This document discusses efficiency and performance management in the public sector. It outlines three key areas that must be joined up: measures, systems/processes, and people. Potential areas for efficiencies are identified and then pilots are conducted before scaling up. Estimated savings are determined by approaches like service redesign or technology. Benefits are then evaluated using metrics like return on social investment or public value. A case study from Somerset County Council compares the budget size and relative cost/performance of different council services. Key questions are posed around best linking performance, efficiency, and finance; identifying areas for efficiencies; and measuring savings and improvement within partnerships.

1. Efficiency and Performance Management

2. Ongoing relations between performance, efficiency and finance Performance Efficiency / transformation Finance Joining up: Measures (e.g. unit costs, activity based costing) Systems and processes (Including timing, consistency etc.) People (e.g. single teams, matrix management, co-ordinating groups, regular communications)

3. Identify potential areas for efficiencies Pilot Scale up Estimate possible savings Determine approach: service redesign, technology, training, etc. Evaluate – measure benefits (including SROI, public value, etc.) Links between performance and stages of finding efficiencies

4. Somerset/CCN – Children’s Social Care

5. Comparing all services ….

6. ‘ Direction of Travel’ analysis ….

7. VfM and Budget Size …. Somerset County Council compared to Family Groups 2007/08 Planning Control Rights of Way Library Service Children's Social Care Planning and Admission Highways Maintenance Adult Social Care - PD Traffic Management & Road Safety Youth Service Waste Disposal Adult Social Care - MH Street Lighting Adult Social Care - LD SEN & SIA Trading Standards Early Years Older People's Social Care School Improvement Culture & Heritage/Museums Economic Development Public Transport Relative Cost Relative Performance

8. Questions How best to make the links between performance, efficiency/transformation and finance? How to identify potential areas for efficiencies? How to measure and evaluate savings and improvement? How to link performance management and efficiency within partnerships?