London Library Change Programme

David Ruse

LLCP Board member andDirector of Libraries and Culture for Westminster City Council

North West libraries conference 28 June 2010

On the edge of change

London Library Change Programme: overview

Began in 2007 with recognition of value for money issues, followed by a feasibility study

Is part of the London Cultural Improvement Programme (www.londoncouncils.gov.uk/networks/lcip/programme)

Funded by Capital Ambition (the London RIEP)Aims to bring all 33 services up to the levels of the bestAims to reduce overheads and improve services through

shared services and improved processesAims for a systematic approach to having the right staff and

skills in place to engage better with communitiesAims to make a substantial change in the structure of

London Libraries

London’s library services: need for change

London’s libraries cost over 40% higher per head than UK average

Best practice not in place across LondonPlans in place to re-design, work collaboratively, share

back office arrangements – but not yet systematicSome authorities have invested in technology that

makes joint working harderLarge variations in deployment and costs of staff Library service unusual as more open to global and web-

based competition and other forms of governance

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Where are we now?

Public libraries in London cost £203 million paHuge variation in cost/outputsNo correlation between cost/qualityOver half the cost is staffingBut staff productivity varies hugely (London

average transactions per fte is 11,400, but range from 7,000 to 17,000 in inner London alone)

Where are we now?

Management layers range between 2 and 9, with an average of 5

Half the boroughs have not got full EDIOne third don’t adhere to NAG minimum

standardsOne third don’t do any supplier selectionAnd as for opening hours, stock quality…

London Library Change Programme: emerging vision

The public library service will continue to meet the book, informationand learning needs of the people and communities of London.

Improved processes and technology and a revitalised workforce will beharnessed to provide resources which are tailored to the needs ofLondoners and delivered in ways that best meet their needs, whether atthe library, in partnership with other local services, delivered to thehome or workplace, or made available digitally.

While remaining locally accountable, London’s library services shouldbe able to work more closely together, taking advantage of moreefficient and effective governance and delivery models to deliverconsistent high value services – that contribute to wider local outcomes- at significantly lower cost.

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Overview of LLCP

Phase 1 - 2007/9Marketing, staffing and stock to be focus

Phase 2 - 2008/9Efficiency, common procurement and ILL

Phase 3 - 2010/11 Best practice and new models of delivery

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Good practice in individual services and pilots

Resource discoveryStock use analysis

Third party selection

Improved logistics

Buy, borrow or ILL?Reciprocal borrowing

Stock management

Stock purchasingShared catalogues

LLC

London Requests

Online resources

What’s radical and effective?

What’s justbusiness as usual?

Shared reserves

What does good practice look like?Stock and requests Scientific selection and analysis, good

use of third parties; Good breadth and depth of stock; Full EDI and financial integration; Consortium contract; Below NAG minimum standards and BIC

classification; Standard cataloguing; Buy or reciprocal borrow across several

authorities, not ILL; Browseable, comment-able catalogue

which generates collective intelligence; Shared logistics, management, delivery; Beginning to share all of these.

Workforce• Few tiers of staff;• Few management/policy vs customer-

facing staff;• Strong skills in strategic

commissioning, publicity, partnership working;

• Sharing in areas like bibliographic services, mobile libraries, home visiting, casual staff;

• Shared training and development;• Working in depth across consortia;• Enthused and effective staff following

processes that maximise outcomes;• Considering shared management,

back office, front office.

Best Practice

But is it clear what best practice is?

Does everyone have the same view of the service?

Which service are we talking about – the current one or the “modernised” one?

Three thoughts:

Best Practice

There are those that still believe that the world is flat!

Best practice -

The benchmarks are incorrect.

Best Practice The perspective has been shaped by personal views of the World

Whispers and conversations

Happy to assist for a fee

It’s not a priority at the moment

I need help – but I’m not sure where

Our finance people are the problem

We’re already doing that!

Why do we need another programme

Tinkering at the edges

They’re just playing at it!

