Category Archives: efficiency savings

How CIOs and IT suppliers view GovIT change

By Tony Collins

CIOs and IT suppliers give their views on Government ICT in an authoritative report published today by the Institute for Government

Inside the wrapper of generally positive words, a report published today on government ICT by the Institute for Government suggests that major change is unlikely to happen, despite the best efforts of  CIOs and the Cabinet Office minister Francis Maude.

The report “System upgrade? The first year of the Government’s ICT strategy”  says progress has been made. But its messages suggest that reforms are unlikely to  amount to more than tweaks.

These are some of the key messages in the report:

If the minister and CIOs cannot direct change who can?

–          “… while the Minister for the Cabinet Office and government CIO are viewed as being responsible for delivering the ICT strategy (for example by the Public Accounts Committee) they currently lack the full authority to direct change.”

Not so agile

–           “While just over half of government departments may be running an agile project, there were concerns that these were often very minor projects running on the fringe of the departments.”

–          “We heard concerns from the supplier community and those inside government that in some areas projects may be being labelled as ‘agile’ without having really changed the way in which they were run.”

–          “CIOs should question whether they are genuinely improving the ways that they are working in areas such as agile, or whether they are just attaching a label to projects to get a tick in the box,” says the Institute for Government.

Savings not real?

–          “There was also an element of challenge to the savings figures provided by government. For example, some from government and the supplier community questioned whether the numbers represented genuine savings or just cuts in the services provided or deferred expenditure. “

–          “Others … cautioned that project scope creep or change requests could reduce actual savings in time. It was pointed out that the NAO [National Audit Office] will scrutinise whether savings have been achieved in future, which was seen as a clear incentive for accuracy – but there were, nonetheless, concerns that pressure to provide large savings figures meant that inadequate attention might be paid to verifying the savings …”

CIOs want faster ICT progress

–          “Among the CIOs we interviewed, there was a clear recognition that government ICT needed to improve.  ‘You expect an Amazon experience from a government department…’ ”

Lack of money good for change

–          “As one ICT lead noted, a lack of money was ‘always helpful’ in driving change as it promoted cross-government solution-sharing and led to more rigour in approving new spend.”

–          “Both ICT leaders and suppliers felt that the ICT moratorium had been a helpful stimulus for increased focus on value for money.”

–          “Though some of the larger suppliers felt bruised by the ‘smash and grab’ of initial interactions with the Coalition government, there was a recognition that the moratorium had been about ‘stopping things which were inappropriate’”.

GDS challenges norms

–          “New ways of working in the new Government Digital Service and the opening up of government through the Transparency agenda were also seen as providing a challenge to existing norms.”

–          The new Government Digital Service (GDS) is providing an example of a new way of doing things, and was pointed to by those inside and outside of government as embodying mould-breaking attitudes, using innovative techniques and … delivering results on very short timescales. Several interviews mentioned being invigorated by the positive approach of the GDS and their focus on delivering services to meet end-user needs.

ICT so poor staff circumvent it

–          “Public servants are increasingly frustrated that the ICT they use in their private lives appears to be far more advanced than the tools available to them at work. Indeed, there are already examples of employees circumventing the ICT that government provides them as they attempt to perform their job more effectively: creating what is known as a system of ‘shadow ICT’ that creates significant challenges for maintaining government security, collaborative working and government knowledge management.”

Joined-up Govt impossible?

–          “The possibility that departmental incentives continue to trump corporate contributions is further suggested by our survey results. Individuals do not yet feel that corporate contributions are valued or rewarded … elements of the [ICT] strategy call for departments to give up an element of autonomy and choice for the ‘greater good’. Several CIOs expressed concerns that by adopting elements of the strategy that were being developed or delivered by another department, they would end up having to accept a service that had been designed  around the needs of a different department.”

