In 2000 the London Borough of Tower Hamlets recognised that voluntary and community organisations (VCOs) play an important role in delivering mainstream services. VCOs have a long history of engaging with local people and communities in ways others cannot. This recognition was also driven by emerging government policy and initiatives such as the Treasury’s ‘Cross Cutting Review’, and the Home Office’s ‘Think smart…think voluntary sector!’

Another factor was the delivery of the local strategic partnership (LSP) sustainable community strategy (SCS). Tower Hamlets receives Neighbourhood Renewal Funding (NRF). This means the LSP has challenging targets to meet and it is critical that all partners are fully engaged to ensure delivery.

The borough also has a complex community structure. The third sector in Tower Hamlets provides an important platform for the borough’s capacity to deliver those targets.

In Tower Hamlets the third sector has become deeply embedded in community development and delivery. There is no need to justify its participation. This means the borough’s approach to formalising partnership working in mainstream services is quite ordinary. It means that, in effect, we can just get on with the job.

The council first formalised its VCO commissioning strategy in 2002. It then reviewed it in 2004-05, working with the IDeA to get an external perspective. VCOs were also consulted as part of the review process. The current version is both comprehensive and extensive. It strives to facilitate third sector engagement wherever valid and practicable.

Tower Hamlets’ ‘Third sector commissioning code of practice’ states that the sector has equal status as a service delivery player. Services are commissioned on the basis of need, effectiveness and fit-for-purpose. It’s not a question of getting services on the cheap.

In this spirit, the code of practice states that commissioning is:
“The process of assessing needs, allocating resources, defining priorities and choices, determining how they are best delivered, overseeing implementation and delivery, evaluating impact and learning from the process.”

In other words, nothing special.

In terms of how it wishes to relate to the third sector the council states a strong preference for partnering.

“This involves the council and the third sector working together in an open, mutually respectful and honest manner to reach agreement on the delivery of services. This method of commissioning is meant to ensure that both the council and the provider have joint ownership of the services delivered to the users, mutual respect for each other and contracts that are driven by the performance of both parties.”

The council also states that “the third sector should not be excluded from consideration in the delivery of [any]…services where appropriate”.

Engaging the third sector in a ‘grown-up’ relationship such as this gives it the opportunity to maximise its aspirations. One consequence of this approach has been a commitment by VCOs to develop their own capacity. They have underpinned this by developing a locally initiated Kitemark. This helps to recognise their status in council-wide governance and management.

It is still early days, but there is evidence of greater capacity and potential for delivery in the borough through VCOs. For example, the council awarded a leisure services contract to the third sector in 2004-05. This was beyond what most thought the third sector could deliver. Its typical field of delivery is widely assumed to be people-to-people, care-focused services. In addition, the third sector is often awarded smaller scale, less capital intense projects. Awarding this leisure services contract has led to greater open-mindedness about what is possible.

But there is still much to achieve. It is necessary to embed a culture of joint working between the council and the third sector. This requires a significant capacity development on both sides to increase understanding and build genuine partnership.

It may take time to accept local VCOs as deliverers of services on an equal footing with other providers. This is especially true when the service in question is outside what many consider their ‘traditional areas’. It may be necessary to reassure some local authority commissioning officers.

It is necessary to focus on what VCOs can deliver – to the same standards and value for money criteria as other providers. VCOs should not seek ‘special case’ status. They must compete equally with other providers from the public or private sectors. Then they can genuinely be considered for any appropriate contract.

It is essential to recognise the opportunities that government policy present for third sector engagement. Not engaging with the VCOs could ultimately threaten services. Tower Hamlets councillors recognised this and that was critical to progress made.

Buy-in from senior management is also essential to making it work.
It is necessary to focus on ensuring delivery of services that are high quality, broad in scope and fit-for purpose.

A robust strategy for engagement must underpin the whole approach. All who wish to engage must take a professional approach. This strategy should emphasise participation, opportunity, capacity, quality standards, proportionality and above all, benefits to people and communities. This will keep those involved focused on the right conditions for success.

The main priority for Tower Hamlets is to continue to include the third sector as a fully equal partner in commissioning services across the board. Implementing the code of practice throughout the borough's directorates will bring about real engagement and increase confidence in the third sector as a quality service provider.

In formal terms the borough will be seeking early cabinet ratification of the latest version of the procurement code of practice and the third sector strategy.

Contacts

Sharon McGilcrist, third sector manager
telephone: 020 7364 3080
email: Sharon.McGilchrist@towerhamlets.gov.uk
Tracey Chadwick, third sector project officer
email: Tracey.Chadwick@towerhamlets.gov.uk
telephone: 020 7364 4805

Case study provided by IDeA