OFFICIAL OFFICIAL Meeting SPA Board Meeting Date 29 March 2018 ...

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Meeting Date

SPA Board Meeting 29 March 2018

Location Title of Paper

John McIntyre Centre, Edinburgh Corporate Services Transformation Plan Item Number 7.3 Reference Number REP-B.06.20180329 Presented By Tom McMahon, Director of Business Integration Recommendation to Members For Noting Appendix Attached No

PURPOSE This paper is to provide Members with an overview of the plan and approach being implemented on Corporate Services Transformation within the Transforming Corporate Support Services (TCSS) Programme. The paper is submitted for noting.

SPA Board Meeting Transforming Corporate Services 29 March 2018

OFFICIAL 1 REP-B.06.20180329

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1. BACKGROUND Corporate Support Services have not been cohesively transformed since the creation of Police Scotland. They are currently:

1.1.

•

inefficient and provide an inconsistent level of service;

•

expensive and do not represent best value;

•

in need of improvement to meet the demands of the frontline;

•

not a good working environment for our staff, who have experienced 4 years of limited improvement; and

•

experiencing budget pressures, with an imperative to deliver financial savings.

The Corporate Support Services of the future must: •

be optimised to deliver the right services in the right place, at the right time;

•

deliver these services in the most efficient manner, representing best value;

•

meet future frontline demand;

•

provide a positive working environment for our staff; and

•

enable the right workforce mix – including the necessary capabilities to meet demand.

1.2.

Transforming Corporate Support Services (TCSS) is the programme established to address the current challenges and deliver the future Corporate Support Services by recognising the challenges and opportunities, mobilising our team, and agreeing and delivering a Vision, Strategy and Implementation Plan for Corporate Services Transformation.

1.3.

This programme is central to the strategic objective of transforming our corporate services. The objective set in the 2026 Strategy is ‘To enhance delivery of policing services we will reduce and remove the frontline administrative burden associated with corporate processes and provide a standardised high quality service to our operational staff’.



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1.4.

The Strategic commitments are to: o Enhance officer productivity and capacity. o Free up Police Officers from Corporate Support duties where the work should be undertaken by staff. o Create more efficient Corporate Support Services and business support units. o Reduce the deficit to £47m during 2017/18 and remove it by 2020/21. o Increase wellbeing and satisfaction levels among our people.

1.5.

This programme will define and implement a new model for Corporate Services that will support benefits realisation and best meet this overall objective.

1.6.

In addition to the clear strategic alignment to 2026, there are three additional drivers for transforming Corporate Support Services: o People: We have a focus on improving the wellbeing of our people that deliver Corporate Support Services. o Service Delivery: We need to improve the quality of services that we deliver, with a focus on reducing the administrative effort for the frontline. o Use of budget: We need to increase the efficiency of our services, so that our budget can be prioritised on frontline policing activities.



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2. FURTHER DETAIL ON THE REPORT TOPIC 2.1. 2.1.1.

Scope & Approach The Transforming Corporate Support Services Programme will impact the entire organisation and therefore, a single Programme governance structure has been established to: o Balance risk. o Communicate and manage change. o Prioritise resources and investment. o Manage interdependencies. o Under the single governance structure all areas must adhere to common design principles, a single approach to design and contribute towards savings targets. o There must be clarity on accountability and how it links to governance. o Ensure adherence to a single Target Operating Model (TOM) o Promote a culture of end-to-end process development.

2.1.2.

The review and subsequent transformation of Corporate Support Services will have a broad impact across the organisation, enhancing the efficiency and consistency of support given to operational staff, whilst removing any unnecessary administrative burdens.

2.1.3.

We are taking a service-led approach to designing and implementing our new model, placing service users at the heart and recognising the drivers of improving the quality and efficiency of services. It is anticipated that this will be a complex programme and in line with best practice, established through the delivery of similar programmes, we are adopting a phased approach.



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2.1.4.

The overall Corporate Services Transformation Programme comprises three main areas: ‘Transform’, ‘Build’ and ‘Develop’, with the various functional areas in scope within those, described in the diagram below.

2.1.5. 2.1.6.

