Category Archives: Campaign4Change

Maude unveils Mutual Pathfinder progress report and launch of mutuals information service

By David Bicknell

The government has announced that it will provide new support to help staff-led mutual organisations set up and spin out from the public sector.

The government wants public sector staff, tax payers and service users to benefit from the increased innovation, higher productivity and better customer satisfaction mutuals often create.

To help encourage and foster the development of mutuals, the government has launched  a new £10million programme Mutual Support Programme (MSP) to provide business and professional services to groups of staff or existing mutual organisations. 

A consortium of experts in employee ownership will manage the programme to purchase HR, legal, financial, tax and business planning services to develop the most promising new mutuals.

Public sector staff who want to take control of the services they run can access a new Mutuals Information Service.

Cabinet Office minister Francis Maude said, “The Government is getting support in place, developing a pipeline of innovative new mutual ‘spin outs’ where employees have real power. The evidence is clear – mutuals can provide better, more efficient public services.

“It’s time for politicians and public sector bosses to cut the apron strings and trust frontline staff to make decisions. They are the real experts, they know what’s important to the people who use the service and they know how things can be done better.”

The Mutuals Support Programme will also fund support to help organisations tackle common barriers and share information so that many others benefit from the work.

The Government has also published the first progress report from the Government’s Mutual Pathfinder programme which highlights barriers that staff have faced, including a tendency for contract tenders to make requirements beyond what is legally necessary such as demanding an organisation has a multi-million pound bond before taking the contract.

Maude was critical of such requirements, saying, “Too often tender processes go way beyond what’s necessary, asking for massive bonds up front and insisting that the organisations have existed for years. Iron cladding contracts bars all but a few big companies from winning them. It is a fundamental barrier to creating the vibrant, innovative and competitive public services this country needs.

“Through our Mystery Shopper exercise mutuals and other small businesses can tell us about discriminatory practice. We will intervene when problems are exposed. I do understand that Commissioners may feel stuck in the middle. Where they feel they are forced to over complicate things they can let us know through the Tell us How website and we will address the problem.”

Professor Julian Le Grand, Chair of the Mutuals Taskforce, said: “The Mutuals Taskforce has gathered evidence for why employee-led mutuals make sense in public services. The next phase of our work will be focused on making the case across the public sector and stimulating demand.”

Maude and Le Grand made the announcements while visiting the largest Pathfinder mutual, Anglian Community Enterprise, which provides over 40 community health services and a range of learning disability, GP and dental services for the population of North and North-East Essex.

MoD rules out mutual option

MoD rules out mutual option in reorganisation of Defence Equipment and Support arm

By David Bicknell

The Ministry of Defence (MoD) has ruled out choosing a spin-off mutual as one of the three models being considered for a re-organisation of the key Defence Equipment and Support (DE&S) organisation.

Campaign4Change recently received a tip-off from an MoD insider who was concerned that the mutuals option had been ruled out.

The MoD has confirmed that there is no mutuals route, and that its three options will be:

*  A Trading Fund: where DE&S continues to be a part of the MoD but has a hard-charging regime. Its staff are civil service employees. 

* An Executive Non-Departmental Public Body: where DE&S remains in the public sector. Staff are public sector employees but not civil servants.

* A Government Owned Contractor Operated (GOCO): A private sector organisation. Staff are private sector employees with potentially some government secondees.

Asked why the mutuals option had been overlooked,  an MoD spokeswoman said, “Further to our conversation about the options that have been proposed for the future of DE&S, I can confirm that we’re not looking at mutuals. The reason for that is that simply, we do not consider it appropriate.

“We have considered a wide range of options for DE&S and centred analysis on three we believe will most suit the requirements of the organisation.  We have kept all stakeholders, including across central Government, aware of this analysis.” 

The MoD says the three options will be presented to ministers in due course who will decide on a preferred way forward.

