Tag Archives: SMEs

Civil Service too risk averse at a micro level

 Faced with big challenges, the Civil Service thought small thoughts.  [Tony Blair, memoirs]

A report by the House of Commons Public Administration Committee has warned that the Coalition Government needs a more transparent and flexible Civil Service when it comes to commissioning public services from charities, social enterprises, mutuals and private companies.

The Committee’s report says the Civil Service needs to transfer power out of Whitehall and into communities and as a result fundamentally change the way it works.

It says the challenge of this new role will be compounded by the need to meet sizeable reductions in administrative budgets set out in the 2010 Spending Review.

Its conclusions are that while the Government seeks to embrace change, it has failed to recognise the scale of reform required or to set out the change programme required to achieve this reform. It says there is a reluctance to produce what they see as the latest in a long line of reform initiatives in Whitehall. This antipathy to a plan for reform fails to take note of the critical factors for success in Civil Service reform initiatives and wider corporate change programmes: coordination from the centre and strong political leadership. As a result, it warns, key policies like the ‘Big Society’ agenda and decentralisation will fail.

The Committee says: “We have recommended that the Government should produce a comprehensive change programme articulating clearly what it believes the Civil Service is for, how it must change and with a timetable of clear milestones. Such a change programme would enable real change in Whitehall and avoid the fate of previous unsuccessful reform initiatives.

“Such a change programme must also include proposals for the Civil Service to retain and to develop the new skill sets required to meet the demands of the Big Society policy agenda, and to address long-running concerns about the decline in specialist expertise in Whitehall, the failure to innovate and to take risks, and the failure to work across departmental silos. Such a plan is required to combat inertia and deliver government policies where Ministers and departments may otherwise be unwilling or unable to drive change.

“To reflect the changing role of the Civil Service, we have also recommended that the Government should consider the development of a new Haldane model of accountability which can sustain localism and decentralisation; or they must explain how the existing model remains relevant. The new realities of devolving power out of Whitehall to local government and elsewhere should be codified in the Civil Service governance structures.

“Ministers seem to believe that change will just happen. It is essential that the Cabinet Office take leadership of the reforms and coordinate the efforts in individual departments and across Whitehall as a whole. The scale of the challenges faced by the Civil Service calls for the establishment of a world class centre of Government, headed by someone with the authority to insist on delivery across Whitehall.”

In particular, the report says the main change of task, which will affect many but not all departments, will be an increase in commissioning and contracting. More onerous and time-consuming, however, will be monitoring the contracting process and dealing with problems and complaints arising.

The report says Whitehall has traditionally performed three core roles: policy advice, the management of public services, and the supervision of public bodies. If the Civil Service is to connect with Ministers’ ambitions for public service reform a fourth capability will need to be added to this trio: the ability to engage with groups from the voluntary and private sectors through the contracting and commissioning process. Every government department must focus on developing this fourth capability, and the Cabinet Office must ensure that this is embedded in the Civil Service change programme across government.

The report explains why SMEs have made so few inroads into government work. 

It goes so far as to depict ministers as not understanding Civil Service inertia, which means they cannot come up with a plan to do anything about it. Cabinet Office Minister, Francis Maude, described a paradoxical situation where Government took huge risks at a macro level, but at a micro level tended to be very risk averse and hostile to innovation.

He added, “You do not often hear of someone’s career suffering because they preside over an inefficient status quo, but try something new that does not work and that can blot your copybook bigtime.”

 An example of one SME’s innovative ideas

Delivering the agility to bring the corporate network to life

By David Bicknell 

A recent blog  asked whether businesses need the IT department when it comes to purchasing cloud services for business units. After all, the piece suggested, the Internet is all about eliminating the middleman from the transaction. https://www.infosecisland.com/blogview/15280-Informal-Cloud-Buyers-A-Growing-IT-Problem.html

The same argument could apply to non–Cloud apps where SMEs are increasingly providing turn-on-a-sixpence like agility to deliver apps and end-to-end solutions to business units, by-passing internally-focused IT departments that look cautious, defensive and too eager to pull up their ‘it’s not strategic’ comfort blanket.

