Government to invest £1bn in carbon capture and storage technology

By David Bicknell

The government is to commit more than £1bn of public funds to develop carbon capture and storage (CCS) technology with the prospect of generating an industry with 100,000 jobs.

It follows  the publication of plans yesterday to create a government-sponsored competition to design the first workable demonstration project.

CCS uses technology to capture carbon dioxide from power plants and store it permanently underground. Such a move, it is said, will help meet climate change targets.

The government has also published the first UK CCS Roadmap which it says sets out the steps that the Government is taking to develop a new world-leading CCS industry in the 2020s. The Roadmap includes:

  • The competition, the ‘CCS Commercialisation Programme’, to drive down costs by supporting practical experience in the design, construction and operation of commercial scale CCS with £1bn capital funding, and additional support, subject to affordability, through low carbon Contracts for Difference;
  • £125m funding for Research and Development, including a new £13m UK CCS Research Centre;
  • Planned long term Contracts for Difference through Electricity Market Reforms to drive investment in commercial scale CCS in the 2020s and beyond;
  • Commitments to working with industry to address other important areas including developing skills and the supply chain, storage and assisting the development of CCS infrastructure

Here is the Guardian’s view on the story

UK CCS Commercialisation Programmme

Time for truth on Universal Credit IT

By Tony Collins

A normally-reliable contact says that the IT project for Universal Credit is in trouble.

A deadline this month to lock-down features in the scheme will not be met, says the contact. This failure will jeopardise the go-live date of October next year for the start of Universal Credit.

The contact also says that the Government will make an announcement on the scheme in September which may refer to a write-off of at least £150m on the IT project. The suggestion is that although the scheme is in trouble officials may be reluctant to impart the whole truth to ministers.

We wonder about the difficulties of agreeing system features when there are so many parties involved in the IT project: HMRC, DWP, local authorities, banks and private sector employers. The contact also says Oracle is having trouble handling functionality.

Officially all is well. The Secretary of State for Work and Pensions, Iain Duncan-Smith, spoke with confidence about the future of the scheme in the House of Commons last week.

That said, he told Parliament on 5 March about the “issues and problems” related to HMRC’s Real-Time Information project which is an essential part of the Universal Credit IT project. He said: 

HMRC, which is now responsible for this measure, meets me and others in the Department regularly. We have embedded some DWP employees in the HMRC programme; they are locked together. They are, as I understand it, on time, and they are having constant discussions with large and small employers about the issues and the problems, and assessing what needs to be done to make this happen and to make all the changes.

“We must remember that all those firms collect those data anyway; the only question is how they report it back within the monthly cycle. We are on top of that but, obviously, we want to keep our eye on the matter.”

Problems with the IT for Universal Credit – the Government’s leading “agile” software project – may bring a smirk to the faces of those who believe that departments cannot manage agile-based schemes. But agile proponents have long said that Universal Credit is only partially agile – and they have argued that agile should not be mixed with traditional software-writing approaches.

Suppliers on Universal Credit, which include HP, Accenture, IBM,Capgemini and Oracle, are not particularly well known for their love of agile on Government IT projects.

Time for the truth  

The Department for Work and Pensions is refusing to publish any of its reports and assessments on the IT for Universal Credit. The secret reports include:

–   A Project Assessment Review in November 2011

– Universal Credit Delivery Model Assessment Two (McKinsey and Partners)

– Universal Credit end-to-end Technical Review (IBM).

Comment

Officials and ministers speak publicly about the solid progress on Universal Credit IT while refusing to publish their internal reports on progress or otherwise of the scheme.

Past NAO reports have shown that ministers and sometimes senior officials are sometimes kept in the dark when major IT-related projects go wrong. Project steering groups are told what they want to hear. The Programme Board on the NPfIT discussed successes with enthusiasm and hardly mentioned serious problems, judging by minutes of its meetings.

We hope that all is well with Universal Credit IT. The project is, after all,  an advert for innovation in the public sector. If it’s in trouble the truth should come out. Keeping it quiet until September means that suppliers will continue to be paid for several months unnecessarily – perhaps to keep them supportive?

