10 Key Principles to Prepare for a Public-Private Partnership
The Public-Private Partnership Model of business revolves around 10 key principles. Here is a basic run-through of them.
Ensure a Shared Vision: This point is applicable for any business model today, and P3 is one of the most influenced of the lot. Thus, developing and defining a path, vision, and objective setting for a project is critical.
Preparation for P3: Public sector partners will follow the capability of the collaborating private enterprise. This is where the private partners come up with appropriate planning and blueprints of the project and gain approval accordingly.
Know the Partners and Agents: Partnership models are a combination of two or more entities working for the same purpose. All these entities, including stakeholders, Non-Profit Organizations, Public, and Private parties should have a voice in the project at least with their respective areas of focus or in many cases over the project as a whole.
Maintain Transparency with Risks: Risks are subjected to affect a project at anytime. For a private party, issues like time-consuming, market changes, loss of equity, and other issues pile up. On a generic note, the companies should address the issues as part of the planning process.
Enforce Risk-free and Clear Decision-making: Before a project starts, all the parties need to find common ground and carefully ensure the work gets going smoothly. This can only be done with a proper set of planning and blueprints of the project in hand.
Ensure all the Parties are Prepared: For a successful Public-Private Partnership project, all the parties must be prepared for things to come. A major project using the model deals with serious funds, time, and resource applications. Preparation helps prevent wasted resources or time.
Communication with Agents: P3 Models thrive in the coalition of modernity and technology. Therefore, good communication between the concerned parties and agencies will ensure the execution is smooth. Communication is a vital aspect that will save time and come in handy in important project-based issues.
Ensure Coordinated Leadership: Leadership and coordination make planning work on paper. With a perfectly coordinated team from top to bottom on all sides of the partnership, project execution is no longer an issue to contemplate.
Discuss a Fair Deal: Every party wants fair deal terms when taking on a project. Negotiations are required, but this should not be at the cost of dismal working intentions.
Forming Trust as a Core Value: Trust is an indispensable value that binds the hope of a P3 model together. Trust is key to thrive in the industry. Without trust and a reputation of trust, no private entity, stakeholders, or even public agency will invest a penny.
P3 Models deliver hope in the world of infrastructure and development today. The model, when implemented with proper resources, receives positive feedback and results, while ensuring a win-win situation for all parties involved. Ensuring you have the right team involved and the right agreements in place from the start will provide a much better path to success.
Interested in more P3 insights? Check out some of our other blogs on The History of the P3 Market and What's Next and the Top 5 ways to Align Vision of a PPP. If you want to learn more about how we develop effective strategies for public-private partnerships, reach out to us today to start a conversation.
