Category Archives: Infrastructure and Projects Authority

MPs suggest Cabinet Office is losing its grip on departments – but does it care?

By Tony Collins

The Register has an excellent piece by Kat Hall on how the Cabinet Office is losing its grip on Government departments.

Citing the annual report of the all-party Public Accounts Committee, Hall says there are issues where “departments repeatedly don’t do what they have been told or asked to do by the centre”.

An analysis by The Register found that

“government departments are winning significantly more exemptions to splash the cash on expensive IT projects since the departure of former Cabinet Office minister Francis “Mad Frankie” Maude last year”.

Chair of the Public Accounts Committee Meg Hillier said: “After my second year as Chair I am increasingly concerned about the long-term accountability of senior civil servants.

“The game of musical chairs starts as one Permanent Secretary moves on and they all change jobs in the system. And few are in post long enough to have a vested interest in the long-term aims of their department or a project.

“And there is the age-old tension between a department and central Whitehall through the Cabinet Office.”

Universal Credit and HMRC’s plans to overhaul its Aspire IT contract – the biggest in Europe – were outlined as being two areas of concern. As was the Home Office’s Emergency Services Network.

“The Home Office seemed to downplay the risks to the contract and its being caught unawares by the contractor does not reassure us that the Department is on top of the contract or this project. This could cost the taxpayer dear,” it said.

Comment:

It’s hard to argue with a comment on Hall’s piece by @JagPatel3 who suggests that some in Whitehall are as preoccupied with spin as with the efficient delivery of public services.

“… Government is preoccupied with presentation, manipulation of words and the dark art of spinning – instead of working on its programme of reform to deliver public services efficiently, to satisfy the wants, needs and expectations of the electorate.

“The political imperative of needing to put a positive slant on everything the Government does or will do, irrespective of whether it is true or not, is the reason why spin has become the centrepiece of this Government’s communications strategy.

“And because Government has got a monopoly on inside information (enabling it to maintain extremely tight control), it uses spin to divert attention away from the key issues that really matter to citizens …

“the eagerness with which senior Civil Servants have complied with their political masters’ desire to see policy announcements framed around presentation and spin, at the expense of substance, would explain why their skills set has been narrowed down to this single, dark art.”

The commentator also says that the “intense focus of attention on presentation alone has resulted in a massive gap opening up between the leadership and lower ranks of the Civil Service, who have to deal with the reality of delivering public services on the ground, on a day-to-day basis, which has in itself, led to alienation and disaffection”.

A good summary. Many ordinary civil servants are doing the hard work of delivering public services while a few of their masters are preoccupied with keeping what they do secret and justifying or defending all else that is published in National Audit Office reports, other third-party reports or leaked emails.

It’s hardly surprising the Cabinet Office is losing control of departments. Since Maude’s departure it doesn’t want control. It has become clear that it wants, in a hassle-free way,  to continue with Sir Humphrey’s non-integrated approach to government.

The Cabinet Office is just another Whitehall department. Why would it want to be an “enforcer?”

Some officials “smuggle their often half-baked proposals past ministers” says Cabinet Office adviser who quits

By Tony Collins

Jerry Fishenden has resigned from the Cabinet Office‘s Privacy and Consumer Advisory Group after nearly six years. First he was its chairman and more recently co-chairman.

The Privacy and Consumer Advisory Group comprises privacy and security experts who give the government independent analysis and guidance on personal data and privacy initiatives by departments, agencies and other public sector bodies. This includes GOV.UK Verify.

The group’s advice has had the citizens’ interests in mind. But the group might have been seen by some Whitehall officials as having an open and frank “outsiders” culture.

Francis Maude, then Cabinet Office minister, helped to set up the group but he left in 2015 and none of his replacements has had a comparable willingness to challenge the civil service culture.

