Workforce Productivity Resource Pack1
Workforce Productivity Resource Pack1
April 2010
This resource pack is designed to help public sector organisations think about how to
measure and improve the productivity of their workforce.
[email protected]
Improving workforce productivity means action in a range of
Open the presentation as a
areas. We suggest the following key principles, which build slide show, and click on the
on the IDeA’s productivity framework, are a helpful start: yellow boxes to take you
to the right section.
Core Jointly developing, with staff, the core values of your organisation and ensuring they are clearly
values understood is central to ensuring that strategic vision and key outcomes can be implemented
effectively and is fundamental to a productive workplace.
There is a growing body of evidence indicating that having clearly articulated core values has a
positive effect on organisational performance, for example by encouraging staff to prioritise
activities and behaviours that will take the organisation in the direction it wants to go. Some
research also suggests that employees will have higher levels of well-being and be more productive
if their values align with those of the organisation in which they work. You can see some examples
of the research at:
http://mldc.whs.mil/download/documents/Issue%20Papers/Core_Values_6.pdf
Having clear, locally-owned values is critical, but not sufficient. These values must be lived and
truly embedded in the organisational culture.
Having identified a common set of values with which the workforce can identify, the crucial next
step is to embed these values into the structures, processes, systems and the day-to-day workings
of the organisation. The NHS Institute for Innovation and Improvement’s Values Development
Resource, for example, enables any NHS organisation to develop or refresh their organisational
values and advises how to ensure those values are both lived by the organisation and that their
impact is measured: http://www.dh.gov.uk/en/Healthcare/NHSConstitution/DH_112939
Vision The Paragon Programme developed by West Midlands Police is one example of how an
and key organisation sees core values, a clear vision and key outcomes as necessary to building a
outcomes productive workplace. For an overview see:
http://www.west-midlands-pa.gov.uk/documents/committees/public/2009/08_PolAuth_10Dec09_Program
me_Paragon.pdf
Principle 2: An organisational culture that enables productivity and innovation (1)
Embedding In a productive organisation, the culture is one where productivity principles are part of
the right everyday thinking and behaviours. An organisation’s leadership plays a strong role in this, by
culture developing clear core values, a vision and a strategy and then aligning these with a productive
culture by communicating and modelling the behaviours that are needed.
In South Tyneside Council, leaders instigated a ‘cultural revolution’ which began to identify the
behaviours that contribute to an effective and productive organisation and fit with the core
values, vision and key objectives of the organisation. For a detailed report on South Tyneside’s
approach see http://www.southtyneside.info/search/tempDocuments/tmp_42459.pdf
The Institute for Leadership and Management report, Leading Change in the Public Sector 2010,
shows that empowering managers through training and development opportunities, increasing
local decision-making capabilities and enabling more locally produced and relevant targets can
help instil a culture of professionalism. You can see the report at:
http://www.i-l-m.com/research-and-comment/7790.aspx.
One example of a shift in organisational culture has begun in the police service. Operation
Quest aims to embed a commitment to the mindsets necessary for productivity and operational
improvements. It does this by focusing on positive behaviours and performance, creating local
ownership and incentivising cashable savings by providing for their reinvestment in services.
For further information see
http://police.homeoffice.gov.uk/human-resources/efficiency-and-productivity/operation-quest/
Principle 2: An organisational culture that enables productivity and innovation (2)
Embedding In the current economic climate it is important to have a value-for-money culture throughout
the right the whole organisation, and it may be useful to develop ways of measuring this. Cheshire
culture Peaks and Plains Housing Trust has developed an annual staff value for money survey,
(cont) which indicates workforce familiarity with principles of value for money to monitor to
demonstrate the extent to which a value for money culture has become embedded. See
http://www.auditcommission.gov.uk/housing/goodpractice/Valueformoney/Pages/vfmstaffsurveys.a
spx
Unlocking NESTA’s report Everyday Innovation sets out that, in the current economic climate,
innovative capacity to innovate and improve productivity is becoming more of an imperative.
behaviours Discussions with front line staff, their representatives and their employers, suggest there
are workforce practices that can help contribute to a culture of innovation.
Public sector organisations need to think about risk as part of their everyday business.
But a risk-averse culture is a key barrier to workforce innovation. Developing a tolerance
for novelty and creating a culture and climate where new ideas are allowed to flourish and
are rewarded is important for innovation and productivity improvements.
Recognising that innovation drives service delivery, and can drive productivity
improvements, the NHS Institute for Innovation and Improvement has developed a
valuable resource for organisations in the health sector to foster workforce innovation.
