3.6 The Authority's lack of capacity is preventing the assurance system from maturing. In its first year the Authority has focused its resources on delivering the objectives set out in the prime ministerial mandate rather than formalising its key processes. All available resources have been allocated to keeping the system running, rather than trying to document and improve it.
3.7 Our work on process management shows that organisations must understand the skills required to complete a process for it to be delivered effectively. It also shows the benefits that a standard and consistent approach can have in enabling resources to be moved across different parts of an organisation. A standard way of working, understood by all staff, allows organisations to plan controlled process changes and redistribute workload without impacting on time, cost and quality. It is a good foundation for controlled structured cost reduction.
3.8 The lack of formality in the system places an over-reliance on key individuals. If these individuals leave the organisation, their cumulative experience and knowledge will be lost. During our fieldwork for this report, we noted examples of individuals leaving key roles within the assurance system from both HM Treasury and the Authority. There is no succession plan for replacing the Executive Director of the Authority at the end of his fixed-term contract.