1



New Public Management and Leadership-Whether there is any contingent


relationship between leadership style and performance status: Evidence from


an English National Health Service (NHS) Trust



 



Introduction


This paper investigates the leadership requirements for the National Health Service (NHS) in UK


in the context of a complex and dynamic environment of shared power arrangement for health


services in the UK by examining the evidence from a PhD research project in an English


ambulance service (for confidentiality referred to as Delta trust). The authors argue that effective


leadership style in the NHS will necessitate a successful partnership and team work between


individual organisations, politicians, healthcare professionals and other stakeholders within the


complex network of the NHS to improve performance requirement, service delivery and care


given to the patients. The opening quote symbolizes the importance of effective leadership in the


UK health sector.


This paper will examine the leadership role of the ambulance services within the NHS network


and analyse how their peripheral position in that network affects not only their own performance


and targets but also has serious implications on the outcomes of other sectors in the wider NHS


by evaluating the evidence from the research. This paper is structured as follows. The first


section looks at the changing face of leadership theory. The next section reviews the literature on


leadership in the UK NHS and its implications for the organisation. The third section analyses


the leadership role of the ambulance services within the wider NHS network. The fourth section


presents research findings drawn from the case study. This is followed by discussion and


conclusion in the final section.



The changing face of leadership theory


Leadership has been historically and typically defined and understood in terms of traits, qualities,


the situation in which the leader exists and the behaviour of the leaders


(1985;1926;  1964; 1967;  1974; 1994).


Leadership (seshemet) and Leader (seshemu) appeared in Egyptian hieroglyphics 500 years ago


(1990) much of the research is relatively (last 100 years or so) recent. Implicit in the


research is that leadership is a good thing and if we can identify exactly what it is then we could


replicate it elsewhere.


However there is no academic agreement on what essential leadership competencies are most


important let alone if they can be taught or are effective. As Stogdill points out, “there are almost


as many different definitions of leadership as there are people who have tried to define it (1974)


 (1997) argues that the current theories of leadership view leadership as a process in


which leaders do not lead the followers, but are seen as more of a member of a community of


practice.  (1994) define a community of practice as “people united in a


common enterprise who share history and certain values, beliefs and way of doing things”. The


complexity and interdependent nature of leadership is being increasingly acknowledged by


researchers (1986;  1989). Modern public sector organisations by their


very nature are complex and the NHS in UK is one such example.  (1995)


argue that organisations are moving from a more traditional hierarchical structure to one which is


more team based. Network based organisations are emerging as a new and innovative


organisational form in the public sector reflecting in many ways, the private sector (2007)


. However a definition of a successful leader in a team environment is missing due to


lack of empirical evidence. (1997) argues that due to the changing nature of work, more


creativity, innovation and flexibility is required and successful leaders may not solely depend on


applying the right behaviour in a given situation (as contingency theory suggest) by looking at


the interpersonal and environmental factors.


Effective teams have been consistently shown to have effective team leadership


(1989;2001).(1989) idea of ‘Super Leadership’ and


 (1994) research on ‘leadership in team structures’ contribute to our understanding of the


dynamic and complex environment in which modern organisations, especially in the public


sector, operate. The complex character of the NHS in comparison to many other types of


organisations is also supported by other evidence ( 2001).


This tie in with the view of  (1997) who talks of conceding the myth of leaders as isolated


heroes and replacing it with distributed leadership amongst individuals and teams who share the


responsibility to create the future of an organisation. Teams have become more essential to the


differing organisational contexts and most NHS organisations rely heavily on an effectively led


team. The complexities and challenges posed by the changing needs and expectations of people


present a significant opportunity to understand more about leadership within the public sector. A


network based approach may be more suitable for complex and rapidly changing environments


(like the NHS) than hierarchies which are more appropriate for stable and routine situations


(1991). The following exhibit captures the complexity of the accountability


relationship in the NHS structure in England and the place of the ambulance service within that


network.



