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We believe that, within these limits, improvements can be achieved by adopting the three approaches described in the full report. Some further opportunities for improvement undoubtedly exist beyond the limits, and those that merit early attention are outlined at the end of the report. However, the issues they raise will require considerable study before changes can be demonstrated as being both desirable and feasible; it is intended that the more important of them shall be the subject of a further report.
The three approaches that can be adopted now are as follows:
1. Strengthen the existing machinery without making radical
changes. This could give significant but limited improve-
ments
2. Introduce new machinery so that executive activities,
which are performed mainly by the decentralised Government departments, could be managed more in terms of the results they produce than, as at present, in terms of the resources they use. This change would allow greater central control to be exercised while substantially reducing the administrative load, and would give the Government a greater capability to deal with continuing growth.
3. Improve personnel management so that more skilled staff are made available and the potential of those already in service is more fully developed.
Management
by objectives
conflict with Kidd
Summary descriptions of these recommended approaches, and of the further opportunities for improvement, are given in the four sections that follow. The detailed findings and conclusions on which they are based are set out in full in the main report.
The three approaches are largely independent of each other, and could be tackled separately or together. Similarly, within each approach the individ- ual recommendations are also largely independent and therefore leave Government considerable freedom to tackle them one at a time or all at once. Moreover, the activities of Government are so important to so many people that any fundamental change in its machinery should be introduced with caution. The more radical elements of the proposed new machinery should therefore be tested thoroughly in a limited area before any widespread implementation is contemplated. On the other hand, with Government activities expanding at their present rate, delay now would make change even more difficult later. For these reasons the plans to implement the recommendations will need continuing high-level involvement to ensure the adoption of the best options for change, and the most suitable balance of speed and risk.
McKinsey & Company, Inc.
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