one council commissioning framework · kingston council has a commissioning and performance...

ANNEX 1 TO APPENDIX I

One Council

Commissioning Framework

Commissioning is about achieving agreed outcomes by deciding what service is needed, how it should be delivered, and which public, private or third sector organisation should deliver within effective use of resources


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Royal Borough of Kingston

Commissioning Framework

Contents

Introduction

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Section 1: Commissioning Standards 4

Section 2: Kingston Definition of Commissioning Definition of Commissioning, Re-commissioning and Decommissioning The commissioning cycle Why decommission?

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Section 3: Levels / types of Commissioning The Lead Commissioner Role

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Section 4: Governance of Commissioning Structure of Joint Commissioning Arrangements in Kingston Commissioning & Performance Management Unit Who Commissions in Kingston?

11 11 12 12

Section 5: Specific Guidance on the Commissioning Cycle Analyse Plan Do Review

13 13 14 16 17

Glossary 20


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Introduction The vision for Kingston’s Commissioning and Performance Management is to:

“Improve outcomes by strengthening the linkage between strategic planning, commissioning activity and performance management”.

Commissioning and performance management is about;

• Improving outcomes for Kingston residents and visitors.

• Using resources effectively, achieving value for money and increased efficiency

• Using good performance management processes to drive activity

• Matching resources to agreed priority areas, where activity is most needed

• Being more responsive to internal and external customer needs (de/re/commissioning)

• Being more innovative and achieve smarter working

• Using expertise wherever it is located e.g.; using provider knowledge to shape services

• Ensuring a level playing field, even handedness in choosing in house or external providers; use of consistent commissioning standards

• Developing a One Council commissioning approach; new policy and process

• Ensuring the new commissioning approach enables RBK to work more consistently with its partners through the Partnership Delivery Boards

Kingston Council has a Commissioning and Performance Management Unit that embraces the full spectrum of commissioning activity including strategic planning, procurement and performance management. This framework applies to Kingston Council Commissioning activity and any Joint Commissioning carried out with partners. The Unit provides support and challenge to the commissioning process across the whole of RBK’s activities, including those that involve cooperation with its partners outside of the local authority itself. Performance Management activity is supported by new ICT systems. This framework is intended to provide guidance to staff to ensure that commissioning decisions take place within a wider strategic context and deliver services in a co-ordinated, innovative way by focusing on outcomes. This framework applies to all council activities.


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Section 1: Commissioning Standards Commissioning is about achieving best outcomes and this is most effective when partners work to a common set of standards. The more external providers are used and the more commissioning is delegated, the more important it is to have agreed core standards to ensure consistency and equity. This also ensures that Commissioners are able to demonstrate consistency for providers from different sectors to compete for work. The Council has agreed to adopt the following set of standards and these should form the minimum requirements when specifying a service and choosing a provider. It is essential that all services that are commissioned meet these standards. Commissioners should therefore ensure that these are included in specifications and providers must be able to demonstrate they can comply with the standards. Specific services will have additional standards which may be legislative or based on local policy and practice.

All Services 1. are focused on residents and visitors to Kingston with evidence that where appropriate

they are able to participate in (i) development of services (ii) monitoring the effectiveness of services (iii) identifying the need for changes to services and helping to specify and

monitor the delivery of services.

2. directly contribute to improving outcomes for residents and visitors to Kingston either through universal or targeted services.

3. provide performance management data in line with local and national requirements, developing appropriate ways to measure and demonstrate outcomes, and implementing evidence-based practices.

4. demonstrate appropriate safeguarding practices to ensure, where relevant, all staff delivering services are CRB checked and health and safety requirements are followed.

5. comply with appropriate Workforce Development Standards, including - Competent and skilled workforce, qualifications and training - Maintain knowledge - Induction - Supervision, 1:1, Clinical Governance where appropriate

6. collect, share and pass on information regarding need to the lead commissioner

7. must ensure both provider and commissioner are kept informed of changing

requirements / statutory / national agenda.

