Public and private sector partnerships have the potential to deliver some truly innovative services to citizens and discover solutions to some of society’s most complex problems. Though the differences between the sectors are often highlighted, they remain well placed to support one another in effective public service delivery.

Public bodies occupy a unique status, operating at arm’s-length from government with their own governance, culture and accountability structures. Following on from previous Chairs’ Challenge discussions on partnership with the third and not-for profit sectors, this session explored how public chairs can work effectively in collaboration with the private sector to deliver on their core purpose.

PCF members discussed the role that public chairs can play in taking a more strategic approach to partnerships, influencing public sector attitudes to risk, and inspiring public body employees to think and operate more like a small and medium enterprise (SME) would.   

With thanks to our panel:

• Kate Ellis, Chair, Oil and Pipelines Agency
• Jane Hanson CBE, Chair, Reclaim Fund Ltd
• Mark McAllister, Chair, Office for Nuclear Regulation (Host)

Taking a strategic approach to partnership

Perspectives on the differences between public versus private are perhaps too well entrenched. Stereotypes shadow both sectors: private companies often presumed to be driven exclusively by profits, the public sector characterised by a motivation solely to do good for society and low risk appetite.  

PCF chairs were encouraged to take a strategic approach to public and private partnerships, mindful of the drivers of each and ambition for long-term outcomes.

Successful partnership will play to the strengths of each sector. For example, delegates discussed taking advantage of the private sector’s ability to run more long-term and speculative trials and invest in cutting-edge technology.

Influencing public sector attitudes to risk

The public and private sector have different accountability mechanisms, impacting their approach to risk. Public bodies, as the custodians of tax-payer money, are often thought to adopt a more risk-averse approach, balancing multiple considerations of risk such as finance, reputation and politics.

PCF members were encouraged to engage with their sponsoring departments in conversations around adopting a risk-based approach to partnership and service delivery. For example, highlighting the efficiency savings which could be achieved by transforming the approach to public sector auditing.

Increased movement of talent between public and private organisations was also considered important to promoting greater empathy and understanding between the sectors, strengthening the public sector’s appetite for risk.

Thinking like an SME

According to the National Audit Office, public bodies employ over 300,000 staff, across nearly 300 organisations. Though their structures vary considerably, many are small to medium sized organisations, which enable them to operate efficiently with a keen focus on service delivery.

PCF chairs discussed the benefits of public bodies operating more as SMEs and considered it their role to inspire their employees to start thinking and acting as such.

Taking advantage of their ability to act with greater agility and freedom than civil service departments, public bodies are well placed to derive maximum public and private sector partnerships for the benefit of UK public.