SECTOR

Local Government

FOCUS

Digital Operating Model

DELIVERED

2025–2026

CLIENT

Lancashire County Council

LOCAL GOVERNMENT

2025–2026

Supporting Lancashire County Council to Develop an LGR-ready Digital Operating Model

Helping Lancashire County Council move from review to a clearer, more capable and more affordable digital service model, ready to support local government reorganisation.

Lancashire County Council LGR-ready Digital Operating Model case study header image

Article Content

OVERVIEW

Lancashire County Council asked Castlerigg Consulting to support a review of its Digital Services operating model after the service had been brought back in-house from an outsourced arrangement. Our role was to help the council take a clear, evidence-led view of what needed to change — without losing sight of the commitment and capability already in the service — creating a digital service that was easier to direct, easier to govern and better prepared for local government reorganisation.

KEY AREAS OF FOCUS

Service structure

Demand & capacity

Programme & project activity

Technical & change governance

Application management

Service desk demand

Digital skills

Data enablement

Supplier & asset management

Cyber & risk

BAU vs. change delivery

THE CHALLENGE

Competing demands

Multiple priorities — reliable operations, a large estate and transformation ambitions — were all competing for capacity.

LGR uncertainty

Future service boundaries, data flows and governance arrangements may need to adapt quickly as reorganisation develops.

Capacity & skills

Demand and capacity, digital skills, data enablement and supplier management all needed closer attention.

Governance & risk

Technical and change governance, cyber and risk needed a clearer, more coherent structure.

BAU vs. change

The balance between business-as-usual activity and change delivery needed to be rebalanced.

OUR APPROACH

DISCOVER

Reviewed documentation, workforce information, finance and cost data, demand information and governance arrangements.

ENGAGE

Used structured engagement with managers and stakeholders to test what the data was showing.

ANALYSE

Built the evidence base for change alongside the Digital Services leadership team.

DESIGN

Moved from a diagnostic view of the current service to a practical, usable future model.

PLAN

Developed structure options, demand and capacity analysis, governance proposals and transition thinking.

DELIVER

Built a financial case for change and a credible route to a more capable, more affordable service.

Streamlining the project portfolio

A key part of the work was helping the council review its project activity and make clearer choices about what should be prioritised, paused, reshaped or treated as business-as-usual activity — reducing noise in the portfolio and focusing capacity on work most closely linked to strategic objectives, resilience and measurable benefits.

The review also identified where activity described as project work was better managed through operational teams, product ownership, application management or planned lifecycle management.

Strengthening governance and demand management

Castlerigg supported the design of stronger governance arrangements, including clearer routes for prioritising demand, managing change, overseeing technical decisions and aligning activity to the future operating model — including a Digital Design Authority as a consistent forum for reviewing new demand.

The approach was intended to help, not hinder: getting the right conversations happening earlier, reducing duplication and connecting digital activity to business outcomes, technical standards and financial discipline.

FUTURE DIGITAL OPERATING MODEL

Diagram of the future digital operating model for Lancashire County Council

WHAT CHANGED

The future model introduced a clearer set of capabilities around the things Lancashire will need most from Digital Services — from enterprise architecture and business engagement to data enablement and service excellence.

Operational delivery, planned lifecycle activity, project delivery, technical design, business engagement and strategic architecture were given clearer homes.

This made it easier to see where capacity was being used, where new skills were needed, and where activity could be managed differently.

These new capabilities gave the council more control over demand and a stronger grip of its technology estate.

Together, these changes created a more coherent basis for decision-making and a stronger platform for managing future change.

Better information for decision-making enabled a more deliberate approach to investing scarce digital capacity.

WHY IT MATTERED

£1.7m–£2.7m

Estimated annual employee cost reduction identified through the future operating model, compared with the projected 2025/26 employee cost baseline.

THE OUTCOME

Stronger capability

More affordable service

LGR-ready platform

Clearer governance

Reduced duplication

LOOKING AHEAD

The model gives Lancashire a credible route to strengthen the service while reducing cost — investing in the capabilities needed for transformation, LGR readiness and resilience, while removing duplication and making better use of the capacity already in the service.

Let’s make change work, together.

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  • “

    Castlerigg helped us turn digital strategy into a practical business strategy for the council. Their work gave us a clear view of where we needed to strengthen our digital capability.

    — Paul Gribben, Head of Digital Services, Belfast City Council

  • “

    Castlerigg helped us move at pace, build confidence across teams and create a service that could respond to urgent pressure while improving care for patients.

    — Senior Manager, University Hospitals of Morecambe Bay NHS Foundation Trust

  • “

    The Gemini Programme has given Cheshire East greater control over key aspects of service delivery, allowing us to better align ICT with our local priorities.

    — Gareth Pawlett, Director of Digital Services, Cheshire East Council

  • “

    The Gemini Programme achieved exceptional success. The disciplined approach to delivery ensured the council remained on track despite the scale and complexity of change.

    — Roger Davies, Head of DDAT Services, Cheshire West and Chester Council

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