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Efficient Government Fund EGF)1)1)16 Integration of HR and Payroll Services

DescriptionTo improve the management of partner organisations by implementing efficient management practices enabled by modern information systems.
ISBN (Web Only)
Official Print Publication DateDecember 2005
Website Publication DateDecember 08, 2005

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EFFICIENT GOVERNMENT FUND

Dumfries and Galloway Council (lead partner)

Stage 1 application - expression of interest

Part 1: Summary Table

Bid number (for EG use)

Lead bidder

Dumfries&Galloway Council ( DGC), David Archibald - 01387 260060, david.archibald@dumgal.gov.uk

Brief description of the aims of the project

To improve the management of the partner organisations by implementing efficient management practices enabled by modern information systems

Clear description of what the EGF money would be used to buy

New Payroll and Personnel data processing software together with associated consultancy for re-engineering processess, training and hardware.

Partners to the project likely to commit resources

DGC, Dumfries&GallowayPolice*, Dumfries&Galloway Fire Brigade*, All other Scottish Councils and many other public bodies including NHS D&G and 2 local authorities in Cumbria were asked last week if they would wish to explore participation. To date we have had a number of positive responses and there may be scope for some wider involvement. However at this stage there are further discussions to take place. (See list below) * Payroll only

Names of other organisations with whom the project has been discussed (to assist the introductions process)

Clackmannan, Perth&Kinross and Fife Councils may be partners with Edinburgh wishing to be kept in touch though not wanting to proceed at this stage. We are also in touch with Midlothian who may also be interested.

Evidence that suggested approach has been deployed successfully elsewhere

Several councils including at least one Welsh authority have, by harnessing the information available through modern systems, made significant savings in HR. Others including D&G have, by similar means and small scale pilots, reported the potential for saving if modern payroll systems were available. Clearly the recent government announcements on the subject of shared/partnered services see similar advantages and economies as a realistic prospect.

Are there any restrictions to potential for enlargement of the project ( i.e. technology, number of partners etc)

No restrictions beyond practical and financial issues. For example the fact is that some councils have recently invested in such technology and would be reluctant to move to a new system at this stage. It is part of this proposal that any very recently introduced system by another council/public body willing to partner be examined for its suitability to work in D&G and in a wider partnership. However the national systems used by Health and for the Scottish Enterprise network seem at this point to be too specific, and have been introduced without partnership across sectors in mind, to be considered as the best way forward for now.

Benefits projected from the project

Better management information allows better targeting of scarce resources and in turn savings. More direct input to information systems allows data processing with fewer intermediate clerical steps and so frees employees for other tasks. Better output can be achieved from fewer inputs. This allows reform of aspects of payroll & HR more time will be more productive internal processes will be more efficient. The suggestion though largely based on best use if the management information accessible only through up to date systems also envisages common payroll and HR systems and shared services developing across partners. Clearly if enough partners sign up joint consortia procurement emerges as a potential. Savings in recruitment advertising in DGC alone could be £150,000 pa. To this can be added other efficiencies of at least the same again. Accordingly if other partners can be found and similar gains achieved the proposal more than meets the Executives guidelines..

Estimated financial projections for D&G only

Total

2005/6

2006/7

2007/8

2008/9

Overall project cost

£441k

£196k

£105k

£55k

£55k

Estimated projected benefits

£760k

-

£100k

£330k

£330k

Is a pilot required - see guidance notes

Not needed

Additionally: why is EG funding required

The existing systems may be continued for some time but the efficiencies can only be maximised if an integrated approach is achieved. This is unlikely through normal budget processes and timescales, even less so if the improvements enabled by this project are to be brought to fruition across several partners. To maximise the benefits and savings revised systems based on comprehensive modern technology need funding as any individual council/service approach would otherwise tend to be limited in scope and extent by financial strictures. Specific funding to achieve significant savings is needed.

Does this project complementary in anyway to other EG work ? ?

As it strikes at the root of sound management, by allowing rapid decision taking based on more comprehensive and accurate information, applying to all services to the public, and as it will free employment from the back room to be used in the front line, this proposal complements all aspects of efficient government work.

Is "stage 2 development funding" requested?

If yes, please provide a covering note as outlined in the "covering letter".

Page updated: Thursday, July 7, 2005