Well, according to the National Audit Office (NAO) many do not:
- The initial costs of sharing ‘back office’ functions (started in 2004) had start up costs of £1.4billion against an estimated £900million. The project was set up to save £159million
- Shockingly, 2 departments; Department of Work & Pensions and Department for the Environment, Food and Rural Affairs did not keep track of whether or not the changes were saving money
- One positive piece of news is that the Ministry of Justice saved £33 per year and had broken even ahead of schedule – at which point officials stopped monitoring performance
Margaret Hodge, who chairs the Commons Public Accounts Committee, said the overall figures provided “a shockingly familiar story of spiralling costs and poor value for money”.
The NAO found ministers had failed to offer “clear management” for the setting-up of pooled resource centres aimed stopping costs being duplicated.
So, to return to the question; are your cost saving projects saving money – if yes, can you actually show how?
You can read more at http://www.bbc.co.uk/news/uk-politics-17276978