andy mudd head of apse solutions
TRANSCRIPT
Preparing for Commercialisation
Andy MuddHead of APSE Solutions
The objective
• Charging? Trading?• Commercialisation• Culture?• Marginal revenue or• Major business initiative• Being more like the private sector??
Drivers of commercialisation
• Better services?– Maybe
• Expansion of services?– Maybe
• Financial necessity– Definitely
Commercialisation Strategy
Income Generation
Growing Council Tax
Base
Asset Investment
Trading and
Charging
Growing Business
Rates Base
Commercialisation Strategic Planning Model
Deciding to act•What are we trying to do?
•Why are we trying to do it?
Resourcing action•What corporate resources will be needed?
Situation analysis•Readiness to Act
•Corporate PESTLE/SWOT
Objective setting•High level objectives
Developing the strategy•Business case development framework
Implementing strategy•Programme for work on trading ideas by department
Measuring the results•Key performance indicators
Short term feedback loop
Long term feedback loop
So what is a business case?
• An argument or justification – why rather than how• To convince investors • Three stages
– Strategising– Producing an outline case– Producing a final case
A business case driven approach
www.apse.org.uk
Strategic Business Plan
Elected members
Business process analysis
Economy of scale/flow
End user perception and satisfaction
Governmental drivers
Operational business plan
Operational business plan
Operational business plan
Business case
Business case
Business case
Process
Driver
Business case
A five case model
• Treasury guidance• A balanced approach• Likely cases but could be different
– Strategic– Legal– Financial– Commercial– Technical or operational
Risk issues
• The link between risk and entrepreneurialism• Why assess risk• How to identify risks• How to assess evaluate risk• What to do with the risk assessment
Growing the business
• Understanding markets• Hearing the voice of the customer
Understanding an industry
Growing the business – a commercial approach
More risk
Less riskAnsoff’s Matrix
McKinsey Growth Pyramid
www.apse.org.uk
In a public sector trading environment
Trading with
private sector
Direct to public
Other public sector
Internal Provision Existing product/Existing Customer
Existing product/New Customer
New product/Existing Customer
New product/New Customer
Bu
si
ne
ss
Gr
ow
th R
isk
How do we know what will appeal to customers?“Caring deeply about what customers want is much different from continually asking them what they want; it requires intuition and instinct about desires that have not yet formed. “Our task is to read things that are not yet on the page,” Jobs explained. Instead of relying on market research, he honed his version of empathy—an intimate intuition about the desires of his customers.” Walter Isaacson quoting Steve Jobs in the Real Leadership Lessons of Steve Jobs
Neutral
Blue Ocean Strategy: Demand Innovation
Key principles: W Chan Kim and Renee MauborgneBlue Ocean Strategy Unit: INSEAD
• Value innovation• Thinking beyond competition strategy• Creating new demand• Finding uncontested market space• Avoiding commoditisation of product
4 Action Framework
New Value Curve
Reduce well below industry standard
Create
Raise well above
industry standard
Eliminate taken for granted factors
Strategy canvas: McDonalds
6 Path FrameworkHead to head competition Blue Ocean Creation
Industry Focus on industry rivals Looks across industry boundaries
Strategic group Focus on competitive position within strategic group
Looks across strategicgroups within industry
Buyer group Focusses on better serving the buyer group
Redefines the industry buyer group
Scope of product or service offer
Focusses on maximising the value of product within the bounds of its industry
Looks across to complimentary products and service offerings
Functional –emotional orientation
Focusses on improving price performance within existing orientation
Rethinks the functional –emotional orientation of its industry
Time Focusses on adapting to external trends as they occur
Participates in shaping external trends over time
www.apse.org.uk
ConsultancyAndy Mudd, Head of Solutions, APSE
Email: [email protected]
Interim management requirementsRoads & Highways, Building Maintenance, Bereavement
Services, Environmental, Parks & Open Spaces, Waste, Facilities & Leisure etc.
Emma Taylor, Client Coordination Officer, APSE
Email: [email protected]
Association for Public Service Excellence2nd floor Washbrook House, Lancastrian Office
Centre, Talbot Road, Old Trafford, Manchester M32 0FP.
telephone: 0161 772 1810fax: 0161 772 1811
web:www apse org uk