8. demonstrate flexibility to meet emerging needs by consistently monitoring, reviewing and evaluating services to help redesign and improve the service

9. will be focussed on meeting locally identified need (although not always within a locality based model)


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10. demonstrate efficient use of resources and sound financial management in delivering services

11. Have appropriate risk management and business continuity measures in place

12. work in partnership with other agencies where appropriate and recognise their own initiatives / parameters and how they link to others

13. demonstrate open & honest communication and flexibility to work in an integrated way from planning to delivery

14. promote fairness and equity of access and opportunity for all residents and visitors irrespective of ethnicity, disability, sexual orientation, gender, age, religion and belief (see below)

15. ensure that diversity policies are in place for: (i) workforce (ii) infrastructure (e.g. access in appropriate places, equality, timeliness/buildings)

16. contribute to appropriate Council ethical policies including sustainability, energy efficiency and health

All commissioners must complete an initial Equalities Impact screening assessment at the start of the process. Commissioners should consult with their Equalities advisor if they are not clear when to carry out an EQIA. In addition commissioners should review equalities at each step of the process and take action as necessary to address any potential equalities issues.


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Section 2: Kingston Definition of Commissioning Commissioning is about achieving agreed outcomes by deciding what service is needed, how it should be delivered, and which public, private or third sector organisation should deliver within effective use of resources

Decommissioning is the process of planning and managing a reduction or cessation in service

activity or terminating a contract in line with commissioning objectives.

Re-commissioning Commissioning is a cyclical process, and one option is to re-commission a service when it ends and it is a good opportunity to review the service, look again at outcomes, and re-design where necessary. A service can be re-commissioned if it is the same service, but from a different provider, or can be redesigned to improve outcomes (service needs may have changed through time).

Joint commissioning is where a number of agencies carry out commissioning together.

The Commissioning Cycle Commissioning is a cyclical process. This framework provides support for all aspects of Commissioning, from the first stages of data collection and needs analysis, through the stages of planning services and engaging with the market, right through to reviewing the impact of decisions taken upon service users. The diagram on page 7 shows Kingston’s Commissioning Cycle. Commissioners in Kingston can refer to this framework for advice and support for each of the nine steps of the cycle (see Section 5) Analyse Look at outcomes for service users, residents & public This is about setting priorities and being clear about the overall needs of residents and visitors and where services are meeting those needs and where they are not. Some outcomes are related to national targets and some will be looked at locally. Look at particular groups of service users, residents & public As we look at the overall picture, we can develop needs analysis for particular groups of service users, residents & the public. This is where we identify levels of additional need: universal, targeted and complex needs. Develop needs assessment with user and staff views This involves using data and consultation to develop an integrated needs assessment. This includes examining the range of services required. This must involve gaining a picture ‘on the ground’ using the views of service users, residents and the public and all stakeholders (including providers) and not just existing service users but also potential users. Plan Identify resources and set priorities From the needs analysis, it then becomes a task to look at what services are currently available, who accesses them, and what are the main methods of accessing the services This is an approach to agree jointly the priority areas, and what resources are already available and what resources will be needed.


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Commissioning cycle

Plan pattern of services to meet service outcomes This involves looking at specifying and planning the pattern of service which is most likely to secure priority outcomes in line with commissioning standards. Particular emphasis will be on five shaping principles. It will also look again at what is currently available and whether this is right to deliver the priority outcomes. The user must be at the centre of the service delivery and the pattern should be planned so it is sustainable. At this stage, consideration may be made to a multi-agency or joint approach. Do Decide what procurement route provides best value This includes deciding about how the commissioning should take place, whether jointly or through a single agency, and whether from internal or external provision. It therefore includes the concept of procurement (identifying need, shaping the market, specifying, procuring, and monitoring). Robust procurement procedures are essential not only to deliver outcomes effectively, but to ensure legal compliance. Commission (including the use of pooled resources) This is about agreeing to commission which could include joint commissioning through the use of pooling budgets or resources, or using the procurement or grant routes. This stage can be a catalyst for real change, removing barriers of funding holding ‘power’, disjointed planning cycles, and the tensions of ‘who should pay’. This will need strong governance and an agreement framework.


