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Value for Money (VfM) in the Criminal Justice System Ideas from the UK, Opportunities for New Zealand Mike Bazett 21 February 2011 Final.

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Presentation on theme: "Value for Money (VfM) in the Criminal Justice System Ideas from the UK, Opportunities for New Zealand Mike Bazett 21 February 2011 Final."— Presentation transcript:

1 Value for Money (VfM) in the Criminal Justice System Ideas from the UK, Opportunities for New Zealand Mike Bazett 21 February 2011 Final

2 1 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key messages Warm in NZ For New Zealand, it’s getting warmer: The costs of crime are too high They’re not sustainable We have to do things differently... But what? The UK – its hot: Confronting elephants/Grasping nettles (Reoffending; Prison levels; Costs) Have to Innovate. Have to drive up VfM Risk of too hot: Slash & Burn. Hotter in the UK ‘We haven’t got the money, so we’ve got to think.' Ernest Rutherford Innovative solutions are emerging 5 Ideas New Zealand is in a lucky position A big opportunity exists for positive, radical and enduring change VfM: You can make radical savings and deliver better services. 5 Elements of VfM

3 2 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Why the UK? Spend on Justice: 2.5% of GDP - highest in OECD Prison population: Doubled since the early 1990s (now 156 per 100,000) Political/Public debate: ‘Bobbies on the beat’, sensational media; “Tough on crime” arms race Now cuts: Justice budget to be cut 23% in 4 years. 8,500 jobs to go already announced. What went wrong? “Use of tough rhetoric and avoiding taking tough decisions that might prove unpopular in the short term.” Ken Clarke Lord Chancellor & Sec. of State for Justice Bold leadership on the need to change: Government’s vision for criminal justice reform – Ken Clarke speech (July 2010) “Breaking the cycle” – Green Paper (Dec. 2010) “Rehabilitation revolution” – Crispin Blunt Prisons Minister (Jan 2011). Ken Clarke “Just banging up more and more people for longer without actively seeking to change them is, in my opinion, what you’d expect from Victorian England”.

4 3 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. A sample of 5 UK ideas 1. Prevention - Early intervention to prevent criminal behaviour Logic: Prevention. “A cheap fence at the top of the cliff rather than gold plated ambulances at the bottom”. Objective: All children to be ‘School ready’ at 5 How: “Early Intervention: The Next Steps” Jan 2011 Allen MP. “Breaking the cycle of low achievement for ‘Problem Families ”. Cross party cooperation Better assessment for 0-5s Best programmes Support to vulnerable mothers Quality pre-school education Funding - No more from government Assessing how private/public can invest in the future of society. Early intervention is not new. But, the need is, as is the funding mechanism. Also... The UK have to make it work. ? At 22 months you can predict educational achievement at 26 years At 3, boys assessed ‘At risk’ had 250% more criminal convictions by 21 than the “not at risk’ group

5 4 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 2. Shift from Reaction to Prevention 1999 Aim: “Get to fires quickly” 2,140 fires and 15 deaths 1,400 officers But in 1999, a child died. It could have been anticipated: Poor family, smoked, chip pan, no fire alarm. Prevention would have been better. The Economist October 9 th ,299 fires and 8 deaths 850 officers How? Aim: “Prevention First” New staff as advocates Safety messages & 700,000 smoke alarms. More can be done with less Case study Merseyside Fire brigade

6 5 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 3. Rehabilitation Revolution / Payment by Results (PbR) Background 50% of adult offenders reoffend in 1yr Short sentences – 61%. Young offenders – 75% Justice budget to be cut 25% in 4 years Proposed “Rehabilitation Revolution” Prisons Minster “Breaking the cycle” Green Paper. But how? PbR / Outcome Based Commissioning Increased private/voluntary sector delivery. Free to innovate. Paid from savings Minimise unproductive time in prisons Enhanced Community Payback: Greater intensity & immediacy Restorative Justice (RJ) at every stage. “I expect England and Wales to become a global leader in delivery through Payment by Results over the next 5 years.” Crispin Blunt Prisons Minister 25 Jan 11 Plus bold ambition To date: Plans to pilot six new rehabilitation programmes on a PbR basis by Aug 2011 Estimate 3,000 fewer prisoners by Prisons to close.