This is available at
http://www.institute.nhs.uk/index.php?option=com_joomcart&Itemid=194&main_page=index&cPa
th=88
Principle 2: An organisational culture that enables productivity and innovation (3)
The Innovation Unit at the Cabinet Office, alongside the Customer Insight Forum, has
developed a range of resources that provide guidance on how to liberate the ideas of
members of the public and how to engage in successful and innovative service
redesign:
http://www.cabinetoffice.gov.uk/public_service_reform/innovation/resources.aspx
The Department for Business, Innovation and Skills has launched a new website
dedicated to public sector innovation, including information, resources and case
studies:
http://publicsectorinnovation.bis.gov.uk/
Principle 3: Doing the right things to meet the needs of their local community
Identifying To really focus on productivity it’s vital to ensure you are doing the right things to meet the
need needs of your local community.
The IDeA’s productivity resource suggests a number of things you can do to make sure that you
are identifying and meeting these needs. You can see their suggestions and a case study at this
link: http://www.idea.gov.uk/idk/core/page.do?pageId=11803171
Gaps Productivity challenges can exist in the gaps between services as well as within a single
between service. Approaches like Total Place are trying to address this gap by looking at how services
services join up across a locality. http://www.localleadership.gov.uk/totalplace/
Customer
There is a great deal of work going on to look at the channels through which services are
contact delivered to the public, much of which was kick-started by Sir David Varney’s 2006 report on
service transformation.
http://www.hm-treasury.gov.uk/d/pbr06_varney_review.pdf
Understanding customer contact is vital, and the Contact Council, supported by the Cabinet
Office’s Service Transformation team, has developed a number of support resources:
http://www.cabinetoffice.gov.uk/public_service_reform/contact_council/resources.aspx
Principle 4: A way of working that supports productivity (1)
The idea of ‘lean’ can be tailored and adapted to specific sectors and organisations.
In the police service, the Quest programme provided forces with an approach
designed to eliminate waste, empower local forces and to optimise a user-focused
service. Further information can be found here:
http://police.homeoffice.gov.uk/human-resources/efficiency-and-productivity/operation-quest
/
A report from the CBI, Leaner and Fitter, emphasises the central role of the workforce
to an organisation’s productivity and outlines 10 principles for productivity
improvements to create a more productive organisation.
http://publicservices.cbi.org.uk/uploaded/Leaner_and_fitter.pdf
Principle 4: A way of working that supports productivity (2)
Simple,
streamlined HM Revenue and Customs reassessed their delivery systems and processes from a
and effective customer perspective using a ‘Total Cost to Serve’ model aiming to minimise customer
systems burden and improve their reputation and efficiency. HMRC began by considering the
(cont) true costs of interactions for both customers and HMRC, and how it would be possible
to develop a cost measure to link improved customer focus with business efficiency.
They examined:
•the customer journey, to identify patterns in interaction with customers and their
associated costs (monetary and emotional)
•opportunities to reduce barriers to compliance and remove the obstacles that create
poor customer experiences
•the compelling and robust evidence that would allow HMRC to make the case for
greater customer focus in their processes
•how the customer perspective can be effectively integrated into future planning to
deliver a fair exchange between HMRC and all of its customers.
Whole Thinking beyond a single organisation has the potential to reap further productivity
systems and benefits.
partnership
working Taking a ‘systems-thinking’ approach has already worked across the public sector, for
example in the Disabled Facilities Grant Service at Neath Port Talbot County Borough
Council and Portsmouth City Council’s housing management service. These case studies
can be found in a report into the value of systems-thinking by the Wales Audit Office,
available here:
http://www.wao.gov.uk/assets/englishdocuments/Systems_Thinking_Report_eng.pdf
Building effective local partnerships may contribute to bridging gaps between services.
Advice UK worked with Nottingham City Council to redesign advice services in Nottingham
by identifying demand created by failures in the system and removing processes of no
value to the user. A report on progress can be found at
http://www.adviceuk.org.uk/projects-and-resources/projects/radical/nottinghampilot
Working effectively with trade unions and workplace union representatives can also
encourage more productive working practices and a more engaged workforce. More
information can be sound in the report Reps in Action: how workplaces gain from modern
union representation, available here: http://www.bis.gov.uk/files/file51155.pdf
Principle 5: Enabling productive citizen relationships (1)
The role of A report from the 2020 Public Services Trust and Ipsos Mori, What do people want, need
citizens and expect from public services?, suggests how relationship between citizens and their
services might change in the future. It also suggests there may be some appetite for
citizens playing a more active role in deciding or reviewing the actions of public services.
