1. business and industrial

2013-18
Business Plan
UK Shared Business Services Ltd
Published June 2013
Contents
IIntroduction 3
II
Executive Summary
6
1
Purpose of the plan
13
2
Context and Governance
14
3
Financial Information
21
4
Performance Metrics
23
5
Service Lines
26
6
Enabling and Supporting Strategies
30
7
Social and Environmental Policy
47
8Conclusion 48
Introduction: Geared for Growth in the Service of
our Customers
The challenges facing UK public services call for ambitious plans to increase efficiency,
improve service quality, and reduce expenditure. This business plan for our re-named Company
gives effect to that ambition for a wide range of business services for the Research Councils,
Department for Business, Innovation and Skills (BIS) and its other partner organisations, and
for an increasing range of additional clients.
Across 2012/13 the Company grew in turnover from £44.7M. to £55.2M. as we took on new
clients and developed the business. Within that growth we:
•
Reduced the Research Councils’ ‘back office’ charges from £32M. to £31.3M.
•
Saved £33M. for the Research Councils in verified procurement benefits,
being greater than the entire cost of the services we provided to them
•
Increased the number of SLA targets to over 90% met
•
Grew our clients from 7 to 22 (this will likely grow by a further 10 in 2013/14)
•
Grew our customer user base from 11,000 to 18,000 and will likely expand
to 23,000+ in 2013/14
•
Were independently judged to be the best performing shared services
centre in government
•
Became a multi-site centre
2012/13 was also the year in which our service was fully stabilised and service quality was
enhanced, most notably through 20 successfully implemented Business Improvement Projects.
We took on Phase 1 of the BIS Shared Services Programme, and also BIS Procurement
through an agreement to provide cross government capacity and capability, and we signed a
strategic MOU with the Government Procurement Service to deliver on two major procurement
categories (construction and research) across Government. As the year ended we reconstructed
the Company’s governance and ownership to better reflect our business intentions and
mission, and to ensure that our governance is flexible and scalable, and encourages employee
participation and involvement. We also strengthened our executive capacity, including
creating Directorate teams for our newest business services of Transition and Property Asset
Management.
In short, across all major dimensions of the business we are now geared for growth. But what
does that mean for our owners and customers, and for the Company and its employees?
The Year Ahead: The business fundamentals for 2013/14 are as follows:
•
Overall we expect to grow revenues from service charges to £38.0M. (2012/13: £35.1M.). We expect our core employee base to grow from 740 as at April 2012 to an average of 870 in 2013/14 – reflecting the increasing scale and scope of the Company’s activities during both 2012/13 and 2013/14, but also reflecting greater resource efficiency. In line with Government Policy, any increase in employee numbers will be based on a clear
and compelling business case.
•
In procurement we will deliver £80M. (2012/13: £32M.) of validated savings, including £36M. to the Research Councils (again more than the entire cost of the services
provided to them by the Company)
•
In property asset management we expect to establish the function fully and firmly within the Company, and make significant inroads to a target of £100M. in year on year savings
3
•
In ICT we will extend the Direct ICT Services (managed services such as desktop
and hosting) to new clients, generating savings to clients greater than £5M. pa
•
In HR and finance we will focus on continual process improvement including emphasis on innovation, standardisation, simplification and automation. In 2013/14 this will reduce the cost per customer of standard transactional services by some 16% compared to 2012/13, in-line with Cabinet Office targets
•
In grants we will ensure the unique end to end service remains as a core offering
to our customers and continue to administer research grant awards in excess of
£2.4bn, in accordance with our customers’ needs and in light of a current review.
This Busines Plan also sets the course for UK SBS to be a leading player in grants
delivery across government
•
In transitioning we will build on our experience of moving the first BIS Partner
Organisations to our services, and develop a flexible and professional delivery
mechanism which can ultimately be offered as a new business service to others.
By the end of 2013/14 this delivery mechanism will have supported a 28% increase
in the number of UK SBS users
•
We expect to appoint one or more strategic partners from the private sector to
strengthen our transition capability and enable us to address new markets and wider challenges for our services
•
We will strengthen our focus on our people and ensure our organisational development drives our ambition to become a ‘great place to work’
•
We will maximise the value add we provide to our clients – procurement and estates alone are set to deliver £100M. value to clients during 2013/14
2013/14 will be a year of transformation to a fully-fledged business services Company that
partners with our clients, offering broad services with high impact to help deliver Government
strategy on economy, efficiency and reform.
Whilst we will expand our service lines and client base, we will equally strengthen the value
and service proposition for our existing clients. We will improve efficiency, economy and quality
(these are not mutually exclusive) in the services we already provide, and also provide new
services further up the value chain where that serves their missions and business objectives.
Business model: Although an independent legal entity, the Company is a mutual service
provider, owned and controlled by its clients, and also includes specific provision for employee
participation in its ownership. We charge our clients the full cost to serve, including in-year
investment needs, and no more. Our business model is focussed on developing a wide
range of high quality and efficient business services to Central Government and its partners,
especially BIS, and to other public entities. All clients will participate in the Company’s client
governance arrangements, and if they are themselves separate legal entities they will also
where appropriate share in the ownership and direction of the Company. This gives effect to the
‘Teckal’ opportunities within the European procurement regime for public bodies which is at the
heart of our business model.
We aim to grow both turnover and the range of business services we provide in a managed and
measured way. A cardinal principle of all our business growth is that it improves the efficiency,
quality, effectiveness, and economy of the services a client takes, or an optional combination
thereof. This starts with a rigorous and specific business case, translates into demanding
SLA targets, and is then transparently monitored against published private and public
sector benchmarks. We operate in the public interest but are held to providing commercially
competitive services by the knowledge that our clients are free to take their services from the
open market.
4
The Period 2014-2018: Across the remainder of the business plan period we will continue
to improve services, reduce unit costs, and grow both revenues and service range. The full
business plan which follows sets out our current projections in these respects. However there
are two important themes which may influence these projections.
First, our recent experience has been of strong and developing demand for our current service
by potential new clients, and for the Company to take on or develop new lines of business. The
pace has been very fast, reflecting the scale and the urgency of the challenge faced by UK
public services. For example, the new Property Asset Management Directorate of the Company
moved from initial thoughts to Board approval of the Business Case and initial implementation
in less than five months. We expect this pace to continue. However we are aware of the risks
associated with such pace and are consciously taking a careful approach to implementation.
Secondly, the Company’s services and their development need to be seen in the wider context
of Government Shared Services policy. We are keen partners with the Cabinet Office across
a number of key areas of activity. Part of the Company’s service provision (primarily certain
of the transactional services we offer) relate to the Cabinet Office initiative known as ‘ISSC2’
and subject to a positive business case we expect to commit the relevant part of our business
activity (some 15% volume of ‘in scope’ transactional services) to that enterprise.
The business plan: Our overall objective is to optimise our impact as a valued partner to UK
public service in facing daunting service and financial challenges. This final version of the UK
SBS business plan 2013/18 has been prepared jointly by the Board and the Senior Executive,
and it reflects our shared ambition for the Company of gearing it for growth in the service of
our customers. It has been approved by our Shareholders. It includes amendments from earlier
drafts to relect all the comments they made; which we will give full effect to in implementing the
plan.
