Gary Ashton
Merging organisations is never as simple as it appears on paper and the process of merging public bodies is no less complex than in the private sector. As the cost is bourn by taxpayers, failure is even less acceptable.
With the impending clampdown in government spending, one area that will certainly get the attention of the next government is that of the number of departmental agencies and non-departmental public bodies (NDPBs).
There is a belief that condensing or merging some of these bodies into single organisations will enhance efficiency and reduce public spending. The Scottish 'simplification programme' is ahead of the game here, with its aim to reduce the number of Scottish public bodies from 199 to 120, with savings of £36m between 2008 and 2013.
But in merging, it is important to remember that agencies and NDPBs, were originally created with specific remits. So combining two or more such bodies will require a careful aligning of these differing remits or re-crafting a new set for a new age. This in turn often demands a change in how the new body is organised.
However, mergers are not merely about structural integration. Last week's article by Xantus on public sector M&A highlights that in the design phase of any restructuring, technology has been a dominant factor over the past decade. Yet the hardest part, and the one that most often derails the process, is human integration.
Key issues during transition
Recently we worked directly with one Scottish public body to facilitate its integration into a new larger body. In this particular instance, the key issues during the transition were to ensure it continued to deliver existing strategic objectives while preparing for change, and in creating a new joint board that could develop the vision and values for the new organisation.
However, mergers are not merely about structural integration. The harder part, and the part that most often derails the process, is human integration.
Starting at the top, the abilities and experience in change management of the team leading the merger needs assessing, and any gaps filled with personal development, or 'bought-in' expertise.
Then there are the consequences of restructuring when job responsibilities and capabilities may change. Following its merger with the Meat Hygiene Service we worked with the Food Standards Agency.
The FSA has embarked on a substantial change programme that sets out to ensure improved delivery, culture and structure. This has included the assessment of different capabilities at management grade 6 & 7 across the agency due to these management grades having a wider and more important future role to ensure delivery through others.
In delivering change in cases such as the FSA, where the number of managerial posts was reduced, the selection process must be both transparent and demonstratively fair. It is also important that training and support is provided for those who re-apply for jobs with expanded responsibilities. Getting this right will ensure the new organisation has the best people in place, suitably motivated, to deliver to its broader remit.
Gary Ashton is a director at ER Consultants