Labour was overly defensive and secretive about its many IT-related failures whereas “openness” is the coalition’s much-favoured word. It’s a pity it has yet to be applied to the Universal Credit IT project.

Secret DWP reports.

Who’ll be responsible if Universal Credit goes wrong?

Banks “unlikely to deliver” Universal Credit

Universal Credit IT plans too optimistic warn MPs.

Universal Credit latest

HMRC picks an SME – and saves itself £50m

By David Bicknell

HM Revenue & Customs (HMRC) cut the cost of an Internet Explorer upgrade by up to £50m by awarding a contract to an SME, instead of a major systems integrator.

According to an article by Bill Goodwin on Computer Weekly, HMRC chose a small US company to upgrade from Internet Explorer 6 to IE9, after it found that large IT suppliers were unable to offer a cost-effective solution.

The Redmond-based company, Browsium, managed to complete the work for £1.28m, against quotes of £35m to £50m from much bigger companies.

Goodwin reports that HMRC CIO Phil Pavitt believes the contract will act as a proof of concept for other government departments facing similar IE6 upgrade problems.

IT is from Venus, the Business is from Mars

By David Bicknell

Monday morning and another week for IT and the business to work together in the best interests of the organisation – though if you were to read this article from the Wall St Journal, you might think otherwise.

The  piece, “IT is from Venus, non-IT is from Mars”, by research scientist George Westerman from the MIT Centre for Digital Business, suggests  that in many companies, the relationship between IT and business leaders is a very troubled marriage. Miscommunication is rife, leaving executives struggling to figure out what’s working for the company, what’s not, and how to improve the situation.

The article argues that ‘the marriage’ can be saved, provided IT and business executives have a clearer understanding of the needs of both sides, how they work and the challenges they face. That means business leaders and IT executives must talk with each other about their operations and about how IT can help the company fulfill its goals, instead of talking past each other about how one side or the other is preventing that from happening.

The article cites four separate studies by researchers at MIT that show that transparency—clear communication about IT performance and decision processes—is the best predictor of the business value of IT. These studies all show that transparency creates an environment that improves both IT performance and the IT/Business relationship.

The article discusses four areas where IT and non-IT executives fail to understand each other clearly, and how transparency can help bridge the gap between two completely different interpretations.

On IT Cost and Performance:

The Business says: “IT costs too much; we’re not getting the service we’re paying for.”

IT says: “Given our budget constraints, we’re doing really well.”

On Risk Management:

Business says: “I want it this way.”

IT says: “We can’t do it that way.”

On Prioritisation:

Business says: “I need this right away.”

IT says: “Sure, but three other executives just told me the same thing.”

On Accountability:

Business says: “Why do you make me go through all of this bureaucracy?”

IT says: “Our methodologies are how we make sure everyone does the right thing.”

The article concludes that “creating transparency takes extra time and effort on everyone’s part, especially IT’s. But this is one project that definitely pays. Transparency around performance and decision processes improves the business value of IT and builds trust between business and IT people. As everyone learns to work better together, IT becomes part of the company’s business-level decisions and initiatives, not its own world. When that happens, the marriage of IT and the business side is really working.”

CSC drops the iSoft brand name

By Tony Collins

CSC has announced that from today, 2 April,  it is dropping the iSoft brand name. It says that iSoft is now part of CSC’s Healthcare Group and will “adopt CSC branding and the CSC name in all communications”.

CSC acquired iSoft in July 2011.

Comment:

It’s the right thing to do. The iSoft name is associated with the failed National Programme for IT in the NHS, the NPfIT version of Lorenzo, court cases, a disciplinary hearing for iSoft’s former auditors and with legacy software.

Now that CSC is under new management the new broom can sweep clean.

It would be unfair to compare, of course, to compare the dropping of the iSoft name with the disappearance of “Ratner” or the renaming of Exxon Valdez to SeaRiver Mediterranean.

Is Choose and Book failing?

By Tony Collins

Choose and Book, which is one of the limited successes of the NHS National Programme for IT, may be “withering on the vine” says Pulse.