Dr Clive Grace OBE
Chair
Jonathan Preece
Chief Executive
5
Executive Summary
This business plan marks a new direction for RCUK Shared Services Centre Limited as
it transforms into a provider of shared business services and re-names as UK Shared
Business Services Ltd (UK SBS)
Up until 2012, the Company has successfully focused on building business processes, systems
and services to support its Research Council stakeholders. The Company currently provides
a wide range of business services, in addition to transaction processing, and has the capacity
and intent to develop these further, and to a wider cross-Government client base. In addition,
over the past 12 months the Company has implemented a number of changes to its corporate
governance arrangements that provide a suitable and strong platform to allow growth.
The Company is taking this opportunity to signal its uniqueness and new direction reflected in
the change in name to UK Shared Business Services Ltd.
UK SBS is uniquely positioned as an entity to complement Government strategy
for shared services and this business plan aligns with the Government efficiency
and reform agenda
The Cabinet Office efficiency and reform agenda is focused on delivering high volume
transaction processing across multiple Government departments through a single shared
service entity (ISSC2) under the Next Generation Shared Services programme (NGSS)
published in December 2012. The Cabinet Office has published an invitation to tender in the
OJEU and the Company’s transaction volumes have been included within the OJEU notice. The
volumes ‘in scope’ represent approximately 15% of the Company’s activities and the outcome
will be subject to
a full business case.
The Company recognises that it can differentiate itself from other Government-wide shared
service providers of transaction based services because of the wider selection of business
services that it currently provides and that has the potential to provide.
There is further opportunity to develop the emergence of the business services engine to
provide integrated cross-Government services beyond and complementary to the transactional
nature of the entity (ISSC2) identified in the NGSS programme.
Given the developing nature of the Cabinet Office Next Generation Shared Services Strategy
(ISSC2) at the time of publication of the UK SBS business plan, ongoing detailed consideration
will be given to relationships with the company and its existing clients at the appropriate juncture.
During the lifetime of the plan the Company will become recognised as leading the Government
agenda in procurement, grants and property asset management.
Over the life of this business plan UK SBS will substantially grow its procurement,
property asset management, ICT, HR and Finance, and Grants offerings to add value
to client businesses
UK SBS provides a range of services broader than straight forward transactional processing;
in this way it differs from the NGSS programme. UK SBS will seek to grow its services in both
existing core transactional services along with growing and developing business services, in
a measured and carefully managed way. In transactional services the Company will focus on
delivering services at a lower cost and more efficiently to a greater number of customers.
6
Over the life of this plan:
•
The number of users primarily as a result of BIS Phase 1 and 2 business cases will
grow from 23,000 to 35,000 by 2015/16. By 2018 the number of users is expected to grow further to 50,000
•
The cost of a payslip will reduce from the current level of £3.00 to £1.90 by 2015/16
and £1.70 by 2017/18
•
The cost of an accounts payable invoice will reduce from the current level of £3.87 to
£2.70 by 2015/16 and £2.50 by 2017/18
•
By 2015/16 all but one of the 16 performance metrics will be achieving upper quartile
performance. By 2018 all performance metrics will be in the upper quartile
Core business services that will deliver growth
The specific service lines currently leading change and influencing strategy have ambitions in
the following areas:
Procurement
•
UK SBS will become a central vehicle for cross Government procurement, increasing
its capability from 68-150 over the business plan period and delivering an average 8%
savings per annum. The estimated rate of return ration increases from £13 per £1 cost
to £58 over the course of the plan period. The function will make Newport a second
procurement centre
•
By 2015/16 the procurement service will be delivering the service for 34 client
organisations, this is compared to 20 organisations and 68 heads in 2013/14
•
By 2015 90% of the people working in procurement will be qualified as members of
the Chartered Institute of Purchasing and Supply. Currently this is 44%
Property asset management
•
Rationalising the BIS property portfolio to deliver major cost reductions to the BIS
administrative budget of £100M. by the end of the spending review
•
By 2015/16 the number of offices under management will be rationalised from 192 to 70
•
Space per person in the offices under management will drop from 13.8 m2 to 10 m2
by 2015/16
•
The service will seek to grow across BIS and the wider public sector
ICT
•
The Central Government strategy on consolidation and sharing of ICT services
offers an opportunity to expand the currently provided service already shared
between current clients
•
The business plan builds the ICT offering initially within the BIS estate, but in conjunction
with Cabinet Office, with a view to providing a wider, cross-Government offering
•
By 2015/16 the Company will be providing Direct IT Services to 20,000 users and
30,000 users by 2018. This is compared to 2,300 users in 2012/13
•
By providing Direct IT Services to BIS UK SBS will generate savings in excess of £5M.
per annum
7
HR and finance
•
UK SBS is well positioned to lead and develop innovative propositions for unique
business services currently within the capability of the Company but not offered across
Government for example, specialist immigration and VAT tax advisory service lines
•
Other service lines such as training, direct sourcing, headhunting, and financial technical
updates will be developed
Grants
•
Utilising the Company’s unique grants offering to lead the Government strategic agenda
for grants growth
In addition to the services outlined above, the Company will look to develop services in transition,
programme and portfolio management to provide growth from new and existing clients.
UK SBS’s growth will be underpinned by a fundamental increase in operational
effectiveness of its service offerings.
The Company will focus on continual process improvement including emphasis on innovation,
standardisation, simplification and automation of processes through the implementation of
a formalised continuous improvement programme and a technology investment programme
that will bring its costs to serve broadly into line with Cabinet Office targets and upper quartile
performance benchmarks. This will be underpinned by supporting and enabling strategies.
As a cost recovery company UK SBS’s revenue will grow from £55M to £79M over the
life of the plan. In addition, the Company will deliver value back to the taxpayer of in
excess of £1.5BN through client savings.
The ambitious growth plan of the Company is reflected through the increase in income
from £55M to £79M over the life of the plan. The growth in budgeted revenues will be created
through the increase in number of services offered alongside attracting new clients to use
UK SBS services. This is not growth for growth’s sake. It will either lead to reduced unit costs,
or to the provision of additional services on a value for money basis.
UK SBS will deliver value back to the taxpayer in excess of £1.5BN during this plan, through the
contribution to procurement, property asset management, and IT savings.
What is the Shared Business Service (SBS), how does it differ from the Shared Service
Centre (SSC), and why should the Company make the change?
•
UK SBS will offer a wide portfolio of corporate business services, including transaction processing, which will enable clients to focus on the management and development of their own core business
•
UK SBS will work with its clients to enable their core business strategies, and in
doing this UK SBS will add value to clients and reduce unit costs. The increased
revenue for the Company will reflect greater value for our clients
•
UK SBS will invest in skills and capabilities which are needed to fulfil client business
opportunities and its growth aspirations
8
•
RCUK SSC Limited provided a high volume, transaction focused service supporting the Research Councils, which drove efficiencies from standardisation, together
with a BIS-wide procurement service offering driving value from savings. The service
offering and client base of the Company now and in the future will be much broader than this
•
There has been a shift in Government policy which has changed the emphasis of
transaction service delivery to a very few large scale shared service centres.
The consequence of this policy will limit the opportunity for growth in the transaction
services market place
•
Therefore, to ensure continued growth and revenue generation, new and existing
lines of business across the corporate business spectrum, initially within BIS and
subsequently across Government, are being pursued by UK SBS, and these are
identified in this business plan
•
The Company is well positioned to take advantage of these other opportunities,
within Government and beyond BIS, which will offer growth complementing the
Company’s current offering
What is the opportunity?
