BT’s Peter Russell: partnership with government
A summary of BT’s work with government and the difference it makes.
BT has developed an impressive track record of providing transformation for local and devolved government bodies, including those in Northern Ireland. Our expertise in this arena has evolved to complement BT’s long-standing core competency in ICT. It now embraces innovative commercial models, a complete range of people and change management skills, and the ability to deliver economic benefits such as job creation and regeneration at a regional level.
Here is a look at our track record: different challenges, bespoke solutions, and the consistent delivery of significant benefits.
Case Studies
In 2000, BT was chosen as strategic partner by Land and Property Services for Northern Ireland (LPS), formerly known as Land Registers of Northern Ireland (LRNI). The agency is responsible for recording details of legal interest pertaining to land in Northern Ireland. LRNI was faced with legislative change, reliance on paper records and manual processes and a requirement to enhance customer service.
BT provided the capital for the transformation programme, and an incentive structure was created to drive growth of the LRNI business. BT delivered a range of systems integration and implementation services, as well as change management and business consultancy and a full upgrade of the
LRNI ICT estate. The outcomes have included major productivity gains, customer satisfaction and external recognition for the project.
At about the same time, BT was embarking on a strategic joint venture with Liverpool City Council, creating Liverpool Direct Ltd., with a £58 million investment from BT to enable a wide range of service improvement initiatives. As with LRNI, ICT transformation was fundamental, along with creation of call centre capability to drive customer service and process re-engineering. BT also effected significant culture change for the council, creating HR and payroll systems that foster a proactive, engaged ethos.
In the first five years of the partnership, the council’s cost base was reduced by over £100 million, and Liverpool went from being a poor performing council to one showing upper-quartile performance across all its KPIs when measured against industry standard. Employees and users of the council have benefited immensely.
In 2008 BT embarked on a radical and ambitious partnership with South Tyneside Council, with objectives far beyond business transformation alone. Given the economic decline of the 1970s and 1980s in the region, the council has decided to prioritise socio-economic regeneration alongside the improvement of already high-performing authority services.
BT has created a wholly owned subsidiary, BT South Tyneside Ltd., which has committed to investing £23 million in service transformation. BT is also committed to creating 750 jobs over the 10 years of the partnership, generating over £200 million in gross value-add. Targeted reductions in procurement costs, streamlined processes (for example, for housing benefit claims) and enhanced benefits and career opportunities for council staff who transferred to BT South Tyneside Ltd via TUPE, are also part of the commitment.
The early indications point to success on Tyneside. 375 jobs were created in the first two years, ahead of the target of 300, with another 280 announced just last month. 84 per cent of service performance indicators have improved, and customer and employee satisfaction ratings are both above 90 per cent. BT’s approach is delivering on the ambitious commitments made to the people of South Tyneside.
Looking to the future, BT has just signed a strategic, 10-year partnership with Lancashire County Council which has resulted in the creation of a jointly owned subsidiary, One Connect Ltd., to provide ICT and back office services for the county council and schools in the region. Among other benefits, this will deliver £100 million in savings to the council over the lifetime of the deal, by delivering new technology more quickly, and providing core services such as HR and payroll more effectively.
The challenge for Northern Ireland
HM Treasury’s consultation document of March 2011, “Rebalancing the Northern Ireland Economy”, summarised the UK Government’s view:
“The Northern Ireland economy faces major challenges over the next decade [the] economy has some historical strengths which it can build on, underpinned by the peace process. However, it also has some long standing weaknesses such as the low productivity and low employment rates.”
This is a challenging message to leaders and stakeholders in the economy here, but the opportunities to drive productivity and employment cannot be ignored. Technology can be the cornerstone of improving existing services and delivering new ones, but BT has now developed the innovative commercial and partnership models that allow the management of risk, the transformation of capability and the delivery of wide-ranging economic benefits.
Ed Vernon is Strategic Advisor to BT Ireland, and his comment on how to respond to the challenges of the last few years is resonant: “Business leaders have become more risk-averse and need to reinforce financial disciplines. They need to be flexible with costs by aligning to incentives and performance; move online to drive scale and efficiency; bring in others to look out for blind spots; and stay close to their people and customers.”
At BT, we believe our track record demonstrates what we can offer local and devolved government authorities in Northern Ireland, building on the strategic partnerships and shared services we are already delivering with the public sector here. Our local expertise is available to co-ordinate and leverage the experience of our global brand and capability.
Testimonials
Our partners discuss their experience working with BT
“We were impressed with BT’s track record and its technology made the proposal stand out. BT’s innovative approach to financing the project was extremely attractive to us and made the whole programme possible.”
Wally Gamble landweb Project Manager Land Registers of Northern Ireland
“We’re getting the benefit of BT’s expertise in communications technologies as well as support for the process of business transformation. I think that’s a pretty compelling offer. The joint venture partnership with BT has been a huge asset in the recovery of Liverpool and the transformation of the city council.”
Colin Hilton Chief Executive Liverpool City Council
“We were looking for a partner to help drive the long term strategic priorities of South Tyneside. With a proven track record, we chose BT to help improve economic prosperity, generate significantly more jobs and locate BT’s local government operations in the borough, kick-starting our major regeneration of the South Shields riverside.”
Martin Swales Chief Executive South Tyneside Council
“Almost two years in, the partnership has met or exceeded all service delivery targets. Despite the recession, job creation is now ahead of schedule, the business centre is under construction and savings are being delivered to the council as promised. Satisfaction amongst TUPE’d staff remains high. As an excellent council our standards were high and BT has shown that our outsourced services and staff are in safe hands and that they can be relied upon to deliver what they promise.”
Alan Holt Partnership Director South Tyneside Council
To find out more about BT’s new model for central and local government in Northern Ireland, please visit us online at:
www.btnorthernireland.com/business
