Published on February 18, 2014
Contestability " Delivering Sustainable Government Services" © 2014 Grant Thornton Australia Ltd. All rights reserved.
Agenda • • • • • The Brief With governments experiencing pressure to reduce costs, increase service delivery and ensure quality, contestability is growing in favour. Contestability Challenges & Opportunities Key Considerations Case Study Questions While it is seen as a driver for innovation and efficiencies, there are inherent risks and barriers that need to be managed to realise these opportunities. With accountability for service delivery remaining with agencies, the way these contracts are managed and monitored is critical to sustainable delivery. " © 2014 Grant Thornton Australia Ltd. All rights reserved. Rory will discuss the changing environment, and the impacts that might be for businesses and clients throughout the NSW Public Sector. "
Contestability What is it…. "Contestability is not just outsourcing it is about the ability to act in an organisation's and its customer's best interests. By comparing, improving, outsourcing, insourcing, or do nothing" © 2014 Grant Thornton Australia Ltd. All rights reserved.
Contestability What is it…. Outsourcing / Commissioning "From the organisations perspective" FINANCE Quality of Service Contestable Services "from the customers perspective" Value For Money Encouraging Economic Vitality © 2014 Grant Thornton Australia Ltd. All rights reserved. IT HR / PAYROLL
Contestability Factors to consider • Who are your core customers (and potential customers)? • What do customers require? • What products & services meet those requirements? • How can those products/services be developed and delivered? • What business model will do this in the most efficient and effective way whilst maintaining competitiveness and the ability to adapt? © 2014 Grant Thornton Australia Ltd. All rights reserved.
Contestability What's driving the change • • • • • • • Smaller Government Pressures to budgetary spending, eg ABF Increasing customer expectations, eg social media Driving better 'value for money' eg CDC Reduce or modify services Accessing the best talent & capabilities Accessing new technologies eg smart apps © 2014 Grant Thornton Australia Ltd. All rights reserved.
Challenges & Opportunities Poor decision making & traditional mindsets • Failing to understand the full implications to other parts of the business or to partners/customers • Poor contract frameworks that build constraints • Believing that management responsibility is outsourced with the service • Management diligence in many cases has to increase © 2014 Grant Thornton Australia Ltd. All rights reserved.
Challenges & Opportunities What's feasible • • • • • External stakeholder and environment knowledge Internal analysis and planning Self knowledge Marketplace impact Skills and capabilities © 2014 Grant Thornton Australia Ltd. All rights reserved.
Key Considerations GT's perspective STRATEGY Strategic Alignment Leadership Involvement Benefits Realisation GO TO MARKET Tailored Solution Design Accurate Data Capturing Robust Contract Performance Outcomes Management focused on customer © 2014 Grant Thornton Australia Ltd. All rights reserved. Total cost V perceived cost Focus on benefits CONTINUOUS IMPROVMENT Relationship change from supplier to partner Review, test and re-scope Ongoing review and recalibration
Quality of data Level of organisation resources required Traditional mindsets and questions of accountability due to "Top Down" approach A phased approach © 2014 Grant Thornton Australia Ltd. All rights reserved.
Rory Gregg Partner, Health & NSW Public Sector Rory has built a career driving transformational change and innovation and is recognised as a leader with vision, outstanding leadership skills and enormous capacity to deliver outcomes. Rory is committed to working across the full spectrum of public and private enterprises to help clients think differently about change and build high performing organisations. Spanning the health, insurance, banking and finance and transport sectors, his strong leadership and strategic judgement have helped business leaders improve the way they do business, extract greater value from existing budgets and resources, and overcome productivity challenges. Core expertise • strategic planning • transformational change • workforce productivity and utilisation • performance improvement • organisational redesign and high performance cultures • developing and implementing board level strategy • change management • complex stakeholder engagement © 2014 Grant Thornton Australia Ltd. All rights reserved. Contact details T +61 2 8297 2531 M +61 2 8297 2400 E firstname.lastname@example.org
About Grant Thornton Grant Thornton is one of the world’s leading organisations of independent assurance, tax and advisory firms. We help dynamic organisations unlock their potential for growth by providing meaningful, forward looking advice. Proactive teams led by approachable partners use insights, experience and instinct to understand complex issues for privately owned, publicly listed and Public Sector clients and help them to find solutions. More than 35,000 Grant Thornton people, across over 100 countries, are focused on making a difference to clients, colleagues and the communities in which we live and work © 2014 Grant Thornton Australia Ltd. All rights reserved. 35,000 people across $4.2BN worldwide revenue (2012 USD) 100 countries 1,300 people nationally
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01 Making 'Contestability' Work in the Public Sector Making government services contestable presents a number of strategic challenges for the public sector.
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