–          “Similarly, there were concerns that the host department would be at the top priority in the event of any problems or opportunities to develop services further. This speaks to a strongly department-centric culture. Suppliers noted, for example, that certain parts of government were still happy to ‘pay a premium for their autonomy’.”

–          “… the vast majority of those we spoke to suggested that departmental interests would almost always ultimately trump cross-government interests in the current government culture and context.”

–          “CIOs felt that they would be rewarded for delivery of departmental priorities – not pan-government work …”

CIO Council frustrations

“CIOs noted that there could be a discrepancy between what got agreed at the old CIO Council meetings and what people actually went away and did. Larger department CIOs also expressed frustration that – despite holding the largest budgets and carrying the largest delivery risks – their voices could easily be outweighed by the multitude of other people round the table.”

“The delivery board model [which has superseded CIO Council] has been recognised by both big and small departments as pragmatically dealing with both sides of this issue. Larger departments now form part of an inner-leadership circle, but with this recognition of their clout comes additional responsibility to own and drive through parts of the strategy… the challenge will now be to ensure that the ICT strategy doesn’t become a ‘large department-only’ affair and that other ICT leads can be effectively engaged.”

Canny suppliers?

–          The majority of ICT leads …stated that they believed the ICT strategy would benefit their department and government as a whole. This confidence was less apparent in the attitudes of suppliers who were, on the whole, more sceptical of government’s ability to drive change, though again generally supportive of the direction of travel.

A toothless ICT Strategy is of little value?

–          “…There was also a lack of clarity on how different elements of the [ICT] strategy would be enforced. As one ICT leader commented … ‘Is this a mandatable strategy or a reference document?’ ”

–          … “there are risks that the strategy could be delivered in a way that still doesn’t transform ICT performance.”

Francis Maude an asset

–          “Government ICT has also been a priority of the Minister for the Cabinet Office, Francis Maude – giving the [change] agenda unprecedented ministerial impetus. He has been a visible face of ICT to many inside and outside of government, from demanding departmental data on ICT to being heavily involved in negotiations with ICT suppliers. Though few of his ministerial colleagues appear as passionate about improving government ICT, the CIOs we interviewed overwhelmingly expressed confidence that they would receive the support they needed to implement the changes in ICT.”

Smaller-budget CIOs out of the loop?

–          “With the CIO Council in hiatus for most of the last year, the CIOs of smaller departments felt out of the loop …”

Most ICT spending is outside SW1

–          “Suppliers and other ICT leaders pointed out, rightly, that the vast majority of ICT expenditure happens outside SW1 – with agencies, local government and organisations like primary care trusts and police forces still determining much of the citizen and workforce experience of ICT.”

SMEs still left out?

–          “Smaller suppliers … were generally encouraged that government was trying to use more contractual vehicles which would be open to them – but noted that it was ‘still extremely difficult to get close to government as an SME’.”

Who knows if use of ICT is improving?

–          “Government still lacks the information it needs to judge whether use of ICT across government is improving.”

System upgrade? The first year of the Government’s ICT Strategy.

Too early to claim success on GovIT – Institute for Government

Watmore’s successor – the biggest challenge?

By Tony Collins

Ian Watmore, Permanent Secretary at the Cabinet Office, leaves at the end of June. What will be the biggest challenge for his successor?  I am told it will be to join up all the efficiency and reform measures:  ICT, digital, procurement, supplier management, project management, new business models, property and rationalisation  so that they are coherent from the point of view of departments, and don’t just look like a random set of instructions from the centre.

Farewell to Ian Watmore – the antithesis of Sir Humphrey

Farewell to Ian Watmore – the antithesis of Sir Humphrey

By Tony Collins

A good insight into the departure of Ian Watmore comes from Peter Smith of Spend Matters who says:

 “He (Watmore) lives in Cheshire still (and does a weekly commute to London) and this seems to be driven by personal factors – he wants to do more non-executive stuff,  work with charities, education bodies, and support his wife who is being ordained as a vicar shortly.