Defence Equipment and Support (DE&S) equips and supports the UK’s armed forces for current and future operations. Employing around 20,000 people, with a budget of some £14 billion, its headquarters is in Bristol with other sites across the UK and overseas.

DE&S acquires and supports equipment and services, including ships, aircraft, vehicles and weapons, information systems and satellite communications. As well as continuing to supply general requirements, food, clothing, medical and temporary accommodation, DE&S is also responsible for HM Naval Bases, the joint support chain and British Forces Post Office.

Hammersmith & Fulham mutual Pathfinder on track for ‘early 2012’ launch

By David Bicknell

I recently  spoke with the London Borough of Hammersmith & Fulham about their mutual ‘Pathfinder’ project, which is due to be up and running in 2012.

The current plan is for all three boroughs  – the other two are Kensington and Chelsea, and Westminster – to join the mutual in ‘early 2012’.

The three boroughs are now developing the full business plan for the mutual and are looking at the sustainability of the project, with a shadow board of directors meeting regularly to discuss and work out the finer details about how to bring the three teams together across the boroughs.

Other work is going on to finalise the tri-borough mutual vision statement and create a company name (word has it that the current working title is 3BM: Three Borough Mutual) and logo ,which all staff members have been able to contribute to  to reinforce the employee ownership of the scheme.

Meanwhile a mentor from the John Lewis Partnership is working with the fledgling mutual to provide what’s described as ‘invaluable support’ on the shareholding model.

Less than third of civil servants on strike says Maude

By Tony Collins

The Cabinet Office says that “significantly less” than a third of civil servants are taking strike action today.

Francis Maude, Cabinet Office minister, said: “I want to thank the majority of dedicated and committed public sector workers who have turned up to work today to deliver essential services.”

He added that early indications indicate that the majority of key public services remain open.

Strewth! Managing public sector IT projects is also a challenge Down Under

By David Bicknell

A critical report by the Ombudsman in the Australian state of Victoria has meant that taxpayers will have to bear an additional A$1.44bn of costs because of mismanaged IT projects.

The Victorian Ombudsman George Brouwer looked at 10 major IT projects which suffered cost overruns under the Labour government, including the public transport ticketing system myki.

Mr Brouwer found each that project failed to meet user expectations, was delivered late and overran on cost.

The original budget for the projects was $1.3 billion but new estimates suggest the costs have more than doubled.

The report found the two largest projects, myki and the hospital IT system HealthSMART, would need almost $600 million more than originally planned, while Victoria Police spent $5 9 million on a Link crime database  over four years before it was cancelled. VicRoads spent $52 million on a licensing system RandL, which had not yet made it past the design phase.

The Ombudsman’s Report says:

“In Victoria over the last few years, in our respective roles as Auditor-General and Ombudsman, we have tabled in Parliament a number of reports relating to ICT-enabled projects. These reports have identified significant shortcomings in the public sector’s management of such projects and have included numerous recommendations about how such management can be improved.

“Despite these reports, we see little sign of lessons learnt in the public sector. The evidence to date is that the public sector is not managing ICT-enabled projects effectively, as demonstrated by the current difficulties that Victoria is facing in this area and the increasingly adverse public comment about major ICT-enabled projects. A new and more disciplined approach is required if the government is to avoid being faced with continuing cost overruns and failures to deliver.”

You can read the Ombudsman’s report here

Why hospital IT needs airline safety culture

By Tony Collins

Earlier this month the pilots of a Boeing 787 “Dreamliner” carrying 249 passengers aborted a landing at Okayama airport in Japan when the wheels failed to deploy automatically. The pilots circled and deployed the landing gear manually.

A year ago pilots of an Airbus A380, the world’s largest passenger plane, made an emergency landing at Singapore on landing gear that they deployed using gravity, the so-called “gravity drop emergency extension system”.

In both emergencies the contingencies worked.  The planes landed safely and nobody was hurt.

