1. Efficiency and Civil
Service Reform:
Reflections…
Katherine Kerswell
Director General, Cabinet Office
PPMA, Leeds, 8 May 2014

2. 2
Context
Sources: Budget 2014; Spending Review 2010, ONS, OBR.
Total public sector spending and receipts (Excludes
Royal Mail and APF transfers.)
“The job of changing our country is far from
done. The sheer scale of the challenges that
still face us – and the need to hold our own in
a competitive world mean that we need to
change the way government works.
“Put simply, it needs to be sharper and
quicker. We need the whole machine to be
more agile, more focused on delivery and on
getting results.
“The core of the Civil Service Reform Plan is
this: harnessing the world-beating talents of
those who work in our Civil Service and
making sure they aren’t held back by a system
that can be sclerotic and slow.”
The Prime Minister, Civil Service Reform Plan
launch, June 2012

3. 3
Efficiency and Reform and Civil Service
Reform
The Efficiency and Reform Group (ERG)
works in partnership with HM Treasury
and government departments to deliver
efficiencies, savings and reforms on
behalf of UK taxpayers. ERG aims to
save money, transform the way public
services are delivered, improve user
experience and support UK growth.
•Acting as ‘one customer’
•Assuring delivery of government’s most
significant projects
•Digital by Default
•Supporting UK growth
•Driving a clear, evidence-based approach
“Unified,
Open,
Accountable
and Skilled”

4. 4
Future of Government Services - 5 Public
Service Reform Principles
“In the UK, public sector reform has been an
immediate response to the urgent need to
reduce the national deficit. But there is a
greater prize at stake - the opportunity to
create 21st century services: cost-effective and
sustainable for the future, but also faster and
more responsive to people’s needs.
“So we need a new paradigm for government
services. One that delivers better services
focused on user need, at much lower cost, in a
way that supports economic growth.”
Minister for the Cabinet Office, February 2014

5. 5
Open
• Open Data and Transparency
• Open Policy Making - the
Contestable Policy Fund
• What Works Centres:
• Crime Reduction
• Early Intervention
• Local Economic Growth
• Health and Social Care
• Educational Attainment
• 12 actions to professionalise policy
making

6. 6
Tight
• Property
• IT
• Procurement
• Project Delivery
• Management Information
Source: MPA Annual Report, 2013

7. Loose
• Operations
• Alternative models, e.g. creation of
public service mutuals:
• Pathfinders
• Mutual Support Programme
• Since 2010, mutual numbers have
increased to nearly 100
• They employ over 35,000 people,
delivering around £1.5 billion worth of
services
• Absenteeism falls by 20%; staff
turnover falls by 16%
7

8. 8
Innovation
“Every day we must ask, are we doing
things better for the people we serve?
Every civil servant should be proud of their
role, work to deliver exceptional service
and challenge colleagues to do the same.”
Civil Service People Survey
• Seven of the survey’s ten headline scores
are at or above their 2009 position
• Leadership and managing change is the
strongest driver of engagement, and
remains a major challenge
• Scores relating to innovation are strong and
improving
Questions All Civil
Service
SCS only
I believe I would be supported if I try a new idea, even if it may not work 67% 93%
My performance is evaluated based on whether I get things done, rather
than solely follow process
65% 84%
I have the opportunity to contribute my views before decisions are made
that affect me
36% 70%
I think it is safe to challenge the way things are done in [my organisation] 38% 70%
Source: Civil Service 2013 People Survey

9. 9
Digital by Default
• Putting users at the heart of public
services
• Digital Exemplars, for example:
– Electoral Registration (Beta)
– Apprenticeship applications (Alpha)
– Student finance (Live)
– View your driving record (Beta)
– Apply for carer's allowance (Beta)
– Vehicle management (Alpha)
– Claim Personal Independency
Payment (Discovery)
– Universal Credit (Beta)
– Digital Self-Assessment (Beta)
• Migration of Government websites to
GOV.UK

10. 10
Capability and the Battle for Talent
“We need leadership that recognises the
importance of [the Capability] agenda and
focuses in on an honest assessment of where
we are now both departmentally and
corporately.
“This is mission critical for the Government
and mission critical for the civil service. We will
be forgiven many things but we will not be
forgiven if we are not capable of doing the job
we are being asked to do.”
Sir Bob Kerslake to the Top 200, January 2014
Leadership &
Management
of Change
Leadership &
Management
of Change
DigitalDigital Project
Delivery
Project
Delivery
CommercialCommercial

11. 11
Challenges ahead
Current spending
on public services
and administration
“...the job is far from done. Our country still borrows too much.
We still don’t invest enough, export enough or save enough.
So today we do more to put that right. This is a Budget for
building a resilient economy. ...
“[The deficit] is still one of the highest in the world – so today
[Budget Day] we take further action to bring it down.”
The Chancellor, Budget Speech, March 2014
Sources: HM Treasury Budget 2014, HM Treasury Public Expenditure Statistical Analyses, July 2013

12. 12
Conclusions
• Productivity – delivering more
with less
• Cost accounting – understanding
and challenging the cost base
• Collaboration and co-operation –
whole public sector
transformation
• Common platforms – everyone
welcome...!
• Digital by design
• Innovation and experimentation
Total public services output, inputs and productivity
estimates 1997-2010
Source: ONS Public Service Productivity statistics

13. Thank you
Any questions?
katherine.kerswell@cabinet-
office.gsi.gov.uk