Listen to part two of Bruce Scott's podcast: Coalition government: management advice for Cameron and Clegg
Bruce Scott on the first cornerstone of establishing an effective working relationship, whether in the boardroom or in the Cabinet...
"The first requirement of a company, of a board, is to have a shared vision of where they’re trying to take things.
"David Cameron hoped he’d get into government with an outright majority and he has his vision, while the Lib Dems have their vision. Now the question is whether this government really has a shared vision of where they’re trying to take things."
On the second stage: having a plan...
"If you know where you’re going, then you need to have a plan to get you there, and planning has not been a high point of any government in the past.
If you look at the £170bn deficit, it’s crucial they have an accurate measurement of performance, that they can see trends and act accordingly
"It’s not a naturally British trait to plan things. In fact there has been a lot of criticism recently that our failure to plan has caused us to be in a position financially we should not be in if we had seen it coming.
"If the coalition has a clear vision, do they have a plan to deliver it?"
On the third stage of establishing a way forward: implementing the plan...
"The third question we ask in business is, assuming they’ve got a plan, does the management team, the senior team – or the Cabinet, Prime Minister, etc – do they have the individual and collective competence to deliver that plan?
"And that’s where we’re right into people’s soft skills. And of course that very much applies to this government.
"Only time is going to tell whether they are gelling as a team and whether individually and collectively they have the competence to deliver what they say they’re going to deliver."
On the final cornerstone of a successful management team: assessing performance...
"And finally, do they have the accurate and sufficient measurement systems in place to tell them how they’re doing? For example, if you look at the £170bn deficit, it’s crucial they have an accurate measurement of performance, that they can see trends and act accordingly.
"And if it’s a positive trend, can they exploit it, and if it’s a negative trend, can they take action quickly to avoid negative results?
"These four things that work in business work in government as well: a clear vision, a clear plan, competence to deliver and measurement."
On why compromise is sometimes essential to make progress and does not mean you're sacrificing your principles...
"In business, as in politics, we all adopt our own agenda, until we come to a point where compromise becomes necessary to go forward. Because if you hold onto everything you believe in, you can’t go forward – and that’s the position that David Cameron found himself in.
"People might say that by joining with the Liberal Democrats he’s ditching cherished views of the Tory Party – that’s not true. All he’s done is put these things on the backburner, as indeed Nick Clegg has."
On Cameron's strategy to meld together The Tories and the Liberals...
"The front bench seems to be settling down. Vince Cable, the other man who thinks he knows where the economy should go, is in the department taking the biggest cuts of any government department in the first round.
"It’s a very interesting strategy, and one which I think is guaranteed in one way to cement the relationship with the Lib Dems but will actually inflame a lot of Tories, particularly on the Right of the party.
"Because what David Cameron has done is take a middle of the road approach, which will marginalise the right wing of the Tory Party and to some extent defuse the left wing of the Lib Dems, and he's tried to pool the best of the centre ground."
On whether the coalition can work effectively and stay the course...
"Now the test is whether he can get that team to work cohesively together. I think he will in the Cabinet.
"The test will come from the backbenches. The Tories are not good in opposition, but when it comes to being in opposition to your own government, I think that sparks will fly and David Cameron is going to be tested to the limit.
"That’s why you have to plan and think of all the scenarios that might happen. So unless Cameron and Clegg get their heads together and see in advance where the possible trouble spots are going to be, and establish strategies to deal with them, they’re going to struggle."
On the importance of having contingency plans...
"In business it’s exactly the same; it’s called scenario planning, just trying to assess what’s going to happen down the road. You don’t just need a plan B, you need a plan C as well.
"Everybody talks about a plan B, and that’s fine – what would happen if... But what happens if that didn’t work either? What would you do next? That plan C is often lacking as well.
"I don’t have plan Ds because that stands for disaster. But Plans A, B and C is a better way forward in business than having no plan at all."
Listen to part two of Bruce Scott's podcast: Coalition government: management advice for Cameron and Clegg
