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Derbyshire County Council: A new finance target operating model

Michael Pilcher
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One council wanted to reshape their finance function. Michael Pilcher explains how we helped them do it.
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Derbyshire County Council asked us to review their financial management processes and design a new target operating model. They wanted the finance function to become a strategic partner that would bring sustainable change to the organisation. Find out what they needed – and how we helped. 

The challenge

"In the face of continued financial pressures, we recognised the urgent need to strengthen our financial management capabilities. It was clear that to make informed, sustainable decisions about our services and operating model, we needed much better financial information—insightful, timely, and aligned with the realities of our organisation. 

Traditionally, finance has been seen as a function focused on historical costs and control. But we needed it to evolve—to become a strategic partner that could anticipate change, analyse its impact, and help shape our response. We need to fully understand the cost of delivering services, not just to balance the books, but to ensure our decisions were affordable, resilient, and future-proof. 

To achieve this, we launched a comprehensive review of financial management across the Council. Our goal was to understand the real issues and barriers—whether in systems, processes, structures, or skills—and then design a new target operating model that reflected best practice and could deliver tangible, lasting change. 

The outcome will be transformative. We have identified key challenges across digital systems, processes, and capacity, and developed a new operating model for both the finance function and how financial management works across the organisation. Through a focused implementation programme, we’re now addressing these issues head-on—introducing digital solutions, clarifying responsibilities, and building a financial skills and development framework to raise capability across the board. 

This programme is laying the foundation for a more resilient, responsive, and forward-looking Council."

The solution

We partnered with Derbyshire County Council to deliver a strategic and practical transformation of financial management. We began with a rapid diagnostic review, identifying critical weaknesses in reporting and insight generation that had previously gone unaddressed. This early analysis provided the foundation for a deeper engagement with finance teams and stakeholders across the organisation. 

Our role was to bring an independent perspective—challenging the existing operating model and helping the council reimagine what good financial management could look like. Drawing on our extensive experience with local government finance, we're working closely with the finance leadership to co-design a new target operating model aligned to best practice. 

Throughout the process, we're focusing on building ownership and sustainability. We're working side-by-side with officers at all levels—from senior stakeholders to junior staff—ensuring that knowledge transfer and capability-building are embedded into every stage of the programme. Our support extends into implementation, where we're providing technical expertise, additional capacity, and hands-on delivery support to help the council take forward key actions. 

The result

The outcome should be a finance function that's more strategic, more capable, and more aligned with the council’s long-term goals. By embedding a culture of continuous improvement and strengthening financial competencies across the organisation, Derbyshire will be better equipped to meet future challenges with confidence. 

"This programme will be a turning point for how we manage our finances. Grant Thornton is helping us see the bigger picture, challenge our assumptions, and build a model that works for the future. Their insight, support, and collaborative approach is key to driving real, lasting change."  

Mark Kenyon, Director of Finance, Derbyshire County Council 

 

For more insight and guidance, get in touch with Michael Pilcher.

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