New procurement legislation is having profound impact on the partnerships between business and the NGO sector
The relationship between the business sector and not-for-profit sector is evolving fast – driven in part by new UK procurement legislation – with implications for how organisations across all sectors adapt their business models and social partnerships.
James Edsberg looks at how the need to deliver both profit and social value will impact fundamental aspects of organisational strategy – driven by recent changes to procurement legislation.
The Public Services (Social Value) Act 2013 and The Procurement Act 2023 (which came in to force in February) – along with the regulations and guidance notes published with them – are shaking-up how the private sector bids for publicly-funded contracts.
The numbers involved are vast. The UK public sector spends over £388 billion each year on procurement including the provision of services, materials and equipment. The top 3 areas of spend being in health, defence and transport. That’s £1 in every £3 of government spending. (Source: Institute for Government Report 2024).
Central to the changes in the bidding process is the requirement that suppliers pitching for contacts should demonstrate how any contract ‘maximises public benefit’. Tenders will now be awarded not just on economic grounds and price criteria, but on a more comprehensive view of value, including social value, sustainability, innovation and community benefit.
Part of the selection process requires bidders to set out a clear, multi-year plan to deliver measurable this value in an integrated way aligned to the government’s missions.
In short, adding a social value and ESG component to every public sector bid and its delivery is no longer a ‘nice to have’ – it’s compulsory and critical to a successful tender.
Importantly, this development is having a ripple effect that goes much wider than the 40 or so companies categorised as ‘strategic suppliers’ for which the government contracts are worth more than £100 million per year. Here are three emerging impacts among many (and I’ll return to this topic again in future posts…)
First – government-focused businesses also provided services into the private sector – and in parallel, that private sector client base is also assessing their suppliers for the ESG benefits they can contribute. Public procurement is influencing change in private procurement.
Second – the way large providers create social value, is mostly via the partnerships they have with the VCSE sector (Voluntary, Community and Social Enterprise). There is now a greater need than ever for that partnership to work – and to be seen to work – in a way that is much more transparent. This is evidenced by the much increased focus on measurement, KPIs and demonstrable results, which is driving deeper accountability and improved programme design between businesses and VCSEs.
Third – the length of engagement in large contracts (both private and public) is prompting a shift away from 12-month projects and a ‘charity of the year’ mindset in the corporate world, to a more committed, multi-year collaboration between the business and social value sector. All for the good – but requiring a significant change in mindset and expectations on all sides.
One of the long-term benefits which many hope for is that the legislation’s focus on social and community impact, will require partnerships between business and VCSEs to address not the symptoms of a social or environmental issue but the preventative steps that prevent or reduce it emerging in the first place.
Together, these and other changes, are already prompting businesses and not-for-profit organisations to review what they do, how they do it, and the challenging issues around accountability and results.
In turn, this is prompting internal questions about strategic direction, partner selection, programme design, organisational structure, skillset, capacity-building, ability to deliver scale, funding models and the nature of collaboration between the commercial sector with the resources to support change – and the VCSE sector with the lived experience and expertise to shape initiatives.
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Charles Barrass-Banks

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Unlocking >£20M in Increased Gross Margin at a Major Health Insurer
The issue
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Shrinking customer base
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13 legacy books and numerous policy variants causing customer and staff confusion
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Operationally complex to manage – high cost to serve
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Existing proposition and pricing created trigger points for customer exit
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Customers not segmented by value
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No differentiated renewal or save strategies
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Not pricing for risk or maximised value retention
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Poor customer journey: passed from function to function, advisors not empowered
Solution
- Designed and executed a pricing, product and service migration of all policyholders to one new modular product
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- Developed new proposition which drove retention of high value customers and higher return from lower value customers
- Built in upgrade/downgrade ‘right-size’ choices to mitigate competitor switching
- Created pricing engine enabling all business to move to NCD-based policies and set renewal premiums to optimise gross margin
- Cut expected IT lead time to launch from 12 to 3 months
- Changed customer communications and management processes to de-risk customer disruption and loss
- Engaged Legal and regulator on ‘automatic renewal’ plans throughout
- Piloted the transition on 2 highest lapse-risk books to ensure error-free process and no adverse increase in lapse rates

