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Operational Efficiency Programme (OEP)

The Operational Efficiency Programme (OEP) was launched by the Chief Secretary to the Treasury in July 2008 to further the Government’s objective of optimising efficiency and identifying savings across the public sector.The programme examined five key strands of operational expenditure within the public sector. One of these is the Asset Management and Sales strand which is led by Gerry Grimstone, Chair of Standard Life, and is being project managed by the Shareholder Executive in a joint assignment with HM Treasury.

The 2008 Pre Budget Report announced nine assets to be included within the OEP of which five were already in the Shareholder Executive portfolio. Studies have been led by the Shareholder Executive for each of these assets, working on a collaborative basis with management, the relevant Government departments and HM Treasury. The studies have focused on ways of increasing efficiency in asset management, on opportunities to enhance commercialisation and, where appropriate, on identifying alternatives to public ownership.

The 2009 Budget reported the initial findings on the nine assets and identified a further 11 assets which have been added to the list.The next phase of the programme will focus on the implementation of the initial findings and on developing a rolling programme to identify new assets. An update on progress will be provided at the 2009 Pre-Budget Report.

The OEP asset studies have succeeded in adding momentum and direction to the challenge of improving the management of a wide range of public sector assets, helping change mindsets and ensuring that a more commercialised approach is applied throughout.