ISSUE 7
an online interactive publication
Planning a digital future Why designing digital transformation from the bottom up can be better than piecemeal change
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What's inside? • Get ready for GDPR • Take action on DToC • Behavioural assessment tips • Goodbye failure demand
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Page 2 Welcome letter from Dr Andrew Larner, Chief Executive at iESE
Page 3 A round-up of iESE News: GDPR readiness, our upcoming research and iESE's new appointments
Page 4 What's New in Health and Social Care What Matters and HR's top tips on managing culture change through behavioural assessments
L E T T E R
Welcome to our new-look publication elcome to our first new-look W issue of Transform, our newsletter which aims to keep you up-to-date with projects we are working on and best transformation practice across the sector.
Dr Andrew Larner, Chief Executive
@LaverdaJota
Views expressed within are those of the iESE editorial team. iESE is distributed on a triannual basis to companies and individuals with an interest in reviewing, remodelling and reinventing public services.
In this issue we will be looking at a range of topics, including the issue of failure demand - where customers contact an organisation unnecessarily - and its impact on customers, staff morale and the bottomline (see page 5). We also have a twopage feature on digital transformation, questioning the opportunities and potential pitfalls digital transformation affords (pages 6 and 7). Digital transformation is a hot topic for local authorities. Depending on budget, knowledge and leadership from the top, we have seen local authorities approaching the issue in different ways. Sadly we have seen many digital 'transformations' where, despite introducing the latest technology, business processes have been automated rather than transformed. There is a real danger that a piecemeal approach to implementing digital transformation can lead to current business practices simply being fossilised with the latest technology, rather like the mosquito preserved in amber which held the DNA of the dinosaur in Jurassic Park. At iESE we believe the key to achieving successful digital transformation comes from asking the right question at the start: What are you trying to achieve? By working backwards it might become apparent that rather than digitising a service, a service can itself be transformed or even stopped altogether. Here at iESE we are testing the latest tools and technology, including building some of our new Care Funding Calculator with low-code/no-code tools (see the box on Adur & Worthing Councils on page 7) and we are busy creating a bestpractice digital transformation strategy, which with our knowledge-sharing ethos we are keen to discuss with you. We have also gathered some top tips from HR luminaries on carrying out behavioural assessments to affect culture change and are highlighting the ways we are working with councils to reduce Delayed Transfers of Care (DToCs) - a hot topic for several years now - and to provide better outcomes for customers (see page 4). Following the publication of our last White Paper From surviving to thriving we are now seeking your views to input into the research phase of our next White Paper (see page 3). We had a fantastic response to our previous research and hope you will again give your time to feed into the process. Finally, going forward, we are keen to hear your transformation news, views and feedback for inclusion in Transform. You can send press releases and other information through to enquiries@iese.org.uk
Š Copyright iESE 2018
Dr Andrew Larner and the iESE team
Page 5 Feature: How several high-performing organisations are tackling failure demand
Pages 6-7 Feature: The potential pitfalls of digital transformation and how to avoid them
EDITORIAL CONTACTS TRANSFORM IS PRODUCED BY: iESE www.iese.org.uk Tel: 08434 878 025 Email: enquiries@iese.org.uk @iESELtd CREDITS: Editorial by: Vicki Arnstein Designed by: SMK Design
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Views sought for iESE research THIS MONTH IESE IS LAUNCHING THE RESEARCH PHASE FOR ITS NEXT WHITE PAPER AND IS SEEKING YOUR INPUT THROUGH AN ONLINE QUESTIONNAIRE. The research will build on our last White Paper, From surviving to thriving, which gathered the views of more than 80 local authorities on a sustainable model for local authorities and the impact of budget cuts. "Our new research will build on our last White Paper," said Dr Andrew Larner, Chief Executive at iESE. "We found a number of Chief Executives felt the changes prompted by budget cuts would have a positive effect for residents and were emboldening the sector to shape its own future solutions." From surviving to thriving found the majority of activity in local authorities in the five years prior to publication in 2015 had been focussed on making processes and structures more efficient and controlling costs. Looking to the five years ahead, 90 per cent of respondents said reinvention would be a key focus, with organisational transformation cited as the highest area of priority by 79 per cent. Our previous White Paper found a strong recognition that a focus was needed on leadership and developing a workforce with the right behaviours
and culture. It also introduced the iESE 3R model, which can place local authorities at level 1 (review), level 2 (remodel) and level 3 (reinvent). The types of activity at level 2 are those typically designed to make access to services more integrated and easier for the service user. At level 3, an organisation is moving towards understanding and meeting need before it presents as demand for public services, rather than meeting demand more efficiently. Our next research paper will explore how to achieve better customer focus, and how that is not only key to delivering a good customer experience, improved staff morale and bottomline savings, but essential to the understanding of needs that will prevent demand for service. "We hope you will give your time again generously as you did with our research for our last White Paper," said Larner. "Your input is invaluable and we look forward to collating and analysing your views, which will feed into our knowledge of the sector and which we want to share across the sector." To take part in our research survey visit: www.surveymonkey.co.uk/r/iESE2018 CustomerFocusWP
Clock is ticking on GDPR WITH ONLY FOUR MONTHS LEFT UNTIL THE NEW GENERAL DATA PROTECTION REGULATION (GDPR) TAKES EFFECT, LOCAL AUTHORITIES WHICH ARE STILL UNPREPARED MUST TAKE ACTION FAST. David Snowden, Senior Consultant at iESE, warns against the temptation to opt for a compliance toolkit, which some operators are selling as a quick fix. "Some commercial bodies are looking at the GDPR Compliance Toolkits that are being sold. They look like a good way to short-circuit the hard slog of achieving compliance but most are short-term fixes and not very good ones at that," he said. The new legislation, which replaces the Data Protection Act 1998, gives individuals more control over how their personal data is used and more responsibilities for data processors. It will require public authorities to have a data protection officer and to undertake privacy impact assessments in
certain circumstances. You will also need to understand what this all means for any contactors undertaking work for you. We are now offering Readiness Assessments in GDPR aimed at helping you through the practical scenarios in your council. In these assessments we will undertake an audit and GAP analysis and through an interactive workshop give recommendations on addressing any outstanding issues using intelligent systems thinking. "Our knowledge and experience in data protection makes us the ideal partner to support your GDPR compliance. The clock is ticking but it is not too late to start looking at this, to do a final readiness check or carry out staff training," Snowden added. Visit www.iese.org.uk/data-protection or call us on 08434 878 025 for more information.
iESE seeks member input AS PART OF THE BUILDING A BETTER BROXBOURNE PROJECT IESE RECENTLY HELD A WORKSHOP WITH THE BOROUGH'S ELECTED MEMBERS TO INTRODUCE THEM TO A POTENTIAL ORGANISATIONAL TRANSFORMATION WE ARE HELPING DESIGN. The workshop was attended by 20 councillors, key stakeholders who will need to approve the business case if Broxbourne wants to move forward with transformation. Councillor Mark Mills-Bishop, Leader of Broxbourne Borough Council, said those who attended enjoyed discussing perceptions of the council gathered from the experiences of its residents. "Broxbourne is a well-run council, but members know we can achieve more by focussing on the
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needs of customers. It is very exciting to consider the possibilities of the programme iESE is helping us to run. "Every member had a lot to say about what the council does well and how it can improve. This really is a once-in-a-generation opportunity to transform the council's services and performance for the benefit of everyone in the Borough of Broxbourne," he added. Haydn Lewis, Principal Consultant at iESE, said the workshop was very well received. "Our approach is to look at services from the customers' perspective. Our experience is that involving members in transformation projects increases the likelihood of success as they have first-hand knowledge of residents' views."
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iESE appoints digital and IT experts Michelle Veasey, Senior Digital Transformation Consultant Michelle Veasey has spent the past ten years working on digital strategies with the private sector and local authorities. Having previously spent three years working for Calderdale Council on its digital transformation, Michelle Veasey, Senior she feels passionately Digital Transformation about helping other local Consultant authorities to do the same. "Once you have the bug for local government it is difficult to let go because you know what can be done," she said. Veasey hopes her digital expertise will help iESE clients. "It is difficult to transform without outside help and that is where iESE can come in," she added. You can hear more about the work Veasey did at Calderdale by reading the box on Calderdale Council on page 7.
David Snowden, Senior Consultant David Snowden has 25 years of IT and business transformation experience. He started his career on a traditional IT route but went freelance in 1997 when he started helping organisations with business transformation David Snowden, through the use of IT. Senior Consultant Snowden has previous experience with a range of local authorities, including Worcestershire County Council, Wiltshire Council, City of Wolverhampton Council, Wychavon District Council and Mid Kent. At iESE, he is already looking at local authority procurement, a project on Disability Facilities Grant reporting and he will also be delivering our Readiness Assessments in GDPR. "You are not going to get jumped all over on May 25th when GDPR takes effect, but you will need to prove you are doing something seriously about it, so let us come in and help you," he added.
Would you like to share your news and views with Transform? We would like to hear your thoughts and news. Send any press releases or suggestions to enquiries@iese.org.uk
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Top tips on behavioural assessments Local authorities are increasingly putting employees through behavioural assessments to allow them to see whether staff are a good fit for the transformed organisation. It is a chance to get rid of negative behaviours and ensure you have employees with the right mindset, not just the right skill set We've gathered some top tips on behavioural assessments from a range of experts: 1. Lead from the top. It is vital your leadership team understands the goal and purpose of the behavioural framework and behavioural assessments. If the leaders do not believe in the process, your staff will spot this from a thousand paces and it will not lead to long-term culture change. Janet Waggot, Chief Executive, Selby District Council 2. Adequately prepare staff. Some staff won't have had an interview or assessment in years. Do what you can to help them understand the process and prepare for it, such as offering workshops and practice interviews. Use the assessment as a culmination of behaviour change work. Encourage staff to feed their thoughts into the process from the start - ask them what behaviours the organisation needs now and in the future to get them thinking and preparing. Karen Jones, Director at Iolite Consultants Ltd and Commercial Culture Lead at Aylesbury Vale District Council 3. Be prepared to stand firm. Once you have decided you want to change the culture by introducing a set of behaviours and assessing staff against this, you have to be prepared to hold the
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line. You are likely to meet resistance from somewhere, such as some senior managers, those with professional skills, from elected members, trade unions and staff forums. The key is holding the line and not giving in. Andy Wilson, Lead Specialist - Human Resources, South Hams District Council and West Devon Borough Council 4. Bring in outside help. Most organisations will bring in expert external help which offers important independence and perspective. This can benefit all stages of the process, from shaping your behavioural framework and designing your assessments, through to carrying out the assessments. It helps an organisation to be more objective throughout the process. Nicky Lodemore, Senior Consultant at iESE and Principal Consultant at Workfolk Ltd 5. Give tangible examples. Managers find it useful to have tangible examples of what low, good and excellent behaviour looks like – we have examples written down in a document they can refer to and use as the basis for difficult conversations with staff. It gives a practical tool rather than just talking theory, and clearly sets out the behaviours we want to see as part of our culture. Becky Cooke, Assistant Director for Human Resources and Transformation, Eastbourne Borough and Lewes District Councils
6. Help it stick. Anyone can do assessments, the tricky bit is making it stick and affecting culture change. Once you have set out your behavioural framework, you need to make it the centre of your cultural change programme. Wrapping the policies, procedures and skills of your organisation around it to maintain the behaviours you need. Heather Lumby, Executive Director, iESE iESE can help you with creating and assessing a behavioural framework. For more information contact: enquiries@iese.org.uk n
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Ways to cut DToC Delayed Transfers of Care (DToC) - where a patient is ready to go home or be transferred to another setting – has been a hot topic for several years now. Despite being one of the national performance indicators of the Better Care Fund, progress in tackling the issue has been patchy. We have recently delivered a diagnostic report to one South West of England council on DToC, looking at the blockages in the system and advising what could be done to speed things up to allow local health and social care partners to better meet their targets and patients' needs. “Our work identified that discharging a patient can require the input of up to six separate professionals, often with the same information sought each time," Graham Simmons, Senior
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Consultant at iESE, explained. “That’s not the only reason for poor DToC performance, but it’s certainly not how we’d set out to design a smooth approach.” Simmons also found a significant amount of duplicated information due to IT systems not being integrated, while transport delays were an issue, as was sourcing care packages - especially in complex cases. Across the country, many stakeholders have already made any "easy wins" and it is now time to take a more holistic look at the system. Simmons said change could be made in manageable stages and local authorities and health partners should be considering how hospital discharge fits into the wider health and social care picture, including doing some joined-
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up thinking on quick access to home adaptations. Our work with local authorities on the Disabled Facilities Grant (DFG) has shown getting household adaptations people need quickly can reduce DToCs. According to the Monthly Situation Report, which all partners are required to complete, delays due to awaiting community equipment and adaptations can contribute up to ten per cent of all delay days. Heather Lumby, Executive Director at iESE, added: “We are looking for further pilots to apply our learning to and are keen to share our knowledge on this important issue. A diagnostic report can be delivered quickly through a well-managed engagement with the relevant staff.” n
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F E A T U R E
Goodbye failure demand Our work with three high-calibre organisations uncovered a surprising finding - a common issue of failure demand ailure demand is when a customer makes contact with an organisation for an avoidable reason. In our recent work with three high-calibre organisations, which were already high-performing and well respected by customers, we found the issue was wider ranging than we'd previously thought. While all three organisations were great at looking at volumes and activity and what needed to be done when a request came in, they were not always considering why customers made contact in the first place or always doing what mattered to customers. "In all three of these organisations there was no imperative need to look at failure demand or to address the findings, but all three Sevenoaks District Council, Nationwide Building Society and Westward Housing - have decided to see if they can reduce it," explains Lesley Kragt, Principal Consultant at iESE. "This will ultimately cut unnecessary customer contact and free up staff time to deal with other issues."
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ALREADY HIGH-PERFORMING Sevenoaks District Council, an award-winning council with a secure financial footing, asked iESE to analyse the organisation from a customer perspective after attending a talk about the iESE Customer Focus Wheel (CFW). Using a range of analysis tools as part of the CFW, iESE gathered data on customer contact, volumes, processes and strategies. While Sevenoaks was found to be high performing in its customer-centric vision, customer-focused processes and customer service personality, a demand analysis, which helps an organisation see why customers contact them and how often, identified that 89 per cent of customer contact was because of a failure demand. A test and learn phase is now underway at Sevenoaks to look further at the customer journey and, as part of this, cutting failure demand. At Nationwide Building Society, which is owned by its customers and never complacent about customer service, we focussed on its customer call centres and telephony banking. As part of a wider piece of work, iESE gathered data from incoming calls and split them into value demands (where a customer wants to contact the organisation) and failure demands (where a call might have been avoidable). Starting in November 2017, Nationwide launched an eight-week pilot called 'Do what matters', where 60 of its 1,200 call centre staff were given the autonomy to resolve problems for
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customers at the first point of contact with the aim of reducing failure demand calls. Where the problem could not be solved without referring the caller on to another department or a supervisor, the data will be examined to see why - is there a lack of training or a process is getting in the way, for example. We will update you on the results of the pilot in a future issue of Transform. For Sevenoaks and Nationwide, monetary savings were not the goal, but cutting unnecessary contact will free up staff time to assist those who really need it. In addition there can be other benefits, such as boosting employee morale, since staff feel satisfied that by helping a customer resolve an issue they have done their job well. "If we do the right thing for customers, the benefit will be to both the customer and the organisation and staff will be more empowered so there should be a positive effect on staff morale and motivation," adds Kragt.
