Archive for the 'Local Government' Category

In the absence of knowledge, create rumours

A series of small cuts in each of the next four years

A series of small cuts in each of the next four years

Cuts are coming.  Chief Execs have made high level plans to cut 25% in real terms over the next four years of this parliament. 

Few, if any, of the plans will have details of exactly how they will be executed.  Everyone is awaiting the autumn announcement and most countries around the world will be doing the same thing.  Without knowledge of how cuts will be implemented, rumours have started. In response, some have taken action whilst others are in denial or ignoring rumours.

Amongst the rumours and actions, are groups of people whose actions are based on the belief that 25% immediate cuts are being asked for.  So, lets look at the maths.  Most plans are  based 2011/12 being the same cash amount for their Local Authority as this year – hence a small decrease in real terms.  That leaves 3 more years to achieve a 25% reduction.

Create your own rumour.  The same is happening throughout the world.

Create your own rumour. The same is happening throughout the world.

Simple maths shows that it is necessary to make between 5.5% and 6.75% cuts in each of the next three years after 2011/12, if inflation is between 2% and 3%. 

That doen’t sound quite so bad, but certain services will be ring fenced, needing increased funding in line with inflation whilst others will be judged “non-core” and be asked to work with huge cuts or become optional.  Who knows what we will pay to get into the Swimming Baths in future and do we really believe that potholes will be fixed so quickly and efficiently as they are today?

And what about compliance with legislation?  What about new or changed Codes of Practice?  What about Citizen increased expectations and those adverts on TV about “if it wasn’t your fault you may be entitled to compensation: no fee”.

My rumour is that we will evolve into the new state: lower services in some respects and possibly some services and jobs transferred to the Private sector.  But the big point is that people will get creative and achieve these cuts using peer level collaborations of the most ingenious sort.

Cost Cuts, ready to go

Most Local Authority Chief Executives have prepared plans at a certain level of detail to cut costs by 25% within the life of this parliament – 4 year ahead.

These will consist very roughly of the next FY being a standstill or slight reduction on this year and thus contributing around 5% reduction in real terms.  The remaining 20% will need to be made in the following three financial years and each set of plans will profile such cuts according to local politics and local leadership.  It almost seem “not so bad” when they are described in this way..sort of 5-8% per year for four years then we should be out of the recession and growing.

Brushing over or faltering at the hurdles

Watching the see-saw of the financial markets in the last fortnight it has been hard to make a prediction about whether we are teetering on the brink of the second dip of a W-shaped recession or simply stuttering as we slightly “brush the hurdles”.  I am a big fan of the Andy Turner school of hurdles and like to see brushing over rather than faltering because hurdles were attacked too enthusiastically.

Will the execution phase of Public sector cuts be “not as bad” as we might think, but simply bad in some specific areas where Local Authorities do not have Legislation forcing to provide a Public Service?  In such areas job cuts seem certain.  Outsourcing might be a solution.  The cost of Government WILL reduce and individuals will be unfortunate casualties.  We might hope that the phasing of cuts, possible profiled more like a Hockey Stick, will allow the Private Sector to expand and thus reduce the effect on individuals and the overall economy.

We “Confirm” people can focus our efforts on making sure that our software and services focus hard on assisting Local Authorities reduce costs whether they remain Contracted, in-house or external or whether they adopt to total outsourcing model.  That focus will need to remain for 3-5 years, it looks like now that the runners are in their blocks and their training has finished.

The starter’s gun goes in October and we wait with baited breath.

It’s what you were meant for

Inspiration at 6 am on a cold Summer morning in Birmingham

On the journey to work this morning, I noticed a wonderfully phrased advert for a National Bank announcing “It’s what you were meant for”.  Of course, the attempt at “association by empathy” was cleverly placed on a billboard at a major railway station: after all, who would not want their own business and the images emphasized what a fulfilling and rewarding life it might be.

