/CKWCB-12-162_Commissioning_Supp

DATE OF MEETING: 3 July 2012

Agenda Item: 14 Enclosure: CKWCB/12/162 Category of Paper Tick() Decision and Approval

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Position statement

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Responsible Director:

Discussion

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Alison Hughes, Interim Managing Director

Information

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Paper Author:

FOI Status:

Rachel Spilsbury, Project Manager

Open

Executive Summary:

The purpose of this report is to update the cluster boards on progress and recent developments for West Yorkshire Commissioning Support Services (WYCSS) and outline key next steps for the development of the organisation.

Paper Title: Commissioning Support Services Update

WYCSS has successfully passed through Checkpoint 2 of the assurance process and is now preparing for the final stage of authorisation Checkpoint 3 at the end of August 2012.

Key areas of progress and recent developments covered in the report include: MD national recruitment / assessment process Staff engagement CCG engagement Staff assignments / appointments ‘At Scale Services’ submission Business Development Unit – Feedback from Checkpoint 2 Key next steps to ensure WYCSS develops at sufficient pace and progresses successfully through Checkpoint 3 include: Designing the organisation structure and assigning / appointing to roles

Agreeing a set up budget and delegated limits of authority Negotiating SLAs with CCGs Developing the Full Business Plan Designing and putting in place the operating model so that WYCSS is ready to launch on 1st October 2012

Outcome of Equality Impact Assessment:

The Equality Impact Assessment will be carried out on the overarching transition programme.

Sub Group/Committee:

WYCSS Joint Committee

Recommendation (s):

It is recommended the Airedale, Bradford and Leeds and Calderdale, Kirklees and Wakefield PCT Cluster Boards: i) ii)

iii)

note progress / recent developments for WYCSS; and note the next steps for developing the organisation and progressing towards Checkpoint 3; and approve the proposed set up budget WYCSS.

1.0

Purpose of Report The purpose of this report is to update the cluster boards on progress and recent developments for West Yorkshire Commissioning Support Services (WYCSS), and to outline key next steps for the development of the organisation.

2.0

Detail WYCSS has successfully passed through Checkpoint 2 and is now working towards the final stage of authorisation Checkpoint 3 at the end of August 2012.

Key areas of progress / recent developments are as follows: 2.1MD national recruitment / assessment process The national process for recruitment of CSS Managing Directors has taken place in June 2012. There are four stages to the process which is being run by Penna who are a leading recruitment consultancy for executive appointments – application via CV and covering letter; telephone interview; assessment centre; and final interview by a panel chaired by Dame Barbara Hakin. Alison Hughes, Interim Managing Director for WYCSS has achieved a successful outcome for the first three stages and is awaiting the outcome of the final interview expected by mid-July.

2.2 Staff engagement Two successful ‘Open Space’ staff engagement events took place on the 21 st and 28th May. These ‘Open Space’ events enabled staff to shape the agenda for the day, contribute their ideas and lead workshops covering topics of their choice to facilitate group discussion. 334 staff attended these events and they have yielded a rich source of valuable information, positive suggestions, feedback and ideas from staff. We are analysing the output from the events and will be feeding this into the development plan for our organisation. This has helped to create a step change in the degree to which staff feel engaged in developing WYCSS. In addition, Alison Hughes now writes a ‘blog’ to keep staff updated on her latest thoughts and reflections, and we are also sharing monthly newsletters with staff.

2.3 CCG Engagement Alison Hughes has met with all CCG chairs, accountable officers and has attended most of the CCG executive team meetings.

Workshops with each of the CCGs were held in May 2012 focusing on understanding the ‘order book’. This involved developing a breakdown of the commissioning support services, functions and tasks that will need to be carried out to support the CCGs, and working with them to confirm which they intend to deliver themselves versus those that they are looking buy. This has enabled us to develop a more detailed granular picture of the requirements for commissioning support. We are using this information to inform the development of models of delivery and structures for WYCSS. 2.4 Staff assignment / appointment

Following the consultation and assignment process we have now assigned two staff to the divisional leads roles – Jane Westmoreland, Associate Director of Corporate Services for NHS Leeds has been assigned to the Interim Commercial Divisional Lead role; and Kevin Gallacher, Associate Director of Contracting for NHS Leeds has been assigned to the Interim Operations Divisional Lead role. We were unable to assign to the Chief Finance Officer (CFO) role and the Business Support Services Divisional Lead role. Interim arrangements for the Chief Finance Officer role will continue with Jonathan Molyneux leading the financial aspects for WYCSS and covering the CFO role on a temporary basis. The Interim Business Support Services Divisional Lead role is being advertised on NHS Jobs and we are aiming to fill this role by the end of June 2012/early July 2012.

We have also recently advertised four Client Services Manager roles on an interim basis. These roles are critical to managing the relationship with each of the CCGs, understanding their requirements and ensuring that we are delivering to meet their needs. Each CCG will have a named Client Services Manager and we envisage that these four individuals will operate on geographical footprints covering Leeds, Bradford and Airedale, Calderdale and Huddersfield, and Wakefield and North Kirklees. We are expecting to interview for these assignment opportunities w/c 2 July 2012.

2.5 At Scale Services submission As part of the assurance process for CSS we were required to complete a submission for ‘at scale’ services by the 8th June 2012. This relates to services that we plan to provide on a wider scale than West Yorkshire and business support services (sometimes referred to as ‘back office’ functions).

