BFI findings

Strategic Management

2.1 Local authorities should provide a fast and accurate benefits service to customers. Staff and managers also need to understand their roles within the broader context of the local authority’s overall strategies and responsibilities. This will help achieve the service’s objectives and contribute to corporate objectives, for example, neighbourhood renewal, alleviating poverty, preventing homelessness and helping people into work.

The Vision

2.2 Chelmsford Borough Council was at Standard in this element. It had a clear Vision Statement which was endorsed by Members in November 2003. This document set out the Benefits service’s key aim as:

To pay the right amount of benefit to people who are entitled to it as quickly as possible.

2.3 In meeting this aim, the Benefits service’s presiding principles were to provide a service that:

· is focused on and responsive to the needs of Chelmsford’s residents

· is both quick and accurate in the payment of HB and CTB

· protects public funds and maximises the council’s income.

2.4 The Vision Statement comprehensively expressed Chelmsford Borough Council’s strategic vision and gave staff and managers a clear sense of direction, purpose and a focus for their work. The document covered:

· customer access

· social inclusion

· speed and accuracy of processing

· security and fraud

· helping people back to work

· supporting the provision of affordable housing

· protecting the council’s finances

· providing the resources necessary to realise the council’s aims

· ownership and monitoring of the Vision Statement.

Policy objectives

2.5 Authorities should support the strategic vision with high level policies and clear objectives for the Benefits service. Together these should:

· eliminate the need for senior managers to make recurring or routine decisions

· provide a systematic way of delegating operational decisions in a manner that will sustain consistency of approach and equity of service

· be linked to its high level strategic and business plans.

2.6 Chelmsford Borough Council was at Standard in this element. It had explicit strategic policies and objectives drawn directly from its Vision Statement that bridged the gap between the vision and the current position.

2.7 Strategic policies and objectives were reviewed as part of the annual planning cycle and were endorsed by Members. They included objectives to meet, over time, the full range of Performance Standards and specifically addressed areas that needed improvement, including the speed of processing benefit claims.

Operational planning

2.8 Operational planning ensures that resources are effectively managed and monitored to deliver service standards and performance targets.

2.9 An operational plan for administering HB and CTB effectively translates the vision, policies and objectives into practical ways of providing a service. At their best, plans will provide a basis for managing any changes that are required to improve the Benefits service.

2.10 Plans can only be effective if they are developed thoroughly, used, monitored and adapted to meet changing circumstances. Managers and staff need to be convinced that plans are realistic and achievable. If not, the organisation is less likely to succeed in achieving its vision.

2.11 Chelmsford Borough Council was not at Standard in this element because:

· it had no documented plan for clearing the backlog of claims

· it did not effectively monitor progress against its operational plans.

2.12 Chelmsford Borough Council produced a Business delivery plan in September 2003, covering 2003/04. This plan set out the key service objectives for the period and clearly showed how each objective linked to corporate plans.

2.13 The Business delivery plan also showed:

· what high level actions needed to be taken to achieve objectives

· who was responsible

· expected results

· key dates

· resources required and how the cost would be met

· stakeholder and customer consultation plans.

2.14 However, the authority did not regularly monitor this plan. Although progress was reported to Members, this was not done on a regular basis using a standard format. Additionally, no low-level operational plan existed showing how the backlog of claims would reduce over a period of time.

Recommendations

We recommend that Chelmsford Borough Council:

· produces a comprehensive operational plan detailing how it will reduce the backlog including: identification of current work outstanding identification of current resources identification of productivity projected intake of new claims projection of resources needed to clear current intake of work profile of reduction of backlog allocation of staff resources between backlog, new work and other tasks · monitors its Business delivery plan and reports progress to senior officers and Members on a regular basis, using a standard format.

Performance targets

2.15 Performance targets are required to underpin policy objectives and service standards. To achieve targets, it is vital that responsibility is given to managers for delivery against targets.

2.16 When setting their annual performance targets for HB and CTB administration, local authorities must ensure that all the nationally set Best Value performance indicators are incorporated as well as the requirements of their own local performance plans. This will give:

· staff a clear view of the desired outcome

· management clear accountability for providing effective and secure administration.

