Select Committee on Public Administration Memoranda


Memorandum by the Cabinet Office (CSE 11)

Introduction

  1. The UK Civil Service is an asset to the nation. No other organisation deals with so many issues of such importance. The values and skills of those who work within in it are envied across the world and we have much of which to be proud. But we are not complacent and we recognise the need to further improve our performance in a rapidly changing environment.

  1. The Government has set a challenging agenda for reform of the public services with the aim of delivering high quality services, universally available and tailored to the needs of the individual. Delivery of this is the Civil Service's most important task and greatest challenge. This paper places our programme for developing the Service's skills and abilities in that context.

  1. The sections below look at the roles of the modern Civil Service, and how it assists the government in its objectives for public services. Given those objectives, the paper examines the strengths that the Service currently has, the areas where progress is needed, and how we are tackling these. The paper is intended to inform the inquiry being undertaken by the Public Administration Select Committee into the effectiveness of the Civil Service.

Public sector reform

  1. An understanding of the enormous programme of public service reform envisaged by the Government is key to understanding the tasks facing the Civil Service. The Prime Minister set out his agenda for delivering universally high standards in public services through the provision of greater choice some time ago. Underpinning this has been the setting of high, national standards alongside the investment to deliver them. Flexibility in service provision and devolution of responsibility are further, key principles.

  1. A great deal of progress has already been made. Hospital waiting lists have fallen dramatically. In education, literacy and numeracy have improved substantially. The percentage of 11 year olds achieving Key Stage 2, Level 4 or above in Maths and English has risen from 62 and 63 per cent, respectively, in 1997 to 74 and 78 per cent in 2004. Levels of crime have fallen too. The latest results from the British Crime Survey show that since 1997 domestic burglary has fallen 45%, vehicle crime has fallen 42% and overall crime has fallen 32%.

  1. The Prime Minister has now set out his plans to accelerate progress, in particular by focussing further on choice and devolution. The principle of devolution has previously been understood to mean power returning to service providers, rather than citizens and customers. The key theme of this new phase is therefore to put people at the heart of public services. This means citizens and customers receiving services focussed far more clearly around their needs, and in return taking on more responsibility for the way they use them. The aim is to deliver services tailored to the diverse needs and preferences of every individual, through the public servants they come most directly into contact with - GPs, teachers, case managers and so forth. Those receiving services will get more relevant, reliable and timely information so that they are better able to make decisions, and service providers will receive incentives focussed on improving the experience their customers have.

  1. The principles underpinning this phase of reform are:

  • Greater choice and personalisation. The exercise of choice, supported with better information, is a great driver of improved quality for all.
  • A continuing focus on standards. Clear national standards will continue to be central, but greater emphasis will be placed on what matters to customers.
  • Stronger personal and local accountability, with a greater engagement by the public in local service issues.
  • More flexibility, with greater freedom for local professionals and managers to develop workforce roles appropriate to the needs and requirements of service users
  • A more diverse and vibrant capacity for public service provision.

The function of the Civil Service

  1. The Service's overriding function is to assist the Government in achieving its objective of delivering better public services by:

·  developing strategic and creative policies;

·  designing and delivering services focused on the user directly or with partners in the public sector;

·  using public money efficiently; and

·  reflecting fully the society it serves and remaining faithful to its core values.

  1. In the continuing reform of public services, the Civil Service is key. Civil servants are a vital link in the chain that reaches from Ministers setting out the policies on public services to the individuals that receive them. Many Departments are the leaders of public services - for instance the Department of Health and DfES. In other Departments, civil servants are themselves providing public services, in Job Centre Plus, tax offices, or agencies like the Land Registry. All civil servants therefore face the challenge of enabling and supporting front line delivery. The Civil Service also needs to lead the way in delivering services more efficiently.

  1. The reform programme we are putting in place is designed to ensure that it has the rights skills and structures for these tasks. At the same time it meets the challenges of the environment in which we work, responding to the opportunities and challenges of new technologies, more, faster communication, new threats to security and the growth in public expectations.