The scope of the initial focus area for this current phase of the programme is the Transform area and specifically the functions of ICT, People and Development, Finance, Fleet, Procurement, Estates and Business Support.

2.1.7.

For each of the functions within ‘Transform’, significant work has been undertaken to establish: o “As is” structures & current state o Baseline FTE and Budget, o Current services taxonomy, o Maturity Assessment/Capability Spread, o Gap and opportunity identification; and o Case for change.

2.1.8.

This information, along with Subject Matter Expert (SME) led design workshops and external benchmarking, will help inform the future shape and delivery of the Target Operating Model.



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2.2. 2.2.1.

End to End Design Corporate Services Transformation must cover the end-to-end operating model, as designing layers in isolation will not be effective as: o Processes cut across the end-to-end model o We want to provide a coherent, consistent customer experience o Benefits realisation is dependent on more than one element of the model.

2.2.2.

Effective hand-offs and dependency management between the layers are critical to service quality.

2.2.3.

The approach applies good practice from elsewhere to Police Scotland and involves extensive engagement with functions

2.2.4.

This is illustrated by the Diagram below:

2.2.5. 2.3.

The Developing Target Operating Model



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2.3.1.

The development of a Target Operating Model (TOM) is essentially an articulation of the desired future state. Its development is critical to create a compelling and shared vision for the future state of Corporate Support Services and by adopting a service led approach, the Target Operating Model (TOM) will provide clear answers to the following questions: o What services will we deliver (including what is most valued by the frontline)? o What is the best way to deliver these services (e.g. Business Partnering, Transaction Processing, Centres of Excellence)? o Where will services be best delivered from? o What is the logical grouping of services (functions)? o What are the key characteristics of the new model (Technology, People)?

2.3.2.

This has created a significant opportunity to engage across the organisational and with stakeholders to ensure that our future service offering will arrive at the best answers to these questions, considering key criteria including: o 2026 alignment (achievement of strategic commitments) o Good practice delivery of corporate services o ‘Voice’ of the customer o Risk to service continuity o Scale of investment and potential savings

2.3.3.

During the programme we have considered which delivery approach will best improve our services. Based on good practice from elsewhere and our internal and external engagement, the developing TOM has the following characteristics:



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o Nationally delivered shared services: Delivering shared services at scale for Police Scotland. This will include both transaction processing activity and more function-specific, technical advice. The drivers for this include an opportunity to streamline and standardise transactional activities, improve the service quality and creating greater capacity to focus on more strategic services. o Local/regional business partnering: Finance, People and Development and ICT will build on existing business partnering arrangements. Each function will determine the most appropriate alignment of business partners e.g. Divisional, Functional or other. Although not formally a ‘Business Partnering’ arrangement, Fleet will deliver its Service, Repair and Maintenance and Vehicle Stores services on a local/regional basis – noting further analysis is required of the optimum number and location of garages. o Development of ‘Centres of Excellence’: Across all functions there is a desire to rebalance efforts towards strategic, technical and professional advisory services. A ‘Centres of Excellence’ approach has been proposed that builds capability in these areas, and also provides governance for business partnering. o Focussed local administrative support: We want to build an overall model that limits the risk of duplicating activity. During the next phase of design we will analyse in greater detail any services to be delivered locally, and ensure they do not duplicate national activity – or vice versa.



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2.3.4.

In addition to the characteristics above, a number of attributes have been captured of the future model, which have been used to inform the design activity which has been progressing over recent weeks.

2.3.5.

These attributes can be summarised as: o The design must be co-ordinated and jointly delivered. Silo development of functional designs will result in confusion for the customer and a disjointed model; o A clearly defined service catalogue is an essential basis for providing clarity to customers and being able to track performance; o We need a customer mind-set to improve the quality of our services; our detailed design must be based around customer journeys rather than functional silos; o In order to remove duplication and pockets of unstructured administrative effort, we need to simplify our channels of engagement and clearly signpost them to customers; o We will adopt ‘self-service by preference’. It will help improve and reduce the cost of services, but will require significant engagement during design due to the associated change – particularly for line managers; o We will introduce new, good practice processes to achieve greater efficiency and improve service delivery; these processes will be standardised and automated wherever possible; o An integrated approach to digital, data and ICT enablement is required. The benefits of a new IT architecture will be limited unless our people show greater discipline and ownership of data quality;