Across Government, the landscape and appetite for consolidation of professional services
is changing, particularly in sectors such as Central Government, Education and Healthcare,
and smaller public entities, all of who are living with budget constraints and facing the same
efficiency and value-for-money challenges. This is driving their need to seek efficiencies using
different and competitive solutions.
The Company’s service lines support and will further enhance the delivery of key Government
strategies which enable economic growth and deliver efficiencies supporting deficit reduction.
UK SBS is well-placed as the leading provider of business services within the public sector and
offers an attractive proposition to Central Government.
Key factors that contribute to the Company’s unique position include:
•
Being a company operating in a commercial manner whilst being part of and serving
exclusively the public sector
•
Providing a service complementary to Cabinet Office policy
•
Breadth and depth of professional business services offered
•
Quality and value focussed professional service lines
•
Proven track record of diverse benefits delivery
•
Provision of commercial and customer focussed solutions
•
Effective integration of new customers into the business
•
Deep understanding of the UK public sector including specialist knowledge of the public sector scientific market place
9
The breadth of the Company’s service is the key differentiator and is highly attractive to
organisations seeking new and innovative ways to offer improved quality of service alongside
reduced cost. The Company is ideally placed to capture this and additional appetite for new
business solutions and this business plan includes plans to grow professional service lines
in these markets.
As identified above, UK SBS has an ambitious growth plan with the number of users set to
grow to 35,000 by 2015/16. To support the delivery of this ambitious growth plan, UK SBS has
created a Transition Directorate. The future vision of the Transition Directorate is that of a centre
of excellence for portfolio, programme and project management that partners new clients on
their journey to new or existing service offerings. A critical success factor of this Directorate will
be the ability to deliver the Growth Strategy in a way that is aligned to new clients’ needs whilst
upholding the integrity of the service to the existing client base.
The Company has developed both enabling and supporting strategies to match the
ambition of the plan
The company has developed a set of enabling and supporting strategies to match the ambition
of the plan. There is an important distinction between the two sets of strategies:
•
Enabling strategies cut across all aspects of the Company and provide the necessary capability to deliver the plan
•
The supporting strategies have each been developed to achieve one of the goals of the organisation
The enabling strategies are as follows:
•
Technology Strategy – the success of the Company now and in the future will be
ensuring the best use is made of existing technology assets and innovatively viewing the emerging technology landscape to add value to clients and UK SBS
•
Communications Strategy – communications will be clear and easy to understand;
designed with the intended user in mind and with an understanding of their needs,
interests and likely reaction. Stakeholders will be informed of progress and activities through an innovative use of channel mix
•
Transition Strategy – the delivery of portfolio, programme and project management, transformation and technical solutions will ensure that the Company transitions and integrates new services and clients effectively and with repeatable and scalable
approaches
•
10
Governance Strategy – strong and appropriate governance and ownership
arrangements will provide the Company with an engine for growth and support
the Company ambition to be an effective, commercially run organisation rooted
in the public sector.
The supporting strategies are as follows:
•
Continuous Improvement and Innovation – delivering cost effective and value
for money services - continuous improvement will be embedded across the Company
specifically concentrating on process improvement and automation
•
Customers – continually improving customer satisfaction with services they receive - the customer need will feature across all activities conducted across the Company, this includes
- Gaining a deep understanding of customer needs
- Building a culture where there is a focus on the customer’s needs and expectations
- Providing timely and accurate information
- Delivering high quality services
•
Growth – growing for sustainability and efficiency - the Growth Strategy has been developed to take forward a partnership model that allows client businesses to
flourish but also allows UK SBS to mature and grow at the same time. The approach
to growth will be strictly in line with the Company’s ownership model and maintenance of the Teckal exemption
•
Organisational Development – making UK SBS a great place to work - the
Organisational Development Strategy ensures that the appropriate structures,
capability and operating environment are fit for the new strategic purpose as the Company focus turns to establishing a business service model. It is also the intention
to reward good performance and as such the Company will develop rewards for the
leaders and other people employed by the Company
Further consideration will be given to the enabling and supporting strategies to ensure explicit potential within each business area is recognised specifically transactional
services, professional business support services and IT infrastructure systems.
This will fit within the overall business model and ambition set out within this plan.
Under the supporting and enabling strategies we will ensure all current and proposed
activity is included prior to implementation with specific regard to observations made
by shareholders.
11
Risks and Opportunities
Key business risks and opportunities will be considered throughout the implementation of the
Plan.
UK SBS – Leading shared business services in the public sector
This business plan has been created for the five-year period from 2013/14 to 2017/18. While
the majority of the key initiatives identified in this plan relate to the three years to 2015/16,
the effort put into these initiatives will build capability and capacity for the future and guide the
Company’s needs after this point. In a rapidly changing operating environment, the Company
will need to demonstrate flexibility while achieving the core aims of the strategy set out in this
plan. By 2018, the Company will have reached maturity and be demonstrating the
following characteristics:
•
Cost efficiency levels and service benefits which are competitive with the open markets
•
Be established as a business partner for a wide ranging client base
•
Be a centre of excellence for collaborative Government procurement and leading
category management across a wide range of products and services
•
Provide a range of professional services to clients that add value to their organisations
•
Be the leading provider of grants provision in the UK public sector
•
Be recognised as an employer of choice
•
Maintain position and status of being in the Top 30 Companies to work for in the
not-for-profit sector
This business plan clearly outlines and articulates the vision and goals of the Company and
how these will be achieved. The programme of initiatives that has been identified will place UK
SBS at the forefront of the public sector shared services agenda and provides a stable platform
for growth and efficiency.
12
1
Purpose of the plan
This plan has been created to fulfil the following requirements:
•
Present the business and financial plans for the 2013 to 2018 period to the shareholders for approval and agreement, and to other stakeholders for their comment
•
Inform employees, stakeholders (including owners and clients) and the public of the Company’s objectives and plans
•
Set out clear, specific business objectives across the Company so that successful
delivery of the vision and goals can be measured and demonstrated over the life of
the plan
•
Present the first active steps to support the delivery of this ambitious agenda for growth through changes in the operating model and skill base of the Company
•
Responds to changes in the operating environment
This plan draws from an extensive range of more detailed service delivery, financial, functional,
resource, transition and change and technical plans.
13
2
This business plan marks a new direction for
RCUK Shared Services Centre Limited as it transforms into a provider of shared business services and re-names as UK Shared Business Services Limited
Up until 2012, the Company has successfully focused on building business processes,
systems and services to support its Research Council stakeholders. The Company currently
provides a wide range of business services, in addition to transaction processing, and has
the capacity and intent to develop these further, and to a wider cross-Government client base.
In additional, over the past 12 months the Company has implemented a number of changes
to its corporate governance arrangements that provide a suitable and strong platform to allow
growth. The Company is unique as it is a commercially run company, working in and for the UK
public sector.
The Company is taking this opportunity to signal its uniqueness and new direction reflected in
the change in name to UK Shared Business Services Ltd.
2.1 Throughout its life, UK SBS has had to innovate
UK SBS has constantly evolved and developed since it was established in 2007. It has
a continuous history of innovation, even with its structure, as it was one of the first limited
companies in the public sector to marry a commercial model with public service values.
