This document summarizes a presentation given by John Knight of iESE on local authority transformation. iESE is a social enterprise focused on transformation, innovation, and efficiency in local government. The presentation outlines iESE's approach using their 5D framework involving defining the purpose, understanding customers, empowering staff, and transition planning. It then provides an example of their whole council transformation work with Ryedale District Council, which engaged staff, gained customer insight, and realigned resources to identify savings of £1 million immediately and a further £1 million, achieving payback within 3 months.

1. www.iese.org.uk
Local Authority Transformation
Models – Whole Council
Approaches to Transformation
John Knight – Principal Consultant, iESE
6 December 2016

2. About iESE
The first local government social enterprise
delivered more than £1billion in savings
better services, lower costs
transformation, innovation, change, efficiency
Local government owned
by the sector, for the sector

3. Who’s spending Britain’s Billions?
… rolled out a template called an “operating model
assessment” across numerous councils, pocketing
more than £5m.
… risk and reward.
… land and expand.

4. iESE are on a mission
Working to help the public sector sustainably
transform itself

5. Change through ‘new’ technology
In total the project requires a capital budget of £3,372,000 and a
revenue budget of £1,264,500 in year 1 and £2,235,500 in year 2, with
an ongoing revenue expenditure increase of £200,000 per year to
support the new operating model.
… will contribute £1.75M per annum to the Council’s Efficiency Target.
This is an “Invest to Save” project with payback period for the
investment of six years.
By the time the project goes live, with lost opportunity costs, it will have
cost around £10M.

6. Payback - the graph of gullibility

7. It doesn’t have to be this way
• Start – by stopping
• Start at the beginning – not the middle or the end
• Start with your purpose – what is the point of you?
• Start with your customers – do what they value,
not what you think they need?
• Start with the question - not the answer
• Start with your people – let them stand back and
think

8. The iESE 5D framework

9. Payback - the graph of gullibility

10. Using the 5D Framework

11. What delivers transformational
change?
• Technology?
• Systems?
• Structure?
• These enable change.
People deliver change. Get the people right and the
rest will follow.

12. Starting with the people - a new
culture through behaviour change

13. How to get the change

14. How people change happens – the
three magic ingredients
• People have the skill, capability and competence
to be able to change
• People have the right motivations and will to do
things differently
• People are given the right environment and
opportunities to fulfil the change

15. 5D in practice

16. Whole organisation transformation
• Ryedale District Council
• Small, very rural district
• Successful and passionate
• Operating budget of only c.£6M
• Already saved c.£4M over last few years
• Needed to save a minimum of c.£1.4M further
• Maintain sustainability and thrive
• Towards 2020 programme

17. Whole organisation transformation
Describe Define Design Deliver Develop
Dec to
March
Mandate
for Change
April to
June
July to
Sept
Oct to
Dec
Blueprint Operating
Model
Ongoing
Transition
Plan
Go
Live

18. The outcome
• Engagement and skills transfer
• Customer insight
• No assumptions
• Focus on ‘doing what matters’
• Fit for the future, assessment and development
• Resources and assets align for future need
• Release of £1M immediately
• Further £1M identified
• Payback within 3 months of go live

19. Thank you
For more information or for a conversation:
john.knight@iese.org.uk
www.iese.org.uk