You can see the report here:
http://clients.squareeye.com/uploads/2020/documents/Report110310%20.pdf
Community Engaging effectively with your local community and tapping into them as a resource means
engagement you’re more likely to be doing the things that they need and want.
This case study, from the Planning Advisory Service (part of the IDeA), looks at the benefits
that came about when a rural authority with a small team engaged its community in
developing a core planning strategy: http://www.pas.gov.uk/pas/core/page.do?pageId=438519
The Innovation Team at the Cabinet Office, alongside the Customer Insight Forum, has
developed a range of resources to help organisations find out what matters to citizens and
engage in successful and innovative service redesign. You can find these tools at:
http://www.cabinetoffice.gov.uk/public_service_reform/innovation/resources.aspx
Principle 5: Enabling productive citizen relationships (2)
Opening up Providing data about your organisation improves transparency and accountability, and
data helps citizens that you serve make more informed choices about their participation.
This is being reflected at national level. The government has launched a single access
point for government data, which currently houses over 3,000 datasets and other
innovations like a ‘where does my money go?’ application. New comparative performance
datasets are being made available enabling citizens to see what is being done well and less
well on a local level. See http://data.gov.uk/
Principle 6: People who are engaged and motivated to be productive (1)
There is much evidence to suggest that highly engaged employees are more productive.
Engagement David MacLeod and Nita Clarke’s report to government, Engaging for Success, sets out
some of the evidence and suggests that high levels of engagement are associated with
better outcomes in the public sector.
http://www.berr.gov.uk/files/file52215.pdf
The joint Cabinet Office / TUC tool, Drive for Change, acknowledges that involving staff and
their representatives in decision making processes is vital. It is a practical guide for
improving services through effective engagement of the workforce and their
representatives. http://www.cabinetoffice.gov.uk/drivechange.aspx
IDeA and the Work Foundation have developed a web resource on employee engagement,
designed to provide practical advice on planning an approach and developing a business
case: http://www.idea.gov.uk/idk/core/page.do?pageId=8407163
The Department for Business, Innovation and Skills has published guidance to help
employers get benefits from employee engagement. It’s designed for the private sector, but
the principles are helpful for any organisation:
http://www.bis.gov.uk/news/features/2010/3/employee-engagement
Dame Carol Black’s review of the health of Britain’s working age population, Working for a
Healthier Tomorrow, suggests that focusing on health and wellbeing can increase
employee motivation and engagement, which in turn helps to drive increases in
productivity:
http://www.workingforhealth.gov.uk/documents/working-for-a-healthier-tomorrow-tagged.pdf
Principle 6: People who are engaged and motivated to be productive (2)
The Health and Safety Executive’s 2004 Stress Management Standards outline six key
Well-being
areas of work design which, if not properly managed, are associated with poor health and
(continued)
well-being: http://www.hse.gov.uk/stress/standards/
NICE’s guidance on Promoting mental well-being at work is a useful resource and suggests
that promoting the mental well-being of employees can yield economic benefits for
organisations: http://www.nice.org.uk/PH22
The Foresight report on mental capital and well-being sets out why it is cost effective for
employers to foster work environments that are conducive to good mental wellbeing, and
suggests some approaches to achieving this (such as flexible working arrangements):
http://www.foresight.gov.uk/OurWork/ActiveProjects/Mental%20Capital/ProjectOutputs.asp
Total A ‘total reward’ approach helps staff to understand the full range of pay and non-pay
Reward benefits associated with their work, and can improve motivation and engagement. As
well as thinking about tangible remuneration such as base pay, bonuses and pensions, a
total reward model also includes tangible and intangible benefits like annual leave,
training, quality of management, promotion prospects and work-life balance.
Effective Using the existing workforce in the most effective way is key to driving productivity. It helps to
use of the concentrate on key tasks and free up time to do the things that are most important.
workforce
The NHS Institute for Innovation and Improvement’s Productive Series helps NHS
organisations to do that. Walsall Hospitals NHS Trust introduced the principles of the
Productive Ward in their maternity unit and found it also released doctors’ time to care by
reducing doctors’ attendance at ward rounds. You can see the case study here:
http://www.institute.nhs.uk/images//documents/Quality_and_value/Productive_Ward/Walsall%20case
%20study%20FINAL.pdf
The IDeA’s productivity framework has some examples of tools and support for skills
Skills development. It includes a case study from West Midlands councils and West Midlands Local
Government Association (WMLGA), who have addressed the costs associated with skills
development by setting up a partnership offering free coaching for staff.
