1. Sharing Services – Cutting Costs Presentation by Gary Porter 10 th March 2011

2. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Government agenda Need to save money

3. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Our Company Our story in figures: £30,000,000 saved over 10 years 214,000 residents served by Compass Point 299 staff transferred to the Company 97 councillor shareholders 10 teams transformed 5 services delivered 2 council owners One company

4. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Our Story… Getting it together Three phases What we liked Getting help along the way Making it work Why a company Our approach Making it real How we can help

5. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Three phases Phase One – Do we like each other? Pathfinder & Shared Services Sectors Report – Autumn 08 Phase Two - In Principle Feb 09: Tribal Employed Feb - Aug: 09 Staff & Members workshops in groups across the three councils Sep 09: Tribal report - three become two… Phase Three - Commitment Oct 09: Reaffirming commitment - £4.65m, financial savings worthwhile Oct - Feb10: Setting up the project, legal guidance, recruiting team Feb - Jul 10: Project becomes company, becomes reality Company operation 1 st Aug 10 onwards: Implementation of the agreed business plan.

6. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Setting it up Investment £4.65m split between 2 authorities Payment for redundancy, ICT changes, legal advice change team Benefits £30m savings 63/37 split c shareholder investor option in East Coast company for new public sector partners

7. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Getting help Legal advice Company and Governance structure Shareholders and Management Agreement Teckal exemption compliance Trading options Procurement advice Buying solutions quickly and effectively Contract management

8. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Company set up Why? It changes the culture in the council Its a vehicle to develop an income stream for the council Its not outsourcing - you still have flexibility and control Established a joint venture private limited company: Compass Point Business Services (East Coast) Ltd = Teckal compliant; and Compass Point Business Services to trade on open market.

9. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Our Approach Governance clear Project Team Appointed individual specialists, not a firm Merged services project Bite size bits: What outcomes do we want? Key decisions taken along the way – company formation April 10; shadow board directors May 10; business plan Aug 10 Redesign approach for services – putting customers first, involving staff Setting up a company Stakeholder management

10. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Our Approach What are the benefits? It achieves real savings Knowledge transfer of lean redesign It is driving cultural change in our council services We have flexibility We could work for other bodies We could add in future owners – c class shareholders

11. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Making it real Board of Directors from both Councils Management Team – Stephen Bayliffe MD recruited from private sector Redesign Teams – staff teams recruited from the services working alongside redesign experts Major investment in ICT and lean processes Management Agreement & underpinning service level agreements Balanced Scorecard – performance management

12. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Lessons learned Be upfront and honest with each other, politically and managerially Recognise the importance of managing stakeholders – internally, externally Good communications are essential – develop new two-way channels, listen and respond Get involvement from staff, TUs and managers Resource the team with people who have done it before – it wont happen otherwise Commit money to it

13. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils How we can help Shared services Lean business process redesign Individual services: Benefits Customer Services Finance HR, including H&S ICT Payroll Procurement Revenues

14. Compass Point Business Services (East Coast) Limited a company controlled by East Lindsey & South Holland District Councils Benefits It will save the two councils £31m Responsive services Fast decision making