Better Business Models Katharine Davidson Executive Director, Strategy & Management Information...
Transcript of Better Business Models Katharine Davidson Executive Director, Strategy & Management Information...
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Better Business Models
Katharine DavidsonExecutive Director, Strategy & Management Information
Efficiency and Reform Group , Cabinet Office21 November 2011
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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
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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
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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:
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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
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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
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Better Business Models
Katharine DavidsonExecutive Director, Strategy & Management Information
Efficiency and Reform Group , Cabinet Office21 November 2011