In fact, ‘informal buyers’ make five times as many software buying decisions as the IT people who are supposed to be in charge, according to Forrester. According to a Q4 2010 Forrester survey, 69 percent of 3,000 business managers reserved part of their operations budgets to buy tech services directly, rather than through IT.

Faced with IT’s frequent intransigence in embracing new innovative solutions provided by SMEs, and citing their need to move quickly and with agility, business units are insisting that they want end-to-end solutions that truly understand business problems and solve them, meeting immediate business needs today, not in six months’ time once IT has a done another strategic review.

Buyers want to take advantage of the rich innovation offered by specialist SMEs who probably understand the business’s needs – and what’s more, relate to it – far better than the internal IT department, which too often understands technology, but not often enough, its own business.

Those specialist SMEs include Mvine, which gives business people all the tools they need to work in partnership across corporate boundaries, productively and securely. Indeed, Mvine is  finding that increasingly the business is not looking for IT-driven point solutions with a technology-led tag, such as collaboration, but a flexible, end-to-end platform that understands and speaks the business’s language, while delivering on the business’s multiple requirements, from document management to business intelligence. This approach facilitates effective communication and collaboration with customers and enables closer engagement with both partners and employees, outside the corporate silos, but still inside a secure, trusting environment. In the insurance world Exvine is attracting interest amongst business executives who quickly grasp the flexible, end-to-end capabilities of the platform and are impressed by the speed of deployment, usually only 4-6 weeks from concept to full production system. The rapid implementation, thanks to Cloud delivery, and flexible design features are proving to offer a refreshing alternative to traditional IT delivery approaches, which have often been slow and costly. 

Mvine’s latest innovation, 6.0, available to both Mvine and Exvine customers, provides a number of feature enhancements including compatibility with new technology such as tablets, improved search capabilities, data exports to Outlook, the creation of sales reports, security switches, multi-chapter video enablement, improved image quality and digital assets and event functionality.

What Mvine is now offering is a vision for the future of social business, creating a rich data store on companies and people, complete with email, videoconferencing, telephony and links to social media such as LinkedIn and Twitter that weaves a tapestry of relevant corporate communications including recent events, conversations, video, company updates and pictures: an interactive database of information and communication to replace the static spreadsheet. Mvine enables employees to get to know each other better, without exposing the organisation to the risks of social networks. It’s local , not social networking.

And because business intelligence is now so important to companies, customers can create reports of what their users are doing with the site in real-time. Information created, detailing data such as age, gender, frequency to the site, downloads, location, job function, can then be used to produce reports and help target marketing campaigns and generate sales leads, providing a bespoke service to customers and intelligent approach to understanding your user base.

The Mvine platform also has the capability to pull in and harness a wealth of data from physical appliances and fixtures, such as light fittings and plug sockets, entering this information ‘from the Internet of things’ into the platform’s BI tool for a widening list of uses, from environmental purposes through to practical maintenance enquiries. Such pure data, duly tuned or distilled so that extraneous ‘noise’ is filtered out, is the currency that enables organisations to make better business decisions.

Why is all this so important? Because in future instead of pockets of knowledge, companies will have one central nervous system that unifies every piece of corporate information and fundamentally changes how companies do business, unlocking the vast amount of information generated by everyday operations and making it instantly available. These ‘Activity Streams’, as Gartner calls them,  humanise every business process inside a company, adding a social layer to data and opening up real-time collaboration.

An NHS success story – what’s to learn from it?

By Tony Collins

IM&T at Trafford General Hospital makes visits to hospital safer for patients and gives managers the information they need to monitor the work of clinicians. Even doctors like the advanced technological environment and come up with ideas for improvements. So what lessons can be learnt? Here are four:

–           Be in control of your IT suppliers. Too often in the public sector it’s the other way around

–           Don’t buy from suppliers that seem excessively secretive and talk much about their proprietary information – which may include your data. Know their systems well enough to produce the reports you want, when you want them and in the format you want, rather than wait for your information to be given to you when the suppliers want to give it, and in their format.