Leadership and management in the UK NHS


There is growing body of literature which looks at various aspects of leadership and their


relationships with performance (2002; 2003)


. However, such studies in the healthcare systems are far too few (2002)


. In one such recent empirical study in UK, (2005) after studying the


primary and acute trusts in the NHS in UK concluded that high-performing trusts are


characterised by a tradition of a strong, top-down or transactional style of management with an


emphasis on establishing robust systems to monitor and improve performance. Such trusts may


decide then to gradually adapt more participatory or transformational styles of management to


consolidate their high performance position. Further empirical evidence will help to substantiate


the above hypothesis. Organisational performance would depend on several factors including


resource availability, technological factors and policies of the government and the leadership role


of the individual organisation within the complex network of the wider NHS. Leadership


research in healthcare has been largely undertaken within organisations and our understanding of


network- based leadership which focuses on partnership and collaboration is rather limited (2006)


The UK NHS is the largest organisation in Europe. With a revenue allocation of £ 135 billion


for 2006-07, it employs almost one million people ( 2007). Established in 1948 by the post-


Second World War Labour Government, the NHS is funded by the taxpayer and managed by the


Department of Health, which sets overall policy on health issues (2007). It is the


responsibility of the Department of Health (DoH) to provide health services to the general public


through the NHS.


The Thatcher government in the 1980s initiated several changes in the NHS structure in order to


improve delivery and efficiency of public services (1998). Few broad features of these


changes included privatisation programmes; introduction of managerial techniques; clear


emphasis on efficiency and improving leadership of public services (1996). These


changes have been often referred to as the new public management (NPM) agenda in many of


the Organisation for Economic Co-operation and Development (OECD) group of countries in


the late 70s and 1980s (1991; 1990; 1990). One remarkable feature of


many of such NPM reforms has been the importance given to organisational performance (and


leadership) despite variations within the reform movement (1995; 1995;2001;2000)


New Labour has attempted to initiate a culture driven by performance improvement (1997,1998)


  Specific long-term objectives and targets were identified within the new


strategic plan ( 2000). Local Health Authorities (subsequently replaced by the Strategic


Health Authorities) were given the crucial role in leading their local health organisations (e.g.


NHS Trusts) to deliver central government’s targets. A Performance Assessment Framework


(PAF) has been developed within the NHS which identifies six key dimensions (including both


financial and clinical targets) according to the long-term objectives of the NHS Plan, 2000


indicating a multi-dimensional performance management approach to benchmark performance


(1999). One of the commitments of the government in the NHS Plan (2000)


 was to establish the NHS Leadership Centre as a part of NHS Modernisation Agency


(2001). In response to the Kennedy report, a “code of conduct” for the managers was published


by the government ( 2002). In addition; a Leadership Qualities Framework (2002a)


was also put into practice and which is now being increasingly promoted in the NHS. Exhibit 2


illustrates the leadership qualities framework.


The leadership qualities framework is designed to provide a blueprint for effective leadership in


the NHS. There are fifteen qualities within the framework which cover a range of personal,


cognitive and social qualities. They are further arranged in three clusters: Personal Qualities,


Setting Directions and Delivering the Service ( 2002a). The framework describes the key


characteristics, attitudes and behaviours to which leaders in the NHS should aspire.


The NHS

Leadership Qualities Framework has been developed specifically for the NHS and sets the


standard for outstanding leadership in the service. The framework can be used across the NHS to


underpin leadership development, for individuals, teams and organisations. A


detailed analysis is

beyond the scope of this paper but the authors would however argue that while personal qualities


and values are at the core of the Framework, it supports a team leadership approach in ‘setting


the future direction’ of the organisation and ‘delivering the service’. The Framework strongly


advocates a collaborative working style of leadership ensuring effective partnerships with the


internal and external stakeholders to improve service delivery in a complex and changing health


and social care environment ().


The NHS in UK is a complex web of accountability relationships which involve citizens,


government, managers, patients, regulators and tax payers. There are tension between the


doctrine of accountability to the centre and the fact of delegated responsibility to the periphery


(1989). Some commentators have debated if the NHS in UK (there are separate NHS in


England, Scotland, Wales and Northern Ireland) would benefit from a single identifiable leader


or from developing leaders at a local level (2003). The works of Leadbeater and


(1998);  (1974) and  (1987) four-way typology of


leadership styles for chief executives of state owned enterprises (SOEs) analysing the behaviour


of public service managers suggest the possibility of many contextual and behavioural leadership


models  (1995) in a study involving more than 250 senior Trust and health


authority executives, analysed the impact of the external environment and external relationships


in the NHS. One major barrier to personal effectives amongst the respondents was the degree of


control of their external circumstances. Ferlie and Pettigrew (1996) have commented about the


use of a networking approach in the NHS. Leading in the NHS, A Practical Guide (1993)


emphasises that although the need for external leadership has always existed in the NHS it


has become even more important, essentially for the post-1990 emphasis on consumerism; and


due to the changes to health services having to be explained successfully to an increasingly


knowledgeable public. More research is thus needed to explain the context in which leaders


operate in such a complex environment to influence their behaviours.


