pse M

ay/Jun 09 vol 8 no.3

t h e e s s e n t i a l g u i d e t o p u b l i c s e c t o r m a n a g e m e n t

Lean and Six SigmaCan they really be applied to the public sector?

FIVE MINUTE INTERVIEWRhodri Morgan AM

THE EQUALITY BILL How will the public sector be affected?

PROJECT AND PROGRAMME MANAGEMENT The cost of failure

May/Jun 09

COVER STORY

Lean and Six Sigma

Can they really be applied to the public sector?

12

72

08

54

10

48

IN THIS ISSUE

REGULARSEditor’s Comment NewsComment Buyers GuideEventsSubscriptionThe Last Word

03040865707172

pse M

ay/Jun 09 vol 8 no.3

t h e e s s e n t i a l g u i d e t o p u b l i c s e c t o r m a n a g e m e n t

Lean and Six SigmaCan they really be applied to the public sector?

FIVE MINUTE INTERVIEWRhodri Morgan

THE EQUALITY BILL How will the public sector be affected

PROJECT AND PROGRAMME MANAGEMENT The cost of failure

May/Jun 09

14

THE EQUALITY BILL AND THE PUBLIC SECTOR

Although it will not come into force for over a year, the Equality Bill will have a significant impact on the public sector. Now is the time to get to grips with the proposed legislation and understand the extent to which the public sector will be affected, says Richard Kenyon

PUBLIC SERVICES VULNERABILITIES AND THE CREDIT CRUNCH

The tumultuous events which have taken place in the international finance system are damaging important areas of the public infrastructure of which local government and the NHS are prime examples, says Dr Beth Kewell

FIVE MINUTE INTERVIEW - RHODRI MORGAN

Despite the current recession, the Welsh Assembly Government is proving to be a strong force in steering Wales out of choppy economic waters

THE COST OF FAILURE IN PROJECTS AND PROGRAMMES IS SIMPLY TOO HIGH

Project and programme management has come a long way in the public sector. Many public sector projects and programmes achieve great results but some achieve the kind of adverse publicity which is damaging to the profession and to confidence in senior managers’ stewardship of the public purse, says Kevin Parry

TAKING EDUCATION OUT OF THE CLASSROOM

From primary schools to colleges, virtual learning tools are arguably more effective than paper-based teaching methods as they engage children through the mediums that they use on a daily basis, says Carla Baker

EIAs - ADDING VALUE OR POLITICAL CORRECTNESS GONE MAD?

Equality impact assessments have the potential to be a mechanism for demonstrating accountability and driving positive social change but there is a real sense of indifference amongst the very people responsible for carrying them out, says Professor Peter Latchford

Making change work 44

Public services vulnerabilities and the credit crunch 10

Five minute interview - Rhodri Morgan 12

pse �May/Jun 09

public sector executive contents

When honesty is not the best policy

o Cheltenham Borough

Council lost its case to

sue former ‘managing

director’ Christine

Laird for £1million

for not disclosing her past

experience of depression.

The council pursued legal action

for fraud and negligence against

her at the high court on the

grounds that she deceived them

about her medical history and

suitability to take on the post.

They went to court with the view

that Mrs Laird claimed she was

fit to take on the most senior

management role when in fact

she was suffering from mental

health problems.

The council’s claim was for

£982,673.19 against Mrs Laird

for sustained loss and damages,

plus costs, a figure which was

supported in court by witnesses,

invoices and other financial

documents.

They believed the case to

be effectively a simple one;

whether or not its former

managing director fraudulently

and negligently withheld

vital health information on

the pre-employment medical

questionnaire.

After the ruling, the current

Cheltenham Borough Council

chief executive Andrew North

said: ‘’Had the council known

Mrs Laird’s medical history it

would most probably not have

employed her and incurred the

costs it has.”

Isn’t this exactly why so

many people who suffer from

depression and other mental

health problems feel obliged

to lie about their medical

history when applying for jobs

– because they believe that

they stand no chance of being

considered for a position if they

disclose this information.

