economics, politics & the civil service - feb 2012

7/31/2019 Economics, Politics & the Civil Service - Feb 2012

1/78

1

(c) Steven Windmill February 2012


2/78

INTRODUCTION TO BRITISH

ECONOMICS & POLITICS

Steven M WindmillSinobridge

Croydon

February 2012 2



3/78

INTRODUCTION

Steven Windmill TD PhD MBA

Colonel in British Army

Air Assault 9 years

Whitehall / Government level 7 years

Judge since 2004

Professor of Economics & Management

Doctorate in Business Administration

MBA in marketing, finance and strategy

Chairman of several businesses [consulting, recruitment and event management] 7 years heading strategic planning and enterprise support for Training & Enterprise Council

and Business Link

3(c) Steven Windmill February 2012


4/78

RESEARCH

Political & Enterprise strategy and research 1994-2003 Over nine years

72,000 chief executives consulted in SE England

96,000 homes visited (16,000 pa)

700,000 firms analyzed

Result investment of 7.2 Billion in enterprise support basedon above research

4



5/78

OVERVIEW

Britain The Economic Position

British National Government

EU Government

EU IT & New Media Policy

Local City & District Government

City administration system, bodies involved in cityadministration and their responsibilities;

Civil Service: Selection, development, performance

monitoring 5



6/78

ECONOMICS: DATA

Population: 62.69 million

Labour Force: 31.52 million agriculture: 1.4% industry: 18.2%

services: 80.4%

GDP: $2.256 trillion

GDP Growth Q2 2011 0.6%

GDP Forecast 2011-12: 0.7-2.2%

GDP Per Capita: $34,800

6



7/787

Age Structure 0-14 years: 17.3% (male 5,575,119/female 5,301,301) 15-64 years: 66.2% (male 20,979,401/female 20,500,913) 65 years and over: 16.5% (male 4,564,375/female 5,777,253) (2011 est.)

Unemploymentall: 7.98%

Unemployment, youth ages 15-24: total: 18.86% male: 21.67% female: 15.63% (2009)

Population below poverty line: 14% (2006 est.)

ECONOMICS: DATA



8/78

Economics: GDP Trend

8



9/78

Economics: Unemployment Trend

9



10/78

Economics: Unemployment Trend

10



11/78

STRUCTURE OF THE

CENTRAL GOVERNMENT OF

THE UK


12/78

OVERVIEW OF UK GOVERNMENT

parliamentary democracy

based on universal suffrage()

also a constitutional monarchy

ministers of the Crown govern in the name of theSovereign, who is both Head of State and Head ofthe Government

nowritten constitution

(rely on statute law,

common law and conventions)

12



13/78

BASIC STRUCTURE OF GOVERNMENT

Monarch

(Sovereign)

Legislature Judiciary

Parliament

House of Lords

Executive

Prime Minister

MPs

Civil Service

House of Lords

House of Commons 13



14/78

MONARCH

The Sovereign: the constitutional headof State

No longer exercises political power, but

performs symbolically:presiding over the State Opening of

Parliament, giving Royal Assent of

agreement to any new law etc. Keeping in touch with the Prime Minister

by a weekly meeting

14



15/78

LEGISLATURE:

Legislative body: Parliament of Britain

Located in Westminster

Parliament consists of the House ofLords & the House of Commons

Governments policies can becomelaws only if approved by both Houses.

15



16/78

MAIN FUNCTION OF PARLIAMENT

to pass laws

to provide - by voting for taxation - the meansof carrying out the work of government,

to scrutinise Government policy andadministration, including proposals forexpenditure,

to debate the major issues of the day.

16



17/78

HOUSE OF LORDS

Members Before the reform:

Composed of hereditary peers, senior

judges and church figures, and somelife peers appointed by the Queen.

After the reform:

Members can no longer inherit theirtitles. More members will be electedthrough the society.

17



18/78

HOUSE OF LORDS

Function

legislative: taking part in the laws making

Judiciary: the highest court of UK, playingimportant role in judicial part.

18



19/78

HOUSE OF COMMONS

Members

659 Members of Parliament (MPs),elected by the people from the 659constituencies

Re-elected when a new government isformed.

The chief officer of the House ofCommons is the Speaker, elected byMPs to preside over the House.

19



20/78

HOUSE OF COMMONS

Power

Most legislative power rests with it.

The leader of the party which has themost MPs becomes the Prime Ministerand selects his Cabinet among MPs.

