Appendix B

Shared Legal Services

Alternative Business
Structure (ABS)

Target Operating Model

20th October 2017

Slide 1
Introduction
• The purpose of this slide deck is to describe the future design for the London Arm of LGSS Law Ltd and includes the
information listed below. It summarises how the London Arm of LGSS Law will operate at a high-level and provides
overall principles to inform detailed design activity, including future case management system and finance processes,
which will be developed as part of implementation.

Contents:
• Vision (slide 3)
• Objectives (slide 4)
• Scope & Purpose of LGSS Law London Arm (slide 5)
• Design Principles (slide 6 and 7)
• Target Operating Model Description (slides 8 - 12)
• Service Offers (slides 13 - 15)
• Organisation (slides 16 & 17)
• Establishment (slide 18)

Slide 2
Vision

A social enterprise law firm providing excellent,

responsive and value for money legal services to
shareholder Councils and other clients, including
not-for-profit and public sector organisations.

Slide 3
Objectives
• Continue to improve on the good quality legal advice and support provided
to clients
Improve • Improve responsiveness for clients across all teams
Client • Increase the scale and resilience of the service
Experience • Increase expertise and specialisation by creating centres of excellence
(e.g. Compulsory Purchase Order, Assets and Community Value)
• Attract, develop and retain the best staff

• Develop the required ABS business-like approach and discipline (an

imperative for change) while retaining the best of the public sector ethos
Increase
Efficiency • Retain the core legal work which has been lost or will be as part of
& Councils’ joint venture organisations
Reduce • Reduce the cost of Legal services to the owner Councils through
Costs economies of scale
• Significantly reduce Councils’ spend on external legal advisers.

Generate • Generate income from new clients.

Income / • Develop new markets, e.g. charities and not-for-profit organisations
Surplus

Slide 4
Scope & Purpose
LGSS Law London provides excellent, responsive and value for money legal advice and representation to its
shareholder Councils and other clients, including not-for-profit and public sector organisations.

The purpose of LGSS Law London is:

•To act as the principal legal service for shareholder Councils, ensuring that they deliver services and meet statutory
obligations in a manner that is lawful, cost-effective and responsive.
•To fulfill the role of intelligent client with responsibility for managing all external legal support on behalf of the shareholder
Councils, enabling a single view of total legal spend.
•To ensure that shareholder Councils receive professional legal advice, advocacy and litigation services that cover for
example: Contracts, employment, planning, highways, licensing, commercial property, housing, regeneration, housing
litigation, general litigation, prosecution, adult and children social care, education, public-private partnerships and joint
ventures, in addition to all over arching local government corporate law.
•To provide high quality legal advice to all three councils, individual councillors, chief officers and senior managers,
including personal attendance and advice at business boards, cabinets, committees and council meetings.
•To provide and ensure there is a statutory Monitoring Officer for all shareholder councils and ensure compliance with the
requirements of relevant legislation in respect of the councils’ constitutions and decision-making processes.
•To act as key adviser to the shareholder councils and their Members on issues of ethics and probity.
•To ensure that the shareholder councils’ corporate governance frameworks are reviewed and modified as necessary, to
meet legislative requirements as set-out from time to time.
•To support corporate projects and events such as elections.
•To appoint and oversee the input of counsel as required, acting in the interest of the clients.
•To generate income from new clients and develop new markets, including charities and not-for-profit sectors.
•To ensure that effective casework management and quality assurance systems are in place to enable transparency and
accountability.

Slide 5
Design Principles
Structured and consistent strategic relationship mgt to help clients achieve their aims & objectives

Access to greater breadth & depth of legal expertise across a larger team at a reduced cost
Customer
Client self-service is maximised for routine legal work through training, toolkits & information

Intelligent client* for external legal support is managed by LGSS Law on behalf of all shareholder
Councils providing a single view of total legal spend.

Shared Legal Services forms a London arm of LGSS Law Ltd

If expertise is unavailable or clients require, private firms on or off panels/frameworks are used.

Organisation Multi-specialist teams support complex corporate and service specific projects.

Performance is monitored through a defined set of management information

Ability to generate 20% of turnover as external profit-making income

Staff demonstrate the business-like approach (with public sector ethos) required of the social
enterprise law firm.

