Guidance

A staged approach to investigation and establishment

Published 28 March 2017

1. Overview

While the benefits associated with establishing the right delivery model are considerable, the processes of investigating and establishing an alternative delivery model (ADM) are complex and resource intensive. No two projects are ever the same. The required resources and timescales will differ according to local conditions and the availability of information to progress with the project.

The main stages along the journey to investigation and establishment are as follows:

• stage 1: defining your function
• stage 2: the case for change
• stage 3: the case for externalisation
• stage 4: portfolio analysis
• stage 5: options appraisal
• stage 6: business case
• stage 7: business plan
• stage 8: transition
• stage 9: go-live and ensuring sustainability

If the options appraisal process identifies outsourcing as the preferred option, councils will need to follow an alternative process from stage 5 onwards. A procurement exercise will then be required to identify the preferred provider, removing the need for a business plan. It is recommended that the stages 1-9 are undertaken for all other delivery model options (including to remain in-house with re-engineering).

2. The journey from investigation to establishment

A diagram has been provided to show the conventional 9-stage journey from investigation to establishment, including potential decision making milestones. Indicative timescales are also provided. The timescales associated with each stage will be determined by the progress made in agreeing the issues identified at each stage and the existence of the preferable conditions listed in section 4 of a staged approach to investigation and establishment.

Several of the stages can be undertaken concurrently if resources allow. If the library strategy has already been developed, these timescales could be considered realistic.

3. Resource requirements

The investigation and establishment stages are resource intensive. Work undertaken by library service employees is often on top of the day job. Significant support and leadership is also required from the council.

In line with most change programmes, a project board is often established at an early stage with clear terms of reference. The project board is normally chaired by the project sponsor, often the portfolio holder or council commissioner. The library service and council need to identify the necessary resources to progress the project and both sides will require project management capacity.

We formed a project board with representation from the key departments of the council to lead the work which helped ensure a partnership approach to the spin-out. Having the support of the council’s business services was essential through the process. It is important to ensure a whole team approach across the council to facilitate smooth decision making and also to help with ‘unpicking’ the service from the wider council support during transition.

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The council should identify resources from their legal, finance, HR, property/premises and pensions teams to support each stage of the process.

The library service should identify project management resources, and also ensure that the project is discussed at senior management and staff team meetings.

Both parties should also consider whether external support is required at particular points along the journey. Depending on the availability and capabilities of the resources that have been identified, external support may be required to provide specialist expertise in relation to options appraisals, business planning, financial modelling, legal, any technical issues, and VAT advice.

You must have a political appetite, and a strategic sign up from the corporate leadership. A recognition and willingness by the council to resource activities like independent legal advice.

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Please refer to case study: the journey from investigation to establishment for further details, including details of the resources required to support the process.

4. Helpful pre-conditions

Based on the experiences of library services that have undertaken the investigation and establishment process, a downloadable self-assessment tool has been developed. This is designed to support you to identify the helpful (but not essential) pre-conditions that will increase the readiness of the library service and council to start the investigation process.

These pre-conditions focus on 3 main areas:

• developing a case for change
• defining the scope of the investigation
• assessing the availability of resources to support the investigation process

You should try to address as many of the identified barriers as you can before you start the investigation process.

5. Lessons learned and critical success factors

Our experience ‘spinning out’ from the council suggests that the following are crucial pre-conditions for success:

• a clear vision for the future of the library service (which has the buy-in of staff and public)
• the support of senior officers at the council and the dedicated involvement of an influential senior officer to act as project sponsor
• the active engagement and support of the libraries’ portfolio holder
• significant energy and commitment from senior library managers for a sustained period of time to see the process through
• sufficient time and support to prepare robust business plans for the new organisation, including access to high quality independent legal and financial advice and high quality project management (likely to be a full-time job for at least one person)

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The next section covers what you need to consider before starting the investigation process.