Agenda item

Report of the Chief Executive

The Chief Executive introduced the report and reminded Members that in July 2017 Council had resolved that a phased approach to the review of the authority’s senior leadership team and service managers be undertaken. This report aimed to put in place the key building blocks for an executive board structure with the necessary skills, capacity and capabilities for the future.

She highlighted that going forward it was important for Members to have confidence that the council’s finances continued to be managed well and that officers safely navigated through issues such as business rate retention and the fair funding regime. It was also important that the necessary skills were in place to strike a balance between taking more commercial opportunities whilst maintaining our reputation of strong financial stewardship. The first key building block therefore related to financial sustainability and was reflected in the post of Executive Director-Finance and Assets.

The Chief Executive went on to say that the proposed executive board structure reflected the broader approach to place shaping in its widest sense which was not simply limited to economic growth and developing the physical place in a way that was sustainable but also reflected an ambition for inclusive growth as well as contributing to the sense of place and how Cheltenham felt as a place. This was reflected in the second key building block in the post of Managing Director Place and Growth.

She then highlighted that gaps had been identified in the current executive board team principally in relation to capacity coupled with experience and capabilities in authority-wide service modernisation and organisational change. Work was currently underway to consider what the future service management organisational model could look like  and that a very high level initial business case was being developed. She highlighted that the potential level of change should not be underestimated and therefore the third key building block was reflected in the new post of Executive Director People and Change.

The final issue which arose from her assessment was that of capacity at executive director level to both manage and deliver key corporate projects whilst also delivering authority wide modernisation. The need to address both these issues had therefore informed the proposal to create the new Executive Director post. This would result in the Director of Resources and Corporate Projects post being deleted, and with his agreement, the current post-holder flexibly retiring and his appointment to a new transitional, part-time role of Director-Corporate Projects.

The Chief Executive reported that formal consultation had taken place with those directly affected and this was reported to the Appointments and Remuneration Committee in January. The financial implications of this phase 1 review were outlined in the report with the flexible retirement approach being of less cost to the authority than compulsory redundancy as well as retaining for a period of time a very experienced director. In addition, she explained that the budgetary cost of recruitment to the new Executive Director post would also need Council approval.

Finally she stressed how vital it was that the senior officer leadership foundation of the authority had the necessary skills, capacity and capabilities for the future.

The following questions and comments were raised and responses given :

• A Member asked whether this new role would be being proposed if revenues and benefits had been transferred to Publica.  In response the Chief Executive said that in any case a different organisational structure would have been in place if that had been the case.

• Some Members felt that this was a sensible way forward, recognising the unprecedented level of change local government had been subject to. It was now vital that the business was fit for purpose.

• A Member believed that the proposed structure would enable the authority to grow and this was particularly important given the potential impact of Brexit in terms of the economic growth of the town and the role of young people.

• The flexible retirement approach for the existing Director Resources and Corporate Projects was commended as this would mean in the transition period the authority would still get the benefit of his experience and in return the postholder would regain a work-life balance.

• Some Members believed this to be a piecemeal approach and believed there was no overview of where the authority would be in 3-5 years’ time.  In response the Chief Executive explained that the Appointments and Remuneration Committee had received two reports on the proposals for the restructure in December 2017 and January 2018 respectively.  The proposals did take a whole authority view and her view was that it did present a cohesive and coherent structure. She added that a commercial focus was key over the coming years the ambition for the authority had changed.

• A Member questioned why one Director was being flexibly retired whilst another was being recruited.  He referred to costs of £400k spent on restructuring roles in the last two years which included increments for responsibility.  He had no confidence in the proposals which he expected may change further in six months’ time.

• A Member expressed concern that where a Member was unable to attend a committee then substitutes should be arranged. It was important to acknowledge that the organisation should evolve with this. Each time the Appointments and Remuneration committee had met it had considered a proposal it was accompanied by a business case and explanation.

• In response to a question the Chief Executive confirmed that there were three elements to the cost of the flexible retirement of the Director Corporate Projects. Firstly, the salary for the individual for agreed period, secondly the redundancy at the end of the 2^nd year and the pension one off cost.

• The Chair of the Appointments and Remuneration Committee highlighted how vital it was that the organisation was fit for purpose. The council had an ambitious programme which would benefit the people of the town and the senior leadership team would be the best it possibly could be. The council was now operating in a different world driven by cuts in central funding. She welcomed the proposals which would add to the financial sustainability of the authority.

RESOLVED THAT

1. the new Executive Board structure as set out in section 4 and Appendix 2 of this report be approved in accordance with the recommendations of the Appointments and Remuneration Committee at its meeting on 29 January 2018.

2. a budget of £18,000 be approved to enable the recruitment of the new Executive Director post to be funded via the Pension and Restructuring earmarked reserve.

Voting- For 32, against 1, abstentions 0.