Category Archives: change management

Some success in cutting Whitehall costs

Posted on 02/02/2012 | Leave a comment

By Tony Collins

The coalition government, Cabinet Office, Treasury, departments and agencies have succeeded in cutting central government costs, according to a National Audit Office report published today.

The NAO found that “in particular, large reductions have been made in spending on consultants, temporary staff, property and information technology” in 2010-11.

Departments cut their spend on consultants by £645m in – a real-terms reduction of 37%, said the NAO which also identified “£537m reduced capital spending on IT-related items”.

Unlike some previous reports of the NAO that have questioned the credibility of officialdom’s claims of savings, the NAO’s latest report “Cost reduction in central government: summary of progress” found that the savings claimed by the Cabinet Office, Treasury and government were usually genuine.

Where departments have cut costs by cancelling IT projects or having contracts renegotiated – as opposed to simplifying and streamlining the way they work – the NAO was unsure whether the savings could be sustained.

Said the NAO

“Central government departments took effective action in 2010-11 to reduce costs and successfully managed within the reduced spending limits announced following the 2010 election.

“This resulted in a 2.3% real-terms reduction in spending within departments’ control, compared with 2009-10. Some £3.75bn or around half the reduction was in areas targeted by the Efficiency and Reform Group for cuts in back‑office and avoidable costs.”

Are IT cuts sustainable without a change in working practices?

The NAO said:

 “The fall of 35 per cent in IT capital spend is partly the result of decisions to permanently halt or reduce spending on specific projects, and partly the result of action to reduce the costs of IT products and services including through contract renegotiation.

“However, it is unlikely that IT capital spending will remain at this lower level in total, given the key role of IT and online services in increasing productivity.”

The NAO mentioned the actions of some departments by name.

–          The Home Office cut costs in part by “significant reductions in IT, estates and consultancy spending”.

– HM Revenue & Customs, the Department for Work and Pensions and the Ministry of Defence aimed to secure the bulk of cost reductions from within their organisations. HM Revenue & Customs has established comprehensive governance arrangements to reduce costs, with a central team and programme management infrastructure. The Department for Work and Pensions put in place a transformation programme board in May 2011 to oversee the redesign of its corporate centre and broader cultural change. “However, it cannot finalise plans beyond 2011-12 as they depend on the future business model after the introduction of Universal Credit,” said the NAO. The DWP’s finance team has provided ‘What the Future Holds’ updates and interactive briefings for staff.

– The NAO said it “identified strong leadership as a key factor in the success of the Foreign and Commonwealth Office’s cost reduction efforts”.

– The Centre for Environment, Fisheries and Aquaculture Services within the Department for Environment, Food and Rural Affairs “held sufficiently detailed information to be able to challenge its project managers to reduce costs without affecting services”. The NAO said the “resulting savings identified from some 200 projects made up 30 per cent of the Agency’s efforts to meet their efficiency savings target”.

In July 2011, the Cabinet Office’s Efficiency and Reform Group reported to the Public Accounts Committee that it had helped save some £3.75bn through various initiatives. “Our analysis of the audited accounts of the 17 main departments confirms that spending in the areas targeted was reduced on this scale”, said the NAO.

Comment

The NAO report shows that within some departments officials are cutting costs by simply reducing grants but some parts of central government are making an effort to do things differently.

We hope the coalition and Cabinet Office keep up the pressure for cost-cutting because, in IT alone, the potential savings are in the billions. The NAO report shows there has been a good start. We hope that the officials who are achieving lasting success will pass on their learning experiences to those who are struggling to make cuts sustainable.

NAO report Cost reduction in central government – a summary of progress

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Posted in Campaign4Change, capacity building, change, change management, Government IT, IT projects, managing change, managing outsourced services, operational issues, recruitment freeze, reducing cost strategically, reforms, Universal Credit

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DWP civil servants get ready for MyCSP mutual leap

Posted on 01/02/2012 | Leave a comment

By David Bicknell

An article  published yesterday in the Financial Times has focused on the move of 500 civil servants to form a mutual.

The 500 staff, currently in the Department of Work and Pensions (DWP), will leave the public sector in March and become stakeholders in MyCSP, a privately held company that will handle the retirement funds of 1.5m civil servants.

The FT calls the move to create a so-called John Lewis-style mutual, “one of the biggest experiments in public sector reform.”