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o Better integration of IT systems is essential to delivering the new model; we need to design a target applications architecture alongside the next phase of design; o The success of the new model will be heavily dependent on Corporate Support Services staff buy-in. Our focus on wellbeing will only work if we put it into practice e.g. demonstrate investment in career development; o Our new model needs to be definitive to prevent duplication; we will transition legacy structures and close down inefficient ways of working; and o We need to consolidate the number of Corporate Support Services locations to best enable the new model and help achieve our efficiency commitments. This does not equate to centralisation of services and we must recognise and address our obligation to create job opportunities that are not geographically limited where possible.

2.3.6.

An early diagrammatic illustration that was used to help inform the design process is shown below:



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2.4.

Design Principles

2.4.1.

Design principles have been created and agreed as part of the consultative process via Staff Conferences, Design Workshops and wider engagement sessions. These principles have informed the subsequent design workshops being used to refine the detail of the TOM and test against best practice.

2.4.2.

The agreed Design Principles are summarised below: o Operationally focussed: we will focus on a prioritised set of corporate support services that our service users value o National shared services: customers will have equal access to consistent services regardless of their location o Location: there is no drive for centralisation; we will pursue opportunities for locating roles outside the central belt o Best Value: services will be delivered in an efficient and cost effective manner, against agreed and clear service levels o Flexible delivery: we will adopt a delivery model for each service that provides the required capacity and capability o New ways of working: design decisions will not be constrained by current processes, ICT, location or legacy policies o Fit for Policing: our priority is to ensure the provision of excellent corporate support services for Police Scotland o Right first time: delivery of high quality services, removing unnecessary bureaucracy and duplication o Employer of choice: our staff’s roles will be focussed on providing value-adding services, and we will invest in their skills and development



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o Wellbeing: our commitment to Your Wellbeing Matters will be considered as a fundamental element of the design o Empowering people: we will trust and support our people by reducing bureaucracy and giving them easy access to services

2.5.

Engagement

2.5.1.

Recognising that internal interest in this broad programme of change is likely to be high considering the impact on both service providers and service users, an integrated, sequenced and targeted user engagement plan was developed and this is a key enabler for the successful delivery of this programme.

2.5.2.

User engagement will support and enable positive cultural change by providing a clear narrative of the improvements and benefits that can be realised for the service, the people who work in it and the people it serves while recognising the scale of change and associated challenges.

2.5.3.

The range of engagement promotes the participation of service users directly to help identify user requirements and the corporate support services most valued by operational policing, whilst ensuring the voice of the customer informs the development and implementation of new ways of working, systems and processes within the new target operating model for corporate support services.

2.5.4.

The engagement has been tailored to address both strategic and tactical requirements and activity has been targeted at the following groups: o Divisional Commanders/Chief Superintendents across local policing & specialist national divisions o Senior User Working Group (senior nominees from Divisions giving both functional and geographical representation)



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o Customer Engagement Workshops (tactical level engagement across policing, specialist & corporate roles) o Corporate Support Services Conferences (Directors & Tier 2 & 3 managers) o Directors Workshops o Executive Planning Days o JNCC & Unison/Unite o SPF & ASPS Meetings (every 2 months) o SPA (private members meeting & public board updates) o SPA (Forensics & Corporate) o Scottish Government o HMICS o Scottish Police Consultative Forum o 2026 Roadshows

2.5.5.

2.6. 2.6.1.

A dedicated Corporate Support Services area is being developed on the Force Intranet to keep staff informed and this will include a FAQ section, along with some myth busters. Conferences Two successful conferences brought together managers and directors from corporate support services at the Scottish Police College in September 2017 and January 2018. Both conferences were opened by interim Chief Constable DCC Iain Livingstone, and Deputy Chief Officer David Page and chaired by Director of Business Integration Tom McMahon.



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2.6.2.

The conferences were an opportunity for managers and directors from across corporate support services to test and provide feedback on the Vision, Mission and Design principles that will inform the transformation of corporate support services.

2.6.3.

