Tag Archives: public sector

End of NPfIT? – Campaign4Change on BBC R4 Today programme

By Tony Collins

Link to Campaign4Change audio on BBC R4 Today programme

BBC Radio 4’s Today programme this morning reported a Daily Mail article that the National Programme for IT in the NHS is being scrapped and that a coalition announcement is to be made this morning.

The Mail says that the money spent on the NPfIT would pay for 60,000 nurses for a decade, and that the scheme will be replaced by a “cheaper alternative”.

It says that there will be a new urgency in “dismantling the scheme”. Campaign4Change told the BBC R4 Today programme this morning that the NPfIT is not being scrapped and that about £4bn has yet to be spent on it. It said that trusts have the freedom to buy their own IT systems but using their budgets. The NPfIT will continue to provide Cerner and Lorenzo systems that are subsidised centrally, which gives the NHS an incentive to continue using NPfIT.

There is a difference of opinion within Whitehall over the NPfIT: that the Cabinet Office takes a rigorously independent view of the NPfIT and wants to wind it down. The Department of Health’s civil servants at a press conference last year justified the spend on the programme and said the contracts with CSC and BT would continue.  Campaign4Change told Today that the Cabinet Office should have the final say, not the Department of Health.

The Government clearly wishes it to be known that the NPfIT is being scrapped but that is not what is happening in practice. Contracts with CSC, which at present are worth about £3.2bn, are unlikely to be scrapped because of the compensation that would have to be paid to the supplier. The contracts may be cut back  by about £800m, though the cost of deployments remaining may double. BT’s contracts worth more than £1bn are also likely to remain.

The Daily Mail says the NPfIT will be “replaced with cheaper regional alternatives” and that the Coalition will “today announce it is putting a halt to years of scandalous waste of taxpayers’ money on a system that never worked”.

“Following an official review, the ‘one size fits all’ IT project will be replaced by much cheaper regional initiatives, with hospitals and GPs choosing the IT system they need.

“And a new national watchdog will be established to ensure such huge sums can never again be thrown away on uncosted projects.”

The decision to accelerate the dismantling of the scheme has been made by Health Secretary Andrew Lansley and Francis Maude, the Minister for the Cabinet Office, says the Mail.

It quotes from what appears to be a leaked memo from the Major Projects Authority of the Cabinet Office which has been reviewing CSC’s contracts.

“The authority said the IT scheme, set up in 2002, is not fit to provide services to the NHS – which as part of austerity measures has to make savings of £20billion by 2014/15.

It concluded: ‘There can be no confidence that the programme has delivered or can be delivered as originally conceived.’

The report is said to recommend that the Government  “dismember the programme and reconstitute it under new management and organisation arrangements”.

It added: “The project has not delivered in line with the original intent as targets on dates, functionality, usage and levels of benefit have been delayed and reduced.

“It is not possible to identify a documented business case for the whole of the programme.Unless the work is refocused it is hard to see how the perception can ever be shifted from the faults of the past and allowed to progress effectively to support the delivery of effective healthcare.”

Daily Mail article on the NPfIT today

Department of Health announcement

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

An NHS success story – what’s to learn from it?

By Tony Collins

IM&T at Trafford General Hospital makes visits to hospital safer for patients and gives managers the information they need to monitor the work of clinicians. Even doctors like the advanced technological environment and come up with ideas for improvements. So what lessons can be learnt? Here are four:

–           Be in control of your IT suppliers. Too often in the public sector it’s the other way around

–           Don’t buy from suppliers that seem excessively secretive and talk much about their proprietary information – which may include your data. Know their systems well enough to produce the reports you want, when you want them and in the format you want, rather than wait for your information to be given to you when the suppliers want to give it, and in their format.

–           Don’t impose change. Have the push come from the business users [in Trafford’s case clinicians] who understand what technology can do for them.

–           Keep IT in the background – not centre stage.

