Agenda item

Shared Digital Service implementation

[Report of the interim Director for Customers, Transformation and Resources. To be introduced by the Cabinet Member for Corporate Resources and Insourcing.]

 

Update on progress on the implementation of the Shared Digital Service, learning from first twelve months' operation and recommendations on the detailed future implementation and governance for the service. The report will set out implications of those recommendations for the council’s sovereign Digital and ICT services.

Minutes:

Deputation from Gerard McGrath and Kevin Prior.

 

The deputation outlined experienced issues with the management of Shared digital service and included problems with the communication about the direction of the service with staff, causing a state of confusion. The deputation continued to outline their concerns in relation to the proposals contained in the report, which were as follows:

 

  • There was a short allocated time line on TUPE –and employees were concerned that they would end up working for Camden rather than working for Haringey, which was the borough they chose to work for.

 

  • Welcomed the reduced scope of the shared service but this lacked clarity and needed further work, particularly in terms of posts.

 

 

  • If the Unions and Management cannot reach a decision on a delegated decision then Unison proposed this decision should be and signed off by Cabinet instead.

 

  • Option of alternatives to TUPE not being considered properly, further options need to be explored - staff faced with TUPE want to leave. One of the proposals is to TUPE 50 members from each borough and if this happened at Haringey there would be no staff left in Haringey as it is the smallest IT service of the three boroughs. This also reflected the proportionality issues that Unison had concerns about.

 

 

  • There was a worrying lack of control for Haringey if this model was adopted as Camden will dictate the term and conditions and Haringey staff terms and conditions are compromised.

 

  • The proposed model for the shared service may not be the best value option as the costs were divided equally and Haringey are smaller IT unit than other partners.

 

  • The detail of the proposals needs to be considered. If the proposal to TUPE members goes ahead then the members need to understand the deal and whom they will work for. For the record, Unison members wanted to work for Haringey and not Camden.

 

In response to Cabinet Member questions the deputation responded as follows:

 

  • There had been a form of consultation when the idea for the TUPE plan was launched. Staff have had discussions and attended huddles in response to proposal. There has been a mix of trade union members and non -union members. However the key message was that staff preferred working for Haringey to Camden. There was also concern about the lack of clarity on who stays and who goes.

 

  • In relation to alternatives to TUPE, these were secondments in line with section 113 of the Local Government Act. Members were given an assurance to discuss this option in detail but as the report came to Cabinet it was prudent to formally register representations.

 

The Cabinet Member for Corporate Resources and Insourcing thanked the deputation and the entire workforce and provided assurance of his continued involvement in this process. These issues had been raised with management and the Cabinet Member wanted to assure the workforce that both management and Cabinet notes and respects the points being raised and want to make sure the workforce was  fully on board with proposals.

 

There was a target date for completion of the implementation but this was not regarded as a fixed hard deadline as it was important to work towards this in full agreement with members. Firstly, there would be official discussion between management and trade unions and proceeding this, the Cabinet Member would meet separately with the unions.

 

With regards to the power of delegation, the Cabinet Member was in close contact with this decision. This decision would be taken in consultation with the Cabinet Member and discussed with Cabinet colleagues.

 

The Leader thanked the deputation and Cabinet proceeded to consider item 12.

 

The Cabinet Member for Corporate Resources and Insourcing introduced the report, which followed the consideration of governance options for the shared service with Camden and Islington by Cabinet on 16 January 2018. The report recommended that the previous “lean” Joint Committee model was no longer proceeded with and that a revised governance model be approved (Shared Digital ‘Lite’) that dispenses with the need for a Joint Committee and focuses on specific shared functions where there is strategic alignment.

 

The Cabinet Member noted that the reason this matter was before the Cabinet was due to it representing a change of approach in that:

 

  • A smaller proportion of the IT service being run jointly by the 3 by the boroughs; and
  • The revised governance model would retain more of the IT support staff within the Council, meaning that staff would remain directly employed and under the control of Haringey Council.

 

The Cabinet Member emphasised that there was an existing commitment towards a partly shared service and that this was expected to result in expected savings of £2.4 million from procurement due to jointly purchasing equipment.

 

In response to a question regarding the involvement of staff in designing the details of the model, it was noted that staff were involved in two ways. Firstly, there are regular meeting with management and trade unions. Secondly, the Cabinet Member has separate meetings with trade unions to discuss all aspects of the programme.