They also provided an opportunity for the programme team to test the high level Target Operating Model with business area experts and for external speakers from other police forces to share learning and experiences from transformation of corporate support services.

2.6.4.

Attendees also developed their own ideas in mixed and business area-specific workshops and the results of discussions were fed back to the programme team and used to inform the further development of corporate support services.

2.6.5.

Through survey feedback attendees were given the opportunity to feedback on areas they would like further detail/explanation. They were also asked about preferred channels for future engagement with conferences, roadshow events and a dedicated intranet area identified as preferred channels for future communication.

2.6.6.

Overall both conferences were well received. Future events will take cognisance of comments made by attendees and will ensure that they remain relevant and engaging.

2.7.

External Engagement / Research

2.7.1.

Acknowledging that a number of other policing and non-policing organisations have already transformed and developed their own corporate services arrangements, we have also embarked on a programme of external engagement to gain the benefit of their experiences and to learn lessons from the approaches they have implemented.

2.7.2.

This focussed activity will help us further understand some key elements, such as: o How technology has enabled change and what solutions are currently being used



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o If partnering arrangements have been established, how were they developed o How services are currently being delivered compared with pre transformation o The levels of service integration o How the change was implemented o Opportunities and benefits realised o Barriers and challenges and approach to overcoming them o How they secured buy in and support o What on-going continuous improvement is happening

2.7.3.

2.8. 2.8.1.

The key learning from both the user and external engagement will be used to help inform our options appraisal and subsequent detailed design activity. Key Lessons This work is ongoing; however, an indicative example of the Lessons emerging from our engagement with other organisations and also our research into other similar Programmes can be summarised below: o Invest in testing feasibility of options and establishing a clear and detailed business case. o Invest in rigorous analysis and undertake sufficient levels of consultation and engagement with existing staff o Consider all possible service delivery models, including partnerships across public sector



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o Manage expectations on timescales for delivery of change and realisation of benefits, as these are often underestimated by programmes o Communicate the benefits of the chosen model to secure staff, trade union and wider buy-in and successful adoption of planned change o Avoid silo development of functional designs. The Design must be based around the customer (service user) journey as opposed to functional silos. o Understand what the customer (service user) wants and focus on the outcome rather than the steps to deliver it.

2.9.

One Plan for Corporate Transformation

2.9.1.

A High Level Plan for Transforming Corporate Support Services (TCSS) has been developed, supported by Stage Plans for the Diagnose, Design & Develop stages of the standard 4Ds change management approach being utilised within this Programme.

2.9.2.

The overarching timescales for each of the Stages is shown below: 1. Diagnose (July 2017 – December 2017) 2. Design

(January 2018 – March 2018)

3. Develop

(February 2018 – September 2018)

4. Deliver

(October 2018 – Detail TBC at end of Develop

Stage and chosen IBC Option).



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2.10. Transformation Change Management Approach & Plan (4Ds) 2.10.1. The diagram below highlights some of the key activities which take place within each of the 4Ds



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Diagnose ‘As-Is’ Capture & Analysis Data Gathering (core data only) Organisational Review •Current Services Taxonomy •Maturity Assessment / Capability spread Create Baseline FTE & Budget Document Current State Gap & Opportunity Identification Capture Case for Change

Design Develop “Business Proposal” Define High level Target Operating Model - Future (Steady) State •Mission Statement •Draft Vision •Design / Guiding Principles Organisational (Macro) Design SME led Design Workshops •Services, Customers, Channels, Technology, People & Locations •Current Services – Value Assessment Financial Baseline

Develop

Deliver

Develop “Business Case”

Consult with JNCC

Change Impact & Alignment Assessment (Key Areas)

Implement Communications Plan

•Re-assess & prioritise existing portfolio of projects •Prioritise Quick Wins & Key Enablers Sequence Projects & Outputs to Deliver the TOM at pace Risk Identification Develop Communications Plan Create Organisational Design •Future State Service Taxonomy Sourcing Overview High Level Location Analysis Perform Equality & Human Rights Impact Assessment Perform Salary & Savings Analysis Identify Performance Metrics

Perform Group Consultations Individual Consultations Facilitate & Manage Counter Proposals Review & Update EQHRIA Implement Structure •Perform Job Evaluations •Job Mapping & Matching etc. •Manage Recruitment of Vacancies •Manage VR/ER releases Finalise & Implement Governance Model •Strategy for Operations Year 1&2 •Risk Management Process Implement Performance Metrics

Data & Information Impact Analysis

2.11. Current Activities & Key Deliverables within the Plan SPA Board Meeting Transforming Corporate Services 29 March 2018


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2.11.1. To summarise the detailed Microsoft project plan into a more appropriate form for this paper, we’ve highlighted below some of the key current activities that underpin the most significant ‘Outputs’ and Development stage deliverables.

