Press Release - Achieving innovation in central
government organisations
25 July 2006
The first independent report into operational innovation in
central government has found that, although a deep rooted culture
of risk aversion is being tackled and improvements in quality and
efficiency of service are being made, government bodies could still
secure greater benefits and efficiencies with more innovative and
progressive approaches.
The NAO report published today examines 125 innovative
developments, nominated by 85 government bodies, to improve their
administrative and organisational practices. A diverse range of
innovations was submitted, with most involving improvements to
performance management, new IT or web services or other
technological changes. Some of the innovations have taken years to
deliver and cost millions of pounds, although the average cost was
under £1 million and the timeframe was 28 months, relatively slow
by private sector standards.
Examples of effective innovations in the report include:
Compared with private sector service firms, the cost data
available within central government is limited and slow progress is
being made in developing comparative costs and performance
information. For innovations to be successful, better data is
needed on where costs are being incurred and on the benefits
derived from innovations.
In recent years, departments and agencies have successfully
addressed a previous culture of ‘risk passivity’. But a lower-scale
risk averseness is still common. The recruitment of people from
outside the Civil Service is spreading knowledge and awareness of
alternative methods of working but new incentives to encourage
staff to develop or promote innovations are needed. Departments and
agencies also need to strengthen their ability to learn lessons
from successful innovations made by others in the public and
private sector through, for example, greater use of innovation
units.
The innovations that are being introduced are delivering
benefits, in particular, improvements in productivity and
effectiveness, although less in terms of cutting costs or improving
staff working conditions. Levels of improvement are restrained by
the small scale and generally conservative nature of the design and
implementation, and an often hierarchical approach of imposing
initiatives on staff without enough effort to securing their
buy-in.
To develop a culture in which innovative projects can flourish,
central government bodies should develop better incentives and
rewards for staff to innovate; ensure that innovation is directly
and publicly incorporated into the assessments of departmental
performance; and improve cost and impact data so that it is easier
to assess the value of innovations.
Sir John Bourn, head of the NAO, said:
"Much work has been done to drive forward operational
innovations within the civil service. But harnessing a new culture
isn’t easy. We have found many examples of new and worthwhile
changes but strong barriers to innovation remain.
Senior managers are providing leadership to change, but
implementing structural changes will not be achieved by dropping
initiatives from on high, but rather by creating a supportive
environment where all staff are encouraged to make suggestions for
change."
Notes for Editors
The London School of Economics were commissioned by the National
Audit Office to produce this report.
- Press notices and reports are available from the date of
publication on the NAO website at www.nao.org.uk. Hard copies can
be obtained from The Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 57/06 All enquiries to Mark Anderson, NAO Press
Office: Tel: 020 7798 7558 Mobile: 07796 937119