The implications for a leadership style in a network based approach have been studied by


(1990) who argues that the performance of leaders in a network will depend upon their influence,


contacts and the extent of their position within that network. In networks which are based on


authority, information tends to flow from people who are in position of authority to their


subordinates and in networks based on information, the information flows primarily upwards


from those who provide it to those collecting it for making decisions ( 2000). This


leads to potential conflicts in hierarchical organisations like the health services to make an


effective response since key policy information is disseminated by government to the majority of


key players at the same time presenting further problems of policy implementation and managing


change locally. The next section analyses the relative efforts of the ambulance services in


developing strong inter-organisational relationships in the NHS network which in turn, has a


direct bearing on their performance requirements and targets.



Network based leadership and ambulance services


The ambulance service is the first point of access for a wide variety of health problems. Unlike


other sectors (Acute Trusts, Primary Care Trusts and Specialist Trusts) within the NHS, there is


little evidence of detailed research into how the ambulance service carries out its operations and


their relative contribution within the wider health economy. They are still considered as only a


patient transport service answering to 999 emergency calls. However, with an expenditure of


£760 million on emergency ambulance services alone in 2003-04 and not taking into account the


expenditure on ambulance trusts, their contribution is quite significant ( 2005).


The lack of integration of the ambulance services with the emergency care network within the


NHS was highlighted in a review of ambulance services carried out by the University of


Sheffield (2000). The study argued the need of the ambulance


service to change the perception of being seen as the health care arm of the emergency services


rather than the emergency arm of the healthcare services in future. This would require, the study


argued “developing close partnerships in managed care networks with other emergency and first


contact care services within the wider NHS” (p. 4). Another review (2004)


 concluded that there was a need to fund ambulance services as healthcare


providers and not just as transport providers (). A ten year strategy,


Reforming Emergency

Care


( 2001) emphasised the importance of a changed approach to emergency health care.

Taking Healthcare to the Patient, the national ambulance review ( 2005a) lists the need for


developing enhanced partnership and team work with other NHS organisations as one of the four


key challenges for the ambulance services for a better service delivery and call for greater


investment and level of attention on leadership and organisational management. It strongly


argues for improving leadership with ambulance service in order to match the organisational


structure and styles with that of the new models of care being developed. One of its key


recommendations for the ambulance service is to be “led in a way that promotes collaboration,


builds networks and encourages management and staff development both within the organisation


and across the local health and social care community”


One implication of this peripheral role the ambulance service play in the NHS network is the


general perception that they have not been funded as well as the other sectors of the health


service. With an annual rise in demand by 6-7%, there is a greater need to address the way their


services are commissioned ( 2005). Coupled with the relatively peripheral position of


ambulance services within the wider NHS network affecting better coordination with other parts


of the NHS and other emergency services, leaders in ambulance services face a greater challenge


than any other NHS organisation in dealing with internal changes within their organisation due to


several reasons. Frontline staff is based on stations which are scattered over a large geographical


area away from the headquarters and mostly work without direct supervision. This makes


communication difficult within the ambulance service. Often there are no medical or nursing


professionals within ambulance services. There are also cultural differences especially between


the three staff groups-the crews, control room staff and the managers ( 1998).


The different nature of work of these three groups put different pressures on each group which in


turn have implications for effective leadership and performance management.


