Rise of the transformers

Directors for "transformation" and cost-cutting look set to become more high-profile within the public sector over the next few years as organisations try to do more with less money. One trend among local authorities is to make one person responsible for trimming costs. These managers – often called change or transformation officers or directors – are responsible for cutting costs and improving the quality of services. The hope is that they will help ensure large and complicated efficiency programmes meet their targets. But the risk is that transformation directors, who first emerged around the middle of the previous decade, simply add another layer of management in councils without improving efficiency significantly. Derby city council has appointed an interim head of transformation to introduce "new ways of working, technology and accommodation" in a programme that aims to deliver £32m of savings over the next three years, and savings of about £21m from 2014/15. It plans to appoint a permanent head of transformation later this year. Meanwhile, Leicestershire county council has appointed a "strategic programme manager" to lead a wide-ranging programme whose aims include making procurement more efficient, integrating children's services, and improving communication with the public. Transformation managers are also likely to be used more widely in the health service, experts say. A government programme to improve the quality and efficiency of services within the NHS, based on the principles of Quality Innovation Productivity and Prevention (QIPP), will increase pressure on senior managers to demonstrate savings and improved performance. Last year, the government appointed Jim Easton, previously chief executive of the South Central Strategic Health Authority, as NHS National Director for Improvement and Efficiency. The government also set up an NHS National Quality Board to champion good practice and encourage an even quality of services across the health service. A single person responsible for cost savings is a good idea Mark Jennings, director of health care improvement at health thinktank the King's Fund, says having a single person responsible for cost savings is a good idea, but could backfire if other managers and staff don't contribute to the efficiency drive. "I think most organisations will have somebody in charge of co-ordinating [QIPP]," says Jennings. "Of course the danger is that you make it somebody's responsibility then everybody else can abdicate responsibility across the organisation." Transformation managers may also struggle to prove their value initially. Jennings says that there are few areas in the NHS where big savings can be made quickly. Closing hospitals, or accident and emergency departments; merging parts of hospitals with others; and rationalising property all take time. Sarah Pickup, honorary secretary of the Association of Directors of Adult Social Services, and director of adult care services at Hertfordshire county council, is cautious about the potential benefits of transformation officers. "In some places, having some person responsible for savings might work, but it may not be necessary everywhere," she says. "It depends on the culture of the [council]. If you've got a chief executive they are accountable for that very thing [delivering cost savings]." But given that council chief executives have numerous projects to oversee, delegating responsibility for cost cutting can be a wise move, according to Mark Lawrie, local government partner at Deloitte Consulting. "Theoretically the chief executive is the leader that is charged with a cost-reduction strategy, but if you've ever worked in a complex organisation you'll realise that there are forces and politics at play that can slow things down," says Lawrie. "The need for inter-departmental co-operation is necessary but not always there, so having an individual [charged with cuttings costs] with the authority of the chief executive is a good thing." But to be effective, transformation directors need to be given a clear mandate and a senior role within a council, Lawrie adds. "There is a move in a number of places where I've worked where the head of transformation is in a third-tier role, below director level," he says. "I think they struggle to actually effect change within a department of people who are more senior than them."