Organising for Success - The UK National Audit Office From paternalism to professionalism Presentation by Bill Burnett Regional Workshop, Addis Ababa, May 2003

The Good Old days - the NAO in the 1970s NAO predecessor is a Government Department Staff highly regarded and feared but known only within the Civil Service Work is optional Most staff join for a life-time career Focus on clear point-hunting role Clear criteria for measuring success - an individuals contribution to the annual report

Key dates Crown Agents Scandal Adoption of Professional training Management Review John Bourn appointed Auditor General

1978 Management review NAO’s Peer review with expert advice New Policy Division - NAO’s twinning project with long term advisers from Arthur Andersen (!) l Change the audit law l Develop new approaches to Financial Audit including training all staff l Develop new audit manual and documentation system

The NAO Act 1983 Created the NAO as a separate non government organisation Gave legal backing to Value for Money Reports Allowed NAO to publish VFM reports separately from the accounts Gave Parliament the responsibility to fund the office

The NAO in 1988 faced many problems Poor internal efficiency Excessive delays presenting reports Limited use of IT Lack of appropriate skills Unknown outside Whitehall Lack of follow up of work

The NAO in 1988 faced many problems Very hierarchical structure Compartmentalised audits Poor internal communication Inward Looking organisation - we know best and are the best Poor Management of people

Obstacles to change Awareness of the problem Organisational structure Control and reporting system Professional conservatism & culture l Middle and senior managers l Staff Legal responsibilities

How to respond to these problems? Change model l Evolution rather than revolution l Adaptation rather than transformation A long-term perspective to change l People l Process l Technology

Actions taken - People Early retirement of staff Influx of new staff from outside the organisation New organisational structure Reduction of layers of Management New performance appraisal system

Actions taken - People Reduction in permanent staff & increased use of consultants Greater team working Investment in people l Training l Personal Development l Self Appraisal Outward secondments

Actions taken - Processes Introduction of job costing Internal and external accountability processes l targets set for direct and indirect work l focus on efficiency and timeliness l Who audits the auditors? l External review Focus on quality

Actions taken - Technology Introduction of office-wide IT systems Use of Computer Assisted Audit Techniques Migration to mobile computing Team 21 software

Actions Taken - Relationships Parliament Clients Media Public

Has it worked? Improved efficiency, effectiveness, timeliness and quality Increased public profile and professional recognition Better qualified and motivated staff

But more work is needed Audit is dynamic and must keep up with changes in Government Constant pressure to retain high quality staff Communication and staff management a constant problem Culture changes very slowly

Questions?