Value for Money (VfM) in the Criminal Justice System Ideas from the UK, Opportunities for New...

Value for Money (VfM) in the Criminal Justice System

Ideas from the UK, Opportunities for New Zealand

Mike Bazett 21 February 2011Final

2© 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand.

Key messages

Warm in NZ

For New Zealand, it’s getting

warmer:

The costs of crime are too high

They’re not sustainable

We have to do things differently...

But what?

The UK – its hot:

Confronting elephants/Grasping nettles

(Reoffending; Prison levels; Costs)

Have to Innovate. Have to drive up VfM

Risk of too hot: Slash & Burn.

Hotter in the UK

‘We haven’t got the money, so we’ve got to think.'

Ernest Rutherford

Innovative solutions are emerging5 Ideas

New Zealand is in a lucky position

A big opportunity exists for positive, radical and enduring change

VfM: You can

make radical savings

and

deliver better services.

5 Elements of VfM


Why the UK?

Spend on Justice: 2.5% of GDP - highest in OECD Prison population: Doubled since the early 1990s

(now 156 per 100,000)

Political/Public debate: ‘Bobbies on the beat’, sensational media; “Tough on crime” arms race

Now cuts: Justice budget to be cut 23% in 4 years. 8,500 jobs to go already announced.

What went wrong? “Use of tough rhetoric and avoiding taking tough decisions that might prove unpopular in the short term.” Ken Clarke Lord Chancellor & Sec. of State for Justice

Bold leadership on the need to change: Government’s vision for criminal justice reform – Ken Clarke speech (July 2010) “Breaking the cycle” – Green Paper (Dec. 2010) “Rehabilitation revolution” – Crispin Blunt Prisons Minister (Jan 2011).

Ken Clarke

“Just banging up more and more people for longer without actively seeking to change them is, in my opinion, what you’d expect

from Victorian England”.


A sample of 5 UK ideas1. Prevention - Early intervention to prevent criminal behaviour

Logic: Prevention. “A cheap fence at the top of the cliff rather than gold plated ambulances at the bottom”.

Objective: All children to be ‘School ready’ at 5

How: “Early Intervention: The Next Steps” Jan 2011 Allen MP. “Breaking the cycle of low achievement for ‘Problem Families”.

Cross party cooperationBetter assessment for 0-5sBest programmesSupport to vulnerable mothersQuality pre-school education

Funding - No more from governmentAssessing how private/public can invest in the future of society.

Early intervention is not new. But, the need is, as is the funding

mechanism.

Also... The UK have to make it work.

?

At 22 months you can predict educational achievement at 26 years

At 3, boys assessed ‘At risk’ had 250% more criminal convictions by 21 than the “not at risk’ group


2. Shift from Reaction to Prevention

1999 Aim: “Get to fires quickly” 2,140 fires and 15 deaths 1,400 officers But in 1999, a child died. It could have been anticipated: Poor

family, smoked, chip pan, no fire alarm.

Prevention would have been better.The Economist October 9th 2010

2008 1,299 fires and 8 deaths 850 officers

How? Aim: “Prevention First” New staff as advocates Safety messages & 700,000 smoke

alarms.

More can be done with less

Case study Merseyside Fire brigade


3. Rehabilitation Revolution / Payment by Results (PbR)

Background

50% of adult offenders reoffend in 1yrShort sentences – 61%. Young offenders – 75%

Justice budget to be cut 25% in 4 years

Proposed “Rehabilitation Revolution” Prisons Minster

“Breaking the cycle” Green Paper.

But how?

PbR / Outcome Based Commissioning

Increased private/voluntary sector delivery. Free to innovate. Paid from savings

Minimise unproductive time in prisons

Enhanced Community Payback: Greater intensity & immediacy

Restorative Justice (RJ) at every stage.

“I expect England and Wales to become a global leader in delivery through Payment by Results over

the next 5 years.”Crispin Blunt

Prisons Minister 25 Jan 11

Plus bold ambition

To date: Plans to pilot six new

rehabilitation programmes on a PbR basis by Aug 2011

Estimate 3,000 fewer prisoners by 2015

6 Prisons to close.


4. Innovative financing through Social Impact Bonds to reduce reoffending

Focus: Reducing reoffending for short term prisoners (currently ignored)

How?: Intensive ‘Through the gate’ services by voluntary organisations

Pilot: Peterborough Prison. 3,000 prisoners. 6 Yrs

Funding

PbR: Measured reduction in reoffending (No. of reconvictions from all offenders released)

Investor return target: 7.5% pa over 8 yrs for a 10% point reduction in reoffending

Investors purchase ‘Social Impact Bonds’

Wider aim: To enable people/charities to invest in social progress.

