• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Social Enterprise & Public Procurement
 

Social Enterprise & Public Procurement

on

  • 986 views

 

Statistics

Views

Total Views
986
Views on SlideShare
943
Embed Views
43

Actions

Likes
0
Downloads
18
Comments
0

2 Embeds 43

http://jujo00obo2o234ungd3t8qjfcjrs3o6k-a-sites-opensocial.googleusercontent.com 25
https://jujo00obo2o234ungd3t8qjfcjrs3o6k-a-sites-opensocial.googleusercontent.com 18

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Social Enterprise & Public Procurement Social Enterprise & Public Procurement Presentation Transcript

    • Social Enterprise & Public Procurement Revd Timothy Curtis Senior Lecturer in Social Entrepreneurship University of Northampton HEFCE/Unltd Ambassador for Social Entrepreneurship in Higher EducationSupported by
    • Brief• What are the challenges for local government in policy, commissioning and procurement that make it harder for them to get the most out of social enterprises? – ‘wickedness’ of the issue not addressed – procurement is uni-directional & untrusting – Needs to be ‘purposive’, ‘prosumed’ and ‘co- produced’. The University of Northampton 2
    • The ‘idealised’ model marketplaceSocial Enterprise is in here, somewhere The University of Northampton 3
    • Private Sector ~£1trillion GDPLets get real… ‘monetised civil society’ Public Sector Social ~£400billion revenue ~£157billionEnterprises~8.4billion Procurement ~£150billion The University of Northampton 4
    • Publicly listed companies • Sodexo • Serco • £12bn revenue • £3.9billion revenue • provide and operate two new prisons • 380,000 employees in the UK, at Belmarsh West, London, • 80 countries and Maghull, Liverpool, with a combined value to us of around • 8 client segments: £600m over 26½ years. Corporate, Health Care, • formed a new partnership, GSTS 4 Seniors, Education, Defense, Pathology LLP, with the Guy’s and St Thomas’ NHS Foundation Trust, to Remote Sites, Justice and pursue opportunities in this Sports & Leisure. substantial market, which is valued at approximately £2.5bn. • 6% operating margin • signed three contracts under the UKSocial enterprises are just not Government’s Flexible New Deal initiative worth £400-500mcompeting with these publicly • Running schools and inspectinglisted companies schools for OfstedThey are competing with SME &privately owned businesses The University of Northampton 5
    • Privately owned companies These are not known for their public contracting- except constructionNote thecomplex mix ofownershiptypes, inc EBT 6
    • SME’s• There were an estimated 4.81 million private sector enterprises in the UK at the start of 2008• Small and medium-sized enterprises (SMEs) together accounted for 99.9 per cent of all enterprises, 59.4 per cent of private sector employment and 50.1 per cent of private sector turnover. – http://stats.berr.gov.uk/ed/sme/smestats2008-ukspr.pdf• Average turnover £215,000 – http://www.publications.parliament.uk/pa/cm200506/cmhansrd/vo050615/text/50615 w10.htm• Therefore, rule bound procurement environment The University of Northampton 7
    • Not untypical LA expenditureOne local authority (A) reports a spend of£331m. The top 10 spending categoriesaccount for £226m (28% of the totalspend)Curtis 2005 The University of Northampton 8
    • Progress in ProcurementThe way it was The way it is• Non-transparent opportunities • The Compact & leads • LM3/e-procurement• Councils knew their budgets • OGC portal(s) but not their spend (BEST • Whole-life costing Procurement) • Consortia/supplychain• Incumbents had the advantage development• Lowest cost v best value • Full cost recovery• Fragmented supply chains • Longer/larger contracts• Grant/SLA/Short-term • Customer more active in risk contracts mgt• Liability foisted on contractor • RELATIONSHIP CONTRACTING The University of Northampton 9
    • The problems of procurement• Rule bound but does not recognise social construction of contract development – Justice Holmes commented one hundred and five years ago: "Nothing is more certain than that parties may be bound by a contract to things which neither of them intended, and when one does not know of the others assent”• Poor understanding of wickedness of social issues• Poor understanding of the inefficiency of ‘overhead’ in providing services• The value added by ‘good’ participants (like volunteers) is lost to the value calculation• Requires and implies centralisation, professionalisation, risk avoidance and individualism (Young & Temple 2010)• Perverse outcomes: cherrypicking of easy to reach targets, focus on contract terms rather than what is really going on, unstructured supply chains (NAO 2010) inefficient duplication of procurement overheads (see later)• “Market logic applies to narrow deliverables, but misses out the crucial dimension that allows doctors to heal, teachers to teach and carers to care: the relationship with patient, pupil or client.” NEF 2006• Essentially ‘untrusting’ & ‘uni-directional’ The University of Northampton 10
    • lets take a diversion for a minute The problem with social issues “Some problems are so complex that you have to be highly intelligent and well informed just to be undecided about them” Dr. Laurence Johnston PeterChapter 1 of Dialogue Mapping: Building Shared Understandingof Wicked Problems, by Jeff Conklin, Ph.D., Wiley,October 2006. The University of Northampton 11
    • lets take a diversion for a minute Wicked Issues• The problem is not understood until after the formulation of a solution.• Wicked problems have no stopping rule.• Solutions to wicked problems are not right or wrong.• Every wicked problem is essentially novel and unique.• Every solution to a wicked problem is a one shot operation• Wicked problems have no given alternative solutions. – Horst & Rittel and Conklin The University of Northampton 12
    • lets take a diversion for a minute Tamed ProblemsChapter 1 of Dialogue Mapping: Building Shared Understanding PS, the trick is not to tame an issue,of Wicked Problems, by Jeff Conklin, Ph.D., Wiley,October 2006. but to keep it wicked 13