At 6 a.m. on a dull Tuesday morning, it got me thinking about what “our software was meant for”.  The “Parent” in me feels that it sort of has a life of its own – I was there at its birth and I know exactly why it was conceived and, just like any parent or carer, I feel I have helped it on its journey to some extent and influenced its maturation.  Now, just as with “grown up children” it seems to be delivering exactly what it wa designed to deliver.  Perhaps, just like our “grown up” children, that does not always happen?

Confirm helps people save money, lots of money.  The conversations before conception were all about what Local Authorities actually do, how they constantly re-organise their internal structures whilst the need for their ever more efficient services persists.  I kept an image in my mind of a Frontier Town in a Western movie and thought of how the services provided by the seedling Town Hall staff were providedand  then how they evolved through the years.  In 1991, it was clear to me that the image kept changing, kept evolving and that each year brought new and sometimes unpredicted demands for increased efficiencies.  So we predicted that the situation would never change and we have yet to be persuaded away from this viewpoint by evidence in Government life.

So, in conceiving Confirm software, as well as the software we had to conceive of the environment in which it might exist, the supporting strctures and processes that would keep it in touch each day and every day with a world that could not be predicted, but could be predicted to change in an unpredicatble way.

It's what you were meant for...saving money, lots of money

We resolved to lay the foundations for User Groups, Consultancy staff who were domain experts and a domain-led CPD programme, Software developers who did not work in an ivory tower but WITH every-day front line users and support that provides quick turn-around answers to users who either “did not know” or had simply “forgotten” which buttons to press.  We laid foundations that were solid and would cope with our own organisational changes as well as the more frequent changes in our users’ organisations. And we architected software that delivered real value to our users, whilst “architecting” processes that would sense what additional functionality the marketplace would value.

Confirm exists in a working environment where the users lead the way, where the new challenges that are thrown at our users by our new UK Government force them to see new opportunities within Confirm and how it can play its part in helping them and their departments achieving these mammoth savings without degrading services.

If I could talk to Confirm, I might say “It’s what you were meant for”.

Ian Watmore joins the Efficiency and Reform Group

Ian Watmore, the new COO at the Efficiency and Reform Group

Interestingly, the Cabinet Office announced today that Ian Watmore joins the Efficiency and Reform Group as Chief Operating Officer from September 1st 2010 (this link for the full story).

On a fairly modest salary compared to the already required £6.2bn savings his new team have to deliver, it looks like he will re-enter public service with a mission in mind.

So I thought I would look up his background whilst we wait to see what he brings – cut staff or improve efficiency and let staff attrition happen through voluntary redundancies, early retirement packages and discharging duties that Government Organisations should have been but weren’t through previous staff cuts (…and there are little magic people at the bottom of my garden)

Ian Watmore is a Trinity College Cambridge graduate in Mathematics and Management Studies, so he should be able to grasp complex business problems and see straight through to the potential for efficiency potential.  He was Chief Executive of the Football Association so, being English, might let a few balls drop unexpectedly and may not control the game too well.  Finally, as an Arsenal fan living in Wilmslow, Cheshire, he might be used to “living with the enemy” (do a few rich football players from a “certain” rival football team live nearby?).

A degree in Mathematics and Management Studies

All the best to Ian Watmore and here’s hoping for sustainable ideas that are good long term bets.

Facts: Ian Watmore began his career in Andersen Consulting (later Accenture) in 1980. In IT and management consultancy, Ian worked on many of their largest business transformation client engagements globally, and ultimately chaired their global Diamond Client Forum.  In 2000 Ian was elected as the youngest ever Managing Director of Andersen Consulting UK by the UK leadership team which covered the transition to Accenture.  In 2004 Ian joined the Civil Service. His first role was as Director General and Government Chief Information Officer in the Cabinet Office before moving in 2006 to lead the Prime Minister’s Delivery Unit at No 10. In 2007, Ian became Permanent Secretary for the newly created Department of Innovation, Universities and Skills where he helped design and build a new government department whilst delivering major policies for the nation. Ian’s most recent role was as Group Chief Executive of the Football Association group, from which he resigned in March 2010.

iPhones and ice-creams

In a recession, people still buy iPhones and ice-creams, it is said.What is essential, nice enough that you feel it essential or that is so outstandingly better than its predecessors that you would spend money on it when money is really tight?

