Almost half of public sector bodies yet to have formal collaboration programme

Almost half of public sector bodies (42%) have yet to introduce formally a collaboration programme, research by real estate adviser DTZ has revealed.

The survey of more than 100 key decision-makers also found that:

• Four in five (82%) think collaboration could deliver significant savings
• Some 85% expect to be collaborating voluntarily in the short to medium-term
• Two-thirds (65%) believe that shared asset utilization and co-location with a public sector partner is the only way that true collaboration can work
• One in four believe that local government leadership is not capable of delivering effective collaboration
• One in five senior local government officers see collaboration as a threat to their organization. Less than half (48%) are confident it is not a threat.

DTZ claimed that the failure to have a formal collaboration plan meant local government organisations were missing out on millions of pounds in potential property cost savings.

Laura Stamboulieh, Director in the Public Sector team at DTZ, said: “There is a dominant view among senior local government officers that co-location, for instance, is financially advantageous and would unlock service delivery benefits as well as improve customer service. With 71% believing that collaboration can occur without intervention from Whitehall, our study reveals a real willingness to re-examine the fundamentals of how the public sector should operate.

“However, if public sector entities do not collaborate to reduce property costs, which represent one of their most identifiable and manageable overheads, this raises serious concerns about their ability to adapt to life after the Spending Review.”

James Grierson, Head of Public Sector at DTZ, added: “The vast majority of proposed public sector collaboration initiatives focus on co-location. However, most public bodies could cut their overheads far more considerably by pooling and collectively outsourcing a wider array of functions, from payroll to facilities and estates management.”

DTZ pointed to reports from the Total Place pilot scheme in Kent that suggested £40m in revenue costs could be saved countywide by a joint re-alignment of the operational estate, rationalisation of the space occupied and associated costs.

Stamboulieh warned that the public sector needed to ensure it has the managerial expertise to implement collaborative arrangements successfully, and to address culture and attitudes among staff.