Presentation to Financial Capability & Inclusion Advisory Group

1. Presentation to Financial Capability & Inclusion Advisory Group The Outcomes Approach and Early Intervention 9th November 2011 Andrew McGuire The Improvement Service

2. Structure of Presentation • Role of IS • Context and challenges • Outcomes approach / Prevention / Christie • Examples of preventative approaches • Experience of IS/SCR project ‘Embedding Outcomes in Tackling Poverty / Regeneration’ • Next phase of SOAs • Conclusion

3. Role of Improvement Service • IS established c.5 yrs ago • Independent, non-profit making organisation (COSLA and SOLACE Board members) • c.25 core staff / c.£1.5m p.a. core budget. Supplemented by specific project funding • Practical support To Local Authorities / partnerships • Activities focus on: Improvement support; Exchange of good practice; Facilitation; solutions for common issues; efficiency; e-govt; shared services, PSIF Self-assessment; SOA Guidance and support; Elected Member Training & Dev, etc.

4. Wider Policy Context and Challenges • Significant public sector funding gap: • Less resources available generally • SFRG estimates c.£3bn gap by 2016/17 • Much of gap due to rising demand (e.g. ageing population) • L-T financial sustainability depends on ‘taking demand out of system’ • And achieving significantly greater shift to early intervention / prevention

5. Scottish Block Finance & Demand 2009/10 – 2016/17

6. The changing shape of Scotland’s population

7. Initial Focus in Balancing Books • Controlling and reducing the wage : pay strategy and workforce reduction • Maximising income: tax collection, fees and charges • Tightening eligibility and entitlement criteria: prioritisation and targeting • Driving value out of procurement: share pressure with suppliers and contractors • Outsourcing of non-competitive provision • Shared services • Driving value out of the asset base: rationalisation; utilisation; co-location etc. • (Estimated that achieving all of this will still leave c.£1bn shortfall p.a.) • i.e. It’s not enough just to reduce costs; need to take demand out of system.

8. Shift to Outcomes Approach • Key focus on ‘difference made’ (less overt concern with matters of process) • Evidence-based • Client-centred • Whole system / Holistic approach / Better joined-up delivery / More effective partnership working • Addressing root causes • Early Intervention & preventative approaches

9. The reality of outcomes in Scotland • Evidence of strong inter-relationship between outcome areas (e.g. Health, education, crime and employment outcomes are strongly related to income) • Outcomes strongly inter-related at neighbourhood level – both positively and negatively (e.g. strong concentrations of multiple deprivation) • Unlikely that specific outcomes can be changed in isolation • Most thematic initiatives (health equality, early years, etc) would be focussed on the same communities • Community outcomes versus thematic outcomes? • Nat Com. Planning Group estimate – c.40% of public resources spent on dealing with consequences of negative outcomes

10. Getting what we paid for? - educational attainment 10

11. Christie Commission Findings • “serious shortcomings in the capacity of public services to deliver better outcomes” • “a cycle of deprivation and low aspiration has been allowed to persist because preventative measures have not been prioritised” • “the system can be ‘top down’ and unresponsive to the needs of individuals and communities” • “the system is fragmented, complex and opaque, hampering the joint working between organisations which is essential” • “unless Scotland embraces a radical, new, collaborative culture throughout our public services, both budgets and provision will buckle under the strain.”

12. Christie Commission - Recommendations • acceptance of the need to address ‘failure’ demand • a whole system and outcome based approach • local integration of public services - and their funding • common powers and duties for all public services • with a presumption in favour of preventative action and tackling inequalities.

13. Scottish Government Response to Christie • Partnership – place based integration of services • People – workforce development & leadership • Performance – improvement & transparency • Prevention – tackling persistent inequalities (Incl. use of 3 Change Funds (early years, re-offending, care for elderly) £500m+ over 3 years

14. Some Examples of Preventative Approaches • Training & Employment Support for Looked After Children • Financial Capability embedded within Curriculum for Excellence • Support Services for Independent Living

15. ‘Prevention’ means … • For local partners it means prioritisation – and knowing & agreeing • what matters? • what works? • what stops? • Understanding where and why failure happens • ensuring decisions on priorities are underpinned by robust evidence, political priorities, importance to communities, impact on key client groups, costs & benefits, etc. • More effective partnership working • Better understanding of where and why ‘failure’ is happening • How best to organise services to avoid failure / promote positive outcomes • (How good is current evidence base in determining these factors?)

16. Community participation in achieving outcomes • We can’t deliver outcomes to people - people are not just passive recipients of services - they can play major role in actively ‘preventing’ negative outcomes (e.g. diet, debt, truancy) - they have to want their outcomes – & help deliver them • We can’t deliver outcomes for people either - delivering what people want, but without their contribution, can create dependency - & may be unaffordable - delivering what people don’t want is wasteful • So we need to work with people to find what works for them

17. IS / SCR Project – Embedding an Outcomes Approach (1) • IS / SCR collaboration • 15 Month pilot project – ended June 2011 • From SOA to operationalising outcomes approach • From 14 applications, 5 local partnerships selected:- • Dumfries & Galloway • Falkirk • Fife • Midlothian • West Lothian

18. IS / SCR Project – Embedding an Outcomes Approach (2) • F-T Project Manager + other support levered in • No single prescriptive model – scope needs of each local partnership • Focus on practical, hands on support • Examples of support:- • Understanding of evidence base • Articulation of outcomes / Shared vision / Prioritisation • Performance management / Indicators / Target-setting • Review of structures / interventions (‘what works’?) / joint planning and delivery / action planning / engagement • Etc. • General ‘challenge’ role

19. IS / SCR Project – Embedding an Outcomes Approach (3) • Series of papers / presentations / tools / workshops delivered • Significant evidence of demand for practical, hands-on support • Prime focus on generic issues (rather than thematic subject matter) • Evidence that local partnerships generally are struggling with translation from SOA document to actual delivery (Incl. those considered to be ‘ahead of the curve’) • Value added by independent, external challenge • Partnership checklist tool developed via this work now being offered more widely • IS / SG discussions on potential second phase

20. Single Outcome Agreements – next phase • understand and address local concentrations of negative outcomes • prioritise prevention and manage ‘failure’ demand • Engagement of local communities • ensure strong linkage between the evidence, the priorities / outcomes, and the performance targets • ensure a clear line of sight to supporting plans, budgets and performance management arrangements. • Consider partners resource deployment vis a vis outcomes • Development of CPP / SOA ‘Improvement Plans’

21. Conclusion Major challenges across public sector Will be further exacerbated by impact of Welfare reform Requirement to address public sector funding gap Managing down future demand will be essential Requires a major step change in achieving shift to greater focus on outcomes / early intervention / prevention

22. Further information andrew.mcguire@improvementservice.org.uk http://www.improvementservice.org.uk/embedding-an-outcomes-approach-in-tackling-poverty-community-regeneration/ www.improvementservice.org.uk/economicdevelopment