Public Sector Reform ( “modernisation”)

1997 – 2009

The emergence, development and convergence of performance

management regimes across locally delivered public services

Pete Murphy

4 parts to presentation

• Short introduction background and context – policy agenda, and the geographical and historical context

• The wider public sector reform and modernisation agenda since 1997

• The role and development of performance management regimes within this agenda – with particular reference to the Local Government regime

• The latest versions and recent developments and innovations in the Local Government performance management regime

• (Comprehensive Area Assessments)

1. BackgroundUK : Governance and Geography

• National Agenda – England, Scotland, Wales and Northern Ireland (policy imperative – devolution from an over-centralised state)

• Regional Agenda – establishing and rationalisation into 9 Standard English Regions (policy imperative – acknowledging and reconciling to th existence of a regional agenda not least in the context of the European Community )

• Local - 115 Unitary; 35 County, 238 District, approximately 10,000 parishes – the challenge of continuously improving delivery of public services and the outcomes for citizens and communities

Historical Background – Public Policy

• 1945 - late 1870’s/early 1980’s Local/Central Government relationship and the doctrine of “political balance”

• From early 1980’s - competition and CCT introduced more business discipline - the “market” dominated

• From mid 1990’s the emphasis on efficient effective and economic delivery - the dominance of “outcomes”

The “paradigm” common assumptions or conventional wisdoms prior to the

Mid 1990’s• Emphasis on the Individual as “consumer” rather than citizen –

there is no society

• Individual organisation and agencies expected to take specific responsibility – eg police being held to account for crime

• Political and Governance arrangements becoming increasingly centralised Control and Power

• Explicit and increasingly “contractual” basis for inter-authority relationships

• Programme based delivery

• Competition as a driver of improvement and outsourcing of delivery mechanisms (privatisation)

Post 1997 The Modernisation Agenda in

Central and Local Government

• Collective and Public Interest (the latter no longer assumed to be synonymous with private interest)

• Devolved Control and Subsidiary

• Collaborative Relationship between parts of government

• Outcome based “joined-up” action

• Fit for Purpose delivery mechanisms

Modernising the architecture and oiling the machinery of Government

• Understanding change and the need for co-production of policy development and delivery effectiveness – the what as well as the how being considered as part of the policy process

• Integrating Central Government and “Whitehall” – the effectiveness of a single voice/message

• A new and better relationship, mutual understanding and respect between National and Local Government

• Developing the Regional dimension and agenda – underdeveloped because of relationship with EU the regional

• PSAs, Cabinet Committees and Structural change in delivery organisations

A New Purpose and Role for local public services

• Providing “Citizen Centred” and/or personalised services and activities

• Promoting inclusive cohesive communities with service providers responsive to communities needs

• The optimal efficient, effective and economic services that are provided by “fit for purpose” delivery vehicles

• Councils and politicians that provide “community leadership” rather than organisational leadership

Philosophical Underpinnings or a new paradigm

• Rediscovery of “Society” and the appreciation that public services can and should create “Public Value”

• Changing the nature of the Central/Local Government Relationship - from “political balance” to “spending the publics money” efficiently, effectively and economically.

• Changing assumptions of Local Authorities and (some) other Public Agencies as being generally competent but with citizen rather than provider supremacy

• Changed the objective and ambition of government - to “continuous improvement” in all services in all public authorities and agencies.

Philosophical Underpinnings (cont)

• Appreciating the need to address both single and multi-agency problems and issues in local communities.

• Appreciate that Central Government should be part of the solution - at times it can be seen as part of the problem.

• Develop effective interventions, - change the nature and type of engagement with under-performing agencies

• Underpin with a “fit for purpose” and sustainable tax and finance regime.

• Move from competition to collaboration as the basis of public service delivery – designing collaboration into the delivery system

The “Tipping Points” or step changes in the improving

Central/Local relationship

• The establishment of Central/Local Government Partnership (1998)

• The results of the first round of LPSA negotiations (2002) and “Invest to Save” Rounds 1 & 2

• The review of the Gershon Efficiency savings programme (CSR 2004) across all the major public sectors

• The Prime Ministers Delivery Unit report on the first LAA’s (Feb/March 2007) – from margins to mainstream

The Central/Local RelationshipA new constitutional settlement?

