Overview of framework for arms length bodies Day

Overview of framework for arms length bodies Day 1 – Session 3

What we will be doing today To cover the essentials of guidance and best practice covering the relationship between departments and arms length To learn from each other’s experience To get insights from other research and other sectors To try out practical skills for professional working relationships An opportunity to plan actions you want to take back at work An opportunity to develop a network for mutual support

Public body – Office of National Statistics definition Alphabet Soup NDPB – nondepartmental public body Executive Agency (formerly Next Steps Agencies) Tribunals QUANGO – quasi-autonomous non-governmental organisations NMD – nonministerial department ALB – arm’s length body (definitions vary) Public Corporations Health and social care bodies Special bodies – in Northern Ireland

Office of National Statistics definition – UK

Cabinet Office - Classification of Public Bodies: Guidance for Departments (2016)

Statutory body – a body the government is required, by law, to set up and would need to change the law to abolish or change. The statute may include requirements on how to run the body eg type of members. Statutory or not? Non-statutory or administrative – a way the government choses to arrange itself but which is not defined in law. This includes executive agencies, which are the same legal entity as the department. Body with statutory powers – for example, a regulator which has the power to enforce regulations or issue licences, which are set out in law.

Executive and Advisory Executive Non-executive or advisory • generally providing expert • delivers something advice/stakeholder input on a • has money content • has staff (may or may not be civil • generally support by departmental servants) staff, may have some budget • can have different organisational • Is an NDPB forms (eg agency, NMD, NDPB) • can be very similar in function to task forces, expert committees which are not NDPB’s

Civil service reforms to address corruption – competitive appointments, procurement processes. How best to make sense of it historical development Non-ministerial departments eg Forestry Commission 1919, Board of Customs 17 th Century Tribunals eg General Commissioners of Income Tax 1799 Non-departmental public bodies – eg Medical Research Council, with a Royal Charter in 1919 Executive agencies – New public management, 1988 Next Steps Report eg Prison Service 1993 PFI, joint ventures, contracting out, summits

Does the law say this body needs to exist and how it is set up? Making sense of the guidance – key questions Can it take action, or only offer advice? Can it spend money, and what sort of restrictions does it have on doing so? Does it employ staff and are they public or civil servants? Who is it accountable to and how?

Why does this matter for good relationships? There are different formal requirements of different types of public bodies Sometimes the underlying reason for a public body is the create a check on government so there is creative tension built in The complexity makes it difficult for people not closely involved to understand that and transfer knowledge from one setting to another

Coffee time!

Overview of framework for arms length bodies Day 1 – Session 4

Exercise What does a good relationship look like? Reports, codes and guidance Personal reflections

4 post it notes each Exercise 1 3 (or 6) groups - what would be the characteristics of an effective relationship from the point of view of: • a departmental Director • an arms length body CEO • a member of the Public Accounts Committee 5 mins writing up post it notes individual 10 minutes to collectively group them together and prioritise, ready to report back

Departments’ oversight of arm’s length bodies: a comparative study Published in 2016 and covered: NAO study Department for Business, Innovation and Skills (BIS) Ministry of Justice (Mo. J) Department for Environment, Food and Rural Affairs (Defra) Department for Culture, Media and Sport (DCMS) Recommended principles *Clarity of purpose *Streamline processes *Opportunities for ALBs in policy making *Balanced approach to risk *Alignment of objectives

Cabinet Office - Partnerships between departments and arm’s-length bodies: Code of Good Practice (2017)

Survey of chairs and CEO’s by Public Chairs Forum (PCF), Association of Chief Executives (ACE) and Institute for Government (IFG) UK and England bodies – 338 people, 39% response rate Cracking the code: (2017) Testing out use of Cabinet Office code and P. A. V. E. principles Conclusions - Generally positive response on working relationships Enhance public accountability, reduce duplicate requests for information, use expertise more, reduce central controls and greater strategic engagement