It reports that the Department of Health is investigating a fall in the proportion of GP referrals made through Choose and Book. Several PCTs have described Choose and Book as “failing”.

Pulse says that the Government’s notional target is for 90% of GP referrals to be made through Choose and Book, but the latest figures indicate usage has fallen from a high two years ago of 57%, to around 50% in January 2012

Initiated in 2004, Choose and Book is now in use in every PCT and provider organisation across the NHS in England, including many independent sector organisations that deliver services to the NHS under a standard, national contract.

Choose and Book provides patients with the offer of choice of hospital and clinic and a booked appointment.

The Department of Health told Pulse that there have been falls in use in some areas but it was committed to ‘embed Choose and Book into daily clinical practice’.

Choose and Book was classified as ‘failing and worsening’ in February board papers from Bristol, North Somerset and South Gloucestershire PCTs, says Pulse.

DH press release in 2003

A Department of Health press release on the award of a contract for an electronic booking system to Atos said in October 2003 said

“By the end of 2005, every hospital appointment will be booked for the convenience of the patient, making it easier for patients and their GPs to choose the hospital and consultant that best meets their needs.”

Pulse suggests the drop in interest may be because GP practices are no longer paid to use Choose and Book.

Through “local enhanced service” payments to GPs, primary care trusts have given family doctors a strong reason to use Choose and Book. The payments to GPs have ranged from about 50p to about £4 for every patient booked through Choose and Book. That funding is drying up.

A locum GP who commented on Pulse’s website suggests that Choose and Book will fall into disuse without financial incentives: “I couldn’t fit it [a Choose and Book appointment] into a ten minute consult what with QOF [quality and outcomes framework, part of the GP contract] the patient’s list etc – had to do referrals at the end of the day, so never used it.”

Comment

The failure of Choose and Book to reach anything like the original target of 100% use throughout the NHS shows the fallacy of paying people, in this case GPs, to use national IT systems.

New IT should be so needed that its use doesn’t depend on special payments to the end-users. Choose and Book was trumpeted by some major suppliers as a simple and obvious solution – rather like an airline reservation system; and after years of bedding down the technology works. But GPs cannot be forced to use it.

The Department of Health had considered the NPfIT  to be the centre of universe, and that doctors would want to use it for the common good.

The fact is that GPs  care only about their patients – which is as it should be – and if they consider the system detracts from the time spent with their patients the common good becomes an abstract, indeed meaningless, concept.

Choose and Book was always a good idea, a fun thing to work on. But does a 50% take-up after nine years justify the hundreds of millions spent on it? The Department of Health is hopeful the scheme will eventually succeed. But then the DH has always been confident the NPfIT would succeed.

DH to investigate fall in the use of Choose and Book – Pulse.

Standish Group: the role of the executive sponsor in IT projects

By David Bicknell

The US-based Standish Group has published a series of excellent pieces on its blog over the last few days over the role of the executive sponsor in IT projects.

The blog features an interview with Eugene Bounds, senior vice-president at Booz Allen Hamilton.

Bounds says, “I was first reached by the then current executive sponsor of a project called “RightIT.”  RightIT helps organisations optimise their IT investments.  The project combined the capabilities of IT, PM and cost.  He had the expertise in IT and he wanted my expertise in programme management and finance.  I eventually became the executive sponsor for the RightITTM project. 

“The first thing I did was to establish frequent and standard meetings; so, every Friday we had a team meeting.  My commitment is to be available for guidance and status reviews.”

Bounds adds, “As executive sponsor of the RightIT project, I thought it was critical to understand who on the leadership team would be affected or could gain benefit from the RightIT project.  I then reached out to these colleagues to establish an advisory group. 

“As part of the advisory group, I established monthly meetings.  This gave me an opportunity to get direct stakeholder feedback and support.  If we were producing an artifact, I wanted their thoughts on it to make it better.  I wanted to make it packaged and ready to go.  Of all the things I did as an executive sponsor, this was the most important.”

“The problem is that project managers have their own view and language.  The project manager looks at the project tactically.  He or she looks more in the weeds of the project or the details to try to get it done.  The executive sponsor tends to look at it as a strategic event.  He or she will look at the project on how it aligns with the goals of the organisation. 

