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Lessons from benchmarking
What happens in planning authorities?
Toby Hamilton, Martin Hutchings
Positive Planning Day
March 2015 www.pas.gov.uk
Benchmark roundup – why bother?
• Benchmarking since 2009
– 276 councils participated, many more than
once
– Confidential, but valuable dataset
• Publish aggregate as a “state of the
nation”
– Before we forget
– for future benefit
What we’ll cover
• Costs and subsidy of planning
• Fees
• Productivity
• Customer survey
• Planning Quality Framework
What do councils spend the money
on?
Percentage of LPA cost not covered
by fees and income
• Each vertical line represents a different LPA
• Average subsidy = almost 70% (at the time)
Cost per hour
Average cost per person per productive hour
Work type 2011 2012/13 Combined
Planning applications (direct) £48 £48 £48
Planning applications (other) £40 £40 £40
Compliance work - enforcement etc. £41 £41 £41
Strategic Planning £51 £55 £52
All planning activities £46 £46 £46
- Productive hourly rate = £46
- Compare this with pre-app charges (!)
Majors = profit. Avoid conditions !
application count
cost of processing
per app
fee per app at time
of benchmark
Major non residential 2149 £2,841 £6,277
All dwellings 14162 £1,664 £1,293
Minor nonresidential 20999 £783 £410
Householders 48020 £408 £131
Heritage 11981 £449 £2
All waste 58 £4,155 £5,137
All minerals 144 £622 £1,110
All others 48668 £385 £158
Conditions 12540 £268 £93
All apptypes 158721 £589 £353
Productivity
• “We are not updating the 150 cases per
officer thing”
– In the end, we have caved in
Caseload = 144 / case officer
Productivity revisited
• In 2002, it was professional case officer +
admin types. Now less differentiation.
• Not cases per DC officer, but cases per
person
– Derives total head count
– = less wiggle room
– In the ODPM study, this was “less than 100”
All-in figure is 88 cases per person
All-in figure is 88 cases per person
Why is there such a difference?
Drivers of productivity:
• Work mix
– high numbers of simple applications. Fast track.
Often urban.
• Large authorities = often higher productivity
• Plus local factors (e.g. contamination)
Supergroups = ONS classification
Customers
• In aggregate there were clear messages
– Talk to us, generally. It’s just manners.
– Talk to us *especially* when there are issues
– We (generally) fail on customer care
• We fail because we don’t acknowledge Work
In Progress and follow a target culture
Reflections on the old benchmark
• Massive shift in understanding
– Financial literacy
– Looking beyond NI157
• National indicators hide almost everything
about performance
• Subsidy represents a risk to development
• Communication is often weak
Benchmarking is dead. Long live PQF.
Basic building blocks adapted and recycled…
• More focused on customers
• Internal management tool / external ‘declaration’
• Not an annual snapshot, but a continuous process
• We want it to become a “badge”. Over time.
Planning Quality Framework
Contains information and data on 3 things
1. Performance
2. Customer experience
3. Good planning delivery
fee income
Approved ?
Valid ?
No fee ? (exc. heritage & trees)
Customer or Target-driven?
More to come
• Resources
• Investment
[need more testing]
• Pre-app
• PPAs
[not invented yet]
Is it getting busier ? [yes]
Development value in our place = £60m/yr
Customer survey results
Application Ref: HA/FUL/4456/14
“PAS Planning Quality Framework =
consistent, relevant information to
benchmark performance” (p12):

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Positive Planning Martin Toby

  • 1. Lessons from benchmarking What happens in planning authorities? Toby Hamilton, Martin Hutchings Positive Planning Day March 2015 www.pas.gov.uk
  • 2. Benchmark roundup – why bother? • Benchmarking since 2009 – 276 councils participated, many more than once – Confidential, but valuable dataset • Publish aggregate as a “state of the nation” – Before we forget – for future benefit
  • 3. What we’ll cover • Costs and subsidy of planning • Fees • Productivity • Customer survey • Planning Quality Framework
  • 4. What do councils spend the money on?
  • 5.
  • 6. Percentage of LPA cost not covered by fees and income • Each vertical line represents a different LPA • Average subsidy = almost 70% (at the time)
  • 7. Cost per hour Average cost per person per productive hour Work type 2011 2012/13 Combined Planning applications (direct) £48 £48 £48 Planning applications (other) £40 £40 £40 Compliance work - enforcement etc. £41 £41 £41 Strategic Planning £51 £55 £52 All planning activities £46 £46 £46 - Productive hourly rate = £46 - Compare this with pre-app charges (!)
  • 8. Majors = profit. Avoid conditions ! application count cost of processing per app fee per app at time of benchmark Major non residential 2149 £2,841 £6,277 All dwellings 14162 £1,664 £1,293 Minor nonresidential 20999 £783 £410 Householders 48020 £408 £131 Heritage 11981 £449 £2 All waste 58 £4,155 £5,137 All minerals 144 £622 £1,110 All others 48668 £385 £158 Conditions 12540 £268 £93 All apptypes 158721 £589 £353
  • 9. Productivity • “We are not updating the 150 cases per officer thing” – In the end, we have caved in
  • 10. Caseload = 144 / case officer
  • 11. Productivity revisited • In 2002, it was professional case officer + admin types. Now less differentiation. • Not cases per DC officer, but cases per person – Derives total head count – = less wiggle room – In the ODPM study, this was “less than 100”
  • 12. All-in figure is 88 cases per person
  • 13. All-in figure is 88 cases per person
  • 14. Why is there such a difference? Drivers of productivity: • Work mix – high numbers of simple applications. Fast track. Often urban. • Large authorities = often higher productivity • Plus local factors (e.g. contamination)
  • 15. Supergroups = ONS classification
  • 16. Customers • In aggregate there were clear messages – Talk to us, generally. It’s just manners. – Talk to us *especially* when there are issues – We (generally) fail on customer care • We fail because we don’t acknowledge Work In Progress and follow a target culture
  • 17. Reflections on the old benchmark • Massive shift in understanding – Financial literacy – Looking beyond NI157 • National indicators hide almost everything about performance • Subsidy represents a risk to development • Communication is often weak
  • 18. Benchmarking is dead. Long live PQF. Basic building blocks adapted and recycled… • More focused on customers • Internal management tool / external ‘declaration’ • Not an annual snapshot, but a continuous process • We want it to become a “badge”. Over time.
  • 19. Planning Quality Framework Contains information and data on 3 things 1. Performance 2. Customer experience 3. Good planning delivery
  • 20.
  • 24. No fee ? (exc. heritage & trees)
  • 26. More to come • Resources • Investment [need more testing] • Pre-app • PPAs [not invented yet]
  • 27. Is it getting busier ? [yes]
  • 28. Development value in our place = £60m/yr
  • 29. Customer survey results Application Ref: HA/FUL/4456/14
  • 30. “PAS Planning Quality Framework = consistent, relevant information to benchmark performance” (p12):

