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Paul Lodge, Chief Data Officer, Department for Work and Pensions

What has been your path to power?

 

My career has always been focused on the use of evidence-based decision making, from my early career developing operational analysis in the Army which led to my first civilian role using statistical process control in the insurance services sector. This enabled me to develop my technical data and analysis skills in preparation for a move to Accenture which provided the opportunity to develop a really deep technical skillset.

 

During my eight years at Accenture, I worked up through the development of database schemas for SAP materials management to the cleansing and migration of over 60m unique taxpayer records at HMRC as part of the Modernising PAYE Processing for Customers programme. During this time I was also able to undertake more experimental data and analytics work in the medical imaging sector which allowed us to identify the root causes of relatively high cancer mortality rates in Brazil.

 

In 2012 I moved on from Accenture into increasingly sophisticated data programmes at Detica and the Home Office, during which time I was responsible for developing social media analytics, biometric analysis and more traditional data warehouse design and build. This led to a fascinating opportunity at the National Crime Agency to build the data and analytics capability required to implement the National Cyber Security Programme.

 

In March 2017 I was fortunate to be appointed as chief data officer for the Department for Work and Pensions (DWP). The scope of this role is awesome – I have a team of 685 data engineers, data managers, data scientists, statisticians and software developers who are responsible for one of the largest datasets in Europe and for ensuring that we are able to support over 22m UK citizens in times of need.

 

The consistent theme throughout my career to date has been the use of data and evidence to create insight in support of UK citizens, which is something that I am very proud of.

What impact has the pandemic had on the role of data in your company/organisation?

 

The pandemic has had a huge impact on the role of data in DWP, and public service delivery more widely. Prior to the pandemic, data in DWP was, to a greater extent, a rear-view mirror – looking back at how we had been performing in relation to a very stable labour market and operational service delivery.

 

The immediate effect of the first lockdown was for the organisation to ask two key questions: how many citizens will become unemployed; how can we configure our operations to react? This provided the impetus for DWP data to innovate leading products at an incredible pace. This included digital twins and process mining to understand productivity; advanced analytics for in-flight fraud detection; leading edge customer experience analytics to improve how we serve; dynamic models of the UK labour market down to local level; operational service analytics capabilities to drive a culture of inquisitiveness and trust in data; development, in collaboration with the Alan Turing Institute, of the first-of-type operational data trust; and advances in the exploration of synthetic data.

 

This has pushed the influence of data up to the highest level in DWP and has provided the opportunity to invest in the underlying data architecture in a way that will set us up for the next evolution.

Does data now have a seat at the table during strategic discussions? If not, what will it take to get it there?

 

As a result of both the pandemic and longer-term stakeholder engagement across the organisation, data does now have a place in all strategic discussions in DWP. The tipping point was a simple question at the start of the first Lockdown when around 30,000 DWP colleagues were unable to come to work: where are our people?

 

This could only be answered by bringing together data that had never been leveraged before to build a picture of how DWP was adapting to having to flip from working in the office to working remotely.

 

The other key question was: who will become unemployed next? This has proven the effectiveness of advanced operational analytics. All of this has led to full support to a comprehensive investment in underlying data architecture and an organisation-wide data review to establish how to ensure DWP leverages data and insight better.

 

What are your key areas of focus for data and analytics in 2022?

 

We have three focus areas this year: the labour market, fraud and error reduction and service modernisation.

 

The UK labour market is very buoyant at the moment, but there are structural mismatches in relation to jobs and skills, and between places which mean that it is hard for some people to find work and for the economy to achieve its potential. We are using data to understand these dynamics and empower our work coaches to provide better advice to the people that need our support. At the same time, we are using data to better engage with employers and partners in government to address the root causes of the jobs/skills gap.

 

Fraud in the benefits system increased as a result of the temporary cessation of in-person identity verification checks. These are now back in place, however we learned a lot about transaction risking and in-flight fraud detection during the pandemic that we are now scaling.

 

Service modernisation is a DWP-wide programme to improve how we serve the 22m citizens that come to us for help every year and reduce our cost base. This programme includes rebuilding the data architecture for DWP and moving to a fully citizen-centric, events-based data architecture and a move to fully cloud-based analytics in order to drive improved business outcomes through meaningful customer segmentation and personalisation.

 

These three priorities represent a genuine inflection point in the maturation of data usage in DWP and the wider social welfare ecosystem in the UK.

 

Tell us what leadership means to you in the context of your role as a senior data leader.

 

I have always thought of leadership in three dimensions, and I think these still apply as a senior data leader.

 

I am responsible for a team of 685 data professionals in DWP, plus 300 partner colleagues, and therefore my first responsibility is as a people leader. Our data people deliver critical services to extremely vulnerable people and we need to work as a team and grow and develop together.

 

I am accountable for a wide range of data live services that are part of the fabric of UK society, such as supporting all of DWP benefit provision, eligibility checking for NHS free prescriptions, the Warm Homes Discount Scheme and the UK electoral roll. This requires strong operational leadership and a grip of the fundamentals of operational data.

 

As a senior data leader I also provide thought leadership and set the vision on how data can drive improved outcomes for citizens and for DWP. This leadership dimension requires deep technical understanding of the value of data and, critically as the most senior data leader in an organisation, how that connects with the operating context of the organisation and its customers.

What key skills or attributes do you consider have contributed to your success in this role?

 

A passion for exploring how people make decisions has been what has driven me along this path and has enabled me to contribute to how DWP has supported citizens over the last five years. The other attribute that has helped is the ability to translate the complexity of our data world into concepts that colleagues in other areas of expertise, such as operations, people and finance, can connect with.

 

How did you develop – and continue to develop – these skills or attributes?

 

I started to develop these skills very early in my career as an Army officer. Part of my role was to interpret what I was observing, to translate that into an assessment and make recommendations on courses of action. I have continued to develop these skills through a mix of formal training and education, self-paced learning and through doing.

 

Two particularly helpful development opportunities at the moment are community based. We have a vibrant data practice within DWP that is constantly exploring new approaches and technologies, and there is a growing CDO community where knowledge exchange is critical to developing deeper skills and learning about what works, and what doesn’t.

Is the data tech you have keeping pace with your goals and requirements? Are your providers leading or lagging behind your demands?

 

DWP has a long-established heritage data estate that comes with the same challenges that any organisation has when transitioning to cloud-based data architectures. We are fortunate in that we have the organisation’s full support in this endeavour. In addition, we have been working with partners that have understood our starting point and where we need to get to. As a result, we have co-created an approach to a data ecosystem that works in our context.

 

The two key challenges to pace remain constant. Our pace is limited by capacity, and we are seeing this in our partners as much as we see it internally. We also need to ensure that the wider organisation is ready to move in step.

Paul Lodge
has been included in:
  • 100 Brands 2019 (EMEA)
  • 100 Brands 2021 (EMEA)
  • 100 Brands 2022 (EMEA)

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