2.17 Chelmsford Borough Council was not at Standard in this element because targets set by the authority were not reflected in work programmes or key work objectives.

2.18 Chelmsford Borough Council included the following information in its Business delivery plan:

· performance achieved in the previous year

· national Best Value performance indicators

· local targets for 2003/04

· future local targets from 2004/05 to 2006/07.

2.19 Chelmsford Borough Council set targets that exceeded the upper quartile figures included in Performance Standards. For example, there were plans to exceed the 36-day new claims target by 2005/06. These targets are illustrated in Figure 2.1.

Fig. 2.1: Chelmsford Borough Council’s local targets
	Top quartile	Target 2004/05	Target 2005/06	Target 2006/07
New claims processing (days)	36	36	35	35

Source: Chelmsford Borough Council

2.20 Although Chelmsford Borough Council set targets for the Benefits service, these targets were not translated into targets for staff. There was also a lack of publicity advising staff what they needed to achieve.

Recommendations

We recommend that Chelmsford Borough Council:

· ensures that targets set by the authority are reflected in work programmes and key work objectives for staff · ensures that all Benefits service staff are aware of the targets set for the service.

Performance monitoring

2.21 The purpose of performance monitoring is to provide assurance to Members and senior officers that HB and CTB administration is effective and secure. It is important that Members and senior officers receive reports on performance against the Vision, objectives and plans.

2.22 Performance reporting to Members makes the accountability process transparent while performance monitoring can also encourage the development within the organisation of a culture of continuous improvement.

2.23 Chelmsford Borough Council was not at Standard in this element because it did not:

· use management information to provide regular reports to Members and interested third parties

· ensure that staff were aware of the ongoing levels of performance in their own functional areas.

2.24The authority told us that following the introduction of the document management system, it was unable to collect sufficient or accurate management information to monitor performance targets. This was due to functionality problems with the system. For example, the document management system did not give accurate information on the oldest claim outstanding and there was also a lack of understanding regarding the capabilities of the new system.

Recommendations

We recommend that Chelmsford Borough Council:

· resolves the problems with its IT supplier to ensure regular and accurate management information is available · ensures that regular reports are provided to Members and interested third parties to keep them informed of ongoing performance · ensures that staff are aware of their ongoing levels of performance by publicising management information.

Organisational structure

2.25 Organisational structure plays an important part in the performance of any local authority administering HB and CTB. It is important that human and other resources are structured in a manner that provides an effective force to ensure a secure and effective service. Organisational design will obviously be influenced by council-wide policy on issues such as:

· service centralisation or decentralisation

· outsourcing

· the size and geography of the local authority

· the siting of benefits and counter-fraud work within Finance or Housing, or a combination within these or other departments.

2.26 Nevertheless it is an important principle that the organisational structure adopted by the local authority should not be one that has an adverse impact on the administration of benefits. To this end, the Institute of Revenues, Rating and Valuation recommends that the benefits manager should occupy a senior position within the authority with a direct reporting line to the local authority’s Section 151 Officer.

2.27 Chelmsford Borough Council was at Standard in this element. The Benefits service sat within the Finance Directorate. We found nothing in the structure of the Benefits service that would adversely affect the speed of processing new claims. An experienced benefits manager was recruited in March 2004. He reported directly to the Head of Financial Services who was also the local authority’s Section 151 Officer.

2.28 Figure 2.2 shows Chelmsford Borough Council’s organisational structure.

Fig. 2.2: Chelmsford Borough Council’s Benefits service organisation chart

Source: Chelmsford Borough Council

Procedural guidance

2.29 Nationally, HB and CTB are important components of the benefits system and it is important that staff and managers responsible for effective and secure administration are supported and guided by good procedures.

2.30 Chelmsford Borough Council was at Standard in this element.

2.31 In October 2003 the authority employed the services of an external provider to compile a comprehensive policies and procedures manual. This was available in both hard copy, held in the benefits manager’s office and on the shared computer system.

2.32 Chelmsford Borough Council also had a procedural manual covering the use of the document management system and a guide to processing new claims.

