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General Functions Committee 5 August 2009 Restructure of the Corporate Senior Management Team Chief Executive and Head of Paid Service
This report seeks approval for a revised Corporate Senior Management structure that is aligned to and delivers for future needs of the Council
Officer Contributors Status (public or exempt) Wards affected Enclosures For decision by Function of Reason for urgency / exemption from call-in (if appropriate)
Chief Executive and Head of Paid Service / Acting Head of HR Public and in the separate exempt report Not applicable Appendix 1 proposed structure chart General Functions Committee Council Not applicable
Contact for further information: , 020 8359 7952
RECOMMENDATIONS That the proposed restructure of the Corporate Senior Management Team and responsibilities as detailed in this and the exempt report be approved for implementation. That where roles do not assimilate, that a selection process be run to recruit to the new structure. That where an employee does not secure a position in the new structure they will be dealt with under the Council’s Managing Change policy. If employees are not successfully redeployed, that they be released on grounds of redundancy under the Council’s severance scheme. That the Chief Executive be instructed to issue notices of redundancy as appropriate and to seek to capitalise any costs arising from the redundancies That if there are any changes to be taken into consideration as a result of formal consultation, these are actioned by the Chief Executive through a Delegated Powers Report. That all roles be re-evaluated including Assistant Directors after the structure has been implemented so changes can be fully reflected. RELEVANT PREVIOUS DECISIONS At the time of writing the report the following decisions have been made with regard to the restructure. The posts in scope for restructure are Executive Directors, and Directors. The Assistant Director roles will be affected by this restructure; however these will be managed by the new Corporate Senior Management Team when determining their own management structures. There are two instances in the proposed new structure that are at the next tier to reflect the urgency of issues to be dealt with. There is a possibility that the process may result in compulsory redundancies. A decision was made at the 14 January 2009 meeting of the General Functions Committee to recommend to the Council the deletion the Executive Director for Communities post and the decision of Council to approve and adopt the recommendations of General Functions Committee (No. 162) .
CORPORATE PRIORITIES AND POLICY CONSIDERATIONS The Corporate Plan states that next to our Barnet citizens, our employees are the most important asset. A new Corporate Senior Management team structure is now needed to deliver the Corporate Plan, and lead the transformation of local public services as set out in the Future Shape programme. There are also a series of internal and external pressures that need urgent attention Large number of secondment and acting arrangements Increasing importance of Partnerships in the new CAA agenda Significant capacity gaps in key areas such as commissioning and programme management Preparing for a downturn in public expenditure RISK MANAGEMENT ISSUES Stability The current structure inclusive of Assistant Directors has a high percentage of ‘acting up’ roles leading to potential instability and loss of continuity. The restructure provides the opportunity to confirm or select permanent people into posts. Where there are vacancies due to either displacement or a new post, interim arrangements will be put in place to ensure continuity of services. This will be necessary to ensure capacity to continue to lead the organisation whilst in a transitional period. A communication plan will be drawn up to ensure employees are well informed, particularly as the restructure process may involve whole teams or functions moving to new directorates.
Selection process The restructure will need to ensure that a robust selection process is in place so the right people are appointed, with particular emphasis on reference clearing to mitigate risk in this part of the process. Vacant posts at Deputy Chief Executive and Director level will be Member appointments. EQUALITIES AND DIVERSITY ISSUES The selection process will be run according to the Council’s Managing Change policy that supports the Council’s Human Resources Strategy. An Equalities Impact Assessment will be completed at the end of the consultation period, as supported by Councils Equality and Diversity Policy
and in line with the Equality Act of 2006.
USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) The report recommends a revised structure for the Corporate Senior Management Team. There will be no increase to the financial envelope across the four senior tiers in the organisation and a reduction in overall salary costs is likely, the size of which will depend on final job evaluations and the individuals appointed. The current number of posts within the Corporate Senior Management Team population (top three tiers) total 11: Chief Executive; Two Executive Directors; Eight Directors. The proposed new structure within the Corporate Senior Management Team total 11 with the emphasis on the introduction of the Deputy Chief Executive role. These posts will add capacity in critical areas and strengthen the way the Senior Management Team operates. In particular, the proposed structure places greater emphasis on value for money and the use of resources. The new structure is also intended to add capacity to future challenges facing the authority. The proposed posts are: Chief Executive; Two Deputy Chief Executives; One Assistant Chief Executive; Seven Directors. Further reports will be presented to General Functions Committee as the process develops. Once the Corporate Senior Management Team is in place they will be accountable, as a team, for determining the structure of the Assistant Director population and implement accordingly. LEGAL ISSUES None save those contained in the main body of the report CONSTITUTIONAL POWERS Constitution Part 3 -Responsibility for Functions – 2 – Responsibility for Council Functions - General Functions Committee discharges Council functions not reserved to Council including staff matters. BACKGROUND INFORMATION Prior to this report being presented the Chief Executive has discussed informally with all of his Corporate Senior Management Team, individually and
7. 7.1 8. 8.1
collectively the rationale for the need to restructure. 9.2 This structural proposal is intended to: Provide a response to recent managerial issues within the Authority; Provide capacity where required; Create clarity of accountability; Begin to reshape the authority to respond to the Future Shape agenda; Be cost effective. The creation of a new Corporate Senior Management team will also require some directorates to reshape their own management teams and this will follow appointments to the senior posts. However in two instances this restructure proposes changes at the next tier to reflect the urgency of the issues to be dealt with. These changes are set out in the sections below. Deputy Chief Executives (DCE) The new structure proposes that the role of Executive Director within the Council structure be deleted. Earlier decisions mean that one such post (the Executive Director for Communities) would be removed from the structure, whilst another (the interim Executive Director for Organisational Development) is filled on an interim basis. The Executive Director role has evolved in different directions since its introduction with the post-holders acting variously as strategic leaders, programme managers and leaders of supra-directorates. The lack of clarity as the purpose of the role is confusing to the organisation and its partners. In place of the Executive Director roles two Deputy Chief Executive (DCE) posts will be created. The DCE role will be expected to formally deputise for the Chief Executive during periods of absence and provide on behalf of the Authority strategic leadership on critical issues for the borough. Each DCE will provide leadership on a specific set of challenges facing the Authority, will line manage a number of Director posts relevant to that area and take responsibility for the relevant partnerships. 9.5 Deputy Chief Executive (for Environment and Place) This DCE role will support the Chief Executive in delivering on all aspects of improving the physical environment of Barnet, focussing on delivering successful regeneration and development across the borough, including the delivery of the major schemes, as well as ensuring effective services that make Barnet a successful place. The post holder will lead on relationships with the Greater London Authority and the London Development Agency. The post holder will line manage the Director for Environment and the Director for Planning Housing and Regeneration. 9.6 Deputy Chief Executive (Section 151, Corporate Services Transformation) This new post will have specific responsibility for taking forward all aspects of the ongoing organisational improvement and modernisation process in particular implementing the Future Shape proposals. The DCE will line
manage the Director for Corporate Services and the Commercial Director. This post will be the statutory Section 151 (Chief Finance) Officer which will ensure resource management and financial planning are at the heart of strategic decision making. The DCE will be support the Chief Executive in managing the negative impact of the recession on public spending alongside increasing service demand and the potential for significant change to Council and Partner services The DCE will also have direct reports at AD level with responsibility for all aspects of budget and financial control and planning across the authority and with partners. 9.7 Chief Executive’s Service The post of Director of Strategy will be deleted and a new Chief Executive’s Service will be created. This will draw together policy, performance, and commissioning, consultation and communications resource from across the Council. The medium term intention is to expand the role to include all LSP partners, as part of developing effective strategies and plans for improving outcomes in the borough. This service will take forward proposals from the work of the Strategy work stream of the Future Shape Programme. Assistant Chief Executive The Chief Executive’s Service will be led by an Assistant Chief Executive who will support the Chief Executive in delivering all aspects of policy, performance, strategy, communications, consultation and partnership working. The Assistant Chief Executive will have corporate responsibility for closer integration of public services within Barnet as part of the "One Public Service" strand of Future Shape. The Assistant Chief Executive will lead on developing Barnet’s approach to the strategic commissioning of services and all aspects of Comprehensive Area Assessments. 9.9 Director of Corporate Services The Future Shape programme has identified the potential for further efficiencies from the Council’s corporate services; whilst the likelihood of restricted public spending means further efficiencies from the Councils back office services will be necessary. This newly created Director post will take responsibility for: managing corporate services across the authority; taking forward Future Shape proposals to create new Corporate Support; and Customer Access (including libraries) organisations; Maximising income and revenues to the Authority. Corporate Services Directorate Management Structure It is proposed that the new Corporate Directorate will be supported by Assistant Directors with professional backgrounds in; Customer Service, IT and People emphasising the importance of these services for improving the work of the Council. Existing AD posts within the Resources Directorate will