Advanced health technology on a £1.5m yearly budget

By Tony Collins

[This is the final part of a 3-part series on how Trafford Healthcare NHS Trust’s IM&T team achieves much on a small budget]

Trafford General Hospital bought its main systems outside of the £11.4bn the National Programme for IT [NPfIT]. The hospital, though, is one of the most technologically-advanced in the UK.

Part one of our series on Trafford Healthcare NHS Trust covered the clinical support for IM&T, integrated systems, and the openness that’s required of the trust’s suppliers.

Part two covered the trust’s  control of its data, how NPfIT could ever have worked, how patients benefit from the IM&T,  why doctors keep their smartcards on them at all times, links between hospital and GP systems, the real-time view of free beds, why duplicated patient records are rare, board support for  integrated electronic patient record systems, and some of the remaining challenges.

Some of  Trafford’s further challenges include:

–           Securing the agreement of all GPs in the area to share a synopsis of their records. About half have agreed so far.

–           Scanning in all paper notes to the EPR. At present about 50% of patient notes have been scanned and are available to clinical staff as “PDF” files, normally with chapter headings. They include diagrams, charts and handwritten text.

–           Dealing with any uncertainties that arise when the Trust is acquired – in all probability by Central Manchester Foundation Trust .

–           Maximising the IM&T opportunities that the acquisition will bring both Trusts in terms of modernising systems and extending the concept of the shared electronic patient record across a wide area of Manchester.

Costs

Trafford has 14 people working on IM&T and IT infrastructure related matters who handle support, infrastructure and integration. The total yearly cost, including salaries, is about £1.5m in capital and revenue which covers the spend with all of Trafford’s  IM&T suppliers.

This compares with costs of between £23m and £31m for each NPfIT installation at acute trusts in London and the South – and these sums do not include the costs of running a hospital’s IM&T and associated infrastructure. Neither do the NPfIT costs include the salaries for an acute hospital’s IT and IM&T staff.

Steve Parsons, Head of IM&T, says of his hospital’s technology: “This is bargain stuff”.

If Trafford can do so much for so little, can centrally-bought NPfIT systems costing many times more – for less – still be justified? The Department of Health argues that NPfIT systems offer more than non-NPfIT. But how much more could Trafford offer its clinical staff, in terms of proven technologies and integration?

Asked where he’d put Trafford in a league table of UK hospitals with systems that clinicians need and want to use, Peter Large, Director of Planning, pauses and says with a slight smile: “Let’s be modest – in the top 10%.”

He’s probably not joking.

**

•           Since writing this article Parsons and his team have been short-listed by the eHealth Insider Awards for the trust’s electronic whiteboard project, in the category of “innovation in healthcare interoperability”.

Part one: How does this IM&T team achieve so much for so little money?

Part two: How does this IM&T team achieve so much for so little money? (2)

How does this tech team achieve so much on so little money? (2)

By Tony Collins

One reason doctors and nurses hold the tech team at Trafford General Hospital in high regard is the quiet professionalism of Steve Parsons who’s a civil engineer and Head of IM&T at Trafford Healthcare NHS Trust in Manchester.

Civil engineering is a  world where openness  is allied to safety. Parsons  designed buildings and pumping stations in the water industry where managers don’t tolerate unnecessary secrecy from their suppliers. From there he became involved in managing IT-led change and came to Trafford General Hospital in 2000.

“It’s having an analytical questioning mind, not just accepting what people say. I will ask all the questions that can make me seem a pain. You want to know why it [a supplier’s software] is going to work,” he says.

“If they don’t give me the confidence that their product is going to work under certain conditions I will not want it. I will not take a black box without knowing what is going to happen with it. I am not having that dependency. I want to strip it down to its basics. It has to be practical. Where else is it working? What is the underlying database?”

Patient data and suppliers 

He says that hospital data belongs to the hospital, not the supplier. “There are people working in the health service who will say: ‘we are the system supplier. It is our data.’ But ours is patient data. This is client’s data, not the supplier’s.”

