Not my words – this is the description given by none other than Francis Maude, the Paymaster General – see this article in the Telegraph
This ties in with the Green Report that highlighted the inefficiencies across Government.
Although it is pleasing to see that Government has last started to realise that there is an alternative to front line cuts, I do question how they will bring real innovation from the private sector and indeed from the SME’s within the private sector to make real change.
The big opportunity for the Government and the country as a whole is to accept that change is required (i think that we are getting there on this point), understand that there are alternative approaches available other than from the big 4/5 ‘consultancies/ outsourcing’ firms (that have been getting fat on the profits that they taken from the public purse over the last few years) and engage with the smaller, more nimble new entrants to the market that bring in all of the innovation.
Only time will tell whether this opportunity is taken or wasted!
Serco have hit the headlines this week after their FD sent a letter to their supply chain asking for a 2.5% rebate on work carried out this year on Government contracts. This was their reaction to the decision by the Government to look to their main suppliers to share the load on spending cuts.
Although this doesn’t come as a surprise as it is the kind of thing that Procurement has done time after time – lets go and hit the suppliers over the head and squeeze a little more out of them has been the typical mantra.
So what is the alternative?
The xynegie approach is one that focuses upon collaborating with your supply chain and working with them to introduce innovation to your operations. This results in cost reductions, optimised operations and improved service delivery.
Download our latest white paper to see how this can work in practice.