1. Four Government Scenarios. 2. The UK Experience/Perspective of Managing Reform and Innovation. 3. The New Austerity Options for the next decade

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1 Professor Paul Joyce Director of Liverpool Business School, Liverpool John Moores University

2 1. Four Government Scenarios 2. The UK Experience/Perspective of Managing Reform and Innovation 3. The New Austerity Options for the next decade 4. The Organisational and Local Dimension 15 April

3 Pollitt and Bouckaert (2004) reviewed public management reform in 12 countries. They suggested France, Belgium, and Italy formed a group which emphasised managerial modernization, Finland, the Netherlands, and Sweden - participatory modernization, Australia and New Zealand marketization, Blair s UK government between modernizing and marketizing. They struggle (in my opinion) to explain groups. My own work in Turkey ( ) important differences affecting what could be learnt from UK e.g. motivation for public administration and civil service reforms, Ministers relationship to strategic planning by ministries, etc. So need to understand reforms in context. So, I will concentrate on UK experience and perspective we will need to debate how UK context and other contexts in Europe matter. 15 April

4 Forecast - old modernism future was predicted; Foresight - pragmatic idealism making the future Source: adapted from my presentation to Civil Service Live Conference, London, 8 July

5 Authoritative (expert) Professionalism Responsive Professionalism Performance management state Strategic and enabling state Public Administration - Belief that a responsible and professional civil service is the key to both flexibility and the quality of public services - Professionals are trusted to know best; emphasis is on responsibility rather than accountability - Professionals must be supervised by others in same profession - Interest in developing evidence-based policy making - Codes of professional conduct Public Administration - Professionals consult public and service users to find out their preferences (surveys, focus groups, etc) - Use of quality and customer care programmes - The use of quality circles - The development of complaints procedures - Planning systems in which budgets are allocated after careful assessments of needs - Ombudsman systems developed as a back up to internal complaints procedures Public Administration - Line management, clear objectives, and competent civil servants are seen as key to efficient public services - Outsourcing to the private sector is used as a cost reduction measure - Use of performance management systems and performance Indicators - Development of resource management initiatives, management information systems, and performance budgeting - Organizations subject to Inspection systems, audits, and special measures for failing organizations Public Administration - Strategic planning and community planning and innovation are used to identify and pursue priorities of the public - Ministries headquarters are slimmed down - Government seeks to empower the public (as citizens, as members of the community, and as users of public services e.g. user choice of provider) - Interest in development of strategic commissioning systems - Financial systems designed to empower service users 15 April

6 Authoritative (expert) Professionalism Responsive Professionalism Performance management state Strategic and enabling state Civil Service Civil Service Civil Service Civil Service - Modern strategies on HR, workforce planning, recruitment, reward and retention - Commitment to merit based HR systems - A professional infrastructure is developed for all civil servants - Professional education modified to encourage listening to clients and their preferences - Customer care training programmes and development of expertise in quality management - Training budgets are focused on developing competency so that individuals work in line with roles and standards - Incentive payment systems are attractive but depend on capability of managers to operate properly - Leadership development is a priority - Talent management systems - Strategic thinking skills and can-do attitude fostered among senior civil service grades prized 15 April

7 Source: Strategy Unit April

8 Next Steps Agencies 1988 Overview of Key Steps in Modernising Public Services in UK Public Service Agreements & Spending Reviews 1998 Invest and Reform Strategy (e.g. 10 year NHS Plan) 2000 Focused & agreed set of national priorities and performance targets for public services Department 5-year strategies produced as part of modern view of enabling government (strategic direction) Capability Reviews carried out for government departments Skills Strategy and Civil Service profession -nalisation Local Strategic Partnerships, Local Area Agreements, Comprehens -ive Area Assessments, Children s Trusts etc [local public services} Source: Joyce, P. Leadership and Strategic Management for the Public Services.(Draft) 15 April

9 Minister Minister Department responsible for both policy support and execution Minister gets policy support from department centre Chief Execs of Agencies accountable for Key Performance Indicators Permanent Secretary Structural Reform Chief Exec Hierarchy Chief Exec Chief Exec Next Steps Agencies responsible for delivery Source: Paul Joyce (forthcoming) Leadership and Strategic Management for the Public Services. 15 April