• Some clarity and stability in expectations

• Appreciation of mutual democratic legitimacy but joint recognition of the need to re-engage the public (and in particular hard-to-reach groups) in the democratic process

• Partnership and collaboration but with a citizen centred focus and joint objective of quality services

• Open and Transparent operations with public accountability

• Strong and active local democracy

Government’s Overall Objective for Local Government

Transformation of local Government to• An outwardly looking; customer focussed; efficient and effective

network of organisations, working in an openly transparent and democratic manner on behalf of communities to meet community defined needs and aspirations

From (presumably)• An inward looking; process or service provider driven, inefficient

individual organisations working on behalf of their own organisational self preservation (officers and members).

Local GovernmentModernisation Initiatives

• Power of Well Being• LSP’s and Community

Leadership • Community Strategies• New Political Structures• Best Value, CPA , LPSA’s

and LAA’s• New Ethical Framework• E- Government• Finance and Tax

• Legal Parameters• New Vision drawn from

Community• Objectives & Priorities• Quicker Decision Making• Efficient/Effective/Economc

Service Delivery• Probity & Openness• Innovatory delivery• Sustainable funding regime

How it fits together• A new legal framework for Local Government - to promote

flexibility and innovation

• Community engagement through LSP’s to provide a wider vision - serving and responding to community aspirations

• Community Strategies - a new type of co-ordinating plan for all local stakeholders

• Best Value - efficient and effective delivery of the councils own services and activities

• New constitutions - more effective decision making structures quicker and more robust decisions

• Investment and support - both financial and non financial (particularly E-Government)

General Policy Directions illustrative examples

• Crime and Disorder - Prevention and Diversion as well as Detection and Incarceration

• Health - Healthy Lifestyles and individual and general Well Being as well as Clinical Intervention

• Avoiding the need to travel as well as alternative transport modes

• Waste minimisation as well as collection and recycling

• Vocational Education, social inclusion and attainment as well as academic excellence

• Increasing sporting participation as well as winning medals

Moving on

• Continuous improvement allied to local priorities - and the holistic view of local governance.

• Moving from “Targetry” to “what matters is what works”.

• Moving from “What gets measure gets done” to “count what counts - not what can be counted”.

• Greater accountability and collaboration in spending the public’s money - measuring collaborations.

• Citizen centred services - what is it like for the public

Why look at

Performance Management Regimes?

The 4 key (and continuing) “drivers” of change in local public services

• Performance Management Regimes in public services – Best Value to Comprehensive Performance Assessments (CPA) to Comprehensive Area Assessments (CAA) - the improvement imperative

• Inter-Agency Collaboration across public and voluntary services – LPSA to Local Area Agreements to Multiple Area Agreements

• Continuing Financial and Budgetary pressures - the need for productivity gains – CSR’s in 2002/2004/2007

• Rising Public Expectations – Improved more socially responsible public services central to the foreseeable political agenda

Development and Alignment of

Performance Management Regimes across the Public Sector

• Common financial frameworks for Local Authorities, Health, Police, Criminal Justice, National Parks, Fire and Rescue Services (and ultimately all local delivery organisations?)

• Multiple Agency and Authority collaborations (LAAs and MAAs) assessed through the CAA assessment and related frameworks as LAA’s are mainstreamed.

• Fit for purpose individual assessment frameworks for individual sector or service assessments but measured against universal, comparable and quality assured standards

The Development of the Local Government Performance Management

Regime• Top down centrally driven to regionally or locally driven to self

driven

• “Data Poor” to “Data Rich” to “Intelligent Data” to “Self Regulation”

• Delivering individual projects and programmes to delivering wider improvement to developing sustainably improving public sector organisations

• Treating symptoms to treating causes to avoiding causes developing.

