Employee and user ownership seminar briefing paper

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    How can user and employee ownership drivebetter public services?

    Public interest seminar 9 March 2010

    There is renewed interest amongst politicians and policy-makers from across the political

    spectrum in the impact of employee and user owned organisations. This seminar will explore

    different models of user and employee ownership, looking at which are more relevant to

    public services. The seminar will cover a range of topics relevant to discussions about how

    alternative forms of ownership might be applied in the context of current policy and practice.

    Issues include:

    Understandingthe benefits how to share understanding of the benefits that

    employee-owned models bring in terms of innovation, efficiency and customer focus,

    amongst employees and client groups. Also asking what are the advantages and

    disadvantages of involving service user representatives in the governance of public

    services?

    Transitions - How might public services migrate to these alternative forms of ownership,

    not only legally and financially but considering all aspects of organisational health and

    risk management? What are potential barriers and how might they be overcome?

    Measuring success - a key issue in considering the value of moving towards a model of

    service user or employee ownership will be how to measure the success of such

    ventures. This requires inclusion of the broader value of organisations such as self worth

    for staff, broader outcomes for users, and impact on the public realm and social capital.

    Recent debate on models of ownership

    Commission on Ownership

    The formation of an independent Commission on Ownership reflects growing recognition by

    the government of the importance of service user and employee ownership. Researching

    over 18 months from February 2010, the Commission will explore how ownership impacts

    upon customer service, staff engagement, risk taking and entrepreneurialism.1

    Political perspectives

    In the autumn political parties made announcements about involving employees and serviceusers in future public services. The Labour Party emphasised the potential of mutuals in

    public services for becoming an expression of the new national soul post-credit crunch.2

    Mutuals and other forms of co-governorship are seen as a possible alternative to the

    traditional shareholder model underpinning markets which failed somewhat spectacularly

    during the financial crisis. With this shift away from state and market provision there is a

    move towards using the voluntary sector, community groups and encouraging social

    enterprises by offering tax breaks. Co-operative and mutual ideals are likely to feature in

    Labours election manifesto with mutuals playing a bigger role in schools, hospitals and

    1http://www.mutuo.co.uk/latest-releases/commission-on-ownership

    2http://www.guardian.co.uk/commentisfree/2009/dec/14/mutual-interest-public-services

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    http://www.guardian.co.uk/commentisfree/2009/dec/14/mutual-interest-public-serviceshttp://www.guardian.co.uk/commentisfree/2009/dec/14/mutual-interest-public-serviceshttp://www.guardian.co.uk/commentisfree/2009/dec/14/mutual-interest-public-services
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