Prospects Mutuals Development - 3BM, first employee led mutual joint venture to spin out from local government
The first employee led mutual joint venture to spin-out from local government, 3BM, is supported by Prospects. The pioneering new model for delivering better and more cost-effective services to the public combines the experience and local knowledge of council staff with a private sector business ethic. 3BM delivers services such as financial management, IT and building development to schools allowing them to focus on education.
Created by staff from three London boroughs, Hammersmith & Fulham, Kensington & Chelsea and Westminster, all 3BM employees will be shareholders, along with Prospects, which was chosen in a challenging competitive dialogue process. In return for its input and support, Prospects will receive a 24.9% stake in 3BM, subject to meeting performance targets.
The mutualisation project won praise from Cabinet Office Minister Francis Maude, who said: “It will be a game changer, bringing together the knowledge, innovation and dedication of frontline staff, with the commercial rigour of the private sector. This pioneering mutual joint venture model will open the door for many more entrepreneurial public servants who want more freedom to do their jobs in the way they know is best.”
At the launch of 3BM, Minister for Civil Society Nick Hurd said: “You feel the energy that people have for this new fledgling enterprise 3BM – they’re excited about the possibilities now available to them that weren’t there before. Mutuals give frontline staff the power to make decisions and to innovate services in ways they could never do before."
Andy Rennison, Managing Director of 3BM and the driving force behind the mutualisation, said, “This is an exciting time for us and I’m delighted that Prospects will be working alongside us, supporting and advising us to help us grow. Our schools and council clients will benefit from a better value service and our staff will ultimately be sharing in our commercial success.”
Ray Auvray, Executive Chairman of Prospects said:“We are delighted to support 3BM in this new chapter as a commercial enterprise. The team have a fantastic wealth of experience and great ideas to drive the business forward.”