NPM in the UK: a local government perspective

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Presentation to SERPLAG, Miinas Gerais State, Belo Horzonte, Brasil. 11 August 2011

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NPM in the UK: a local government perspective

  1. 1. New Public Management in the UK: a local government perspective Dr Gordon Murray Belo Horizone, Minas Gerais, Brazil 11 August 2011
  2. 2. 11 August 2011 Belo Horizone, Minas Gerais, Brazil
  3. 3. LG Improvement & Development <ul><li>Local government’s own improvement agency formed in 1999 </li></ul><ul><li>‘ Top sliced’ support </li></ul><ul><ul><li>Peer review </li></ul></ul><ul><ul><li>Beacon Councils </li></ul></ul><ul><ul><li>Advice, guidance and support </li></ul></ul><ul><li>National grant funded programmes </li></ul><ul><li>Fee earning services </li></ul><ul><li>Knowledge collection & sharing </li></ul><ul><li>Communities of Practice </li></ul><ul><li>A voice with central government </li></ul>Belo Horizone, Minas Gerais, Brazil 11 August 2011
  4. 4. LGID procurement examples <ul><li>National Procurement Strategy for local government </li></ul><ul><li>Member & Senior Manager guides to procurement </li></ul><ul><li>Member & Senior Manager procurement training </li></ul><ul><li>Procurement Beacon Councils </li></ul><ul><li>Procurement Fitness Checks </li></ul><ul><li>Passport 2 Procurement eLearning </li></ul><ul><li>Library of Local Procurement Performance Indicators </li></ul><ul><li>Productivity & Efficiency Exchange </li></ul>Belo Horizone, Minas Gerais, Brazil 11 August 2011
  5. 5. Milestones for local government Belo Horizone, Minas Gerais, Brazil 11 August 2011
  6. 6. 1957: Interdependence <ul><li>Treaty of Rome </li></ul><ul><ul><ul><li>Equal treatment </li></ul></ul></ul><ul><ul><ul><li>Non-discrimination </li></ul></ul></ul><ul><ul><ul><li>Proportionality </li></ul></ul></ul><ul><ul><ul><li>Transparency </li></ul></ul></ul><ul><ul><ul><li>Objectivity </li></ul></ul></ul><ul><li>‘ Central Purchasing’ </li></ul>Belo Horizone, Minas Gerais, Brazil 11 August 2011
  7. 7. 1974: Corruption <ul><li>Corruption in award of contracts </li></ul><ul><li>Code of Conduct for councillors and officers </li></ul>Belo Horizone, Minas Gerais, Brazil 11 August 2011
  8. 8. 1979: Centralism <ul><ul><li>Commissioning council </li></ul></ul><ul><ul><li>TQM </li></ul></ul><ul><ul><li>Performance management </li></ul></ul><ul><ul><li>Cost reduction </li></ul></ul><ul><ul><li>Make/Buy </li></ul></ul><ul><ul><li>Compulsory Competitive Tendering </li></ul></ul><ul><ul><li>Privatisation </li></ul></ul><ul><ul><li>Private Finance Initiative </li></ul></ul>Belo Horizone, Minas Gerais, Brazil 11 August 2011
  9. 9. 1997: Localism <ul><li>Reinvigorating democracy </li></ul><ul><li>Best Value </li></ul><ul><li>CPA </li></ul><ul><ul><li>from ‘poor’ to ‘excellent’ </li></ul></ul><ul><ul><li>Externally graded by Audit Commission </li></ul></ul><ul><li>Beacon Councils </li></ul><ul><li>‘ The Third Sector ‘Voice’ and ‘Choice’ </li></ul><ul><li>Policy through procurement </li></ul><ul><li>Shared services incl </li></ul><ul><ul><li>Top teams </li></ul></ul><ul><ul><li>Legal </li></ul></ul><ul><ul><li>Procurement </li></ul></ul><ul><li>Strategic Commissioning </li></ul><ul><li>Localism </li></ul><ul><li>‘ Total Place’/Community Budgets/Pooled budgets </li></ul>Belo Horizone, Minas Gerais, Brazil 11 August 2011
  10. 10. 2010: Austerity & collaboration <ul><li>28% cuts in local government grant </li></ul><ul><ul><li>Front loaded </li></ul></ul><ul><li>Self regulation </li></ul><ul><li>Sector led improvement </li></ul><ul><li>Collaboration </li></ul><ul><ul><li>Shared services = 25% cost reduction </li></ul></ul><ul><ul><li>Community budgets = 15% cost reduction </li></ul></ul>Belo Horizone, Minas Gerais, Brazil 11 August 2011
  11. 11. Better outcomes for citizens Belo Horizone, Minas Gerais, Brazil 11 August 2011
  12. 12. Strategic commissioning Strategic needs assessment Decide priorities and outcomes; pool budgets Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle Belo Horizone, Minas Gerais, Brazil 11 August 2011
  13. 13. The commissioning and purchasing cycles, and procurement Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle Determine the need Supplier selection Contracting Ordering Expediting Follow-up/ evaluation The purchasing cycle procurement Belo Horizone, Minas Gerais, Brazil 11 August 2011
  14. 14. Getting to collaboration Belo Horizone, Minas Gerais, Brazil 11 August 2011
  15. 15. Collaboration strategy Conversation (networking) Coordination Cooperation Collaboration (Derived from Huxham, 1996) Belo Horizone, Minas Gerais, Brazil 11 August 2011
  16. 16. 10 Lessons <ul><li>Political organisations are not the same as private sector </li></ul><ul><li>Walk before you run </li></ul><ul><li>Political leadership critical </li></ul><ul><li>Focus on outcomes </li></ul><ul><li>Cash should be pulled by outcomes not the silo </li></ul><ul><li>Sector led improvement works </li></ul><ul><li>Invest in skills development </li></ul><ul><li>Tailor KPIs to reflect outcomes and change management </li></ul><ul><li>Planned change doesn’t just happen but needs to be led and supported </li></ul><ul><li>Unplanned change happens and we need to increase environmental scanning and risk assessment skills </li></ul>Belo Horizone, Minas Gerais, Brazil 11 August 2011
  17. 17. Making a difference is not easy: Persevere www.slideshare.net/DrGordonMurray [email_address] www.twitter.com/DrGordy www.drgordonmurray.co.uk Belo Horizone, Minas Gerais, Brazil 11 August 2011

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