2The biggest market of them all Christopher Knell FRSA MIOD MAAT CPFA Business Partner Finance Training and Improvement Westminster City Council
3About the speaker 12 years experience in the Public Sector Business Partner Finance Training and Improvementat Westminster City Council8 years experience in the Voluntary SectorTreasurer of Headway East LondonFellow of the RSA and co-author of ‘The Failure Files’6 years experience in the Private SectorVice-Chair of the Institute of Directors, Young Directors ForumG20 summit delegate representing the UK and young entrepreneurs12 years experience in the Public SectorStarted as an admin assistant back in 2001, AAT at evening classes and on to CIPFA as I progressedAt Westminster I design and deliver training and projects to improve the effectiveness of Finance8 years experience in the Voluntary Sector-Serve as Treasurer for the brain injury charity, Headway East London; and as a fellow of the Royal Society I co-authored ‘The Failure Files’ a book that explores the causes and consequences of failure in Individuals, Organisations and Societies6 years experience in the Private Sector-Co-founder of the Institute of Directors Young Directors Forum, currently Vice Chair-My proudest achievement to date was being one of only 4 younger people invited to represent the UK and young entrepreneurs at the 2012 G20 Summit in Mexico City, where I led an international working group on the role of taxation and regulation as barriers to enterprise and had the pleasure of meeting the Mexican President who presented our communiqué to all 20 World Leaders
4The biggest market of them all Hands up if you are employed by orwork for the public sector?Hands up if you provide products tothe public sector?
5The biggest market of them all Objectives Understand the breadth and scope of thepublic sectorUnderstand how local government supportsthe business communityRecognise the opportunities that Shared ServiceCentres and Business Partners provide for you
6The biggest market of them all Objectives Understand the breadth and scope of thepublic sector
7Breadth and scope of the public sector Westminster
8Breadth and scope of the public sector - Westminster Total General Fund Income 2012/13 £880m
9Breadth and scope of the public sector - Westminster Total General Fund Expenditure 2012/13 £880m
10Breadth and scope of the public sector - Westminster The council has about £2.2billion of assets on its balance sheet Including over £1billion of housing stock.
11Breadth and scope of the public sector- Greater London Westminster coversjust 8 ¼ square milesGreater London@ 600 square miles+32 London Boroughs
12Breadth and scope of the public sector - United Kingdom Westminster coversjust 8 ¼ square milesUnited Kingdom@ 94,000 square miles+ 400 Local Authorities+ 500 Health Trusts+ 25,000 Schools andeducation establishments
13Breadth and scope of the public sector How much do you think the public sector spentin 2011/12?£695 billion47.3% (nominal gross domestic product)48.6% Peak in late 70’s38.8% Trough in late 80’s
14Breadth and scope of the public sector What services aren’t provided by the public sector?“From Vermin to Vice”Pest control to licensing“Ultra vires”Outside the scope of the public sector(Beyond the powers)
15Breadth and scope of the public sector Hands up if its not provided by the public sector?Sport?2012 Olympics (£2bn of £9.3bn from the public purse)Theatre?Lincolnshire Council sold off ‘Theatre Royal’ in 2010MOT?Nearly 100 Uk council test centres nation wideGambling?UK government sells Tote (high street betting shops) to Betfred in 2011Art?Hackney council selling Henry Moore sculpture worth £20mAirport?Welsh assembly buys Cardiff airport for £52m in 2013
16Breadth and scope of the public sector How many people are employed by the public sector?5.6 million people are directly employedDown from circa 6 millionPublic, Private or VoluntaryYour people are the most valuable resource you havePublic sector has an exceptional record for supporting staff development15% of finance staff at Westminster are currently studying
17The biggest market of them all Objectives Do you have a better understanding of thebreadth and scope of the public sector?Understand how local government supportsthe business communityRecognise the opportunities that Shared ServiceCentres and Business Partners provide for you
18The biggest market of them all Objectives Understand how local government supportsthe business community
19Supporting the business community Hands up if you have provided goods or services forthe public sector?Supporting the business community isn’t all about advice£695 billion was spent by the public sector in 2011/12Private sector suppliers make up a significant proportion of this,from stationery to staffing.
