1.21 The much improved collection, comparison and reporting of data will facilitate greater external review of back office performance and costs and make it possible to hold permanent secretaries and ministers to account for the efficiency of back office operations.
1.22 Operational Reviews of organisational performance should be introduced to examine the effectiveness of back office spend and identify how organisations can improve their operational effectiveness. These reviews should make use of private sector experience and focus on organisations that are performing poorly. The first reviews should take place no later than April 2010 and the secretariat for this function should be based at HM Treasury, with support from the Cabinet Office. As well as back office operations, these reviews should include analysis and assessment of progress on the other OEP workstrands including, for example, the effectiveness of IT spend.
1.23 For central government, the Operational Reviews should focus on departmental performance but should also examine benchmarking data for departmental delivery chains at an aggregate level to drive improvements throughout the public sector. This analysis should feed directly into PSX9 value for money discussions to hold ministers to account and be an input to the six-monthly performance reviews between the Centre and departmental permanent secretaries. For local government and other local public bodies within its remit, the Audit Commission should examine back office costs as part of its "use of resources" assessment, paying due regard to the peer review of costs carried out by RIEPs. It should encourage organisations with poorly performing back office operations to improve.
Recommendation 1.2: A system of Operational Reviews that examine performance on back office operations should be introduced for public sector organisations. The initial focus should be on those organisations currently performing in the bottom quartile. The first reviews should take place no later than April 2010. For central government and agencies, and at an aggregate level, departmental delivery chains, this should be carried out by a small review team incorporating private and public sector experience. The review team should report to PSX and feed into six-monthly performance reviews between the Centre and departmental permanent secretaries. The Audit Commission should carry out this function for local public bodies in its scope as part of its "use of resources" assessment. |
________________________________________________________________________________________
9 Ministerial Committee on Public Services and Public Expenditure.