MAIDSTONE BOROUGH COUNCIL

 

CABINET

 

16 APRIL 2012

 

REPORT OF THE DIRECTOR OF CHANGE, PLANNING AND THE ENVIRONMENT

 

Report prepared by Andy Cole 

 

 

1.           MKIP ICT Shared Service

 

1.1        Issue for Decision

 

1.1.1   Cabinet is asked to consider the proposals for a shared ICT service provision covering the Mid Kent Improvement Partnership area and to agree the next phase of work.  

 

1.2        Recommendation of Director of Change, Planning and the Environment

 

1.2.1   That Cabinet Agree:

 

                     i.        That MKIP enter into a ten year ICT partnership as defined in the collaboration agreement with a full review (to include future options and funding arrangements for the service) after a 5 year period.

                    ii.        That a Head of MKIP ICT is appointed to lead the new shared service, and;

                   iii.        That:

a)   The vision, strategic direction and three year operational plan (Appendix F) is endorsed

b)   The MKIP ICT staffing structure (Appendix E) is approved and that delegation for varying the structure be given to Head of ICT Partnership in discussion with the Leaders.

c)   Staff are transferred to a host partner using TUPE after full consultation and that the Chief Executives and Leaders are given delegated authority to decide on the most appropriate host authority based on agreed criteria.

d)   All ICT revenue budgets are consolidated and administered by the Head of MKIP ICT under delegated authority.

e)   An ICT capital fund of £300K is created to support the strategy, using Option three as highlighted in section nine of this report. With each authority providing £100K capital in the first year with future capital funding approved as part of the formal capital bidding process in each authority.

f)    A strategic alliance between MKIP and Kent County Council through a Memorandum of Understanding (MOU) (Appendix I)

 

1.3        Reasons for Recommendation

 

1.3.1   ICT is a key building block in the establishment of further shared services and a factor in ensuring the success of those shared services already in place.  Each authority produces their own ICT related policies but a partnership offers an opportunity to develop a single voice and contribute effectively to the County agenda. Exploring options for pursuing a partnership arrangement was therefore identified by the MKIP Management Board as strategically sound.

 

1.3.2   Substantial work has been undertaken to date on assessing the best model for partnership working.  This included exploring an outsourcing model which would have enabled initial savings of 35-40% but wouldn’t have offered the opportunity of ongoing savings. It was therefore discounted at this time though it was noted that this could be considered at a later date.

 

1.3.3   The project has demonstrated however that there are opportunities to transform the way the service is provided within all the authorities through the shared service model. Through providing resilience and also average savings[1] in the region of £3.71M (£371,000 per annum) across the three districts over the next ten years.

 

1.3.4   Prior to this paper detailed work has already been undertaken on exploring an MKIP ICT partnership which involved looking at a range of operational and financial information, seeking the views of key stakeholders and exploring different models of operation.

 

1.3.5   Following a final paper in October 2011 Management Board was satisfied in principle with a recommendation of a shared service model and requested that an Interim Head of ICT be appointed to develop the business case further and develop a strategy for a shared service.

 

1.3.6   Work has been undertaken since then to develop a strategy, staff structure, operational plan as well as establishing expected savings.

 

1.3.7   In developing these proposals over the past six months discussions have taken place with leading members, officers and staff, as well as reviewing a range of documents and plans.

 

1.3.8   As part of the project consultation has been undertaken with Political Leadership, Corporate Management Teams, MKIP Management Board, Staff within the ICT services and the wider business delivery units. A staff survey was distributed to various staffing groups in 2011 and the responses informed the original options appraisal. Contact has been made with the appropriate union representatives.

 

1.3.9   The report (appendix A) sets out in detail the aims and outcomes expected from a shared ICT service.

 

1.4        Alternative Action and why not Recommended

 

1.4.1   The alternative actions were considered by MKIP Management Board in the original options appraisal. A decision was taken to progress the ICT Shared Service Delivery Model.

 

1.5        Impact on Corporate Objectives

 

1.5.1   ICT is no longer a back office function; it is now at the forefront of delivering the Council’s Strategic Plan. The average citizen is becoming increasingly ICT aware and expectations are growing exponentially. The proposed Shared ICT service will support the following corporate priorities.

