THE PUBLIC SECTOR CANNOT BE EFFICIENT
In the Daily Telegraph of 17th March, Philip Johnston lays into Government waste, referring at length to a forthcoming book by John Seddon “Systems Thinking in the Public Sector” which apparently argues that the massive waste is not deliberate; it arises “because it has failed to listen to people who know how to run services on behalf of the customer rather than the producer”.
Thus:
“public services have requirements placed upon them by a whole series of bodies that are all based on opinion rather than knowledge”.
Mr Seddon is not enamoured of “local engagement” or “citizens juries” (Three cheers!). He argues that:
“what people want from public services is for them to work properly…… waste can be eradicate if the systems are properly designed against demand rather than phoney outcomes”.
Mr Seddon is an occupational psychologist and “management thinker”. Good luck to you and your book, Mr Seddon, but quite frankly this all seems very much beside the point. In fact it seems very similar to the proposals of Michael Barber, a partner in the management consultants McKinsey & Co., and a former head of Tony Blair’s “delivery unit” – see Chapter 12 (Prolific Crap) of my book.
These people have to earn a living, but I am surprised that Philip Johnston doesn’t ask two simple questions: How does one design against “demand” if you don’t know what the demand is? And how does one decide on what aspects of life and civilisation should be in The Public Sector? After all, there is no problem with “demand” in markets; satisfy it or go bust.
How, for example, would one “design against demand” in assessing the merits of single-sex hospital wards referred to in my previous entry (February 27th). Outside the public sector – private hospitals for example – it’s easy – suck it and see.
What kind of “knowledge” is it that censors the most wonderful information system available to humanity – the signals given by market prices?
What other “knowledge” tells NICE how to assess the value of expensive drugs – or to say “yes” in Scotland but “no” in England? Or to advise Ed Balls on class sizes? Or on the acceptable number of children who don’t get into their first choice school? What are the acceptable losses in a rural school or post-office? What is a sensible cost for roads – or flood defences? It looks awfully like “back to the producers” to me.
Come on Philip. Wait, my apologies! I’ve just thought of something. No doubt this is the first of a two part article, with the obvious questions to come next time round? Isn’t it?
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