Maude welcomed the help of outsiders in trying to change the civil service.  He tried to bring down the costs of Government IT and sought to stop unnecessary or failing projects and programmes. He also wanted to end the “oligopoly” of a handful of large IT suppliers. But Maude’s initiatives have had little continuing support among some Whitehall officials.

Fishenden said in a blog post this week that Maude had wanted the Privacy and Consumer Advisory Group to be a “critical friend” – a canary that could detect and help fix policy and technology issues before they were too far down the policy / Bill process.

“The idea was to try to avoid a repeat of previous fiascos, such as the Identity Card Act, where Whitehall generalists found themselves notably out of their depth on complex technical issues and left Ministers to pick up the pieces.”

He added that “since Francis Maude’s departure, there has been only one meeting” with subsequent Cabinet Office ministers.

“Without such backing, those officials who find the group’s expert reviews and analyses “challenging” have found it easier to ignore, attempting instead to smuggle their often half-baked proposals past Ministers without the benefit of the group’s independent assistance…

“Let’s just hope that after the election the value of the group will be rediscovered and government will breathe life back into the canary. Doing so would help realise Francis Maude’s original purpose – and bring significant benefits to us all, whether inside or outside of government.”

Comment

One of the Privacy and Consumer Group’s strengths has been its independent view of Government IT-related initiatives  – which is probably the main reason it has been marginalised.

Fishenden’s departure is further confirmation that since Maude’s departure, the Cabinet Office – apart from the Government Digital Service – has settled back into the decades-old Whitehall culture of tinkering with the system while opposing radical change.

While Whitehall’s culture remains unreformable, central government will continue to lose the best IT people from the private sector. Some of these include the former Government Digital Service executive director Mike Bracken, Stephen Foreshew-Cain, who took over from Bracken, Janet Hughes, programme director of Verify,  Andy Beale, GDS’s chief technology officer, Paul Maltby, GDS’s director of data and former Whitehall chief information officers Joe Harley, Steve Lamey, Andy Nelson and Mark Dearnley.

The unfortunate thing is that a few powerful career civil servants, including some permanent secretaries, will be delighted to lose such outsiders.

Jerry Fishenden is simply the latest casualty of a civil service tradition that puts the needs of the department before those of the citizen.

It’s a culture that hasn’t changed for decades.

The canary that ceased to be – Jerry Fishenden’s blog on his departure

Privacy and Consumer Advisory Group

Does Universal Credit make a mockery of Whitehall business cases?

By Tony Collins

Does Universal Credit make a mockery of this Treasury guidance on business cases?

It’s supposed to be mandatory for Whitehall departments to produce business cases. They show that big projects are “unequivocally” affordable and will work as planned.

But Computer Weekly said yesterday that the Department for Work and Pensions has not yet submitted a full business case for Universal Credit although the programme has been running for six years.

The result is that the Universal Credit IT programme may be the first big government computer project to have reached the original completion date before a full business case has been finalised.

Its absence suggests that the Department for Work and Pensions has not yet been able to produce a convincing case to the Treasury that the IT programme will either work or be affordable when it is due to roll out to millions of claimants.

The absence also raises a question of why the Department for Work and Pensions was able to award contracts and proceed with implementation without having to be accountable to Parliament for milestones, objectives, projected costs and benefits – all things that would have been recorded in the full business case.

If the DWP can proceed for years with project implementation without a full business case, does this mean that other Whitehall department need have no final structured plan to justify spending of billions on projects?

Will Universal Credit work?

By early March 2017, fewer than 500,000 people were on Universal Credit. On completion, the system will be expected to cope with seven million claimants.

Although the rollout of the so-called “digital” system – which can handle all types of claim online – is going well (subject to long delays in payments in some areas and extreme hardship for some), there are uncertainties about whether it will cope with millions of claimants.

Universal Credit campaigner John Slater has been unable to obtain any confirmation from the DWP on whether it is planning to complete the rollout by 2022 – five years later than originally scheduled.