Civil Service reform

  1. The primary focus of this document is the reforms we are putting in place. But it is important not to lose sight of the qualities we already have, and must retain. We have a strong set of enduring values:

  • Integrity
  • Impartiality
  • Honesty
  • Objectivity

  1. It is vital that these values are maintained - it would be easier to lose them than to regain them once lost. Other countries envy the Civil Service's adherence to these values. Similarly, it is important that we continue to draw on the Service's traditional strengths of strong intellect, the smooth and efficient management of government business and provision of policy advice to Ministers that takes account of many different, and often competing perspectives. We need to build on these traditional strengths, and the enduring values, to embed the skills, behaviours and experiences needed in the current environment.

  1. We are not attempting to do this from a standing start. The Civil Service already contains many examples of people demonstrating those skills and behaviours that will become the norm. It is also ensuring that people with the right skills and experience are being brought in at the right levels. One in four Board level posts are now filled by external candidates. This is already producing results. We are further advanced in setting, monitoring and delivering on targets than any other Government in the world. No other country produces regular, web-based reports on departmental performance against Public Service Agreements (PSAs)[1]. These are now the focus of departmental activity and form the cornerstone around which Departmental business plans are set. We are now seeing real progress across the Government's priority areas.

  1. Health is a good example. Across the National Health Service, waiting lists are continuing to fall. The 2004 target of a maximum 9 months wait for surgery has been met. The major challenge, which is that no one should wait more than 6 months by December 2005, is on track. Deaths from cancer and heart disease are also falling. Respected independent organisations confirm that progress is being made. The King's Fund, for instance, states that 'waiting times are generally shorter than at any time in the history of the NHS'[2]. Of course, these achievements are a testimony to the hard work of public service workers as well as the Government's firm focus on improving these services.

  1. We are already embracing the opportunities (and challenges) of new technology to deliver reformed public services. NHS Direct, for instance, provides a 24-hour telephone clinical advice and health information service. In 2003 the service handled 6.5 million calls and enjoys a regular user satisfaction rating of over 95%. NHS Direct also operates an on-line health information service which routinely receives over 500,000 unique visitors every month. A version of this service was launched through digital television in December 2004. In May 2002, NHS Direct on-line was awarded an e-Europe, e- Health award by the European Commission.

  1. A further example is the delivery by the Driving Standards Agency of an online channel to book practical driving tests. In the first year take-up has increased steadily so that now nearly 30% of practical test bookings are made online (around 40,000 online bookings a month). This builds on earlier work by DSA and their outsourcing partners to put theory test bookings online the previous year - for which take-up has now reached nearly 40%.

  1. Finally, the Jobcentre Plus Implementation Programme is an example of good PFI procurement. The programme used existing PFI contracts with EDS and BT Syntegra to deliver the IT enabled elements of change. This included the IT Partnership Agreement with EDS which provided a strategic partnership and flexibility to deliver the individual components of the programme. The project has delivered the agreed number of sites on time and on budget with the roll out of modernised facilities now having passed the halfway stage.

  1. So we have already come a long way. But we need to consolidate the skills we already have, and develop other areas further. Our aims are:

·  stronger leadership at the top of the Service;

·  improving everyone's professional skills;

·  improving our ability to deliver programmes and projects;

·  working differently - focusing on what needs doing and doing it well.

Leadership

  1. We will only deliver reformed public services, and a reformed Civil Service, with strong leadership. Last year, the Civil Service Management Board developed a new leadership vision for the Service. This vision emphasises the need to:
  • move away from negative stereotypes of being risk averse and having outdated processes;
  • build on traditional strengths, such as integrity, dedication and responsiveness to events;
  • combine these with new approaches, such as a focus on outcomes, rigorous prioritisation and risk management;
  • to create inspirational, visible leaders taking personal responsibility for delivering results effectively and swiftly, working in teams which are more than the sum of their parts.
  1. We have launched a programme of work - Improving Leadership Capacity - to fulfil this vision. It focuses on three key areas:
  • more active performance management for the SCS, with a simplified process using better evidence, and a more systematic approach to improving the lowest performers;
  • increased investment in leadership development including a new high potential development scheme that identifies, and provides tailored development activities and career management support to, SCS staff with the potential to rise quickly to Board level; and
  • more active career management, including the introduction of time-limited postings for the SCS. The new 4 year norm for postings will ensure that people are staying long enough in post to see through the delivery of longer-term objectives; but that talent is refreshed.

