Report of the Deputy Chief Executive and City Treasurer and the Director of HR, OD and Transformation.

This report provides an update on the work undertaken so far to replace the Council’s legacy SAP HR and Finance system (also referred to as an Enterprise Resource Planning (ERP) system), the procurement approach and timescales, alongside the risks and opportunities presented by such an important system implementation.

The committee considered a report of the Deputy Chief Executive and City Treasurer and the Director of Human Resources, Organisational Development and Transformation (HRODT) which provided an update on the work undertaken so far to replace the SAP HR and Finance system, the procurement approach and timescales, and the risks and opportunities presented by this implementation.

Key points and themes within the report included:

• Providing an introduction and background to SAP, which was implemented in 2006;
• The programme vision and how this project aligned to the Digital Strategy;
• The approach to implementation, including governance and scrutiny processes;
• How the replacement system would be procured, designed, configured, and implemented;
• Lessons learned from other system implementations; and
• Next steps and the timeline for the project.

Key points and queries that arose from the committee’s discussions included:

• Whether the Head of Internal Audit would be consulted on the project;
• Requesting that a short note on the controls within the new system be provided to the Audit Committee at the appropriate time;
• Whether a robust testing period would be planned and whether feedback on any issues would be provided to the Audit Committee;
• Acknowledging that the current system had been in place for 17 years;
• Noting that the programme team had engaged with other Local Authorities implementing new Finance and HR systems, and querying what other learning methods were available;
• Seeking clarification on what was meant by ‘transformation’ and ‘vision’;
• Requesting further information on STAR Procurement, who were commissioned to provide tailored professional advice and support; and
• Noting the procurement timeline and querying whether this was challenging.

The Deputy Chief Executive and City Treasurer stated that the replacement of the HR and Finance system was fundamental in delivering improvements to how the Council worked. She stated that she was responsible for the project overall and would provide visible and proactive leadership. She expressed her thanks to the Deputy City Treasurer and the Director of HRODT and their teams for their work on the project thus far.

The Director of HRODT stated that the project provided a great opportunity for the Council to continue its transformation journey. He stated that there would be an emphasis on supporting staff through this change and ensuring that officers were equipped with the necessary digital skills to use this new technology.

The Deputy City Treasurer explained that the tender was now out to market and requests to participate from a number of suppliers had been received. These were currently being evaluated with an anticipated six suppliers being invited to tender by the Programme Board. The evaluation of this would be undertaken throughout the summer with an appointment anticipated to be made in December 2023. He stated that the transactional aspect of the system was scheduled to go live on 1 April 2025.

In response to a member’s query, the Deputy City Treasurer explained that the Head of Internal Audit was aware of the programme and would be responsible for the approval of financial controls within the new system.

The Deputy City Treasurer also confirmed that a 3-month testing period had been factored into the implementation plan.

The Deputy Chief Executive and City Treasurer stated that there had been several major upgrades to the SAP system since its implementation in 2006 and that it was fully Public Services Network (PSN) compliant. The system would become defunct after 2027, which was why work was already underway to implement a new system. She also stated that the Council would not endeavour to make any new system as bespoke as SAP.

Members were also advised that as part of any procurement within ICT, the Council identified lessons learnt from other authorities. There were also Treasurers’ and ICT Directors’ Networks where good practice and learning was shared.

The Deputy City Treasurer explained to the committee that STAR Procurement was a shared service between Stockport, Trafford, Rochdale, and Tameside authorities and was used by the Council where additional capacity in a procurement process was required.

In response to the Chair’s query regarding whether the deadline for implementation was challenging, the Deputy City Treasurer stated that the timescales within the project plan were sufficient and provided some degree of flexibility.

The Executive Member for Finance and Resources concluded by stating that the implementation of the new system was a significant piece of work that would provide a once-in-a-generation change to impact the future shape and work of the Council. He explained that Councillor Rahman and himself would have political oversight for this work.

Decision:

That the report be noted.