George Osborne’s autumn statement appears to be is a sophisticated package; written to maximise advantage to the Conservatives with a strong ideological undertow, but also containing a popular top line policy – on stamp duty – that has already commanded cross-party support.
Although, along with just about every other commentator, I don’t think the Chancellor can actually deliver the targets of spending reduction he published yesterday, the statement confirms what we already knew: unless we start very soon to see a substantial fiscal dividend from economic growth, public services face many more years of trying to meet growing demands and rising expectations with frozen or falling budgets. Indeed the statement adds an extra year to the austerity horizon meaning major cuts will still be being implemented in the immediate run up to the election after next. Bu already, for local services in particular, the fat has long gone, the flesh has been sliced and the vital organs are starting to fail.
Mr Osborne’s unwillingness to recognise this or to accept any responsibility for how his strategy will impact on public servants and citizens is an abnegation of his responsibility as a public servant, albeit one that will be echoed by other political leaders with no desire to disturb voters with difficult truths. The survival of the public domain relies on a further significant shift of responsibility from the state to the citizen. Political expediency and the failure of the Big Society means no national leader will be inclined to ‘fess up to that before next May. If we need a different order of public leadership in these challenging times we will have to focus elsewhere.
Over recent days I have looked at public service reform from a bewildering number of angles. I attended the first national conference for the Government-funded ‘What works centres‘. I chaired a Parliamentary roundtable event on design for policy. I also chaired the launch of the Public Service Transformation Challenge Panel report, sponsored by DCLG.
On top of this I was MC of an event to publish the final report of Islington Employment Commission and the keynote speaker at the launch of the Croydon Fairness Commission. Finally, I chaired the second in our series of seminars held in conjunction with the global education services provider Pearson to discuss the idea of efficacy, this time in the context of school improvement.
Normally this would provide material for several blog posts. For while there was value in all these initiatives I have misgivings about each. The general approach of the What Works centres is overly technocratic (which is perhaps inevitable) and lacking a convincing model of change (which is less excusable).
The design for policy approach is fascinating and progressive but can feel overblown given the paucity of powerful examples of impact at scale and that, on closer inspection, design for policy isn’t all that different from the best examples of traditional policy making.
The recommendations of the Public Service Transformation Panel were hard to dispute but the report didn’t really get to grips with why implementing them seems so hard and, anyway, the idea of ‘transformation’ is surely a misnomer for a set of practices – a focus on citizens and more effective inter agency collaboration, for example – which need to be seen not as one-off changes but as a continuous discipline.
It is heartening that local authorities like Islington and Croydon are looking to provide a broader convening role focussed around the needs of citizens. However, in practice (and it is too early to speak for Croydon) I find that councils have rarely thought deeply enough about how to provide a qualitatively different kind of leadership, one that is based on influence and generosity, not control.
And while I continue to be impressed by Pearson’s commitment to ensuring that their products and services improve people’s lives through learning, it is clear that efficacy is a more powerful tool for asking questions than providing definitive answers. (Indeed, Pearson’s growing awareness that efficacy is not about imposing a single ‘one best way’ perspective on complex challenges contrasts with the rather reductive world view of the What Works initiatives.)
As I rushed from initiative to initiative the sense that something fundamental is lacking in them all grew and grew. The length of time since my last post is witness to my inability to put my finger on what that something is. Now I think I may have found it. My colleague Anthony Painter (who leads the RSA’s growing portfolio of work on institutional reform) directed me to a new paper published by the Stanford Social Innovation Review. ‘The Dawn of System Leadership’ is by the impressive team of Peter Senge (recently interviewed in the RSA Journal), Hal Hamilton and John Kania.
The article helped me identify that missing ingredient. In short, the need for a different order of leadership, something to which reformers often pay lip service but which I see little sign of being fully appreciated. There are two contrasting problems with a focus on leadership: first is that it reinforces a hierarchical model of change, second that ‘leadership’ is a proxy for an ill-defined bundle of virtues – commitment, wisdom, authority. The value of the Stanford Review paper is that it provides a compelling and concrete account of the components of the kind of leadership needed to solve tough problems; problems like reforming public services in a context of shrinking budgets and rising demands.
