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Published byKyle Hopkins Modified over 10 years ago
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Peter Sloman Chief Executive Oxford City Council
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Oxford Population 151,000 Progressive politics- conservative free zone (Labour, Liberal Democrats, Green Councillors) 20% plus minority ethnic communities Two Universities - 30,000 students Large Teaching Hospital Car production - BMW Mini Plant Large science/research economy High levels of economic and social inequality History of militant trade union activism from manufacturing past
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UK Context Labour Government until 2010 –Growing Demands placed on public services –Push for externalisation and shared services – efficiency/cost reduction –Inspection and challenge of public services –Growth in funding and jobs –Central targets Coalition Government –30% reduction in central funding in first 3 years –A further 30% to come –Attack on sector morale Chief Executives salaries Role of political leaders Trade Unions Removal of functions e.g. schools Push for externalisation and shared services –Elimination of Inspection –Localism
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Oxford Context 2007 Poor relationships –Politicians / Managers –Managers / Trade unions Financial crisis Services all in-house delivery Poor service outcomes National pay bargaining High sickness/poor attendance
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Oxford City Council 2007-2013 Approach to Transformation Employee relationships key to coping with changing context for public services Taking the opposite approach from sector –Cutting jobs/protecting jobs –Cutting services/ redesigning services –Externalisation/ in sourcing work –Commoditisation/ customer and community focus
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Conditions for Change Unified and focussed political leadership New managerial leadership Change management agreement with Trade Unions Middle management/Skills development Performance management Staff appraisal reviews Communications Sense of shared endeavour –World Class City for Everyone –Needs a World Class Council
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Fundamental Service Review – 20:20 Service by Service : –Starting with poor value for money –Poor performance –Strategically important 20% quality/performance improvement 20% cost reduction Involving workforce Based on a clear deal –Good job security/rewards compared to market –First class productivity and engagement City Works - waste example Leisure review
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Sharing Rewards: Partnership Payment 2010 Response to 2010 coalition cuts Pay freeze Freeze contractual increments in pay grades £400 annual partnership payments - subject to: –Efficiency improvement –Appraisal targets –Attendance Result: 25% cost reduction - 90% performance targets met Halved sickness - 14 days to 7 days Workforce reduction through natural turnover
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A New Deal 2013 Facing a new 30% cut in government funding making 60% in all now Next phase insourcing work and trading for income Five year pay deal outside national agreement Job protection Below inflation rise for five years Continue partnership payment but also apply conditions to pay rises
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Overall Impact Real pay cut –Over period 2010-2013, 9% real terms pay cut –Over period 2013-18 further 6% real terms pay cut –15% in total Job protected 20% improved productivity 10% income from profit from trading No cuts in services Workforce engaged in designing service improvement and with a stake in organisations success Cash available to invest in the City protecting 900 jobs in construction and supply in private sector
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Learning from the Journey Improvement political/managerial relationships and shared vision is key for Leadership of culture change Excellent workforce engagement and trust essential for transformation Based on shared values and objectives –Protecting services –Social justice – impact of the Council –Protecting jobs –Not privatising services Active dialog and constant communication/engagement Confidence locally in Oxfords new entrepreneurial local state is based on partnership with its workforce People will make sacrifices if there is clear, honest leadership with shared interests at heart Producer interests can be aligned with community wellbeing
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