 

That having considered the contents of this report, in particular the results of the consultation set out in Section 6.22 and feedback from Trade Unions, staff and other stakeholders, and having given due regard to the equalities implications as summarised in section 8.4 the Cabinet :

 

 

RESOLVED

 

 

1.    To note the achievements of the shared service (including c. £2.4m of savings in the delivery of commodity Digital and ICT services, to be shared equally by the three Councils) and also the challenges in achieving strategic alignment with Camden and Islington.

 

2.    To agree that the recommendations set out in the report to Cabinet on 16 January 2018 in respect of a ‘lean’ Joint committee model are no longer proceeded with and that a revised governance model for Shared Digital be adopted as set out in paragraph 6.5, specifically that the Joint Committee cease to exist as from the date of this decision and to agree that Camden host the shared Digital and ICT functions set out in paragraph 6.5.2 (‘the Shared Functions’) to be transferred from Haringey and Islington Councils (as detailed in paragraph 8.3). Haringey and Islington will have lead officers in place to oversee their sovereign Digital and ICT services and the Shared Functions delivered by Camden (including their performance against service level agreements (‘SLAs’)).

 

3.    To approve Camden as the host Council in respect of the Shared Functions and note the staffing impact of the proposals as set out in paragraph 6.8 of this report.

 

4.    To agree the dissolution of the Shared Digital Joint Committee as from the date of this decision and to note that Cabinet will make any decisions previously delegated to the Joint Committee which are required in the period from now until the entering in the service agreement and TUPE transfer (which is planned for 1 October 2018) in respect of the current Shared Digital Service subject to those matters previously delegated to and discharged by the Chief Digital Information Officer (CDIO) under those terms of reference being delegated directly to the CDIO or, any successor role designated by Haringey as set out in paragraph 6.21.4.

 

5.    To note that the transfer of service and staff is currently planned for 1 October 2018, and to agree that as a result Camden will be responsible for employing staff engaged to deliver the Shared Functions.

 

6.    To note that the Cabinet of Camden are considering a recommendation to be the primary host authority for Shared Functions in the Shared Service, and to accept the delegation from Haringey and Islington. The Executive of Islington are also considering a recommendation to delegate to Camden (as the host authority in the shared service) the delivery of the Shared Functions in like terms and that the recommendations set out in this report, if agreed, will only be implemented if the Camden Cabinet and Islington Executive agree the equivalent and related recommendations that they are considering.

 

7.    To delegate authority to the Director of Customers, Transformation and Resources to take all necessary steps to put arrangements for the new governance model into effect as set out in this report, including but not limited to finalising the detailed specifications and resource implications of the Shared Functions, the terms of a revised inter-authority agreement for the operation of the 3 way Shared Digital service and a commencement date for the new model including the date for the TUPE transfer.

 

Reasons for decision

 

In March 2018, following extensive dialogue and consultation feedback from Unions, and input from staff and other stakeholders, the transfer planned for 1 April 2018 was paused to allow the Councils to reflect on the approach and implementation of the shared service.

 

Taking account of the consultation and dialogue feedback and considering the achievements and challenges of the shared service, we are clear that we share aspirations around Digital transformation, and the key role that Digital will play in transforming the services that we deliver to our citizens and the way that we work.

 

Pushing for deeper alignment and integration independently of local priorities and constraints runs the risk of becoming an end in itself and may not position us to most effectively realise our local outcomes and aspirations in Haringey.

 

The recommendation maintains efficient and effective operational services that will improve services to citizens and staff while reducing unit costs. The proposal will allow the Council to develop and progress our ambitions with a local Haringey-focused Chief Information Officer. (Camden and Islington will similarly be able to focus on their local priorities.)

 

Alternative options considered

 

The review of options considered the scale and extent of sharing from wholly sovereign to wholly shared services.

 

Noting the Councils’ shared ambitions and the significant achievements of the shared service, ‘stopping’ the shared service was not a preferred option.

 

Considering the challenges of strategic alignment, and of balancing integration and local priorities, constraints and pace, it is not considered an option to progress the previously agreed model and a Shared Digital ‘Lite’ option is being proposed.

 

This option is mindful that integration should not be an end in itself and allows the Councils to maintain and strengthen working together. It will consolidate on-target savings of c. £2.4m per year across the three Councils; to be shared equally, i.e. £800,000 each.

 

This will retain a number of Shared Functions, and mechanisms to encourage and build on opportunities to work together, aligned with both shared strategic priorities and new ways of working to support Medium Term Financial Savings.

 

Further savings may be achieved over time with this option, for example if more application consolidation is achieved.

 

Supporting documents: