Appendix
Internal Transformation
Ensure MGC has strong Governance and Management, supported by a robust internal procedural framework and control environment positioning MGC as an exemplar organisation to clients, stakeholders and business partners Sub Theme
Progress
2016/17 Priorities
Group Board
New Board in place with private sector chair
Replace normal rotation and focus on inclusion and diversity agenda.
Advisory Board
Three advisory Boards in place aligned to core business areas. All with broad stakeholder membership
Review membership with Chair to ensure continued fit with key sectors, markets and diversity objectives. Training for WFDAB given specific responsibilities.
Additional Oversight
Created effective functioning: » Audit committee » REMCO » Contract Review Group
Market test external audit services.
Company Simplification
Agreed and part implemented streamline company structure to align with BU and afford easier transfer of surpluses. Reduction of dormant companies, moving from 101 dormant companies to 54.
Complete streamlining of company structures. Review and simplify methodology and processes surrounding calculation and allocation of shared service charge to business units. Complete dormant company closure with approximately 25 remaining in order to protect company names and account for legacy financial issues including pensions.
Senior Executive Creation of a new management structure aligned Structure to the six business units and COO reporting to Group CEO.
Maintain broad approach, periodic review in light of changing business or resignations.
Control Environment
New scheme of delegation and authorisation matrix implemented.
Financial Planning
Movement of financial year to April – March for all Implementation of new FRS102 reporting standard business units. Banking arrangements changed which replaces existing standards. and all moved to NatWest.
Accreditations
Reaccreditation of 9001 for Work co, Skills co, Corporate services to 2019. BFS has also been accredited with 9001. ISO27001 (information security management) has been granted to Corporate Services, Work Co and New Economy.
Ongoing HR policy reviews in line with legislation Final review and analysis of credit card usage and associated authorisation procedures – procure Group policy reviews to ensure group service provider for travel, hotels and consumables. consistency in approach e.g travel & expenses, Output validation mechanisms reviewed gift & hospitality, probation policy. across a larger proportion of the business and Review of credit card usage across group and strengthened, where necessary, to ensure full removal of some cards and reduced thresholds to confidence on reporting figures. reduce exposure. Independent output validation mechanisms put in place in some business areas.
IIP accreditation visit being held in March/April 2016 for reassessment.
Further work on ISO accreditations with the aim of all companies being accredited with ISO9001 & 27001 by March 2017. Remaining companies for accreditation include New Economy, Marketing Manchester, OD Services, BGH, BSS and MIDAS (both standards). Skills and BFS for 27001. Use the feedback from IIP assessment to strengthen approach towards OD high performing workplace practices, align to ODSG priorites and staff survey outputs.
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Internal Transformation (Continued)
Business Continuity
Existing Business Continuity plan revised for IS027001.
Revise Business Continuity Plan to ensure coverage across whole business – current focus is IT only.
Performance Management
New performance management framework and internal reporting mechanisms agreed and implemented.
Further review of executive level performance reporting to ensure closer oversight of key performance and contractual issues.
In addition, reporting framework to LEP, CA & LAs implemented to strengthen accountability to GM stakeholders. Social Value
GM Social Value policy developed by MGC hosted ESTA project and adopted by GMCA in November 2014. Social Value commitments reflected in relevant MGC policies such as procurement, staff pay / well-being and environmental sustainability.
Develop a mechanism to collect and report evidence of the social value generated by MGC, through its business and activities, as part of the performance management system. Review the requirement for any additional policy changes in the area of corporate and social responsibility.
Ensure efficient, effective and integrated MGC service provision, both internally and externally, and to maximise engagement with client groups Sub Theme
Progress
Sales Tools
Common diagnostic tool developed to identify Complete pilot of common diagnostic and roll out potential needs of business customers across the fully across the group. spectrum of MGC service. Establish baseline of cross referrals and monitor increase. Developed an internal services guide to allow sales staff to make better cross referrals within the business units. Continue with quarterly Going for Growth campaigns
Service Integration
Process of service integration has started with (a) increasing co-ordination of multiple service delivery to businesses, especially in respect of Growth Hub services, export advice, organisational development and finance; and (b) integration of workforce development diagnostic into Growth Hub offer.
Undertake full analysis of business customer engagements and relationships across the Group to identify scope for greater integration of service delivery, including joined up account management (also see below).
Account Management
Identification and agreement of need to improve.
Review of account management practices and development of a more streamlined, integrated and efficient approach to employer engagement and relationship management.
Service Evaluation/ Customer Feedback
Series of detailed evaluations were undertaken within Business Support to asses programme effectiveness.
Service evaluations will continue with a view to rolling these out across other areas of the business, enabling continuous improvement in offer to clients.
An approach to enable consistent analysis of customer feedback has been developed and tested and is ready for implementation in 2016/17.
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2016/17 Priorities
Develop new and improved approaches to client acquisition through general and targeted promotion of integrated services.
Implement new feedback approach - identify service improvements are needed and establish a baseline and future targets for customer satisfaction
2
Internal Transformation (Continued)
Corporate Services Review
Initial review of corporate services was undertaken to ensure consistent provision of services to the business units.
Detailed review of Finance and HR functions to ensure maximum cost efficient delivery of agreed service standards.
SLAs developed and put in place to monitor performance against delivery.
Include external benchmarking of Finance and HR.
Group Marketing Initial consolidation of marketing function of ESL with Marketing Manchester with staff moving across to MM team.
Full alignment and integration of MGC services, marketing activities and resources to achieve increased impact and efficiencies in the marketing of services.
Appointment of Group Marketing Director from March 2016
Deliver a range of initiatives focused on employees, moving MGC closer to its aspiration to be a high performing organisation and an employer of choice Sub Theme
Progress
2016/17 Priorities
Values & Culture
No corporate values were in place.
Continue to embed the MGC values in working practices.
A process was undertaken throughout 2015, Values will be embedded across appropriate which had active engagement from over 65% of MGC staff, to develop an MGC purpose statement HR systems and practices whilst managers will be supported via the learning and development and 5 corporate values approach in living the values through individuals, teams and business areas. Job Evaluation
Job evaluation exercise undertaken, and externally benchmarked, across all roles within the group to create ‘job families’ with consistent pay scales and levels across the group. All roles evaluated against the agreed job families and associated salary bandings
Terms & Conditions
Periodic internal and external benchmarking. Agree a consistent approach to pay progression within pay bands.
Staffing levels increased from circa 900 staff in 2013/14 to currently circa 1150 staff.
481 staff now on new standard terms and conditions.
The group inherited 45 different sets of terms and conditions. Decision was taken not to transfer all staff onto new set of T&Cs due to cost and impact on existing employees.
Levelling up of other terms including pension, annual leave where below new standard terms and conditions.
It was agreed that a new set of standard MGC T&Cs be developed with all new staff joining on those terms. Diversity & Inclusion
Maintain new system including role evaluation.
First stage review of MGC approach to diversity and inclusion undertaken, with external benchmarking of good practice via the National Centre for Diversity. The output report and recommendations will be used to form the basis of improvement actions in 2016/17 as MGC works towards an agreed “no barriers” approach to EDI.
New and improved maternity and paternity terms instituted.
Review findings of National Centre for Diversity report on diversity and inclusion expected February 2016. Report to Board sponsor and develop an action plan and key EDI metrics to support the aim of a “no barriers” approach in MGC. Outcomes will also support the L&D strategy improving recruitment behaviours and personal development for managers such as unconscious bias.
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Internal Transformation (Continued)
Learning & Development
Inconsistent practices relating to learning and development was in place across operating companies and was an area flagged by staff in the 2014 staff survey as requiring attention. An L&D framework drafted November 2015 and given initial support by SMT will frame the Learning and Development approach in 2016/17.
