Written evidence from Koios Group Ltd
1. INTRODUCTION
The proposal under consideration by the Business,
Innovation and Skills Committee is the transition from the current
organisation of the RDAs to a new set of organisational arrangements
called LEPs. This transition requires a number of questions to
be answered and these are referred to under the list of "topics
to be considered".
It is suggested that for the consideration of
these topics and the derivation of the answers to the questions
implied by these topics some agreed "reference model"
is required.
Without the definition of such a reference model
it will be difficult to ensure that the topics considered will
be based upon a consistent and coherent basis and that the findings
will be defensible, (known as "evidence based" under
current Government procurement regimes).
The "reference model" needs to be
explicit so that arguments (based upon it) to support the new
organisation and the functioning of the resultant LEPs can be
shown to be desirable and practical and result in a "value
for money" solution to the requirement for this kind of organisation.
Given the existence of this explicit reference
model, the supporting arguments can be shown to be defensible
rather than merely statements of opinion.
2. THE FORM
OF A
"REFERENCE MODEL"
Both the RDA type of organisation and various
LEP options are particular ways (HOWS) of trying to achieve some
set of required purposes (WHATS). Without having a clear view
of the set of WHATS it cannot be known which set of HOWS represent
the "Best" way of organising them.
The proposed "Reference Model" is
a definition of the set of WHATS and the required interactions
between them.
Diagrammatically what is being proposed is the
following:
3. REFERENCE
MODEL DERIVATION
The process of deriving a Reference Model is
based upon a business analysis method called Soft Systems Methodology
(SSM). This method has been used successfully within the MoJ,
MOD, DWP, Home Office ODPM and other organisations in both the
public and private sectors for a number of years, (references
can be readily supplied).
Fundamentally, this method consists of two parts:
3.1 Deriving a set of statements of purpose (aims)
in a particular format related to the types of organisation under
consideration. These statements of purpose are agreed with a selected
number of stakeholders and form the basis for the derivation of
the reference model. The technical name for these statements of
purpose is Root Definitions since they have a particular structure.
3.2 Developing a systems-based model, which uses
the processes of logic only, to define WHAT must be done (together
with the interrelationships) to achieve the agreed statements
of purpose. These are known as conceptual models since they are
not models of reality but are models of concepts relevant to reality.
This reference model is independent of any organisational
arrangements and therefore represents a very powerful way of exploring
different organisations by mapping proposed roles, responsibilities
and relationships. Thus current RDA arrangements could be mapped
to identify current issues, role and relationship effectiveness
and efficiencies.
Of course the intention is to map proposed LEP
roles, etc. in order to define desired organisational arrangements
and to have the basis for undertaking the various assessments
required to demonstrate its working and resultant value for money.
However producing both a mapping of the current
RDA arrangements as well as the desired LEP arrangements defines
the required transformation from RDA to LEP. This can then be
costed and the most efficient and effective schedule for the change
derived. Overpage is an example of the format of a conceptual
model together with an illustration of how it might be used to
define organisational roles through mapping.
Since the language of the models is the language
of WHAT and not the language of HOW the activities are written
as "instructions". Examples of typical activities might
be:
THE FORM OF A REFERENCE MODEL RELEVANT TO
THE ROLE OF AN LEP
ORGANISATION MAPPING
As shown above, a model is always developed
to be larger in scope than the organisation under consideration
so that cross-boundary relationships can be defined as well as
the specific role of the organisation itself.
4. COMMITTEE
CONSIDERATIONS AND
THE REFERENCE
MODEL
4.1 The functions of the new Local Enterprise
Partnerships and ensuring value for money
The mapping of the accepted LEP boundary will
determine the functions required of it. These are equivalent to
the set of activities within the boundary. However, since these
are still defined as "WHAT is required", various "HOW"s
will need to be considered. Each "HOW" will utilise
specific resources and hence incur costs. The "HOW"
(way of doing the activity) can be chosen which represents a balance
between effectiveness and efficiency thus displaying value for
money.
4.2 The regional growth fund, and funding
arrangements under the LWP system
Some activities within the model will be concerned
with fund acquisition and the relation of these to "The external
facilitating activities" shown within the mapping picture
above will need to be explored and defined. Since these are derived
from the Reference Model they will be consistent with the other
activities.
4.3 Government proposals for ensuring co-ordination
of roles between different LEPs
Reference again to the illustration of organization
mapping given above, shows that relations with other LEPs will
already be included within the total Reference Model. Comments
about the Government proposals can be related to this area of
the Reference Model and consistent comments and conclusions derived.
4.4 Arrangements for co-ordinating regional
economic strategy
This is a consideration which may be external
to the Reference Model, but can be included through a mechanism
for relating some of the "External facilitating activities"
to this specific purpose.
4.5 Structure and accountability of LEPs
The construction of the Reference Model leads
to the inclusion of a variety of "Control" activities
concerned with groups of single purpose-based activities (these
are known as sub systems). The internal structure of the LEP is
derived from relating these "Control" activities to
a common structure, which defines the "Governance structure"
for the whole Reference Model. It is this structure, which defines
the internal organizational arrangements and the associated authority/accountability
requirements.
4.6 The legislative framework and timetable
for converting RDAs to LEPs, etc
Having mapped both the RDAs and LEPs on to the
Reference Model it becomes clear which activities will require
translation from one to the other and hence a defensible and well-defined
transition can be scheduled. This clear definition of translation
activities will facilitate the required discussions about the
legislative framework required. The timescale (and hence timetable)
for the translation will depend on the number, nature and complexity
of the identified translation activities, but it will be greatly
facilitated by knowing what they are. The transitional arrangements
are defined by the transition activities referred to above and
the residual spending will again be defined by identifying the
transition activities and their sequence within the derived schedule.
4.7 Means of procuring funding from outside
bodies
Fund procurement will be included within the
Reference Model, (see comments on 2 above).
5. CONCLUSION
AND PROPOSAL
The method, described in outline here, has been
well tested over many years in a variety of organizations across
the whole spectrum of UK plc.
The whole of the analysis is explicit and based
upon a specifically derived Reference Model. It therefore provides
a defensible audit trail to the outcomes and, since it involves
discussion throughout with selected stakeholders, (including the
Reference Model derivation) the outcomes are bought into as the
investigation proceeds.
It is also a very time-efficient method since
the construction of the Reference Model is measured in one or
two weeks, (depending upon stakeholder availability).
We believe that it would be useful to construct
such a reference model prior to further consultation so that the
considerations of the committee and the inquiry in general could
benefit from its use as illustrated in the previous sections.
We therefore propose to facilitate a 2-4 hour
session with the major stakeholders to capture their views of
the purpose(s) of the LEP and subsequently translate this into
a reference model to inform further policy development and to
address the issues related to LEP establishment and transformation
of the existing RDAs.
23 August 2010
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