Memorandum from ACEVO
ABOUT ACEVO
1. ACEVO is the professional body for the
third sector's chief executives, with over 2000 members. Our mission
is to connect, develop and represent the sector's leaders. The
UK's broad not-for-profit sector now employs the full-time equivalent
of 1.5 million staff, with a collective annual turnover of £46
billion.
2. We promote a modern, enterprising third sector,
and call on third sector organisations to be:
— professional and passionate in achieving
change and delivering results,
— well-led, with a commitment to professional
development, training and diversity,
— well-governed and accountable, with
robust and fit-for purpose systems to protect independence and
enable effective decision-making,
— enterprising and innovative, taking
a businesslike approach to funding issues and striving for continuous
improvement and sustainable development.
3. ACEVO has undertaken extensive research,
consultation and advocacy in recent years to help third sector
leaders in fulfilling the sector's potential as a provider of
public services. We have consistently argued that third sector
organisations should be encouraged and supported in developing
this role.
4. We have also drawn attention to the shortcomings
in commissioning and funding arrangements, which are currently
restricting the sector's ability to realize its potential. We
have worked to ensure that public authorities conform to the principles
of good practice in commissioning services from the sector, and
that third sector leaders have the knowledge, skills, and confidence
to negotiate effectively for such arrangements.
5. Our key publications on the subject of
charities and public service delivery include:
— Choice and Voice: the unique role
of the third sector (2006)
— Communities in Control: the new third
sector agenda for public service reform (2005)
— Surer Funding: improving third sector
public service delivery (2004)
We would be happy to supply you with copies
of any of these publications on request.
ISSUES AND
QUESTIONS PAPER:
ACEVO SUBMISSION
Third sector experience
— We believe that there is much that
public services can learn from both the experience of third sector
organisations.
— Much has been written about the "added
value" of the services provided directly by third sector
organisations. The most compelling advantages of these are:
— Joining up. Services provided
by third sector organisations are often focussed on individuals
and their needs, and operate across a widespread range of institutional
state barriers.
— Hardest to help. Many third
sector organisations work with the hardest to help (and reach)
sections of the community who may have previously found themselves
isolated, and have found difficulties in coping with state intervention.
The work of sector organisations in tackling homelessness and
championing asylum seekers or drug addicts are prime examples.
Some citizens do not look to "the state" as a source
of help or support, rather as an alien force seeking to control.
— Entrepreneurship and innovation.
Many of the advances in childcare, mental health and disability
services have been developed in sector organisations. The RNID,
for example, pioneered the new digital hearing aids
— Flexibility and Autonomy.
A range of health charities have evolved through rejection of
an overly professionally controlled service. Over regulation has
stifled creativity and innovation.
— Commitment. The real, though
intangible, extra value that is achieved through the motivation
and commitment of staff and volunteers, who may join because of
their particular attachment to a particular cause.
— If we are to see a transformation
in public services, then progress need to be made towards creating
what Sir Gus O'Donnell has termed an "enabling state"
(Guardian Public Services Summit, Sopwell House, January 2007).
The state will continue to commission services, but may not necessarily
be the best provider. Or in the words of the Prime Minister:
— "The truth of the matter is
that whether it is central government or local government, government
as a whole is necessary in terms of funding, it is necessary in
terms of setting clear objectives. It is not always necessary
in terms of delivering the actual service."
(Tony Blair, Future Services Network,
June 2006).
USER EXPERIENCE
IN SERVICE
DELIVERY AND
DESIGN
— Third sector experience shows that
where users are involved in the design of services, the service
is more successful.
— Admittedly user involvement is not
always feasible or desirable—top-level, strategic decisions
need to be made by professionals, often to tight timescales and
budgets—but where appropriate, there are clear benefits.
— The announcement in June 2006 that
the new Community Equipment Service was to be delivered by three
leading third sector organisations—the British Red Cross,
RNID, RNIB - recognises their ability to deliver a rapid and effective
roll out of vital equipment for individuals with disabilities.
Many of the volunteers for these charities are also service users.
— Several charities—particularly
those working to serve individuals with disabilities—involve
users as trustees. Such involvement ensures that the user voice
is heard at board level and influences strategic decisions. Two
prominent third sector organisations—MIND and the RNID—have
users as chairs.
— If users cannot be involved directly
in the delivery of services, then relevant experience should help
shape the design and roll-out of services.
— Many charities- particularly in the
field of mental health work- have been set up as a consequence
of demands for a need or service that is user-focused and empowering.
Case Study: United response
United Response is a national organisation supporting
people with learning disabilities or mental health needs to have
the things they want in their lives.
United Response provides a range of mental health
services, working in partnership with primary care trusts and
social services. The organisation is committed to early intervention
to help more serious problems from occurring and to providing
whatever it is a client needs to try and get better. United Response
(UR) was co-founded in 1973 by Su Sayer OBE, the current Chief
Executive.
Service user involvement is increasingly a part
of United Response's activities. For example, people United Response
support often take part in Senior Managers' Meetings and most
recently helped with the rewriting of job roles for staff. Over
50% of United Response staff was recruited with the involvement
of service users.
United Response looks at various ways of involving
users, some in ad hoc work and some in ways in that are central
to the way the organisation operates. Some of the people United
Response support reported directly to the board of trustees last
September on the outcomes of a workshop that was held recently
in the South Eastern Division.
CONSULTATION
— Users should be consulted about crucial
decisions affecting service provision. For example, large scale
transfer, revision or reform of services should be approved by
the user group before commencing.
— Official consultations often- but
not always- involve the right groups, namely umbrella and representative
groups in the third sector and those organisations delivering
services on a large scale.
— The most effective consultations
ask the right questions of the key groups with the relevant expertise,
allow a sufficient timescale for a detailed response, and are
clear about how consultation responses will be used to shape policy.
The Compact for the Voluntary Sector suggest allowing a minimum
of 10 weeks for consultations with sector groups.
USER INFLUENCE
AND DEMOCRATIC
ACCOUNTABILITY
— The ultimate responsibility for strategic
decisions on service provision lies with the CEO and board of
an organisation. Several boards are democratically chosen by users,
but not all. The AGMs (annual general meetings) of organisations
should provide an opportunity for users to air their opinions
and any grievances they have about they way in which a service
is being run.
OVERSEAS EXAMPLES
OF PUBLIC
SERVICE REFORM
The UK is not alone in facing considerable challenges
in the delivery of public services:
— Sweden has introduced far-reaching
reforms in both the health care and education to make services
more flexible and user responsive;
— The Netherlands has introduced a
comprehensive package of health reforms to improve services and
contain costs. This involves free choice of health insurer and
a major extension of competition between hospital and other providers;
— Australia has outsourced numerous
key services, including its employment services. A radical programme
of reform was implemented. Services improved and costs were reduced:
— 690,000 job seekers were placed in
2004/2005, up 70% on the 405,000 placed in 1999-2000;
— Total costs fell from A$3.2 billion
to A$1.9 billion over the same period.
The market for providers is now split 50/50
between the voluntary and private sector. Two of the leading providers,
Mission Australia and the Salvation Army, are from the third sector.
February 2007
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