SMT and SLT development program that will also align to the GM wide “Place based leadership” work under development which aims to recognise and value the strengths of people and places, enabling them to build on these to overcome challenges and make the most of opportunities. Improve capability and understanding to deliver the GM ambition across all areas of MGC Performance management modular program for MGC line managers to improve capability in leading teams to achieve high performance outcomes A range of knowledge and behaviour based activities that will seek to up skill existing employees and provide new starters with a thorough values based support program on joining MGC, enhancing our employer brand and positioning MGC as an employer of choice. A clearer MGC Apprenticeship program for existing and new employees will be established, encouraging job based learning and development and preparing the ground for the employer levy being introduced in 2017 Activity in 2016 will also support plans for more focus on talent development and succession in 2017
Staff Survey
Group wide staff survey undertaken by Hay in February 2014 and for first time standardised to enable benchmarking.
Review outputs from 2nd survey to give fresh direction and opportunities for improvement during 2016/17 and beyond.
This achieved a 79% response rate. 2nd will to be conducted in February 2016 Staff Engagement
Review of processes and activities undertaken. Expanding the reach of ECCs to ensure all staff covered.
Review ECC approach to ensure system is meeting needs of employees and the organisation. Review of Senior Leadership Team scope and membership
Introduced annual staff conference with 3 held to date.
Enable distributed authority across MGC, empowering staff in decision making and Invested in staff engagement and reward supporting the strategic priorities and objectives of platform ‘MGC Hive’ launched in November 2015 the Group, through: » Review of ECC role and scope with 75% engagement achieved by January 2016. » Review of SLT role and scope Also launched an Employee Assistance Package which offers well-being support to employees including face to face counselling.
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Internal Transformation (Continued)
Review MGC assets to ensure investment in key infrastructure, improve efficiency and drive down cost base Sub Theme
Progress
2016/17 Priorities
CRM System
Created a Group wide CRM system with rollout completed across Skills, Work and Business Support.
Complete implementation across all business units and integrate with existing systems. Complete data population to enable analysis of business client relationships across the group and support plans for integrated service offer.
Agresso Development
Upgrade to a fully integrated system. Finance module of the system will go live during MarchApril 2016.
Agresso implementation to build in the HR and Payroll modules with a fully integrated system live by March 2017.
IT Strategy
Investment made in IT to date to deal with immediate business need. Underinvestment in main infrastructure led to IT outage in November 2015.
Disaster Recover investment required.
Dispersed location of ESL, NE, MM, MIDAS/ UKTI and Growth Hub now centralised at Lee/ Churchgate House.
Review of WBC to ensure maximised income and review of Carvers Warehouse to ensure sub-let produces cost neutral position.
WBC became commercial rentable space currently running at close to 100% occupancy. Carvers Warehouse is being sub-let on a short term basis
Continuous review of wider operational estate to ensure meets needs of evolving business and remains flexible.
Accommodation
ESOS/Low Carbon
Development of full costed IT strategy
In line with ESOS legislation, a review of energy Review and implementation of ESOS usage across the MGC property estate was recommendations. undertaken and recommendations for efficiencies and cost savings identified.
Develop the positioning of MGC in the marketplace and with stakeholder groups and client base Sub Theme
Progress
2016/17 Priorities
Group Branding
Need to review overall group branding and branding of some operating companies to move away from “solutions� branding.
Evaluation of MGC brand positioning in marketplace and agree strategy for improvement/ repositioning.
Manchester Growth Company brand created and implemented which stands alone as an overarching brand but which also creates linkages to the brands which sit below.
Review of business facing brands to simplify structure and present more integrated offer to customer base.
Completed rebrand of skills and work solutions (now The Skills Company and The Work Company).
Establish IDG as the commercial consulting and OD brand for MGC. Complete review and re-launch of web-sites.
New websites designed and launched and full review of digital presence undertaken and recommendations implemented. Stakeholder Engagement
Rationalisation of engagement with local authority stakeholders to avoid duplication.
