HR forum

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HR forum managing efficiency for organisational
effectiveness Barry Quirk Chief Executive - LB
Lewisham Local Government Efficiency Champion
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• efficiency
• efficiency is means not ends
• efficiency is virtuous only when it is in
  service of honourable ends
• better do an effective thing inefficiently than
  an ineffective thing efficiently
• be fair, be effective, be efficient

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• gains not just savings
• language of efficiency is confusing
• more from less, more from same, same from less,
  less from even less
• efficiency gains are either
• cost savings for same service levels (cashable)
  or
• Improved productivity at same cost (non-cashable)
  but
• library books and libraries

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layers of focus and action
economic management

• system inefficiencies
• organisational inefficiencies
• service inefficiencies
• practice inefficiencies

strategic management
operational management
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lessons of operational management

• 1950s operations research
• 1960s - OM and work study
• 1970s unit activity based costing
• 1980s - quality management
• employee involvement team work
• statistical process control charts
• chase best practice
• 6 Sigma world class practices

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managing efficiency

• lowering overhead costs
• management overheads (layers, spans of control,
  etc)
• depot, plant vehicle costs
• ICT infra-structure, communication
  re-provisioning costs
• financing costs
• process management
• simplify and standardise
• re-engineer when you have to!

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lessons of strategic management

• 1980s programme project mgmt
• 1990s competition quasi-markets
• 1997- best value comparatives
• 2000 balanced scorecard (results risks)
• 2000 outsourcing service partnering
• 2000/5 ICT e-business change
• 2002 - CPA performance capability
• 2003 - leadership development

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efficiency - part of our DNA?

• policy design, service strategies
• organisational design
• service groupings
• management layers
• blend ICT investment with change management

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people management efficiency

• right people with right skills
• right rewards, incentives sanctions
• the nature of operational practice
• time, cost and value management
• flexible specialisation
• mobility and ICT
• staffing and management arrangements, service
  groupings and management layers

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• hiring
• recruitment induction costs
• advertising search costs
• agency staff, etc
• turning up
• attendance levels

• smart working
• focused and flexible
• positive climate
• motivated team working

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IiP productivity and people 2001
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Work Foundation - 2005
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productivity, leverage, value and workforce
re-modelling
my head really hurts
Customised process emphasis on diagnosis
Standardised process emphasis on execution
key skills and cost drivers
Nurse
Psychotherapist
High degree of client contact - value is
rendered in the front room during interaction
with client
Key skill making client comfortable when going
through pre-set process Profit drivers above
average fees, good leverage, established
procedures
Key skill real time diagnosis of complex,
ill-specified problems Profit drivers high fees,
low leverage, referral of work to others
Brain Surgeon
Pharmacist
Low degree of client contact value is rendered
in the back room, client focus is on results only
Key skill creative solutions to one of a kind
problems Profit drivers premium fees, modest
leverage
Key skill supervision of low cost delivery
team Profit drivers high leverage, established
methodologies
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sharing costs and benefits

• shared services
• professional support services
• assets, technical infra-structure, etc
• service purchase (roads and childcare)
• economies of scale is it scalable?
• economies of scope does expanding scope
  create economies through .
• complementarities for the customer
• positive synergies for the provider

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Councils are more like cakes than cars

• the features of a blueprint
• the features of a recipe

• so what
• there is no single leading edge you cant just
  copy best practice
• effective management of people cant be avoided

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challenges and skills
high
FLOW
arousal
anxiety
worry
CHALLENGES
control
apathy
relaxation
boredom
high
low
SKILLS
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effective organisations

• well DESIGNED systems of accountability
• within governance
• within management and
• between governance management
• well crafted STRATEGIES
• service strategies to solve social problems
• managerial strategies that deliver quality
  activities and outcomes
• organisational strategies that posit ambition and
  goals

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effective organisations

• drive effective DYNAMICS amongst the
  organisations people
• that create and maintain momentum for change
• that align behaviour to organisational purpose
• that tap the THREE SENSES
• accomplishment
• connection
• progress