
It is important to remember that when it comes to selling services, you must deliver on your promises.
As many have now been in place for a few years, we would advise that consideration is given to a review of the structures which are in place. Such a review need not be very expensive, and experience shows that, if done with the right experience and knowledge it may very well result in increased delivery and effectiveness which quickly repays the expense of the review.
Councils have had great success in pioneering new structures to achieve improved service provision and generate income. Many changes also reflected the move to a more commissioning based structure, as opposed to direct delivery.
These new structures may include one or more (or indeed a group structure may have been created):
For certain councils with multiple vehicles the change may have happened all at once or (more likely) has been incremental as responses from different service and corporate areas to particular needs and initiatives, with little linkage into the other vehicles in existence or subsequently developed by the Council.
It is, of course, important to consider how each vehicle is operating to deliver its objectives on an individual basis. However, our view is that Councils should also review how their vehicles are interacting both with the Council and each other. This should include governance issues, for example, whether the structures in existence provide appropriately for accountability and transparency both independently and as a group; and also look at what developments are likely in the future and how these can best be incorporated.
Other matters to look at include whether there is sufficient cross working and peer support with experience and learning shared; how the Council as a corporate body relates and communicates on a strategic level to the various entities, and how risk management and performance are managed, both at the individual level and in relation to the Council as owner. Does the way in which the entities are managed take proper account of the Council’s strategic objectives?
Our top tips for any review:
A final note relevant to alternative delivery models, if you have a company or a limited liability partnership (even if the Council’s interest is indirect) – have you considered whether the Council needs to be referred to in the Register of Persons with Significant Control in place?
For more information, please contact Alex Lawrence.
It is important to remember that when it comes to selling services, you must deliver on your promises.
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