Delivering the agility to bring the corporate network to life

By David Bicknell 

A recent blog  asked whether businesses need the IT department when it comes to purchasing cloud services for business units. After all, the piece suggested, the Internet is all about eliminating the middleman from the transaction. https://www.infosecisland.com/blogview/15280-Informal-Cloud-Buyers-A-Growing-IT-Problem.html

The same argument could apply to non–Cloud apps where SMEs are increasingly providing turn-on-a-sixpence like agility to deliver apps and end-to-end solutions to business units, by-passing internally-focused IT departments that look cautious, defensive and too eager to pull up their ‘it’s not strategic’ comfort blanket.

In fact, ‘informal buyers’ make five times as many software buying decisions as the IT people who are supposed to be in charge, according to Forrester. According to a Q4 2010 Forrester survey, 69 percent of 3,000 business managers reserved part of their operations budgets to buy tech services directly, rather than through IT.

Faced with IT’s frequent intransigence in embracing new innovative solutions provided by SMEs, and citing their need to move quickly and with agility, business units are insisting that they want end-to-end solutions that truly understand business problems and solve them, meeting immediate business needs today, not in six months’ time once IT has a done another strategic review.

Buyers want to take advantage of the rich innovation offered by specialist SMEs who probably understand the business’s needs – and what’s more, relate to it – far better than the internal IT department, which too often understands technology, but not often enough, its own business.

Those specialist SMEs include Mvine, which gives business people all the tools they need to work in partnership across corporate boundaries, productively and securely. Indeed, Mvine is  finding that increasingly the business is not looking for IT-driven point solutions with a technology-led tag, such as collaboration, but a flexible, end-to-end platform that understands and speaks the business’s language, while delivering on the business’s multiple requirements, from document management to business intelligence. This approach facilitates effective communication and collaboration with customers and enables closer engagement with both partners and employees, outside the corporate silos, but still inside a secure, trusting environment. In the insurance world Exvine is attracting interest amongst business executives who quickly grasp the flexible, end-to-end capabilities of the platform and are impressed by the speed of deployment, usually only 4-6 weeks from concept to full production system. The rapid implementation, thanks to Cloud delivery, and flexible design features are proving to offer a refreshing alternative to traditional IT delivery approaches, which have often been slow and costly. 

Mvine’s latest innovation, 6.0, available to both Mvine and Exvine customers, provides a number of feature enhancements including compatibility with new technology such as tablets, improved search capabilities, data exports to Outlook, the creation of sales reports, security switches, multi-chapter video enablement, improved image quality and digital assets and event functionality.

What Mvine is now offering is a vision for the future of social business, creating a rich data store on companies and people, complete with email, videoconferencing, telephony and links to social media such as LinkedIn and Twitter that weaves a tapestry of relevant corporate communications including recent events, conversations, video, company updates and pictures: an interactive database of information and communication to replace the static spreadsheet. Mvine enables employees to get to know each other better, without exposing the organisation to the risks of social networks. It’s local , not social networking.

And because business intelligence is now so important to companies, customers can create reports of what their users are doing with the site in real-time. Information created, detailing data such as age, gender, frequency to the site, downloads, location, job function, can then be used to produce reports and help target marketing campaigns and generate sales leads, providing a bespoke service to customers and intelligent approach to understanding your user base.

The Mvine platform also has the capability to pull in and harness a wealth of data from physical appliances and fixtures, such as light fittings and plug sockets, entering this information ‘from the Internet of things’ into the platform’s BI tool for a widening list of uses, from environmental purposes through to practical maintenance enquiries. Such pure data, duly tuned or distilled so that extraneous ‘noise’ is filtered out, is the currency that enables organisations to make better business decisions.

Why is all this so important? Because in future instead of pockets of knowledge, companies will have one central nervous system that unifies every piece of corporate information and fundamentally changes how companies do business, unlocking the vast amount of information generated by everyday operations and making it instantly available. These ‘Activity Streams’, as Gartner calls them,  humanise every business process inside a company, adding a social layer to data and opening up real-time collaboration.

Firecontrol: same mistakes repeated on other projects

By Tony Collins

A report published today by the Public Accounts Committee on the £469m Firecontrol project reads much like its others on government IT-enabled project disasters.

Margaret Hodge, chair of the Committee said:

“This is one of the worst cases of project failure that the committee has seen in many years. FiReControl was an ambitious project with the objectives of improving national resilience, efficiency and technology by replacing the control room functions of 46 local Fire and Rescue Services in England with a network of nine purpose-built regional control centres using a national computer system.

“The project was launched in 2004, but following a series of delays and difficulties, was terminated in December 2010 with none of the original objectives achieved and a minimum of £469m being wasted.