Key Current Activities and Related Outputs

Establish Programme Board

Sourcing & High Level Location Analysis

Benefits & Savings Profiles

Financial Analysis

Technology Assessment and Initial Roadmap

EQHRIA

Develop TCSS Risk Register

Quality Assurance Model for Programme

Communications Plan and Stakeholder Map

Dependency Mapping

Change Impact & Alignment Assessments

External Research / Analysis / Lessons Learned

Design Workshops with Directors & Functional Heads

Programme Plan

Engagement Sessions / Conferences

Current Activity

Outputs

Target Operating Model

Business Case (IBC)

‘One Plan’ for Transformation

Governance Framework



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2.12. Current Activities - Target Operating Model Design 2.12.1. A service-led approach has been taken to Target Operating Model design, through a series of technical Design Workshops. 2.12.2. These technical design workshops were led by Subject Matter Experts (SMEs) from third party professional services organisations, to ensure that our services and functions were exposed to, and challenged against, established models of good practice from other public and private bodies. 2.12.3. The workshops were attended by Directors, Heads of Functions, their senior management teams and members of the programme team and were both interactive and iterative in their development of the Target Operating Model. 2.12.4. The workshops followed an approach which: o established a clear understanding of the Baseline and the Current State model for each function, 

Costs (People & non-People),



Locations from where services are delivered,



Technology/Applications underpinning delivery



In-flight projects within the function



Service Maturity (strengths & development areas)

o covered the application of the Design Principles (highlighted earlier in this paper) and the potential implications for the function, o Through a series of exercises, develop robust answers for a number of key Target Operating Model design questions e.g. 

What is the nature of the Services we will provide and what delivery approach best enables them?



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

What implications does our future model carry for customers (service users) and channels?



What are the key people capabilities and technology requirements of our future model?

2.12.5. The design workshops introduced examples of good practice (service taxonomy and the service delivery channels) used by other organisations to test and discuss how they could be adopted by Police Scotland. 2.12.6. The nature of each of the services were considered to establish whether they were: Transactional, Technical/Operational or Strategic before agreeing the most effective delivery model for them e.g. Business Partnering, Centres of Excellence or Shared Service by employing the end-to-end customer (service user) focussed model highlighted earlier in the report. 2.12.7. The outputs from these workshops and other wider internal and external engagements have all informed the Target Operating Model design and the business case being developed. 2.13. Current Activities - Change Impact & Alignment Assessment 2.13.1. A key element of the current activity to ensure the delivery of the stated strategic commitments is the Change Impact & Alignment Assessment. A tool has been developed to assess the alignment of current and proposed Corporate Services projects against the overarching Design Principles and Strategic Outcomes of the Corporate Services Transformation Programme and High Level Target Operating Model. 2.13.2. The focus of the Change Impact and Alignment Assessment is on the nature and scale of change projects and whether they align to the 2026 strategic commitments for Corporate Services and assess the level of impact on the future operating model.



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2.13.3. The assessment was performed on all 28 of the live projects within the PMO, assessing the 16 areas listed below: 2.13.4. Tests were applied in these 16 areas to establish, will the

Project: o Introduce of a new channel(s) of engagement? o Redesign a service or introduce a new service? o Involve significant process redesign? o Change the applications architecture? o Involve significant technology investment? o Restructure the organisation below Tier 1? o Significantly reshape job descriptions or introduce new roles? o Include a new location strategy?

