1 benefits realisation report john frankis partner acclaim consulting
DESCRIPTION
3 Authority level indication of financial costs/benefits Objectives of Research National model to assess financial benefits realisable by FAME Assessment tool which could be modelled to allow for range of national scenariosTRANSCRIPT
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Benefits Realisation Report
John Frankis
PartnerAcclaim Consulting
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• End of study research: Financial benefits realisable by FAME
Introduction to the Study
• Three benefit features focused on: Development, ‘efficiency’ and prevention
• Looked at Lewisham ISA, Wirral/Working SAP & Shropshire Mental Health Records
• Financial analysis undertaken by Tony Edney & John Frankis (Acclaim Consulting)
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• Authority level indication of financial costs/benefits
Objectives of Research
• National model to assess financial benefits realisable by FAME
• Assessment tool which could be modelled to allow for range of national scenarios
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• Based on 150 unitary councils
Basis of Model
• FAME take-up in one in four (38 local authorities) – but adjustable
• Those that take-up will develop 2 phase one type projects - adjustable
• Take-up authorities will also develop 2 additional service areas
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Why 150 Authorities?London Met areas Shire Areas
Functions Boroughs Mets County Unitary Districts Education
Housing
Planning
Strategic planning
Transport planning
Passenger transport
Highways
Police
Fire
Social Services
Libraries
Leisure
Waste collection
Waste disposal
Environmental Health
Local taxation
Trading standards
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Why 150 Authorities?Why 4 projects per LA?
• Does not mean Districts can/will not be involved with FAME projects
• District involvement factored back in as a partner organisation but not the lead
• Districts free to apply FAME to service areas under their jurisdiction
• Application of FAME based on discussion with phase one authorities
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• Development costs lower where closer fit with phase one projects
Summary Findings
• Financial benefits are not always ‘cashable’ (further explored in phase 2)
• Phase one projects revealed significant benefits in all 3 aspects (Development, efficiency, prevention)
• Adopted generically, FAME benefits to development (other benefits not known)
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• After development and running costs – Financial Benefits of £17.8m p.a.
Financial Benefits
• Projected over six years £107m • Assumes gradual build up of benefits and a decrease in running
costs
Year 1 2 3 4 5 6Cost decline factor 100% 100% 90% 70% 50% 50%Benefit accrual factor 75% 80% 85% 90% 95% 100%
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• FAME will benefit £108k during development stage of ‘generic projects’ providing a total of £8m nationally over six years
Financial Benefits
Phase One Development CostsGeneric FAME Saving
£000Build £37Integration £48People & Processes £23
Total £108
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Financial Benefits• Assumes gradual build up of benefits and a decrease in running
costs
• Phase one study combines ‘cashable’ and non-cashable financial benefits
Local Partnership
Benefits National Benefits£000 £000
ISA financial benefits £1,272 £48,321PIVOP financial benefits £1,215 £46,161VIMHR financial benefits £329 £12,502Generic Development benefits £213 £8,107Total over 6 years £3,029 £115,090Average Annual National Financial Benefit £505 £19,182
SUMMARY OF NATIONAL and LOCAL BENEFITS (at Assumed Take-up Rate)
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• Phase 2 work to look at realisation success factors
Realisability of Benefits
• Phase one study combines ‘cashable’ and non-cashable financial benefits
• Efficiency benefits in particular need qualification
• Realisation factors: Implementation planning, performance management, process re-engineering, new ways of working