“The project was flawed from the outset, as the Department attempted, without sufficient mandatory powers, to impose a single, national approach on locally accountable Fire and Rescue Services who were reluctant to change the way they operated.

“Yet rather than engaging with the Services to persuade them of the project’s merits, the Department excluded them from decisions about the design of the regional control centres and the proposed IT solution, even though these decisions would leave local services with potential long-term costs and residual liabilities to which they had not agreed.

“The Department launched the project too quickly, driven by its wider aims to ensure a better co-ordinated national response to national disasters, such as terrorist attacks, rail crashes or floods. The Department also wanted to encourage and embed regional government in England.

“But it acted without applying basic project approval checks and balances – taking decisions  before a business case, project plan or procurement strategy had been developed and tested amongst Fire Services. The result was hugely unrealistic forecast costs and savings, naïve over-optimism on the deliverability of the IT solution and under- appreciation or mitigation of the risks. The Department demonstrated poor judgement in approving the project and failed to provide appropriate checks and challenge.

“The fundamentals of project management continued to be absent as the project proceeded. So the new fire control centres were constructed and completed whilst there was considerable delay in even awarding the IT contract, let alone developing the essential IT infrastructure.

Consultants made up over half the management team (costing £69m by 2010) but were not managed. The project had convoluted governance arrangements, with a lack of clarity over roles and responsibilities. There was a high turnover of senior managers although none have been held accountable for the failure.  The committee considers this to be an extraordinary failure of leadership. Yet no individuals have been held accountable for the failure and waste associated with this project.”

Comment:

Firecontrol was a politically-motivated project which used  bricks, mortar and IT to try and change the way people worked. The users in the fire service didn’t want a single national approach of nine new regional centres – complete with new hardware and software – just as NHS clinicians, in general, did not want the National Programme for IT [NPfIT]. The Firecontrol regional centres were built anyway and the NPfIT went ahead anyway.

One lesson is that, in the public sector, you cannot engage users who won’t support the scheme. If they want to change, and they want the new IT, they’ll find ways to overcome the technology’s deficiencies. If they don’t want the scheme – and fire personnel did not want Firecontrol – the end-users will be incorrigibly harsh evaluators of what’s delivered, and not delivered.

It’s better to get the support of users, and involve them in the prototype design and test implementations, long before the scheme is finalised. It’s different in the private sector because the support of users is not essential – those who don’t accept business change and the associated IT will be expected to quit.

So what today is the mistake that is being repeated? The Public Accounts Committee touched on it when it said that the Department for Communities and Local Government – which was responsible for Firecontrol –  “failed to provide appropriate checks and challenge”.

During the life of Firecontrol, the Office of Government Commerce carried out “Gateway reviews” which independently assessed progress or otherwise. The reviews  could have provided an early warning of a project that was about to waste hundreds of millions of pounds. But the Gateway review reports were not published. They had a limited internal distribution and, it appears, were ignored.

According to the Public Accounts Committee, a Gateway review in April 2004, near the start of the Firecontrol project, said the scheme was in poor condition overall and at significant risk of failing to deliver.

Why was this Gateway review not published? If it had, Parliament and the media could have held ministers to account – and perhaps have campaigned to stop the project before millions were thrown away.

There was indeed a media campaign in 2004 – and before – to have Gateway reviews published, but ministers – and particularly civil servants – said no.

Now the same thing is happening. The civil service has persuaded the coalition government to carry on Labour’s tradition of keeping Gateway reviews secret. So Parliament and the media will continue to be kept in the dark on whether a major project is going wrong.

By the time details of the reviews are published, perhaps years later in a report of the National Audit Office,  it may be too late to rescue the scheme. By then tens or hundreds of millions may have been wasted. Gateway reviews should be published around the time they are written, not years later.

Ministers do not have to pander to civil servants. They are paid to stand up to them. They receive a premium over the salary of MPs in part to be independent voices – to provide a challenge.

Subservient ministers in the DWP are among those who continue to allow Gateway reviews to remain hidden. If you ask the DWP under the Freedom of Information Act for the release of the Starting Gate report on Universal Credit (which I am told is not the same as a Gateway review report) the DWP will refuse your request. It refused mine.

So we have to accept the word of civil servants that the Universal Credit programme is going well; but haven’t there been enough IT-related disasters in government for all to know that the word of civil servants on whether things are going well needs to be tested independently? The publication of Gateway reviews – and Starting Gate reviews – could help outsiders hold a department to account. It’s time ministers began to realise this.

Are ministers such as Iain Duncan Smith in control of their departments – or are their civil servants in control of them?

Links:

Margaret Hodge on BBC “Today” programme 20/9/11 – “what could go wrong did go wrong” – did PA Consulting get away without blame?

What the NPfIT and Firecontrol have in common.