Research Councils
UK decide to set up
a shared service
centre
RCUK Shared
Services Centre Ltd
incorporated
Launch first live system based
service – HR for EPSRC
Aug 2007
2006
May 2011
June 2009
The Company starts to
deliver strategic
procurement services to
Research Councils
BIS announce that the
Company is the preferred
option for shared services
within BIS
Payroll team wins “Payroll
World Team of the Year
2011’
May 2008
November 2011
Change of name to
become UK SBS Ltd
April 2013
Grants Service
goes live for
remaining
Research
Councils and the
Company
becomes fully
operational
April 2011
September 2011
Jonathan Preece
arrives as CEO
replacing Peter
Telford
Source: PA Consulting Group for UK SBS
14
November 2012
August 2012
The Company Starts
delivering
procurement services
to BIS
The Company becomes
multi-site with offices in
Newport, Cardiff and
Billingham
Core BIS and several
Partner Organisations
start to receive services
2.2 The Company has built a stable and robust platform
for growth
The Company has made significant progress in the past 12 months in achieving the targets set
in the previous business plan, achieving stabilisation for the services provided, and delivering
the first of many benefits linked to the wide-scale BIS shared services and procurement
modernisation programmes. As a result, the Company has a solid foundation for achieving the
vision and goals developed in this plan.
2.3 The ownership structure gives the Company operational
independence and confers collective shareholder control
The ownership structure and function of the Company is underpinned by a Shareholder
Agreement signed by all current owners, which amongst other things ensures the Company’s
degree of independence from Government and emphasises collective control including
ensuring owners agreement to selection of the Board and annual business plans and budgets.
The establishment of an employee engagement vehicle allows employee participation in the
Company ownership.
The current ownership model of the Company is as follows:
2.4 The governance structures that have been put in place
will allow UK SBS to achieve the ambition of the plan
Having the right structures in place will become increasingly important as the Company enters
what is, in essence, a period of transformation. Over recent months, a specific programme has
been implemented to ensure that an appropriate scalable ownership and governance model is
in place to secure the delivery of real benefits and become the engine for growth.
To this end, an ownership and governance model for the Company has been developed which
is fit for the future and can accommodate the ambitions and objectives that were developed in
bringing together this business plan. The model developed therefore:
15
•
Takes account of the independent status conferred by being a limited company which is wholly owned and controlled by, and operating within, the public sector
•
Protects the Company’s Teckal status and allows the provision of services to other public bodies within the Teckal exemption. This will enable the Company to provide services that are consistent with the requirements of European procurement law
•
Allows growth in accordance with the ambitions of the business plan
•
Reflects the complex operating environment
•
Provides clarity of accountabilities and responsibilities supported by memoranda of understanding
•
Enables the views of the employees to be canvassed, consolidated and communicated through an employee engagement vehicle
•
Covers all legal fundamentals
•
Is underpinned by the establishment of a VAT cost sharing group to enable the
VAT liability for customers to be minimised and ensure a greater recovery of VAT
incurred by UK SBS linking to lower charges for customers.
2.5 The governance and ownership structures reflect
the goals and mutual benefit of UK SBS ‘membership’
Mutual benefit is a key theme for how the UK SBS has and will be structured to enable member
organisations, as well as employees, to participate and share in the success of the Company.
The Company’s Board of Directors manages the Company on behalf of the shareholders with
the Executive Leadership Team responsible for the day-to-day operations and the delivery
of services. The Board is made up of 10 directors appointed by all of the shareholders, and
is led by the Independent Chairman Dr. Clive Grace with eight experienced Non-Executive
Directors from the private, as well as the public sector. Jonathan Preece, as Chief Executive
Officer of UK SBS is the only Executive Director. As a result of governance and ownership
changes introduced across 2012/13 and 2013/14, the Company now has a modern and scalable
ownership structure aligned to our fundamental business model.
In making appointments to the Board, due regard is given to diversity among the Board in terms
of age, gender, ethnicity and diversity. Vacancies are filled through an open recruitment process
against a role description and based on sound experience and skills required by the UK Shared
Business Services Ltd Board. The shareholders appoint non executive directors to the Board in
accordance with the Articles and Shareholders Agreement.
The Shareholders approve both the annual and medium-term (3-5years) business plan
and hold the Board to account for ensuring delivery of the pans objectives through business
plan reviews.
The UK SBS Board has legal responsibility for the strategic direction and decision making of
the Company and provides direction, support and appropriate scrutiny of the actions of the
Executive Leadership Team.
16
The Board has four sub-committees which provide more detailed oversight of the particular
areas, these are shown below:
The executive management structure is summarised below:
2.6
UK SBS is uniquely positioned as an entity to
complement Government strategy for shared services
and this business plan aligns with the Government
efficiency and reform agenda
The Cabinet Office efficiency and reform agenda is focused on delivering high volume
transaction processing across multiple Government departments through a single shared
service entity under the NGSS programme published in December 2012. The Cabinet Office
has published an invitation to tender in the OJEU and the Company’s transaction volumes
have been included within the OJEU notice. However the volumes ‘in scope’ only represent
approximately 15% of the Company’s activities and the outcome will be subject to a full
business case.
The Company recognises that it can differentiate itself from other Government-wide shared
service providers of transaction-based services, whilst remaining complementary to the
Cabinet Office strategy, because of the wider selection of business services that it currently
provides and that has the potential to provide.
There is further opportunity to develop the emergence of the business services engine to
provide cross-Government services beyond and complementary to the transactional nature of
the entity identified in the NGSS programme.
17
During the lifetime of the plan, the Company will become recognised for leading the
Government agenda in procurement, grants and property asset management.
UK SBS will be different from any other organisation operating in the public sector due to the
breadth and depth of services along with a focus on innovation and value. UK SBS will work
with clients to enable them to focus their resources on their core activities while at the same
time providing assistance to reduce costs and add value to their activities.
2.7 The vision, mission, goals and values reflect the
ambitious plans for the Company
In response to the challenges facing the Company ambitious vision, mission and goals have
been developed for the five-year period of the business plan.
The vision and mission of the Company are a common theme and they flow through to the
goals, beliefs and values and ultimately to the objectives of the individuals employed by the
Company. The goals, beliefs and values of the Company are illustrated on the following page.
18
The Vision is to become the leading provider of shared business services in the UK
public sector, continuously reducing cost and improving quality of business services for
Government and the public sector
The Mission is to provide quality business services which allows customers the freedom
to focus resources on core activities; innovating and transforming their own organisations
Deliver cost effectove and value for money services
Continuously improve customer satisfaction with the services they receive
Grow for sustainability and efficiency
Make UK SBS a great place to work
We owe each other trust, repsect and honesty
We owe our customers the highest quality of service
We owe our organisation full commitment and dedication
We owe ourselves personal and progessional growth
Perform as one team
Always respect
Consider customers first
Take the initiative
Vision
Goals
Beliefs
Values
2.8 The development of the people employed by the Company is central to the current and future success
The people employed by UK SBS are central to creating success and will continue to be so
as the Company expands into new value add services. The work undertaken on developing a
set of values and ensuring that the Company is a great place to work will become increasingly
important to the future success of the organisation.
It is therefore worth revisiting the values developed to guide the Company in all aspects of
work. These values are the foundation of success, they have informed the development of the
plan and are central to delivery of the Company’s vision to be the leading provider of business
services in the public sector:
The Company values (PACT) are detailed below:
Have
RESPECT
Value
CUSTOMERS
Be one
TEAM
Share
IDEAS
P A C T
19
Perform as one team
Everyone has the responsibility to understand all parts of the business. This is done to ensure
that the impact of actions is understood.