People buy ice creams because it is hot, they love ice creams and they decide they are happy to spend that amount of money because it will cool them down or just because they deserve it.

iPhones are really expensive, but people with very little money buy them.  Why did my son buy one when he left university and walked straight into a job…because the package allowed him to spend less than he did with pay as you go, because it has lots of extra stuff that he would use (often) and, frankly, it is as essential for a young Doctor as a Morgan Sports Car was in the 1970’s.

So, value, added value and desirability are reasons to purchase high value items.

I think of our Confirm system like the iPhone – somewhat ahead of its time when it was released, with loads of “added value” over its competition and adding loads of extra features and functionality that our users will value and use – often.

The relentless march forward of Confirm, adding more and more value each year means that we cannot take a break for ice-creamsWe are soon to release the Street Works Events and Diversions module and are working on other new modules (steered by our developers talking directly with our users in small groups) and the work being done to add value to our Confirm Mobile software is too good to mention on the Blog…bit like a new flavour of ice-cream…we will announce it when it is released so that the competition does not copy it!

As relentless as Nadal at the French open, Confirm continues to add value to ensure that it stays in the “iPhones and ice-creams” bracket of tomorrow. 

We look forward to a Hot Summer with hot stuff coming out from PBBI.

Spy in the … or Control Room?

Spy or ally?

Spy or ally? Knowing where you are, all of the time, can improve the performance of your organisation

Spending Friday in London has its bad points, and some even worse points.

This Friday, I had the pleasure of sitting in with our Customer Advisory Panel (CAP) who were talking (Developers talking directly with Customers) about GPS tracking of field workers using technology already present on their hand held computers.

Some users knew that there may be a degree of reticence from older and more staid colleagues in implementing such technology: “You mean they know where I am all of the time?” and “What if I stop for my lunch?”.  “I thought this was only possible for vehicles – spy in the cab and that…”
The truth is often simpler and less dramatic, as it is with this new idea.  Knowing where workers are enables you to assign urgent jobs and inspections to the nearest person with the appropriate skills.  Urgent things crop up every day and that is, after all, the business of many Councils.
And drawing lines at the end of a day showing where you walked during the day…that only allows me to optimise the standard workload between colleagues.
Reasons to be fearful?  Mainly that the organisation was so inefficient in the past, perhaps?  However, balanced against efficiency improvements, accelerated response times and a measurable ROI, it seems that most people’s problems will centre around what hat to wear and whether or not dark glasses are needed.  This chap could do with some advice!

Coalition Government and Infrastructure based maintenance services

"I agree, that seems to make sense"...a new era?

Searching through the 32 page document outlining the aims and aspirations of the new coalition Government of the UK, I struggled to find any direct reference to the 10 municipal Street Scene Services.  There were many statements that one might associate with an effect that might happen, especially in Sections 4 and 7, but the one that filled me with the most hope for a better street-scene was the first one in section 4, that read: “We will promote the radical devolution of power and greater financial autonomy to local government and community groups. This will include a review of local government finance”.

Counterbalanced with the desire to introduce “An emergency Budget with modest immediate savings”…. to paraphrase what was said…. one might be left wondering what really will be the effect in the next few months.

At a guess, I would say that some UK Councils will put a 2-month ban on major IT Procurements, most Central Government Departments will and well, just forget all IT spending if you are a Regional Body, quango or named Government Agency in the firing-line…and there are quite a few.

Back to the Street Scene, the ten services (see “About Confirm” from the menu at the top of the page) that our Confirm software addresses so well.  There does not seem anything counter intuitive in seeking to improve the effectiveness of an existing system, perhaps by purchasing more Mobile Working units, or linking to a Core Corporate system such as the Council’s CRM and Financials.  There does not seem to be anything “counter coalition aims” to widening the footprint of an existing software system to cover more of the ten departments that Confirm covers…it simply saves money and improves efficiency.  And there does not seem to be anything but support for Councils looking to share one system amongst several organisations and/or departments…something that was designed into Confirm software from the very start.

