In the last few weeks,
a report entitled State of Innovation (pdf) - authored by Nesta's
Matthew Gatehouse and Adam Price - was published as part of the Welsh
Public Services 2025 programme.
It sets out a vision of a
more innovative Welsh public sector which, considering it's
proportionally large impact on the Welsh economy, could well become
necessary if we want to see public services delivered more
efficiently, and more imaginatively, in the backdrop of public
spending cuts.
Why the public sector needs innovation
The
report highlights a "triple vice":
- Public spending
cuts and austerity – The impact is likely to last for at least five
years, probably more, affecting the general Welsh economy (due to
more public sector employees). There's also the issue of "Offa's Gap" – a gap in economic productivity between Wales and the
rest of the UK. So public services can't be based off the
back of continuous economic growth filling coffers anymore.
- An
ageing and ill population – Rates of child poverty and chronic illness remain above UK averages. Wales also has a proportionately older population too, with the number of over-75s expected to
increase by up to 80% by the 2030s.
- Environmental and social
pressures – We increasingly expect to do activities "on demand" and "on the
fly" since the advent of things like social media - expecting the same flexibility from our public services. We're still using more
than our fair share of natural resources despite commitments to
"sustainability". This impacts the public sector, as
much as the private sector and individual households.
What
does public sector innovation actually mean?
The report says,
"new ideas that work at creating public value". In English,
I think that means improving how things are run, instead of simply
throwing money at problems and hoping that'll work – the
usual way of doing things. "Working smarter", then.
The
report describes three different types of innovation :
- Incremental
– Smaller changes to existing services over a longer period of
time.
- Radical – Significant changes to existing services,
without altering the underlying purpose of those
services.
- Transformational – "Ripping the whole lot up and
starting again", with completely new services or methods of
service delivery.
I think it's safe to say that the Welsh
Government and civil service often opt for "incremental"
change, or even not bothering with change at all, and rarely make the
step up to "radical" innovation. Those "transformational"
changes require new technologies, mind-sets and skills;
so they might sound seductive, but might not always be the best
option on the table.
Present Welsh public service
innovation
 |
Foundation Phase is given as an example of where the
Welsh public sector has been "innovative". Similar examples
are fleeting, however.
(Pic : npted.org) |
Devolution is said to have been delivered off the
back of "Made in Wales" solutions to long-standing problems in areas like the economy and health. However, there's
lament at the lack of innovation. Instead – and I think we all know
this, except the people at the top – we ended up with Westminster
policies simply being "tuned" to Welsh needs. The civil
service got used to doing things a certain way, without being as
"stand alone" as Scotland and Northern Ireland.
Innovation in Wales extends to freebies and subsidised schemes.
Low-hanging fruit, sometimes cheap to deliver, and politically
successful for Welsh Labour. In other cases, there've been more
dramatic changes, like the introduction of Foundation Phase, and the
proposed organ donation opt-out law.
One key factor in all
this was the Welsh Government's adoption of "partnership and
persuasion", instead of aping the more hostile relationship between
Westminster and those delivering public services on the ground in England.
There are said to be two "defining
strengths" with regard innovation in the Welsh public sector
:
- Political cohesion – Welsh public services are "closely
knit", with the potential for a highly co-ordinated system for
innovation, helped by pan-Wales bodies.
- Social sciences –
Welsh universities produce "world-leading" social science
research – for example, Cardiff's School of Planning. This has been
added to via the creation of things like the Public Policy Institute,
as well as independent bodies like the Bevan Foundation and Institute
of Welsh Affairs.
However, there has been frustration in Cathays Park at the lack of
progress made in delivering at a local level by councils and various
public bodies. There are an awful lot of other roadblocks
too, namely :
- Organisational thinness – We haven't got the
numbers to develop the "big" institutions needed to develop
the right skills.
- Lock-out – Small-c conservatism and insularity
in the Welsh public sector, where everything is done "on the inside" since the "Bonfire of the Quangos".
- Lack
of citizen engagement – Service users are best placed to point
out how things could work better, but aren't being asked, or aren't
bothered enough to care.
