Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
Senior leaders' under-investment in transformation stems from poor understanding of long-term cost benefits.
Recommendation
Redesigning services requires a more fundamental look at processes, not just the digital and technology elements.50 CDDO recognises this needs people not just with skills in technology, but also those who understand end-to-end processes, have the ability and willingness to analyse organisational structures, and the right capability and credibility to make the level of change required.51 Some departments can describe the benefits gained from transformation but struggle to systematically identify the opportunity costs of failing to transform.52 Incremental change is government’s fall-back response to things which are deemed ‘too difficult’ and when transformation gets de-scoped.53 If senior leaders do not understand how transformation would reduce future operating costs, they will continue to under-invest.54 41 Qq 53, 63; C&AG’s Report, para 3.20 42 Q 1 43 Q 63 44 Q 15 45 Q 65 46 Q 41 47 Q 62 48 Qq 76–77 49 Q 38 50 Q 65 51 Q 66 52 Qq 62, 72 53 C&AG’s Report para 1.6; Qq 15, 17–18 54 Q 62 14 Digital transformation in government: addressing the barriers to efficiency 3 Reform of finance, procurement and policy processes Central functions’ understanding of digital
Government Response Summary
The government accepts the recommendation for a more fundamental look at processes in service redesign. CDDO will work with departments and HM Treasury to ensure business cases thoroughly consider legacy and future avoided costs from service redesign by June 2025.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2025 2.2 Through the spend assurance process, CDDO asks departments to consider the effects of legacy, for example, the cost of decommissioning existing legacy systems. To ensure this recommendation is fully implemented, CDDO will work with departments and HM Treasury (HMT) to ensure the business case process thoroughly considers both these costs and future avoided costs from service redesign.