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In defence of commercialisation
Public service values are not incompatible with favourable elements of the commercial world, writes Robin Staines
This piece is a response to Mike Owen’s article ‘Do we really need to be commercial?’ published last Wednesday
Walking through Birmingham City centre recently and witnessing the dormant Carillion sites the day after their balloon went up suggested to me that there is little to dispute in a recent article by Mike Owen on the perils of commercialisation.
It is difficult on either a moral or ethical perspective to defend the excesses and selfishness of rampant global capitalism.
Fat cat salaries, tax and workers’ rights avoidance, Ponzi-like business models based on cashflow, enforced supplier discounting and suicide tendering practices.
However, in my mind, commercialisation is something altogether different and in the current political and economic climate, a necessity.
Assuming a general definition of commerce is to trade goods and services, I suggest that is something pretty much the whole housing community is involved in.
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The early Rochdale co-operators were very commercially aware and adopted commercial practices for public good. The difference being the social value they created through their trading and shared through their value base and beliefs.
Some of this is now enshrined in statue, such as the recent Social Services and Well-being Act in Wales, which demands that commissioners look towards incubating social enterprise as part of formal care provision.
“‘Private bad, public good’ can appear rather too binary in a time when needs must.”
While the ‘private bad, public good’ is a long-established narrative, it can appear rather too binary in a time when needs must.
Public and third sector organisations have not only adopted commercial activities since their inception, but rely on them.
It is by no means a new concept that housing organisations cross-subsidise commercially focused multi-tenure developments with an aim to subsidise affordable housing. Given the housing crisis that some face, it is not surprising that it is likely that more than half the local authorities in the UK will have some form of local housing company by 2020.
Not only will these companies deliver much-needed homes (across all tenures to meet needs and aspirations), their surpluses can be utilised by their shareholders for public good. This could include additional supply or repatriated to council services which have, in England, had to face a £15.7bn cut by 2020.
This is during a time of well-rehearsed increasing need, demand and expectation. These pressures on councils are unlikely to subside, especially with the concept of future self-financing.
Trading and housing companies are a necessity for some to ensure services for the most vulnerable are maintained and positive interventions in local housing markets are targeted.
“Local housing companies adopt the best of commercial acumen with public service-orientated values.”
These companies (usually) remain under the ownership of the sole shareholder – the council – which holds these in trust for their community under public stewardship.
By necessity they adopt the best of commercial acumen with public service-orientated values.
Which brings me to governance.
Commercial skills, therefore, are an important element in governance but are not the only asset that governance structures need to function effectively.
Like any team, diversity is important. Not only in its physical make-up but also in the skills of the members.
A good understanding of the broad range of skills needed to get the business done is critical. If this can come from existing service users and the workforce, even better.
This is built on the premise that user experience is vital for good service commissioning and design, and those closest to the job often know how best to do it. However if the broad range of commercial skills are not embedded, it can (and should) be addressed through sensitive recruitment and developing the skills set of existing governors.
“The issue is the targeting of profits and surpluses and where they are employed for maximum social impact.”
Public service values are not incompatible with favourable elements of the commercial world. The issue is the targeting of profits and surpluses and where they are employed for maximum social impact.
So like it or not, the current practical realities of public service means necessity drives.
While this is unlikely to change in the current climate of uncertainty, the public or private debate takes a back seat to the realism of what work works and doing whatever it takes – however unpalatable to some.
As John Lennon aptly put it, life is what happens when you are busy making plans.
Robin Staines, head of homes and safer communities, Carmarthenshire County Council
