Public Sector Innovation and Reform in Northern Ireland – the view from central government CIPFA NORTHERN IRELAND ANNUAL CONFERENCE 25th September 2014 Colin Sullivan Director of Strategic Policy & Reform Department for Finance & Personnel

Rising demand for existing services Significant pressure on public finances - decreasing resources with increasing population Bottom of UK regional innovation ranking (12 of 12) Innovation in Northern Ireland Drivers for Change

Ethos – working with, rather than doing to the public sector Promoting VFM at a time of tightening budgets Recognising & responding to greater expectations on quality Engaging the public to promote ownership and input to the shaping of public services & stewardship Establishment of Public Sector Reform Division (PSRD) as an enabler to NICS and wider public sector Overarching Reform Agenda to Improve Public Services: Simon Hamilton MLA Minister of Finance & Personnel

Executive’s Innovation Strategy, led by DETI Launched 18 September KEY areas: – Culture Change – Knowledge Generation – Knowledge Exchange – Knowledge Exploitation Innovation in Northern Ireland Response – NI Innovation Strategy

Ministerial sponsorship for concerted focus on reform Innovation in Northern Ireland Response – Public Sector Reform Approach to Public Sector Reform: Strategic Operational Engagement

6 Executive agreed to Review and established an Executive Sub- committee to manage process and develop subsequent response Review conducted over a 12 month period examining generic Reform Themes and specific Case Studies Terms of Reference being finalised by Executive Sub-Committee Recommendations and outcomes of Review to inform and shape future Programme for Government OECD Review Innovation in Northern Ireland Theme – Improving Strategic Direction

Digital Governance Early Intervention/Prevention Enhancing Outcomes for People: Delivering Cross Cutting/Multi-Sector Reform Initiatives Strategic Human Resource Management Procurement Reform Streamlined Regulation and Processes Restructuring for More Effective Government Openness, Transparency & Accountability Citizens’ Engagement 7 Innovation in Northern Ireland Theme – Improving Strategic Direction Improving Strategic Direction Improving Operational Delivery Improving Engagement with People

8 Ministerial level - bi-lateral meetings to highlight need for Reform & promote PSRD capabilities and resource. Establishment of ESC for Improving Public Services Development of Public Engagement programme to engage citizens & representative community groups Staff - Chief Executive’s Forum developing network of reform minded public sector managers, greater staff recognition Partners - Working with and learning from others Innovation in Northern Ireland Theme – Improving Engagement

9 Innovation in Northern Ireland Theme – Improving Engagement Celebrating Excellence NICS AWARDS ― March 2015 Celebrating the excellence of individuals and teams working to improve Public Services. Inaugural Awards will shine a spotlight on staff commitment and highlight outstanding successes. Policy Award Customer Service Excellence Award Leadership Award Professional of the Year Award Employee Engagement Award Working in Partnership Award

Timescale for Impact INPUTS Listen/ Learn with stakeholders about Key Parameters Benchmark Key Parameters Design Response in iterative process with stakeholders Implement Response Benefits Realisation IMPACT PHASES OF STRATEGIC RESPONSE

Innovation in Northern Ireland Theme – Improving Operational Delivery

12 Public Sector Reform – Innovation Labs

13 NI Public Sector Lab “We make a difference by creating a safe space for key players to formulate and test ideas, make mistakes and learn from them, to develop refined, added-value solutions to complex challenges” A regional Lab offering a fresh approach to developing both strategic and tactical solutions to complex problems

14 April 2014 DFP Minister launched NI Public Sector Innovation Laboratory New way to address process improvements and policy development challenges Help build local design capacity & involve more diverse skills in developing solutions, including: Behavioural Economics Social Anthropology Co-Creation / Co-Design Academic / Subject Matter Experts Inaugural Lab on Regulatory Impact Assessment completed in June 2014 Further labs being planned

1 First Lab in to Public Sector 2 Innovative Skills Good Facilitation Strong Project Management 3 Bias towards action & Rapid Experiment Design Aspects of Lab

Current portfolio of Labs: Completed Innovation Scheme Regulatory Impact Assessments Planning Innovative Procurement Dementia Big Data Unscheduled HealthCare Innovative Culture in Public Sector

June 2014 Adaptive Trial 3,500 Staff 2015 Finalised Package 27,500 Staff Promoting innovation in the workplace Engaging Staff Creation of an Innovation Community

Considering - Staff Challenge Prizes Policy or Operational Problem Advertise on internal website Offer prizes to stimulate participation Must have a sponsor External Challenge Prizes Policy or Operational Problem Published on website similar to USA challenge.gov Prize commensurate with potential benefits of a viable solution

Building innovation into NICS Culture Build Capacity and appetite for innovation Engage Staff at Every Level Create Culture of Continuous Improvement Innovation in Northern Ireland Theme – Improving Operational Delivery

Culture Change Continuous improvement embedded Flexible/fluid environment Adaptive Proactive Participative Service keeps pace with evolving technologies Current Culture ?Target Culture ? Risk Averseness Fear of Failure Fear of censure Wedded to the present Very slow to modernise and adopt new technologies Resistance to change Constrained by rules and processes to generate action plans for areas to be addressed. Creating an innovative culture

21 Work with Central Procurement Directorate (CPD) to provide advice and support to Departments in developing new models of delivery Make available learning from elsewhere Engage with Departments to identify pilot projects Learning from best practice elsewhere Social Impact Bonds Mutuals / Cooperatives Payment by Results Alternative Delivery Models Innovation in Northern Ireland Theme – Improving Operational Delivery

22 Financing of upfront investment (Change Funds) in cross- cutting reform initiatives and preventative measures designed to generate savings in the longer term Invest-to-Save type principles Developing Criteria NI could take this approach - subject to Executive approval in 2015/16 Use of Finance Innovation in Northern Ireland Theme – Improving Operational Delivery

23 Innovation in Northern Ireland Governance, Advice & Support Advisory Council Established by DFP Minister to: Assist with shaping and developing reform Assist with strategy implementation Offer specialist expertise Provide independent advice Executive Sub-Committee Established by Executive to: Oversee strategic review Oversee outworkings of review Consider & advise on cross-cutting Reform issues Reform Champions Appointed in each NICS department as promoters of reform agenda in their area and key liaison point for PSRD to be combined with the role of the innovation champions.

Questions ? CIPFA NORTHERN IRELAND ANNUAL CONFERENCE 25th September 2014