serco internal northern ireland presented by gurbux singh & martin eves 16 october 2012
TRANSCRIPT
Serco Internal
Northern Ireland Presented by
Gurbux Singh & Martin Eves
16 October 2012
Serco Internal
Who are we? Serco is a global 100 FSTE public services company with 50 percent of business outside of the UK
We work for national and local government across public services in health, education, transport, science and defence
50 years' experience of helping our customers achieve their goals
We run:
Prisons
Railways
Electronic Monitoring
PECS
Immigration
Leisure
Defence
Health
Education
Environmental Services
BPO
Transportation
We work with Governments:
UK
European Union
US
Australia
India
Africa
Serco Internal
Serco Ireland Presence & Capabilities
Integrated Facilities Management including:
Belfast Roads Service
State Street Bank
Pfizer Ireland
Deloitte Ireland
Invest Northern Ireland
Retail
Aldi Ireland – Facilities Management Contract
Boots Retailers – Hard Services Facilities Management
Northern Ireland Civil Service – Cleaning & Catering Services
Northern Ireland Water – Water Quality Sample & Transport
Serco Internal
Welfare Services Overview
Entered in to welfare-to-work market October 2009 through FND
Introduced a new model of delivery with 100% subcontracting
Delivered 25,000 people in a year in to work
Entered Work Programme supporting 45,000 long-term unemployed individuals
Outcome based contract with approximately 40 subcontractors
We also deliver two NOMS and ESF Contracts
Serco Internal
Key Features of Serco Model Service Integrator
Prime / subcontracting
100% supply chain management
Combined strength of 100 FSTE company with expertise of local providers and key stakeholders
Build a network with a wide range of providers including – Voluntary third sector, charitable, private and public organisations
Payments by results, outcomes focused
Front loaded payment method to ensure case flow to the supply chain
Building capabilities and capacities
Open and transparent
Single case management system
Invested in an IT Solution to actively support our supply chain
Three phase delivery model
To enable change and to support our customers
Encouraging competition at local level
Serco Internal
Key Features of Serco Model
Quality Provide assurances to DWP, Risk management methodology, Quality Improvement Framework Evaluating provider processes Project management of all audits Market share shift
Compliance
Protection of the public purse Prevent and detect inaccurate performance Minimise the risk of fraud Integrity of data
Information Security Protection of DWP data Support the network with information security matters Report all breaches to DWP
Serco Internal
Welcome Direction of Travel – DEL NI
Focus on employment outcomes rather than prescribed processes
Target those most in need
Create stronger incentives for helping those participants who are further from work
Ensure that participants get the support they need
Deliver value for money for the taxpayer
Reduce prescription for providers
To build the right market for the future
Serco Internal
Shifting Dynamics of Service Procurement
Steps 2 Success is a procurement that is different to the shape of existing delivery models:
– Milestones are changing;
– Geographies are increasing;
– Diversity of service delivery will be enhanced;
– Innovation will be pivotal to success.
All of this means more pressure on working capital:
– Revenue streams are pushed to the right;
– Investment in solution and delivery methodology is required.
Serco Internal
Moving Towards Payment by Results
As services providers we face new challenges:
– Uncertainty: Payment is based on future performance; Little or no performance history; Future economic activity is unknown.
– Risks: There will be a funding gap; If we don’t perform the gap will widen; How do we know our forecasts are correct?
– Structure: Business might not be set-up for the change; Working capital (and access to it) is critical; How long since we really addressed our overhead?
Serco Internal
10
Payment From Future Milestones – Cashflow Management is Critical
CASHFLOW
0TIME
START FEE
JOB START
SUSTAINMENT
START FEE
INTERVIEWS
TRAINING
TRAVEL
OVERHEADS
MEETINGS
SUPPORT
OVERHEADS
SUPPORT
OVERHEADS
Serco Internal
11
Payment From Future Milestones
CASHFLOW
0TIME
START FEE
JOB START
SUSTAINMENT
INTERVIEWS
TRAINING
TRAVEL
OVERHEADS
MEETINGS
SUPPORT
OVERHEADS
Serco Internal
12
Addressing These Changes
Good News:
– There will be funding albeit a different nature;
– We will have time to deliver;
– Milestone recognition gives us more opportunities to achieve;
– Upfront service fee or engagement fee will help;
– Over achievement will be incremental.
But we MUST:
– Innovate our solution;
– Deliver performance;
– Look at new sources of funding.