Mutuality In Public Services

1
Mutuality In Public Services

• Peter Hunt
• 8th March 2008

2
This Presentation

• Public service reform agenda
• Why ownership matters
• Mutuality
• How mutuality affects an organisation
• The opportunity for network rail

3
Service Reform - The Objectives

• High quality services
• Demonstrably well-run
• Value for money services
• Deliver accountability for taxpayers money
• Engage with real citizens

4
Organisational Form

• This part of the discussion can be a real
  turn-off because many find it boring and
  technical
• But the type of organisation is crucial
• Ownership matters
• Independence must be real
• Accountability must be effective

5
Third Sector
6
Third Sector Mutuals

• Corporately robust
• Businesslike, scalable
• Balanced stakeholder representation
• Ownership embedded in the community
• Democratic structures based on rights
• E.g.
• NHS Foundation Trusts, football supporter trusts,
  child care co-operatives, GP out of hours
  mutuals, local government leisure service mutuals

7
What Is A Mutual?

• Community purpose corporation
• Ownership
• Vested in its members
• Democracy
• One member one vote
• Governance
• Stakeholder representation

8
The Origins of Mutual Structures

• Been around for nearly 200 years
• Origins in Victorian self help movements
• Robust corporate structures
• Worldwide phenomenon

9
The Mutual Sector Today

• Building societies
• Cooperatives
• Friendly societies
• Mutual insurers
• Partnerships
• New mutuals

10
New Mutuals

• Local government services
• Child care mutuals
• Football supporter trusts
• GP out of hours mutuals
• NHS Foundation Trusts
• Co-operative trust schools

11
Spectrum of UK Mutuality
12
NHS Foundation TrustsBoard and Governors Role
Management
Overview
13
Relative Roles

• Trust Board
• Corporate role
• fiduciary duties
• liable for all decisions
• reporting to Monitor etc
• non-execs oversee execs
• Management
• managing the business
• staff matters
• devising service plans
• Ensuring clinical governance

• Governors
• Statutory role
• major new service developments, the annual report
  and accounts
• appointing non-execs
• Supporting role
• attend meetings of the Governors
• representing their local communities
• advise and influence the Trust
• membership development
• listen to ideas and opinions from members of the
  public and staff

14
Accountability In Action
Each Appoints the Next
Each Answers to the Previous
15
A New Purpose

• This is all about a fundamental change of
  culture services no longer facing towards
  Government, or shareholders, but instead towards
  the users and other stakeholders

16
Does it work?

• It can - if a proper strategy exists under which
• A new culture of public accountability is adopted
• The Boards Executives believe and follow it
• The staff and stakeholders are part of it
• The punters see that it is worth it
• But it is not an automatic by-product from
  constitutional change

17
Democracy

• Many forms of Government have been tried, and
  will be tried in this world of sin and woe. No
  one pretends that democracy is perfect or
  all-wise.
• Indeed, it has been said that democracy is the
  worst form of government except all those other
  forms that have been tried from time to time.
• Sir Winston Churchill November 11, 1947

18
Lessons to consider

• Democracy is a tool in the box
• It may not alone deliver representativeness,
  but its the best we have
• We need to work at making it so, and it is a
  permanent task in any membership organisation
• Public accountability requires rights and
  responsibilities to be shared
• Network Rail goes only so far in this
• Constitutional Review required

19
New Network Rail?
Management
Overview