Alternative approaches to service delivery - how can we do things differently?

Alternative approaches to service deliveryHow can we do things differently?

Mark BandalliSenior Consultant, Mutual [email protected]

27th November 2014

mailto:[email protected]

http://www.mutualventures.co.uk/

Objectives

Identify & discuss the challenges currently facing Local

Authorities and the VCS

Outline the main alternative approaches to service delivery being

considered & implemented by LAs

Learn how these models work in practice

Suggest ways of ensuring VCS involvement in the planning and

delivery of services

2All rights reserved © Mutual Ventures Ltd 2014

Who are Mutual Ventures?


The challenges from a LA perspective


Several years of budget cuts has meant difficult decisions for all

Councils:

Reduced overall staff numbers, primarily back office

Found ways to deliver some services more efficiently

Cut some non-essential front line services to enable focus on priority services

Entered into new service delivery arrangements, often with private sector partners

Continued cuts are now a real threat to priority front line services –

Local Government budget is to be reduced by £193m (4.2%) during

15/16

The challenges from a LA perspective


Change around the margins won’t lead to the delivery of sustainable,

efficient and effective services

Most sustainable way to realise savings and maintain quality is to

radically rethink how services are delivered:

Push responsibility and accountability down to the front line

Effective involvement of VCS in the planning and delivery of services

Fundamental changes to behaviours and motivations of staff

Create culture of continuous improvement through small and ongoing adjustments

Challenges from a VCS perspective


Increasing competition for funds:

Reduced levels of funding (Gov/LA/charity)

Consistently high levels of competition for funding

LAs may enter into new service delivery arrangements, often with private sector partners

Increased expectations/demand for services currently delivered by the VCS – doing

more with less

Limitations associated with 3 year funding programme & dependence upon

grant/core funding

Difficulties associated with winning a contract for the first time

Difficult to develop new services to meet emerging need, stifling innovation and

collaborative working

Opportunities for the VCS


Pressure on LAs to increase service quality and work collaboratively with the VCS

LA responsibility to develop the market in specific sectors (e.g. Care Act)

Requirement for ADMs to commit to sub-contracting with local VCS providers

Ability for VCS agencies to develop consortia to respond to specific procurement

opportunities

VCS agencies required to tell a strong story about value, create new ways to

collaborate and rethink their business models

Contracting authorities can limit participation in a tender exercise for the award of

certain listed contracts, which include certain health, social and cultural services, to

VCS organisations and staff mutuals (Draft Regulation 77)

Share intelligence regarding upcoming opportunities

Proactively identify joint venture opportunities (VCS/non-VCS working together)

with LAs

Differing approaches to service delivery


Increasing number of LAs considering various alternative approaches

to service delivery via options appraisals

LAs are considering the desirability, feasibility and viability of a

number of options:

Keeping in-house & re-engineering

Local Authority Trading Companies

Public Service Mutuals

Integrated commissioning model

Outsourcing

Joint venture with public or private partners

Alternative Delivery Models


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Have left the public sector (also known as ‘spinning out’)

Continue to deliver public services

Employee control plays a significant role in their operation

Public sector mutuals are organisations which:

Business Models: Ownership / Governance:Legal Forms:

Public sector mutuals can take a range of different forms (not exhaustive):

1 2 3

Profit

Not-for-profit

Social Enterprise

Community Interest Companies

Industrial and Provident Societies

Distribution of nominal shares

Part or all equity ownership

Joint Ventures

What are Public Service Mutuals?

All rights reserved © Mutual Ventures Ltd 2014

There are several benefits frequently associated with the option to deliver public services through the mutual model:

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Why consider this model?

Sustainability1 Greater opportunities for a service to access alternative income

streams outside public sector ownership

Resilience

2 Ability to move quickly to meet the demands of users and

respond to changing market for public services

Improved outcomes3

Ability to respond more quickly to user needs and take decisions closer to the service user

Reduce red tape

4 Current policies and practices within the public sector may be perceived to reduce efficiency / effectiveness of service delivery

Specialisation

5 Employees may wish to become more specialised in their role

within the organisation

Innovation

6 Culture or risk adversity within the public sector may have stifled

creativity and restricted innovation to achieve outcomes

All rights reserved © Mutual Ventures Ltd 2014

A growing number of mutuals are being created across the country – with a wide geographical spread

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Emerging landscape

2010 2012 Cabinet Office estimate 140 will be operational

by April 2015

Mutuals are operating in a range of sectors, delivering services from the front line to the back office

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Example of PSM involving VCS

Adult education service based in SW England

Drivers for change include reduced SFA funding (CL and AS), risk to the

continued delivery of community learning opportunities across the city

& changing learner preferences

Group of staff requested permission to undertake a feasibility study to

test the desirability, viability and feasibility of establishing the service as

a PSM

Business plan identified the preference for the involvement of 2

community partners (both charities) – forming a ‘Community Joint

Venture’

Both partners share the service’s priority of promoting adult and

community learning

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Example of CJV involving VCS

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Example of CJV involving VCS

Board of Directors

Responsible for strategic management, direction

and review of performance

Financial Director

VCS rep (1ii)

Staff Director (1)

Staff Director (2)

VCS rep (1i)

Strategic Service

Manager

VCS rep (2i) VCS rep (2ii)

Non-Exec Director (1)

Learner Director

Learner Forum Staff Advisory GroupAdvisory Groups

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Benefits of ‘Community Joint Venture’

Sharing of ideas/learning & innovation

Lobbying/common voice on issues

Peer support/mentoring

Access to management that are used to competing for business

Joint bidding for work – agreement of a shared investment appraisal tool

Incubation of new organisations – smaller VCS agencies

Back office efficiency

Agreement re competition / conflict of interests

Available support from Mutual Ventures


Legal and governance support to establish formal/informal consortia

Support to develop and quality assure tender proposals and business

development concepts.

Support to help develop business plans, or audit existing business

plans;

Quick Guides to:

Public Service Mutuals;

Going for Growth;

Available via MV website (www.mutualventures.co.uk)

http://www.mutualventures.co.uk/

Available support


Wales Co-operative Centre - Enterprise Programme

Mutual Ventures, in partnership with the University of Wales, Trinity Saint

David, deliver support via this programme;

Designed to provide an overarching structure to support the Social

Business Sector in Wales;

Aim is to increase the number, sustainability and growth of new and

existing social businesses in Wales;

Required to demonstrate the ability to increase levels of employment,

while at least 50% of income needs to be realised via trading;

http://www.walescooperative.org/social-enterprises-and-co-operatives

http://www.walescooperative.org/social-enterprises-and-co-operatives


Q&A

Alternative approaches to service delivery - how can we do things differently?

Government & Nonprofit

Transcript of Alternative approaches to service delivery - how can we do things differently?