A recent report commissioned by Civica from the Chartered Institute of Public Finance and Accountancy (CIPFA) has found that while the commercialisation of their services is expected to play an important part in their future business strategies, only four per cent of public-sector CEOs and CFOs said that they had significant commercial experience.
The report also found that positive progress is being held back by a lack of understanding of what the market needs (36 per cent), concerns about the risks involved (56 per cent) and a restrictive culture in the public sector (40 per cent).
Of the organisations surveyed for the report, 65 per cent planned to implement larger, more radical projects to generate greater income streams, and 35 per cent were looking for smaller, less risky projects to do so.
CIPFA and Civica’s ‘The Commercial Imperative’ report explores the role of commercialisation as a way for housing providers and local authorities to close the funding gap and become more self-sufficient, and provides guidance on how to find the right path to achieve a sustainable commercial model.
Rob Whiteman, chief executive, CIPFA, said, “Commercialisation will be one of the most important priorities for local authorities and housing providers over the next decade. If they haven’t already done so, CFOs should start thinking about short, medium and long-term strategies for generating their own income. Reappraising their appetite for risk is vital to making these endeavours successful.”