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Leadership: The key to better contracts

3 mins read Leadership
Dwindling budgets increasingly means pressure to prioritise cost-effectiveness over quality when deciding contracts, but a collaborative approach with providers can ensure sustainable solutions.

Commissioners increasingly ask that we "prove" impact, yet the very terms of their contracts undermine charities' ability to do so. With the public service market becoming increasingly fierce, with ever-tighter margins and ever-shorter contracts, it is easy for voluntary organisations to fall into the trap of moulding our work to fit the contract. Yet at what cost does this come for the people we serve? Staying true to our charitable objectives and the changes we know are needed in our communities demands that we make difficult decisions.

1. Don't be afraid to walk away from a contract. There's no mistaking that a "race to the bottom" in price is being played out in public service commissioning. Barnardo's wins four out of five contracts that we bid for but that doesn't stop us walking away when the resources or conditions set by the commissioner mean we are not able to do what needs to be done. We know what vulnerable children need, we know what it costs to provide it, and we won't do it for less. Leaders may worry that leaving a contract may damage their organisation's reputation, but surely delivering substandard work has the potential to do much worse?

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