b'Successful internalSuggestions on how you would migrate to excellent internal tradeable tradeable service withservice with awarded outside work (public sector entrepreneur)prospectsThe existence of outsideNeed to reflect on the needs of the market place and whether work will be demand for the activitylocal or more remote and if the terms and conditions and insurance suggests an important sellingarrangements need to be amended. skill exists but probablyConsider appointing transformation champion who can develop procedures undeveloped and untested.for a comprehensive analysis of management and operation approaches that can highlight improvements. Continue to change culture to that of a quasi-trading operation by seeking to change focus to a customer-orientated organisation. FinancialsInternal accountingShould have the equivalent of private sector business accounting with arrangements targeted atmonthly trading statements, job costing, improved work in progress ensuring costs kept underapproaches needs serious commitment and is very challenging.control and recharges match CIPFA requirements.Should be able to ensure that outside work is secured at a profit and that when it bids for work it knows what its cost base is. Revisions would be neededThe management of internal recharges continue to be a major issuethink to ensure that any tradingabout freezing recharges for a period and then allowing the unit to move was capable of beingpotentially towards commercial prices after a while.tracked and monitored.Alternatively, accept internal charges for internal work but more to a marginal cost base for new work. Consider appointing a private sector accountant and potentially running a parallel set of records on a commercial basis. Need to have a trading account and to be able to separate results between internal work and external work. RiskLow/medium risk approach.The move towards taking on external work does introduce more risk and the Introducing trading willmanagement of that risk and provision of confidence to all the internal increase risk as new workgatekeepers needs to be robustly undertaken.will need to be secured andNeed to reflect on how decisions to take on new work should be undertaken require new skills, egand to seek to have speedier decision making than can occur in many local tendering and quoting forauthorities.work.PI and other insurance arrangements need review. GovernanceLimited memberNeed for a dedicated senior manager and a growing need for support from involvement. Growing trustan executive member for any decisions regarding new work. and support by memberThere can be a need for member involvement during this process if the team.potential new work involves working with a neighbouring authority on a strategically important service, eg revenue and benefits, refuse collection, etc. Secure legal advice to ensure clarity of what work can be undertaken without needing to form a separate company and what internal changes are needed, eg to staff terms and conditions. Trading accountsMore likely that tradingTrading accounts should be developed; a full management information and performanceaccounts will be used. Oftenreporting system needs to be considered (covering productivity, client statementsthe activity has simplesatisfaction, order book, work in progress, debtor recovery, product budget structure.development, etc). With any growth in external income, there will be an increasing need for trading accounts.31'