There are six critical components of successful public-private partnerships (PPPs):
- Commitment. There must be commitment from “the top” on both sides. For private organizations, this means the board of directors.
- Monitoring. Once a partnership is established, the public sector party must remain actively involved in the project or program. Ongoing monitoring should be done as often as needed to follow progress and ensure success.
- Detailed Contract. The contract must clearly describe the responsibilities of each partner and include a clearly defined method for resolving disputes.
- Guaranteed Revenue Stream. The revenue needed to make the project or program sustainable must be assured for the length of the partnership.
- Stakeholder Support. In addition to gaining approval from the board of directors, the private sector party must communicate openly and candidly with employees, service beneficiaries, local media, and affected labor unions. This helps to avoid misconceptions and ensure the benefits of the partnership are understood.
- Value for the Money. The best way for PPPs to succeed is for everyone to realize that the public is getting maximum value for its money. The organization doesn’t always need to be the absolute lowest bidder, but it must be able to demonstrate that it is the best choice for the partnership despite the higher cost.
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