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Review Plan for workforce and market development This is about engaging with markets (including local and voluntary providers) by involving them in service re-design and making use of available expertise. Workforce development should look at how skills can be assessed for commissioners and what structures and processes should be in place to improve experience and capability. A key part of this is developing provider skills which may support multi agency working and developing the Voluntary Sector. Monitor and review services and process This looks at whether services and planning and commissioning processes are working to deliver the goals set out for them. It can be the use of internal and external monitoring/benchmarking and inspections to assess whether outcomes are being delivered and whether there is effective use of resources. Effective monitoring will inform the next planning cycle and ensure that future services are meeting desired outcomes, at which point commissioners may need to look at the possible re-design or decommissioning of services. Why Decommission? Decommissioning can be a natural consequence of following a robust commissioning process and done as a result of one or more of the following:

• Time, which often results in change of need

As needs change through time, so services and activities that have been commissioned will also need to change, This may result in decommissioning a service or at the very least redesigning it. The Service Level Agreements or contract terms may have flexibility built in which will allow decommissioning or redesign of the service without termination of the contract (an important consideration when designing a service). Time could also be related to a particular funding stream which needs to be spent by a given date.

• Budget

If there are budgetary constraints, there may be a need to prioritise services and decommission or reduce some activities.

• Inadequate service provision/poor outcomes

If a provider does not comply with the specification or service level agreement, there may be a need to terminate the contract, which will result in decommissioning (or de-mobilisation) possibly with some redesign for further commissioning. Inadequate service provision could also result from a poorly designed service level agreement or specification by commissioners and a lack of understanding of expectations by the provider.

• Politics

A change in local or national political emphasis could result in the request for an activity to be decommissioned. This may be affected, in the case of a contract with a third party, by the termination clause and the length of the contract. However, good commissioning should be based on outcomes for the user, and therefore political decisions must take this into account when deciding to decommission.

EQIA’s should be carried out when deciding to decommission.


Section 3: Levels / types of Commissioning Commissioning is carried out at different levels. The concept of multi-level commissioning illustrates how different approaches to commissioning take place and at what level it is most appropriate to carry out commissioning activity. Kingston adopts a whole system approach to multi-level commissioning – different levels of commissioning are interlinked and influence each other. The cycle takes place at each level (and sometimes through levels).

Commissioning Level

What is it? Examples

Regional/Sub-regional

• Across local authority boundaries through exisiting regional structures or new partnering arrangements.

• One partner can take the lead in the commissioning activity.

• It can provide economies of scale and shared costs

South London Consortium Connexions Information Advice & Guidance South London Waste Partnership London Contract Supply Group LASER

Strategic

• Overall strategy of commissioned services

• Linking outcomes to greater efficiencies

• Setting commissioning standards and a commissioning framework

• Establishing the commissioning system and processes

• Building capacity and market management

• Setting resources

• Performance Management and governance

Commissioning & Performance Management Unit Council Executive Strategic Leadership Team Partnership Delivery Boards Neighbourhood Committees

Operational • Commissioning at operational level

• Ensuring commissioning meets the strategic priorities

• Carrying out the commissioning cycle activities

• Can be targeted to a group, locality or service/team

Targeted groups: Integrated Disabled Children Service, Looked After Children, Adults supported in own home Cluster/locality: School clusters, neighbourhoods, those in geographical area affected by a new proposal such as road scheme. Service/Team: Respite service, youth centre, Meals on Wheels, Refuse and Recycling Collection team, Pension Fund Management team

Individual • Commissioning of services for the individual or personalised budgets

• Call off from larger contract to meet specific need

• Carries out commissioning cycle activities to deliver individual outcomes (activities will need to be proportionate to the size of the commissioning)

Family carer, service manager, independent brokerage, through direct payments, individual budgets and Budget Holding Lead Professionals


The Lead Commissioner Role Senior Managers in Kingston have responsibility to deliver outcomes within their budgetary responsibilities and are therefore designated as Lead Commissioners. Some activity will require cross-functional Commissioning groups and Lead Commissioners will have the responsibilty for allocating particular commissioning tasks within their areas, with the Commissioning & Performance Management Unit providing support, advice and challenge and scrutiny of Lead Commissioners and their Groups’ Commissioning Plans. Many Lead Commissioners also have dual role of service provision. It is at Lead Commissioner level (and within their service teams) that the expertise in service provision exists and operational commissioning activity takes place. Large complex commissioning activities can be set as a policy at the Strategic Level but will mostly be carried out by Lead Commissioners and their Operational Commissioning Groups. Commissioning activity will be monitored by the Commissioning Unit and commissioners and groups can contact the Unit for advice on identified commissioning need, commissioning levels and how commissioning should be carried out.


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Section 4: Governance for Commissioning This section sets out who commissions, and the structures that Kingston has put in place to ensure Commissioning is carried out to effectively deliver outcomes. In Kingston, there are a number of different groups tasked with delivering outcomes, from an overall strategic view to ‘ground-level’ commissioning activities.