Response time performance has been used as an indicator of ambulance service quality for many


years. Standards for performance have been in place in England since 1974 after the ambulance


services were integrated into the NHS. Following a review ( 1996) these standards(2001)


specify that 75% of category ‘A’ calls (life threatening) should be responded


to within 8 minutes and 95% of Category ‘B’ calls (serious but not life threatening) within 14


minutes. Although the workload for any particular day or hour is roughly predicted based on the


IT systems used, the exact level can never be known in advance. This requires staff to be


constantly vigilant and prepared. For each patient journey performed, the ambulance crew goes


through a sequence of tasks, ‘the job cycle’ which involves mobilising the vehicle; driving to the


scène; assistance given at scene; transporting patient to hospital and time taken at the hospital


(1998). The average length of the job cycle is under an hour (about 56


minutes). In its study, the Commission also found that the average time at the scene varied


between different services visited by three minutes, and the time at the hospital by six minutes. It


concluded that a reduction of three minutes in either component can increase productivity by 5 %


Performance of an ambulance service will improve if the cycle is completed more quickly and


the crew become available for the next call. This will require better co-ordination with the other


sectors in the NHS. There are issues regarding the handover of patients at the Accident and


Emergency (A&E) departments. Often ambulance crews are seen waiting outside the A&E


departments unable to respond to other calls. This is sometimes due to the need of the A&E


departments to achieve their own target that no patient should wait for more than four hours from


arrival in A&E to admission, transfer or discharge ( 2003).


This example illustrates how performance requirements for one service and lack of central


leadership role of the ambulance services in the NHS network by implication, works against


good cooperation between different services within the health economy. Ambulance services can


actively contribute to improve services. For instance, with proper training and equipments, the


crew can take appropriate cardiac arrest patients directly to coronary care units reducing pressure


on the A&E departments (1998). The next section details the evidence from


the research as to how the peripheral position of the ambulance service within the NHS can


adversely affect its own performance and put pressure on the organisation.



Research Findings


This paper has argued the importance of a network based leadership approach in the NHS by


examining the position of the ambulance service within the wider health economy through


evidence gathered from one NHS ambulance trust in England. The one issue identified for


discussion in the paper pertains to ‘hospital closures’ in the NHS in England which has important


implications for performance of ambulance services and also reveals their relative position


within the wider NHS network.


In an interview to the  ( 2006) , Chief Executive of the NHS


revealed that there would be up to 60 “reconfigurations” of NHS services, affecting every


strategic health authority in the land. He admitted that some changes were to squeeze out


overcapacity that contributed to the NHS’s £512m deficit in the last financial year. He also


identified A&E departments, paediatrics and maternity services as areas where provision would


have to be overhauled.


This decision of the government has major implications for ambulance services in terms of their


job cycle and can seriously undermine their performance targets. The average job cycle times for


ambulance services have been discussed in section 3. It’s important for ambulance crews to


complete their job cycle in time and be available for the next job. Additional travel time to


relocated A&Es or delay in transferring the patients there would further delay the crews with one


job. As stated by an executive director of the Delta trust:



I think the hospital issue about reconfiguration is a really serious one because even if you look at


the hospitals that have reconfigured already, they can be actually furthest from all previous


hospitals. A further problem in one of the A & E units – they ask us to not take into their units.


It’s not seen as a hospital diversion because it’s within a hospital in that it’s all completely


separate sites.


Well that increases the travel time which means their availability for 999s back

in the job cycle they have come from is obviously reduced (emphasis added).



Executive Director 1


Different commissioning arrangements with the local hospitals existed for ambulance services


prior to their merger in July 2006. The reorganization of the ambulance services means that they


now serve large geographical area and have to renegotiate commissioning contracts with their


local hospitals, through a lead commissioner ( PCT) appointed by the Strategic Health Authority.


The performance of ambulance services can also be affected due to peculiar commissioning


arrangements.


Unless the Commissioners and us and the hospitals can all start to agree that actually we need


to rethink the way we commission ambulance services, because ideally what you should do in


these circumstances is change the commissioning base so that actually they commission the three


999 service separately to the transfer service, separately to core handling and you actually


separate it out.


Executive Director 2


Coupled with this fact, there is also a general impression that the ambulance services have not


been consulted over the issue and will have to face the consequences, political and financial, for


not meeting their targets. Views of another senior executive were more critical


:

There’s always a great load of talk about silo working isn’t there? But the people who silo work


the most are the Government. I think fundamentally they don’t care because the agenda which is


driving that is a political one; it is not a clinical agenda. You have to understand why do they


want to close hospitals?