Management assurance

2.33 Members and senior managers, who are accountable for the delivery of a secure and effective HB and CTB administration, need assurance that their strategy is working. They need routine, regular and systematic assurance that the Benefits service’s efforts are working as planned.

2.34 Chelmsford Borough Council was not at Standard in this element as it did not:

· evaluate results of management checks and feed the information into staff training and development plans

· regularly report progress and findings from management checks to Members.

2.35 We were told that performance against Best Value performance indicators were checked on a regular basis, but no other information was collected to form an action plan to deal with daily work problems.

2.36 Although progress was reported to Members, it was not done on a regular basis in a standard format.

2.37 Chelmsford Borough Council told us that assessment officers immediately corrected errors identified through management checking. However, the information was not used to inform training needs.

Recommendation

We recommend that Chelmsford Borough Council:

· evaluates the information gathered from management checking and uses it to inform training needs · regularly reports progress and findings from management checks to Members.

Management information

2.38 Management information plays a vital role in providing a sound base for managers to evaluate the effectiveness and security of the benefits system. The management information system should be designed to provide a useful tool for management to make intelligent decisions on the day-to-day running of their sections. It should not be used simply to generate a local authority’s current set of performance indicators.

2.39 Chelmsford Borough Council was not at Standard in this element as it did not use its management information to:

· feed performance results into individual and corporate training and development plans

· predict patterns and trends

· identify risks

· establish areas of low take-up

· adjust work priorities

· adjust resource allocations

· identify the causes of deviations from plans and targets

· improve quality

· effectively manage its backlog.

2.40 Chelmsford Borough Council had been unable to extract relevant reports from its IT systems to inform operational activities.

Recommendation

We recommend that Chelmsford Borough Council resolves the problems with its IT supplier and obtains relevant management reports on a regular basis and uses them to inform how it manages the Benefits service.

Training and development

2.41 Effective and secure delivery of HB and CTB depends vitally on staff performance.

2.42 To maintain a fast and accurate benefits service, local authorities need to invest in the performance management and the training and development of new and experienced staff. This will enable local authorities to:

· attract new recruits

· retain staff

· offer a career path for potential managers

· develop the management skills of more senior staff

· highlight where individuals need to develop or improve performance

· ensure that career advancement is based on demonstrable delivery of results and competence to take on greater responsibility.

2.43 Chelmsford Borough Council was not at Standard in this element as it did not:

· have a training plan

· operate a training programme for all HB and CTB staff, including training for new and existing staff in all key areas of benefits delivery

· support changes to HB and CTB administration procedures with locally produced training material and local training sessions

· use training evaluations to review and revise training programmes

· ensure new entrant induction and ongoing training was based on the Department’s model training plans.

2.44 Chelmsford Borough Council had been successful in a bid to the Performance Standards fund for the recruitment of a training officer. Unfortunately, long term sickness had led to this post being uncovered since March 2004.

2.45 We found that Benefits service staff lacked confidence with regard to processing claims. This was a consequence of a delay between training for, and implementation of, the new Benefits IT and document management systems and a lack of ongoing training.

2.46 Staff told us that the absence of a permanent training officer had greatly contributed to this lack of confidence. Findings from our sample, discussed under Processing of Claims, support the need for a large investment in training within the authority. Although management checks were carried out, staff were not given remedial training on common errors. We also found that policy and procedural changes were not supported by local training sessions to ensure understanding and consistency of approach.

2.47 Chelmsford Borough Council had found it difficult to recruit benefits staff over recent years. This led to extensive use of agency staff, at a high cost to the authority. To resolve this situation, the authority needs to implement a programme of training for new recruits. This would also need a dedicated training resource.

2.48 Although it was the authority’s policy to provide staff with annual appraisals, staff and managers told us that these had not been carried out for the past 2 years. The appraisal cycle should be linked to development plans and identified training should be addressed to ensure that staff progress to their full potential.

Recommendations

We recommend that Chelmsford Borough Council:

· produces a training plan · operates a training programme for all HB and CTB staff, including training for new and existing staff in all key areas of benefits delivery · supports changes to HB and CTB administration procedures with locally produced training material and local training sessions · uses training evaluations to review and revise training programmes · ensures new entrant induction and ongoing training is based on the Department’s model training plans · urgently recruits a dedicated training officer for the Benefits service · ensures that staff appraisals are carried out and that identified training needs are addressed.

