectives. It has robust performance local communities and service users to collate customer feedback at management arrangements based on in shaping plans and services. The the corporate level so that it can measuring progress against agreed council is aware that its communities better influence and shape service outcomes. Continuous improvement are changing and, recognising that delivery and performance. activity is embedded within service it can engage more systematically and team plans and is part of the and proactively with communities, it In recent years the council has culture of the council. Scrutiny has recently developed a community implemented significant structural arrangements to support performance engagement strategy. It is developing change, placing itself in a better and continuous improvement are a range of information and skills position to deliver its corporate sound but the scrutiny committee is among employees and communities objectives. Services are improving at an early stage in its development to support more effective above the Scottish average and regarding its coverage of the council’s engagement in future. overall, council services perform decision-making processes. slightly better than the national 6. To deliver its improvement picture. Improvements have 3. The council benefits from strong agenda, the council has successfully been made in services such as and effective collective leadership. undertaken significant structural education, social work and housing The leader of the council and the change over the last few years. but there is scope for further chief executive work well together Political and executive structures improvement in others such as in taking forward corporate priorities clearly align with the delivery of its planning. The council recognises and are committed to the involvement corporate priorities. Although it is too that more wide-reaching cross- of strategic partners in improving early to see the full impact of these cutting reviews are now necessary services for the area. The mature changes on services, there are signs and effective working relationship of good progress. 

7. The council manages its financial feedback in future. The council offers resources very effectively and has a range of services electronically and made progress in delivering efficiency its website has been independently savings. Further efficiencies should assessed as being among the best be achievable through the recently in Scotland. established procurement consortium with Dundee and Angus Councils. 11. The council has an ambitious The council has modernised its pay corporate improvement agenda and reward package through the and has established a culture of implementation of single status, but continuous improvement among there is scope to improve its approach employees and elected members. It to workforce planning, completing uses a wide range of self-assessment employee reviews and sickness and review methodologies to drive absence management. change; it is aware of what its priorities are and that it needs to 8. The council is committed to increase the pace of improvement providing equality for its employees in areas such as workforce planning and supporting them to deliver and equalities. equality for service users. It could better involve equalities groups in developing services and demonstrate that it is delivering equality in its services.

9. The council’s statutory performance indicators (SPIs) demonstrate improvement above the Scottish average. The changes which have occurred over the last few years are working through to services and the council is aware of those aspects where improvement is needed, taking robust action to achieve it. Good progress has been made in addressing improvements arising from external inspections in aspects of housing, education and social work. Action has been taken in seeking solutions to a long-standing problem in the time taken to process planning applications.

10. The council demonstrates its commitment to high-quality customer service by the effective implementation of customer service standards, the introduction of a customer service centre and the use of Kaizen Blitz techniques to improve customer outcomes. The council needs to complete its review of rural service contact arrangements and its implementation of the Customer Relationship Management (CRM) system. It also recognises that it needs to take a corporate view of customer satisfaction work to ensure that it is more systematic in seeking  Part 1. Does the council have clear strategic direction? 10

Perth & Kinross Council and Exhibit 1 its partners share a clear and Perth & Kinross Council by administrative areas ambitious vision and they are committed to the SOA for the area. The vision reflects the significant challenges faced by the council in Ward 4 sustaining its rural communities, providing affordable housing and Blair Atholl Ward 3 responding to the highest projected Kinloch Rannoch Pitlochry population growth in Scotland over Aberfeldy the next 25 years. Blairgowrie Alyth Dunkeld Ward 2 Ward 5 The council benefits from Coupar Angus effective leadership and strong Invergowrie Ward 6 commitment to Best Value and Scone Ward 1 Crieff Perth continuous improvement from both Ward 9 Errol elected members and officers. It Comrie Ward 11 Auchterarder Bridge of Earn has a well-structured corporate Ward 12 improvement agenda and has Ward 10 Ward 7 Ward 8 established a positive organisational Kinross culture focused on delivering improvement.

The council demonstrates good Electoral wards consultation with service users but recognises that it could involve its 1 Carse of Gowrie communities more systematically 2 Strathmore in shaping its policies, plans and 3 Blairgowrie and Glens services and is working towards 4 Highland improving this. 5 Strathtay 6 Strathearn The local context 7 Strathallan 8 Kinross-shire 12. Perth & Kinross Council is centrally 9 Almond and Earn located within Scotland covering a 10 Perth City South diverse area of 5,286 sq km, making 11 Perth City North it the fifth largest in Scotland by area. 12 Perth City Centre The area ranges from the central belt

commuter corridor to the rural areas Source: Audit Scotland of Highland Perthshire and borders eight local authorities. The council has 12 electoral wards (Exhibit 1). 14. The population is ageing. The 65+ will place increasing demands on age group is expected to increase council services. 13. Perth and Kinross has a population by 74 per cent by 2031, which is of 140,190, ranking it 14th highest in significantly higher than the national 15. Service sector jobs account for Scotland. A third of this population figure of 61 per cent. The council 80 per cent of all jobs in Perth and is located in Perth. There are also a is also projected to experience a Kinross. The economy is dominated range of smaller but rapidly growing 28 per cent increase in its migrant by small businesses especially communities such as Crieff, Kinross, population. The area has the third tourism, distilling, farming and Scone and Auchterarder. Between highest number of migrant workers forestry. The main employers are the 2001 and 2006, the population of all Scottish authorities, behind council, Perth Royal Infirmary, Scottish increased by 3.9 per cent, with a only Glasgow and Edinburgh. Best & Southern Energy, Norwich Union further predicted increase of 22.2 per estimates are that the peak migrant and Perth College. The median gross cent expected between 2006 and population is some 6,000 people, and weekly earnings (workplace based) 2031,1 which, with West Lothian, is possibly much higher, especially in in 2006 was £425.30, just below the the fastest growth in Scotland. the summer months. These changes Scottish figure of £432.00, and placed

1 Perth and Kinross Single Outcome Agreement. Part 1. Does the council have clear strategic direction? 11

Exhibit 2 above the Scottish average of £1,149. Gross expenditure of services 2007/08 (£400.1 million) For 2007/08, gross expenditure across services was £400.1 million (Exhibit 2). These figures are currently 0.2% 4.5% 0.7% Education services (£138.9m) unaudited with audited accounts 6.1% available in October 2008. 1.2% Social work services (£82.1m) 9.4% 34.7% Leadership and culture Roads and transport services (£24.1m) The council has strong and 4.7% Planning and development services (£9.2m) effective collective leadership at both political and official level. The Housing services (general fund) 9.6% (£38.4m) leader of the council and the chief executive work well together and 2.3% Cultural and related services are committed to the involvement 6.0% (£19m) 20.5% Environmental services (£37.7m) of strategic partners in improving services for the people of Perth and Central services (£4.9m) Kinross. There is a mature working relationship between political group Other operating expenditure leaders, which is a key feature in (£24.2m) providing clear strategic direction. Corporate and democratic core Parliamentarians are particularly (£3.0m) well engaged through the Non-distributed costs (£0.8m) Parliamentary Forum. Housing revenue account (£17.9m) A cohesive executive officer team deals with strategic cross-council Source: Audit Scotland issues in a professional manner and provides regular scrutiny of financial and performance information. The Perth and Kinross 13th highest in both males (76.5 years compared with chief executive demonstrates a Scotland. The unemployment rate at 74.6 years for Scotland) and females strong commitment to continuous 3.9 per cent (2005-06), compared to (81.2 years compared with 79.6 years improvement, which is supported 5.2 per cent for Scotland, places Perth for Scotland), and alcohol and drug by an enthusiastic culture and Kinross eighth lowest in Scotland. related hospital admissions are well and appetite in the council for below the Scottish average. improvement and the opportunities 16. Perth and Kinross has good road provided for employees to share links to the rest of Scotland. Perth has 18. Perth and Kinross is the eighth good practice. a small harbour, situated on the River most expensive council area in Tay, 30 miles from the North Sea. Due Scotland to buy a home, with an 20. The council has developed to the good road links, the harbour average house price of £188,431 a consensual style of politics is able to provide quick and efficient (December 2007). The area was through past experience of coalition transportation of goods to all areas of recently named one of the three administrations. Following the Scotland and Northern England, from regions with the fastest rising house local government elections in traditional agricultural related cargoes, prices in the United Kingdom. Eighty 2003, the administration consisted such as animal feedstuffs and per cent of homes are owner– of a partnership group involving fertilisers, to timber and chemicals. occupied while eight per cent are Conservative, Labour, Liberal Democrat rented from the public sector. This and Independent members. In August 17. The council has relatively low presents a challenge in providing 2004, this changed to an administration levels of deprivation, with pockets affordable housing options. comprising SNP and Liberal Democrat concentrated in some areas of North with an Independent leader. Perth and Eastern Perthshire. The 19. Gross expenditure on services Scottish Index of Multiple Deprivation in 2006/07 was £387.6 million, or 21. The current council consists of identifies that only nine data zones £2,765 per head of population, which 12 multi-member wards with 41 (5.7 per cent) are in the most deprived is lower than the Scottish average elected members. There are 18 SNP 15 per cent in Scotland, the 11th (£3,104) and the seventh lowest per members, eight Liberal Democrat, lowest nationally. Life expectancy is head of population. Band D council 12 Conservative and three Labour. better than the Scottish average for tax for 2007/08 was £1,158, just The current administration is an 12