Structure of Commissioning Arrangements in Kingston These arrangements have been put in place to deliver efficiencies through effective Commissioning and to put in place structures and support to assist Managers in delivering outcomes. There is also a need for a more strategic view of what to commission and what resources to be used. The following structure shows the governance arrangements for Commissioning in Kingston (note this is a simple diagrammatical representation and the final structure and governance will depend on other One Council projects and agreed future structure of the Council). For simplicity, the structure does not include Partnership Delivery Boards or Neighbourhoods, but it is assumed these will form part of the overarching governance and will be included in any final structure.

Strategic Leadership Team

Service areas

Lead Commissioners, Commissioning Groups, Service

Managers

Know - What works - Who is contributing? - What we can do - How does it fit? - What are the gaps?

Commissioning Unit

- Performance Management - Challenge - Problem identification and Solving - Training and Advice - Co-ordination and overview - Corporate commissioning - Commissioning Framework,

Standards and Principles

Business Infrastructure

Internal council

support services (subject to commissioning

challenge and process)

Council Executive


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Commissioning & Performance Management Unit The role of the Commissioning & Performance Management Unit is to provide support and guidance on the Commissioning steps, and set a framework to enable service managers and commissioning groups to commission services effectively. It will also be responsible for corporate commissioning and ensuring resources are deployed effectively by scrutinising and challenging commissioning plans and decisions. The Unit have responsibility to:

• Develop a commissioning framework setting policies and principles for effective commissioning

• Developing outcomes based accountability and a cost benefits analysis model

• Develop additional detailed frameworks and guidance, e.g. consultation, performance management, procurement, sustainability

• Support managers and groups by providing training and sharing best practice

• Challenge and evaluate commissioning proposals and provide benchmarking

• Scrutinise and evaluate monitoring

• Setting strategy for joint commissioning and integrating with other agencies

• Provide a focus for identifying relevant corporate policies and a gateway to specialist advice and support e.g. equalities, Healthy Kingston?

Membership of the Unit – who to go to for advice: To be populated with names/contact details of the unit

Decision Making Commissioners will need to be aware of their delegated authority to make commissioning decisions and whether reporting a decisions are made at Chief Officer, Director, Chief Executive, Neighborhood, or Executive level.

Who Commissions in Kingston? Those who may be involved in commissioning at different levels include:

• Senior Managers – acting as Lead Commissioners

• Regional and sub-regional groups

• Primary Care Trust

• Transport for London

• School Clusters

• GP Practice Based Commissioners

• Commissioning Groups

• Commissioning and Performance Management Unit

• Schools

• Service Managers

• Mult-agency teams

• Lead Professionals

• Individuals/families


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Section 5: Specific Guidance on the Commissioning Cycle The following is brief guidance on each section of the Commissioning Cycle. More detailed guidance and frameworks will be available from the Commissioning & Performance Management Unit and developed over time to support Commissioning activity. Links will be included and amended to specific underpinning policies and frameworks.

Analyse

1. Look at outcomes for service users, residents & public Are we achieving enough impact and changing outcomes fast enough? Aim to transform our services and outcomes, especially where outcomes are poor. If we keep doing some of the same things we will continue to get limited impact. Aim is to do fewer things better and connect with what works. What works is directly linked to the views of residents, service users, visitors. What works is what achieves a good long term outcome. Are we focused enough on the good longer term outcomes? In addition money is getting squeezed, so more cost benefit analysis is needed, and as a result priorities will shift. This means getting more serious about evaluation, testing out what works and where there is impact and learning more from other people. Looking at our data do we really know what is happening to residents, service users, visitors? What are we measuring and are we doing enough with the data we already have? We need to put more effort into the right things, where most impact can be made. Key Question: Where to invest and what kind of activity to focus on? Carry out Equalities Impact Screening and full EQIA (consult with Equalities advisor) Measuring trends is important so as to change the longer term trajectory. The key decision is knowing what to influence. People and systems tend towards establishing order, settled and tried ways of doing things, where if we are not careful there will not be enough innovation because we are not changing the parameters of what we are about. Outcome What is an outcome? Impact which can be sustained, on short, medium and longer term (e.g. health, development, well being, success). Output What is an output? Eg, % with five good GCSEs including English and maths Activity Activity is what they get, what interventions we make, services we provide Investment Investment is what we spend or use The planning sequence starts with outcomes 1. Outcome 2. Activity 3. Investment 4. Output


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2. Look at particular groups of service users, residents & public Consider impact on six equalities strands and review any EQIA. Borough Profile

http://www.kingston.gov.uk/information/nhoodhome/borough_profile_2007.htm Needs Analysis Services will carry out their own needs analysis which can build a picture of particular target groups but additional needs analysis may need to be done on particular service areas. The key is not to duplicate what we already know and use information that we already have.

