Commissioning for public benefit

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Commissioning for public benefit

• Josh Ryan-Collins
• nef (the new economics foundation)
• DH Social Enterprise Conference
• 15th November 2007

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About nef

• Independent think and do tank
• Challenge mainstream thinking on procurement,
  regeneration and enterprise
• Sustainable Procurement
• Co-production
• Commissioning not for everyone
• Redefining efficiency public benefit model
• www.neweconomics.org

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A level playing field?
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Invest to Save Budget Camden

• HM Treasury/Cabinet Office ISB funding
• Sustainable Commissioning Model
• Tracks social return on public investment
• Outcomes gt outputs
• Six pilots mental health, Childrens services
  Supporting People
• Rethink efficiency savings and VfM

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Sustainable Commissioning outcomes framework
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Two ways of seeing value St James House
social firm
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Day Care Services pilot
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Outcomes of the tenderprocess

• Consortium of 3 medium-sized locally based 3rd
  sector providers
• Not cheapest
• Commitments to
• involve the wider community through use of
  volunteers
• Co-production - peer led support and education
  initiatives and time-banking
• Bulk buying of catering supplies from local
  sources
• Recycling, walking and cycling initiatives with
  service users and staff

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Measuring distance travelled
Outcomes Star
www.homelessoutcomes.org.uk
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Relating savings to outcomes star
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Challenges for commissioners

• Culture change - outcomes gt outputs
• Narrow interpretation of Gershon VfM
• Cashable v non-cashable
• Price gt whole life costing
• Silos - Information on budgets and budget holders
• Attribution
• Aggregation
• Attribution

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Challenges for providers

• Training and capacity building esp. for smaller
  3rd sector orgs
• Raise awareness of wider impacts
• Factoring in the value to the user, family and
  wider community
• Partnership
• with other providers - role of sub-contracting
  (second tier providers)/consortiums
• Co-production a trusting environment between
  commissioner, provider service user

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Next steps

• Pilot savings model and further pilots of model
• Audit Commission Comprehensive Area Agreement
• OTS commissioner training programme
• Redefining Efficiency

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www.neweconomics.org josh.ryan-collins_at_newecono
mics.org 020 7820 6382 www.procurementcupboard
.org
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Further information

• josh.ryan-collins_at_neweconomics.org
• 020 7820 6382
• www.neweconomics.org
• www.procurementcupboard.org