SNP/Liberal Democrat coalition. Exhibit 3 Fifteen members were newly elected Important council forums which promote political debate and consensus on in May 2007. The council provided key strategic issues new and returning councillors with a comprehensive induction programme. • Strategic Leadership Forum: provides an opportunity for political group This initially covered six months, leaders to discuss forthcoming issues with the executive officer team and was extended by a further nine and agree the next steps. months following a review by group leaders in September 2007. • Parliamentary Forum: on a quarterly basis, Perth and Kinross parliamentary representatives (MPs, MEPs and MSPs) are invited to 22. The council has strong leadership meet with council group leaders and the executive officer team to at both political and official level. increase awareness and understanding of the key issues faced by the The leader of the council is highly area. It also provides the opportunity for parliamentarians to challenge regarded and demonstrates a and scrutinise the work of the council. commitment to improving services for the people of Perth and Kinross. • Member/Officer Working Group: groups have been established He and the chief executive work well to provide additional time to discuss specific important issues, together in taking forward corporate eg equalities and sustainable development. The council has a priorities and are committed to the modernisation member/officer group which oversees all improvement involvement of strategic partners in activity carried out in the council. planning, delivering and monitoring service improvements for the area. Source: Perth & Kinross Council

23. The chief executive provides strong leadership and brings a clear 25. The council is organised around 28. The council’s executive officer focus on improving corporate working five themed committees and a team (EOT) comprises the chief and a commitment to delivering scrutiny committee. Alongside these executive and four executive directors better services. Under her direction, sit the traditional development control, who are respected and provide clear a range of organisational reviews licensing and strategic policy and direction. Two executive directors have been undertaken which led to resources committees (Exhibit 4). (corporate services and education rationalisation and improvements in Members confirmed that they have and children’s services) were structures and leadership of services. productive working relationships and appointed in 2007, but are already She plays an important role nationally good access to officers who willingly integrated and fully contributing to as the Society of Local Authority Chief provide information and support. the team. Meeting fortnightly, the Executives in Scotland (SOLACE) lead Regular reviews of political structures team discusses strategic issues and for Best Value and is actively involved have been undertaken, the most plays an important governance role in developing policy on SOAs and recent in 2007 which confirmed the through regular scrutiny and challenge future scrutiny arrangements. existing structure. of corporate performance and financial information. 24. There is a mature working 26. All committees meet in public, relationship between political group except for specified items where 29. On a monthly basis, a wider leaders which is a key feature in information is judged to be exempt corporate management group of providing clear strategic direction. under statutory confidentiality depute directors and heads of They are in regular contact through provisions. Agenda papers are service meet to take forward policy council forums such as the Strategic available from the council’s website a development and implementation. Leadership Forum, the Parliamentary week in advance of each meeting. This group works on the detail of Forum and the Modernisation policy development and makes Member/Officer Working Group 27. The management structure recommendations to EOT. This (Exhibit 3). They take forward the includes five service functions provides opportunities for depute council’s strategic issues; the managed by the chief executive and directors and heads of service to Parliamentary Forum is a particularly four executive directors (Exhibit 5). lead on corporate issues and allows effective way of engaging national This structure reflects the council’s EOT to focus on strategic issues. politicians in local issues. The Forum themed committees and is consistent Operational matters are handled by is well attended by parliamentarians with Community Planning themed senior management teams who of all political parties, demonstrating partnership groups. meet within their services on a their commitment and support for the weekly basis. council and the area. Part 1. Does the council have clear strategic direction? 13

Exhibit 4 Council structure Perth & Kinross Council

Development Licensing Strategic Policy Scrutiny Common Good Control Committee and Resources Committee Fund Committees Committee Committee

Lifelong Housing and Community Environment Enterprise and Learning Health Safety Committee Infrastructure Committee Committee Committee Committee

Tayside Fire Tayside Police Tayside Tayside Children’s Licensing Board Board Joint Board Valuation Joint Contracts Joint Panel Advisory Board Committee Committee

Source: Perth & Kinross Council

Setting a clear direction

Exhibit 5 The council and its partners share Management structure a clear and ambitious vision that reflects local needs through the Perth and Kinross community Depute chief executive Executive director plan. They have agreed the SOA and executive director (Corporate services) for the area. The council’s vision (Environment) is supported through effective strategic planning underpinned by an ambitious corporate improvement agenda. The council Executive director Executive director has recently come through a period Chief executive (Housing and (Education and of significant structural change, community care) children’s services) which has delivered improvements that are expected to lead to higher Chief executive’s service performing services.

30. The council has a well-developed Source: Perth & Kinross Council vision which is clearly articulated and shared through the community and corporate plans. The community plan sets out the shared vision and priorities for Perth and Kinross and details how the Community Planning partners, including the council, will deliver these. The corporate plan sets out how the council will support the community plan and identifies 14

the high-level objectives the council Exhibit 6 is working towards to meet local Perth & Kinross Council’s vision, values and aims needs. In particular, the corporate plan highlights the key priorities agreed by The council’s vision is of a confident and ambitious Perth and Kinross with the council (Exhibit 6). These issues a strong identity and clear outcomes that everyone works together to regularly feature as agenda items for achieve. The area will be vibrant and successful; a safe, secure and members and the EOT, reflecting their healthy environment; and a place where people and communities are significance for the area. nurtured and supported.

31. The council’s improvement agenda To deliver on the vision, the council has identified the following five is set out in its organisational change corporate objectives: and improvement plan (OCIP) which has been developed at a corporate • A safe, secure and welcoming environment. level using self-evaluation processes. • Healthy, caring communities. The plan is aimed at building corporate capacity to better address challenges • A prosperous, sustainable and inclusive economy. and deliver the vision. The OCIP sits • Educated, responsible and informed citizens. at the heart of the council’s planning framework and is supported by five • Confident, active and inclusive communities. thematic groups each sponsored by an executive director. This structure Within these corporate objectives, the council has agreed the following puts the council in a strong position key priorities: to improve service delivery and the experiences of service users. • Protect children and vulnerable adults. • Provide affordable housing for purchase and rent. 32. The concordat between the Scottish Government and COSLA has • Improve recycling/composting of domestic waste. resulted in the development of SOAs • Raise attainment and achievement among young people. in each of the 32 councils in Scotland. Perth & Kinross Council was clear that • Change services in response to demographic change. it needed to involve strategic partners to take forward its SOA effectively. The Source: Perth & Kinross Council SOA was agreed by the council and the CPP in March 2008, following an intensive process involving councillors 34. The recommendations from 35. Since 1998, the council has and partners, identifying indicators and these reviews have largely been carried out 17 council-wide Viewfinder data sources and providing internal implemented and outstanding issues surveys of its citizens’ panel to gauge challenge through the EOT and other have been transferred to the council’s views on a range of issues affecting leadership forums within the council. OCIP. The period of change was life in Perth and Kinross. Views have While the SOA process is being refined managed effectively by the council been sought on the experiences of nationally, the council anticipates and the new structures provide a solid community safety, health issues such that it will provide the focus for its foundation for delivering improved as exercise and diet, and awareness performance management framework service performance. of Perth College and the services it (Exhibit 9, page 19). provides. More specifically the council Community engagement has sought feedback from the panel 33. In recent years the council has on how they contact the council, undertaken a period of significant The council can demonstrate methods of payment offered and structural change which has affected many positive examples of directly use of libraries, museums and parks all services and required some difficult involving local communities and open spaces. This information is decisions to be made. Strategic and service users in shaping used to inform council strategy and reviews of services have been plans and services. The council partnership working. conducted over the last three years, in recognises that it can engage more addition to a review of the corporate systematically and proactively with 36. The council has worked to directly core. The council was assisted in its changing communities and has involve service users and its rural these reviews by external consultants. recently developed a community and urban communities in shaping The result has been a reduction engagement strategy to support plans and services, particularly those from 14 departments to five service this area. communities experiencing social functions as shown in Exhibit 5. and economic change – for example Part 1. Does the council have clear strategic direction? 15

the Area Based Initiatives in Eastern Exhibit 7 Perthshire and in Kinross. Placecheck Involving citizens in service delivery – Placecheck in Errol in Errol and the review of learning disabilities (as shown in Exhibits 7 and Staff from education and children’s services and the environment 10 (page 25) respectively) represent service worked with the community in Errol to prioritise opportunities for two positive examples of this. improvement in the area. In June 2007, they carried out a Placecheck (a way of assessing the qualities of a place, looking at what improvements 37. The council’s recent review of are needed and focusing people on working together to achieve them), consultation and engagement activity ‘walking’ the area in small groups, taking photographs and notes, and over 2006/07 has highlighted that coming up with a prioritised list of environmental improvements. Community communities have been engaged in capacity workers supported the Placecheck by engaging local schoolchildren discussions across all of the council’s in the planning process, generating interest with local groups and providing a wards, but that the extent of activity crèche during the event. has been varied. It recognises the need to become more systematic A follow-up session was carried out with local community groups in in involving communities in planning August 2007 to prioritise short, medium and long-term actions. This and service delivery. This is reflected resulted in action to empty bins more frequently, relocating park benches, in its OCIP and more recently, in the repairing gates, replacing road markings and clearing back vegetation. In Community Engagement Strategy addition, longer term plans were put in place covering dog fouling, litter, play 2007-10, published in January equipment in parks and the introduction of a street improvement scheme. 2008. The council aims to use the community engagement strategy Comments from participants: to improve its own approach, before developing a broader partnership • ‘An excellent, worthwhile, informative exercise which will hopefully lead approach to community engagement. to long-term improvements.’