The results
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Exceeded the £20Mpa gross margin improvement target
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Reduced customer loss by 25%
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Improved operating cost ratio from 30% to 16% with greatly improved IT flexibility
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Excellent customer and FSA feedback
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Successfully rolled out from personal to SME & Group schemes
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Leveraging effective negotiation to deliver up to 50% more value for a major international airport
The issue
- Frontline ‘negotiators’ not trained – Teams lacked clarity on effective, strategic negotiations
- Power balance leaning to suppliers – Although the airport had leverage, suppliers secured favourable contract terms
- Costs above benchmark – Costs were identifed as 20% to 40% above benchmark for critical success
Solution
- Benchmarking & Research
- Gained clarity on the as-is situation. Conducted supplier forum
- Build Strategy
- Tenders, direct negotiations, demand management
- Deliver Negotitations
- Reduced costs, and aligned supplier contracts with strategic goals
- Train Stakeholders
- Equipped them with best practices to ensure long-term value in contracts
- Operating Model Change
- Ensured cost savings are locked in the organisation for the long term
- Build Future Roadmap
- So the organisation can use the training and model to deliver further savings

The results
- Training and Development of Client Team
- Empowered the client team with strategic procurement and negotiation skills, resulting in more balanced contracts and enhanced decision-making capabilities
- Client – Supplier Power Dynamic Changed
- Rebalanced power dynamics, shifting leverage back to the client and achieving more favourable contract terms
- Cost Reductions Delivered
- Achieved over $7 million (AUD) in savings and improved negotiation outcomes by up to 50%
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5-year strategic plan to uplift recurring revenue by 80% through organic growth within four years
The issue
- Our clients was experiencing significant changes in the largest customer segment
- Leading to a material decline in client revenues
- EBITDA fell below business case targets
Solution
- Sized the UK medical consumables market for 10 segment, including private acute, NHS, care homes
- Created a vision for the organisation in collaboration with the client senior leadership team
- Shortlisted target segments to drive organic growth
- Developed win strategies and business model options for each segment
- Identified approaches to extend treatment and care pathways into a patient’s home
- Developed a 5-year financial plan including revenue projections and investments required

The results
- Identified multiple growth pathways to reach 80% revenue growth within four years
- Developed a balanced framework of win strategies to drive incremental revenue and EBITDA growth
- Generated a 5-year strategic plan, go-to-market launch and implementation roadmap to capture the identified incremental income
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Virginia Arguelles

Senior Consultant
+44 (0)1653 628596
An experienced Senior Consultant with expertise in market entry, M&A strategy, and operational transformation across healthcare, infrastructure, and international business. With a strong regulatory compliance and sustainability background, Virginia has led strategic projects that optimise organisational performance, improve efficiency, and support expansion into new markets.
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UK’s Leading Management Consultants 2025
We are delighted to have been recognised in the 8th annual edition of the Financial Times UK’s Leading Management Consultants 2025 Special Report
Recommended across 12 categories an increase year on year, the annual rating, compiled with data company Statista is based on endorsements by clients and peers. It demonstrates our consistent year-on-year sector and service line growth.
Consulting companies are awarded Bronze (recommended), Silver (frequently recommended) or Gold (very frequently recommended).
Sectoral Expertise
· Chemicals & Pharmaceuticals – Bronze
· Construction & Infrastructure – Silver
· Energy, Utilities & Environment – Silver
· Financial Institutions & Services – Bronze
· Healthcare & Life Sciences – Silver
· Insurance – Bronze
· Public & Social Sector – Bronze
· Travel, Transportation & Logistics – Bronze
Consulting Services
· Digital Transformation – Bronze
· Operations & Supply Chain – Silver
· Strategy – Silver
· Sustainability – Silver
Managing Partner Andrew Morgan said
The FT Awards are a testament to our company’s continued growth, driven by our team’s exceptional talent and dedication. I’m truly grateful for their relentless commitment, passion, and ability to consistently deliver outstanding results for our clients.

