Issue - meetings

The Procurement Service has been operating under a jointly appointed Head of Procurement & Commissioning since September 2013 and began operating under an integrated Senior Management Team in April 2015 (this delivered 23% savings against the previous combined costs for Tier 2 and 3 for Procurement).

In April 2017, the integration of the ESCC and SCC procurement functions completed. Not only was this designed to reduce costs (£345k budget savings for 17/18, 11% of the operating budget) but the restructure offered the opportunity to also provide a broader ‘cradle to grave’ offer with a greater emphasis on the development of longer term category strategies to support commissioning; alongside a supplier and contract management focus to ensure value for money is delivered through the lifecycle of our contracts.    

Furthermore, a move away from small specialist teams, to wider professional groupings, offered the potential to use resource more flexibly and efficiently across teams and between authorities, as well as offering the possibility for improved knowledge sharing. 

It is now nearly 18 months since this model went live (the formal integration of the BHCC has now also recently completed) and this paper offers the opportunity to assess the extent to which this ambition has been realised.

Declarations of interests:

None

Witnesses:

Ross Duguid, Head of Procurement and Commissioning, Surrey County Council

Key points raised during the discussions:

1. The Committee received an introduction to the report from officers who provided an overview of how the Procurement Service within the Orbis Partnership had performed since April 2017. Members were informed that steps had been taken to create a more flexible service and these were summarised for the Committee. In particular, Members heard that a significant amount of work had taken place to improve the efficiency of the Procurement Service through changing the way the Team was structured, improving processes for categorising projects as well as streamlining governance processes. Officers provided an overview of the three teams within the Service and the steps that had been taken since April 2017 in order to make them more responsive to the needs of customers.

2.         Further information was sought by Members on steps to join up procurement with district and borough councils within East Sussex and Surrey. The Committee heard that many district and borough councils were receptive to the idea of aligning procurement activity more closely as they recognised the benefits of bringing procurement functions together which included advantages such as increased presence in the market, improved information sharing and reduced duplication of activity.

3.         Member agreed that the Committee should receive an update on the Property Service at its meeting in January 2019.

Actions/further information to be provided:

1. The Orbis Joint Committee to receive an update on the Property Service at its meeting in January 2019.

RESOLVED:

That the Orbis Joint Committee

i.          note the progress that the procurement department has made in delivering the ambition set out in the above summary; and

ii.          The Joint Committee is sighted of the further developments that are planned to address areas that have not yet been delivered.

This report provides an update of the progresses made to-date and an outline of the key outcomes expected for the Financial year 2018/19.

4.1     The Chief Property Officer introduced the report which discussed the process of integration so far, what the next steps were and the challenges that property services faced such as very different geography between the three authorities, different landlord models and business plans which were out of synchronisation.

4.2     In response to Councillor Elkin, Officers responded that there was only one integrated post in Brighton & Hove City Council’s property services. The aim was to achieve an integration of systems and processes rather than integrated posts. Orbis was currently looking to procure a new database system for property services which would be used across all three authorities.

4.3     In response to Councillor Wealls, Officers stated that savings would be driven by improved processes and not by staff reductions. The number of agency staff employed by property services had been reduced with front of house services being insourced.

4.4     In response to Councillor Wealls, Officers also clarified that the reporting structure for senior management was to the Chief Property Officer as the Orbis liaison and to the respective Executive Directors in each Authority. Each Authority set its own objectives which were then managed from a personnel side by the Chief Property Officer and the Executive Director had strategic oversight.

4.5     In response to Councillor Clack, Officers stated that they agreed that travelling between authorities was an overstated issue as there were only 16 individuals with dual roles in property services and only 48 dual roles in the entire Orbis Partnership.

4.6     RESOLVED: That the Committee noted the update.

This report is to ensure that the Joint Committee continues to be informed on developments within the partnership.

7.1     Officers introduced the report which informed the committee that Surrey Commercial Services had come under Orbis. The service catered to around 300 schools in Surrey and a neighbouring authority. The Service currently operated at a profit.

7.2     Councillor Wealls expressed concern that the presence of Surrey Commercial Services in Orbis could influence political decisions in the other Authorities to move to providing services in house which were being effectively managed as outsourced contracts.

7.3     Officers provided assurance that Orbis would not seek to influence political decisions in the Sovereign Authorities. However Surrey would be able to provide technical expertise to assist in writing a business case if another Authority sought to bring its school meal provision in house.

7.4     In response to Councillor Turner-Stewart, Officers stated that there was increased competition from private sector providers and that the service was seeking to rebrand in order to compete for contracts outside of Surrey.

7.5     RESOLVED: That the Committee noted the report.

The Orbis Business Plan is predicated on the delivery of efficiencies achieved through service redesign and integration. This report provides an update on this process for the IT and Digital Service.

Declarations of interest:

None

Witnesses:

Matt Scott, Orbis Chief Information Officer

Key points raised during the discussion:

1.            Members received a presentation from the Chief Information Officer.

2.            Members noted that the IT & Digital (IT&D) service had undergone a restructure, with the leadership team having been reduced from 12 to five.  A 33% reduction of staff had already contributed to £1m savings in the current financial year.

3.            The Chief Information Officer explained that following three years of service and team structure redesign, it was important that the changes have time to embed during the 2018/19 financial year, so to maintain staff morale and aid staff retention.

4.            Members were informed that there were currently 133 IT&D projects underway, including piloting robotic systems within Business Operations. 

