Conventional configurations align operational capacity between partners. Improving operations is a core focus of almost any public-private partnership. Operational capacity can be defined as a PPP's capability to deliver on its goals through various operational mechanisms, including financing, skills, and authorizations. Conventional configurations focus entirely on aligning capacity between public and private partners by sharing risks, resources, and decision-making. Governments can often be apprehensive about ceding this kind of management control to the private sector.
The conventional configuration requires ongoing adjustments and management of varying stakeholders to align resources and interests. It is also missing an alignment of public and private values. This type of model-one in which the partners have unaligned values-can work well for economic PPPs, since the private sector places value on profit, and economic PPPs are those that are inherently profitable.
As we will see, aligning public and private interests becomes more challenging when you remove the potential for significant financial returns. However, it's still possible using an optimal configuration.