27.06.16
The demands to deliver more for less
Mike Gill, a partner at management consultancy Libre Advisory, and best-selling author of How to Survive Austerity, on why the public sector (as well as politicians) must become better at presenting itself in a way that is truly meaningful to the public
Just deliver more for less. Sounds easy enough doesn’t it? But as we all know, it’s one of the toughest challenges our public sector has ever faced.
Having worked with public sector organisations for over 20 years I genuinely believe the current austerity measures are unprecedented, fundamental and will change public services forever. And I've seen a few efficiency rounds in my time!
Many organisations I am working with are quite simply running out of options and over the next six to twelve months, the public will be surprised to discover things they've grown accustomed to will no longer be around. It’s also understandably having a huge impact on public sector workers. Only last week a Unison report Under Pressure, Underfunded and Undervalued revealed that 73% of council workers reported rising stress levels and nearly two-thirds of staff think moral has declined in local government in the last 12 months. Hardly surprising all things considered.
Yes, of course there are better ways we can use our resources. All of us. But who could genuinely say they could maintain their lifestyle with 30%-40% less income. Probably only a few of the more fortunate, profligate or those happy to declutter from the fripperies we take for granted. So these are hard times and real pain has yet to be felt by the public.
Even those budgets that were lucky enough to be "ring-fenced" in the last budget have challenging efficiency savings. The Treasury's neat packaging and presentation of public spending targets wrapped around deficit reduction did the trick. The somewhat muted (some would say no existent) wrath of opposition to public spending cuts is now pretty much forgotten. Much water, both nationally and globally, has flowed under the bridge. You cannot argue with the mantra that spending must reflect changing global circumstances. And boy, are circumstances changing globally.
I’m currently working with a number of local authorities and NHS bodies in primary and secondary care that really are at the sharp end of reducing budgets. Some of those organisations are working though the implications of up to 30% less resource this year and next. The years after don't get a lot better frankly. And yes, there are indeed many ways that efficiencies can be delivered. And yes, managers working in these organisations are indeed up for the challenge. But just take a moment and think about the impact of just about every public body doing that in the coming year or two. Think about what that means for our public services and what that means for the people at the sharp end of those services.
Now I have been around public services quite a while. In fact, I shudder when I recall the many efficiency initiatives I have been involved in. But working with my clients and talking to organisations who are not indicates to me this initiative is something very different. This one is pretty scary. And I don't scare easily. And if I find it scary, then just imagine what is going through the heads of managers seeking to make these changes. The trepidation and even fear is evident in a way I have never seen. And whilst we often come up with our greatest innovations when our backs are up against the wall, I worry about the impact of that sustained fear on the wellbeing on the average public service manager.
In working with my clients, it is evident there are many opportunities to be more efficient, to look for synergies between services, streamlining, greater use of digital wizardry, better processes, sharing services and assets. We are starting to see and feel the impact of joining things up across the new NHS England, the Community Empowerment Act in Scotland and local authorities granted more power to tackle local agendas by agreeing to combine functions in exchange for additional funding.
Clearly innovation is the key factor but as the recent EU Referendum demonstrated, the public sector (as well as politicians) must become better at presenting itself in a way that is truly meaningful to the public. Applying innovation is all very well but we must ensure the public and stakeholders to decide if services are offering good value for money. It’s very much about getting the public to cherish your services. Loving them may be a step too far but aim for innovation in efficient and cherished services and you are well on your way to success.