To an outsider – one who doesn’t work in the NHS – the most surprising thing about seeing the IM&T engine rooms at Trafford General is the complexity and the different ways each ward works. These complexities have to be managed to give doctors and nurses a seamless view of what is happening with each patient.

Could the NPfIT ever have worked?

It’s remarkable, given these complexities, that anyone thought a national system – the National Programme for IT in the NHS –  could ever have worked. It’s hard enough to integrate IM&T within a single hospital let alone on a regional or national scale.

Parsons and Peter Large, Director of Planning at Trafford Healthcare NHS Trust,  consider it lucky that Trafford went live with the Graphnet patient record technology as early as 2003, several months before the tenders for the NPfIT systems were awarded.

It meant that, while some in the NHS were waiting in eager anticipation for NPfIT systems that never arrived, Trafford’s technical staff were learning in precise terms what clinicians wanted and converting this knowledge into working systems. At no point did the promised national systems offer more than Trafford’s.

How patients benefit from Trafford’s IM&T   

In a room close to each ward is a 46” screen known as the “whiteboard” which shows lists of every patient, whether in a bed or visiting outpatients. Allied to the patient’s name are relevant details including colour-coded alerts to warn if a VTE [thrombosis] check hasn’t yet been done, an observation is overdue or an x-ray has not been assessed. In A&E the icon turns red if a patient has waited for three hours, and purple if more than four hours.

Also on the whiteboards, breaches of Department of Health guidelines on waiting times are shown clearly for each patient. The screen also shows which doctor is responsible for any breaches of waiting times.

If nothing else, these system alerts and icons – which include ticking clocks – show how technology can make treatment and care safer for patients.

Why doctors keep their smartcards at all times 

Clinical staff must use smartcards to access the system, and they are unlikely to forget them because they also allow access to the car park.

In trials of NPfIT systems, some doctors were reluctant to use smartcards because of the time taken to log on each time they returned to the computer. At Trafford log-on takes a few seconds, and Imprivata’s single sign-on means that holders of smartcards do not have to remember different passwords. Take out the smartcard and the screen goes blank.

Says Parsons: “We are dependent on EPR now. A year ago one or two consultants refused to look at the EPR. Their secretaries had to print off the last letter from outpatients because they would rather not look at it on a screen. That’s changed.”

Patients give their details only once 

In parts of the NHS patients give their name and address every time they visit a different part of the hospital. At Trafford General Hospital a new patient has a file created at, say, A&E. It is then available to all parts of the hospital, ready for staff to order electronically a blood test or x-ray, or book an appointment.

Links to GPs 

Through Sunquest’s Anglia order communications system and using the HL7 messaging standard, GPs can from their desks order hospital blood tests and x-rays, and get the results in their inboxes. The orders and test results are recorded in the hospital’s Graphnet EPR.

If the local GP has authorised it – and so far about half in Trafford’s catchment area have – A&E doctors will soon be able to see a synopsis of the GP-held patient record which would show any treatments outside the Manchester area as well as medications and significant medical events. The synopsis comes into a hospital server that is controlled by GPs, using their local Emis or Vision systems. In return, GPs have access to their own patients within the hospital-based EPR where they can see all the records related to a patient’s episodes of treatment .

Real-time view of free beds

On the whiteboard, staff can see when beds are due to become vacant, doctors having given the system an estimated time and date of departure for each inpatient. If a doctor fails to give an estimate the system shows an alert.

Says Laura Slatcher who is an assistant to Parsons, “Doctors are restricted with what they can do with the patient’s record  – cannot make referrals, cannot update whiteboards – unless the estimated discharge date is kept up to date. Doctors will complain that they cannot get on because clerks or nurses haven’t kept this administrative information up to date.”

The estimated discharge date is also useful to ensure that the system has alerted district nurses if the patient, after leaving hospital, needs physiotherapy, dietary monitoring or help from social services.

Bed management is a module now removed from the “Lorenzo” system as part of the Department of Health’s plans to cut the costs of NPfIT contracts.

