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.
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.