Joint Strategic Needs Assessment (JSNA) The Joint Strategic Needs Assessment (JSNA) is a joint undertaking by the Directors of Public Health, Adult Social Services and Children’s Services. The JSNA is a continuous process that identifies current and future health and wellbeing needs in light of existing services, and informs future service planning and commissioning taking into account evidence of effectiveness.

3. Develop needs assessment with user, staff, partner and provider views Consider impact on six equalities strands and review any EQIA.

The Council’s Consultation website can be found here. It contains the consultation strategy and detailed guidance and a central database which aims to avoid duplication and enable greater collaborative working and information sharing. http://ts.kingston.gov.uk/directorates/chief_executives/consultations/default.aspx Service areas have particular forums and consultation networks and guidance which sit within the Council’s consultation strategy. There is also particular legislation regarding user involvement in service areas.

Plan

4. Identify Resources/Set Priorities How to identify funding for Commissioned Services

Are you authorised to spend an existing budget? Is it committed to continue existing services? Has a new budget been established to meet existing or new outcomes? Explore the funding options at an early stage Is external funding available (possibly through bidding process) and can/should this be re-directed to external sources of provision.


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The most important driver when deciding where funding is to come from is how will it improve outcomes? Ask the question – do we really need to do this activity, do we need the investment and does it have the right impact on outcomes? If the answer is no (or not sure) then it may be case of not doing the commissioning, or carrying out a re-design of service to make a better impact on outcomes, External Funding External grants are allocated to support a particular initiative but are increasingly able to be used flexibly to meet local priorities rather than the stated initiative. Budget managers should commit expenditure against new grant notifications only after considerations have been made on how the funding is to make an impact on agreed priority outcomes. Pooled Budgets Nationally, pooled budgets are increasingly seen as a key part of joint commissioning with Council partners such as Health. Such funding offers scope to combine and concentrate money effectively to shape local services to meet joint outcomes. Cost benefit analysis Cost benefit analysis tools (including Social Return on Investment) must be used to identify options available, at different costs and different returns on investment (social economic and capital). This will enable the commissioning process to identify which services and solutions will have the biggest impact on the community within effective resource management. Capital Investment Early consideration should be given to any potential capital investment which is needed as a result of the commissioning process. A business case is required to support any request for capital investment with priority given to initiatives that support ‘Invest to Save’ and the biggest impact on improving outcomes.

5. Plan Pattern of Services to Meet Service Outcomes This is looking again at outcomes, and specifying the service using provider expertise with service users at the centre either to specify a new service or re-design an existing one. Using five shaping principles: Prevention Personalisation, Choice & Control Local Settings Customer Focus Working with partners When reviewing a service (steps 8 and 9), providers should be engaged so that the market capacity can be increased and new innovative ways of delivering services should be planned. Ensure any planned service addresses impact and access on each equality strand. There are three broad approaches:


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Input – highly specific and defines exactly what is expected from providers – quantities, labour capital and materials and how to deliver it. This requires more technical expertise on commissioners and can be inflexible and unresponsive to changes Output – this defines performance on the types of activities and outputs – the standards. This allows for greater flexibility but still requires commissioner technical expertise to define how standards should be measured and there is no reference to impact. Outcome – this approach allows greatest flexibility and focuses on providers as experts in delivering services to meet outcomes. It allows them to be innovative in both the method of delivery and how they measure the results which have the impact on outcomes. Outcome specifications will become the most suitable model for the majority of Council services. Ensure that specifications refer to the Commissioning Standards and other required policies.

Do

6. Decide what procurement route provides best value Legislation and the Framework Kingston Council’s procurement framework enables commissioners to comply with the regulatory framework set out in both UK procurement regulations, and the EU regulations. The procurement framework for the Council includes Contract Standing Orders and Financial Regulations which give clear guidance on processes and governance. Non compliance with these frameworks could result in legal challenge and poor delivery of outcomes.

