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Better Business Models

Better Business Models. Katharine Davidson Executive Director, Strategy & Management Information Efficiency and Reform Group , Cabinet Office 21 November 2011. What are better business models?. Member owned. HMG/Member owned. Outsourced Private owned Service contract. Privatise.

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Better Business Models

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  1. Better Business Models Katharine Davidson Executive Director, Strategy & Management Information Efficiency and Reform Group , Cabinet Office 21 November 2011

  2. What are better business models? Member owned HMG/Member owned Outsourced Private owned Service contract Privatise HMG owned In House HMG/Member/JV owned Each model has pros and cons, but overall we are agnostic. Pragmatic judgement on merits, though understandably there’s interest in mutual principles

  3. How do they support HMG Goals? HMG Goals Efficiency and Reform Agenda Transparency Digital Reform Efficiency Growth Deficit Reduction Open Public Services Better Business Models Aggregate Procurement Supplier Management Spend Controls

  4. “Mutuals” offer attractive benefits: Employees • Greater engagement • Ownership stake • Freedom to innovate & improve citizen services • Better value • Better service post-deal • Ownership stake protects taxpayer • Hedge poor initial contracts Mutual principles • Opportunity to grow through provision of capital or expertise External partner Taxpayers + Support SR reductions with at least 34% cost reduction + High quality services enabled by private sector investment of capital and expertise + Community benefit unlocked to ensure local people benefit + Performance Management rigour + Service & Incentive culture

  5. Efficiency • Business Models must lower Costs Better Business Models • Better Business Models • Agnostic about types of models. • Diversity of providers. • Create new companies. • Greater transparency. • Growth • Create new companies • Unlock barriers to growth • Reform • Approach with zero-base mentality • Transformational • Close Productivity Gap

  6. Rallying Cry: Where Next? • Our next steps for early 2012: • Recruit head of Commercial team • Complete Phase 1: MyCSP • Develop Phase II pipeline with industry • Create forum for pro-active industry engagement • What can you do? • Find out more at one of the breakout sessions today • Develop specific ideas and share them with us • Offer us frank feedback on the policy & execution

  7. Better Business Models Katharine Davidson Executive Director, Strategy & Management Information Efficiency and Reform Group , Cabinet Office 21 November 2011

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