• Public Administrative Law - the incorporation of Human Rights

• Public Service Improvement via an Organisational Developmental approach

The current generation of Assessment Regimes

The predominant characteristic of the current generation of Public Sector Performance Management Regimes is their convergence

• Comprehensive Area Assessments (CAA) for Local Authorities

• World Class Commissioning (WCC ) for Health Sector

• Area Policing and Community Safety Assessments (APACS) for Criminal Justice

Convergence of Assessments

•A common evidential base (e. g. JSNAs) – for the Sustainable Communities Strategy; for the LAA; for the PCTs 5 Year Commissioning Strategy; for the Local Development Framework; for the Children’s Plan, etc

•A common focus on Outcomes and agreeing key priorities for an area - Assessing the organizations and assessing the outcomes or impacts of organizations individually and collectively on an area

•A big common denominator or focus is the centrality of the Local Area Assessment and its key objectives and priorities in all these assessments

Development of New Public Sector Performance Management Regimes

• Audit Commission/ 6 Inspectorates – February publication of Comprehensive Area Assessment framework (CAA)

• Home Office – next stage consultation on Area Policing and Community Safety (APACS) overdue

• Dept of Health – NHS Operating Framework – World Class Commissioning (WCC) – 1st panel assessments published Feb 2009

• Published Feb 2008 (for implementation 1st April 2009) - “Use of Resources Assessments” – the financial framework for all Local Authorities; Police Authorities; PCT’s and Fire and Rescue Authorities

Public Money and the Use of Resources

•1st generation (2002) – reporting and financial accounts – different frameworks – apart from internal audit and publication of accounts – concentrated on the use of money or liquidity

•2nd generation (2005) – Use of resources rather than just financial allocations to services - alignment made on the same 5 key areas of assessments with the Auditors Local Evaluations in Health

•3rd generation (2008) – Exactly the same assessment regime applies to Local Authority, PCT, Police, Fire and Rescue etc all based on Value for Money

The government is systematically “designing in” collaborations into

delivery systems

Nationally • The CSR 2007 PSA’s

• New LAA’s/MAA’s

• The Duty to Co-operate

• The Duty to Inform

• The performance management regimes (WCC, CAA, APACS)

Locally• Local Strategic Partnerships

• New LAA’s/MAA’s

• Local Service Boards

• Identifying and maturing key collaborations

• Fit for Purpose and “future proofing” collaborations

All Major Capital Programmes

Office of Government Commerce (OGC) - Programme and Project Management (PPM) Gateway Review process now covers:-

•Education – new and improved schools eg Building Schools for the Future programme

•Health – Health Centres and hospital buildings built through Local Investment and Finance Trusts (LIFT) Schemes

•Central Civil Government capital schemes – all major construction and IT programmes such as the Olympic games

•All major Ministry of Defence schemes – submarines, warships weapons programmes

Comparing Levels of Performance

• CPA for Local Authorities - 9 County and Unitary Authorities in East Midlands – 2007

• Direction of Travel (progress) and Use of Resources (financial management) for 36 District Councils – 2007

• Health Trusts - Winter 2006 Healthcare Commission Results (9 PCTs 8 Acute/Hospital Trusts; 5 Mental Health Trusts and East Midlands Ambulance Trust

• Police and Community Safety - 5 Constabularies and 43 Crime and Disorder Reduction Partnerships.

• Fire and Rescue Services - 5 Services

East Midlands Results 2002-2004

CPA Score (where 5 = excellent, 1 = poor)

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The Future - in general• Performance Indicators and measurement - Objective, Absolute

and “Accepted Standards” based

• Inspection regimes - based on improvement (OPSR), Integrated: Proportionate and Area-based

• Fit for Purpose delivery organisations - Local Government Re-organisation of two-tiers - Mayors and constitutions.

• Duties and Responsibilities - multiple and several responsibilities and Individual Statutory officers

• Local Strategic Partnerships, Local Area Agreements and Public Service Boards - tackling the wicked issues

• Intervention; Capacity Building; Innovation and Freedoms and Flexibilities