Firecontrol:  should PA Consulting share some responsibility for what happened?

Cabinet Office tells mutuals future is bright despite Central Surrey Health struggles over NHS deal

By David Bicknell

The Cabinet Office has encouraged would-be mutual and social enterprises to see the government’s plans to open up public services as a positive move that yields new opportunities despite a flagship mutual reportedly losing out on a major contract to a commercial organisation for NHS services.

The Financial Times reported yesterday that Assura Medical has been named as preferred bidder for a five- year contract worth about £90m a year for community health services in Surrey, beating a bid by Central Surrey Health, the flagship social enterprise that runs services in the neighbouring area.

A Cabinet Office spokesman was quoted as saying: “This is not the end for Central Surrey Health; they continue to provide critical services for the people of Surrey. Across the public sector we have started to see the emergence of a new wave of mutuals.

“The government has ambitious plans to support front-line staff who want to form mutual organisations and take control of the services they provide. We are working to ensure that all organisations bid for contracts on a level playing field. We are currently conducting a listening exercise on the Open Public Services white paper, it’s vital that mutual organisations contribute to the discussion.”

The government wants to see the fledgling mutual and social enterprise sector grow to encourage a million staff to leave the public sector and sell services back to local government and the NHS.

In a press release issued by Social Enterprise UK, Peter Holbrook, the organisation’s chief executive encouraged the government to create a financial level playing field and give mutual and social enterprises the chance to gain a foothold in the commercial world:

“If Central Surrey Health, the government’s flagship mutual social enterprise, which has demonstrated considerable success in transforming health services and increasing productivity can’t win, what does this say for the future of the mutuals agenda?

“Central Surrey Health reinvests all the profits it makes locally. It is difficult to imagine how Assura, with shareholders expecting a financial return, could do more to benefit people in Surrey.

“It is not enough for government to open up markets; it needs to create fair markets that benefit society. Some of the financial criteria used in contracts create an unequal playing field in which social enterprises are unable to compete because they may not have the same financial backing as private sector providers.  Unless swift action is taken to address this we will see social enterprises and mutuals lose out to the private sector.

“Public sector workers will be understandably anxious about spinning out from the NHS and setting up a social enterprise on the back of this news. The government needs to take action to reassure them that they will not be operating in markets weighted against them.

It has been argued by unions that mutualisation hides a privatisation agenda with mutuals at risk of losing out to commercial operators as contracts come up for renewal. Central Surrey’s own contract is reported to be up for renewal next year.

Central Surrey Health was the UK’s first social enterprise to leave the NHS and set up as an employee-owned business four years ago. Central Surrey Health is contracted to deliver community nursing and therapy services on behalf of the NHS and other organisations (e.g. Surrey County Council) to the 280,000 population of central Surrey. It is owned by the nurses and therapists it employs, who each own a 1p, not-for-dividend share.

It has been selected by the Cabinet Office to help mentor employee-owned organisations coming out of the public sector. Twelve fledgling public service spin-offs have been chosen by the Cabinet Office to be ‘Pathfinders’ for the rest of the public sector. As mentors, Central Surrey Health will work with and support staff on Pathfinder projects to help them develop sustainable, efficient and pioneering employee-led services. Last November it was also named as the Prime Minister’s first Big Society Award winner.

Hammersmith& Fulham Pathfinder to launch in 2012

Why Activity Streams and Social Analytics promise to be the future of enterprise collaboration

By David Bicknell

One of the most eagerly anticipated reports each year is Gartner’s Hype Cycle, which assesses more than 1,900 technologies on their maturity, business benefit and future direction.

It provides a cross-industry perspective on the trends that IT managers should consider adopting within their ‘must-watch this technology’ portfolios.

Throughout 2011, two of the most-watched technologies have been ‘Social Analytics’ and ‘Activity Streams’ which are in Gartner’s “Peak of Inflated Expectations” where typically a frenzy of publicity generates over-enthusiasm and unrealistic expectations of the technology, and which often means that although there may be some successful applications of a technology, there are likely to be more failures than fanfares.

These two, however, may be different. Activity Streams has been described as the future of enterprise collaboration, uniting people, data, and applications in real-time in a central, accessible, virtual interface. Take the idea of a company social network where every employee, system, and business process exchanges up-to-the-minute information about their activities and outcomes. Now, instead of pockets of knowledge, the company will have one central nervous system that unifies every piece of corporate information.

Activity Streams can fundamentally change how companies do business, unlocking and releasing the vast amount of information generated by everyday operations and making it instantly available, humanising every business process inside a company, while adding a social layer to data and opening up real-time collaboration.

