RPA - The Review of Public Administration in Northern Ireland: NI's Greatest Challenge
Author:
Jackie Henry
There is now less than 2 years to go until the most radical reform of Northern Ireland's public services becomes a reality - that is if the decisions outlined within the Review of Public Administration (RPA) can be implemented within the timeline set.
RPA stands to be one of the most complex and extensive change programmes ever to be undertaken in Northern Ireland - a change programme that represents, in the words of Peter Hain, Secretary of State for Northern Ireland ‘the greatest single challenge to the public sector here for 30 years’.
A challenge indeed - the scale of the RPA implementation is daunting and the opposition that already exists to some of the stated outcomes of RPA adds to the complexity and difficulty of the challenge. However whether you are in agreement with the RPA vision or not the direct rule Ministers are clear that a decision has been reached and in the absence of local administration they are now moving forward towards implementation. Not only is there a determination amongst our current ministerial team to make the changes happen, there is also no doubting the strength and urgency of the Northern Ireland public's desire to see the RPA programme deliver radical improvements in public services.
For the Northern Ireland public the key question is not how or when RPA will be implemented but rather what quality and range of Health, Education and Local Government services can they receive and when. Indeed, recent research conducted by Deloitte indicates that while the interest of citizens may have been at the heart of the RPA reforms, the majority of people in Northern Ireland are unaware of RPA and how it is going to change the way in which public services are delivered in Northern Ireland.
Rather the Deloitte research confirmed that the public focus is on improving the quality of front line service delivery in our hospitals, schools and council areas. In a sector that faces the ongoing difficulty of overcoming funding shortages in order to provide services at the desired levels, the Northern Ireland public see RPA as a golden opportunity to release much-needed funds to front-line services away from a large and inefficient administration system. While Peter Hain has made it clear that RPA was never intended to be merely a cost-cutting exercise there has been an increasing pressure on public expenditure. The proportion of public sector employment (32% of all employment) in Northern Ireland is the highest across all UK regions and questions have been asked as to whether this reflects the right balance of resources between front line and supporting services. Therefore if the challenge posed by RPA is one in which issues of waiting lists or funding-shortages affecting health treatments or education provision can be improved then the citizens of Northern Ireland consider this a worthwhile challenge that must be overcome.
Taken in this light the RPA programme remains a very significant challenge but it is “…the challenge of a world class Northern Ireland” (Peter Hain, November 2005) and hence it is truly an opportunity to secure an exciting and lasting prize that all the citizens of Northern Ireland desire. With less that two years to go the RPA momentum is therefore building but so are the public expectations that accompany it. Hence the public bodies impacted by RPA and their sponsoring departments across Northern Ireland are working hard across a series of programmes to try and ensure that the benefits of the RPA programme are realised on time and in full. Detailed implementation plans have been scoped out and communication programmes are underway to keep stakeholders informed of the progress being made in overcoming the RPA challenge.
There is without doubt a clear recognition that it is essential that Northern Ireland fully avails itself of this opportunity and given the challenges and the mounting expectations there is now an urgent focus on making sure that the delivery of benefits of the RPA actually happen!
Making It Happen “It will take strong visionary leadership in each sector as well as by politicians to make these vital reforms a reality” Peter Hain, November 2005
Can we secure the prize of transforming Northern Ireland into a world class public sector service delivery model?
Our experience in working with major organisations on programmes of all size and complexity shows that there are a number of distinct factors to be considered. Disregarding these factors will radically increase the probability of programme failure. Like or loath the RPA decision, the direct rule ministers have made it abundantly clear that the model announced in November 2005 is now being implemented and one of the greatest challenges for those tasked with implementing RPA across health, education and local government will be to manage the reaction of those within the system who do not agree with or believe in the model, i.e. the 'resistance to change' factor noted above. A successful RPA programme will be one that learns the lessons from past experience and avoids the barriers that have prevented other programmes from being successful. A successful RPA programme will be one that is underpinned by an overall strategy for managing the change. This strategy will not only provide the basis for achieving the desired outcomes but will also provide definition and clarity for all those involved in RPA implementation.
A vital starting point for government should therefore be the creation of a comprehensive Change Management Strategy.
The absence of an effective change management strategy is one of the most common reasons for the failure of any major transformation project. Given that the changes proposed by the RPA programme are intended, not to be temporary re-adjustments, but rather long-term, lasting benefits then a strategy is required to ensure that this major objective is achieved in an effective and efficient manner. The strength of a well developed change management strategy is that it will produce a common approach for addressing issues such as public awareness and will also identify the short-term or quick wins that can be delivered during the course of the programme. Implications for public sector finance professionals.
The RPA changes arrive on the back of other government wide programmes that have required significant change for public sector finance departments. Commercial-style systems of planning, control and reporting - known as Resource Accounting and Budgeting - were fully implemented in central Government in April 2003. There have also been wider moves to improve financial management across the public sector through Treasury led programmes focusing on improving the strength of the departmental finance functions ; achieving faster closing of accounts ; providing improved information to management and skills training.
The RPA changes are likely to create a further momentum for change within public sector Finance Departments with the combined effect of driving finance transformation activity across a range of organisations. They will create the opportunity for the Finance function to play a central role in shaping change while at the same time creating new public bodies that will place different requirements upon the Finance function with a drive towards higher value activities and decision support. The new public bodies that will be formed will be fewer in number but with much larger budgets than any of their predecessors. This will create a need for very high standards of budgetary management and financial control and reporting and it is likely that the bodies will have to make significant strategic and structural decisions about how to resource their Finance Departments to support the new organisations appropriately. To be effective in their new environment, Public Sector Finance Directors and their departments will be focused upon leading the : - Planning funding and support for the corporate direction - Implementation of strategy to achieve financial performance - Governance of financial activity - Coherence and availability of financial information
In short, the role of Finance will be to offer both Stewardship and Strategy support. To be fully effective in this changed role the Finance function will be required to understand its key processes in detail and must establish, through the development of an appropriate and benchmarked set of indicators, a clear vision of what it will take to be a leading performer in each of these key process areas. Having undergone an analysis of this kind, the Finance function will then be able to clearly define its own strategic vision and the different components that might make up its own programme for change. Consideration should be given to transformational tools such as :
- Benchmarking - Business Case development and benefits realisation - Financial Systems Optimisation - Shared Services - Balanced Scorecard - Integrated Performance Management - Working Capital optimisation
The RPA changes offer the potential for radical and lasting improvements to be made to the delivery of public services in Northern Ireland through the execution of well developed change management strategies. They also offer existing opportunities to transform the public sector Finance departments and hold the potential to ensure that finance professionals play a key role in the new and emerging organisations - adding real value rather than just adding numbers.