Professional Skills for Government

  1. The second element of the reform agenda is development of professional skills and expertise in every area of the Civil Service. The Civil Service Management Board (CSMB) agreed a new framework for professional and skills development in the Service in June this year. This framework introduces three broad categories that will provide greater focus for civil servants' career development. The categories are:
    • Policy expert: This includes people who develop policy and ensure - in partnership with others - that it is delivered on the ground, and those with specific expertise (eg economics) who contribute to the policy-making process.
    • Operational Delivery: This covers people who deliver service direct, for instance those with expertise in customer service, design of services, and management of large-scale operations.
    • Corporate Services: This covers the corporate services that mean an organisation functions successful - finance, human resources, procurement, ICT, communications. We have tended to rely on bringing in new talent to stay up to date in best practice in delivering these services. We now need a longer-term solution to grow our own talent alongside external recruitment.
  2. This approach recognises that the success of an organisation requires high quality input from all three areas. Members of successful organisations need not just a high level of competence in their primary area of expertise, but an understanding of the work of others within the same organisation. CSMB is also clear that there should be parity of esteem across all three categories, so that people can reach the most senior positions through a variety of routes, and that the best talent that we recruit can contribute to all three strands.
  3. The Professional Skills for Government programme recognises the skills of the professionals that we already have - lawyers, economists and so forth, many of whom are already operating at a very high level of expertise. We want to make sure that these professionals continue to do this, whilst ensuring that they are able to develop (as many already do), the skills to enable them to move to more senior positions.
  4. The programme is also intended to establish clearer career paths by being more explicit about the development and experience we expect people to gain. We will establish core requirements at key levels of the organisation - entry to Grade 7, entry to the Senior Civil Service and at Board level in the main departments, covering:
  • leadership/management.
  • subject-specific expertise and experience relevant to a particular professional category.
  • experience of or exposure to work in the other professional areas.
  • business skills (including programme and project management).
  1. Although these standards will only initially apply at relatively senior levels, the need for professional skills applies throughout the Service. Highly professional customer management skills are as important in a local tax office or Jobcentre as excellent strategic and analytical skills are in policy expert functions in Whitehall. We are working to set up a Sector Skills Council for Central Government, which will be identifying current and future skills gaps and priorities at all levels in the Civil Service.
  2. It will be important that the framework described above is sufficiently flexible to work within departments with different priorities and business needs, whilst bringing greater consistency and rigour across the Service as a whole. CSMB is seeking views from Departments and their staff on how best to make this happen.

Delivery

  1. As well as improving civil servants' skills, we are changing the way we think about the policy process. This means thinking about policy development and the delivery front line services as points along a chain.

  1. Departments are therefore taking steps to shorten the chain of delivery between Whitehall and front line service providers. An important part of this process is the action being taken to create smaller, more strategic departments. The Department of Health, for instance, has reduced the size of the core department by 38% with half of that reduction being achieved by moving people into front line. At the same time, they have halved the number of arms length bodies. Similarly, DfES have reduced the size of the Department by 30%. Other Departments are taking similar steps, following the efficiency review described further below.

  1. Departments are implementing other ways of better enabling and supporting front line delivery. The DfES, for instance, have been working up the notion of a 'single conversation' with schools, to be delivered by experienced former head-teachers. The Department has also been working with OFSTED on ways to scale back on inspections. More generally, we recognise that inspection and external review can play an important part in improving public services. The Cabinet Office and HMT are working jointly with Departments to ensure that the role and expectations of independent inspection are clearly set out, and to achieve greater consistency of approach, a more strategic focus, greater streamlining of activity and a reduction in burden on the front line.

  1. We are also introducing a range of tools and techniques to improve focus on delivery. For instance, each Department now has designated Delivery Priority Leaders using a series of performance management techniques developed by the Prime Minister's Delivery Unit. Officials are encouraged to undertake regular visits to the front line, and to work more closely with delivery partners outside Government.

  1. Programme and Project management skills are absolutely essential to delivery. This is why one of programme and project management skills are an important part of the core requirements for progression within the Service described in paragraph 24. We have already established a Programme and Project Management (PPM) specialism which has 1500 members forming a community of professionals to network and share best practice through workshops, conferences and dedicated websites. It has already made an impact by identifying appropriate qualifications and defining career principles, which programme and project management professionals may wish to follow.

