to be re-baselined to make it work.
However, the civil servants that work in the probation
service, who were TUPE’d to outside companies, have been
given the freedom to become more innovative in the delivery
of the service – areas of real inspiration that are just not
reported in the media. These same people now have to go
back into the civil service where their world will once again
become very fixed .
Public trust is at an all-time low and it is time for all of us in
the private sector to really push the messages of the good that
we deliver, the local economies that we support, the jobs that
we provide and ultimately the value that we can bring to the
public sector. We need to be vocal in what we can do better
and support ideologies that are di€ erent, particularly in our
very uncertain political climate, with nationalisation looming
ever closer in a lot of sectors that we are part of.
Many of the key suppliers to government have been working
closely with the Cabinet O€ ice to produce the Outsourcing
Playbook and embed social value within the body of its
contracts. However this will only work if it truly lands and
is fully understood within the civil servant commissioners.
Strategic suppliers are committed to delivering transparency.
However, this transparency in public sector KPIs where they
deliver the same services has not been so forthcoming.
There has been a lot of work done on developing
commercial skills, however the work to upskill those that
actually specify and manage contracts is yet to start and is
a big undertaking. Commercial and contract management
teams have been very disconnected in the past, leading
to poor commissioning and contract management. Local
government has been strong on social value and has
developed the National Themes Measures and Outcomes
(TOMs) Framework within the National Social Value
Taskgroup, however this has yet to be adopted by central
government.
Central government are currently consulting on Social
Value, but the questions have focused primarily on Small
Medium Enterprises which they appear to be fixated with.
The answers lie in a mixed market economy, which is the
healthiest solution with some new innovative models that
meet with social value intent.
FM PROVIDERS VIEW
SIMON VENN,
MITIE CHIEF GOVERNMENT
AND STRATEGY OFFICER
Let’s be clear, the principle
of outsourcing itself isn’t
flawed, but I think we
all agree that tangible
improvements can be made
to the way in which both the
private and the public sector
procure services. Working
together, we can refocus our
e€ orts to ensure the right
outcomes for clients, contractors, and above all, end users.
The government took an important step by collaborating
with private sector suppliers to launch its ‘Outsourcing
24 JUNE 2019
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FM CLINIC
Playbook’ earlier this year. Two vital pillars are ensuring
quality of service and value for money. This is a key shi‚ from
past procurement processes which, more o‚ en than not,
prioritised lowest price over value or quality.
This approach needs to be a core consideration for any
client before going out to market. Building a tender which
rates value above cost is the first step towards delivering high
quality, sustainable services. Clients need to ask how they
can best achieve this whilst allowing enough wiggle room
to encourage innovation. These go hand in hand as clients
should absolutely be asking for innovation to optimise the
cost of delivering services over the long term, whilst ensuring
the right quality standards. Adopting this method at the outset
will not only assist in top notch delivery, it should also set a
healthy tone for the contracting relationship moving forwards.
It also plays in to the development of KPI’s that align with
value rather than price. All too o‚ en, KPI’s are used as a
mechanism to recoup costs rather than maintain service
levels. This is a slippery slope for both parties which should be
avoided at all costs. Well considered and meaningful KPIs will
deliver consistent standards and true value which should be
the central objective of any contract.
There are two obvious, but fundamental, hygiene factors for
clients. The first is understanding the business model - and
financial position - of any supply chain partners. The second
is how services di€ er. Recognising that not all companies
employ the same model, or rely on the same financial levers
and having a solid understanding of how a potential partner
operates can impact the decision-making process. How do
they treat their own suppliers? Are they transparent about
accounting figures? Are their employees highly engaged? It
may seem obvious, but all these elements are great litmus
tests.
Overlay this with enquiries around culture to ensure a
good match. Upholding the same social values and sharing
aspirations will ensure both client and supplier are moving in
the same direction.
Having narrowed down to a final selection of potential
partners, requesting references, or to visit the site of an
existing client, is likely be an eye-opening experience, and an
opportunity to learn from what works, or has been improved
on other contracts.
This is also the time to interrogate the mobilisation plan
– it should be concrete. Sales teams can o€ er a dream, and
all too o‚ en leave the scene before the crime so get those
operational teams in the room. Meet the managers who’ll be
responsible for the contract on a daily basis and ensure there
is a clear escalation path, should it be needed. There should
be a commitment from the C-suite all the way down to the
front line…. That’s how you deliver the exceptional every day.
Of course, during any procurement process, there are
numerous questions which should be asked and too many
to list here. But, I suggest, if all roads lead back to ensuring
quality of service and value for money, you’ll be firmly on the
road to securing the best fit supplier for the long term. Simon Venn
ADVICE & OPINION
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