To achieve this:
•
Everyone will actively seek to understand what each person does and value different areas of expertise
•
Share information and knowledge that helps provide excellent service efficiently
•
Celebrate success
Always respect
•
UK SBS embraces the fact that it is a community made up of a diverse mix of
backgrounds and experience
•
It is therefore essential that respect is universal and beyond acting with integrity
and honesty, this means that the contribution that each individual makes is valued
Consider customers first
•
Customers are at the core of the business
•
The Company exists to help clients focus resources on their core activities
•
This is demonstrated through thinking beyond tasks and seeking to understand what customers actually want and need.
•
This way opportunities for adding value to the services provided are recognised
Take the initiative
•
Everyone can make a difference by taking the initiative when an opportunity for improvement is identified and all are encouraged to do the same. Everyone is
empowered to challenge and propose solutions to improve services
In addition to embedding these values throughout the Company, further activities have been
undertaken to support organisational development. These include:
•
Introducing new and innovative lifestyle and wellbeing initiatives and benefits
•
Giving people a greater voice in the way the Company is run in the matters that
affect them
•
Introducing improved work / life balance for people across the Company including regular free fruit and health advisors
•
Launching the Company values and embedding these into the way performance is
managed and the services provided
•
Improving electronic communications through the launch of a new intranet service as well
as creativity engaging people in a multi-site environment
This year the Company has achieved a significant improvement in the Best Companies Survey
in the not-for-profit category and this shall be used as a springboard to become a company that
is recognised within the top 30 employers in the not-for-profit sector by 2015. It is recognised
however that there is more work to be done over the term of this plan, therefore an integrated
people and Organisational Development Strategy has been developed that will support the
operational plans and ambitions.
20
3
A robust financial budget has been prepared to underpin the new direction of the Company for the next five years
A robust financial budget has been prepared to underpin the new direction of the Company for
the next five years. The Company will see an increase in income of £17M. (32%) to 2015/16 and
a further increase of £9M. to 2017/18.
The increase in income (and corresponding costs) is due to the following factors:
•
Growth as a result of BIS phases 1, and 2 business cases in core transactional services with a view for implementing Phase 3 from April 2015
•
Growth of the procurement service across BIS and becoming a leader of
major categories in conjunction with the Government Procurement Service across
Central Government
•
The addition of the property asset management service from April 2013
•
Growth in ICT Direct Services across BIS and Central Government
•
Growth in other HR and finance services such as specialist immigration and VAT tax
advisory service lines
The forecast Income and Expenditure Account is set out below along with a breakdown of costs
by directorate and income sources.
This financial budget has been produced to with a degree of certainty up to 2014/15. After this
point the financial budget and assumptions are a little more uncertain, therefore the shading of
blue and grey in the tables below reflects this.
Forecast Income and Expenditure account:
Note: At the time of developing the five year business plan the 2012/13 revenue was estimated
to be at £52.8M and this is the figure used to profile the financial projections. The 2012/13
revenue in the audited financial statements is £55m, as referred to in the Executive Summary.
21
Breakdown of cost by Directorate and sources of income:
22
4
How performance will be measured across the
life of the plan
UK SBS is committed to continually improving the operational performance of all services over
the life of this plan. The following metrics show the key indicators that the Company will measure
itself against across the different service areas and the path of improvement they will follow.
Company metrics:
Primary
Goal
Benchmark (*)
or
2012/13
baseline
2013/14
2014/15
2015/16
2016/17
2017/18
Turnover (£MM)
Growth
52
53
58
70
74
79
Number of users
Growth
18,000
23,000
30,000
35,000
40,000
50,000
30%
60%
85%
88%
92%
95%
Not listed
Shortlist
One star
Top 30
Top 30
Top 30
Benchmark (*)
or
2012/13
baseline
2013/14
2014/15
2015/16
2016/17
2017/18
Measure
Customer
Satisfaction
Top Company
Survey
Customer
People
Procurement metrics:
Measure
Primary
Goal
Procurement
Savings for
clients (£M.)
(based on 8%
average)
Cost
32
80
200
320
480
640
Benefits/spend
ratio (Best in
class)
Cost
6.6%
8%
8%
8%
8%
8%
23
Property asset management metrics:
HR and finance service metrics:
24
ICT metrics:
Measure
Primary
Goal
Benchmark (*)
or
2012/13
baseline
IT Direct Services
Offering (Users)
Growth
2,300
8,500
15,000
20,000
25,000
30,000
Customer
99.5%
99.5%
99.8%
99.9%
99.9%
99.9%
33%
33%
33%
18%
11%
10%
2013/14
2014/15
2015/16
2016/17
2017/18
System
availability
ISS overheads as
a percentage of
ISS turnover
Cost
2013/14
2014/15
2015/16
2016/17
2017/18
Transition metrics:
Measure
Primary
Goal
Benchmark (*)
or
2012/13
baseline
Percentage of
projects/custome
rs transitioned
as specified in
the business
case
Growth
95%*
90%
90%
95%
95%
95%
Customer
100%*
90%
90%
100%
100%
100%
Percentage of
customers
achieving SLAs
within 6 months
of transition
In summary, these measures reflect not only the individual goals and aspirations of the
Company’s business units but also how these will work together to deliver the vision for the UK
SBS. They will provide business focus, transparency and accountability in driving the business
forward in the next five years.
25
5
UK SBS has a broad set of service lines that will
deliver growth
UK SBS delivers a broad set of service lines that will deliver growth. These services and the
initiatives to deliver growth are detailed below.
5.1Procurement
Procurement provides a wide range of professional procurement services to the Research
Councils and BIS partner organisations. Industry derived benchmarks indicate that the service
is already performing at or above “best in class” in at least three key measures (percentage
savings, compliant spend, spend under management) and compares well against almost all
other measures.
UK SBS is well positioned to “lead the charge” in the Government’s initiative to reform
procurement in the public sector and recent memorandum of understanding with the
Government Procurement Service allows the Company to lead the procurement of major
categories across Central Government.
Initiatives for the procurement service include:
•
Grow the category coverage across the public sector in specified areas that deliver
better cross Government contracts
•
Create the following expanded services:
- Expanded category management across all areas of research (scientific and technical,
economic, market, social)
- Construction category management with a view to develop opportunities in further
categories at a later point in the plan
- Develop capability in New Spend Audit and Duplicate and Fraudulent Payment Recovery
•
Implement a full suite of e-procurement tools
By 2015/16 the procurement service will:
•
Be serving 34 client organisations (from 20 in 2013/14)
•
Grown to 160 heads compared to 68 in 2013/14
•
Be managing £4BN of spend and £8BN by 2018
•
Generate savings of £320M. per annum to clients, growing to £640M. by 2018
•
Have 90% of the people working in procurement qualified as members of the Chartered
Institute of Purchasing and Supply. Currently this is 44%
•
Make Newport a second procurement centre
In addition the function over the life of the plan will increase the estimated rate of ration return
from £13 per £1 cost to £58.
