Decommissioning

1. A-Z of Commissioning Decommissioning October 2010

2. Outline Introduction and context Theory and concepts Benefits Practical tips Case study Group exercise

3. Decommissioning I. Introduction and context

4. Related training modules • B6. Performance management • C3. Leadership • C5. Managing change • C7. Senior commitment • Outcomes & Efficiency • Voluntary and Community

5. Definition • De-commissioning is the process of planning and managing the cessation, reduction or transferring of services, or investment in services • This process should be undertaken in line with the commissioning cycle of ‘understand, plan, do, review’ • Decommissioning will impact on both people and process: • People: professionals, customers, communities, systems • Process: structures, governance, contracts, financials • It is vital to consider and manage both, i.e. the emotional change as well as procedural change

6. Options for change • Disinvest or decommission • Commission new services, e.g. through co-production with service users • Remodel service • Renegotiate or end contract / SLA • Maintain contract / SLA

7. Good alignment with needs Good quality Poor quality Quality Needs Poor alignment with needs What option to choose? Renegotiate or end contract / SLA Maintain Remodel Decommission

8. Decommissioning II. Theory and concepts

9. Decommissioning process • Understand – needs, resources, services and impact of proposed change • Plan – the future service and change management • Do – implement decommissioning plans and project manage • Review – impact on users and related services; embed change; performance manage new services; collate lessons learnt 9

10. Decommissioning principles • Decommissioning is always an option when commissioning • Create transparent processes, systems and decisions • Design services with users and providers • Move resources to early intervention and prevention • Close the gap between the advantaged and disadvantaged • Safeguard the welfare of users through any transition • Manage risks whilst encouraging innovation • Over communicate and focus on change management • Lead and design the system

11. Exercise: Decommissioning process • Consider each stage of the decommissioning process • Give examples of actions to be taken at each stage • What commissioning stages will you go through before a decision to decommission is made? • What overall factors help to determine decommissioning decisions? • Consider your experience of decommissioning • Which example principles were followed? • Which principles should have had more attention?

12. Change – theory in a ‘nutshell’ Prepare the organisationand individuals for change Realise the change Make sure that the change becomes ‘business as usual’ Un-freeze Move Re-freeze Source: Kurt Lewin

13. Processsystems, procedures, processes, plans Peoplebehaviour, attitudes, emotions, thinking, communication, collaboration, beliefs The ‘Change Burger’ Task (change) A B Source: Cockman, Evans & Reynolds

14. Exercise: Change • Consider a change programme that you’ve been through, and describe how the People and Process elements of that change were addressed • You are a commissioner asked to consider the decommissioning of a small service – what do you need to take account of in your decision, e.g. planning for change, provider / user involvement, demographics, alternatives, cost shift, local impact and reaction • You are a professional in that small service – what would you want the commissioners to take account of? How would you like to be treated?

15. Leadership – getting sign up • Senior leadership agreement to significant change is essential – particular where there is reputational, safeguarding or financial risk • Partnership board agreement is needed when • There is a risk of conflicting interest • Joint funding needs to be protected • Individual services may be connected and the impact can be wider than just the service to be decommissioned

16. Leadership – managing staff • The majority of resource in local government is people – it is a living, breathing and complex organism – effective leadership and management of staff is essential • Incentivise staff with a vision for how much better services can be, don’t incentivise around cuts • Be open, honest and fair • Communicate early through different channels • Involve tradeunions and politicians in changes • Consider TUPE, pension, contracts and legal issues • Manage staff through the negative and positive stages of the change curve

17. Check Out The change curve Optimism/Active Completion Uninformed Optimism Commitment Denial Shock Informed Optimism Enthusiasm Anxiety Informed Pessimism Relief / Anxiety Hopeful Realism Resistance Depression Time Acceptance Pessimism/Passive

18. Mature partnership boards • Board members model leadership behaviour and culture • Work to agreed vision, priorities, principles and commissioning strategies • ‘Safe’ place to challenge and discuss difficult issues • Use good commissioning to change services • Understand the system and use partner resources in the most efficient way • Ensure partners ‘own’ and ‘sponsor’ the changes • Hold partners to account and performance manage

19. Exercise: Leadership You are a partnership board member... • Consider a large commissioning change programme that you have experienced: • What information would you want at the Board? • How could you use your agency resources to secure the changes? • How would you incentivise and influence partners? • Thinking of the change curve: • How can you motivate and manage your staff through the different stages so that changes are successful?

20. Decommissioning III. Benefits

21. Benefits • Decommissioning is a fundamental part of the commissioning model for all local partners • Where the process is executed well, the impact on users, professionals and politicians will be addressed, service redesign is implemented more quickly, and change plans are more likely to be successful

22. Outcomes & Efficiency:Training Module IV. Practical Tips

23. Where to start? Some ideas... • Start with areas where you already have information, from research, consultation, contract monitoring, complaints, etc • Look at the largest budget areas, e.g. segmented by geography, age, needs, service types • Review multi-service interventions with groups of children or families – look to reduce the number of interventions • Ensure you know the cost of interventions (packages of care including on-costs) not just the cost of services alone • Seek out opportunities for innovation, charging, collaboration and co-production of outcomes

24. References • Decommissioning checklist and guidance, Department of Health, 2008 • Rochdale MBC Supporting People Decommissioning Process, 2008 • ERoSH good practice guide to decommissioning, 2006 • Improving performance through effective contract monitoring, Doug Gosling, Commissioning eBook • Commercial and procurement skills, DfE Commercial Group

25. Decommissioning V. Case study

26. Case Study: Small Children’s Trust • The Children’s Trust board developed a systematic way of to review its local priorities • Partners agreed a set of principles for reprioritisation, and a decommissioning checklist • When a partner identifies an emerging need to reprioritise resources, they share this with the Children’s Trust • All partner agencies explore the impact of reprioritising, identify potential solutions and agree the partners that will be accountable for implementing the solution

27. Decommissioning checklist • Have you developed clear commissioning plans? • Have you developed clear outcome specifications for the services that you intend to commission?  • Have you got a communications strategy? • Have you developed an appropriate training and development strategy for internal and external staff, and for elected members? • Have you got a clear, written and published policy for decommissioning services agreed by directors and members? • Have you conducted a risk assessment of decommissioning services? • Have you established a clear programme management structure?

28. Decommissioning checklist • Have you mapped commissioned services against your plans?  • Have you selected the services to be reviewed against your plans?  • Have you decided in what way services need to change? • Have you developed criteria against which to review services? • Have you undertaken a review of services against criteria?  • Have you decided which services will cease and documented why?  • Are you following the Compact2 agreement with voluntary orgs? • Are there any TUPE or pension issues to address? • Are there any commercial issues to address? • Which services could be retained if they changed sufficiently, and which will have to definitely close?

29. Decommissioning VI. Group exercise

30. Group Exercise • In small groups: choose a scenario and use the decommissioning checklist and change tools to plan the actions you will take as a commissioner... • Scenario 1: Reducing the number of children’s centres in the local area from 30 to 15 • Scenario 2: Changing youth services from universal to targeted and reducing the volume of services • Scenario 3: Moving school improvement services into an external social enterprise

31. www.commissioningsupport.org.uk