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LEAN consultants and the public sector

12/05/08

LEAN consultants and the public sector

Permalink 01:45:13 pm, by Graham Email , 419 words, 452 views   English (UK)
Categories: BLT Recruitment Blog, Management Consultancy Blog

One of the advantages of being a recruiter is having an inside look at what companies believe their market will look like in the coming months and years. The skills and competencies that business seek to develop or extend is a key indicator of the strategy they have going forward. When you’re recruiting for management consultancies that also means getting an insight into what the consultancies think their clients will want into the future.

One of the striking things about my clients in public sector consultancy is their desire for performance improvement specialists. It’s not hard to see why this is the case. Ever since the Gershon Review of 2004-5, increasing efficiency, and therefore saving money, has been top of the government’s agenda for the civil service. Likewise, local government is coming under increasing pressure to make sure that their budgets stretch further and further. How are such efficiencies to be gained? Shared services and outsourcing are both key ways that government bodies have sought to save money but the most recent addition is the application of the LEAN methodology. What is LEAN (here's the wikipedia entry)Well, I’m no expert but as far as I understand it it’s a way of redesigning processes by understanding what the desired outcome is and eliminating any process that does not contribute to that outcome. The result should be processes that provide the customer with what they want at a low cost and high speed. LEAN began, as with most things to do with efficiency, in Japan with the Toyota Production System but it has made its way from manufacturing into financial services and now into the public sector.

Of course, there are questions about whether LEAN can make a successful transition from Japanese car manufacturing to British public services and academics are already starting to produce studies on the issue. However, from my perspective, limited though it may be, it seems that LEAN is set to beat a path through a public sector organization near you. Why? Because so many public sector consultancies are looking for LEAN specialists. That tells me that they must think their public sector clients will want to have LEAN methodology applied to them.

What do you think? Is LEAN just another fad or a shining hope for efficient and responsive public services? Or is it somewhere in between? Are you a LEAN consultant keen to use your skills in the public sector, if so get in touch at gjs@blt.co.uk

PermalinkPermalink     4 comments    

Comments, Pingbacks:

Comment from: Matthew [Visitor] Email
Lean / systems Thinking has been a hot topic on the IDeA forum for the past two years, see http://www.idea.gov.uk/idk/forum/thread-maint.do?topicId=4621241
PermalinkPermalink 16/05/08 @ 16:32
Comment from: Rodney [Visitor] Email
Part of the problem in public sector counsulting is that the culture of those in government is not geared to running efficient businesses. Decisions are frequently made by committees with members who expect neither penalty nor reward from the outcome. In any event decisions are subject to the vagaries of the political climate and may be changed for reasons other than good business practice. Even Hogwarts training is of limited value in such circumstances, let alone LEAN consultancy
PermalinkPermalink 16/05/08 @ 16:58
Comment from: Mark [Visitor] Email
I agree with Rodney. Having worked at one of the old Strategic Health Authorities in a Service Improvement Team, no matter what methodology you used the outcome was nearly always significantly impacted on by politics, frequently changing goal posts and poor leadership. For me LEAN worked on small scale projects but impact on the whole system with sustainable results? I'm not so sure!
PermalinkPermalink 17/05/08 @ 04:07
Comment from: Steve [Visitor] Email · http://www.genba-kanri.com
Building on the above, maybe consider the basics. A starting point for Lean is to understand 'value' is in the eyes of the customer. An automotive client of mine typically polls its customers on potential 'bells and whistles' for new products. Yes, the customer would like all these feature; ... but are they prepared to pay for them? No! Therefore they're not valuable. The trouble is that in the Public Sector, the paying customer’s views are somewhat detached. Which customer actually demanded Ken Livingstone’s Policy Advisers …and placed a value of £120k pa on their services? Which customer demanded MPs generous expenses? Health and Safety officials whose actions inhibit street parties, the hanging of Christmas lights, playing conkers, selling home-baked cakes, etc.
Do you really expect those on the gravy train to want to get off and walk? Like turkeys might vote for Christmas!!
PermalinkPermalink 06/08/08 @ 10:18

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