Street Scene Services can become more efficient through the use of well designed software

So, as I walk into work on Monday morning, having spent many hours searching for refernces to just how precarious my job might be in this thriftful and austere period, I resolve to focus on helping each of the 170 Organisations (125 of which are Local Councils) make their copy of Confirm more efficiency and effective in the delivery of very noticable public services.

That document? This is the link:

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/documents/digitalasset/dg_187876.pdf

Achilles provide clues to UK Government cost savings

I recall in the film “Troy” that Achilles replies to the messenger boy who summons him to fight the Thessalonian Giant “…that is why no-one will remember your name”.  This leads me to think of our new Blue-with-yellow-stripes Government where two young Political leaders might well be fighting a giant financial problem… in a brand new way … and hope that people will remember their names.

By sprinting towards the Thessalonian Giant at full speed and using a side step a “dodge-jump-twist-stab” all in one motion, Achilles achieves the almost impossible, without fear.  I am looking for the new tactic to emerge from the emergency Budget and the early clue that £6bn of Public Sector Spending cuts WILL be an integral part of that emergency budget, planned for 50 days after David Cameron’s appointment.

At the Annual HAUC in Cardiff this week, I heard much talk about Partnering as a possible new tactic in achieving Public Sector spending cuts.  That was from Conference speakers.

I also heard from some of the 30 Confirm user organisations that were attendees at this annual conference (next year in Glasgow) who feel that they have huge internal savings that can be achieved by putting Mobile Computing in the hands of Street Works Inspectors.  The also saw revenue increases by implementing “Dashboards”, which might alert them of Street Works Notices requiring action and thus providing a more efficient service.  Some thought that providing on-line access to their bank of Contractors would allow the whole value chain to share one IT system and that efficiency savings would ensue.

What I did not hear about was the idea that large hidden cost savings might be found by sharing one system between several departments: a sort of internal partnering, or internal shared services.  The costs savings from a single interface to each of the big four corporate systems (Finance, CRM, GIS and Gazetteer) might save a single organisation up to £250k capital costs and £50k per year.  I did not hear much about moving to an OnDemand application rather than an On-Premise software system…where costs can be put into revenue streams rather than Capex plus revenue and I am guessing this is because the IT FM Contracts generally do not allows for reduced IT charges where departmental systems are outsourced into the Cloud. 

Savings will be made and time will tell what ways Councils will implement the cost savings.  Perhaps, as happened in the film Troy, we will feel delighted as our new Achilles slays the giant deficit.

Here’s to new and elegant “side steps”.  Watch your heels, David and Nick!

Peek-a-boo: Spot the hidden savings

Peek-a-booWhilst musing over where the knowledge really lies within our community of Pitney Bowes Business Insight dedicated “Confirm” staff and the 170 UK Organisations that use our Confirm software every day, I also addressed my mind to the savings that might tempt both existing and new users.  With the family at home for the Bank Holiday and being an interminable romantic, I came up with a “peek-a-boo” picture in my head.

Savings are not always as obvious as the difference in time at the point of work when mobile staff use on-line hand held computers with maps, photo-link and a GPS.  Sometimes they are hidden, but, when pointed out, evoke a “there you are” reaction, somewhat similar to the peek-a-boo concept.

So, when a single system can be used in two or more departments and share a single Inventory register, sometimes it is pretty obvious: one street register for Highways and Roads then re-using it for Street Cleansing and Street Tree Management.  But, just there behind the curtain or hay and looking straight at you is a large “Pound” sign called Corporate System Link about to “boo” you!  You linked the Financial Management part of Confirm to the Corporate Financials; now it can be re-used for Street Cleansing and Tree Management.  Think of the inverse, where three systems exist – three interfaces exist and probably need to be purchased, implemented and fixed when they break. What a wonderful surprise to find a cash saving (as cute as a little bunny rabbit?)   There are many similar ideas, re-using the report writer and dashboards, a single expert system administrator, links to EDMS and GIS, a single technology for mobile working and the list goes on.

