The experience of Go-Co agreements, both in the US and the UK, has highlighted some strengths and weaknesses of implementing it as an operating model (as shown in Table 9-4).
Strengths | Weaknesses |
Allows introduction of competition and private sector shareholder pressure | Competitions are time consuming and costly |
Transfer of private sector best management practices and approaches | The relatively small scale of PBO management team makes it challenging to effect change |
Retained continuity in delivery company | Relatively little transfer of risk as difficult to enforce KPI regime if contract underperforming |
Rewards can be focused on achieving successful clearly defined objectives in terms | The basis of staff migration would need to be established and there may be difficulties incorporating staff |
Clarifies the interfaces between the delivery company and users/suppliers | Interfaces need careful review and possible reformulation |
Table 9-4: Some Strengths and Weaknesses of Go-Co agreements