Public-private partnership
Challenges to private-public partnership, as reported by organizations surveyed |
| Ranked by frequency of mention |
| Rank* | Challenge |
| 1 | Lack of organizational focus on PPP |
| 2 | Lack of perceived value in merger or acquisition |
| 3 | Slow pace of public sector decision-making compared with private sector |
| 4 | Lack of appropriate opportunities |
| 5 | Lack of experience of cooperation on both sides |
| * Based on 492 responses from our global multi-sector survey. Rank order may not reflect statistically significant differences in all cases. Unclassified/refused responses not shown. |
Factors enabling public-private partnership, as reported by organizations surveyed |
| Ranked by frequency of mention |
| Rank* | Enabling factor |
| 1 | History of cooperative relationship with public sector |
| 2 | Perceived strategic imperative to enhance cooperation |
| 3 | Increased demands from public authorities |
| 4 | Possession of expertise/competency not found in public sector |
| * Based on 492 responses from our global multi-sector survey. Rank order may not reflect statistically significant differences in all cases. Unclassified/refused responses not shown. |
Power and utilities firms report running into challenges with PPPs.
Summary: Increasing government intervention in markets appears not only as a risk, but also as an opportunity. But respondents say it's critical that firms looking to profit from PPP opportunities invest resources in building relationships at local and national government levels.
Public-private partnership (PPP) is the tenth and final opportunity on the ladder. However, on average across all respondents, the impact of this opportunity is expected to rise over time.
Opportunity outlook and impact
Sector perspective
This opportunity earns a place in the top 10 as a result of its high relevance in a few sectors.
- It was given relatively high priority by the public administration executives we surveyed.
- In health care, it ranked as one of the top five opportunities, with the expectation that the opportunity will grow in impact over the next few years.
- Retail and oil and gas were likely to report that their firms did not focus on PPPs.
Geographic view
- Firms in the US were the most open to and confident in, exploiting this opportunity.
- Firms located in India are also increasingly well positioned to benefit from PPPs, perhaps a legacy of frequent interaction between the government and private sector during the era of central planning.
Obstacles to success
Power and utilities and life sciences firms in particular cite a range of operational barriers to success, including:
- Conflicting objectives
- A lack of experience on both sides
- A mismatch between the cultures of the public and private sectors
Responding to the opportunity
Our survey underlined the critical importance, for firms looking to profit from PPP opportunities, of investing resources in building relationships at local and national government levels.
Two significant factors in enabling success include:
- A history of cooperative relationships with the public sector
- A perceived strategic advantage in enhancing cooperation
These factors were commonly reported by executives in all sectors, but particularly in health care and banking.
Sector strategies
- Power and utilities firms were likely to report that their efforts to benefit from PPPs had faced serious challenges. Nearly 40% of power and utilities firms reported that measures to take full advantage of this opportunity were needed, but not yet implemented.
Geographic approaches
- The proportion of organizations reporting previous PPP success and exploring future collaborations was particularly low in Germany and the UK and particularly high in China and Brazil.
- Executives in India and Poland were more likely to report that authorities in their countries were increasingly interested in PPP.
Organizations' responses to public-private partnership
Percentage reporting that they have no interest in public-private partnership, by sector
<< Previous