Didn't see that, did you?

Didn't see that, did you?

There are many possible “hidden savings” from reducing the total number of systems that a single organisation owns. 

Of course, it is for each Organisation to identify for themselves whether an existing system can be re-used in adjacent or similar departments, or whether it is appropriate to spread it wider and deeper through the supply chain / value chain.  These types of savings are all too obvious once pointed out.

Post election we expect to see pressure on public spending and these gems of hidden cashable savings will be  sitting there staring us in the face and waiting for us to see them, smile…and, perhaps, take them up?

Confirm can be used in 10 departments; Peek-a-boo!

Seventh Heaven: Maintain services standards with greatly reduced costs

I have been looking at what might afford the best chance of actually reducing costs to UK Local Authorities in that period of austerity we expect post-election.  Some might even “have a go” pre-election if they can use existing IT Investments; therein lies my first idea:

Make most use of the systems you already own.  Confirm covers ten “departments” but not one of our Customers uses it in all ten.  Quite a few use it in 6, 7 or 8 and less than a handful use it in only one.  So extending it to other departments might cost nothing and offer the chance to stop paying support on those other systems.  It is quite high up on most IT Directors’ lists – reduce the total number of IT systems and if, like Confirm, there are great Corporate System Interfaces already in place, then hidden savings occur and need to be counted in reporting total savings!  (2 for the price of one?)

My second idea is about the need to comply with Legislation and Code of Practice whilst meeting service standards (and sometime to help the avoidance of incorrect or spurious liability claims).  In addition to meeting these requirements, Councils need to be sure that they can continue to meet ever-changing codes and laws.  Looking for hard evidence of this capability, of standing mechanisms that will not go away and are supported by staff structures that are sustainable.

As rare as Hens' teeth, perhaps as valuable as Gold teeth?

As rare as Hens' teeth, perhaps as valuable as Gold teeth?

My third is all about data.  Rubbish data is often the start point of a project to implement a new system, sometimes from disparate legacy systems and the cleansing and rationalisation of such data is essential…but who has the tools and the time.  Horizontal systems and Council staff with the expertise to use then are as rare as Hens’ teeth so can the supplier come up with the goods, experts and desire?  Look for evidence, see demos, ask reference sites.  The capability is as valuable as Gold teeth, especially if it is coupled with mechanisms to deal with ongoing asset data that is refreshed at intervals and asset data that starts off incomplete.

My fourth idea is about user democracy: What mechanisms exsit to get user ideas for software enhancements into the software.  A system will prevail over many years where user democracy is high more often than where it is “low to non-existent”.

The fifth idea is about software for mobile  workers that maps onto their role and the data needs within the host system workflows.  This is something that I have written about at length so I will not write more about it here save to say that Mobile hardware with a generic “something” (GIS or form based tool) is poor compared to specifically designed software that is Mobile Mapping enabled, capable of taking or showing linked photographs and files, that is GIS enabled, is tailored to the role requirement AND finally is linked to workflows/rules within the system that it is sending data to!

Seven ideas for a reducing the cost of a well maintained Street Scene

Seven ideas for a reducing the cost of a well maintained Street Scene

My next, the sixth, is about linking with Corporate systems, whether frontline or back-office.  Links should be using industry standard methods and standards so that the supply-side cannot hold its customers to ransom now or at any point in the future.  They should also add value by reducing cost, as well as paying their cost back within 18 months.  (Interfaces can be expensive, so this is a great acid test!)

Finally, my seventh is all about Citizen portals that perform any of the tasks relevant.  Citizens may have to report service requests, asset defects, incidents or they may wish to see how services are delivered or enquire after standards of service delivery achieved.

In my 20 years working with Confirm, if all seven are met or even if most are met, money is saved in huge amounts and from many aspects.  The principles are sound and part of a successful project.  There are other parts such as people management and “staff with talent”, but I am not so sure I can help there.