–           Don’t impose change. Have the push come from the business users [in Trafford’s case clinicians] who understand what technology can do for them.

–           Keep IT in the background – not centre stage.

How does this tech team achieve so much on so little money? (2)

By Tony Collins

One reason doctors and nurses hold the tech team at Trafford General Hospital in high regard is the quiet professionalism of Steve Parsons who’s a civil engineer and Head of IM&T at Trafford Healthcare NHS Trust in Manchester.

Civil engineering is a  world where openness  is allied to safety. Parsons  designed buildings and pumping stations in the water industry where managers don’t tolerate unnecessary secrecy from their suppliers. From there he became involved in managing IT-led change and came to Trafford General Hospital in 2000.

“It’s having an analytical questioning mind, not just accepting what people say. I will ask all the questions that can make me seem a pain. You want to know why it [a supplier’s software] is going to work,” he says.

“If they don’t give me the confidence that their product is going to work under certain conditions I will not want it. I will not take a black box without knowing what is going to happen with it. I am not having that dependency. I want to strip it down to its basics. It has to be practical. Where else is it working? What is the underlying database?”

Patient data and suppliers 

He says that hospital data belongs to the hospital, not the supplier. “There are people working in the health service who will say: ‘we are the system supplier. It is our data.’ But ours is patient data. This is client’s data, not the supplier’s.”

To an outsider – one who doesn’t work in the NHS – the most surprising thing about seeing the IM&T engine rooms at Trafford General is the complexity and the different ways each ward works. These complexities have to be managed to give doctors and nurses a seamless view of what is happening with each patient.

Could the NPfIT ever have worked?

It’s remarkable, given these complexities, that anyone thought a national system – the National Programme for IT in the NHS –  could ever have worked. It’s hard enough to integrate IM&T within a single hospital let alone on a regional or national scale.

Parsons and Peter Large, Director of Planning at Trafford Healthcare NHS Trust,  consider it lucky that Trafford went live with the Graphnet patient record technology as early as 2003, several months before the tenders for the NPfIT systems were awarded.

It meant that, while some in the NHS were waiting in eager anticipation for NPfIT systems that never arrived, Trafford’s technical staff were learning in precise terms what clinicians wanted and converting this knowledge into working systems. At no point did the promised national systems offer more than Trafford’s.

How patients benefit from Trafford’s IM&T   

In a room close to each ward is a 46” screen known as the “whiteboard” which shows lists of every patient, whether in a bed or visiting outpatients. Allied to the patient’s name are relevant details including colour-coded alerts to warn if a VTE [thrombosis] check hasn’t yet been done, an observation is overdue or an x-ray has not been assessed. In A&E the icon turns red if a patient has waited for three hours, and purple if more than four hours.

Also on the whiteboards, breaches of Department of Health guidelines on waiting times are shown clearly for each patient. The screen also shows which doctor is responsible for any breaches of waiting times.

If nothing else, these system alerts and icons – which include ticking clocks – show how technology can make treatment and care safer for patients.

Why doctors keep their smartcards at all times 

Clinical staff must use smartcards to access the system, and they are unlikely to forget them because they also allow access to the car park.

In trials of NPfIT systems, some doctors were reluctant to use smartcards because of the time taken to log on each time they returned to the computer. At Trafford log-on takes a few seconds, and Imprivata’s single sign-on means that holders of smartcards do not have to remember different passwords. Take out the smartcard and the screen goes blank.

Says Parsons: “We are dependent on EPR now. A year ago one or two consultants refused to look at the EPR. Their secretaries had to print off the last letter from outpatients because they would rather not look at it on a screen. That’s changed.”

Patients give their details only once 

In parts of the NHS patients give their name and address every time they visit a different part of the hospital. At Trafford General Hospital a new patient has a file created at, say, A&E. It is then available to all parts of the hospital, ready for staff to order electronically a blood test or x-ray, or book an appointment.