The Department of Health

suggests that 40 per cent of

people who claim incapacity

benefit have a mental health

problem. They also suggest that

most of them want to work.

One survey shows that only

around 37 per cent of employers

are willing to take on someone

with a mental health problem

compared to more than 60 per

cent who would be willing to

take on someone with a physical

disability.

The Social Exclusion Unit also

found that 55 per cent of people

with a mental health problem

found that stigma was a barrier

to employment.

The choice seems to be clear:

disclose and face discrimination

or don’t disclose and run the risk

of being ‘found out’ later and

potentially sacked.

I’m no lawyer, but by suggesting

that had they known that

Christine Laird had a history

of depression they would have

decided she was unfit for the

job, wouldn’t the council have

left itself open to a disability

discrimination claim?

It might not be unreasonable

for an employer to consider a

job applicant with no history

of mental health problems to

be more suitable for a stressful

senior management position

than one with a history of

depression, but it would

probably be illegal.

S

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Decisions for tomorrow made today

EDITOR’S COMMENTCONTRIBUTORS

public sector executive

TT-COC-002610

Average circulation for the period 1/8/08 – 31/10/08 is 7001

pse �May/Jun 09

CHANGE MANAGEMENT

he change imperative

The need to change

the way in which

an organisation performs,

whether it be public or private

sector based, is driven by one

of the following dynamics:-

competition, cost, service,

environment & technology.

The degree to which an

organisation must change

and the time available will

dictate the approach adopted

i.e. project based, programme

of interconnecting projects

or a complete organisational

transformation.

These approaches are not

mutually exclusive but rather

a continuum of purpose,

approach, style, consultation,

inclusion and communication.

However, matching the

approach to the need is the first

step in ensuring a successful

outcome.

Force for change

The force for change in an

organisation will inevitably

meet with differing levels of

acceptance and resistance. It

is an obvious assertion but

none the less vitally important

to understand, namely that

organisations are comprised of

individuals, each of whom will

have an agenda and reasons

to either embrace the change

agenda or oppose it.

Lewin describes this in terms of

a ‘force field’ of energy (fig 1.)

The rate and direction of change

is a result of the interaction

of the forces for change and

those against which suggests

combining strategies of

increasing pressures for change

whilst reducing resistance to

change.

In order to overcome the

opponents to change it is

necessary to understand the

reasons for resistance and devise

strategies to address these.

Reasons for resistance are

either rational in nature (“I’m

uncertain about the change”),

politically motivated (“this

will affect my power base”) or

emotional (“I’m anxious about

coping with the change”).

Typical reasons include

uncertainty; anxiety; viewed as

a criticism; reluctance to write

off the investment in existing

arrangements; reluctance to

give up current status/benefits;

belief in the un-workability of

the changes.

Understanding the nature of the

resistance to change facilitates

the development of the strategies

for overcoming that resistance.

Strategies for change

Strategies for change range

from the rational or ethical

based approaches – education,

participation & facilitation - to

the political based approaches

– negotiation, manipulation

& coercion. A well managed

change programme will include

the rational/ethical based

strategies before engaging in

political based approaches.

Organisational Culture

How people work together can

have a significant impact on

organisational effectiveness

and the ability to deliver the

change strategy. As often quoted

“the way we do things around

here” can mean the difference

between a change strategy well

executed and a dysfunctional

organisation.

The cultural web (Johnson

& Scholes) is a very useful

analytical tool for understanding

the elements of culture.

The interaction between

Managing change, improving performance & understanding the cultural barriers to change

T

Cont. overleaf

Fig 1.

Fig 2.

Paul Foord

With 50% of change programmes failing, Paul Foord discusses the various elements of a successful change programme and introduces an inclusive approach to large scale organisational transformations

pse 41May/Jun 09

CHANGE MANAGEMENT

organisational structure, control

systems, power structures,

routines, rituals/myths and

organisational symbols creates

a unique recipe of how people

work together (fig 2.)