20


S


21/78

HOUSE OF COMMONS

Function

Debating issues of national and internationalimportance.

Supervising Government by questioning.Controlling Government income and

spending

Able to alter or oppose proposed new laws.

21


( ) S Wi d ill F b 2012


22/78

EXECUTIVE

Executive body: the Sovereign, PrimeMinister & Cabinet

Dealing with regular national andinternational affairs

Making decisions of new policies

Supervising departments of the government

22


( ) St Wi d ill F b 2012


23/78

PRIME MINISTER

PM: the leader of the political party which wins themajority of seats in Parliament.

Selecting the cabinet from their own party in the

House of Commons Responsible for the conduct of national affairs

directly

His authority comes from support in the House ofCommons.

23


( ) St Wi d ill F b 2012


24/78

Historical Legacy

The Composition of Parliament Today

Managing the British Parliament

The Legislative Process

Parliament and Finance

Scrutiny and Select Committees

Other Instruments of Parliamentary Scrutiny

Parliament's Role in the Wider Political System 24




25/78

CABINET

Members

consists of about 20 ministers chosen by thePrime Minister Selected by the PrimeMinister

Members of Commons

Sit on the

front benches

in the House ofCommons

25




26/78

CABINET

Function

It balances ministers' individual duties withtheir collective responsibility as members ofthe Government and takes the final decisionson all government policy.

Cabinet Committees include those dealing

with defence and overseas policy, economicpolicy, home and social affairs, theenvironment, and local government.

26




27/78

A Constitutional Framework of Executive

Power

Cabinet Government

Institutional Support for the Cabinet and

Prime Minister

Ministers and Departments

27




28/78

CIVIL SERVICE

Servants of the CrownNon-political groupCareer officials who remain in

office despite changes ingovernmentOffering advice about the

possible consequences of

policyResponsible for implementing

the policies of Government

28




29/78

JUDICIARY

The House of Lords is the ultimate appeal court inthe UK

The Secretary of State for Constitutional Affairs and

Lord Chancellor heads the judiciary and sits on thejudicial committee of the House of Lords. He alsopresides over the upper House in its law-makingrole and, as a senior Cabinet minister, heads the

Department of Constitutional Affairs.

29




30/78

The Court Structure

The Police

The Military

30




31/78

Changing Expectations and Values

Parliament

Tribunals

Inquiries

The Role of Ombudsmen

Administrative Law and Judicial Review

31




32/78

A Changing Society

The New Labour Ascendancy

Constitutional Reform

The Impact of Europe

32




33/78

THE CHARACTER OF THE MODERN BRITISH STATE

The Growth of theState

The Multiple

Dimensions ofGovernmentalActivity

ExplainingGovernmentalGrowth

An Overview of theModern British State

European? 33




34/78

Scotland

Wales

Northern Ireland

SE & SW

London

East & West Midlands

Yorks & Humberside

NE & NW

East of England

34




35/78

35

( ) y



36/78

UK local government

36

( ) y



37/78

UK local government

Since the Local Government Act1972

was enacted, UK local government hasevolved. Especially in England and Wales,

local government system is quite similar. But

there are still a little difference in Scotland and

Northern Ireland.

37

( ) y


38/78

Type Quantity Remarks

Traditional type

County Councils 34two-tier

District Councils 238 Belong to county council

Unitary Local Authority

English Unitary

Governments46 Some of local governments

single-tierWalsh UnitaryGovernments 22

Scottish UnitaryGovernments 32

Northern IrelandCouncils 26

Metropolitan Councils 36 Such as Liverpool

London Borough Councils 32

London Corporation Council 1

Total 467

Type of UK local governments

UK local government



39/78

Area Quantity Remarks

England

&Wales

47 County Councils

333 District Councils

11000 Parish Councils and Town Councils

36 Metropolitan Councils

32 London Borough Councils

1London Corporation Council

Scotland

9 Regional Councils

53 District Councils

1350 Town Councils and

3 Islands Councils

Northern Ireland 26 District Councils

UK local government




40/78

Survey of UK local government

The core of UK local government is local elected

council. County Councils or District Councils are called

principal local authorities.

Survey of UK local government

40



41/78

localelected

council

UK local government Structure

41



42/78

Finance of local government

rate support grant RSG

National non-domestic rates

council tax

various feeLocal government revenue sources

42



43/78


UK central government every year distributes rate

support grant, providing support to carry out the duty of local

government. It can be used for any fields of local governmentoperation.

rate support grant

43



44/78


National non-domestic rate is based on value of

commerce and industry. Central government determines the

standard rate and levy in whole country and then distribute to

local governments according to their number of people.