“There will be a competition to replace him but Melanie Dawes (?) will be the interim Perm Sec.”

Watmore leaves in June at the height of his civil service career. It would be too easy to cite his background as UK Managing Director of Accenture to say that he came to the civil service with a sympathy for big suppliers and not upsetting the smooth-running of the government IT machine.

Indeed he will not go down in civil service history as a heavy-handed enforcer of central government reforms: he respects too much the work of senior civil servants and particularly CIO colleagues to be seen as an opponent whose will cannot be overcome.

Rather he has been an authoritative go-between, a pragmatist who has sought to implement the radical cost-saving measures demanded by the Cabinet Office minister Francis Maude without giving departments any excuse to cite central diktats as the reason for disruption to frontline services.

Watmore gave an insight into his relationship with Maude at a Parliamentary committee hearing earlier this year. His comments also exploded the myth that the private and public sectors can be run on comparable lines.

“I have been on both sides of the divide on private and public,” said Watmore. “The thing that is different about  the public sector is the combination of leadership from the ministerial class and the civil service class. There is no corporate analogue for it. People talk about the way it analogises to the business world—I don’t think it does; it is different…

“I work on a daily basis with Francis Maude. I am not going to make any political comments about Francis, but as a man I feel that he cares about what he is doing;  he knows his stuff and he drives us very hard. In response, I give, shall we say, robust advice in return. Mostly, he listens and sometimes I defer to him and we come back to the same place we started, but more often than not we flesh out the differences behind closed doors and then we come out on a united front. I think that is the best way to get civil service and ministerial leadership. If you have a weakness in one part or the other, the whole thing breaks down.”

At Campaign4Change we will remember Watmore’s career in the civil service for his openness, honesty and lack of ego.

When answering questions before Parliamentary committees, some permanent secretaries seem to see MPs as adversaries. These civil servants’ replies are characterised by clever, evasive or adversarial comments.  They apologise if the mistakes were before their time but usually they’re protective of their departments, as if defending their children against criticism by outsiders.

Watmore is the antithesis of the archetypal civil servant.  Whereas, for example, most civil servants want to keep confidential internal “Gateway” reports on the progress or otherwise of high-risk IT and construction projects, Watmore is on record as saying he would like them published (though they haven’t been).

And he has earned respect among MPs for his straightforwardness. He’ll speak lucidly on his department’s achievements, but not his own.

How much effect he has had on other departments is hard to gauge. It’s difficult to see how the most ruthless enforcer in the Cabinet Office could ever have much influence in other departments.

For though the Cabinet Office has powers from David Cameron to enforce cost-savings,  departmental heads remain accountable for their own decisions. Watmore has spoken of the tensions between the Cabinet Office and departments.  He told MPs earlier this year:

“There are lots of examples where we and Departments have common cause. There will be times when we challenge what they want to do and it can be a tense relationship. Sometimes we agree with what they were going to do anyway, and other times they agree with us, but it means that we are engaging with them.”

Chair: How well is it working on a scale of one to 10 … on the cross-departmental working?

Watmore: “On the whole cross-departmental working, I would say it is somewhere around the six or seven mark. There is more to do.”

Watmore shuns the trappings of high office.  He doesn’t even have an office. “I refuse to have one,” he told MPs this year. “I don’t believe in physical offices for managers. I hot-desk wherever I happen to feel it is appropriate to work that week…

“What I tend to do is I move around and I sit with a different group in the Cabinet Office for a week. Initially people think it is a bit odd having the Permanent Secretary sitting next to them but once you carry on as normal they realise you are just another person working there.

“You actually get to find out quite a lot about how the operation works by being there with the staff for a week as well as hearing from them in a more formal setting…

“It is how I operated when I was in business so it is a long-term way of working. But when I came into Government I discovered it by accident; when I wanted to move the staff from two different bits of Government into a new building and introduce flexible working, hot-desking and all the rest of it, I said, ‘If it is good enough for the rest of the staff, it should be good enough for me…’

Will Maude find someone authoritative and influential but without a big ego to replace Watmore at the top of the Cabinet Office? A difficult assignment.

