1. Performance Improvement Programme Tuesday, 22 April 2014 Presentation by Mark Gilks Chief Executive

2. Three stars improving well Use of resources :3 Three star ALMO High tax but delivering to residents Low reserves but in financial balance and well managed New coalition administration in 2006 after 35 years in opposition –Desire to be a lower tax authority –Organisation fit for purpose – smaller but stronger –Poor financial settlement A WELL PERFORMING COUNCIL AND A NEW ADMINISTRATION BRINGING A SIGNIFICANT CHANGE OF DIRECTION

3. HOUNSLOWS FINANCIAL SETTLEMENT

4. WHY WE DECIDED ON A COUNCIL WIDE IMPROVEMENT PROGRAMME AND WHY DID WE PROCURE A PARTNER 2007 – manifesto commitment - zero council tax delivered –Normal budget star chamber process – painful but possible 2008 – 2010 – needed minimum £30m to keep to zero –Old budget process wouldnt work – major service cuts inevitable –Needed to break out of individual service reviews and look across council Put the challenge to the market – 40+ responses – 3 into dialogue Total procurement period (March 07- July 07) KPMG appointed – dialogue process helped shape the programme –Faster – 1 year instead of 2 –More ambitious – agreed a mutual target of £50m – what we thought possible –Contingent payment – based on a percentage of the benefit –Well referenced – similar programmes nationally

5. WHAT KIND OF PROJECT DID HOUNSLOW WANT? Understanding our cost De-layering management structures Shared Services to reduce head count Doing more with less Procurement Changes in legislation Audit and Review Inspection (Best Value /CPA) Long term cost savings Web enabled services Doing more with the same Migrating Back Office services to the Front Office Call Centre

6. Jul 07 Dec 07Jun 08 Gate 1 What drives cost and what interventions may change cost ? Commit to analysis IDENTIFY OPPORTUNI TIES CONFIRM SOLUTIONS Mar 08Sep 07 IMPROVE Gate 3 Gate 4 Gate 2 A business case for each intervention ? Commit to designing the processes and structures EVALUATE OPTIONS Gate 5 Implemented and sustainable savings Sep 08 A design for lower cost processes and structures ? Commit to implement First wave implemented Handover plans Commit to Wave 2 and take on programme LBOH KPMG A fast, clear programme demanding clear commitment at five points. A joint team with a staged handover to Hounslow staff. KPMG

7. Secured - £23.9mNew establishment tracked and under control New teams in place and operating £23.9m Surplus posts identified and managed out Council structures clear, documented and agreed 3 year benefit Council has a clear, designed and managed establishment Secured - £8.4m Utilisation and performance is managed and resources shared Pools fully implemented and matched with workload £8.4m Surplus posts identified and managed out Shared admin support teams designed 3 year benefit Staff with common administrative skills are managed as a shared resource Secured - £3.2m Service level agreements in place Stakeholders are satisfied that the service is well managed Surplus roles managed out £3.2m Surplus posts identified Shared service team and new processes implemented 3 year benefit Bills are paid, payments received and financial information provided efficiently and clearly DELIVERING £53 MILLION WITHOUT REDUCING SERVICE TO RESIDENTS. NINE STEPS TO A SMALLER AND STRONGER COUNCIL Secured - £8.4m Secured - £23.9m Secured - £8.4m

8. Newly resourced procurement organisation in place Secured - £3m New strategic contract for adults home care £7.5m Better contracts for sourcing fostering. Childrens placements up to 15% cheaper First private sector leases up to 15% cheaper Desktops and laptops are 20% cheaper 3 year benefit New contracts are in place for a range of goods and services Stakeholders are satisfied that the service is well managed Secured 2009 Service level agreements in place Self service implemented £1.6m Surplus roles identified and managed out Shared service teams and new processes implemented 3 year benefit Staff update personal details and get payslips on-line. Hire to retire is handled efficiently and well Secured – £2.3m New service level agreements in place £3.1m New improved processes for discretionary services in place Schools pay appropriate proportion of overheads 3 year benefit Schools pay an appropriate price for council services DELIVERING £53 MILLION WITHOUT REDUCING SERVICE TO RESIDENTS. NINE STEPS TO A SMALLER AND STRONGER COUNCIL 3 year benefit £1.6m 3 year benefit

9. Secured - £1m Active tracking of telelogging using new tool In house home care reconfigured to refocus remaining in house resource on re-ablement £4.8m Surplus roles removed from ACM residential and day centres Assessment and care management process improved3 year benefit Adult care is managed at a lower cost Secured 2010 New meeting suite, training centre and civic refurbishment completed Civic Centre refurbishment and building closures planned £2m Where staff should best work and the building space required planned 3 year benefit Staff work in open, flexible and standard accommodation in fewer buildings Secured – 2009New web payments and appointment booking First wave of surplus roles identified and removed On line referrals for schools and doctors £2.1m Website re-launched with new content Bring current call centres together to share resource and work3 year benefit Council drives the effective use of web channels and has implemented the first wave of channel improvements and consolidations DELIVERING £53 MILLION WITHOUT REDUCING SERVICE TO RESIDENTS. NINE STEPS TO A SMALLER AND STRONGER COUNCIL

10. WHAT WE LEARNT ABOUT MAKING THIS WORK Clear focus on a cost saving target High ambition and a compelling reason to deliver Clear and present leadership – members and officers Powerful client role essential Scale and pace – do it as fast as you can Rigour – hard baseline, hard numbers, change the budgets Whole council – new savings cut across directorates New evidence – look at cost drivers not just old budgets Transparent and open – tell staff as much as you can Rational improvements – sustainable changes not top slices

11. How KPMG approached the Hounslow PIP David Timbrell-Hill - Director Government Advisory

12. Questions?