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Workshop C: Profitable Partnerships in tough times Mike Britch, Norse Group Managing Director.

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Presentation on theme: "Workshop C: Profitable Partnerships in tough times Mike Britch, Norse Group Managing Director."— Presentation transcript:

1 Workshop C: Profitable Partnerships in tough times Mike Britch, Norse Group Managing Director

2 “LAs must consider fundamental changes to the way in which services are provided.” “Partnership working between Councils and other local agencies is key to re-designing public services and to ensuring good outcomes at lowest cost.” Department for Communities and Local Government

3 Partnership “An agreement in which parties agree to co-operate to advance their mutual interests.” Contract “An agreement entered into by two or more parties, each of whom intends to create one or more legal obligations between them.”

4 Partnership versus Contract Contract  High reward/high risk  Requires detailed specification  Can drive win/lose behaviours  Certainty of outcome but change can be expensive Partnership  Lower risk/reward  Flexibility  Influence  Speed

5 Profitable partnerships?  Public/Private partnerships Requirement for full OJEU process  Public/Public partnerships Use of Teckal exemption

6  Common objectives  Valuing each other’s contribution  Knowing what success looks like  The partnership being greater than the sum of its parts Ingredients for a successful partnership

7 Freedom to:  Trade  Innovate  Generate profit  Do things differently  Experiment/get things wrong  Be successful! Ingredients for a successful partnership

8 What can partnership offer?  Financial return over and above initial savings  Vehicle for service transformation  Flexibility  Operational freedom: expand skill base capacity commercial culture

9 To combine public service ethos with commercial and entrepreneurial skills  Commercial and dynamic leadership  Cultural change by staff Career opportunities Business focus Client centric  Robust monitoring and reporting systems  Built around service specifications and KPIs Profitable partnerships need...

10  Accountability and personal ownership  Commercial systems HR Finance ICT  Sales Function  Awareness of importance of cash flow Profitable partnerships need...

11  Formed in 2002  Grew out of DSO/DLO and set up in response to CCT  Staff transferred to company  NCC single Shareholder  Board of Directors to ensure NCC strategic control  2002: Turnover = £47m  2012-13: Turnover = £250m The Norse Group

12 The Norse Group Joint Venture Model  Separate joint venture companies limited by shares – 19 in place already  Board of Directors 2 senior Partner Authority nominated 3 Norse Group  Shareholding split 80% Norse – 20% Partnering Authority  Profits split 50-50  Norse Group takes commercial risk  Equal Shareholder rights  Shared vision and objectives

13 Via its partnerships, the Group has:  responded to market failure Care Homes Affordable Housing Contract failures – Connaught  created new opportunities Energy management – CRC Waste disposal  changed with the market Free Schools Academies

14 Driving value from partnership  Doing the same things via a different vehicle will not deliver a step change or profitability  Use the partnership to change the outcome in service delivery and client commissioning  Success can only come from growth. Service efficiencies will only go so far

15 Mike Britch Managing Director Norse Group 01603 706100

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