Duplicated patient records are rare

Parsons and his team have done much to tackle the bane of hospital administration: duplicate patient records. Says Parsons: “We have a central patient index which is updated nightly from all GP practices. If you say your name we check date of birth and previous addresses, maybe from the GP – you may still get two people with the same name living in the same house.

“Once we have updated John Jone to John Jones, the central system will update all other related systems to the new spelling. One single ID for everyone avoids having duplicates which could end up with patients having the wrong records. That’s critical to get right.”

Medical Director Dr. Simon Musgrave says: “Duplicates are a fairly rare event now.”

Staff in A&E can create duplicates very easily from patient provided information but “we have systems in place to track those in the following 24 hours and merge them back to the correct record”, says Parsons.

The hospital’s old iSoft patient administration system had 150,000 duplicate files in a database of 460,000 patients. That was typical for an acute hospital says Parsons.

Trafford dispensed with its patient administration system –  it doesn’t have one, having replaced it with the Graphnet’s EPR and Ultragenda from iSoft [now owned by CSC].

EPR goes beyond Trafford

Many doctors are sceptical of the need to make electronic patient records available across England, which was one of the main – and ultimately unsuccessful – aims of the NPfIT. The sceptics say it is very rare for patients to need treatment outside their locality.

Trafford has 250,000 patients in its catchment area but its EPR has 1.4 million records which includes most people in Manchester.

Board support

Trafford adopted the Department of Health’s pre-NPfIT strategy in the late 1990s which called for hospitals to install, incrementally, six levels of EPR – electronic patient records. Level one was a patient administration system and departmental systems. The highest, level six, was a full multi-media EPR online.

Says Parsons: “I have been fortunate of having the support of the Trust Board throughout the 10-year period of staying on a strategy that said: ‘we will continue to build that six-level EPR and all that went with it until an equivalent and better came from the National Programme for IM&T  through Connecting for Health’.”

Reporting, accountability and safety 

Trafford publishes hundreds of reports to operational managers: how long patients have been in their bed or how have they waited, how many patients have had certain types of forms filled in such as VTE forms. Every morning emails to consultants tell them the number of patients they had admitted the day before and how many have not had, say, thrombosis assessments.

Standard reports from some suppliers to the NHS may be too limited for Trafford’s demands, says Parsons. “Some of the questions we are asking require difficult algorithms. On bed occupancy for example doctors get credits for the numbers of patients they are caring for. The standard unit for care is one day or night in hospital.  If somebody is in for six hours, if you work in units of one day, nobody gets credits for that. We want to break IM&T down to parts of days and look at trends.”

Challenges remaining

Ensuring patient safety during the transition from paper to computer needs careful management.

Says Musgrave, Trafford General’s Medical Director: “When you ask for an x-ray [on paper] you fill out a form, get the x-ray done, and the x-ray report is written on a piece of paper which comes back to you so your secretary gets a bit of paper that says “cancer” on it. That’s the end point, the safe point, and you do something about it.

“If you order it on a computer and you do not have a paper record, you have to have some other different system for making it safe.  How do you know the x-ray has been ordered, has been done, and been reported? And what is the report? There is no back-stop there unless you invent one via the computer.”

“Will we ever do entirely without paper?” asks Parsons. “Hmm.”

Part one – How does this tech team achieve so much on so little money?

Final part – How does this tech team achieve so much on so little money?

How does this tech team achieve so much on so little money?

By Tony Collins

Laura Slatcher dreams of forms – reducing the number of them.

She works with a small IM&T team at Trafford General Hospital that is trying to standardise and reduce the number of paper forms doctors and nurses use in the care and treatment of patients.

As is typical for a hospital of its size there are up to 70 – mostly different – paper forms on every ward. Slatcher is working with clinicians to define ways of switching from paper to electronic records – which they are doing with alacrity.

“We have to standardise here,” says Steve Parsons, Head of IM&T at Trafford Healthcare NHS Trust in Manchester. “The doctors and nurses welcome that. They want to work better and more efficiently because they are under pressure themselves to do that.”