Relationship usually through the ALB Often key to wider networks of expertise and stakeholders Role of the ALB Board and NED’s Providing a challenge function as well as support Chair as one of the public faces of an organisation Chair accountable to Ministers but with public duty role Cabinet Office Code of Conduct for Board Members of Public Bodies (2011) Institute for Government Nothing to do with me: Modernising Ministerial Accountability for Decentralised Public Services by William Moyes, Julian Wood & Michael Clemence (2011)

Reflections from experience • Role of plans and reports • Risk management/earned autonomy • Making your counterpart your champion • Escalating issues • Thinking about wider stakeholder context • Developing a professional relationship

What does a good relationship look like? Day 1 – Session 5

Parent/child dynamic

Changing relationships As individuals we find ourselves under greatest pressure when going through big life events: new baby, divorce, moving house, bereavement, imprisonment Relationships are often at the heart of the what is happening here – in positive and negative ways

New organisation being set up Existing organisation being restructured, merged or wound up Making budget cuts Changing relationships Reviews of all sorts Existing organisation in a fast-changing policy area New CEO/Minister/policy led Machinery of government changes Existing organisation working with two departments New central department processes or frameworks

Useful to recognise the emotional impact of changes in a work context… Changing relationships …. and to think about how our responsibilities impact on delivering public value Some of the biggest factors in determining relationships are: • Habit • Reputation

Groups of three/four people Changing relationships – Exercise 2 ØEach have a different scenario to consider for next 20 minutes: Øwhat the main relationships are Øhow they might be affected by the changes Øset out 3 practical actions for: o Head of the team leading the ALB’s contact with the department o Head of team leading the department’s contact with the ALB

Peer support Are you interested in keeping in touch to form a peer support network or forming an action learning set? If so stick your name and what you would be interest in following up on the flip chart. Westminster Training will collect these and be in touch to connect people within the next two weeks.

Lunch time!

Overview of framework for arms length bodies Day 1 – Session 5

Models of accountability

Public trust in institutions and professions has continued to fall Models of accountability - context There an increasingly diverse range of mechanisms for the public sector held to accountable to citizens and businesses These changes can be driven by societal and technological changes Different people and organisations may ascribe to different theories on the forms of accountability Formal rules and guidance may lag behind changes in views of organisations and stakeholders

Ipsos Mori poll 2017

Models of accounting Video clip

Representative democracy – national and local (including Policy Commissioners) Non-political public service acts on behalf of the government of the day Models of accountability – democratic Executive held to account by the Parliamentary system with checks and balances from an independent judiciary A legal framework which sets limits on powers and upholds the public interest (eg protection for whistleblowers) Direct democracy – referenda What are the pros and cons?

Accounting laws for all organisations Votes for departmental budgets Managing Public Money Models of accountability – financial Accounting officers HM Treasury/Finance Department Internal audit National Audit Office and Public Accounts Committee Whole government accounting What are the pros and cons?

More distributed notion of accountability Organisations (such as ALBs and departments) are held to account directly by stakeholders eg beneficiaries, those regulated, partners Models of accountability – governance Premium on transparency around plans and delivery against plans Engagement and consultation to decide on policy and delivery Different communities of interest, with varying resources and levels of interest What are the pros and cons?

Independence and trust Reflections Informing and engaging Learning from a wider range of comparators Further reading: Creating “a democracy for everyone” Strategies for increasing listening and engagement for government By Jim Mc. Namara, London School of Economics

Preparation – give yourself a bit of TLC Exercise 4 having difficult conversations Preparation – remind yourself of the difference you can make by having this conversation Preparation – identify is a reasonable, practical outcome Having the conversation – bad news may take a while to sink it, don’t eat the whole elephant at once Having the conversation – acknowledge the issues and feelings of the other person, though be clear if you do not agree with their position Following up – agree the next step, make it realistic and stick to it Following up – reflect on how it went, have a cathartic/celebratory moment

Exercise 4 having difficult conversations Feedback sandwich Constructive criticism Focus on things which people can change

We welcome your feedback – please complete and return the evaluation form. Thank you all for your participation! If you are interested in keeping in touch for peer to peer support then make sure your name is on the flipchart.