That model doesn’t work

Overview of the early programme

Phase 1 Marketing, staffing and stock to be focus

Phase 2 Efficiency, common procurement and ILL

BUT survey measures not robust enough best practice not clearly articulatedFinancial benefits not sufficient (£20m / 5 years)

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The future

Savings of nearly £20 million over 5 years!We must do these changesBut overall it is too little, delivered too lateRecognise that we need to look at regional and

sub-regional scale change – the prize will be much larger

Need to take account of changing marketplace – trusts, private sector, partnerships, shared services, and emergence of ‘commissioning’ structures, not to mention Community ownership.

Time for Transformation

Libraries have always shared /collaboratedIt works for our customersWe need to raise the game to new levels given

the financial situationMany challenges to overcomeBut it’s a win-win if we pull it off!The LLCP Board is recommending a

substantial change in structure of London’s libraries

Head of ServiceBack Office, specialists, procurement, etc.

Front line

At the moment library services look very similar throughout most of London…

They all vary a bit in size and shape

As the workforce report shows, there are lots of different management structures, but they all have a head, specialist and back office staff and front line staff

They all vary a bit in size and shape

For simplicity, let’s represent each service like this model.

This model is repeated 33 times throughout London

As the workforce report shows, there are lots of different management structures, but they all have a head, specialist and back office staff and front line staff

This model is repeated 33 times throughout London

A simple and swift approach to serious cost savings would be to get those boroughs most interested in working together to share ‘back office’ functions in a new pan-London body

Over time more boroughs could join when they felt ready

Over time more boroughs could join when they felt ready

Groups of boroughs could then make further savings by combining their front line services

Groups of boroughs could then make further savings by combining their front line services

Individual borough control continues having a ‘commissioner’ rather than a head of service

Some boroughs might want to send the delivery out to externalised trusts

Some boroughs might want to send the delivery out to externalised trusts

Others may wish to consider commercial operators

Others may wish to consider commercial operators

The benefits of this model are that no Borough is forced to change but those most keen to work together can do so quickly.

Others can always start working collectively later, bring benefits to themselves and added savings to those already working together.

London shared back office, optional frontline

Some libraries are already working together around joint procurement, saving cash and improving the offer for residents

Some libraries are already working together around joint procurement, saving cash and improving the offer for residents

Another option would be for some Boroughs to decide to take this further and merge their services

Over time others could join them if they think the efficiencies justify participation

Another option would be for some Boroughs to decide to take this further and merge their services

The benefits of this model are that no Borough is forced to change but those most keen to work together can do so quickly.

London Shared Service

Over time others could join them if they think the efficiencies justify participation

Another option would be for some Boroughs to decide to take this further and merge their services

London Library Change Programme: the current plan

Shared back office staff and processes

Shared back and shared or contracted out front offices, retaining local accountability

and branding

How might we decide what to take forward?Potential evaluation criteria Issues related to projects themselves 

Savings Improved customer services Feasibility

Impact on overall programme Take the programme forward strategically Needs programme support (can’t easily be done by an individual

authority) Meets the requirements of a technical design authority (doesn’t

create obstacles to future progress)

Most has been done already – only a few ‘technical’ pilots needed

Timescale: Phases 1 - 3

Benchmarking and options

appraisal July – Oct 09

13th November 2009 Libraryservices seminar

Local Authority action plans

1 Dec Members’ briefing

Capital Ambition Efficiency Board,12th January 2010: strategy for change andbid for set up and development

January 2010: Recruit project team Test delivery models Establish design authority Agreement on delivery vehicle

April 2010: Project team in place Set up and roll out best practice

peer support Develop technical architecture

plan Set up early adopter trials

May – Oct 2010: Opt-in to Wave 1 by Members Business modelling for shared

technical services

Who will deliver?

Various models need to be tested, including: One Authority becomes accountable body London Councils becomes accountable body Appropriate currently constituted organisation takes on

the responsibility Current partnership is developed to be constituted as

the accountable body A new company/social enterprise is established, owned

by the participating authorities A new independent not-for-profit company (‘Trust’) is

established that could apply for charitable status

Who will deliver?

