If this sound like a strange concept, please read on and we’ll explain our reasons behind posing the question

In nature, physics, anything, we see that systems like equilibriums. Call it Newton’s third law, or yin and yang, call it what you like, but a system likes an equilibrium. Add a new variable and the system will look for a new equilibrium. We're going to recount a conversation we had with an operational head (Bob) while we were working as Quality Program Manager in the public sector  many years ago to illustrate the point. At the time we’d been using the EFQM framework to provide focus for business improvement and this had worked reasonably well at the initial level of engaging people to ask the right questions and challenge the status quo. Anyway we went to see “Bob” to review the progress of some of the projects that had been initiated, so we had something to report and send up the line. Obviously it was in our interest to find some positives, because that would reflect well on us. So we went to see “Bob” and was quite soon asked a strange question

“Shaun, can we have a little chat off the record”

“Erm, OK, if you like”

“Good. I need to get some things clear, and I don’t want to play games with you”

“Right …”

“ I was just wondering where all this EFQM malarkey is likely to lead, and what’s the best way to tackle it. Things have gone pretty well so far, there have been some nice ideas coming through from staff and it seems to have had a positive effect on a lot of people, but I can see problems ahead and I need to ask you what you think is the best way to tackle them”

“What sort of problems?”

“Well, the type of improvement projects we’ve set up so far have been a lot of … well, you called them ‘quick wins’ in your presentation last week. Simple stuff like reorganising the workspace to make life easy for people, redesigning forms to make them easier, that sort of thing”

“Right”

“Only last week I thought I detected in your presentation that this might only be a sort of ‘phase 1’ and you mentioned something along the lines of ‘better faster cheaper’ at a more fundamental level”

“Well, yes, that’s what it’s all about. In fact, they weren’t my words, that’s what the Cabinet Office actually wants. They want better value public services and they need to see stuff like this delivering tangible results in pounds and pence”

“Yes I understand that – that’s the problem”

“What do you mean?”

“Well, we can’t make a profit, you understand that. So the only way we can make improvements with a significant economic end result is by underspending”

“ Yes I understand”

“ Why the hell would I want to do that?”

“Because it’s a good thing?”

“Not for me and my staff it’s not. If I underspend on my budget, then my future budget gets cut. Fair enough, you might say that if I don’t really need that level of budget I shouldn’t get it, but it’s in my interests to protect my resources, because I’ve got to deliver against targets, and if I don’t I end up  in trouble. So why would I want to do something that will reduce my ability to meet my objectives? I don’t want my budget cut, and neither would you in my position. In fact an underspend is worse than an overspend. You can get away with an overspend provided it’s not too big or you have a good enough excuse – like those data migration problems that created that backlog that we had to clear on overtime. That created an overspend, but it wasn’t my fault so nobody’s bothered. A little underspend is OK, because I get a nice pat on the head, but I don’t get my budget cut for next year, not by too much anyway. The best scenario is ‘right on budget’ because that has no consequences and looks like you’ve planned, profiled and delivered efficiently”

“Yes, but that just means people keep some money back for the last quarter in case of unforeseens, and then spend it on unnecessary purchases before the financial year ends”

“Yes … and?”

“Well, it’s not right is it? … it’s a waste”

“Put yourself in my position. What would you do? I’ve got targets to deliver against and the more money I’m given, the better my chances. You’re asking me and the other operational heads to fall on their swords, underspend, hand back the savings and volunteer for a tougher fight next year. Or have I got it totally wrong?”

“ But the Cabinet Office …”

“Cabinet Office nothing. That’s the way our planning and finances work. We’ll always be given annual targets and budgets and it will always be in our interests to deliver against our targets and spend all of our budget. If the Cabinet Office or whoever is going to cut my budget, so be it, I’ll cross that bridge when I have to, but I’m certainly not going to run towards it, and neither would you”

“OK Bob, I hear you, but I need to think about the answer ... if there is one ... Anyway in the meantime let’s take a look at these projects of yours, then. The first one was moving the copier  nearer to the post table … tell me about that one first … and you yourself have been trained as an EFQM Assessor ... tell me what new perspectives that has given you  …”