Minutes:
The Committee considered the undernoted report:
“1.0 Purpose
1.1 The purpose of this report is to agree the Council’s Organisational Development Strategy as a strategic framework for a far-reaching internal change programme and to agree the immediate priority areas for organisation restructuring.
2.0 Relevant Background Information
2.1 Members agreed in April 2014 that a far-reaching internal change programme of organisational development and design (to include a new organisation structure) should now be developed.
2.2 An organisational development (OD) strategy has therefore been developed as a strategic framework for this work. This strategy is the first step in developing a planned and systematic approach to enabling internal change and improvement.
2.3 The OD strategy will be one of the key strategic plans for the new council and its associated programme of work will form a significant part of the Shadow Policy and Resources Committee’s work.
3.0 Key Issues
Priorities for Organisation Development
The priorities for organisational development have been identified as a result of analysis of members’ ambitions and priorities, the external and internal environment, consultation through various internal workshops and development sessions and analysis of evidence gathered from our employee survey and IiP process. In addition, there are important ‘must do’ issues, in particular significant consideration was given to local government reform.
The following four key areas for organisation development work have been identified:
· organisation - this includes reviewing our governance and organisation structures including service delivery models
· leadership – (both political and managerial leadership). This includes agreeing values and behaviours for BCC leaders; developing current and future leaders; managing and attracting talent; continuing work to ensure our workforce is representative of the community we serve; leading and effectively managing transformation and change; continuing to improve communication and engagement; and managing performance.
· management - this involves supporting managers to effectively focus their role on relevant service and project delivery; vfm and our customers; managing performance; understanding and managing political/member relations; delivering efficiencies; managing change; and communication with staff. We also need to support changes to manager’s role particularly in relation to neighbourhood working, clienting, revised service delivery models and working with partners.
· skills – this involves developing leadership skills within our organisation around community leadership/planning; programme and project management; managing people and performance. We will also need to undertake a skills gap in the context of organisation redesign (e.g commissioning, commercial, workforce planning, economic and option appraisal skills) and source expertise required for city leadership (e.g. energy , digital expertise)
Work has clearly started on some of the priorities set out in the strategy, such as LGR (transition, transformation, governance); service delivery models (Leisure and Waterfront Hall ); Member and officer capacity building; efficiency; and employee engagement
This strategic framework for organisation development must however be aligned to other strategies, prioritised, resourced and communicated as a result of agreeing the strategic direction for the new council with members. This work will form an important aspect of the work of the Shadow Strategic Policy and Resources and Transformation Committees over the shadow period. Notwithstanding this some immediate priorities in relation to organisation design have been identified as follows:
Priorities for organisation design
1. Agree senior management team arrangements pending a significant internal change programme which will include organisation restructuring in order to effectively support the new Chief Executive to deliver members' priorities and deliver the unprecedented change programme facing the Council. (See separate report)
2. Undertake a review of Democratic Services in order to identify and secure the immediate and longer term resources required to effectively manage the shadow period. Given the increase in the number of elected members, committee meetings and the Council’s new powers and functions a review is required to ensure that members’ needs are effectively met at a committee, individual elected member, party group leader and party group levels. It is also important to ensure that effective management, staffing and other relevant policies, processes and procedures are in place to ensure this section is not only operating in an effective and efficient manner but that it is a transparent exemplar of good practice
3. Agree Planning and Regeneration organisation positioning and resource requirements. Both planning and urban regeneration require the Council to plan for and demonstrate short, medium and long-term capabilities. The Council must develop strategic, tactical and operational capability. Members clearly need to be assured about the quality of the skills it is inheriting and how this resource can be used to best effect. The Council needs to be ready to exercise its new functions as well as thinking about how planning and regeneration should be organised in Belfast for the future while enabling appropriate integrated delivery at area level.
4. Deal with the impact of all transferring powers and functions – service convergence and all transferring functions clearly have the potential to impact on existing services, organisation structures and staff. This will need to be effectively managed in accordance with Belfast City Council agreed HR policies and procedures.
5. Develop client side of Leisure Trust. A decision has been made by the Council that Leisure services would move to a trust model and this means ensuring we are structured appropriately to undertake the client role effectively.
6. Develop a co-located core team reporting to the new Chief Executive and CMT to develop, integrate and support the approaches to corporate planning, city planning, community planning, performance and organisational development/improvement..