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Curzon Sponsors the 2024 AMBS Case Interview Competition
Curzon Consulting is thrilled to sponsor this year’s Alliance Manchester Business School Consultancy Case Competition.
Introduced in 2016, the competition enables AMBS MBA students to showcase their skills, innovative thinking, and problem-solving abilities. It’s a platform that challenges them and provides them with real-world experience in tackling complex business scenarios in preparation for interview processes across a variety of industries.
Curzon is a key recruitment partner for the full-time MBA programme, and everyone involved is excited to further develop this relationship. Last Friday, Curzon representatives Nigel Brannan, and AMBS Alumni Sarbo Saha, and Aziz Yuldashev, joined the group and were introduced to the students, leading them through an interactive case study session.
We also heard from Class 2025 students Yasar W Khan and Syed Arhaam Ahmed from last year’s winning team, who both shared their top tips on how to succeed in the competition.
The students now have a few months of preparation before the preliminary rounds begin in January 2025. We can’t wait to see how everyone gets on!
Nigel said
We deeply appreciate Chris Garnett and Nick Burrows for your support and are excited by the enthusiasm and energy of the participating MBA students. It’s a pleasure to partner with you on this valuable and enjoyable aspect of their course”.
Thank you to Nigel Brannan, Sarbo Saha and Aziz Yuldashev for your assistance on the day.

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Highly Commended in the 2024 MCA Awards
10 Years of Continued Success
Huge congratulations to the Curzon Consulting team – marking 10 years of continued success at last night’s MCA Awards. Amidst strong competition, we proudly secured a Highly Commended award in the Commercial Impact category.
This outstanding achievement is a testament to the incredible work of the joint Marston Holdings and Curzon Consulting team, who delivered exceptional results within an impressively short timeframe.
The judges said this was a “project which used an imaginative approach and truly showed the power of a consulting team in delivering commercial benefits.”

Commercial Impact with Marston Holdings Ltd
Marston Holdings Ltd (MHL), a private equity-backed enterprise with a turnover exceeding £350 million. Primarily operating within the UK, the company caters to diverse sectors, prioritising services related to legal and regulatory obligations enforcement, including but not limited to parking enforcement, fine collection, and management.
MHL embarked on a transformative journey to achieve remarkable growth, with a focus on unlocking substantial savings through a strategic procurement programme. In collaboration with Curzon Consulting, MHL aimed to address challenges such as insufficient spend visibility, dominant incumbent suppliers, and limited procurement influence within the organisation.
Under the leadership of Curzon Consulting and CEO Martin Johnson, the project, named Project Eagle, aimed to drive sales, optimise costs, and enhance productivity. The procurement transformation programme set out to revamp MHL’s procurement organisation while delivering substantial savings.
Curzon’s approach was multi-faceted, leveraging deep data analytics, innovative thinking, and tried-and-tested change management methodologies. The process involved three main workstreams: Spend Opportunity Assessment, Benefits Delivery, and Procurement Organisation Assessment.
The Spend Opportunity Assessment phase involved a rapid analysis of MHL’s spend, identifying significant savings. Despite initial challenges, the team delivered the core assessment in less than five business days. Subsequent phases focused on implementing cost-saving initiatives, including achieving quick wins within the first two months.
The Benefits Delivery phase saw the implementation of various procurement strategies across different expenditure categories, such as strategic sourcing, product harmonisation, and make vs. buy analysis. These initiatives led to significant cost reductions.
Additionally, the Procurement Organisation Assessment aimed to enhance MHL’s procurement capabilities. Recommendations included restructuring the team, enhancing governance, and improving strategy and systems.
Throughout the project, Curzon fostered a collaborative relationship with MHL, employing a unified ‘one team’ approach and acting as trusted advisors. A well-defined governance model ensured efficient communication and problem-solving.
Despite challenges such as supplier resistance and stakeholder reluctance to change, Curzon overcame obstacles through pragmatic approaches, evidence-based reasoning, and stakeholder management expertise. The project delivered measurable results, exceeding savings targets by 28%, with a sizeable in-year cash impact. Qualitative outcomes included improved transparency in spend areas, satisfaction with new products, and enhanced trust in the procurement team.
In conclusion, the partnership between MHL and Curzon Consulting exemplified resilience, innovation, and successful collaboration, resulting in significant cost savings and organisational improvements.
Chetan, Stephane and the Curzon team were contracted to deliver an optimisation programme at Marston Holdings. The Curzon team approached the complex task with energy and professionalism, which was key to the ultimate success of the programme.
The technical knowledge and capability of the Curzon team were clear from the start of the engagement and we had total faith in their capability to deliver the ambitious goals they had been set. Marston would recommend Curzon to anyone who requires the domain knowledge and experience of a capable consulting partner. We look forward to working with them in the future
Martin Johnson, CEO, Marston Holdings Ltd


