Five years earlier, during tests, part of the landing gear on a pre-operational A380 failed initially to drop down using gravity.

The Teflon solution

The problem was solved, thanks in part to the use of Teflon paint (see below). Eventually the A380 was certified to carry 853 passengers.

Those who fly sometimes owe their lives to the proven and certified backup arrangements on civil aircraft. Compare this safety culture to the improvised and sometimes improvident way some health IT systems are tested and deployed.

Routinely hospital boards order the installation of information systems without proven backup arrangements and certification. Absent in health IT are the mandatory standards that underpin air safety.

When an airliner crashes investigators launch a formal inquiry and publish their findings. Improvements usually follow, if they haven’t already, which is one reason flying is so safe today.

Shutters come down when health IT fails 

When health IT implementations go wrong the effect on patients is unknown. Barts and The London NHS Trust, the Royal Free Hampstead, the Nuffield Orthopaedic Centre, Barnet and Chase Farm Hospitals NHS Trust and other trusts had failed go-lives of NPfIT patient administration systems. They have not published reports on the consequences of the incidents, and have no statutory duty to do so.

Instead of improvements triggered by a public report there may, in health IT, be an instinctive and systemic cover-up, which is within the law. Why would hospitals own up to the seriousness of any incidents brought about by IT-related confusion or chaos? And under the advice of their lawyers suppliers are unlikely to own up to weaknesses in their systems after pervasive problems.

Supplier “hold harmless” clauses

Indeed a “hold harmless” clause is said to be common in contracts between electronic health record companies and healthcare provider organisations. This clause helps to shift liability to the users of EHRs in that users are liable for adverse patient consequences that result from the use of clinical software, even if the software contains errors.

That said the supplier’s software will have been configured locally; and it’s those modifications that might have caused or contributed to incidents.

Done well, health IT implementations can improve the care and safety of patients. But after the go-live of a patient administration system Barts and The London NHS Trust lost track of thousands of patient appointments and had no idea how many were in breach of the 18-week limit for treatment after being referred by a GP. There were also delays in appointments for cancer checks.

At the Royal Free Hampstead staff found they had to cope with system crashes, delays in booking patient appointments, data missing in records and extra costs.

And an independent study of the Summary Care Records scheme by Trisha Greehalgh and her team found that electronic records can omit allergies and potentially dangerous reactions to certain combinations of drugs. Her report also found that the SCR database:

–  Omitted some medications

–  Listed ‘current’ medication the patient was not taking

–  Included indicated allergies or adverse reactions which the patient probably did not have

Electronic health records can also record wrong dosages of drugs, or the wrong drugs, or fail to provide an alert when clinical staff have come to wrongly rely on such an alert.

A study in 2005 found that Computerized Physician Order Entry systems, which were widely viewed as a way of reducing prescribing errors, could lead to double the correct doses being prescribed.

One problem of health IT in hospitals is that computer systems are introduced alongside paper where neither one nor the other is a single source of truth. This could cause mistakes analogous to the ones made in early air crashes which were caused not by technology alone but pilots not fully understanding how the systems worked and not recognising the signs and effects of systems failing to work as intended.

In air crashes the lessons are learned the hard way. In health IT the lessons from failed implementations will be learned by committed professionals. But what when a hospital boss is overly ambitious, is bowled over by unproven technology and is cajoled into a premature go-live?

In 2011, indeed in the past few months, headlines in the trade press have continued to flow when a hospital’s patient information system goes live, or when a trust reaches a critical mass of Summary Care Record uploads of patient records (although some of the SCR records may or not be accurate, and may or may not be correctly updated).

What we won’t see are headlines on any serious or even tragic consequences of the implementations. A BBC File on 4 documentary this month explained how hospital mistakes are unlikely to be exposed by coroners or inquests.

So hospital board chief executives can order new and large-scale IT systems without the fear of any tragic failure of those implementations being exposed, investigated and publicly reported on. The risk lies with the patient. Certification and regulation of health IT systems would reduce that risk.

