Turning to outside Support
The global recession and banking crisis have left a gaping hole in council finances, and whichever party comes to power in May’s general election, it will try to reduce this budget deficit by further cuts in public spending and tax increases.
The current, three-year spending plan ends in March 2011. Until now, most councils have been relatively insulated from the true impact of the recession, because the Government has honoured the three-year grant settlement up to 2010/11.
However, the real hammer blow is likely to be dealt soon, as government support for councils is re-set in the context of this generational squeeze on public expenditure.
It may not seem like the most obvious time to call on external consultants, but judicious use of outside expertise is helping many councils find innovative ways of boosting efficiency, saving money and improving services.
Warrington Council recently undertook a radical change in its finance department, bringing together teams from across the organisation to develop an entirely new management model.
Three external experts in change management worked closely for a limited time with senior council managers, to ensure staff at all levels of the authority were given reassurance as well as the confidence to embrace the move, take ownership of it and develop capacity from within.
Public Sector Consultants director, David Elcock, began working with the authority as interim head of children’s services finance in 2008. One of the first steps he took was to embed sound financial practices and provide additional resources to help the department meet efficiency requirements.
The two teams being brought together in the move were co-located, which immediately began to have a positive effect on communication and staff morale. Employees were given new opportunities to raise their concerns and discuss ideas following the introduction of monthly team meetings.
Mr Elcock says: ‘One of the most important aspects was to introduce an element of challenge to some of the existing ways of doing things. We brought in knowledge of best practice from other areas, offering alternative ways of doing things.’
Warrington Council’s children’s services head of service for business planning and resources, Ann McCormack, says external expertise has helped guide the council through a challenging period, and develop a blueprint for the future.
At Watford BC, the combined efforts of consultants and staff provide a great illustration of how the best interim arrangements can ensure that even wholesale systemic change can get off to a smooth start.
Public Sector Consultants has been working with the council since the process of merging four services with neighbouring Three Rivers DC began two years ago.
Aware that change on this scale would require a culture change among staff, consultants devoted much of their time to building skills and capacity, with the aim of leaving behind a capable and resourceful organisation equipped with an increased depth of talent.
Interim head if finance, Nigel Kennedy, explains: ‘Coming in at the beginning has meant that transformation has been achieved with the minimum level of upheaval. Integrated systems have been introduced, and permanent staff have had the support they needed, coupled with the long-term flexibility that using interim staff provides.
‘Permanent staff have driven the process, while we provided expertise.’
The aim of the merger was to dramatically reduce costs for both councils involved, freeing up valuable funds which could be ploughed into other services – an ambitious strategy but one with the potential to disrupt existing service provision if not carefully managed from the outset.
Watford BC’s executive director of resources, Tricia Taylor, says that external expertise provided flexibility for transformation and management change; supporting finance staff through this transition period.
She adds: While our achievements in relation to shared services have been mainly down to secondment of internal project resources and project teams, Public Sector Consultants’ finance resources have been a targeted helpful supplement to our overall approach.’
Jon Hanlon is a freelance journalist working for Public Sector Consultants