Learn how market shaping, strategic workforce planning and financial planning work together in a whole systems approach to commissioning adult social care. Discover the ‘three-legged stool’ model and why balancing these elements is important for people drawing on adult social care.
A whole systems approach to commissioning involves balancing three elements:
- Market shaping, new models of care and service redesign.
- Workforce planning, shaping and commissioning.
- Financial planning.
We call this the ‘three-legged stool’ model. Imagine the person drawing on care and support is sitting on the stool. If all three legs of the stool are in balance, then the person is comfortable. If all three legs of the stool are not balanced, the person is uncomfortable. In other words, if market shaping, workforce shaping, and finances are not balanced across the system, people’s needs are not able to be met.
Find out more about the 'three-legged stool' model in our Getting organised to progress strategic workforce planning, shaping and commissioning guide.
Market shaping
Market shaping is a legislative obligation through the Care Act 2014 for local authorities. The obligation also applies to other organisations with market shaping roles such as NHS England and NHS integrated care boards.
Market shaping looks at what people’s care and support needs are in the local area and considers what care and support services are available in that area. It then works out where the gaps are and how they can be filled. The aim is to make sure people can find care and support that meets their needs, and that a variety of options are available to suit people’s individual circumstances and preferences.
To shape the market, you need to understand the local market for services. This includes understanding:
Market shaping is about equipping a local area with the right support options for the people who live there.
Top tip
Talk to care providers, people, social workers, and communities about what they want to achieve, what the challenges are, and what good looks like. Reach out to colleagues across other geographic areas or specialism areas to learn from innovations and other models of care for inspiration and efficiencies.
The term ‘market’ is being challenged by some professionals who claim that it has the notion of commercial relationships with support providers.
We need to identify where the service gaps are and where we can do things differently to achieve efficiencies and continue to provide high quality services. The Power BI is a go to platform that enables us to track spend and service provision.
Mick Duffy, Commissioning Manager, Lancashire County Council
Strategic workforce planning
It's important to remember that when you commission a service, you’re also commissioning its workforce.
Strategic workforce planning is typically undertaken by Directors of Adult Social Services, working with their teams and partners across the sector. It involves assessing and predicting the demand for the current and future workforce mapped against supply and the needs of the local population. It identifies priorities, plans and secures the workforce needed, and regularly reviews actions. To be effective, it must be well led and based upon a shared vision of the purpose, nature and direction of high-quality services.
This process creates a workforce strategy and a workforce strategy implementation plan. A workforce strategy sets out the vision and the long-term objectives, usually for the following 3-5 years. A workforce strategy implementation plan sets out the actions that will need to be taken to implement the workforce strategy.
Top tip
Investing in workforce planning now helps you to predict future challenges and put plans in place to ensure the right people with the right skills and the right culture will continue to deliver the right support, rather than needing to be reactive or ‘fire-fight’ future workforce challenges when they arise.
A strategic approach recognises the workforce as central to quality. It helps plan for future need, supports wellbeing, and strengthens continuity for people using services. Tools like workforce planning templates help make this actionable.
Isaac Samuels OBE, Think Local, Act Personal (TLAP)
Financial planning
When you commission a service and its workforce, you’re making a financial commitment.
Financial intelligence describes the ability to understand the flows of finances, and the knowledge of how finances affect the system, and where the interrelationships are. If you can understand where money goes and the impact it has, you can amplify the impact for people and communities, and provide value for money for the public purse.
When considering finances, you might be considering fee modelling, uplifts, efficiencies, benchmarking fee rates, cost benefit, cost avoidance, open book accounting, investment, innovation, transformation, financial opportunities, financial risks, and more.
Top tip
Consider payment structures to understand how payment timing, invoicing processes, and risk allocation affect providers’ cash flow and service stability. Compare funding with similar services elsewhere to benchmark and understand realistic pricing structures.
Be transparent with partners about budgets and constraints. Share budget limits early so providers can design services that are both realistic and sustainable. Involve partners, social care providers and people who draw on care and support in on ongoing dialogue about how money is allocated and spent.
Financial knowledge allows commissioning to focus on impact, not just cost. It helps ask whether spend genuinely improves lives and delivers long-term value. Financial modelling and cost-benefit tools are useful in this work.
Isaac Samuels OBE, Think Local, Act Personal (TLAP)