3 Government skills and capability
21. Government has recognised for some time that
its effectiveness is hindered by shortages of key specialist skills
and capability, such as commercial, contracting, project management
and financial expertise.[38]
Some progress has been made on the four priority areas for developing
government skills set out in the Civil Service Reform Plan: project
and programme management; digital skills; procurement and commercial
skills; and leading change.[39]
For example, the Major Projects Leadership Academy has trained
300 senior project managers, and the 'functional leadership' initiative
has seen more coordinated central leadership of corporate functions
such as legal services, human resources and procurement.[40]
22. However, the permanent secretaries recognised
that there was still much progress to be made on improving capability.
Sir Jeremy Heywood told us it was the area with the greatest room
for improvement in terms of strengthening the centre. He added
that there was still a long way to go before government had strength
and depth in all of the key functions performed by the centre,
particularly in the Cabinet Office.[41]
Sir Nicholas Macpherson commented in particular on the need to
improve turnover rates at the centre, noting that expertise and
continuity on both the political and official sides makes a big
difference.[42]
23. Improving central skills and capability is crucial
so that departments can continue to benefit from sources of specialist
expertise, such as those within the Efficiency and Reform Group.
Central efforts to work with departments to improve efficiency
and reduce costs were galvanised by the climate of fiscal austerity,
but the success of those efforts was also a result of high levels
of ministerial continuity, aligned political leadership, and good
personal relationships at the top. The permanent secretaries noted
that the coherence provided by this unique set of circumstances
could only be maintained if the centre builds the right capability,
so that departments value and seek out the specialist support
and advice provided by the central units: for example, the Crown
Commercial Service for procurement expertise and the Government
Digital Service for digital advice.[43]
24. The permanent secretaries acknowledged their
duty to build government capability, and ensure that skills and
expertise are deployed where required. Richard Heaton said it
was "unequivocally" the responsibility of permanent
secretaries, led by the Head of the Civil Service, to create a
civil service that has the capabilities government needs.[44]
Sir Bob Kerslake added that the centre's role in this respect
was to identify with departments where the priorities are, set
up systems to assess where departments have got to, and challenge
them about their plans for improvement.[45]
He recognised it would require a mix of hiring in people from
outside the civil service and paying them more where necessary,
but also investing in building up the skills of the existing civil
service.[46]
25. Implementation of the Treasury's financial management
review is a clear example of where the centre has a role in building
key financial skills and capability across government. Sir Nicholas
Macpherson told us this has several aspects: the Treasury will
have to ensure that government has the right talent and that it
is in the right place; that future financial capacity is developed;
and that the centre is more proactive in performance managing
finance directors across government. On the last point, Sir Nicholas
said that the Treasury "can have a far stronger grip on what
is going on in departments".[47]
He also confirmed that the Treasury would adopt a model of having
specialist finance expertise available at the centre for departments
to use, as part of raising the status of finance in government.[48]
Sir Nicholas undertook to share with us the detailed action plan
for implementation of the financial management review, as the
basis for discussion about progress on implementation.[49]
38 Qq 18-20; HM Government, The Civil Service
Reform Plan, June 2012, p 22 Back
39
Q 18 Back
40
Qq 15, 44 Back
41
Q 91 Back
42
Q 24 Back
43
Q 97 Back
44
Q 23 Back
45
Q 21 Back
46
Q 92 Back
47
Q 98 Back
48
Q 101 Back
49
Q 99-100 Back
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