Public private collaboration sparks fears

Public sector leaders are preparing themselves for a significant increase in public-private sector collaboration over the next few years, but most have doubts over its likely success.

A new study by management consultancy Hay Group has highlighted widespread opposition and resentment towards the trend among public sector leaders, driven by concerns over the risks of greater private sector involvement, including potential damage to public service delivery.

The report, Relationship Counselling, is the result of research among 200 senior leaders involved in partnerships with private firms, from local government, healthcare, uniformed services and universities.

As the public sector grapples with dwindling budgets, the number of partnerships with the private sector is set to more than double, according to the Hay Group study. Currently, just 17% of public sector organisations deliver more than 40% of services through partnerships, but public sector leaders expect this to reach 38% in three years' time.

However, a significant number of leaders express doubts over their prospects for success. Almost half do not believe that public-private partnerships will deliver value for money, while 37% say they are not confident that public-private sector partnerships will succeed in delivering their objectives.

At the same time, 44% believe that increased public-private collaboration will damage the quality of service delivery, 60% believe the trend will harm employee morale and half of respondents fear that key skills, abilities and knowledge will be lost from the public sector.

Phil Kenmore, director of public sector consulting at Hay Group, said a legacy of less successful partnerships has left public sector leaders with low expectations of working with private companies. "Public-private collaboration presents a key opportunity for the public sector to offset dwindling budgets in a climate of government spending austerity."

But although over half of respondents object to assumptions that private firms are more efficient and more effective at delivering public services, Kenmore said partnerships could drive positive results when based on mutually agreed goals and aimed at achieving desirable outcomes for both parties.

"There is as much work to do before a partnership begins as during the lifetime of the project. Public and private partners must invest time in understanding each other's cultures and behaviours from the outset, in order to develop an effective approach to managing the partnership," Kenmore said.