Category: Press Releases

The press release issued by HM Treasury on 26 February 2002.

Maintaining the commitment of public services managers and staff will be central to delivering continuing improvement in public services, according to a Public Services Productivity Panel (PSPP) report published by the Treasury today.

The report ‘Making A Difference – Motivating People To Improve Performance’ looked at qualitative research carried out in eight high-performing organisations in both private and public sectors to identify factors behind their success in delivering recognized high-quality services to clients and customers.

The report highlights a number of effective techniques and practices that management and staff have used to raise levels of motivation within their own organisations. But it also warns that its central recommendations – that organisations regularly assess the motivation of their staff and the skills of their managers and act on both – are minimum requirements: to achieve a step change in the quality of public service delivery, managers need to take a co-ordinated and strategic approach to motivating their staff.

The report was prepared by Sir Andrew Foster (Controller, Audit Commission), Greg Parston (Office for Public Management) and John Smith (Finance Director, BBC) for the PSPP, reporting to Treasury Chief Secretary Andrew Smith.

Welcoming the report, Mr Smith said :

“Informed, valued and motivated staff are central to improving services in both the public and private sectors. The best organisations in both sectors recognise this and have developed positive, effective management strategies to attract and retain staff who can deliver to users the services they expect and deserve.

“The PSPP report looks at some of the best of these approaches, strategies that have shown results already. I want to see them studied and adopted by management across the public sector as an important part of the drive to improve public services”.

Sir Andrew Foster said:

“Some of the places we visited would appear on first sight to be as different as chalk and cheese – a trendy ad agency and a Northern council. In truth, the thing that stood out was the quality and motivation of their staff, their switched-on line management and the time, effort and focus top management gave to these issues.

“Good effective management is not a given, but needs to be worked at. For those organisations that do so, the future it seems is very bright”.

The report concluded that the three requirements for a highly motivated workforce are:

• A strategic framework that includes vision, transparent values, effective measures of performance, and HR functions that are central to the business.
• A supportive culture that allows delegation, recognition, communication and mutual respect.
• A strong emphasis on the inter-personal skills of line managers who are clearly connected to the organisation’s leadership and can translate these values for their staff.

The research found no significant differences between what motivates staff in the public and private sectors, and that so-called ‘soft’ management issues, such as good line management, setting clear objectives and inviting and recognizing staff contributions to success, are at least as important – if not more so – than pay and benefits. It also finds that motivated employees do not appear by chance, that active ‘interventionist’ personnel polices are required to develop and reward them, and that there are very real costs to any organisation which does not invest in this way.

Organisations involved in the qualitative research were: Clatterbridge NHS Trust; The Employment Service; Microsoft UK; Ministry of Defence Policy Unit; Stockton-on-Tees Borough Council; Suffolk County Council; Tesco; West Middlesex Hospital NHS Trust .

The press release issued by HM Treasury on 14 February 2002.

Howard Davies’ report on ‘Enterprise and the Economy in Education’ was published today at a press conference in No 11 Downing Street, and received strong support from business and industry leaders.

Sir Alan Sugar said:

“This Government, more than any other I can remember, continues to actually do something to promote the understanding of business enterprise in the school and lecture room. I tour schools and universities throughout the UK promoting the concept that starting your own business is not only possible, but also rewarding personally and fun. I have found a genuine interest and excitement among the students I have met. Today’s announcement underlines the Government’s commitment to foster and fund enterprise capability within the education sector and this is good news for young people and the country in general.”

George Cox, Director-General of the Institute of Directors, said:

“I am delighted with the proposals. I believe business will be more than ready to play its part in putting them into effect. The report answers a vital need, mapping out a clear agenda for Government, business and schools to help equip the workforce of tomorrow with the enterprising skills – and attitudes – that it needs”

“It is vital both to the individual and to the nation’s future prosperity that we develop a genuine “enterprise culture” in the UK, which means making young people aware of what enterprise really means. It’s a huge task. I am delighted that the report has got to grips with the real issues on the right scale. Many people are already active in this area: businesses, schools and voluntary bodies. The problem is matching the scale of their effort to the scale of the need. The proposals show the way this can be done.”

Digby Jones, Director-General of the CBI, said:

“The CBI welcomes the Review’s proposals as a step in the right direction. The proposals to give all young people enterprise experience should help ensure that young people gain a positive attitude towards work and the skills to enable them to fulfill their potential”

John Monks, General Secretary of the TUC said:

“The TUC supports the Davies Review’s aim to energise enterprise activity in schools, building on existing good practice. Teachers are key to this work and we very much welcome the Review’s recognition that continuous professional development of teachers and new teaching and learning materials are essential. We also very much support the Davies recommendations that businesses need to commit time and resources to enterprise activity in schools on a systematic basis.”

Sir Ken Jackson, General Secretary of Amicus-AEEU, said:

“British kids are full of imagination and potential. We need kids to be excited about industry and innovation from an early age if British business is going to lead the world.

“I’m glad the Government is encouraging all children to develop their business skills while still at school. Everyone should have the chance to find out what business is about.”