 

For Maidstone to be a decent place to live

 

1.5.2   The shared ICT service will work with the county to support their ambitions to improve the access to technology in the boroughs and has its own long term ambitions to provide support for a wide range of information and communication technologies within its local communities.

 

Corporate and Customer Excellence

 

1.5.3   The Council is committed to maintaining a well resourced and motivated workforce. ICT systems have a very important role to play in ensuring that staff are properly equipped to fulfill their roles and responsibilities as public servants.

 

1.5.4   Customers are effectively communicated with, understood, their needs are met and they are offered a choice of service access channels.

 

1.5.5   The proposed recommendations provide flexibility and accountability for the ICT service across the council and the wider partnership, improving access and adding value to service provision for the customer

 

1.6        Risk Management

 

1.6.1   A detailed risk analysis is included within the report. Corporate Risks associated with the Shared ICT service will be added to the Corporate Risk Register where appropriate.

 

1.7        Other Implications

 

1.7.1    

1.      Financial	X
2.           Staffing	X
3.           Legal	X
4.           Equality Impact Needs Assessment
5.           Environmental/Sustainable Development	X
6.           Community Safety
7.           Human Rights Act
8.           Procurement	X
9.           Asset Management	X

        

 

                    Financial

 

1.7.2   Finance proposals and recommendations form part of this report. Section 151 officers from all partners have given their full endorsement to the financial recommendations and saving apportionment contained within the report.

 

Staffing

 

1.7.3   Staffing proposals and recommendations form part of this report. Further consultation will be undertaken with staff as the shared service progresses.

 

Legal

 

1.7.4   The MKIP legal team have reviewed the papers attached to this report. Further Legal advice will be sought during the transition phase of the shared service.

 

Environmental/Sustainable Development

 

1.7.5   The proposals support the requirement for greener ICT across the partnership as a whole. The MKIP ICT strategy will reduce the carbon footprint of partners by using consolidation of hardware and developing desktop and server strategies that provide sustainability and reduce the environmental impact of ICT.

 

Procurement

 

1.7.6   As part of this project the joint procurement board were engaged and the key points when the boards support would be required were identified as part of their three year plan.  

 

Asset Management

 

1.7.7   All ICT equipment provided by MKIP remains the property of purchasing authority and will record an asset number.

 

1.8        Conclusions

 

1.8.1   Developing an ICT shared service has the opportunity to deliver a significant long term impact upon MKIP which goes far beyond the potential for savings. As an innovative partnership between the authorities, MKIP can collectively set the path for future shared services and improve the quality of the working arrangements of the existing partners.

 

1.8.2   The project board feels that following the development of this business case it is assured that the shared service can deliver these benefits, though to work as effectively as possible for all partners some significant changes will need to be made. 

 

1.9        Relevant Documents

 

1.9.1   Appendices

 

Appendix A - ICT Shared Service Business Case and Executive Summary

Appendix B - Proposed annual savings over 10 year Division of Net savings (exempt)

Appendix C - MKIP Authority Revenue Budgets 2011/12 and 2012/13 (exempt)

Appendix D - MKIP Authority Capital Budgets 2011/12 and 2012/13 (exempt)

Appendix E - Level of Investment (exempt)

Appendix F - Risks

Appendix G - Staff Structure (exempt)

Appendix H, Ha and Hb - Strategy, Operational Plan and Transition Plan

Appendix I - Memorandum of Understanding

Appendix J (exempt), Ja - Collaboration Agreement and Service Level Standards

 

Background Documents

 

Available on request

 

ICT Partnership Business Case

MKIP ICT Outline Business Case

MKIP ICT Costing Report

IS THIS A KEY DECISION REPORT?                  THIS BOX MUST BE COMPLETED   X     Yes                                               No     If yes, when did it first appear in the Forward Plan?   July 2011…………………………………………………………………………………………..     This is a Key Decision because: Savings of above £250,000;…………………..   …………………………………………………………………………………………………………………………….    Wards/Parishes affected:   ALL…………………………………………………………………..   ……………………………………………………………………………………………………………………………..