Birmingham sets management plan for project savings of £100m a year

Birmingham City Council has set out a business transformation methodology to guide its 2,000-plus managers in running a series of IT-led projects that are expected to save £1bn over the next 10 years.

Birmingham City Council has set out a business transformation methodology to guide its 2,000-plus managers in running a series of IT-led projects that are expected to save £1bn over the next 10 years.

The UK’s largest local authority is seeking productivity gains of at least 15% from each of its business transformation projects within the next five years. The methodology will be used for all of the projects that Birmingham is working on as part of its strategic partnership with IT services company Capita.

Birmingham signed a 10-year deal with Capita in March. Under the terms of the deal, a company has been set up that will be the preferred supplier every time the council goes out to tender for a business transformation project.

The joint venture company, which is 35% owned by Birmingham City Council and 65% owned by Capita, has already been awarded a £420m contract to run the council’s IT function until 2016.

When the contract was awarded, Glyn Evans, the council’s director of business solutions and IT, said that the starting point for all business transformation projects would be to assess whether they could be delivered by the joint venture company.

The council expects to save £100m a year for 10 years from the projects. The methodology has been introduced to make sure that the joint venture meets its financial targets.

Birmingham City Council has set a target of being in the top 10% of all UK authorities based on the number of members of the public who say that they are satisfied with its services.

A target has also been set for employee satisfaction. Birmingham wants to be among the top 10% of UK councils based on the proportion of employees saying they are happy to be working for the council.

The joint venture has been targeted to be among the top 10% for both the number of queries from the public and the number of service requests generated by its customer relationship management system that are resolved at the first point of contact.

 

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