Links to GPs 

Through Sunquest’s Anglia order communications system and using the HL7 messaging standard, GPs can from their desks order hospital blood tests and x-rays, and get the results in their inboxes. The orders and test results are recorded in the hospital’s Graphnet EPR.

If the local GP has authorised it – and so far about half in Trafford’s catchment area have – A&E doctors will soon be able to see a synopsis of the GP-held patient record which would show any treatments outside the Manchester area as well as medications and significant medical events. The synopsis comes into a hospital server that is controlled by GPs, using their local Emis or Vision systems. In return, GPs have access to their own patients within the hospital-based EPR where they can see all the records related to a patient’s episodes of treatment .

Real-time view of free beds

On the whiteboard, staff can see when beds are due to become vacant, doctors having given the system an estimated time and date of departure for each inpatient. If a doctor fails to give an estimate the system shows an alert.

Says Laura Slatcher who is an assistant to Parsons, “Doctors are restricted with what they can do with the patient’s record  – cannot make referrals, cannot update whiteboards – unless the estimated discharge date is kept up to date. Doctors will complain that they cannot get on because clerks or nurses haven’t kept this administrative information up to date.”

The estimated discharge date is also useful to ensure that the system has alerted district nurses if the patient, after leaving hospital, needs physiotherapy, dietary monitoring or help from social services.

Bed management is a module now removed from the “Lorenzo” system as part of the Department of Health’s plans to cut the costs of NPfIT contracts.

Duplicated patient records are rare

Parsons and his team have done much to tackle the bane of hospital administration: duplicate patient records. Says Parsons: “We have a central patient index which is updated nightly from all GP practices. If you say your name we check date of birth and previous addresses, maybe from the GP – you may still get two people with the same name living in the same house.

“Once we have updated John Jone to John Jones, the central system will update all other related systems to the new spelling. One single ID for everyone avoids having duplicates which could end up with patients having the wrong records. That’s critical to get right.”

Medical Director Dr. Simon Musgrave says: “Duplicates are a fairly rare event now.”

Staff in A&E can create duplicates very easily from patient provided information but “we have systems in place to track those in the following 24 hours and merge them back to the correct record”, says Parsons.

The hospital’s old iSoft patient administration system had 150,000 duplicate files in a database of 460,000 patients. That was typical for an acute hospital says Parsons.

Trafford dispensed with its patient administration system –  it doesn’t have one, having replaced it with the Graphnet’s EPR and Ultragenda from iSoft [now owned by CSC].

EPR goes beyond Trafford

Many doctors are sceptical of the need to make electronic patient records available across England, which was one of the main – and ultimately unsuccessful – aims of the NPfIT. The sceptics say it is very rare for patients to need treatment outside their locality.

Trafford has 250,000 patients in its catchment area but its EPR has 1.4 million records which includes most people in Manchester.

Board support

Trafford adopted the Department of Health’s pre-NPfIT strategy in the late 1990s which called for hospitals to install, incrementally, six levels of EPR – electronic patient records. Level one was a patient administration system and departmental systems. The highest, level six, was a full multi-media EPR online.

Says Parsons: “I have been fortunate of having the support of the Trust Board throughout the 10-year period of staying on a strategy that said: ‘we will continue to build that six-level EPR and all that went with it until an equivalent and better came from the National Programme for IM&T  through Connecting for Health’.”

Reporting, accountability and safety 

Trafford publishes hundreds of reports to operational managers: how long patients have been in their bed or how have they waited, how many patients have had certain types of forms filled in such as VTE forms. Every morning emails to consultants tell them the number of patients they had admitted the day before and how many have not had, say, thrombosis assessments.

Standard reports from some suppliers to the NHS may be too limited for Trafford’s demands, says Parsons. “Some of the questions we are asking require difficult algorithms. On bed occupancy for example doctors get credits for the numbers of patients they are caring for. The standard unit for care is one day or night in hospital.  If somebody is in for six hours, if you work in units of one day, nobody gets credits for that. We want to break IM&T down to parts of days and look at trends.”