“In the project management profession we have our own language and plenty of acronyms.  So there is a gap and it really is up to the project manager to fill the gap.  We cannot expect the executive sponsor to understand the PMBOK (project management body of knowledge) and all of its artifacts and processes.  It is up to the project manager to make that translation.  Executive sponsors on the other hand have the responsibility to ensure that the project manager makes that translation.”

The Standish Group points out that the executive sponsor is “the owner of the project. As the owner of the project, the full weight and responsibilities of the success or failure of the project falls squarely on his or her shoulders. The executive sponsor, for better or worse, owns the outcome. The executive sponsor has no right to abdicate his or her executive responsibility. He or she cannot blame the project manager, the IT executives, users, stakeholders, reluctant peers, vendors, or software developers.

“The sole responsibility for a successful outcome rests on the shoulders of the executive sponsor.  The sponsor may not be an executive of the organisation, but he or she is the chief executive of the project. The word ‘executive’ symbolises a higher level of responsibility. It is more powerful than just ‘sponsor.'”

How do you create successful software development teams? (Part 1)

By David Bicknell

Campaign4Change recently took part in a software development roundtable organised by the Dutch software specialist Software Improvement Group (SIG) to find what makes successful teams in software development.

The roundtable featured two specialists in creating specialist teams: Andrew de la Haye, chief operating officer, at RIPE Network Co-ordination Centre (RIPE NCC), one of five Regional Internet Registries (RIRs) providing Internet resource allocations, registration services and coordination activities that support the operation of the Internet globally; and author and management expert Kevan Hall, chief executive of Global Integration.

The event discussed the process in the creation of excellent teams in software development, the qualities shared by successful teams, the role that management plays in their creation, while highighting some of the factors that help create productive teams, and the issues faced by the people managing them. 

Teamwork

Arguably, great development teams typically demonstrate a lot of very tight teamwork, with small groups that all know and understand each other working intensively together.

According to Andrew de la Haye, what makes effective teams  is a mix of  strategy, team dynamics, communication, and multifunctional commitment.

“Clarity on the company’s strategy is extremely important in creating an effective team. Very high level strrategies are very difficult to comprehend in regards to the work. Communication is very important: it is the alignment between what we say and what we do. We have to reinforce and embody the goals we have,” says de la Haye.

“Where I used to work, people might say ‘We were going to the factory today. And that meant the developers sitting in a big room. But the word factory is a bit misleading. These guys are not blue-collar workers. They are highly educated and they are much more intelligent than I am. They are intelligent individuals with lots of ideas, which I want to nourish.

Agile Empowerment

“With communication in mind, what we are also doing is lots of measurement and making it very visible,” says de la Haye. “For example in our room, I have a chart showing the quality of our software  to the team, showing how they’re doing. That contributes to the notion of quality and effectiveness in the team.

“Then there are the dynamics of the group. We use Agile development, which means that we deliver every second week to the business side. The business side may say, ‘We don’t like the feature. We don’t like the colour.’ I don’t care what they say as long as what we produce fits their needs. And because the iterations are very short, it’s very easy to change it.

“Another key factor is empowerment of the team with Scrum. We have a huge board with sticky notes and colours. It might say that a particular feature is required, at a very high level. And then they decide who’s doing what. I’m not even part of that discussion. These guys are very bright and know what they’re good at. I do have some control mechanisms in place. We measure quality and I measure the amount of what they deliver. I don’t ask my developers, ‘Can you tell me how many hours you were working?’ because they are not very good at predicting the amount of hours. But what they are very good at is predicting the complexity based on complexity points. And the complexity points tell me how much time something will take.

“I had this phrase, ‘Quality is cheap,’ and I had some arguments with people over its meaning. What is says that ‘If you do really really good work, the rework that you have to do, which is really more than doing it properly in the first instance, you will be able to reduce that rework.’ And that has to be reinforced. If we hire people, we hire people who like quality and are quality driven and that’s very important as well.