Clinical support 

Trafford General bought its main systems outside of the £11.4bn the National Programme for IT [NPfIT]. The hospital, though, is one of the most technologically-advanced in the UK says Peter Large, Trafford Healthcare NHS Trust’s Director of Planning.

There has been no risky “Big Bang” implementation of a Whitehall-bought patient administration system. Rather, Parsons’s approach has been step by step progress over 10 years: implementing systems, learning from what went well and not so well, and integrating hardware and software from a range of suppliers. This strategy could help to explain why the clinical staff we spoke to at Trafford hold the small IM&T team in high regard.

In 2000 the hospital had rudimentary technology – isolated systems in some departments. Now the IM&T team is able to give clinicians what they have asked for; and at Trafford it’s the doctors and nurses who say what they want. Systems are not imposed on them. Here the technologists are in the background, not centre-stage as in the NPfIT.

Trafford and the NPfIT

Says Large: “We found ourselves in the position of being ahead of the game. When we were asked to commit to the National Programme we held back because we needed to know we would be committing to a better solution than was already available to us.”

Parsons adds: “Some trusts didn’t really have anything at all so were desperate to be in the first wave. From their perspective the national programme was a brilliant step forward. But the right products never arrived.”

Integrated systems

One reason for Trafford’s success is the integration of the hospital main and departmental systems. Before electronic patient records, patients could come into hospital without their paper notes being available. Now doctors across the hospital’s departments and clinics can access at the hospital’s XML-based electronic patient records at any time, day or night – and from home if they have remote access.

Doctors can view x-rays and assessments of them from the patient record; and from system alerts and patient tracking, operational managers can see how well individual doctors and nurses are coping with the numbers of patients on their daily lists.

No black-box technology

The hospital’s three main systems are an electronic patient record from Graphnet, software to schedule and manage appointments from Ultragenda, owned by iSoft (now acquired by CSC), and the “Ensemble” integration engine from InterSystems.

What sets these and the hospital’s other systems apart is that they are not black boxes, impenetrable to Trafford’s technologists. Parsons insists that Trafford’s suppliers make their software transparent so that it can be understood by the hospital’s IM&T staff and integrated with other systems, at database “field” level if necessary. That way Parsons can produce any report clinicians need and usually in real-time.

When a supplier keeps its software opaque for reasons of proprietary and commercial confidentiality, Parsons is restricted in the type of medical and administrative reports he can ask the company to supply – and may have to wait hours or a day to get them. He wants none of that.

It’s this level of control that Parsons believes he has a right to expect – and he seems a little surprised that CIOs don’t always require openness from their software suppliers.

How does this tech team achieve so much on so little money? (2)

How does this tech team achieve so much on so little money [final part]

Met Office has IBM secondee as CIO

By Tony Collins

The Met Office gained ministerial approval to appoint an IBM employee for a year as secondee CIO, until the end of October 2011, according to information released under the FOI Act.

It appears that the salary of the IBM executive David Young is being paid, at least in part, by the Met Office. In documents released under the FOI Act the Met Office has redacted [edited out] details of Young’s proposed remuneration and performance bonus.

As a trading fund within the Department for Business, Innovation and Skills, the Met Office is required to operate on a commercial basis. It was part of the Ministry of Defence at the time of Young’s appointment. His recruitment was approved by the Secretary of State.

Internal emails show that the Met Office apparently overcame a recruitment ban and constraints on secondments.

Having your CIO seconded from your biggest IT supplier may be novel but it could be controversial because of the perception of a potential conflict of interest.

It would not the first time a public authority has been involved in a controversy after seconding an IBM employee as head of IT.

In 1993 a report of the district auditor criticised the then Wessex Regional Health Authority after it transpired that a member of the health authority was a director of IBM. The IBM director at Wessex promoted a controversial and successful bid for core systems to be supplied to the health authority by IBM and Andersen Consulting (later Accenture). The director later asked that his letter lobbying for the contract be destroyed.

