Events

Date: 31/12/2011

The 10th Annual North-South Conference was held on 14–15 April 2011. There were 32 participants at the conference, of whom a small number came from the NI Chief Executives Forum.

The conference, which was opened by Mr Brendan Howlin T.D., Minister for Public Expenditure and Reform, focused on re-energising and developing a mindset that looks for opportunities and remains open to new ideas and the buzz that comes with them, even in adverse times. The conference aspiration was to learn lessons from both the public and the private sector, and speakers were drawn from both sectors North and South of the border. All speakers been involved in challenging commercial and public sector  environments, dealing with many of the budget and service issues faced today.

The papers and contributions are summarised below.

Conference Speakers

Opening Address: Brendan Howlin T.D,  Minister for Public Expenditure & Reform

Minister Brendan Howlin T.D. was appointed for Minister for Public Expenditure & Reform in March 2011, and the Association was fortunate to hear his views so early in his tenure.

Minister Howlin elaborated on the new Government’s vision of public service which is underpinned by a belief in the fundamental importance of public services to our society and to our economy, and of the intrinsic value of public service.

He pointed out that the backdrop to this reform agenda is the most serious economic crisis our country has ever faced and our society faces many challenges. Even in the good times, tackling these problems was going to be challenging, but in these difficult times, tackling them is going to be imperative.

In his view, CEOs of State agencies will not be exempt from scrutiny.  The proposed comprehensive Spending Review, as described, would examine the arguments for having stand-alone agencies, separate to Government. While the Minister agreed that there are perfectly good reasons for the establishment of a State agency at arm’s length from government, the problem in recent years in his opinion was the proliferation of agencies, which resulted in Government departments losing power over their core missions, including the power to wind up programmes that had served their purpose.

In conclusion the Minister set out his reform agenda:

·        To work on integration of public service organisations, so that services are designed around the practical needs of the citizen.

·        To ensure that services are better directed to target groups and better management of information and payments.

·        To empower those who work in the public service to take initiatives; to manage risk; to solve problems; and to be innovative.

·        To focus on performance and accountability in a way that is meaningful; that is transparent; and that starts at the top.

The overarching objective, he stated, is to come out of this crisis with a reformed, slimmed-down government, whose success is not measured by its reach, but by its results.

In closing, Minister Howlin offered the Association an opportunity to contribute to his deliberations on public sector reform during his early months in office – an offer which was subsequently taken on board.

His paper to the conference can be downloaded here.

Response – Patricia Byron – Chairperson, ACESA

In her response, Patricia Byron acknowledged that we do not exist in isolation and that public sector reform is a matter for everyone – public servants, politicians and citizens.   Of course ACESA is aware of the criticism of agencies, but it must be remembered that agencies have enabled critical functions to act more commercially, independent of politics and unencumbered by some civil inflexible service practices and bureaucracy.

Speaking on behalf of members, Ms Byron affirmed that there is an appetite to address the weaknesses which tarnish a sector that, though far from perfect, makes a significant contribution to the economy and to society as a whole – although as service providers we are all aware that seizing opportunities in challenging times requires change.

Reform is necessary: contraction of non commercial state agencies cannot follow the ad hoc path of their growth since 1990, during which time 60% of national agencies were established. However as we pursue the path of reform we need to decide whether our focus is on ‘across the board’ cost or service cuts, or upon delivering sustainable savings and benefits for consumers, the economy and society as a whole.

The Chairperson stressed that the new programme for Government is encouraging in so many respects.  Its commitment to public sector reform offers substantial opportunity – as well as challenge.

Agencies are already contributing to saving, and avoiding costs, and that is set to continue.  But the CEOs at the conference had their own hopes for the reform process, to include:

·        the early introduction of multi annual budgeting

·        a fully functional reporting structure which dispenses with micro management

·        empowerment to manage staff, to hire, to performance manage and work within agreed budgetary frameworks

They would welcome an intelligent, innovative application of the Croke Park agreement to the agency sector, including cross-functional implementation frameworks to progress, for example, shared services, in a defined timeline with distinct outputs.

This new approach requires courage and leadership from state agencies –but the possibilities and the benefits are enormous. It must not be forgotten that agency CEOs are critical to the success of any change programme. They have the skills, the creativity and the will to effect change, and the Chairperson respectfully suggested that they need to be at the table.

Patricia’s paper to the conference can be downloaded here and her PowerPoint presentation here .

Mr John Hunter, OBE, Chair, Chief Executives Forum

Mr Hunter congratulated the Association on an excellent conference and an excellent array of speakers to stimulate and encourage the audience. Hs shared his sense that the conference came at an opportune time in the Republic, as chief executives of state agencies face an uncertain and challenging future. The conference could provide a measure of reassurance that a way through the manifold problems of the fiscal deficit will be found.

Mr Hunter very much welcomed the opportunity to hear from and engage with Minister Howlin, remarking that he seemed open to constructive suggestions, although very determined to make early progress on a budget reduction programme.

Speaking on behalf of the Chief Executive’s Forum Mr Hunter expressed an interest in keeping in touch with progress over the next year and offered any assistance they could provide.  Finally he expressed his pleasure at once again meeting colleagues from across the border.

Sean O’Driscoll – Let’s Help Create the Future – the private sector approach to turning companies around

Sean O’Driscoll has been Chairman and Chief Executive of the GlenDimplex Group since 1998. Formerly a Partner in KPMG, he joined GlenDimplex as Group Finance Director in 1990 and was appointed Deputy Chief Executive in 1994. He was awarded an Honorary OBE in 2006 for his contribution to British industry.