2.13.5. The Assessment will automatically output a RAG Status for each project’s Change Impact and its Alignment, which will then be used to inform the recommendations for the next steps for that project (e.g. Continue, Accelerate, Defer, Stop) 2.14. Options for Delivering The TOM (Sourcing & Location) SPA Board Meeting Transforming Corporate Services 29 March 2018


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2.14.1. The TOM can be delivered in a number of different ways. It is not a case of ‘one size fits all’ for the different service areas in scope – market maturity and appetite varies 2.14.2. Each service area within the model needs to be considered individually; informed by an understanding of the sourcing market and what other Police Forces have done 2.14.3. A sourcing assessment is required – considering three delivery model options for each service area within the TOM:

2.14.4. The components that are best delivered in-house should be identified quickly – work can then be prioritised to implement these elements of the TOM 2.14.5. If opportunities to outsource or partner are identified, the appropriate grouping of services should be considered. This will be based on alignment to market offerings and/or success stories from other organisations 2.14.6. The location model for the TOM is also a critical consideration for delivery of the TOM, and will have a significant impact on sourcing – and vice versa. Our approach and initial assessment of location criteria is presented below 2.14.7. A set of agreed criteria is required to identify the preferred sourcing option(s) for the new TOM. A draft set of criteria is being developed, considering the following elements: o Location: are there restrictions on where services are delivered from? o Savings: when must financial savings be realised? SPA Board Meeting Transforming Corporate Services 29 March 2018


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o Sector: is the delivery model proven within the Public Sector, or Policing? o Ambition: does the option bring best practice’ processes and leading edge technology? o Sourcing: are there any sourcing routes deemed to be unacceptable?

2.14.8. There may be exceptions where certain criterion do not apply e.g. for services/processes that are not Policing specific. 2.14.9. Criterion will also be looked at collectively, as focussing solely on one criterion to narrow options is risky e.g. an option may be proven within Policing, but not represent good practice. 2.14.10. During this phase, initial discussions are being held with Directors to explore sourcing options for the service areas within each function. 2.14.11. Location is a key criterion, and may narrow sourcing options. Our approach and initial thinking on location analysis is presented on the next section. 2.14.12. Organisations typically consider six location “dimensions” when assessing location models – as outlined below. To inform our initial analysis, we have focussed on three of the dimensions: Political, Labour and Infrastructure. These dimensions include a number of strategic considerations that will narrow location options for Police Scotland. More detailed analysis will be undertaken in the next phase, including the additional dimensions.



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2.14.13. Location and sourcing are critical factors that determine how the TOM will be delivered and its associated benefits; they are also significant areas of interest for Police Scotland leadership, the SPA and Scottish Government. 2.14.14. The nature of the TOM is a key driver for the location model. For each function, we have considered any requirement for services to be delivered in close proximity to the business. 2.14.15. We are undertaking analysis that draws on two key sources of data: the latest Labour Force Survey data from the Office of National Statistics (ONS), and full-time equivalent data used to develop Police Scotland’s FY18/19 budget. 2.14.16. To inform this initial analysis, we have made the following assumptions on boundaries for the location analysis. These have not yet been formally agreed: o Political: Corporate Support Services will be delivered from Scotland o Political: There will be a considerable reduction in the number of corporate support services delivery sites SPA Board Meeting Transforming Corporate Services 29 March 2018


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o Infrastructure: Existing Police Scotland premises will be used wherever they meet the requirements (facilities, fit-out etc.). Once potential locations are agreed, this will be analysed in more detail with Estates.

2.14.17. In order to undertake high level location analysis, we are considering 3 priority criteria that align to two of the location dimensions. Further discussion is planned with Directors to test these criteria. o Labour factors: There needs to be sufficient workforce availability nearby o Infrastructure: The location of sites will provide appropriate coverage for a national organisation o Labour factors: Wherever feasible, existing staff will not be subject to major changes in their location – this is judged to be over 25 miles from their current location in line with the Relocation Standard Operating Procedure



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2.15. Programme Governance 2.15.1. As stated, the Transforming Corporate Support Services Programme will impact the entire organisation and therefore, a single Programme governance structure has been established to: o Balance risk. o Communicate and manage change. o Prioritise resources and investment. o Manage interdependencies. o Under the single governance structure all areas must adhere to common design principles, a single approach to design and contribute towards savings targets. o There must be clarity on accountability and how it links to governance. o Ensure adherence to a single Target Operating Model (TOM) o Promote a culture of end-to-end process development.