Senge et al identify three core capabilities:
• The ability to see the larger system
• An ability to foster reflection and more generative conversation
• A capacity to shift the conversation from reactive problem solving to co-creating the future.
Exhorting a new paradigm is all very well but why might we hope for new leadership? Through their own experience and the many case studies they cite the Stanford authors argue that the hunger for system leadership and the human capacity to provide such leadership is growing. This perspective chimes with the progressive human development theories of figures like Robert Kegan and Ken Wilbur.
The problem is not our receptivity or capacity: it is the organisational forms and norms that put huge barriers in the way of system leadership and, more profoundly, blind us even to its possibility.
Senge et al summarise their argument in one sentence:
The deep changes necessary to accelerate progress against society’s most intractable problems require a unique type of leader – the system leader, a person who catalyses collective leadership.
Although this insight is negatively articulated in the ever growing disdain of citizens towards the political establishment I don’t expect it to be acknowledged anytime soon in the actions and rhetoric of national politics. Yet, without system leadership in our services and localities the next few years will see the public domain hollowed out ever further.
Of the many unflattering comments I received on school reports one of the most memorable was: ‘O Levels are for the mediocre and accordingly he passed’. An echoing phrase came to mind when listening to the coverage of yesterday’s by-election: ‘politics is for those seeking to recreate the past, accordingly UKIP won’.
As regular readers will know, the RSA has a new worldview (if you like pictures here’s the animated version). We call it the Power to Create and it is necessary for my argument to recap its main points.
…..Today we have unprecedented opportunity to fulfil the ideal of every citizen living a creative life. This is possible because citizens are becoming better educated and more cosmopolitan and because they increasingly aspire to greater autonomy and self- expression. It is possible also because public, private and civic organisations are beginning to understand that their survival and success depends on tapping into the creativity of citizens, clients and customers. Both of these processes are hugely facilitated by technology, particularly the social web; the greatest accelerator of mass human creativity in world history.
But there are barriers too: Inequality and elitism which deny people the tools of autonomy, meaning and creativity – basic financial assets, data and intellectual property, social networks; the logic of educational institutions and hierarchical organisations which too often treat creativity as the exclusive domain of the few; and a politico-technocratic model which sees citizens as the objects not the subjects of social change.
I try to talk about the Power to Create in any speech I give. While I find it goes down pretty well with young people and the open minded, progressive folk who make up the RSA Fellowship I observe another response when I am speaking to politicians or those who work for them in local or national government.
Whether or not they agree they don’t see the RSA’s analysis as relevant. This may be partly because the critique of hierarchical organisations and traditional policy making is too radical, but there is a stronger source of resistance: Our political class and those who serve them have largely given up talking about the future.
As a former Labour representative and official I find this particularly depressing. Whenever Labour wins power – 1945, 1964, 1997 – it is in part because it has articulated a story of the possibilities ahead. It has described an exciting future and has successfully argued that social democratic values and methods are best placed to seize the opportunities (and address the threats) of that future. Yet today’s Labour Party seems remarkably incurious and unenthusiastic about the 21st century and the deep trends in technology and in human capability and aspiration that could define that century. Tellingly, the most developed critique of Miliband’s direction comes not from future gazers but in the nostalgic nostrums of ‘blue Labour’. (The craven abandonment of progressivism by mainstream and reforming Conservatives is powerfully condemned by Philip Collins in today’s Times).
This is not an argument for blind optimism. From Vladimir Putin to antibiotic resistance, from climate change to the polarising tendencies of financial capitalism, there are many things to worry about, many things we need strong leadership to help us tackle. But you don’t inspire a team only by talking about the fear of defeat. It is through painting a vivid picture of possibility that we gird people’s loins for the hard choices necessary to make that future possible.
As any strategist worth her salt knows, the most important skill in politics is defining the battleground. Most people are uninterested and unaware of policy – except when it goes badly wrong. What matters much more is who defines the problem and thus steals a march in claiming to have the solution. But if the problem is defined as the modern world the winners are those who seem most determined to abandon it.
While politicians are often rather vague about technology and out of touch with the young, I have never known a political class so uninterested in the medium term future as the current crop. Sure, politicians occasionally visit silicon roundabout and genuflect to the billionaire internet whizz kids, but this is tourism not proper exploration or analysis.