Executive Director 3



From a financial viewpoint, longer journeys will increase job cycle times which will further


mean increase in the reference costs for the organisation. Apart from having a bearing on


organisational performance, this issue can have some legal implications not only for the


ambulance services, but also for the wider NHS. As stated by another senior executive:


The hospital closures mean that we have to take more clinical risks then we would have to. For


example there is a danger of more babies being born at the back of the ambulance. Paramedics


are not trained midwifes. If you look at the history of the NHS litigation authority and the way


they assess risk, maternity services have a big chunk of those cases.


Executive Director 4


The lack of integration of the ambulance services with the emergency care network within the


NHS has already been highlighted been mentioned in the paper. The above findings confirm that


position of ambulance services within the wider NHS and their relative lack of ability to


influence events which have important implications for meeting their performance targets within


that network. As admitted by another executive member of the board:


Delivering that change is going to depend on our interactions with the rest of the health economy


in particular and how much we can persuade them that they should invest in us, at the speed


necessary to deliver the change. Because one of the challenges in the NHS is actually giving the


investment in your service so that you can deliver the change within the time frames you’ve been


given and if it involves education, generally speaking the time frames are too long.


Executive Director 5


His further comments reflect the frustration and the reality of the lack of integration of the


ambulance trust within the wider NHS network:


They understand that emergency departments are unregulated front doors and that if you can


close them, you can then put in systems to regulate the front door. What they are trying to do is


put the responsibility for regulating not only the clinical care but also the finances of clinical


care within HMO’s (Health Maintenance Organisations) which over here will be practice-based


commissioners. They don’t want to hear what we have to say that it will cost you more money if


you do that. So I am not at all surprised that we are not being consulted.


Executive Director 5


Admission of a peripheral leadership role and poor coordination amongst different organisations


within the wider NHS came from another Executive Director:


What’s really important actually is what happens at the end, you know what difference it made


because that trauma patient that we took in that had their leg amputated in the


road traffic accident and how much time did you save them being in hospital by what you did to


reduce their in-stay by 2 weeks, 2 days, 2 hours, whatever. No idea.


Executive Director 6


The case for a more central leadership role in the network was further echoed by another


executive of the trust in order to change the perception about ambulance services within the


wider health economy:



Ambulance services did not get even an invite earlier when key decisions were made. But now if


there is even a whiff of any service redesign or restructuring, we are there and shouting.


Ambulances were low down in the chain in the NHS. However in public perception, we are at the


top and people love us. Any change or perceived threat to ambulance service is front page news.



The message is quite clear in my area; ignore us at your peril (emphasis added).


Executive Director 7



Similar views were expressed by some of the non exclusive members of the trust. One member


argued for a more proactive role for the ambulance services in order to pull its might to apply for


funds to the Strategic Health Authorities (SHA) or the government:


I would like to see the ambulance services being part of discussions at the top level. Unless they


(ambulance) engage with the health economy, patients would not get full benefits.


Non Executive Director1


Need for better coordination with the PCTs who commission the services of the ambulance trusts


was also highlighted by another senior executive of the trust who held the view that one needs


to understand each other’s service objectives within the whole system :


Ambulance services have a very particular culture and they need to have to be more sensitive to


the commissioner agenda and the wider NHS agenda. It seems to me that you either got to bring


people in with that perspective in the short term but in long term, you also got to reach out and


get people engaged to the wider NHS. In my perspective, what we need is a whole system’s


approach.


Executive Director 2


Evidence from the research also suggests that there is a lack of understanding and appreciation of


how the ambulance services carry out their functions on part of the Commissioners (who fund


the activity of the ambulance services). An executive report to the recent Delta trust board


meeting raised concerns around hesitation on the part of Commissioners towards funding a new


national target and still considering it as part of the internal modernisation agenda of the


ambulance services. The above findings point out to the relative peripheral position of


ambulance services within the wider NHS. This puts greater emphasis on the role of the external


environment in implementing any change programme and dealing with national policies and


performance target regimes. Given the increasingly complex, multi-sectoral and a collaborative


approach to health care management within the NHS, there is an urgent need to understand the


role and influence of inter-organisational networks both within and beyond health care


organisations ( 2006).