The auditor also found that the Wessex authority bought an IBM mainframe without proper legal authority, the members of the authority having not been informed. The authority paid an unnecessarily high sum for the mainframe and there were doubts the machine was needed. A decision to proceed with the purchase of the mainframe at Wessex was made on the advice of the regional health authority’s new regional information systems manager who was an IBM secondee.

The Met Office, however, has given full consideration to the potential for a conflict of interest in appointing Young as its CIO. It said in a statement this week:

“Full consideration of any potential conflicts of interest regarding David Young’s appointment were fully considered prior to his appointment and his terms of engagement specifically cover these.

“The Met Office complies with specific rules set by the government with regard to procurement and purchases of IT equipment must be agreed by the Met Office Executive.”

The Met Office is one of IBM’s biggest customers. It says on its website: “We are now using an IBM supercomputer which can do more than 100 trillion calculations a second. Its power allows it to take in hundreds of thousands of weather observations from all over the world which it then takes as a starting point for running an atmospheric model containing more than a million lines of code.”

The Met Office reports that Young is responsible for the organisation’s IT strategy and ensuring that it adapts to support the business strategy.

Its website says that Young worked for IBM but does not make it clear he is still employed by the company while on secondment to the Met Office. It says that before joining the Met Office he “held a number of executive position within the IT industry, working for IBM, CSC and Siemens”.

Young’s Linked In profile says he is CIO at the Met Office and Director, System zStack and Mainframe Platform, Central Eastern Europe, Middle East and Africa at IBM.

In response to an FOI request by Dave Orr, the Met Office has released internal emails relating to Young’s recruitment and later appointment. Young is described in the Met Office’s Register of Interests 2010/11 as an “Executive, IBM UK Ltd (non-active)”.

The email exchanges show that the Met Office was keen and anxious to employ Young. Talks over Young’s recruitment, initially as Chief Technology Officer, began in July last year and took several months to conclude.

In August 2010 John Hirst, Chief Executive at the Met Office, wrote to Young mentioning, among other things, a ban on recruitment.

“It was good to talk to you on the phone this afternoon. This is to confirm that you are interested in joining us at the Met Office and we are interested in offering you a post.

“As we discussed there are issues of the recruitment ban, terms of secondment and security clearances amongst others but we have both declared an intent to try and get something organised between us.”

Also in August 2010 Diana Chaloner, the Met Office’s Director of Human Resources, emailed IBM on the costs and restrictions relating to the “possible secondment of David Young”.

Her email said: “I will need to get confirmation from John Hirst (our CE) before committing to the costs as outlined below. Whilst I don’t see it as a problem, I do also need to seek a way to overcome external secondee restrictions placed on us by central government recently. I will attempt to get this moving as quickly as possible at this end.”

In another email to IBM in August 2010, Chaloner referred again to the costs of seconding Young. She said:

“Following John’s earlier meeting with David (in his garden!) Alan Dickinson [then the Met Office’s Director of Science and Technology] and I met him last week. John has now spoken to David and is keen to try to progress a secondment. I know David is very keen too, but inevitably, with all the various restrictions placed on us, cost may be an issue, as will enabling the secondment contract to be approved.

“Whilst this might be quite challenging , I think there are usually ways to manage these things, so would really like to understand cost and timing…”

The following month, September 2010, Chaloner emailed Hirst on the need for Young’s appointment to be approved.

Her email has in the subject heading: “IBM Confidential: Secondment of David Young to the Met Office”.  Says the email: “At the moment we cannot give a precise date for David to start his secondment. I did mention in an earlier email that there are some added constraints across Government, and one of those is around recruitment and secondments…”

In October 2011 Hirst emailed IBM about a possible delay in appointing Young. “I am sorry this has taken so long and been more complex than anticipated but the rules of engagement have changed at least twice over the last couple of months and therefore keeping things moving forward steadily has been more difficult. I am still confident we can conclude this although I have suggested to David we might need a weeks (sic) delay in starting … the contracts are signed and sitting in my draw awaiting final clearance of the admin hurdles so there is no decrease in my intent to make this happen.”