And so politics, rather than a fight for that future, is fought on a different terrain – a battle to recreate the past, a past moreover that never really existed.
Who knows how successful UKIP will be in the next election, but if politics continues to descend into a nostalgia competition all bets, indeed, are off.
Better integrating services around citizens needs is a no brainer. So why is it so difficult?
The five year NHS plan, unveiled last week by my former Downing Street colleague Simon Stevens, has been widely and justly praised. The plan is based on robust arguments and contains many good ideas but, for me, its greatest strength lies in method: Rather than proposing a new national structure, or getting too involved in the detail of policy, it advocates a number of ways to achieve better integration of primary, acute and community care. Local health commissioners and providers are encouraged to consider which model best suits their circumstances while NHS England will focus on providing advice, insight and support for local reform. This enabling, decentralising framework is very welcome and one can only hope that other parts of Whitehall will emulate it.
But I have a major reservation. A key theme of the report is care integration; vertical, horizontal or both. This echoes a recurrent theme in debate not just in health reform but across the public sector. In 1997, for example, Labour said its top priority for Whitehall reform was to produce joined up government. Geoff Mulgan who was given the task of promoting more integrated working has described the rapid and profound disillusionment among civil servants as they saw the behaviour of Labour cabinet members continuously undermine the principles of joining up.
When something has been advocated so often and for so long, yet seems so hard to achieve in practice, we need to ask why.
The case for integration sometimes starts on shaky conceptual grounds. A truly comprehensive Whitehall approach to a major policy goal – like child poverty for example – would involve most major domestic policy departments. But while for some, such as DWP or Education, it would be a key priority, for others, such as the Ministry of Justice or DCLG, it would inevitably be more peripheral. In a complex system full integration of all factors affecting an outcome is virtually impossible. The NHS plan makes the case for health and social care services working better together but says relatively little about areas like housing and employment which are arguably just as important to public health and community resilience.
Just as full integration is impossible at a system level, it is also unlikely at an organisational level. Advocates of integrated solutions are often guilty of the merger illusion, namely that putting functions together in the same organisation is sufficient to make sectionalism subside. But as anyone who works in a large organisation will attest, the fact that managers share the same employer and use the same front door is pretty much irrelevant to whether they put corporate, customer-focussed interests above departmental, producerist ones. Team size is more important than organisational label, which is why some organisational theorists argue that the most productive and creative model of organisations is always to devolve to cross cutting units of around ten to twenty people. Strong integrated, outcome-focussed teams are needed to overcome the natural pull of professional loyalty and hierarchical incentives.
Indeed the three powers framework I advocated in my annual lecture two years ago (itself derived from cultural theory) provides a good basic checklist: Individual incentives, team loyalty and values, and hierarchical authority must all reinforce a shift to integrated working. Often the call from integration comes from the top while individual incentives and day to day loyalties continue to be oriented around functional specialisms.
A shared mission, robust systems and aligned incentives are all vital to the success of integrated models but there is also an important psychological and interpersonal dimension.
I have been working recently with a London local authority trying to join up employment services. Facilitating the meetings, I have been struck by the importance to the process of openness and generosity. In the last event I used the simple device of asking people in the room directly to request help from someone else. Eventually a manager from an agency focussed on employment told a local authority officer that the council’s welfare rights team often helped people increase their benefit entitlement while reducing incentives to work; ‘I know this is their job’ she said; ‘but given how bad long term unemployment is for people, shouldn’t they be focussing more on showing clients how they could be better off in work?’. The local authority officer was impressed and promised there and then that the welfare team would be given a much stronger employability mandate. From this point of discussion, it became easier for people to open up, talk about how they needed help and to start to offer help to others. Yet still I had to confront one senior manager who seemed to find it impossible – despite the evidence – to admit her service was anything but perfect.
Ironically, a problem with the call for integration may be precisely that it sounds so much like common sense. This leads decision makers and managers to underestimate the major and inherent barriers. A failure to perceive and act holistically is a very human flaw as is the tendency to act tribally and respond to immediate incentives.