Commitment to quality

“We have multidisciplinary teams. And we have expertise areas, but we don’t have experts. An expert is someone you put on a pedestal and nurture. Someone with an expertise area is willing to broaden that knowledge but also is able to pick up other knowledge. In the Scrum team, we have developers and senior developers. That’s it – no architects, senior architects, enterprise architects. And a healthy turnover is very important as well. For us, it’s about 10-15%. You need new blood in your team once in a while. We are not consultants, so we are not doing cutting edge stuff. But we’re not lagging behind either. So you need to replenish your team with the knowledge that’s available, and that’s very important to the team.

“The final area is the commitment. If you have all these areas well in place, you have a team that is very committed. Committed to quality; committed to our overall goals as a company. They all understand why our company is there. And it’s not to make money. They are empowered and result-oriented. And one of the things that gets me lots of credit is that I give them lots of learning opportunities. We have a budget for our developers  and what we used to do was send them away to the US, to California to a conference, that kind of stuff. And the value that came back was not that much. They may have had a great time, but that’s not the commitment I’m looking for.

“So now I say, ‘Take two weeks in the office. Come in whenever you like. Leave whenever you like and do something you think is interesting for yourself. And after those two weeks, show the team what you have been doing. Hopefully it’s innovative and hopefully people learn from it. It’s not something we need to apply. We might; we might not. But it should be a learning experience for you.’

“At RIPE NCC, we’re not top heavy on mobile applications. And it’s not an area that we need to go into. But we had this guy whose ambition is to work for a mobile operator in a couple of years’ time. And so he created a mobile app for us. I’m not scared of losing him because I expect that turnover anyway. The guy is very committed to his job because I take him very seriously. I help him get to the next level. So he might stay for the next six months and if I really need him he will come back. It’s all about collaboration with my teams.

“My strategy director said ‘I keep going to these strategy conferences and I’ll see the same people the same time over and over again. And they tell me stuff that I already know about because of publications etc, and there’s not much value.’ So then he went to a conference for surgeons which he admitted was way beyond his league. And he said it was so interesting to see this different world, that he actually took away more from a conference with surgeons than those strategy meetings he went to for years and years. And that gave me the idea of just letting these people do what they want to do. It’s not a done deal that they have to spend their two weeks in-house. But most of them do. It’s not that we don’t send them to conferences. I might send them anyway.

“There is a correlation between value delivered and the commitment to what they do and feeling part of what they deliver in Agile development. They have these regular check-ups with the busines and it’s very nice if you build something for two weeks and ou present it to a business person and they are sitting there with a big smile on their face, because he has exactly what he wanted and he never had that before. There is a correlation between happiness, commitment and Agile development.”

SIG pointed that three of its clients which all delivered four or five star software quality had followed a Scrum-like approach or had adopted Agile principles. Scrum teams tend to be more cohesive because they are empowered: they have to do it themselves. They decide amongst themselves what to do to deliver the right product.

Remote working or co-location

In contrast to other IT working environments, there is little or no remote working in RIPE NCC’s software development, says Haye.

“We have everyone here in one environment, which helps create some trust, and understand who in the team does what. Then once they understood each other, then perhaps there’s some leeway for remote working.But first they had to establish the trust.”

“I think it depends what type of work you do,” says Kevan Hall. “I’m a big corporate person.  The only area where I see the big global multinationals moving back to co-location is in very intensive R&D groups, such as the auto industry, because they seem to be unable to manage distributed R&D. One of the big challenges in distributed research teams is serendipity. It’s the bouncing off and the ideas and those kinds of things.  You can do that when you get people together and you can to a certain extent do it through a conference call, and videoconferencing and WebEx and things like that.

“But even in an open-plan office, if you look at how far apart people’s desks are, that affects how often they just spontaneously talk. Anything up to ten metres, you talk. Anything beyond ten metres, forget it.”

Too much teamwork

“It may be shocking, but I actually spend quite a bit of my time trying to discourage teamwork, because one of the things in the kind of organisation that is distributed or  global is that teamwork is really expensive.  It requires people to be accessible in the same time, if not the same place. and for global teams, there isn’t a right time to do that. It’s also very expensive.

