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Public Sector Mutuals : Understanding Transition

Research on the transition process of public sector mutuals, including governance challenges, external supports, critical factors, and designing and managing the transition.

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Public Sector Mutuals : Understanding Transition

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  1. Public Sector Mutuals:Understanding Transition Dr Will Davies, Dr Ruth Yeoman & Professor Jonathan Michie. Centre for Mutual & Employee-owned Business University of Oxford 22nd November 2012

  2. Why research is needed • Public and government attention on mutuals for public service transformation • Cabinet office initiatives to support the number and variety of public sector mutuals • Awareness and understanding of the mutual business model still evolving • Systematic understanding of change management specific to mutual organisations.

  3. What we did Interviewed leaders and stakeholders in six public sector mutuals: Salford Community Leisure Reddish Vale Technology College Rochdale Boroughwide Housing Millmead Children’s Centre Care Plus Group CMFT Manchester

  4. What we asked - What prompted the transition • How do regulatory systems support or impede mutuals • What types of expertise and advice do mutuals need • What skills shortages do mutuals face and how do they overcome them • How can employees be successfully involved in mutual governance. What about unions. • How can local and central government support the transition to becoming a public sector mutual

  5. Preliminary Findings • Multiple change • Pacing Change • Incomplete expert advice • Novelty of the governance model • Institutionalising stakeholder voice • Creating and sustaining a mutual culture • Identifying early adopters • Understanding particular motivations and reasons for change • Innovative communications

  6. Emerging Themes • Governance Challenges 2. External Supports and Constraints 3. Critical Factors 4. WIBBI

  7. Governance Challenges Governance Learning the mutual model - what it means to be a membership organisation Defining and instituting procedures Defining and understanding the membership Redesigning the Board Understanding the role of the non-exec Board or Representative Body

  8. Governance Challenges Leadership Cultural change (equality, fairness, mutual respect) Finding key supporters Recruiting the board Taking governance seriously – handing over power Communication Stakeholder engagement Honesty and transparency Performance evaluation Finding expertise and experience in member mgt

  9. External Supports and Constraints Identifying the right model Sourcing expert professional advice (at affordable price) Sourcing training and development Finding precedents Being judged on external standards which do not include mutual performance Extent of government support. e.g. school targets and threat of closure Management support and capability formation Finance Variable support from local government Regulation

  10. Critical Factors External Supportive council with long-running contracts Lack of competition Connection to the cooperative and mutual movement Risk safety net Money

  11. Critical Factors Internal Personal investment of leader; tenacity of key individuals Pre-existing values and culture Finding external professionals, practitioners and mentors Identifying and encouraging individual champions Enthusiasm for developing active citizens Relationship with member community Developing a programme of face to face contact with stakeholders Finding the right senior executives

  12. Wouldn’t It Be Nice If... Another way of imaging or ‘branding’ membership Already existing communication and branding strategy Government money to support costs of change More understanding of how roles, for example teachers, change in the transition to mutualism (implications for accountability and performance management) Mutual finance Widespread governance expertise Local government onboard Sharing of functions Regulations reflect devolved responsibility

  13. Designing and Managing Transition • Designing transition to a dual bottom-line organisation – clarity of economic and social purposes • Planning for change – assessing cultural readiness; involving multiple stakeholders; developing skills in leadership and co-ownership • Measuring change – knowing the changes you want to see and what evidence will demonstrate those changes

  14. Taking the Research Forwards Developing the theory and practice of change in mutual organisations A knowledge database of best practice for transitioning to being a mutual International comparisons

  15. Ruth Yeoman Oxford Centre for Mutual and Employee-owned Business Kellogg College, University of Oxford ruth.yeoman@kellogg.ox.ac.uk http://www.kellogg.ox.ac.uk/MEOB

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