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4.3 Best Value, Efficient Government and Relocation
The public sector reform agenda is based on the following key elements:
- user focus and personalisation;
- quality and innovation;
- efficiency;
- joining up; and
- strengthening accountability.
As a Board member, you should champion the public service reform agenda within your body by focusing on three key components of this agenda:
- Best Value;
- Efficient Government; and
- Relocation.
Best Value
As a Board member, you should always bear in mind the need for your public body to continually secure Best Value in the performance of its functions. In a tight financial climate, service improvements may need to be funded from internal efficiencies.
Figure 4.2 Best Value: A Common Framework for Continuous Improvement in Public Services in Scotland
The Scottish Public Finance Manual requires all public bodies to promote the efficient and effective use of staff and other resources in accordance with the principles of Best Value. Furthermore, in those public bodies with Accountable Officers, these officers also have a duty to secure Best Value for their organisation and should put in place appropriate arrangements to do this (see Section 3.4 for further details of the role of Accountable Officers). As a non-executive Board member, you have a key role to play in ensuring that your body and its Accountable Officer complies with the Best Value framework outlined at Figure 4.2. Best Value is about continuous improvement in the performance of the organisation's functions.
The Best Value principles complement good governance standards and offer a sound approach to running a public service organisation. A Best Value organisation should demonstrate that it has appropriate systems in place and that its operations deliver value for money. Best Value is part of Audit Scotland's annual audit of public service organisations and the Auditor General for Scotland will expect to see evidence that a Best Value approach is being taken and results obtained. Guidance on Best Value is available on the Scottish Executive website at www.scotland.gov.uk/Topics/Government/14838/12310
Efficient Government
The present Efficient Government Plan contains five workstreams where work is being taken forward right across the public sector in order to create a more efficient public sector. These are:
- procurement;
- asset management;
- shared support services;
- absence management; and
- streamlining bureaucracy.
Efficient Government is focused on the sound management of resources and ensuring that public bodies continually review their operations to identify opportunities for efficiency improvements. Efficiency improvements are about improving the ratio of resource inputs to outputs and can be made in any area, including the administration and delivery of services and in the procurement of goods and services. By making efficiency savings, more resources are available for re-investing in the delivery of services.
Opportunities for efficiency improvements within your body should be identified as part of the annual corporate and business planning processes and an Efficiency Plan should be drawn up for the body. As a Board member, you should ensure that such opportunities are being identified and that arrangements are in place for measuring, monitoring, and reporting the delivery of efficiency savings to the Board. The annual report should include a statement on how the organisation has performed in delivering their efficiency targets.
Public bodies should also have efficiency performance indicators (such as a range of input:output ratios) that will allow them to routinely monitor the efficiency of their operations.
Relocation
Relocation policy is another policy related to Best Value and Efficient Government. The Relocation Policy covers all sponsored public bodies and is a policy which Ministers will expect compliance on from Boards. The policy aims to disperse public sector jobs from Edinburgh in a cost-effective way that can bring the benefit of government-sponsored jobs to areas of particular social and economic need. Location reviews are triggered by the creation or reorganisation of bodies, as well as by property events (such as lease breaks). Reviews are led by the Relocation Support Team within the Executive, and Ministers will expect Board members to have regard to this policy in decisions they make on the most efficient and effective way of delivering services.
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