Various models need to be tested, including: One Authority becomes accountable body London Councils becomes accountable body Appropriate currently constituted organisation takes on

the responsibility Current partnership is developed to be constituted as

the accountable body A new company/social enterprise is established, owned

by the participating authorities A new independent not-for-profit company (‘Trust’) is

established that could apply for charitable status

Who will take part?

Only those who want toNeed some idea who will become part of

the First Wave, but Boroughs won’t have to sign up until there is complete clarity over costs, accountability, etc.

Need to agree whether ‘pioneering’ Boroughs will be rewarded as others join

Aligning parallel work streams

Establish high level customer service operating model and design the architecture for the delivery including principles for working together

Engage all key stakeholders to ensure strategic buy-in, facilitating development of locally owned and driven development plans

Develop a common view of the best practice operating model and ensure consistency of processes through Shared performance, targets and process design Shared best practice Adoption of the common operating model

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Re-modelling the programme – World Class Services/peer engagementBaselining and benchmarking with the International “best

in class”Create a vision of the “modernised” serviceDevelop a new performance structure within which the

new service can be evaluatedDevelop a consistent, quantifiable understanding of “best

practice”Stage the London libraries World series – lectures, case

studies, demonstrations, workshops, learning sets & mentoring

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Re-modelling the programme – London’s architecture for librariesCreation of an architecture for London’s public services within

which the core library offer can be delivered effectively, efficiently and economically and where the local offer can thrive

Recognition of the significance and value of local schemes within the bigger picture

Identification of common systems and solutionsCreation of a platform for multiple sharingDevelopment of governance and management models that

will lead to an effective and efficient mixed economy approachMacro or micro buy-in when ready

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Set up tasks for Phase 3:

Strengthen programme Board Recruit Programme Director –advert shortly package c. £80k (consultant,

secondment or employee)Establish best practice peer support programme - new survey just gone outForm small group of advisers to consider design architecture with Board –

not just IT, but people, processes, systemsBehind original timescale, due to change in personnel, local elections, and

HR issues over who would employ programme Director, all now sorted….

An opportunity for the London Library Change Programme

New ways of working and innovation

• Shared services

• Use of technology

• Strategic commissioning

London Library Change Programme is building a platform for change

Key Message 1: outcomes If 15 boroughs opt in, nearly half of London will

have centralised back office services around requests and a unified approach to stock management and procurement

This will enable customers to get books more quickly and drive costs down

There will be single systems for renewals and requests

Best practice in deployment of staff will improve productivity, value for money and front line services.

This will also help councils to meet financial challenges during a period when library income is set to decline

This programme will:Raise the standard of all public library services to

the level of the bestCreate more effective, cost efficient processes that

take full advantage of new technologiesRelease staff from time consuming back office

processes to allow more time for customer focussed activities and community engagement

Release the capacity for London’s library services to meet wider local priorities such as reducing worklessness

Allow London’s Libraries to reach their full potential

Key Message 2: the benefits of working collaboratively to improve services

Key Message 3: it’s happening across the globe

New South Wales has

Commissioned

Bookends Scenarios,

a project exploring the

possible futures for

NSW public libraries

in the year 2030

Auckland is currently

amalgamating 7 public

library authorities into one

and amalgamating 57

libraries. It is establishing a

single acquisitions process

and a single technical

services unit. It consulted

LLCP about London’s

transformation programme.

A USA based library commentator

has recently published an article that: Examines trends Predicts that there will be a

pressure on public libraries to go down the shared service route

Predicts an increase in e book readers and e subscriptions

Predicts use of text indices and digital resources

Predicts this will lead to smaller book stacks smaller shop front libraries more home deliveries

Conclusion

The vision is so clear up here

Have we been high enough to date?

You can’t make out the detail from here

You can’t hear the chatter of the crowds