-To insert a Zurich picture click on the "camera"-icon in the Zurich CI toolbar and follow the instructions. -To insert a picture from your personal files, click on the "Insert Picture from File" icon here on the right. Please make sure that this picture follows the Zurich core elements available on the "book"-icon in the Zurich CI toolbar. -To keep this neutral background, just leave it as it is. Note: this message will not be displayed in the presentation mode. INTERNAL USE ONLY Risks & Opportunities in Public Sector Transformation 17 & 18 March 2016 Alan Ross - Strategic Risk & Resilience Practice Risk Engineering UK UKGI

© Zurich Insurance Company Ltd INTERNAL USE ONLY “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. 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) 2

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

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

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

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

© Zurich Insurance Company Ltd INTERNAL USE ONLY LGSS Example 7

© Zurich Insurance Company Ltd INTERNAL USE ONLY 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 environment? Your view 8

© Zurich Insurance Company Ltd INTERNAL USE ONLY  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 What are the barriers to implementation 9

© Zurich Insurance Company Ltd INTERNAL USE ONLY  Political and senior management cover – what’s the vision; how does change lead to better outcomes?  Communicate, 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  Consider external support  Make allowances for inherent biases and brakes on progress  Discuss risk early and often Managing the barriers 10