Challenges remaining

Ensuring patient safety during the transition from paper to computer needs careful management.

Says Musgrave, Trafford General’s Medical Director: “When you ask for an x-ray [on paper] you fill out a form, get the x-ray done, and the x-ray report is written on a piece of paper which comes back to you so your secretary gets a bit of paper that says “cancer” on it. That’s the end point, the safe point, and you do something about it.

“If you order it on a computer and you do not have a paper record, you have to have some other different system for making it safe.  How do you know the x-ray has been ordered, has been done, and been reported? And what is the report? There is no back-stop there unless you invent one via the computer.”

“Will we ever do entirely without paper?” asks Parsons. “Hmm.”

Part one – How does this tech team achieve so much on so little money?

Final part – How does this tech team achieve so much on so little money?

How does this tech team achieve so much on so little money?

By Tony Collins

Laura Slatcher dreams of forms – reducing the number of them.

She works with a small IM&T team at Trafford General Hospital that is trying to standardise and reduce the number of paper forms doctors and nurses use in the care and treatment of patients.

As is typical for a hospital of its size there are up to 70 – mostly different – paper forms on every ward. Slatcher is working with clinicians to define ways of switching from paper to electronic records – which they are doing with alacrity.

“We have to standardise here,” says Steve Parsons, Head of IM&T at Trafford Healthcare NHS Trust in Manchester. “The doctors and nurses welcome that. They want to work better and more efficiently because they are under pressure themselves to do that.”

Clinical support 

Trafford General bought its main systems outside of the £11.4bn the National Programme for IT [NPfIT]. The hospital, though, is one of the most technologically-advanced in the UK says Peter Large, Trafford Healthcare NHS Trust’s Director of Planning.

There has been no risky “Big Bang” implementation of a Whitehall-bought patient administration system. Rather, Parsons’s approach has been step by step progress over 10 years: implementing systems, learning from what went well and not so well, and integrating hardware and software from a range of suppliers. This strategy could help to explain why the clinical staff we spoke to at Trafford hold the small IM&T team in high regard.

In 2000 the hospital had rudimentary technology – isolated systems in some departments. Now the IM&T team is able to give clinicians what they have asked for; and at Trafford it’s the doctors and nurses who say what they want. Systems are not imposed on them. Here the technologists are in the background, not centre-stage as in the NPfIT.

Trafford and the NPfIT

Says Large: “We found ourselves in the position of being ahead of the game. When we were asked to commit to the National Programme we held back because we needed to know we would be committing to a better solution than was already available to us.”

Parsons adds: “Some trusts didn’t really have anything at all so were desperate to be in the first wave. From their perspective the national programme was a brilliant step forward. But the right products never arrived.”

Integrated systems

One reason for Trafford’s success is the integration of the hospital main and departmental systems. Before electronic patient records, patients could come into hospital without their paper notes being available. Now doctors across the hospital’s departments and clinics can access at the hospital’s XML-based electronic patient records at any time, day or night – and from home if they have remote access.

Doctors can view x-rays and assessments of them from the patient record; and from system alerts and patient tracking, operational managers can see how well individual doctors and nurses are coping with the numbers of patients on their daily lists.

No black-box technology

The hospital’s three main systems are an electronic patient record from Graphnet, software to schedule and manage appointments from Ultragenda, owned by iSoft (now acquired by CSC), and the “Ensemble” integration engine from InterSystems.

What sets these and the hospital’s other systems apart is that they are not black boxes, impenetrable to Trafford’s technologists. Parsons insists that Trafford’s suppliers make their software transparent so that it can be understood by the hospital’s IM&T staff and integrated with other systems, at database “field” level if necessary. That way Parsons can produce any report clinicians need and usually in real-time.

