DD1492 Executive Search Services for TfL Board Members

Type of decision: 
Director's decision
Code: 
DD1492
Date signed: 
30 March 2016
Decision by: 
Tom Middleton, Head of Governance and Resilience

Executive summary

This decision form sets out the proposal to procure an executive search agency to deliver the search and selection for appointments to the TfL Board. The final decision on the appointments will be made by the Mayor. 

An independent review of the TfL Board was conducted by Deloitte in 2015 and recommends engaging an executive search firm to recruit specialist skills for future board appointments.

The GLA have worked closely with the TfL Commercial team to prepare Invitation to Tender (ITT) documentation and agree a competitive procurement route.  A total of six executive search agencies have been identified and will be invited to tender a submission.
 

Decision

That the Executive Director approves a £70K budget to procure the services of an executive search agency for appointments to the TfL Board.

 

Part 1: Non-confidential facts and advice

Introduction and background

1.1.    There are currently 16 Board members including the current Mayor (Chair of the Board).  The Mayor’s appointment as the Chair will end when the current mayoral term ends.  The Chair and Deputy Chair will not be included as part of the search agency requirements. All other members current terms are due to expire on 17 June 2016.  

1.2.    To meet the minimum number of members on the Board (eight), the GLA proposes that the new Mayor re-appoint a small number of existing members for up to four months, to enable the Board to function until a new Board is fully appointed.  This process will be managed through short term extensions to existing terms of appointment.  However this is only an interim solution and new Board appointments need to be in place as soon as possible.

1.3.    An independent review of the TfL Board was conducted by Deloitte in 2015.  It outlines key recommendations for ensuring the Board is effective moving forwards. These recommendations include a) appointing an executive search agency to support future appointments, b) enhancing existing skills areas as well sourcing candidates for new skills areas and industry expertise and c) attracting candidates for the Board to be more representative of Londoners, specifically greater gender and ethnic diversity.

1.4.    The GLA will ensure the recruitment and appointment process is in accordance with the Mayoral appointments protocol which includes involving an ‘independent’ element to provide some measure of assurance the Mayor has acted reasonably in making these appointments. DD934 Appointment and Payment of Independent Element in Board Appointments confirms the amount to be paid to persons participating in board selection processes. 
 

Objectives and expected outcomes

2.1.    The objective is to procure an executive search agency to deliver the search and selection function to appoint up to seven members to the Transport for London (TfL) Board by 1 August 2016.  The executive search agency will be required to provide a pool of suitably qualified, skilled and diverse candidates to ensure the GLA’s board composition requirements are met and support the recommendations outlined in the independent effectiveness review.  

2.2.    The GLA has worked closely with the TfL Commercial team to prepare the Invitation to Tender (ITT) documentation and agree a competitive procurement route.  A total of six executive search agencies have been identified and will be invited to tender a submission.

2.3.    It is expected that the executive search agency will be appointed by 12 April 2016. 
 

Equality comments

3.1.    The Invitation to Tender (ITT) documentation makes clear:

-    The legislation that places a general duty upon the GLA to have due regard to the need to tackle discrimination, promote equality of opportunity and promote good relations.
-    Under the GLA group statement of principles on Supplier Diversity, this general duty applies to services delivered by third party suppliers to ensure the purchase of services is undertaken in line with its equalities and diversity commitments.
-    Board appointments should aim to be more representative of Londoners, specifically greater gender and ethnic diversity on the Board.  
-    Through the bid tendering process suppliers must demonstrate, in relation to the GLA's equality duty, how they will ensure the candidates reflect London's diversity.
-    Board appointments must represent the interests in relation to transport of women and who require transport which is accessible to persons with mobility problems.
 

Other considerations

4.1.    Mayoral strategies and priorities
The statutory requirement is to appoint a new Transport for London Board within 45 days of the announcement of the new Mayor.  All members current terms are due to expire on 17 June 2016. The GLA propose the new Mayor re-appoint a small number of existing members for up to four months, to enable the Board to function until a new Board is fully appointed. 

4.2.    Risks and issues
There is a risk that the organisations bid above the £70k budget.  If this is the case, the number of Board Members being recruited through the executive search agency would need to be reduced, thereby reducing the overall cost.

4.3.    Not proceeding with this procurement and contract would mean the GLA would have to direct source a high volume of candidates.  This needs to be a robust executive level candidate search for high profile Board appointments.  The GLA does not have the resources to manage this high level recruitment campaign and appointing up to seven members to the Board by 1 August 2016 may not be achievable.  

4.4.    Impact assessments and consultations
Transport for London legal and procurement have been extensively consulted as part of this work.
 

Financial comments

5.1.    A budget of up to £70K has been allocated from the GLA Recruitment and Advertising budget. 

 

Planned delivery approach and next steps

Planned delivery approach and next steps

The Invitation to Tender (ITT) documents have been produced with input from TfL Commercial (procurement and legal) and issued to bidders.  Below is the agreed procurement timetable:

Procurement Activity

Date

Issue Invitation to Tender

17/03/2016 

Deadline for Tender submissions

04/04/2016

Clarification meeting with Suppliers

06/04/2016

Evaluation of Tender

07/04/2016

Contract Award

12/04/2016

 

 

 

 

 

 

 

 

 

 

Below is the initial timetable for the appointment of Board members to be finalised and agreedonce the executive search agency has been appointed:

 

Recruitment Activity

Date

Contract Award

12/04/2016

Search agency briefed – scoping meeting

18/04/2016

Campaign Planning Document (CPD) approved

21/04/2016

Recruitment opens

25/04/2016

Recruitment closes

05/06/2016

Final recommendation list submitted to GLA

07/06/2016

GLA confirm first stage interviews invites to search agency

13/06/2016

Invites issued by search agency

14/06/2016

Shortlist - search agency provides feedback to unsuccessful candidates

14/06/2016

First stage Interviews - conducted by GLA

28/06/2016

GLA confirm final stage interviews invites to search agency

01/07/2016

Search agency issues invites for final stage interviews

04/07/2016

First stage interviews -  search agency provides feedback to unsuccessful candidates

06/07/2016

Final stage interviews - conducted by GLA

21/07/2016

Final selection made – verbal offer extended to successful candidates

25/07/2016

Mayoral appointment letters issued

01/08/2016

Board meeting

22/09/2016