8.1 THE NHS STRATEGY UNIT We formalised our collaboration with the Strategy Unit in 2016/17, through our Collaboration Agreement founded on shared values and our joint passion for excellence, innovation and independent thinking in the NHS. This has enabled us to work together successfully in areas of the UK that are new to the TU around Staffordshire, Shropshire and neighbouring localities. The Strategy Unit offers advanced technical skills combined with practically-grounded strategic and operational experience and aims to be the bridge between strategic expertise and getting things done. Their areas of specialism complement and support those of the TU, in particular: •  High-grade data analytics (work that might previously have been provided through external support); • An evidence/literature review service; •  Academic links (for example to Birmingham University) meaning access to academic research; and •  Thought-leadership and high-level strategic capability. 8.2 PROVEX Through a tender process by the TU looking for a partner for our Finance & Analytics service line, we selected PDT Consultancy Limited (part of the Provex Group), a specialist NHS consultancy originally established in 2003. PDT specialises in providing advice and support in the areas of nursing, governance, workforce, leadership development, strategic financial support, business planning, education and training. It is also a Lead Provider Framework supplier to the Strategy Unit. 8 PARTNERSHIPS AND ALLIANCES 9 FINANCIAL OVERVIEW REVENUES HAVE INCREASED Total revenue recognised by the TU has increased by 11 per cent from the previous year. The TU reported a small surplus for the year. Percentage Increase in Income from 2015/16 to 2016/17 REVENUE STREAMS HAVE BEEN DIVERSIFIED In line with strategic objectives, the TU has begun to diversify its revenue streams. During 2016/17, five per cent of total revenues related to work delivered outside of Greater Manchester compared with zero in 2015/16. 2016/17 TU Revenue Sources INVESTMENT IN STAFF CONTINUES Headcount has increased from 27 to 33 people and 72 per cent of TU expenditure relates to direct staffing costs. In addition, three per cent of expenditure incurred during 2016/17 related to staff training and development. 2016/17 Expenditure by Category GM Revenue Non-GM Revenue Pay Accomodation Training Flexible working/IT Others % increase 120% 100% 80% 60% 40% 20% 0% 15/16 16/17 95% 5% 71% 18% 3% 3% 5% 31