It writes that under the MyCSP model, profits will be shared between a private sector provider, which will hold a 42 per cent stake; the government, with 33 per cent; and employees, who will own 25 per cent of the shares. 

A shortlist of 16 private sector providers has been whittled down to four – Xafinity, Capita, JLT and Wipro – with the winner due to be announced next month.

In light of the ongoing row over executive pay, the FT points out that the chief executive’s compensation will be capped at 8 per cent above the average employee’s salary while 1 per cent of net profits will be paid to charities and a further 1 per cent used to create apprenticeships.

You can read the full FT article here (subscription required)

Stephen Kelly – the man at the coalface of the Big Society

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Posted in Campaign4Change, change management, managing change, mutualisation, mutuals, public sector, social enterprise

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NPfIT Cerner go-live at Bristol – Trust issues apology

Posted on 31/01/2012 | 4 comments

By Tony Collins

North Bristol NHS Trust has issued an apology on its website after problems with the implementation of a Cerner Millennium patient record system under the National Programme for IT.

Some Bristol consultants had regarded the software as installed at the Trust as “potentially dangerous”.

The Trust went live on 9 December 2011 with a Cerner patient administration system at Frenchay Hospital and Southmead Hospital that replaced two systems. But the Trust has had to revert to paper in some areas.

On its website the Trust says that its “65 wards and maternity department are all using the new system successfully”.

It accepts that it has “experienced significant problems” in outpatient clinics. It says “These problems have been caused by the incorrect set up of clinic lists, which meant staff could not access the system and errors in the data migration of existing appointments.

“As a result, some patients may have received the wrong appointment dates, no confirmation of appointment or letters being sent out in error.  Again, processes are in place to minimise further disruption to out-patient appointments and ensure patient safety.”

TheTrust says it has engineers and technicians re-building the clinics’ system or they are “in clinics correcting problems as they happen, providing solutions and resolving issues”.

The intention is that 90% of areas will be using Cerner by the end of today [31 January]. “Our aim is that by early February all outpatient clinics will be using Cerner. All other outpatient appointments are being managed via other systems and paper processes.”

The Trust says it is contacting patients by phone or letter to advise them of their current appointment slot. “We have ensured that any urgent referrals including cancer two week waits have been prioritised to ensure they are unaffected.”

It adds “During the process of correcting the issues with outpatient clinics and to support GPs and their patients we have written to them to advise them that all patients who have been referred to us either through Choose & Book, fax or Fast Track are within our appointments system.

“We have advised GPs of a dedicated telephone number, fax number and email address for GPs or their patients to contact for further advice. To provide further reassurance to patients and GPs we will keep the helpline service running until the end of February.”

Apology

The Trust says on its website:

“We apologise and would like to thank the public for their patience and our staff for their hard work and dedication in ensuring that patient safety is not compromised.

“These issues have caused disruption and frustration for our patients and our staff and we recognise that this has not delivered the level of service that we expect, and the public expect, from us.

“It has also placed extra workload on our staff, who nevertheless, remain dedicated to ensuring the best possible patient care during this period, and managing the issues that the Trust faces.

“Our Information Management & Technology Team, supported by our suppliers BT and Cerner, have been working very hard to sort out these initial issues and we are already seeing improvements.

“We remain confident that once the new system is fully implemented, it will significantly improve services for our patients and better equip us to meet future challenges.”

Meanwhile the Bristol Evening Post reports that the Chief Executive of the hospital trust, Ruth Brunt, has called for an independent inquiry into the issues surrounding the implementation of the Cerner system.

She said people who have turned up to appointments and operations that have been cancelled or were not on the system would be compensated.  A hotline has also been set up so that people can check whether their appointments are in the system.

The Bristol Evening Post also reported that reception staff had walked out due to the pressure of dealing with patients who were unhappy to find their appointments not on the new system.

“It is horrendous – what used to take us five or six clicks is currently taking 24 and we cannot access the details,” a staff member said. “The notes have not been available when people turn up.

“We have all worked hard and I am sure if it was anywhere else we would have gone on strike. The people on the ground are struggling. It is really demoralising because we are doing our best. Girls on reception are dealing with queues of people and there has been an occasion where a receptionist has walked out because they were so stressed.

