Strategic partnerships could leave local authorities at risk

23 June 2003.

The increasing reliance of local authorities on a plethora of strategic partnerships to deliver a wide range of public services could leave them high and dry if those partnerships fail.  This is one risk associated with partnerships that Zurich Municipal Management Services will be warning local authorities of in a workshop at the Association of Local Authority Risk Managers (ALARM) conference (23-25 June 2003).

Risks involved in partnership arrangements include:

• Increasing reliance on strategic partnerships means the failure of an external partner may leave the authority under served with the skills and experience to resume provision of the service.
  
• Gradual development of partnership arrangements may mean that what has become a major strategic partnership could have developed without clear legal frameworks or governance arrangements.
  
• Reliance on grant funding for which the council is the ‘accountable body’ leaves the council in financial difficulties when the partnership breaches grant conditions.
  
• The council is perceived as solely responsible for a service that is now largely provided by other partners, and suffers damage to its own reputation when the partnership doesn’t meet public expectations.

Pam Duke, Principal Consultant, Zurich Municipal Management Services, said; "Plotted over time, all partnerships are characterised by a falling ability of the local authority to influence as the partnership takes on a life of its own, and an increasing potential impact if a risk does emerge.  The key to success is careful planning at the earliest stages.  Risks are easier to manage and mitigate when considered at the early stages of a partnership, rather than later in a partnership’s life, when addressing fundamental risks can be like trying to turn round a super tanker."

Other factors that are key to successful strategic partnerships, according to ZMMS, are:

• A shared vision for the partnership.
  
• A commitment to mutual goals.
  
• A good relationship, built on trust.
  
• Clear processes for the development and operation of the partnership.
  
• Clarity over ownership, responsibility, liability and governance arrangements.
  
• Individuals and cultures working together for collective benefit.

-Ends-

Notes to Editors:

• The ALARM conference is taking place at the University of Manchester Institute of Technology (UMIST) from 23 to 25 June 2003.

• Zurich Municipal Management Services is the strategic management consultancy arm of Zurich Municipal and Zurich Financial Services Group.  It provides specific management solutions for those leading the public services, based on practical experience.  Zurich Municipal Management Services’ solutions cover corporate governance arrangements, strategic planning, business risk management, service delivery, strategic partnerships, e-government and self-assessment.

• Zurich Municipal is the leading provider of risk management and insurance solutions to Britain's public services.  The company employs nearly 600 staff dedicated to providing expert advice and support to public service providers.  For further information visit www.zurichmunicipal.com.

• Zurich Municipal reached its 10th anniversary in March 2003 - a month that also marked the 100th anniversary of Zurich Municipal's predecessor organisation - Municipal Mutual Insurance.

• Zurich Municipal is part of Zurich Financial Services, an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs about 68,000 people.

For further information please contact:

Pritie Billimoria, Helen Cherns, Catherine Webster or Robert Blevin 
Tel: (0)20 7535 9950