38. The council is also supporting • ‘Good coverage of representatives to answer questions, eg planning, better community engagement community services, youth workers etc.’ in a number of practical ways, • ‘A well thought out event that should enable progress to be made on including identifying service- several important issues.’ based champions to develop and coordinate engagement across the Placecheck was considered a success in improving public spaces in Errol. It organisation; developing a community was beneficial for all involved to have the opportunity to meet and discuss engagement and consultation toolkit issues face to face and work together to try to find solutions. The council for employees; and using its team of therefore decided to roll out this approach across Perth and Kinross. seven community capacity workers to give communities better skills to Source: Perth & Kinross Council engage with the council. 16 Part 2. Is the council organised to deliver better services? Part 2. Is the council organised to deliver better services? 17

There is a strong ethos of 39. Community Planning is well Government to develop a model partnership working in Perth and developed within Perth and Kinross for successful interventions Kinross and Community Planning is and is supported by a strong ethos of to tackle antisocial behaviour. well developed. This has delivered joint working between key partners. Services delivered and coordinated a range of improved outcomes for The council embraces partnership through the Perthshire Youth local communities. working to deliver improved outcomes Justice Partnership have helped throughout its area and partners achieve one of the largest The council has effective are positive about the council’s reductions in persistent young arrangements for managing and effectiveness in leading Community offenders in comparison with other scrutinising its performance and to Planning and the progress being made council areas. support continuous improvement. in achieving the partnership’s priorities. It manages its financial resources • Integrated management and very effectively and has made 40. The council works in partnership delivery of care services through progress in delivering efficiency with neighbouring councils in the Perth and Kinross Community savings. Further efficiencies Dundee and Angus, primarily through Health Partnership (CHP) have should be achievable through the collaborative arrangements for helped increase the proportion recently established procurement contracting goods and services. The of older people receiving care consortium with Dundee and economies of scale generated by at home and reduce delays in Angus Councils. The council these joint arrangements enhance discharging people from hospital has modernised its pay and the council’s ability to secure more (with only four people experiencing reward package through the competitive services and obtain better a delay of six weeks or more implementation of single status value for money. during 2006/07). but there is scope to improve the approach to workforce planning and 41. The current community plan, • Perth & Kinross, Dundee and sickness absence management. Working together for Perth and Angus Councils jointly procure Kinross, published in February 2007, key services such as catering, The council is committed to is the third community plan for Perth cleaning, roads and winter providing equality for its employees and Kinross and sets out a long-term maintenance from a commercial and supporting them to deliver vision for 2020. The plan defines consortium (Tayside Contracts) and equality for service users. It the high-level desired outcomes, have also recently established a could better involve equalities with related key delivery strategies, Tayside Procurement Consortium, groups in developing services and supported by a range of indicators which formalises collaborative demonstrate that it is delivering and projected five-year targets that procurement of goods and other equality in its services. the partnership will use to measure services that has taken place over its impact and success in the shorter a number of years. The council has robust processes term. Eleven of the 13 respondents in place for handling its wide range (85 per cent) in our survey of • Initiatives with Perth College, of assets. Community Planning partners were Scottish Enterprise Tayside positive about their involvement in and others have contributed Working in partnership and developing the shared vision for Perth to year-on-year increases in Community Planning and Kinross, and this is reflected local gross domestic product in the way key partners have been (GDP), the proportion of people Community Planning is well actively engaged in developing the in employment, the number developed in Perth and Kinross Perth and Kinross SOA. of people gaining vocational and is supported by a strong qualifications, as well as other commitment to partnership 42. Effective partnership working has developments, such as a land- working, effective planning delivered a range of achievements in based curriculum tailored to structures and a clearly defined key areas such as community safety, secondary school pupils in set of desired outcomes. Effective health and wellbeing, and lifelong rural areas. partnership working has delivered learning in recent years: improved outcomes for local 43. Effective partnership structures communities within Perth and • Work with community safety are in place to oversee the delivery Kinross, and the council and its partners has resulted in a 34 of the shared vision in Perth and partners are clear on where further per cent reduction in antisocial Kinross (Exhibit 8, overleaf). The improvement can be made. behaviour and 16 per cent CPP is supported by a number of reduction in vandalism, and partnership groups that work on Community Planning partners are themes in specific areas, such as working jointly with the Scottish the Area Based Initiatives group, 18

Exhibit 8 • continually working on how the Perth and Kinross Community Planning structure partnership measures progress

• being more responsive to and Individual partner organisations engaging better with communities committees/boards • developing common structures

Perth and Kinross Community • introducing a ‘virtual’ Perth and Planning Partnership Kinross plc embodying all partners

Perth and Kinross Community • establishing more joint procedures Planning Executive Group such as joint induction for new employees

• considering co-location of services. Area based Children and Community Business and initiatives young people safety jobs Performance management and reporting Environment Health and Lifelong wellbeing learning The council has an effective approach to performance management with systematic reporting to officers and elected members. It has an informative Local communitites/ performance report which is readily citizens available on its website. Its public performance reporting is clear Source: Perth & Kinross Council and balanced. There is scope to use interim targets and external comparison more explicitly in which tackles social and economic theme, had lost some momentum performance reports to committees. regeneration in priority areas. Elected due to the changing national context The council is now adapting its members are well represented in but now has a clearer focus following approach to support the reporting the partnership structures, with 18 a review of its effectiveness. Changes requirements of the SOA. of the 41 members involved. The in the national context included the majority of partnership groups are review of Scottish Enterprise, the 47. Performance management is well chaired by elected members, with the restructuring of VisitScotland and developed (Exhibit 9). The council has exception of the children and young a new contractor for Business integrated its corporate and community people partnership, which is chaired Gateway Tayside. plan vision with its service plans – the by the chief executive and the health Business Management Improvement and wellbeing group chaired by NHS 45. The CPP was reviewed in 2005, Plans (BMIPs). These translate the Tayside. Each executive director acts with improvements to its operations four-year aims of the corporate plan as a lead officer for at least one CPP designed to deliver better outcomes, into annual targets. The service plan group to ensure the integration of for example more stringent objectives are then translated into community and corporate planning. partnership scrutiny and governance service level actions through team plans, arrangements to routinely scrutinise which link to individual’s objectives 44. Partnership groups generally work the delivery of intended outcomes through the Employee Review and well, although Community Planning and indicators of impact. At each Development (ERD) process. partners indicated through our survey meeting the partnership looks in that the leadership of partnership detail at achievement against a single 48. The CPP led by the council groups could be shared more Community Planning theme. approved its first SOA in March 2008 widely between agencies to foster and is considering how to collect and a stronger sense of partnership, and 46. Recent review activity has report the necessary information to meetings could be less bureaucratic. identified a range of areas where monitor progress. Other aspects of The economic partnership, which is aspects of Community Planning can the framework are well established responsible for taking forward work be strengthened, including: and include: in relation to the business and jobs Part 2. Is the council organised to deliver better services? 19

Exhibit 9 monitored annually once exam results Performance management framework become available, whereas housing repairs are monitored monthly to allow intervention as required. A B C External scrutiny The Golden Internal scrutiny Thread 50. Performance management is well embedded at service level. Service management teams monitor B1 operational performance on a Single Outcome systematic basis using trends and Agreement exceptions to align with the EOT A1 C1 Public Indicators performance reporting timetable. For example, education and children’s Public Performance Statutory performance B1 services has developed a detailed Reporting indicators (SPIs) Perth and Kinross programme of internal performance Annual Public Performance Community Corporate Plan indicators reporting including local and SPIs, Report Plan Service performance PKC Performs (website) indicators its standards and quality report and statistical reports, customer A2 B2 C2 Audit Scotland Reports satisfaction and training provision. Perth & Kinross Team plans are used to translate BMIP Statutory performance Council Corporate Annual performance report objectives to individual responsibilities indicators Plan Service six-month Audit of Best Value and performance reports including annual targets. Community Planning Monthly performance reports B3 Annual SPI reports 51. Performance reports are well Service business set out and highlight areas of strong C3 A3 management Inspectors Self-evaluation and weak performance. These are and improvement included within agenda papers and HMIE How good is our council? plans on the council’s website. Trends SWIA How good is our school? The Scottish Housing Regulator Best Value reviews are monitored using both local and statutory performance information. Care Commission B4 Benefit Fraud Division/team Case studies are used to help illustrate progress. However, apart from the plans C4 A4 annual report of SPIs, the reports Accreditors Accreditation COSLA Excellence Awards often lack external comparison with COSLA B5 performance elsewhere. Quality Accreditors Individual work Other accreditation plans/ERD 52. The corporate plan and its corresponding annual performance report have clear targets for 2010, but Source: Perth & Kinross Council lack interim targets. There are annual targets which are reported through the BMIP progress reports along • a comprehensive reporting • an annual progress report on the with a wide range of detailed service timetable to the EOT OCIP to the strategic policy and delivery and improvement measures. resources committee Including progress against these • six-monthly and annual reporting interim targets in the council’s annual of service plan (BMIP) progress • an annual public performance performance report would allow the to service committees and the report and statutory performance council to demonstrate more clearly scrutiny committee indicators report. progress against its overall objectives.