“When patients call up we want to be able to help them, but at the moment we don’t know where to look.”

The employee did not believe the trust’s claims that everything would be sorted out by 13 February.

Halt Cerner implementations says MP

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Posted in Campaign4Change, capacity building, change management, Government IT, health, innovation, NHS, npfit, outsourcing, risk

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BRICS countries face identity card IT project delays

Posted on 31/01/2012 | 2 comments

By David Bicknell

Two of the BRICS countries are wrestling with project management challenges as overambitious IT projects face an uncertain future.

India and Russia, which are two of the emerging so-called ‘BRICS’ – Brazil, Russia, India, China, South Africa – nations have implemented large identity card schemes which are now facing implementation hurdles.

In India, an ambitious biometric identification scheme for 1.2 billion people faces is likely to have to be redesigned if it is to survive.

The Asia Times says the Indian government has budgeted US$603 million to give a 12-digit number to each of 600 million residents by March 14, 2014, in the first two phases of the  project, dubbed “Aadhaar”, which means “foundation” or “support.”

The Asia Times says the Indian government had asked the Unique Identification Authority of India (UIDAI) project to enroll 200 million people by January 2012, in a first phase.

The UID number, which is set to prove identity, though not citizenship, would be supported by biometric devices such as facial recognition systems, eye and fingerprint scanners. However, a committee in the Indian Parliament has questioned its practicability and credibility.

The Standing Committee for Finance also challenged the legality, quality of technology and potential misuse of the UID information collected over the past two years.

The project had “no clarity of purpose,” observed the 48-page report from 53 parliamentarians, “and it is being implemented in a directionless way with a lot of confusion”.

It concluded: “In view of the afore-mentioned concerns and apprehensions about the UID scheme, particularly considering the contradictions and ambiguities within the Government on its implementation as well as implications, the Committee categorically convey their unacceptability of the National Identification Authority of India Bill, 2010 in its present form. The data already collected by the UIDAI may be transferred to the National Population Register (NPR), if the Government so chooses. The Committee would, thus, urge the Government to reconsider and review the UID scheme as also the proposals contained in the Bill in all its ramifications and bring forth a fresh legislation before Parliament.”

Meanwhile in Russia, according to the Moscow Times, a universal electronic card is facing delays, with a rollout scheduled for this month now being pushed to January of 2013.

The card – a combination of an electronic ID, driver’s licence, car insurance certificate, ATM card and migration document, among other possible functions – is the result of a project the government estimates will cost as much as 150 billion rubles to 170 billion rubles ($5.2 billion to $5.6 billion) to put in the hands of every citizen.

Limited initial use of the card was scheduled to take place this year, but the law that set up the project was amended in December to allow for a one-year delay.

The Moscow Times reported that the program will begin to function next year and that this year will be spent organising sites that will receive applications for the card. Application sites are expected to be set up at post offices, banks, and other locations.

A ministry spokesman confirmed that infrastructure for the project is just beginning to be created, and only four out of 83 regions having begun work on it.

“The delay in starting the project is related to issues around interagency cooperation and underdeveloped infrastructure in some regions,” said Yulia Kuchkina, a spokeswoman for the Universal Electronic Cards company (UEC). “Pilot cards are being issued — with employees of government agencies and ministries becoming the first users. In Moscow test cards have been received by employees of the Moscow Department of Information Technology,” she added.

Mail Online India: Setback for Planning Commission as Prime Minister bats for UID

Standing Committee for Finance Report

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Posted in BRICS, Campaign4Change, change management, Government IT, IT projects, procurement, project management, public sector

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Why thinking beyond ‘If it ain’t broke, don’t fix it’ might pay business dividends

Posted on 30/01/2012 | 1 comment

By David Bicknell

Most organisations in the public sector are continuing to reduce their costs. 2012 brings a continued diet of re-asserting control of costs and delivering operational savings to cope with a challenging economic landscape.

But a conversation with York-based services and solutions company Trustmarque recently raised a new phrase, and one that is perhaps blindingly obvious, and which applies to both public and private sectors: cost avoidance.

As an IT organisation it is worth asking yourself whether you really need to purchase a product or service. Can you find an alternative strategy? If you don’t have to buy something, then don’t buy it. Or find a better way of spending the money to deliver structural change that benefits the business. 