5.            The Chief Information Officer explained that the IT&D spend across the partnership was below the industry average and therefore constitutes value for money.  Although there are risks associated with a lower level of investment, Members noted that IT&D supports over 15,000 users and trading customers provide a net contribution of £0.5m towards overheads.  Furthermore, it was acknowledged that IT&D was critical in ensuring the organisation could deliver all of its services. 

6.            The Chief Information Officer explained that phase one of Hygiene factor delivery for equipping and enabling Orbis would be completed by the end of 2017/18.  Phase two will allow key systems to be shared and accessed across the partnership, including Property Asset Management System (PAMS), Sharepoint and SAP.

7.            Members enquired about the contingencies in place for system failure.  It was explained that whilst contingencies were in place and were robust, disaster recovery systems operate using the last stored back up and can sometimes take a while to fully restore.  The focus going forward will be on ensuring high systems availability, therefore reducing the risk of requiring back up arrangements.

RESOLVED:

Members noted the content of the presentation.

This report provides an update to the Orbis Joint Committee on the integration of services across the Finance function.

Declarations of interest:

None

Witnesses:

Sheila Little, Director of Finance for Orbis and Surrey County Council

Key points raised during the discussion:

1.            Members received a presentation of slides from the Director of Finance.

2.            Members noted that the finance teams across all three partners have been working together since last year and that an integrated finance leadership team was now in place to help ensure integration of the finance function develops and sustains an appropriate focus on sovereign specific compliance and control.

3.            The Director of Finance explained that the Internal Audit team was further ahead in terms of integration, having worked together since October 2015 and audit reports have been remodelled so they are consistent to best practice and the same across all partners. The Internal Audit team’s integration has allowed data collection to be more streamlined and has provided opportunities for growth. 

4.            Members were informed that a review of specialist services was underway which would involve a £2.5m spend across all partners and is aimed at developing Centres of Expertise leading to around 20% savings through the integration process.

5.            Savings in the current financial year were mainly being delivered through vacancy management.

6.            The Director of Finance update that the service had recently held a team away day to engage with staff, which feedback has indicated was very successful.

7.            Members noted that all three partners currently have different external auditors for statutory account audits, however as of the start of 2018/19, all authorities would have the same external auditor, Grant Thornton.

RESOLVED:

Members noted the content of the presentation.

As part of the Orbis vision, it is recognised that the development of the brand and its employees is pivotal in achieving the objective of making Orbis the compelling alternative.

Orbis is undertaking several wider programmes to develop and provide opportunities for staff through initiatives such as Ingenium, creativity and innovation training and the launch of the EPIC+ talent development programme.

Declarations of interest:

None.

Witnesses:

Kevin Foster, Chief Operating Officer, ESC

David Kuenssberg, Director of Finance & Resources, BHCC

Adele Jenkins, EY

Key points raised during the discussion:

1.           Officers introduced the report and informed Members of the ongoing progress of the Orbis brand by providing development opportunities to staff through the EPIC+ development programme. It was highlighted that staff would be supported and that those who show initiative and take responsibility for their own development would be most successful.

Actions/ further information to be provided:

None.

RESOLVED: That:

the Orbis Joint Committee notes the business challenges identified for the EPIC + development programme.

To provide an update on the People and Change workstream in Orbis.

The Programme Director, People and Change introduced the report on the People and Change programme.

Key points raised during the discussion:

1.           The People and Change programme is working to create resilience, share expertise and develop opportunities for staff growth and development across the Partnership. This is being delivered through a number of workstreams:

·      The EPIC+ development programme, including THINK, to provide people with real experience of tackling business challenges.

·      Awards to acknowledge the achievement of staff, celebrate success and to grow the reputation of Orbis as the compelling alternative.

·      Shared Services Summit with Orbis, One Source and LGSS to share experience and develop future collaboration.

·      Innovation, with a focus on continuous improvement to encourage debates amongst staff at a local level, and to solve problems in a different way.

2.           The Committee commented that the EPIC+ programme was an exciting way to give staff the opportunity develop skills, whilst doing something different. The Committee asked how this programme is being delivered.  The Programme Director, People and Change explained that the EPIC+ programme has been launched with 27 people participating, who will be allocated to one of six business challenges. Individuals will nominate what they would like to do and will be offered a mentor. The programme is targeted at high performing and ambitious people with the potential to develop further. This enables Orbis to grow its own talent and is good for behaviours and culture.

Resolved:

The Orbis Joint Committee noted the ongoing work of the People and Change workstream in Orbis.

Actions/ further information to be provided:

The Committee suggested that progress on the People and Change workstream could be presented as a Service Spotlight report at the April 2017 Committee meeting.

To provide an update to the Joint Committee on development of plans for detailed design and integration of services in the IT function.

Declarations of interests:

None

Witnesses:

None

Key points raised during the discussion:

None

Actions/ further information to be provided:

None

RESOLVED:

The Orbis Joint Committee noted the content of the update for the IT department.

To provide an update to the Joint Committee on development of plans for detailed design and integration of services in the IT function.

Declarations of interests:

None

Witnesses:

Kevin Foster, Chief Operating Officer, East Sussex County Council

John Stebbings, Chief Property Officer, Surrey County Council

Matt Scott, Chief Information Officer, East Sussex County Council and Surrey County Council.

Key points raised during the discussion:

1.  The Chief Information Officer introduced the report. The Committee asked a number of questions which were responded to by the officers present before moving to recommendations.

Actions/ further information to be provided:

Actions arising from this item are set out in the Part 2 minutes.

RESOLVED:

The Committee approved the recommendations set out in the confidential report.