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How well placed are you to deliver? Managing and improving business operations Alec Steel UK National Audit Office @alecsteel_

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Page 1: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

How well placed are you to deliver?

Managing and improving business operations

Alec Steel

UK National Audit Office

@alecsteel_

Page 2: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

A whole

management

system

approach

How to change

What to focus on

Managing and improving business

operations

Page 4: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

Share our insights from across

sectors

Central and local

UK government:

Private /

other

sectors:

International:

Page 5: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

The role of the National Audit

Office

• We scrutinise public spending on behalf

of UK Parliament

• We help to hold government

departments to account for how they

use public money

• Our work helps public service managers

to improve performance and service

delivery, nationally and locally

Page 6: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

A lot at stake for government

• Value for money at stake - £600 billion

spent on providing services 70% of staff in

operational roles

• 2005 – significant investment in operations

management across UK government

• 2011 - all departments must have a

continuous improvement strategy

• Using these principles to manage and

improve is a good thing……..if done well

Page 7: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

What we mean by ‘government’

• It is big

• It is complicated

• It does everything

• It has all the complications of a

multinational corporation…

• …plus some more

Page 8: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

The questions we’re

interested in answering

1. How capable is an organisation in

managing and improving business

operations?

2. What are an organisation’s priority

business problems?

3. How can this understanding be used

to achieve sustainable

improvement? 5

Page 9: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

Our components of good

operations management

Using Information

to manage and

improve

performance

Using continuous

Improvement to

target areas of

most benefit

Using Strategy

to define and

focus process

activity

Helping People

manage and

improve process

performance

Ensuring the end to

end Process has the

capacity and

capability to meet

demand

Operations and Process

Management

1 2

345

Page 10: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

Strategy Information People

Alignment between the

‘corporate centre’…

….and operational

delivery

Testing 40 questions across

the 5 areas

7

ImprovementProcess

Management

Alignment of the organisation across the 5 areas – the ‘corporate centre’

Alignment of operational delivery – services / processes

Page 11: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

UK government capability 2015

Page 12: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

Using strategy to inform operations

Page 13: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

Improving the business

Page 14: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

8

Average operations and process management maturity

Relevant for all types of

organisation

Page 15: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

8

Average operations and process management maturity

Relevant for all types of work

Page 16: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

What to focus on

Page 17: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

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Key theme: customer focus

Page 18: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

8

Key theme: end to end system

Page 19: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

8

Key theme: management and

leadership

Page 20: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

8

Key theme: using information

Page 21: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

8

Improvement programmes ≠

more capable organisationsAverage process management maturity

Page 22: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

Doing it right or doing it now?

Time

Improvement

‘building a better

organisation

system’

‘applying tools’

Page 23: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

Moving on from a localised

benefit approach

Operational / specific

process focus

Organisation

approach

1

2

3

Page 24: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

Challenge – how are we doing now….

Achieving benefits does not start with doing

improvement activity

…what should we prioritise to build an

effective management system

Page 25: Helping the nation spend wisely Steele NAO presentat… · Title: Helping the nation spend wisely Author: STEEL, Alec Created Date: 4/19/2016 11:18:59 AM

8

Thanks for your time

Want to continue the conversation?

• @alecsteel_

[email protected]