“So when the cost of something goes up, the demand for it should come down. But because we’ve got this almost unthinking attachment to teams for everything, it hasn’t. And when we ask people how they’re spending their time, they tell us they’re spending two days a week in meetings, and they get 60 emails a day, 85% of which is irrelevant. We’re just sharing too much stuff.

“I used to be in manufacturing and if somebody told me we were producing 50% scrap, we’d have had a really sharp discussion about the future of that factory.  But we routinely accept 50% waste in collaboration. We have to be much more selective about when we use teams.”

How the Government plans to ensure IT projects have a lifetime cost of under £100m

By David Bicknell

The Government has issued a Procurement Policy Note that sets out its thinking behind the policy that individual ICT contracts or projects should have a lifetime cost of less than £100m.

It says the £100m limit will apply to all future ICT projects, “unless a strong case can be made that doing so increases the overall cost to the taxpayer, notably increases the risk of failure or increases the security threat to the public body or Government as a whole.”

It adds that in future, “government IT contracts will be more flexible, starting with two areas (application software and infrastructure IT). The Government is introducing set breakpoints in IT contracts so there is less money locked into large lengthy contracts. The Government will look to disaggregate future contracts and deliver more flexible, cheaper solutions. This opens up opportunities for SMEs and reduces the cost to taxpayers.”

Its guidance, which takes effect from 1st April, applies to all central government departments, their agencies and non departmental public bodies and is particularly intended for those with a purchasing role.

In background notes, the briefing says:

  • The £100m threshold relates to all ICT contracts or projects where the total value over the life of the contract exceeds £100m regardless of how the contract is funded. It includes frameworks as well as individual call offs from frameworks. A case may be made for exemption from this policy on the grounds of national security or continuity of a critical Government service.

Based on this, the policy aims are as follows:

  • To reduce the risk of single supplier failure within a large project;
  • To increase competition and innovation by enabling more suppliers to bid and take part in projects, thereby increasing value to the taxpayer;
  • To procure contracts in a way which ensures maximum possible benefit to the maximum number of parties – for example, ensuring that infrastructure/services which are procured can be used by more than one department.

In a foreword, Cabinet Office minister Francis Maude says:

“The Government believes that business is the driver of economic growth and innovation, and that we need to take urgent action to boost enterprise and build a new and more responsible economic model. We want to create a fairer and more balanced economy, where we are not so dependent on a narrow range of economic sectors, and where new businesses and economic opportunities are more evenly shared between regions and industries. This guidance is founded on a desire to minimise the risk around high value contracts and ensure that Government always seeks the best possible value for money when procuring large ICT contracts.

“In the Coalition Programme the Government made a commitment to promote small business procurement in particular by introducing an aspiration that 25% of government contracts should be awarded to small and medium sized businesses. To deliver this aspiration the Prime Minister and The Minister for the Cabinet Office announced, on the 11th February 2011, a far reaching package of measures to open up public procurement to small and medium sized enterprises. The Government ICT Strategy, published at the end of March 2011 outlined a new approach to ICT procurement that improves contract delivery timelines and reduces the risk of project failure, enables greater use of SMEs, a much shorter timescale and lower costs to all parties.

“We will end the practice of attempting to cover every requirement in great detail and cover every legal eventuality in every project and contract, thereby increasing the procurement cost and timescales to all parties to unacceptable levels. We will do this by focusing on the 80/20 rule, simplifying to the core components of the requirements at every level and at every stage of a project.

On SMEs, G-Cloud and Open Systems, the policy note says procurement will:

  • Ensure value for money, competition and innovation by ensuring that small and medium sized enterprises (SMEs) are freely able to bid. Ensuring that any procurement process we use does not unnecessarily exclude them due to price, risk or resource associated with bidding activity. This includes reviewing our criteria and evidence required as part of the contract award process for items that might be relevant to a large company only. However, SMEs will be treated no differently in evaluation of capability, financial stability, or their ability to provide ongoing support, etc.
  • Ensure visibility of innovation and encourage mass purchasing of solutions available from both within the public sector and the private sector by creating a quality assured Government Cloud based procurement vehicle for Government, which enables all sizes of organisations to showcase their products, services, solutions etc. This service would also enable government to market and sell any unwanted assets it might own.
  • Encourage and maximise the use of Open Source/Open Standards whenever possible and where it represents a value for money solution, allowing department to re-use code, designs, templates etc. ensuring that work is not duplicated.