Business cases present arguments that justify the spending of public money. They also provide a “clear audit trail for purposes of public accountability,” says Cabinet Office guidance on business cases.

But hundreds of millions has already been spent on Universal Credit IT, according to the National Audit Office.

Business cases are mandatory … sort of

The Treasury says that production of business cases is a

“mandatory part of planning a public sector spending proposal …”

Yesterday, however, Computer Weekly reported that,

“Amazingly, given the programme has been going since 2011, the full business case for Universal Credit has still not been submitted or signed off by the Treasury – that’s due to take place in September this year.”

The Treasury says that preparation of the Full Business Case is “completed following procurement of the scheme – but prior to contract signature – in most public sector organisations.”

But by March 2013, the Department for Work and Pensions had already spent about £303m on Universal Credit IT, mostly with Accenture (£125m), IBM (£75m), HP (49m) and BT (£16m), according to the National Audit Office.

Why a business case is important

The Treasury sums up the importance of business cases in its guidance to departments,

“… it is vital that capital spending decisions are taken on the basis of highly competent professionally developed spending proposals.

The business case provides a

“structured process for appraising, developing and planning to deliver best public value.”

The full business case, in particular, sets out the

  • contractual arrangements
  • funding and affordability
  • detailed management arrangements
  • plans for successful delivery and post evaluation.

In the absence of a full business case the DWP was able to start the Universal Credit IT programme with little structured control on costs. The National Audit Office found in 2013 that there was

  • Poorly managed and documented financial governance
  • Limited evidence that supplier invoices were properly checked before payments were made.
  • Inadequate challenge of purchase decisions
  • Insufficient information on value for money of contracts before ministers approved them
  • Insufficient challenge of suppliers’ cost changes
  • Over-reliance on performance information from suppliers that the Department for Work and Pensions didn’t validate.
  • No enforcement by the DWP of key parts of the supplier contracts

Comment

Officials at the Department for Work and Pensions have gone to the bank for money for a new business venture – the building of Universal Credit IT – and said in effect,

“We’ll let you have an outline business case that may change a few times and in a few years, perhaps on completion of the programme or thereabouts, we’ll provide a full business case. But we’d like the money now please.”

In response the bank – HM Treasury – has replied in effect,

“You’re supposed to supply a full business plan before we decide on whether to give you the money but we know how important Universal Credit is.

“We’ll tell you what: we’ll let you have a few tens of millions here and there and see how you get on.

“For the time being, without a full business case, you’re restricted to an IT spend of around £300m.

“In terms of the eligibility criteria for the money, you can let us know what this should be when you’re a few years down the road.

“We accept that you’ll be in a much better position to know why you should be given the money once you’ve spent it.”

Does “mandatory” mean anything when there is no sanction against non-compliance?

And when the DWP is able to embark on a multi-billion pound programme without submitting a full business case until after the original completion date (2017), what’s the point of a business case?

The fact that the DWP is six years into implementation of Universal Credit without a full business case suggests that departments make up the rules as they go along.

What if the Treasury rejects the Universal Credit business case when it’s eventually submitted?

Will the DWP wait another few years to submit a case, when an entirely new set of officials will be in place? By then, perhaps, the Universal Credit rollout will have finished (or been aborted) and nobody at that stage could be effectively held to account if the scheme didn’t work or money had been wasted.

If Whitehall routinely waits until an IT-based programme is finished before presenting a full business case for Treasury approval, there’s nothing the Treasury can do if it wants and needs the programme.

Sir Humphrey is all-powerful.  Why should officials worry about presenting full business cases on programmes they know there’s a political imperative to deliver?

Can DWP meet its revised 2022 target for completion of Universal Credit? – Computer Weekly

Treasury guidance on business cases

 

 

Large suppliers still dominate government IT

By Tony Collins

In 2012, the then Cabinet Office minister Francis Maude, lamented the high costs of government IT and spoke of an “oligopoly” of large suppliers. He suggested things would change.

