Select Committee on Communities and Local Government Committee Written Evidence


Letter from the Permanent Secretary to Sir John Bourn, NAO Efficiency Centre

NATIONAL AUDIT OFFICE DRAFT REPORT—THE EFFICIENCY PROGRAMME: A SECOND REVIEW OF PROGRESS

  Thank you for giving me the opportunity to comment on your draft report on the Efficiency Programme. I am content to confirm that the facts in the report are correctly stated and have nothing further to add on their presentation.

  I appreciate you setting out the reasons for your assessment of efficiencies delivered through the Firelink: Operational Continuity Project and why you believe this warrants a "Red" rating. I am also grateful to Keith Davis and his team for their willingness to discuss the draft report with colleagues in my department.

  We undersand that according to your definition the efficiency gains are not "sustainable" but it remains the case that the programme has been taken forward in accordance with the guideline and definitions issued by the Office of Government Commerce. I do hope that this can be made as clear as possible in your report.

February 2007


Examples of Achievements in the Four Action Areas

Action Area 1. Lead and enthuse partners in creating successful communities and services
Achievements Evidence of Impact


—Published the implementation plan for the Local Government White Paper: Strong and Prosperous Communities.

—Established a high level sounding board of local authority chief executives and sector bodies.

—Agreed an approach to focus the number and length of guidance documents from central government.

—Established a Third Sector sounding board, to promote partnership working with Third Sector colleagues and to inform our strategy.

—Partnership working with other government departments and local government in passing the Local Government and Public Involvement in Health Bill through House of Commons.

—Feedback from LG sounding board: `I think it was commendable of the Department to share the latest phase of its thinking with a difficult audience like us in such an open way'.

—We are working closely with other government departments to agree 200 cross-Government performance indicators for local government and their partners.

—Work with the Office of the Third Sector and HMT made the case for the Budget 2007 announcement of an £80m fund to support small community groups.





Action Area 2. Base policy making and delivery consistently on evidence.
AchievementsEvidence of Impact


—Launched expert panels to provide external challenge to our policies.

—Audited analytical capacity of Programme Executives.

—Appointed senior analysts to all eight policy-facing Programme Executives.

—Held Economics seminars for all staff.

—Reviewed our modelling capability.

—Set up programme of training in analytical techniques for all members of the SCS piloted by 50 Fast Streamers.

—Our policies are based on increasingly robust evidence bases eg Evidence packs produced for major policies, such as housing reform.

—We know how we will track the use of analysis in the department. Baselined material for key performance indicators on analysis.

—Economists providing additional economic expertise eg Economics of neighbourhoods.

—Substantial work to review and strengthen evidence base on cohesion.





Action Area 3. Sharpen our delivery focus and ensure we have strong performance management systems and skills.
AchievementsEvidence of Impact


—Established Delivery Sub-Committee of the Board to oversee critical projects.

Reconstituted the Audit and Risk Committee and the Investment Board.

—Established Board level risk register and management processes.

Identified critical projects for scrutiny.

—Sharpened the Board's role and focus.

Non-Executive Directors report a step-change in the quality of the presentation and handling of Board business.

—Feedback from staff taking business to the Board is positive about the value added.

—The Board has provided robust challenge to our key delivery projects eg FiReControl which was a high risk project and, following Board intervention, has now awarded contract and is moving to its delivery phase.

—The Board is currently focussing on lessons learned from HIPs.





Action Area 4. Manage our people effectively, and ensure we have the critical skills we need.
AchievementsEvidence of Impact


—Strengthened HR with professionals at SCS level.

—Published new Equality and Diversity Strategy

—Defined new leadership behaviours with SCS—coaching, managing performance consistently and engaging with ministers.

—Established new forum to represent AA and AO staff.

—Engaged independent consultant to understand the challenge issue and propose an action plan to the Board.

—Initiated quarterly staff surveys to enable us to monitor staff perceptions throughout the year and take appropriate action.

—We have made inroads into our difficult HR cases. Following our focus on casework, they have been reduced from 93 in February to 30 in June.

—Performance management reports submitted on time this year rose from 70% (2006) to over 89% following publicity and intervention.

—622 staff have attended the coaching skills workshop—we are re-launching this event in mid-October.





 
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