Heywood's Whitehall – no longer economical with the actualité

What?

Top civil servant: Britain faces decade of cuts?

That's what it says in the Times:

The most senior civil servant in the country has warned of a decade of spending cuts. Sir Jeremy Heywood said the Government was only a quarter of the way through its austerity programme, the BBC reported. Speaking to civil servants at Westminster, Sir Jeremy warned that spending restraint could last “seven, eight, maybe ten years”. The Cabinet Secretary’s prediction echoes warnings by the Organisation for Economic Co-operation and Development (OECD) earlier this year that the Coalition’s austerity programme would be insufficient to bring the deficit down to “prudent” levels.

Prudent levels? Ten years of cuts?

Has Sir Jeremy gone native?

Has he forgotten the fine example of Sir-Gus-now-Lord O'Donnell who quite unmistakably told us that boom and bust had been abolished in the UK and that opportunities for all are available as a result? Now how is the unfortunate St Augustine supposed to lay his healing hands on the Governorship of the Bank of England?

There are entire countries currently voting against austerity – and presumably in favour of water running uphill – and Sir Jeremy chooses this moment, of all moments, to make it clear that if you get in the shower you're going to get wet?

Ed Miliband and Ed Balls are trying to build an opposition policy based on the idea that austerity is counter-productive and unnecessary. If Sir Jeremy insists that austerity is, quite simply, reality, what are the poor Eds to do?

How can they face François Hollande when he nips over to buy a flat in South Ken with his paramour Mme Rottweiler?

What do they say when Barack rings up for a spot of advice on the Presidential election campaign?

And most tragic of all, how are the Guardian supposed to fill their op-ed pages? Even 1,000 more Jimmy Carrs repenting would only raise a crummy billion pounds in extra revenue – a drop in the ocean, barely one-fiftieth of the annual interest bill on our national debt of a trillion pounds.

It wouldn't even help all that much if the Guardian themselves forswore their tax avoidance arrangements with Apax Partners and started paying their fair share.

Sir Jeremy – it's very brave of you, of course, very brave indeed, but what were you thinking of?

(Moody's poised to downgrade UK's banks – truth-telling becomes fashionable.)

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Cribsheet:
Just to remind the younger readers how successful Gus was, running the economy with his glove-puppets Brown and Balls, the Times article says:

Despite the deficit-reduction programme, the European Commission predicts Britain’s deficit will reach 6.5 per cent of GDP in 2013, higher than any other EU state bar Greece with 8.4 per cent and Ireland at 7.5 per cent.

Not the ideal CV, surely, for the supplicant would-be next Governor of the Bank of England.

Heywood's Whitehall – no longer economical with the actualité

What?

Top civil servant: Britain faces decade of cuts?

That's what it says in the Times:

The most senior civil servant in the country has warned of a decade of spending cuts. Sir Jeremy Heywood said the Government was only a quarter of the way through its austerity programme, the BBC reported. Speaking to civil servants at Westminster, Sir Jeremy warned that spending restraint could last “seven, eight, maybe ten years”. The Cabinet Secretary’s prediction echoes warnings by the Organisation for Economic Co-operation and Development (OECD) earlier this year that the Coalition’s austerity programme would be insufficient to bring the deficit down to “prudent” levels.

Prudent levels? Ten years of cuts?

Has Sir Jeremy gone native?

Has he forgotten the fine example of Sir-Gus-now-Lord O'Donnell who quite unmistakably told us that boom and bust had been abolished in the UK and that opportunities for all are available as a result? Now how is the unfortunate St Augustine supposed to lay his healing hands on the Governorship of the Bank of England?

HMG's cloud computing strategy – there isn't one – and the Edgbaston Test

On 20 October 2011 Chris Chant listed 23 symptoms of the illness which Government IT suffers from. He carried on energetically repeating his diagnosis, unchallenged, and promoting cloud computing as the effective prescription. There he was, at it again, six months later on 11 April 2012, in a blog post on the G-Cloud website, #Unacceptable IT is pervasive. Two days later his resignation was announced.

The man in charge of G-Cloud is Andy Nelson, the Government's Chief Information Officer (CIO). That's only a part-time job. He is more fully occupied as CIO at the Ministry of Justice, where he's got his work cut out with Libra among other things. Libra is the £467 million Fujitsu system which is meant to produce the accounts for HM Courts and Tribunals Service. When the National Audit Office saw the 2010-11 accounts they were in such a mess that the NAO couldn't even qualify their opinion, they had to disclaim an opinion.