As the Cisco Communities blog pointed out earlier this year, the overall concept of Activity Streams is compelling because streams allow applications to publish events that are captured by aggregators that serialise the items into a sequence of posts. Often items include options for people to “like”, comment, or react to the item in some manner through a rating. Aggregating events into a common stream also enables people to easily subscribe (“follow”) a collective set of events from one or more publishers.

Cisco Communities suggests potential benefits are not just accrued by people-centric activity streams. Indeed, applications of all types can also generate activities into a stream to keep people aware of system events (e.g., a new sales win, an urgent alert of some sort). As the enterprise considers how Activity Streams can be leveraged, interest in role-based and process-related streams is also likely to emerge. The idea is that both productivity and collaboration needs can be improved by making events more visible and allowing people to take action more effectively (sometimes collectively) based on that level of event transparency (especially when compared to how people rely on their e-mail inbox for much of this type of group notification and work coordination).

There are some riders, however. As more people and applications create events published into a common stream, the resulting volume and velocity by which events “stream by” can cause people to miss something relevant, which means they end up spending time scrolling up and down searching for things they might have missed. Depending on the way activities are aggregated, there may be limits as to how much information is actually kept around to enable historical review. The risk is that Activity Streams can become just as messy and burdensome as an email inbox. Better filtering may help – but this is still a developing area.

Where does Social Analytics come in, you might ask?  Social Analytics is closely related to Activity Streams because from the vast amount of real-time and dynamic information available, actionable insights need to be extracted so that the organisation can efficiently and effectively focus itself.

The Mvine platform has already developed this capability so that customers can create reports of what their users are doing with the site in real-time. Information created, detailing data such as age, gender, frequency to the site, downloads, location, job function, can then be used to produce reports and help target marketing campaigns and generate sales leads; providing a bespoke service to customers and an intelligent approach to understanding your user base.

It is important to be aware that when it comes to Social Analytics, one size never fits all. That is why there is a need for ‘Adaptive’ Social Analytics because the analytics will always depend on the context in which they’re being used, on which explicit application you’re using, and on the people and content you’re interested in.

For example, if you’re using an Mvine portal to communicate with a consumer-based client base, then you’ll want to know more about them as individuals, in particular their demographics. Are they ABC1, for example? However, if you’re using it to manage the content and communications in your supply chain, then the analytics required will need to cover roles and relevance i.e. Is the right department receiving and acting on your communications? Who there is receiving it? Is it the right information for their role? If your alerts are targeting Finance Directors, but your event attendees seem to be from HR, why is that? Are your alerts going to the right people, with the right demographics in terms of gender, age, responsibility and location? For example, why are you targeting an event at geographically-spread project managers in the South who never have time to meet, when better targets would be those in closer-knit locations in the North? And are your user group chapter and product discussion groups full of a silent majority of followers, or voluble – and valuable – opinion formers?  

If the company is a business-to-business organisation where regulation is critical, then the analytics information delivered will necessarily be concerned with proof that processes have been appropriately followed and that required review and sign-off complies with the organisation’s designated policies and procedures. Your analytics information will therefore comprise time-stamping information that details who did what, where and when.

Why is this important? Well, it’s all about people, context and content.  Just because we are talking about the Internet does not change the requirement for the basics to be right when it comes to the delivery of effective and usable information. We need the right information to be delivered to the right people, with the right context, in the right place, at the right time, and in the right way. Anything less, then we’re dealing with ineffective information, which is likely to herald an equally ineffective, or worse, a wrong business decision.

Could mutuals provide an innovative model for public sector IT delivery?

By David Bicknell

What are the implications for IT delivery of creating public service mutuals and what part might they play in the public sector?

One public sector IT director I spoke with recently suggested that there are areas where mutuals will work exceptionally well. And some  are already beginning to do so. Some may get private sector sponsorship, while others will get charitable status.

These, however, are smaller scale mutuals or social enterprises, and a distinction must be made between those and large scale organisations where, for example, you could set up a mutual company for the whole of IT in a county or region.

There is a belief that the oft-quoted ‘John Lewis co-operative model’ could be an effective one.  One possibility is a shared services model along those lines  as an alternative to outsourcing or a private sector partnership.

That offers the prospect of developing a public service partnership of different organisations, effectively a sort of mutual or co-operative, where everyone who joins the co-operative has a slice of the cake irrespective of their size. The co-operative shares common infrastructure and services, but operates on a semi-commercial basis, possibly working with a private sector partner. Although the model doesn’t yet exist in IT, it is said to work well in agriculture.

Arguably the model overcomes a number of the issues raised by outsourcing and big public-private sector partnerships where there has been financial pain when things go wrong.  The mutual model offers the prospect of a better way, though there is a large difference between this scale of model and smaller mutuals in terms of risk outlook and management.

