Pilot Learning Group. Round Table Action Learning Session 1: Models of partnership working

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1 Pilt Learning Grup Rund Table Actin Learning Sessin 1: Mdels f partnership wrking Intrductin The Academy fr Justice (AJC) pilt learning grup was established fllwing a requirement t develp Learning Grups fr members. The pilt learning grup fcuses n ne key area f cmmissining; prvider develpment, that was seen by the AJC membership as imprtant in imprving learning. The make-up f the pilt learning grup cnsists f members f the AJC wh cme frm public, private and vluntary sectr backgrunds. The bringing tgether f peple frm all business sectrs will significantly help in develping a better understanding f prvider develpment and will ensure that any learning disseminated via the AJC is suitably infrmed. Whilst this mix f peple frm different sectrs is beneficial, each member f the grup is als cmmitted t adpting an pen apprach t engaging in the pilt, explring differing issues regardless f the sectr they wrk in which will ensure any learning is nt biased twards a specific market sectr. The inaugural meeting f the pilt learning grup tk place n the 24 th February 2012 in Birmingham. Future activity will cnsist f a series f facilitated rund table actin learning sessins with a view t the sharing f experience and learning acrss the grup and t reprt back t Academy fr Justice Cmmissining fr wider disseminatin. There will be five rund table events cvering the fllwing subject areas: Subject Lcatin Date 1 Mdels f partnership wrking Havant April Lcalism Nrwich June Prcurement (Cmpetitive Dialgue) - sharing f experiences Balancing peratinal and cmmercial interests in cmmissining Influences - Gvernment, Media, Public Sectr what is the evidence base? Wakefield August 2012 Ple Octber 2012 Lutn December 2012 On cmpletin f the rund table sessins it is prpsed t share the findings and experiences f the Pilt Learning Grup with members at ne f the frmal AJC evening seminars early in 2013.

2 Rund Table Actin Learning Sessin 1: Mdels f partnership wrking The first rund table actin learning sessin fcused n mdels f partnership wrking, and was split int fur areas t facilitate discussin. These were: 1. Technical issues 2. Operatinal issues 3. Cultural issues 4. plitical/ecnmic Issues Each area was discussed in sme depth by the grup and the fllwing learning pints have been recrded t share with the AJC membership and ther interested parties. There was clear agreement within the grup that the uses f terminlgy can ften be misleading especially in the area f partnership wrking. All agreed that the term partnership has been widely adpted by many rganisatins, sme f which used it as a public relatins tl t give the impressin that all parties in a cmmercial relatinship are equal. The experiences f much f the grup, hwever suggested that tw imprtant factrs cntributed t a gd cmmercial/partnership relatinship. These were in ensuring that careful attentin was given t hw a cmmercial/partnership relatinship is set up and by clearly defining the relatinship in terms f gvernance, cmmercials and wh hlds the pwer. Examples f recent relatinships described as partnership mdels frm within the grup, were shwn t be either sub-cntract relatinships, where ne f the parties held the dminant cmmercial psitin r were lse alliances with n real gvernance structure. It was agreed that by adpting the crrect terminlgy and being transparent in where the pwer in the relatinship rests, ften helps in imprving stakehlder management and ensured that there is little r n ambiguity in the rles and respnsibilities f the parties. Hwever it was als recgnised that in a cmpetitive cmmercial envirnment, the use f the term partnership is a pwerful marketing tl in influencing cmmissiners, particularly when high value cmmunity based public services are subject t cmpetitive tendering. It was felt that the term will cntinue t be widely misused by all sectrs in the future, s the respnsibility n Cmmissiners t ensure they fully understand what gvernance sits behind the partnership befre awarding cntracts is imprtant. The grup was unanimus in recgnising that all successful partnership mdels and ther cmmercial relatinships are reliant n individual relatinship management skills. Mst f the grup were able t prvide examples where successful services delivery culd be directly attributed t individuals frm all parties develping gd wrking relatinships that built trust and allw issues t be reslved quickly and efficiently. Hwever mst f the grup had als experienced situatins where a change in persnnel had led t a significant degradatin in the relatinship, particularly where the change in persnnel was accmpanied by a plicy change. A key learning utcme frm this part f the discussin was that Cmmissiners will need t think thrugh hw they manage cmmercial/partnership relatinships where the service is fundamentally reliant n key individuals. This is particularly imprtant with services being cmmissined frm the vluntary and cmmunity sectrs, where in many situatins the service being cmmissined is in fact the

