Developing Public Service Mutuals

Leaders for London
New approaches to service delivery
Developing public service mutuals
Brendan O’Keefe
Head of Services to Young People
Royal Borough of Kensington and Chelsea
RBKC Youth Support and Development Service
• 155 staff spread over several sites
• Integrated/multi-agency service
• Deliver wide range of youth support
• Budget of £4.6m 2013-14
• But…funding forecasts grim
Public bodies respond to the economic crisis
Sales of assets
Drop/stop/shut – esp. non statutory
Purchaser-provider nexus
Innovation – mutuals/trading companies/joint
Project Aim
• Take service out of LA and form a free
standing social enterprise and ELM
• Re-contract with LA at reduced cost
• Reduce overheads
• Identify other sources of funding
• Create democratic organisation
The difficult bits…….
• Procurement issues – EU Regs
• Commercial/business planning/expertise
• Financial planning
• Asset transfer issues
• Data transfer issues
• Tax planning
• Pensions
…………and many others!
The most difficult task of all …..
• Convincing staff it’s the right thing
for them
• It’s a very personal risk
• Scare tactics not enough
• Compelling vision of the future required
• But get it right and there are value gains
Result of staff ballot
• Held on 14 December 2012
• High threshold of 80% in favour set
• Result.....
In favour.........
100% that’s impressive!!!
The vehicle…
• CiC limited by shares (and limited to staff)
• Governance - board of directors
(inc staff reps and service users)
• TUPE transfer with admitted body status
• Buildings/equipment leased back
Epic CiC Board of Directors
5 elected
staff reps
4 NEDs
2 Service
User reps
This is us….
Key benefits already evident....
Buzz around the place
Motivation to succeed high
New ideas – innovation coming through
New mindset emerging
Feeling of ‘It’s in our hands’
What motivates us…
• Getting better outcomes for young people
• Empowering – not just engaging
• Reconnecting in a different way – YP in
• Co-production
Better by far than outsourcing!!
• Risk free commissioning
• Savings made but with added value
• Bigger return to commissioners as income
generated comes back to services
• Public money remains in public realm
• Assets locked for the community
• Developing a trusted partner
• Etc etc etc
Just apply the science!
• Top performing organisations......
give autonomy to staff,
have a clear sense of purpose
ensure a strong skill base
• Get these things right and watch your
staff fly and your services improve!!
We are creating fundamental change in the
Design your own appraisal
Peer target setting and performance review
‘Rule breakers’ – vote to get rid of a rule
Delivery staff design delivery – managers
• Democratic processes
• Build trust and unleash latent talent!
My contact details