Sometimes organisations miss an opportunity to bring their technology up to date and change the way they work. Their conservative approach never drives real change.

It is vendors like Trustmarque’s role to help such organisations plan, source, deploy and manage their IT infrastructure with an end goal of reducing their costs and delivering operational savings. In Trustmarque’s case, it is a highly successful approach which just led to the company’s best-ever year and won it the Services Provider of the Year title for 2011 in the CRN Channel Awards.

It is an approach that has also worked for its customers: Plymouth City Council, by upgrading to Windows 7, tackled change by creating a more flexible, mobile way of working – and saved itself £494,000 in licensing fees.

Sometimes you have to think big to win big. And thinking in terms of ‘cost avoidance’ rather than the cliche ‘reducing costs’  – though that doesn’t necessarily mean not spending at all – and going beyond an, ‘If it ain’t broke, don’t fix it,’ approach just might help some realise their cost goals, and at the same time, change their organisations for the better.

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Posted in Campaign4Change, change, change management, cost avoidance, Government IT, IT projects, project management, public sector, public services

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As Agile as a John Deere tractor

Posted on 27/01/2012 | 2 comments

By David Bicknell

Thanks to Rally Software’s Agile Blog for a pointer to a Computerworld post about the use of Agile development at the tractor maker John Deere & Co.

It seems that John Deere has moved 800 software developers into an Agile development process  in around a year.

This involved recreating the company’s software development effort around new teams that included developers, systems engineers, customer support and marketing personnel, testers, all working closely together.

It is ironic that although  John Deere’s software development work is incremental through an Agile approach that is designed to deliver speed, innovation, quality, customer focus and teamwork,  the company’s actual move to adopt Agile as a development philosophy was more of a Big Bang approach than an incremental one, and was partly designed to overcome any resistance.

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Posted in Agile, Campaign4Change, change, change management

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DWP defends £316m HP contract

Posted on 27/01/2012 | 1 comment

By Tony Collins

The Department for Work and Pensions could lead the public sector in technical innovations. It has had some success in cutting its IT-related costs. It has also had some success so far with Universal Credit, which is based on agile principles.

It has further launched an imaginative welfare-to-work scheme , the so-called Work Programme, which seeks to get benefit claimants into jobs they keep.

Despite media criticism of the way the scheme has been set up – especially in the FT – a report by the NAO this week made it clear that the DWP has, for the most part, taken on risks that officials understand.

Some central government departments have updated business cases as they went through a major business-change programme and not submitted the final case until years into the scheme, as in parts of the NPfIT.

But the DWP has implemented the Work Programme unusually quickly, in a little more than a year, by taking sensible risks.  The NAO report on the scheme said the business case and essential justification for the Work Programme were drawn up after key decisions had already been made. But the NAO also picked out some innovations:

– some of the Work Programme is being done manually rather than rush the IT

– suppliers get paid by results, when they secure jobs that would not have occurred without their intervention. And suppliers get more money if the former claimant stays in the job.

– the scheme is cost-justified in part on the wider non-DWP societal benefits of getting the long-term unemployed into jobs such as reduced crime and improved health.

So the DWP is not frightened of innovation. But while Universal Credit and welfare-to-work scheme are centre stage, the DWP is, behind the safety curtain, awarding big old-style contracts to the same suppliers that have monopolised government IT for decades.

Rather than lead by example and change internal ways of working – and thus take Bunyan’s steep and cragged paths – the DWP is taking the easy road.

It is making sure that HP, Accenture, IBM and CapGemini are safe in its hands. Indeed the DWP this week announced a £316m desktop deal with HP.  EDS, which HP acquired in 2008, has been a main DWP supplier for decades.

DWP responds to questions on £316m HP deal 

I put it to the DWP that the £316m HP deal was olde worlde, a big contract from a former era. These were its responses. Thank you to DWP press officer Sandra Roach who obtained the following responses from officials. A DWP spokesperson said:

“This new contract will deliver considerable financial savings and a range of modern technologies to support DWP’s strategic objectives and major initiatives such as Universal Credit.

“The DWP has nearly 100,000 staff, processing benefits and pensions, delivering services to 22 million people.

“DWP is on schedule to make savings of over £100m in this financial year for it’s Baseline IT operational costs, including the main IT contracts with BT and HPES [Hewlett Packard Enterprise Services].

