Peter Sloman
Chief Executive
Oxford City Council
Oxford
• Population 151,000
• Progressive politics- conservative free zone
(Labour, Liberal Democrats, Green Councillors)
• 20% plus minority ethnic communities
• Two Universities - 30,000 students
• Large Teaching Hospital
• Car production - BMW Mini Plant
• Large science/research
economy
• High levels of economic
and social inequality
• History of militant trade
union activism from
manufacturing past
UK Context
• Labour Government until 2010
– Growing Demands placed on public services
– Push for externalisation and shared services – efficiency/cost
reduction
– Inspection and challenge of public services
– Growth in funding and jobs
– Central targets
• Coalition Government
– 30% reduction in central funding in first 3 years
– A further 30% to come
– Attack on sector morale
• Chief Executives salaries
• Role of political leaders
• Trade Unions
• Removal of functions e.g. schools
• Push for externalisation and shared services
– Elimination of Inspection
– Localism
Oxford Context 2007
• Poor relationships
– Politicians / Managers
– Managers / Trade unions
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Financial crisis
Services all in-house delivery
Poor service outcomes
National pay bargaining
High sickness/poor attendance
Oxford City Council 2007-2013
Approach to Transformation
• Employee relationships key to coping with
changing context for public services
• Taking the opposite
approach from sector
– Cutting jobs/protecting
jobs
– Cutting services/
redesigning services
– Externalisation/
in sourcing work
– Commoditisation/
customer and community focus
Conditions for Change
• Unified and focussed political leadership
• New managerial leadership
• Change management
agreement with Trade Unions
• Middle management/Skills
development
• Performance management
• Staff appraisal reviews
• Communications
• Sense of shared endeavour
– World Class City for
Everyone
– Needs a World Class
Council
Fundamental Service Review –
20:20
• Service by Service :
– Starting with poor value for money
– Poor performance
– Strategically important
• 20% quality/performance
improvement
• 20% cost reduction
• Involving workforce
• Based on a clear deal
– Good job security/rewards compared to market
– First class productivity and engagement
• City Works - waste example
• Leisure review
Sharing Rewards: Partnership
Payment 2010
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Response to 2010 coalition cuts
Pay freeze
Freeze contractual increments in pay grades
£400 annual partnership payments - subject to:
– Efficiency improvement
– Appraisal targets
– Attendance
• Result: 25% cost
reduction - 90%
performance targets met
• Halved sickness - 14 days to 7 days
• Workforce reduction through natural turnover
A New Deal 2013
• Facing a new 30% cut in government
funding making 60% in all now
• Next phase insourcing work and trading for
income
• Five year pay deal outside national
agreement
• Job protection
• Below inflation rise
for five years
• Continue partnership
payment but also
apply conditions to
pay rises
Overall Impact
• Real pay cut
– Over period 2010-2013, 9% real terms pay cut
– Over period 2013-18 further 6% real terms pay cut
– 15% in total
• Job protected
• 20% improved productivity
• 10% income from profit from trading
• No cuts in services
• Workforce engaged in designing service
improvement and with a stake in organisation’s
success
• Cash available to invest in the City protecting 900
jobs in construction and supply in private sector
Learning from the Journey
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Improvement political/managerial relationships and
shared vision is key for Leadership of culture change
Excellent workforce engagement and trust essential for
transformation
Based on shared values and objectives
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Protecting services
Social justice – impact of the Council
Protecting jobs
Not privatising services
Active dialog and constant communication/engagement
Confidence locally in Oxford’s new entrepreneurial local
state is based on partnership with its workforce
People will make sacrifices if there is clear, honest
leadership with shared interests at heart
Producer interests can be aligned with community
wellbeing