The IT director said he believe there is an opportunity for mutuals to insist, ‘We’re better than the private sector. We are very responsible about the risks, and we have a public service ethos.  For us ,  it’s not just about making money. We have the discipline of commercial business rigour and the safety net that protects vulnerable adults, for example, in the case of care homes.’

Some local authorities are already considering using mutuals to provide some ICT services. For example, the London Borough of Hammersmith & Fulham has become a Mutuals Pathfinder and proposed a pilot scheme with partners Kensington and Chelsea and Westminster to set up an employee-led mutual to deliver IT services to schools and the council, with the council planning to commission some services from the mutual for a four year period.  The scheme is due to get underway early next year.

Are civil servants giving more work to SMEs – or less?

By Tony Collins

David Cameron, in a speech to a Government procurement conference on 11 February 2011, gave a pledge to ensure that  “25% of all government contracts are awarded to small and medium-sized enterprises”.

He said: “If we meet this goal it will mean billions of pounds worth of new business opportunities for SMEs”.

The Government has since dropped its pledge to give SMEs 25% of public sector contracts, though it remains an “aspiration”. To back this up, departments are under pressure to show they have awarded more work to small and medium-sized businesses.

As part of David Cameron’s Transparency commitments, all departments are required to publish each new contract let over £10,000 and state whether this contract has been let to a SME.

This information is available on the new Contracts Finder website alongside tender documents and opportunities. As part of the business plan process each department is also required to measure and publish the percentage of their third party spend that goes directly to SMEs.

The Government says it is investigating how best to collect data on spend with SMEs as sub-contractors.

That said, the firm target of 25% has been dropped because European tendering rules do not allow officials to give contracts specifically to smaller businesses.

The Cabinet Office says its official position now is:

“We will promote small business procurement, in particular by introducing an aspiration that 25% of government contracts should be awarded to small and medium-sized businesses.”

The Cabinet Office minister Francis Maude has been more cautious. He said at the time of Cameron’s talk that “as much as” 25% of public service contracts will be awarded to the private and voluntary sector in a bid to break up existing public service monopolies.

Have plans for more SME work gone into reverse? 

eWeek Europe now reports the concerns of SMEs that the 25% aspiration may give way to plans to consolidate government administrative work which could end up with major suppliers being given even more work.

eWeek Europe says that at the first meeting of the ‘New Suppliers to Government’ working group, which was put together by the Cabinet Office, members said the government’s aspiration to place 25% of its business with SMEs is in direct conflict with projects such as Sir Philip Green’s ‘Efficiency Review’,  which pushes for consolidation within the supply chain.

“There are two competing tensions inside the government,” said Mark Taylor, CEO of Sirius and lead for the New Suppliers to Government working group. “One of them is the Cabinet Office’s stated commitment to getting more SME involvement. However, the other drive within government is pushing things the other way…

 “The implication of that programme is they will reduce the number of people they buy from to a very small amount of very large suppliers,” said Taylor. While this can be an effective way to cut costs through economies of scale, it is not appropriate to every sector, added Taylor.

In the case of IT innovative ideas are coming from smaller companies, which can help reduce government spending through agile processes and open source.

Taylor cited the Ministry of Justice’s Cipher project as an example of how SMEs are being elbowed out of contracts as a result of these conflicting objectives. In March 2011, the MoJ cancelled freelance IT contractors supplied through SMEs and transferred their work to outsourcing company Capita and its £123m Cipher contract.

“The solution that we are proposing is very simple,” said Taylor. “In the private sector, companies of whatever size will purchase from whichever entity makes the most sense. If it’s a commoditised service, buy it from a huge supermarket at commodity prices. If it’s a specialised service that is appropriate for the business, buy it from an SME.”

Stephen Allott, the Cabinet Office’s crown representative for SMEs, has said it will take up to two years for Whitehall to stop excluding small businesses from work they could do more effectively than larger rivals.

Allott was quoted in the Telegraph as saying that meaningful reforms were being rolled out, but that they would take time to be implemented. “There are a lot of things that need to be fixed,” he said.

Comment:

There is a real risk that the coalition’s laudable aspirations to change the way government works will fall victim to a combination of strong lobbying by the big suppliers and overwhelming forces within the civil service to keep things much as they are, which usually means playing safe – or that is how it is perceived – by continuing to rely on the large suppliers, the so-called systems integrators.   

For decades the big companies have had their way and have been paid very well for services of mixed quality. One result of the domination of big suppliers is that inefficiency is endemic. The Cabinet Office minister Francis Maude wants government to change and we support him. He’ll need to do more to make change happen, though. Meanwhile the civil service is doing what it does best: keeping the hands of ministers off the steering wheel. Maude is being given so much work that, in his words, it’s difficult to “keep all the plates spinning”.