• an annual performance report on 49. The EOT plays a key role in 53. The council’s public performance progress against the corporate plan monitoring performance and reporting is clear and balanced. It receives reports according to an provides a snapshot of the council’s • annual progress reports for annual timetable that reflects the direction of travel with regard to key Community Planning to each of business cycles of individual services. objectives and illustrates these by a the themed partnership groups For example, school attainment is range of case studies. The council’s annual report is supported by service 20

annual performance reports which council has an overarching Scrutiny for members to discuss these reports provide progress against BMIP action Committee which has the remit to in detail outwith the business of the plans. Other significant reports include monitor all aspects of the council’s full committee. the chief social work officer’s annual activities and to carry out its own report, and education and children’s programme of planned investigations. 59. Performance is considered by services standards and quality report service management teams and EOT which extends beyond education to the 56. In line with good practice, the on a regular basis. MPs and MSPs for wider service. In November 2007, the Scrutiny Committee is chaired by a the Perth and Kinross area have an council launched PKC Performs on its member of the opposition. It has opportunity to challenge the council website which provides a useful update been within the council’s committee through the Parliamentary Forum and of the council’s performance against its structure for some time and has group leaders have a range of other main objectives. The format shows an well-developed arrangements for the opportunities through the Strategic overall trend, along with more detailed scrutiny of performance information. Leadership Forum and member/officer performance information. The facility is However, its role with regard to working groups. not yet widely used by members and scrutiny of decision-making processes officers. However, it has the potential to has only recently started to take Managing people be a very useful source of performance shape and particular emphasis is information, particularly for elected being placed on the development The council values its employees members and the public. of a programme of investigations to and regards them as central to be undertaken by the committee. delivering improvement but it 54. Risk management and The convenor is keen to learn about has yet to develop a coordinated contingency planning principles are different scrutiny models in operation approach to workforce planning well understood within the council. across Scottish local government and needs to ensure its employee The council has had a corporate risk so that existing best practice can review process is up to date across management strategy in place for be adopted. Additional support is all services. It has modernised its some time. There is an established being provided by the Strategic pay and reward package through process for producing risk profiles Management and Improvement Team. the implementation of single at corporate and service level which status, supported by effective link with the planning process and 57. The committee receives a range communication and consultation. It are monitored by EOT and the of performance reports and service has also recently approved an HR Scrutiny Committee. The council has briefings from officers. During 2007, strategy, reviewed its arrangements experience of incident management, plans and performance reports were for managing sickness absence in for example major flooding events, submitted to committee several response to increasing absence Foot and Mouth disease, major events months after the reporting period. This levels, and is in the early stages such as the G8 Summit and T in was due to the impact of the council of rolling out an innovative the Park, and has also planned and elections and the resource required to employee survey. exercised for potential major incidents. induct councillors. While the Scrutiny Committee has received information 60. The council approved its HR Scrutiny timeously in 2008, it should continue Strategy Securing the Future to keep the council’s frequency of – Together With Our Employees in The council has sound scrutiny reporting under review. June 2007. This includes an Employee arrangements providing Charter setting out the council’s members and officers with 58. The Audit Sub-committee commitments to, and expectations regular opportunities to consider manages the relationship between from, employees to support the performance information. The the council and its internal and council’s vision. There is still a lot Scrutiny Committee is at an early external auditors. The committee of work to do to implement the stage in its development regarding meets on an eight- week cycle and strategy which the council expects its coverage of the council’s has a lay member who provides to take four years, including the decision-making processes. financial advice to the committee. It development of service and corporate is chaired by the vice-convenor of the workforce plans. 55. The council’s committee structure Scrutiny Committee. We observed has been designed to ensure the operation of the committee as 61. The council’s intranet is the main there is appropriate scrutiny from part of the audit and noted robust mechanism for keeping employees elected members. Each of the discussion on agenda items. In informed, along with face-to-face themed committees is responsible addition, the Lifelong Learning communication. However, not all for monitoring the performance of Committee has a sub-committee employees can currently access the services in delivering the council’s which scrutinises all school inspection intranet so other mechanisms such as corporate objectives. In addition, the reports. This provides the opportunity paper newsletters are also produced. Part 2. Is the council organised to deliver better services? 21

The council recognises long service for occupational stress as well as new focus groups confirmed that some and is keen to celebrate success occupational health arrangements. employee reviews were not up to through a newly introduced Securing date but employees were positive the Future awards ceremony, where 64. The council’s latest employee about training opportunities provided new approaches to improvements survey, undertaken in 2005, provided by the council. in services are recognised and positive feedback from employees. rewarded. Business breakfasts also Action plans were developed to Managing finance provide opportunities for employees progress issues at both corporate to engage with the chief executive and service levels with the EOT Financial management is very and executive directors to share monitoring progress on an annual strong in the council and has good practice both within and basis. The latest progress report, in continued to improve in recent across services. February 2008, confirmed that all years. A comprehensive reserves material actions had been delivered. policy is regularly updated as part 62. The council implemented the of the budget process and, more single status agreement from August 65. The council is developing an recently, medium-term planning 2007 with no disruption to service online employee survey focusing has been further developed to delivery. A job evaluation process on 15 key questions designed with better align budgets and corporate was undertaken affecting around a short turnaround period to give objectives. 4,500 employees, with 98 per quick feedback at team level. This cent voluntarily accepting the new has been successfully piloted in the 67. The council’s general fund balance contracts offered. All employees chief executive’s office and corporate increased by £8.8 million for the year are now working under new services, with the environment 2006/07, increasing the cumulative terms and conditions. This process service next in line to trial the process. surplus on the general fund to was supported by an effective The experiences of the environment £28.7 million. The surplus for communication strategy involving service will be important as many the year consisted mainly of: project employees, elected members, unions employees do not have online access slippage in roads and transport of and the media, and consultation at and therefore other ways of reaching £2.8 million, planned carry forwards critical stages in the process. The employees are being considered. It in school budgets through devolved council has received 990 appeals and is intended to roll out the survey to school management of £1.2 million, is currently progressing these. The all services by the end of 2008 and additional income of £2 million from council’s reserve strategy earmarked conduct these three times a year council tax and, due to the delayed funds to meet the implementation of in each service. A key advantage implementation of single status, a single status and future costs. is that this process will quickly provision of £2 million was carried identify specific issues and because over to fund single status costs 63. The council has reported an information is gathered at team in 2007/08. increase in sickness absence levels level, swift action can be taken to among chief officers and local address issues. 68. Through prudent financial government employees, rising from management, the council has 3.8 per cent in 2004/05 to 5.5 per 66. Only 71 per cent of employees traditionally held a significant cent in 2006/07. While this remains have current personal objectives amount in reserves. At 31 March just below the national average of agreed with line managers. Although 2008, this was expected to be around 5.6 per cent, it represents a sharp the council has an established £32 million, representing significant increase in absence levels. Sickness review scheme, uptake is variable commitments of £22 million for equal absences for craft workers also across services ranging from pay and single status provisions, increased while there was some 79 per cent in corporate services to amounts earmarked for affordable improvement in teachers’ absences. 65 per cent in education and children’s housing and investment in the The council is undertaking a review services. In the latter case, the school estate, and free balances of to identify and address the underlying service introduced a revised scheme £10 million. This is in line with the issues. In 2006/07, there was a focus bringing teachers from a biennial council’s reserves strategy, which on better management of teachers’ process to an annual process in line was recently updated and aims for an absences which achieved savings of with all council employees. It is more uncommitted general fund balance of £231,000. The HR strategy sets out difficult to embed the review process between two and four per cent of net a positive and proactive approach to with front line employees in rural revenue expenditure. employee health and wellbeing. There areas and/or part-time workers. The are new framework documents, review process is supported by the 69. The council has recently set including the employee health and council’s corporate training plan which out its first medium-term financial attendance procedure, dignity at work offers development opportunities plan, which covers a five-year procedure and revised arrangements linked with corporate objectives. Our period. This new plan is important in 22

demonstrating how overall financial Asset management Continuous improvement activity resources will be used in delivering key corporate objectives. As part The council has robust processes The council has a well-structured of the budget setting process, in place for handling its wide range improvement process linked to services were asked to prepare of assets. its performance management their submissions to the EOT in framework. This includes an the context of the corporate plan 72. The council has done a significant integrated programme of reviews objectives. Each proposal included a amount of work in taking forward and clear leadership from senior brief impact analysis showing how its asset management strategy and managers. Employees are it was linked to the delivery of key plans. An overarching corporate asset increasingly involved in self- objectives. However, the process is management plan covering the four evaluation and other improvement not yet sufficiently developed to show strands of roads and greenspace; activities. whether resources are shifting to fleet; ICT; and property is currently meet changing priorities. being pulled together but the detail 75. The chief executive’s office is already in place, supported by has a Strategic Management and 70. A comprehensive system of data on all types of asset held and Improvement Unit which leads on effective budget monitoring is in place condition surveys. new corporate initiatives and shares with regular reporting to members. and supports good practice across The monitoring reports provide 73. Service asset management plans the council. It provides guidance members with a clear picture of inform the BMIP process and the and monitors implementation and the main financial issues and overall capital planning process. A protocol consistency across services. Good financial position against the agreed for identifying and dealing with review and project management budgets on a timely basis throughout surplus property was agreed in 2007 guidance has been developed to help the year. A budget flexibility scheme and regular reviews take place to ensure a consistent approach to service has operated for a number of years identify any other surplus assets. The improvement. This includes the use of which allows the carry forward of capital prioritisation process depends self-assessments such as ‘how good unspent monies with council approval on costed business cases requiring is our council?’ to inform corporate and and within permitted limits. consideration of both capital needs service improvement plans. and revenue implications; however, 71. In line with planned whole life financial estimates have not 76. In addition to its major structural improvements, capital plans were always been robust. This is an area reorganisation, the council has also extended from three to five years where services recognise that they undertaken ’fit for purpose’ reviews as part of the last budget setting need to improve. to further rationalise and clarify process. In preparing the new plans, management structures, and to the council’s corporate resources 74. An example of how the council identify areas of under-capacity. The group manages a robust process links its assets with service objectives council has also been developing its which requires business cases to is its promotion of Perth harbour. An overall approach to modernisation and support significant capital bids and options appraisal was commissioned customer services. a ranking process against specified for increasing the use of the harbour criteria based on the corporate plan. for river based freight. Through 77. The council has integrated Projects within the existing three-year consultation with a harbour users improvement activity into plan were reviewed to ensure they group, the study identified the need performance management and met the new criteria and are aligned to regenerate the harbour as a service planning. The OCIP 2006-10 to corporate priorities and service business area and improve marketing sets out a five-year council-wide BMIPs. In addition, the council is to encourage greater freight capacity. improvement programme covering implementing a housing standard The council is on track to meet key best value areas such as delivery plan which will achieve the its 2008 target for a two per cent people management, customer housing standard and the Scottish increase in freight tonnages handled services, sustainability, continuous housing quality standard by 2015. by the harbour. improvement and governance. The plan includes timescales for action and identifies responsible officers. This is supported by separate detailed project plans as the scope of each objective is developed and agreed by the executive sponsor and responsible officer. This provides an effective mechanism to measure progress against the OCIP. Part 2. Is the council organised to deliver better services? 23