Under Mr Nelson, Denise McDonagh is also responsible for G-Cloud. Again, it's only a part-time job. Her day job is CIO at the Home Office. And again, there are quite a few distractions there:

• There's the £385 million CSC contract with Sarah Rapson's Identity & Passport Service which is one of the reasons UK passport-holders are currently being over-charged by £300 million a year.
• There's the £265 million IBM contract with the UK Border Agency to provide IABS, Jackie Keane's Immigration and Asylum Biometric System. IABS is meant to keep the UK border secure and make the 2012 Olympics safe but there's a problem – the biometrics don't work.
• The same problem applies to the National Policing Improvement Agency's promotion of MobileID, a system to allow policemen on patrol to check suspects' fingerprints on the spot using mobile equipment. The idea is for MobileID to save police time. Which it will because, with a 20% failure rate, this flaky technology will cause 20% fewer criminals to be arrested.

Those distractions and others will no doubt explain her lacklustre post on 26 April 2012, Cloud Cynicism (or Dispelling the Dark Clouds) and why she hasn't been heard from since.

Not so, Eleanor Stewart. She's a trouper. She's the Assistant Director of G-Cloud and she's always good for a lively post. On 27 April 2012 she produced Crowdsourcing and a response., in which she took up some of the many questions posed in the 20 responses to Chris Chant's last post.

What the heck can we do to resolve some of the scary and largely unknown legal and policy issues that people are nervous about in a globalised world?, she asked. Good question. No answer.

And What ‘worked examples’ might we be able to provide to ... sceptics? That's in response to the simple question how cloud computing is supposed to obviate the need for long contracts to produce systems like Libra, for example, or IABS or DWP's Universal Credit. Chris Chant says it will. How? No answer.

Ms Stewart threw the post open to the crowd. And published one comment. One. The limiting case of a crowd. (I wandered lonely as a cloud?)

"Scary and largely unknown"? Hmm. Quite clearly, no-one in HMG knows the answers to some very basic questions about its cloud computing strategy. Which is odd. They keep talking about it. Andy Nelson, for example, was holding forth at the Cloud Computing World Forum only the other day. And they've been advocating it for years – the G-Cloud Overview was being touted in August 2010. But still no-one can answer the questions.

Is it all hot air? A cloud of hot air? A cloud which, when it hits some of the colder patches of reality, results in heavy precipitation and the wettest drought ever seen, which washed out the Edgbaston Test? That's certainly what it looks like at this end of the wicket.

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A version of this post has been kindly published by the estimable PublicTechnology.net

HMG's cloud computing strategy – there isn't one – and the Edgbaston Test

On 20 October 2011 Chris Chant listed 23 symptoms of the illness which Government IT suffers from. He carried on energetically repeating his diagnosis, unchallenged, and promoting cloud computing as the effective prescription. There he was, at it again, six months later on 11 April 2012, in a blog post on the G-Cloud website, #Unacceptable IT is pervasive. Two days later his resignation was announced.

A senior Whitehall insider publicly cites 23 reasons why the relationship with Government IT suppliers is poisoned, and no-one disagrees – who cares?

On 20 October 2011, when he was still an Executive Director of the Cabinet Office, Chris Chant delivered a famous speech to the Institute for Government about Government IT. He said that:

Introducing Chris Chant Chris has a long track record of success in delivering complex business and technology change in the public sector. Most of his work has involved working in successful partnership with multiple public sector bodies and the largest IT suppliers in the industry, where he has championed innovative approaches which challenge attitudes on both sides of the partnership. His recent work has included stints as the Programme Director in the Cabinet Office leading the UK Government’s move to cloud computing and data centre consolidation across the public sector. Previously, Chris was Director of London 2012 Integration and Assurance and also Chief Information Officer within the Government Olympic Executive, and also held specific responsibility for ensuring integrated delivery of the security systems required. Before that, Chris was CIO for Defra, where he led a major IT service improvement programme with a strategic outsourcing partner. After his early career in the (then) Inland Revenue and later, HMRC, he worked at the cabinet Office where he was programme director for a range of large and complex multi-agency IT services, including the Government Gateway.