Kathy Heaps, Principal of John Kelly Girls Technology College, said:

“I think that all young people should have the opportunity to engage in real-life business experience while still at school. This is particularly true for young people from disadvantaged backgrounds. I therefore welcome the report’s proposal to offer all young people the chance to take part in enterprise activities.”

Larry Hirst, General Manager of IBM UK Ltd, said:

“This report is a very positive step. In IBM’s work with companies of all sizes throughout the UK, we see that entrepreneurship is key to business success. IBM believes that it is vital for the IT industry to support the DTI and the DfES, ensuring that school children have as many opportunities as possible to develop their entrepreneurial skills. For example, the courses IBM runs with Businessdynamics provide many children with first-hand experience of the business world. We look forward to supporting the Government in helping young people develop the best possible skills for the world of e-business.”

David Irwin, Chief Executive of the Small Business Service, was also firmly in favour of the proposals. He said:

“I warmly welcome this report, its recommendations and the constructive dialogue it has created about how our schools and colleges can help prepare young people to meet the challenges of working life and achieve their dreams. We are living increasingly in a society where people expect to have two, three or even more careers during their working life, and, if our young people are to play a full part in the enterprise society we want to create in the UK, it is essential that they have the opportunity to develop enterprise skills and capabilities. It’s not all about starting up your own business. It’s about showing young people how they can develop the skills needed to drive forward change and achieve results, whether in large organisations or small, in business or in the not-for-profit sector.”

Anthony Goldstone, President of the British Chambers of Commerce, said:

“The foundations of an enterprise economy are built early in life, when children are acquiring their perceptions about business as a future career. Therefore, applying children’s learning to the business world is vital to their development and the wider needs of our economy. This should not be a practice that is limited to the best schools and teachers, but should be available to all. We unequivocally support the attention the Government is giving to this issue and Howard Davies’ drive to develop a coherent national strategy.”

The press release issued by HM Treasury on 14 February 2002.

Proposals to train Britain’s next generation of entrepreneurs were welcomed by business leaders at a Downing Street press conference today.

“Enterprise and the Economy in Education”, an independent review into enterprise and education conducted by Howard Davies, chairman of the Financial Services Authority, found that, although links between schools and industry are good in areas, fewer than 30 per cent of young people gain any experience of enterprise.

The review recommends that every pupil spends five days gaining experience of enterprise, has the chance to set up and run their own mini-company and carries out specific projects in local companies with real experience of designing, marketing, pricing and selling products.

The report also recommends that the two-weeks work experience fifteen and sixteen year-olds currently undertake, provides more enterprise and business experience, and proposes that every school links up with local businesses, with business people spending time encouraging pupils to pursue careers in business.

Howard Davies’ recommendations include:

• An £56 million contribution from Government and £30 million contribution from business, with Government piloting a range of different approaches;
• Special emphasis should be given to young people in economically deprived areas where existing links with business may be less well developed; and
• New teaching materials should be developed for enterprise learning and personal finance education.

Chancellor Gordon Brown said:

“Budget 2002 will send a message to entrepreneurs in every part of the country that this Government wants to open up the opportunities of enterprise to all. If we are to have a deeper and wider entrepreneurial culture we must start in our schools and colleges.

“I want every young person to hear about business and enterprise in school; every college student to be made aware of the opportunities in business, even to start a business; and every teacher to be able to communicate the virtues of business and enterprise.

“Providing this opportunity for young people, and especially for those in disadvantaged areas, is critical if we are to build a Britain where every community celebrates and rewards enterprise and where the chance to start and succeed in business is genuinely open to all.

“I welcome the Davies report as an important step in making this happen and spreading the spirit of enterprise from the classroom to the boardroom.”

Howard Davies said:

“The time is right for a step change both in enterprise activities, and in the promotion of economic and financial literacy. The reorganisation of the 14-19 curriculum offers an opening to revisit the place of enterprise learning in schools.”

Estelle Morris said:

“This is an interesting, independent review which makes some valuable observations about the development of enterprise, knowledge and understanding of the economy in our education system. But we need to consider the recommendations within the broader outcomes of the current Spending Review, and our other priorities in the education system. The review reflects our approach, published this week in our 14-19 Green Paper, of delivering good quality vocational learning and supporting work-based learning for all our young people.”

Patricia Hewitt said:

“Entrepreneurs are the lifeblood of a rich, thriving economy and it is vital that we nurture the talent and business flair of all our students by getting enterprise on the education agenda. Britain already leads the way in Europe in supporting budding entrepreneurs. A recent Commission report singled Britain out for our low business start-up costs and speedy registration.

“Today’s proposals will instil in our students the self-belief and confidence to achieve their ambitions of becoming entrepreneurs of the future.”

Business leaders today gave the proposals strong support. Details of their comments can be found in the attached paper.

The Chancellor, Estelle Morris and Howard Davies this morning visited IBM offices in London, and met pupils from the Aylwin School, Southwark, who have been involved in an enterprise project organised by businessdynamics and IBM.