7. Agree Parks and Leisure departmental arrangements given the transfer of Leisure Services to trust status. This will include the effective management of the voluntary redundancy exercise and ensuring service delivery following the release of staff until transfer of operations in January 2015 and the consideration of how the remaining functions in Parks and Leisure (i.e. those not transferring to a trust ) are placed within the new organisation structure. (see also separate report on Senior Management team)
8. Agree service delivery model for Waterfront Hall. The Waterfront Hall is undergoing significant expansion to make it fit for purpose as an international conferencing venue. The Council will need to agree its vision for the new facility and consider the strategic, legal, financial and HR issues. This will entail developing new skills, structure and working arrangements to ensure effective delivery.
9. Deal with HR matters arising from staff transfer from Lisburn and Castlereagh and central government. Transferring staff will come across on different terms and conditions, pay structures, job descriptions, policies, working practices and contractual arrangements. The Council will need to identify the issues and make appropriate plans to address this, taking into account the legal implications e.g.TUPE , single status, equal pay .
10. Identify and secure resource, as appropriate for the shadow period resulting in the difference in service between BCC and Lisburn/Castlereagh. Analysis has shown that there is a difference between the standard, nature and scope of services provided within BCC and those areas transferring from Castlereagh and Lisburn (e.g. noise pollution and community outreach work in Parks, Cleansing and Recycling) . Consideration will therefore have to be given to the appropriate way in which this deficit can be addressed.
11. Confirm resource requirements and staffing arrangements for the Audit Governance and Risk section given the need to meet the statutory requirements and for adequate assurance on local government reform programme.
12. Confirm arrangements for the Legal function of the Council to ensure we have the capacity to effectively deal with the transfer of assets, the transfer of planning and regeneration powers (and associated risks and liabilities) and to undertake such work as is required to support the new governance and administrative arrangements established by the Local Government Act (NI) 2014.
Next Steps
These organisation design priorities need to be managed and delivered within the context of members’ overall strategic direction and the associated organisation wide review and restructuring for which a number of stages and tools will be employed. These will include:
· Agreeing with members, the strategic direction of the new council within which the full review will be undertaken and options and choices developed.
· Agreeing values and behaviours in relation to the kind of council we want to be based on Members’ agreed overall strategic direction - e.g. one that is member led; adaptable and flexible to change; focuses on customer need, values and empowers its employees; is innovative; works in partnership internally and externally.
· Agreeing the principles and process for the review (e.g. inclusive, fair and equitable, and that it will examine spans of control and decision making across the organisation as well as functions and themes)
· Agreeing the Trade Union consultation and negotiation arrangements for the programme of work
· Agreeing an open and transparent approach to staff communication and engagement
· Benchmarking best practice and establishing evidence base/baseline
· Aligning this strategy and internal change programme to other priorities such as the Council’s Investment Programme (job opportunities and work placements) and Efficiency Programme (reduction in staff costs)
· Ensuring delivery through a planned, prioritised and resourced approach to implementation
It is proposed to develop for Members’ approval action plans around these specific organisation design and restructuring priorities along with an approach to the overall internal change programme.
4 Resource Implications
4.1 The senior responsible officer for the Council’s OD Strategy and associated internal change programme is the Assistant Chief Executive (HR & OD) and the work will fall mainly to those functions in the Chief Executive’s Department i.e. HR & OD, Strategic Policy and Planning, Corporate Communications and Democratic Services but external expertise will have to be procured to ensure best practice and provide independent assurance. Costs are contained in the Local Government Reform budget. It is also proposed to align internal resources from the Council’s Finance and Resources department Efficiency Unit as required to assist with this programme of work.
5 Equality Implications
There are no equality implication associated with this proposal.
6 Recommendations
Members are asked to:
1. Agree the Organisational Development Strategy as a strategic framework for a far reaching internal change programme from which resourced action plans will be developed
2. Agree the immediate priority areas of action for organisation review and design
3. Note that reports will be brought to future committee meetings on the proposed overall internal change programme with members being regularly updated on the progress of the agreed organisation review and design priorities contained in this report.
4. Agree to the procurement, (in line with Council agreed procurement practices) of external expertise to ensure best practice and to provide independent assurance.”
The Committee adopted the recommendations.
Supporting documents: