Category Archives: Campaign4Change

NAO says HMRC is tackling tax evasion but needs to further exploit IT systems’ potential

By David Bicknell

A report by the National Audit Office (NAO) has applauded HM Revenue & Customs’ (HMRC) work in tackling tax evasion to deliver £4.32 billion of additional tax yield between 2006 and 2011. HMRC also reduced staff numbers and introduced a range of improvements in its compliance work.

But, the NAO says, although the Department has introduced new IT capabilities to identify incidences of evasion more effectively, it is not yet exploiting the full potential of the new systems. It has also had to defer and reduce the scope of projects to keep within annual budgetary limits, leading to reductions in benefits.

According to the NAO’s report, the Compliance and Enforcement Programme cost £387 million to 2011-12 and was made up of over 40 projects intended to increase compliance yield – the measure of additional tax arising from compliance work – by £4.56 billion between 2006-2011.

Against that target, the Programme actually reported additional yield of £4.32 billion over the five years to March 2011, with HMRC forecasting that it will generate an additional £8.87 billion of yield between 2011-12 and 2014-15. However, the NAO points out, HMRC will not achieve all of the Programme’s forecast benefits because of changes to scope or slippage in delivering projects, as well as over-optimism in its forecasts.

HMRC reduced staff numbers by the planned amount of 3,374 full time equivalents by the end of 2008-09, two years ahead of schedule. It also generated an improvement in productivity -defined as the level of yield generated by each full time equivalent – of approximately 36 per cent, below its forecast of a 42 per cent improvement. HMRC did not routinely measure the impact of the Programme on customer experience.

Amyas Morse, head of the National Audit Office, said:

“This major programme has helped HMRC to increase tax yield substantially and has introduced ways of working which will strengthen HMRC’s compliance work in future.

“The Department could, though, achieve better value for money from its investment in compliance work by improved understanding of the impact of individual projects and ensuring that its staff have the capacity to exploit new systems to the full.”

On improving HMRC’s compliance work, the NAO report says the following:

 “The Programme has improved HMRC’s ability to undertake compliance work but it has yet to exploit the full potential of the new systems. In particular, the new ICT systems can substantially improve how HMRC assesses evasion risks to identify cases for investigation. HMRC is embedding new systems and approaches into working practices. We assessed the implementation of a sample of projects:

Project design. Overall, HMRC managed design phases well but, particularly on projects to implement new ICT systems, it did not sufficiently consider redesigning business processes or developing the staff capability needed to exploit the full potential of the new technologies.

Implementation. HMRC did not always communicate clearly the rationale for projects and, although it provided training and guidance, these were not always timely or requirements were underestimated.

Assessing the performance of new systems. HMRC has established management information on the use and performance of new systems and, over time, will seek to use this to better understand the impact on business performance.

HMRC – The compliance and enforcement programme

Australian Gateway Review key in revealing extent of Victoria Police IT project deficiencies

By David Bicknell

A report has found that the police in the state of Victoria in Australia lacked the capacity to deliver a major IT project and wasted millions of dollars on a failed system.

According to The Australian, the force had lost around $30 million as a result of the decision to abandon the replacement of its Law Enforcement Assistance Program (LEAP) system, said the report by an Australian QC, Jack Rush.

“The investigations of the inquiry into the LEAP replacement and two other IT projects at Victoria Police revealed a lack of project management methodology and discipline leading to systemic mismanagement,” the report said.

“The inquiry identified a culture within Victoria Police that cost overruns were acceptable but above all, there was a lack of any form of strategy to define the IT needs and requirements of Victoria Police for the future.”

Victoria Police admitted last year it had underestimated the cost of replacing its inefficient, ageing LEAP system by $100m, before it abandoned the replacement project. 

Chief Commissioner Ken Lay said he would adopt the report’s recommendation that the force seek external assistance through an advisory group and had already been consulting external experts.

“Victoria Police needs help in delivering these projects and I will certainly be reaching out both nationally and internationally to make sure that we get this right,” he said.

A key Gateway Review was instrumental in the ending of LEAP, as the report discusses:

“The PIMS preliminary business case was subject to a Gateway Review in late July 2011. The scrutiny of this review process appears to have been the cause of considerable reflection at senior levels of Victoria Police command. The Gateway Review indicated interviewees advised that the preliminary business case did not provide sufficient justification for additional funding to complete the replacement of LEAP; and varied greatly in their expectations and understanding of what outcomes the Policing Information Management System (PIMS) would provide and the technology necessary to achieve outcomes.

The Gateway Review observed “… that best practice and strategic assessment begins with a fundamental understanding of what the problem is that requires fixing and the strategic response that the organisation is looking for.” The review found that the PIMS project was deficient in these respects:

  • the strategic vision for Victoria Police as it related to the PIMS project;
  • current and preferred policing workflow;
  • business requirements based upon the operational needs of modern policing; and
  • information management plan

Rush Report

How a Dutch SME is helping make software energy efficient

By David Bicknell

It may take a little time, but in the future organisations will be able to track the energy efficiency of their software and know how much it is costing them to run.

It follows an idea developed by a Dutch SME that specialises in the quality of software. Amsterdam-based Software Improvement Group (SIG) has partnered with the nearby Hogeschool van Amsterdam (Amsterdam University of Applied Sciences)  to create the Software Energy Footprint Lab (SEFLab).

SEFLab is now setting out to establish how the quality of organisations’ software code affects their energy consumption. The work will couple SIG’s knowledge and expertise in software monitoring  with the enthusiasm and technical expertise of the local university students.

Campaign4Change asked Dr Joost Visser, SIG’s Head of Research how it is going about tackling the energy efficiency of software, and what elements of the problem it needs to examine.

Joost Visser: There are basically two types of this problem that you can break this down and look into. One is across the software lifecycle. So just as with software defects where the later you find them the more expensive they are, so with energy efficiency, if you try to optimise your software once it’s already in production, you may have to make an explicit investment that might not provide an adequate payback. But if you already know what requirements you need to keep in mind at the design stage for energy efficiency, then, for example, you might actually choose a different communication protocol which can improve your efficiency. At each of the development process, there are things to do: in requirements, in the coding and in the testing.

Another issue is the hierarchical level of software. The thing you might see as the consumer is the application. But actually that’s not the first level that impacts energy efficiency. The first level is the user themselves. In a car, the person that is actually touching the accelerator has a lot of influence on how much fuel you would use. To reduce your fuel usage, you may need to change your (driving) behaviour. The same thing applies with users of software. If they know what the consequences are of clicking here and searching there, they might behave slightly differently and it might have an impact on energy efficiency. If you give people feedback, they will behave differently.

C4C: What sort of user feedback have you had?

JV: We did a survey around 9 months ago where we asked a lot of users about these types of things and the overwhelming conclusion of that survey was that, ‘Yes, we would like to change our behaviour but at the moment we have nothing to go on. We don’t know how to make that change.’

There is a premium on green products. People want to be green – but they have to be able to make a meaningful choice. There are various elements to consider. First there is the application layer. Then we have the various components from which the software application is built: a database; a runtime environment framework, and Java as a virtual machine. Then underneath there’s the operating system. Microsoft has made a big effort in its operating system to take energy efficiency into account but I think there are many more steps to be made there. Then there is communication. You have to think about your mobile device uses radio to communicate when you’re browsing. You may have to make an explicit switch to a Wi-Fi network which might be more energy efficient. Is it more energy efficient than 3G? We don’t know yet. That is one of the things we’re going to find out.

C4C: One of the areas that many organisations are talking about is the impact of consumerisation and the use of touch devices creating a new user interface that organisations’ applications will have to be rewritten for. What does than mean from an energy efficiency perspective?

JV: One of the very very real challenges now is that we want to go to those new devices with mobile strategies but time to market dictates how we think about energy efficiency. So you might choose to do develop once on different devices but on many devices, there’s no accounting for the energy consumption. You might go to HTML5, for instance, but it might consume much more energy than when you create a native application. I think by making the choices visible, we will enable people to choose. We will take away the time-to-market issue and people will be able to say,’ OK, we can have this a couple of weeks later and still make things provably more energy efficient’, which consumers will appreciate.

C4C: Will we get to a stage where the consumer will think about the energy efficiency, or are they really only going to be thinking about the coolness of the product i.e. I want an iPad and I don’t really care what the energy efficiency is?

JV: Let’s be realistic about this. Consumers want to get hold of new things. They’re right – they’re consumers. So the coolness of the device has to incorporate the energy efficiency. It’s a lifestyle product. If you offer that, they’ll want it.

C4C: But in the corporate world previously, the IT department would buy the product. Now the user, the consumer, is buying the product and he or she wants a cool devices and they don’t really know about the energy efficiency side of things.

JV: If you compare it to other types of products, fridges, for instance, suppliers do compete on energy efficiency. They all want to be rated A, and that’s partly to do with regulation and partly to do with the demands of the customer. But an essential thing to make that work is that there is a measurement, a consumable rating, that’s meaningful. And now with software, we are developing the science behind it.

Is it about green hardware? Or is it using an energy efficient battery? Or just using a bigger battery? It gives you as a consumer the incentive to use it.  There is also the recycling of the batteries to be taken into account, of course.

C4C: Going back to the way the user is using the software. If you take the car analogy, ultimately there is a cost for you if you’re not driving efficiently. How do we portray those costs in terms of energy efficiency of software?

JV: Maybe you should get feedback about your consumption, not in terms of the litre of fuel you used, but in terms of euros. You want to make that last step. Similarly in software there is a lot of knowledge about CPU cycles and megabytes. But in the end you want to know what is the calorific value of what you’re doing. And that has to be put into some perspective.

C4C: If you were to take it to the nth degree, would you be able to get an idea of how much electricity or energy you had used in your browsing session?

JV: If you keep all your tabs open, do you as a user know if that has any impact, or is that negligible? If you knew it was consuming energy, maybe you’d take the trouble of closing them because it has value for you. Energy consumption goes further than simply your own device. If you’re browsing, you’re pulling information in, and the server starts doing things for you and data starts being generated. It might be stored, consuming energy, for the next 50 years. And it makes a difference how it gets archived or stored. All of this has to be made simple for the consumer to comprehend. Then there’s the organisational side, those organisations that have bespoke software built for them.

They might be interested in ‘green’ from the idealistic point of view. Their clients are interested too and they want to be socially responsible. But those organisations are also very much interested in the cost aspect. Energy costs are rising and it’s not just costs, but scarcity too. If more work implies more energy, at some point you may not be able to get it as easily as before. Either you will get it back in higher energy costs or it just won’t be there.

C4C: Is there any way you can create a benchmark or figure that talks about how much inefficient software usage can cost?

JV: Not yet. For data centre efficiency, there is the PUE. It has lots of drawbacks as well. But is has had a good impact and made choices more clear. We are working on it. We have some development of KPIs. But it’s hard. There’s a real research challenge here. One reason is the mapping of software applications to hardware. It’s not one to one. We may have one software application running on many pieces of hardware and due to virtualisation and other techniques, we have many applications running on the same hardware. With the hardware you can map how much energy goes through it. But how do you map that to the consumer of the energy i.e. the software? That’s a very difficult puzzle.

Another thing is that we’d all like to have a benchmark. To have a benchmark, you need comparable things. But think about it. You have online payments for a bank versus using a browser. The type of work you do with the software, the user transactions, so to speak, is completely different.  If one consumes a certain amount of energy and the other consumes double that, what does that mean? Does that mean the one that consumes more is worse? Not necessarily. It may simply be doing more work. So we have to develop KPIs that allow meaningful comparison. One suggestion is to how much energy per function point. That sounds good, but actually it’s completely wrong, because a function point is about functional size and how many features you offer.  Yet it doesn’t have anything about the workload in it. You have to involve the workload into the KPI otherwise it cannot work.

Now workload is something that’s completely different between different vendors and operations systems and end users. Comparing an operating system to an end user application will not work. That’s why we’re trying to build these up through the lab.

C4C: You could end up having two years of discussions between vendors over what would be an appropriate standard for energy efficient software, couldn’t you?

JV: The way to make these protracted processes shorter is to have people with lots of initiative who just go for it in their own sphere of influence, and show that it can be done, and create a reality that others can follow. International standardisation processes take a long time, but you shouldn’t wait for it. You should go for it.

Links

Software Energy Footprint Lab

8 ways to make your software more energy efficient

Worth reading on mutuals: “Are public sector spin-outs on shaky ground?”

By David Bicknell

For those contemplating setting  up public sector mutuals, the headline on a piece by Craig Dearden-Phillips in the Guardian about their legal and contractual prospects may start ringing alarm bells.

“Are public sector spin-outs on shaky ground?’ sounds a very pessimistic view in the wake of a successful action by Michael Lloyd to prevent 3000 NHS staff being transferred into Gloucestershire Care Services, a new social enterprise.

The outcome of the case, as Dearden-Phillips points out, is likely to affect the way in which the NHS and local councils approach the question of how they set up mutuals and social enterprises.

“Last week’s events in Gloucestershire were, without doubt, a setback for the mutuals agenda in the NHS and councils,” he says. “Lloyd may well rue the day he took the action he did, particularly if those NHS services end up in the hands of for-profit operators. But Gloucestershire was not a decisive reversal. What events there showed was not that spin-outs from public bodies cannot be engineered, but that those leading them need to navigate the law, and public opinion, with care.”

Links

Leigh Day & Co Solicitors’ statement

Stroud Against the Cuts statement

Stepping Out

Has the CIO become the Chief Invisible Officer?

I read an article in the Wall St Journal today all about the role of chief financial officers (CFO) in increasing investments in IT to maintain a competitive edge.

The piece refers to a Colorado company, CH2M Hill, which is cutting back on expenses like corporate events and bonuses for employees, yet it plans to boost its $100 million-a-year IT budget by upto 20% this year. In part, the money will go to fund new systems that will make it easier for workers to use a variety of mobile devices on the job.

“We’re very concerned about the economy and trying to take some measures to cut costs,” says Mike Lucki, CH2M’s chief financial officer. “But this is an investment that we need to make to stay competitive. If you don’t do it, you’re not in the game.”

The thought struck me that when I read that quote that how often do you ever hear a CFO talking about getting a competitive edge? Shouldn’t that be the language of the CEO? And, aspirationally, what the CIO should be saying?

There’s nothing in this Wall St Journal piece about the role of the CIO. That’s not a criticism of the piece at all, simply  the fact that CIOs seem to be anonymous in the corporate culture.  As the article suggests, ‘CFOs are often the executives calling the shots on tech purchases. According to research firm Gartner, for instance, 44% of IT departments report to CFOs.’ The article seems to suggest that there are IT departments – but no IT leaders. (Or at least, in this case, none that the Wall St Journal deemed noteworthy enough to speak with)

Has the CIO become the Chief Invisible Officer? Perhaps, to take a line from Mike Lucki’s quote, it’s time CIOs made a strategic investment (in their visibility) to stay competitive, because, to nick another line, “If you don’t do it, you’re not in the game.”

Or has the corporate balance of power so shifted in current times that the corporate officer that pays the piper is so clearly now calling the tune?

Is it time that CIOs started to shout more from the rooftops about their value?

Heads of finance hate big-bang IT projects

Never knowingly undersold: the John Lewis ‘mutual model’

By David Bicknell

They say there’s no such thing as bad publicity. Just publicity. Well, unwittingly, John Lewis is getting plenty of it. It’s gone from being a retail store, to being the mutuals model, to being associated with care homes, and now, as this article suggests,  its name is being linked with schools.

Is there something in this? Have we truly stumbled on a new way of doing things in the public sector? Or, is it that we are all, as is our wont, looking for a label that we can apply for mutuals, and John Lewis seems to fit the bill?

When we have all finally moved on and gained greater ‘mutual maturity’, so to speak, other models will be more frequently cited. Until then,  you can probably expect that in a conversation where mutuals are cited, John Lewis is likely to be mentioned too.

Are SMEs getting more Government IT work?

Good piece by Peter Smith on why the government’s major IT suppliers may continue their rule over the Whitehall IT budgets (for the time being).

Ten reasons government procurement spend on SMEs isn’t increasing.

Coming soon, credit ratings-like agencies for Cloud service providers

By David Bicknell

You won’t get many positive thoughts towards credit ratings agencies, particularly from European governments, several of whom have suffered the ignominy of seeing their coveted Triple A status downgraded.

Now imagine that same credit ratings approach for Cloud service providers. The research group Gartner has, and put forward its thoughts in an article reported in The Australian. (registration required)

Gartner’s research vice-president Brian Prentice says the need for credible external rating agencies for cloud service providers will become more urgent this year, because current industry performance contracts are unable to quantify, or be accountable for, the costly and potentially devastating indirect effects that Cloud-based service failures have on businesses.

Gartner believes trying to mitigate risk using service level agreements will prove unwieldy for companies, because they are often dealing directly with consultancies that on-sell cloud services in complex multi-tiered agreements.

“The issue here is that it’s very hard to expect the vendors to have a set of impacts on their business commensurate with the problems that could come up. What that means is that you can’t come back on that, and you have to do the assessment on whether the problem is going to show up in the first place,” says Prentice. He envisages that ratings agencies, operating on similar lines to those in the finance sector, will emerge for cloud service companies by the end of the year.

This is an intriguing idea. I wonder where these ratings agencies will emerge from, and how they will compete. Will we see a Big Three emerge, like Standard & Poor’s, Moody’s, and Fitch? How will they compete with each other? How quickly will they be able to gain a reputation that companies can rely on? And on what will that reputation be based? Is this something that the management consultancy one-stop-shops will offer? Or will pure-play Cloud ratings agencies emerge?   

One article recently suggested credit ratings agencies rule the world. Could something similar soon be ruling the Cloud too?

How credit ratings agencies rule the world

Good news: IBM-led shared services company is recognised as “failing”

By Tony Collins

After years of depicting problems at an IBM-led shared services company, Southwest One, as teething, Somerset County Council has conceded that the venture is failing.

The Conservative leader of Somerset County Council Councillor Ken Maddock used the word “failing” nine times in a speech on Wednesday about Southwest One, a company run by IBM on behalf Somerset County Council, Taunton Deane Borough Council and Avon and Somerset Police.

Southwest One’s contract, which was signed in the early hours of a Saturday morning in 2007, was doomed from the start, in part because of the complexity of the arrangements and in part because of pervasive secrecy that antagonised hundreds of Somerset council staff who were already opposed to the joint venture; and they were the very staff who were seconded to Southwest One to make the venture work. [It’s a truism that staff, if they are motivated, will often make their way around difficulties but may be overwhelmed by them if not motivated.]

Last month Campaign4Change set out in detail some of the most disruptive and continuing problems at Southwest One; and we said the difficulties could not be tackled in earnest while Somerset council and its partners were portraying the venture as a success. On 31 January 2012, our post was mentioned on the website of the local Conservative MP Ian Liddell-Grainger.

The good news now is that the council has, this week, for the first time, spoken of Southwest One in unequivocally negative terms. No longer is every council criticism of the company qualified by a positive comment, such that one cancels out the other.

Whether our post last month has made any difference is not important. What’s pleasing is that IBM and Southwest One’s partners are free to make progress, now that Somerset has told it like it is. Much of the credit for the council’s emergence from its long, self-administered anaesthesia lies with Dave Orr who has campaigned for years to highlight the failings of Southwest One, as has Liddell-Grainger.

Maddock’s speech on Southwest One

Maddock’s speech to a full council meeting is reported at length by the Somerset County Gazette and by Liddell-Grainger.

Maddock said

“As an administration we inherited a partnership that promised a huge amount, but it was not delivering. Southwest One’s accounts year on year show losses, staggering losses just published of £31m, and failures to hit modest savings targets.

“We have bent over backwards to try to make this partnership work. But we have to state clearly that our primary duty in looking after the public’s hard earned money is to make sure we get the best possible deals, that we get the best possible value for the public’s money.

“I have to say that Southwest One is failing this test.

“We are currently looking at all our services and all our contracts to see whether we are doing the best we can for our customers,  whether we are providing the best possible services for our customers and at the best possible prices for our customers.

“I have to say that Southwest One is failing this test.

“We need a Council that can cope with future government cuts and rising demand. We will need to be efficient and flexible.

“I have to say that Southwest One is failing this test.

“Sadly, Southwest One is failing. It is failing to deliver promised savings; failing to cope with a changing financial landscape; failing to be flexible enough to adapt in challenging times and provide the best possible value for money.

“To make up for this failure, we will now accelerate our extensive review of everything that the council does: Almost half our most vital services are carried out by private sector or not for profit organisations – we will look to increase this where appropriate.

“We will encourage social enterprises, partnerships, communities and voluntary groups to get more involved in what we do and what we run. We will look to put the customer at the heart of what we do.

“And we will do this whilst we continue to do all we can to make Southwest One work. But I have to be clear; it is failing; it is inflexible; and it is intransigent. We are therefore looking at all the options available to us.

“I do have one final message for Southwest One – and that is to the staff and our Somerset County Council colleagues and secondees working there.  The message is this: This continuing failure is not about you. It is about the contract, the complications, the failed technology, the missed opportunities, the lack of promised savings.  It is about Southwest One itself, not about the people working for it.”

Comments on Maddock’s speech

Some of the comments on the Somerset County Gazette website were apt. One said “Somerset County Council has finally come to accept what we, the minions, have known for years: South West One is a failure and a pretty expensive one…”

Another said

“At last SCC admits to what everyone in the real world knew from day one …”

Comment:

One of the lessons from IT disasters in the private and public sectors is that things often start to improve once the main parties own up to the seriousness of the problems. The good news, perhaps, is that Southwest One may now be at its lowest point. It has at long last purged its bowels, so to speak.

Ian Liddell-Grainger’s website.

Southwest One gets £10m IBM amid “staggering” losses.

IBM struggles with SAP two years on – a shared services warning?

CSC may cut 500 jobs after NHS write-off – end of NPfIT?

By Tony Collins

CSC has confirmed in a statement to Techweekeurope that it may cut 500 jobs on its NHS account.

“We can confirm that, regrettably, we have recently started a formal 90-day consultation process in the UK which could reduce the number of people working on our NHS account by up to a maximum of 500 people,” CSC told TechWeek Europe.

“This action is necessary mainly because we have now substantially completed many key development activities with NHS, and are now moving away from a focus on development work.”

CSC told The Register that it regretted having to take put jobs at risk, but it was necessary because its NHS workload was getting smaller.

CSC has confirmed it is to write-off almost $1.5bn (£957m) as a result of its involvement in the National Programme for IT (NPfIT).

Comment:

CSC is by no means quitting the NHS. Its NPfIT contract is still in force although it remains unrevised, out of date and subject to legal discussions. CSC has large numbers of UK trusts and GP practices as customers, which will need support and upgrades. If it cuts 500 jobs this may indicate the effective end of the monolith that was the NPfIT which will continue in a much diminished, though still expensive, form, largely because of contracts between the Department of Health and BT.

It appears that the dismantling of the NPfIT has begun in earnest, thanks largely to Cabinet Office officials, its Major Projects Group, the Cabinet Office minister Francis Maude, David Cameron and the Department of Health’s Managing Director of NHS Informatics Katie Davis.

The campaign to stop a new deal being signed with CSC was led by the Conservative MP Richard Bacon, a member of the House of Commons’ Public Accounts Committee who was concerned that a new deal would not be good value for money.

It’s to be hoped that CSC will manage to find other work for the 500. The company says it hopes to achieve the job changes through voluntary redundancies and redeploying people within other parts of its business, without the need for compulsory redundancies.

Techweek europe article that includes CSC’s statement.

MP contacts No 10 and Cabinet Office over future of the NPfIT.