Staff are experienced in their area of work, self managing and are consistently responsive to clients.
People
Staff are willing and able to work in multi-specialist teams and embrace a matrix mgt. approach.

Line managers support and develop staff to achieve maximum efficiency and performance.

LGSS Law is committed to the development of staff and future public sector lawyers.

Slide 6
Design Principles
A single trading account, significantly reducing the administrative burden and staff costs.

Transactional processes are streamlined to make it simple and easy for clients.
Process
Support overheads are shared across the wider merged team, reducing costs through economies of
scale

Differential charging rates are used (owners vs. non-owners) to maximise savings for shareholders

Team members are fully equipped with the right facilities, systems and resources to deliver
responsive and effective legal services from any location.
Infrastructure
Systems comply with the high levels of security and performance demanded by the SRA .

* See slide 10 for an explanation of the proposed role of LGSS Law as an Intelligent Client (or gatekeeper) for shareholder
Councils for all external legal procurement.

Slide 7
Target Operating Model Pictogram
LGSS Law Shareholders

RBKC WCC Other H&F JVs Other public

Clients Clients Shareholders Clients Clients sector bodies

Selection of Counsel &

Solicitors (based on
most competitive rates)
Strategic Relationship Management

Client Self-service for routine legal work

Greater breadth & depth of legal expertise

Intelligent Client for all External Legal Support

Social Enterprise Law Firm

(London Arm of LGSS Law Ltd)

Slide 8
Target Operating Model Description
Corporate Structure
•The newly expanded company will require a newly configured board and management teams.
•The existing Director of Shared Legal Services will be invited to join the LGSS Law Board as a second Executive
Director with primary responsibility for the London Arm.
•RBKC and WCC will be invited to nominate an officer to join the Board as a Non-Executive Director to represent their
interests. The Board currently meets on a quarterly basis.
•Managing Director role – This is not a new post so will not incur any additional cost as the two Executive Directors will
each have an additional responsibility to fulfill this role on a two year rotating basis. For the first two years the Managing
Director role will be fulfilled by the Executive Director of the London Branch.
•Chief Operating Officer – This new post will be created to manage finance and operations across LGSS Law London and
Outside London. This role will be equal in seniority to the two Executive Director roles and have an equal vote on the
Operational Board.
•In terms of the Shareholders, each of the councils will hold shares and be entitled to nominate a Shareholder
representative to attend General Meetings and to exercise their shareholder rights. This representative would be an
elected Member nominated by each Council.
•The General Meeting currently meets on a 6th monthly basis and as necessary. Meetings may be virtual and written
resolutions are permissible.

Executive Director Appointments

•The LGSS Law Board has responsibility for appointing Executive Directors but the WCC and RBKC Non-Executive
Directors will have final say over appointments of the Executive Director of the London Arm.

Corporate Responsibilities
•Legal services support for corporate activities will continue as at present (e.g. corporate projects, support for elections).

Slide 9
Target Operating Model Description
Working with Members
•The Executive Director will attend all Council, Cabinet and Informal Cabinet meetings for WCC. The Chief Solicitor for
Planning & Property will attend all Council & Cabinet meetings for RBKC if the Executive Director is unavailable.
•These three senior officers attend other Committees as required.
•The Executive Director will attend regular meetings with the Cabinet portfolio holder in RBKC and WCC (Policy Board in
RBKC and the Cabinet Member for Finance, Resources and Customer Services in WCC).
•All senior staff will be involved in responding to Member queries and to provide briefings.
•Appropriately trained and specialist legal staff will attend various committee meetings (e.g. planning and licensing)
advising members, as appropriate, on governance and legal processes.

Strategic Relationship Management

•A named Chief or Principal Solicitor will provide a single point of contact / liaison for each department, for example on a
quarterly basis attending departmental management team meetings to support departments with horizon scanning and
anticipating upcoming legal support needs.

Client Self-service
•Information will be made available on a self-service website for clients to access information and templates on dealing
with routine matters and on how to provide effective and cost efficient instructions to LGSS Law.

Slide 10
Target Operating Model Description
Intelligent Client (Gatekeeper Role) for all External Legal Procurement
•LGSS Law will operate as the intelligent client for all external legal procurement on behalf of the shareholder councils to
enable a single view of all legal spend. This will require Executive-level buy-in and be facilitated by effective strategic
relationship management.
•In order to enable this, all requests for legal support will be managed by LGSS Law as a gatekeeper and a decision made
in conjunction with the Council client (based on the requirement and business case) on whether legal support will be
provided internally or by an external firm.

