The role of mutuals in public service innovation

The agenda to increase the involvement of mutual organisations and employee ownership in public service delivery has been of growing policy importance over the past five years but increasingly so for the current Coalition Government, which has raised expectations of the potential of mutuals as organisational vehicles for innovation and improved productivity.

This study aims to provide a rigorous evidence base concerning the role of spin-out mutual (i.e. employee owned) organisational forms in promoting innovation in public services in the UK. It does this by examining the types of innovations involved and their effectiveness as perceived by users and other stakeholders. The study will answer a key question regarding innovation in public sector delivery, focusing on efforts to further develop this agenda by the current Coalition Government.

There is a need for closer examination of the extent to which spin out mutuals are able to unleash entrepreneurialism, creativity and innovation in public service delivery, and to identify what are the crucial facilitating factors and barriers to innovations. There is also a need to assess the perceived impact of initiatives on different stakeholders, recognising that innovation involves risk and may involve unintended negative impacts, as well as gains

This study is therefore aimed at providing a high quality evidence base for policy makers and others. The research will focus on mutual organisational forms in health and social care, comparing recent experience with those of longer established mutuals in leisure services. The findings will contribute new knowledge on the role of employee and user involvement in introducing innovative approaches to meeting service needs and the role of local contexts and external support providers.

The methods will involve:
1. A systematic review of the literature: to build on interdisciplinary understanding and insights from relevant literatures on the public sector, mutualisation and employee-owned organisational forms, and service/social innovation.

2. Mapping of the employee owned-enterprise sector: a systematic analysis of existing data sets on mutuals, co-operatives and other third sector organisations involved in public service delivery. A new data set will be generated from existing databases which will serve to identify the key sectors and sample of organisations for the field research.

3. Interviews with key stakeholders: at national level, including key policy actors, commissioners, trade unions etc in different regions and sectors.

4. Surveys with mutual organisations: 30 mutuals in health and social care and in leisure services will be selected to represent a range of organisational types and activities. For each organisation, interviews will be conducted with senior and other staff members, support providers, users/beneficiaries, commissioners, unions and other key stakeholders.

Knowledge exchange has been embedded in the design of the project through consultation with all stakeholders during its preparation, and the assembly of a research team that combines experienced researchers, policy thinkers and support providers. The research is designed to have a direct impact on practice and policy as well as academic understanding of the processes of innovation public service delivery.

This proposal has been developed in collaboration with the range of potential users of the findings and originates in their demand for evidence on innovative delivery of public services combined with the identification of gaps in the academic literature.

Who will benefit?
- Service providers: these include existing mutuals, those thinking of becoming mutuals
- Service users: these may be bodies representing patients and others users
- Support providers: advisors, professional firms and unions
- Policy makers: national and local level as well as commissioners, advisors , lobby groups and think tanks


How will they benefit?

The research will provide new insights into the types of innovations, the approaches to innovation, challenges, barriers and how these can be overcome. With this information policies can be developed that are based on a rigorous evidence base, with appropriate support provided, an enabling environment created and commissioning that is more responsive. Those providing services will gain better understanding and guidance on how to become more innovative, how to manage innovation and how to manage the risks of innovation. Support providers will be able to develop their products and services to provide more appropriate assistance. The main objective is to encourage those types of innovation that are likely to lead to positive social impacts for users of services.


What will be done to ensure they benefit?

A Knowledge Exchange Strategy will be developed in partnership with the Knowledge Exchange Hub, ensuring that all users of the research can have an input throughout the research allowing both ideas to be fed into the research design and results to be disseminated. The partnership with the Transition Institute will allow for close working relationships with key stakeholders in the public services innovation field including NESTA, Social Enterprise London, Innovation Unit, OPM, Young Foundation, Local Partnerships as well as other support organisations and professional firms.

An Advisory Group will be established which will shape the research and been a route for sharing the learning. Key stakeholders from different government departments and support organisations have offered to participate already. it would also include academics Professor Pete Alcock Director of TSRC and Professor Stephen Osbourne as well as a representative of IRC.

Policy briefing papers will also be prepared on a number of topics, drawing out key findings and recommendations. These results will be presented at local and national events to maximise impact. The results will also be prepared in accessible ways for different forms of media, online and the press.

Engagement with policy makers will be through small policy circles and working with policy teams such as Mutuals Task Force in the Cabinet Office and those working on Right to Provide in the Department of Health. Policy makers in these departments have already expressed their desire to work with this project and letters of support are included.

Events for linking users with the research findings will be set up at two points in the project, and the project team will participate in other events arranged by other bodies. In particular we will work closely with membership groups such as Employee Ownership Association and Cooperatives UK, both of which are supporting this application (see letters of support).

We will monitor the impact of the work throughout the project to identify how users of the research are accessing knowledge generated. This will also be of use in demonstrating the impact of this research.