5.2 Property asset management
26
The property asset management service manages the office portfolio for seven BIS partner
organisations and provides the following functions:
•
Strategic management of the office estate including strategic planning and
development work
•
Management of workplace environment including health and safety, environmental
performance and being a single point of contact for customers
•
Contract management of estate rationalisation and leasehold disposals activities
•
Financial planning for estates portfolio
•
Asset management – including accounting and financial management of the estate
portfolio, proactive review of dilapidations, break point opportunities, onerous leases
Initiatives for the property asset management service include:
•
Rationalise the BIS portfolio estate
•
Expand the property asset management offering across further BIS partner
organisations and other Government departments
•
Review cost base after office rationalisation to reduce costs to clients
•
Develop a service management culture that compares favourably with private sector
providers after rationalisation is complete
By 2015/16 the property asset management service will have:
•
Rationalised the number of offices from 192 in 2013/14 to 70 by 2015/16
•
Saved costs of £100M. by the end of the spending review period
•
Reduced space per person in the offices under management from the current level of
13.8m2 to 10m2 by 2015/16
5.3ICT
The ICT service provides Direct and Indirect IT Services to customers of UK SBS. The Direct
27
Services provided include managed desktop, application hosting, managed data centres, and
telephony. Indirect Services provided include the support of systems and applications that
deliver the transactional services of the Company, and the support of professional services
such as procurement.
Opportunities exist to grow the Direct Services initially within the BIS estate, but in conjunction
with Cabinet Office, with a view to providing a wider, cross-Government offering.
Initiatives for the ICT service include:
•
Grow Direct Services into BIS, BIS partner organisations and the wider UK public sector
•
Develop the UK SBS Technology Strategy
•
Develop and implement a Data Centre strategy
By 2015/16 the ICT service will:
•
Be providing Direct Services to 20,000 users and 30,000 users by 2018 and generating
client savings in savings in excess of £5M. per annum
•
Have grown headcount to 204 heads compared to 144 heads in 2013/14
•
Reduce the cost of fixed overheads as a percentage of turnover from 33% in 2013/14 to
15% and 11% by 2017/18
•
Achieve upper quartile performance in 70% of identified benchmarks compared to
50% in 2013/14
5.4 HR and Finance
The HR and Finance services are responsible for providing customers with quality and timely
transactional and specialist advisory services. The full catalogue of services is identified below:
HR Service initiatives include:
28
•
Develop new products and services in the following areas:
- Commercial immigration advisory product
- Innovative training services
- Direct sourcing and headhunting for recruitment
•
Significantly improve recruitment services to demonstrate best in class, value adding delivery and support the increase of reputation and position in the recruitment market
of current customers
•
Automate processes associated with contractual document production and storage to
increase efficiencies and decrease costs
Finance service initiatives include:
•
Develop new products and services in the following areas:
- Financial technical updates
- Taxation Advisory product
- Enterprise Performance Management
•
Automate processes associated with invoice processing and finance efficiency
Over the life of the plan the HR and Finance service will provide services to an increased client
base as new organisations (such as the BIS Phase 2 organisations) receive services from UK
SBS
By 2015/16 the HR and finance service will:
•
Provide the service to a greater number of users from 23,000 to 35,000, rising to
50,000 users by 2018
•
Achieve upper quartile performance in all but one of the 16 performance metrics.
By 2018 all performance metrics will be in the upper quartile
•
Reduce the cost of a payslip from the current level of £3.00 to £1.90 by 2015/16
and £1.70 by 2017/18
•
Reduce the cost of an accounts payable invoice from the current level of £3.87 to
£2.70 by 2015/16 and £2.50 by 2017/18
5.5Grants
The current Grants service provides the following four functions for the seven Research Councils:
•
Supports Research Councils in delivering grants, fellowships and studentships
•
Provides expert grants processing, including a service desk to respond to queries
•
Enables Research Councils to focus on activities directly related to research
•
Delivers one service using one system for all Research Councils
Grants service initiatives include:
29
•
Develop potential growth in grants across Government through new clients and
expanded product lines
•
Investigate the potential to align activities across grants, contracted research and
grants procurement to deliver greater value for clients in accordance with customer
needs and in light of the current review.
5.6Transition
Transition is a new and exciting area for UK SBS’s growth agenda. Over the life of this plan
building on experience learnt to date a transition, portfolio, programme and project management service will be developed and established this in line with Cabinet Office Major Projects
Authority guidance. The objective will be to enable a capability as a centre of excellence, and
develop potential business service for the future.
6
The Company has developed enabling and supporting
strategies to match the ambition of the plan
To deliver the ambitious vision and goals of the Company will require a co-ordinated and integrated plan across the whole business, from front line service delivery to supporting corporate
services. Each strategy sets out the practical steps to be undertaken in achieving the goals
of the Company and cascades the ownership of these goals and targets through to business
areas, teams and individuals within the Company.
Four enabling strategies which complement and support all of the goals of the Company and
four supporting strategies, each linked to a goal, have been developed.
A)
Enabling strategies:
• Technology Strategy
• Communications Strategy
• Transition Strategy
• Governance Strategy
B)
Supporting strategies:
• Continuous Improvement Strategy – delivering cost effective and value for
money services
• Customer Strategy – continuously improving customer satisfaction with services
they receive
• Growth Strategy – growing for sustainability and efficiency
• Organisational Development Strategy – making UK SBS a great place to work
Each of these strategies is discussed in turn in the sections that follow.
30
a) Enabling Strategies
6.1 Technology Strategy
As the Company focus turns to establishing a business service model based on agility,
flexibility and customer intimacy, it is critical that the technology landscape is adjusted to
ensure it is capable of delivering the new strategic purpose.
The success of the Company now and in the future will be dependent on ensuring reuse of
existing assets (where appropriate) and reviewing emerging IT and trends that could add value
to the Company. The longer term Technology Strategy which aims to improve service and
scale for growth whilst balancing the need for agility and flexibility with reducing costs, will
be driven by the new Target Operating Model for the organisation. The Technology Strategy
will potentially re-shape the UK SBS technology landscape as outlined in the diagram set out
below. This will support the UK SBS strategy by creating:
•
An agile and flexible rules based landscape:
- Which is capable of delivering high volumes at an acceptable cost
- That supports a move away from a traditional shared services model enabling a
differentiation strategy based on value adding, flexible and agile services
- Which can be executed at pace to reduce time to market for new clients and services
- That supports the Government ICT Strategy and Digital Services Strategy, through
commoditisation, componentisation, and consideration of cloud and social media
•
A growing and continuously improving a flexible catalogue of both indirect
(transactional) and direct (value-adding ICT) services from which customers can pick and
choose with a degree of self-provisioning and automated costing, separation of the user
experience from the underlying technology, to make continuous improvement simpler, and enrich the user front-end
•
Further automation and “straight-through processing” through implementation of
business process management systems and rules-based processing
•
Partnerships with organisations to provide additional support
The Technology Strategy and landscape (2018+) is shown below:
31
The ambition is to enable the UK SBS strategy to move away from the traditional ‘shared
services’ model by creating a modern technology landscape which is capable of differentiation
through its ability to be flexible, agile and execute at pace. People process and technology
combined will make the Company successful
Initiatives that support the Technology Strategy are:
6.2 Transition Strategy
Transition is a new and exciting area of expertise that is the delivery vehicle for the UK SBS’s
growth agenda. It has been created as an enabler for the Company ambitions for shared
business services.
The recent BIS Phase 1 implementation and the procurement modernisation programmes have
set the foundations for a Transition Strategy. These have led to early methodologies, processes
and team structures that are developing into a mature, flexible and professional business
service that the Company can be recognised for in years to come.