Lead commissioners will carry out procurement but the Commissioning & Performance Management Unit will offer procurement expertise and set the procurement framework: http://cm.kingston.gov.uk/intranet/procurementframework

Partnership Approach Kingston is moving away from traditional contracts which were adversarial and input based towards longer-term partnership relationships. These agreements are based on working together with in a spirit of partnership, with open and honest communication and sharing risk and rewards to deliver common goals.

Sustainable Procurement There is more to procurement than the lowest price and value is measured in many other ways including supporting local economies, environmental, social and impact on equalities. These considerations need to be applied along with impact assessments on any potential procurement activity.

7. Commission, including the use of Pooled Resources Contracts/Service Level Agreements

Contractual arrangements (or service level agreements) will need to be in place for commissioned activity. These set out the services required (the service specification) and the additional contractual terms and conditions which underpins the commissioned arrangements. The Council


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has a variety of pre-determined contract conditions which, used alongside service specifications, form the contracts/service level agreements. Some negotiation on terms and conditions are inevitable, but providers should be advised of contract terms early in the process. Negotiation on contract terms is not allowed in most OJEU procedures.

Pooling budgets Generally, one partner will be the lead and will engage in a contract or SLA with a provider on behalf of other partners. Underpinning pooled budget arrangements will be used in these instances. Delivery Prior to services being delivered, there will be a lead-in period of planning and this should form part of the commissioning timetable (including re-commissioning and decommissioning activity). Once services are being delivered, monitoring and management at early stages will ensure that the impacts on current and future outcomes are being achieved as expected. (See also step 9)

Review

8. Plan for Workforce & Market Development Development of Commissioning Skills

Managers across the Council have excellent service expertise but will need additional skills to enable them to be effective commissioners: Procurement, market analysis, service remodelling, financial management, legal awareness, negotiating, evaluation and data analysis, project management, leadership, understanding services, partnership working, human resources awareness, people skills. The need for training and development to improve commissioning is being recognised nationally and will be supported through the Commissioning & Performance Management Unit. However, much of the above skills are highly specific and technical and in most cases, support will be provided by the Unit, with Commissioners at different levels having different standards and levels of expertise. A whole-commissioning knowledge is, however, essential for any commissioning activity to be carried out. Workforce If your commissioning activity will result in de-commissioning or changing existing services it is important that the workforce implications are considered at any early stage (including implications on TUPE - Transfer of Undertakings (Protection of Employment) Regulations. It is important that sufficient time is allowed for meaningful consultation with affected staff and professional associations and unions. In most cases there are statutory consultation processes and timescales that we must comply with, and in all cases we would wish to ensure that there is compliance with good practice by ensuring sufficient time for meaningful dialogue about changes. Managing Markets To ensure that there is adequate and sustainable quality provision to be able to achieve outcomes, commissioners should use the following principles: 1. Involving market representatives (from private and voluntary sector) in governance and

planning


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2. Consulting potential providers well in advance of commissioning new services and involve them in setting priorities and shaping the service

3. Creating longer term flexible contracts to give providers more security and allow for greater investment

4. Helping share expertise and make markets more responsive 5. Avoiding conflicts of interest in close and transparent partnership working 6. Using the expertise of the markets to help design services 7. Enabling all potential providers to access markets 8. Attracting high quality providers 9. Actively encouraging larger contract providers to include smaller organisations including the

voluntary sector in delivering the contract 10. Where appropriate, committing to full cost recovery, funding overheads and sharing risk Role of the Voluntary Sector Kingston has adopted a Compact which sets out shared principles and undertakings to be followed in developing the relationship between statutory authorities and the voluntary sector. The Compact focuses on three areas: - Representation: influence on planning and policy - Service delivery including commissioning and procurement, and - Joint working and community development The new Compact will provide guidance and a detailed action plan on the areas to be developed and worked on by both statutory and voluntary sector partners. Good procurement practice in relation to the voluntary sector in particular, should comprise: - the choice of funding approach (grant or contract); - the process prior to awarding the grant or contract; - the basis for determining price; and - post award, the effective management of the working relationship.

