Press Release - Progress in improving government
efficiency
23 May 2006
Sir John Bourn, head of the National Audit Office, said today
that progress is being made towards the £21.5 billion ‘Gershon’
efficiency target but that because of the extent of the risk that
efficiencies may not be measured accurately, and time lags in
reporting of data, gains reported so far should be considered
provisional and subject to further verification.
The National Audit Office found that many efficiency projects
are making good progress towards achieving efficiency gains and
that in many respects departments are managing their efficiency
programmes well, particularly through effective senior management
focus and some high calibre project management. The Office of
Government Commerce (OGC) is now providing thorough monitoring and
challenge of departments’ progress.
However, caution is needed at this stage in assessing what has
been achieved. Some reported gains are robust, and greater
confidence can be placed in gains reported more recently. At the
same time, lags in the reporting of data mean that there could
already be further gains achieved beyond what has been reported.
This, together with the need for further data on service quality,
and limitations in measurement methodologies mean that the reported
gains of £4.7 billion should not be regarded as final.
The report also points out that the Efficiency Programme is high
risk because it requires a change programme with a diverse set of
challenges. The top 50 out of some 300 projects are taking the lead
in delivering around 80% of the £21.5 billion target.
As part of its work the National Audit Office researched
experiences of improving efficiency in the public and private
sector, and also overseas. Through its analysis of successful
efficiency initiatives it has been able to draw out some important
lessons for government.
Beyond the immediate targets, the National Audit Office calls
for a number of broader improvements if government is to achieve
longer term, sustainable efficiency:
Strategic leadership from the centre of
government. Strong strategic leadership at the centre of
government is essential to ensure the most is made of opportunities
for reform. For example, in seeking greater sharing of corporate
services functions, a wide number of public bodies acting together
rather than in isolation or in small groups will deliver the
optimal outcome.
Staff professionalism and expertise. More needs
to be done to ensure that staff in key roles have the right skills
and expertise and the freedom to use them. Departmental Capability
Reviews and the Professional Skills for Government programme will
be critical to achieving this.
Quality and timeliness of data on efficiency and
productivity. Public sector managers need to be able to
base their decisions on clear and timely data which link costs to
specific outputs.
Integration of efficiency into day-to-day thinking and
systems. Staff in the public sector need to think
‘efficiency’ as they go about their activities.
Use of comparisons of efficiency between
organisations. Management boards of public bodies should
demand clear information on how their efficiency compares to others
and act on the results.
Collaboration between public sector
organisations. Different parts of the public sector need
to be more willing to learn from the experience of others and to
work jointly to achieve efficiencies.
Sir John Bourn said:
"There are many worthwhile activities going on within
the efficiency programme and I am pleased that some good progress
is clearly being made. However the time is now right for government
to move on from isolated, one-off efficiency initiatives, covering
selected activities, towards a much more all-embracing approach to
achieving efficiency. To sum up, efficiency is not an 'add on', a
separate programme from 'core business'. Efficiency is the way
'core business' has to be delivered and improvements in the quality
of public services secured."
Notes for Editors:
- The Office of Government Commerce is responsible for the
overall delivery of the Efficiency Programme. The role of the
National Audit Office, as the external auditor of government
departments and the Office of Government Commerce, is to report to
Parliament on progress and this report will be the first in a
series on this subject.
- This report is supported by a volume of eight case examples of
efficiency programmes and projects drawn from both the public and
private sectors in the UK and overseas. The good practices that are
identified in the case examples cover a number of approaches which
have all had an impact on enabling the organisations involved to
improve their efficiency and the quality of services they deliver
to end users.
- 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 13/06
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