How best should management cuts be managed?

At the end of 2009, PCTs were targeted with achieving a 30% reduction in management costs by 2013. The Conservatives have also pledged to reduce spend on NHS bureaucracy and to secure better value for money health services for the taxpayer should they form the next government. We look at what employers are doing to reach this target and the implications on resourcing in the NHS.

Undoubtedly it’s those managers which take a strategic approach who will be successful in meeting the targets while providing high levels of service.

NHS managers have been put under immediate pressure to reduce spend. Some have reacted quickly by pulling back on external consultancy or interim staff. But what will be the consequences of doing this? Who will take on the work the additional resource was originally brought in to do? Will employers be working with a disengaged incumbent workforce drowning under increased pressures? If consultancy and interim staff are cut abruptly are employers sufficiently set up to capture and manage knowledge-share?

Many employers are looking at introducing Lean methodologies or organisational redeployment, focussed on long term efficiency and we’re already seeing this approach create opportunities for experts in the field. How effectively will these efficiency saving models flourish without the external or internal expertise required?

Despite all of the unknowns, undoubtedly it’s those managers which take a strategic approach to using internal and external expertise for key business priorities who will be successful in meeting the targets while providing high levels of service.

For those worried about their future careers in the NHS make sure you can demonstrate the value that you bring and offer to take on extra responsibilities. And if possible try to get experience within the QIPP agenda.