Agenda item

To receive an update from the Head of the Shared Service on progress with development of the Target Operating Model for the Shared Service.

Fabio Negro, Managing Director of Shared Service, supported by Tim Green, Senior Programme Manager, Digital Services, advised members that the Committee had been arranged as an additional meeting to provide the Committee with an update on the development of the Target Operating Model (TOM) following its review by the Shared Technical Service (STS) Joint Management Board.  Members were then provided with a brief overview of the proposed STS Operating Model.

As part of the overview, Members noted the background to the development of the Operating Model following establishment of the STS in 2016, which had been designed to reflect the progress made and key long term strategic priorities and changes identified in terms of delivery of the service moving forward.  The development of the operating model had been based on a detailed review of service provision, strengths, weaknesses and key strategic goals with three options having been identified for review by the Joint Management Board.  The preferred option selected by the Joint Management Board had been Option 2, which it had been felt would provide the best opportunity for improved outcomes whilst also delivering an affordable and value for money service, given the budgetary pressures all Councils are experiencing.

The full report outlining all options in detail had been provided for Members as an additional background document for the meeting, with the Committee noting the summary and key benefits of the recommended Option 2 as follows:

·                An organisation designed to meet or exceed a more complete set of Service Level Agreements and improved end-user experience.

·                An extra 15 net resources (including 5 from Lewisham Homes (LH) subsumption), with a total of 37 increase in establishment headcount; reducing the dependency on agency staff for operation.

·                A dedicated 24 hour telephone Service Desk channel provided by a specialist third party supplier, making permanent the out of hours service provided since March 2020 and extending to in-work hours.

·                A dedicated 2nd Line Support team to provide appropriate role definition between service management and operations in the Infrastructure teams; in order to provide clear responsibility and ownership

·                Provision of additional resource in the Infrastructure teams to meet the needs of Project change and Operational management.

·                A dedicated Service Design and Improvement team, to continually improve service performance, efficiency and service management definition for each of the  key platforms and applications.

·                Other changes included the provision of new Strategy, Technical Architecture, Finance and PMO/Delivery disciplines.

·                Enhanced cyber and security capability recognised to be critical for the service in the future.

Having noted the summary provided, the Committee then went on to consider the Benefits and Drawbacks of the preferred Option, proposed changes in Service Level Agreement KPIs along with the revised Key Performance Indicators and Financial Implications as detailed within the presentation provided for the Committee and included with the agenda. It was noted that the report had been separated into two parts and that any questions or detailed discussion regarding the proposed organisational structure or specific roles proposed within the structure would need to be undertaken in a closed section of the meeting.

In considering the option presented the Committee recognised the hard work and dedication the STS had demonstrated in developing the Operating Model, which had been welcomed.  Members noted the impact the proposals would have in terms of the ability to deliver continuous improvement resources to make the service more responsive and user focussed as well as in supporting the ongoing design and transitioning of new services via project delivery.  The cost implications of the proposal were also noted which had been estimated as £750k compared to the original estimate of £1.1m originally provided.  As part of the process, a review had also been undertaken of the existing SLA and whilst delivering a more modest improvement on current targets it was felt these were more realistic and likely to be delivered.

In terms of the staffing resource proposed under the preferred option for the operating model the Committee noted that the intention was to reduce reliance on agency resource with a net increase in head count of 10, which would provide the capability to create an efficient, cost effective and performant organisation.  The proposals would include the recruitment of apprentices across all 3 boroughs supporting and using local people. Apprentices would benefit from the breadth of both Council services and the Shared service teams.

The Committee also noted that there had been a huge demand for the out of hour’s telephony service desk that had been operating since the Coronavirus outbreak. Given the success of the 6-month trial with a 3^rd party provider the contract had been extended and work under the proposed model would continue around supporting service desk staff to resolve issues at the first instance.