Process
•Commissioning of all legal support will be managed via a single streamlined finance process which will ensure that all
work undertaken has a purchase order and is invoiced appropriately to ensure SRA (Solicitors Regulatory Authority)
compliance and to provide clients with full transparency of their legal spend.
•A single case management system (DPS) and process will be used across LGSS Law to enable a standard way of
working (ie. workflow) and to maximise efficiency, including shared working across LGSS Law.
•The single streamlined case management, finance process and system will enable effective monitoring of service
performance through complete and transparent management reporting.

Financial Model
•LGSS Law will operate a single trading account with differential charging rates between shareholder clients and external
clients. In addition to passing value back to the Councils through discounted rates, the single trading account will also
increase efficiency by avoiding the current need to manage recharges between Councils for legal services provided
(currently required to avoid any cross subsidisation between Councils).
•LGSS Law will be able to generate income through trading with external clients up to a maximum of 20% of turnover.

Slide 11
Target Operating Model Description
Business Development
•Business development will be facilitated through the strategic relationship management role, which will anticipate clients’
upcoming legal support needs and LGSS Law’s role as a gatekeeper for spend on legal support. All new instructions will
come to LGSS Law as gatekeeper and a decision will be made on whether the work is done internally or externally based
on a business case.

Accommodation
•LGSS London will have an office location at each borough but with a main site at Kensington Town Hall. Staff will work
flexibly to meet the demands of the service but accommodation will be planned on the basis of approximately 80 staff
being based at Kensington and 20 at Westminster.

Client / Contract Management

•The Bi-borough Executive Director of Corporate Services will have responsibility for monitoring the delivery of the contract
at WCC and RBKC.

Slide 12
LGSS London Service Offers
Function Service Offers Key Activities
Contracts & • Drafting and preparation of bespoke contract terms • Advice on contract law & interpretation of terms
Employment for a range of commercial agreements and tender • Advice on commercial law
Team documents • Advice on procurement law strategy and transaction
• Specialist advice on contract law, procurement law, structure
State aid public law vires, corporate law etc • Advice on State aid
• Preparation and negotiation of employment • Training for client departments
settlement agreements • Advice on public law vires etc.
• Representation at Employment Tribunal • Drafting contract documents tender documents and
• Advice on employment law, TUPE, pensions amending /updating standard form contacts
• Training for clients • Drafting and Preparation and negotiation of
• Over the telephone advice employment settlement agreements
• Team working - we work as part of clients’ team • Representation at Employment Tribunals
• Advice on employment law, TUPE, pensions

Planning, • Acting as the Legal Adviser at the Planning and • Providing specialist advice on planning, highways and
Highways Licensing Committees licensing legislation
and • Advising on and clearing reports and key decisions • Providing training for client depts and Members
Licensing in relation to Highways, Licensing and Planning • Drafting and negotiating S106 planning obligations and
matters highways agreements
• Providing advice on all planning, highways and • Advising on committee reports and key decisions and
licensing law matters to Officers and Members of the government consultation responses
Councils • Arranging representation and co-ordinating public
• Drafting, negotiating and completing S106 planning planning enquires, appeals and judicial reviews
obligations and highway agreements • Providing advocacy at Case Management Hearings on
• Dealing with and advising in connection with licensing matters and negotiating and drafting
planning inquiries and planning appeals, settlement orders in licensing appeals
• planning judicial reviews • Drafting licensing Committee decisions
• Undertaking licensing appeals including providing • Drafting model licensing conditions and bespoke
advocacy at Case Management Hearings and licensing conditions
negotiating and drafting settlement orders • Providing advice on tables and chairs applications
• Training Members and Officers in relation to • Advice on assets of community value
licensing matters