For ‘at scale’ services we were required to indicate whether we intend to provide services on wider scale than West Yorkshire for Healthcare Procurement and Business Intelligence.

We have indicated that we do not intend to be a provider of Healthcare Procurement.

Our preferred model of delivery for this service will be to partner or sub-contract with another CSS. A proposal has been submitted for Business Intelligence (BI) working in partnership with South Yorkshire and Bassetlaw Commissioning Support Services to deliver BI at scale for the provision of a Data Management and Integration Centre (DMIC) for the populations of West and South Yorkshire. Nationally the expectation is that there will be between 6 and 10 centres nationally providing DMIC at scale. We are awaiting feedback on our proposal. Further work is required to understand the preferred model of delivery for Business Intelligence, particularly to understand the extent to which we would deliver the DMIC element of this service internally versus partnership arrangements with commercial sector suppliers or other CSSs. From a CCG perspective, Business Intelligence is a critical component of their commissioning support requirements and we must be able to deliver a service that is locally responsive to meet their needs.

More recently there has been guidance issued for the development of communications and engagement services. Following the nation-wide shared service for communications and engagement not passing Checkpoint 2, the onus is on local CSSs to define their models of delivery for this service. Our preferred model is to provide this service on a local delivery model through CSS staff working directly with CCGs, but

working with a network of other CSSs across the north east of England to develop resilience (such as provision of an out of hours media handling service, do once campaigns etc.). The partnership arrangement through the north east of England CSSs would also extend to support us in building new opportunities with new customers such as the NHSCB and other national health organisations. This piece of work is being explored further and we are seeking clarity from the NHSCB about its requirements in the future.

2.6 Business Development Unit – Feedback from Checkpoint 2 We recently met with a representative of the Business Development Unit to discuss feedback from the Checkpoint 2 assessment and development plans for Checkpoint 3.

This re-affirmed our understanding of the areas where development is required and we will ensure that these are reflected in our plan to achieve Checkpoint 3.

3.0

Next Steps Key next steps to ensure that we develop at sufficient pace and progress successfully through Checkpoint 3 include: 3.1Designing the organisation structure and assigning / appointing to roles We are now designing the organisation structure below the divisional lead roles, based on our understanding of CCG requirements. We plan to develop a draft structure by July 2012. We will then assign and / or appoint staff into these roles in line with national HR guidance and local policies.

3.2 Joint Committee Following approval at the last cluster Board meetings to establish a joint committee for WYCSS subject to agreed revisions to the terms of reference, we are now putting in place a schedule of meetings for the remainder of the year until March 2013.

3.3 Agreeing a set up budget The development of WYCSS as a commercially viable organisation has in part been funded through existing budgets. As the plans progress to create and implement the new organisation, within very tight deadlines, a number of additional areas of expenditure have been identified. A programme budget has therefore been prepared and presented to the last Programme Board and summary of the main areas of expenditure are set out below. This includes roles where staff were not available to transfer from within the five host PCT’s and specialist support areas such as streamlining systems and developing the costing and pricing models. £K Additional Roles Specialist Support

344 60

Business and Organisation Development

245

Development/Standardisation of Systems

300

Marketing Other TOTAL

51 100 1100

It was noted that this was an estimate of the potential costs at this stage and there is a risk that further costs may be incurred once the implications of the workforce strategy and emerging guidance, including additional requirements, are understood.

The Programme Board, which included the two Cluster DoF’s also recommended that the WYCSS Managing Director should be added as a Director level authorised signatory, enabling them to commit expenditure up to £100 k in respect of the programme budget. Any expenditure over that limit would be approved by the CKW DoF and or CE in accordance with existing policies.

The expenditure will be hosted and reported on by Kirklees PCT and will be charged/split equally between the two Clusters.

3.4Negotiating SLAs with the CCGs Following the engagement with CCGs to understand the ‘order book’ this needs to be translated into a service level agreement (SLA) with each CCG. The intention is to develop draft ‘heads of terms’ for the SLA by the end of June with a view to negotiating and agreeing draft SLAs by the end of July including service specifications and pricing.

We will also need to put in place a mechanism to allow for changes and further iterations as we move towards services being fully operational by April 2013.

3.5 Developing the Full Business Plan A key piece of work to undertake over the next two months is the development of the Full Business Plan. We are awaiting guidance on Checkpoint 3 but we anticipate that a substantial amount of detail will be required. We are currently scoping the likely requirements and identifying leads for each aspect of the plan. This will require additional resources for external support to assist with the development of the plan. This is included within the proposal for a set up budget for WYCSS (see 4.2.1 above). We will also apply a formal programme management approach to ensure that we deliver to the required timescales.

3.6Designing and putting in place the operating model so that WYCSS is ready to launch on 1st October 2012 WYCSS will be ‘launched’ to operate in shadow form on the 1st October 2012. Once the structure of WYCSS is agreed and we have staff assigned / appointed to roles we will put in place the operating model to enable us to launch on the 1st October. Following the launch there will need to be a process of continual review and feedback through engagement with CCGs to ensure the operating model is refined on an ongoing basis so that we are continually reflecting customer need in our model of delivery.

4.0

Recommendations It is recommended the Board: i) ii) iii)

note progress / recent developments for WYCSS; and note the next steps for developing the organisation and progressing towards Checkpoint 3; and approve the proposed set up budget for WYCSS and delegated limits of authority