Comment

The Government’s aspiration to have individual ICT contracts or projects with a lifetime cost of less than £100m is a worthy one. But the proof of the pudding, as always, is in the eating. And we haven’t seen the pudding yet.

Rights to Provide plans focus on “potential offered by mutual models” to improve services

By David Bicknell

The Government has detailed how it is developing and implementing Rights to Provide to “empower front line staff across the public sector to take over the services they deliver,” possibly through the creation of new mutuals.

The Government said it has identified local authorities’ services, fire services, probation and adult social care as some of the areas for developing new mutuals. This it says, will be backed by enhanced support available to staff through the Mutuals Information Service and the Mutuals Support Programme.

In announcing an updated discussion paper David Cameron said increasing parental choice in schools, extending personal budgets so people can choose how they spend money on services and increasing the transparency of public service performance and user satisfaction are all part of the next steps to improve public services by opening them up.  The paper updates the Open Public Service (OPS) White Paper published last summer.

Launching the new paper, Cameron said: “Nearly two years on from coming into office, brick by brick, edifice by edifice, we are slowly dismantling the big-state structures we inherited from the last government. We are putting people in control, giving them the choices and chances that they get in almost every other area of life. There is still a way to go and this kind of change will not happen overnight. But no one should doubt my determination to make our public services better, by opening them up.”

Specifically on mutuals, the paper says:

“Alongside the focus on digital delivery, and as a core part of work to reform the Civil Service, Government Commercial Teams are working with individual departments to identify where new commercial models would accelerate reform and improve services. In some cases, this may involve high-quality in-house delivery; in other cases outsourcing may offer best value.

“We are particularly interested in the potential offered by mutual models, including mutual joint ventures, that give employees much greater say in the way their organisation is run, for example the model being considered for MyCSP.

“To ensure that the benefits of mutualisation are available across the wider public sector, we are giving public sector staff new Rights to Provide – empowering employees to form public service mutuals to bid or request to take over the services they deliver. This will empower millions of public sector staff to become their own boss,freeing up untapped entrepreneurial and innovative drive.

“Public service mutuals are now well established in community healthcare, with thousands of public servants working in new mutuals with contracts worth almost £1 billion. We have extended these rights to new areas, including adult social care and NHS trusts, and we are looking to go further, in areas such as youth services, probation services, children’s centres, and fire and rescue services.

“We have been actively working with fledgling mutuals on the ground, for example through the Mystery Shopper service and the Mutuals Information Service; and we are supporting some of the most promising and innovative mutuals to reach the point of investment readiness, through the Mutuals Support Programme – a fund of more than £10 million to contract for support in the form of business and professional services to groups of staff who want to form mutuals or existing mutual organisations in the public sector. A steady stream of applications is developing into a pipeline of projects.”

The Government said all its departments will put in place a Right to Provide to empower employees in public services for which they are responsible to s pin out to create new public service mutuals. Public sector workers who want to formmutuals or co-operatives to deliver public services will be given a Right to Provide.

The Government will look to reflect these commitments in departmental business plans where appropriate.

Information from the Mutuals Information Service will inform departmental policy development, the new paper says.  

It points out that “the Department of Health’s Right to Request is near completion, with 40 services now operating as independent social enterprises and further projects to go live by April 2012. The Right to Provide has generated interest across NHS trusts, foundation trusts and adult social care.

“The Department of Health is already exploring opportunities to support social enterprises and mutuals spinning out from the NHS, social care and adult social work. The status of other government departments is as follows:

Department for Business, Innovation and Skills (BIS) Further Education – now starting

Home Office – not yet started

Ministry of Justice – now starting; commitments will be reflected in the Department’s business plan 

Department for Work and Pensions – not yet started

Department for Education Youth Services, and Social Work – now starting

Department for Education Children’s Centres – not yet started.

Other Links

Cabinet Office news release