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The SOLGM guide on s17A reviews
Raymond Horan,
Manager, Sector
Improvement
2
What’s this presentation
• A heads-up on the content of the guide
• A road-testing of ideas
3
What is a s17A review
“periodically assess the cost-effectiveness of
current arrangements for meeting the needs of
communities for good quality (services)”
4
The s17A review - purpose
• An outcome of the “Efficiency Taskforce”
• A spur to seek efficiencies and to talk to
others
• Not a requirement to contract out, form
CCOs etc
5
“Cost-effectiveness”
“Least cost consistent with the achievement of
the objectives for delivering the service”
6
A couple of other ‘preliminaries’
• There is no legislative ‘stick’ – but non-
compliance has risks
• The process is open to you (barring some
minima)
7
Some reminders
• First reviews must be completed by August
2017
• Circumstances may dictate earlier review
• There may be statutory options - but you
may need to consider others
8
What’s a service ?
• Starting point – what’s an activity for LTP
purposes
• Bulk like activities together e.g. water and
wastewater
• There will be exceptions
9
Developing a review programme
1. Identify triggers
10
Triggers
• Significant change to levels of service
• Expiration of a contract within two years
• Expiry of the last review (i.e. its been six
years)
11
Out clauses - consider
• Cost of the review
• Cost of the service
• Elapsed time since the last review
• Changes in environment since the last review
• Effectiveness of current arrangements
• Capacity gains or losses
12
Developing a review programme
1. Identify triggers
2. Stocktake previous reviews
13
Developing a review programme
1. Identify triggers
2. Stocktake previous reviews
3. Group like services together
14
Developing a review programme
1. Identify triggers
2. Stocktake previous reviews
3. Group like services together
4. Talk to your neighbours
15
Developing a review programme
1. Identify triggers
2. Stocktake previous reviews
3. Group like services together
4. Talk to your neighbours
5. Identify resource
16
Developing a review programme
1. Identify triggers
2. Stocktake previous reviews
3. Group like services together
4. Talk to your neighbours
5. Identify resource
6. Identify initial priorities
17
Developing a review programme
1. Identify triggers
2. Stocktake previous reviews
3. Group like services together
4. Talk to your neighbours
5. Identify resource
6. Identify initial priorities
7. Seek political input and refine
18
Undertaking a review
1. Gather background information
2. Determine review objectives and scope
3. Select review agents
4. Perform the analysis
5. Document the analysis
19
Background info
• Mostly common sense – costs, current
arrangements etc
• Don’t forget the rationale for delivery, and
non-financial performance
• What about customer and stakeholder
views?
20
Determining scope
• The place for ‘scaling’ the review and doing
the B/C analysis
• Knock out the impractical options – but
document why
• Engagement?
21
Review agent
• Who does the review?
• What skills and knowledge does the review
need?
• Is the review best conducted by an
independent person?
22
Analysis
• Costing – robust, but precision not required
• Refinement ?
• Benchmarking
23
Documenting
• Use a common approach
• SOLGM has developed a template and a
working paper
24
For more information on SOLGM
visit www.SOLGM.org.nz

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Service Delivery Reviews

  • 1. The SOLGM guide on s17A reviews Raymond Horan, Manager, Sector Improvement
  • 2. 2 What’s this presentation • A heads-up on the content of the guide • A road-testing of ideas
  • 3. 3 What is a s17A review “periodically assess the cost-effectiveness of current arrangements for meeting the needs of communities for good quality (services)”
  • 4. 4 The s17A review - purpose • An outcome of the “Efficiency Taskforce” • A spur to seek efficiencies and to talk to others • Not a requirement to contract out, form CCOs etc
  • 5. 5 “Cost-effectiveness” “Least cost consistent with the achievement of the objectives for delivering the service”
  • 6. 6 A couple of other ‘preliminaries’ • There is no legislative ‘stick’ – but non- compliance has risks • The process is open to you (barring some minima)
  • 7. 7 Some reminders • First reviews must be completed by August 2017 • Circumstances may dictate earlier review • There may be statutory options - but you may need to consider others
  • 8. 8 What’s a service ? • Starting point – what’s an activity for LTP purposes • Bulk like activities together e.g. water and wastewater • There will be exceptions
  • 9. 9 Developing a review programme 1. Identify triggers
  • 10. 10 Triggers • Significant change to levels of service • Expiration of a contract within two years • Expiry of the last review (i.e. its been six years)
  • 11. 11 Out clauses - consider • Cost of the review • Cost of the service • Elapsed time since the last review • Changes in environment since the last review • Effectiveness of current arrangements • Capacity gains or losses
  • 12. 12 Developing a review programme 1. Identify triggers 2. Stocktake previous reviews
  • 13. 13 Developing a review programme 1. Identify triggers 2. Stocktake previous reviews 3. Group like services together
  • 14. 14 Developing a review programme 1. Identify triggers 2. Stocktake previous reviews 3. Group like services together 4. Talk to your neighbours
  • 15. 15 Developing a review programme 1. Identify triggers 2. Stocktake previous reviews 3. Group like services together 4. Talk to your neighbours 5. Identify resource
  • 16. 16 Developing a review programme 1. Identify triggers 2. Stocktake previous reviews 3. Group like services together 4. Talk to your neighbours 5. Identify resource 6. Identify initial priorities
  • 17. 17 Developing a review programme 1. Identify triggers 2. Stocktake previous reviews 3. Group like services together 4. Talk to your neighbours 5. Identify resource 6. Identify initial priorities 7. Seek political input and refine
  • 18. 18 Undertaking a review 1. Gather background information 2. Determine review objectives and scope 3. Select review agents 4. Perform the analysis 5. Document the analysis
  • 19. 19 Background info • Mostly common sense – costs, current arrangements etc • Don’t forget the rationale for delivery, and non-financial performance • What about customer and stakeholder views?
  • 20. 20 Determining scope • The place for ‘scaling’ the review and doing the B/C analysis • Knock out the impractical options – but document why • Engagement?
  • 21. 21 Review agent • Who does the review? • What skills and knowledge does the review need? • Is the review best conducted by an independent person?
  • 22. 22 Analysis • Costing – robust, but precision not required • Refinement ? • Benchmarking
  • 23. 23 Documenting • Use a common approach • SOLGM has developed a template and a working paper
  • 24. 24 For more information on SOLGM visit www.SOLGM.org.nz