Variety of Business Types in Government
There is a wide variety of government institutions (on this website, these institutions also fall under companies). The healthcare, education and social sectors, just like the municipal, provincial and national government, have their own type of information ecosystems with their own culture, customs and sometimes language use. In a healthcare sector, we distinguish (academic) hospitals, healthcare institutions, medical practices, obstetric practices, dentists, dental hygienists and others. The institutions mainly work closely together regionally.
Institutions use generic and specific contract libraries to effectively organize their legal operation. Generic portfolios can relate to personnel management and attracting freelancers. Specific European and national legislation provide the context for specific portfolios. We can develop and draw up specific portfolios with the institutions in a certain sector.
The business activities and the financing model of institutions result in the recruitment of a relatively large number of employees. Depending on the offer and the wishes of the institution, an institution can offer a (potential) employee an employment contract, a self contractor contract, a volunteer contract, a hiring contract or a contract for services. Each construction for hiring an employee has its own contract library, contracting process and contract management.
Institutions often maintain facilities for the public interest. Business activities are often financed using a distribution system. Many institutions have a usual process of purchasing products and services. Certain institutions, legally obliged or often with some company size, apply European procurement rules.
The management maintains the facility with a certain supply capacity. If the demand for the facility exceeds the supply, the company management – in the first instance – adjusts by increasing the staff capacity. This can lead to a certain rational size before waiting lists or closing of the facility takes place.
The business risk consists of an underutilization of the facility that goes unnoticed, changes (by law) to the facilities must be made and whether the demand exceeds the capacity of the facility. All these situations require decisive and effective action from the management.
Optimizing business operations and responding adequately to changing circumstances requires an effectively functioning legal operation for:
- Assessing the use or exhaustion of purchased rights;
- Building, reducing and assessing employee capacities; and
- Building strategic suppliers.
Together with institutions from various sectors, we are working on a suitable legal operation. The collaboration consists of:
- Optimizing the contract library with contract and script items. For this we use the suggestions and examples of the sector representatives;
- Sharing knowledge through webinars and targeted awareness and training programs; and
- Suggestions for additional functionalities.
An institution can consist of extensive business activities and as many partners (citizens, patients, employees and suppliers).
When preparing agreements and contract management, the institution wishes to know the partners on a permanent basis. To this end, the government maintains DigiD, the authentication of the identity of persons on the basis of the basic administration of persons and eHerkenning for companies. By law, the government organizes to know and process the data of partners. If an institution wishes to make use of a partner’s trade secrets, the parties will make agreements if desired.
An institution often makes many agreements with many external partners. The institution keeps a file on every citizen, patient or taxpayer. There is a tendency for the partner to have insight into his or her file per institution (MyGovernment, Personal Health File (PHF), and other initiatives), but the information is not yet complete; let alone that the partner can make an integral picture of government involvement. The active and passive information rights of a person rest in particular on the personal data of a citizen, patient, student and other partners. The exercise of these rights by citizens can require considerable capacity from the institution.
In institutions with a limited company size, a board member or management usually provides the legal operation. Institutions of any size have a legal department that handles legal matters. The multitude and ever-changing legislation poses a challenge for the management of the institution to adequately organize legal operation and legal affairs. Contract management is the responsibility of the operational departments.
A complete overview of the acquired rights and obligations to be managed is limited. With this, the legal operation can only make an outline estimate of the liability and cost risks.
The differences in the nature and size of institutions’ business activities call for a sector- or even segment-specific approach to organizing an effective legal operations. We are happy to develop a specific portfolio in collaboration with institutions from a sector, the MYOBI Trust Network and professional organizations.
Our preparations and involvement may include:
- Information ecosystem on the MYOBI Trust Network. Based on the registration on the trust network and concluded agreements, the company has an overview and insight into the partners with which business has been done;
- Company-specific learning environment with awareness and training programs. All employees and management are aware and have knowledge of organizing legal operation;
- Smart contracting with a sector-specific contract portfolio. Institutions from a sector use a sector-specific contract portfolio that has been made company-specific if desired.
- Supporting services such as knowledge bases and a service desk. The employees of the institutions can fall back on professional help in carrying out their work.
- The project setting of a particular sector. The setting in a certain sector influences the development process of new functionalities; and
- An attractive business case. For each institution there is a value proposition with a suitable business case. In the knowledge base we help the institution build the business case using Business Model Canvas.