Many in the Cabinet Office want to support Maude and effect reform. But can they do it when Maude is distracted by having too much work, the big suppliers are doing all they can to keep and expand their existing contracts, and departmental civil servants are confortable in their existing SI relationships?

eWeek Europe

An example of one SME’s innovative ideas

Agile – a series of London Tea Parties

By Tony Collins

Anyone interested in agile techniques  – users and suppliers, public and private sectors – is invited to share ideas at a London Tea Party on 22 September at the Cafe Zest, 2nd Floor of the House of Fraser on Victoria Street, from 4pm – 6pm.

It is arranged by Abby Peel who has recently joined Mark O’Neill in the Innovation and Delivery team within the Government Digital Service. Peel is Head of Community.

Peel says that “AgileTea”  is an informal get-together for those who work with agile methods, are interested in it, or who know nothing about it but want to know more.

An example of agile in government is the Government e-petitions website which was launched recently to much public interest after being developed by the Innovation team in six weeks.

AgileTea will be the first of a regular series of informal, BarCamp style events that will bring together like-minded people to hear, contribute and engage in discussion of agile methods.

Each meeting will have guest speakers. Anyone can ask to give a short presentation of up to 10 minutes.  At the first AgileTea speakers will be Richard Pawson  from Naked Objects who’ll talk on “Experience of very large scale agile development at the Irish Department of Social Protection” and Mark Foden of Foden Grealy who’ll speak on “Where agile fits”.

Understanding the impact of the Teckal Test on procurement and competition for mutuals

By David Bicknell

I recently wrote about the impact on procurement for mutual and social enterprises of the Teckal Test, which tests whether contracts and the contractor are under the public authority’s direct control.

Broadly speaking, the Public Contract Regulations (2006) apply whenever a contracting authority seeks offers in relation to public contracts. The Regulations give effect in UK law to Council Directive (2004/18/EC) on the co-ordination of  procedures for the award of such public contracts.

This has implications for mutuals, because case law of the European Court of Justice has developed an exception from the normal application of the procurement rules, known as the Teckal exemption, where contracting authorities award contracts for providing services or works to an “in house” provider.

The exemption works on the basis that the contract being awarded is not a “public contract” for the purposes of the Directive and, as a result, the Regulations do not apply and EU law will not require the  contract to be put out to tender.

If you’re interested in Teckal, these links may be useful:

http://opinion.publicfinance.co.uk/2011/07/mixed-up-over-mutuals/

http://www.farrer.co.uk/Global/Briefings/16.%20Briefing/Public%20Procurement%20Update.pdf

http://publicsector.practicallaw.com/blog/publicsector/plc/?p=475 

Why this SME’s innovative ideas may help Nick Clegg understand the real causes of the riots

Could a new approach detect the early warning signs of radicalism in a way that ordinary research, surveys and intelligence gathering couldn’t? Or spot when programmes to reduce re-offending aren’t working?

In this guest blog, Andrew Moore, chief operating officer at DAV Management, whose customers include large public and private sector organisations, explains why government research into complex situations, such as the causes of the recent riots or making offender management more effective, requires a different approach that goes beyond supporting preconceived hypotheses to give new insights and fresh perspectives, and crucially, offers a means of detecting the early signals of situations that are developing in communities which can either be encouraged for the wider good or damped down before they can pose a threat.

Improving the Citizen Experience

An innovative approach to surveys and research

There is a currently a great deal of interest within government circles to determine how best to engage with its various stakeholders in different, more effective (and understandably less expensive) ways.

There’s the Big Society, the attempt to establish ‘happiness’ as a measure of the nation’s wellbeing (rather than just good old GDP), the need to engage citizens in a more direct and effective manner, with services designed around them rather than the structure of government.  In addition there are specific events that trigger the Government’s need to interact with sections of the population, such as the recent announcement by Nick Clegg that he wants to engage with communities affected by the summer riots in England, in order to understand who did what and why.  Then there are the government’s internal stakeholders – its employees, with whom it is seeking an altogether more symbiotic relationship – devolving power to the people on the front line who frequently know how to run services in a more effective and efficient manner.

Mutualisation’ and ‘Third Sector’ are terms that I suspect everyone is likely to become more familiar with over the next few years, even if now they may require some defining.  The long running debate about the future of the NHS is a very good case in point. And there’s the stated desire to get SMEs delivering innovation as part of effective government procurement.  As an interesting adjunct to this, let’s not forget that employees are also citizens, creating a fascinating cross-over of interlinked perspectives.

Of course there are other groups who may be thought of as stakeholders and these will have a very specific perspective on the delivery of public services.  I’m thinking here of offenders – those serving their debt to society and for whom the government is seeking ways to improve rehabilitation, reduce re-offending and become much more effective at identifying those most susceptible to radicalisation, extremism or self-harm. This of course has been brought into sharper focus by discussions over the severity of post-riot sentencing.

