Australia

Public service reform: applying contestability frameworks 

Changing demographics, future low economic growth and fiscal constraints may be tomorrow's challenges but governments around the globe are looking at addressing them today.
Public service reform: applying contestability frameworks

Michael Hiller

Michael Hiller

National Leader, Infrastructure, Government & Healthcare

+61 7 3233 3299

Contestability: Rethinking public service delivery

This factsheet provides an overview of the concept of contestability and how governments are using it to 'shake-up' public service delivery.

Around the globe, governments are using contestability frameworks to reshape public service delivery as they seek to prepare for the anticipated challenges presented by changing demographics, future low economic growth and fiscal constraints.

 

There are major changes being made to traditional public service delivery as governments rethink what they need to provide and how to meet growing demands for better, more personalised services with shrinking funds.

 

Many governments see that simply continuing to provide services in the same way will not achieve the step change required to protect public service provision into the future. A very different approach from government is required to develop a sustainable contestable market with a variety of delivery models and providers.

 

Improving productivity requires altering government buying arrangements to build a public sector economy that makes a difference to service outcomes, creates market behaviours that result in increased competition, and price and productivity that will flex to align with demand.

 

The most successful models are not just driving down cost but are connected to thorough policy processes that re-imagine the service outcome.

 

How we can help
KPMG is experienced in supporting clients undertaking contestability reviews. The approach will flex depending on the services being considered, the evaluation criteria and strategic intent of the organisation and options being taken forward for consideration.

 

These key activities of Strategic Assessment, Options Analysis, Solution Design and Implementation are typically supported by a robust project management, stakeholder engagement and governance framework.

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Contestability frameworks: An approach for governments

Globally, governments are using contestability frameworks to reshape public service delivery as they seek to prepare for the challenges of the future.

Government

The pressure on government is intensifying, driven by global markets forces and the challenge of meeting growing demands for better, more personalised services with shrinking funds.