DELIVERING MORE FOR LESS:

- Wednesday, 24th November 2010

 

Laptop Graph

1. IF PUBLIC SECTOR HAD ACHIEVED SAME RATE OF PRODUCTIVITY INCREASE AS PRIVATE SECTOR OVER LAST DECADE – NO STRUCTURAL DEFICIT.

2. CAN IT DO SO? I WILL SPEAK FROM MY OWN EXPERIENCE.

3. AT DTI I SAW MOST MAJOR COMPANIES RESPOND TO RECESSION BY REDUCING OVERHEADS BY ANYTHING UP TO 50% - SOMETIMES IN JUST TWO OR THREE YEARS.


MANUFACTURING INDUSTRY MADE SUSTAINED PRODUCTIVITY INCREASES YEAR IN YEAR OUT.

4. I ALSO LEARNT ABOUT LEAN PRODUCTION AND HOW MUCH WE HAD LEARNT FROM JAPANESE EXPERIENCE – FROM JOHN NEIL AND THE MACHINE THAT CHANGED THE WORLD.

5. THEN AT DSS – RUNNING COSTS WERE £4 BILLION. I THOUGHT IT BETTER TO CUT DEPT RUNNING COSTS THAN BENEFITS. SO SET MODEST TARGET OF £1 BILLION.

6. AFTER MUCH PREPARATION I SUMMONED OFFICIALS. TOLD THEM THE STORY OF MR TOYODA AND THE BIRTH OF LEAN PRODUCTION …

a. FORD MASS PRODUCTION LINE. ENGINEERS FROM ROUND WORLD VISIT. RETURN HOME DETERMINED TO BUILD BIGGER, FASTER PRODUCITON LINES

b. TOYODA ASKED WHAT IS REST OF PLANT FOR? MAKING GOOD CARS WITH FAULTS.


c. TOYODA BUILT PRODUCTION LINE, TOLD EMPLOYEES TO STOP LINE IF FAULT. RECIPE FOR DISASTER.


d. BUT SET UP QUALITY CIRCLES TO IDENTIFY AND SOLVE PROBLEMS. GET IT RIGHT FIRST TIME IN FUTURE. RESULT = CARS THAT WORK AND LINE WENT FASTER.

7. I SAID DSS IS A MASS PRODUCTION OPERATION – WE CAN LEARN FROM THIS EXPERIENCE.


SHOCK, HORROR – ‘WE DEAL WITH PEOPLE NOT MACHINES!’ EVEN MORE IMPORTANT TO GET IT RIGHT FIRST TIME.

8. ASKED THEM TO GO AND TALK TO OUR ‘PRODUCTION LINE STAFF’ AND ASK THEM HOW WE COULD IMPROVE OUR OPERATIONS. CAME BACK – ‘WE TALKED TO LOCAL MANAGERS’. GO BACK AND TALK TO THOSE WHO ACTUALLY HELP CLAIMANTS FILL IN CLAIM FORMS, THOSE WHO PROGRAMME OUR COMPUTERS ETC

9. RESPONSE = POSITIVE. DESPITE KNOWING WE WANTED TO REDUCE JOBS BY 25%. BECAUSE NO-ONE HAD EVER ASKED THEM BEFORE. THEY HAD BEEN FRUSTRATED AT DOING THINGS IN INEFFICIENT, EVEN DAFT WAYS.

10. WE DISCOVERED THERE WERE OVER 360 POTENTIAL STEPS TO HANDLE AN INCOME SUPPORT CLAIM. NO-ONE HAD KNOWN BEFORE. MOST OF THE WORK WAS ‘MAKING GOOD’ WHERE MISTAKES OR WRONG INFORMATION HAD BEEN BUILT IN TO THE CLAIM AT THE BEGINNING. COULD EASILY CUT NUMBER OF STEPS BY HALF. EVENTUALLY REDUCE TO 70 STEPS.

11. IN PRIVATE SECTOR PROBLEM IS ‘THIS IS HOW WE HAVE ALWAYS DONE IT’. PROBLEM IN PUBLIC SECTOR IS WORSE SINCE HOW WE DO IT IS OFTEN LAID DOWN IN LAW AND REGULATIONS. STAFF ASSUME THAT, HOWEVER INEFFICIENT, THAT IS WHAT PARLIAMENT WANTS.

12. E.G. HABITUAL RESIDENCE TEST. DESIGNED TO STOP FRENCH STUDENTS CLAIMING INCOME SUPPORT WHILE LEARNING ENGLISH. ASKED AT TOTTENHAM. BEING APPPLIED TO ASYLUM SEEKERS. INDEPENDENT ADJUDICATOR HAD RULED THAT IS WHAT REGS REQUIRE. NO ONE TOLD ME. I SUGGESTED HE CHANGE HIS RULING OR WE WOULD CHANGE THE REGS.

13. [LIKEWISE – INCOME SUPPORT FOR MORTGAGES – WE USED FOUR WEEKLY, BUILDING SOCIETIES USED CALENDAR MONTH. PEOPLE BEING NOTIFIED THEY WERE IN DEFAULT EVEN THOUGH WE WERE UNDERWRITING THEIR MORTGAGES.]

14. I GATHER IT ALL FIZZLED OUT AFTER I LEFT.

15. LESSONS:

a. COMMITMENT AT TOP IS VITAL


b. SINCE POLITICAL SYSTEM DECAPITATES TOP MINISTERIAL LEADERSHIP, VITAL TO EMBED IN CIVIL SERVICE


c. OVERLY RELIANT ON MY LIMITED EXPERTISE – SHOULD DRAW ON BUSINESS EXPERIENCE


d. KEY IS


i. TO INVOLVE STAFF AT FRONT LINE,


ii. GET THINGS RIGHT FIRST TIME,


iii. NOT ONE-OFF – CONTINUOUS IMPROVEMENT


iv. BUY IN AT THE TOP

 

 

Current Location:

 

Home / Speeches / General Speeches / 2010

DELIVERING MORE FOR LESS:

 

Search this Site

 

 

Contact Peter Lilley MP:

 

E-mail

feedback@peterlilley.co.uk