MAKING SAVINGS Our work with the housing association Westward Housing Group has delivered £250,000-worth of savings - partly through addressing failure demand. Already an excellent performer on customer satisfaction, the business aims to have a 90 per cent customer satisfaction rate by 2020. While customers already had an 80 per cent satisfaction rate, we found a high percentage of
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contact was because of a failure demand rather than a value demand. Our analysis also found 34 per cent of calls were being transferred to other departments, rather than being resolved at the first point of contact. An organisational restructure of Westward's staff created a hub of advisors trained to deal with admin and enquiries around its core customer contact areas and rearranged back-end processes. After only two weeks the call transfer rate dropped from 34 per cent to 14 per cent. In customer service we always hear about "putting the customer first". By looking to reduce failure demand, these organisations are not just addressing customers' needs, but making a good business case too. n
IF YOU READ NOTHING ELSE... • Failure demand is an avoidable contact from a customer. • Failure demand costs your organisation money. • Not dealing with a request well the first time can lead to repeated customer contact. • Cutting failure demand will improve customer experience, boost staff morale and could deliver significant savings.
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The path to digital transformation Piecemeal digitisation of services without looking at the wider picture risks fossilising current business practices with modern technology, iESE's Chief Executive warns he last few years has seen technology pervade our lives. We interact with many service providers digitally and council customers will increasingly expect to deal with their local authority digitally too. Not keeping up with the pace of change and losing relevance to customers could see some services offered in a better way by another provider or, in cases of statutory provision, not being as efficient as possible could make a service unsustainable. A joint survey by the MJ and BT found 83 per cent of local authority managers regarded digital transformation as among their top five priorities. Of those asked, 56 per cent said they had a digital strategy in place, 13 per cent said they did not and 30 per cent said their digital transformation was embedded in individual projects. Local authorities are approaching digital in a variety of ways, with budgets, knowledge and leadership all having an impact. The temptation can be to simply integrate the latest technology into elements of a council's function and, while this is likely to deliver a one-off financial improvement, Dr Andrew Larner, iESE's Chief Executive, says he has seen several digital transformations where the business has been automated not transformed. "The impression you form is that current business practices are being fossilised with modern technology," he says.
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THREE TIERS OF TRANSFORMATION Dave Briggs, a consultant in digital, IT and transformation who works with iESE, believes there are three levels of transformation. The first is digital access, where organisations take a traditional service and put a previously paperbased form on the web. When filled in, that sends an email to someone in a back office and they have to rekey that in.
‘The impression you form is that current business practices are being fossalised with modern technology.’ Andrew Larner
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"You are not going to fill the deficit with that kind of thing but it makes things easier for the customer," says Briggs. The second is digital efficiency, where an organisation starts to redesign how a service is delivered to take account of the internet. "This should unlock a bit of efficiency by making a service a bit cheaper to deliver and allowing you to make a few admin staff cuts, but it is not going to genuinely transform a service," he adds. The third level is digital transformation, which Briggs says many organisations are thinking about but not many are delivering. "This is where someone comes along and thinks here is a blank sheet of paper, we now have the internet and sophisticated computers in most people's pockets - how does that change things?"
Essentially, real digital transformation starts with the question: What are you trying to achieve? In transforming, a service may not be transformed, it could be stopped altogether, replaced by something else or delivered by someone else.
‘This should unlock a bit of efficiency...but is not going to genuinely transform a service’ Dave Briggs "Fundamentally we need to understand good design of services," explains Larner, "but this means understanding what drives the need for services in the first place. For the public sector,
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help they need and offer local authorities the ability to merge telecare with telemedicine and telehealth. Offering solutions such as helping customers set up reminders to take medication or enabling an internetbased assessment with a healthcare professional could prevent further intervention later on. In the MJ and BT survey highlighted above, the main goals of digital transformation were given as improving services and cost savings, with 45 per cent expecting to save at least ten per cent on total budgets for the areas impacted. A further 14 per cent anticipated savings beyond 20 per cent. However, accepting that digital transformation can help maximise customer benefits whilst delivering cost savings is only the start of the journey. Respondents to a Department for Communities and Local Government Local Digital Report (now the Ministry of Housing, Communities & Local Government) cited six top barriers holding back digital development: legacy systems and ICT infrastructure; lack of development funds; unwillingness to change/non co-operation of colleagues; lack of in-house digital skills; the process being culturally uncomfortable for the organisation and, lastly, supplier inflexibility. When it comes to legacy systems and ICT infrastructure, should local authorities be looking at a complete transformation of their digital services - a rip it up and start again approach - or work with what they have? A council will often totally replace existing systems and take an option they see as low risk - using a single provider they have seen other local authorities use before them. "This is high cost and a significant transformation alongside the transformation of people and process that is underway," Larner stresses. Briggs agrees: "One thing organisations struggle with is they are looking for the silver bullet - a onesize-fits-all transformation approach - and an operating model that will work for everything, but councils deliver many different services, which require research and analysis to determine the best way to deliver them to customers."