Organisational reform may be a necessary condition for integration but, without attending to the psychological and cultural dimensions of what is an inherently challenging human process, such reform will not succeed in putting the joined up needs of citizens first.
Today sees the second report of the Social Integration Commission, which I chair. It has been published on the same day as the 2014 State of the Nation report of the Social Mobility Commission and there are important overlaps between the reports: Inequality and segregation go together and fuel each other…….
The Social Integration Commission’s first report – which received extensive coverage earlier this year – revealed the degree of poor integration which persists alongside the growing diversity of the British population. We highlighted that a lack of integration is an issue for all groups. White Britons are as likely to have unrepresentative social networks as people from other ethnic backgrounds, and Londoners’ networks are amongst the furthest away from reflecting the make-up of the communities in which they live.
We also found that one of the most significant areas of poor integration is between people from different social classes. This lack of integration has important and worrying implications for cohesion and economic inclusion.
It is poignant that the Commission’s second report is published on the same day as Alan Milburn’s damning assessment of the UK’s faltering anti-poverty strategy. Our willingness to tolerate poverty and the diminished life chances of poorer citizens is surely not unrelated to the lack of interaction and friendship between our social elite and the disadvantaged. Indeed there is international evidence that inequality levels and mean policies towards the poor go hand in hand with levels of prejudice. The more we think of the disadvantaged as different people to ourselves the less sympathy we have for them and the less support we are liable to give to measures to tackle exclusion.
Milburn’s report makes a number of powerful recommendations, but as I pointed out in my 2011 annual lecture the philosophical and political arguments for greater social justice need to be underpinned by a culture of empathy for those different to ourselves.
Today’s Social Integration Commission’s report provides evidence of the consequences and costs of poor integration for individuals and society. The figures we give in relation to employment, recruitment and career progression, and community health and well-being are estimates; however, using the most robust methodology available and erring on the side of caution, the evidence suggests an overall financial cost to the UK of approximately 0.5 per cent of GDP.
Equally importantly, the report contains important new research showing that people gain from better integration and that the small steps taken to help people mix lead to significant benefits in the future.
UK society is a tolerant society that has coped pretty well with some of the potential tensions of increasing diversity; despite some of headlines we have garnered this morning, it is not the Commission’s intention to spread doom and gloom or to be alarmist. I would summarise our argument as follows: tolerance is not enough, but it need not be hard to do more. Exactly what that ‘do more’ might involve will be the focus of our final report.
Our final recommendations will focus not only, or even mainly, on the role of government but on the things that other sectors, agencies, communities and individuals can do to make sure that the UK’s trajectory towards better integration more closely matches its trajectory towards greater diversity.
In all these debates we should ask what we can do ourselves. Of course, a great deal of the RSA’s research and development seeks to address aspects on social justice, but as CEO of an organisation with a funding model which relies on Fellows who can afford to make an annual donation I am acutely aware that the Society is just the kind of place to which recommendations from the Social Integration Commission’s final report will be addressed. Fortunately we have at least one bit of good practice to celebrate.
I was in Wales on Saturday for the RSA. It was positive event with a very impressive range of Fellows in attendance. Part of what made it good was the role played by two young people recruited as part of the RSA’s Centenary Young Fellows appeal. I hope we can build on the success of CYF to open up a continuous route for younger people to the Fellowship and that we can also explore how we might use other mechanisms to increase the Fellowship’s diversity.
It is also vital to recognise that even if our annual donation and joining criteria are somewhat restrictive that doesn’t mean we can’t engage a more diverse group of non-Fellows as partners in our work, as many of our best regions and networks already do.
Filed under: Politics, Public policy, The RSA, Uncategorized
The RSA has a new way of thinking about the world and the impact we want to achieve. We call it the Power to Create. It was the subject of my annual lecture, of this RSA Short and of many blogs by my colleagues, for example this excellent recent post by Adam Lent (which prompted me to contribute to his crowd funding campaign). As we had hoped, when people approach a set of ideas positively but with different perspectives those ideas can develop in many interesting ways.