7 6 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 4. Innovative financing through Social Impact Bonds to reduce reoffending Focus: Reducing reoffending for short term prisoners (currently ignored) How?: Intensive ‘Through the gate’ services by voluntary organisations Pilot: Peterborough Prison. 3,000 prisoners. 6 Yrs Funding PbR: Measured reduction in reoffending (No. of reconvictions from all offenders released) Investor return target: 7.5% pa over 8 yrs for a 10% point reduction in reoffending Investors purchase ‘Social Impact Bonds’ Wider aim: To enable people/charities to invest in social progress. Take one Banker, One Charity CEO and one Private Equity pioneer A $100M fund could cut the 60% reoffending rate for short sentence male prisoners by 20%. Savings would allow 4 prisons to close in 5 years saving $125m “A lot of interest from the private banking networks. Clients want to invest in social progress”. “A win-win for Charities” David Hutchinson, CEO Social Finance and ex head of investment banking Dresdner Kleinwort”

8 7 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 5. Engaging the public – Crime Maps Community meetingsVideo messages Aim: To hold police to account. To engage the community Example: Tower Bridge, London in December Overview of crimeNeighbourhood Policing Team details

9 8 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 5. Engaging the public– Crime Maps Breakdown of crime numbers per ward Shown at street level

10 9 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. It’s early days – but popular!

11 Criminal Justice Service – VfM Highlighting 5 Elements: 1.Benefits Management & Metrics 2.Boundaries 3.Brand 4.Bold Leadership 5.Back office – Can be a diversion.

12 11 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. What is VfM and how do you drive it effectively? What is it? - Bang for your bucks! Or... Gaining and sustaining productivity improvements. How do you drive it? 1.Understand and quantify opportunities 2.Deliver real productivity improvements 3.Sustain those changes and the ways of working and culture that underpin them 4.Give people the tools and the ways of thinking to go after and secure new sets of reforms for themselves (Toyota vs. BL) Time Go live Performance Baseline Ongoing monitoring Sustained benefits Challenge 1 – making the change Challenge 2 – Making it stick Target 1. Benefits Management & metrics - The basics Based on metrics, hard data and rigorous & consistent analysis

13 12 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 2. Boundaries Draw the boundaries of the system right. Get ahead of the curve. Corrections Courts Prosecution Police Corrections Courts Prosecution Police Drivers of crime Reoffending Reinvest savings where it matters Tap into the front line passion Return the ‘Gleam in the eye’. Brand carefully. Engage the front line. Join my VfM Team! 3. Brand

14 13 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 4. Bold Leadership 1. To drive through the VfM grief curve Denial Anger Negotiation Acceptance Centre hits depts hard and Cherry picking “Savings” gestures - biscuits Play with budgets. Lack of buy-in Top down initiatives, reporting back just before an election No change for frontline Unpalatable options Front line deeply involved Bottom up – front line knowledge/passion Builds capability / professionalism Counter intuitive - Devolves power. “Keep our head down – it will all go away” “There’s got to be a better way” Will do it but on my terms Cut “easy to cut” programmes Back office focus Shared Services and collaboration at the margins 2. To survive the inevitable sentinel event – the “bad news day”

15 14 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 5. Back office – Yes... But can be a diversion Back office (11%): Staff: 8% Officers: 3% Middle office (15%): Staff: 7% Officers: 8% Front office (74%): Staff: 6% Officers: 64% PCSOs: 4% UK Police force Y – Pay spend by back, middle and front office The Front line – drives cost. And performance.

16 15 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. It can be done. Police in W. Yorkshire – Time to investigate low level crime (Burglary, theft, car break-ins etc) How? 1.Sort out the wheat from the chaff Improved screening. Effort focused on most solvable crimes 2.Scarce resource focused on fewer, more solvable crimes 3.Dedicated team for volume crime investigation. Focus & no distraction 4.Enhanced supervision by Sergeants. Dropped from 47 days to 4 days...and sustained.

17 16 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. In summary NZ Criminal Justice – A great opportunity It can be done:

18 © 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”).


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