Cordia LLP Service reform in the public sector case studyPlease e.docx

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Cordia LLP: Service reform in the public sector case studyPlease explain the cultural web for Power and Rituals. CASE STUDY Cordia LLP: service reform in the public sector David Potter and Gerry Johnson Throughout the world governments - central and local - are wrestling with how to manage increasingly pressured budgets, increase efficiency and improve quality of services. Glasgow City Council in Scotland has made structural changes to its services that are amongst the most radical in local government. Cordia is the result of one such change. Previously Cordia was a Council department. In 2009 Direct and Care became a Limited Liability Partnership ILLP) with the remit to develop its services as a business operating at 'arm's length from the Council. But what would be involved in developing and implementing a strategy to deliver the benefits of such a change? Introduction Direct and Care Services (DACS) was adepartment of Glasgow City Council. It provided school catering, home care services and facilities management to other depart- ments of the council and more prestigious catering services to public and private sector customers through Encore Hospitality Services. The department had been led by Fergus Chambers as Executive Director. Changes were triggered when, in 2008, Glasgow City Council settled an equal pay dispute which resulted in manual pay rates for DACS employees increasing by an average of 20 per cent Fergus explained: Source: Brendan Murphy Card by the Council and we still have politicians on the Board So the
Council still controls the strategic direction. The overall beneficiary is, of course, ako the Council. If we generate profits they will either be re-invested or given back to the Council. But as a LLP we can trade as an independent company. We are no longer bound by Council niles and regulations. Our predominantly female workers were graded at the same level as the predominantly male workers in other Council departments. But in many of those departments the male manual stall got bonuses and therefore we were open to pay disputes, we were not equal pay proof. We had to compensate staff over the last 5 years. We ako had to developa new pay and grading structure for the future. I have to break even over a 3 year rolling period, so the Council decided that if we did not improve upon our competitive position they may have to con- sider other models for some of the services we offered The favoured solution was a limited liability partnership (LLP). That means that as an LLP we would start on day one with a clean bill of health financially and it would give us a chance to improve efficiency over time. It would give us breathing space. We would not have to face an immediate competitive position. Sowe were established as an LLP. 99.9 per cent of the LLP is owned by the Council: the balance is owned by a company that is also owned In 2009 the department and all 9000 employees were transfered from the Council to Cordia (LLP),Fergus was appointed as Managing Director of the new business. Organisational structure and culture The new business inherited disparate service divisions from its former
status as a council department. In 2009 these remained

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