Category Archives: Campaign4Change

Cabinet Office Minister Francis Maude tells private sector: ‘Come and knock on our door’

By David Bicknell

Cabinet Office Minister Francis Maude has insisted that large private sector service providers are still a part of the Coalition’s pluralist vision for the delivery of public services.  Although the volume of conventional outsourcing will decline,Maude challenged the private sector to engage with the Government and to pioneer new ways of working.
 
Talking to members of the Business Services Association, Maude laid out his vision of a new chapter in public/private sector collaboration. Giving the Association’s Annual Lecture,  Maude urged private sector contractors to work with him to realise the opportunities to reform the delivery of public services.
 
As the public sector represents some 40% of the revenue of business services companies, there was ‘standing room only’ to hear Maude’s vision of the future. He referred to this interdependence to justify his call for a shared effort in looking for efficiencies. Whilst the inherited budget deficit lends an edge to the Government’s reforming drive, Maude was keen to look beyond mere cost savings to facilitate new approaches to accountability and stakeholder involvement. Referring to staff consultation over reform, he sees there is potential to energise and challenge Government from within and set out his mission to “set this passion for the public service ethos free” from the shackles of outmoded workplace practices. But he also realises that this objective cannot be realised solely from within and he is looking to establish relationships with the big service providers to help the Government on its way. And in particular, he sees the need for the large players to work with mutuals, SMEs and charities to find new models for the delivery of services.
 
Commenting on the address,  Michael Ryley, Head of Support Services at Pinsent Mason, the Annual Lecture’s sponsor said: “The Government is clearly conscious of the difficulty of driving change from within a public sector workforce which is steeped in a tradition of delivering services in a certain way.  Given that modern procurement creates the potential for workforces to move seamlessly between private and public sector employers, the Government is clearly attracted by encouraging flexibility and using private sector expertise to energise the public service ethos.” 

Defining the debate over Sustainability, Corporate Social Responsibility and Creating Shared Value

By David Bicknell

I came across this article via the always well-informed Tracey Rawling Church at Kyocera Mita through LinkedIn.

It’s about Creating Shared Value (CSV) and Corporate Social Responsibility (CSR) rather than an article about Green IT or low-carbon and it’s from the Guardian’s Sustainable Business pages. .

You probably won’t get any Green IT or sustainability insight from it, but it’s certainly a very good read on getting value from CSR.

There’s one interesting suggestion, that CSR is increasingly being seen as the “new compliance agenda,” with sustainability as the transformational change agenda.

This is an area that’s also beginning to be discussed by the Harvard Business Review community.

NPfIT – our view on what should happen now.

By Tony Collins

Far from being dead, the National Programme for IT is on the point of being re-invigorated.

That, at any rate, was the impression given on Monday by senior executives at the two main NPfIT suppliers, BT and CSC,  and by two senior officials at the Department of Health, Sir David Nicholson and Christine Connelly.

MPs on the Public Accounts Committee were questioning Nicholson, who is the NHS Chief Executive also the NPfIT’s Senior Responsible Owner, and Connelly, the Department of Health’s CIO, on a report published last week by the National Audit Office on the NPfIT detailed care records systems.

Nicholson and Connelly are among the most highly paid in Whitehall, earning between them nearly £500,000 a year; and the security and seniority of their positions might help to explain their confident replies.

Their allies at the PAC hearing were Patrick O’Connell, President, BT Health, and Sheri Thureen, President UK Healthcare, CSC. All four – Nicholson, Connelly, O’Connell and Thureen – argued for the continuance of the NPfIT. They gave the impression to MPs that the remaining years of the NPfIT, with a total of £4.3bn left to spend, are safe in their hands.

On the other side of the irreconcilable divide were the MPs on the Public Accounts Committee who comprise eight Tory MPs, five Labour and one Liberal Democrat. Labour’s Margaret Hodge chairs the committee. They were allied to the National Audit Office whose auditors say the £2.7bn spent so far on the national programme’s care records systems “so far does not represent value for money and we do not find ground for confidence that the remaining planned spend of £4.3bn will be different”.

At times the animosity between the two sides at the Public Accounts Committee was not concealed; and at one point even the NAO found itself under attack. There were few smiles or obvious signs that each side respected the other despite their disagreements.

To the board of a large private company that was confronting a contract on which a supplier had not delivered, the exchanges at the Public Accounts Committee might have looked odd.

This is because the suppliers and customer – CSC, BT and the Department of Health – were as one. On the whole they were defending the NPfIT against auditors and MPs who were representing taxpayers.

