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SCOTTISH EXECUTIVE EFFICIENCY TECHNICAL NOTES: MARCH 2005: page 26

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SCOTTISH EXECUTIVE EFFICIENCY TECHNICAL NOTES: MARCH 2005

1. Portfolio/Number/Name:FPSR-LG/C5 Modernising Government and Efficient Government Fund efficiency savings

2. Programme/Activity: Please include a short description

The efficiency gains are based upon an agreed programme of work with local authorities called 'Customer First'. It will provide financial support for a delivery programme of (i) more convenient and responsive public services, (ii) encouraging the take up of online access to key services and, (iii) ensures that at least 75 per cent of service requests can be dealt with at 'first contact'. Forty-six core council services have been targeted for improvement.

3. Planned Savings

2005-06

2006-07

2007-08

Cash (m)

4

20

40

Time Releasing (m)

0

0

0

4. Accountable Officer for delivery

Andrew Goudie

5. Project Manager

Colin McKay

6. EGDG account manager

Carolyn Girvan

7. Quality Impact

Describe any impact on the quality of service delivery. Be specific and explain if the expectation is positive, negative or neutral.

The expectation is that there will be a positive impact on the quality of . service delivery. The 'Customer First' strategy will provide a common framework for all 32 Local Authorities within which everyone can work to improve access to, and the delivery of, the core services which impact on everyday lives of citizens i.e. put the customer first in the design and delivery of public services.

8. Dependencies

Explain if your savings are dependant on legislation or other structural changes being achieved.

Dependent upon local authorities being able to deliver a managed programme of work over 2004 - 2007. All local authorities will work towards an agreed single model of electronic service delivery and Customer First will provide guidance and support towards this. Customer First will provide guidance within which all authorities can develop a contact centre approach, which provides customers with a single point of access for services most frequently requested. It will also support a programme to train multi-skilled customer services staff to respond to a wider range of service requests.

9. Description of efficiency and actions to be taken

How will the saving be made? Be specific about number/size of contracts, staff, posts dates etc.

By delivering re-designed services, delivering first-time service, reducing unnecessary bureaucracy and reducing referrals to other staff

What action is critically needed to secure delivery of this saving? Be specific, and name the key action managers if they are outwith your immediate management chain (e.g. in an NDPB.)

To establish 'buy in' for the programme at the highest level (Chief Executive) across local authorities

10. Impact on Staffing to achieve the efficiency gain

If there are to be any changes in staff numbers (at activity level) to achieve the efficiency gain, please indicate how many full time equivalents and how far you expect savings to be achieved by natural wastage (show additions as + and reductions as -).

2005- 06

2006- 07

2007- 08

Gross

Net

Explanation

Unable to determine as dependent on Local Authorities

11. Benefits

In general, the benefits of the Scottish Executive Efficiency Plan are the enhanced outputs from the resources Ministers have been able to allocate in SR04. But if there is a direct connection between this efficiency saving and the enhancement of a particular service please describe it here.

N/A

12. Gross/Net Cash Savings

12.1 Please set out the gross recurring saving and any offsetting recurring expenditure.

Gross recurring saving 19m in 2005-06, 33m in 2006-07, 46m in 2007-08. Gross recurring expenditure 15m in 2005-06, 13m in 2006-07, 6m in 2007-08.

12.2 Against what budget does this expenditure and saving fall?

Modernising Government Fund

12.3 Has this saving been built into your budget?

No

12.4 If so, what is the maximum allowable expenditure against the budget data, in each year, for that saving to be delivered?

N/A

12.5 If not, how do you propose to invest the additional cash back into public services?

Local Authorities will have discretion to invest any savings into their own frontline services

12.6 What plans do you have to exceed the required saving? Explain by how much in each year.

No plans to exceed the required saving

13. Time - release savings

13.1 Please explain any time-releasing savings indicated at question 3

N/A

13.2 Please describe the method you plan to use to calculate the cash equivalent of those time release savings.

N/A

14. Measurement and Monitoring

14.1 How are you proposing to measure the expected efficiency benefits (e.g. in terms of costs, level of output or quality of service)?

Under the Customer First framework, we will implement a performance management methodology for measuring success, benefits realised and outcomes achieved. This will ensure that targets and measures are implemented on a consistent basis, can clearly demonstrate benefits achieved, and their impact on public service improvements.

The critical success factor to measure the performance of Customer First will be through the successful implementation of electronic transactions through multiple channels. These are defined in the following.