1. Government IT is outrageously expensive ...
2. ... and ridiculously slow
3. It is poor quality ...
4. ... and not user-centric
5. No-one knows how many staff are employed or what they do or how much they cost
6. No-one knows whether contracts with suppliers can be terminated or how much it would cost to do so
7. No contract should be signed for a term of more than 12 months but they are – they are signed for years into the future, far beyond the time when anyone could know what will be wanted by then
8. Procuring Government IT should be like buying a suit from Marks and Spencer – M&S do not make you promise in advance to buy x suits over the next y years before opening a shop in your vicinity
9. The Government doesn't know what IT systems it owns, how much they cost and even whether they are used
10. They don't know if users have given up using systems and, if so, why
11. Government can't communicate with its customers securely
12. Government pays £3,500 p.a. per PC
13. Staff should be allowed to use Twitter and YouTube at work but they're not
14. Call centre staff should have access to the systems they are trying to support but they don't
15. 80% of Government IT is supplied by just five contractors
16. Departments outsource their strategy to contractors and consultants
17. It can cost £50,000 to get a single line of program code amended
18. It can take 12 weeks to get a new server commissioned whereas with Amazon there is no wait
19. Government should use small and medium size suppliers whose IT practices are more "agile" but instead they stick with the big ponderous suppliers
20. Government keeps paying for IT resources even if they're not used
21. They waste time and money as one department after another performs the same job of assessing the same products for the same job
22. Prices are not forced down, competition is not working and there is no incentive for contractors to do a good job ...

Mr Chant recommended several times over the ensuing months that Government IT professionals who couldn't deliver a better service should consider their position.

In the event, they're still in place, and it's Mr Chant who has gone – he retired at the end of April 2012 ...

... but not before giving one last speech (25 April 2012, SOCITM Spring Conference) in which he revealed a 23rd problem – that Government departments have in the past agreed, at the suppliers' insistence, not to tell each other how much they are paying for IT services:

There were times when we couldn't talk between government departments about one organisation's contracts with another ... Not being able to discuss contracts between government departments is crazy.

No-one has contradicted Mr Chant.

Not a soul. Not a politician, not a civil servant, not a contractor, not a consultant. No-one.

We may take it, then, that Mr Chant's view of the current state of Government IT is accepted without demur. He is right. This is the state of the art. This is the conventional wisdom – the relationship between Whitehall and its IT suppliers is poisoned and the public are being fleeced. After three decades of outsourcing and privatising. Three decades of introducing private sector methods and private sector personnel.

Mr Chant's views are consonant with the findings week after week of the National Audit Office and with the judgements of the Public Accounts Committee and the Public Administration Committee, see for example Public Administration Committee – Twelfth Report, Government and IT– "A Recipe For Rip-Offs": Time For A New Approach (18 July 2011).

To be fair, Mr Chant does offer a new approach. Cloud computing. Which, the way he tells it, will solve all 23 problems at a stroke. That is the new IT strategy being pursued by Whitehall, see particularly HMG's G-Cloud (Government Cloud) website and blog.

But beware. Where is Government IT strategy made, according to Mr Chant? Answer – in the offices of the suppliers.

HMG's sales promotion of cloud computing is indistinguishable from the suppliers of cloud computing's own sales literature. Often, they are the same suppliers who suffer from the 23 deficiencies above who now claim to be "agile" and to be committed to cutting costs by – Mr Chant's figure – up to 82%.

Is it likely that the same Whitehall officials dealing with the same suppliers will reverse the lucrative practices of 30 years and now show mercy to the taxpayer? Is it likely that the same Whitehall officials dealing with new suppliers, like Google and Amazon and maybe Facebook, will deliver any better value for money to the public?

No.

to be continued ...

A senior Whitehall insider publicly cites 23 reasons why the relationship with Government IT suppliers is poisoned, and no-one disagrees – who cares?

On 20 October 2011, when he was still an Executive Director of the Cabinet Office, Chris Chant delivered a famous speech to the Institute for Government about Government IT. He said that:

Introducing Chris Chant Chris has a long track record of success in delivering complex business and technology change in the public sector. Most of his work has involved working in successful partnership with multiple public sector bodies and the largest IT suppliers in the industry, where he has championed innovative approaches which challenge attitudes on both sides of the partnership. His recent work has included stints as the Programme Director in the Cabinet Office leading the UK Government’s move to cloud computing and data centre consolidation across the public sector. Previously, Chris was Director of London 2012 Integration and Assurance and also Chief Information Officer within the Government Olympic Executive, and also held specific responsibility for ensuring integrated delivery of the security systems required. Before that, Chris was CIO for Defra, where he led a major IT service improvement programme with a strategic outsourcing partner. After his early career in the (then) Inland Revenue and later, HMRC, he worked at the cabinet Office where he was programme director for a range of large and complex multi-agency IT services, including the Government Gateway.