2.15.2. The Corporate Services Transformation (CST) Programme Board has been established to provide clear leadership, guidance and scrutiny to deliver programme outcomes and ensure benefits realisation is maximised. 2.15.3. The CST Programme Board will report into the Change Board and will hold meetings on a monthly basis. 2.15.4. The remit of the Programme Board can be summarised as to: o shape the operating model design in line with the force strategy and corporate support design principles o Provide on-going clarity regarding strategic direction, scope and constraints SPA Board Meeting Transforming Corporate Services 29 March 2018


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o Review and approve the design principles and deliverables o Monitor project risks and identify mitigating actions o Resolve strategic and directional issues between projects o Identify strategic business change impacts o Assure integrity of benefit profiles and realisation plans

2.15.5. Membership comprising Corporate Departmental Directors, Senior Users and Senior Suppliers, had its inaugural meeting on 19th March 2018, where the Programme Board Terms of Reference; Programme Vision Statement; Stakeholder and User Communications and Engagement Strategy; Programme Plan and Risk Management Approach and Risk Register were reviewed. The next meeting of the Programme Board is scheduled for 16th April 2018. 2.15.6. A diagram which illustrates the Programme Governance and Engagement model is shown below:



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2.16. Initial Business Case (IBC) 2.16.1. The purpose of the IBC is to set out a detailed analysis of the proposed investment. This will support Senior Management within the organisation make an informed decision as to the value in approving the development of an FBC, taking into account the timescales and resources required and the longer term costs and potential benefits. 2.16.2. The Initial Business Case is used within the SPA and Police Scotland in place of the Outline Business Case as per the HM Treasury Green Book five case model. 2.16.3. This Green Book recommended methodology has been widely used and developed over many years. It brings together the Green Book approach to appraising public value with the Treasury spending scrutiny and approval processes and Cabinet Office project assurance and procurement methodologies. 2.16.4. The diagram below highlights the key elements that will be included in the 5 x Case Model IBC being prepared by the Programme:



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2.16.5. The Programme is developing the IBC during March 2018, with internal review and Governance being undertaken during April and May. 2.17. Next Steps 2.17.1. A core Police Scotland team, supplemented by a specialist operating model design team from a third party, was established: o to deliver engagement with staff and internal and external stakeholders; o to set up and implement a programme and project structure and governance activities; o to develop programme and project management products; o to implement planning and reporting mechanisms and to develop a quality assurance model and to manage and quality assure the initial stages; SPA Board Meeting Transforming Corporate Services 29 March 2018


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o And direct, guide and manage the professional services provider who are providing technical specialist advice and resources within the development of the Target Operating Model. Core Team (17/18)

Police Officer

Director of Business Integration (from July 2017) Programme Manager (from December 2017) Project Manager (from July 2017) Business Lead (from December 2017) Business Analyst (from January 2018) Supplier engagement (from July 2017) User engagement (from July 2017) Project Officer (from January 2018) Portfolio support – HR, Corporate Communications, Finance, ICT (from December 2017)

Police Staff 1 1 1 1 1

0.8 1 0.5 0.5

2.17.2. The outcomes of the early Design and Develop work on the target operating model has informed Police Scotland’s resource requirements to deliver the programme in year 2 (18/19). Advice and recommendations on programme delivery and resourcing have been offered and gathered based on: o best practice elsewhere and; o lessons learned from similar organisations implementing a new target operating model for corporate support services, in policing and other public sector environments. 2.17.3. A resource request is currently being progressed through Police Scotland internal governance and approval processes with the proposed programme delivery roles and responsibilities. 2.17.4. In addition to the internal resource the business case will also outline the recommendations in relation to a delivery partner.



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2.17.5. The proposed outline structure for the Programme team is shown below (those highlighted in yellow are new roles for 18/19).



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3. FINANCIAL IMPLICATIONS 3.1.

There are financial implications in this report.

3.2.

