Change management

8 Ways for Public Sector Organisations to Make Efficiency Savings

Public spending has taken a number of severe hits in the last few years, prompting several phases of efficiency activity. But, after recruitment freezes, restructures and process reviews where should an organisation go next? 

1. Consider how shared services could work for you

Whether this be shared services or a joint management arrangement such as a shared executive.

2. Consider how you can make money rather than just saving money

One council is selling advertising on employee payslips. Another makes money from Google Adsense on its website. Be innovative.

3. Engage employees in the change process

Invite the participation of your employees regardless of level. All too often organisations are engaging mainly middle managers but those that are most familiar with inefficiency of process may be at lower levels. Even if this just means the good old staff suggestions box.

4. Look to your leaders to deliver a narrative which supports the change

Change is difficult at the best of times, leaders who are not driving your vision forward won’t drive your employees forward. Ensure that your leaders deliver a convincing narrative for change (see CIPD Leading Culture Change PDF)

5. Reconsider purchasing options

Organisations in Yorkshire save a great deal through group purchasing with the Yorkshire Purchasing Organisation for instance.

6. Consider lean business models and how these can be applied to your organisation

The service waste model for instance might encourage you to consider unnecessary duplication, delay, movement, communications and inventory processes. Are there unnecessary movements in your processes? Are there duplicate forms? Have payments been reviewed to ensure there are no duplications?

7. Consider how your university can provide consultancy or students to help give a fresh perspective

You could give students vital placement experience, or a case study to consider and respond too. Academic expertise could save a great deal on consultancy too.

8. Learn from organisations in a similar position

Work with business change teams in other organisations and learn from one another – and encourage your managers to do the same. When I talk with the police, fire service or councils that I am working with they are all interested in the same solutions, they all voice the same issues – you will have more in common than you think.

Did you know? “Over 90% of managers in the public sector had been involved in a major organisational restructuring” (http://blogs.lse.ac.uk/politicsandpolicy/archives/35109)

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