But the board of a private company, facing a contractual disagreement, could ask:  shouldn’t this NPfIT dispute be a matter of customer versus supplier?

This could never be because the customer, in this case, has messed up at least as much as the suppliers. Which may explain why suppliers and customer are on the same side, against the people who want to hold them accountable: the MPs and auditors.

Something similar happened after the fatal crash of a Chinook helicopter on the Mull of Kintyre in June 1994, which killed all 29 on board including 25 VIPs. Poor software was a suspected factor in the accident but the Department – the MoD – sided with the helicopter’s supplier in arguing that the equipment and software were sound.

So the MoD and the Chinook’s suppliers were on one side of the divide. On the other side were MPs, families of the dead pilots who were blamed for the crash, and other campaigners who discovered evidence that the Chinook was not airworthy at the time of the accident.

All this shows is that it can be difficult and even impossible to get to the truth after something has gone seriously wrong.

At the end of Monday’s Public Accounts Committee – which lasted about two and a half hours – neither side would have been satisfied. And it’s against this background that £4.3bn has yet to be spent on the NPfIT.

Margaret Hodge made the point that £4.3bn would enable the NHS to employ 200,000 more nurses.

The NPfIT represents change  – but some would say it’s for the worse. At Campaign4Change we welcome the independent review of the NPfIT CSC contracts by the Major Projects Authority of the Cabinet Office. The review has already begun.

We recognise there is much pressure on the Authority to approve the contracts and allow the Department of Health to sign a memorandum of understanding with CSC. Indeed the NPfIT minister Simon Burns has indicated that he’d like the NPfIT to continue.

This is the sort of pressure that can make a nonsense of an “independent” Cabinet Office review.

It’s clear to us that the national programme, as structured, pits the Department of Health and its suppliers against anyone who criticises them. In the ring, in one corner, are the Department of Health, Sir David Nicholson, Christine Connelly, CSC and BT, together with consultancies and other organisations and institutions that have a financial interest in the continuance of the NPfIT.

In the other corner are the organisations that represent the taxpayers: the National Audit Office, MPs and potentially the Cabinet Office. Many of these representatives regard the arguments used to keep the NPfIT alive as learned gibberish.

That’s not a recipe for successful change.  In the view of Campaign4Change, BT, CSC, NHS Connecting for Health, David Nicholson and Christine Connelly should discuss in a non-legalistic way how to wind down the national programme in a way that minimises the costs to taxpayers and the suppliers. Those at the centre should be setting standards, rather than specifying systems and negotiating contracts that NHS trusts don’t want.

Once a wind-down discussion reaches a conclusion, that can be put within a legal framework. That’s change the NHS can live with. Otherwise the NHS will be locked more securely into suppliers and contracts they hadn’t endorsed in the first place – and the £4.3bn that has yet to be spent may be more good money going into a congenitally bad programme.

Leaked memo reveals CSC’s plans for new NHS IT deal.

Report suggests international lessons must be learned on developing public service mutuals

By David Bicknell

A new international review being presented to government by Jonathan Bland, an international expert on co-operatives and social enterprise, has suggested that the UK is not yet equipped to turn public services into mutuals.

The review, Time to Get Serious: International Lessons for Developing Public Service Mutuals, commissioned by Co-operatives UK, the trade association for co-operative enterprises, highlights how the UK must learn from the experiences of Spain, Italy and Sweden, where public service co-operatives are flourishing because government creates a supportive environment and provides workers with appropriate business support and knowledge.

“The international review shows that in all three countries, the growth of public service co-operatives has been closely linked to enabling legal and fiscal frameworks, with sector-led support structures that are able to provide specialist advice and share learning,” says Bland.

The report is available here from the Co-Operatives UK site.

Public service mutuals: will the optimistic or pessimistic view prevail?

There’s an interesting piece here by the Transition Institute, which has looked ‘back from the future’ from May 2016 at the implementation of public service mutuals, taking either an optimistic or  pessimistic stance. Intriguing idea – worth a read.

Lord Digby Jones: telling some harsh truths on the challenges facing British business

It’s not often you can truly say you’ve heard a tour de force of a keynote speech at a conference. But  Lord Digby Jones certainly delivered one at the Trustmarque Solutions customer conference in London a couple of days ago.

