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If you work in the public sector, you can access our good practice database and other useful information via the Public Sector Benchmarking Service.

Chapter 7

Use Resources Effectively

'Use resources effectively to provide best value for taxpayers and users.'

Best Value

Best Value could be considered as the provision of services that residents want, delivered effectively and shown to be of the quality and cost demanded by them.

Best Value incorporates the concept of value for money but in a wider context involving community consultation and, where appropriate, the development of cross-agency partnerships (both public and private).

To demonstrate Best Value it is necessary to show that resources have been well managed and put to the best effect. One way of demonstrating this is to benchmark activities, results and resources against those of other similar local authorities.

As an aid to using resources effectively, monitoring unit costs of activity can be helpful. Within an organisation the promotion, in part or full, of 'zero based budgeting' (i.e. starting with a blank piece of paper) can re-focus priorities on areas of prime need.

Performance Indicators and Standards

In order to compare performance against service standards and to gauge the overall effectiveness of services, it is important to have performance indicators. Many authorities have Voluntary Performance Indicators in addition to the Audit Commission Indicators. (See Appendix 1 for some examples that have been drawn up and are used by En-Charter members.)

The Chartered Institute of Environmental Health is currently drawing up performance standards which will enable authorities to compare like against like.

Benchmarking

Benchmarking is a central requirement for showing good/best value in service delivery.

Recommended Approach to Benchmarking for Best Value Assessments

Source: Cheltenham Borough Council and East Herts District Council

Planning

	Identify the parts of a service which need improvement e.g. complaints handling, response times, expenditure control.
	Identify the resources needed to undertake the exercise - collect preliminary data e.g. Audit Commission Performance Indicators.
	Identify similar organisations against which to benchmark.
	Agree and confirm data collection processes and a timetable for the study with your benchmarking partners.

Mapping

	Processed documents using a common approach agreed amongst partners.
	Use simple box diagram charts, flow charts or bullet points.

Analysis

	Research differences in resources and approach between your own organisation and that of your partners.
	Plan the changes and set an action plan including tasks, responsibilities and targets - get everyone on board and everyone involved.
	Monitor and review to ensure that real and permanent improvements are resulting.

Review

	Measure yourself against your targets to check whether you are achieving what you set out to do.
	Take corrective action where you are falling behind.
	Make sure that everybody knows the results of what has been achieved.

Specific Best Value Initiatives

There are very many ways of producing enhanced savings and efficiencies. Staff costs are invariably the biggest element in providing a service and offer the most scope for efficiencies. In addition to looking at staffing arrangements, new technology can lead to savings. Some organisations have found that new technology has made effective the remote working of field staff.

It is important that resources are used in proportion to the required need as there is little point in devoting excessive resources on trivial or unimportant issues.

Examples of Good Practice

	Obtaining sponsorship or grants to help offset costs.
	Generating income from training events etc.
	Use of IT to save staffing costs e.g. automated noise-recording systems.
	Setting of realistic fees to ensure full recovery of costs.
	Developing contracts in conjunction with contractors which offer Best Value, rather than just taking the cheapest price.
	Publishing information (in Newsletters and Annual Reports) on the costs of specific services.
	Involving staff by increasing awareness of financial plans.
	Inviting staff suggestions to improve value for money.
	Working with other authorities to carry out management and enforcement consistency reviews and audits.
	Time and performance monitoring of staff.
	Joint comissioning of external consultants.

CASE STUDY 16 : Care and Repair Scheme for Energy

(Source : East Herts District Council)

Introduction

In essence, the scheme is a one-stop shop (called CARE) and is run in parallel with a Housing Association Care and Repair Scheme.

Service Development

The CARE One-stop Shop provides energy advice, surveys, discount insulation measures, and assistance with obtaining grants and loans as required to carry out energy insulation measures. This scheme was the subject of an Energy Savings Trust Home Energy Conservation Act (HECA) Action Award of £50,000.

The Benefits

Detailed energy surveys are available to those people who normally use the Care and Repair Scheme i.e. those on low income and vulnerable groups.

Discounts were negotiated with the Home Energy Efficiency Service (HEES) installers who operate in the local area providing cost savings to service users. A partnership was also formed with a neighbouring Council which had previously won HECA Action Award funding for setting up a company to train unemployed people to install insulation.

Feedback Received

At the time of publication the scheme had not run a full year so formal feedback was not available. However, the expected take up of advice by residents exceeded the level anticipated by nearly 300%, indicating strong public interest.

Comments

This customer cost-saving service at no extra cost to the residents of East Herts.

CASE STUDY 17 : Air Quality Monitoring

(Source : Cheltenham Borough Council)

Introduction

Cheltenham Borough Council is providing real-time air quality monitoring data in partnership with a major equipment supplier located within the heart of its urban area.

Service Development

The partnership stems from the Council's wish to undertake the monitoring and the supplier's wish to have a live-running demonstration site. The Council purchased the equipment on favourable terms and the supplier provides the site and power and undertakes the maintenance.

Benefits

Real-time air quality monitoring equipment is very expensive to buy and operate. As a result of the partnership the Council has achieved significant capital and revenue savings while gathering more data than its own resources would have allowed, and the supplier has its demonstration site.

Feedback

As the partnership arrangements are very new no feedback has been received to date, but will be facilitated in due course.

Comments

Apart from the significant financial benefits to the Council, the partnership deal enables comprehensive air quality data to be collected. This enables the Council to make informed decisions and to provide appropriate information to its customers for them to make informed choices.

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Last updated: June 1999