78. The council is now making defects significantly improved grounds maintenance was formerly good progress in many of the OCIP following the review, with 100 per contracted out in its entirety but was areas including: cent of Category 2 roads defects brought back in-house following a completed within target (seven days) review of cost and quality. • adopting a HR strategy in April 2007 compared with 66 per cent in April 2006. Aspects of the 84. The council also tenders all new • developing medium-term financial planning service are covered in Part 3 construction work over the value of planning and five-year capital of this report. £150,000 and 25 per cent of all other planning new work, but it does not expose all 81. A further nine Kaizen events have existing work areas to regular market • improved performance reporting to taken place including a joint exercise testing. The council needs to ensure service management teams and with the CHP. A framework is now that benchmarks are available across the EOT in place to manage Kaizen Blitzes all of its commercial activities. as a prioritised programme within • establishing a contact centre resources. While the approach is 85. Tayside Contracts has extensive leading to process improvements in experience and a good track record • approving a corporate procurement service areas, it is too early to assess in winning a significant proportion strategy and consortium contracts the overall impact across the council. of competitive contracts, and it also has contracts with other councils and • developing an ICT strategy 82. Employees are also encouraged roads agencies. It is therefore a good including investment plans. to make time for improvement activity practice example of effective joint by delaying opening to the public working allowing the three authorities 79. Recent review activity in the one morning each month, to allow to benefit from economies of scale. council such as homecare, learning employees to participate in activities disabilities and property maintenance such as Team Plan updates, e-learning, 86. The council’s process to market has led to improvements in existing and service self-evaluation. test 25 per cent of new work in services and processes. The council addition to all high-value work has also recently conducted more Competitiveness provides a benchmark comparison strategic reviews including options for specific contract areas. It also appraisals of leisure services and its The council operates a mixed undertakes benchmarking to a harbour operations. These have not economy of service provision. varying extent across its commercial yet produced detailed finalised It procures services including activities. For example, it ensures options with costed benefits. In catering, cleaning and building its building services costs are in line order to robustly challenge existing maintenance both externally and with the national Housing Quality approaches to service delivery across through Tayside Contracts, a joint Network rates, and it has recently the council and to achieve greater trading arrangement with Dundee joined a benchmarking group to share impact, the council recognises that it and Angus Councils. It also good practice in schools catering. needs to identify and deliver a more provides some services in-house, However, most detailed benchmarking extensive programme of strategic such as social housing repairs, is undertaken as part of service best value reviews. grounds maintenance and refuse improvement reviews rather than on collection. However, market testing a systematic basis. The council has 80. The council demonstrates good is not undertaken systematically recognised the need to improve its practice in continually improving its for all existing commercial activities benchmarking approach in its 2008 existing processes to support its and the council does not apply corporate improvement plan. services to customers. It routinely benchmarking consistently across involves employees in the change its operations. Delivering efficiencies process. For example the ‘Kaizen Blitz’ technique was adopted by the 83. The council’s Best Value review The council is making progress in council in November 2006 to improve guidance includes options appraisal delivering efficiency savings. This business processes. This involves to identify alternative service is expected to accelerate now a team of employees spending delivery options. The council has that a collaborative procurement an intensive week identifying not routinely exposed commercial framework is in place, with further improvement actions which is activities to competition since 1996. savings also anticipated from the followed by a 90-day implementation It benchmarks its activities against range of continuous improvement period. Early reviews included its comparators where robust activity conducted by the council. handling planning applications and information is available. It has market roads and street lighting faults. tested services where it is aware of Performance in dealing with roads cost or quality issues; for example 24

87. In 2006/07, the council reported audit is being progressed. The council Development scheme (ERD). Equality that it had achieved total efficiencies is currently implementing PECOS, the improvements made by the council of £3.2 million, including savings government sponsored eProcurement include increased physical accessibility from procurement (£0.2 million), system, and is involved in national of its public offices and, along with absence management (£0.2 million), initiatives such as Scotland Excel. partners, the production of a detailed improved energy/water efficiency and guide for migrant workers entering better use of equipment and vehicles 90. The three councils in Tayside the Perth and Kinross area. (£0.3 million), debt restructuring and launched the Tayside Procurement improved collection levels Consortium (TPC) in November 92. The council could have involved (£0.6 million), streamlining 2007 and are considering the further equalities groups more effectively in bureaucracy (£1.4 million) and others inclusion of Tayside Contracts. developing its policies and statutory (£0.5 million). No savings were The consortium formalises equalities schemes. It has made identified from shared services. existing collaborative procurement efforts to increase their involvement arrangements in the area. A strategy, in developing services for particular 88. The council has built efficiency management and governance needs and can demonstrate some savings into its budget setting arrangements have been established positive practice (Exhibit 10). In processes over the last two years, and a central procurement team is responding to the increasing diversity with all services required to make a located in Dundee to work closely in Perth and Kinross, the council contribution. Detailed analysis was with the individual councils. Initial has identified the need for better undertaken to support completion of estimates of total consortium savings engagement with equalities and the council’s 2006/07 annual efficiency over the next two years are in the minority groups. This is outlined in its statement. It is not currently possible, region of £2 million. equalities strategy and its community however, to monitor progress in engagement strategy action plans, achieving efficiencies throughout the Equal opportunities although these would benefit from year as this is built into budgets and clearer targets against which to monitored in overall terms through The council is clearly committed judge success. the budget outturn. It would therefore to providing equality for its be helpful to members and EOT if employees and supporting them to 93. The council implemented the processes were in place to more deliver equality for service users. single status agreement on 1 August systematically collect information on It could, however, further involve 2007 and subsequently published efficiency savings. equalities groups in developing its equal pay policy. A gender impact services and it needs to improve assessment of the single status Procurement its performance monitoring to agreement has been carried out, along demonstrate that it is delivering with an interim equal pay audit of the The council has recently increased equality through its services. pay and grading structure over the momentum in implementing remainder of 2007/08, which did not its procurement strategy. Lead 91. The council’s approach to identify any unexplained variances in officers have been identified in equalities is guided by its Corporate the salaries between men and women. services to promote a consistent Equalities Policy, Equalities Strategy approach to procurement. A central and action plan 2007-10 and its 94. SPIs for 2006/07 relating to procurement unit is in place and statutory schemes for race, disability equalities show that 56.7 per cent a consortium involving Perth and gender equality. Its commitment of council buildings were accessible & Kinross, Dundee and Angus to delivering equal opportunities is a to disabled people; this is above the Councils has been established. core value of the council, reflected in Scottish average of 51.9 per cent. its strategies and plans and through The proportion of women among 89. The council has largely a number of working practices. For the highest paid two per cent and implemented its procurement plan, example, the council has established five per cent of council employees which was approved in 2006 to a Corporate Equalities Group led by was 26.5 per cent and 36.1 per cent support its Corporate Procurement the chief executive; a member/officer respectively, both below the national Strategy. A central procurement unit working group to lead development averages of 33.9 per cent and is in place supported by a governance of equalities across the council; a 40.4 per cent. framework and within services local good range of equalities guidance and champions have been identified to learning opportunities for employees; communicate and promote new and the inclusion of ‘equality and approaches. A central contracts dignity at work’ as a competence register is in place and a full contract in the Employee Review and Part 2. Is the council organised to deliver better services? 25

Exhibit 10 Designing services around users needs – review of learning disabilities

The learning disability service has been reviewed with the aim of transforming a relatively traditional service into an inclusive personalised service that will promote social inclusion and participation.

People with learning disabilities have been fully involved in the planning and implementation of the review, with 125 users of adult learning disability services in Perth and Kinross along with 46 family carers being consulted about the redesign of service. As part of the extensive consultation exercise carried out by the Consortium for Learning Disability, individuals had a video diary room where they were able to discuss their experiences and issues and a person with learning disabilities was part of the consultation team. Service users continue to be involved in the implementation of the review through a consultation reference group and representation on the project board.

As a result of the innovative approaches taken, the services and opportunities offered are being redesigned to meet the current and future needs of service users more effectively.

