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Contracts – public sector, charities and corporates

Chris Naylor
@publicnaylor
About this presentation


Ground rules

Financial Context

Rational responses

Dangers, dreams and prospects
Ground Rules


I’m speaking in a personal capacity

For tweeters…I’m on the record, unless I
  say I’m not
Financial Context: Our problem is your
problem…..

   or, how a problem shared, isn’t a problem
                   solved….
Longest, deepest
The money has gone and its not coming
back…..
The money has gone and its not coming
back…..




               Source: Institute for Fiscal Studies
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
Rational responses: There is no easy
way of putting this…..

      or, how no one likes spending less
                  (ever)….
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
                                          !?
Dangers, dreams and prospects: its
going to be important to keep the faith

   or, how something quite rational can often
          appear completely irrational
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
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
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
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
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
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

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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