Better Business Models

1
Better Business Models

• Katharine Davidson
• Executive Director, Strategy Management
  Information
• Efficiency and Reform Group , Cabinet Office
• 21 November 2011

2
What are better business models?
Member owned
Outsourced Private owned Service contract
Privatise
HMG/Member owned
HMG owned In House
HMG/Member/JV owned
Each model has pros and cons, but overall we are
agnostic. Pragmatic judgement on merits, though
understandably theres interest in mutual
principles
3
How do they support HMG Goals?
HMG Goals
Efficiency and Reform Agenda
Transparency
Digital
Reform Efficiency
Growth Deficit Reduction
Open Public Services
Better Business Models
Aggregate Procurement
Supplier Management
Spend Controls
4
Mutuals offer attractive benefits
Employees

• Greater engagement
• Ownership stake
• Freedom to innovate improve citizen services

• Better value
• Better service post-deal
• Ownership stake protects taxpayer
• Hedge poor initial contracts

• Opportunity to grow through provision of capital
  or expertise

External partner
Taxpayers
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
5
Better Business Models
6
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

7
Better Business Models

• Katharine Davidson
• Executive Director, Strategy Management
  Information
• Efficiency and Reform Group , Cabinet Office
• 21 November 2011