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Local Government Commercialisation: Generating Income To Support More Effective
Public Services
Developing an effective Income Generation Strategy
6th March 2019
Danny MatherHead of Corporate Finance
WBC Profile
• 205k population
• High economic growth
• 2019/20 Budget: £132.9m
• Low funding base
• £1.3bn Capital Programme
WBC – Major Commercial Schemes
• LAMS
• Redwood Bank
• Loans to HAs
• Green Energy
• Housing Company
• Property
• Social Impact Investing
Strategy Drivers
• Austerity
• Budget Cuts
• Demand
• Legal Freedoms
• Markets are broken
• Economic Factors
Why develop a Commercial Strategy?
• Provides for managed transformation
• Allows organisations to pursue efficiencies
• Eradicate any systemic waste
• Managing the demands and expectations of citizens
• Being innovative and creative with opportunities
• Raising income to offset budget reductions where possible
• Shifting mind-sets
Steps to Establishing a Commercial Strategy
Define Engagement
Legal / Procurement /
Finance
Risk Culture
Opportunities
Flexibility
Governance
Objectives / Outcomes
What good looks like…
• Background & purpose• Strategic Aims & Objectives• Commercial Vision• Prudence• Performance Measures• Governance• Risk Management• Investment in culture Change
Link to Other Strategies
Link to Other Strategies
• MTFP• Corporate Plan• Capital Strategy• Treasury Strategy• Property Investment Strategy• Green Energy Strategy• Local Plan• Local Strategies
Simplicity
DO NOT OVER STRATEGISE
Resource the Outcome not the Strategy
Success Factors
• Project Management / Tailored Approached• Solution Focused Teams• Resources• Using the right consultants• Stakeholder Engagement• Networking• Be ready to say NO / STOP• Effective DD• Governance• Skills Development / Culture
Governance
• Cornerstone of success• Strong Business Cases• Wednesbury Principle• Get it right from the start• Ongoing Governance• Out with the Old & In with the new• Tackle difficult issues• Ask auditor for advice• Code Compliant
Due Diligence
• Most important aspect / often ignored• Proactive Risk Management• 3 simple questions
Will we make a returnWhy will we make a returnHow do I avoid loss
• Any niggling doubts – Walk away• Review• Not Rocket Science
Developing Skills & Resources
Developing Skills & Resources
• Baseline Review• Solution Focused Staff• Invest in Training• Consultancy• Business Partnering• Resilience / Difficult• Succession Planning• Systems• Recruit from the Private Sector?????• Networking
Embedding the Strategy
• Investing Resources to support the Strategy• Investment in Change Management, developing
employee capabilities, communications, aligning performance management processes, adapting governance mechanisms will be required to create a more entreprenurial culture
• Resilient• Make it real• Review