http://www.idea.gov.uk/idk/core/page.do?pageId=11842202
The Public Services Forum report Quality Skills, Quality Services looks at some of the long
term skills issues and priorities of the public sector, and shows that it is vital to maintain
investment in skills during, and coming out of, an economic downturn:
http://www.cabinetoffice.gov.uk/media/211487/quality_skills.pdf A report of progress one year on is
also available on http://cabinetoffice.gov.uk/workforcematters
The Public Services Forum commissioned a study of how these themes can be applied in a
specific sector, adult social care:
http://www.cabinetoffice.gov.uk/media/102175/ADULT_SOCIAL_CARE_REPORT.pdf
The Cabinet Office’s Workforce Reform Team is developing a digest to help employers
understand the skills landscape and sources of funding. It will be available on the Workforce
Matters site: http://www.cabinetoffice.gov.uk/workforcematters
Principle 8: A way of measuring what matters (1)
Measuring productivity in any sector is difficult, but it is significantly harder in the public
Issues and sector. Outcomes are more easily affected by multiple, complex factors, they are more
challenges
likely to be achieved a long time after the related input, and outcomes will differ greatly
from one part of the public sector to another.
However, the Centre for the Measurement of Government Activity (CeMGA) at the ONS
has made concerted efforts at measuring public sector productivity on a national level
and is continuously developing more nuanced indicators for outcomes. Their research is
available here: http://www.ons.gov.uk/about-statistics/ukcemga/index.html
One approach is the ‘maturity model’ to assess capacity for productivity. The Police
Different
approaches Productivity Framework enables forces to identify areas in which working practices might
be improved, and suggests ways to improve in these areas, through a self-assessment
tool which focuses on three domains: leading, organising and developing. This resource
is available at
http://police.homeoffice.gov.uk/publications/human-resources/WftP_Framework_v12835.pdf?vie
w=Binary
,
On a similar level the IDeA has a productivity framework which highlights some key
sources of productivity and provides some concrete good practice case studies so
organisations can learn from the experiences of others. See at
http://www.idea.gov.uk/idk/core/page.do?pageId=11775948. The IDeA supports this with a
system of organisational productivity peer challenges to further drive inter-organisational
support and knowledge transfer. See
http://www.idea.gov.uk/idk/core/page.do?pageId=11767703
Principle 8: A way of measuring what matters (2)
Different Another approach, developed by NHS London, is a productivity dashboard, This looks
approaches at a range of indicators across different clinical settings, including overall activity
(cont) levels, bed utilisation and length of stay, workforce metrics (including costs, absentee
rates and staff satisfaction), and quality, access and finance indicators. You can see
an example of the developing dashboard in the power point slides in this section, but a
developed version will be available later in 2010. Watch the NHS London website at:
http://www.london.nhs.uk/
Measuring One approach that organisations can use is to measure their performance against
specific different elements of a model. An organisation could, for example, develop indicators
elements against the principles in this resource pack. This could help to understand areas of
good practice and areas for development.
Another approach could be to use measures of proxies for productivity to assess and
improve working practices and, by extension, productivity. This could include measuring
single elements such as staff inputs, sickness absence, staff satisfaction and so on, and
comparing against key outcomes such as customer satisfaction or delivery on
performance measures.
There is evidence to suggest that levels of employee well-being can be a useful indicator.
A working paper from NESTA, Innovation and wellbeing, offers some suggestions for
how this can be measured:
http://api.ning.com/files/NjHDmKPq-vBxnapOcW0BSRq3UuoKlHs05TQDeSEWkej2fVrUjoK1iW
YOQTiN57vtgayzqvctvN89c7LZfP6QNA1jKRnj-Qol/62.InnovationandWellbeingMilleretal.pdf
Principle 8: A way of measuring what matters (3)
The audit agencies have developed a voluntary set of a small number of high-level
indicators that capture key aspects of an organisation’s value for money performance in
five core functions of corporate services and allow the identification of best practice
against which organisation’s can benchmark themselves.
http://www.improvementnetwork.gov.uk/imp/core/page.do?pageId=1068404
An EU project is now looking at defining a common set of outcome indicators for clinical
areas. See http://www.euphoric-project.eu/
The Public Service Workforce Reform Team would like to thank all those who contributed
their learning, experience and ideas to this resource pack.
If you have ideas for how it can be developed, please get in touch with us at
[email protected]
Please note that the Cabinet Office is not responsible for the content of external websites.