National non-domestic rate

44



45/78


Council tax is the only tax levied by local government.

But before 1998, the upper limit of council tax was decided

by Parliament, and local government has no rights to excess it.

Recently the situation become flexible and local government

still struggle for more rights on council tax.

Council tax

45



46/78


Local government can also raise money in money market,

but it must be approved by the responsible minister or is

limited in the credit line that decided by central government.

Councils can also raise income through charges

for instance,

charges for some refuse collection services or leisure services.

various fee

46



47/78

Most of the money of local government is used for

education, housing, road, social services, police, law and

order, environment, culture and entertainment. All of

expenditure cannot be over 7.9% of GDP. According tothe law local government is not allowed to have budget

deficit.

47


48/78

CIVIL SERVICE HR

Building the Civil Service HR Talent Pipeline



49/78

VISION

To build a strong, vibrant HR Community, that has a well-deserved

reputation for performance and for professional development, and thatattracts people with talent and ambition.

Will be:

business focused, delivering the business plan for our customers smaller, professional and more flexible

In demand - the best HR function in Britain

Innovative, enabling change

self sufficient with succession plans and an internal talent pipeline in place

for senior and key HR roles

Will work with customers to ensure:

they have the skills they need to deliver strong organisational performance

49

HR TALENT MANAGEMENT PRINCIPLES(c) Steven Windmill February 2012


50/78

HR TALENT MANAGEMENT PRINCIPLES

Attract By 2012 we will fill an increasing number of critical HR roles with internally developed talent

When we recruit into G7 and above, we will join up across the Civil Service through a strategic resourcing plan and ensurewe identify talent together, rather than solely recruit for individual roles

We will continue to bring in external talent to bring new ideas and experiences and to benchmark internal talent; to

address short supply capability areas, to refresh the profession; and to increase supply at entry level We will continue to provide talent development programmes for graduates who have the potential to become HR future leaders

Identify Potential is not just about those who can reach the very top. We will recognise expert talent in short supply HR capabilityareas as well as current and future HR leadership talent.

We will use and adapt the systems and processes from the HR Talent Reviews and align with departmental and CabinetOffice systems such as those for succession planning and talent

Civil Service HR Operations, Departments, and HR directors will work together to assess HR talent

The process will be transparent with line managers holding open and honest conversations with individuals at all levels of

the organisationDevelop We will actively manage people within the HR talent pipeline as a partnership between the individual, the department,

and Civil Service HR. Action will be on a prioritised basis and self-management of career will still apply withopportunities for development

An increasing number of critical HR roles will be filled by internally grown talent, and we will prepare and position ourinternal people to be the best candidates on merit.

Deploy In determining assignments we will focus on our most talented people to stretch them, and actively encourage individuals

to work across government. Together, Civil Service HR Operations and HR Directors will more actively manage, develop and broker moves for those

who are in the talent pipeline

HR talent belongs to Civil Service HR rather than individual managers or departments

We will recruit using the Civil Service HR Professional Standards, the Professional Skills for Government Core Skills, andthe Leadership Framework

50



51/78

THE INDIVIDUALS RESPONSIBILITY

Pushes self to

develop andgrow

Finds opportunities to learnand knows andmanages own limitations

Is ambitious to advanceand develop owncareer; is careerfocussed and iscomfortable with the lifechoices this mayinvolve

Is aware of ownstrengths andweaknesses, is awareof knowledge gaps,and is prepared to askquestions and listen

Looks for opportunities to develop;thrives on challenges even if they areoutside comfort zones

Learns how to bestdeploy strengths andmanage weaknesses

Is receptive to newideas and feedback;has the courage totry somethingdifferent and adapt

style and approachif that doesnt work

Acts on insights gained and hasan outward focus, rather thanconcentrating on lengthy self-focussed introspection

Proactively take up opportunities to develop performance, knowledge,skills and experience in line with career goals

Sets self ambitious targets for growthand development, aspires to moresenior positions

Knows how to make themost effective use ofthe available supportand learning

opportunities, alsoseeks out mentors andchampions that canhelp

Identifies and helpsdevelop potentialsuccessors to own postbefore moving on

51



52/78

THE CIVIL SERVICE HR SENIOR TALENT FORUM

Purpose To develop and prioritise actions for our most talented people

To have oversight of the critical HRSCS roles and agree a resourcingapproach for any critical HRSCS role vacancies

To have control over HRSCS appointments in all departments acrossgovernment

To succession plan for the critical HRSCS roles

To partner with individuals and departments to manage moves whereappropriate.

