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Efficiency Technical Notes: March 2007

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FPSR - LG-C5 Modernising Government Fund/Efficient Government Fund efficiency savings

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

2. Programme/Activity:

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. Efficiency

3.1 Current target; £m

2005-06

2006-07

2007-08

Cash

4.0

10.0

20.0

Time

-

10.0

20.0

3.2 Efficiencies delivered; £m

2005-06

2006-07

2007-08

Cash

4.273

-

-

Time

-

-

-

4. Accountable Officer for delivery

Dr Andrew Goudie

5. Project Manager

Jonathan Moore

6. EGDD Portfolio Manager

Hilary Pearce

7. Description of efficiency and actions to be taken

7.1 What is the efficiency improvement? How will the efficiencies be made?

By delivering re-designed services, delivering first-time service, reducing unnecessary bureaucracy and reducing referrals to other staff. The programme supports the common and consistent use of a number of key business change / business transformation methods across Councils and it encourages a common approach to a number of key service delivery and data sharing technologies. Most importantly the programme contributes towards a set of measurable service improvements that customers will recognise and contributes to the drive for efficiency and cost savings that can be reinvested in the further improvement of frontline services.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

To establish 'buy in' for the programme at the highest level (Chief Executive) across local authorities to ensure we support culture change to encourage a more corporate approach to service delivery.

8. Associated costs

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

There are development costs associated with the national infrastructure where proof of concept was required. All associate cost have been offset and therefore the efficiency savings identified are the net costs.

9. Measurement

9.1 What are the inputs that will be measured?

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 result 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 videoconferencing), 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.

9.2 What are the outputs that will be measured?

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 has 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 releasing savings as cash 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 (Initial target - 90%).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.

9.3 What is the baseline for inputs and outputs?

The baseline will be 2004-05

10. Quality cross-check

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

The Benefits realisation framework was independently quality assured. Customer First is adopting national standards for all sub programme themes. These include OSIAF, e-Gif, ITSO etc in the delivery of outcomes. The reporting framework will include qualitative case studies from local authorities.

11. Monitoring

11.1 What are the arrangements for monitoring the delivery of efficiencies?

The monitoring database is designed to use real time data so that ad-hoc interrogations and regular reporting can be undertaken.

12. Reporting

12.1 What are the arrangements for reporting the delivery of efficiencies?

Reports can be accessed at any point in time but a regular reporting calendar will be put in place. The Customer First Programme Management Board will meet on a quarterly basis. Each Local Authority will have responsibility for keeping their data up to date

13. Dependencies

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

Dependent upon local authorities being able to deliver a managed programme of work over 2005 - 2008. 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.

14. Use of efficiencies

14.1 How are the efficiencies released from improvement activity being used to improve front-line services?

Administration savings achieved through improved operational systems integration within the back office, will allow resources to be redirected to front office functions.

The programme has two clear - but inter-dependent - objectives. Firstly, to build a secure national infrastructure that can: support the principle of secure data sharing across the public sector; provide authenticated access to online services (via a citizen's account and a citizen's entitlement card); help automate the award of services, benefits and entitlements to citizens. Secondly, to ensure that local authorities are able to enhance the citizen's account: to deliver more efficient and more effective core services; to automatically award local benefits and entitlements (including the use of the National Entitlement Card Scheme); to encourage the growth and take up in self-service transactions.

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Page updated: Wednesday, March 21, 2007