Self-service (Online): relates to contact by electronic means such as a website sanctioned by the local authority, or to other remote access facilities such as kiosks in public places, council offices/premises. This also includes automated telephone transactions, digital TV or SMS text messaging that results in transactions being completed.

Service by Telephone: relates to a service where someone at the end of a telephone line receives requests for information or service calls, and processes them directly by making use of electronic transactions without having to pass the request to a third party. Such facilities are known as a Contact Centre or Call Centre with the key characteristic being the call is not passed onto another person for resolution as a result of having immediate electronic access to the right system.

Service through Face-to-Face: relates to a service where someone in an office, or shop or other service point receives requests for information, or service calls from a member of the public visiting in person (or by video-conferencing), and can satisfy the request immediately as a result of having direct electronic access to the right system without having to pass the request onto a third party.

Through these channels, services can be measured in terms of transaction volumes, transaction times, transaction costs, transactions delivered at first contact and customer satisfaction ratings. By tracking times and costs we are able to measure time savings and quantify this into efficiency (cash) savings.

14.2 What monitoring & reporting procedures will be put in place to measure the efficiency savings (How often will progress towards the target be monitored? Who will have lead responsibility for reporting progress and what procedures will be in place?)

The monitoring database is designed to use real time data so that ad-hoc interrogations and regular reporting can be undertaken. Reports can be accessed at any point in time but a regular reporting calendar will be put in place. The Customer First Steering Board will meet on a quarterly basis. Each Local Authority will have responsibility for keeping their data up to date.

14.3 Monitoring Data: Sources, Validation and risks

What data will be used to measure progress?

Core Service - Target Year for First Time Service Delivery

Identify the year in which the service activity will be delivered at first time of contact. The appropriate year should be identified against each service activity.

Improvement in Volume of Transactions and Take-up

To measure the increases in the volume of take-up of the core services, a numeric value will be identified to signify the total number of transactions under each channel - Telephone, Call/Contact Centre - Face-to-Face, One-Stop-Shop and Online. These numeric values will then be translated into percentages.

(Transactions relates to all service enquiries and requests received by the local authority).

First Time Delivery of Services (Target year on year improvement with 75% of services delivered at first point of contact)

There will then be a further requirement to identify a numeric value for each core service where the number of service enquiries and requests received have been successfully completed at first point of contact. Again the information will be identified under the appropriate e-channel. There will be a year on year improvement target that expects 75% of service enquiries and requests successfully completed at first point of contact.

Efficiency Savings (Target - Reduction in Transaction Time)

Against each core service activity for the appropriate channel it will be necessary to identify the time saving efficiencies gained through improved business process and be able to quantify these.

It will be necessary to show the efficiency time savings as numeric values appropriate to the service activity and the channel the service is being transacted. The appropriate calculation metric used should be relevant to the service activity.

Efficiency Savings (Target - Cash Related Savings in Administration Costs)

Improved business process will not only reduce the transaction time for the core service activities, there will also be a reduction in the administration costs in delivering the service, in particular where there is movement towards transactions from telephone, and face-to-face channels to self mediation under the online channel.

There will be a requirement to identify a baseline transaction cost for each service activity under each channel. This will allow the tracking of efficiency savings in terms of the reduction of the administration costs of the service activity. The savings made in administration costs will be presented as efficiency cash savings under each channel.

Customer Satisfaction (Target - 95% satisfaction levels to be achieved through year on year improvement)

The ultimate measure of success is the level of customer satisfaction with public services and a target for customer satisfaction will be established as part of the Customer First strategy.

To evaluate customer satisfaction there will be a requirement to measure satisfaction at the service activity level. Where possible, the measures for customer satisfaction should be collated at the channel of delivery. This will not only provide more detailed quantitative analysis but can also demonstrate the relationship between satisfaction and service activity take-up.

Growth in Customer Service Staff to Front Office Delivery

As administration savings are being generated through improved business process and systems integration, there will be a requirement to identify efficiencies achieved from resources employed in back office operations which can then be released and transferred to front office customer service delivery.

The cumulative numbers of resources transferred or redeployed, from back office to front office will be identified under each year.

What measures will be in place to validate the accuracy of the data?

Who will take responsibility for this?

Validation will be undertaken by each Local Authority in compliance with their usual procedures

Are there any risks or issues relating to how you plan to use the data? (eg. accuracy, difficulty in collecting?)

No

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