Cash-strapped council IT teams to get backing for innovation projects

By David Bicknell

IT teams in cash-strapped councils are being given a helping hand to drive new IT projects where teams believe technology innovation could drive positive change in local communities.

It follows the launch of a Future Fund created by mobile telecomms company O2 to help forward-thinking councils get to grips with new methods of engaging their staff, citizens and communities.

Successful local authorities applying for the scheme will be awarded access to O2 consultancy time, services and technology to help them turn their project ideas into reality.

The Future Fund open for applications on 25th April with three grant funding packages available to the value of £125,000, £75,000 and £50,000.

60 councils attended the launch event with the scheme focused on authorities developing ideas and services against three broad themes: reducing cost and improving efficiencies; finding new ways of engaging with citizens; and empowering the community to do more for itself.

Each of the topics points to more effective service delivery, by empowering staff or by expanding the concept of ‘self-service’.

To support the Fund’s launch, O2 plans to showcase 17 different parts of its business, each with their own unique slant on the digital age, from established technologies such as wi-fi to ‘people’ skills, social media expertise, mobile advertising and location-based services, as well as business engagement and apps development. Councils will be able to pick which selection of services to use to build their idea and weave into their bid.

O2 says it has created the Future Fund through its Local Government Futures Forum, which aims to understand what the role of IT should be in modernising councils in challenging times.

It argues that as technology advances at a rapid pace, with people creating and consuming data in more diverse and immediate ways, councils face a challenge to use these channels to demonstrate communications nous and find new ways to engage with their communities.

A recent consultation exercise found that budget cuts across the public sector have resulted in an expected automatic squeeze on resources, with mounting pressure across all departments to operate more efficiently and do more with less. 

With ongoing pressure to reduce spending, council decision-makers are opting for solutions that make an immediate impact – cutting services, and in turn cost – rather than looking at ways of adapting them, with IT departments facing an uphill struggle to retain and control their destinies, often competing for de-centralised budgets across multiple teams with no place or input at a board level.

Ben Dowd, Director of Business at O2 says: “O2 believes that the right application of technology has the potential to drive real change. Our findings through our work with local government IT departments support this belief. What is different is that the Future Fund will give a glimpse of what is possible with a bit of imagination and we will support the winning bids by providing investment in their IT infrastructure coupled with resource and expertise.

“So it is up to the councils to determine how it can be applied to their own council, citizens or community, ultimately giving local government the ability to shape their own destiny in a project they are passionate about.”

Applications for the Fund will be judged by a panel of experts from O2 and independent parties. Councils will then have eight weeks to develop and deliver their ideas, before selection takes place later this year.

www.o2.co.uk/futurefund

Should Francis Maude say “no” to so many projects?

By Tony Collins

When Jack Straw was Secretary of State for Justice and Lord Chancellor, he told MPs on the Constitutional Affairs Committee in 2007 that when he abandoned projects there was a fuss at first and soon nobody noticed the project did not exist.

“There is always the option to abandon things. I did that in the Foreign Office with much complaint that the world might end.

“What happened was that we saved a lot of money and no one ever noticed the fact that that scheme did not exist…it is very frustrating that so many people, including the private sector, are taken in by snake oil salesmen from IT contractor who are not necessarily very competent and make a lot of money out of these things. I am pretty intolerant of this.”

Andrew Tyrie (Conservative): Do you suggest that the public sector has been taken in by snake oil salesmen?

Straw: I am saying that we are all taken in. There are plenty of disastrous IT examples in the private sector, BP and Sainsbury being two of them.

Tyrie: I was looking at the public sector.