All in all, this represents a hefty agenda of public services reform and one which will test the government’s strategic planning and policy implementation ability to the max.  With such degrees of change being considered, it is encouraging to hear that government is embarking upon a listening exercise to garner the views of citizens, employees and service users, as some recipients of public services are now known.  Understanding what people want in order to deliver services they will use is a laudable objective, but what a task this must represent.  How on earth do you make this achievable?  Consider for a moment the potential population sample.  What constituency would you choose?  How do you get people to participate with sensible and meaningful responses?

Even if you can get all this feedback, how do you make sense of it?  How would you store, manage and interpret the sheer volume of data, relating to so many different aspects of life and stakeholder groups?  How could you be sure it doesn’t end up as an exercise designed to prove (or disprove) preconceived positions?  How would you spot the things that you don’t recognise – the identification of a strong belief system (that could make or break any changes in the way public services are delivered); the early signs of a rise in community ‘temperature’ that could lead to the kind of civil disorder witnessed in cities across England during August this year; or the indicators that some offenders are significantly more willing (and likely) to rehabilitate under certain conditions?  I could go on but I don’t want to labour the point.

It’s clear that in an exercise that will fundamentally change how most people interact with both central and local government, it makes sense to give those people a voice.  But this has to be in a controlled and manageable way, so that it is quick and easy to understand what that voice is telling you; gaining truly unique insights and fresh perspectives from which actionable decisions can be made and monitored that make a real difference to people’s lives, be they citizens, employees or service users – or, in some circumstances, perhaps a combination of all three!

Making people part of the process in this way is also an effective way of getting buy-in.  People are more likely to feel engaged, even if it’s by proxy (i.e. evidence of meaningful consultation establishes a degree of credibility) and by its very nature, changes the basis of the relationship between government and those stakeholders with whom it is seeking to engage.

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So what’s the point in all this, why are these things being suggested as anything new?  After all, the idea of planning, shaping and delivering services against a well-defined need is surely common sense and is recognised as such by most people.  Well, as they say, the problem with common sense is that it’s not that common.  The truth is that the kind of knowledge and insight that is likely to be required by government in order to shape and deliver its vision for public services, is difficult (if not impossible) to gain from traditional methods and technology. A different approach is required.

What if you were able to poll large samples of the population on a variety of different topics and have the findings presented to you quickly and simply, in a way that wasn’t mediated by ‘experts’ and allowed you to interact directly with the data – at both a quantitative and qualitative level?  What if you were able to see things that you hadn’t expected; things that blew away commonly held perceptions about citizens or employees – giving you a clear and substantiated view of how people are feeling, what they really think of particular programmes and initiatives and how they are responding to specific policies and interventions?  Imagine being able to detect early opportunities to take action on a particular initiative that enabled you to maximise the benefits downstream or damp down a threat before it was even recognised as such.

It all sounds too good to be true, but advances in cognitive based solutions, using micro-narratives (snippets, stories, reports and other qualitative data) captured from samples of your target ‘audience’ and self-indexed by them to provide meaning from which incisive action can be taken, are turning these scenarios into reality.

The problem for strategists and policy and decision makers is that the environment in which they are operating is hugely complex; there are many small causes that interact and interweave to produce an end result, but no one cause is dominant.  The whole environment is continually adapting and changing and you can’t measure it at a point in time – it’s constantly evolving.  This is what’s known as a ‘complex adaptive system’.  It’s the kind of environment where outcomes are difficult to predict.  It’s highly sensitive to small changes, meaning emerges through interaction and, with the benefit of hindsight, you might be able to see where, when and why things have happened and how you could have dealt with a particular situation, but at the time it was erratic and novel.  Sadly, hindsight does not lead to foresight and processes to prevent a similar situation occurring next time will fail, because the next time things will happen differently.  The August riots in England were a perfect example of this scenario, where multiple small, erratic events interacted and evolved to produce a disproportionate, unpredictable and, in this case, catastrophic outcome, which the government is still trying to understand the cause of.

Complex situations frequently occur when you are dealing with people because they are inherently unpredictable and often driven by emotion.  The bad news for government is that, one way or another, people are at the heart of all of the major change initiatives and civil events that are currently under the policy spotlight.  You begin to get a sense for the scale of the challenge.  Not an overnight thing this.  [By the way, if you’re having difficulty getting to grips with the concept of a complex adaptive system think of mayonnaise.  If you’ve ever tried to make this from scratch you’ll know how uncertain it feels as the ingredients combine and the mayo gradually emerges.  One slip and it will curdle, the end result is never the same and it can’t be reverse engineered].