1. Government IT is outrageously expensive ...
2. ... and ridiculously slow
3. It is poor quality ...
4. ... and not user-centric
5. No-one knows how many staff are employed or what they do or how much they cost
6. No-one knows whether contracts with suppliers can be terminated or how much it would cost to do so
7. No contract should be signed for a term of more than 12 months but they are – they are signed for years into the future, far beyond the time when anyone could know what will be wanted by then
8. Procuring Government IT should be like buying a suit from Marks and Spencer – M&S do not make you promise in advance to buy x suits over the next y years before opening a shop in your vicinity
9. The Government doesn't know what IT systems it owns, how much they cost and even whether they are used
10. They don't know if users have given up using systems and, if so, why
11. Government can't communicate with its customers securely
12. Government pays £3,500 p.a. per PC
13. Staff should be allowed to use Twitter and YouTube at work but they're not
14. Call centre staff should have access to the systems they are trying to support but they don't
15. 80% of Government IT is supplied by just five contractors
16. Departments outsource their strategy to contractors and consultants
17. It can cost £50,000 to get a single line of program code amended
18. It can take 12 weeks to get a new server commissioned whereas with Amazon there is no wait
19. Government should use small and medium size suppliers whose IT practices are more "agile" but instead they stick with the big ponderous suppliers
20. Government keeps paying for IT resources even if they're not used
21. They waste time and money as one department after another performs the same job of assessing the same products for the same job
22. Prices are not forced down, competition is not working and there is no incentive for contractors to do a good job ...

Dead fish Department of Health has lost sight of the "public" in "public service" – Sir David Nicholson KCB CBE

Key Stage 3 is that phase in the education of our children which takes place in England between the ages of 11 and 14. The syllabus is demanding and includes a course on management consultancy. No mere ivory tower training divorced from the real world, students are expected to give policy advice to Whitehall departments. Advice on procurement, for example, much needed by the Department of Health.

All procurement should be centralised, said the team from Stretchford Middle School, so that stakeholders in the NHS all pay the same price and, with the economies of scale available to the Department, currently spending about £120 billion of our money every year, that price should be a minimum, offering the best value for public money.

Similar advice was given to the Civil Service by Sir Philip Green, of course, on one of his rare visits from Monaco. Philip Green's efficiency purge recommends more centralisation, ran the headline in the Guardian, before going on to spell it out:

The government has little control over the money its own civil servants spend and is wasting billions every year by failing to negotiate the best contracts for phones, IT equipment and rent, according to the Topshop boss Sir Philip Green, who was brought in by ministers to assess efficiency in Whitehall ... The report identifies massive variation in procurement with one department paying £73 for a box of paper and another paying £8. The most paid for printer cartridges is £398 and the least is £86 ...

As all management consultants know, you hand in your report full of tightly argued recommendations, you go back to Monaco (or Stretchford) and what does the stupid client do?

Something stupid.

Like ignore your recommendations.

Generally true, that is not the case at the NHS. Not by a long chalk. Sir David Nicholson KCB CBE, Chief Executive, runs a tight ship. The National Programme for IT (NPfIT) divides England into five regions, the contracts are held by just two organisations, (CSC-3 and BT-2), and they all come together at just one central point, CfH, Connecting for Health, as recommended.

And now, a cautionary tale.

Some poor deluded soul at the Whittington Health NHS Trust went out on his or her own and bought an electronic patient records system (EPR). They could have got it from BT, who have the NPfIT contracts for London and for the South of England. But, no, poor benighted fools that they are, lambs to the slaughter, they set out to do the procurement themselves.

BT's EPR is an American package called Cerner Millennium. In London, Cerner Millennium costs £31 million on average. And in the South of England, health trusts pay an average of £36 million for the same thing. Almost the same price. Only £5 million different.

And, wantonly ignoring all the added value of Whitehall's magisterial assistance acting energetically exclusively in the public interest, what did the naïve neophytes of Whittington Health pay?

£7.1 million.

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Hat tip: as so often, Tony Collins.

