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From NAVCA09 conference in Blackpool. Workshop delivered by Susan Steed from New Economics Foundation.
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nef (the new economics foundation)
Sustainable CommissioningNAVCA
Susan Steed
nef (the new economics foundation)
nef (the new economics foundation)
Outline
• Background to Commissioning for Public Benefit
• Camden Model– Theory– Practice
• How to influence the Commissioning Process
nef (the new economics foundation)
Problem 1
nef (the new economics foundation)
Problem 2
Tend to measure what we can count
What get’s measured is what gets valued
What get’s valued is what we pursue
The things that matter most to us get left out
nef (the new economics foundation)
Problem 3
nef (the new economics foundation)
The environment
The result
• Poor management of resources triple crunch:
The economy People
nef (the new economics foundation)
In summary…
We are in danger of creating …
FALSE ECONOMIES
e.g. Investing in higher quality residential care for children
nef (the new economics foundation)
How does Sustainable Commissioning Help Us?
A framework for measuring what matters– Triple bottom line– Giving voice to those normally excluded from
decision-making
• Basis for debating the allocation of (scarce) resources to maximise social, environmental and economic outcomes– Organisations– Society
nef (the new economics foundation)
Treasury Definition VfM
• Quality and whole of life costs– “VfM is defined as the optimum combination of whole-
of-life costs and quality (or fitness for purpose) of the good or service to meet the user’s requirement. VfM is not the choice of goods and services based on the lowest cost bid.” HM Treasury (2006) Value for money guidance
• Wider cost and benefits– “Wider social and environmental costs and benefits
for which there is no market price also need to be brought into any assessment. They will often be more difficult to assess but are often important and should not be ignored simply because they cannot easily be costed.” HM Treasury Green Book
nef (the new economics foundation)
THE Camden MODEL
nef (the new economics foundation)
1.
Activity
2.
Output
3.
Service level outcomes
4.
Camden Community outcomes
–social–economic–environment
5.
Value–Quantitative–Qualitative–Monetizeable
Where value accrues:- To Service- Camden wide- central government
Sustainable Commissioning outcomes framework
Community strategy & Corporate priorities
Commissioner & service user priorities
National outcome frameworks
nef (the new economics foundation)
Asking the right questions
Service Level Outcomes
Service Users
• Have enhanced psychological well being
• Have enhanced Physical well being
• Find meaningful employment, training or voluntary work.
nef (the new economics foundation)
Asking the right questions
Community Level Outcomes
Social Outcomes• Community Cohesion• Reduced Crime
Economic Outcomes• Stimulate small firms, BME businesses, social enterprises & CVS• Reduce worklessness & economic inactivity
Environmental Outcomes• Reducing waste• Reducing energy usage & CO2 emissions• More recycling of goods
Economic
EnvironmentalSocial
nef (the new economics foundation)
Asking the right questions
Co-production
Within the service specification we asked;• What role would you envisage for service users’
in the development and delivery of your service?• How does your service identify and mobilise
service users strengths?• How would the contribution of service users,
carers, family, peer group, neighbours and the wider community be measured or rewarded?
nef (the new economics foundation)
Outcomes of the tenderprocess• Consortium of 3 medium-sized locally
based 3rd sector providers
• Not cheapest
• Commitments to:– Community Outcomes
– Co-production
nef (the new economics foundation)
www.homelessoutcomes.org.uk
Tracking outcomes – Outcomes Star
nef (the new economics foundation)
Challenges for commissioners• Culture change - outcomes rather than outputs• Institutional context often incentivises narrow
interpretation of Value for Money:• Recognising savings across the council, and
wider – getting information on budgets and budget holders
• Attribution – how do we know this service created this impact
• Commissioning for outcomes vs monitoring for outcomes.
nef (the new economics foundation)
Challenges for providers
• Training and capacity building esp. for smaller 3rd sector orgs
• Raise awareness of wider impacts• Partnerships with other providers• Co-production: a trusting relationship
between commissioner, provider & service user
• A lack of outcomes data evidence to present at tender stage.
nef (the new economics foundation)
How to encourage your local authority to use SCM Sustainable Commissioning has the following features:• bottom up approach to commissioning which fosters,
rather than stifles, innovation. • focus on outcomes, rather than narrow output targets,
focuses investment on what matters.• maximises every pound spent by the public purse by
achieving wider social, economic and environmental outcomes and encouraging cross-departmental savings.
• levels the playing field between the third sector and other providers because effectiveness, rather than unit cost, becomes the key consideration.
nef (the new economics foundation)
How to encourage your local authority to use SCMTop Tips:
• Get up to speed with the Compact and the Community Strategy
• Legal issues
• Effectiveness and value for money
• Deliver with service users.
• Engage with every level of the commissioning process – see next slide.
nef (the new economics foundation)
Getting impact in to the procurement process
nef (the new economics foundation)
Developments
• Camden
• Links with other commissioning frameworks and personalisation agenda.
• Advice UK
nef (the new economics foundation)
So What?
nef (the new economics foundation)
Further information• Sustainable Commissioning: [email protected]
• www.neweconomics.org.uk– A Better Return: Setting the foundations for intelligent commissioning to
achieve value for money – I&DeA & OTS Third Sector Commissioning Programme
– Measuring real value: A DIY guide to Social Return on Investment– Unintended Consequences– Coproduction Manifesto
• www.procurementcupboard.org.uk• www.proveandimprove.org