  1. Work is underway with Heads of Centres of Excellence and the HR function in departments to support the implementation of skills development strategies and workforce planning to help improve PPM capability and capacity.

Efficiency and relocation

  1. In July 2004, the Government accepted the recommendations of Sir Peter Gershon's review of public sector efficiency. The Government had previously accepted the recommendations of Sir Michael Lyons' review of public sector relocation. The two reviews are being implemented together.

  1. The immediate objective is to release £21.5bn of resources annually to front line public services by March 2008. There will also be a gross reduction of around 84,000 civil service posts, an increase of about 250,000 front line public service jobs, and relocation of over 20,000 public sector posts outside London and the South East by 2010. In addition, following a further, and separate, exercise by Sir Michael Lyons', £30 billion of public sector assets will be released by 2010. The long run aim is for efficiency to become fully embedded into public sector culture.

  1. Departments have prepared plans on how they will implement their efficiency commitments, working with the wider public sector (local authorities, the NHS and the police). Proposals on how progress will be measured were published by departments on their websites during autumn 2004.

  1. The Office of Government Commerce (OGC) is monitoring implementation, reporting regularly to the Prime Minister and Chancellor. OGC is also developing change agents (experts with previous experience) to speed up efficiency related reform. For example, the e Government Unit has taken on a role to promote more efficient and effective transactional services, while OGC itself is promoting smarter procurement, working with others (such as local authority Regional Centres of Excellence).

  1. Efficiency gains are already being delivered. The Department of Health, for instance, is making savings of £370m per year on branded medicines, following an agreement with pharmaceutical companies. The Department of Work and Pensions has reduced its workforce by over 6,000 already, and around 4,000 public sector relocations will have taken place by April 2005.

Diversity

  1. If we are to deliver customer focussed, more personalised public services, the Civil Service itself needs to be representative of the population it serves. In fact, the Civil Service as a whole already broadly achieves this in terms of gender and ethnicity: in April 2004, women made up 52.3% of the Service and 8.1% of staff were from minority ethnic backgrounds[3]. Staff with a declared disability made up 4.3% of staff, and although this is lower than in the economically active population, we know that there is under-reporting in this area.

  1. However, there continues to be under-representation of these groups at senior levels, though we have made significant progress. In April 2004 24% of those in the very top management posts were women, and 28% of the Senior Civil Service as a whole (up from 13% and 18% respectively in 1998). 3% of SCS staff were from a minority ethnic background and 2.3% were disabled (up from 1.6% and 1.5% respectively).

  1. These figures suggest that we are on course to meet the 2005 targets for women in top management posts (25%) and for minority ethnic staff at SCS level (3.2%). However, it is unlikely that we will meet the targets for women in the SCS (35%) and for disabled staff at SCS level (3%). To ensure that we accelerate progress, we set new targets for 2008 as part of the 2004 Spending Review. By then 30% of top post holders, and 37% of the SCS as a whole should be women, 4% of the SCS should be from minority ethnic backgrounds and 3.2% should be disabled people.
  2. We are taking a number of actions to deliver these targets:
  • We have launched a new network of diversity champions across Whitehall, intended to strengthen accountability for diversity action and ensure good practice is learnt across Departments.
  • We are evaluating the effectiveness of the schemes we have in place to develop minority ethnic and disabled staff for the SCS with a view to re-launching them next year.
  • Departments have been asked to set themselves challenging new targets for 2008. Some have already set targets significantly above the PSA described above - for instance the Department of Health has set a target of 8% of its SCS to be from a minority ethnic background by 2008.
  • We are improving the statistics we hold on disabled staff.
  1. To ensure that there is proper focus on the targets, Sir Andrew Turnbull appointed a new diversity adviser earlier this year (Waqar Azmi). His action plan is yet to be finalised, but is likely to address:
  • Diversity awareness at senior levels;
  • Action to increase the diversity of external candidates for senior level positions;
  • Further action to bring on staff from under-represented groups. This will include mentoring of staff from under-represented groups by high potential SCS staff. We also need to find ways to increase representation in the feeder grades to the SCS.