“All contracts have benchmarking clauses to ensure best value for money in the marketplace.

“The five year contract was awarded through the Government Procurement framework and has been scrutinised to ensure value for money.”

My questions and the DWP’s answers:

Why has the DWP awarded HP a £316m contract when the coalition has a presumption against awarding contracts larger than £100m?

DWP spokesperson: “The Government IT Strategy says (page 10) ‘Where possible the Government will move away from large and expensive ICT projects, with a presumption that no project will be greater than £100m. Moving to smaller and more manageable projects will improve project delivery timelines and reduce the risk of project failure’.

“HM Treasury, Cabinet Office and DWP’s commercial and finance teams have scrutinised the DWP Desktop Service contract to ensure that it represents the most economically advantageous proposition.”

What is the role, if any for SMEs ?

DWP: “There are a number of SMEs whose products or services will form part of or contribute to the DWP Desktop Service being delivered by HP, for example ActivIdentity, Anixter, AppSense, Azlan, Click Stream, Cortado, Juniper Networks, Quest Software, Repliweb Inc, Scientific Computers Limited (SCL), Westcon etc.”

Why is there no mention of G-Cloud?

DWP: “Both the new contract and the new technical solution are constructed in such a way as to support full or partial moves to cloud services at DWP’s discretion.”

Comment:

For the bulk of its IT the DWP is trapped by a legacy of complexity. It is arguably too welcoming of the safety and emollients offered by its big suppliers.

The department is not frightened by risk – hence the innovative Work Programme which the NAO is to be commended on for monitoring at an early stage of the scheme. So if the DWP is willing to take on sensible risks, why does it continue to bathe its major IT suppliers in soothingly-large payments, a tradition that dates back decades? What about G-Cloud?

DWP reappoints HP on £316m desktop deal

DWP signs fifth large deal with HP

“DWP awards Accenture seven year application services deal”

“DWP awards IT deals to IBM and Capgemini”

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Posted in Agile, Campaign4Change, capacity building, change, change management, Cloud, Cloud Computing, G-Cloud, Government IT, IT projects, managing change, managing outsourced services, outsourcing, private sector lessons for the public sector, procurement, project management, public sector, public services, Real-Time Information, reducing cost strategically, reforms, supplier relationships, Universal Credit

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Any point in today’s IT report by Public Administration Committee?

Posted on 26/01/2012 | 1 comment

By Tony Collins

We congratulate the Public Administration Committee for following up its excellent Government and IT – “A recipe for rip-offs: time for a new approach” which was published in July 2011.

Too often MPs on Parliamentary committees, including those on the Public Accounts Committee, issue reports then forget about them.

Today’s report of the Public Administration Committee is disappointing though. It’s a fog of well-meant words. It comments in detail on the government’s response to the “recipe for rip-offs” report and for the most part uses civil service language. Last year’s report had specific, hard-hitting messages. Today’s is like a marshmallow sandwich: nothing much to bite on.

There is not even a mention of the need to publish progress reports on the government’s biggest IT-related projects.

If Francis Maude, the Cabinet Office minister, forced the civil service to publish these “Gateway” review reports, it would make departments accountable in a unprecedented way for the success or otherwise of projects and programmes while the schemes are running.

As it is, the government is being let off the hook in not publishing Gateway reports on Universal Credit or HM Revenue and Customs’ Real-Time Information programmes. These are two of the largest and riskiest of coalition schemes. Their monthly or quarterly progress, or lack of, will continue to go unreported.

Who cares? Certainly not the Public Administration Committee.

The Committee rightly describes the money wasted on IT in govermment as “obscene”. But its cloud of vague messages will do little more than indulge some civil servants who enjoy playing intellectually with ambiguous words and phrases to render them more uncertain.

Today’s Public Administration Committee report will change nothing. Fortunately Maude knows what needs to be done, with or without the Committee’s help.

Whitehall refuses to probe cartel claims, say MPs

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Posted in Campaign4Change, change management, Gateway reviews, Government IT, managing change, procurement, public sector, public services, supplier relationships, Universal Credit

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A few suggested blog posts – on change at Kodak, the rise of Splunk and a culture clash in China

Posted on 22/01/2012 | Leave a comment

By David Bicknell

Browsing over the weekend, I came across a few posts about change management and cultural change that caught my eye and are worthy of passing on.

