Andy Burnham's call to "rewire" the economy has sparked debate, but more regulation is not the best way to improve public services. The Mayor of Greater Manchester's vision for reform has been met with delays, with key initiatives pushed back to the 2030s. Local government reorganisation, water industry overhaul, social care, and welfare reform are all on hold. While these issues are complex, the knowledge to enact meaningful change exists now. The key lies in prioritising customer satisfaction over bureaucratic regulation.
The Problem with Over-Regulation in Public Services
Regulation often aims to standardise and control, but it can stifle innovation and efficiency. In the public sector, excessive rules can lead to box-ticking exercises rather than genuine improvements. Burnham's delay on water industry reform, for instance, reflects a cautious approach that may not address the root causes of dissatisfaction. Instead of adding layers of regulation, focusing on outcomes—like customer satisfaction—can drive better results.
The Obliquity Principle: A Better Path to Reform
Economist Sir John Kay, in his book Obliquity, argues that organisations focused primarily on profit or targets often fail. Those that prioritise customer satisfaction achieve long-term success. In the private sector, profits follow; in the public sector, savings emerge. This principle applies directly to Burnham's challenge. By making customer satisfaction the primary goal, public services can rebuild trust and deliver tangible benefits.
Applying Obliquity to Public Services
For public services, the "customer" is the citizen. Their satisfaction should be the measure of success. This means listening to feedback, streamlining processes, and empowering frontline staff. For example, in social care, instead of imposing rigid regulations, focus on personalised care that meets individual needs. In welfare reform, simplify access and reduce bureaucracy to help recipients more effectively.
Comparison: Regulation vs. Customer-Centric Approach
| Aspect | Regulation-First | Customer-Centric |
|---|---|---|
| Primary Focus | Compliance | Satisfaction |
| Innovation | Stifled | Encouraged |
| Cost | High (enforcement) | Lower (efficiency) |
| Public Trust | Eroded | Rebuilt |
Key Takeaways for Policymakers
- Prioritise customer satisfaction as the primary metric for public service success.
- Avoid over-regulation that hinders innovation and efficiency.
- Empower frontline staff to make decisions that benefit citizens.
- Use technology to streamline services and reduce bureaucracy.
- Learn from the private sector where customer focus drives long-term success.
Burnham's delay on reform may be politically motivated, but the evidence is clear: regulation alone won't fix public services. A shift towards customer-centricity can achieve the desired outcomes without the pitfalls of heavy-handed rules. As Kay's work shows, oblique approaches often yield better results than direct targeting.
FAQ
Why is more regulation not the best way to improve public services?
Regulation often focuses on compliance rather than outcomes, leading to inefficiency and stifled innovation. Customer satisfaction, by contrast, drives continuous improvement and cost savings.
What is the obliquity principle in public services?
The obliquity principle, from Sir John Kay, suggests that pursuing customer satisfaction indirectly leads to success, rather than targeting metrics like profit or compliance directly.
How can Andy Burnham improve public services without more regulation?
Burnham can focus on customer-centric reforms, such as simplifying processes, empowering staff, and using technology to enhance service delivery, all while measuring success by citizen satisfaction.
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