When a supplier keeps its software opaque for reasons of proprietary and commercial confidentiality, Parsons is restricted in the type of medical and administrative reports he can ask the company to supply – and may have to wait hours or a day to get them. He wants none of that.

It’s this level of control that Parsons believes he has a right to expect – and he seems a little surprised that CIOs don’t always require openness from their software suppliers.

How does this tech team achieve so much on so little money? (2)

How does this tech team achieve so much on so little money [final part]

Mutuals and SMEs remain at risk of EU procurement rules despite government calls for change

By David Bicknell

A recent article on EU procurement has raised the possibility of the risk of a challenge to the government’s plans to make procurement easier for fledgling mutuals and social enterprises still trying to get their feet off the ground.

There are also implications for SMEs battling to gain a foothold in government procurement.

The piece  argues that even though the govenment is trying to change EU procurement laws, that itself is likely to take a couple of years. So, it asks, if the UK government is making a proposal around mutuals now, what will it do regarding procurement in the meantime?

In the UK government’s recent formal response to the European Commission Green paper on the modernisation of EU public procurement policy, the government said:

The UK welcomes the Green Paper on modernising public procurement, and the commitment that proposals to simplify the public procurement directives will be published at the end of 2011 or early 2012. The UK strongly agrees with the Commission’s comment on the need for streamlined and flexible procurement procedures, so that purchasers can obtain high quality goods and services, while delivering value for money for the public purse. Radical simplification is needed for the benefit of small and medium-sized enterprises (SMEs), other suppliers and public purchasers alike.

The main priorities in the revision of EU public procurement policy should be:

To make clear that contracts could be awarded directly for a period of, for instance, three years, to employee led organisations/mutuals, to enable employees to gain experience of running public services prior to full and open competition

Reducing lengthy and burdensome procurement processes that add cost to business and barriers to market competition

Providing more flexibility for purchasers to follow best commercial practice, so that the best possible procurement outcomes can be achieved, and

Supporting measures to enhance SME access to public procurement, where such measures are non-discriminatory and are consistent with a value for money approach.

The full response is available here

The article goes on to suggest that changes should be made to simplify and harmonise ‘dynamic purchasing’ techniques such as framework purchasing agreements, which need to be made more flexible to benefit SMEs.

Aftermath of the riots: the clean-up continues for SMEs

Yesterday the Campaign4Change suggested that some SMEs might need help in getting access to IT facilities in the short term to help them get on their feet. One organisation, Enterprise on Demand, has contacted us to offer community support for SMEs affected who may need some IT help.  It can also be contacted by email: cs@enterpriseondemand.co.uk

Another useful point of contact is the Federation of Small Businesses which has advice on insurance and civil contingencies on its website: http://www.fsb.org.uk

There is also a riot clean up website www.riotcleanup.co.uk and a similar Twitter feed    http://twitter.com/#!/riotcleanup

Aftermath of the riots: lending SMEs a helping hand

With the pictures of the aftermath of  last night’s riots still embedded in the memory and  with dozens of SMEs literally picking up their pieces of their businesses, perhaps it is time for the large to offer help to the small.

Larger business have IT facilities and premises that could be utilised in the short term to help SMEs get on their feet in the affected cities  and London boroughs.

IT suppliers could do their bit in tiding over SMEs who need IT facilities, perhaps provided by Cloud-hosted systems. Now is the opportunity for the Cloud to deliver a solution which is up and running and available quickly.

In addition, the government could be putting some of its array of IT  to good use, giving London-based business a leg up. Insurance will help, and the Federation of Small Businesses has already been pointing out the urgency today.   But SMEs need more. And they need it now.

If you can help, we suggest you contact the Federation of Small Businesses on 01253 336000    http://www.fsb.org.uk/

Former Dragon James Caan tells SMEs ‘cloud computing has changed the landscape’

By David Bicknell

An article in ITPro magazine featuring former Dragon’s Den presenter James Caan describes the benefits for SMEs of cloud computing.

Caan insists advancing technology and the growth of the online industry makes it easier and more efficient now to set up your own business and access information faster.