What the students learn at Key Stage 4 is that all the normal rules of logic, arithmetic, business and economics that govern rational open markets break down in Whitehall.

These rules melt in the heat of the close personal bonds between the Department and its suppliers. The Department of Health's friendship with BT and CSC is not a unique example. We have already seen a similar  case of producer capture at the UK Border Agency where Rob Whiteman, the Chief Executive, would rather not mention Atos's name in connection with the immigration computer system breaking down for a month.

These relationships are intense. Too intense to accommodate any other loyalties. Other loyalties such as public service.

Dead fish Department of Health has lost sight of the "public" in "public service" – Sir David Nicholson KCB CBE

Key Stage 3 is that phase in the education of our children which takes place in England between the ages of 11 and 14. The syllabus is demanding and includes a course on management consultancy. No mere ivory tower training divorced from the real world, students are expected to give policy advice to Whitehall departments. Advice on procurement, for example, much needed by the Department of Health.

The other Golden Jubilee – 60 years of Whitehall's disgraceful public administration, "administrative lawlessness"

In The English Constitution (1867) Walter Bagehot famously wrote:

No one can approach to an understanding of the English institutions, or of others which, being the growth of many centuries, exercise a wide sway over mixed populations, unless he divide them into two classes. In such constitutions there are two parts (not indeed separable with microscopic accuracy, for the genius of great affairs abhors nicety of division) first, those which excite and preserve the reverence of the population — the dignified parts, if I may so call them; and next, the efficient parts — those by which it, in fact, works and rules.

We have all just had a pleasant four days here in the UK to reflect on and to observe the success of the dignified parts.

The Constitution doesn't come with guarantees but, since 1936 when Edward VIII mercifully got rid of himself, we seem to have enjoyed dignified parts of the Constitution which live up to their name.

Now the four days are over and it's back to the efficient parts, which don't.

In his book The Socialist Case Douglas Jay wrote:

Housewives as a whole cannot be trusted to buy all the right things, where nutrition and health are concerned. This is really no more than an extension of the principle according to which the housewife herself would not trust a child of four to select the week's purchases. For in the case of nutrition and health just as in education, the gentlemen of Whitehall really do know better what is good for the people than the people know themselves.

That was in 1937, 75 years ago, and things have changed since then – no civilised man today believes that women are inferior and no four year-old can still subscribe to Lord Jay’s Doctrine of the Infallibility of Whitehall.

In 1952 Professor GW Keeton published his book The Passing of Parliament. Keeton was Dean of the Faculty of Laws at University College, London. He debunks The Socialist Case and points to the danger of the Executive moving beyond the reach of either Parliament or the Common Law:

... Very far from the Common Law replacing administrative tribunals, more and more are being created outside the Common Law year by year, and some of the cases discussed earlier in this book will show how, in spite of obvious willingness, the courts have failed to hold back the onward rush of administrative lawlessness.

That was 60 years ago. Keeton’s question then was, in summary, what was the point of going through all the suffering of the Civil War and of establishing the supremacy of Parliament in the 1689 Bill of Rights if we end up with an Executive behaving for all the world like some latter-day monarch whimsically exercising his or her prerogatives?

In those same 60 years, while the dignified parts of the Constitution have given the definitive lesson in public service, too often Whitehall has continued arrogantly to ignore the interests of the public it is meant to serve while it makes one defective decision after another, inefficient and accountable to no-one.

We have just celebrated two Golden Jubilees. One of them is Whitehall's 60 years of "administrative lawlessness".

The other Golden Jubilee – 60 years of Whitehall's disgraceful public administration, "administrative lawlessness"

In The English Constitution (1867) Walter Bagehot famously wrote:

No one can approach to an understanding of the English institutions, or of others which, being the growth of many centuries, exercise a wide sway over mixed populations, unless he divide them into two classes. In such constitutions there are two parts (not indeed separable with microscopic accuracy, for the genius of great affairs abhors nicety of division) first, those which excite and preserve the reverence of the population — the dignified parts, if I may so call them; and next, the efficient parts — those by which it, in fact, works and rules.

We have all just had a pleasant four days here in the UK to reflect on and to observe the success of the dignified parts.

The Constitution doesn't come with guarantees but, since 1936 when Edward VIII mercifully got rid of himself, we seem to have enjoyed dignified parts of the Constitution which live up to their name.

Now the four days are over and it's back to the efficient parts, which don't.