Public sector bodies need to get a grip on spend
Recent public sector strikes across the UK helped demonstrate the clear level of feeling generated by attempts to cut spending in the public sector.
Action concentrated on proposed changes to pension schemes, yet the sentiment associated with the strike seemed to draw on wider themes – the UK economy is struggling, conditions are only going to get tougher and public sector bodies must get a grip on spending.
Executives faced with making spending decisions face a tough job. On the one hand, citizens require a set of services that continue to meet their needs, particularly at a time when economic constraint means demands for support are likely to increase.
On the other hand, continued pressure from the Comprehensive Spending Review (CSR) means that the public sector must prove value for money and demonstrate means to reduce spending. The CSR will lead to an £81 billion cut in public spending between now and 2014/15, with average departmental cuts of 19% (see further reading, below).
Spending visibility can only be gained through the implementation of the right technologies. Public sector bodies will not be able to keep procurement in check if they do not have the right level of awareness about how much is being spent by different departments and on what.
And so now is the time to invest in budgeting, forecasting, planning and analytical technologies that will provide transparency into how public sector cash is being spent. Certain bodies are already investing in these technologies as a means to deliver greater spending transparency and to help cut costs.
Cheshire West and Chester Council is implementing a budget monitoring and forecasting system from Advanced Business Solutions to enable £500,000 cost savings during the next three years (see further reading). The system will go live in 2012 and is being integrated into the Council’s existing Oracle system to enable the quick download of data.
Such integrated use of technology creates a single version of the truth, enabling better-informed spending decisions. Trying to make serious spending cuts without such technologies in place is akin to trying to climb Mount Everest in a pair of slippers.
Further reading:
http://en.wikipedia.org/wiki/Spending_Review
http://www.advancedcomputersoftware.com/abs//news/cheshire-west-and-chester-council.php
http://www.advancedcomputersoftware.com/abs/resources/pdf/AdvBS216_FS_spend_analytics.pdf