Over the last couple of days, speaking to various people now back from Manchester, I have questioned the tone and content of Labour’s conference, particularly the assumption that most people are victims who can only be saved by the benign power of the central state. In defending the conference and critiquing the Power to Create my Labour friends’ key argument can be summed up as; ‘that’s all very well, but what does it mean to a constituent with a badly paid insecure job or to an exhausted carer relying on ever more meager state support?’
Their issue is not with the idea that everyone can and should live creative lives but with the gap between this idea and the practical reality faced by millions of hard pressed people. How can Government help people live creatively when it is hard enough helping people survive? This is a serious point but I think it can be addressed.
As I have argued, the Power to Create takes a somewhat wary view of central Government interventions: social policy needs to be less about trying to change people or achieve particular outcomes for them and more about enabling more people to be able to take control of their lives. Civic engagement and mobilisation, often starting from the ground up tend to be more powerful tools for enduring change than merely pulling policy levers. Power should be decentralised to the lowest practical level. The experimental, iterative, user-centred approach of designers is more suited than traditional policy making to solving problems in today’s ever faster changing, ever more complex world.
To take three examples from the Miliband speech; more new homes, a higher minimum wage and more apprentices all sound like good things, but experience tells us the pursuit of the specific goals of 200,000 more houses, £8 an hour and equivalence with graduates may also have unwanted side effects. Might it be better to aim for greater parity between housing tenures, to focus on choice and quality in young people’s education rather than a quantitative target (other similar educational targets have had at best a mixed record of success), and to work with business and localities to develop a more flexible minimum wage reflecting industrial and regional differences?
None of this means we don’t need national policy, nor that it doesn’t matter what that policy is. For example, on the deficit I tend to agree with Labour that the Treasury should set a slightly less demanding target (excluding capital investment from the deficit measure), partly because the NHS and social care are close to collapse (although here again it is not clear why the Labour leader found it necessary to specify exactly how many jobs and of what types are going to be centrally mandated for the extra funds).
The Power to Create recognises that we need some big change to facilitate a world of many smaller changes. As Adam argues, the ideal of Power to Create demands a comprehensive policy for wealth and assets, redistributing hoarded and often unproductive assets at the top and using the receipts to help the third of people who effectively have no savings and thus too little opportunity to change the direction of their life. Equally, we need elected Government to use its mandate to tackle concentrations of corporate power.
So the right type of policy, directed particularly to increasing civic capacity and individual autonomy in poorer communities is important to the Power to Create. But progress does not have to wait for a benign national policy environment. There are many practical things we could do tomorrow to enable people to have more control and more meaning in their lives.
At the RSA we are putting ever more focus on institutions as how they work can be a big barrier to, or enabler of, human creativity. Organisations that are dynamic, mission driven and where employees are encouraged to work together in teams with significant autonomy succeed through generating the Power to Create in their employees. Given that only one in five British managers have had management training it is perhaps not surprising that over third of workers say their talents are not being used at work or that national productivity is so low (in my experience the way people are treated within the higher echelons of political parties and Whitehall all too often exemplifies bad practice).
And when it comes to public services, what matters to people is not just what is provided but the way it is provided. The RSA promotes the principle of social productivity – that public service interventions should be judged by the degree to which they enable people better to contribute to meeting their own needs. Jocelyne Bourgon and her colleagues talk about civic effects such as growing capacity in communities being as important as more traditional public policy outputs. Even if there was no national policy change for five years a more collaborative, creative, open ethos in national and local government could still reap impressive results.
Which leads to a final response to the charge that the RSA’s thinking is too abstract and idealistic. As well as suggesting a set of broad goals to pursue, the Power to Create also helps describes a set of principles to apply today. It means a commitment to live creatively and to see that potential in every other person, living up to our capabilities and trusting in the capabilities of others. Perhaps the most underwhelming aspect of Ed Miliband’s speech was that at no stage did he seem to feel he could trust his audience – in the conference hall or in the country – to deal with anything that was intellectually, politically or personally challenging.
Which takes me back to the beginning. When I made all these arguments to my Labour friend she replied; ‘but people don’t want challenge, they want hope’. To which my answer is this; it is not hope that leads to action but action that leads to hope. The party political model of change tells us to rest our hopes on the right people getting into office, the Power to Create is a call to action starting right now.