Post on 20-Aug-2015
Economies of CollaborationBenefits and challenges for VCSE collaboration in bidding for public
sector contracts
Eoin Heffernan
Chief Operating Officer 3SCTrustee Royal Association for Deaf People (RAD)
What is 3SC?
Outsourcing trends and challenges
Commissioning context
Access to Work Wales Case Study
Economies of Collaboration
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Third Sector Consortia LLP (3SC)
3SC bids for and delivers public sector contacts through VCSE consortia
• Bid writing
• Financial modelling
• Solution design
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Third Sector Consortia LLP (3SC)
• Contract negotiation
• Administration, process, data security
• Performance management
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Third Sector Consortia LLP (3SC)
• Started June 2009
• Managing agent “only”
• Honest broker
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Third Sector Consortia LLP (3SC)
• Social enterprise
• Profit into capacity building VCSEs
• 3000 members
3SC // Outsourcing // Commissioning // Case Study // Collaboration
The amount spent on outsourcing services in the UK has doubled to £88bn since the coalition government came to power in 2010
Financial Times July 2014
3SC // Outsourcing // Commissioning // Case Study // Collaboration
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Trends
• Payment by Results (PbR) increasing
• Coalition Government pledged 25% of government spend to SMEs
• Outsourcing scandals (Atos, G4S and Serco) has increased value of practical third sector partnerships and social value creation
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Trends
• Sodexo public service pledge (March 15)
SME, VCSE, staff mutuals partnerships “first” Transparency of revenues Living wage 500 apprentices by end 2016 Equal pay for equal work
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Commissioning Drivers
• Reduced public money – more for less
• Need for efficiencies – reduced capacity in public sector
• Existing approaches not working
• ‘Open Public Services’ – open markets, competition
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Commissioning Wants
• Access to specialist, local expertise that adds and creates value
• Integrated services complementary with existing government and charitable provision
• Mixed and robust economy of provision bringing new ideas, innovation and a healthy VCSE
3SC // Outsourcing // Commissioning // Case Study // Collaboration
The best government programme you’ve never heard of …
Case StudyAccess to Work
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Innovation in Outsourcing award nomination 2012
Best Service award 2013-2014
3SC // Outsourcing // Commissioning // Case Study // Collaboration
3SC // Outsourcing // Commissioning // Case Study // Collaboration
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Bureaucracy
Reporting
Administration
Security Concerns
Storage
Assessments
3SC // Outsourcing // Commissioning // Case Study // Collaboration
We changed the market
Best quality serviceBest achievement against all KPI’sBest price per assessment for our consortium in the market
3SC // Outsourcing // Commissioning // Case Study // Collaboration
MARKET LEADER THROUGH EFFECTIVE CONSORTIUM WORKING
3SC // Outsourcing // Commissioning // Case Study // Collaboration
3SC // Outsourcing // Commissioning // Case Study // Collaboration
White-boarded with everyone in the marketLeveraged the strength of the third sector
Planned long term for customer focussed delivery
Takeaways
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Collaboration
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Consortia – Economies of Collaboration
• Shared delivery, shared risk
• Aggregate for scale
• Shared intelligence, context, learning
• Shared platforms, legal fees
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Collaboration is NOT consensus
• Requires leadership
• Honest broker role
• The best collaborations blur the boundaries of organisation
• Diversify perspectives
3SC // Outsourcing // Commissioning // Case Study // Collaboration
3SC // Outsourcing // Commissioning // Case Study // Collaboration
Eoin Heffernan Chief Operating Officer 3SCLinkedIn https://uk.linkedin.com/in/eoinheffernanmba/Twitter @eoin_heffernan