Consortia: way forward or waste of time?

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Consortia: way forward or waste of time is the main topic of this presentation.

ACEVO and Neil Coulson Associates discuss.

Find out more about the Evolve conference: http://www.ncvo.org.uk/training-and-events/evolve-conference

Published in: Business, Education
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  • VCT rain Established 2000/operational 2002 120 members c. £40m Sheffield Well-Being Consortium Established 2007/operational 2008 70+ members > £3m
  • Consortia: way forward or waste of time?

    1. 1. Consortia: way forward or waste of time? ACEVO & Neil Coulson Associates
    2. 2. Why consortia? Barriers Facing Small Organisations • The procurement process (long, complex, expensive) • Unable to find out about opportunities • Contracts are too big • Frameworks (if too complex and too large)
    3. 3. Barriers…cont • Pre-qualification • Understanding the requirements (anachronisms used, poorly worded specifications) • Lack of feedback • Cashflow
    4. 4. Consortia – overcoming barriers • Scale • Development of specialist tendering and contract management infrastructure • Greater bargaining power • Adding value at the frontline • Building capacity
    5. 5. Key Trends Part 1 (deficit reduction and heightened competition) • Deficit reduction • New forms of private sector competition • New forms of social economy competition through ‘externalisation’ of public sector human resources
    6. 6. Key Trends Part 2 (changing dynamics) • Radically changing dynamics within the commissioning arena • The ‘more for less’ agenda – downward pressure on unit price and greater focus on outcomes • Reduction of ‘transaction costs’ through aggregation (joint commissioning, bundling) -> devolved commissioning
    7. 7. Key Trends Part 3 (political reform) • Big Society – shift from state to non-state provision • Modernising Commissioning • Localism Act (inc. Community Right to Challenge) • Social Value Act • Personalisation -> Growth of voluntary sector consortia, management companies, special purpose vehicles
    8. 8. Different Contracting Forms • Provider • Managing Agent • Managing Provider • ‘Super Provider’
    9. 9. Provider Contractor Provider Provision of Services
    10. 10. Managing Agent Contractor Managing Agent Sub-contractors Provision of Services
    11. 11. Managing Provider Contractor Managing Provider Provision of Services Sub-contractors Provision of Services
    12. 12. Managing Agent/Provider Contract top slice Percentage of contract to pay for management of sub-contractors:  Performance  Quality  Financial management
    13. 13. ‘Super Provider’ Provider Provider Provider Provider Provider Provider
    14. 14. aka Formal Consortium Collaboration Spectrum Networks/ Loose consortia Formal consortia Mergers Partnerships
    15. 15. How does it work? • Incorporation to form new legal entity • Providers become members of this company • Hub and spokes operating model
    16. 16. Hub & Spokes operating model
    17. 17. Ownership & Management Structure
    18. 18. Social ownership • Owned and controlled by the members • 2 tier governance: Council of Members Board
    19. 19. Some Examples • Sheffield Well-Being Consortium • Wakefield District Well-Being Consortium • Desta • C3C • Greater Together • Synergy
    20. 20. Challenges • Building trust • Managing conflicts of interest • QA and accountability • Measuring social return • Access to capital • ‘Investment readiness’
    21. 21. Critical Success Factors Demand side • Commissioner Commitment • Commissioners’ Attitude to Change & Risk • Market Opportunities
    22. 22. Critical Success Factors…cont Supply Side • From culture of entitlement to culture of enterprise • Leadership, business skills and entrepreneurial acumen • Long-term vision • Resilience
    23. 23. http://consortiasupport.org.uk/

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