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Will David Cameron and the Conservatives cut public spending on management consultants?

14/05/08

Will David Cameron and the Conservatives cut public spending on management consultants?

Permalink 03:51:24 pm, by Graham Email , 443 words, 197 views   English (UK)
Categories: BLT Recruitment Blog, Management Consultancy Blog

Cameron - would the convervatives cut public sector spend on consultancies?

"For the last decade or so, in the name of modernisation, rationalisation and efficiency we have been living under a regime of government by management consultant and policy by PowerPoint,” claimed David Cameron in a speech to the Campaign to Protect Rural England yesterday.

“The result,” he argued “has been an explosion of bureaucracy, cost and irritation, endless upheavals and pointless reorganisations, the elbowing aside of colourful, human, informal relationships based on common sense and trust in favour of the grey, mechanical, joyless mantras of the master planner with his calculations, projections and impact assessments….”

You can read the full story on the BBC here.

I don’t know what Microsoft thought about his dismissal of PowerPoint but I doubt that his words got many consultants in a fluster, because attacks on the use of consultants by government are nothing new (examples here , here and here.) It’s easy to see why the government spending nearly £3bn on the likes of PA, McKinsey or KPMG is less popular than spending it on paying nurses and teachers more money. It’s also easy to see why opposition politicians like David Cameron use management consultancy fees as a stick to beat the government. People find it hard to understand what a consultant does and how it benefits society and often assume they must be a waste of money compared to another teacher or a doctor.

Should we, therefore, expect scathing cutbacks on consultancy budgets if the Conservatives return to power? Should a recruiter of public sector consultants, like me, be searching for other forms of employment in the face of a frugal Tory government?

Perhaps, but I think it’s unlikely. Why? Because the skills that consultancies provide in areas like strategy, performance improvement, change management, outsourcing, etc all have to come from somewhere and hiring consultants is still less expensive than employing someone permanently. Even if an incoming Tory government implements swingeing public sector cuts (though that looks unlikely) consultants will still be needed to advise on where and how the cutbacks should be made. More fundamentally, the use of consultants fits in with the philosophy of an outsourced, efficient public sector that makes use of private sector best practice which has been at the heart of the Conservative approach since the 1988 Next Steps report and has been largely adopted by New Labour.

So, while David Cameron may make political hay out of consultancy fees now it hard to see public sector consultancy fees dropping were he to become Prime Minister. I’m sure though, that the news that PowerPoint is to be banned will bring cheers from more than just the civil service!

Comments, Pingbacks:

Comment from: Michael [Visitor] Email
I think what is interesting with David Cameron's criticism of using consultants in the public sector is, that if he were to come into power and try to remove the use of consultants from the sector there would be a black hole of knowledge within the sector. This would no doubt lead to a skills gap within strategy and public policy review.

Could the public sector really afford to do without consultants? Perhaps but what significant benefits would not using consultants have? Certainly within economic policy the Tory party have little to shout about,they would need every skill set that consultants can bring to the table.

It has been over ten years since the Tory government were in power David Cameron has no substantial experience of running policy within government. He does however spout empty rhetoric from time to time so I find it hard to believe that he can run a government without the experience of sector specific consultants.
PermalinkPermalink 17/05/08 @ 00:05
Comment from: JT [Visitor] Email
I've recently returned to public sector consulting after four years out looking after kids and what stuns me is not so much the extent to which consultants are being used - twas ever thus - but the mistrust which we now experience. I've recently responded to a tender where I was told precisely what I should do, how I should do it and when I should do it. Plenty of room for innovation there, then! Frankly, if David Cameron wants more efficiency he should try to instill some trust. Consultants, like everyone else (schools and teachers, hospitals and doctor, etc) should be judged by outputs and outcomes, not inputs. What we now have isn't a civil service run by management consultants it's a management consultancy run by civil servants!
PermalinkPermalink 17/05/08 @ 08:58

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