Better Business Models Katharine Davidson Executive Director, Strategy & Management Information...
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Better Business Models Katharine Davidson Executive Director, Strategy & Management Information Efficiency and Reform Group , Cabinet Office 21 November 2011
Transcript of Better Business Models Katharine Davidson Executive Director, Strategy & Management Information...
Better Business Models
Katharine DavidsonExecutive Director, Strategy & Management Information
Efficiency and Reform Group , Cabinet Office21 November 2011
What are better business models?
HMG ownedIn House
OutsourcedPrivate owned
Service contractPrivatise
Member ownedHMG/Member
ownedHMG/
Member/JV owned
Each model has pros and cons, but overall we are agnostic. Pragmatic judgement on merits, though understandably there’s interest in
mutual principles
How do they support HMG Goals?
Growth
Deficit Reduction
TransparencyHMG Goals
Efficiency and Reform Agenda
Reform
Efficiency
Digital
Open Public Services
Better Business Models
Aggregate Procurement
Supplier Management
Spend Controls
Employees
External partner
Mutual principles
Taxpayers
• Greater engagement• Ownership stake• Freedom to innovate & improve citizen services
• Greater engagement• Ownership stake• Freedom to innovate & improve citizen services
• Opportunity to grow through provision of capital or expertise
• Opportunity to grow through provision of capital or expertise
• Better value• Better service post-deal• Ownership stake protects taxpayer• Hedge poor initial contracts
• Better value• Better service post-deal• Ownership stake protects taxpayer• Hedge poor initial contracts
+ Support SR reductions with at least 34% cost reduction+ High quality services enabled by private sector investment of capital and expertise
+ Community benefit unlocked to ensure local people benefit+ Performance Management rigour + Service & Incentive culture
+ Support SR reductions with at least 34% cost reduction+ High quality services enabled by private sector investment of capital and expertise
+ Community benefit unlocked to ensure local people benefit+ Performance Management rigour + Service & Incentive culture
“Mutuals” offer attractive benefits:
Better Business Models
• Agnostic about types of models. • Diversity of providers.• Create new companies.• Greater transparency.
Efficiency• Business Models must lower
Costs
Growth
• Create new companies
•Unlock barriers to growth
Reform
•Approach with zero-base mentality
• Transformational • Close Productivity Gap
Better Business Models
Rallying Cry: Where Next?
Our next steps for early 2012:
• Recruit head of Commercial team• Complete Phase 1: MyCSP• Develop Phase II pipeline with industry• Create forum for pro-active industry engagement
What can you do?
• Find out more at one of the breakout sessions today• Develop specific ideas and share them with us• Offer us frank feedback on the policy & execution
Better Business Models
Katharine DavidsonExecutive Director, Strategy & Management Information
Efficiency and Reform Group , Cabinet Office21 November 2011
