Risks Opportunities in Public Sector Transformation 17 18

Risks & Opportunities in Public Sector Transformation 17 & 18 March 2016 Alan Ross - Strategic Risk & Resilience Practice Risk Engineering UK UKGI INTERNAL USE ONLY alan. ross@uk. zurich. com 07764 149330 Twitter: @Zurich. Municipal

“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things… the innovator has for enemies all those who have done well under the old conditions, and lukewarm defenders in those who may do well under the new. © Zurich Insurance Company Ltd This coolness arises partly from…the incredulity of men, who do not readily believe in new things until they have had a long experience of them” Niccolò Machiavelli (1513) INTERNAL USE ONLY 2

What is Innovation? © Zurich Insurance Company Ltd “make changes in something established” INTERNAL USE ONLY 3

Trends Driving Innovation Service User Political, Economic & Social People & Leadership Trends © Zurich Insurance Company Ltd Technology INTERNAL USE ONLY Service Delivery Models

Models of Service Delivery in 2016 Contracts Shared & Services commissioning © Zurich Insurance Company Ltd Your Organisation Outsourcing, Joint Ventures & Arms Length Organisations INTERNAL USE ONLY Strategic & service delivery partnerships 5

Integration – working around agendas not structures Working around agendas, not organisations Evolving beyond partnership working Private sector Scottish Fire Service Housing associations Arm’s length external organizations Scottish Government & Community Local Authorities Health © Zurich Insurance Company Ltd safety Charities and Social Organisations INTERNAL USE ONLY Police Scotland Youth Justice Boards MAPPA Social care & public health Schools, colleges & children’s homes NHS & Care Service Providers

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Your view 1. Is the pace of change in your organisation too fast, too slow or just right? 2. How has your organisation changed? What are you doing now you wouldn’t have dreamt of a few years ago? 3. What innovations are you considering for the future? 4. What’s stopping your organisation from being innovative in responding to the changing © Zurich Insurance Company Ltd environment? INTERNAL USE ONLY 8

What are the barriers to implementation Organisational culture Status quo bias Communications: poor or not enough Clarity of vision: why we need to do it Business as usual (BAU) BAU decision making Lack of leadership Capacity Capability Change fatigue Lack of empowerment; innovation isn’t my job Poor programme management; who’s joining the dots? All talk and no action – strategy is implementation Forget the human element Siloed approach: don’t do it ‘once & together’ Not anticipating and managing the risks: obstacles, roadblocks, barriers etc Resources don’t follow priorities © Zurich Insurance Company Ltd INTERNAL USE ONLY 9

Managing the barriers Political and senior management cover – what’s the vision; how does change lead to better outcomes? Communicate, communicate with partners, stakeholders & people Structures, e. g. programme boards, project teams: who’s responsible for R&D? Encourage innovation (and failure? ) Rethink how we do transformation, e. g. agile project management, “sprints” etc Allocate resources to your priorities © Zurich Insurance Company Ltd Consider external support Make allowances for inherent biases and brakes on progress Discuss risk early and often INTERNAL USE ONLY 10