The transition approach will foster early customer relationships and introduce the service
excellence customers will expect. Industry best practice will be reviewed to develop UK SBS
tools and techniques so that new clients can be assured that their transition will be smooth,
professionally managed and in tune with their business needs and strategies for the future.
32
Transition is a key part of the client journey to start to receive services, and it is recognised that
there is a need to engage not just clients but also key areas of the organisations on every step
of that journey. This is outlined in the following diagram:
Initiatives that support the Transition Strategy are:
33
Initiative
Action
Develop the appropriate
customer and service
management relationship
and criteria for the end-toend client journey when they
adopt a new service. (shared
with the Innovation
Customers and Growth
Directorate)
Define the end-to-end process
for establishing the on-going
management of new service
(or the services that new
customers will receive) and
ensuring that the clients and
UK SBS have the appropriate
resource/process in place to
deliver this
Measurement and timing
Define and agree the process
by Quarter 2 -2 013/14
Build stakeholder awareness
and provide training by
Quarter 3 -2 013/14
Use the process by Quarter 3 2013/14
A focus on delivery is the corner stone of the Transition Strategy and Directorate. The current
roadmap of client on-boarding is outlined in the following diagram:
One aspect of the future of the Transition Directorate is the development of Portfolio, Programme and Project Management (P3O). The Company will establish this in line with Cabinet
Office Major Projects Authority guidance in this area. It is acknowledged that there are pockets
of expertise and delivery in these areas already in the organisation and will seek to utilise and
enhance these existing resources. The objective is to enhance capability and build UK SBS as
a centre of excellence, at the same time developing a potential business service for the future.
The outline of the timescales for this is as follows:
34
6.3 Communications Strategy
The newly extended Communications team will convey the exciting growth and innovation plans
outlined in this business plan
Utilising an innovative channel mix of traditional and digital platforms the communications team
will ensure that there is an on-going and efficient information conduit between the business
and its internal and external stakeholders; championing UK SBS’s unique positioning and
differentiation, successes and people-led approach.
In addition, renaming the Company as UK SBS will provide a visual and narrative articulation
that is aligned with the vision, mission and values of the Company. Communications will ensure
that the change in name and direction is embedded throughout the overall Company and
Directorates, providing content and tools in innovative formats for swift on-board and outreach.
Supporting the Organisational Development Strategy the Communications team will work
closely with the Engagement team to ensure that the Company values are at the heart of the
communications programme.
Initiatives that support the Communications Strategy are:
35
6.4 Governance Strategy
The Company’s Governance Strategy (detailed within section 2) is one of its unique selling
points, providing a scalable model which will act as an engine for growth. Working with
key stakeholders UK SBS will develop and mature in a controlled way and that appropriate
governance arrangements are in place to ensure clear strategic direction and organisation for
delivery. This will be further supported by the strengthening of in-house legal resource.
The governance strategy will be a key enabler to delivering the business plan and is in line
with Government policy. The strategy will ensure the Company’s Teckal status is protected
whilst allowing exploration of future growth options. In addition the ownership structure reflects
the Company commitment to employee participation in its ownership and this will be further
embedded during 2013/14.
36
b)
Supporting Strategies
6.5 Continuous Improvement and Innovation Strategy delivering cost effective and value for money services
The delivery of value and benefits for both customers and owners is central to the success of
the UK SBS. The Company approach to continuous improvement and innovation is based on
five key focus areas:
•
Customer service and customer experience improvement via a proactive attitude to
feedback management
•
Process simplification via the adoption of proven methodologies (lean or other similar
‘best of breed’)
•
Process automation via the development of fit for purpose applications
•
Creation of innovative thinking via active exposure to external practices and the
embracing of new and emerging digital technologies
•
Development of a culture and mind-set of on-going improvement via a mix of external
expertise and the mobilisation of internal resources
Initiatives that support the Continuous Improvement Strategy are:
37
6.6 Customers – continuously improving customer
satisfaction with services they receive
The Company is determined to deliver high quality, accessible, value for money services in
an efficient and effective way and that ensures that the customer is always considered.
The Customer Strategy stands on five key principles to guarantee customer service excellence.
These are:
Customer
Insight
Culture
Informaon
accessibility
Delivery of
Service
• A customer• A deep
• Customers
• To be
focused culture
understanding
value accurate,
successful, UK
will be built,
of customer
mely and
SBS must fulfil
demonstrang
needs at a level
appropriate
its purpose –
the necessary
well beyond
informaon
to allow
values and
that which
customers to
understanding
customers are
focus more
how
able to
resources on
operaons and
arculate
their core
services meet
themselves,
acvies by
customer
creang
the provision
needs and
opportunies
of high quality
expectaons
to develop
shared
innovave and
business
insighul
services
soluons
Timeliness
and Quality
of Service
• The speed and
effecveness
of the
company’s
response to
challenges that
arise will have
a significant
bearing on
how customers
view the
organisaon
To embed these principles and instil a culture of partnership both within the Company and
with customers, a new client governance model has been developed to help build stronger
relationships and to improve understanding of customer needs. The new UK SBS customer
governance brings together clients and senior UK SBS representatives to create effective
partnership working. This ensures that the UK SBS experience is customer led, focussing on
successfully delivering high-quality business services.
The governance model contains five functional fora as follows, each meeting bi-monthly:
•Finance
•
HR/Payroll
•
Information Systems Services (ISS)
•Procurement
•
Grants.
To enable successful partnership working, the functional fora are each led by a Joint
Leadership Team, comprising of the elected client side chair and a nominated senior UK
SBS representative. In addition, there is a representative Cross Cutting Customer Forum
to deal with issues that cover more than one forum. This group meets quarterly. A Strategic
Customer Review Forum meets twice yearly to consider common issues and provide important
strategic input. Overall, the new customer governance model combined with UK SBS account
management supports successful client engagement at all levels.
38
Initiatives that support the Customer Strategy are:
6.7 Growth Strategy supported by strategic partnership –
growing for sustainability and efficiency
As the Company’s aspiration is to become the leading provider of shared business services, the
Growth Strategy has been developed to take forward a partnership model that allows client’s
businesses to flourish but also allows the Company to mature and grow at the same time. UK
SBS has an opportunity to better utilise its valuable asset base for wider benefit and reduce unit
costs for clients.
The approach to growth will be strictly in line with the ownership model and maintenance of the
Teckal exemption. The focus of growth in this business plan will therefore be:
•
Focus on the public sector market, and not seek private sector clients
•
Seek out growth in value adding business service products, such as procurement,
grants and IT support and services
•
Promote credibility in procurement and actively pursue further opportunities to offer
procurement services to the wider public sector
•
Develop and implement an property asset management offering
39
•
Align and complement Central Government policy and reform programmes.
For example, the Company will aim to grow in markets that are required to make
cost savings as well as transform - such as the education sector In addition other
professional business services will be identified that can be developed and marketed
to existing and new client bases, such as project management, employees engagement,
and transformation.
Strategic Partnership
Developing strategic partnerships represents a market entry strategy which will deliver a step
change in the Company growth ambitions by obtaining complementary expertise and capacity
required to respond to fast changing demand in the public sector.