Analysing the cultural impact

on the organisation yields

important information in

terms of which elements of the

culture either support or hinder

the deliverance of the change

strategy.

The change agenda

The change agenda is unique

to each organisation and will

depend on the level of change

required and the circumstances

surrounding the need to change,

as discussed above. However,

the change journey, if it is to

be effective, will include the

following activities ( “4r” model

by Gouillart & Kelly) (fig 3)

The process starts with

“reframing” and is iterative and

not linear. Indeed, companies

who have adopted a continuous

change agenda will revisit each

segment in a circular fashion.

Implementation – the

principles of successful

change

The following principles are

found in every successful change

programme:-

· Plan.

· Ensure the changes are

introduced gradually.

· Integrate different levels of

change at the individual, team

and department level.

· Communication of the

changes and benefits.

· Assurances of security

for those who might be

threatened by the changes.

· Cultural acceptance of change

via HRM policies.

· Leadership.

· Persistence.

· Continual monitoring.

A change model – large scale

business transformation

A large scale business

transformation which enjoys

popular support within the

organisation would typically

include the following change

model.

The whole organisation would

be involved in the process

involving a team based

journey of discovery, learning,

analysis, critique, redesign and

implementation.

The process includes the

establishment of a change

programme which is managed

by the board with individual

directors championing the

delivery of key objectives via a

change delivery team.

Each team will be comprised of

the senior ‘movers & shakers’

in the business i.e. tomorrow’s

leaders.

They will analyse the ‘as is’

critique their findings with the

key stakeholders, design the ‘to

be’ plan the implementation of

the changes and implement the

plan.

The whole process is supported

by excellent communications

across the organisation and

the involvement of everyone

concerned. Typically this might

look like this (fig 4.)

In summary

Before embarking upon a change

programme it is important to

consider the above issues and

prepare a planned response.

FOR MORE INFORMATION

Paul FoordT 020 8348 5404E p.foord@jamesford.co.uk W www.jamesford.co.uk

Fig 3.

Fig 4.

42 pse May/Jun 09

CHANGE MANAGEMENT

ne of our key

learnings about

change in any sector

is that it needs to

be designed and rolled out in

a manner that is sensitive to

the needs of the organisational

context. Why is that important?

Well, change needs to be

“context sensitive” in order not

to waste resources on change

programmes that have no

meaning or relevance for lower

levels of staff. The failure to see

relevance in change results in

these staff disengaging from the

change process and overall the

desired change is not delivered.

Eight key contextual features

need to be assessed before

going on to take decisions about

change design.

Considering these eight features

in turn, we can assert that public

sector organisations are often

expected by politicians to deliver

significant transformational

change within a short time

frame. The reason that these

unrealistic deadlines are set

is because frequently both

politicians and senior managers

fail to adequately assess the

scope of the change, particularly

in terms of the depth of

transformation required. Whilst

reorganising or restructuring

can be achieved on paper in

a short period of time, the

cultural transformation of staff

behaviours and attitudes can

take years and years.

Added to this are problems

in terms of capacity: public

sector organisations are given

few resources (either money

or people) to invest in change

implementation as they find it

difficult to justify the diversion

of resources from the delivery of

front line services.

This hampers their ability to

deliver change efficiently. As one

middle manager expressed it: “in

my mind I’m running but I’ve

got lead boots on in trying to get

there.” Couple this with minimal

experience of implementing

transformational change at

middle and lower levels and one

can also see that capability acts

as a constraint as well.

We found that, despite internal

merger activity within our public

sector cases, the original local

sub cultures were ‘alive and well’

long after the formal merging of

structures.

The impact of this local diversity

was that staff still felt huge

loyalty and identity with their

local offices and local managers

– they were seen as powerful

figures in the geographically

distributed office locations.

However, the same level of

staff recorded very low levels of

trust in senior managers at the

centres of these organisations.