” It (cloud computing) has changed the landscape quite significantly. Companies no longer need to have large bulky archives with all their databases written on papers. Cloud computing enables all this information to be stored online in a digital format, with little limitations on size.

“What’s also very important is that cloud computing enables information and data access anywhere in the world, as long as there is an internet connection. My private equity firm Hamilton Bradshaw uses cloud computing and I’m still amazed how efficient the system is.

“I was recently abroad and I wanted to show my colleague some fairly large documents. I was able to access the files and information within minutes. Of course there is a risk with cloud computing, but security is high on the agenda for cloud computing companies. They are continuously updating their processes for user security.”

And believes Caan, that focus on security is something more SMEs should be aware of, even if their times is limited.

“I think all companies, not just start-ups, aren’t doing enough for their business information security. In the case of small businesses this may be down to the perception that they aren’t in a high risk position. As a business owner you wouldn’t leave the front door of your office open at night so why would you put your information assets at risk?

“Business owners are typically so swamped with everyday tasks and issues they tend to push their business security to the bottom of their priority list. However, I believe that a company’s information is one of their most valuable assets and should be at the top of every entrepreneur’s agenda.”

Mutuals bring relief after the public sector moratorium

The public sector landscape is likely to be dominated by mutuals in the future.  In this guest blog, John Pendlebury-Green and John Jones of Landseer Partners discuss the outlook for service providers in this mutualised world and argue that their approach must be both innovative and flexible.

Last year was a difficult one for service providers to the public sector given the moratorium and general economic slow-down.  Despite a relatively slow start 2011 is looking significantly brighter for existing and new entrant market players.  The Government’s plans to achieve cost savings, develop mutual organisations, and use SMEs and the third sector to develop new ways of delivering services, are moving rapidly from theory to reality.  So, with the white paper on Open Public Services due out in July, now is the right time for both large and SME service providers to look at themselves and work out how they should be playing in this new world.

We wrote about the concept of mutualisation in early 2010. It has taken the Government longer to get to this point than we expected but the number and variety of public sector organisations looking at mutualisation in one form or another is impressive. The opportunities are starting to appear: from Camden Council looking at how all of its services can be delivered to Cleveland Fire Service receiving approval to finalise a business plan and a structure to establish an employee-owned mutual.   In central government the announcement that My Civil Service Pension is going to be placed into a mutual joint venture is the first major “spin out” of a central government service giving employees the opportunity to take a stake in their business.

So with Francis Maude now talking about an expectation of up to a million public sector workers being in mutual organisations by 2015, the scale of the government’s ambition for mutualisation is clear.  With these types of numbers being talked about it makes it obvious that a one-size-fits-all approach by service providers is doomed to fail.

Our view is that service providers, including possible new entrants, will need to invest time and money now by discussing with existing and new clients the art of the possible: what can be achieved in setting up mutual organisations in order to deliver jointly and successfully services that will provide the right outcomes to the customers of the mutual.

This is most likely to be in the form of working with the public sector organisation to help define the vision and outline structure, and identify the stakeholders – from users to the Cabinet Office – who need to agree the idea.  Then the service provider is ideally positioned, given its private sector experience, to help develop the business plan.  The plan needs to cover the services to be provided, the market opportunity to provide additional services and the resourcing and finances needed to make the new business work.

How this works in practice will be closely examined and no doubt later mutuals will learn from any mistakes in setting up the initial ones.  So the success of the pathfinder mutuals and high-profile examples such as My Civil Service Pension will examined very carefully.   It is clear that how the successful private sector service provider and any third sector organisations become part of these new entities, and how the governance, structure and profit share will work, will set the tone for subsequent mutuals.

Now at mid-year in 2011 it is still early days for new ways of working with the public sector.  If events to date have not spurred service providers to action the July white paper should certainly do this. Either this, or the significant number of re-tenders now coming onto the market, should provide some welcome relief compared to the slow down in 2010.

For more details, read the white paper or visit Landseer Partners’ website