Realising best value for money How can Public Accounts Committees draw attention to government waste? Keith Davis, Director of Cross Government Studies 3rd Westminster workshop, June 2013

Public Accounts Committees can improve value for money in different ways Sector reports can give evidence on specific cases identify general issues Overall (cross-cutting) reports can set expectations bring out common problems follow up on action taken make a difference across government challenge what has been delivered A series of reports can track progress Apply a consistent framework

Sector reports give evidence on specific cases 2011 report on DWP cost reduction - DWP lacks clear strategy 2011 report on DfID financial management – DfID lacks data to measure value for money

Sector reports allow the Committee to identify issues across departments 2011 report on NHS procurement indicates a wider issue

Overall PAC report can set expectations From 2007 efficiency progress report From 2010 VFM savings report

Overall report can bring out common problems Common problems identified by Westminster PAC: Data quality Sustainability of savings Centre not in control Risk of costs being reallocated not saved

Overall report can bring out common problems data accuracy issue 2010 Report: centre needs to get a grip

Overall reports can follow up on action taken

Reports can make a difference across government 2010 Report on consultancy - government response

Reports can challenge what has been delivered

A series of reports can track progress on subjects of perennial concern Consultancy (reports in 2002, 2007, 2010) Property (report in 2008, followed up in 2012) Reorganisations (report in 2012 following up NAO report in 2010) Procurement (reports in 2004 and 2007, NAO follow-up in 2006, 2010, 2012, 2013)

A series of reports can track progress 2007 Report: Progress towards 2008 target 2012 Report: Change in overall spending in 2010-11 2010 Report: Progress towards 2011 savings targets

A series of reports can apply a consistent framework A journey – structured cost reduction will encompass some/all of these elements. The point is that just focusing on the quick wins or optimising the current delivery model through tactical activity will not be enough to deliver the scale of cost reduction required. The graph illustrates the likelihood of cost reduction activity being sustainable – the columns within are not meant to be mutually exclusive but a progression through to a whole scale transformational change programme and ongoing innovation and continuous improvement. Explain tactical efficiency savings section: Quick wins Cutting obvious waste Often identified by frontline Prioritisation Based on assessment of costs/benefits/risks Cutting low value activity/programmes Programme slimming Process improvement Using frontline generated ideas Driving waste out of processes Localised process improvement activity (rather than full Lean business transformation) Performance improvement Using performance information Internal benchmarking collaboration and standardisation