A couple are from the Harvard Business Review, and one is taken from IT-Director.com.

The Harvard Business Review items cover the innovation and transformational change issues involved in the continued demise of Kodak and the cultural issues that anyone who has plans to do business in China may have to get to grips with. The IT-Director article covers the growing reputation of Splunk, a real-time operational intelligence specialist that collects and indexes machine data and which has potential in the growing ‘Big Data’ marketplace.

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Posted in Big Data, Campaign4Change, change, change management, China, culture, IT projects, managing change

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Halt NPfIT Cerner deployments after patient safety problems at 5 hospitals, says MP

Posted on 19/01/2012 | 2 comments

By Tony Collins

Conservative MP and member of the Public Accounts Committee Richard Bacon called today for a halt on deployments of the NPfIT Cerner Millennium system after patient safety problems at hospitals in Oxford and North Bristol.

Other hospital deployments underway include Royal Berkshire and Imperial College London.   The BBC has reported that patient-booking software at North Bristol was regarded by some consultants as ‘potentially dangerous’.

The software was installed at the Trust last month under the National Programme for IT [NPfIT].    According to a BBC Points West investigation, the implementation led to some patients missing their operations and, in other cases, the wrong patients being booked for operations.

One consultant told the BBC he had been put down to operate on patients from a completely different speciality.  Patients were also being booked for unlikely appointment times, such as five minutes past midnight, and patients were said to have turned up for phantom appointments on the New Year bank holiday.

Separately the Oxford Mail reported this week that Oxford University Hospitals NHS Trust, which includes Nuffield Orthopaedic, John Radcliffe, Churchill, and the Horton General hospitals, has difficulties booking in patients for treatment.  It deployed the Cerner Millennium software in December.

According to the Oxford Mail, some patients ringing in to book appointments waited up to an hour to have their calls answered and appointments were so delayed the Trust abandoned car parking charges for three days.

Patients reported problems that included ambulances queuing outside of A&E as staff struggled to book in patients.

Pensioner John Woodcock told the Oxford Mail that it took a week of calling the local contact centre to book an appointment for an important stomach examination.

The contact centre gives patients the option of leaving a message for staff to call back, or to join a phone queue. The 75-year-old said “I managed to get an appointment in the end by staying on the phone but it took half an hour almost.”

An Oxford University Hospitals spokesman was unable to say when the system would be able to function without delays but suggested it could be up to three months. Hospital officials blamed the disruption on deployment problems and training issues.

Bacon has long criticised the National Programme for locking the NHS into buying software that was unreliable, subject to serious delays and, even after contract renegotiations, unreasonably expensive.

He disclosed that the costs of a Cerner Millennium deployment at the North Bristol NHS Trust are about £29m over seven years. This is more than three times the reported £8.2m price of a similar system, bought outside the National Programme, at University Hospitals Bristol Foundation Trust.

Bacon said the lessons from major patient safety problems at the Royal Free Hampstead, Barts and The London and Milton Keynes General Hospital had not been learnt.

“We now have two of our leading hospitals brought to their knees by this system.  These deployments need to be stopped until we are sure that they can be managed safely.”

He added “Effective, affordable and robust IT systems are vital to the future of the NHS, but it is clear that the fiasco that is the National Programme cannot deliver them.”

One patient emailed the Oxford Mail to say that the gain will be worth the pain.

“… A word of congratulations to staff. I too had problems with booking an appointment a few days after launch, but sent an email to which I first received an answer in the form of a call-back to fix an appointment and then a personalised apology and explanation…

“Think about the time, effort and accuracy gains of an electronic records system, and not having all those sometimes thick files being ferried round the different departments; think too of the gains in patient confidentiality – now every time someone accceses your records, that will be logged.

“When things have bedded in properly, and I believe this will be sooner rather than later, if the committed and dedicated staff have anything to do with it …  we’ll soon come to be grateful, both for the increase in efficiency and the financial savings – which can then be used on frontline services…”

NPfIT Cerner go-live has “more problems than anticipated”

System still causing chaos – Oxford Mail

London trusts in chaos

 

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Posted in Campaign4Change, change management, Government IT, managing change, managing outsourced services, NHS, npfit, openness and transparency, project management, risk

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