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ITEM BV6

BEST VALUE COMMITTEE - 10 DECEMBER 2003

BEST VALUE REVIEW OF PROPERTY SERVICES

Report by the Head of Property

1. The Best Value Review for Property Services was reported to the Best Value Committee on 10 January 2003 and subsequently endorsed by the Corporate Governance Scrutiny Committee and the Executive.
2. The Review looked at four key areas:

• accountability for property at member and departmental levels;
• how we are structured to deliver property services;
• what services should be provided in-house and what should be procured from external consultants;
• how these arrangements ensure that the Council's property assets are fully and effectively used.

Service Improvement 1 Redefine Roles and Responsibilities for Property within OCC's new structure.
Objectives	corporate asset management; that the use and provision of property relates directly to corporate and customer needs; innovation and excellence in design; new ways of providing and using property, including partnership working; all property should be held corporately; reform the Capital Programme and Asset Management Group into a group responsible for the overall strategic management and co-ordination of OCC property; develop a new organisational structure where the Service Directorates are responsible for defining their service needs in terms of property, and a newly created corporate property or asset management team is responsible for implementation..
Proposed service Improvement targets	Review of terms of reference and membership of the Capital Programme and Asset Management Group to form a new group responsible for the overall strategic management and coordination of the Council's property (ie consistent with 1d in the Executive Summary). Establish a project group to manage the changes to service delivery. This group will be cross-directorate and will be responsible for project managing the organisational changes outlined in this review. Determine the terms of reference, membership (including arrangements for a project manager), programme of work, timetable, resources needed and the reporting arrangements. Define and agree functions, resources and skills needed within the new structure.   Establish budget allocation framework. Create a cross departmental consultative group and a programme for consulting and communicating with staff and users.
Progress The Terms of Reference and membership of the Capital Programme and Asset Management Group were reviewed. This has resulted in a Steering Group comprising the Leader and Deputy Leader, Director of Resources (Chair), Head of Finance, Head of Property and Business Managers for Learning & Culture, Social & Health Care and Community Safety. The former Capital Programme and Asset Management Group has been retained as a working group which reports to the Steering Group A Project Group has been established to manage the implementation of the Action Plan. In May a Workshop was held with staff currently involved in Property Services in all Directorates to help develop a revised division of roles and responsibilities between Service Directorates and the Corporate Property Group. The Workshop was well attended with an independent facilitator. There was no overall conclusion but it provided a basis for working up the new structure. External consultants were then appointed to undertake process mapping for capital projects and landlord and tenant work. The process of establishing a new structure with division of roles, responsibilities and resources needs to be managed carefully as it involves changes to duties and the transfer of some staff between Directorates. Staff are understandably concerned about their future and the impact of what is a fundamental change to the way Property Services are provided internally. There have been discussions with Learning & Culture (Education and Cultural Services) and Social & Health Care. The future arrangements in respect of Cultural Services and Social & Health Care have basically been agreed subject to more detailed work on the extent of the responsibilities retained by the Service Directorates and the day to day working arrangements. The re-definition of roles and responsibilities in respect of the Education work is more difficult as there are many more staff involved with the Education Premises Development Group having considerably more involvement in property related work. However, revised roles and responsibilities have been agreed and draft structures for the Premises Development Group and the Corporate Property Group are being prepared. There will then need to be agreement on the re-allocation of resources..

Service Improvement 2 Improve Programme, Project and Performance Management.

Objectives

It is essential that a common understanding and approach to programme and project management is spread across all areas working on property services (including consultants). This will be based on the corporate approach to project management which has been considered by CCMT in December 2002. The use of sound performance management and measures is part of this good practice. The implementation of this service improvement should link to service improvement 1 and be part of the responsibilities of the project management team (as established in service improvement 1).

Proposed service Improvement targets

Develop a programme to ensure a common understanding of programme and project management is communication, and that the skills and tools needed are provided. Allocate programme and project management responsibilities in line with service improvement 1. Establish performance management principles and meaningtful measures of performance that will apply to all programmes and projects.

