Applying our Principles to ourown work• Getting it right: reducing <strong>the</strong> numbersof complaints about us; ensuring we arecomplying with legislation applicable tous; effective auditing of our policies<strong>and</strong> procedures.• Being customer focused: publishingour reports in a variety of formats toimprove accessibility; establishing <strong>and</strong>publishing customer service st<strong>and</strong>ards;using feedback from our surveys <strong>and</strong>from complaints about us to help usimprove our service.• Being open <strong>and</strong> accountable:maintaining clear audit trails for ourdecisions; publishing our policies <strong>and</strong>procedures; demonstratingaccountability through reportingopenly on our performance.• Acting fairly <strong>and</strong> proportionately:making evidence-based decisions takingaccount of materiality <strong>and</strong> risk; puttingin place internal processes which ensurethat our decisions <strong>and</strong> remediesrecommended are consistent <strong>and</strong> fair.• Putting things right: improving ourcomplaints procedures <strong>and</strong> processesto make <strong>the</strong>m easier <strong>and</strong> clearer forcustomers to navigate <strong>and</strong> use.• Seeking continuous improvement:reviewing <strong>the</strong> effectiveness of changeswe have made to our structures <strong>and</strong>processes; acting on lessons learnedfrom this <strong>and</strong> our performance; investingin new ways of working <strong>and</strong> ourinfrastructure to support better delivery.Getting <strong>the</strong> most from staff,systems <strong>and</strong> financial resourcesApplying our Principles of GoodAdministration to our own workEnsuring that we live up to our ownprinciples of what makes for goodadministration is of fundamentalimportance to us, both internally <strong>and</strong>in <strong>the</strong> way we carry out our casework.We maintain a constant focus onimproving how we do our work <strong>and</strong>putting in place improvements wherenecessary in <strong>the</strong> service we provide.Investing in our people <strong>and</strong> takingforward our Equality <strong>and</strong> DiversityStrategyPHSO successfully achieved Investorsin People re-accreditation in <strong>2007</strong>-<strong>08</strong><strong>and</strong> we directly invested nearly £400,000in <strong>the</strong> learning <strong>and</strong> development of ourstaff over <strong>the</strong> year, supported by adedicated team. Particular emphasis thisyear was on management training witha Management Development Programme<strong>and</strong> an Aspiring to ManagementProgramme being introduced. Substantialeffort was also put into improving <strong>the</strong>effectiveness of our performancemanagement systems. We will bebuilding fur<strong>the</strong>r on this in 20<strong>08</strong>-09.We have continued to implement ourEquality <strong>and</strong> Diversity Strategy withrelevant awareness training. A WorkforceDiversity Action Plan was agreed includingtargets of increasing <strong>the</strong> number of black<strong>and</strong> minority ethnic staff working forPHSO to better reflect <strong>the</strong> profile ofpotential complainants. Performanceagainst this is being regularly monitored.82
<strong>Parliamentary</strong> <strong>and</strong> health service ombudsman annual report <strong>2007</strong>-<strong>08</strong>Managing our resources effectivelyOur summary financial results areincluded in this report. Performanceagainst <strong>the</strong> financial targets in our<strong>2007</strong>-<strong>08</strong> Corporate Business Plan wasas follows:• our net resource underspend of£174,000 was within our target limit forunderspending of less than £500,000;• our capital underspend of £199,000 wasoutside our target limit forunderspending of £100,000 due toa decision to defer replacement ofIT hardware;• we recovered 100% of income due in<strong>the</strong> year, although excess incomerecovered was £53,000 above <strong>the</strong>£40,000 target we set due to factorsoutside our control;• we remained within <strong>the</strong> Net CashRequirement sanctioned by Parliament;• we paid 99.2% (2006-07: 99.6%) ofsupplier invoices within our targetof 30 days;• our resource budgets were managedto within 1% of tolerances set, withinour target of limiting variance to nomore than 2%; but capital budgets wereoutside <strong>the</strong> 5% tolerance at 12.9% dueto <strong>the</strong> deferment of IT spendingmentioned above; <strong>and</strong>• our depreciation charges for <strong>the</strong> yearof £1,298,000 were within our targetof being no more than £200,000 morethan our capital investment of£1,360,000 (actual variance – £62,000)which evidences <strong>the</strong> maintenanceof our capital base.Over <strong>the</strong> year our staffing numbersreduced by 21.6, <strong>and</strong> full-year turnoverwas very high at 25%, which had animpact on our performance. This was duemainly to <strong>the</strong> effects of our restructuringprogramme. A substantial amount ofresource was invested in 31 recruitmentexercises aimed primarily at streng<strong>the</strong>ningour casework, management <strong>and</strong> corporatecapability. 48 of <strong>the</strong> 52 positionsadvertised were filled successfully at <strong>the</strong>first attempt, with 3 of <strong>the</strong> o<strong>the</strong>r 4 beingfilled subsequently.Average sick absence in <strong>2007</strong>-<strong>08</strong> for PHSOemployees was 5.9 days per full-timeequivalent (fte), which was well within ourtarget of being no more than 7 days perfte. This was also significantly lower than<strong>the</strong> public sector average <strong>and</strong> on a parwith <strong>the</strong> private sector.Managing changeReorganising <strong>the</strong> way we do thingsOver <strong>the</strong> course of this year weimplemented a fundamentalorganisational restructuring undera programme called Organising for<strong>the</strong> Future, <strong>the</strong> key aim of which wasto streng<strong>the</strong>n our capacity to deliveron our strategic objectives.The new structures were successfullyimplemented by November <strong>2007</strong>. Thisincluded a new Customer <strong>Service</strong>s <strong>and</strong>Assessment Directorate to improve ourfront-end processes for h<strong>and</strong>lingcustomer enquiries <strong>and</strong> assessing whe<strong>the</strong>rcomplaints should be investigated. It alsoincluded setting up an Outcomes <strong>and</strong>Learning Directorate to ensure that <strong>the</strong>lessons from our casework are captured<strong>and</strong> disseminated, <strong>and</strong> to provideenhanced capacity to develop effectivecasework guidance, supportingimprovements in <strong>the</strong> quality of our work<strong>and</strong> caseworker skills. The embedding of<strong>the</strong> new structures <strong>and</strong> <strong>the</strong> new ways ofworking has been supported withdevelopment awaydays <strong>and</strong> team events.Performance has been affected by a highnumber of caseworker vacancies, an issuewhich is being addressed.Corporately, we put in place a newDivision to manage our PolicyInformation <strong>and</strong> Communications.This includes four teams covering externalliaison <strong>and</strong> outreach; policy <strong>and</strong> research;internal <strong>and</strong> external communications;<strong>and</strong> knowledge <strong>and</strong> informationmanagement. These functions arerecognised as essential to <strong>the</strong> futuredevelopment <strong>and</strong> effectiveness of PHSO,<strong>and</strong> continuing to streng<strong>the</strong>n <strong>the</strong>ircapability will be a priority in 20<strong>08</strong>-09.83