20Supporting the business community Key Partners for Westminster City Council- Serco (formally Vertex)EnterpriseVeolia- City West Homes (CWH)CapitaCap GeminiGreenwich Leisure Limited (GLL)STATS TO FOLLOW ON SME’s
21Supporting the business community The UK government has 4 aims to help the economy to grow:To create the most competitive tax system in the G20To make the UK the best place in Europe to start,finance and grow a businessTo encourage investment and exports as a routeto a more balanced economyTo create a more educated workforce that is themost flexible in EuropeI don’t want to get into politicsBut I do want to look at what the public sector is doing“To make the UK the best place in Europe to start, finance and grow a business”
22Supporting the business community https://www.gov.uk/browse/businessHands up if you’ve used one of these websites?
23Supporting the business community https://www.gov.uk/browse/business
26Supporting the business community Business information points in Westminster LibrariesAdvice, market research, networking and talksPadding Development TrustSmall grants and loan support, business advisors and coachingPortobello Business CentreSupport for start-ups and established business looking to expand
27Supporting the business community Hub WestminsterBusiness facilities, workshops and networks to support collaborationWestminster Business CouncilMember workshops and networkingWestminster Enterprise CentreFree confidential business advice
28Supporting the business community Other business support accessible via Westminster:Capital EnterpriseCENTA Business ServicesLondon Development AgencyLondon Chamber of CommercePrince’s Trust Enterprise Programme
29Supporting the business community Hands up if you intend to check out your localcouncils website if you have a business or areinterested in starting one?
30Supporting the business community Business Rates RetentionWhy is local government so active in supporting the business community?Council’s collect NNDR (business rates) for Central GovernmentApril 2013: Business Rates Retention“The levy is designed to ensure that the more councils grow their business rates, the more they benefit”
31Supporting the business community Business Rates RetentionWestminster City Council collectsover £2,000m but keeps £183mIf a councils increases theirbusiness rates they get tokeep moreFunds which can be spent on the local community
32The biggest market of them all Objectives Understand the breadth and scope of thepublic sectorDo you have a better understand how local government supports the business community?Recognise the opportunities that Shared ServiceCentres and Business Partners provide for you
33The biggest market of them all Objectives Recognise the opportunities that Shared ServiceCentres and Business Partners provide for you
34Shared Services & Business Partnering Hands up if you work in or employ Shared Service Centres or Business Partners?
35Shared Services & Business Partnering What are Shared Services Centres?A centralised team with standardised processes including:- Transaction processing- Making and receiving payments- Accounting and financial reporting routinesWhat are Business Partners?Finance professionals who supports and advises business areas:Interpreting and explaining financial informationSupporting and influencing decision makingAdvising on risks, opportunities and mitigations
36Shared Services & Business Partnering Barbara Moorhouse,Chief Operating OfficerWestminster City CouncilJuly 2011Our ‘Finance Foundations’ project will introduce a new operatingmodel. It will provide a platform for improving financial management,with more professional and commercial support to managers andnew best practice (standardised) processes.
37Shared Services & Business Partnering Corporate FinanceAnnual accountsStrategyFinance Business PartnersSupport andchallengeBusiness UnitsBudget monitoringand forecastingBusinessImprovementContinuous improvementEffective communicationsSharedService CentreTransactions processingBest practice
38Shared Services & Business Partnering Expert services(Corporate Finance)Finance leadership(Business Partners)StrategicShared service centreFinancial supportOperationalCentralisedEmbedded
39Shared Services & Business Partnering Analytics(Informing)Accounting (Transactions)Accounting(Transactions)
40Shared Services & Business Partnering Advice(Deciding)Accounting (Transactions)Analytics(Informing)Analysis(Reporting)
41Shared Services & Business Partnering Who uses Finance Business Partners?It’s not new and it’s not uncommonPrivate SectorPublic SectorVoluntary Sector
42Shared Services & Business Partnering Why does this matter to you? As an employerProductivity boost enabling improved service levels or reduced staffingService resilience from increasing use of generic skills and processesImproved commercial decision making with Business PartneringWhy does this matter to you? As an employeeConsistency and standardisation allow greater productivityRotation within service areas provides a wider variety of knowledgePersonal and career development improved within larger centralised teams
43Shared Services & Business Partnering What should I you do to find out more?Check if your organisation has or is developingShared Services & Business PartneringEnsure your CPD includes the skills you need to get maximum benefit from Shared Services & Business PartneringResearch SS&BP in more detail:Deloitte “Finance Business Partnering being one step ahead”CIMA “Improving decision making in organisations”
44The biggest market of them all Objectives Understand the breadth and scope of thepublic sectorUnderstand how local government supportsthe business communityDo you recognise the opportunities that Shared ServiceCentres and Business Partners provide for you?