Agenda item

Key Decision - Senior Management Structure

Report of the Director of Legal and Governance Services.

Decision:

RESOLVED: That

(1) the post of Chief Executive be deleted from the Council’s management structure with effect from 1 March 2014;

(2) changes to the Senior Management Structure as set out at appendix 2 of the report be agreed.

Reason for Decision: To clarify the Council’s senior management arrangements and budget position.

Alternative Options Considered and Rejected: As set out in the report.

Conflict of Interest relating to the matter declared by Cabinet Member / Dispensation Granted: None.

Minutes:

Cabinet received a report of the Director of Legal and Governance Services, which set out the recent consultation on the deletion of the post of the Chief Executive and revised membership of the Corporate Strategy Board. The report sought a decision on a proposed new Senior Management Structure.

The Leader of the Council referred to the Report of the Scrutiny Review Group on ‘Deletion of the Post of Chief Executive to the Council’ and invited its Chairman to address Cabinet in accordance with the Cabinet/Scrutiny Protocol.

The Chairman of the Scrutiny Review Group thanked all those who had participated and supported the Review Group, particularly the Scrutiny Manager for her hard work and research in regard to the subject matter.

The Chairman of the Review Group added that the report accepted the need for change but not the specific change in question. There was a need for ongoing changes in order to meet the growing financial pressures on local authorities. Change had been the norm which had been driven by senior officers in partnership with the Members, staff and unions. He added that colleagues who had participated in the Review Group had had differing views; some saw it as an excellent way of saving money and others felt that it was an imposition of a senior management structure that would inhibit change and partnership working. He reflected on the report and explained that whilst there had been consensus on the report produced by the Review Group, the Review Group had initially been looking to issue two separate reports. However, as Chairman of the Review Group, he had been challenged but had been determined that a consensus was possible.

The Leader of the Council responded to questions from non-voting non-Executive Cabinet Members and stated that:

· she had recognised that a weaker Leader would need support from a Chief Executive. However, she was a strong and confident Leader who had an excellent rapport with the Head of Paid Service and they would continue working in partnership. She could not comment on the requirements of an incoming administration who may need a Chief Executive costing £250k of residents’ money;

· partnership working and pooling of resources was the way forward during these challenging times and she looked forward to new ways of working;

· as the Leader of the Council, she had complied with the necessary legal requirements when considering the need for the post of a Chief Executive. It was within her purview to take a decision on the post.

A non-Executive non-voting Cabinet Member was concerned at the lack of consultation and debate on this key role within the Council and the limited information that had been made available to other Members. He did not support what he considered was an authoritarian style of leadership.

The Portfolio Holder for Communications, Performance and Resources disagreed with these sentiments and drew attention to the Review Group’s report which referred to a number of local authorities looking at alternatives to their senior management structures. He stressed that the administration was within its right to look at staffing at all levels during these challenging times and in order to ensure front line services remained intact. It was particularly important to explore how frontline services could be delivered effectively. The Portfolio Holder for Planning, Development and Regeneration cited an example of the Greater London Authority which has not looked back since deleting the post of the Chief Executive.

The Leader of the Council responded to questions on the manner in which the matter was being handled, the pace of the decision, and concerns over a lack of process and consultation. The Leader re-iterated that difficult decisions had to be taken and nothing should be left unturned in order to deliver key services. She was not perturbed with taking difficult decisions but accepted that Members had a right to express their views. The Deputy Leader of the Council stated that all structures and expenditure needed to be examined and challenged to ensure that they were fit for purpose.

The Leader of the Council responded to additional questions about the monitoring arrangements of the proposed new structure. She explained that all the Portfolio Holders would continue working closely with the Corporate Directors and that these relationships would be a useful source of feedback on the impact of the new structure. She noted that the Review Group’s report expressed a number of concerns but that she was enthused by change and stressed the importance of making decisions in a timely fashion. She also drew attention to the concerns expressed in the Scrutiny Review of the previous restructure in 2011, arguing that this suggested an inherent reluctance of some Members to accept changes in senior management.

The Chairman of the Scrutiny Review Group thanked the Leader for the contribution she had made at a meeting of the Review Group and hoped that Cabinet would not vote to delete the post. He stated that it was important that Members set policy and officers set the process for its implementation, as micro-management was not good business.

In conclusion, the Leader of the Council stated that it would be for the incoming administration in May 2014 to propose a different structure if they wished but she was confident in the structure proposed. Whilst acknowledging that changes brought challenges with them, she was not perturbed by making changes which needed to be made.

The Leader of the Council thanked all Members for their comments.