Fortunately, when trying to get to grips with a complex situation, a cognitive approach again comes to our rescue.  It enables us to probe the situation, sense what’s happening where and why and then respond accordingly.  It’s liberating for policy makers as it opens the door for innovation, enabling organisations to try things and see what works best in particular situations.  Fast feedback loops promote a low-risk, ‘safe-to-fail’ environment where those ideas that aren’t working are quickly identified and turned off, enabling us to get behind those that are delivering tangible results.  In this way, new services and new ways of working can evolve, meaning that the end result has a much higher chance of widespread adoption and, hence, long-term success.

The really good news for government is that game changing solutions of this type are really in the sweet spot when it comes to getting ‘more for less’, as today’s economy demands.  The levels of investment required are a fraction of the amounts that have typically been associated with major government change initiatives.  They are also much simpler to implement and run.  Once set up, data capture, analysis and reporting can be built into an organisation’s day to day operational processes, supporting (and stimulating) how it interacts with the citizens or service users it serves, or the employees it depends upon for the delivery of those services.  For example, making it part of how Offender Managers (previously known as Probation Officers) interact with offenders to try and reduce re-offending would be an excellent way to capture how the latter group is responding, say, to changing institutional attitudes and behaviours, revealing to what extent infantilisation (i.e. treating offenders in a condescending manner, as if still children) is being reduced.

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A recent case in Canada illustrates how the solution can be implemented to improve the delivery of healthcare services.  In this instance, the authorities in British Columbia initiated a programme to help them understand the perspectives of all parties implicated in the unfortunate death of an elderly patient.  This had resulted from a breakdown in communication and subsequent decision making following the patient’s admittance to hospital suffering from congestive heart failure. Not unusually in these circumstances the single, sentinel event of the patient’s death was seen from very different perspectives by the various groups involved.  By adopting a cognitive based approach the authority was able to bring together front line and management staff to make sense of these conflicting perspectives and, as a result of the unique ‘safe-to-fail’ experimentation techniques supported by the approach, it was able to trial and subsequently implement changes in both policy and service delivery that will not only help to prevent similar incidents occurring in the future but also raised the quality of healthcare provided to patients more generally.

Just think how powerful such an approach would be for Nick Clegg in his quest to understand the complex human behaviours and emotions that came together to fuel the aforementioned riots in England.  And to have this at your disposal not only as a platform from which to take decisive action now but also to generate alerts when the ‘community temperature’ again begins to rise, must surely present a huge opportunity that any civil authority worth its salt would want to take advantage of. Instead it would appear that research initiatives are being launched by those with an interest in understanding and curing society’s ills that, albeit well-meaning and based on credible empirical evidence, may still ultimately turn out to be incomplete.  My concern would be that if a traditional research approach is adopted to try and make sense of what is essentially a complex situation (as I have defined above) then such initiatives risk revealing only those things that are readily recognisable and, having been mediated by ‘experts’, support preconceived hypotheses.  They are likely to  miss the opportunity to discern unexpected findings arising directly from the contribution of the people affected by (and involved in) the riots and fail to detect the early signals of situations that are developing in those communities, which can either be encouraged for the wider good or damped down before they can cause further unrest.  Addressing these issues by adopting a cognitive based approach will provide a much more effective feed into future policy decisions and social interventions.

If you’re new to the concept of cognitive based solutions it can be a bit of a challenge to get to grips with how they work and just what they give you, but once you’ve experienced the power of the knowledge and understanding that they deliver, you start to see applications everywhere you look.  The big advantage is that it’s easy to get started with low-cost, low-risk pilots that can start to make a difference to any organisation in a very short space of time.

To learn more, visit http://davmanagement.com/default.asp?id=833&ver=1

Contact Andrew Moore at andrew.moore@davmanagement.com

Or call +44 (0)1189 974 0100

Economic boost of nurturing mutuals and social enterprises a key focus of party conference season

By David Bicknell

Mutuals and social enterprises are likely to be a strong area of interest in this year’s party conference season, which gets underway for the main parties with the Liberal Democrats in Birmingham on September 17th.

As the Guardian reports in this piece looking forward to the party conferences through a social enterprise lens, much of the focus will be on the role that social enterprise can play in transforming public services and stimulating economic recovery. 

It makes the point that “new research by Social Enterprise UK (formerly the Social Enterprise Coalition) has revealed a “start up explosion”, with 39% of social enterprises based and working in Britain’s most deprived areas. This compares to 13% of small- and medium-sized enterprises (SMEs).

“The research also found that the UK’s 62,000 social enterprises are outstripping business in terms of growth – 58% of social enterprises grew last year compared to 28% of SMEs.”

The optimism is to some extent offset by pessimism that  the current commissioning process will favour large-scale private sector providers over mutuals and social enterprises.

Here are links to the main parties conferences:

Lib Dems
Labour
Conservatives