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Developing Commercialism in County Councils

Developing Commercialism in County Councils. Jonathan Flowers Local Government Market Director, Capita plc & Director, Veredus. Shape of this session. Setting the Scene - Capita Thinking about commercialism Sharing survey results. Example – Staffordshire CC A living example.

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Developing Commercialism in County Councils

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  1. Developing Commercialism in County Councils Jonathan Flowers Local Government Market Director, Capita plc & Director, Veredus

  2. Shape of this session • Setting the Scene - Capita • Thinking about commercialism • Sharing survey results • Example – Staffordshire CC • A living example

  3. This session is about • OUTSOURCING • Starting a conversation about the possible roles of commercialism

  4. Last year’s survey ... • Effective longer term measures to combat Austerity… • 62% said Council commercialism would be an effective measure… • 64% this year…

  5. How important is significantly increased commercialism likely to be? Base: 86 (all respondents, CCN/Capita survey of CCN member councils),30 September-3 November 2013

  6. Commercialism is a (possible) means to an end... And means different things to different people Commercialism OUTCOMES • Make money to spend on priorities • Change culture – more “business-like” • Support “Commissioning Council” • Become more business friendly

  7. Importance of potential reasons for wanting greater commercialism (amongst those councils that did want it) • Make money to spend on priorities • Change culture – more “business-like” • Support “Commissioning Council” • Become more business friendly 73% 84% 90% 74% “Very” or “fairly” important scores

  8. What might “Council Commercialism” achieve? • 1. Make profits with which to fund/protect services or keep council tax down Customers Products/Services

  9. What might “Council Commercialism” achieve? • 1. Make profits with which to fund/protect services or keep council tax down Customers Products/Services

  10. What might “Council Commercialism” achieve? • 1. Make profits with which to fund/protect services or keep council tax down • Key questions: • Are you prepared to invest to compete (and risk losing)? • Do you have information you need (eg, pricing information)? • Will you grow your own or buy it in? • Will you actively develop your “equity” in businesses? Exit plan? • Are you willing to compete with local business? Or other councils?

  11. What might “Council Commercialism” achieve? • A change in culture • Typically very popular with those who also have private sector experience • Many positive attributes actually stem from Competition • ... But Local Authority cultures and processes fit a council as • a local monopoly provider of • essential services • publicly funded • politically rationed • democratically accountable

  12. What might “Council Commercialism” achieve? • A change in culture • Key considerations: • Councils are different • Your staff have dormant commercial skills • You will have to make fundamental change to let it out • Pros and cons of arms-length...

  13. Ways of achieving greater commercialism – the top 5 “already done” Base: 65 (all respondents who rated their council’s/authority’s capacity to become more commercial in the future), CCN/Capita survey of CCN member councils, 30 Sept-3 Nov 2013

  14. Ways of achieving greater commercialism – a significant work programme Base: 65 (all respondents who rated their council’s/authority’s capacity to become more commercial in the future), CCN/Capita survey of CCN member councils, 30 Sept-3 Nov 2013

  15. What might “Council Commercialism” achieve? • 3. A key ingredient of becoming a Commissioning Council • Provider side • Most obvious need to be commercial • Understanding how to grow, diversify, compete, stay relevant • Commissioner side • Think creatively and entrepreneurially • Intervene skilfully to create new options • Get the best out of suppliers • Structure interventions for wider benefit

  16. Would you say that you are a commissioning council? 42% 15% Base: 86 (all respondents, CCN/Capita survey of CCN member councils), 30 September-3 November 2013

  17. What might “Council Commercialism” achieve? • 4. Better support to local business • A better appreciation of what it means to be commercial is bound to help a council support its place to do business... • Unfamiliar pressures • Cashflow • Bid costs • Ongoing customer acquisition • Strategic self-assessment • Quick decisions • Cluster effects of complementary businesses • ... And places are in competition too

  18. Summary Commercialism OUTCOMES • Each authority will make its own form • of “commercialism” (or not) • This is a “work in progress” for all of us • Let’s continue the conversation ... • Make money to spend on priorities • Change culture – more “business-like” • Support “Commissioning Council” • Become more business friendly

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