Take one Banker, One Charity CEO and one Private Equity pioneer

A $100M fund could cut the 60% reoffending rate for short sentence male prisoners by 20%.

Savings would allow 4 prisons to close in 5 years saving $125m

“A lot of interest from the private banking networks. Clients want to invest in social progress”. “A win-win for Charities”

David Hutchinson, CEO Social Finance and ex head of investment banking Dresdner Kleinwort”


5. Engaging the public – Crime Maps

Community meetingsVideo messages

Aim: To hold police to account. To engage the communityExample: Tower Bridge, London in December

Overview of crimeNeighbourhood Policing Team details


5. Engaging the public– Crime Maps

Breakdown of crime numbers per ward Shown at street level


It’s early days – but popular!

Criminal Justice Service – VfM

Highlighting 5 Elements:

1. Benefits Management & Metrics2. Boundaries3. Brand4. Bold Leadership5. Back office – Can be a diversion.


What is VfM and how do you drive it effectively?

What is it? - Bang for your bucks!

Or... Gaining and sustaining productivity improvements.

How do you drive it?

1. Understand and quantify opportunities

2. Deliver real productivity improvements

3. Sustain those changes and the ways of working and culture that underpin them

4. Give people the tools and the ways of thinking to go after and secure new sets of reforms for themselves (Toyota vs. BL)

TimeGo live

Performance

Baseline

Ongoing monitoring

Sustained benefits

Challenge 1 – making the change

Challenge 2 – Making it stick

Target

1. Benefits Management & metrics - The basics

Based on metrics, hard data and rigorous & consistent analysis


2. Boundaries

Draw the boundaries of the system right. Get ahead of the curve.

Cor

rect

ions

Cou

rts

Pro

secu

tion

Pol

ice

Pol

ice

Cor

rect

ions

Cou

rts

Pro

secu

tion

Pol

ice

Drivers of crime

Reoffending

Reinvest savings where it matters

Tap into the front line passionReturn the ‘Gleam in the eye’.

Brand carefully. Engage the front line.

Join my VfM Team!

3. Brand


4. Bold Leadership

1. To drive through the VfM grief curve

Denial

Anger Negotiation

Acceptance Centre hits depts hard

and Cherry picking “Savings” gestures

- biscuits Play with budgets.

Lack of buy-in Top down initiatives, reporting back

just before an election No change for frontline Unpalatable options

Front line deeply involved Bottom up – front line

knowledge/passion Builds capability / professionalism Counter intuitive - Devolves power.

“Keep our head down – it will all go

away”

“There’s got to be a better

way”

Will do it but on my terms Cut “easy to cut” programmes Back office focus Shared Services and collaboration at

the margins

2. To survive the inevitable sentinel event – the “bad news day”


5. Back office – Yes... But can be a diversion

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

Force Y current pay spend split by officer/staff/PCSOs

Officers Staff PCSO

Back office (11%):

Staff: 8%

Officers: 3%

Middle office (15%):

Staff: 7%

Officers: 8%

Front office (74%):

Staff: 6%

Officers: 64%

PCSOs: 4%

UK Police force Y – Pay spend by back, middle and front office

The Front line – drives cost. And performance.


It can be done. Police in W. Yorkshire – Time to investigate low level crime (Burglary, theft, car break-ins etc)

Time between allocation and finalisation

38

45 47 45

5652

3 3 4 40

10

20

30

40

50

60

Oct Nov Dec J an Feb Mar W/c13/4

W/c20/4

W/c27/4

W/c4/5

Day

s

How?

1. Sort out the wheat from the chaff Improved screening. Effort focused on most solvable crimes

2. Scarce resource focused on fewer, more solvable crimes

3. Dedicated team for volume crime investigation. Focus & no distraction

4. Enhanced supervision by Sergeants.

Dropped from 47 days to 4 days ...and sustained.


In summary

NZ Criminal Justice – A great opportunity

It can be done:

© 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.All rights reserved. Printed in New Zealand.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”).

Value for Money (VfM) in the Criminal Justice System Ideas from the UK, Opportunities for New...

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