To partner with individuals and departments to develop people in the HRtalent pipeline and prepare them for future roles

52


53/78

TRAINING & DEVELOPING CIVIL

SERVANTS



54/78

EMERGENCE OF PERFORMANCE MANAGEMENT

Performance management has preoccupiedOECD since 1980s reasons are:Need to control public expenditure

Esure efficient and effective use of resourcesRising expectations of public

Increasing competition from private sector

Results culture

54



55/78

NEW MANAGEMENT SYSTEMS

Results based budgeting

Human resource management

Competency management

Performance indicators

Staff evaluation

Continuing professional development

55



56/78

WHAT IS PERFORMANCE MANAGEMENT?

A system for managing organisationalperformance

A system for managing employee

performance

A system for integrating the management oforganisational and employee performance

56



57/78

A SYSTEM FOR MANAGING ORGANISATIONAL

PERFORMANCE

A rational approach involving:

Mission statements which set out the aims and values of theorganisation

Corporate plans which set out the goals and objectives ofthe organisation

Business plans which set out specific plans, budgets , targets

and standards of performance for each part of theorganisation

All 3 are regularly and systematically reviewed

57



58/78

A SYSTEM FOR MANAGING EMPLOYEE

PERFORMANCE

Planning and setting key results areas, includingperformance targets, behaviour outputs and criteria formeasurement

Monitoring behaviour and objectives reinforcing

desired behaviour and redirecting inappropriatebehaviour

Appraising

Training and development, rewards

Re-planning

58



59/78

Selection Performance

Rewards

Appraisal

DevelopmentThe human resource management cycle

59

A SYSTEM FOR INTEGRATING THE MANAGEMENT(c) Steven Windmill February 2012


60/78

OF ORGANISATIONAL AND EMPLOYEE

PERFORMANCE

This rests upon the assumption that the interestsof the organisation and employees arecomplementary and compatible

It also assumes an integrated approach to strategicmanagement in which strategic HRM is integratedboth horizontally and vertically as part of businessplanning and in turn all aspects of human

resourcing are linked i.e. recruitment, rewards,training and development

60



61/78

PERFORMANCE MANAGEMENT SYSTEM

Planning

Performanc

e objectives

and targets

Identifying

behaviour

Providingdirection

Managing

Monitoring

behaviour &

objectives

Reinforcing

through rewards

Providingcontrol

Appraising

Formal appraisal

PerformanceTraining &

Developing

Determine

rewards

61



62/78

TYPES OF APPRAISAL

Top-down appraisal

Self-appraisal

Peer appraisal

Upward appraisal

360 degree appraisal

See handout for problems associated withappraisal

62



63/78

REWARDING PERFORMANCE

Multiple functions of reward systems

Types of reward systems intrinsic, extrinsic,unconditional, conditional

Old pay- new pay

Throughout OECD move to New Pay

PRP, market led.

63

PERFORMANCE MANAGEMENT IN THE BRITISH



64/78


CIVIL SERVICE 1

Staff appraisal is not new to the civil service.Staff appraisal is an integral element ofmanaging staff and deciding on promotion anddevelopment. But traditionally top down

reporting by managers until 1970s Current systems of staff appraisal date from the

introduction of NPM post 1979 with its resultsoriented approach to managing public services

rationalistic, economistic and generic.

64




65/78

remains central to New Labour policies forreforming public services since 1997. Set outclearly in the Modernizing GovernmentWhitePaper 1999, Reform of the Civil ServiceWilson

Report 1999, Vision of the Civil service for the21stCentury Turnbull 2004. ODonnells Vision 4 Ps pride, pace, passion, professionalism

Performance management is critical it is argued

to creating a high performance culture,continuous improvement and total quality


CIVIL SERVICE 1

65



66/78

THE CIVIL SERVICE IN GENERAL

All departments and agencies have their own systemsof performance management and staff appraisal

There are around 100 departments and agencies withdevolved responsibilities for HRM including pay

Pay is determined by collective bargaining and there aresome 90 bargaining units

Variations are limited by overall guidance andcoordination by the Cabinet Office( central departmentfor HRM and overall management of the service). Alsothe Management Code sets down procedures and rightsetc of civil servants.