Source: Perth & Kinross Council

95. Performance in meeting equalities requirements is reported six-monthly to EOT and the Strategic Policy and Resources Committee. However, monitoring data relates predominantly to equality in employment, and does not extend across the council’s key policies or its range of services. This means that the council is unable to demonstrate that it is meeting its statutory duties of providing equality in the delivery of its services and functions. This has been identified in the council’s strategic Best Value review of equalities implementation, from which the council has agreed to carry out a programme of improvement for equalities. 26 Part 3. How are services performing? Part 3. How are services performing? 27

The council’s SPIs demonstrate Exhibit 11 improvement above the Scottish SPIs: Performance change between 2004/05 and 2006/07 average. The majority of indicators are in the middle quartiles but, Measures that Measures that overall, the council performs slightly worsened by: improved by: better than the national picture. >15% 10-14% 5-9% 5-9% 10-14% >15%

The council is aware of those Scotland 7 3 4 5 4 11 aspects where improvement is needed. Good progress has been Perth & Kinross 10 2 1 7 3 14 made in addressing improvements Source: Accounts Commission SPIs arising from external inspections in aspects of housing, education and social work. Action has been and council profiles on its website. The • Respite care (children) – percentage taken in seeking solutions to a council profiles contain 82 measures of respite nights not in a care home. long-standing problem in the taken from the SPIs. While these do time taken to process planning not present a comprehensive picture of • Respite care (children) applications. The council has performance across all services, they – percentage of daytime respite developed a sound approach do allow some comparisons and trends hours provided not in a day centre. to managing and delivering its between councils and over time. services in a sustainable way but • Consumer complaints it needs to better demonstrate its 97. The council’s SPI performance – the percentage of complaints environmental impact. shows an improving picture between processed within 14 days of receipt. 2004/05 and 2006/07, compared to The council is committed to the Scottish average (Exhibit 11). • Refuse collection – the net cost delivering high-quality customer Between 2004/05 and 2006/07, per property of refuse collection. care and this is reflected in its performance worsened by at least customer service standards. The five per cent on a total of three • Asset management – proportion council needs to take a corporate indicators, compared with a national of operational property that is in a view of customer satisfaction average of seven indicators, and satisfactory condition. activity to ensure that it is more by at least 15 per cent on a further systematic in seeking feedback ten indicators, compared with a • Homecare – percentage of in the future. The council needs national average of seven indicators. homecare clients aged 65+ to complete its review of rural However, 24 indicators improved by receiving personal care. service contact arrangements at least five per cent, demonstrating and its implementation of the an improvement to decline ratio of 100. In addition, there are three customer relationship management 1.8. This is better than the national indicators that are ranked among system. The council offers a range improvement to decline ratio of 1.4. the three worst performing councils. of services electronically and its In all three cases, the council has website has been independently 98. The distribution of SPIs across all recognised the need for improvement assessed as being among the best aspects of performance compared and has allocated extra funding in in Scotland. to other local authorities indicates these areas as part of the 2008-09 that the majority of indicators remain budget process: Statutory performance indicators in the middle quartiles. The number of measures in the upper quartile • Homecare – total hours as a rate The council’s SPIs demonstrate is slightly higher than the national per 1,000 population aged 65+. improvement above the national average and the number of SPIs in the average. The majority of indicators lower quartile is slightly lower than the • Respite care (children) – total are in the middle quartiles but, Scottish average (Exhibit 12, overleaf). overnight respite nights provided overall, the council performs slightly per 1,000 population. better than the national picture. 99. There are seven indicators where the council is ranked within the top • Planning application processing 96. Each year local authorities three performing councils: time – the percentage of are required to report and publish householder applications dealt information about their performance • Staff qualification – the percentage with within two months. through SPIs. Audit Scotland collates of care staff in residential homes the information for all councils and for children who are qualified. 101. We considered performance publishes a compendium of all SPIs within a selection of the council’s 28

Exhibit 12 Perth. When fully implemented, the Council profile of SPIs 2006/07: number in each quartile by service area CRM should contribute to enhanced customer service and better performance monitoring. Upper Middle Lower quartile quartile quartile 104. The council is in the process of Adult social work 4 13 3 reviewing the face-to-face customer contact provided in rural areas. This Benefits administration – 1 1 work will look at how best to maintain Education and children’s services 3 2 3 a council presence and ensure efficient and effective customer Corporate management 5 6 1 service in rural areas. Cultural and community services 2 8 – 105. Customer satisfaction with Development services – – 2 services is reviewed in a range of Housing 2 9 – ways, including satisfaction surveys, Source: focus groups and the business Protective services 3 2 – first survey. Service BMIPs contain Roads and lighting 1 3 – measures of customer satisfaction and progress on these is considered by Waste management 3 2 1 senior management teams. However, there is no corporate overview of Total 23 46 11 customer satisfaction activity and the Scottish average 21 47 14 council needs to be more systematic in its collection and use of customer Note: There were two measures recorded as ‘no service provided’: adult social work (residential views. There is also scope to improve care staff who are qualified, working with other adults) and protective services (domestic noise complaints, requiring attendance on site). links between customer feedback and the performance management Source: Accounts Commission SPIs framework to better inform future decision-making and corporate services. Commentary on relevant 102. The council can demonstrate improvement activity. statutory and local performance a commitment to good customer indicators is provided in the sections service through the implementation of 106. Work is currently taking place that follow, together with other its customer service standards in April to meet the national Customer First evidence of how each is performing. 2007 and the effective monitoring of agenda. The Kaizen Blitz methodology these standards. has been applied in a number of Customer focus front line service areas to help deliver 103. These standards are part of its services more accurately, quickly The council has effectively Customer Service Strategy introduced and efficiently. These included implemented customer service to develop its approach to customer reviewing the effectiveness of the standards and improved call handling. care and customer handling. A public reception area in Pullar House; In addition, it needs to ensure Customer Service Centre (call improving customer access to front that customer service training and centre) was set up in October 2006 line social workers; and examining the development is fully implemented for to provide a single point of contact issues faced by the planning service. all front line staff. It asks customers to handle service enquiries and The council has also completed a for their views on services in a range transactions. The council also created Kaizen of its complaints system of ways but recognises that it needs a Customer Service Point, located and a new system is due to be to take a corporate view of customer within Perth city centre, to handle implemented later this year, which satisfaction work to ensure that it face-to-face contact with customers. will more effectively track individual is more systematic in seeking and The implementation of the council’s cases and help the council to use using feedback in the future. The CRM system is in its early stages. information about complaints to council needs to complete its review The system went live in March 2008. improve its services. of rural service contact arrangements Before making it a more widespread and its implementation of the tool for managing and coordinating 107. The Society of Information customer relationship management customer interactions, the intention Technology Management (SOCITM) system (CRM). is to roll it out to the reception of recognises the council’s website as Pullar House, one of the council’s one of the top in Scotland, being one main offices located in the centre of of only seven councils to be classified Part 3. How are services performing? 29

as an ‘excellent’ or ‘transactional’ Exhibit 13 website (Better Connected, 2008). Secondary school attainment – June 2007 The council is committed to offering a number of services through electronic Perth & Kinross Scottish means and continues to develop this Attainment provision to help ensure customers Council average can access services through a wide Percentage of S4 roll gaining 5+ awards range of channels. 35 34 at level 5 or better by end of S4

Education and children’s services Percentage of S4 roll gaining 3+ awards 25 22 at level 6 or better by end of S5 HMIE report that educational Percentage of S4 roll gaining 5+ awards attainment has been improving, 22 20 and is broadly comparable with the at level 6 or better by end of S6 national averages but below that of comparator authorities. The recent Source: Scottish Government improvements follow a period of instability in management and leadership. Indications are that the for individual children and young in particular attainment in secondary new leadership team is providing people. They will not have direct schools. Attainment information clear direction and a focus on contact with children but will be from 2007 shows that a majority improvement. aware of progress and seek to ensure of pupils achieved national levels in that individual needs are being met. reading, writing and mathematics by 108. A new executive director of the end of S2 and by S4 and S6, the education and children’s services 110. The education function of the overall proportion of pupils achieving (ECS) was appointed in December council was last inspected by HMIE in success in national qualifications was 2007. Since 2000, the post had been May 2003. At that time the inspectors above national averages for most filled by five different directors, two found financial management to be measures of performance (Exhibit 13). of whom had acted in interim roles. very good; eight aspects, including Attainment was in line with national The service management team is leadership, to be good; and two averages on a number of measures also relatively new, with heads of aspects, continuous improvement of performance of lower-attaining service appointed in 2006. Together and deployment of centrally pupils. HMIE reports can be found at: they are re-building confidence in the employed staff, to be fair. Attainment www.hmie.gov.uk leadership and direction of the service. in mathematics in primary schools and at S3/S4 in secondary schools 112. School inspection reports from 109. A joint post of chief social work required improvement, and there 2005 to 2007 found variations in officer (CSWO) and depute director was a need to measure the impact of quality. In many cases, aspects of of housing and community care was initiatives designed to improve pupils’ the service were deemed to be introduced in 2004. Good progress is achievement and attainment. good or very good; however, some being made by both community care inspections highlighted issues around and children’s services to strengthen 111. Follow-up reports were issued attainment, the quality of leadership and integrate this role across their by HMIE in August 2005 and in and effectiveness of approaches to services. The CSWO attends ECS September 2006 to assess progress self-evaluation. More recently, school management team meetings when in meeting the recommendations inspection reports and follow-through required and reports directly to the from the first report. The first reports have found that quality has chief executive. Good outcomes have follow-up reported that, overall, improved overall, although there been achieved with regard to the limited progress had been made. continue to be isolated cases of weak number of children and young people The September 2006 report performance. in residential care. In 2007, education indicated that most pupils were outcomes for looked after children achieving appropriate national levels 113. Through its school estate improved and the council hopes to of attainment but the education management plan, the council achieve further improvement using authority’s performance was below recognised the need to invest and a range of methods including its the average of comparator authorities replace school buildings and to more corporate parenting initiative. A group on almost all key measures. While effectively manage accommodation of volunteer senior officers from the the inspectors were able to conclude capacities. As part of an ambitious EOT and the corporate management that overall good progress had been investment in learning project, group will fulfil the role of advocates made, more needed to be done to of approximately £100 million, strengthen aspects of the service and construction of six new community 30

campuses is in progress with Exhibit 14 completion expected over 2009-11. SWIA evaluation of social work services in Perth and Kinross – March 2007 The business change project board has wide representation across the service and will work closely with Area for evaluation Rating campus change teams who have Outcomes for people who use social work services Good responsibility for engaging with the Impact on people who use social work services and community and the school over Adequate construction and implementation of other stakeholders the new facilities. In addition, the Impact on staff Adequate capital programme has provided £30 million in recent years to Impact on the community Adequate construct new schools and provide Delivery of key processes Adequate significant upgrades. Policy and service development, planning and Good 114. Education and children’s services performance management also include cultural and community services. Over the last two years Management and support of staff Adequate these services have received national Resources and capacity building Good recognition for libraries, arts, heritage and youth services. For example, Leadership and direction Good the heritage service received the Capacity for improvement Very good Significance Award which recognised the council’s collection as one of Source: SWIA, March 2007 national significance.

