At this point, you know what a public-private partnership is, and understand the common obstacles to these projects and how to overcome them. To put it all together into a game plan for your own PPP, you as a CIO or CTO need to know how to create and meet specific goals, metrics, and timelines.
Creating this game plan ensures that your team is choosing PPPs that offer value for money, with properly allocated risks and clearly defined priorities. This kind of framework, created in advance, keeps PPPs on track.
Setting Goals for a PPP
The goals of private stakeholders in a partnership will be different than that of the public parties. Ultimately, private stakeholders need to maximize profits and minimize risk.
Of course, there will be specific goals for each PPP. These may be initiated by the public partner, which has a specific outcome in mind for their funding, whether it is a new building, improved infrastructure, or a tech framework. It is the job of the private partner to determine if these goals are feasible.
Then, all the parties have to come together to create a common, shared vision encompassing those goals. This may involve market analysis and demographic research, engaging with end users, and looking at historical trends, among other methods.
Creating PPP Measurement Metrics
Documenting a public-private partnership is key to accountability, and performance metrics ensure consistent, standardized documentation. Using evidence-based metrics, stakeholders can easily see how the project is moving toward meeting its objectives and make informed decisions.
Again, each PPP will call for different metrics. In health-related partnerships, for example, one key performance indicator to judge the overall success of a project is measuring how it has improved health outcomes. In a real estate PPP, a metric might be how many tenants are signed up to use the space when it is ready.
Metrics can, and should, also be used throughout the process and not just to measure the result of a project. Real-time data is valuable, such as monitoring if costs are as expected at certain points during the project.
Measurement metrics ultimately come down to determining what data proves that goals are being met. Without them, everyone is operating in the dark, which leads to disaster. As one study shows, 20 percent of disputes in PPPs involve KPIs or performance monitoring.
Developing a Timeline for a PPP
Every timeline for a PPP will look different, but most share similar stages.
First, the project itself is identified and must be analyzed to determine if it is a good candidate for a PPP. From there the project is more closely defined, with an agreement, payment mechanism, and objectives. When the right partners are selected, they enter into a contract and outline what needs to be done, by who, in what order.
The development stage itself is likely one of the longest, where the actual work is completed. When operations begin, the timeline will either stretch on through maintenance, or finalize with the work to hand the project back.
In building a timeline, parties may want to include interim milestones to monitor progress and/or disburse incentives. This is particularly helpful in managing long, complex public-private partnerships, to keep things moving. It is also helpful in determining if the timeline is realistic, or if there are delays that will either impact the final deadline, or have to be mitigated to meet the projected completion date.
PPP-Focused Consultants and Investors
Working with PPP-focused consultants and investors can help CIOs and CTOs develop a clear game plan. There are many options, from large companies to smaller individual experts. We hope this shortlist is a good starting point.
- Deloitte PPP team: The Deloitte PPP team works globally as an advisory service, working with both the public and private sectors. They aid private sector clients in accessing opportunities and markets and work through bid development, deal structuring, debt raising and contract negotiation.
- IP3: The Institute for Public-Private Partnerships advises both public and private entities in all aspects of PPPs, including planning and structuring.
- WT Partnership: WT Partnership works in developed markets like the USA, Canada, Australia and the UK, advising clients with no bias to public or private stakeholders.
- For more information on PPP-focused financing, check out this resource from the World Bank Group’s public-private partnership legal resource center.
In the final installment of our series we will offer a quick one-stop resource for all of your PPP needs. Get in touch with us with any questions you may have about PPPs or our services. Reach out to our team using our online form to send a message, calling us at 801-335-0700, or emailing email@example.com.