66



67/78

PERFORMANCE MANAGEMENT IN THE SCS

The SCS consists of the top 3,700 civil servants found in alldepartments and large agencies. Managed by cabinet office.The system enables leaders to :

Focus individual performance & development on the delivery ofstrategic business priorities

Motivate people to give of their best

Support and inform succession planning, career and personaldevelopment

Provide capability - knowledge, expertise, experience

A basis for continuous improvement, sustaining contribution andsetting examples for all employees

67

PERFORMANCE MANAGEMENT SYSTEM IN THE



68/78

PERFORMANCE MANAGEMENT SYSTEM IN THE

SCS

All SCS have a job description which is normallylinked to a 4 year contract

performance year runs April to March

Performance agreement contains up to 4 businessobjectives or targets (SMART)

It also defines how the job is to be performed. Itidentifies key competencies, standards andbehaviours

In year performance reviews evaluate progress

68



69/78

END YEAR PERFORMANCE REVIEW

Records achievements against objectives, overallcontribution, growth in skills and leadershipcompetence based on evidence from jobholder and360% appraisal (line manager gathers this

feedback)

Indicates whether there is need for a personalperformance improvement plan (PPIP)

Separately makes recommendations on pay andbonus and information for succession planning

69



70/78

FURTHER ACTION

Within a month of the review individual and managershould meet to discuss and prepare a personaldevelopment plan

Regular development reviews cover both short-termand longer-term development including specificfeedback against SCS competencies and 360%feedback

Line managers can draw up performance improvementplans which indicate actions, measures, timescales andconsequences. PPIPs apply to lowest 20% ofperformers who are normally in the bottom tranche ofthe pay recommendation group

70



71/78

SCS REWARDS

The SCS Pay system is a simple broad band structureunderpinned by a tailored JESP scheme/ senior posts

Most departments use 3 pay bands but some use 4 .

The SSRB (Senior Salaries Review Body) recommends

the level of uplift to the bands and progression targetsand also base pay and minimum bonus payments

Bonuses are non-consolidates payments rewardingdelivery of personal objectives.

Managers make recommendations on eligibility andlevel of bonus

71



72/78

BASE PAY

Increases in Base salary recognises how the job hasbeen done as well as what has been achieved

End year managers make recommendations allocatingstaff to one of 3 tranches

Top tranche top 25% Middle tranche 65-70% contributed well and delivered

effectively

Bottom tranche 5-10% contributed least compared totheir peers

Departmental moderation committees endorse andauthorise pay rises and ensure consistency across thedepartments

72



73/78

ISSUES

The system was introduced 2001early problems Difficulty for line managers in clarifying objectives and

behavioural outcomes

The appraisal forms were complicated

Staff did not understand the new pay system Lack of transparency

Concern about bias by line managers and theimpartiality of departmental pay committees

What to do with poor performers Unfairness

73



74/78

10 YEARS ON - 2011

Improvement in recording systems now simplifiedand more dialogue, less forms

Research into causes of poor performance and

now guidelines for line managers to follow Latest staff surveys and evidence to SSRB

indicates higher levels of satisfaction

Latest report of Cabinet Office to SSRB indicates

evaluation generally positive

74

SCS COMPETENCY FRAMEWORK



75/78

SCS COMPETENCY FRAMEWORK

LEADERSHIP FOR RESULTS

Giving purpose and direction- creating andcommunication a vision of the future

Making a personal impact- leading by example

Thinking strategically- harnessing ideas and

opportunities to achieve goals Getting the best from peoplemotivating and

developing to achieve high performance

Learning and improving drawing on experience andideas to improve results

Focusing on delivery achieving value for money andresults

75



76/78

DEVELOPMENTS IN THE SCS

Revision of the competency framework Introduction of professional skills for government

By June 2006 95% of SCS members had developmentplans in place linked to PSG

September 2012 95% of SCS will demonstratecompetence in 6 key skill areas, which are (i)people management

(ii) financial management,

(iii) analysis and use of evidence,

(iv) project and programme management (v) strategic thinking

(vi) communication and marketing

76



77/78

NEW SCHOOL OF GOVERNMENT

The school will provide specialist courses in all areas ofthe new PSG structure and in particular courses inleadership training to achieve :

Visible leaders who inspire trust

Focus on strategic outcomes Take personal responsibility for delivering results

Work across traditional boundaries

Match resources to business priorities

Honest, courageous and realistic with staff andMinisters

Life long learner

77



78/78

QUESTIONS

economics, politics & the civil service - feb 2012

Documents