There are limits to what the industry can do to contribute to this process. This is government's supply chain, and government must decide the rules and the conventions that will govern these markets: if departments and agencies engage in aggressive gaming, they should not be surprised if providers do likewise. And because of laws which preclude collaboration among firms in bidding for contracts, there are constraints on the extent to which industry can respond collectively.
Individual companies must decide for themselves, independent of their competitors, how they will respond. But there are things that can be done at an industry level which might be of benefit to individual providers.
Recommendations Structured conversations can take place amongst commercial rivals without infringing the bounds of law or propriety - using data clubs to share information about performance; engaging through anonymous and independent structures and processes, to construct a disinterested and balanced account of market conditions; developing a framework by which providers can conduct their own due diligence assessment of potential customers. This is about building a shared understanding of the market, how it works, the different ways in which companies might respond, and the likely consequences of different responses. Industry must find new ways of telling its story. Ministers and civil servants will not defend contracts that have become controversial, no matter how well they have performed in the past. Industry must develop the narratives that will assist the politicians, the public servants and the public to appreciate the contribution. In particular, there is a need to explain: the important contribution of the service sector in the national economy, and particularly the public service sector; the role that profit plays in the economy, particularly in stimulating innovation; the important functions performed by those involved in the day-to-day delivery of services; and the part that good management can play in better public services. |