Straw:

“I was looking at both. I think we all face problems whereby unless we are total IT experts there is a danger of being taken in by snake oil salesmen… It is a real problem and it is one that is inherent in IT; it is not just a problem for the public sector.

“The difficulty is that in the case of the public sector it is taxpayers’ money, not shareholders’ or customers’ money, and the mistakes are much more visible, but plenty of companies in the private sector have similar problems.”

Comment:

Should the Cabinet Office Francis Maude say “no” to so many projects? Clearly he’s doing the right thing if Straw’s remarks are anything go by. Would a  private sector board that has to watch every penny launch costly IT-related projects that weren’t really needed?

Francis Maude reforms by saying “no” – a “massive” number of times

By Tony Collins

Cabinet Office minister Francis Maude has intervened to reject departmental projects a “massive” number of times says Ian Watmore, Cabinet Office permanent secretary and former Government CIO.

Evidence Ian Watmore gave to the Public Administration Committee last week suggests that the Cabinet Office’s saying “no” repeatedly to departmental projects has changed behaviours within the civil service.

Watmore, the Cabinet Office’s permanent secretary, told Tory MP Charlie Elphicke, that Francis Maude and his officials now have the power to challenge departments’ civil servants who try and ignore Cabinet Office recommendations.

“In the past, those controls did not exist so they [officials in departments and agencies] could ignore us if they wanted to and carry on as before,” said Watmore. “Under the new regime, they cannot do that because in the end, if they ignore the recommendations that we come to, then they have to seek approval for the expenditure they were going to make on their projects and Francis Maude would, in his own words, happily say ‘no’ in such situations, and say ‘no’ again until people actually came to the table and changed what they were doing.”

Elphicke: Has he done so to date?

Watmore: Yes, an absolutely massive number of times.

Changing behaviour

Since departments have found it harder to get the Cabinet Office to endorse their projects, departmental officials are now “bringing their plans to us much earlier in the timeframe because they do not want us saying ‘no’ when it is well advanced”,  said Watmore.

“So we are getting into a dialogue with them early on about what the best way of doing something is. When we have agreed on the best way of doing something, when it comes back for approval, it gets nodded through and that is working much more effectively.”

Watmore added that the Cabinet Office’s controls will become redundant over time “because people will behave the right way”. He said: “Like the Carlsberg complaints department was the analogy I had in my head; it exists but it is never used.. At the moment we use it a lot because, left to their own devices, people would do things that were suboptimal when you look at it from across Government.

“Francis Maude is in a position to say, ‘No, you are not doing that. You are going to do it this way and reuse somebody else’s system or somebody else’s way of doing things’. He is very hands-on and vigorous at doing that.

Comment:

Watmore’s evidence confirms that Maude remains the mainspring of change in the way government works. Without Maude the unreasonably costly status quo would prevail.  He may be in danger of spinning. But how many ministers like to say “no”? He is invaluable for that reason alone.

What will happen when Maude is promoted, stands aside or retires?  The minister who likes to say “yes”  will earn the respect of some of his civil servants. The refreshing thing about Maude is that he is happy to take his plaudits from taxpayers, not officialdom.

Watmore’s evidence to the Public Administration Committee, 13 March 2012.

Institute for Government open letter on civil service reforms – the problems and opportunities.

Osborne’s Budget signals possible end of Carbon Reduction Commitment energy scheme

By David Bicknell

George Osborne’s Budget earlier today has raised significant question marks over the future of the Carbon Reduction Commitment (CRC) energy efficiency scheme.

Osborne said this, “Environmentally sustainable has to be fiscally sustainable too. The Carbon Reduction Commitment was established by the previous Government. It is cumbersome, bureaucratic and imposes unnecessary cost on business. So we will seek major savings in the administrative cost of the Commitment for business. If those cannot be found, I will bring forward proposals this autumn to replace the revenues with an alternative environmental tax.”

