Transcript Document

Review of Buildings Maintenance
Vale of Glamorgan Council
Final Report- December 2009
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Content
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Introduction and Background
Audit Approach
Key Messages
Review Findings
Next Steps
Action Plan
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Introduction and Background
The Council's Buildings and Vehicle Services DSO is crucial to the Council’s
ability to deliver the requirements of the Wales Housing Quality Standards
(WHQS) by 2014, and to deliver some of the efficiencies required under the
Making the Connections agenda.
However, there is a risk that it is not delivering the expected requirements. This
was raised by the Council and the Wales Audit Office (WAO) during the risk
assessment exercise that informed our audit plan.
For the Direct Service Organisation (DSO) to be able to deliver a service that
meets these internal and external requirements, it must have, a clear business
plan, clear performance targets (at all levels, in order to identify issues and
ensure that resources are being used optimally) and service level agreements
clarifying expectations.
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Introduction and Background- continued
Given this, we have carried out a high level review focused on the following
questions:
– What are the key issues facing the service? Does it have the necessary
performance and management information available to inform and confirm this
position?
– What has been done to realign/redesign the service, to ensure that it has the
capacity and capability to meet current demands, whilst achieving efficiency
targets?
– Are business and service plans consistent with current needs and are they
leading the service in the right direction?
These are all issues that have been looked at in previous reports (latterly, by KPMG
who reported in June 2008). We have sought not to replicate previous reviews but to
concentrate on the over-arching management arrangements, the current position of
the service and its clarity of direction in moving forward.
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Audit Approach
The approach selected for this review has included:
• a review of relevant documentation;
• interviews with senior officers; and
• maintaining a watching brief on developments during early Autumn 2009.
Given the implementation of a major upgrade to the IT system supporting
the service during the period of our review, we have been able to observe
progress and test its potential impact on service delivery.
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Key Messages
Before presenting the results of our audit, under each of the three focus questions,
this slide summarises the key messages emerging from our work.
Overall, it is evident that progress has been made in recent months towards meeting
the aspirations and objectives set out in the Business Plan published in 2007.
Changes are particularly evident in respect to the management information
supporting the operational activity of the Service.
Other developments include:
– the introduction of a new appointments system (September 2009);
– business process re-engineering for front line and back-office functions;
– the implementation of mobile working for all operatives (from September 2009);
and
– the transfer to the national schedule of rates.
The Service is responding to weaknesses previously identified.
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Key Messages- continued
However, our review suggests that further work is needed to strengthen the
arrangements supporting service transformation. The framework for monitoring
progress is currently limited to internal and informal checks on delivery. There is no
regular, external review or challenge against an agreed implementation or
improvement plan.
This reflects the wider need to strengthen performance and risk management
arrangements within the Service. The delivery of higher level strategic goals for the
service are not routinely and formally monitored. Risks are assessed annually but
there is no mechanism for the systematic and regular update of the service risk
register and risk management plan.
Further development of the formal processes for performance and risk
management will support the management of change within the service. Change
management capacity and capability is limited yet an essential prerequisite for the
successful delivery of new operational systems and processes.
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Key Messages- continued
Given these findings, the remit of our review, and the detailed recommendations to
improve operational performance produced in previous reports (which the Service
is in the process of implementing), five recommendations emerge from our work.
Recommendations:
– strengthen and develop performance management arrangements within
the Service;
– identify change management support to strengthen the transformation
agenda;
– ensure a clear view of customer needs and requirements underpins the
updated business plan;
– agree an implementation plan to support the updated business plan, in
order that roles and responsibilities are clear and to allow progress to be
tracked; and
– develop robust risk management arrangements within the service.
Further details on the findings that support these recommendations are included
within the following slides.
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Review Findings
Background and Service Context
The Buildings Maintenance Service has been subject to three independent
reviews in the last three years and concerns have been raised on a significant
number of issues including financial viability, operational performance and
processes, service administration and information systems.
However, the WAO report of Nov 2008 on WHQS commended changes and the
direction of travel within the Service and improvements to cost effectiveness.