- Fragmentation – There's no single system to highlight successful innovations and share them
between different parts of the public sector.
What are the
barriers to public sector innovation?
These are all things
anyone who follows Welsh politics closely will agree with. It makes
for depressing reading, but most of you will be nodding along I'd
expect.
- Hierarchies and "silo mentalities" –
Seeing radical ideas from "outside" as a threat, and
operating in a way that creates barriers to
sharing ideas between different parts of the public sector. There's
very little mixing of academic research with practice.
- Risk
aversion – Public services staff seeing innovation as a threat to
their job, or a challenge to the comfy status quo. The need to be
accountable and a need for "certainty" means there's a disincentive to make major changes that could have a big pay off, but
might not work.
- No rewards – "If it ain't broke...."
mentality, meaning if a service is trundling along fine, it won't be
tampered with by managers. Also, radical changes are often flagged up
by the media and then opposed by service users, trade unions and politicians.
- Short-termism – Public service staff work to fix immediate
pressures and on administration, instead of "taking a step back
and seeing if you can do things differently".
- Politics –
Contributes to short-termism by "demanding instant results"
rather than more effective longer-terms solutions. The Foundation
Phase is cited as an example, where the results won't be known for
perhaps another decade.
Although these are general barriers
that can happen everywhere, there are more Wales-specific
problems too :
- Higher proportion of people working in the
public sector, who don't get rewarded for innovation and might fear
their job is at risk by adopting riskier, untested methods of service
delivery. Because of lower private sector employment, they might
worry they won't find another job.
- A lack of creative leadership
in public management, who end up perpetuating the above.
- Innovation
is seen as a "distraction" from service delivery in Wales
compared to England.
- Auditing compares public services with
existing "good practice" rather than taking into account
radical and untested/unproven schemes. Staff said they end up trying
to meeting audit checklists rather than coming up with new ways to
deliver services. This might result in services improving,
but only because of "doing the wrong things better."
What
can be done?
That's actually the wrong question. One of the
key tenets of the report isn't, "What could be done?" But
more, "Wales is doing a lot already, it just isn't being
exploited as it could be." It contained plenty of examples, but
I decided not to go into them for the sake of brevity (LOL!).
In terms of specific proposals, there's a national action plan
outlined as :
- Bringing "social science research and
public service practice" closer together, with greater
collaboration, generating the evidence base needed to put forward the
case for more radical public service reforms.
- Making innovation
skills a key part of public management training, in order to "create
a cadre of leaders in Wales who create a new vision for public
services." This would help turn innovation into workable projects.
- Engaging more independent bodies in
public service innovation, to create a more "entrepreneurial
culture" to drive up productivity, and develop enterprises to
provide services within local communities.
- Incentivise partners in
the private sector – especially technology – to turn Wales into a
"global test bed" for innovations in public services.
Examples include digital education and developing new technology in reaction to an
ageing population.
There are also other proposals and
unanswered questions, like : funding innovation as a proportion of public sector spending (in the same way private companies
invest in R&D), prizes for innovation and changes to how
performances are measured to make "taking risks" more attractive.
Can Wales become a
State of Innovation?
Ultimately, you'll have to ask Carwyn and
the civil service. He's made small steps in that direction through
the establishment of the Public Policy Institute, as covered by A Change of Personnel. I still remain sceptical about the remit of the
"think tank that can't think", but I don't question the
First Minister's sincerity. Maybe this report will be picked up
there, who knows?
It's another report that, as Prof.
Dylan Jones-Evans bemoans on Click on Wales, largely went under the
radar. In all honesty though, it's incredibly hard to make reports
like these interesting for the media or relevant to the public - even
if said reports are excellent or important.
If posts like this
get picked up by other people who have a bigger audience, or make
people understand things better - great, I've done my job. That rarely happens as I'm preaching to the choir. I have the
luxury of being able to do that, though – the mainstream media
don't. But isn't that the problem in the first place?
And,
"Doing the wrong things better" is the best summing up of
Wales since devolution I've ever come across.