‘We now have the internet and sophisticated computers in most people's pockets - how does that change things?’ Dave Briggs
unlike the private sector, if the customer doesn’t need the service that is a real win – the ultimate improved outcome."
RIP IT UP AND START AGAIN? Rather than making technology a solution looking for a problem, a better approach is for councils to understand how technology can help meet a need before it presents as a demand for service. One part of the iESE What Matters programme is looking at how home and wearable technology can reimagine the broadest definition of health services. Existing technology, such as fall detectors, Google, the Alexa app, smart phones with GPS locators, watches with built-in heart rate monitors and wearable activity trackers, can allow users to get the
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Suppliers can be inflexible and the competition for developers is high, making commissioning new solutions costly and time-consuming. Larner believes there is room for a more organic approach - building more software in-house using low-code/no-code software tools. This allows people without coding knowledge but with a business analyst mindset to create a software application and gives a real opportunity to build systems across organisational boundaries. At iESE we have been testing this by rebuilding some our online social care pricing tool, the Care Funding Calculator, using low-code/no-code tools. We are also thinking about how these solutions can be made accessible to public services (see the box on Adur & Worthing Councils). We have also invested in modelling tools that allow us to gather organisational data and then use this as a live transformation tool to show a local authority how potential changes affect their structure and spending. Taking a complete look at the overall picture to pinpoint which services could benefit from reform and, ultimately, going digital. n
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Adur & Worthing Councils ADUR & WORTHING COUNCILS STARTED PIONEERING A LOW-CODE/NO-CODE APPROACH IN 2015. Finding third-party solutions were often expensive and inflexible, the district and borough council was keen to stretch its budget and take control over what its digital services looked like. "We need flexibility so that as we change over time we have control over enabling that change in our digital services in an agile and quick way," explains Paul Brewer, Director for Digital & Resources at Adur & Worthing Councils. The approach meant the council could train up staff with business analyst mindsets, such as systems administrators, rather than employing an expensive team of developers. Using a platform which allows users to drag and drop in a visual interface, they can create digital services with all the capabilities the enduser would expect. The council has created a digital waste management service, allowing customers to request collection of bulky waste for example, and is now testing an application to manage council housing repairs. These applications are fully integrated. "Our main principle is to build services that work end-toend and not to have a front-facing website and a back office system," Brewer explains.
Calderdale Council IN 2011, CALDERDALE COUNCIL'S THEN CHIEF EXECUTIVE SAID SHE WANTED THE COUNCIL TO HAVE A DIGITAL STRATEGY. It was up to a team of four led by Mary Farrar to work out what this meant. Although Farrar, who is now in a different role as the corporate lead for transportation, and her team were looking at change as a whole, making initial quick wins was key to getting staff buy-in. "One of the early projects was the intranet and our website. We influenced the web team to give the intranet a new look and introduced Google search into it because you could not find anything." One of the big focuses was to look internally and get its own "house in order", including investing in the client relationship management (CRM) system. "The organisation had dozens of systems and none of them spoke to each other," Farrar says. Although experienced in stakeholder management, Farrar recalls many meetings feeling uncomfortable because some people felt threatened by the changes. Luckily, the former Director who is now Chief Exec was supportive. While there is still work to do, the council has already done a lot of channel shifting of customer enquiries, with one access point for the customer, it is supporting the business community on the development of a LAN (a Local Area Network) and the culture of the organisation has changed. "It was the culture that had to change," says Farrar, "and now there is a much greater awareness of the need to change."
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Our knowledge of data protection and experience of reinventing services in public, private and third sector make us the ideal partner to support your GDPR compliance.
To find out more, visit www.iese.org.uk/data-protection or call us on 08434 878 025
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