9: Monitor & review services & processes “Performance Management can be defined as taking action in response to actual performances to make outcomes for users and the public better than they would otherwise be” I&DeA The Performance Management Framework This details how Performance is managed across the Council to measure the success of activity. Performance and success should be measured throughout the process and will help provide early indicators of when to change or stop activity. The method of measuring and recording information needs to be established, along with how that information will be collected and collated. Once extracted a process of review needs to be undertaken, and once reviewed the overall strategy of the piece of work or project needs to be considered – is the project or piece of work achieving what it needs to be successful in the strategic aims that have been set? This process can take place on an annual basis, however the process can occur within any period of time appropriate to the project, such as quarterly or six monthly. Interim reviews can take place at regular intervals if the process is undertaken on an annual (or less often) basis.


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It is expected that every piece of work undertaken within the Council has clearly identified measurable goals or milestones using appropriate tools such as SMART (Specific, Measurable, Achievable, Resource-based and Timely) objectives. Ensure that when monitoring performance, that indicators on Equalities are included, monitored and analysed, and constantly reviewed for impact. Statutory Performance Management Every year the Council undertakes ongoing performance management processes in accordance with local and national requirements. Projects or pieces of work that are commissioned need to be undertaken with a view to submitting returns to government departments to ensure we are achieving nationally set targets and to benchmark our performance against national indicators and other local authorities. These submissions are made at regular intervals throughout the year on an annual basis. Managing and Monitoring Contracts The main function of managing the service will therefore be carried out by the contractor themselves. However, it is important that commissioners have contracts management processes in place which compliment the contractor’s own management framework, and the performance management framework of the Council. It is important that commissioners are able to check that the contractor is meeting their contractual (and legal) obligations. Below are some examples of how contracts can be managed and monitored. - Feedback from service users (e.g. regular surveys, consultation events - Contracts Monitoring – usually a ‘tick box’ approach which can be very useful for some contract where there are particular legislative requirements e.g. around health and safety - Performance Indicators – regular reports from the Contractor - Budget monitoring (particularly where there is an open-book approach to the contract) - Operational meetings with the contractor - Strategic Partnership Boards, - Spot visits by managers to site Outcomes can be measured by looking at the following: - Records kept by contractor (including equality monitoring data) - Procedures and policies such as quality systems and CRB checks - Complaints statistics, incidents related to safeguarding - Performance indicators - Staffing information such as training records, and equalities data - Statutory Inspections - Risk management data - Survey data Re-Commissioning Commissioning is a cyclical process, and one option is to re-commission a service when it ends and it is a good opportunity to review the service, look again at outcomes, and re-design where necessary. A service can be re-commissioned if it is the same service, but from a different provider, or can be redesigned to improve outcomes (service needs may have changed through time).


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Glossary of Terms Assessment The collection and interpretation of data to determine an individuals need for health, personal and social care and support services, undertaken with the individual, his/her relatives or representatives and relevant professionals. Best Value (BV) A legal requirement of all authorities to make sure that they deliver value for money across their services. This is implemented by carrying out reviews, consultations and monitoring of BV performance indicators. Block Contract A contract which guarantees a given volume of business with the service provider, usually enabling the contractor to obtain a reduction in the unit cost of service provided. Capital Expenditure on the acquisition of land, premises (including new and refurbished), equipment and vehicles etc. Expenditure is regarded as capital if it is in excess of £5,000. Care Package A collective name for the service(s) a person can expect to receive following assessment. Carer A person providing care who is not employed to do so by an agency or organisation. A carer is often a relative or friend looking after someone at home who is frail or ill; the carer can be of any age. Care Management The process of meeting needs at an individual level which is sometimes known as micro-commissioning. Care Trusts A type of NHS body which combines NHS healthcare services and certain delegated functions from local authorities, including personal social services. Children’s Trust Children’s Trusts are organisational arrangements which bring together strategic planners from relevant sectors to identify where children and young people need outcomes to be improved in a local area and to plan services accordingly. Clinical Governance A national framework through which NHS bodies are accountable for continuously improving the quality and clinical effectiveness of the services they provide. Commissioning The process of specifying, securing and monitoring services to meet people’s needs at a strategic level. This applies to all services, whether they are provided by local authority, NHS, other public agencies or by the private or voluntary sectors. Consortium (or Buying Consortium) An arrangement to optimise buying power and make best use of scarce commissioning skills by aggregating the purchasing requirements of more than one public sector organisation.