“Let’s help create the Future” was a thought provoking session which provided great insight on how to survive in business today and in the future. Mr O’Driscoll is a very clear thinker and got his points across very concisely.  Participants commented that the ‘blueprint’ document should be mandatory reading for Government

Mr O’Driscoll did not provide a written paper but referred us to the ‘blueprint’ document of which he is a joint author and this is available on the ACESA website – download here

Eddie Molloy – Plan or be planned for – focus on public sector change

Eddie Molloy is a consultant in strategy and large-scale change. He is Director of Advanced Organisation and Management Development Ltd. He has worked with numerous government departments, including the Department of the Taoiseach, the Department of Public Enterprise and the Revenue Commissioners. He has also worked with companies such as Diageo, and with IDA Ireland and Dublin City University.

“Plan or be planned for – focus on public sector change” provided participants with insightful tools that they could use effectively to support the changes ahead. Mr Molloy gave very concrete examples of how Public Services work and how they ought to work. He also provided a checklist on readiness of senior teams for change.  Members learned a lot from this session which was relevant, and “on the money”.  His paper to the conference can be downloaded here. He also provided a checklist on readiness of senior teams for change which you can download here.

William McKee – Happiness in Hard Times

Latterly of Belfast Health and Social Care Trust, William McKee has extensive experience working in health service management in Northern Ireland. He worked in several hospitals before being appointed Group Administrator and the first General Manager of the Royal Hospitals Group in the late 1980s. He was appointed Chief Executive of the Group in 1992 and became Chief Executive of the new Belfast Trust in 2006. He was awarded a CBE for services to the health service in Northern Ireland in the New Year’s Honours in 2006 and is now a member of the Board of Tallaght Hospital both offering strategic advice and acting in a mentoring role. His paper to the conference is available on the ACESA website.-

His session, “Happiness in Hard Times” provided good practical examples of how to manage when conditions are less than optimal. To begin with he presented the old adage “Never waste a good crisis”, pointing out that in times of crisis, assumptions are challenged, the tyranny of habit is questioned and energy is liberated which, if it can be harnessed, can be used constructively to address chronic and deep seated problems. His advice to leaders in hard times was to build trust, use the staff development and performance review mechanisms effectively and make sure training and development has added purpose. It’s important not to forget the wider social responsibility role and to remember that doing many projects to a “satisficing” standard is better than doing fewer projects at an “optimising” standard.

Mr McKee emphasised that as a society we do need to embrace and know our purpose. Participants working in the health care area commented that the prevailing business model needs adapting in this environment and that Mr McKee’s experience clearly demonstrated he understood this.

His paper to the conference can be downloaded here.

Ronnie Geddis, Director, Consilium Technologies – Strategic Investment in our Shared Future

Ronnie Geddis joined Consilium Technologies in 1986 as a programmer and soon became one of their senior software developers. Consilium provides solutions that revolutionise efficiency for Local Government and Housing Associations. Knowing the products inside out, as it were, he was ideally suited to move into a sales role in the early 1990s. Having secured more business from throughout the UK, he became Sales Manager. He joined the Board in 1997 when he was appointed Sales Director. Ronnie is also a Chartered Director.

His case study, “Strategic Investment in our Shared Future” described how one Northern Ireland company has handled the economic downturn.  His thesis was that recession does not necessarily drag your business down (it will if you let it) but it did make this particular company reflect and ask some tough questions, allowing them to focus and become more efficient. They evolved various strategy strands (such as investing in the future; focusing on mobile solutions; continuing in the public sector; extending their existing markets; establishing strategic partnerships and going global) which seem to have revitalised the business and returned it to profitability.

This conference paper can be emailed on request (contact secretariat@acesa.ie).

Jim Costello – Shared services as a Smart Strategy – the shared services industry and In/Out House options both in ROI and UK.

Jim Costello has worked with SouthWestern since 2003. Previously he spent 15 years in the Information Technology and Outsourcing Sectors in Ireland and internationally. In the Outsourcing and IT sector, he was Finance Director for Unisys Corporation in Europe, General Manager of Managed Services in France and Global Managing Director of the Unisys/Dell Managed Services Alliance, a $120m Managed Services business. He joined SouthWestern as the company moved from IT processing in Department of Agriculture into a full Business Process Outsourcing company.

In presenting “Shared services as a Smart Strategy” Mr Costello outlined the history of shared services both in Ireland and abroad and described the industry from both perspectives.  In his view there is plenty of opportunity for collaboration (what he referred to as the ‘secret sauce’) and the rewards are high in terms of guaranteed service levels; efficient service to the citizen. The approach is low risk, has a proven methodology, is flexible & scalable and comes at a lower cost.

We will email you this conference paper on request (secretariat@acesa.ie).

Conference Conclusion

With their respective economies in the balance and cuts in public expenditure and budgets to contend with, these are challenging times for chief executives on both sides of the border. While u it would easy for chief executives to retreat behind the barriers, the experience is likely to prove a debilitating one. But, even in adversity there are other ways of looking at options to be explored. Modalities will change out of necessity but even in these lean times there will be opportunities to seize the initiative and try new things.

What participants thought of the Conference

·        As a ‘northerner’ I found it fascinating to see how colleagues are addressing the same issues we face.

·        As always, a very good and thought provoking conference, good links made with other CEO’s

·        Always a helpful forum and I like that I feel I can also contribute to some ideas of other colleagues issues.

·        Good all round networking opportunities.

·        I thought it was very relevant and focused on where we are now.

·        Well done on an excellent conference

·        It was the best conference I have attended since joining ACESA. Maybe it is the times we now find ourselves in, but there was such energy and knowledge at this conference. I hope Minister Howlin went away knowing he has a great resource at his finger tips.