Welfare reform one year on: Will the voluntary and community sector sink or swim under payment by results? Mike Harvey Business Development Director 3SC.

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Presentation transcript:

Welfare reform one year on: Will the voluntary and community sector sink or swim under payment by results? Mike Harvey Business Development Director 3SC

The Age of Austerity AKA – Doing it on the cheap!

Opportunities: The Big Society agenda, The Localism Bill, The Public Services (Social Value) Bill Black Box Threats: Procurement Standards Payment By Results What does it mean for the VCS?

Sink or Swim? How do you avoid drowning? 1.Don’t go in the water... 2.Find yourself a life raft... 3.Learn to swim...

Do you get in the water? Know the Market? Commissioning or Procurement? Rhetoric or Intent? Services or Outcomes? Financial Risk, Reputational Risk, or Both? Compete or Collaborate? Who is the Competition? Prime Contractors – the Goose that lays the Golden Eggs, or the Big Bad Wolf?

Can you Swim? Is the service your core business? How does it perform – what is the evidence base / can you demonstrate FROI / SROI? What does it cost to deliver services? What is the organisational capacity / capability? Secure your niche, or diversify to survive? Where do organisational values sit on a balance sheet / P&L?

How to Avoid Drowning? Collaborate – the sum of the parts is greater than the whole. Play to your strengths and occupy your niche. Take calculated risks – be willing to say no! Supply Chains don’t need Primes, Primes need Supply Chains Recognise and understand the risks. Know what you’re signing up to.

Collaborative Options 1. Traditional ‘Prime Contractor’ model. 2. Consortia with single lead managing agent. 3. Partnerships and Teaming Agreements. 4. Special Purpose Vehicle. 5. Special Purpose Vehicle with independent infrastructure support.

Benefits and Pitfalls Collaboration is what you make it; clear roles, responsibilities, management, governance, contingencies, remedies. Consortia members need to pull together - shared vision, direction and strategy Harmonised with the need to be sustainable.

People are always blaming their circumstances for what they are. I don’t believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and if they can’t find them, make them. George Bernard Shaw

Thank you Mike Harvey Mobile To register: