McKinsey & Company

McKinsey on Society

Public-Private Partnerships: Harnessing the private sector’s unique ability to enhance social impact

Participation in PPPs can create a virtuous cycle of mutual benefit for all concerned, and in particular private sector entities traditionally seen solely as benefactors and not as beneficiaries.

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Bringing the specific efficiencies, discipline, focus and mindset of for-profit businesses to bear on the public and non-profit sectors is an old idea, but one that is gaining momentum with the success and proliferation of public-private partnerships (PPPs) over the last 15 years.

Despite this success – or because of it – a growing sense has emerged that PPPs could do even more. To do more though, they need additional help from the private sector. And not just any help, but the right kind of help. More resources – whether money, staff time, products, or other in-kind contributions – are always welcome but more valuable is expertise: the very reason for the formation of PPPs in the first place.

This report begins with an overview of the current PPP landscape, and then discusses in detail four key findings:

  1. Four archetypes of public-private partnerships have emerged from the recent boom in PPP activity
  2. The private sector can contribute to PPPs in five major ways.
  3. Benefits to the private sector from engaging in PPPs extend well beyond public relations, and there is growing recognition that mutual benefit is key to success and sustainability
  4. PPP leaders from any sector can benefit from nine best practices that maximize the value of private sector engagement and PPP impact

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