Members have agreed to consider implementing a Target Operating Model (TOM) approach to Council planning. The aim of such an approach is to develop a view of what the Council could and should look like in the medium to long term. Once this view is understood and approved, it can be used underpin planning and resource allocation that will support delivery of the changes required.

The budget report approved by Members in March 2023 noted that as part of the development of the TOM, a set of principles would be produced that could be applied by Services as they work through what changes need to be made, particularly in relation to savings delivery. The set of principles is effectively phase one of the TOM project and if approved by Members these principles will be adopted by Services. As noted in the budget report, these principles should provide reassurance to Members that all of the appropriate options and approaches have been considered when proposals are being developed.

A working group of Chief Officers was established to develop the draft principles. The draft principles have also been considered by the Senior Leadership Group (the full Chief Officer group) on several occasions. The 11 principles are presented for Members consideration and approval. It is recommended that if approved, these principles will be referenced in future reports to committee where appropriate.

Officers will use the TOM principles to develop, assess and deliver any service changes and the associated savings. All savings recommendations put forward will align with the TOM, minimise discretionary spend and allow the Council, as a smaller organisation, to focus on achieving the priorities set out in the Council Plan.

A full TOM approach is complex and resource intensive. The TOM working group is considering what a second phase of the TOM development process could look like for the Council and will assess the resource requirements alongside the potential benefits. This process is likely to take some time and is unlikely to produce any output before the February/March 2024 budget meeting. Progress updates will be presented to Members as part of the Financial Strategy update papers.

Principle 1: We are a smaller, more focused, and efficient organisation

To achieve our savings targets, our number of FTE staff will reduce significantly. The slimmed‑down Council will be focused on the priorities set out in our Council Plan, with an emphasis on targeting resources to statutory services and areas of greatest need.

Principle 2: There is greater emphasis on partnership working

Communities are empowered to be less dependent on services that we have traditionally provided. We signpost to partners, encourage community self‑sufficiency, and work with partners to provide joined‑up services that are customer focused.

Principle 3: We focus on prevention and early intervention

Using Scottish Service Design principles, we aim to reduce costs while improving outcomes for individuals and families by reducing demand for services.

Principle 5: Our workforce is flexible, adaptable, and focused on front‑line delivery

Our workforce will be empowered to respond to customer needs using the right tools and technology. Repetitive and low‑value tasks will be automated and reduced.

Principle 6: Our staff have the right skills to focus on our priorities

Staff will be given the opportunity to reskill and retrain. We make use of flexible working arrangements, accessing diverse pools of skills and capabilities.

Principle 7: Digital self‑service is the default means of accessing council services

We aim for seamless end‑to‑end self‑service with more transactions capable of being successfully completed in a single visit. We offer digital advice and support to those who need it.

Principle 8: Digital transformation makes our services accessible, responsive, and efficient

We will take full advantage of digital technology to improve and transform our services.

Principle 9: We use data to better plan, manage, and design services

We will improve our use of data, analytics, and insights to better respond to customer needs and focus resources on our priorities.

Principle 10: We significantly reduce our number of buildings, only retaining those that are core to our business

Our asset portfolio will be cost‑efficient, consist of better‑quality buildings, and minimise climate‑change implications.

Principle 11: We make best use of all community assets, maximising sharing with partners

We focus on our localities and develop our service offerings based on place‑based strengths and needs. We maximise opportunities for sharing assets with partners. Communities own and operate their own local assets.