Agenda item

ORDERED that Executive:

 

1.    Approve in principle the emerging target operating model;

2.    Approve the continued development and refinement of the proposed target operating model and its intended direction of travel.

 

AGREED that Executive notes the next steps required to implement the target operating model and develop supporting operational strategies.

 

 

 

The Mayor submitted a report for Executive consideration. The report sought to articulate how the activity of the organisation would be aligned to ensure an integrated and cohesive approach. The report also expressed the Council’s ambitions for its future within a target operating model for Middlesbrough which would support improved outcomes and financial stability.

 

The report sought Executive support for the principles of the model and consent to continue with its development, enabling the Council to reset and outlined the intended approach in developing the supporting strategies which would support transformation of the Council and bring the target operating model to life.

 

The model was linked to the Council Plan which set out the Council’s ambitions across 2024-27 as well as outlining the Mayor’s vision for Middlesbrough and the Council’s four key priorities. Those priorities were detailed in the report. The vision for Middlesbrough was a thriving, healthier, safer, and more ambitious place where people wanted to live, work, invest and visit. The Council would support residents to live fulfilling lives, to ensure that Middlesbrough’s communities thrived.

 

In the Council Plan 2024-27, the Mayor set out his ambition to recover, reset and deliver for the people of Middlesbrough and so the four priorities of the Council Plan 2024-27 focussed on the future wellbeing of Middlesbrough’s communities, and which also provided a crucial foundation for the Councils’ Transformation Programme.

 

The Council’s values were at the heart of everything the Council did. They were a critical element of its strategy to create a brighter future for Middlesbrough, and the foundation for how the Council operated, interacted, and made decisions.

 

From creative ideas, to working collaboratively within the organisation and with external agencies, to being passionate about doing things better - we can make a real difference to the people and place we serve.

 

The proposed operating model was illustrated in the report and further detailed in Appendix 1. It would guide how Council operations would be further defined to both enable the delivery of the Council’s ‘Recover, Reset, Deliver’ Transformation Programme, as well as determine its future target operating state, as focus shifted to continuous improvement and an improved organisational culture through its four layered approach.

 

Although not unique, Middlesbrough Council had experienced significant and protracted funding cuts from Central Government, with a 46% drop in one decade alone, whilst demand on services coupled with costs for their delivery had risen exponentially.

 

This pressure had driven the Council’s need to modernise the way it delivered services and engaged with the community. New approaches, utilising emerging technologies, were required to reduce costs and improve outcomes for residents to ensure that services were sustainable and that balanced budgets were achieved into the long term.

 

ORDERED that Executive:

 

1.    Approve in principle the emerging target operating model;

2.    Approve the continued development and refinement of the proposed target operating model and its intended direction of travel.

AGREED that Executive notes the next steps required to implement the target operating model and develop supporting operational strategies.

 

OPTIONS

 

Don’t adopt the proposed Target Operating Model

 

This would have resulted in a business-as-usual approach for Middlesbrough Council. It would not have allowed the Councill to capitalise upon the array of available opportunities for cultural transformation for the both the organisation and residents. The potential to collaborate more broadly and efficiently with partners could also be lost. Departmental structures with vertical lines of reporting would remain and the opportunities to build financial resilience could stagnate.

 

Adopt a portion / elements of the model 

 

There is scope to adopt some elements of the model whilst redesigning others, however this would have delayed implementation and could have resulted in a disjointed and ineffective delivery in the interim. This would present a risk to the long-term credibility and understanding of the model and its outcomes for both staff and residents. Consequently, this could have presented financial and reputational damage to the Council and decrease standards in service delivery.

 

Redevelop the model

 

There was scope for the Target Operating Model to be redeveloped in its entirety from its current state. However, given that the proposal was for the Target Operating Model to be delivered in a phased approach which allowed for continual evaluation, to ensure it was always fit for purpose, this option was not proposed as the preferred option. Rather, it was proposed that the current model could be taken forward and enhanced in consultation with staff and stakeholders.

 

REASONS

 

The proposed target operating model was essential for establishing the optimum management and staffing structure and effective processes. It also presented an opportunity to further support the Council’s Transformation Programme. It would do this whilst setting out the roadmap for the Council we want to be and how the Council gets there, delivering better outcomes for residents from a lower cost base.

 

This model would see the Council become ever more focused on the needs of our customers, moving us closer to our communities and helping deliver better outcomes. Our services would be designed around the needs of residents, businesses, and visitors. Services and teams from across the Council would work smarter together for the good of the town.

 

The model presented the Council with increased opportunities for redesigning service delivery in a way that was cohesive, targeted, efficient, impactful, and cost-effective. There was scope for this to occur as implementation of target operating model would not be a one-time change but rather phased, allowing for ongoing evaluation and adjustment to ensure certainty in delivery.

 

The flexible approach of the model would build confidence amongst the Council’s stakeholders that Middlesbrough Council was a Council that was fit for the future and responsive to the needs of its communities.

 

The organic nature of this model would enable development of further supporting operational strategies alongside the phased implementation of the target operating model, given the integrity of the model and synergy between strategies, as the model evolves over time.