CIPFA Audit Conference 2013: Keynote: Meeting the Performance Challenges

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Gary Bandy's presentation to the CIPFA Audit Conference 2013 considered performance challenges from the point of view of adaptive problems, ones that need to be addressed through leadership and collaboration rather than scientific management.

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CIPFA Audit Conference 2013: Keynote: Meeting the Performance Challenges

  1. 1. Recognising thePerformance ChallengesGary Bandy22 May 2013
  2. 2. 3 years as finance director
  3. 3. Since 2005 ...
  4. 4. some health work ...
  5. 5. more recently, policing ...
  6. 6. some teaching ...
  7. 7. and I wrote a book.
  8. 8. I am not going to talkabout graphs of doom
  9. 9. “If keeping someone’s attention ina lecture was a business,it wouldhave an 80% failure rate.”—Dr.John Medina,Brain Rules
  10. 10. Adaptive problems
  11. 11. “The rational approach tomanaging organizations alwayscompetes with, and can bedominated by, continuallychanging, grounded, ad hoc,trial-and-error approaches—thatis, by muddling through.”—Jones and Pendlebury (2010: p28)
  12. 12. “Today’s problems come fromyesterday’s‘solutions’.”—Peter Senge,The Fifth Discipline“The easy way out usually leadsback in.”“Dividing an elephant in half doesnot produce two small elephants.”
  13. 13. Technical problems
  14. 14. Critical problems
  15. 15. “Some problems are socomplex that you have to behighly intelligent and well-informed just to beundecided about them.”—Laurence J.PeterAdaptive problems
  16. 16. Tightening ourbelts is notgoing to beenough
  17. 17. Is it a technicalor adaptiveproblem?
  18. 18. “Your goal shouldn’tbe to buy players.Your goal should beto buy wins.In orderto buy wins youneed to buy runs.”
  19. 19. Competition challenges
  20. 20. Only one product isthe cheapest.The restcompete on design.
  21. 21. Markets rely on failure
  22. 22. Public services can’ttolerate failure
  23. 23. The Smartest Guys in the Room (2005)
  24. 24. “You can’t treat electricitylike oranges. It’s the lifebloodof society.”
  25. 25. “A free market is goddamexpensive to customers.”
  26. 26. Public value challenges
  27. 27. Strategic Trianglepublic value aimsoperationalcapacityauthorisingenvironment publicmanager—Moore, Creating Public Value (1995)
  28. 28. operational capacity ≠ organisational capacityorganisationaloperational
  29. 29. operational capacity ≠ organisational capacityoperationalorganisational
  30. 30. “Financial performance isunderstood as the means toan end rather than an end initself.”—Moore, 2003
  31. 31. Public value scorecardMeasures of creatingpublic valueOrg vision & missionStrategic goalsOutputs that createoutcomesOrg outputsProductivityEfficiencyFinancial integrityStaff morale & capacityOrg learning &innovationFunder relationsVolunteer relationsRelations with govt &regulatorsReputationCredibilityMeasures of expandingsupport & authorisationMeasures of buildingoperational capacity
  32. 32. “When a measure becomesa target, it ceases to bea good measure.”as re-stated by Marilyn StrathernGoodhart’s Law
  33. 33. Accountabilitychallenges
  34. 34. Accountability Trianglemanager/agentauditorowner/principal
  35. 35. —Evans, 1999“Governments try to avoid accountabilityto the maximum extent, that is, they try toavoid public exposure of their blundersand misdeeds and rewards to friends,because such exposure may erode publicsupport, or at least public acquiescence,of their holding office.”
  36. 36. People want more transparencyfrom their governments
  37. 37. Participatory Budgeting
  38. 38. Armchair auditors
  39. 39. “Information, while theessential ingredient of account-ability, alone does not ensureaccountability.”—Funnell, 2003
  40. 40. What might this mean for auditors?
  41. 41. You’ve got to produceaudits from the moneyyou’ve got
  42. 42. You want toadapt andsurvive© Natural History Museum
  43. 43. What can be done?
  44. 44. “problem-driven,iterative adaptation”
  45. 45. Auditees changing tomeet their challenges willchange what you do
  46. 46. Objective? Extinguishfires or save lives
  47. 47. These save lives!
  48. 48. From commissioninga street cleaning serviceto commissioning clean streets
  49. 49. Community Budgets:complex families in Little Hulton£0£40,000£80,000£120,000£160,000Now Future?Welfare BenefitsPlannedReactive
  50. 50. So, what is the challenge?
  51. 51. Contact megary.bandy@mac.com07871 389500www.garybandy.co.uk@garybandyuk

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