With governments experiencing pressure to reduce costs, increase service delivery and ensure quality, contestability is growing in favour. While it is seen as a driver for innovation and efficiencies, there are inherent risks and barriers that need to be managed to realise these opportunities. With accountability for service delivery remaining with agencies, the way these contracts are managed and monitored is critical to sustainable delivery.

1. Contestability
" Delivering Sustainable Government Services"
© 2014 Grant Thornton Australia Ltd. All rights reserved.

2. Agenda
•
•
•
•
•
The Brief
With governments experiencing pressure to
reduce costs, increase service delivery and
ensure quality, contestability is growing in
favour.
Contestability
Challenges & Opportunities
Key Considerations
Case Study
Questions
While it is seen as a driver for innovation and
efficiencies, there are inherent risks and
barriers that need to be managed to realise
these opportunities.
With accountability for service delivery
remaining with agencies, the way these
contracts are managed and monitored is
critical to sustainable delivery.
"
© 2014 Grant Thornton Australia Ltd. All rights reserved.
Rory will discuss the changing
environment, and the impacts that might
be for businesses and clients throughout
the NSW Public Sector.
"

3. Contestability
What is it….
"Contestability is not just outsourcing it
is about the ability to act in an
organisation's and its customer's best
interests. By comparing, improving,
outsourcing, insourcing, or do nothing"
© 2014 Grant Thornton Australia Ltd. All rights reserved.

4. Contestability
What is it….
Outsourcing / Commissioning
"From the organisations perspective"
FINANCE
Quality
of
Service
Contestable
Services
"from the customers
perspective"
Value
For
Money
Encouraging
Economic
Vitality
© 2014 Grant Thornton Australia Ltd. All rights reserved.
IT
HR /
PAYROLL

5. Contestability
Factors to consider
• Who are your core customers (and potential
customers)?
• What do customers require?
• What products & services meet those
requirements?
• How can those products/services be developed
and delivered?
• What business model will do this in the most
efficient and effective way whilst maintaining
competitiveness and the ability to adapt?
© 2014 Grant Thornton Australia Ltd. All rights reserved.

6. Contestability
What's driving the change
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•
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•
•
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•
Smaller Government
Pressures to budgetary spending, eg ABF
Increasing customer expectations, eg social media
Driving better 'value for money' eg CDC
Reduce or modify services
Accessing the best talent & capabilities
Accessing new technologies eg smart apps
© 2014 Grant Thornton Australia Ltd. All rights reserved.

7. Challenges & Opportunities
Poor decision making & traditional mindsets
• Failing to understand the full implications to other
parts of the business or to partners/customers
• Poor contract frameworks that build constraints
• Believing that management responsibility is
outsourced with the service
• Management diligence in many cases has to
increase
© 2014 Grant Thornton Australia Ltd. All rights reserved.

8. Challenges & Opportunities
What's feasible
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•
•
•
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External stakeholder and environment knowledge
Internal analysis and planning
Self knowledge
Marketplace impact
Skills and capabilities
© 2014 Grant Thornton Australia Ltd. All rights reserved.

9. Key Considerations
GT's perspective
STRATEGY
Strategic
Alignment
Leadership
Involvement
Benefits
Realisation
GO TO MARKET
Tailored
Solution Design
Accurate
Data Capturing
Robust
Contract
Performance
Outcomes Management
focused on
customer
© 2014 Grant Thornton Australia Ltd. All rights reserved.
Total cost V
perceived cost
Focus on benefits
CONTINUOUS
IMPROVMENT
Relationship change
from supplier to
partner
Review, test and
re-scope
Ongoing review and
recalibration

10. Quality of data
Level of organisation
resources required
Traditional mindsets
and questions of
accountability due
to "Top Down"
approach
A phased approach
© 2014 Grant Thornton Australia Ltd. All rights reserved.

11. Rory Gregg
Partner, Health & NSW Public Sector
Rory has built a career driving transformational change and innovation and is recognised as
a leader with vision, outstanding leadership skills and enormous capacity to deliver
outcomes. Rory is committed to working across the full spectrum of public and private
enterprises to help clients think differently about change and build high performing
organisations.
Spanning the health, insurance, banking and finance and transport sectors, his strong
leadership and strategic judgement have helped business leaders improve the way they do
business, extract greater value from existing budgets and resources, and overcome
productivity challenges.
Core expertise
•
strategic planning
•
transformational change
•
workforce productivity and utilisation
•
performance improvement
•
organisational redesign and high performance cultures
•
developing and implementing board level strategy
•
change management
•
complex stakeholder engagement
© 2014 Grant Thornton Australia Ltd. All rights reserved.
Contact details
T +61 2 8297 2531
M +61 2 8297 2400
E rory.gregg@au.gt.com

12. About Grant Thornton
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© 2014 Grant Thornton Australia Ltd. All rights reserved.
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(2012 USD)
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countries
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people nationally