    • lets take a diversion for a minuteSocial construction of procurement 14
    • therefore: getting back on track The (hidden) overhead for the Big Society• “Perceived need to control the very complex arrangements for delivery of services leads to layer upon layer of indirect activity.”• A team to specify what service is needed and to create a bidding specification• Several organisations to commit resources to create competitive bids often, in the case of activities that will last over several years, these bids can run into hundreds, even thousands, of pages and cost tens or even hundreds of thousands of pounds to produce• The “purchasing” team to negotiate, answer queries, re-specify details and so on, before ultimately selecting one “provider”• The provider to set up a democratic structure with Board, committees, procedures to supervise and give legitimacy, and to demonstrate “Good Governance”• The committee to be involved with the “purchaser” in setting up a new organisation that meets all the expectations of “good practice”, equal opportunities, financial accountability to the last penny, smooth public relations to let the public know that they are there and so on• A building, a phone system, intranet/ website/ customer and back-office systems strong enough to give people the information they need for complete public accountability• Sub-contracts for cleaning, food, stationery (lots and lots of paper!), maintenance• A Human Resources department, disciplinary and grievance procedures, appraisal and career• development system• Salaries, bonuses, pension provisions, cars and allowances for indirect staff and senior managers all at competitive market rates• And so on and so forthHOW SOCIAL ENTREPRENEURS CAN HELP BUILD A TRUST-BASED BIG SOCIETYBy Charlotte Young, Chair of School for Social Entrepreneurs and Nick Temple, Policy + Communications Director, School for Social Entrepreneurs June 2010 The University of Northampton 15
    • Outcomes based commissioning• Ignores the equity required in the process of delivery• Neutral regarding how the contractor achieves the outcomes- performativity• Services cease or don’t expand when fixed outcomes are met• Unintended outcome ignored The University of Northampton 16
    • Social Impact Bond• requires the taming of an issue to agree on the metrics of success• Secures long-term investment to create short- terms savings in government spending – Enticing, but is very close to PPP without consideration of who the ‘social investors’ are, and what return on investment they require The University of Northampton 17
    • Personal budgets• Leads to a ‘retail consumption’ model of service provision and use• Individual budgets without mutual support misunderstand the nature of public services.• Replaces relationships with market transactions – Buying a dog with a personal budget• what users need is long-term relationships of mutual trust if they are going to benefit.• drift to Maybelline model of services The University of Northampton 18
    • Mixed provision is no panacea• Pathways is led by Jobcentre Plus in some areas but is contracted out to third sector and private organisations in over 60 per cent of the country.• The National Audit Office found that there is no evidence that the programme is performing better or costing significantly less in contracted out areas than in those run by Jobcentre Plus.• the private contractors were only really any good at the easy bits of the contract - the volunteer particpants in the scheme who were keen to get back into work.• When it came to the really hard, time consuming, expensive cases - people who were reluctantly forced onto the scheme - no provider excelled, but the private sector performed even worse than Jobcentre Plus.• One third of prime contractors and two thirds of subcontractors expecting to make a financial loss. – National Audit Office 28 May 2010 ‘Support to incapacity benefit claimants through Pathways to Work’. The University of Northampton 19
    • Relational contracting• Tony knows more than me!• increasing the degree of contractual incompleteness can enhance efficiency (Wu & Roe 2007) The University of Northampton 20
    • Coping with the problemsnot seeking to propose a ‘one size fits all’ solution that tames the wickedness of this issue The University of Northampton 21
    • Trust• Hidden currency of contract success• Large number of small interactions• Regular interactions• Direct transaction• Open, transparent sharing of trust feedback• Technology now exists to provide for micro- transactions, micro-manufacturing and transacting trust relationships- ebay, paypal, facebook, smart phone apps The University of Northampton 22
    • Co-production• reduce or blur the distinction between producers and consumers of services, by• reconfiguring the ways in which services are developed and delivered• services can be most effective when people get to act in both roles• as providers as well as recipients. The University of Northampton 23
    • Pro-suming• Prosuming is the creation of wealth without being paid for it, doing it for yourself or to give it away. Alvin Toffler, Third Wave 1980• In mental health- peer provision The University of Northampton 24
    • To develop NEF• Define public service clients as assets who have skills that are vital to the (cost-effective) delivery of services.• Define work ‘long-term share value’ to include anything that people do to support each other.• Include some element of reciprocity.• NEF example “engaging disaffected 16-year-olds by using them as tutors for 14-year-olds, and achieving both major academic improvement for both and reductions in bullying.”• The value of the engagement, and consequent efficiency, is lost to the system• Let the 16-year olds earn ‘sweat equity’• NOT – more ‘procurement with new organisations on the same, old, terms The University of Northampton 25
    • Co-own Co-operate co-design co-finance co-deliver co-decide co-assess Co-produce Pro-sumevalue unpaid labour contract develop reward 3rd job purposively trust reciprocity The University of Northampton 26