Slide 13
LGSS London Service Offers
Function Service Offers Key Activities
Property • The carrying out of all legal property work on • The drafting of documents and negotiating with
behalf of the Councils other parties
Commercial • Maintaining an archive of Council deed and • Giving an active understanding of client needs
Corporate property records • Maintaining an up-to-date collection of precedents
• Housing or Corporate Property Development • Where necessary instructing external lawyers to
Housing & work retained in house including CPO, assist in transactions
Regen. Appropriations, Rights of Light, Leaseholder,
Tenant Policies, Temporary Accommodation
advice or any governance issues related to this
work
• Housing or Corporate Property Cabinet or
Cabinet Member Reports, Delegated Reports or
briefing notes to Members and to approve all
reports going to Westminster's HRP (Housing
Regeneration Property) Board.
• To always attend HRP Board at Westminster
City Council which is not quorate without Legal
attendance
• To advise on Property Procedural Rules
• To advise on PDHU (Pimlico District Heating
Scheme)
Housing and • Prosecuting on behalf of the Councils • Drafting court pleadings
Litigation • Issuing possession claims on behalf of the • Advising on evidence in both civil and criminal
Teams (x2) Councils proceedings
• Dealing with ASB – injunctions and ASBOs • Updating clients on changes in the law
Housing • Dealing with claims against the Councils • Understanding client needs
Litigation (including Judicial reviews and appeals)
• Providing advice on all aspects of litigation and
Litigation council policies and procedures

Slide 14
LGSS London Service Offers
Function Service Offers Key Activities
Social Care • Providing advice and advocacy on the Children • Attending Legal Planning Meetings and other client
& Education Act and other relevant childcare legislation led childcare meetings
• Providing advice and advocacy on Special • Attending client led meetings on Adult Social Care
Educational Needs (SEN) matters
• Providing advice on Adult Social Care and • Attending client led meetings on Special
Public Health matters Educational Needs (SEN) matters
• Providing advice to local authority and schools • Drafting of legal documents for care proceedings,
on Education related matters s7 and s37, Judicial Review challenges, Court of
Protection, SEN cases
• Acting as Legal Adviser on Adoption Panel
• Undertaking some advocacy in the Family Court
Monitoring • Duties of the statutory post • Register of interests
Officer • Advising on and interpreting the Constitution • Code of conduct advice and complaints
• Ensuring the Constitution is up to date and • FoI qualified person
given full effect • Advice to support lawful decision making
• Providing advice on Freedom of Information,
Data Protection and Corporate governance
matter
Business • Provision of support services to fee-earning • Financial, IT, Administrative, Secretarial and other
Support team strategic and operational business support services
• Support for service improvement initiatives (e.g. • Performance management including definition and
business analysis, case management) monitoring of KPIs.

Slide 15
Organisation
LGSS Law Ltd

LGSS Law Board

Chief Operating
Executive Director Executive Director
Officer

LGSS Law London Arm LGSS Law Outside London

Business Support Business Support

Slide 16
Organisation – London Arm (WCC & RBKC)
LGSS Law Board
This is an indicative structure and will be
subject to alteration to manage changes Executive Chief Operating Executive
resulting from LBHF deciding not to join Director Officer Director
LGSS Law.

Chief Solicitor Chief Solicitor

Business Support
Litigation & Social Contracts, Planning
Manager
Care & Property

Housing Litigation Social Contracts & Commercial Housing Planning,

Corporate Litigation Care & Employment Corporate & Regen. Highways &
Business
Edu. Property Licensing
Support
Principal
Team
Solicitor Principal Principal Principal Principal Principal Principal Principal
Solicitor Solicitor Solicitor Solicitor Solicitor Solicitor Solicitor

Team Team Team Team Team Team Team Team 13

7 FTE 9 FTE 7 FTE 10 FTE 5 FTE 10 FTE 10 FTE FTE

Slide 17
Establishment (WCC & RBKC)
Team Role FTE

Executive Director 1

Senior Management Team Chief Solicitors 2

Business Support Manager 1

Contract & Employment Principal Solicitor & Fee Earners 11

Commercial Corporate Property Principal Solicitor & Fee Earners 6

Housing & Regeneration Principal Solicitor & Fee Earners 11

Planning, Highways & Licensing Principal Solicitors (x2) & Fee Earners 12

Housing Litigation Principal Solicitor & Fee Earners 8

Litigation Principal Solicitor & Fee Earners 10

Social Care & Education Principal Solicitor & Fee Earners 8

Corporate Principal Solicitor 1

Business Support Team All 13

Total FTE 84

Slide 18