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Corporate Services VfM Indicators

Corporate Services VfM Indicators. Howard Thompson Lukasz Bohdan National Audit Office Audit Commission. Outline. Background to the project Philosophy behind the indicators Indicator sets How can the indicators be used Next steps. Background to the project.

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Corporate Services VfM Indicators

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  1. Corporate Services VfM Indicators Howard Thompson Lukasz Bohdan National Audit Office Audit Commission

  2. Outline • Background to the project • Philosophy behind the indicators • Indicator sets • How can the indicators be used • Next steps

  3. Background to the project • Public sector needs to demonstrate VfM, but… • No common set of indicators to measure efficiency and effectiveness of corporate functions • Audit agencies launched a joint project to develop measures for benchmarking the value for money performance of public service providers in the key corporate services functions • Decided to (initially) focus on procurement, finance, human resources, estates management, and information and communications technology • KPMG commissioned to work with the audit agencies on delivering the project

  4. Principles behind the indicator sets • A low burden model • Use of the indicators to be voluntary • Small number of high level indicators (but the ability to drill down deeper) • Identify best practices against which organisations can benchmark themselves • Focus on outcomes (both efficiency and effectiveness)

  5. Methodology • Initial consultation (over 70 stakeholders) • Literature research (for example on existing indicators) • Development of initial proposals discussed at functional workshops and wider consultation • Revised proposed indicator sets piloted at 24 organisations across the public sector • Feedback in writing and at evaluation workshops • Consultation with central government Heads of Profession on final indicator set

  6. Indicator sets • Sets of indicators have been developed for the following 5 areas: • HR • Finance • ICT • Procurement • Estates • Each set is divided into primary (Board level) and secondary (functional level) indicators

  7. How can the indicators be used • Not compulsory to use indicators, but… • … you are encouraged to benchmark internally and externally • Audit agencies do not collate data for these PIs • Third part providers interested in offering benchmarking service (e.g. CIPFA/KMPG, PwC/Saratoga, SOCITM, Purchasing Index Ltd., HR Benchmarker)

  8. Next steps • Audit agencies meeting to discuss future governance of the project, managing the contractors and future development of the indicators • You are invited to provide comments on the indicators • You are encouraged to use the indicators to benchmark internally and externally

  9. Any questions? Howard Thompson Cross-Government and Efficiency Practice National Audit Office 0207 798 7582 Howard.THOMPSON@nao.gsi.gov.uk Lukasz Bohdan Senior Strategy Advisor Audit Commission 0844 798 8725 l-bohdan@audit-commission.gov.uk Q & A

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