Despite these differences in

levels of trust, the programmes

we researched failed to engage

local managers in the practical

design of change concentrating

instead on centralised directives:

“that’s the big problem as I see

it with –the department, they

– they’ve sorted the top out first

and what they should have been

sorting out is the bottom where

the work is actually done.”

Feeling ignored by the senior

teams at the centre, local

managers often declined to

communicate the reason for the

imposition of change initiatives

instead blaming the strategic

centre for their invention. This

lessened the levels of awareness

and commitment for change at

lower levels and overall reduced

the organisation’s readiness for

change.

Nevertheless this lack of

awareness of the need for change

is counterbalanced by our survey

finding that a high proportion

of people are “prepared to put

in extra effort to help their

organisation be successful”. In

addition, compared with the

private sector, we found equally

high perceptions of justice and

Making change workThe Change Management Consortium Research Project examined change management activities across both the public and private sector over a four year period. Having analysed over 200 interviews and 5,000 survey responses from around 12,000 employees, we can identify key differences between the public sector and the private sector change agendas. It is these differences we consider in this article and also draw down some general lessons about how to manage change within the public sector in an efficient and effective manner, say Julia Balogun and Veronica Hope Hailey

PROFESSOR VERONICA HOPE HAILEYis Professor of Strategic Human Resource Management at the Cass Business School, City University

PROFESSOR JULIA BALOGUNis The Professor Sir Roland Smith Chair in Strategic Management and Director of the Lancaster Centre for Strategic Management

O

my experience of staff is that they don’t particularly want airy, fairy concepts

“ “

44 pse May/Jun 09

CHANGE MANAGEMENT

fairness of management practices

at a local level. This two positive

aspects of organisational climates

need to be preserved.

So, given these kinds of

organisational contexts, how

should change be designed

so that it is both efficient and

effective?

First, senior managers should

break these huge change

agendas into bite sized

pieces, concentrating first

on performance uplifts and

restructurings before going on to

effect cultural transformations

through changing attitudes and

behaviours.

This phased change path should

be explained to all levels of

staff so that there expectations

about delivery times can be

managed. Whilst the general

strategic direction can be set

centrally, the start point for real

cultural transformation must be

decentralised to local offices.

Local managers must be allowed

to participate in the formulation

of communication and change

programmes. Rather than using a

directive style of communication,

senior managers need to

encourage local managers to

voice their views and opinions

about roll out.

The role of local leaders is critical

in translating centrally derived

directives into locally relevant

and appealing initiatives. When

we interviewed lower levels of

staff they said they wanted the

change process described in

practical terms in language they

could understand and with clear

milestones in place to measure

progress.

As a local manager explained to

us: “I don’t think there’s enough

come out to actually, to actually

explain. And I mean people

want explanations, they want

somebody to actually say what

this means.

You know my experience of staff

is that they don’t particularly

want airy, fairy concepts. They

want to know how that’s going to

affect them in terms of what they

are doing.”

At the same time managers need

to be clear about what the end

target is: are they asking people

to change their performance

targets or their behaviours or,

perhaps, their values.

Whatever the decision, the

appropriate level of investment

needs to be made in change

levers and change activities.

For instance, if values change

is the desired outcome, then

substantial investment will have

to be made in a whole raft of

training, communication.and

symbolic changes.

Lastly, senior managers need to

ensure that the initiatives coming

out of different functional areas

all communicate the same core

message about change – they

must seem joined up in the eyes

of the recipents!

Delivering effective change in the

UK’s public sector matters to all

of us. We found well intentioned

civil servants at all levels of the

organisations we researched but

many felt frustrated and worn

out by engaging in a great deal

of change activity much of which

failed to deliver all that had been

promised at the outset.

We hope our research will

highlight some lessons that

politicians and civil servants alike

can learn from so that change can

be achieved in a more efficient

manner.

the start point for real cultural transformation must be decentralised to local offices

“ “

pse 45May/Jun 09

CHANGE MANAGEMENT