Should health IT systems be tested as well as the A380’s landing gear? – those tests in detail

Qantas Flight 32 was carrying 466 passengers when an engine exploded. The Airbus A380 made an emergency landing at Singapore Changi Airport on 4 November 2010. The failure was the first of its kind for the four-engined A380.

Shrapnel from the exploding engine punctured part of the wing and damaged some of the systems, equipment and controls. Pilots deployed the landing gear manually, using gravity  – and it worked well. Despite many technical problems the plane landed safely.

Five years earlier, tests of a manual deployment of the A380’s landing gear failed initially. It happened in a test hangar, more than a year before the A380 received regulatory approval to carry 853 passengers.

The story of the landing gear tests is told by Channel 4 as part of a well-made documentary, “Giant of the Skies” on the construction and assembly of the A380.  Against a backdrop of delays and a budget overspend, Airbus engineers must show that if power is lost the wheels will come down on their own, using gravity.

The film shows an Airbus A380 suspended in a hangar while the undercarriage test gets underway. The undercarriage doors open under their own weight and a few seconds later the locks that hold up the outer wheels release. Two massive outer sets of four wheels each fall down through a 90-degree arc. Something goes wrong.  At about 45 degrees, one of the Michelin tyres catches on an undercarriage door which looks as if it has not opened as fully as it would have if powered electrically. Only after 16 seconds does the jammed wheel set slip free. Engineers watching the test look mortified.

Simon Sanders, head of landing gear design at Airbus, tells Channel 4: “We need to understand and find a solution.”

An engineer smeared some grease (Aeroshell 70022 from Shell, Houston) on a guide ramp where the A380’s wheels are supposed to push the door open in an emergency loss of power. This worked and the test was successful: the left-side outer landing gear doors opened under their own weight; a few seconds later the wheels fell down, also under their own weight, and this time the tyre that had jammed earlier hit the grease on the door and slid down without any delay. But a permanent solution was needed.

A month later Airbus repeated the undercarriage “gravity” test. Sanders told Channel 4: “We have applied a layer of Teflon paint which is similar to the Teflon coasting you have on non-stick flying pans. This will reduce the friction when we do the free-fall [of the undercarriage]. We are now going to perform the test to demonstrate that with this low-friction Teflon coating we have solved the problem.”

This time the A380’s chief test pilot Gérard Desbois was watching. If the wheels got struck again Desbois could refuse to accept the aircraft for its first test flight, which would mean a further delay.

The loss-of-power test began. The outer landing gear doors opened … the wheels fell down under their own weight … and jammed again. This time they freed themselves quicker than before. After some hesitation Desbois accepted the aircraft on the basis that if power were lost and the left outer landing wheels took a little longer to come down than the right outer set this would not be a problem.  The gravity free-fall backup system was further refined before the A380 went into service.

The importance of the tests was shown in 2010 when an exploding Rolls-Royce Trent 900 engine on an Airbus A380,  Qantas Flight 32 from Singapore to Sydney, caused damage to various aircraft systems including the landing gear computer which stopped working.  The pilots had to deploy the landing gear manually. The official incident report shows that all of the A380’s 22 wheels deployed fully under the gravity extension backup arrangements.

If a hospital board had been overseeing the A380’s tests back in 2005, would directors have taken the view that the test was very nearly successful, so the undercarriage could be left to prove itself in service?

For the test engineers at Airbus, safety was not a matter of choice but of regulation and certification. It is a pity that the deployment of health IT, which can affect the safety of patients, is not a matter of regulation or certification.

Links:

Oxford University Hospitals NHS Trust postpones major IT go-live.

Giant of the Skies – Channel 4 documentary on manufacture and testing of the Airbus A380

IT and Climate Change: out of sight, but not out of mind?