On 29 November 2011 Chaloner wrote to Hirst saying that Young’s appointment needed the approval of the Secretary of State. “… The situation is looking very positive but we require final approval from Secretary of State. I was told that there seemed no reason for the secondment not to be approved, but it has to go through the appropriate channels. I can only apologise in the delay in David starting, and continue to nudge it from this end, almost on a daily basis.”

Young was appointed by the end of December 2010. The business case for a new Chief Technology Officer (which became a CIO role) says the secondment from IBM would finish on 31 October 2011. It says there is a “need to bring a professional IT expert into the organisation, to reshape the function in order to achieve greater efficiency in delivery of information technology, as well as ensure it is fit for purpose in the future, hence the need, at this time, to manage this as a short term secondment.”

The Job Description, which is headed “Management in Confidence”, says the IBM secondee will “lead the IT function in the effective delivery of 24/7 IT services and enhance our world leading supercomputing and infrastructure capabilities to secure achievement of future corporate objectives.” The main responsibilities will include directing and co-ordinating 300 information technology, programme/project management professionals, and support staff…”

The job also involves overseeing the “selection, acquisition, development and installation of major information systems”. It further includes the need to “determine and manage all outsourced  external IT service provision as appropriate to meet service level agreements.”

Comment:

There is nothing wrong with the Met Office’s decision to hire an IBM secondee except perhaps that it underlines the reliance of the public sector on its major suppliers.

It’s clear that the Met Office has struggled hard to employ David Young because of his expertise. Nobody would understand the Met Office’s IBM systems better than IBM.

But we have seen evidence from the National Audit Office that suppliers all too often understand customer installations in the public sector better than the civil servants know their own systems. In the case of the NPfIT, auditors had to rely on suppliers to explain what they had been paid and why.

It’s time for the civil service to build up its expertise so that it ceases to rely on suppliers that dominate government IT.

Capita says govt can save billions but frontline cuts are “criminal”

By Tony Collins

Paul Pindar, Chief Executive of Capita, makes the valid point that billions of pounds can be cut from the costs of government back offices without the need for “criminal” cuts to frontline services such as police, libraries, youth centres or healthcare.

The Financial Times today quotes Pindar  as saying: “When you can see local authorities closing libraries, swimming pools, it’s criminal. It’s a political agenda. Billions of pounds could be saved and the public wouldn’t notice the difference.”

He said Capita, for example, could cut £2.5bn from the costs of police IT and human resources, without putting at risk uniformed jobs.

Comment:

Pindar sounds as if he’s making a pitch for more government work, which he probably is. But it’s hard to argue with what he says. Except that the savings can be made by SMEs rather than the big suppliers, like Capita, that already dominate government IT spending.    

It may cost more for the civil service to handle SME contracts rather manage a single large deal – but the savings may be greater through an imaginative use of IT and changes in working practices.

CSC ambivalent on prospects of new NHS IT deal

By Tony Collins

CSC is not quite as confident as it was on new NPfIT contracts

CSC is meeting UK Government officials next month to discuss the company’s £3bn worth of NHS IT contracts. It follows a review of the NPfIT contracts by the Cabinet Office’s Major Projects Authority.

It’s likely officials will discuss a major revision of CSC’s contracts – and possibly an end to them. The Cabinet Office minister Francis Maude is thought to favour termination but the Health Secretary Andrew Lansley, on the advice of NHS Chief Executive Sir David Nicholson, wants to keep CSC in a revised NPfIT.

Recommendations from the Cabinet Office have gone to David Cameron for a decision.

In a conference call yesterday on the company’s first quarter results CSC’s executives said the outcome of the NHS contracts represented an “elevated” risk factor.  But they said CSC is still on target for signing a new deal.

Mike Laphen, CSC’s Chief Executive, said his company has included in its forecasts about $250m [£155m] of NHS turnover until the end of its financial year in April 2012. Any delay in reaching a new deal in September could affect the $250m forecast said Laphen.