One or more strategic partner will make available critical skills such as:
•
Access to wider opportunities
•
Enhancement of the Company ability to transition growth through access to critical
skills and capacity such as:
- Sales, marketing and business development expertise – as the Company seeks to
change from accepting business within its immediate network to going out and actively
engaging with new clients. Potential partners have these skills in their business and can
work alongside UK SBS employees to develop these skills whilst securing new work
- Change and transition capacity – the Company has a transition team but is looking
to grow quickly and will therefore require additional resource and capacity to fulfil
these ambitions
- Potentially service delivery capacity where solutions other than the Company’s existing Oracle platform are required.
40
Initiatives that support the Growth Strategy are:
41
42
Initiative
Expand the grants
service across
Government
Develop the
Company’s data
centre strategy
Action
Develop and position the Grants
service to become thel eading
provider of grants provision
across the UK public sector
Develop and implement the
Company’s data centre strategy
Measurement and timing
On-going
Strategy developed by April
2013 and implemented by
October 2013
6.8 Organisational Development Strategy – supporting
strategy - making UK SBS a great place to work
As the Company’s focus turns to establishing a business service model, ensuring the
appropriate structures, capability and operating environment are fit for the new strategic
purpose is critical.
With more than 70% of the Company’s financial resources invested in the people employed, the
success of the organisation is very much driven by the ability of people to deliver the goals. The
Company has been successful in developing, recruiting and retaining high quality people by
valuing them and giving them the ability to achieve their potential.
When implementing the other supporting strategies set out above the Company will:
•
Strive towards identifying and releasing the potential of people through robust talent
management and tailored learning and development
•
Engender a culture of continuous improvement, customer focus and performance
management in order to deliver improved value for money services
•
Create a culture of empowerment, engagement and passion that lives the Company
values and will continue to ensure that the environment is conducive to creating an
atmosphere that energises people to deliver their best
•
Design and implementation of a new operating model and deputy structure that will
provide succession and leaders of the future and ensure the Company delivers for
future clients
•
Link with the management development plan to support the development of skills that will
drive a commercial approach
A strong, focused and people centred leadership is crucial to the delivery of the overall
Company strategy. In addition (recognising the pace of the operating environment), a rounded
wellbeing plan will also be critical to successful delivery of the plan.
The Company will strive towards identifying and releasing the potential of people through
effective talent management and tailored learning and development. Furthermore, in order to
deliver improved value for money services the Company will implement and embed a culture of
continuous improvement, customer focus and performance management across the Company.
In delivering the Organisational Development Strategy the following work streams illustrated
below will be implemented, these are illustrated on page 44.
The Company has an ambition to create a culture of empowerment, engagement and passion
that lives the Company values and continues to ensure that the environment is conducive
to creating an atmosphere that energises people to deliver their best. A strong, focused and
people centred leadership is crucial to the delivery of the overall Company strategy. People will
make the business successful.
43
Major initiatives that support The Organisation Development Strategy are:
Initiative
Action
Organisational Design and
capability
Design and Implementation
of a new operating model
and deputy structure that will
provide succession and
leaders of the future and
ensure the Company delivers
for future clients
Implemented by April 2014
Design and implement two
new Directorates to support
the focus of Growth,
Customer and Continuous
Improvement and Transition
Implemented by April 2013
Link with the management
development plan to support
the development of skills that
will drive a commercial
approach
Implemented by April 2013
44
Measurement and timing
45
Initiative
Engagement
Wellbeing
Action
Development of an
engagement strategy
Measurement and timing
Agreement by May 2013
Develop Company
volunteering
On-going
Support the Company to
achieve the measures to be
in the top 30 Companies
By 2015
Launch of wellbeing initiative
Launch by September 2013
Baselinec urrent levels of
well being
By May 2013
On site health checks
Alternative approaches to
health
Stress management
awareness
Two sessions to have been
run by December 2013
Training run by April 2014
Self-esteem development
Link to engagement and rest
of OD strategy
Increase opportunities for
volunteering and community
work
Fit for the future initiative
Communication
46
Actions will be covered in the
Communications strategy
and the high level actions are
identified in the earlier
section
On-going
On-going
Develop initiative by April
2015
7
The Company’s social and environmental policies reflect the ethical nature of the organisation
UK SBS is conscious of the role it has in the communities where it is based. The Company
has a very well supported volunteering scheme that has recently seen over 1,000 hours of
volunteering donated to the community. Many local voluntary groups are supported and the
Company donated, at Christmas last year, items to the local shelter. Support to local voluntary
groups also involves supporting ‘Challenge 24’ that allows UK SBS people to be involved in
resolving challenges that face voluntary organisations in the area, and across the country.
The employment of local labour is supported and recruitment activity encourages local
residents to apply for vacancies and live and work in the areas served.
The Company is committed to reducing the impact the organisation has on the environment
and to continually improving environmental performance as an integral part of the business
strategy and operating methods. The Company will operate in compliance with all relevant
environmental legislation with regular review points, to ensure best practice is maintained,
clients, suppliers and other stakeholders will be encouraged to do the same.
As part of the policy, the Company will:
•
Incorporate the consideration of environmental concerns and impacts into all decisions and activities
•
Comply with all relevant regulatory requirements, Government policies and standards of good practice for environmental management
•
Promote environmental awareness among the Company’s people and encourage them
to work in an environmentally responsible manner
•
Reduce waste through re-use and recycling and by purchasing recycled, recyclable or re-furbished products and materials where these alternatives are available, economical and suitable
•
Communicate environmental commitment to clients, customers and the public and
encourage them to support it
•
Promote efficient use of materials and resources including water, electricity, printing,
paper materials and other resources, particularly those that are non-renewable
•
Work with people employed by the Company to reduce adverse environmental impacts
associated with travel, including encouraging the use of more environment friendly forms
of transport
•
Work with contractors to promote effective environmental supply management to help
support the council’s policy to prevent pollution
•
Continually improve and monitor environmental performance against best practice
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8
UK SBS – Leading shared business services in the
public sector
This business plan has been created for the five-year period from 2013/14 to 2017/18.
While the majority of the key initiatives identified in this plan relate to the three years to
2015/16, the effort put into these initiatives will build capability and capacity for the future and
guide the Company’s needs after this point. In a rapidly changing operating environment, the
Company will need to demonstrate flexibility but while achieving the core aims of the strategy
set out in this plan. By 2018, the Company will have reached maturity and be demonstrating
the following characteristics:
•
Cost efficiency levels and service benefits which are competitive with the open markets
•
Be established as a business partner for a wide ranging client base
•
Be a centre of excellence for collaborative Government procurement and leading
category management across a wide range of products and services
•
Provide a range of professional services to clients that add value to their organisations
•
Be the leading provider of grants provision in the UK public sector
•
Be recognised as an employer of choice
•
Maintain position and status of being in the Top 30 Companies to work for in the
not-for-profit sector
This business plan clearly outlines and articulates the vision and goals of the Company and
how these will be achieved. The programme of initiatives that has been identified will place UK
SBS at the forefront of the public sector shared services agenda and provide a stable platform
for growth and efficiency.
In addition to this document further detailed appendices and supporting Directorate plans
are available for review.
48
North Star House
North Star Avenue
Swindon, Wiltshire SN2 1FF
www.uksbs.co.uk
Concept House
Cardif Road, Newport
South Wales NP10 8QQ
www.uksbs.co.uk
Queensway House
West Precinct, Billingham
Stockton-on-Tees TS23 2NF
UK Shared Business Services LTD (UK SBS). Registered in England and Wales as a limited company. Company Number 6330639.
Registered Office: North Star House, North Star Avenue, Swindon, Wiltshire SN2 1FF