By David Bicknell

There isn’t a much bigger example of fundamental change than climate change. And there aren’t any bigger examples of breaking down the barriers to change than trying to get some meaningful action to cut greenhouse gas emissions. At a time of economic autumn, there is a risk of climate change and sustainability heading down the business/government ‘must-do’ pecking order.

So it’s good that the United Nations conference on Climate Change has come round this week to concentrate minds. This year, it’s in South Africa, in Durban.

I liked this blog written by Colin Curtis, director of sustainability at Dimemsion Data, who sums up some of the issues and discusses how the company’s own IT department has performed in reducing the organisation’s carbon footprint, notably through virtualisation.

I suspect with the travails of the Euro, we may hear less about the UN conference this week than we did a couple of years ago in Copenhagen. But out of sight needn’t mean out of mind.

Why those driving the creation of public sector mutuals are Investors, not Conservers

By David Bicknell

All those considering setting up public sector mutuals like Hammersmith & Fulham  – and those in the middle of running successful mutual pathfinders such as Central Surrey Health – know the importance of investing in their vision and backing it.

That’s why I liked this piece by Craig Dearden-Philips, who while discussing third sector organisations, makes a distinction between Investors and Conservers.

“My guess though is that the people who make the biggest difference in the world , certainly socially, are almost all on Investors. These people are not ‘born’. They make a choice about how to live. They know that the Investment Principle works – and they live by it.

“Of course, Investment isn’t just a one way street. Investments frequently don’t pay off. In people, in relationships, in business. You get burned as much as you get it right. And investments that are not made judiciously, in people or ventures that are wrong to begin with, are not defensible either. Being investment-minded isn’t about being a soft-heart. But it is about understanding the powerful link between investment and reward and making this, somehow, a feature in the way you operate.”

Wise words.

The capital, contractual, governance and leadership questions facing creative councils over mutuals

By David Bicknell

There are some good points raised in this article in about the challenges facing creative councils who may be considering the adoption of new mutual models.

It raises some useful questions around capital, governance, contracts, relationships, management, growth, leadership and how the private sector can help.

Worth a read.

Officials pay supplier invoices – then raise purchase orders

This morning the National Audit Office has published a report that says the Equality and Human Rights Commission, in up to 35% of cases, raises its purchase order after it gets the invoice from suppliers.

It’s unlikely that any private sector company could survive if it didn’t know what it owed, didn’t know what it had bought, and had to wait for an invoice from the supplier to raise the purchase order.

Amyas Morse, the head of the NAO, says in his report today:

“While I welcome the considerable improvements that the Commission has made in its controls over procurement, there are still areas where it needs to make improvements. In particular, up to 35% of the Commission’s purchase orders are still not raised until after the Commission has received an invoice for goods and services.

“This means that Commission staff are committing funds without going through proper processes and are avoiding some of the checking processes. Consequently the Commission does not have an accurate understanding of its committed expenditure at any one point in time.

“The Chief Executive has made it clear that he takes noncompliance with these processes seriously such that in cases of repeated non-compliance delegations will be withdrawn.”

A common practice? 

Is this absence of proper accounting worryingly common in central government and its agencies, particularly on IT contracts?

Auditors told us that in the case of NPfIT contracts they found some invoices that were paid when they came in, awaiting reconciliation with any past paperwork.

This, perhaps, ties in with the experiences of Conservative MP Richard Bacon, a member of Public Accounts Committee who, when asking civil servants for a breakdown of IT spending has, in the past, been referred to the department’s IT supplier.

On the C-Nomis IT project for prisons, the National Offender Management Service paid £161m without keeping any record of what the payments were for.

The Cabinet Office wants to cut the £17bn or so spent every year on public sector IT. But before departments, agencies and other organisations cut their costs they’ll need to know what those costs are. Maybe they should ask their major IT suppliers? We wonder if the domination of GovIT by a small number of suppliers has got to the stage where it’s the suppliers managing the civil service IT budgets. If that’s the case it is not the fault of suppliers.