In response to the UK government’s plans for long-term prosperity, CIMA, in a new report, set out a seven-step action plan designed to “stimulate thinking on how to accelerate the strategic delivery capabilities” of government, a news release said.
Comprehensive and effective implementation of the government’s plans requires strategic vision, the release said. “For effective government, the adoption of an integrated government business model, focusing on purpose, governance, strategy, performance, measurement, transparency, and people is essential.”
Accountability and transparency are critical ingredients for public trust, the report said. By rewiring central government to become an organisation built on data and integrated thinking, the government can make better decisions that build trust in leadership.
The report was based on insights from senior business leaders in the UK to improve the delivery and results of government initiatives.
Andrew Harding, FCMA, CGMA, chief executive–Management Accounting at AICPA & CIMA, together as the Association of International Certified Professional Accountants, said in the release that business leaders are well positioned to advise on better decision-making in government.
The report relays seven business insights to accelerate the delivery capabilities of the UK government:
Allow strategy to inform development. The government should translate its mission statements into defined and well-resourced multi-year business plans, the release said, identifying key accountabilities and outcomes for short-term, medium-term, and long-term periods.
Establish a strategy and reporting function. This will help to “support the strategy development and its delivery and provide management information to drive integrated and data-led decision-making at Cabinet and Missions Board level”.
Clarify and address governance. Governance frameworks should have a well-defined structure of responsibility and accountability for strategic decision-making and delivery. Effective measures also include further collaboration with the boards, experienced and independent nonexecutives, and a new Mission Steering Group.
Reflect on fiscal rules. Consider the benefits of borrowing to invest in projects that deliver long-term growth opportunities through a multi-year investment outlook to differentiate between capital expenditure and operating expenditure for all public finances, including separate control mechanisms, the report said.
Use data to assess and calculate risks. Assessing and defining the risk appetite for each strategic delivery and building in acceptable levels of tolerance and failure can be calculated and widely communicated through data, to encourage and incentivise innovation, the report said.
Develop leadership and skills. Better government leadership should focus on talent development, performance management, and delivery excellence, the report said, enabling leaders to recognise and promote those with a track record of delivering projects and aligning incentives around the missions, as well as business-as-usual activities.
Make better decisions. Improving decision-making by using high-quality data and prioritising transparency will allow the government to take decisions on an integrated basis.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.