3 interpersnal skills f the staff within that rganisatin. These skills are ften nt transferable but d make a real difference t achieving psitive service user utcmes r prvide a benefit directly t the cmmunity. This adds a significant element f risk fr the Cmmissiner, wh will ften lk t the prvider t build in cntingency plans r financial remedies t cver the risk. Whilst these are traditinal mechanisms fr prtecting public mney, they d add tensin int the relatinship and Cmmissiners may need t explre ther mre innvative partnership mechanisms in the future. The gvernance f partnership/cmmercial relatinships was discussed in depth with the grup highlighting a number f issues that culd have a majr influence n the mdels f partnership adpted in the future. These were thught t be particularly imprtant in situatins where Cmmissiners were encuraging cnsrtia based service prvisin, payment by result mdels (that included multiple partners) r where prime cntracts were required t manage the supply chain. The main cncerns were as fllws: A significant number f the grup had seen an increase in the number f partners demanding exclusivity arrangements. Whilst this is nrmal cmmercial practice in the private sectr, it is generally nt applied t the vluntary and public sectrs and there is evidence that this may result in ptential cnflicts f interest fr thse rganisatins. There is als ptential fr larger prime cntractrs t gain an unfair cmmercial advantage when preparing fr the cmpetitive tendering f public service, if they are able t cntrl the traditinal pen infrmatin and data sharing culture f the vluntary sectr thrugh legally applied exclusivity agreements. Intellectual Prperty is als becming mre f an issue as rganisatins start t recgnise that there is value in the tls they develp. Hw these link with exclusivity arrangements, wnership, and requirements t share (if public funding was used in their develpment) will all need t be wrked thrugh. Sme f the grup felt that there was a risk that rganisatins, particularly in the vluntary sectr culd see an ersin f their ethical values as grant funding reduces and the need t partner t achieve sustainable lng term funding becmes mre acute. In this situatin many f the grup felt there was a significant risk that the wide scale adptin f the gvernments preferred payment by results system fr the delivery f public services will prmte a culture f cherry picking where prviders fcus n easy wins, leading t the segmentatin f the mre vulnerable and needy grups f services users. Fr many rganisatins, this grup f peple is cre and threats t service delivery and funding fr innvatin aimed at prgrammes r supprt is a serius cncern amngst rganisatins and service users (Clinks recently published a reprt Ecnmic Dwnturn Survey which details impact f cuts and changes t funding thrughut the Criminal Justice Sectr). Cnversely there is als a risk that any rganisatin prtecting its ethical values and cntinuing t wrk with hard t reach service users utside f the PBR mdel will see a reductin in its funding and eventual clsure f the business. Sme f the grup were already seeing a reductin in funding r had examples f rganisatins ceasing t trade because f the reasns discussed abve.

4 The Grup agreed that whilst they understd the Gvernments need t significantly reduce public spending, sme felt a public service cmmissining mdel that relied predminantly n scale and purchasing leverage t deliver savings was fundamentally flawed. It was felt that whilst scale was essential in delivering savings frm the prcurement f cmmdities r certain service categries, it was nt apprpriate fr frnt line public services delivered in the cmmunity. Several members f the grup prvided examples f like fr like services which had been adapted lcally t meet the needs f ften chatic grups f service users with multiple needs. The requirement fr tailring is further demnstrated by lcal and reginal demgraphic differences, requiring specific variatins t service delivery, including ppulatin prfile, cultural diversity, gegraphy etc. The grup felt that a ne size fits all cmmissining strategy where the service user is mdelled in the same way as any ther cmmdity and there is n lcal tailring, wuld either fail t deliver the predicted savings r wuld lead t a drp in services quality and desired utcmes. Traditinally, the failure f a service (particularly if there are plitical implicatins) leads t a blame culture and will ultimately put a strain n any partnership/cmmercial relatinship. The grup felt that sme rganisatins shuld therefre in future think lng and hard abut wh they partner with and there will be an increase in the levels f due diligence t ensure the partners share the same basic values. As stated earlier in the paper, there is clear evidence that gd partnership/cmmercial mdels have relatinship management skills at the cre f their success. Hwever the grup felt that careful cnsideratin wuld need t be given t the size and make-up f any partnership in rder t ensure that the necessary relatinships that facilitate success are able t flurish. There was a general acceptance that experience suggests that there is a pint in the develpment r grwth f a partnership when the crprate gvernance requirements r cmmercial plicies f ne f the parties becme mre imprtant than the need t maintain relatinships. An indicatin that this pint has been reached is ften when there is a marked change in the relatinship between the parties and it was suggested that further develpment f the partnership beynd this des nt prvide value. The last part f this paper lks at the tw imprtant elements f risk transfer and reduced funding in the cntext f partnership/cmmercial mdels. These are nt new issues and the grup were able t demnstrate that they were all used t dealing with them in their nrmal day t day business activities. Hwever sme members f the grup highlighted the impact n partnerships f the gvernment s desire t transfer risk ut f the public sectr int private and vluntary prviders. The tw elements f risk that will be transferred are financial (payment by results) and peratinal (service delivery) each f which bring different challenges. The grup felt that the allcatin f these risks between the partners, (depending n their rle) may lead t increased emphasis n hardnsed cntractual relatinships rather than the mre traditinal partnership principles ften adpted between the vluntary and public sectrs.

5 The grup recgnised that this wuld be a cultural change fr many rganisatins that wuld need t adapt nt nly their wn business culture but hw they apprach cmmercial relatinships. Hwever many f the grup als felt that there was a lack f cmmercial skills in many f the smaller vluntary, private and public sectr rganisatins which culd see them unwittingly accepting a disprprtinate amunt f risk either thrugh the cmmercial terms f the partnership r thrugh the tendering prcess. Many grup members als felt this was a distractin fr vluntary sectr rganisatins whse principal purpse is t deliver frntline services r t campaign accrding t their articles f assciatin. The undermining f and challenge t the vluntary sectr thrugh these shifts is significant and may mean a decrease in innvatin and quality services and a crrelated increase in lack f apprpriate services r access fr marginalised cmmunities. Cnclusin The rund table active learning sessin prved t be a rewarding experience fr all, participants generated high quality discussins n many aspects f partnership wrking. The pilt learning grup lived up t its cmmitment t be pen and hnest in their discussin with an aim f prviding high quality feedback t the Academy fr Justice Cmmissining. Fr this reasn the paper is framed in such a way as t highlight the issues discussed and the learning pints that came frm the discussins. Whilst it is accepted that many peple will nt agree with sme f the utcmes fr the discussins, we feel that by highlighting the issues, it pens up healthy debate and ensures that high quality and intelligent cmmissining activities are practiced acrss the whle f the public sectr.

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