- Can you demonstrate how your back office services are performing?
- How do these services contribute to organisational efficiency programmes?
- What are you using to measure the performance of your back office services?
In May 2009, HM Treasury published its Operational Efficiency Programme Report. The programme targets saving across the public sector through efficiencies in back office services.
Back office services include; Finance, Human Resources, Estates and Facilities Management, IT and Procurement.
'What is not measured well, will not be managed well.'
Operational Efficiency Programme Report - HM Treasury
The Treasury reported a lack of robust management information on back office spending, making it difficult to compare and manage down costs. The report recommends that all public sector bodies measure the cost and quality of the back office. This information is essential for trusts looking to make savings whilst continuing to support front-line services.
How can we help?
The Treasury recommends the use of headline value for money indicators produced by the Audit Commission and other public sector audit agencies. The indicators assess both the cost and quality of the back office and act as a drive for change.
We can offer tailored advisory services. For example we can provide:
- Benchmarking against the headline indicators using established NHS data definitions, to give comparability and minimise time
- Detailed further analysis against our unique indicators to drill down into the issues using an established comparative database
- Workshops to evaluate diagnostic findings
- Advice on the use of KPIs and metrics to manage back office service lines
- Back office benchmarking clubs
- Option appraisals and action planning
- Post implementation reviews
Reporting
We have an established suite of reports to satisfy the various needs of boards and operational management. They draw out the key messages and provide comparisons with notable practice. We can also provide comparison of performance over time.
Example Chart
Finance transaction processing costs compared to total operating expenses
Example Measures
- Total property occupancy cost by square metre
- Cost of providing ICT support by user and by workstation
- Comparisons of prices paid for a sample of products
- Cost of accounts receivable per £1,000 invoiced
- Percentage of staff still in post after 12 months service
- Staff mix by band for all back office services
- Average number of working days lost through sickness absence
- Cost of portering by bed
- Payroll administration cost by employee
How do I find out more?
Contact your Trust Practice auditor or the regional lead for your area:
- Phil Johnstone, London - Tel: 0844 798 2304
- Simon Garlick, Southern England - Tel: 0844 798 1741
- Rob Murray, Central England - Tel: 0844 798 5777
- Damian Murray, Northern England - Tel: 0844 798 6620
All can be emailed at: tpe@audit-commission.gov.uk