be deleted. A separate consultation and recruitment process will take place once an appointment to the Director role has been made. 9.11 Commercial Director The recent mixed experience with delivering major programmes and projects has emphasised the need to ensure the authority has access to the right procurement and programme management capacity. The post of Director of Major Projects is already established and this restructure proposes that the post is given an extended remit and becomes part of the corporate management team. The Commercial Director will take responsibility for: All aspects of procurement; Corporate responsibility for VFM and the development of a range of VFM projects across the authority and its partners in support of Future Shape; Responsibility for managing corporate programmes and project management; Development of alternative service delivery solutions; Contract monitoring standards; Delivery of the Building Schools for the Future Programme; The formation and leadership creation of the new Property and Assets organisation and proposed by Future Shape. 9.12 Director of Corporate Governance and Monitoring Officer The responsibilities of this post are, at this stage, largely unchanged and the Director for Corporate Governance will report directly to the Chief Executive Deputy Director of Corporate Governance and Chief Internal Auditor Recent control issues, such as those highlighted by the Ad-Hoc Scrutiny review of Treasury Management, mean the restructure proposes that the importance of the Internal Audit function be reflected in the re-designation of the post of Chief Internal Auditor as Deputy Director within this Directorate. This new role will be given a wider ranging remit on control issues by bringing together the Corporate Anti-Fraud and Risk Management functions under their line management. This will in turn require the redistribution of the current Deputy Director responsibilities across the Directorate as part of the review of Assistant Director structures. The Deputy Director of Corporate Governance currently manages the Community Safety function which is at present a mixture of strategic, partnership and operation teams. The Director of Environment and Operations will be asked to take the strategic lead on Community Safety matters with the operational aspects of the function shifting into the Environment Directorate. 9.14 Director of Children’s Service (DOC) This post will report directly to the Chief Executive on all aspects of their activity reflecting the corporate importance of the leadership and management of this service, increased focus on the safeguarding agenda and the scale of resource controlled by the Children’s Service. The DOC will provide the corporate lead on Safeguarding for the authority.
Director of Adult Services This post will report directly to the Chief Executive reflecting the importance of the Adults agenda, the size of budgets and the wider remit of the role as set out below. The DAS will take responsibility for producing and managing proposals for the appropriate integration or alignment of Health activities and will therefore lead on the authority’s relationship with NHS Barnet. Director of Environment and Operations The revised designation reflects the important role that ensuring effective frontline service delivery plays in driving customer satisfaction with the authority in turn reflected in the continued importance of the Clean, Green and Safe priority in the Corporate Plan. The Director will be responsible for reshaping the existing directorate using the proposals for more effective customer focused service bundles as set out in the Future Shape programme as the basis for this re-organisation. The Leisure Contract, which has previously been managed with Resources, will move into the Environment and Operations Directorate to ensure alignment with other leisure/healthy living opportunities within the borough and in particular the Council’s many parks and green spaces. The Director will report to the DCE (Place).
Director of Planning Housing and Regeneration This post will continue as is but with specific responsibility for delivering the business case and the leadership of the Future Shape “Transact” group proposals and to explore alternative partnership models for their service area.. The post will report to the DCE (Place).
Assistant Directors The present Directorate Management Team arrangements vary significantly in size and designation across the Council. Adults have already adopted a streamlined Assistant Director model. Given the Future Shape proposals for moving to the commissioning of services all Directorates will need to consider a similar adopt this model. The inconsistency in job title and status is also confusing for employees and Members and all Directors will be required to bring forward revised proposals for their management teams following the Corporate Senior Management Team restructure. Trade Unions Trade Unions have been informally briefed on the proposed new structure and will be formally consulted and updated throughout the consultation period.
Timetable The period of formal consultation is from the 29 July 2009, through to closure
on 27 August 2009. Feedback from the consultation will be considered with the final structure communicated to those in scope on Friday 4 September 2009. Internal selection will take place during September 2009. An External recruitment campaign will begin in September, and it is anticipated that all posts will be filled pending notice periods by the end of the calendar year 2009 11. LIST OF BACKGROUND PAPERS
Proposed Structure Chart Appendix 1
Legal: JEL CFO: JO
Corporate Management Team – Proposed Structure
Asst Chief Executive
Deputy Chief Executive
Deputy Chief Executive
Director for Children’s Service
Director for Adult Social Services
Director for Corporate Governance
Director for Environment & Operations
Director for Planning, Housing & Regeneration
Director for Corporate Services
Asst Director(s) Finance
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