IT

2.49 It is vital that every local authority makes the most of available IT to support the vision it has for delivering an effective and secure HB and CTB administration.

2.50 Automation of processes should enable greater efficiency, greater consistency of output and reliable and timely management information which should be used to monitor performance and to inform intelligent management decisions.

2.51 Chelmsford Borough Council was not at Standard in this element because its IT systems did not provide accurate management information.

2.52 The authority implemented a new document management system and a new Benefits IT system in October and November 2003 respectively. Problems arising from these new IT systems had an adverse impact on Chelmsford Borough Council’s ability to process claims quickly. Apart from the inevitable need for staff to gain familiarity with the new systems, management and staff reported problems such as:

· a need for staff to remove duplicate records of Council Tax liability relating to claims transferred onto the new Benefits IT system

· Chelmsford Borough Council transferred its housing stock to Chelmer Housing Partnership in March 2002. Action was required on the majority of Chelmer Housing Partnership cases transferred onto the new Benefits IT system to deal with error messages concerning rent reference numbers

· the Benefits IT system failed to automatically uprate Assessed Income Figures on Pension Credit cases

· duplicate reference numbers were created on the document management system. This made it difficult to confirm whether a document had been received

· the document management system did not print requests for remote access terminal checks as anticipated

· the document management system did not give accurate information on the oldest claim outstanding

· there was an indexing problem caused by a new release on the document management system

· downtime of the systems

· insufficient training for staff on using the new systems

· a delay of up to 4 months between delivery of training for the new systems and staff having the opportunity to consolidate that training

· a delay of 3 to 4 weeks between the go-live date and there being a support presence from the IT provider in the office

· incomplete understanding of the management information capabilities of the new systems.

2.53 Staff told us that by the time of our inspection in June 2004 most of the problems that had been associated with the introduction of the new IT systems had been successfully addressed. However, the issue regarding the authority’s understanding of the management information capabilities of the new systems had not been resolved.

Internal and external working arrangements

2.54 Organisations need to manage their internal and external partnerships and relationships to support short and longer term policy objectives. It is important that when there are either direct or indirect relationships, partnerships are formally recognised and supported.

2.55 The aim of this co-operation should be to ensure that common goals are set and the vision for a secure and effective HB and CTB administration can be achieved through a common sense of purpose and working practices.

2.56 Chelmsford Borough Council was not at Standard in this element because:

· it did not regularly review and publish the results of the effectiveness of internal working arrangements.

2.57 Chelmsford Borough Council had service level agreements with:

· Jobcentre Plus

· The Pension Service

· Rent Service

· Chelmer Housing Partnership.

2.58 Although Chelmsford Borough Council monitored performance against the service level agreement with The Pension Service, it did not monitor its other service level agreements and take corrective action where needed.

2.59 Chelmsford Borough Council transferred its housing stock to Chelmer Housing Partnership in March 2002. Therefore a very important relationship existed between the authority and Chelmer Housing Partnership as both parties shared a large customer base.

2.60 A service level agreement was in place and the authority met with Chelmer Housing Partnership on a bi-monthly basis to resolve issues. There was a nominated liaison officer at the authority who dealt with issues raised by Chelmer Housing Partnership.

2.61 Chelmer Housing Partnership told us that its main problem with the authority concerned processing delays. This resulted in large amounts of money outstanding, confusion about whether claims existed from Chelmer Housing Partnership customers and subsequent risks of eviction.

2.62 In an attempt to ease these problems, Chelmer Housing Partnership submitted a weekly list of urgent cases which the authority prioritised. Chelmer Housing Partnership reported greater co-operation from the authority and an improvement in the relationship since the arrival of the new benefits manager.

Recommendations

We recommend that Chelmsford Borough Council:

· regularly reviews and publishes the results of the effectiveness of its internal working arrangements · monitors all service level agreements and takes action to rectify any subsequent problems or failings.

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