The Opportunities and Challenges of the Changing Public Services Landscape for the Third Sector in Scotland: A Longitudinal Study Year Three Report (2009-2012)

CHAPTER 1: INTRODUCTION

1.1 This report outlines findings from a three-year research project examining 'The Changing Public Services Landscape in Scotland: Opportunities and Challenges'. This work was commissioned by the Scottish Government and using qualitative case studies and focus groups aimed to track the way in which a selection of third sector organisations (TSOs) responded to the changing opportunities and challenges over a period of three years starting from 2009/2010.

1.2 The Scottish Government has acknowledged that the third sector has a key role to play in delivering public services that are high quality, continually improving, efficient and responsive to local people's needs. This work will inform future partnership working with the third sector.

1.3 Specific objectives for the research are summarised below:

• identify the role and distinctive added value of TSOs delivering public services
• identify features of effective partnership working between the public sector and TSOs
• assess the impact of Scottish Government and local government policy and budget priorities on TSOs' changing practice and management
• track the impact of the economic downturn and budget limitations on TSOs' roles in public service delivery
• describe how TSOs contribute to progress on the Scottish Government's national priorities and national outcomes
• describe how TSOs contribute to progress on Single Outcome Agreements and the work of Community Planning Partnerships
• enable TSOs to articulate views on the appropriateness of funders' oversight, evaluation and management procedures

1.4 A full list of objectives is provided in Appendix B.

Methodology

1.5 The methodology involved qualitative research within 20 third sector organisations based in Scotland over a period of three years. The methodology involved two key components: (1) in-depth case studies with eight TSOs and; (2) three focus groups involving twelve additional TSOs. Appendix C outlines the methodology in further detail. The organisations that participated in the research were providers of public services covering a range of fields including health and social care; employability; regeneration; learning and equalities. A mix of national, regional and local providers was included. See Appendix E for further details.

Structure of the Report

1.6 Chapter 2 outlines the background in terms of the policy context within which TSOs have been operating over recent years.

1.7 The findings from the research begin in Chapter 3 with an examination of the experiences TSOs had of the changing policy and funding environment and the impacts on TSOs resulting from the changes. These include:

• Experiences and opinions of policies emerging from UK Government and Scottish Government, including tendering, funding cuts and new opportunities
• Changes in demand for services, impact on service provision, impact on clients and impact on staff

1.8 Chapter 4 examines some key cross cutting themes including:

• Issues around governance and leadership with TSOs. In particular, the challenges for senior managers and the role of Boards of Directors or Trustees
• Trends around performance and outcome measures. These include: measuring 'soft' outcomes; providing additional evidence to funders; using additional measures to demonstrate impacts; and use of Social Return on Investment (SROI)
• Partnership working includes trends in partnership working reported by TSOs; the third sector infrastructure such as third sector interfaces; relationships with SCVO and local CVSs and involvement in other partnership forums; and partnerships with local and central government and involvement in service design

1.9 Chapter 5 explores Third Sector Responses to the changing environments, and looks at how organisations responded to the challenges through:

• mission, focus and identity
• diversifying funding
• restructuring
• raising awareness

1.11 Case studies based on some of the TSOs taking part in the research are outlined in Appendix A. These chart some of the key changes within each organisation during the course of the three year research.

1.12 All quotes use generic pseudonyms which are intended to provide some organisational and respondent role context without identifying either individuals or organisations. However, please note that the generic pseudonyms cannot encapsulate the varied roles of TSOs, especially since many organisations fall into numerous categories. Appendices D and E provide more details about each organisation. Where quotes have been taken from a focus group discussion this is indicated in brackets after the quote (e.g. Employability FG where FG indicates 'focus group').

1.13 Interview guide questions used in the fieldwork are appended (Appendix F).