The High Level Financial Benefits o End to end process optimisation that reduces the requirement for supporting FTE. o Implementation of a modern, integrated applications architecture will re-focus ICT investment and remove legacy application costs. o Self service will enhance the efficiency of administrative processes and reduce the requirement for supporting FTE. o A leaner set of Corporate Support Services will carry a lower non-pay overhead e.g. premises costs.

3.3.

The indicative baseline cost of the areas within scope is £78.6m. This is made up of Police Staff (£61.2m), Other Employee (£0.6m), Premises (£4.9m), Transport (£1.8m), Supplies and Services (£3.9m), ICT (£3.5m), Admin (£2.7m)

3.4.

Based on experience from elsewhere we can expect to achieve an indicative net annual saving of between £10m and £13m by FY21/22. Achieving this saving will be dependent on successfully changing the size and capability of our workforce, whilst maintaining our commitment to no compulsory redundancies.

3.5.

We need to account for other costs of change. These are likely to include technology investment, internal project costs and redundancy costs. Based on experience, the estimated total cost of change is between £10m and £15m. Savings from the model will start to be realised in FY19/20



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4. PERSONNEL IMPLICATIONS 4.1.

There are personnel implications associated with this paper.

4.2.

As highlighted, there are specific Design Principles for the Target Operating Model relating to our people in particular: o Employer of choice: our staff’s roles will be focussed on providing value-adding services, and we will invest in their skills and development o Wellbeing: our commitment to Your Wellbeing Matters will be considered as a fundamental element of the design o Empowering people: we will trust and support our people by reducing bureaucracy and giving them easy access to services

4.3.

The High Level Non-Financial Benefits o A modernised working environment will lead to increased workforce wellbeing. o Easier to attract and retain talent due to more rewarding jobs and better career development opportunities. o Lower administrative burden on operational staff due to improved quality of service. o Stop delivering services that add no value to the business of policing. o Improved reputation and reduction in audit/governance criticism due to better control and compliance capability.



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4.4.

Achieving these benefits and the resultant savings will be dependent on successfully changing the size and capability of our workforce, whilst maintaining our commitment to no compulsory redundancies.

4.5.

The diagram below illustrates the current Programme activity associated with ‘Transform’ in which the baselined number of staff was 1446 delivering the range of services within the specific functions.

4.6.

As highlighted in more detail within the report, extensive engagement with staff and stakeholders has been undertaken during the initial stages of Diagnose, Design and current Develop stages of the 4D Plan. The diagram below summarises elements of the engagement described within the paper.



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5. LEGAL IMPLICATIONS 5.1.

There are no specific legal implications in this paper.

6. REPUTATIONAL IMPLICATIONS 6.1.

There are reputational implications associated with this paper. The successful implementation and delivery of the strategic commitments relating to transforming our corporate support services within the Policing 2026 strategy is crucial to the reputation of Police Scotland.

7. SOCIAL IMPLICATIONS 7.1.

There are no social implications associated with this paper.

8. COMMUNITY IMPACT 8.1.

There are no community implications associated with this paper.



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9. EQUALITIES IMPLICATIONS 9.1.

There are no equalities implications associated with this paper.

9.2.

It is however anticipated that, as a result of the required organisational change there will be an impact on police staff and officers. Although, the level of direct impact on protected characteristics cannot be fully determined at this stage of the programme, the project team are working closely with subject matter experts within the Equality and Diversity Unit as the Design and Develop stages of the plan progress. A draft EQHRIA document has been created for the Programme and will be continually updated as the programme develops.

9.3.

In order to maximise the positive outcomes of a transformed Corporate Support Services the programme team will proactively progress equality, diversity and inclusion.

9.4.

The programme is aware of and will consider existing Policies and Standard Operating Procedures that must be considered when delivering change e.g. o Organisational Change Policy o Equality Diversity and Dignity SOP o Organisational Change Matched-In and Ring-fenced Recruitment SOP o Organisational Change Redundancy SOP o Organisational Change Relocation SOP o Organisational Change Pay Protection SOP o Organisational Change Supernumerary SOP

10.

ENVIRONMENT IMPLICATIONS

10.1 There are no environmental implications associated with this paper.



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RECOMMENDATIONS Members are requested to:

Note the information contained within this report.

