1. nef (the new economics foundation) Sustainable Commissioning NAVCA Susan Steed nef (the new economics foundation)

2. Outline Background to Commissioning for Public Benefit Camden Model –Theory –Practice How to influence the Commissioning Process

3. nef (the new economics foundation) Problem 1

4. nef (the new economics foundation) Problem 2 Tend to measure what we can count What get’s measured is what gets valued What get’s valued is what we pursue The things that matter most to us get left out

5. nef (the new economics foundation) Problem 3

6. nef (the new economics foundation) The environment The result Poor management of resources  triple crunch: The economy People

7. nef (the new economics foundation) In summary… We are in danger of creating … FALSE ECONOMIES e.g. Investing in higher quality residential care for children

8. nef (the new economics foundation) How does Sustainable Commissioning Help Us? A framework for measuring what matters –Triple bottom line –Giving voice to those normally excluded from decision-making Basis for debating the allocation of (scarce) resources to maximise social, environmental and economic outcomes –Organisations –Society

9. nef (the new economics foundation) Treasury Definition VfM Quality and whole of life costs –“VfM is defined as the optimum combination of whole- of-life costs and quality (or fitness for purpose) of the good or service to meet the user’s requirement. VfM is not the choice of goods and services based on the lowest cost bid.” HM Treasury (2006) Value for money guidance Wider cost and benefits –“Wider social and environmental costs and benefits for which there is no market price also need to be brought into any assessment. They will often be more difficult to assess but are often important and should not be ignored simply because they cannot easily be costed.” HM Treasury Green Book

10. nef (the new economics foundation) THE Camden MODEL

11. nef (the new economics foundation) 1. Activity 2. Output 3. Service level outcomes 4. Camden Community outcomes –social –economic –environment 5. Value –Quantitative –Qualitative –Monetizeable Where value accrues: - To Service - Camden wide - central government Sustainable Commissioning outcomes framework Community strategy & Corporate priorities Commissioner & service user priorities National outcome frameworks

12. nef (the new economics foundation) Asking the right questions Service Level Outcomes Service Users Have enhanced psychological well being Have enhanced Physical well being Find meaningful employment, training or voluntary work.

13. nef (the new economics foundation) Asking the right questions Community Level Outcomes Social Outcomes Community Cohesion Reduced Crime Economic Outcomes Stimulate small firms, BME businesses, social enterprises & CVS Reduce worklessness & economic inactivity Environmental Outcomes Reducing waste Reducing energy usage & CO2 emissions More recycling of goods Economic Environmental Social

14. nef (the new economics foundation) Asking the right questions Co-production Within the service specification we asked; What role would you envisage for service users’ in the development and delivery of your service? How does your service identify and mobilise service users strengths? How would the contribution of service users, carers, family, peer group, neighbours and the wider community be measured or rewarded?

15. nef (the new economics foundation) Outcomes of the tender process Consortium of 3 medium-sized locally based 3 rd sector providers Not cheapest Commitments to: –Community Outcomes –Co-production

16. nef (the new economics foundation) www.homelessoutcomes.org.uk Tracking outcomes – Outcomes Star

17. nef (the new economics foundation) Challenges for commissioners Culture change - outcomes rather than outputs Institutional context often incentivises narrow interpretation of Value for Money: Recognising savings across the council, and wider – getting information on budgets and budget holders Attribution – how do we know this service created this impact Commissioning for outcomes vs monitoring for outcomes.

18. nef (the new economics foundation) Challenges for providers Training and capacity building esp. for smaller 3 rd sector orgs Raise awareness of wider impacts Partnerships with other providers Co-production: a trusting relationship between commissioner, provider & service user A lack of outcomes data evidence to present at tender stage.

19. nef (the new economics foundation) How to encourage your local authority to use SCM Sustainable Commissioning has the following features: bottom up approach to commissioning which fosters, rather than stifles, innovation. focus on outcomes, rather than narrow output targets, focuses investment on what matters. maximises every pound spent by the public purse by achieving wider social, economic and environmental outcomes and encouraging cross-departmental savings. levels the playing field between the third sector and other providers because effectiveness, rather than unit cost, becomes the key consideration.

20. nef (the new economics foundation) How to encourage your local authority to use SCM Top Tips: Get up to speed with the Compact and the Community Strategy Legal issues Effectiveness and value for money Deliver with service users. Engage with every level of the commissioning process – see next slide.

21. nef (the new economics foundation) Getting impact in to the procurement process

22. nef (the new economics foundation) Developments Camden Links with other commissioning frameworks and personalisation agenda. Advice UK

23. nef (the new economics foundation) So What?

24. nef (the new economics foundation) Further information Sustainable Commissioning: susan.steed@neweconomics.orgsusan.steed@neweconomics.org www.neweconomics.org.uk –A Better Return: Setting the foundations for intelligent commissioning to achieve value for money – I&DeA & OTS Third Sector Commissioning Programme –Measuring real value: A DIY guide to Social Return on Investment –Unintended Consequences –Coproduction Manifesto www.procurementcupboard.org.uk www.proveandimprove.org