Pre-Budget response: investment in transformation know-how needed says Civica
Investment in transformation know-how needed, says Civica
 
Civica has broadly welcomed the pre-Budget statement’s continued commitment to public services but is concerned that the focus on further efficiencies in the current spending cycle and beyond may reduce the public sector’s scope for organisation-wide transformation, following encouraging progress by public bodies towards the targets of the 2007 Comprehensive Spending Review.

Accelerated capital expenditure welcomed
The company welcomes the commitment to investment in public services during difficult economic conditions including the acceleration of capital expenditure for local authority stock and social housing, the bringing forward of projects to improve Britain’s education infrastructure and the commitment to major investment in policing strength and operational efficiency as identified in the Policing White Paper.

Operational Efficiency Review
Civica believes that the revised efficiency target of £35 billion in the current spending cycle - and a broader efficiency focus in the succeeding one - will drive the public sector to renew its focus on establishing deeper system-based efficiencies. The imperative is for process-led initiatives to streamline working practices around the citizen, to deliver enhanced services and savings, and to enable flexible ways of working that also reduce demand for office space. The company believes there is considerable scope in local government to capitalise on existing technology-based investments made at the departmental level and make real progress in joining up services across the entire organisation.

The pressure on authorities to balance efficiency programmes with new ways to deliver local service levels will be further intensified by demands from local communities for financial and community support as the wider social impact of the current slowdown is felt.

While the OER’s focus on five key strands is understandable, the company is concerned that (despite the restatement of business process improvement and the emphasis on smarter procurement thinking in the Public Value Programme) there is no Government investment directed towards developing the leadership and management capacity necessary for balancing savings and services and for driving innovation and change.

Building innovation for efficiency and service improvement
The company believes that the public sector needs a framework at the local level to help organisations to stimulate and sustain talent and innovation. The appointment of Sir Michael Bichard of the Institute for Government to develop integrated approaches to service delivery is a welcome step forward. However, the Government’s transformation strategy must reach towards a framework for service development and procurement, involving public bodies, service providers and end users, if it is to inspire genuine transformation. 

Civica chief executive Simon Downing said: “In calling for greater efficiencies in the current and future spending cycles, the Government is increasing the pressure for radical service reform. Technology has an important role to play, to the extent that it is combined with process improvement in order to achieve streamlined services and fully joined up working. Without this we believe that the potential for improved services and efficiency will remain only partially realised. We also believe that for this approach to succeed there has to be greater support for developing and maintaining the management skills necessary to drive change.”