Editor's Notes

  1. 276 out of approximately 350 local planning authorities. Many of the councils took part more than once. 40 Councils took part three times. Many thousands of people participated. They gave us millions of pieces of data to work with The benchmark data is unique and valuable - for DM work in particular it gives a more useful understanding of the work than any previous attempt. but the club rules meant the data could not be publicly released in a form that would identify individual councils The solution – aggregate the data to anonymise the individual councils Before we forget – our memories degrade with time and electronic files are not as permanent as many imagine. Some of the information derived will be used in the PQF
  2. …and what is not in it Comparatively little on strategic planning and enforcement
  3. No real surprises here County authorities tend to have considerably fewer planning applications (though perhaps a more complex mix) Districts and unitaries are more similar and most of the data in the report focuses on these types of authority
  4. This is what spend in an average authority looks like This is districts and unitaries combined You can see that application fees, pre-app fees and other income subsidise a minor proportion of the total spend … but, we are a long way from cost recovery
  5. This chart shows the percentage subsidy for the total local planning authority cost for the participants in the 2012/13 benchmark The majority of authorities need a subsidy of between 60 and 80% The average subsidy is 68%
  6. Cost per hour is very consistent between the two different benchmarks 2011 and 2012/13 When you look at what councils are charging for pre-app it would seem very difficult to justify some of those charges. Pre-app is supposed to be cost recovery
  7. As we all know – application fees do not cover costs There are exceptions but only Major commercial apps provide any significant ‘profit’ Of course councils have very little control over what applications they receive Exception – conditions – councils may want to reconsider how many ‘submission’ conditions they impose knowing that each one costs them around £150
  8. Yep, we have gone there The infamous150 cases per officer was / is a popular benchmark of local authority performance The traditional measure took the number of PS1/PS2 cases and divided it by the number of planning officers. With good reason, many people thing it is a ‘silly’ number. In our defence, we have used the benchmark data to try to show there is a large range behind the number. It is not a ‘one size fits all’ number
  9. Our data shows that the average council has a caseload of 144 cases per officer. Slightly below the traditional 150 measure But look at the range There is huge variation between the top and the bottom
  10. We also chose to derive a new measure Includes all officers doing casework, not just planning officers. Captures a more rounded picture of application processing.
  11. The range is still big but not quite so big – there is more consistency
  12. The ‘top’ councils are still significantly higher The obvious question this raises is why the difference? Why can’t all councils operate at such high levels?
  13. Not surprisingly, authorities that have lots of smaller, simpler applications have a higher cases per officer number. Being big seems to help – larger authorities show well in the cases per officer number 5 of the biggest 10 authorities (by caseload) are in the top 10 in terms of cases per officer Other local factors are also likely to contribute: - processes - environment (heritage, contamination) Perhaps surprisingly, population density does not seem to be a significant factor
  14. A different way of grouping the data Used ‘supergroups’ from the Office of National Statistics London is different – ONS even classifies it separately This shows cases per person (our new measure) in supergroups. Difficult to read here but the two higher groups are London authorities.
  15. We asked customers what they were looking for from LPAs Customers were frustrated by poor communication The thing they wanted most was the opportunity to amend their application before a decision was made They wanted access to planning officers both before submission and during the application process.
  16. Benchmarking authorities needed to look at their finances in a different way to participate in the benchmark. The report we gave them presented them with cost information about their own service and allowed them to compare this with their peers. The traditional speed of processing national indicators are a very narrow measure. How an authority actually performs has many more dimensions: Customer service Cost of providing the service Value added during the planning application process A large subsidy in a time of deep cuts means LPAs are at the mercy of Council financial decisions. Many councils seem to give comparatively little priority to customer service.