It will be interesting to know how those ‘major savings’ in the administrative cost might be achieved. That sounds like a softening up for the end of CRC to me.

Related Links

The Guardian: Green ‘stealth tax’ attacked by business groups

Is Francis Maude starting to spin – without realising it?

By Tony Collins

Francis Maude is, perhaps, the most effective Cabinet Office minister in decades.

If the business world divides into two main types of character, black and white, and grey – neither being better or worse than the other –  Maude is black and white.

He wants clarity. He shuns subtlety and complexity. He has no time for civil service sophistry and equivocation, or the coded language of some supplier representatives. He wants cuts in the cost of contracts and doesn’t want to hear long arguments on why things are not that simple. He had deep reservations over doing a new deal with CSC over the NPfIT.

A strength of Maude and his colleagues at the Cabinet Office has been the absence, or at least scarcity, of exaggerated and unsubstantiated statements of efficiency savings, of the sort made repeatedly during Labour’s tenure.

Is that beginning to change?

In the past fortnight Maude has made two major claims that are not based on published evidence.

• Maude said spending on SMEs has risen from 6.5% to 13.7%.  It’s not clear how that figure is calculated. There’s a good analysis of the tenuousness of the claim by Peter Smith of Spend Matters. How much of the increase in SME work is down to unaudited claims by large companies that they are giving their SMEs more work?

• He said that £200m has been cut from Capgemini’s Aspire contract with HMRC. [Aspire also involves Fujitsu and Accenture.] He has received much good publicity for the claim. Said the Telegraph yesterday:

“He [Maude]  announced that ministers had successfully renegotiated one deal on computers and tax systems for HM Revenue and Customs.

He said the new contract, with Capgemini, would save £200 million on the deal previously agreed.”

Last year Mark Hall, deputy CIO at HMRC was reported as saying that the Aspire contract was on course to save more than £1bn. Is the £200m quoted by Maude in many news articles this week new?

And none of the articles mention the total cost of the Aspire contract – so from what is £200m being cut?

At one point, according to Mark Hall, the estimated cost of Aspire rose to £10bn from its original estimate of £2.83bn over 10 years. This means that cost increases on the Aspire contract are measured in billions – which puts the £200m savings figure mentioned by Maude into context.

And have Maude and his team offered Capgemini anything in return for a price cut, such as an improved profit margin? [The contract is on an open-book accounting basis]. This week’s Cabinet Office statement on the £200m cut gives no help here. An HMRC FOI response in 2010 and an NAO report in 2006 show that costs of Aspire are fluid. They change according to internal demand; and pricing arrangements are complex. HMRC has refused FOI requests to publish the contract so how can anyone put the claimed £200m savings into a contractual content?

In 2007 negotiations between HMRC and Capgemini extended the 10-year contract by three years, to June 2017; and there’s an option to extend Aspire  for a further five years to 2022. In return for the contract extension Capgemini has already guaranteed savings of £70m a year and a further £110m a year from 2012. Are these savings in addition to the £200m a year Maude has announced? Or the £1bn savings mentioned by Mark Hall?

The good news is that HMRC’s CIO is Phil Pavitt who is a natural sceptic of big outsourcing deals. If anyone is going to achieve genuine savings on Aspire it is Pavitt. Indeed he has given some details of his negotiations. But the contractual context remains abstruse.

Comment

Doubtless Maude believes the figures he has announced on SMEs and Aspire are correct but without substantiation they will mean little to anyone except the media. Maude, perhaps, needs to trust his own cautious instincts than listen too much to his advisers. Otherwise he’ll begin to sound more like Labour ministers who repeatedly made claims the NAO found difficult to substantiate.

The important and impressive work Maude is doing to cut the costs of running government should not be trivialised and debased by spin. Announcements on what he is doing to cut costs and make government more open are usually helpful. But Maude should the first to differentiate the real – in other words the factually corroborated – from aggrandising and flimsy political claims.