“… contracts were consistently awarded to a limited number of very large suppliers on long-term exclusive contracts.

“As a result there was inadequate competition and an abdication of control. The concept of having one supplier, aggregated supply, increased project risk and removed competitive tension.

“The Government repeatedly found itself paying large amounts for systems that were delivered late, over budget and which often did not fully meet the original policy requirement.  If indeed, they were delivered at all. There are plenty of well-documented disasters – such as DH’s now terminated National programme for IT.

“Ultimately, the last Government lost control of IT – it outsourced not only delivery, but its entire strategy and ability to shape the future of our public services.

“At the same time smaller, more innovative and efficient suppliers were finding themselves locked out of the supply of services to Government because of what was described by Parliament as a powerful “oligopoly” of large suppliers.

“Procurements took so long only the big companies could absorb the cost – which they naturally passed on to us.

“All in all, we had an approach that was bad for users, bad for the taxpayer and bad for growth.”

Public sector IT spending was up to £20bn a year, he said, adding that “public sector productivity was actually declining”.  He outlined how things were changing.

What has happened since?

A report published today by the National Audit “Digital Transformation in Government” raises a question of how much has changed.

Efforts to boost the SME share of government IT business “have had some impact”, says the National Audit Office, but it adds that “most government procurement with digital and technology suppliers continues to be with large organisations”.

“In 2015-16, 94% of such spending was with large enterprises, a fall of less than one percentage point since 2012-13.”

Today’s NAO report is mainly about the Cabinet Office’s Government Digital Service – GDS. It points out GDS’s strengths and weaknesses but in general does not give any advice on the sensitive point of whether it should have more or less influence on government IT.

On digital transformation, it says that the work of the NAO shows that attempts to transform government have had mixed success.

“Many public services appear increasingly unsustainable. Those responsible for major programmes have continued to exhibit over-optimism and make slow progress towards their objectives.”

It adds,

“Digital transformation has a mixed track record across government. It has not yet provided a level of change that will allow government to further reduce costs while still meeting people’s needs.

“GDS has also struggled to demonstrate the value of its own flagship initiatives such as Verify, or to set out clear priorities between departmental and cross-government objectives.

“GDS’s renewed approach aims to address many of these concerns as it expands and develops into a more established part of government. But there continues to be a risk that GDS is trying to cover too broad a remit with unclear accountabilities.

“To achieve value for money and support transformation across government, GDS needs to be clear about its role and strike a balance between robust assurance and a more consultative approach.”

Comment

The National Audit Office report is strong on facts and quality of research but avoids the big question of how GDS can bring about change when the top brass in departments prefer autonomy to what they see as GDS’s interference.

GDS’s existence goes to the heart of how the civil service runs. It is one part of the civil service trying to bring about change in other parts of the civil service.

And the evidence so far is that the civil service doesn’t like change.

The NAO report disappoints because it doesn’t address how government IT is to change if departments are to continue to run empires unchallenged by GDS or the heads of the civil service. Sir Humphrey is still king.

GDS scrutinises departmental IT spending – spending applications are reviewed by a team of eight people within GDS’s Standards Assurance team – but, much to Sir Humphrey’s delight, GDS’s influence seems to be waning.

When Jack Straw was Justice secretary, he told MPs 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.”

How much has changed? Outsiders including Jack Straw and Francis Maude, together with insiders such as Chris Chant have pointed to the need for major changes in the way departments manage huge IT budgets and there have been some improvements: HMRC’s is breaking up its monolithic “Aspire” contract, citizens may notice that it is possible now to renew passports and driving licences online and GDS has had an impact in making departments think hard about whether they really need to spend the amounts they do on major IT contracts.

But major change in the costs of government IT seems not just a long way off but unattainable while the dominance of Sir Humphrey remains unchallenged.

Digital Transformation in Government – NAO report