Commercial Models Mutuals Programme

Commercial ModelsMutuals Programme

Presentation to East Midlands CouncilsWednesday 10th July

William BurgonPolicy and Commercial Advisor, Cabinet Office

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Commercial ModelsMutuals Policy

The Coalition Programme for Government made a clear commitment to new forms of organisations delivering public services

Commercial Models - Mutuals Programme

“We will support the creation and expansion of mutuals, co-operatives, charities and social

enterprises, and enable these groups to have much greater involvement in the running of

public services”

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Commercial ModelsMutuals Definition

Although the sector has varying definitions, a public service mutual has three key characteristics


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Commercial ModelsMutuals Numbers

The number of public service mutuals is growing rapidly, with many more in development

Commercial Models - Mutuals Programme Probation

9 70 120

Q4 2010 Q2 2013 Projected

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Commercial ModelsMutuals Sectors

Mutuals are operating in a range of sectors, delivering services from the front line to the back office

Commercial Models - Mutuals Programme Probation

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Community Learning

Libr

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Health

Social Care

Soc

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Fire

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Education

Children & Youth

Leisure

Hou

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Community Safety

Environment

Sch

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Commercial ModelsMutual Sectors


The growth in scope has been explosive, and developing projects will further broaden the services offered by mutuals

Developing

Adult & Community Learning Services Children & Youth ServicesCommunity safety & Criminal Justice Culture & LibrariesEducation EnvironmentFire and Rescue Authorities HealthHousing Integrated Health and Social CareLeisure Social CareSocial Work TBC

Live Q4 2010 Live Q2 2013 Developing

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Commercial ModelsMutuals Benefits

Mutuals deliver a number of benefits which improve outcomes for staff, for commissioners, and for citizens


Service improvements

Savings and efficiencies

High growth and additional

contracts

Lower absenteeism

Reduced staff turnover

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Commercial ModelsWhat We Do


Our work is designed to inform, guide, and support public sector staff and parent bodies along their journey to mutualise services

Campaigns

Commissioner

Support

Stakeholder

Engagement

Mutuals Support

Programme

Mutuals Information Service

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Commercial ModelsMutuals Support Programme


The Mutuals Support Programme provides a comprehensive package to help at every stage in the journey

Exploration Planning Development

Website & Hotline ‘One to Many’ Training

‘One to One’ Funding

Ambassadors & Mentors

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Commercial ModelsMutuals in Action


A number of mutuals have already recorded impressive results, and the evidence base continues to grow

CECS SEQOL Social adVentures 3BM

8% savings last year

£3m new business in last 12 months

Staff innovation resulted in iPad deployment

First mutual joint-venture in wider public sector

Combines public service ethos and private sector expertise

4% increase in nurse visits per month

12% savings in first year

Building network with local VCSE providers

262% growth winning RBS SE100 award

Expansion into new and diverse service areas

20% fall in absenteeism cost

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These independent businesses are delivering significant improvements in productivity, driving down staff absenteeism

Productivity

• City Health Care Partnership CIC has delivered 4% efficiency savings, worth £600,000 a year.• Central Surrey Health made 41% productivity gains on the Stroke Ward at Epsom General

Hospital, so patients get 76 more treatment slots per week.• Anglian Community Enterprise achieved 4.5% efficiency savings in 2011/2012 worth £1.4

million.

Staff Absenteeism

• At Care Plus Group - average sickness pre spin-out was 22.3 days per year. It has now fallen to 10.6 days per year.

• At Social adVentures, the cost of staff on sick leave before spinning out was £25,000. It is now only £2,000.

• At Central Essex Community Services, days lost to sickness absence per FTE decreased by approximately two days per employee per year.

Staff from Central Essex Community Services (left) and Central Surrey Health (below) at work

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They are also growing rapidly, both in terms of staff size and turnover, whilst delivering significant improvements in user outcomes

Growth

• Social adVentures won the RBS SE100 Index Growth Champion award as its annual turnover increased 262%.

• City Health Care Partnership CIC has expanded from 1,200 to 1,400 staff.• Project Salus has increased its turnover and staff 30% since spinning out.

Outcomes

• NAViGO’s 2011 staff survey saw 79% of staff recording patient care as their Trust’s top priority, against a national average of 66%.

• 75% of SEQOL’s re-enablement patients do not require long-term term care.• After Circle’s mutualisation of Hinchingbrooke, cancer targets which were last met in

summer 2010 have been met five months running.

City Health Care Partnership CIC staff at work

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Commercial ModelsMutual JVs


Mutual joint-ventures present another take on the model, and are already successfully delivering core services in a number of sectors

• 3BM is the first mutual joint venture to spin out of local Government.

• They have entered into a partnership with Prospects, the education employment company, bringing benefits to both sides.

• By combining the public service experience and ethos of 3BM’s staff with Prospects’ capital and business expertise, 3BM is leveraging the best of the public and private sectors.

• This means both parties can access skills and resources they would otherwise lack, enabling 3BM to provide a suite of high quality services to schools, including financial management, IT, and building development

• In spinning out, the local councils will see £1million in savings over the next four years.

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Commercial ModelsFind Out More


Click through to the Mutuals Information Service, call the hotline, and follow us on Twitter

Online

mutuals.cabinetoffice.gov.uk

Hotline

0845 5390 543

Twitter

@mutualsgovuk

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Commercial ModelsQ&A


Q&A

Commercial Models Mutuals Programme

Documents

Transcript of Commercial Models Mutuals Programme