1A - Contracts – Public sector, charities & corporates - Chris Naylor
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The document discusses the financial context facing public sector, charities, and corporates, noting that funding has decreased significantly and is not expected to return. It outlines five rational responses to reduced funding: spending less on workforce, third parties, buildings, charging more, or stopping services. The document cautions that these responses carry dangers like reduced bandwidth, commercialization, and lack of personalization or localism. However, it maintains that change is necessary and proposes dreams of strategic partnerships and mutual endeavors to reduce costs through working with private sector partners.
1A - Contracts – Public sector, charities & corporates - Chris Naylor
- 1. Contracts – public sector, charities and corporates Chris Naylor @publicnaylor
- 2. About this presentation Ground rules Financial Context Rational responses Dangers, dreams and prospects
- 3. Ground Rules I’m speaking in a personal capacity For tweeters…I’m on the record, unless I say I’m not
- 4. Financial Context: Our problem is your problem….. or, how a problem shared, isn’t a problem solved….
- 6. The money has gone and its not coming back…..
- 7. The money has gone and its not coming back….. Source: Institute for Fiscal Studies
- 8. The money has gone and its not coming back….. Spending trends 2009-22 45000 40000 35000 30000 £ million 25000 20000 15000 10000 5000 0 2009- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- 10 15 16 17 18 19 2020 2021 22 Social services Environment including waste Other Source: Local Government Association
- 9. Rational responses: There is no easy way of putting this….. or, how no one likes spending less (ever)….
- 10. Rational responses There are only five ways to spend less money (net): Transformation Spend less on workforce !? Spend less with third parties Shared Spend less on buildings Services !? Charge more Optimise Target Operating Stop Model !?
- 11. Dangers, dreams and prospects: its going to be important to keep the faith or, how something quite rational can often appear completely irrational
- 12. Obvious dangers There are only five ways to spend less money (net): Spend less on workforce Spend less with third parties recommission Spend less on buildings rationalise Charge more Stop decommission
- 13. Less obvious dangers (1) Bandwidth There are only five ways to spend less money (net): Spend less on workforce Spend less with third parties Spend less on buildings Charge more Stop
- 14. Less obvious dangers (2) Commercialisation There are only five ways to spend less money (net): Spend less on workforce Spend less with third parties Spend less on buildings Charge more Stop
- 15. Less obvious dangers (3) Personalisation There are only five ways to spend less money (net): Spend less on workforce Spend less with third parties Spend less on buildings Charge more Stop
- 16. Less obvious dangers (4) Localism Localism: Has to e a good thing (shift in political governance from centre to local) So far, partial and inconsistent – e.g. ‘localisation’ of business rate v say ‘free schools’ So….promise and power don’t align Framework: strong, visible, accountable leadership V allowing a thousand flowers to bloom
- 17. Dreams and prospects No change is not an option: From contracting to Strategic Partnerships Mutual endeavour to reduce your cost base – work with us/private sector partner to do it? New politics of influence and control