Optimize, extend and transform your PPP approach by embedding a purpose based approach right from the start

1. PURPOSE DRIVEN
ALLIANCES
Annick De Swaef
Sophie Lismonde
managing advisors

2. Overview
‐ Context of PPP
‐ Op=mize the current PPP approaches
‐ Extend the applica=on field of PPP
‐ Transform future PPP towards alliances
‐ Q & A

3. Context of PPP
Frame, players and interac=ons
BUSINESSES
GOVERNMENT
CIVIL
SOCIETY

4. Context of PPP
The future of collabora=ve alliances
CARE
WHY
KNOW WHY
KNOW HOW
KNOW WHAT

5. Context of PPP
To tackle societal challenges together
Mee#ng the coming public‐sector crisis, as all this suggests, will require the
engagement of a broad range of stakeholders. Indeed, if any one thing has to
change in the public‐sector debate, it is the a>tude that government will
solve its challenges alone. The belief that private‐sector ins#tu#ons—be they
businesses, nonprofits, or simply ci#zens—can maintain a distant and oDen
adversarial rela1onship to government must change. And vice versa.
All of these stakeholders will have to take a role in helping craD a solu#on for
the challenges the public sector faces. For businesses, that may mean moving
beyond a rela#onship with government that concerns only specific, immediately
tangible impacts, such as regula#on, and developing a broader dialogue
about how to actually solve governmental problems.
Ian Davis, managing director of McKinsey

6. Context of PPP
‘The weight of the world’
OPTIMIZE EXTEND TRANSFORM
€ Q
Public deficit War for talent Quality of service

7. Overview
‐ Context of PPP
‐ Op1mize the current PPP approaches
‐ Extend the applica=on field of PPP
‐ Transform future PPP towards alliances
‐ Q & A

8. Op=mize PPP
Focus on ‘public deficit’ €
What do businesses want from governments ?
‐ Provide public infrastructure
‐ Buy our products & services
Let’s face reality
‐ Degraded public infrastructure, life=me 30‐40 years
‐ Simply not enough budget, capacity to tackle challenges
Solu=ons
‐ Classical financing for prolonged maintainance
‐ Alterna=ve financing : PFI, contractual PPP, leasing

9. Op=mize PPP
Focus on ‘public deficit’ €
Road‐, railway‐
infrastructure Health and care
facili=es for elderly
Sport
infrastructure Schools
Social
housing
Territorial
development
Infrastructure

10. Op=mize PPP
Focus on ‘public deficit’ €
MAJOR ADVANTAGES OF PPP
‐ invest without increased debts (ESR)
‐ viability checks
‐ maintenance costs included, full‐cost thinking
‐ packaging : possibili=es for scale‐advantage, standardiza=on
‐ profound role and responsability discussion
‐ experience in the market, lessons learned
‘A good Public Private Partnership is one where the public
partner has the money, but not the exper#se (n)or the
capacity to realise the project.’ Jan Bosschem, Grontmij

11. Op=mize PPP
Focus on ‘public deficit’ €
‘READY TO GO’ IMPROVEMENTS OF PPP
‐ nuance your buy‐sell actude
‐ lower your demands on fixed, technical details
‐ improve risk alloca=on and fine tune risk charges
‐ respect the eco‐system’s uncertainty, contractual flexibility
‐ build in your contracts long‐term collabora=ve processes
‐ embed knowledge transfer, fight the ‘cultural’ separa=on
Classical Contractual Par=cipatory An=cipatory Public Private
Tendering PPP PPP PPP Alliance

12. Overview
‐ Context of PPP
‐ Op=mize the current PPP approaches
‐ Extend the applica1on field of PPP
‐ Transform future PPP towards alliances
‐ Q & A

13. Extend PPP
Focus on ‘war for talent’
What’s going on in the public sector ?
‐ loss of knowledge and skills : re=rement wave
‐ vola=lity of civil servant : impact of contractualiza=on
‐ compe==on with private sector : loss of experienced staff
Let’s face reality
‐ scafered public sector landscape
‐ most of public policy doesn’t stop at the administra=ve border
‐ growing pressure on capacity to deliver services
Solu=ons …

14. Extend PPP
Focus on ‘war for talent’
PUBLIC PARTNERING WILL BECOME A MUST,
NOT JUST ANOTHER TREND OR NICE COMMODITY
‘The tradi#onal reason to partner has always been that
partnering is economical because of the leverage that can be
achieved over going it alone with staffing buildups and direct
expenses’.
The next genera=on of PPP will have to be build on the
willingness and capability to collaborate and par=cipate, for
both private and public partners.