Discussion and Conclusion



The NHS context is a challenging one in which leaders in health and social care are constantly


tackling a major change agenda. Many of their organisations within the NHS such as PCTs,


Strategic Health Authorities (SHAs) Care Trusts and Foundation Trusts, are relatively new


institutions having to work effectively across complex health and social care systems, raising


standards and redesigning services to improve the quality of the patients’ experience (2002)


. New relationships are being established with the public and service users in order to meet


the growing expectation of patient choice. Reflecting on this complexity, the NHS Leadership


Qualities Framework provides NHS staff with a means of analysing their leadership roles and


responsibilities within this dynamic environment.



Achievement of the four hour total waiting time for the patients in the A&Es is a key


performance requirement both for Primary Care Trusts (PCTs) and acute trusts. This joint


responsibility also highlights the necessity of a ‘whole systems approach’ in the NHS network


which includes the local ambulance trusts. The NHS standard is 100% with a performance


requirement that at least 98% of all patients spend 4 hours or less in A&Es (2004)


 Delay in the turn around time of the ambulance services has been discussed


earlier in the paper and ambulance services still experience significant delays at A&E


departments which diminishes their own efficiency. It is increasingly being acknowledged that


ambulance trusts can make an important contribution to the performance requirements of the 4-


hour performance time requirement for the Primary Care Trusts (PCTs) and the Acute Trusts


(2004). Talking to the ambulance crews and travelling with them


as observer confirms this aspect and their visible frustration in not being able to be released for


their next job. The issue of hospital closures have further affected the job cycle times for the


ambulance services. A more central leadership role within the wider NHS network will further


help the ambulance services to address such important issues with other healthcare providers and


will result in better coordination and planning. This will in turn help them to meet their own


performance requirements by ensuring these delays are eliminated. The relationship between


management of change process, leadership and organisational performance thus remains an


important one and needs to be further researched (2001).


Evidence from the research confirms the view discussed earlier in the paper that there is a


widespread agreement amongst the staff of the ambulance service to be seen as an integral part


of the NHS network rather than being viewed as healthcare arm of the emergency services. The


need for better cooperation and sharing of resources is acknowledged by the Chief Executive of


the trust and other senior executive and non-executive board members. This view is further


reinforced during the interviews with frontline operational staff and middle mangers, most of


whom share a vision of developing a clinically skilled ambulance service which is well


integrated within the complex NHS network. By implication, ambulance services will need to


play a more central leadership role within the NHS network. Close partnerships with other


emergency and other healthcare services will enable the ambulance services to quickly develop


their role within the NHS network in enhancing their clinical skills and carrying out their tasks


more efficiently with improved planning and coordination. The merger of ambulance services


from 31 services to 11 in England from July 2006 and the various recommendations for effective


leadership and modernisation as set out in ‘Taking Healthcare to the Patient’ (2005a)


provide an opportunity for ambulance services to play this much needed bigger role.


This is not to suggest that the position of the ambulance service has not changed. There are


growing number of instances suggesting that senior managers from other NHS services are


beginning to come into the ambulance services and there is a growing movement of paramedics


and nurses in different sectors of the NHS. Four out of five non-executive directors of the Delta


trust come from a non-ambulance background either from other public services or have worked


elsewhere in the NHS. One executive director who comes from a commissioning background is


working in the ambulance service for the first time. These developments along with other


initiatives like investment in technology and increase in strategic capacity will encourage greater


collaboration between the ambulance services and other healthcare providers within the wider


NHS and will enable them to occupy a more central role within the NHS network and develop


better and strong team leadership. Future research can broaden our understanding of the


contribution of networks and networking literature in defining and explaining leadership(2006)



Conclusion


Though the internal leadership of healthcare institutions will remain important, (2000)


argues that health service leadership in future will require much more than traditional networking


with other organisations and groups and will need to focus on developing and securing external


agreement to an agenda for positive change, turning the apparent constraints of the external


environment, determined primarily by government policies, into opportunities. Most of the early


theories on leadership were written during relative stable times but modern world is complex and


public leadership is much more complex phenomenon than the private sector ( 2006).


Further research will help us answer some of the issues raised here and our understanding of the


complexity of leadership and performance in the public sector. As the opening quote suggests,


effective leadership has and will remain an important factor to make a difference both to the


NHS organisations and ultimately to the patients.




Credit:ivythesis.typepad.com


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