B2. Optimising Resources A-Z of Commissioning October 2010.

B2. Optimising Resources

A-Z of Commissioning

October 2010

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Outline

I. Introduction and contextII. Theory and conceptsIII. BenefitsIV. Practical tipsV. Case studyVI. Group exercise

B2. Optimising Resources

I. Introduction and context

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Introduction

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What Are The Resources?

B2. Optimising Resources

II. Theory and concepts

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So, How Can You Optimise Resources?• Following slides examine approaches currently

used by commissioners in children’s services:– Finance– Workforce– Providers / markets– Capital– Co-production

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Optimising Finance

• There are many techniques for optimising finances – different techniques will be best for different circumstances. Including:– Mapping spend across services, e.g. using

Total Place– Regional and sub-regional commissioning – Aligning budgets between partners– Pooling budgets between partners– Opportunities for revenue generation– Cost modelling and identifying waste

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Process for Pooling Budgets

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Optimising Workforce

• Workforce can also be optimised by carefully planning what is required to meet a set of outcomes or deliver a service. Workforce design (alongside other resources) should be part of a commissioning strategy.

• Examples approaches include:– Changing the location, cost,

skills / qualifications / volume of staff

– one workforce framework

Source: DCSF / CWDC

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Optimising Providers/Markets

• Markets are a resource for commissioners and can also be managed and optimised – to make a market more efficient or more sustainable. For example:– Competition, choice and market diversity– Procurement approach– Business support– Information sharing– Performance management– Relationships and power

balance

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Optimising Capital

• Again, there are multiple techniques to optimise the distribution and use of capital and these will be appropriate for different circumstances, e.g.– Distribution of buildings for children’s services,

and mapping of these to need– Shared use of buildings for services

and back-office functions– Opening hours for buildings– Equipment use, e.g.

wheelchairs, vehicles

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Optimising Co-Production

• And the contribution from parents, children and young people, family members, the community and volunteers can also be optimised. E.g.– Agreeing a vision or offer for the local area– Children and young people contributing to

decision making, e.g. for residential care– Turning the curve approach to

engagement and service design– Use of behaviour contracts,

agreements, family conferencing

B2. Optimising Resources

III. Benefits

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Benefits of Resource Optimisation• Outcomes can be delivered more efficiently,

effectively, equitably and sustainably – i.e. delivering savings or better lives for children and young people

B2. Optimising Resources

IV. Practical tips

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Tips for Optimising Resources

• Resources can only be optimised if they are understood across the local area. The first step is to map, as a minimum, the finances, capital, providers / workforce across key local partners.

• Techniques developed for example by Total Place can help understand the best ways to optimise. Waste is often found in the overlap between services, e.g. intensive family support where several organisations will be working with the same family – but sometimes in an inefficient way.

• Work with professionals (public / voluntary / private) and users to optimise the system

• Build optimisation of all resources into commissioning strategies – to meet particular needs or deliver particular service areas

B2. Optimising Resources

V. Case study

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London Borough

• Three separate Early Years markets with different data definitions for each:– School nurseries– Private and voluntary provision– Maintained nurseries

• Childcare “free entitlement” is unaffordable

• No information about cost breakdown or sensitivities

B2. Optimising Resources

VI. Group exercise

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Family Information Service (FIS)• Each local area has set up a Family Information

Service built around a database of providers, and internet / phone / leaflet access to the information. As a commissioner you are about to set up a FIS…

• In groups, consider each of the following questions:1. What does a Family Information Service do?2. What is the outcome that the FIS delivers for

parents?3. How is this outcome normally delivered?4. Consider other innovative or cheap methods

might also be used to deliver this outcome?

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