115. Community groups have 116. In May 2007, the Scottish by SWIA which has commended worked with community learning Housing Regulator (SHR), formerly the council for its work to achieve and development staff to assess the Communities Scotland, reported improvements in social work services needs of communities across Perth on its inspection of housing and in both housing and community care and Kinross. There is an increasing homelessness services in Perth and and education and children’s services number of examples of communities Kinross. Housing management and since the publication of the original being involved in shaping services in property management were assessed performance inspection report. their areas. Examples include the Start as ‘fair’ while homelessness was SWIA reports can be found at: festival, North Perth info text project assessed as ‘poor’. www.swia.gov.uk and the literacy and sport project targeted at vulnerable young people. 117. The council responded quickly and 119. The 2006/07 SPI data shows that positively, making significant progress the council’s performance is high for Housing and community care in addressing the most critical issues in the number of homecare clients to the report. For example, the Greyfriars which it provides personal care, and Recent inspections of housing hostel has been completely revamped that it provides this care to an above and social work services have and management structures revised to average number of clients during highlighted a strong capacity improve facilities and the experience for evenings/overnight and at weekends. for improvement within these clients at the hostel. The council agreed In contrast, the council’s performance services and this is borne out in its improvement plan in December is marginally below the national the demonstrable improvements 2007. This will be monitored by the average across the range of SPIs the council has subsequently SHR and its reports can be found at: relating to its criminal justice services. made. Effective joint working www.scottishhousingregulator.gov.uk between housing and community 120. There are a number of effective care services and with the NHS is 118. The Social Work Inspection joint working arrangements covering helping to provide more integrated Agency (SWIA) published its findings housing and community care services and improved outcomes from a performance inspection of services. For example, two social for users. However, the council is the council’s social work services workers are permanently based not meeting its affordable housing in March 2007 (Exhibit 14). Overall, at Greyfriars homeless hostel and targets and this continues to be a SWIA provided a mixed picture of managed through the housing service challenge with high average house performance but highlighted a very to support the needs of homeless prices and growing population. good capacity for improvement. A residents. There is effective working follow-up visit has been carried out Part 3. How are services performing? 31

with NHS Tayside and Perth and 2008, the committee rejected restructuring of VisitScotland and a Kinross CHP, for example, joint proposals for 57 houses contrary to new contractor for Business Gateway commissioning of services, officers’ recommendations. Despite Tayside. The council also reviewed co-location of mental health services, making improvements to the way it the effectiveness of the partnership joint funding of posts for older approaches affordable housing, the during this period and it is now being people, and joint review work. Good council needs to examine how it can taken forward under a new structure. integrated working is having a positive better translate this into successful The partnership meetings are now impact on outcomes, for example, outcomes for its growing and more focused to include updates from significant reductions in delayed increasingly diverse population. working groups, and tackle specific discharges for hospital patients. themes such as employability and Historically, Perth & Kinross has been The local economy infrastructure. actively involved in testing new ways of working with partners to improve The council has a strong vision Tourism and events service outcomes and this is reflected to promote the local economy 126. The council has a partnership in it being the first area in Scotland to and recognises the important with VisitScotland to market Perth and have single shared assessments for role of tourism. It has actively Kinross nationally and internationally. its clients. supported events in partnership The Experience Perthshire Tourism with communities and the private Strategy & Action Plan for 2006-11 121. Affordable housing is a clear sector. The council has set sets out a clear vision to develop and priority for the council, but in recent ambitious economic targets for market Perthshire as one of Europe’s years it has failed to meet its targets 2010 and beyond but needs to most highly regarded tourism for increasing the supply of affordable set more explicit interim targets destinations. This is supported with homes. During 2006/07 there were to demonstrate progress against five-year targets including numbers of 136 new affordable houses built in these. It faces challenges in visitors and tourism expenditure. The Perth and Kinross compared to a providing employment opportunities council has adopted the government’s target of 172. At the time of our audit, and developing the infrastructure to ambitious target to increase the value data available for 2007/08 estimates support economic growth. of tourism to the economy by 50 per a further 150 new affordable houses, cent from 2005-15. a shortfall compared to the council’s 124. The council has a clear vision target of 174. The council faces a to support the local economy as set 127. In March 2007, Perth & Kinross number of challenges in improving out in the ’prosperous, sustainable, Council was accredited with Cittaslow the supply of affordable homes, inclusive economy’ and ’vibrant status, with the support of Scottish including the availability of affordable and successful area’ aims of the Enterprise Tayside. Cittaslow aims land, especially within areas of corporate and community plans. to encourage all sections of the Highland Perthshire. These include clear targets for 2010 community to enjoy healthy eating relating to employment, vocational and healthy living, the protection and 122. To address this, the council is qualifications, business start-ups improvement of the environment, and developing a holistic approach to and inward investment from tourism. the promotion of local producers and affordable housing. For example, it The council recognises its importance traditional production values, signing works closely with local landowners as the largest employer in the area, up to 60 goals in order to adhere to to secure land below market rates and and the role of tourism as a key its principles. The accreditation is in has established an affordable housing economic driver. its early days and it is too soon to working group to look at the issue measure the tangible benefits of in relation to its impact on school 125. The Economic Development Cittaslow. capacities, other local infrastructure Strategy and Joint Action Plan and services, along with an affordable (2006-10) provide the context and 128. For 2006/07, the council has housing member/officer working vision for economic development reported an 11 per cent increase in group to oversee developments. centred on partnership working. tourism revenues (from £373 million However, the strategy does not in 2006 to £417 million in 2007) 123. The council has provided state interim milestones for the exceeding its target of eight per training in relevant policy areas for council’s 2010 targets. The Economic cent. It believes it can achieve its members of the Development Control Partnership, a Community Planning 2015 target to increase the economic Committee, although this has not themed partnership group, had contribution from tourism through directly improved the success with to refocus its efforts over the last major events and increased marketing. which affordable housing applications year due to changes in the national are approved by the committee. context including, for example, the Between May 2007 and February review of Scottish Enterprise, the 32

129. Perth and Kinross hosts a Exhibit 15 number of major events including the Increasing tourism – the Blair Castle International Horse Trials T in the Park music festival, the Blair Castle International Horse Trials, and The Blair Castle International Horse Trials is an annual event which has the Enchanted Forest. It estimates demonstrated sustainable growth since 1989. that events contribute some £15 million to the local economy. The In 2005, Perth & Kinross Council together with national bodies EventScotland council aims to develop events and and SportScotland worked in partnership with the event director to promote the ultimately encourage community and event to one of international status. The funding package created allowed the business ownership so that events event to develop to a level where it was able to host European championships. can be self-sustaining without the In 2007, the Blair Castle International Horse Trials hosted a successful European need for ongoing funding. Young Riders Championship.

130. For example, the Enchanted The event attracted 35,000 visitors and £3.4 million to the local economy (an Forest sound and light experience increase of over £2 million in three years). was established by a public sector partnership in 2002 and attracted Source: Perth & Kinross Council approximately 2,000 visitors in its first year. The event has now moved from Dunkeld to Pitlochry with the Enterprise and Skills 134. The council has made some local community, through the Pitlochry 132. Perth and Kinross is experiencing progress in addressing economic Partnership, taking an active role in positive economic trends in its Gross needs in more rural areas. For developing the event and making Domestic Product (GDP), monthly example the Eastern Perthshire Area links with local businesses. In 2006, earnings, vocational qualifications Based Initiative (Exhibit 16) illustrates the event attracted 16,000 visitors and employment figures. In common a range of initiatives involving and an economic impact assessment with other councils, it has a contract the local community. The council identified a net contribution of over with Business Gateway to support recognises that it needs to further £500,000 to the area. Owing to the business start-ups. It has funded develop its approach to locality success of the event, the council’s an additional two business advisers planning to ensure that rural areas financial contribution has reduced over to provide business support in rural and small towns are supported. the years to £5,000 in 2008. areas. The council did not meet its target level of new business start- Creating a sustainable environment 131. The council assesses a ups in 2006/07 but is on schedule to range of funding criteria including meet the target of 230 for 2007/08. The council is clearly committed the economic impact of events, Approximately 75 per cent of to improving the quality of its anticipated numbers of visitors, and business start-ups were still operating environment, the quality of life of the capacity of the events organisers. after three years, above the national local people and the local economy It has developed an events strategy level of 67 per cent as indicated in and this is reflected in a range and a support toolkit for event a 2007 Department of Trade and of actions and initiatives. It has organisers to help promote good Industry small business survey. developed processes to support practice. It is developing its approach environmental improvement, and to community consultation to ensure 133. There are lower numbers of a sustainability framework and that residents are made aware of the people of working age claiming quality of life indicators to better potential benefits of events as well as benefits in Perth and Kinross, at manage the environmental impact any negative impact. Exhibit 15 is a some 5.8 per cent compared to of its plans, programmes and further illustration of how events can a national average of 9.7 per cent strategies. However, it needs to contribute to the economy in Perth of population. However, there are better demonstrate its impact and Kinross. particular challenges in rural areas in practice. Given its projected where opportunities are more limited population growth, Perth & Kinross and travel can be restrictive. The faces particular challenges in council and its partners have set a reducing landfill waste and carbon target to get 2,000 people on benefits emissions. In common with other into work from 2008-11 through councils, it also needs to find ways creating training and employment to maximise the contribution of opportunities. Together they have procurement towards sustainable developed an employability strategy. development. Part 3. How are services performing? 33