15. Extend PPP
Focus on ‘war for talent’

16. Extend PPP
Focus on ‘war for talent’
PREREQUISITES FOR PARTICIPATORY PPP’S
‐ Public : from regulator to coordinator
‐ Public : from buyer to investor
‐ Private : from business owner to collabora=ve partner
‐ Private : from short‐=me mindset to long‐=me commitment
‐ Both : shii from allocated risks towards shared risks
Classical Contractual Par=cipatory An=cipatory Public Private
Tendering PPP PPP PPP Alliance

17. Extend PPP
Focus on ‘war for talent’
BUT MOST OF ALL …
MANAGE THE CULTURAL DIVERSITY
AMONGST THE PARTNERS
Classical Contractual Par=cipatory An=cipatory Public Private
Tendering PPP PPP PPP Alliance

18. Extend PPP
Focus on ‘war for talent’
eServices
ICT
Road‐, railway‐ Marke=ng
infrastructure Health and care
facili=es for elderly
Sport Interim staffing
infrastructure Schools
Social
housing Educa=on &
Territorial life‐long
development learning
Infrastructure Services

19. Extend PPP
Focus on ‘war for talent’
THE INITIATOR IS NOT NECESSARY THE PUBLIC SECTOR
‐ Watch out for new business models by private sector
‐ Discuss with business sector representa=ves
‐ Ask for help up‐front your project‐ini=a=on
‐ Reward innova=ve thinking, protect new ideas
‐ Small‐scale projects can have huge impact
Classical Contractual Par=cipatory An=cipatory Public Private
Tendering PPP PPP PPP Alliance

20. Overview
‐ Context of PPP
‐ Op=mize the current PPP approaches
‐ Extend the applica=on field of PPP
‐ Transform future PPP towards alliances
‐ Q & A

21. Transform PPP
Focus on ‘quality of service’ Q
What do ci=zens expect ?
‐ public transport, public infrastructure of quality
‐ on‐line, personalized services
‐ different forms of par=cipa=on
‐ transparancy on tax spending
‐ meaningful policy
THE ‘CARE WHY’ LEAP
Classical Contractual Par=cipatory An=cipatory Public Private
Tendering PPP PPP PPP Alliance

22. Transform PPP
Focus on ‘quality of service’ Q
PARTNERING AND ALLIANCES IN THE PRIVATE SECTOR
CEO's surveyed cited the major benefits of partnering,
based upon their own experiences:
− increased profit opportuni=es 88%
− defense of compe==ve posi=on 87%
− increased sales of exis=ng products 80%
− crea=on of more new products or lines of business 66%
− befer opera=ons or technologies 60%

23. Transform PPP
Focus on ‘quality of service’ Q
PARTNERING AND ALLIANCES IN THE PRIVATE SECTOR
‐ Revenue : op=mize revenue performance
‐ Tap new sources of product enhancement, technology
co‐development and compe==ve differen=a=on
‐ Open new markets for growth, expansion and diversifica=on
‐ Build your brand and market presence through joint
marke=ng ini=a=ves

24. Transform PPP
Focus on ‘quality of service’ Q
PARTNERING AND ALLIANCES WITH THE PUBLIC SECTOR ?
‐ Revenue : op=mize revenue performance
‐ Tap new sources of product/service enhancement, technology
co‐development and compe==ve differen=a=on
‐ Open new markets for growth, expansion and diversifica=on
‐ Build your brand and market presence through joint
marke=ng ini=a=ves

25. Transform PPP
Focus on ‘quality of service’ Q

26. Transform PPP
Focus on ‘quality of service’ Q
eServices
ICT
Public
intelligence
Road‐, railway‐ Marke=ng
infrastructure Health and care
facili=es for elderly
Knowledge
transfer
Sport Interim staffing
infrastructure Schools
Social
housing Educa=on & R&D
Territorial life‐long
development learning
Infrastructure Services Policy

27. Overview
‐ Context of PPP
‐ Op=mize the current PPP approaches
‐ Extend the applica=on field of PPP
‐ Transform future PPP towards alliances
‐ Q & A

28. Public private partnerships
Towards a future of collabora=ve alliances
CARE
WHY
KNOW WHY
KNOW HOW
KNOW WHAT

29. COLLABORATION & MEDIATION
on the interfaces between public and private sector
Annick De Swaef
Sophie Lismonde
managing partners
www.consensa.be