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Contestability The process of ensuring that there is a viable market of alternative providers by reducing barriers to market entry and encouraging competition. Contract A mutual agreement enforceable by law. Contracting Putting the purchasing of services in a legally binding agreement. Continuing Care Healthcare, provided over a long period of time, to meet physical or mental health needs which have arisen as the result of disability, accident or illness. It can be provided in hospital or a person can be supported in their own home, or in residential or nursing homes. Decommissioning The process of planning and managing a reduction in service activity or terminating a contract in line with commissioning objectives. eProcurement Conducting procurement via electronic means i.e. internet, intranet or electronic data interchange (EDI). EQIA Equalities Impact Assessment. A is a process of analysing a proposed or existing service, strategy, policy, or project. The aim is to identify any effect or likely effect on different groups within the community. EQIAs remain the responsibility of the Council whether functions are provided in house or contracted out. EU European Union. Form of tender The document provided by the purchasing agency on which the service provider or supplier makes its formal offer. Independent sector An umbrella term for all non-statutory organisations delivering public care, including a wide range of private companies and voluntary organisations. Individual budgets Individual budgets bring together a variety of income streams from different public care agencies to provide a sum for an individual, who has control over the way it is spent to meet his or her care needs. Joint Commissioning The process in which two or more organisations act together to co-ordinate the commissioning of services, taking joint responsibility for the translation of strategy in to action. Joint Purchasing Two or more agencies co-ordinating the actual buying of services, generally within the contextt of joint commissioning. Local Area Agreements (LAA) A Local Area Agreement is a three-year agreement that sets out the priorities for a local area in certain policy fields as agreed between central government, the local authority and Local Strategic


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Partnership (LSP). The agreement is made up of outcomes, indicators and targets aimed at delivering a better quality of life for people through improving performance on a range of national and local priorities. Local Delivery Plan (LDP) A plan that every PCT prepares and agrees with its Strategic Health Authority (SHA) on how to invest its funds to meet its local and national targets and improve services. It allows PCTs to plan and budget for delivery of services over a three year period. Macro-commissioning The process of meeting needs at a strategic level for whole groups of service users and/or whole populations. Micro-commissioning The process of meeting needs at an individual level. OJEU Official Journal of the European Union, where all tenders must be advertised if over the EU thresholds (consult OJEU for current thresholds). Partnering A relationship between purchasers and providers of goods and services throughout the supply chain which is designed to maximise the effectiveness of each participants resource. Performance Indicators (PIs) Measures used to judge whether objectives have been met. Various PIs exist including Best Value, Supporting People, Audit Commission, NHS and locally set PIs. Practice based Commissioning (PbC) Practice based commissioning gives GPs direct responsibility for managing the funds that the PCT has to pay for hospital and other care for the GP practice population. Primary care The collective term for all services which are people’s first point of contact with the NHS. Primary Care Trusts (PCT) Locally managed free-standing primary care NHS bodies, responsible for delivering health care and health improvements to local residents. They commission or directly provide a range of community health services as part of their functions. Procurement The process of acquiring goods, works and services, covering both acquisition from third parties and from in-house providers. Providers Any person, group of people or organisation supplying goods or services. Providers may be in the statutory or non-statutory sectors. Public Service Agreement (PSA) An agreement negotiated between central government and a local authority to deliver improved outcomes in return for greater freedom in the means of delivery, and financial incentives. It specifies how public funds will be used to ensure value for money. Purchasing The process of securing or buying services.


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Purchaser A budget-holder who contracts to buy a service from a provider. Service Level Agreement (SLAs) Written undertakings agreed between purchasing and providing agencies. Spot purchasing A method of purchasing services for individuals to achieve the most flexible responses to an individual’s needs. Tender A formal offer to provide services as a response to a specification, usually for a stated price or in accordance with a schedule of stated prices. Tenderer A person or body that has, or been invited to, submit a tender. Third sector Includes the full range of non-public, non-private organisations which are non-governmental and “value-driven”; that is, motivated by the desire to further social, environmental or cultural objectives rather than to make a profit. Universal services Services provided for the whole community, including education and health, housing, leisure facilities and transport. Voluntary and community sector An “umbrella term”, referring to registered charities as well as non-charitable non-profit organisations, associations, self-help groups and community groups, which operate on a non-profit making basis, to provide help and support to the group of people they exist to serve. They may be local or national and they may employ staff or depend entirely on volunteers. White Paper Documents produced by the government setting out details of future policy on a particular subject.