Thinking big? Involving everyone in saving public money

With the focus of all government departments firmly fixed on cost reduction, managers are looking for the best ways to find savings. Savings can come from making small economies, less duplication and a cost conscious culture.

No one can argue that 2011 is a year of austerity. The CSR is looking for 33% reductions in ‘back office’ and administration expenses so everyone is looking at big changes to be made to meet those challenging targets. We’ve seen it in, for example, the budget cuts, the ’Bonfire of the Quangos’ and the string of announcements of job losses.

Few Senior Civil Servants have experience of delivering with reducing budgets.  The same tried and tested saving methods come in to full swing – stop services, reduce programmes, tighten terms and conditions – all of which cost money in the short term and, often, don’t deliver the projected savings. This results in discontented staff and the public are discontented too.

These ‘big things’ of course, have quite an impact on staff. They feel powerless and uninvolved – simply waiting for the axe to fall and unable to prevent it. Morale plummets, key skills leave and it becomes a terrible place to work.

We think you are missing a trick by just thinking big. The ’big ticket’ changes, driven from the top, have their place but it’s time to make the responsibility for savings to rest on the shoulders of every person in the organisation – we need a money saving culture in the public sector. Making the cost savings a reality also means considering the small things, seeking innovation and getting everyone involved whilst ensuring a 'money saving’ culture and helping people get the skills to do the job. 

The outcome will be motivated staff, fewer reductions in services and listening to organisations which have a real focus on spending money which gives a return that staff and the public believe is value for money.

Creating a cost conscious culture

Staff need to be encouraged to treat public money as their own and be cost conscious in everything they do. In this way, they will identify the ‘little’ savings which mount up when duplicated across government. This requires you, as managers, to break down barriers and slay a few ‘sacred cows’ of process and also to see that the good ideas from your team are shared across government.

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The potential for savings

As staff get into the swing of identifying savings, the potential is huge. Areas of duplication will come to light that can be removed, examples from the private sector will start to find their way in and the disposal of public agencies will save money instead of costing it.

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There is alot that can be achieved by thinking small and the answers are there to be had for the asking – literally. When it comes to spotting the opportunities your people really are your greatest asset.  

To speak to a consultant about how we can help your organisation deliver public services, please contact us now.