Lord Jones, a former director-general of the CBI and more recently Minister of Trade and now a cross-bencher in the House of Lords, outlined the challenge facing British businesses – and indeed Europe as a whole – from the economic rise of Asia, painting a picture of the Chinese raising living standards for their 1.3bn strong population, with the subsequent impact on European and US business, with a cautionary tale about the fall of the Roman Empire along the way.

Lord Jones, whose energy and delivery fully engaged his audience of Trustmarque customers and partners and left them scarcely daring to sneak a look at their Blackberries and iPhones mid-speech, also told a moving tale of his Royal Navy career and the importance of teamwork.

Lord Jones currently has a book out: Fixing Britain: The Business of Reshaping Our Nation. If it’s half as good as his Trustmarque speech here, it will be quite a read. And from Trustmarque’s point of view, it was equally quite a coup to land a heavyweight keynote speaker with added clout and bite.

UK to cut emissions targets by 50% by 2025

By David Bicknell

Here are the details of the Government’s statement on carbon emissions, made by Energy & Climate Change Secretary Chris Huhne, taken from the Department of Energy & Climate Change website:

“The Climate Change Act 2008 sets a target to reduce greenhouse gas emissions in the UK by at least 80% from 1990 levels by 2050. The Act also requires Government to set carbon budgets, which are limits on greenhouse gas emissions in the UK for consecutive five year periods. These carbon budgets must be set at least three budget periods in advance. They are designed to put emission reductions on an appropriate and cost-effective pathway to our 2050 target.

“The first three carbon budgets were set in 2009, following advice from the independent Committee on Climate Change. The Fourth Carbon Budget – the limit on emissions for the five year period from 2023 to 2027 – has to be set in law by the end of June 2011.

“As advised by the Committee on Climate Change, the level we propose setting in law would mean that net emissions over the Fourth Carbon Budget period should not exceed 1950 million tonnes of carbon dioxide equivalent. – a 50% reduction from 1990 levels.

“As required by the Climate Change Act, once the Fourth Carbon Budget has been set in law, we will publish a report setting out the policies and proposals required in the medium-long term to meet the budget, building on the strong foundation provided by our existing policies. This will take the form of the revised government carbon plan later this year, following the publication of the interim version in March.

“..the Committee on Climate Change advised that we should aim to meet the Budget through emissions reductions in the UK rather than relying on carbon trading, such as under the EU Emissions Trading System or the purchase of international credits from projects abroad. We will aim to reduce emissions domestically as far as is practical and affordable. But we also intend to keep our carbon trading options open – to maintain maximum flexibility, and minimise costs in the medium-long term. Given the uncertainty of looking so far ahead, this is a pragmatic approach.

“Under the Climate Change Act, emissions reductions by the UK’s industrial and power sectors are determined by the UK’s share of the EU Emissions Trading System cap. This protects UK industrial and power sectors from exceeding EU requirements. However if the EU ETS cap is insufficiently ambitious, this could mean placing disproportionate strain on other sectors outside the EU ETS such as transport.‪

“To overcome this and to provide clearer signals for businesses and investors, government will review progress towards the EU emissions goal in early 2014. If at that point our domestic commitments place us on a different emissions trajectory than the Emissions Trading System trajectory agreed by the EU, we will, as appropriate, revise up our budget to align it with the actual EU trajectory.

“In line with the Coalition Agreement, Government will continue to argue for an EU move to a 30% target for 2020, and ambitious action in the 2020s.

“As part of the transition to a low carbon economy, we need to ensure that energy intensive industries remain competitive and that we send a clear message that the UK is open for business. Before the end of the year we will be announcing a package of measures for energy intensive businesses whose international competitiveness is most affected by our energy and climate change policies. Rising electricity costs pose a key risk to these sectors which are critical to our growth agenda. We will, therefore, take steps to reduce the impact of government policy on the cost of electricity for these businesses, thereby allowing them to continue to play their part in delivering our green industrial transformation. In this way, we will ensure that that these sectors remain internationally competitive and we send a clear message that the UK is open for business.”

There’s Always an Alternative View on Climate Change…..

I suppose that on the day the Government outlines new targets for addressing climate change, it’s inevitable that there would be an alternative view – and there is: from Lord Turnbull in the Daily Telegraph today.

