5.3 This step involves preparing a list of the range of actions which government could possibly take to achieve the identified objectives. The list should include an option where government takes the minimum amount of action necessary (the 'do minimum option'), so that the reasons for more interventionist actions can be judged.
5.4 The range of options depends on the nature of the objectives. For a major programme, a wide range should be considered before short-listing for detailed appraisal. Both new and current policies, programmes and projects should be included as options. At the early stages, it is usually important to consult widely, either formally or informally, as this is often the best way of creating an appropriate set of options.
5.5 An option may affect, or be affected by, other expenditure across the public sector (for example, where its outputs or costs depend upon another project or the implementation of a related policy perhaps in another department). Where a number of expenditures or activities are linked together and the costs or benefits are mutually dependent, the proposal must be appraised as a whole. However, the contribution of the component parts of each proposal to achieving overall value for money must be taken into account.
BOX 8: CREATING OPTIONS
Establishing a range of options can be challenging. The following actions are suggested: ❑ Research existing reports, and consult widely with practitioners and experts, to gather the set of data and information relevant to the objectives and scope of the problem. ❑ Analyse the data to understand significant dependencies, priorities, incentives and other drivers. ❑ From the research, identify best practice solutions, including international examples if appropriate. ❑ Consider the full range of issues likely to affect the objective. ❑ Identify the full range of policy instruments or projects that may be used to meet the objectives. This may span different sorts or scales of intervention; regulatory (or deregulatory) solutions may be compared with self-regulation, spending or tax options. ❑ Develop and consider radical options. These options may not become part of the formal appraisal but can be helpful to test the parameters of feasible solutions. Well-run brainstorming sessions can help to generate such a range of ideas. |
BOX 9: EXAMPLES OF OPTIONS
Examples of strategic and operational options include: ❑ Varying time and scale ❑ Options to rent, build or purchase ❑ Changing the combination of capital and recurrent expenditure ❑ Refurbishing existing facilities or leasing and buying new ones ❑ Co-operating with other parts of government ❑ Changing locations or sites ❑ Provision of the service, such as maintenance, or facility by the private sector ❑ Co-locating, or sharing facilities with other agencies ❑ Using IT to improve delivery, as part of wider organisational changes ❑ Transferring service provision to another body, or improving partnership arrangements ❑ Varying the balance between outsourcing and providing services (or retaining expertise in-house) ❑ Engaging the voluntary sector ❑ Regulation, including private sector self regulation, and voluntary action ❑ Different standards or compliance procedures for different groups (e.g. large and small businesses) ❑ Varying quality targets ❑ Different degrees of compulsion, accreditation, monitoring, and inspection regimes, including voluntary codes, approved codes of practice or government regulation ❑ Action at a regional, national, or international level (e.g. European wide) ❑ Better implementation of existing measures or initiatives ❑ Information campaigns ❑ Deregulation and non-intervention ❑ Changes that will be permanent in the foreseeable future, or initiatives with specified time horizons. |