Our recent work suggests that progress continues to be made and the last two
months have seen:
– the introduction of the national schedule of rates;
– the implementation of a new appointments system;
– the roll out of mobile working to all operatives; and
– the agreement of an SLA with Housing.
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Review Findings
What are the key issues facing the Service?
The improvements noted present an opportunity for a step change in the
performance of the Service. However, they need to deliver significant change from
the outset, including:
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higher productivity levels and increased income per employee;
improved financial performance, to reduce the deficit;
efficiency savings; and
evidence of greater value for money.
These are all areas where issues remain.
Whilst the IT improvements provide an element of the solution, they need to be
accompanied by a commensurate step change in the operational culture. Whilst
there are some signs that this is happening, capacity and expertise to deliver
cultural change appears limited, as does overall management capacity.
This creates a greater risk for the Council of failing to achieve the outcomes
desired. It is exacerbated by the need to strengthen and embed robust
performance and risk management arrangements within the Service.
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Review Findings
Does the service have the necessary management and performance
information, in order to address these issues?
The recent changes in the management information system supporting the
Service will provide the information necessary to address the some of the
issues presenting. For example
– information is now available easily accessible on the extent to which targets
are being met (such as for income per employee, time to respond to routine
appointments); and
– recovery information is available by each individual job;
It is reported that data quality has improved as there is less reliance on manual
recording and interventions and through the more systematic use and
evaluation of data.
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Review Findings
Does the service have the necessary management and performance
information, in order to address these issues?- continued
As well as improvements in the quality and nature of the information available,
our recent work also indicates that the performance management arrangements
are progressing:
– regular reports on compliance with the WHQS are presented to the Housing
Investment Project Team;
– performance information is available to support the SLA agreed with
Housing;
– performance information is monitored twice each month by an internal
monitoring group; and
– a new performance framework has been agreed with all staff, committing
staff to agreed levels of performance.
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Review Findings
Does the service have the necessary management and performance
information, in order to address these issues?- continued
Whilst this represents a move forward, further work is needed to ensure that
performance management arrangements are comprehensive and robust, making
the best use of the information now available, at all tiers. For example, high level
monitoring of the delivery of strategic objectives is limited. There are plans for
Scrutiny to receive regular checks on progress but this does not appear to have
taken place recently, despite the implementation of a major system change.
Recommendation One:
Strengthen performance management arrangements particularly at a
strategic level, so that senior officers and members are able to see clearly
where the service is going and the extent to which it's delivering high level
objectives and meeting the requirements of the improvement plan.
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Review Findings
What has been done to realign/redesign the service, to ensure that it has the
capacity and capability to meet current demands, whilst achieving efficiency
targets?
The service has taken a number of steps to realign and redesign the service to
enhance its capacity and capability to meet current demands:
– mobile working has been introduced, improving the day to day management of
operatives;
– a business process re-engineering exercise has been carried out to better
understand the working day of operatives. This has led to changes in the way that
vans are stocked and jobs are allocated, creating savings for the service by
improving productivity;
– one review of back office functions has already been completed and another is due
to commence shortly. Further savings are expected;
– the joinery shop has been closed and work outsourced; and
– a partnering arrangement is being established for gas services and will be
implemented from November 2.
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Review Findings
What has been done to realign/redesign the service, to ensure that it has the
capacity and capability to meet current demands, whilst achieving efficiency
targets?- continued
By strengthening the higher level performance management arrangements (as per
recommendation one) the Service will be better able to demonstrate it's fitness for
purpose and improvements in value for money, as a result of these changes.
In addition, the Service would benefit from access to expertise in change
management. The degree of change expected, at all levels of the Service, is
significant and must be carefully managed to ensure successful transformation.
Capacity and capability within this area is a weakness within the service.
Recommendation two:
Identify appropriate change management support to strengthen the
transformation plans.
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Review Findings
Are business and service plans consistent with current needs and are
they leading the service in the right direction?