Review stakeholder relationship strategy to ensure improved engagement with a wide range of national and local stakeholders and improved accountability and partnership working with GMCA and GM Local Authorities.
Sponsorship
Sponsorship strategies in place in some business units including BGH and MM.
Portfolio of client sponsorship opportunities to be developed to generate additional commercial income for the group.
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Appendix
Key Performance Indicators and Targets 2016/17
Changes to KPI Framework To allow for continuity and consistent analysis and reporting of performance over a period of time, the KPIs are largely the same as those used over the last two years. A full review of the KPI framework has been undertaken and minor modifications made to the KPIs themselves and supporting definitions as part of a process of continuous improvement and alignment with contractual performance measures. The following KPIs have been added, removed or amended.
KPIs added KPI
Reason
Inputs (Internal KPIs) - % IT system uptime
To track benefits of new investment in IT infrastructure.
Business Support & Business Finance - Businesses co-operating with research entities
An important measure of innovation to reflect the Group’s expanded innovation activity and to align with ERDF funding contracts.
Organisational Development Services - A new suite of activity, output and outcome activities
To fully reflect the scope of the work of this Business Unit which was under-represented in the previous KPI framework.
KPIs removed KPI
Reason
Inputs (Internal KPIs) - Recruitment: % of unfilled vacancies
In view of recent changes in organisational development functions within the Group, it is proposed to develop an expanded and improved set of people related KPIs over the coming weeks which will be included in quarterly monitoring reports when they are finalised.
Quality (Internal KPIs) - Suite of KPIs to measure stakeholder and customer satisfaction, Growth Hub accessibility, business penetration, account management, referrals and new services
These were part of the original KPI framework but performance has not been collated as the necessary mechanisms were not in place. It is proposed to revisit this set of indicators as the Internal Transformation Plan is implemented in 2016/17 which should create the mechanisms for measuring customer satisfaction, business penetration, account management and referrals from 2017/18.
Business Support & Business Finance - Businesses with improved performance
This was previously an ERDF contract measure which has now been dropped from the new programme. As an indicator it has limited value and the impact of the Group’s support for business is adequately measured through other indicators such as the volume of businesses assisted, jobs created and safeguarded, innovation measures, domestic and overseas sales and GVA generated.
Workforce Development – Employment - Work experience placements
This indicator is only measured through the Community Work Placements contract which is drawing to a close with referrals ending in March 2016.
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Key Performance Indicators and Targets 2016/17 (Continued) KPIs amended KPI
Reason
Business Support & Business Finance Businesses receiving information, diagnostic and brokerage support (note: same change made under Internationalisation & Marketing in respect of international trade advice)
Previously titled “Standard Business Assists”. New title reflects new ERDF contractual indicator but this measure is still based on lower level support, albeit it now requires a minimum of 3 hours support when previously there was no threshold, as opposed to the main business support measure (see below) which is of greater intensity with a minimum of 12 hours support.
Businesses receiving support (note: same change Previously titled “Businesses Assisted to Improve Their Performance”. made under Internationalisation & Marketing in respect of international trade advice) New title reflects new ERDF programme but this measure is otherwise unchanged and reflects a higher intensity (minimum 12 hours) of Businesses supported to introduce new to firm support. and new to market products Previously titled “Innovation Active Businesses”. New title reflects new UK inward investment project and jobs ERDF programme but supporting definition is essentially unaltered. pipeline (note: same change made under Definition amended to become a measure of projects/jobs added to Internationalisation & Marketing in respect of FDI) the pipeline in period rather than a measure of the size of the pipeline at a point in time. This is a better measure of activity and performance. Internationalisation & Marketing Media visits hosted Business to Business engagements Social media engagements
Previously titled “Media Engagements”. Minor change to reflect true nature of the activity. Definition broadened to include all Marketing Manchester engagements with business including tourism industry, MIPIM, sector activity and Ambassador business introductions. This change ensures that all core activity is captured in KPI reporting. Re-defined to specifically cover twitter impressions, facebook reach and blog views.
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