Decision details

(i)  To approve the release of transformation funding as detailed in ‘Resource Implications’ from reserves or the Exceptional Financial Support (EFS) facility

(ii)  To approve the appointment of Newton Europe Ltd (“Newton Europe”) as transformation partner to support the implementation of “adapt | grow | thrive” transformation savings proposals

(iii)  To delegate authority to the Chief Executive following consultation with the Leader of the Council to take all necessary actions, including finalising contractual and commercial arrangements, in order to complete the appointment of the transformation partner.

1.  This proposed appointment is a key element in the organisational transformation of the Council in order to reach a position in which its General Revenue Fund budget is balanced in future years without the need for Exceptional Financial Support from the government. This is a key component in enabling the Council to achieve long-term financial sustainability.

2.  This appointment follows, and directly relates to, the completion of a diagnostic phase of work by the proposed transformation partner, Newton Europe.

3.  It was intended from the outset that an implementation phase of the transformation programme would follow the diagnostic phase if that diagnostic phase was successful in identifying transformation activities and financial savings opportunities of sufficient scale and impact to support the commissioning of the second phase.

4.  Appendix 1 sets out the confidential and commercially sensitive terms relating to this report and the appointment of the transformation implementation partner.

1.  Do not proceed with the implementation of transformation proposals.  This option was rejected as it would result in the Council failing in its plan to become financially stable.

2.  Undertake a procurement process to appoint an alternative transformation partner.  This option was rejected as the implementation phase of this element of the transformation programme was envisaged in the original procurement process and subsequent appointment of Newton Europe. The implementation phase directly relates to the diagnostic phase; the implementation phase has been designed by Newton Europe as a result of the diagnostic phase and, therefore, this appointment enables continuity and speed in proceeding with the implementation phase.

3.  Proceed with the transformation proposals using only existing Council resources and/or temporary staff appointments.  Whilst the council already has an experienced core Projects & Change team, this option was rejected as the Council does not possess sufficient capacity to implement the proposals itself within the required timeframe without external assistance and support.