When comparing recent developments to the objectives of the Business Plan
agreed for the service in 2007 (and updated in June 2008), we can see that
many of the priority actions have been implemented, with a number coming
from the recent upgrade to the information system. Early measures of success
are emerging and show, for example:
 income per employee is beginning to look healthier at £64k per head in
August against target of £62k;
 sickness absence is reducing; and
 90% of voids are now turned around within target
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Review Findings
Are business and service plans consistent with current needs and are they
leading the service in the right direction?- continued
As the Service is due to prepare a new business plan (and given KPMG's work
validating and testing the previous business plan in 2008), it is not timely or of value
to the Council for us to comment on the business plan for the service, at this stage.
However, our work has identified a number of issues that should be considered as
the new plan is developed:
– ensure that there is a clear understanding of the current position of the service,
from a customer perspective. Whilst some work has been carried out previously
to understand customer views, this will need to be refreshed, particularly in view
of the changing economic climate;
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Review Findings
Are business and service plans consistent with current needs and are
they leading the service in the right direction?- continued
Continued
– prepare an implementation plan alongside the business plan in order for
progress to be tracked. Although informal checks are made on progress
and some action plans are in place, there has not been a clear and agreed
plan in place, to date and, thus, a picture of what has been achieved and
what remains to be delivered is not readily available. A robust
implementation plan will support the development of stronger performance
management arrangements within the service; and
– implement a routine, systematic and ongoing process of risk assessment
and management. Currently, risks are only assessed annually, as part of the
service planning regime. The risks to delivering the Service to the expected
standard and meeting developmental objectives should be constantly
updated and monitored to ensure that appropriate mitigating controls are in
place.
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Review Findings
Are business and service plans consistent with current needs and are they
leading the service in the right direction?- continued
In summary, we recommend that action is taken to:
Recommendation Three:
Evaluate customer views on current service delivery and 'ideal' service
delivery, to inform the revised business plan.
Recommendation Four:
Ensure that an implementation plan is prepared alongside the business plan,
in order that progress can be tracked and achievements clearly identified.
Recommendation Five:
Strengthen risk management arrangements within the Service, to improve
understanding of the threats to success and the effectiveness of mitigating
controls.
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Next Steps
Following our review, the Service needs to ensure that the actions
agreed within the following plan are implemented. We will follow up
progress as part of our audit in 2009/10.
Given the level of change ongoing within the Service, we would be
pleased to provide ongoing feedback on plans for updating and
reviewing the business plan over the coming months, or offer further
support on how performance and risk management arrangements can
be strengthened, if required.
We are grateful to Steve Morris and his team for their support for this
work.
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Action Plan
Recommendation
1
2
Strengthen performance
management arrangements
particularly at a strategic level, so
that senior officers and members
are able to see clearly where the
service is going and the extent to
which it's delivering high level
objectives and meeting the
requirements of the improvement
plan.
Identify appropriate change
management support to
strengthen the transformation
plans.
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Priority
Agreed
High
Yes
Comments
Due date
Responsible
officer
Action will be undertaken to strengthen
existing reporting mechanisms.
Steve Morris
Ongoing
Medium
Yes
This will be looked within the context of
implementing the WHQS, particularly.
Rob Quick and
Steve Morris
March 2010
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Action Plan
3
4
5
Recommendation
Priority
Agreed
Evaluate customer views on
current service delivery and 'ideal'
service delivery, to inform the
revised business plan.
Medium
Yes
Ensure that an implementation
plan is prepared alongside the
business plan, in order that
progress can be tracked and
achievements clearly identified.
Medium
Strengthen risk management
arrangements within the Service,
to improve understanding of the
threats to success and the
effectiveness of mitigating
controls.
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Comments
Due date
Responsible
officer
To be undertaken as part of the review
and update of the Buildings
Maintenance Business Plan.
Rob Quick and
Steve Morris
March 2010
Yes
To be undertaken as part of the review
and update of the Buildings
Maintenance Business Plan
Rob Quick and
Steve Morris
March 2010
High
Yes
The operational management of
service risks will be strengthened and
risk management processes
incorporated within routine service
management activity.
Steve Morris
Ongoing
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