The relationship between the Civil Service and the wider public sector

  1. The delivery of public service reform clearly requires a close relationship between the Civil Service and wider public sector. We are already putting in place structural changes to help achieve this - for instance in the creation of smaller, more strategic central departments with some people moved out closer to the front line. This needs to be supported with clear lines of responsibility between the centre and front line services. This does not mean creating one large and unwieldy organisation to design and deliver all public services. Such a step would be costly, disruptive and reduce flexibility and responsiveness. It would raise major questions about the operation of local democracy - how, for instance, would locally elected politicians influence service delivery in their areas?

  1. Nonetheless, public sector organisations must share best practice to enable all to deliver high standards. Furthermore, collaboration between different organisations within the same sector (or even across sectors) can deliver major efficiency gains - must notably in procurement. We are working hard to facilitate these steps. For example:

  • We are establishing a Public Service Leadership Consortium (PSLC) to promote closer collaboration on leadership development across public services, including the Civil Service, local government, NHS, schools and police. We will be developing a shared vision of the qualities modern 'user focused' public service leaders need. We are already exploring ways of promoting greater mobility of leaders across public services.

  • We are implementing a new Cross Sector Leadership Scheme that will offer leadership development and business skills training to high potential managers from all public services and uniquely to private sector managers so that we build a real caucus of future leaders, experienced in all forms of partnership/joint-venture working
  • We have established a Public Service Employers' Forum of senior departmental and public service employers to share best practice on pay and workforce reform, including on diversity, equal pay and total rewards.
  • We are working closely with the TUC and senior public service trade union leaders, through the Public Services Forum, chaired by the Minister for the Cabinet Office, to promote more effective engagement of the workforce and their unions in public service reform and service improvement.
  • The Office of Public Service Reform (OPSR) has considered the way in which the Sector Skills Councils covering the public sector might work together to support reform and improved delivery. The SSC for central government will work with OPSR and other relevant SSCs to develop these ideas. The initial proposals are aimed at supporting collaboration around specific projects of common interest.
  • There is greater movement into the Civil Service of people from the wider public sector.

Structure

  1. A high level of skills and effective and efficient ways of working within the Civil Service are vital to the delivery of better public services. Too often in the past, however, we have failed to effectively tackle important issues because we have worked in silos corresponding to different Departments. We need instead of trying to organise problems around existing Government structures to organise ourselves in the best way to tackle the whole issue. In some cases this may be through machinery of government changes - for instance a large range of services for children and families, previously managed across four different departments, have been brought together in the Department for Education and Skills.
  2. In other cases there may be alternative ways of achieving a more integrated approach. The Office of Criminal Justice Reform is a good example. This group reports jointly to the Home Secretary, the Secretary of State for Constitutional Affairs, the Attorney General and Baroness Scotland (the three Ministers with a strong interest in the criminal justice system (CJS). It supports the National Criminal Justice Board, which brings together Ministers and key stakeholders from across the CJS. Local Criminal Justice Boards take this integrated approach to the front line, and are starting to see real results in making the criminal justice system more effective.

  1. For more discrete areas of policy involving cross-cutting issues we have increasingly set up projects, such as many of those led by the Strategy Unit, which can look at an issue from outside departmental lines and often involve those from outside the civil service. Some of the most successful examples of delivery - like the Rough Sleepers' Unit - have been achieved by teams working in radically different ways, cutting across departments, led by practitioners, galvanised by a sense of ambition, including the belief that apparently intractable problems can be solved.

  1. Behind these new ways of working, the structure of the Civil Service continues to be a unified, but broadly federal one, with Departments setting their own pay and conditions for staff below the senior Civil Service. The civil servants serving the devolved administrations (other than the Northern Ireland Civil Service) continue to be part of this structure, which allows those administrations the flexibility to work with their own priorities whilst accessing the training and development opportunities of the UK Civil Service as a whole.

Driving the reform programme

  1. The activities of the centre of Government are vital in shaping and delivering this challenging and wide-ranging programme of reform. It is led by Sir Andrew Turnbull as Head of the Home Civil Service. Sir Andrew's Delivery and Reform team brings together those with a strong role in reform from across the Centre of Government (the Cabinet Office, Treasury and Number 10) to better co-ordinate and drive the reform agenda. One of the team's most important roles is in professionalising key corporate functions within Departments. Sir Andrew has therefore established at the Centre a number of centres of excellence to challenge and support Departments in this. The Centres of Excellence are:

  • Human Resources (Corporate Development Group in the Cabinet Office)
  • Communications and marketing (led by Permanent Secretary for Communications, Cabinet Office)
  • IT (e-Government Unit, Cabinet Office)
  • Strategy (Strategy Unit, Cabinet Office)
  • Financial management (Government Financial Management Directorate, Treasury)
  • Programme and project management (OGC)
  • Procurement (OGC)

  1. To oversee the whole reform programme, Sir Andrew has established a Civil Service Reform Programme Board made up of Permanent Secretaries and three non-executive directors from outside government. The Board's roles are to:

  • Bring the various elements of the reform programme together to ensure their strategic fit and to identify additional issues or areas to be addressed
  • Make sure that the key milestones on the road to reform are met and that the full benefits of reform are realised
  • Identify and monitor major risks to the success of the programme, and
  • Report progress to ministers.

Monitoring progress

  1. We have put in place a number of measures to measure the progress of reform. These measures support the Cabinet Office PSA of building the capacity of the Service to deliver the Government's priorities. The measures include:
  • increase turnover to 12% (which external benchmarking suggests reflects the level of turnover in healthy organisations)
  • Maintain the current proportion of vacancies filled through open competition (around 50%) through to 2008
  • 4-year norm for length of postings in the SCS
  • An increase in the proportion of Senior Civil Servants who have experience working outside the Service of more than 12 months
  1. The current Service-wide SCS Survey on Leadership & Skills will provide baseline data on perceptions of leadership effectiveness in the SCS, against which we can track progress on specific measures. We are also looking to develop some proxy measures for improving professionalism and skills levels in the Civil Service. But measures could include an increase in the proportion of SCS with a professional qualification. The SCS Survey will also provide information on levels of skills in the SCS that again can be used as a benchmark. More detail these measures can be found in the technical note to accompany the PSA target[4].

Politics and the Civil Service

  1. The strong values shared across the Civil Service are the font of much of its strength as an organisation, and it is vital that we maintain these. There is a great deal of consensus to support this. Despite comment to the contrary in recent years, the commitment to an impartial Civil Service, supplemented with a small number of special advisers, is shared across the political spectrum. We recognise the potential for a dilution of our values if large numbers of external appointments are made (particularly if they were made politically). We are therefore taking action to safeguard our values as the Service develops. We consider, for instance, that the numbers of external appointments to senior Civil Service positions that we are envisaging will not constitute a threat to the Service's values.

  1.  The draft Civil Service Bill we issued for consultation in November 2004 is also set firmly within the context of Civil Service reform. It would put on a statutory basis the basic principles and values governing the Civil Service - its duty to assist the duly constituted administration, its political impartiality, and selection on merit through fair and open competition. Its purpose would be to entrench and protect the existing constitutional arrangements rather than to make any substantive changes.

The Civil Service in the future

  1. The ultimate proof that this vision has been delivered will be a higher level of delivery against Government policies and programmes, and particularly in the delivery of high quality public services for everyone.
  2. The Civil Service of the future will have much in common with today's service, retaining the existing strong values. But it will have consistently high quality leadership, and all civil servants will have strong professional skills. The Civil Service will be more diverse, with the whole Service, including senior civil servants, being representative of society. A far higher proportion of civil servants will have experience outside the Civil Service, and will be able to use this to create more effective partnerships with those from the wider public sector as well as the private and voluntary sectors. For many people - perhaps up to 25% of the Senior Civil Service - the majority of their previous career will have been spent in one of these other sectors. Departments too will look different, with smaller, more strategic centres. They will work more effectively together on shared areas of interest. And although we will still have a civil service distinct from the wider public service, there will be much closer relationships in place to ensure that there is an unbroken delivery chain from Whitehall to the customer.



1   PASC's report 'On Target? Government By Measurement' (July 2003) has made a contribution to the development of the target and performance measurement regime.  In particular, as a result of the report (and our own experience) departments have significantly increased the level of consultation in the setting of targets - ensuring greater buy-in/ownership along the delivery chain.  Back

2   Briefing Paper, March 2004 Back

3   data from the spring 2004 Labour Force Survey shows that, on a comparable basis, 7.3% of the economically active population were from minority ethnic backgrounds Back

4   See http://www.cabinetoffice.gov.uk/reports/service-delivery/2005/target2.asp

 Back


 
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