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Strategic Capacity in Post Devolution Government in the UK: a Comparative Analysis of the Lifecycle of Central Strategy Units

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Strategic Capacity in Post Devolution Government in the UK: a Comparative Analysis of the Lifecycle of Central Strategy Units Strategic capacity in post devolution government in the UK: A comparative analysis of the lifecycle of central strategy units Audrey Mary MacDougall PhD The University of Edinburgh 2006 Declaration I declare that: 1 I am the sole author of this thesis 2 This thesis is all my own work 3 This thesis has not been submitted for any other degree or professional qualification Signed: Dated: Acknowledgements I am hugely indebted to my supervisors Richard Parry and Charlie Jeffery for their unstinting support, encouragement and advice through the production of this thesis. I also wish to thank my interviewees for their time, interest and insightful comments which made my fieldwork a very enjoyable experience. My friends at the PhD flat at No.10 Buccleuch Place provided fun, discussion, arguments, advice and constant friendship without which my experience of undertaking a PhD would have been much impoverished. Finally I would like to thank my husband Gavin, who through his quiet encouragement and moral support kept me on track for the last four years. Abstract This thesis analyses the changing role of central government strategy units in the devolved UK polity using a lifecycle model. At each stage of the lifecycle the units develop a different aim, undertake different tasks and follow different working approaches. At different stages agency, in the person of the Prime/First Minister, existing structures, or culture and attitudes, particularly around the concept of a corporate centre, form the main influence on change. Following through the lifecycle, it becomes apparent that such central strategic units have a defined life trajectory tending towards their demise through bureaucratic capture or ideological marginalisation. Divergence or convergence between the units is primarily based on leadership style rather than pre-existing structures or constitutional arrangements. Adopting a lifecycle approach, more commonly associated with the business world, provides an alternative conceptual approach to examining the maintenance of governmental organisations. It is a logical progression from the borrowing of business ideas on management and organisation generally categorised as New Public Management. It provides a more appropriate framework of analysis in a situation whereby government is less dependent on traditional polarised ideological positions and instead adopts a strategic, managerial approach to government. As governmental organisations copy the modes of operation of large corporations, the tools of the business world add additional insights into formation, development, change and decline in such organisations not clearly revealed by more commonly adopted political science models. Contents 1 INTRODUCTION .............................................................................................. 1 1.1 TOPIC OF RESEARCH ................................................................................... 1 1.2 CENTRAL STRATEGY DEVELOPMENT STRUCTURES ......................................... 4 1.3 AIMS AND OBJECTIVES OF THE RESEARCH ..................................................... 7 1.4 STRATEGY AND POLICY ............................................................................... 8 1.5 GOVERNMENT LIFECYCLE ...........................................................................12 1.6 RESEARCH DESIGN AND METHODOLOGY ......................................................15 1.6.1 The philosophical position underlying this research...............................15 1.6.2 An outline of the research approach......................................................16 1.6.3 Case study design.................................................................................16 1.6.4 Data collection ......................................................................................19 1.6.5 Triangulation .........................................................................................25 1.6.6 Analysing data ......................................................................................25 1.6.7 Feedback ..............................................................................................26 1.7 SUMMARY OF ARGUMENT ............................................................................27 1.8 THE STRUCTURE OF THIS THESIS .................................................................27 1.8.1 A theoretical review...............................................................................27 1.8.2 A historical review .................................................................................28 2 UNDERSTANDING THE DEVELOPMENT OF CPSC IN THE UK ..................30 2.1 INTRODUCTION ...........................................................................................30 2.2 WHAT IS THE PURPOSE OF CPSC?..............................................................32 2.3 WHAT IS CPSC?........................................................................................34 2.3.1 Overview...............................................................................................34 2.3.2 Reducing uncertainty ............................................................................34 2.3.3 Developing creativity.............................................................................36 2.3.4 Collective learning.................................................................................36 2.3.5 Fire-fighting...........................................................................................37 2.3.6 Adding CPSC to the lifecycle framework ...............................................37 2.4 HOW DO INSTITUTIONS FORM AND CHANGE ? ................................................38 2.5 FACTORS INFLUENCING THE DEVELOPMENT OF CPSC..................................40 2.5.1 Lessons from history.............................................................................40 2.5.2 Devolution and models of administration...............................................48 2.6 CONCLUSION .............................................................................................52 2.7 DEVELOPING RESEARCH QUESTIONS AND HYPOTHESES ................................53 3 CENTRALISED POLICY-MAKING IN WHITEHALL – DEVELOPING STRATEGIC CAPABILITY.....................................................................................56 3.1 INTRODUCTION ...........................................................................................56 3.1.1 Background...........................................................................................56 3.1.2 Developing the Core Executive .............................................................56 3.1.3 The location of CPSC............................................................................57 3.1.4 Developing an analytical framework......................................................58 3.1.5 Structure of this chapter ........................................................................58 3.2 AIMS AND OBJECTIVES OF THE PIU, FSU AND PMSU ...................................59 3.2.1 The PIU, FSU - the early days...............................................................59 3.2.2 The PMSU and its development............................................................62 3.2.3 Relationships with the Number 10 Policy Directorate ............................65 3.3 STAFFING ..................................................................................................67 3.3.1 Overall staffing arrangements ...............................................................67 3.3.2 Heading up the unit...............................................................................70 3.3.3 The use of secondments.......................................................................71 3.3.4 The role of SAs and the work of Lord Birt..............................................74 3.3.5 Staffing in the departmental units ..........................................................76 3.3.6 The impact of staffing decisions ............................................................77 3.4 BUDGETS ...................................................................................................77 3.5 OUTPUTS ...................................................................................................78 3.6 IMPACT OF THE UNITS .................................................................................87 3.7 THE TRAJECTORY OF THE LIFECYCLE ...........................................................91 4 CENTRALISED POLICY-MAKING IN SCOTLAND – FROM THE POLICY UNIT TO THE STRATEGY AND DELIVERY UNITS ..............................................96 4.1 BACKGROUND ............................................................................................96 4.1.1 Introduction ...........................................................................................96 4.1.2 The creation and strengthening of the Core Executive ..........................97 4.1.3 The source of CPSC ...........................................................................100 4.1.4 Developing policy capacity ..................................................................100 4.1.5 Coalition government ..........................................................................101 4.1.6 The role of SAs ...................................................................................102 4.1.7 The structure of this chapter................................................................102 4.2 VERSION ONE – THE DEWAR ERA ...............................................................102
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