Best bits: the cost of transformation Q&A

I wonder if we should not banish the word “transformation” from the public sector lexicon. It seems to be one of those over used and over abused words. All too often in the pursuit of “transformation” its protagonists allow the impression to be given that all that went before was wrong and ineffectual. This in turn becomes very demotivating for staff and other stakeholders – the very people who have to be on board to secure sustainable change.

The culture and behaviours that are required will vary from organisation to organisation but must include:

• having clear values and objectives and honoring these

• accountability

• transparency of the use of resources and performance

• honesty and trust internally and externally about what is achievable and what is not

• customer focus and customer care

• innovation and experiementation – a willingness and ability for continous improvement and change

• “can do” rather than “compliance”

• openness and full enagement of users, staff and other stakeholders

• excellent people management and talent development

The current NHS reforms are riddled with inconsistencies and contradictions; there has been an abject failure to carry key stakeholders; and they are attempting to realise change in so many ways across a very large and complex organisation in a highly political environment.

That said we have to be careful not to argue or accept that you cannot secure or should not pursue system and cultural change even in the NHS.

Claudia Megele, senior lecturer at University of Hertfordshire

There are many aspects that can be considered however:

• Simplify and reduce structural hierarchies. They suffocate creativity and stifle any desire for improvement.

• Relate, relocate and translate organisational change and performance based on ad-hoc and focused group formations. For instance use action research and focus groups to define and address organisational challenges as well as uncovering areas of improvement.

• Realise that organisations are complex chaotic systems and that every action ripples through the system generating change and reactions. Therefore, minimise the use of rulebooks and rely on professional abilities and capabilities of staff. This will inspire and motivate staff to aspire and achieve incrementally higher objectives. The “rulebook” generates a blind culture of compliance that is the hallmark of most public entities and is manifested in the rigidity of their organisations.

• Ensure that change is driven by more than econometrics and that there is quality enhancement and value creation in a holistic sense.

David Clark, director of SOLACE Enterprises

Many so-called transformational programmes seem to be nothing of the sort when closely examined. Rather they are programmes involve a little service re-design, some process re-engineering and perhaps some new agent of delivery. When I queried this with a group of CEOs and others from the private, public and not for profit sectors they seemed to accept that transformational change does exist, but is not as common as some would have us believe.

One of the key things that they all believed is that transformational change does not have a beginning and an end, it is more a permanent condition.

I suppose you could say that the current climate is a real opportunity in the same way that being mugged gives you the opportunity to make the aquaintance of that nice doctor in A&E.

Major changes in the public sector should have three main characteristics. They should have the approval, or consent of a majority of citizens and/or customers. They should be supported by a rigorous business case. They should be acceptable to the prevailing national and local politics. Any major change that can balance those three things may not appear ideal to anyone, but they will be the best solution in a complex world. If you accept my proposition that the public sector leader is essentially a rationer of taxation then very few major changes will be universally applauded.

Going back to my discussions with CEOs the absolute key piece for me was when they said: “You have got to put your best people on the transformation task, no matter how vital they are to where they are already. Don’t just use those who are ‘spare’ for the transformation effort.”

A local authority CEO questioned if this meant taking the Childrens Service Director slightly off line to champion the change. They were told that if she/he was the best person then the answer was “yes”. They looked somewhat horrified at this and spoke of the risks involved. I have a suspicion that the service by service needs and the service by service risks may often prove a real barrier to wholescale transformation.

Andrew Jepp, director of public services at Zurich Municipal

To implement change effectively, you need clear goals that you can measure progress towards and the right resource to deliver. In many organisations, the first cost saving measure is headcount reduction and in the public sector where many of the most experienced staff are in the bracket where voluntary redundancy and early retirement become attractive options, this weakens the organisation before you even start the transformation.

In many of the most successful organisations, change programmes are introduced when they are at the top of the success curve, when they have the luxury of changing with due consideration. In the public sector, the change has been mandated by the severe budget cuts and this puts you automatically on the back foot.

My key advice would be to never lose sight of the overriding objectives of the organisation. The change programme should make delivery of these objectives more, not less certain. Clear and strong leadership is critical. The objective should be clear on the ”what’ but should leave the ‘how’ to those tasked with delivery. Try to set as few parameters and constraints as possible. No (or very few at least – allowing for the need to protect services) sacred cows.

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