He said: “Right now we are assuming that we are still on target with the MoU [Memorandum of Understanding between CSC and the Department of Health]. We are absolutely staffed up ready to execute. We’ve got the products in the delivery pipeline and we believe we have the demand…”

On its NHS work CSC continues to “execute and deliver against our current commitments across primary and secondary care”. CSC’s iSoft “Lorenzo” remains in production routinely supporting daily operations at three early adopter sites.

“We are progressing delivery modules… including emergency care and outpatient prescribing which are anticipated to be installed at the University Hospitals Morecambe Bay once an agreement is reached with the authority,” said a CSC spokesman.

The company told analysts that for its 2012 financial year “there are still a number of large balls still in the air” which include the NHS contract, integration of iSoft and US government spending. “Our business is sound and we have one of the strongest balance sheets in our industry,” said the company.

UK IT market analysts Techmarketview said CSC’s management team “isn’t quite as confident of a positive outcome [on talks over NHS contracts] as it was a few months ago – and rightly so.”

CSC also noted there had been a “significant shift in the market”  from outsourcing to cloud, though with cloud many companies are still deciding “what they’re going to do, or not do”.

MP contacts No 10 and Cabinet Office on CSC’s NHS IT contracts.

BT slammed over NPfIT value-for-money claim.

Was NPfIT really a programme?

Trust forced to buy NPfIT software or face fine

NPfIT has proved unworkable – BCS

Will CSC’s £3bn NHS IT contract be cancelled?

By Tony Collins

Several people have asked us whether the Cabinet Office’s Major Projects Authority will cancel  CSC’s NPfIT contract or whether draft memorandum of understanding between the Department of Health and the supplier will be finalised and signed.

The position is that a deal with CSC has not yet been agreed – and it’s not clear when it will be. Recommendations from the Cabinet Office’s Major Projects Authority have gone to David Cameron, according to yesterday’s Observer.

We’ve also been asked whether the The Major Projects Authority has any authority over CSC’s NPfIT contracts.

In January Downing Street  gave the Cabinet Office a mandate to “intervene” in projects that are poor value for money, have hit delays or are failing. If there’s a dispute between the Major Projects Authority and a department, the Cabinet Office can ask David Cameron for a decision.  So if the Major Projects Authority wants to cancel the CSC NPfIT contract it can – up to a point.

If the DH doesn’t agree, and it probably wouldn’t, it would be up to Cameron, who would probably back the Cabinet Office’s decision. It would then be the DH that dealt with the consequences.

The Major Projects Authority is under a clear-thinking Australian David Pitchford who is understands what goes wrong with big IT projects and why. He reports to Ian Watmore who also has a good understanding.

These are some of the reasons Pitchford gives for failing government IT-based projects:

1.Political pressure
2. No business case
3. No agreed budget
4. 80% of projects launched before 1,2 & 3 have been resolved
5. Sole solution approach
6. No timescale
7. No defined benefits

Most of these apply to the NPfIT.

One view about what should happen is that at least the part of the CSC contract that relates to acute hospitals should be cancelled, and the NHS should be under no further contractual obligation to buy from CSC – that was always an artificial device. CSC should be under no further obligation to deliver to the NHS.

CSC’s obligation has been a means of Whitehall, through CSC, maintaining some control over trusts and justifying a large central team. End that obligation and you don’t need a large central team. Last week’s Public Accounts Committee report on the NPfIT detailed care records systems said that NHS CfH has 1,300 people.

Whatever happens CSC will maintain a strong  presence in the NHS, at least through its purchase of iSoft. Many trusts with iSoft systems are likely to replace them with iSoft – CSC – products. Patient administration systems are huge investments and changing them can be risky.

EC procurement rules mean that trusts will need to go open tender when their existing contracts expire but some will find ways of awarding new contracts to existing suppliers, if that’s their wish.

So CSC’s future in the NHS is assured, whatever happens with its NPfIT contracts.