We’ve heard many of these arguments before, but Lord Turnbull discusses them like this:

“First, the science is nowhere near as conclusive as it is presented. Though there is no disagreement that CO₂ is a greenhouse gas, there is no consensus on the relationship between CO2 and temperature. Many scientists also challenge the dominant role assigned to man-made CO2, arguing that other variables such as the sun, cosmic rays, oceans and clouds have been underplayed. Given this, it is unwise of the Government to have placed such heavy bets on just one interpretation of the evidence

Second, there have been failings in the governance of science. Senior figures in our scientific establishment, rather than promoting challenge, have sought to close the debate down and tell us the science is settled. The gap between the IPCC’s huge responsibilities to advise on one of the biggest issues of the day, and its competence to do so, is now so vast that it should be scrapped and replaced.

Third, the framework provided by the Climate Change Act takes no account of what other nations are doing. For a country like the UK, which produces only 2-3 per cent of global man-made emissions, this makes no sense. If we push too hard on decarbonisation, we will suffer double jeopardy: our energy-using industries will migrate and we may still need to invest heavily in adapting our infrastructure.

Fourth, the way in which the policy responses are being prioritised makes no sense. In a logical world, one would start with those technologies that are most effective in terms of cost per ton of CO₂ abated. But the EU renewables policy denies this logic. One set of technologies – in particular, wind – is guaranteed a market share and an indexed price regardless of how competitive it really is. Taking account of wind’s intermittency, its cost per kilowatt hour (kwh) exceeds that of other low carbon sources. Wind capacity should not be confused with output.

Fifth, current policies are hugely unfair. Those with large properties or landholdings on which to install solar panels or wind turbines can earn 30p-40p per kwh, which is retailed at around 11p. The loss is paid for by a levy on all households and businesses. If you live in a tower block in Lambeth, you don’t have much opportunity to share in this.

Finally, policies are failing to adapt to change, notably the impact of shale gas, which can make a huge contribution to carbon reduction with little extra cost.”

Lord Turnbull suggests that “in responding to the advice from the Committee on Climate Change on the next set of targets, the Government has an opportunity for a rethink. Instead, it seems likely that the requirements of keeping the Coalition together will take precedence.”

I don’t agree with Lord Turnbull’s analysis on climate change, though I do agree that there are probably some Coalition politics involved in today’s announcement. It will be interesting to see how the Coalition puts its argument later today.

Cabinet agrees Climate Change ‘Green Deal’ – UK ‘world leader’ in cutting carbon emissions

By David Bicknell

The Coalition is expected to announce this week that it has agreed a far-reaching, legally binding “green deal” that will commit the UK to two decades of drastic cuts in carbon emissions. The package, reported last weekend in The Observer, will, it is claimed, place Britain at the forefront of the global battle against climate change.

Huhne is now expected to tell parliament that the government will accept the recommendations of the independent committee on climate change for a new carbon budget. The deal puts the UK ahead of any other state in terms of the legal commitments it is making in the battle to curb greenhouse gases.

The new budget puts the government on target to meet a reduction by 2050 of 80% of carbon emissions compared with 1990 levels. The committee has said that to reach this carbon emissions should be cut by 60% by 2030.

The article says ministers believe that major companies involved in developing offshore wind technology – such as Siemens, Vestas and General Electric – will now be keener to invest in Britain, knowing it is committed to a huge expansion in renewable energy. It is also hoped that the commitment to renewable energy – the committee says 40% of the UK’s power should come from wind, wave and tide sources by 2030 – will stimulate new industries.

These would include the development of tidal power plants, wave generators and carbon capture and storage technology – which would extract carbon dioxide from coal and oil plants and pump it into underground chambers. All three technologies, if developed in Britain, could be major currency earners.

The committee’s report says the new carbon deal will require that heat pumps will have had to be installed in 2.6m homes by 2025. It also says that by the same date 31% of new cars, and 14% of those on the road overall, will be electric. Experts say a total of £16bn of investment will be needed every year to meet the commitment. Some of this money will be raised through increases in electricity prices.

It is interesting to see that there is a mention of electric cars. No one, however, seems to have yet spotted the potential of electric bikes. One newly announced scheme, ComOOt, which would help London-based companies reduce their mushrooming subsidised travel bills for their commuting employees, has so far failed to make it onto the radar screen of a Transport Department blinkered by electric cars, and with a fanciful notion that the infrastructure will one day be in place to support them.

A Catalyst for Change? Or a Roadblock to it?

By David Bicknell

A couple of recent pieces caught my eye, both of them from the Daily Telegraph. One discussed the state of the Coalition and whether, instead of being a catalyst for reform and change, the Liberal Democrats become the roadblock to it,  and a surprisingly positive piece – for the Telegraph – about David Cameron by Peter Oborne.