10 Key attributes 1. Strategic priorities were based on the top concerns of the public. 2. Attention was paid to creating a consensus in the heart of government on the top strategic priorities. 3. Capability was created in the centre of government to monitor progress on the strategic priorities, to help departments deliver the priorities, and to report progress to the public. 15 April

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12 Key attributes 4. The Government created capability in strategic policy making by setting up the Prime Minister s Strategy Unit in The 5-year Departmental Strategies published in the summer of 2004 were politically owned by the cabinet they were not simply rubber stamped by ministers in the cabinet. 6. The 5-year Departmental Strategies of 2004 were tools to make reforms in public services systems of health, education, criminal justice, etc 15 April

13 The year strategies which were produced by all departments were largely shaped or set by the Prime Minister and his No. 10 Downing Street organisation. They were also informed by concerns of the Chancellor. Ministers were key actors in the formulation of the strategies-most particularly the Prime Minister. The Cabinet owned them. The importance of these 2004 strategic plans was achieved despite weaknesses in organisation and process (for example, Comprehensive Spending Review was a separate process). The process of producing strategies that occurred in was in effect a process of preparing New Labour's manifesto for the general election of April

14 Publication/release dates: Health 24 June 2004 Education 8 July 2004 (Comprehensive Spending Review statement to House of Commons on 12 July) 15 April

15 In May 2004, Blair s [Prime Minister] focus was on the culmination of the five-year strategy process. Increasingly confident of delivery in the short term, he was now looking forward to irreversibly changing the public services so that, as he would put it, they could become selfsustaining, self-improving systems (Barber ) (Emphasis added) 15 April

16 Key attributes 7. The 5-year departmental strategies developed by the Cabinet contained performance targets from Public Service Agreements and were funded by budgets decided by the Comprehensive Spending Review both of which were developed by the Treasury. 8. The Prime Minister s Strategy Unit (PMSU) helped to develop strategic policy making capacity in the departments, with which they co-operated. 15 April

17 Key attributes 9. Capability Reviews were carried out for all departments in 2006 and 2007 they were focused on leadership, strategy and delivery skills of the senior civil service and were followed up by plans to develop departmental capability. 10. The Policy Review process begun in late 2006 and continuing in early 2007 identified the importance of the model of the strategic and enabling state which has important implications for the roles of central agencies in the reform process. 15 April

18 Source: PMSU April

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21 Political High Mutualist Governance Pressures Created by Compromiser Need Accommodator Volatility Posturer Low Bureaucratic Competition Low High Political Pressures Created by Fiscal Stress Source: Paul Joyce (1999) Strategic Management for the Public Services. OU Press 15 April

22 3 Strategic Options (not mutually exclusive) 1 - review and redefine the relationship between the individual and the state 2 devolve decision making to local public services with minimal oversight by central government 3 better horizontal collaboration across government and public services 15 April

23 Performance Strategic management process Develop change management and resource management capabilities Involve public and develop partnership working Time Source: Paul Joyce (2000) Strategy in the Public Sector. Wiley NB: Graphic interpretation of case studies of innovation in small local authorities serving populations of less than 175, April

24 Increasing strategic ambition of local partners Tax & Spend Model Community strategy is only for partnership programmes funded by central government (i.e. strategy could be seen as non-core activity) Integrated Model Strategy for all activity of all public-sector partners (all local public sector resources support community strategy) Enabling Model Strategy for catalysing change in private, voluntary and public sectors - Non-budgetary problem-solving interventions (governance) Capability, Capacity and Culture Performance Management Figure: Models of Community Strategy for Local Public Services Strategic Direction Note: This diagram inspired by figure in Michael Barber s book Instruction to Deliver (2007). 15 April

25 1. Barber. M. (2007) Instruction to Deliver. London: Politico s. 2. House of Commons Public Administration Select Committee (2007) Governing the Future. Second Report of Session Volume II. HC 123- II. 15 April