Commissioning

nef (the new economics foundation)

Sustainable CommissioningNAVCA

Susan Steed



Outline

• Background to Commissioning for Public Benefit

• Camden Model– Theory– Practice

• How to influence the Commissioning Process


Problem 1


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


Problem 3


The environment

The result

• Poor management of resources triple crunch:

The economy People


In summary…

We are in danger of creating …

FALSE ECONOMIES

e.g. Investing in higher quality residential care for children


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


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


THE Camden MODEL


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


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.



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



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?


Outcomes of the tenderprocess• Consortium of 3 medium-sized locally

based 3rd sector providers

• Not cheapest

• Commitments to:– Community Outcomes

– Co-production


www.homelessoutcomes.org.uk

Tracking outcomes – Outcomes Star


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.


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.


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.


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.


Getting impact in to the procurement process


Developments

• Camden

• Links with other commissioning frameworks and personalisation agenda.

• Advice UK


So What?


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

Date post:	14-May-2015
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Commissioning

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