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The re-emphasis on place-shaping at the heart of democratically-accountable local authorities triggers fundamental change at all levels. It gives councils a primary role in wielding the resources of the public sector to shape their districts for the wellbeing of citizens. It is far removed from the role of simply ensuring services are delivered well according to KPI measurements provided by central government. It requires a different approach, different competencies and a different organisation to be successful. The place-shaping authority engages continually and as locally as possible with citizens – the primary stakeholders. It engages deeply in real – risk and reward sharing – partnerships with public, social and private sectors to deliver integrated strategies. It takes a long view, co-ordinates resources, and is focused on delivering the outcomes that support its place-shaping strategy. It commissions providers – whether private or public or, indeed, in-house – to play their part in an integrated ‘supply chain'. The organisation needed to deliver this role is quite different from that needed to deliver a set of prescribed services. Most local authority organisations are built hierarchically, with discrete services grouped as divisions and departments or directorates. Traditionally, each service-team had its own customer ‘front office' and administrative ‘back office'. Over the last 10 years customer access and administration has improved somewhat by installing a corporate front office on top of the silos, and by creating a more function-oriented consolidation in the administrative back office. The new place-shaping organisation is fundamentally different. At its heart is governance and strategy, driven by continuous, in-depth and local consultation. This is the top-tier of the lateral organisation, and is responsible for outcome realisation. It is supported by two organisations – a strong commissioning capability which encompasses outcome-based partnerships and strategic sourcing, as well as more traditional contracting approaches, and a citizen/customer services organisation that is focused on accessibility, customer knowledge management, customer engagement and transaction management. The primary role of customer services is to act as the face of public service, and a guide, broker and facilitator for the citizen. The second tier is concerned with delivery. It will contain expertise in the practical aspects of each service, but will not be organised along service lines. It has to understand the strategic outcomes and how each service must contribute, and also take into account simple output metrics around quality, quantity, elapsed times and cost. Two key points are worth emphasising here. Strategic outcomes are almost always achieved only by co-ordinated initiatives by many services, normally across organisational boundaries, and, the actual delivery of service are operations which can use employed staff, contract staff, or contracted organisations. The third tier is the home of delivery organisations that have their base in, for example, the local authority, the primary care trust, the police, a different local authority, community organisations, housing associations, private sector service companies, and so on. The issue here is co-ordination of activity, designed in partnership to deliver strategic outcomes, managed in partnership to deliver quality and efficiency, and underpinned by supportive contracts. Services need to be integrated at a core process level, and operations must be flexible, both over time as strategic needs change, and across space, to deliver locally tailored services. This is where shared services come in. The original thrust of the shared services argument is that scale, capability and focus can deliver better service for less cost. And it can work well in areas of administration – finance, payroll, HR, procurement asset management, and operational ICT. The challenge is to square the circle between locally-tailored and responsive services, and the efficiencies achieved by scale economy. This is true whether the shared service is delivered by a council or group of councils, whether in partnership with private sector providers, or whether delivered entirely by a third party. n Kevin Lavery is chief executive of Serco Solutions

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WHITEHALL

Are you in shape for place-shaping?

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