Exhibit 16 137. The council has targeted local Working together in Eastern Perthshire environmental improvements in Hillyland and Letham, employing The Community Planning Partnership/Area Based Initiatives Group, in a dedicated neighbourhood conjunction with local community group Strathmore and the Glens Rural environmental team (NET) that has Partnership, held a public consultation event in December 2005, involving over made a positive impact on public 100 participants from the Eastern Perthshire community. From this, an action spaces and street cleanliness. plan was finalised to reflect the regeneration aspirations of their community. 138. The council’s commitment The Steering Group includes representatives from Perth & Kinross Council, to sustainable development is Perth College, Communities Scotland, Strathmore and the Glens Rural demonstrated by the EOT leading Partnership, VisitScotland, Blairgowrie and Eastern Perthshire Tourist sustainable development as one Association (BEPTA), Blairgowrie Merchants, Alyth Business Association and of the nine OCIP improvement Coupar Angus Regeneration Trust. themes; a sustainable development network; and a recently established Key achievements to date have included: member/officer group to ‘champion’ sustainable development across • Sirolli International Pilot Project to stimulate enterprise locally. the organisation. It is also standard practice within the council for all • Coupar Angus Townscape Heritage Initiative securing £5 million reports to committee to include investment to regenerate the town’s built heritage. the outcome from a strategic • Tourism is now being taken forward by the local community-led environmental assessment. In Blairgowrie and East Perthshire Tourism Association (BEPTA) to promote addition, the council can demonstrate Eastern Perthshire. a number of practical improvements in sustainable development, such • Young People’s Employability Skills Survey is further developing links as energy efficiency targets in the between the schools and local businesses to improve the delivery of Auchterader master plan exceeding vocational courses through work placements. recommended levels and plans for • Revitalisation of key streets through the Façade Enhancement Scheme a number of the new education in Blairgowrie. campuses to move towards • The widening of membership on the Steering Group has increased the greener energy through the use number of actions being led by community representatives with the of Biomass energy. support of the public sector bodies. 139. In common with other councils, Source: Perth & Kinross Council minimising waste and improving recycling is one of its most significant environmental challenges. This is a particular issue for the council in 135. The projected population growth 136. Protecting and maintaining the view of the population projections. It in the area over the next 25 years natural environment as well as the also presents a substantial financial poses significant challenges for the character and heritage of towns and challenge due to escalating landfill Perth and Kinross environment. villages in Perth and Kinross is central tax and the council is potentially The council is being proactive in to the council’s vision. It is clearly facing a financial liability of around ensuring that all members and senior committed to managing the projected £5 million under the Landfill officers are clear on the implications population growth in a way that Allowance Scheme. In response, of planning for growth and that it is continues to improve the quality of the council is using £0.5 million of its addressing the impact that growth the local environment and the quality Investment in Improvement funding will have on all services in an of life of local people. At the time of to extend its kerbside recycling integrated and sustainable way. The our audit, the council was developing service to all 55,000 households in projected scale of growth in Perth an innovative web-based public space Perth and Kinross by the end of 2009. and Kinross will require the council management guide, setting out the to make difficult decisions about new standards it is working to and how 140. The council has made progress and extended communities and it communities can be involved in in more efficient fuel usage in is clear that it needs to involve local improving them, as well as providing buildings and vehicles and cleaner communities in these decisions. a single point of reference for anyone vehicle procurement but has yet to with an interest in public spaces, demonstrate significant improvements such as developers, architects, and in the contribution of procurement local residents. towards sustainable development. 34

Strategic initiatives which have determined within two months, assisted in this area include working well below the national average of in partnership with the Carbon Trust 61.4 per cent. in launching its energy management and conservation policy, approving a 143. The performance of the planning sustainable development framework service in recent years has been supported by quality of life indicators influenced by a number of factors. A and completing a State of the growth in the number and complexity Environment report that acts as a of planning applications received in diagnostic tool to inform planning recent years, for example a 14 per and decision-making processes. The cent increase in 2007/08, along with council was awarded the Energy recruitment difficulties, has resulted in Institute’s energy accreditation high caseloads for individual planning certificate in May 2008. officers of around 200 applications per officer per year and a large and Planning increasing backlog of applications to be dealt with. Development plans need to be kept up to date to reflect the high 144. The council has made a number rate of projected population growth of changes and introduced new in Perth and Kinross. Performance initiatives to address performance in dealing with planning applications issues. It has restructured the has been poor in recent years. service, introduced a ‘grow your own’ Recent changes are beginning initiative to address difficulties in to improve performance and this recruiting planners, and made process needs to be sustained. improvements and introduced more effective performance management 141. Development planning has an through carrying out a Kaizen Blitz important role in accommodating in February 2007. The changes have the high rate of projected population resulted in improved performance. growth in Perth and Kinross over the For example, application throughput next 25 years. The council needs to has improved by 14 per cent over ensure its structure plan and local plans the last year, although this will are regularly updated to reflect the not be reflected in 2007/08 SPIs changing context. This is highlighted in because the service has focused on the latest population growth projections addressing the backlog of applications. for Perth and Kinross of 22.2 per Performance data shows that cent from 2006 to 2031, seven improvements following the Kaizen times greater than the three per cent Blitz exercise have been variable assumption in the structure plan. The and it is important that the service council’s ability to finalise reviews of its can sustain performance local plans is, however, being delayed improvement through an overall by commencement of the new programme of change. Planning etc. (Scotland) Act 2006 in October 2008 and current legal opinion around the application of strategic environmental assessment regulations.

142. The poor performance of the council’s planning service has been confirmed by our survey of elected members; an internal audit report in January 2008; and a trend of relatively poor performance against published SPIs in recent years. Latest SPI data for 2006/07 shows that only 50.2 per cent of planning applications were 35 Part 4. What needs to improve? 36

The council has an ambitious Perth & Kinross Council improvement agenda corporate improvement agenda and has established a culture • Ensure that effective progress is made on the key strategies that support of continuous improvement sustainable growth and regeneration, and in particular, the specific issues among employees and elected around planning for growth and affordable housing. members. It uses a wide range of self-assessment and review • Enhance performance management processes by being more methodologies to drive change and systematic in the use of customer satisfaction information, clearer has a high level of self-awareness articulation of milestones and outcomes and benchmarking comparators. of priorities for improvement. The • With strategic partners, further develop performance management council also recognises the need arrangements across the Community Planning Partnership to support the to consider more radical options to delivery of the Single Outcome Agreement. deliver its ambitious plans. • Implement and monitor the community engagement strategy, to enable the council to become more systematic in involving communities and in The council has dedicated a particular, equalities groups. significant amount of effort to developing robust frameworks and • Further develop medium-term financial planning linked with asset strategies within identified areas for management plans. improvement and action plans are • Develop and implement workforce planning and ensure that all employees in place for implementing change. have reviews that are up to date and objectives set and monitored. Work is under way to deliver • Develop a more robust approach to competitiveness which considers improvements required in some a more strategic programme of cross-cutting areas, benchmarking and core services, including raising options appraisal. educational attainment and • Sustain performance improvement in handling planning applications. development planning. • Continue to provide corporate support to the new service management team in education and children’s services to maintain stability and 145. Continuous improvement in sustain improvement. public services and local governance lie at the heart of the Best Value and Community Planning policy framework. Elected members must service delivery and this has been improvement plan. The improvement focus on key policy objectives and recognised by the council within plan will provide the basis for review the needs of service users and its plans. and monitoring by the council’s communities, driven by a desire external auditor over the coming years. to achieve the highest possible 147. The council demonstrates standards in service delivery. This good awareness of where service requires a culture where areas in performance needs to improve and need of improvement are identified is taking action to raise attainment and openly discussed and in and improve the indicators linked which service performance is with processing planning applications. constructively challenged. Inspections have been conducted across education, housing and social 146. To achieve this, Perth & Kinross work in recent years, highlighting Council has taken forward an important action to be taken which the ambitious programme of continuous council has been active in addressing. improvement initiated by reviews of the corporate core and strategic 148. The improvement agenda sets reviews of services with current out a number of priority actions activity now largely coordinated designed to focus the council on within the organisational change key areas for improvement. They improvement plan. The council widely are intended to assist the council uses self-evaluation techniques and in identifying those areas where it has recently adopted the Kaizen should focus its initial investment. It Blitz methodology for examining is consistent with the council’s self- specific processes. In order to achieve assessment of improvement areas ongoing improvement, there is a and many of the actions required have need to examine different options for already been built into the council’s Perth & Kinross Council

If you require this publication in an alternative format and/or language, please contact us to discuss your needs.

You can also download this document at: www.audit-scotland.gov.uk

Audit Scotland, 110 George Street, Edinburgh EH2 4LH T: 0845 146 1010 F: 0845 146 1009 www.audit-scotland.gov.uk

ISBN 978 1 906752 11 8 This publication is printed on uncoated paper, made from 100% post-consumer reclaimed material.