Agenda item

Purpose:  To set out the final proposals for a new emergent senior management structure which, if agreed, would start to be implemented from April 2019.

Resolved that:

(1)       the consultation comments in paragraphs 2.21 – 2.29 of the main report be noted along with the resulting commentary;

(2)       the proposed new management structure outlined in Appendix E2 be agreed subject to further consideration of the Service Director (Children and Young People) post at an appropriate point in the future;

(3)       the proposal to implement this new management structure from April 2019 (subject to consultation) be noted, and that implementation of the new structure will be emergent;

(4)       appointment to the post of Executive Director (Resources) commences immediately in accordance with the Person Specification, Job Description and Remuneration set out in Appendix F.  The Personnel Committee will be asked to authorise that this post is assigned the Council’s Section 151 Officer if this recommendation is approved;

(5)       an annual review of the progress with implementing the management structure is undertaken by the Head of Paid Service to determine whether sufficient progress has been made with implementing the new arrangements;

(6)       on the subsequent appointment of Service Director posts, the Tier 4 management arrangements be reviewed and proposals brought forward on a Department by Department basis by the Service Director working to an agreed corporate framework;

(7)       a paper specifying remuneration levels for the Chief Executive, Executive Director, and Service Director posts be brought forward by the Head of HR after April 2019 and that this includes an option to enhance the current grade structure to assist recruitment and retention at Tier 4.

This decision is eligible to be ‘called-in’.  However, if the decision has not been ‘called-in’ by 5.00pm on 4 April 2019, then it will be implemented.

The Executive considered a report (Agenda Item 8) which set out the final proposals for a new emergent senior management structure which, if agreed, would start to be implemented from April 2019.

Councillor Graham Jones commented that a strong and stable senior management structure had been in place at the Council for many years. However, some Heads of Service had retired and others were due to retire in the relatively near future and therefore this emergent senior management structure had been put forward. While an efficient and, as much as possible, a cost effective structure would continue to be in place, a need for enhanced strategic capacity was reflected in the proposed new structure as was the need for different skill sets.

Councillor Graham Jones continued by explaining that the senior management review was not driven by a desire to find savings. There was however an expectation that the changes, including enhanced remuneration, would be met from within the existing budget envelope. Overall financial savings would be delivered through reducing the number of senior managers at Tiers 1 to 3. This was likely to be offset by an increase in remuneration but more significantly by a likely increase in capacity and capability at Tier 4. The appointment of an Executive Director (Resources) would create a budget pressure although this would be offset in part by a reduction in the numbers of Heads of Service within the Resources Directorate. It was recommended that any short term budget pressure emerging during 2019/20 would be met from the Restructuring Reserve.

Councillor Lee Dillon advised that the Liberal Democrat Group had received a briefing from the Chief Executive on this report and its proposals. While concern had been expressed of the potential for increased costs, it was felt that the phased approach to the new structure was sensible with implementation as and when Heads of Service retired.

RESOLVED that:

(1)       the consultation comments in paragraphs 2.21 – 2.29 of the main report be noted along with the resulting commentary;

(2)       the proposed new management structure outlined in Appendix E2 be agreed subject to further consideration of the Service Director (Children and Young People) post at an appropriate point in the future;

(3)       the proposal to implement this new management structure from April 2019 (subject to consultation) be noted, and that implementation of the new structure will be emergent;

(4)       appointment to the post of Executive Director (Resources) commences immediately in accordance with the Person Specification, Job Description and Remuneration set out in Appendix F.  The Personnel Committee will be asked to authorise that this post is assigned the Council’s Section 151 Officer;

(5)       an annual review of the progress with implementing the management structure is undertaken by the Head of Paid Service to determine whether sufficient progress has been made with implementing the new arrangements;

(6)       on the subsequent appointment of Service Director posts, the Tier 4 management arrangements be reviewed and proposals brought forward on a Department by Department basis by the Service Director working to an agreed corporate framework;

(7)       a paper specifying remuneration levels for the Chief Executive, Executive Director, and Service Director posts be brought forward by the Head of HR after April 2019 and that this includes an option to enhance the current grade structure to assist recruitment and retention at Tier 4.

Other options considered: An independent review by South East Employers is set out at Appendix D. This highlights the structural options that have been explored as part of this review. In practice there are not many to choose from. Further potential options are also briefly set out within this paper. The retention of the status quo has not been actively considered given it is deemed necessary to review remuneration levels and if these increase then there is a need to contain the overall cost of any new senior management structure within the existing financial envelope. This can only be done through restructuring.