Image source: NAO
Government faces a vast challenge in achieving digital transformation but is showing it can be done, according to the head of the National Audit Office (NAO).
Gareth Davies explained his perspective in a speech to Parliament yesterday, in which he outlined a blueprint for obtaining value for money in public services.
This has come in response to government’s tough financial challenges created by the rising demand for services as the number of old people increases, the poor state of parts of national infrastructure, high inflation and a struggle to retain staff.
Davies said this is reflected in many public sector IT systems being out-of-date and undermining the efficient working of government, as well as increasing the vulnerability to cyber attacks.
This is making digital transformation one of the priorities for government. He said the technology already exists and praised the Central Digital and Data Office in leading the work; but emphasised there is more to be done.
Replace systems
“This work must replace antiquated IT systems, improve the quality and shareability of data, and recruit and retain scarce skills in high demand across the economy,” he said. “The challenge is vast. In 2020 Defra estimated that it would need to spend more than three quarters of its digital budget on addressing legacy system issues.
“The MoD is in part reliant on kit dating back to the Cold War for its defence inventory management.
“But there is good news. Parts of government are showing that it can be done.”
As an example, he pointed to the work of the Passport Office in improving its customer contacts and building capacity to clear the backlog of passport applications caused by the Covid-19 restrictions. This has improved the customer experience and enabled the agency to save money.
He added: “The potential efficiency gains in those services dependent on high volumes of data processing are enormous, with fewer, better paid civil servants delivering more modern and responsive public services, and wasting less of their customers’ time.”
Other opportunities
Davies said that digital transformation is one of five areas of financial opportunity for government, the others being in major infrastructure projects, asset management, procurement and reducing fraud and error.
Significant savings are at stake in each of these, and there is a need to improve productivity, with one of the big enablers being better data.
“Consistent standards and definitions, along with a greater a focus on quality, are essential if citizens are to see service levels rise and costs fall,” he said. “Without it, government ambitions on artificial intelligence will not be realised, as poor data means arriving at wrong answers, only faster.
“Secondly, innovation and evaluation – which itself relies on good quality data. In our work we see plenty of innovative thinking from teams across government who spot the need for operational improvements. Creating an environment where this is encouraged, tested, evaluated and scaled up is proving more challenging.”
Planning and spending
He also said there is room for improvement in the planning and spending framework, which needs to address personal and organisational incentives for high performance on efficiency.
“Each of these enablers must be underpinned by a stronger focus on leadership and delivery skills,” he said. “Whenever we look at a project or service, the best predictor of success is the quality of leadership and management. Crucially, the right skills for the job.”
He concluded that: “It will take a disciplined, focused, cross-government approach over several years to fully realise the potential, and make the exceptional the norm.”
