Creating Profit Through Alliances - business models for collaboration E-book | Page 95

Public-private partnerships
A great deal of knowledge , influence and customer contact is contained within public organisations . A window cleaning firm with a recommendation letter from the municipal authority will more easily find customers within that municipality . Furthermore , public organisations also have their markets and objectives , except that their primary objectives are often of a non-financial nature . Citizens ' satisfaction , safety , quality of life and ensuring an attractive neighbourhood are typical examples . Finances form a necessary condition here , and this is where opportunities for collaboration may be found .
Whoever is able to arrange a collaboration in such a way that it helps the public organisation fulfil its goals more successfully , or can ensure that extra funds remain to devote to quality improvement , has a good chance of engaging a public entity in such collaboration . The point is thus to pursue parallel objectives .
So far we have examined collaborations between two or more private organisations . But what if the opposite partner is a government agency or public institution , a school or a hospital , or a research institute ? It may well be that businesses view such organisations as inward-looking , bureaucratic and difficult to work with . Conversely , the public sector may see collaborating with the business sector as something akin to selling your soul to the devil .
The organisation form for a public-private partnership can be a new legal entity , but in many cases the public organisation assumes a facilitating role while the business performs the activities . A public authority may , for example , sell land to a project developer and set certain parameters for the development of a new housing estate . Or , a group of primary schools may refer parents seeking afterschool care to a specific commercial child care centre . In such instances , an arrangement concerning financial settlement may suffice . 93