Public Sector Innovation and Reform in Northern Ireland – the view from central government

CIPFA NORTHERN IRELAND ANNUAL CONFERENCE 25th September 2014

Colin SullivanDirector of Strategic Policy & ReformDepartment for Finance & Personnel

• Rising demand for existing services

• Significant pressure on public finances - decreasing resources with increasing population

• Bottom of UK regional innovation ranking (12 of 12)

Innovation in Northern IrelandDrivers for Change

•Ethos – working with, rather than doing to the public sector

•Promoting VFM at a time of tightening budgets

• Recognising & responding to greater expectations on quality

• Engaging the public to promote ownership and input to the shaping of public services & stewardship

• Establishment of Public Sector Reform Division (PSRD) as an enabler to NICS and wider public sector

Overarching Reform Agenda to Improve Public Services:

Simon Hamilton MLA Minister of Finance & Personnel

• Executive’s Innovation Strategy, led by DETI

• Launched 18 September

• KEY areas:– Culture Change– Knowledge

Generation– Knowledge Exchange– Knowledge

Exploitation

Innovation in Northern IrelandResponse – NI Innovation Strategy

Ministerial sponsorship for concerted focus on reform

Innovation in Northern IrelandResponse – Public Sector

Reform

Approach to Public Sector Reform:

• Strategic

• Operational

• Engagement

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• Executive agreed to Review and established an Executive Sub-committee to manage process and develop subsequent response

• Review conducted over a 12 month period examining generic Reform Themes and specific Case Studies

• Terms of Reference being finalised by Executive Sub-Committee

• Recommendations and outcomes of Review to inform and shape future Programme for Government

OECD Review

Innovation in Northern Ireland

Theme – Improving Strategic Direction

• Digital Governance • Early Intervention/Prevention• Enhancing Outcomes for People: Delivering Cross

Cutting/Multi-Sector Reform Initiatives

• Strategic Human Resource Management • Procurement Reform • Streamlined Regulation and Processes

• Restructuring for More Effective Government• Openness, Transparency & Accountability• Citizens’ Engagement

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Innovation in Northern IrelandTheme – Improving Strategic Direction

Improving Strategic Direction

Improving Operational Delivery

Improving Engagementwith People

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• Ministerial level - bi-lateral meetings to highlight need for Reform & promote PSRD capabilities and resource. Establishment of ESC for Improving Public Services

• Development of Public Engagement programme to engage citizens & representative community groups

• Staff - Chief Executive’s Forum developing network of reform

minded public sector managers, greater staff recognition

• Partners - Working with and learning from others

Innovation in Northern IrelandTheme – Improving

Engagement

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Innovation in Northern IrelandTheme – Improving Engagement

Celebrating Excellence NICS AWARDS ― March 2015

Celebrating the excellence of individuals and teams working to improve Public Services.

Inaugural Awards will shine a spotlight on staff commitment and highlight outstanding successes.

Policy AwardCustomer Service Excellence AwardLeadership Award

Professional of the Year AwardEmployee Engagement AwardWorking in Partnership Award

Timescale for Impact

INPUTS

Listen/Learn with stakeholders about KeyParameters

BenchmarkKeyParameters

Design Response initerative process with stakeholders

ImplementResponse

BenefitsRealisation

IMPACT

PHASES OF STRATEGIC RESPONSE

Innovation in Northern IrelandTheme – Improving Operational Delivery

Developing the Tool Box

1. Sharpening existing tools –a) Consultancy Services - internal support - organisational development,

strategic planning, process improvementb) Economic performance and efficiency reviews.

2. New tools – c) Innovation Lab d) Harnessing the best staff ideas – Ideas Engine e) Culture Changef) Alternative Models of Deliveryg) Use of Finance

12Public Sector Reform – Innovation Labs

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NI Public Sector Lab

“We make a difference by creating a safe space for key players to formulate and test ideas, make mistakes and learn from them, to develop refined, added-value solutions to complex challenges”

A regional Lab offering a fresh approach to developing both strategic and tactical solutions to complex problems

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• April 2014 DFP Minister launched NI Public Sector Innovation Laboratory

• New way to address process improvements and policy development challenges

• Help build local design capacity & involve more diverse skills in developing solutions, including:

• Behavioural Economics

• Social Anthropology

• Co-Creation / Co-Design

• Academic / Subject Matter Experts

• Inaugural Lab on Regulatory Impact Assessment completed in June 2014

• Further labs being planned

1First Lab in to Public Sector

2Innovative SkillsGood Facilitation

Strong Project Management

3Bias towards

action &Rapid Experiment

Design Aspects of Lab

Current

portfolio

of Labs:

Completed

• Innovation Scheme

• Regulatory Impact Assessments

Planning

• Innovative Procurement

• Dementia• Big Data• Unscheduled

HealthCare• Innovative Culture

in Public Sector

June 2014

Adaptive Trial

3,500 Staff

2015

Finalised Package

27,500 Staff

• Promoting innovation in the workplace• Engaging Staff• Creation of an Innovation Community

Considering -

Staff Challenge Prizes

Policy or Operational ProblemAdvertise on internal websiteOffer prizes to stimulate participationMust have a sponsor

External Challenge Prizes

Policy or Operational ProblemPublished on website similar to USA

challenge.govPrize commensurate with potential

benefits of a viable solution

Building innovation into NICS Culture• Build Capacity and appetite for innovation

• Engage Staff at Every Level

• Create Culture of Continuous Improvement

Innovation in Northern IrelandTheme – Improving Operational Delivery

Culture Change

Continuous improvement

embedded

Flexible/fluid environment

Adaptive

Proactive

Participative

Service keeps pace with evolving technologies

Current Culture ? Target Culture ?

Risk Averseness

Fear of Failure

Fear of censure

Wedded to the present

Very slow to modernise and

adopt new technologies

Resistance to change

Constrained by rules and processes

to generate action plans for areas to

be addressed.

Creating an innovative culture

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• Work with Central Procurement Directorate (CPD) to provide advice and support to Departments in developing new models of delivery

• Make available learning from elsewhere

• Engage with Departments to identify pilot projects

• Learning from best practice elsewhere

Social Impact Bonds

Mutuals / Cooperatives

Payment by

Results

Alternative Delivery Models

Innovation in Northern IrelandTheme – Improving Operational Delivery

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• Financing of upfront investment (Change Funds) in cross-cutting reform initiatives and preventative measures designed to generate savings in the longer term

• Invest-to-Save type principles

• Developing Criteria • NI could take this approach - subject to Executive approval in

2015/16

Use of Finance

Innovation in Northern IrelandTheme – Improving Operational Delivery

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Innovation in Northern IrelandGovernance, Advice & Support

Advisory CouncilEstablished by DFP Minister to:

• Assist with shaping and developing reform• Assist with strategy implementation• Offer specialist expertise• Provide independent advice

 

Executive Sub-Committee Established by Executive to:

• Oversee strategic review• Oversee outworkings of review• Consider & advise on cross-cutting Reform issues

 

Reform Champions Appointed in each NICS department as promoters of reform agenda in their area and key liaison point for PSRD to be combined with the role of the innovation champions.

Questions ?

CIPFA NORTHERN IRELAND ANNUAL CONFERENCE 25th September 2014