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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