To advise Cabinet of the progress of the two business transformation activities, namely Shared Services and Herefordshire Connects and proposed next steps.

The Assistant Chief Executive, Legal and Democratic presented the report and drew Cabinet’s attention to substantial progress of both the Shared Services and Herefordshire Connects Programmes.  Cabinet was advised that a multi-disciplinary, multi skilled transition team was being established, drawn from the three partners, to progress key activities.  In delivering the Shared Services project potential savings of between £3.4million to £5.4million had been identified.  It was acknowledged that there would be an impact on staffing, however it was hoped that this would be minimised and that the Council would remain an employer of choice.  Cabinet was advised that a communications management plan had been developed to provide regular communications to staff and stakeholders. 

During discussion Cabinet acknowledged that similar shared services arrangements were being developed across the public sector and that a planned approach to deliver savings would help protect public services and functions to the county’s citizens.  Cabinet stated that it was imperative that high quality services continued to be delivered during a period of change.  In response to a question raised, the Director of Resources confirmed that all Herefordshire Connects savings were projected to be made over the next three financial years.

RESOLVED:

THAT Cabinet

(a)               Note progress made on Shared Services; and

(b)       Note that a further key decision report will be brought forward by the end of the financial year setting out options and timelines for the transition to shared services.

Consultation with all members of JMT, together with Heads of Services and Service Managers (for those services the scope of the review) has taken place. An interim progress report was submitted at Cabinet on 30 July, 2009.

As the review encompasses Herefordshire Council, NHS Herefordshire and Herefordshire Hospitals NHS Trust the recommendations of the review will be submitted through the governance processes for all three organisations.