By Tony Collins
Francis Maude laments civil service inaction over a cabinet committee mandate for centralising procurement. It “corrodes trust in the system”.
Gus O’Donnell, the former head of the civil service, confronted Francis Maude, the Cabinet Office minister in charge of civil service reform, on BBC R4’s In Defence of Bureaucracy last week.
The irreconcilable differences between O’Donnell and Maude were obvious and may be a sign of how difficult it will be for the minister to make lasting and deep cuts in IT-based spending, simplify overly complex processes, and reduce duplication.
O’Donnell spoke of the virtues of the civil service that have served the country for more than a century, particularly its impartiality. But Maude said the “value of impartiality can sometimes turn into indifference”.
O’Donnell said: “We need to be proud and passionate about the public sector ethos…” and confronted Maude for saying things about the civil service “that are not always totally positive”.
Indeed Maude said,
“Most of the civil servants I deal with are terrific, work hard and do really good work. It is not universal.”
O’Donnell then confronted Maude for saying that ministers in this and previous government have too often found that decisions they have made don’t get implemented. Is that the fault of ministers or civil servants, asked O’Donnell.
“I’d be astonished if it’s ministers,” said Maude who added,
“ I had a meeting the other day around this table … where a decision was made by a cabinet committee, more than a year ago, on the centralising of procurement. It had happened to a very minimal extent.
“If there is a problem with it, that can be flagged up and tell us. Just to go away and not do it is unacceptable … it is protection of the system. This is the speaking truth unto power thing. What is unacceptable is not to challenge a ministerial position but then not to implement it. That is what corrodes trust in the system.”
About £230bn a year – nearly a third of everything government spends – is on public sector procurement. In 2010, Nigel Smith, then CEO of the Office of Government Commerce, spoke to the “Smartgov” conference about the need for major reform in the way government buys things.
He spoke of the need for re-useable software, open source if possible, and said that suppliers regularly use fragmentation within government to maximise profits. “This has got to change,” says Smith.
He said there were 44,000 buying organisations in the public sector which buy “roughly the same things, or similar things, in basic commodity categories” such as IT and office supplies.
He spoke of “massive duplication”, high tendering costs on suppliers, and a loss of value due to a lack of true aggregation. He said suppliers had little forward look of opportunities to tender and offer innovative solutions for required outcomes.
“Contract management with supplier relationship management is inconsistent, with too little attention paid to continuous improvement and benefits capture within contract.
“The opportunity to improve outcomes and efficiency gains should not be constrained by contract terms and innovations should not stop at the point of contract signature.
“If we miss this opportunity [to reform] we need shooting.”
So it is clear procurement [and much else] needs reforming. But in the R4 broadcast last week (which unfortunately is no longer available) O’Donnell portrays a civil service that is almost as good as it gets.
He speaks of its permanence in contrast to transient ministers. His broadcast attacks the US system of government in which public service leaders change every time there is a new government. The suggestion is that the US system is like a ship that veers crazily from side to side, as one set of idealogues take the captain’s wheel from another. O’Donnell implies that in the UK civil service stability lasts for decades, even centuries.
The virtues he most admires in the UK civil service are what he calls the 4 “Ps” – Pace, Passion, Professionalism and Pride. His broadcast speaks of the UK civil service as a responsible, effective, continual and reliable form of administration.
O’Donnell’s most striking criticism of Maude’s intended reforms of central government goes to the heart of what Maude is trying to do: change what is happening in departments.
When, in the broadcast, Maude suggested that civil servants were not challenging ministerial decisions and were not implementing them either, O’Donnell replied that Maude was “overstating the issue”. But O’Donnell went much further and added a comment that implied Maude should leave departments alone.
“These sorts of problems mainly arise when ministers at the centre of government want to impose their will on secretaries of state who want to be left alone to run their departments as they see fit.”
Is O’Donnell giving permanent secretaries and departmental ministers his support if they continue to snub Cabinet Office reforms?
It is hardly surprising Maude is a bundle of frustrations. Central government administration cannot be reformed if departments have the autonomy to refuse to implement decisions of a cabinet committee.
It is ironic that cabinet committee decisions are binding on the entire Cabinet – but not, it seems, on departments.
Perhaps the gap between political and civil service leaders at the centre, and senior civil servants in departments, is as irreconcilable as ever. Today’s UK civil service is more than ever “Yes Minister” without the jokes. Should this be the dysfunctional basis for coalition reforms of central government?
Perhaps this explains why Maude is trying to implement open standards, make government procurement friendly to SMEs and encourage the use of G-Cloud while the Department for Work and Pensions and the Foreign and Commonwealth Office are agreeing new mega-contracts, with the same handful of monolithic suppliers.
Sir Jeremy Heywood, the current Cabinet Secretary, is perhaps a little more Maude-friendly than O’Donnell when he says in the R4 broadcast,
“There are lots of things we need to do better. Too many projects that we undertake are delayed, are over budget and don’t deliver on all the benefits that were promised. We are not as digital as the most effective private sector organisations are. We have been slow to embrace the digital revolution.”
Fine words. But if a cabinet committee’s decision on centralising procurement has little effect, how is Sir Jeremy going to convert his words into action? Or Francis Maude’s?