Better Business Models

The Better Business Models agenda is reforming the delivery of public services by introducing smarter ownership structures to increase quality and value, and unlock growth.

Each service is unique so we’re taking a non-dogmatic approach, looking for the best business model for each individual business. 

Minister for the Cabinet Office Francis Maude said:

In the past people thought there was a kind of binary choice of the government providing a service in-house or outsourcing it. But this didn’t always get us the best services at the best price. What we’re interested in are better business models, which will include mutuals, joint ventures and other models. The only question we will consider when choosing suppliers is who will give us the best, most cost effective service. Efficiency and growth will march hand in hand.

The Cabinet Office is particularly interested in models that engage employees and unlock the latent innovation and talent that exists across public services. To achieve this, we will harness the benefits offered by employee ownership. Embedding mutual principles in organisations will increase staff motivation and drive productivity.

The Cabinet Office wants to let public service professionals take control of their operations, and tailor their services to meet the needs of their users and the taxpayer.

The result will be better, more efficient public services.

Crown Commercial Lead Stephen Kelly said: 

I have experienced how empowering employees with ownership transforms organisations. It revolutionises how people engage at work for the benefit of the customer. The potential for similar transformation of government and citizen services is the ultimate prize.

To drive this reform, the Cabinet Office is offering targeted support to help meet ambitions in a broad range of environments, and in the wider public sector is supporting mutuals, charities, social enterprises and other models. New models will be developed with a pragmatic and flexible approach, with solutions determined according to the nature of the service being delivered.

One such model is the innovative pathfinder Mutual Joint Venture, My Civil Service Pension (MyCSP). MyCSP will provide pension administration services for civil servants through a model where ownership is shared between employees, government and a private sector partner.