Glasgow City Council
Lean and Continuous Improvement
The Transforming Glasgow change programme is designed to make best use of resources and create a leaner and more efficient council. Lean methodology will involve 30,000 staff across the council and save £26m in 2016-18. Lean has been rolled out to deliver organisational change, innovation and create a more empowered workforce to achieve savings but with more efficient back-office processes. Savings of £13.2m have been delivered in 2016-17 through increased use of Lean methodology and the original target of £10.9m was increased to £13.2m as more projects were identified for delivery using Lean from 2,700 ideas posted.
Following a significant transformation programme at the beginning of the decade, which identified £3m worth of savings, Harborough has redesigned services around customer needs and income generation, in 2017-18 finding savings of £77,000 and generating income of £623,000. The proceeds have since 2014-15 seen the council plough £3.2m into priority areas and mitigating the impact of funding reductions such loss of recycling credits. Harborough plans to use its financial health growth to invest in priorities including its property strategy, the creation of a single public services hub in Market Harborough and sustainable housing and economic growth.
North West Legal Consortium
Working Together for Public Sector Organisations
This service is used by 46 councils to supplement in-house legal skills, allowing members to commission solicitors and barristers through a web portal. In its first year, 2016-17, the solicitors’ framework saw £2.2m of work commissioned generating savings in excess of £425,000. A steering group drawn from members works with partner law firms, DAC Beachcroft, Geldards, Hill Dickinson and Weightmans. The consortium offers members’ staff free half-day training sessions, amounting to more than 50 free continuing professional development hours, worth some £2,150 to each individual. A practice management group supports the growing number of practice managers in member organisations with regulation and compliance.
Orbis is a shared service in procurement, property, finance, business operations, human resources, information technology and revenues and benefits. Some 2,000 employees work under a joint budget of £63m, making Orbis one of the largest local government shared service partnerships.
It aims to deliver operational savings of 15% against a 2015-16 baseline of £50m, and become fully integrated by April 2019. Orbis has already exceeded expectations by generating £4.5m of efficiency savings in 2016-17, surpassing its financial targets by £3.4m and has delivered £3m year-on-year savings, outperforming its 12.8% savings target. A robust governance framework allows it to work across different council cultures and politics.
Franchising of Recycling Centre Reuse Shops
Warwickshire has developed a network of charity re-use shops with more than 800 tonnes of goods being diverted from the waste stream. This has created social enterprises with a combined annual turnover of more than £1.5m. Warwickshire has now auctioned the operation of these franchise shops in a competitive process that was won by Age UK, which is now generating an income stream for the charity and £300,000 a year for the council. The shops provide jobs for 25 people and save Warwickshire £75,000 a year in disposal costs and Landfill Tax. Proceeds are invested in services to reduce the isolation of older people.
Five years ago, Wigan faced the third worst cuts of any local authority with a savings target of £160m, representing 40% of its budget. The council reacted by transforming rather than cutting services, and kept its savings programme on track with £115m already saved but overachieved on efficiencies while no savings were sought from children or adult social care. This process has been assisted by The Deal, an informal agreement that encourages residents to be independent and reduce demand on services. A £7.5m Communities Investment Fund invested in third sector bodies to help deliver this, with swimming pools, libraries and community centres now being run by the community.
Cliff Dalton, head of local government & transformation, Chartered Institute for Public Finance & Accountancy
John Henderson, chief executive, Staffordshire CC
Sarah Pickup, deputy chief executive, Local Government Association