Whitehall must be held to business standards

18 Sep 09
Government departments should be benchmarked against private sector organisations and staff should be performance-managed, according to a report by MPs
By Richard Staines

18 September

Government departments should be benchmarked against private sector organisations and staff should be performance-managed, according to a report by MPs.

A Public Accounts Committee report, published on September 15, assessed the Departmental Capability Review Programme. It said the first round of reviews in 2006/07 had led to improvements in leadership and in the visibility of board and senior executive teams.

A second round of reviews completed last year showed that staff confidence in senior management was improving but was still poor, with a staff survey showing only half had confidence in senior managers.

But the PAC said the reviews, brokered by Cabinet secretary Sir Gus O’Donnell, should ‘drive improvement’ by comparing Whitehall departments with private sector companies.
‘Problems with individual staff at all levels must be identified and addressed vigorously through training, development and disciplinary measures, including dismissal where this is clearly required,’ the report added.

It also pointed to findings of a 2008 staff survey showing only half of staff had confidence in senior managers.

Edward Leigh, PAC chair, said: ‘Senior leaders in poorly performing government departments seem proof against dismissal in a way that leaders in local government are not.’

Guy Lodge, associate director at the Institute for Public Policy Research, said cuts in spending meant there would be ‘real pressure to reform Whitehall to make it more effective’.

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