Progress A full programme for development cannot be prepared until further progress has been made on Service Improvement 1. The Corporate Project for developing project management skills within the Council should be helpful and, to some extent at least, provide for this Service Improvement. In the meantime, the programme of project management training within the current Property Client Group is continuing. So far there have been workshops/training events on: The Principles of Project Management; Project Management for OCC Property Projects; Risk Assessment and Management; Change Management and Value Management. These events have involved staff from other Directorates and Atkins. When the new structure is clear there will be a review of the programme to meet the development needs for future work and the programme will be resumed.

Service Improvement 3 Revise arrangements for external services to provide improved value for money, flexibility and non-exclusivity.
Objectives	A new model for procurement is recommended with a core contract for a proportion of the services provided by a single term consultant, and a number of framework contracts that can be used selectively for the remainder of the work.
Proposed service Improvement targets	Review and agree packages of service and identify what constitutes the core and non-core services. Market test options. Create structure and process for new contract arrangements.
Progress The current contract for Property Consultancy Services with Atkins will expire at the end of March 2005. The intention is that it will be replaced by a core contract with a number of framework agreements to provide flexibility, comparability and competitiveness. Buro Happold are acting as consultants to assist with this service improvement and were commissioned to undertake soft marketing to establish the level of market interest in the proposed contract structure. There was a good response indicating strong interest. The preference from the market was for the core contract to include the full range of services with as much as possible of the work included within the core contract. The intention is to allow as much flexibility as possible of the work included within the core contract. The initial advertisement for expressions of interest in the core contract will be placed early in April 2004 using the Invitation to Negotiate route rather than Invitation to Tender. The core contractor can then be selected without determining in advance the full extent of the services to be provided. When the core contractor has been selected arrangements can be made for the framework agreements which will be necessary to secure the full range of services. The programme allows for this as the framework agreements will not need the same lead-in period as the core contract. The specifications for the new contracts are to be based on outcomes/outputs with performance measures related to them and a fee payment mechanism which is related to performance. The draft specifications will be circulated to Service Directorates for consultation at the end of November. It is intended that the final shortlist of potential consultants for the core contract be reported to the Executive for approval, together with the criteria to be used for the final selection. The Executive would subsequently be requested to approve the preferred consultant prior to appointment

Service Improvement 4 To support and develop staff to ensure they have the skills and capacity to delivery a high quality service.
Objective	The changes recommended as a result of this review will require staff to change ways of working. As an organisation that values its staff, it is important to manage these changes with skill and sensitivity. A programme of work is recommended that ensures that staff are supported and consulted during this process and also once the changes have taken place.
Proposed service Improvement targets	To keep staff engaged and involved, a mixture of local and informal consultations and a number of open, formal consultations are propsoed to occur throughout the times of change. Learning and development needs of staff to be assessed and gaps identified.
Progress The workshop referred to under Service Improvement 1 was held partly to inform staff of the outcome of the Review and to involve them in the process for re-definition of roles and responsibilities. An Explanatory Note explaining the then current position was issued to all staff involved in Property Services in July and an Open Forum with questions submitted in advance was held in August. A paper has been prepared explaining the process for managing the transfer of roles, responsibilities and staff including a 'Staff Assurances' document. Good communication and consultation will be essential for the effective restructuring of Property Services. HR staff within all of the Directorates will need to be involved. As mentioned under Service Improvement 2, the development needs to meet the future work of the new Corporate Property Services will be assessed when the revised structures are clear.

3. Progress on the redefinition of roles and responsibilities within OCC has been slower than expected, but there are sensitive staffing issues involved and it is essential that the new arrangement is effective and supported by the staff involved. There will be a great deal of work involved in the change of structures and it now seems unlikely that it will be fully implemented by April 2004. Even with a re-allocation of resources which should improve efficiency, additional funding will be needed to strengthen the Property Client Group. A bid has been made for funding from 2004/05.
4. Good progress is being made for the revised arrangements for external property services from April 2005 and work is on programme for the award of a new contract at the end of September 2004.

RECOMMENDATION

5. The Committee is RECOMMENDED to:
   
   
1. agree on if and when there is a need to report back to the Committee on further progress;
2. identify whether there are any matters in the report which should be drawn to the attention of the Executive Member; and
3. ask the Chair of the Corporate Governance Scrutiny Committee to consult the Deputy Chair on Scrutiny Committee consideration.

NEIL MONAGHAN
Head of Property

Background Papers:

Contact Officer:

December 2003

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