Following Friday’s meeting of the Strategic Transformation Committee (STC), I am now able to share with you the detail of the report on the transition to the Target Operating Model (TOM) which was considered in the private section of Friday’s meeting. The report can be found online here as the second additional circulation.
As a result of the regulatory framework we work under following the bond issue in 2016, the Council was required to first notify the London Stock Exchange of the detail of the report on the transition to the TOM and that was done this morning. Following that notification, I am now in a position to provide you with the same information.
On Friday the STC gave its approval for the next stage in the transition to the interim functional structure.
The decision by members of the committee included approval for recommendations to allow for a reduction by up to 230 full time equivalent (FTE) posts. An additional 140 FTE posts which are currently vacant and not required within the TOM will also be disestablished.
Posts have been identified as opportunities for change and in-scope for change as a result of teams coming together in the new interim structure. This may mean there are too many roles within a new team for the required service delivery.
The reduction in posts together with the dis-establishment of current vacant posts is expected to realise £10.378million in savings in 2018/19 and it is hoped these savings can be achieved through voluntary means.
We will manage the reduction in posts in as sensitive and understanding way as we can. Communication will be central in managing this process and as opportunities for change are identified, employees will be involved through both engagement and consultation.
Trade Union representatives are being briefed this morning, including information on the timeline for consultation.
It is planned that during the rest of February the Council establishes the extent of FTE post reduction that can be achieved through further disestablishment of vacant posts, agency worker relationships, secondments and non-renewal of fixed term contracts. The Council is also committed to using VSER subject to the operational needs of the Council and budgetary constraints. This will include reconsideration of previously non-supported VSER applications.
The position will be reviewed at the end of February in advance of the new organisational structures for the affected areas being presented to the Transformation Delivery Boards and the Transformation Management Board.
As new organisational structures are adopted the Council will seek to implement those new structures including FTE post reduction throughout March. At the moment these are simply indicative time frames which are subject to change depending on the outcome of consultation meetings and logistical considerations.
Members of the Extended Corporate Management Team and Third Tier managers have been asked to attend a meeting today to ensure they are aware of the process we are following. I would urge anyone with specific questions or concerns to raise them through their manager in the first instance.
I appreciate the uncertainty many will feel in relation to the transition to the TOM and I would ask everyone to be mindful of that and to be supportive to colleagues.
Whilst the reduction in posts will understandably be a focus of attention, Friday’s report included wider information that I would urge everyone to read to gain a greater understanding of the rationale being used.
You will, of course, be interested in what the transition to the interim functional structure means for you individually in terms of your role, responsibilities and ways of working – staff will be fully informed and involved through the implementation stages. All cost centres, services and staff posts have already been aligned to the appropriate function on paper and plans for how everyone will be re-aligned and begin to work are currently being developed.
It is important to note there will continue to be opportunities to fill vacancies for posts at the heart of the TOM, many of which will appeal to existing Aberdeen City Council employees keen to utilise existing skills or to explore options for retraining.
As I have stressed in the engagement sessions we have held and at various intervals in recent months, whilst we are committed to change and to our ambitions to build the Council of the future there is also a sincere will to be inclusive and respectful of all staff during this journey.
Once again, I thank you for your support and the valuable input there has been to date. The contribution of our employees will continue to be essential as we shape the journey. we are on as an organisation.