The review undertaken had also included the basis of the Inter Authority Agreement (IAA) entered into by each Council when the service was originally established. Recognising the need to ensure the IAA was adjusted to reflect the change in service levels since the STS had been established, Fabio Negro informed the Committee that the proposed Operating Model had also included a new apportionment model between all three Council’s, which it was proposed, would be subject to annual review and had also been adjusted to reflect Lewisham Homes now joining the service.

In concluding the introduction before the Committee discussed the proposal, Fabio Negro informed Members that the opportunity had also been taken as part of the review to update the service model and IAA. The Committee noted that once the final changes had been agreed the and any comments considered from the Committee final approval would then be sought from the Joint Management Board.

In noting the proposed Operating Model, the Committee moved on to discuss the following points:

·                Members were supportive and welcomed the progress made in development of the Operating Model recognising the aim to ensure a value for money approach that was both achievable and affordable.  In terms of issues highlighted, members were keen to seek further details on the level of investment required to support delivery of the Technology IT Roadmap, given its link to delivery of the SLA improvements and also, on the plans to develop ongoing support for service users.

Fabio Negro advised that in relation to the investment in technology, the IT Road Map identified the need for approx. 36m across all three boroughs over a 5-year period which, would cover investment in the following areas:

·                Infrastructure – designed to manage and resolve legacy hardware and software no longer supported and therefore vulnerable to security issues;

·                End user computing;

·                Campus networking and connectivity;

·                Cyber protection;

·                Service Delivery – including a focus on hornbill

In terms of support for service users, members noted that the provision of 3^rd party phone support would be continued, including out of hours priority for P1 incidents.

Members noted that the plan had checkpoints built throughout to review any emerging technology continually assessing each Council’s needs.  Members were advised that further details on the high level version of the financial modelling on which the revised IAA had been based would be shared with the Joint Committee at a future meeting.

·                In response to a query further details was provided in relation to the changes to staffing of the service with a net increase in headcount proposed. Whilst the challenges in relation to recruitment, given the competitive nature of salaries in the private sector for certain key roles were recognised it was felt the change in more people working remotely, may assist in terms of widening the area for recruitment. The Committed noted that the Shared Service had looked at moving apprentice roles across all of the service rather than confiding them to one team, which would assist with developing their knowledge and enhance experience across the entire service.  In terms of the location of staff, the move towards more remote working would also assist in meaning there was less alignment of staff (apart from the physical desktop teams) needing to be located within one borough.  The move to reduce the reliance on agency staff was also welcomed by the Committee, which would include a review of roles and grades in order to make the package as attractive as possible. The main area of challenge identified involved the more specialist roles, were resources were at a premium.

·                Members were advised that the proposed option selected for the Operating Model had been subject to detailed development and co-operation across all three Council’s.  This had included a key focus in driving down costs, whilst also continuing to build on the success of the service with key challenges identified in relation to addressing the following areas of risk – cyber security; support for new ways of working and ensuring the right help was available for service users.  The Joint Management Board had been confident the proposed option was best suited to addressing these challenges with Fabio

and his team thanked for their hard work, commitment and dedication in meeting the needs across the whole service whilst also delivering the improvements made.

·                In terms of the ongoing monitoring of performance, the Committee were advised of the detailed analysis undertaken on a 4 weekly basis by the Operation Management Group, which was then subject to a high level review by the Joint Management Board in order to feed through to the Joint Committee.  The improvements identified in relation to the SLA were designed to focus on prevention of issues rather than purely resolution times, which may (depending on any third party involvement) not be entirely within the control of the service to achieve.  Whilst challenging Members were supportive of the approach outlined both in terms of the SLA and proposed operating model having also recognised the balance between managing costs and the overall level of investment required to ensure the service was able to meet and deliver the type and level of service required.

As no further matters were raised, the Joint Committee completed their consideration of the proposed Target Operating Model.  The Chair thanked Fabio Negro for update and it was RESOLVED to endorse Option 2 as the preferred basis for taking the Target Operating Model forward.